B. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements are prepared and presented under the historical cost convention and evaluated on
a going-concern basis using the accrual system of accounting in accordance with the accounting principles
generally accepted in India (Indian GAAP) and the requirements of the Companies Act, including the Accounting
Standards as prescribed by the Section 133 of the Companies Act, 2013 ("the Act") read with Rule 7 of Companies
(Accounts) Rules, 2014. Further financial statements represent a true and fair view of financial position for the
period. For this purpose, a major consideration governing the selection and application of accounting policies
followed were prudence, substance over the form and materiality.
2. USE OF ESTIMATES
The preparation of financial statements in conformity with Indian GAAP 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. Although these estimates are based on management's best knowledge
of current events and actions, uncertainty about these assumptions and estimate could result in outcomes
requiring a material adjustment to carrying amount of assets and liabilities in future period.
3. PROPERTY, PLANT AND EQUIPMENTS
Fixed assets are stated at cost of acquisition, which comprise all related expenses upto acquisition and
installation of the fixed assets less accumulated depreciation till balance sheet. The items of PPE of the company
have been valued by including Purchase price, any direct attributable costs, Decommissioning, Restoration &
similar liabilities & excludes costs of opening a new facility, cost of introducing a new product or services, cost
of conducting activities in a new location or with a new class of customer, administration and other general
overhead costs.
Whereas, depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.
Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Each
part of an item of PPE with a cost that is significant in relation to the total cost of the item is depreciated
separately. The depreciation method applied to assets is reviewed at each financial year end. And if there is any
change in the method then such change is accounted for as a change in accounting estimate in accordance with
AS 5, Net Profit or Loss for the period, Prior Period items and changes in Accounting Policies.
4. DEPRECIATION
Depreciation on tangible assets is calculated on a Written down value basis using the rates arrived at, based
on the useful lives as per Companies Act 2013. Intangible assets, if any, are amortized on a WDV basis over the
useful economic life as per Schedule II of the Company Act, 2013.
5. FOREIGN EXCHANGE TRANSACTIONS :
i. Transactions in foreign currency are recorded at exchange rates prevailing on the dates of respective
transactions.
ii. The difference in translation and realized gains and losses on foreign exchange transactions are recognized
in the Profit and Loss Account.
iii. The transactions that are due at the end of financial year are revalued at closing rate and the difference of
realized gains and losses on foreign exchange transactions are recognized in the Profit and Loss Account.
6. BORROWING COSTS
Borrowing Costs that are directly attributable to acquisition or construction of assets are capitalized as part of
the cost of such assets. A qualifying asset is one that necessary takes substantial period of the time to get ready
for its intended use. All other borrowing costs are charged to the statement of profit and loss for the period for
which they are incurred.
7. IMPAIRMENT OF ASSETS
Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired,
such assets are subject to a test of recoverability, based on discounted cash flows expected from use or disposal
thereof. If the assets are impaired, loss is recognized.
8. INVESTMENTS
Investments, which are readily realizable and intended to be held for not more than one year from the date on
which such investments are made, are classified as current investments. All other investments are classified as
long-term investments.
Current investments are carried in the financial statements historical cost only. Long-term investments are
carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary
in the value of the investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged
or credited to the statement of profit and loss.
9. REVENUE RECOGNITION
> Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer
and there is no uncertainty on realization of the revenue and, it can be reliably measured and it is reasonable
to expect ultimate collection.
> Interest income is recognized on a time proportion basis considering the amount outstanding and the
interest rate applicable.
10. EMPLOYEE BENEFITSi. Short term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering the service are classified as
short-term employee benefits. Benefits such as salaries and other incentives are recognized at the
undiscounted amount in the Profit and Loss Account in the period in which the employee renders the
related service.
ii. Long term Employee benefits:
The Company has opted to change the policy of accounting of Gratuity, and during the interim financial
period, Company has accounted all gratuity expenses on the basis of actuarial valuation certificate as
obtained at period ended.
Provident Fund benefit to employees is provided for on accrual basis and charged to Profit and Loss
Account.
11. SEGMENT ACCOUNTING
The Company is engaged in providing services through lending partners, insurance partners, credit card providers
in the context of Accounting Standard 17 on Segment Reporting. Therefore, no separate segment disclosures
are made by the Company.
12 ACCOUNTING FOR TAXES ON INCOME
> Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing
differences that result between taxable profits and accounting profits. Deferred tax in respect to future
timing differences which originate during the tax holiday period but reverse after the tax holiday period, is
recognized in the period in which the timing differences originate. For this purpose, the timing difference
which originates first is considered to reverse first. Deferred tax assets and liabilities are measured using
the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The
effect on deferred tax assets and liabilities of change in tax rates is recognized in the period that includes
the enactment date. Deferred tax assets on timing differences are recognized only if there is a reasonable
certainty that sufficient future taxable income will be available against which such deferred tax assets can
be realized.
> However, deferred tax assets on the timing differences when unabsorbed depreciation and losses carried
forward exist, are recognized only to the extent that there is virtual certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realised. Deferred tax assets are
reassessed for the appropriateness of their respective carrying values at each balance sheet date.
13. AMORTIZATION OF INTANGIBLE ASSETS :
> Intangible assets are amortized over the useful life as per the AS -26 "Intangible Assets.
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