Accounting Policies of Arco Leasing Ltd. Company

Mar 31, 2024

2.1 Basis of preparalion

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ihd AS) notified under section 133
of Companies Act, 2013 (the Act) [Companies < Indian Accounting Standards) Rules, 201 S| and other relevant provision of the Act.

2.2 Significant accounting judgements, estimates and assumptions

The preparation of financial statements requires rnanagoment to make judgements, estimates and assumptions that effect the reported amounte
of revenues, expenses, assets end liabilities, and the accompanying disclosures. and the disclosure of contingent liabilities. Uncertainty about
these assumptions and estimates could result in outcomes that require a material adjustment to tire- oa trying amount of assets or liabilities affected
in Mture periods

The Company prepared its financial statements based on assumptions end estimates on parameters available at that time. Existing
circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising ih=t are
beyond the control of tin* Company Suoh changes are reflected lh tire assumptions when they ooctr.

Fair value measurement of financial instruments

Fair value is the price that would ba received to sell an asset or paid id transfer a liability in an orderly transaction between market participants sit
tiie measurement dste, regardless cf whether that price is directly observable or estimated using another valuation technique. In estimating the
fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take
those characteristics into account when pricing the- asset or liability at the measurement date. Fair value for measurement and/or cfsdosure
purposes in these financial statements is determined on such a basis, except for share based payment transactions that are wlthih the scope ''Of
Ind AS 102. leasing transactions that are within tin* scope of Ihd AS 17, and measurements that have some similarities to fair Value but are net fair
value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1,2, or 3 based on the degree to which the inputs
to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described
as fallows:

Level 1 inputs are quoted fences {unadjusted) m active markets tor Identical assets or liabilities that the entity can access at the measurement
date;

Level 2 inputs are inputs other than quoted prices Ihcluded wtthlh Level 1. that are observable tor tie asset of liability, elflrer directly of Indirectly;
and

Level 3 Inputs ate Uhobservable Inputs for the asset or liability.

2.3 Income tax

The income tax expense or credit fbr 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 and tc unused tax losses.

me current Income tax charges is calculated on the bass of the tax laws enacted at the ehd of tine reporting period lh India. Management
periodically evaluates positiohs taken m the fax returns with respect to situations in which appricahe tax reflations are subject to interpretation
and establishes provisions where appropriate.

The carrying amount: of defah-ed tax assets is reviewed at each reporting date and reduced to the extent that it is ho longer probable that sufficient
taxable profit Will be available to si low all or part of tire deferred tax asset to be utilised. Unteooghised deferred tax assets are re-assessed at eaeh
reporting date and are recognised to the extent that it has become probable that Mure taxable profits Will allow the deferred tax asset to be
recovered

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Mar 31, 2015

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:-

The financial statements are prepared as a going concern under historical cost convention on accrual basis and in accordance with the Companies Act, 1956. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

b. FIXED ASSETS:-

Fixed Assets are stated at their original cost including incidental expenses related to acquisition and installation and subsequent additional cost in respect of major reconditioning expenses enhancing the standard of performance of the assets less accumulated depreciation. All costs, including financing cost till commencement of commercial production are capitalized.

c. DEPRECIATION

Depreciation has not been provided during the year in accordance with Schedule II of the Companies Act, 2013 with effect from 1st April, 2014 as the carrying amount of tangible fixed assets is either equal to or less than residual value.

d. INVESTMENTS

Investments are classified into current and long-term investments. Current and Long Term Investments are stated at the lower of cost or fair value. Provision for diminution, if any, in the value of long-term investments is made only if such decline is not temporary in nature.

e. BASIS OF ACCOUNTING:-

All income and expenditure items having a material bearing on the financial statements are recognized on mercantile basis except certain items where it is not possible to ascertain the quantum thereof with reasonable accuracy, are accounted for on cash basis.

f. INCOME TAX:-

The Company provides for Income Tax as per provisions of Income Tax Act, 1961.

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Mar 31, 2014

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:-

The financial statements are prepared as a going concern under historical cost convention on accrual basis and in accordance with the Companies Act, 1956. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

b. FIXED ASSETS:-

Fixed Assets are stated at their original cost including incidental expenses related to acquisition and installation and subsequent additional cost in respect of major reconditioning expenses enhancing the standard of performance of the assets less accumulated depreciation. All costs, including financing cost till commencement of commercial production are capitalized.

c. DEPRECIATION:-

The Company has provided depreciation on fixed assets under Written Down Value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

d. INVESTMENTS:-

Investments are classified into current and long-term investments. Current Investments are stated at the lower of cost or fair value. Long-term investments are stated at cost. Provision for diminution, if any, in the value of long-term investments is made only if such decline is not temporary in nature.

e. BASIS OF ACCOUNTiNG:-

All income and expenditure items having a material bearing on the financial statements are recognized on mercantile basis except certain items where it is not possible to ascertain the quantum thereof with reasonable accuracy, are accounted for on cash basis.

f. INCOME TAX:-

The Company provides for Income Tax as per provisions of Income Tax Act, 1961.

Current & Deferred Taxation

Provision for the current Tax is made on the basis of the amount of tax payable on taxable income for the year in accordance with the Income Tax Act, 1961, Deferred Tax resulting from "timing differences" between book and taxable profit wherever material is accounted for using the tax rates and laws that have been enacted or substantially enacted as on balance sheet date. Deferred Tax Asset, subject to consideration of prudence, are recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

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Mar 31, 2013

A. BASIS OF PREPARED :

The financial statements are prepared as a going concern under historical cost convention on accrual basis and in accordance with tfc: Companies Act, I m. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

b. FIXED ASSFTSV

exiled Assets are staled at uteri original cost inducting incidental expenses rotate to acquisition and installation and subsequent additional cost in respect of major reconditioning expenses enhancing the standard of performance of the assets less accumulated depreciation. Ail ousts, including financing cost till commencement of commercial production are capitalized.

c. Depreciation

Tote Company has provided depreciation on fixed assets under Written Down Value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

d. INVESTMENTS:-

Investments'' are current ano long-term investments.

Laurent investments are sue attune rower 01 cost or fair value, Long-term investments arc stated at cost. Provision diminution, if any, in the value of long- term investments is made only if such decline is not temporary in nature.

e. BASIS OF ACCOUNTING:

Ait income ana expcnuiturc items name a material Bearing on ten financial statements arc rccogniaeo on mercantile basis except certain items where it is not possible to ascertain the quantum thereof with reasonable accuracy, are accounted for on cash basis.

f. INCOME TAX

Tube Company provides for Income Tan as per Tax Ace, urgent & Deferred Tanation

Provision tor [he current Tax is made on the bails of the amount of [ax payable on taxable income for the year in accordance with the Income Tax Act, 1961, Deferred Tax resulting from "timing differences between bonk and taxable prolong where year material Es aero anted the tax rates and laws mat have been enacted or substantially enacted as on balance sheet date. Deferred Tax Asset, subject to consideration of prudence are recogmzed and carried forward only to the extent tilt the is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized,

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Mar 31, 2012

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:-

The financial statements are prepared as a going concern under historical cost convention on accrual basis and in accordance with the Companies Act, 1956. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

b. FIXED ASSETS:-

Fixed Assets are stated at their original cost including incidental expenses related to acquisition and installation and subsequent additional cost in respect of major reconditioning expenses enhancing the standard of performance of the assets less accumulated depreciation. All costs, including financing cost till commencement of commercial production are capitalized.

c. DEPRECIATION

The Company has provided depreciation on fixed assets under Written Down Value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

d. INVESTMENTS:-

Investments classified as long term Investments are stated at cost. Provision for diminution, if any, in the value of long term investments is made to recognize a decline other than temporary in the fair value of investments.

The fair value of a long term investment is ascertained with reference to its market value, investee's assets and results and the expected cash flows from the investment as well as the strategic importance to the Company. Current Investments are stated at lower of cost and fair value.

e. BASIS OF ACCOUNTING:-

All income and expenditure items having a material bearing on the financial statements are recognized on mercantile basis except certain items where it is not possible to ascertain the quantum thereof with reasonable accuracy, are accounted for on cash basis.

f. INCOME TAX:-

The Company provides for Income Tax as per provisions of Income Tax Act, 1961.

Current & Deferred Taxation

Provision for the current Tax is made on the basis of the amount of tax payable on taxable income for the year in accordance with the Income Tax Act, 1961, Deferred Tax resulting from "timing differences" between book and taxable profit wherever material is accounted for using the tax rates and laws that have been enacted or substantially enacted as on balance sheet date. Deferred Tax Asset, subject to consideration of prudence, are recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

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Mar 31, 2010

A. BASIS OF PREPRATION OF FINANCIAL STATEMENTS:

The financial statements are prepared as a going concern under historical cost convention on accrual basis and in accordance with the Companies Act, 1956. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

b. FIXED ASSTES:

Fixed Assets are stated at their original cost including incidental expenses related to acquisition and installation and subsequent additional cost in respect of major reconditioning expenses enhancing the standard of performance of the assets less accumulated depreciation. All costs, including financial cost till commencement of commercial production are capitalized.

c. DEPRECIATION:

The Company has provided depreciation on fixed assets under Written Down Value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

d. BASIS OF ACCOUNTING:

All income and expenditure items having a material bearing on the financial statements are recognized on mercantile basis except certain items where it is not possible to ascertain the quantum thereof with reasonable accuracy, are accounted for on cash basis.

e. INCOME TAX:

The company provides for Income tax as per provisions of Income Tax Act, 1961.

Current & Deferred Taxation

Provisions for the current Tax is made on the basis of the amount of tax payable on taxable income for the year in accordance with the Income Tax Act, 1961, Deferred Tax resulting from "Time differences" between book and taxable profit wherever material is accounted for using the tax rates and laws that have been enacted or substantially enacted as on balance sheet date. Deferred tax Asset, subject to consideration of prudence, are recognized and carried forward only to the extent that there is reasonable certainty that sufficient further taxable income will be available against which such deferred tax assets can be realized.