Accounting Policies of SRG Fingrow Finance Ltd. Company

Mar 31, 2025

a) Basis of Preparation

The Financial Statements are prepared and presented under the historical cost convention in
accordance with the Generally Accepted Accounting Principles (GAAP), and provisions referred to in
Section 133 of The Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and
other relevant provisions of The Companies Act, 2013 and accounting standards issued by The Institute
of Chartered Accountants of India (ICAI) as applicable. The Company also follows the directions
prescribed by the Reserve Bank of India (RBI) for Non-Banking Finance Companies to the extent
applicable.

b) Income Recognition

Interest income on loans are accounted on accrual basis. Loans are classified into "Performing and Non¬
Performing Assets in terms of the directions issued by the RBI from time to time". Income recognition
on non-performing advances are made in accordance with the RBI guidelines. Additional Finance
Charges, Cheque bounce charges, Field visit charges and other penal / servicing charges are recognized
as income on realization due to uncertainty in their collection.

c) Interest on Loans

Repayment of the Loans are by way of equated monthly installments (EMIs) comprising principal and
interest. The interest is calculated on the outstanding balances at monthly rests. EMIs commence once
the entire loan is disbursed. Pending commencement of EMI, pre-equated monthly installment interest
(PEMI) is payable every month. Interest on loan assets classified as "Non-Performing" is recognized
only on actual receipt.

d) Income from Investment

Interest income from investment is accounted on an accrual basis. Dividend Income on investments is
recognized when the right to receive the same is established.

e) Segment Reporting

The Company is primarily engaged in the business of financing. All the activities of the Company
revolve around the main business. Accordingly, there are no separate business and geographical
reportable segment, as per the Accounting Standard on ''Segment Reporting'' (AS 17) issued by The
Institute of Chartered Accountants of India notified under The Companies (Accounting Standards)
Amendment Rules, 2011.

f) Property, Plant and Equipment

Property, Plant and Equipment (PPE) are stated at cost less accumulated depreciation and impaired
losses, if any.

Depreciation on PPE is provided on pro-rata basis on "Written Down Value Method" from the date of
installation based on life assigned to each asset in accordance with Schedule II of The Companies Act,
2013.

g) Intangible Assets & Amortization: -

The Company does not have any intangible Asset.

h) Impairment of Assets

Impairment losses (if any) on Assets are recognized in accordance with the Accounting Standard on
''Impairment of Assets'' (AS 28). The Company assesses at each Balance sheet date whether there is any
indication that an asset may be impaired. If any such indication exists, the Company estimates the
recoverable amount of the assets. An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value.

i) Leases

In accordance with the Accounting Standard on Leases (AS 19), the following disclosures in respect of
operating leases are made:

The Company has taken office premises under operating leases which are generally cancellable and
have no specific obligation for renewal. The total lease payments are recognized as per lease terms in
the Statement of Profit and Loss under ''Rent Expenses'' under note 20.

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Mar 31, 2024

1. SIGNIFICANT ACCOUNTING POLICIES:

a) Basis of Preparation

The Financial Statements are prepared and presented under the historical cost convention in accordance with
the Generally Accepted Accounting Principles (GAAP), and provisions referred to in Section 133 of The
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions
of The Companies Act, 2013 and accounting standards issued by The Institute of Chartered Accountants of India
(ICAI) as applicable. The Company also follows the directions prescribed by the Reserve Bank of India (RBI) for
Non-Banking Finance Companies to the extent applicable.

b) Income Recognition

Interest income on loans are accounted on accrual basis. Loans are classified into "Performing and Non¬
Performing Assets in terms of the directions issued by the RBI from time to time”. Income recognition on non¬
performing advances are made in accordance with the RBI guidelines. Additional Finance Charges, Cheque
bounce charges, Field visit charges and other penal / servicing charges are recognized as income on realization
due to uncertainty in their collection.

c) Interest on Loans

Repayment of the Loans are by way of equated monthly installments (EMIs) comprising principal and interest.
The interest is calculated on the outstanding balances at monthly rests. EMIs commence once the entire loan is
disbursed. Pending commencement of EMI, pre-equated monthly installment interest (PEMI) is payable every
month. Interest on loan assets classified as “Non-Performing” is recognized only on actual receipt.

d) Income from Investment

Interest income from investment is accounted on an accrual basis. Dividend Income on investments is
recognized when the right to receive the same is established.

e) Segment Reporting

The Company is primarily engaged in the business of financing. All the activities of the Company revolve around
the main business. Accordingly, there are no separate business and geographical reportable segment, as per the
Accounting Standard on ''Segment Reporting'' (AS 17) issued by The Institute of Chartered Accountants of India
notified under The Companies (Accounting Standards) Amendment Rules, 2011.

f) Property, Plant and Equipment

Property, Plant and Equipment (PPE) are stated at cost less accumulated depreciation and impaired losses, if
any.

Depreciation on PPE is provided on pro-rata basis on “Written Down Value Method” from the date of installation
based on life assigned to each asset in accordance with Schedule II of The Companies Act, 2013.

g) Intangible Assets & Amortization: -

The Company does not have any intangible Asset.

h) Impairment of Assets

Impairment losses (if any) on Assets are recognised in accordance with the Accounting Standard on
''Impairment of Assets'' (AS 28). The Company assesses at each Balance sheet date whether there is any
indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable
amount of the assets. An asset is treated as impaired when the carrying cost of assets exceeds its recoverable
value.

i) Leases

In accordance with the Accounting Standard on Leases (AS 19), the following disclosures in respect of operating
leases are made:

The Company has taken office premises under operating leases which are generally cancellable and have no
specific obligation for renewal. The total lease payments are recognised as per lease terms in the Statement of
Profit and Loss under ''Rent Expenses'' under note 20.

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Mar 31, 2015

1. Basic of preparation

The financial statements are prepared and presented under the historical cost convention in accor- dance with the Generally Accepted Accounting Principles (GAAP), and provisions referred to Sec 133 of the Companies Act, 2013 and accounting standards issued by the Institute of Chartered Account- ants of India (ICAI) as Applicable. The Company also follows the directions prescribed by the Reserve Bank of India (RBI) for NBFC''s.

2. Income Recognition

Interest income on loans and hire charges are accounted on accrual basis. Loans are classified into "Performing and non- performing assets in terms of the directions issued by the RBI from time to time". Income recognition on non-performing advances are made in accordance with the RBI guide- lines. Additional Finance Charges, Cheque bounce charges, Field visit charges and other penal / ser- vicing charges are recognised as income on realisation due to uncertainty in their collection.

3. Segment Reporting

The Company is primarily engaged in the business of financing. All the activities of the Company re- volve around the main business. Further, the Company does not have any separate geographic seg- ments other than India. As such there are no separate reportable segments as per AS-17 "Segmental Reporting".

4. Fixed Assets And Depreciation

Fixed Assets are stated at cost, Depreciation on fixed assets is provided on pro-rata basis on "Written Down Value Method" from the date of installation based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013.

5. Provision on Non-Performing Assets

Non- performing assets are identified and categorized into Sub-standard, Doubtful and Loss Category based on the guidelines and direction issued by RBI. Provisions for non-performing assets are made in the accordance with the said guidelines

6. Contingent Liabilities

All the known liabilities where ever Materials are provided for.

7. Investments

The Company''s investments are valued at cost.

8. Retirement Benefits :

Liability for employee benefits, both short and long term, for present and past services which are due as per terms of employment are recorded in accordance with Accounting Standard (AS) 15 "Employee Benefits" as notified by the Companies (Accounting Standards)Rules,2006.

i) Gratuity

The management is of the opinion that since none of the employees of the company were in con- tinuous service as provided in the act accordingly making provision of the gratuity does not arise.

ii) Pension

The management is also of the opinion that the payment under Pension Act is not applicable to the Company.

9. Accounting For Taxes On Income

Income tax expenses is the aggregate amount of current tax and deferred tax charge, Taxes on in- come are accrued in the same period as the revenue and expenses to which they relate. Current Tax is determined in accordance with the Income Tax Act 1961, on the amount of tax payable in respect of income for the year.

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differ- ences arising between the carrying value of assets and liabilities. Deferred tax assets are recognized only after giving due consideration to prudence. Deferred tax assets and liabilities are measured us- ing tax retards and tax laws that have been enacted (or) substantially enacted by the balance sheet date.

10. Earnings Per Share

The Company reports basic and diluted earnings per equity share in accordance with (AS) 20, Earnings per share issued by the Institute of Chartered accountants of India. Basic earnings share have been computed by divided net income by the weighted average number of equity shares outstanding for the period. Diluted earnings per equity shares have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

Earnings per share (EPS) is calculated as follows:

Particulars 2014-15 2013-14

Net profit after tax 2358122 1722852

Weighted Average Number of Equity Shares (No''s) 3875400 2361901

Earnings Per Share- Basic and Diluted 0.61 0.73

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Mar 31, 2014

1. Basic of preparation

The financial statements are prepared and presented under the historical cost convention in accordance with the Generally Accepted Accounting Principles (GAAP), and provisions of the Companies Act, 1956 and accounting standards issued by the Institute of Chartered Accountants of India (ICAI) as Applicable. The Company also follows the directions prescribed by the Reserve Bank of India (RBI) for NBFC''s.

2. Income Recognition

Interest income on loans and hire charges are accounted on accrual basis. Loans are classified into "Performing and non-performing assets in terms of the directions issued by the RBI from time to time". Income recognition on non-performing advances are made in accordance with the RBI guidelines.

Additional Finance Charges, Cheque bounce charges, Field visit charges and other penal / servicing charges are recognised as income on realisation due to uncertainty in their collection.

3. Segment Reporting

The Company is primarily engaged in the business of financing. All the activities of the Company revolve around the main business. Further, the Company does not have any separate geographic segments other than India. As such there are no separate reportable segments as per AS-17 "Segmental Reporting".

4. Fixed Assets And Depreciation

a. Fixed Assets are stated at cost, Depreciation on fixed assets is provided on pro-rata basis from the date of installation on written down value method in accordance with Schedule XIV of the Companies Act, 1956.

b. Assets costing till 5000 are being depreciated fully in the year of acquisition.

5. Provision on Non-Performing Assets

Non- performing assets are identified and categorized into Sub-standard, Doubtful and Loss Category based on the guidelines and direction issued by RBI. Provisions for non-performing assets are made in the accordance with the said guidelines

6. Contingent Liabilities

All the known liabilities where ever Materials are provided for.

7. Investments

The Company''s investments are valued at cost.

8. Retirement Benefits :

Liabilities on accounts of Gratuity has not been ascertained and provided for as none of the employees have completed the qualifying service even on accrual basis the amount have not been ascertained, same being insignificant.

9. Accounting For Taxes On Income

Income tax expenses is the aggregate amount of current tax and deferred tax charge, Taxes on income are accrued in the same period as the revenue and expenses to which they relate. Current Tax is determined in accordance with the Income Tax Act 1961, on the amount of tax payable in respect of income for the year.

Deferred Tax Assets is recognized on timing difference, between taxable income and accounting income which originate in one period and are capable of reversal is one or more subsequent period. The tax effect calculated on the accumulated timing differences at the yearend based on tax and laws enacted or substantially enacted as of the Balance Sheet.

10. Earnings Per Share

The Company reports basic and diluted earnings per equity share in accordance with (AS) 20, Earnings per share issued by the Institute of Chartered accountants of India. Basic earnings share have been computed by dividend net income by the weighted average number of equity shares outstanding for the period. Diluted earnings per equity shares have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.