Accounting Policies of Emerald Finance Ltd. Company

Mar 31, 2025

Note 2 Summary of Significant Accounting Policies
2.1. Basis of Preparation and Presentation

a) Statement of compliance

The Company has adopted Indian Accounting Standards (Ind AS) with effect from 1^st April, 2017,
with transition date of 1^st April, 2016, pursuant to notification issued by Ministry of Corporate Affairs
dated 16^th February, 2015, notifying the Companies (Indian Accounting Standards) Rules, 2015.
Accordingly, the financial statements comply with Ind AS as prescribed under section 133 of the
Companies Act, 2013 (the "Act"), read together with Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015, relevant provisions of the Act and other accounting principles generally
accepted in India.

The financial statements for the year ended 31^stMarch 2025 are prepared under Ind AS.

b) Functional and presentation currency

The management has determined the currency of the primary economic environment in which the
Company operates i.e., functional currency, to be ''Indian Rupees'' [INR (Rs.)]. The financial
statements are presented in INR (Rs.) which is Company''s functional and presentational currency.

c) Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following items

d) Critical accounting estimates and judgments

In preparing these financial statements, management has made judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized prospectively.

Judgements

Information about judgments made in applying accounting policies that have the most significant
effects on the amounts recognized in the financial statements.

2.2. Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these
financial statements and in preparing the opening Ind AS Balance Sheet as at 1^st April, 2016 for the
purposes of the transition to Ind AS.

a) Current and non-current classification

All assets and liabilities are classified into current and non-current.

Assets

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

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

> It is held primarily for the purpose of being traded;

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

> 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.

Liabilities

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

> It is expected to be settled in the Company''s normal operating cycle;

> It is held primarily for the purpose of being traded;

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

> The Company does not have an unconditional right to defer settlement of the liability for at
least 12months after the reporting period. 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 the current portion of financial liabilities some part of which may be
noncurrent. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Operating cycle

The operating cycle is the time between the acquisition of assets for processing and their realization
in cash or cash equivalents. Based on the nature of operations and the time between the acquisition of
assets for processing and their realization in cash and cash equivalents, the Company has ascertained
its operating cycle being a period of 12 months for the purpose of classification of assets and liabilities
as current and non- current.

b) 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.

i. Financial assets

Recognition and initial measurement

All financial assets are initially recognised when the Company becomes a party to the contractual
provisions of the instrument. All financial assets are 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.

Classification and subsequent measurement

Classification

For the purpose of subsequent measurement, the Company classifies financial assets in following
categories:

> Financial assets at amortized cost;

> Financial assets at fair value through profit or loss (FVTPL)

A financial asset being ''debt instrument'' is measured at the amortized cost if both of the following

conditions are met

> The financial asset is held within a business model whose objective is to hold assets for
collecting contractual cash flows; and

> 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.

A financial asset being equity instrument is measured at FVTPL.

All financial assets not classified as measured at amortized cost are measured at FVTPL. On initial
recognition, the Company may irrevocably designate a financial asset that otherwise meets the
requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.

ii. Financial liabilities

Recognition and initial measurement

All financial liabilities are initially recognised when the Company becomes a party to the contractual
provisions of the instrument. All financial liabilities are initially measured at fair value minus, in the
case of financial liabilities not recorded at fair value through profit or loss, transaction costs that are
attributable to the liability.

c) Equity share capital

Proceeds from issuance of ordinary shares are recognized as equity share capital in equity.

d) Cash and cash equivalents

Cash and cash equivalents include cash in hand, bank balances and any deposits with original
maturities of three months or less (that are readily convertible to known amounts of cash and cash
equivalents and subject to an insignificant risk of changes in value). However, for the purpose of the
statement of cash flows, in addition to above items, any bank overdrafts / cash credits that are
integral part of the Company''s cash management, are also included as a component of cash and cash
equivalents.

e) Revenue recognition

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. Revenue is measured at the fair value of the
consideration received/receivable net of trade discounts, GST or any other taxes as applicable from
time to time.

The Company assesses its revenue arrangements against specific criteria, i.e., whether it has exposure
to the significant risks and rewards associated with the rendering of services, in order to determine if
it is acting as a principal or as an agent.

Sale of Services

Revenue from the sale of services is recognized when the services has been provided to the client and
are invoiced, at which time all the following conditions are satisfied:

1. the Company has transferred to the buyer the significant risks and rewards of ownership of
the goods or services;

2. the Company retains neither continuing managerial involvement to the degree usually
associated with services provided.

3. the amount of revenue can be measured reliably;

4. it is probable that the economic benefits associated with the transaction will flow to the
Company; and

5. the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Interest income

Interest income from a financial asset is recognised when it is probable that the economic benefits will
flow to the Company and the amount of income can be measured reliably. Interest income is accrued
on, time basis, by reference to the principal outstanding and at the effective interest rate applicable,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to that asset''s net carrying amount on initial recognition.

Dividend income

Dividend income from investments is recognized when the shareholder''s right to receive payment
has been established.

f) Income tax

Income tax expense comprises current and deferred tax. It is recognized in statement of profit and

loss, except to the extent that it relates to items recognized directly in equity or in other
comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the
year and any adjustment to the tax payable or receivable in respect of previous years. The amount of
current tax reflects the best estimate of the tax amount expected to be paid or received after
considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax
laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set
off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis
or simultaneously.

Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible
temporary differences to the extent that is probable that future taxable profits will be available
against which they can be used. Future taxable profits are determined based on reversal of temporary
differences. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that
it is no longer probable that the related tax benefit will be realized; such reductions are reversed
when the probability of future taxable profits improves.

Unrecognised deferred tax assets are reassessed at each reporting date and recognized to the extent
that it has become probable that future taxable profits will be available against which they can be
used. Deferred tax is measured at the tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on the laws that have been enacted or substantively enacted
by the reporting date.

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

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority, but they intend
to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized
simultaneously.

Minimum Alternative Tax (''MAT'') expense under the provisions of the Income Tax Act, 1961 is
recognized as an asset when it is probable that future economic benefit associated with it in the form
of adjustment of future income tax liability, will flow to the Company and the asset can be measured
reliably. MAT credit entitlement is set off to the extent allowed in the year in which the Company
becomes liable to pay income taxes at the enacted tax rates. MAT credit entitlement is reviewed at
each reporting date and is written down to reflect the amount that is reasonably certain to be set off

in future years against the future income tax liability. MAT Credit Entitlement has been presented as
Deferred Tax in Balance Sheet.

g) Earnings per share

The Company presents basic and diluted earnings per share (EPS) data for its equity shares. Basic
EPS is calculated by dividing the profit or loss attributable to equity shareholders of the Company by
the weighted average number of equity shares outstanding during the period.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent
(after adjusting for interest on the convertible preference 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.

For Emerald Finance limited

Sanj ay Aggarwal Anubha Aggarwal

Managing Director Director

Sheetal Kapoor Amarjeet Kaur

CFO Company secretary

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Mar 31, 2024

Note 1 Corporate Information

M/s Emerald Finance Limited (Formerly "Emerald Leasing Finance and Investment Company Limited) (the ''Company'') is a Listed Limited Company domiciled in India and incorporated under the provisions of the Companies Act on 22-11-1983. The Company is a NBFC registered with RBI vide certificate No B -06.00615 dated 15^th Dec 2018 as amended.

Note 2 Summary of Significant Accounting Policies 2.1. Basis of Preparation and Presentation

a) Statement of compliance

The Company has adopted Indian Accounting Standards (Ind AS) with effect from 1^st April, 2017, with transition date of 1^st April, 2016, pursuant to notification issued by Ministry of Corporate Affairs dated 16^th February, 2015, notifying the Companies (Indian Accounting Standards) Rules, 2015. Accordingly, the financial statements comply with Ind AS as prescribed under section 133 of the Companies Act, 2013 (the "Act"), read together with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, relevant provisions of the Act and other accounting principles generally accepted in India.

The financial statements for the year ended 31^stMarch 2024 are prepared under Ind AS.

b) Functional and presentation currency

The management has determined the currency of the primary economic environment in which the Company operates i.e., functional currency, to be ''Indian Rupees'' [INR (Rs.)]. The financial statements are presented in INR (Rs.) which is Company''s functional and presentational currency.

c) Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following items

Items	Measurement Basis
Certain financial assets and liabilities	Fair value
Net defined benefit (asset)/ liability	Fair value of plan assets less present value of defined benefit obligations

d) Critical accounting estimates and judgments

In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively.

Judgements

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements.

2.2. Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in preparing the opening Ind AS Balance Sheet as at 1^st April, 2016 for the purposes of the transition to Ind AS.

a) Current and non-current classification

All assets and liabilities are classified into current and non-current.

Assets

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

> It is expected to be realised in, or is intended for sale or consumption in, the Company''s normaloperating cycle;

> It is held primarily for the purpose of being traded;

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

> 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.

Liabilities

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

> It is expected to be settled in the Company''s normal operating cycle;

> It is held primarily for the purpose of being traded;

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

> The Company does not have an unconditional right to defer settlement of the liability for at least 12months after the reporting period. 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 the current portion of financial liabilities some part of which may be noncurrent. All other liabilities are classified as noncurrent.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Operating cycle

The operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Based on the nature of operations and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle being a period of 12 months for the purpose of classification of assets and liabilities as current and non- current.

b) 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.

i. Financial assets

Recognition and initial measurement

All financial assets are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial assets are 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.

Classification and subsequent measurement

Classification

For the purpose of subsequent measurement, the Company classifies financial assets in following categories:

> Financial assets at amortized cost;

> Financial assets at fair value through profit or loss (FVTPL)

A financial asset being ''debt instrument'' is measured at the amortized cost if both of the following conditions are met

> The financial asset is held within a business model whose objective is to hold assets for collecting contractual cash flows; and

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

A financial asset being equity instrument is measured at FVTPL.

All financial assets not classified as measured at amortized cost are measured at FVTPL. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

ii. Financial liabilities

Recognition and initial measurement

All financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial liabilities are initially measured at fair value minus, in the case of financial liabilities not recorded at fair value through profit or loss, transaction costs that are attributable to the liability.

c) Equity share capital

Proceeds from issuance of ordinary shares are recognized as equity share capital in equity.

d) Cash and cash equivalents

Cash and cash equivalents include cash in hand, bank balances and any deposits with original maturities of three months or less (that are readily convertible to known amounts of cash and cash equivalents and subject to an insignificant risk of changes in value). However, for the purpose of the statement of cash flows, in addition to above items, any bank overdrafts / cash credits that are integral part of the Company''s cash management, are also included as a component of cash and cash equivalents.

e) Revenue recognition

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. Revenue is measured at the fair value of the consideration received/receivable net of trade discounts, GST or any other taxes as applicable from time to time.

The Company assesses its revenue arrangements against specific criteria, i.e., whether it has exposure to the significant risks and rewards associated with the rendering of services, in order to determine if it is acting as a principal or as an agent.

Sale of Services

Revenue from the sale of services is recognized when the services has been provided to the client and are invoiced, at which time all thefollowing conditions are satisfied:

1. the Company has transferred to the buyer the significant risks and rewards of ownership of the goods or services;

2. the Company retains neither continuing managerial involvement to the degree usually associated withservices provided.

3. the amount of revenue can be measured reliably;

4. it is probable that the economic benefits associated withthe transaction will flow to the Company; and

5. the costs incurred or to be incurred in respect of thetransaction can be measured reliably.

Interest income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on, time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

Dividend income

Dividend income from investments is recognized when the shareholder''s right to receive payment has been established.

f) Income tax

Income tax expense comprises current and deferred tax. It is recognized in statement of profit and loss, except to the extent that it relates to items recognized directly in equity or in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on reversal of temporary differences. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves.

Unrecognised deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

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

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

Minimum Alternative Tax (''MAT'') expense under the provisions of the Income Tax Act, 1961 is recognized as an asset when it is probable that future economic benefit associated with it in the form of adjustment of future income tax liability, will flow to the Company and the asset can be measured reliably. MAT credit entitlement is set off to the extent allowed in the year in which the Company becomes liable to pay income taxes at the enacted tax rates. MAT credit entitlement is reviewed at each reporting date and is written down to reflect the amount that is reasonably certain to be set off in future years against the future income tax liability. MAT Credit Entitlement has been presented as Deferred Tax in Balance Sheet.

g) Earnings per share

The Company presents basic and diluted earnings per share (EPS) data for its equity shares. Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent (after adjusting for interest on the convertible preference 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.

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Mar 31, 2015

1. ACCOUNTING POLICIES (AS-1)

(a) The Financial Statements are prepared under historical cost convention of accrual basis of accounting and coin ply with mandatory accounting standards and statements: issued by Institute of Chartered Accountants of India.

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

[c) The presentation of Financial Statements in Conformity with Indi an GAAP requires judgments, estimates and liabilities assumption tu bv made that affect reportable amount of assets and liabilities, disclosure of contingent liabilities on the date of financial statements and the reportable amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the year in which the results are known/ materialized.

2. RE VEND E RECOG NIT 10 N (AS -9)

All the expenses and Income to the extent ascertainable with reasonable certainty considered payable and receivable respectively, except for the following items, are accounted for on mercantile basis.

(a) Gratuity Payment

(b) Disposal of Sundry items & Scrap etc

3- FIXED ASSETS (AS-ID] All the Fixed Assets are stated at their original cost including taxes, duties, freight and other incidental expenses related to the acquisition and installation.

4. DEPRECIATION (AS-A) Depreciation on Fixed Assets is provided to the extent of depreciation amount on the Written D own Value (WW) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule El to the Companies Act, 2013.

5. CONTINGENT LIABILTIES There arc no contingent liabilities

6. PRIOR PERIOD St EXTRA DIKARV ITEMS AND CHANGES IN AOHINT POLICIES (AS-51

There h no prior urinary Hems which needs to be disclosed in the profit and law account separately .and they is no change in any accounting policy which has 43 material effect on the financial statements and is expected to he disclosed in accordance with the Accounting standards fAS-5] relating to disclosure of Prior Period & Extra Ordinary Items and Change in Accounting Policies notified by the Central Government In exercise of the powers conferred by sub-section (2) of section MS of the Income Tax: Act, 1961,

7. KET1REMENT BENEFITS (AS- IS)

The provision of the Employees State Insurance Act, IHS and Employees Provident Fund & Miscellaneous Provisions Act, 1952 are nut. applicable the Company

8. ACCOUNTING FOR TAXES ON INCOME (AS-22)

The Accounting Standards "Accounting for Taxes on Income" issued by the institute of Chartered

Accountants of India applicable to the concerns where there 5 liming difficult. between Taxable Income and Accounting Income giving rise to deferred tax asset or liability as the case maybe.

9. IMPAIRMENT OF ASSETS AS-28)

The company on an annual baste nukes an assessment of any Indicator that may lead impairment of assets. If such indicator etc, the Company estimate the recoverable amount of the Assets, if such recoverable amount is less inert the carrying amount, then the carrying amount is reduced Co its recoverable amount by treating the difference between; 'hem as impairment loss and is charged the statement of profit and loss.