Accounting Policies of Smart Finsec Ltd. Company

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.