Accounting Policies of Smart Finsec Ltd. Company

Mar 31, 2025

2. Significant accounting policies

A. Property, plant and equipment

Property, plant and equipment are stated at original cost net of tax/ duty credit availed, less accumulated
depreciation and accumulated impairment losses, when significant part of the property, plant and equipment
are required to replace at intervals, the company derecognized the replaced part and recognized the new parts
with its own associated useful life and it deprecated accordingly. Likewise when a major inspection is
performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair and maintenance cost are recognized in the statement of the
profit and loss as incurred. The present value of the expected cost for the decommissioning of the asset after
its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

Property, plant and equipment are derecognised from the financial statement, either on disposal or when no
economic benefits are expected from its use or disposed. Losses arising in the case of retirement of property,
plant and equipment and gain or losses arising from disposal of property, plant and equipment are a
recognized in the statement of profit and loss in the year of occurrence.

B. Inventories

Inventory includes shares, securities and stock in trade.

a) Inventories are valued at lower of cost or net realisable value. Cost includes purchase price, taxes
(excluding those subsequently recoverable by the enterprise from the concerned revenue authorities), and
other expenditure incurred in bringing such inventories to their present location and condition.

b) Net realisable value is the estimated selling price in the ordinary course of business.

c) The comparison of cost or net realisable value is made on every type of security.

C. Investments

Investments are classified into long term investments and current investments. Investments that are intended
to be held for one year or more are classified as long-term investments and investments that are intended to
be held for less than one year are classified as current investments. Long term investments are valued at fair
market value through profit or loss (FVTPL) and difference in market value and cost is recognised in Profit &
Loss account as "Net gain or Net loss on fair value changes".

Current investments are valued at cost or market/fair value, whichever is lower .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.

Intangible assets

Capital expenditure on purchase and development of identifiable assets without physical substance is
recognized as intangible assets in accordance with principles given under AS-26 - Intangible Assets.

The amortization period and the amortization method for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected
pattern of consumption of future economic benefits embodied in the assets are considered to modify the
amortization period or method, as appropriate, and are treated as changes in accounting estimates.

Depreciation and amortization

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated
residual value. Based on technical evaluation carried out by management, depreciation on fixed assets has
been provided for all tangible assets on the straight line method as per the useful life and residual value
prescribed under Schedule II, Part-C to the Companies Act, 2013. Residual value has been assessed at 5% of
cost of the assets.

Depreciation and amortisation on addition to fixed assets is provided on pro-rata basis from the date the assets
are ready for intended use. Depreciation and amortisation on sale/ discard from fixed assets is provided for up
to the date of sale, deduction or discard of fixed assets as the case may be. Individual assets costing Rs.5,000 or
below are depreciated/ amortised in full in the year of purchase. Depreciation/ Amortisation method and
useful lives are reviewed at the each reporting date. If the useful life of an asset is estimated to be significantly
different from previous estimates, the depreciation/ amortisation period is changed accordingly

D. Impairment of Non-financial assets

Property, plant and equipment, intangible assets and assets classified as investment property with finite life are
evaluated for recoverability whenever there is any indication that their carrying amounts may not be
recoverable. If any such indication exists, the recoverable amount (i.e. higher of the market value less cost to
sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash
flows that are largely independent of those from other assets. In such cases, the recoverable amount is
determined for the Cash Generating Unit (CGU) to which the asset belongs.

If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying
amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized in the
statement of profit and loss.

An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates
used to determine the recoverable amount. The carrying amount of the asset is increased to its revised
recoverable amount, provided that this amount does not exceed the carrying amount that would have been
determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for
the asset in prior years.

Impairment losses on continuing operations, including impairment on inventories are recognized in the
statement of profit and loss, except for properties previously revalued with the revaluation taken to other
comprehensive income. For such properties, the impairment is recognized in OCI up to the amount of any
previous revaluation surplus.

E. Cash and cash equivalents

Cash and cash equivalents includes cash on hand and at bank, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less that are readily convertible to a
known amount of cash and are subject to an insignificant risk of changes in value.

For the purpose of the Statement of Cash Flows, cash and cash equivalents consists of cash and short term
deposits, as defined above, net of outstanding bank overdraft as they being considered as integral part of the
Company''s cash management.

F. Leases

Operating Leases

Leases where the Lessor effectively retains substantially all the risks and benefits of ownership of the leased
item are classified as operating lease. Operating Lease payments are recognized as an expense in the
Statement of Profit and Loss on accrual basis or SLM.

G. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted for
the effects of all potential dilutive equity shares.

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Mar 31, 2024

Data Not Available

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Mar 31, 2015

Not available

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Mar 31, 2014

(1) METHOD OF ACCOUNTING

1.1 The financial statements have been prepared and presented in accordance with the generally accepted accounting principles (GAPP) in india under historical cost convention on accural basis and comply in all material aspects with the accounting standards and the relevant provisions prescribed in companies act 1956, besides the guidelines of the Institute of chartered accountants of India, except otherwise states.

1.2 The Company generally, recognises income and expenditure on an accrual basis except those with significant uncertainties.

(2) USES OF ESTIMATES

2.1 The Preparation of financial statements in conformity with generally accepted accounting principles requires management to estimates and assumption to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The actual outcome may be different from the estimates. Differences between actual results and estimates are recognised in the period in which the results are known or materialise.

2.2 Current and non current classification

All assets and liabilities are classified into current and non- current.

2.2.1 Assets

An asset is classified as current when it satisfies any of the following criteria:

(a) it is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within 12 months after the reporting date; or

(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities

An liabilities is classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within 12 months after the reporting date; or

(d) The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as non-current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

(3) FIXED ASSETS

3.1 Fixed assets (Tangible and Intangible) are stated at original cost including relevant taxes (other than those subsequently recoverable from tax authorities), duties freight and other incidental expenses related to acquisition/ installation of the respective

(4) DEPRECIATION

4.1 Depreciation on Fixed Assets is provided on straight line method basis as per rates prescribed under Schedule XIV to the companies Act, 1956 as prevailing except in case of certain assets such as depreciation has been provided at higher rates based on useful life as determined by the management.

4.2 In respect of fixed assets added/disposed off during the year depreciation is provided on pro-rata basis with referance to the month of addition/deduction, however, in case of new projects the depreciation from the date of commencing of such project is changed to the statement of profit and loss.

(5) REVENUE RECOGNITIONS

TURNOVER

5.1 Revenue from Property is recognised when legal title passes to the buyer. Rental income & income from NBFC activities are recognised as per terms of contract/ agreement.

(6) BORROWING COSTS

Borrowing Costs that are attributable to acquisition, construction or production of qualifying assets are capitalised as part of cost of such assets. A qualifying assets is an assets that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are charged to the profit and loss account.

(7) TAXES ON INCOME

7.1 Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per Income Tax Act, 1961.

7.2 Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised only to the extent that there is reasonable certainity that sufficient future taxable profits will be available against which such deferred tax can be realised. Deferred tax assets & liabilities are measured using the tax rates & tax laws that have been enacted or substantially enacted by the Balance Sheet date.

(8) EVENTS OCCURRING AFTER BALANCE SHEET Events Occurring after balance sheet date have been considered in preparation of financial statements.

(9) PRELIMINARY AND PREOPERATIVE EXPENSES

Preliminary & Pre-operative expenses are amortised over a period of 5 years on a pro rata basis beginning from the year of incurrence.

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Mar 31, 2013

(1) METHOD OF ACCOUNTING

1.1 The financial statements have been prepared and presented in accordance with the generally accepted accounting principles (GAPP) in india under historical cost convention on accural basis and comply in all material aspects with the accounting standards and the relevant provisions prescribed in companies act 1956, besides the guidelines of the Institute of chartered accountants of india, except otherwise states.

1.2 The Company generally, recognises income and expenditure on an accrual basis except those with significant uncertainties.

(2) USES OF ESTIMATES

2.1 The Preparation of financial statements in conformity with generally accepted accounting principles requires management to estimates and assumption to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The actual outcome may be different from the estimates. Differences between actual results and estimates are recognised in the period in which the results are known or materialise.

2.2 Current and non current classification

All assets and liabilities are classified into current and non- current.

2.2.1 Assets

An asset is classified as current when it satisfies any of the following criteria:

(a) it is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within 12 months after the reporting date; or

(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities

An liabilities is classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within 12 months after the reporting date; or

(d) The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as non-current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

(3) FIXED ASSETS

3.1 Fixed assets (Tangible and Intangible) are stated at original cost including relevant taxes (other than those subsequently recoverable from tax authorities), duties freight and other incidental expenses related to acquisition/ installation of the respective

(4) DEPRECIATION

4.1 Depreciation on Fixed Assets is provided on straight line method basis as per rates prescribed under Schedule XIV to the companies Act, 1956 as prevailing except in case of certain assets such as depreciation has been provided at higher rates based on useful life as determined by the management.

4.2 In respect of fixed assets added/disposed off during the year depreciation is provided on pro-rata basis with referance to the month of addition/deduction, however, in case of new projects the depreciation from the date of commencing of such project is changed to the statement of profit and loss.

(5) REVENUE RECOGNITIONS

TURNOVER

5.1 Revenue from Property is recognised when legal title passes to the buyer. Rental income & income from NBFC activities are recognised as per terms of contract/ agreement.

(6) BORROWING COSTS

Borrowing Costs that are attributable to acquisition, construction or production of qualifying assets are capitalised as pert of cost of such assets. A qualifying assets is an assets that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are charged to the profit and loss account.

(7) TAXES ON INCOME

7.1 Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per Income Tax Act, 1961.

7.2 Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised only to the extent that there is reasonable certainity that sufficient future taxable profits will be available against which such deferred tax can be realised. Deferred tax assets & liabilities are measured using the tax rates & tax laws that have been enacted or substantially enacted by the Balance Sheet date.

(8) EVENTS OCCURRING AFTER BALANCE SHEET

Events Occurring after balance sheet date have been considered in preparation of financial statements.

(9) PRELIMINARY AND PREOPERATIVE EXPENSES

Preliminary & Pre-operative expenses are amortised over a period of 5 years on a pro rata basis beginning from the year of incurrence.

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Mar 31, 2012

(1) METHOD OF ACCOUNTING

1.1 The financial statements have been prepared and presented in accordance with the generally accepted accounting principles (GAPP) in india under historical cost convention on accural basis and comply in all material aspects with the accounting standards and the relevant provisions prescribed in companies act 1956, besides the guidelines of the Institute of chartered accountants of india, except otherwise states.

1.2 The Company generally, recognises income and expenditure on an accrual basis except those with significant uncertainties.

(2) USES OF ESTIMATES

2.1 The Preparation of financial statements in conformity with generally accepted accounting principles requires management to estimates and assumption to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The actual outcome may be different from the estimates. Differences between actual results and estimates are recognised in the period in which the results are known or materialise.

2.2 Current and non current classification

All assets and liabilities are classified into current and non- current.

2.2.1 Assets

An asset is classified as current when it satisfies any of the following criteria:

(a) it is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within 12 months after the reporting date; or

(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities

An liabilities is classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within 12 months after the reporting date; or

(d) The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as non-current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

(3) FIXED ASSETS

3.1 Fixed assets (Tangible and Intangible) are stated at original cost including relevant taxes (other than those subsequently recoverable from tax authorities), duties freight and other incidental expenses related to acquisition/ installation of the respective

(4) DEPRECIATION

4.1 Depreciation on Fixed Assets is provided on straight line method basis as per rates prescribed under Schedule XIV to the companies Act, 1956 as prevailing except in case of certain assets such as depreciation has been provided at higher rates based on useful life as determined by the management.

4.2 In respect of fixed assets added/disposed off during the year depreciation is provided on pro-rata basis with referance to the month of addition/deduction, however, in case of new projects the depreciation from the date of commencing of such project is changed to the statement of profit and loss.

(5) REVENUE RECOGNITIONS

TURNOVER

5.1 Revenue from Property is recognised when legal title passes to the buyer. Rental income & income from NBFC activities are recognised as per terms of contract/ agreement.

(6) BORROWING COSTS

Borrowing Costs that are attributable to acquisition, construction or production of qualifying assets are capitalised as pert of cost of such assets. A qualifying assets is an assets that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are charged to the profit and loss account.

(7) TAXES ON INCOME

7.1 Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per Income Tax Act, 1961.

7.2 Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised only to the extent that there is reasonable certainity that sufficient future taxable profits will be available against which such deffered tax can be realised. Deffered tax assets & liabilities are measured using the tax rates & tax laws that have been enacted or substantially enacted by the Balance Sheet date.

(8) EVENTS OCCURRING AFTER BALANCE SHEET

Events Occurring after balance sheet date have been considered in preparation of financial statements.

(9) PRELIMINARY AND PREOPERATIVE EXPENSES

Preliminary & Pre-operative expenses are amortised over a period of 5 years on a pro rata basis beginning from the year of incurrence.