Accounting Policies of Shri Niwas Leasing and Finance Ltd. Company

Mar 31, 2025

1. CORPORATE AND GENERAL INFORMATION

Shri Niwas Leasing & Finance Limited is a public limited company (The Company) having registered
office at 47/18, Rajendra Place Metro Station, New Delhi-110060. The Company is listed on the BSE
(Bombay Stock Exchange). The company is engaged in financing business, trading in shares and
investment activities. We believe that we are well placed to leverage on the growth opportunities in
the economy.

2. BASIS OF ACCOUNTING

2.1. Statement of Compliance

These financial statements have been prepared in accordance with the Accounting Standards
as prescribed by Ministry of Corporate Affairs other relevant provisions of the Act and other
accounting principles generally accepted in India including the guidelines issued by the
Reserve Bank of India (RBI) as applicable to an Non - Banking Finance Company (‘NBFC’).
The figures have been reported on historical basis.Basis of Measurement

The Company maintains accounts on accrual basis following the historical cost convention,
except for followings:

2.1.1. All assets falling under Property Plant and Equipment (PPE) have been valued at Cost
Less Depreciation.

2.1.2. Certain Financial Assets and Liabilities is measured at Fair value/ Amortized cost (refer
accounting policy regarding financial instruments);

2.1.3. Defined Benefit Plans - Plan assets measured at fair value wherever applicable

2.2. Functional and Presentation Currency

The Financial Statements are presented in Indian Rupee (?), which is the functional currency of
the Company and the currency of the primary economic environment in which the Company
operates. All amounts disclosed in financial statements and notes have been rounded off to the
nearest Lacs (with two places of decimal) as per the requirements of Schedule III, unless
otherwise stated.

2.3. Use of Estimates and Judgements

The preparation of financial statements in conformity with Ind AS requires judgments, estimates
and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of
contingent liabilities on the date of the financial statements and the reported amount of revenues
and expenses during the reporting period. Difference between the actual results and estimates are
recognized in the period in which the results are known/ materialized.

2.4. Presentation of Financial Statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format
prescribed in the Schedule III to the Companies Act, 2013 (“the Act”). The Statement of Cash

Flows has been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash
flows”. The disclosure requirements with respect to items in the Balance Sheet and Statement of
Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes
forming part of the financial statements along with the other notes required to be disclosed under
the notified Indian Accounting Standards.

2.5. Operating Cycle for current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company’s
normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013
and Ind AS 1. The Company has ascertained its operating cycle as twelve months for the
purpose of current and non-current classification of assets and liabilities.

2.5.1. An asset is classified as current when it is:

2.5.1.1. Expected to be realized or intended to sold or consumed in normal operating cycle;

2.5.1.2. Held primarily for the purpose of trading;

2.5.1.3. Expected to be realized within twelve months after the reporting period; or

2.5.1.4. Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.

All the other assets are classified as non-current.

2.5.2. A liability is current when:

2.5.2.1. It is expected to be settled in normal operating cycle;

2.5.2.2. It is held primarily for the purpose of trading;

2.5.2.3. It is due to be settled within twelve months after the reporting period; or

2.5.2.4. There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period.

All the other liabilities are classified as non-current.

2.5.3. Deferred Tax Assets and Liabilities are classified as non-current assets and liabilities
respectively.

2.6. Measurement of Fair Values

A number of the Company’s accounting policies and disclosures require the measurement of fair
values, for both financial and non-financial assets and liabilities.

2.6.1. 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. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

2.6.1.1. In the principal market for the asset or liability, or

2.6.1.2. In the absence of a principal market, in the most advantageous market for the asset
or liability.

The principal or the most advantageous market must be accessible by the Company. The fair
value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest. A fair value measurement of a non-financial asset takes into account a
market participant’s ability to generate economic benefits by using the asset in its highest and
best use or by selling it to another market participant that would use the asset in its highest and
best use.

2.6.2. The Company uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, maximizing the use of relevant
observable inputs and minimizing the use of unobservable inputs.

2.6.3. All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorized within the fair value hierarchy, described as follows, based on the
input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or
liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable and

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.

3. ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the financial
statements are as given below. These accounting policies have been applied consistently to all
the periods presented in the financial statements.

3.1. Property, Plant and Equipment

3.1.1. Recognition and Measurement:

Property (Land and Building), plant and equipment held for use in the production or/and
supply of goods or services, or for administrative purposes is stated in the balance sheet at Fair
Market Value less any accumulated depreciation and accumulated impairment losses (if any).
Cost of an item of property, plant and equipment acquired comprises its purchase price,
including import duties and non-refundable purchase taxes, after deducting any trade
discounts and rebates, any directly attributable costs of bringing the assets to its working
condition and location for its intended use and present value of any estimated cost of
dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives,
then they are accounted for as separate items (major components) of property, plant and
equipment.

Profit or loss arising on the disposal of property, plant and equipment are recognized in the
Statement of Profit and Loss.

3.1.2. Subsequent Measurement:

Subsequent costs are included in the asset’s carrying amount, only when it is probable that
future economic benefits associated with the cost incurred will flow to the Company and the
cost of the item can be measured reliably. The carrying amount of any component accounted
for as a separate asset is derecognized when replaced.

Major Inspection/ Repairs/ Overhauling expenses are recognized in the carrying amount of the
item of property, plant and equipment as a replacement if the recognition criteria are satisfied.
Any Unamortized part of the previously recognized expenses of similar nature is
derecognized.

3.1.3. Depreciation and Amortization:

Depreciation on Property, Plant & Equipment is provided on Straight Line Method in
terms of life span of assets prescribed in Schedule II of the Companies Act, 2013 or as
reassessed by the Company based on the technical evaluation.

In case the cost of part of tangible asset is significant to the total cost of the assets and
useful life of that part is different from the remaining useful life of the asset,
depreciation has been provided on straight line method based on internal assessment
and independent technical evaluation carried out by external valuers, which the
management believes that the useful lives of the component best represent the period
over which it expects to use those components.

Depreciation method, useful lives and residual values are reviewed at each financial year-end
and adjusted if appropriate.

3.1.4. Disposal of Assets

An item of property, plant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the 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 net disposal proceeds and the carrying amount of the asset and is
recognized in the statement of profit and loss.

3.1.5. Capital Work in Progress

Capital work-in-progress is stated at cost which includes expenses incurred during
construction period, interest on amount borrowed for acquisition of qualifying assets and other
expenses incurred in connection with project implementation in so far as such expenses relate
to the period prior to the commencement of commercial production.

3.2. Leases

3.2.1. Determining whether an arrangement contains a lease

The determination of whether an arrangement is (or contains) a lease is based on the substance
of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if
fulfillment of the arrangement is dependent on the use of a specific asset or assets and the
arrangement conveys a right-of-use (ROU) for the asset or assets, even if that right is not
explicitly specified in an arrangement.

Ind AS 116 sets out the principles for the recognition, measurement, presentation and
disclosures of leases for both lessees and lessors. It introduced a single, on-balance sheet
accounting model for lessees.

The Company is lessee mainly in Land & Building (Factory and Offices). It recognised all
such arrangements as right-of-use (ROU) asset and lessee as liability. The ROU is considered
when company has all the right to drive economic benefits from the use of underlying asset.
The right-of-use (ROU) asset is measured by discounting future lease payments to net present
value (NPV). All lease payments during reporting period are recognised either as operational
lease or financial lease as per Ind AS 116. However low value leases and leases below 12
months are treated as operating lease only.

3.2.2. Company as lessor
Finance Lease

Leases which effectively transfer to the lessee substantially all the risks and benefits
incidental to ownership of the leased item are classified and accounted for as finance
lease. Lease rental receipts are apportioned between the finance income and capital
repayment based on the implicit rate of return. Contingent rents are recognized as
revenue in the period in which they are earned.

Operating Lease

Leases in which the Company does not transfer substantially all the risks and rewards
of ownership of an asset are classified as operating leases. Rental income from
operating leases is recognized on a straight-line basis over the term of the relevant
lease except where scheduled increase in rent compensates the Company with
expected inflationary costs.

3.2.3. Company as lessee
Finance Lease

Finance Leases, which effectively transfer to the lessee substantially all the risks and
benefits incidental to ownership of the leased item, are capitalized at the lower of the
fair value and present value of the minimum lease payments at the inception of the
lease term and disclosed as leased assets. Lease Payments under such leases are
apportioned between the finance charges and reduction of the lease liability based on
the implicit rate of return. F inance charges are charged directly to the statement of profit
and loss. Lease management fees, legal charges and other initial direct costs are
capitalized. If there is no reasonable certainty that the Company will obtain the
ownership by the end of lease term, capitalized leased assets are depreciated over the
shorter of the estimated useful life of the asset or the lease term.

Operating Lease

Assets acquired on leases where a significant portion of risk and reward is retained by
the lessor are classified as operating leases. Lease rental are charged to statement of
profit and loss on a straight-line basis over the lease term, except where scheduled
increase in rent compensates the Company with expected inflationary costs.

3.3. Inventories

Inventories are valued at the lower of cost and net realizable value (NRV). Cost is measured by
including, unless specifically mentioned below, cost of purchase and other costs incurred in
bringing the inventories to their present location and condition. However, materials and other
items held for use in the production of inventories are not written down below cost if the
finished products in which they will be incorporated are expected to be sold at or above cost.
NRV is the estimated selling price in the ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make the sale. Cost is ascertained on weighted
average basis for all inventories except for by products and scrap materials which are valued at
net realizable value.

3.4. Cash and Cash Equivalents

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

For the purpose of the statement of cash flows, cash and cash equivalents includes cash on hand,
term deposits and other short-term highly liquid investments, net of bank overdrafts as they are
considered an integral part of the Company’s cash management. Bank overdrafts are shown
within short-term borrowings in the balance sheet.

3.5. Income Tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable
income based on the applicable income tax rate adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences, unused tax losses etc. Current and deferred tax is
recognized in the statement of profit & loss, except to the extent that it relates to items recognized
in other comprehensive income or directly in equity. In this case, the tax is also recognized in
other comprehensive income or directly in equity, respectively.

3.5.1. Current Tax:-

Current tax liabilities (or assets) for the current and prior periods are measured at the amount
expected to be paid to (recovered from) the taxation authorities using the tax rates (and tax laws)
that have been enacted or substantively enacted, at the end of the reporting period.

3.5.2. Minimum Alternate Tax (MAT) credit :-

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. In the year in which the
Minimum Alternative tax (MAT) credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in guidance note issued by the Institute of
Chartered Accountants of India, the said asset is created by way of a credit to the Statement of
profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each
balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent
there is no longer convincing evidence to the effect that Company will pay normal Income Tax
during the specified period.

3.5.3. Deferred Tax:-

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

Deferred tax is recognized in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the corresponding amounts used for
taxation purposes (i.e., tax base). Deferred tax is also recognized for carry forward of unused tax
losses and unused tax credits.

Deferred tax assets are recognized to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of unused tax
credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period. The
Company reduces the carrying amount of a deferred tax asset to the extent that it is no longer

probable that sufficient taxable profit will be available to allow the benefit of part or that entire
deferred tax asset to be utilized. Any such reduction is reversed to the extent that it becomes
probable that sufficient taxable profit will be available.

Deferred tax relating to items recognized outside the Statement of Profit and Loss is recognized
either in other comprehensive income or in equity. Deferred tax items are recognized in
correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied by the
same taxation authority and the Company intends to settle its current tax assets and liabilities on a
net basis.

3.6. Employee Benefits

3.6.1. Short Term Benefits

Short term employee benefit obligations are measured on an undiscounted basis and are expensed
as the related services are provided. Liabilities for wages and salaries, including non-monetary
benefits that are expected to be settled wholly within twelve months after the end of the period in
which the employees render the related service are recognized in respect of employees’ services
up to the end of the reporting period.

3.6.2. Other Long-Term Employee Benefits

The liabilities for earned/privilege leave that are not expected to be settled wholly within
twelve months are measured as the present value of the expected future payments to be
made in respect of services provided by employees up to the end of the reporting period
using the projected unit credit method. The benefits are discounted using the government
securities (G-Sec) at the end of the reporting period that have terms approximating to the
terms of related obligation. Remeasurement as the result of experience adjustment and
changes in actuarial assumptions are recognized in statement of profit and loss.

3.6.3. Post-Employment Benefits

The Company operates the following post-employment schemes:

3.6.4. Defined Contribution Plan

Defined contribution plans such as Provident Fund, Employee State Insurance etc. are
charged to the statement of profit and loss as and when incurred and paid to Authority.

3.6.5. Defined Benefit Plans

3.6.5.1. The liability or asset recognized in the Balance Sheet in respect of defined
benefit plans is the present value of the defined benefit obligation at the end of
the reporting period less the fair value of plan assets. The Company’s net
obligation in respect of defined benefit plans is calculated separately for each

plan by estimating the amount of future benefit that employees have earned in
the current and prior periods. The defined benefit obligation is calculated
annually by Actuaries using the projected unit credit method.

3.6.5.2. The liability recognized for defined benefit plans is the present value of the
defined benefit obligation at the reporting date less the fair value of plan assets,
together with adjustments for unrecognized actuarial gains or losses and past
service costs. The net interest cost is calculated by applying the discount rate to
the net balance of the defined benefit obligation and the fair value of plan
assets. The benefits are discounted using the government securities (G-Sec) at
the end of the reporting period that have terms approximating to the terms of
related obligation.

3.6.5.3. Remeasurement of the net defined benefit obligation, which comprise actuarial
gains and losses, the return on plan assets (excluding interest) and the effect
of the asset ceiling, are recognized in other comprehensive income.
Remeasurement recognized in other comprehensive income is reflected
immediately in retained earnings and will not be reclassified to the statement of
profit and loss.

3.7. Foreign Currency Transactions

3.7.1. Foreign currency (other than the functional currency) transactions are translated into
the functional currency using the spot rates of exchanges at the dates of the
transactions. Monetary assets and liabilities denominated in foreign currencies are
translated at the functional currency spot rate of exchanges at the reporting date.

3.7.2. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation of monetary assets and liabilities are generally recognized in
profit or loss in the year in which they arise except for exchange differences on foreign
currency borrowings relating to assets under construction for future productive use,
which are included in the cost of those qualifying assets. When they are regarded as an
adjustment to interest costs on those foreign currency borrowings, the balance is
presented in the Statement of Profit and Loss within finance costs.

3.8. Borrowing Costs

3.8.1. Borrowing Costs consists of interest and other costs that an entity incurs in connection
with the borrowings of funds. Borrowing costs also includes foreign exchange difference to
the extent regarded as an adjustment to the borrowing costs.

3.8.2. Borrowing costs directly attributable to the acquisition or construction of a qualifying asset
are capitalized as a part of the cost of that asset that necessarily takes a substantial period of
time to complete and prepare the asset for its intended use or sale.

3.8.3. Transaction costs in respect of long-term borrowing are amortized over the tenure of

respective loans using Effective Interest Rate (EIR) method. All other borrowing costs are
recognized in the statement of profit and loss in the period in which they are incurred.

3.9. Financial Instruments

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

3.10. Financial Assets

3.10.1. Recognition and Initial Measurement:

3.10.1.1. All financial assets are initially recognized when the company becomes a party to the
contractual provisions of the instruments. A financial asset is initially measured 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.

3.10.2. Classification and Subsequent Measurement: For purposes of subsequent measurement,
financial assets are classified in four categories:

1. Measured at Amortized Cost;

2. Measured at Fair Value through Other Comprehensive Income (FVTOCI);

3. Measured at Fair Value through Profit or Loss (FVTPL); and

4. Equity Instruments designated at Fair Value through Other Comprehensive Income
(FVTOCI).

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period
the Company changes its business model for managing financial assets.

3.11. Measured at Amortized Cost: A debt instrument is measured at the amortized cost if both the
following conditions are met:

1. The asset is held within a business model whose objective is achieved by both collecting
contractual cash flows; and

2. The contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortized 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 amortization
is included in finance income in the statement of profit or loss. The losses arising from impairment are
recognized in the profit or loss. This category generally applies to trade receivables, cash and bank
balances, loans and other financial assets of the company.

3.12. Measured at FVTOCI: A debt instrument is measured at the FVTOCI if both the following
conditions are met:

3.12.1. The objective of the business model is achieved by both collecting contractual cash flows
and selling the financial assets; and

3.12.2. The asset’s contractual cash flows represent SPPI.

3.13. Debt instruments meeting these criteria are measured initially at fair value plus transaction
costs. They are subsequently measured at fair value with any gains or losses arising on
remeasurement recognized in other comprehensive income, except for impairment gains or
losses and foreign exchange gains or losses. Interest calculated using the effective interest
method is recognized in the statement of profit and loss in investment income.

3.14. Measured at FVTPL: FVTPL is a residual category for debt instruments. Any debt instrument,
which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is
classified as FVTPL. In addition, the company may elect to designate a debt instrument, which
otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. Debt instruments included
within the FVTPL category are measured at fair value with all changes recognized in the
statement of profit and loss. Equity instruments which are, held for trading are classified as at
FVTPL.

3.15. Equity Instruments designated at FVTOCI: For equity instruments, which has not been
classified as FVTPL as above, the company may make an irrevocable election to present in
other comprehensive income subsequent changes in the fair value. The company makes such
election on an instrument-by-instrument basis. The classification is made on initial recognition
and is irrevocable. In case the company decides to classify an equity instrument as at FVTOCI,
then all fair value changes on the instrument, excluding dividends, are recognized in the OCI.
There is no recycling of the amounts from OCI to P&L, even on sale of investment.

3.16. Derecognition:

The Company derecognizes a financial asset on trade date only when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all the risks and
rewards of ownership of the asset to another entity.

3.17. Impairment of Financial Assets:

The Company assesses at each date of balance sheet whether a financial asset or a group of financial
assets is impaired. Ind AS - 109 requires expected credit losses to be measured through a loss
allowance. The company recognizes impairment loss for trade receivables that do not constitute a
financing transaction using expected credit loss model, which involves use of a provision matrix
constructed on the basis of historical credit loss experience. For all other financial assets, expected
credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount
equal to the life time expected credit losses if the credit risk on the financial asset has increased
significantly since initial recognition.

3.18. Financial Liabilities

3.18.1. Recognition and Initial Measurement:

Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans
and borrowings, payables or as derivatives, as appropriate. All financial liabilities are recognized

initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.

3.18.2. Subsequent Measurement:

Financial liabilities are measured subsequently at amortized cost or FVTPL. A financial liability is
classified as FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as
such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains
and losses, including any interest expense, are recognized in profit or loss. Other financial
liabilities are subsequently measured at amortized cost using the effective interest rate method.
Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain
or loss on de-recognition is also recognized in profit or loss.

3.18.3. Financial Guarantee Contracts:

Financial guarantee contracts issued by the company are those contracts that require a payment to
be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a
payment when due in accordance with the terms of a debt instrument. Financial guarantee
contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are
directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the
higher of the amount of loss allowance determined as per impairment requirement of Ind AS 109
and the amount recognized less cumulative amortization.

3.18.4. Derecognition:

A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or expires.

3.18.5. Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet when
there is a legally enforceable right to offset the recognized amounts and there is an intention to
settle on a net basis or realize the asset and settle the liability simultaneously. The legally
enforceable right must not be contingent on future events and must be enforceable in the normal
course of business and in the event of default, insolvency or bankruptcy of the counterparty.

3.19. Earnings Per Share

Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year
attributable to equity holders by the weighted average number of equity shares outstanding during
the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders
adjusted for the effects of potential equity shares by the weighted average number of equity shares
outstanding during the year plus the weighted average number of equity shares that would be
issued on conversion of all the dilutive potential equity shares into equity shares.

3.20. Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. An asset is treated as impaired when the carrying cost of the asset exceeds its
recoverable value being higher of value in use and net selling price. Value in use is computed at

net present value of cash flow expected over the balance Useful lives of the assets. For the
purpose of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other
assets or group of assets (Cash Generating Units - CGU).

An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in
which an asset is identified as impaired. The impairment loss recognized in earlier accounting
period is reversed if there has been an improvement in recoverable amount.

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Mar 31, 2024

Note 2: BASIS OF PREPARATION, MEASUREMENT AND SIGNIFICANT ACCOUNTING
POLICIES

(a) Basis of Preparation and Measurement

(a) Basis for preparation of Accounts:

These financial statements have been prepared in accordance with the Indian Accounting
Standards (hereinafter referred to as the ‘IND AS’) as notified by Ministry of Corporate Affairs
pursuant to Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment
Rules, 2016.

The financial statements have been prepared on accrual and going concern basis. The accounting
policies are applied consistently to all the periods presented in the financial statements. All assets
and liabilities have been classified as current or non-current as per the Company’s normal
operating cycle and other criteria as set out in the Division II of Schedule III to the Companies
Act, 2013. Based on the nature of products and the time between acquisition of assets for
processing and their realisation in cash and cash equivalents, the Company has ascertained its
operating cycle as 12 months for the purpose of current or non-current classification of assets
and liabilities.

The financial statements are presented in INR, the functional currency of the Company. Items
included in the financial statements of the Company are recorded using the currency of the
primary economic environment in which the Company operates (the ‘functional currency’).
Transactions and balances with values below the rounding off norm adopted by the Company
have been reflected as “0” in the relevant notes in these financial statements. The financial
statements of the Company for the year ended 31st March, 2024 were approved.

(b) Current - Non Current classification

All assets and liabilities are classified into current and non-current as per company normal
accounting cycle.

i. Assets

"An asset is classified as current when it satisfies any of the following criteria:

1. It is expected to be realised in, or is intended for sale or consumption in, the Company’s
normal operating cycle;

2. It is held primarily for the purpose of being traded;

3. It is expected to be realised within 12 months after the reporting date; or

4. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a
liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are
classified as non-current.

a. Liabilities

"A liability is classified as current when it satisfies any of the following criteria:

1) It is expected to be settled in the company’s normal operating cycle;

2) It is held primarily for the purpose of being traded;

3) It is due to be settled within 12 months after the reporting date; or

4) The company does not have an unconditional right to defer settlement of the liability for at
least 12 months after the reporting date. Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of equity Instruments do not affect its
classification.

Current liabilities include current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

"Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation
in cash or cash equivalents.

(c) Basis of measurement

These financial statements are prepared under the historical cost convention unless otherwise
indicated.

(d) Key Accounting Estimates and Judgments
Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities at the date of the
financial statements and the result of operations during the reposting year end. Although these
estimates are based upon management’s best knowledge of current events and actions, actual
result could differ from these estimates. Any revisions to the accounting estimates are
recognized prospectively in the current and future years.

(e) Tangible fixed assets

"Tangible fixed assets (except freehold land which is carried at cost) are stated at cost of
acquisition less accumulated depreciation and impairment loss, if any. Cost of acquisition
includes freight inward, duties, taxes and other directly attributable expenses incurred to bring
the assets to their working condition.

(f) Depreciation and amortization

The company has followed the WDV method for the depreciation and amortization of all
tangible and intangible assets. There is no change in the method of depreciation during previous
year.

(g) Investments/ Inventory in shares:

Investments/ Inventory in shares are carried at cost or market price whichever is less. Where an
indication of impairment exists, the carrying amount of the investment is assessed and written
down immediately to its recoverable amount. On disposal of investments in subsidiaries,
associates and joint venture, the difference between net disposal proceeds and the carrying
amounts are recognized in the Statement of Profit and Loss.

(h) Cash and Cash Equivalents

Cash and cash equivalents are short-term (three months or less from the date of acquisition),
highly liquid investments that are readily convertible into cash and which are subject to an
insignificant risk of changes in value.

(i) Trade Receivables and Loans:

Trade receivables are initially recognised at fair value. Subsequently, these assets are held at
amortized cost, using the effective interest rate (EIR) method net of any expected credit losses.
The EIR is the rate that discounts estimated future cash income through the expected life of
financial instrument.

(j) Provisions and Contingent Liabilities:

Provisions are recognized when the Company has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. Provisions are measured at the best estimate of the expenditure
required to settle the present obligation at the Balance Sheet date.

If the effect of the time value of money is material, provisions are discounted to reflect its
present value using a current pre-tax rate that reflects the current market assessments of the
time value of money and the risks specific to the obligation. When discounting is used, the
increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events,
the existence of which will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company or a present
obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount cannot be
made.

(k) Revenue Recognition:

(i) Loan Income

In respect of loan agreements, the income is accrued by applying the impact rate in the
transaction on declining balance on the amount financed for the period of the agreement.

(ii) Dividend income on investments is recognized when the right to receive the same is
established.

(iii) No income is recognized in respect of Non- performing assets, if any, as per the
prudential norms for income recognition introduced for Non-Banking Financial
Corporation by Reserve Bank of India vide its notification o.DFC.NO.119/DG/ (SPT)-
98 date 31-01-1998 and revised notification no. DNBS.192/DG (VL)-2007 dated 22¬
02-2007.

(l) Expenditure:

Expenses are accounted on accrual basis.

(m) Provisions of Assets

The company makes provisions for standard and Non-performing Assets as per the Non¬
Banking Financial (Non-Deposit Accepting of Holding Companies prudential Norms Reserve
Bank) Directions, 2007, as amended from time to time. The company also makes additional
provisions towards loan assets, to the extent considered necessary, based on the management’s
best estimate.

Loan assets which as per the management are not likely to be recovered are considered as bad
debts and written off.

Provisions on standards assets are made as per the notification DNBS.PD.CC.No.
002/03.10.001/2014-15 DATED NOV 10, 2014 issued by Reserve Bank of India.

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Mar 31, 2015

(a) Basis for preparation of Accounts:

The financial Statement have been prepared inconformity with generally accepted accounting principle to comply in all material respect with the notified accounting standards ('AS') under companies accounting standards Rules, as amended, the relevant provisions of the companies Act, 2013 ('the Act') and the guidelines issued by the Reserve Bank of India (RBI) as applicable to an Non - Banking Finance Company ('NBFC'). The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year. The company adopts accrual system of accounting unless otherwise stated.

(b) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reposting year end. Although these estimates are based upon management's best knowledge of current events and actions, actual result could differ from these estimates. Any revisions to the accounting estimates are recognized prospectively in the current and future years.

(C) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Intangible Assets expected to provide future enduring economic benefits are carried at cost less accumulated amortization and impairment losses, if any. Cost comprise of purchase price and directly attributable expenditure on making the assets ready for its intended use.

(D) Depreciation & Impairment of Assets

Depreciation on fixed assets is provided on written down value method, at the useful Lives and in the manner prescribed in Schedule-II to the companies Act, 2013.

(E) Revenue Recognition

(i) Loan Income

In respect of loan agreements, the income is accrued by applying the impact rate in the transaction on declining balance on the amount financed for the period of the agreement.

(ii) No income is recognized in respect of Non- performing assets, if any, as per the prudential norms for income recognition introduced for Non-Banking Financial Corporation by Reserve Bank of India vide its notification o.DFC.N0.119/DG/(SPT)-98 date 31-01-1998 and revised notification no. DNBS.192/DG(VL)-2007 dated 22-02-2007.

(F) Expense Accouting

All expenditure including the interest costs are accounted for on accrual basis.

(G) Provisions of Assets

The company makes provisions for standard and Non-performing Assets as per the Non-Banking Financial (Non-Deposit Accepting of Holding Companies prudential Norms Reserve Bank) Directions, 2007, as amended from time to time. The company also makes additional provisions towards loan assets, to the extent considered necessary, based on the management's best estimate.

Loan assets which as per the management are not likely to be recovered are considered as bad debts and written off.

Provisions on standards assets are made as per the notification DNBS.PD.CC.No. 207/03.02.002/2010-11 issued by Reserve Bank of India.

(H) Provisions, contingents Liabilities and contingent Assets

(i) A Provision is recognized when the company has present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value nad 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.

(ii) Contingent Liabilities are are disclosed separately by way of note to financial statements after careful evaluation by the managements of the facts and legal aspects of the matter involved in case of:

(a) a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

(b) a possible obligation, unless the probability of outflow of resources is remote.

(iii) Contingent Assets are neither recognized, nor disclosed in the financial statements.

(H) Taxation

(i) Provisions for current tax is made in accordance with and at the rates specified under the Income Tax Act, 1961.

(ii) In accordance with Accounting Standard 22- 'Accounting for taxes on Income', issued by the Institute of Chartered Accountant of India.

(I) Earning per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted averages number of equity shares outstanding during the year.

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

(J) Cash and Cash Equivalents

Cash and cash equivalents in the cash flow statements comprise cash at bank and in hand and highly liquid investments that are readily convertible into known amount of cash.

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Mar 31, 2014

(a) Basis for preparation of Accounts: The financial Statement have been prepared inconfirmity with generally accepted accounting principle to comply in all material respect with the notified accounting standards (''AS'') under companies accoputing standards Rules, 2006, as amended, the relevant provisions of the companies Act, 1956 (''the Act'') and the guidelines issued by the Reserve Bank of India (;RBI'') as applicable to an Non - Banking Finance Company (''NBFC''). The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year. The company adopts accrual system of accounting unless otherwise stated.

(b) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reposting year end. Although these estimates are based upon management''s best knowledge of current events and actions, actual result could differ from these estimates. Any revisions to the accounting estimates are recognized prospectively in the current and future years.

(C ) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use. Intangible Assets expected to provide future enduring economic benefits are carried at cost less accumulated amortization and impairment losses, if any. Cot comprise of purchase price and directly attributable expenditure on making the assets ready for its intended use.

(D) Depreciation & Impairment of Assets

Depreciation on fixed assets is provided on written down value method, at the rates and in the manner prescribed in Schedule-XIV to the companies Act, 1956.

(E) Revenue Recognition

(i) Loan Income

In respect of loan agreements, the income is accrued by applying the impact rate in the transaction on declining balance on the amount financed for the period of the agreement.

(ii) No income is recognized in respect of Non- performing assets, if any, as per the prudential norms for income recognition introduced for NonBanking Financial Corporation by Reserve Bank of India vide its notification o.DFC.NO.119/DG/(SPT)-98 date 31-01-1998 and revised notification no. DNBS.192/DG(VL)-2007 dated 22-02-2007.

(F) Expense Accouting

All expenditure including the interest costs are accounted for on accrual basis.

(G) Provisions of Assets

The company makes provisions for standard and Non-performing Assets as per the Non-Banking Financial (Non-Deposit Accepting of Holding Companies prudential Norms Reserve Bank) Directions, 2007, as amended from time to time. The company also makes additional provisions towards loan assets, to the extent considered necessary, based on the management''s best estimate.

Loan assets which as per the management are not likely to be recovered, are considered as bad debts and written off. Provisions on standards assets are made as per the notification DNBS.PD.CC.No. 207/03.02.002/2010-11 issued by Reserve Bank of India.

(H) Provisions, contingents Liabilities and contingent Assets

(i) A Provision is recognized when the company has present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value nad 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.

(ii) Contingent Liabilities are are disclosed separately by way of note to financial statements after careful evaluation by the managements of the facts and legal aspects of the matter involved in case of:

(a) a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

(b) a possible obligation, unless the probability of outflow of resources is remote.

(iii) Contingent Assets are neither recognized, nor disclosed in the financial statements.

(I) Taxation

(i) Provisions for current tax is made in accordance with and at the rates specified under the Income Tax Act, 1961.

(ii) In accordance with Accounting Standard 22- ''Accounting for taxes on Income'', issued by the Institute of Chartered Accountant of India.

(J) Earning per share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted averages number of equity shares outstanding during the year.

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

(K) Cash and Cash Equivalents

Cash and cash equivalents in the cash flow statements comprise cash at bank and in hand and highly liquid investments that are readily convertible into known amount of cash.

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Mar 31, 2013

1. Basis of Preparation of Financial Statements

(a) The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principals in India and the provisions of the Companies Act 1956.

2. Revenue Recongnition

(a) The Company follows mercantile systems of accounting and recognizes income and expenditure on accrual basis.

3. Investments

(a) During the year the company has not made any fresh purchase of shares. During the year the company has sold investments of Edoptica Developers India Limited

(b) Investments (Long Term) are valued a acquistion cost (Including Brokerage & Transfer Expenses). No Provision is made for diminution in the value of long term investment s. As in the opinion of the management the diminution is temporary and not permanent.

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Mar 31, 2012

1. Basis of Preparation of Financial Statements

(a) The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principals in India and the provisions of the Companies Act, 1956,

2. Revenue Recognition

(a) The Company follows mercantile systems of accounting and recognizes income and expenditure on accrual basis.

3. Investments

(a) During the year the company has not made any fresh purchase of shares as Investments.

(b) Investments (Long Term) are valued a acquisition cost (Including Brokerage & Transfer Expenses). No Provision is made for diminution in the value of long term investments. As in the opinion of the management the diminution is temporary and not permanent.

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Mar 31, 2011

1. Fixed Asets: The Companay does not have any Fixed Assets.

2. Investements:

(i) During the year the company has treated all fresh purchase of shares as investments.

(ii) Investments (Long Term) are valued a acquistion cost (including Brokerage & Transfer Expenses). No provision is made for diminution in the value of long term investments. As in the opinion of the management the diminuation is temporary and not permanent.

3. Accounts are maintained on Accrual Basis.