Dar Credit & Capital Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2026

1.

(a) Corporate Information

Dar Credit & Capital Limited, a Non-Banking Finance Company (NBFC), was incorporated on August 10, 1994 with its principal places of business located in Kolkata and having regional office in Jaipur. The company specializes in providing professional financial services to low-income customers, particularly in small towns where access to such services from formal financial institutions is limited. The entity is domiciled in India, having registered office at Business Tower, 206, A.J.C. Bose Road, Unit - 6B, 6th Floor, Kolkata - 700017, having regional office at Jaipur - 212-213, Sri Gopal Tower, C-Scheme Ashok Marg, Jaipur, Rajasthan - 302001.

Dar Credit & Capital Ltd. is engaged in Non-Banking Financial Services, specifically in financial intermediation services.

(b) Summary of Significant Accounting Policies: -

1) Basis of preparation of financial statements

The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under Section 133 of Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and Companies (Accounting Standards) Amendment Rules, 2016 and the pronouncement of ICAI, as applicable. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

2) Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

3) Reserves and Surplus

Pursuant to section 45-IC of the Reserve Bank of India Act, 1934 NBFCs must transfer at least 20% of net profit every year to reserve fund. This fund should not be appropriated except for purpose specified by RBI. Any appropriation must be reported to RBI within 21 days.

4) Securities Premium

The amount received in excess of the face value of the equity shares is recognised as Securities Premium.

5) Property, Plant and Equipment

"Property, Plant and Equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises the purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. All other repair and maintenance costs are recognized in profit or loss as incurred. Any trade discounts, rebates and refundable taxes including GST credit are deducted in arriving at the purchase cost.

Capital work in progress comprises the cost of fixed assets that are not yet to ready for their intended use at the Balance Sheet date.

Gains or losses arising from de-recognition of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized. The company identifies and determines cost of each component/ part of the asset separately, if the component/ part has a cost which is significant to the total cost of the asset and has useful life that is materially different from that of the remaining asset.

Property, plant and equipment held for sale is valued at lower of their carrying amount and net realizable value. Any write-down is recognized in the statement of profit and loss.

6) Depreciation

Depreciation is provided on Straight-Line Basis at method over the useful lives prescribed under Schedule II of the Companies Act, 2013. The residual value of the assets has been considered as Nil, as the management estimates that no significant value would be realisable on disposal of such assets at the end of their useful lives.

7) Investments

Non-current investments are carried at cost less any other-than-temporary diminution in value, determined on the specific identification basis. Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of investment, determined individually for each investment. Cost of investments sold is arrived using average method.

Current investments are investments that are readily realisable and intended to be held for not more than one year from the date of acquisition. Current

investments are carried at the lower of cost and fair value, determined on an individual investment basis.

8) Loans

Loans are valued at Principal Amount.

9) Recognition of Income & Expenditure

Income and Expenditures are recognised on accrual basis except income from Non - performing Asset(s) which is accounted for on actual receipt basis as prescribed by the Prudential Norms for Non - Banking Financial Companies issued by Reserve Bank of India. The Company adopts accrual concepts in preparation of accounts. Claims /Refunds not ascertainable with reasonable certainity are accounted for on final settlement. Interest Income on fixed deposit is recognized on time proportion basis. Other Income is accounted for when right to receive such income is established.

10) Employee benefits

a. Short term employee benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by the employees are recognised as an expense during the period when the employees render their services. These benefits include salaries, wages and other allowances.

b. Long term employee benefits

Defined Contribution scheme

Retirement benefits in the form of provident fund is a defined contribution scheme, under which the company has no obligation, other than the contribution payable to the provident fund. The company recognises contribution payable to the provident fund scheme as an expenditure in which the employee renders the related service.

The company operates one defined benefit plan for its employees, viz., Gratuity liability. The cost of providing the benefits under this plan is determined on the basis of actuarial valuation at the yearend and the resultant figure is shown as an expense also in the Profit & Loss account. Actuarial gains and losses for the defined benefit plans are recognised in full in the period in which they occur in the Statement of Profit & Loss Account.

11) Borrowing Costs & Loan Processing Fee

Borrowing costs are recognized as an expense in the period in which they are incurred, except when they are directly attributable to the acquisition, construction, or

production of a qualifying asset. Qualifying assets are those that require a substantial period of time to prepare for their intended use or sale, and in such cases, the borrowing costs are capitalized as part of the cost of the asset. Effective from mid-September, the company has revised its accounting policy to amortize loan processing costs. Due to the impracticality of determining the retrospective effect, this change has been applied prospectively in accordance with the applicable accounting standards.

Loan Processing fees and other ancilliary costs incurred for arrangement of borrowing are treated as borrowing costs and are amortised over the tenure of the respective borrowing facilities on a time proportionate basis. The unamortised portion of such expenditure is adjusted against the related borrowings, in accordance with the accounting principles.

12) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and 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.

No provision is made for a liability which is contingent in nature and disputed but if material, the same is disclosed by way of notes to the accounts. Contingent assets are neither recognised nor disclosed in the financial statement

13) Earning Per Share

Basic earnings per equity share is computed by dividing profit or loss attributable to owners of the Company by the weighted average number of equity shares outstanding during the financial year. Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and • the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

14) Income Taxes

Income tax expense comprises current tax and deferred tax

Current Tax

Provision for current income tax is made on the basis with the relevant tax regulations applicable to the company.

Deferred Tax

Deferred tax charge or benefit reflects the tax effects of timing differences between accounting income and taxable income for the year. The deferred tax charge or benefit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognised only to the extent the is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed at each balance sheet date and written- down or written-up to reflect the amount that is reasonably/virtually certain to be realised.

15) Provision for Standard / Sub-Standard / Doubtful / Loss Assets

Provision for Standard Assets / Substandard Assets / Doubtful Assets / Loss Assets has been made in

compliance with the directions of Reserve Bank of India. As per the RBI/DOR/2025-26/356 Master Direction No. DOR.STR.REC.No.275/21.04.048/2025 -26 dated 28th November 2025. Company has made general provision of 0.25% of Standard Assets. Other directives of Reserve Bank of India have been duly complied with.

16) Operating Segment

Primary Segment (Business Segment)

The Company is primarily engaged in the business of lending and there are no separate reportable segments identified.

Secondary Segment (Geographical Segment)

Since the business operations of the Company are primarily concentrated in India, the Company is considered to operate only in the domestic segment and therefore there is no reportable geographic segment.

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Mar 31, 2025

Note 1(B): Significant Accounting Policies _

The financial statements of the company have been prepared in accordance with the generally accepted accounting
principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects

1 Basis of Accountin . ^w>th the accounting standards notified under Section 133 of Companies Act, 2013, read together with paragraph 7 of the

- ^a '' Companies (Accounts) Rules, 2014 and Companies (Accounting Standards) Amendment Rules, 2016. The financial

statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies
adopted in the preparation of financial statements are consistent with those of previous year.

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure

2 Use of Estimates : of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best

knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

Pursuant to section 45-IC of the Reserve Bank of India Act, 1934 NBFCs must transfer at least 20% of net profit every year

3 Reserves and Surplus : to reserve fiind. This fund should not be appropriated except for purpose specified by RBI. Any appropriation must be

reported to RBI within 21 days.

Property, Plant and equipment, Capital work in progress are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises the purchase price, borrowing costs if capitalization criteria are
met and directly attributable cost of bringing the asset to its working condition for the intended use. All other repair and
maintenance costs are recognized in profit or loss as incurred. Any trade discounts, rebates and refundable taxes including
GST credit are deducted in arriving at the purchase cost.

^ Plant, property and _ Gains or losses arising from de-recognition of property, plant and equipment are measured as the difference between the net

Equipment '' disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset

is derecognized. The company identifies and determines cost of each component/ part of the asset separately, if the
component/ part has a cost which is significant to the total cost of the asset and has useful life that is materially different
from that of the remaining asset.

Property, plant and equipment held for sale is valued at lower of their carrying amount and net realizable value. Any write¬
down is recognized in the statement of profit and loss.

_ _ ... Depreciation is provided on Straight-Line Basis at rates specified in Schedule II of the Companies Act, 2013 based on

5 Deprec.at.on : _{meMllfeoftheassets}

Non-current investments are carried at cost less any other-than-temporary diminution in value, determined on the specific

6 Investments : identification basis.

Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of
investment, determined individually for each investment. Cost of investments sold is arrived using average method.

7 Loans : Loans are valued at Principal Amount.

Income and Expenditures are recognised on accrual basis except income from Non - performing Asset(s) which is
accounted for on actual receipt basis as prescribed by the Prudential Norms for Non - Banking Financial Companies issued

Recoanition of Income & by Reserve Bank of India.

8 --- : The Company adopts accrual concepts in preparation of accounts.

—^y- Claims /Refunds not ascertainable with reasonable certainity are accounted for,on final settlement.

Interest Income on fixed deposit is recognized on time proportion basis.

Other Income is accounted for when right to receive such income is established.