అకౌంట్స్ గమనికలుPasupati Fincap Ltd.

Mar 31, 2025

2.08 Segment Accounting

Based on "Management Appoarch" as defined in Ind AS 108- Operating Segments, the executive
Management Committee evaluates the Group''s performance and allocates the resources based on an
analysis of various performance indicators by business segments.

The Group prepares its segment information in conformity with the accounting policies adopted for
preparing and presenting the consolidated statements of the Group as a whole.

2.09 Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments
and right-of-use assets representing the right to use the underlying assets.

(a) Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of
right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and
lease payments made at or before the commencement date less any lease incentives received. Right-of-
use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated
useful lives of the asset.

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects
the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment. Refer to the accounting policies in section
''Impairment of non-financial assets''.

(b) Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments
(including in substance fixed payments) less any lease incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase option reasonably certain to be exercised by the
Company and payments of penalties for terminating the lease, if the lease term reflects the Company
exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are
recognised as expenses (unless they are incurred to produce inventories) in the period in which the event
or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at
the lease commencement date because the interest rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is
remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g.,
changes to future payments resulting from a change in an index or rate used to determine such lease
payments) or a change in the assessment of an option to purchase the underlying asset.

(c) Short-term leases and leases of low-value assets

Leases for which the Company is a lessor is classified as finance or operating lease. Leases in which the

Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are
classified as operating leases. Rental income arising is accounted for on a straight-line basis over the
lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognised over the lease term on the same basis as rental
income. Contingent rents are recognised as revenue in the period in which they are earned.

Company as a lessee:

Finance Leases

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers
substantially all the risks and rewards incidental to ownership to the Company is classified as a finance
lease. Finance leases are capitalized at the commencement of the lease at the inception date fair value of
the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are
apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of
interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the
statement of profit or loss, unless they are directly attributable to qualifying assets, in which case they are
capitalized in accordance with Company''s general policy on the borrowing cost.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty
that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the
shorter of the estimated useful life of the asset and the lease term.

Operating leases

Operating lease payments are recognized as an expense in the Statement of Profit or Loss account on
straight line basis over the lease term, unless the payments are structured to increase in line with the
expected general inflation to compensate for the lessor in expected inflationary cost increase.

2.10 Government Grants

Government Grants are recognized at their fair value when there is reasonable assurance that the grant
will be received and all the attached conditions will be complied with.

There are no grants or subsidies received from the governement during the previous year.

2.11 Fair Value Measurement

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on
the presumption that the transaction to sell the asset or transfer the liability takes place either:

(i) In the principal market for asset or liability, or

(ii) In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best
interest.

A fair value measurement of a non- financial asset takes into account a market participant''s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another market
participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable inputs and
minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

Level 1- Quoted(unadjusted) market prices in active markets for identical assets or liabilities

Level 2- Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable

Level 3- Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization
( based on the lowest level input that is significant to fair value measurement as a whole ) at the end of
each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value
hierarchy as explained above.

2.12 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are described below. The Company based its
assumptions and estimates on parameters available when the financial statements were prepared. Existing
circumstances and assumptions about future developments, however, may change due to market changes
or circumstances arising beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.

Judegments

In the process of applying the Company’s accounting policies, management has made the following
judgments, which have the most significant effect on the amounts recognized in the financial statements.

a) Revenue from contracts with customers

The Company applied the following judgements that significantly affect the determination of the
amount and timing of revenue from contracts with customers:

Determining method to estimate variable consideration and assessing the constraint

In estimating the variable consideration, the Company is required to use either the expected value
method or the most likely amount method based on which method better predicts the amount of
consideration to which it will be entitled. The Company determined that the expected value method
is the appropriate method to use in estimating the variable consideration for revenue from
operations. Before including any amount of variable consideration in the transaction price, the
Company considers whether the amount of variable consideration is constrained. The Company
determined that the estimates of variable consideration are not constrained based on its historical
experience, business forecast and the current economic conditions. In addition, the uncertainty on
the variable consideration will be resolved within a short time frame.

b) Fair value measurement of financial instrument

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken
from observable markets where possible, but where this is not feasible, a degree of judgment is
required in establishing fair values. Judgments include considerations of inputs such as liquidity risk,
credit risk and volatility. Changes in assumptions about these factors could affect the reported fair
value of financial instruments.

c) Impairment of Financial assets

The impairment provisions of financial assets are based on assumptions about risk of default and
expected loss rates. the Company uses judgment in making these assumptions and selecting the
inputs to the impairment calculation, based on Company''s past history ,existing market conditions as
well as forward looking estimates at the end of each reporting period.

d) Impairment of non-Financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the
Company estimates the asset''s recoverable amount. An assets recoverable amount is the higher of an
asset''s CGU''S fair value less cost of disposal and its value in use. It is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those from other
assets or Company''s of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use , the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset. In determining fair value less costs of disposal, recent market transactions
are taken into account. If no such transactions can be identified, an appropriate valuation model is
used. These calculations are corroborated by valuation multiples, or other fair value indicators.

M3 Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to insignificant risk of
changes in value.

For the purpose of statement of cash flow, cash & cash equivalents consists of cash and short term
deposits as defined above, net of outstanding bank overdrafts as they are considered as integral part of
Company''s cash management.

---

Mar 31, 2012

Previous year's figures have been regrouped and rearranged wherever considered necessary.

1 Figures are rounded off to the nearest rupee.

---

Mar 31, 2010

1. Contingent Liability-NIL

2. Information pursuant to paragraphs 3, 4 and 4D of part U of Schedule VI of the Companies Act, 1956 are as follows:-

Expenditure on employees in receipt of Remuneration of not less than Rs.24,00,000/- if employed for the whole year or 200,000/- per month if employed for part of the year-NIL

3. Sundry Debtors, Loan & Advances and Sundry Creditors

a. In the opinion of the Board of Directors the Current Assets, Loans & Advances are approximately of the value stated if realised in the course of business. The provisions for all known liabilities are adequate and not in excess of the amount reasonably required.

b. Balance of Sundry Creditors, Sundry Debtors and Advances are subject to confirmation and reconciliation.

4. Previous year figures have been re-grouped or recast whenever found necessary.

5. Paise have been rounded off to the nearest rupee.

6. In the opinion of Board of Director and to the best of their knowledge and belief, the value of realization of Current Assets, Loan and Advances in the ordinary course of business will not be less than the amount at which they are stated in Balance Sheet.