Pro Fin Capital Services Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES ACCOUNTING CONVENTION

The financial statements of the company are prepared under historical cost convention and in accordance with the Generally Accepted Accounting Principles (GAAP) in India and comply with the accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 2013. The Financial Statements are prepared on accrual basis under the historical cost convention .

USE OF ESTIMATES

In preparing the accounts in accordance with generally accepted accounting principles, the management is required to make estimates and assumptions that effect the reported balances of assets and liabilities as at the date of financial statements and reported amounts of income and expenses during the period. Examples of such estimates include Provision For Income Tax, etc.

BASIS OF ACCOUNTING

The Company follows mercantile system of accounting in accordance with requirements of the Companies Act, 2013.

REVENUE RECOGNITION

a. ) The company recognises interest income using effective interest rate on all financial assets. The company recognises interest income on accrual basis.

b. ) Transactions in respect of Investments/ Dealing in Securities are recognised on settlement date.

c. ) All other income are recognised on accrual basis.

EXPENSES

a. ) Borrowing Costs on Financial Liabilities are accounted on accrual basis

b. )Expenses are accounted on accrual basis.

FIXED ASSETS

Fixed assets are stated at the cost of acquisition, net of Goods and Service Tax less accumulated depreciation and impairment loss, if any. All costs, including incidental costs related to acquisition and installation till the asset is put to use commercially or otherwise, attributable to fixed assets are capitalized.

DEPRECIATION & AMORTISATION

Depreciation on tangible fixed assets is provided at the written down value of assets based on the usefull life of the assets as prescribed in schedule II of the companies Act 2013.

STOCK-IN-TRADE (INVENTORIES)

During the current year quoted shares are valued at cost or Net Realisable Value whichever is lower.

TAXATION

a) Income tax comprises of the current tax provision and the net change in the deferred tax asset or liability in the year.

b) Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between carrying values of the assets and liabilities and their respective tax basis. Deferred tax assets are recognized subject to management''s judgement that realization is more likely than not. Deferred Tax Assets or Liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. The effect on deferred tax assets or liabilities of a change in tax rates is recognized in the period of enactment of the change.

RETIREMENT BENEFITS

Provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952 are charged to Profit & Loss account on accrual basis.

All other contributions / employee benefits are charged to Profit and Loss account on accrual basis.

INVESTMENTS

Invetsments are measured at amortised cost.

IMPAIRMENT OF FIXED ASSETS

An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment loss recognized in prior year is recorded when there is an indication that impairment loss recognized earlier for the assets no longer exists or has decreased.

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Mar 31, 2016

A. SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Accounting and preparation of Financial Statements.

The Financial Statements have been prepared under the historical cost convention, in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and the provisions of the Companies Act, 1956. All Income and Expenditure, having a material bearing on the Financial Statements, are recognized on accrual basis.

2. Use of Estimates

The presentation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in which the results are known / materialized.

3. Fixed Assets.

Fixed Assets of the Company are valued at cost which includes allocation / apportionment of direct and indirect expenses incurred in relation to such Fixed Assets.

4. Depreciation.

Depreciation on fixed assets is provided on Written down Method in accordance with the provisions of Section 123(2) of The companies Act 2013 which was made effective from 01-04-2014.

5. Investment (Long Term)

a) Quoted Investment: Long term investments are valued scrip wise at cost (including expenses & STT incurred there on) unless there is a permanent diminution in the value of securities, in which event, the same has been valued at nominal value of Rs.1/- per company.

b) Unquoted investment has been valued at lower of cost or breakup value. Where the break value is negative or where the annual accounts are not available, the same has been valued at a nominal value of Re. 1/- per company.

6. Stock in Trade (Inventories) Shares:

Quoted shares are valued scrip wise at lower of carrying cost or market value (includes the expenses & STT incurred there on).

7. Revenue Recognition

a) Transactions in respect of Investment/ Dealing in Securities are recognized on trade dates

b) Dividend/interest on debenture, income is accounted for on cash basis.

c) Profit / Loss on sale of securities are accounted for on weighted average method and is recognized on settlement date. Profit on sale of securities is netted with the loss on sale of securities, if any.

8. Expenditure

Expenses are in general accounted on accrual basis except for ex-gratia, leave encashment. Adequate provisions have been made in the accounts for all known losses and liabilities.

9. Retirement benefit of Employees.

i) Gratuity - In accordance with the Indian laws, the Company provides for gratuity, a defined benefit plan covering all employees, who have completed more than 5 years.

ii) Leave Encashment - Encashment of un-availed leaves credit is being done at the year-end.

10. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

11. Tax on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act, 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of unabsorbed depreciation and carry forward losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses.

12. Earning Per Share

The Company reports basic and diluted Earnings per Share (EPS) in accordance with Accounting Standard-20 on Earning per Share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of shares outstanding during the year.

13. Impairment of Assets

An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment loss recognized in prior year is recorded when there is an indication that impairment loss recognized earlier for the assets no longer exists or has decreased.

14. Miscellaneous Expenditure

Preliminary/ pre-operative/ Share Issue Expenses have been amortized equally over a period of ten years.

15. Money received against share warrants

The amount of Rs 9, 28, 85,755 is the amount received on share warrants issued on preferential allotment basis on 07-04-2014, yet to be converted into equity shares. The said warrants Pursuant to Section 81(1 A) of the Companies Act, 1956, were issued at a conversion price of 113.30/- per equity share of the Company, arrived at in accordance with the SEBI Regulations in this regard .These warrants were allotted on 20™ OCT 2015 to non promoters. The warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before 20™ OCT 2015 The Company had allotted and issued 16, 00,000 equity shares of Rs 10 each to warrant holders who converted the warrants into Equity Shares after payment of balance 75% of the amount in respect of the remaining warrant holders. The company has forfeited warrants of Rs 1, 13, 30,000/- due to non receipt on 75% of balance amount before 20^th OCT 2015.

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Mar 31, 2014

1. Basis of Accounting and preparation of Financial Statements.

The Financial Statements have been prepared under the historical cost convention, in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and the provisions of the Companies Act, 1956. All Income and Expenditure, having a material bearing on the Financial Statements, are recognized on accrual basis.

2. Use of Estimates

The presentation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in which the results are known / materialized.

3. Fixed Assets.

Fixed Assets of the Company are valued at cost which includes allocation / apportionment of direct and indirect expenses incurred in relation to such Fixed Assets.

4. Depreciation.

Depreciation on fixed assets is provided on Written down Method at the rates and in the manner prescribed in Schedule XIV to the Companies'' Act 1956.

5. Investment (Long Term)

a) Quoted Investment: Long term investments are valued scrip wise at cost (including expenses & STT incurred there on) unless there is a permanent diminution in the value of securities, in which event, the same has been valued at nominal value of Rs.1/- per company.

b) Unquoted investment has been valued at lower of cost or breakup value. Where the break value is negative or where the annual accounts are not available, the same has been valued at a nominal value of Re. 1/- per company.

6. Stock in Trade (Inventories)

Shares:

Quoted shares are valued scrip wise at lower of carrying cost or market value (includes the expenses & STT incurred there on).

7. Revenue Recognition

a) Transactions in respect of Investment / Dealing in Securities are recognised on trade dates

b) Dividend/interest on debenture, income is accounted for on cash basis.

c) Profit / Loss on sale of securities are accounted for on weighted average method and is recognized on settlement date. Profit on sale of securities is netted with the loss on sale of securities, if any.

8. Expenditure

Expenses are in general accounted on accrual basis except for ex-gratia, leave encashment. Adequate provisions have been made in the accounts for all known losses and liabilities.

9. Retirement benefit of Employees.

i) Gratuity - In accordance with the Indian laws, the Company provides for gratuity, a defined benefit plan covering all employees, who have completed more than 5 years.

ii) Leave Encashment - Encashment of un-availed leaves credit is being done at the year-end.

10. Provision, Contingent Liabilities and Contingent Assets

Provisions Involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

11.Tax on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act, 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of unabsorbed depreciation and carry forward losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses.

12. Earning Per Share

The Company reports basic and diluted Earnings per Share (EPS) in accordance with Accounting Standard-20 on Earning per Share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of shares outstanding during the year.

13. Impairment of Assets

An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Prof it and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment loss recognized in prior year is recorded when there is an indication that impairment loss recognized earlier for the assets no longer exists or has decreased.

14. Miscellaneous Expenditure

Preliminary/pre-operative/Share Issue Expenses have been amortized equally over a period of ten years.

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Mar 31, 2013

1. Basis of Accounting and preparation of Financial Statements

The Financial Statements have been prepared under the historical cost convention, in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and the provisions of the Companies Act, 1956. All Income and Expenditure, having a material bearing on the Financial Statements, are recognized on accrual basis.

2. Use of Estimates

The presentation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in which the results are known / materialized.

3. Fixed Assets

Fixed Assets of the Company are valued at cost which includes allocation / apportionment of direct and indirect expenses incurred in relation to such Fixed Assets.

4. Depreciation

Depreciation on fixed assets is provided on Written down Method at the rates and in the manner prescribed in Schedule XIV to the Companies'' Act 1956. Fixed assets whose cost individually is Rs. 5,000/- or less are depreciated at 100% in the year purchase. Depreciation on addition / deletion is worked out on pro rata basis.

5. Investment (Long Term)

a) Quoted Investment: Long term investments are valued scrip wise at cost (including expenses & STT incurred there on) unless there is a permanent diminution in the value of securities, in which event, the same has been valued at nominal value of Rs.1/- per company.

b) Unquoted investment has been valued at lower of cost or breakup value. Where the break value is negative or where the annual accounts are not available, the same has been valued at a nominal value of Re. 1/- per company.

6. Stock in Trade (Inventories)

Shares:

Quoted shares are valued scrip wise at lower of carrying cost or market value (includes the expenses & STT incurred there on).

7. Revenue Recognition

a) Transactions in respect of Investment / Dealing in Securities are recognised on trade dates

b) Dividend/interest on debenture, income is accounted for on cash basis.

c) Profit / Loss on sale of securities are accounted for on weighted average method and is recognized on settlement date. Profit on sale of securities is netted with the loss on sale of securities, if any.

8. Expenditure

Expenses are in general accounted on accrual basis except for exgratia, leave encashment. Adequate provisions have been made in the accounts for all known losses and liabilities.

9. Retirement benefit of Employees.

i) Gratuity - In accordance with the Indian laws, the Company provides for gratuity, a defined benefit plan covering all employees, who have completed more than 5 years.

ii) Leave Encashment - Encashment of un-availed leaves credit is being done at the year-end.

10. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

11. Tax on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act, 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of unabsorbed depreciation and carry forward losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses.

12. Earning Per Share

The Company reports basic and diluted Earnings per Share (EPS) in accordance with Accounting Standard-20 on Earning per Share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of shares outstanding during the year.

13. Impairment of Assets

An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment loss recognized in prior year is recorded when there is an indication that impairment loss recognized earlier for the assets no longer exists or has decreased.

14. Miscellaneous Expenditure

Preliminary/ pre-operative/ Share Issue Expenses have been amortized equally over a period often years.

15. Money received against share warrants

The amount of Rs 9075500 is the amount received on share warrants issued on preferential allotment basis on 10th October 2011, yet to be converted into equity shares. The said warrants Pursuant to Section 81(1 A) of the Companies Act, 1956, were issued at a conversion price of 22.43/- per equity share ofthe Company, arrived at in accordance with the SEBI Regulations in this regard .These warrants were allotted on 10th October, 2011 to non promoters. The warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before 9th April 2013. The Company had allotted and issued 7,00,000 equity shares of Rs 10 each to warrant holders who converted the warrants into Equity Shares after payment of balance 75% of the amount In respect of the remaining warrant folders, in the event the warrants are not converted into shares within the said period, the Company is eligible to forfeit the amounts received towards the warrants.

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Mar 31, 2010

1. Basis of Accounting and preparation of Financial Statements.

The Financial Statements have been prepared under the historical cost convention, in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and the provisions of the Companies Act, 1956. All Income and Expenditure, having a material bearing on the Financial Statements, are recognized on accrual basis.

2. Use of Estimates

The presentation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in which the results are known / materialized.

3. Fixed Assets.

Fixed Assets of the Company are valued at cost which includes allocation / apportionment of direct and indirect expenses incurred in relation to such Fixed Assets.

4. Depreciation.

Depreciation on fixed assets is provided on Written down Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act 1956. Fixed assets whose cost individually is Rs. 5,000/- or less are depreciated at 100% in the year purchase. Depreciation on addition / deletion is worked out on pro rata basis.

5. Investment (Long Term)

a) Quoted Investment: Long term investments are valued scrip wise at cost unless there is a permanent diminution in the value of securities, in which event, the same has been valued at nominal value of Rs.1/- per company.

b) Unquoted investment has been valued at lower of cost or breakup value. Where the break value is negative or where the annual accounts are not available, the same has been valued at a nominal value of Re. 1/- per company.

6. Stock in Trade (Inventories) Shares:

Quoted shares are valued scrip wise at lower of carrying cost or market value.

7. Revenue Recognition

a) Transactions in respect of Investment / Dealing in Securities are recognised on trade dates

b) Dividend/interest on debenture, income is accounted for on cash basis.

c) Profit / Loss on sale of securities are accounted for on weighted average method and is recognized on settlement date. Profit on sale of securities is netted with the loss on sale of securities, if any.

8. Expenditure

Expenses are in general accounted on accrual basis except for ex-gratia, leave encashment. Adequate provisions have been made in the accounts for ail known losses and liabilities.

9. Retirement benefit of Employees.

I) Gratuity - In accordance with the Indian laws, the Company provides for gratuity, a defined benefit plan covering all employees, who have completed more than 5 years. ii) Leave Encashment - Encashment of unavailed leaves credit is being done at the year-end.

10. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

11. Leases

Operating Lease:- Assets acquired on lease where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating lease. Lease rental are charged to the profit & loss account on accrual basis.

Finance lease:- Assets acquired on lease where the company has substantially all the risk and awards of ownership are classifies as finance lease. Such assets are capitalized at the inception of the lease at the lower of the fair value or the present value of minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant rate of interest on the outstanding liability for each period.

12. Tax on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act, 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets in respect of unabsorbed depreciation and carry forward losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses.

13. Earning Per Share

The Company reports basic and diluted Earnings per Share (EPS) in accordance with Accounting Standard-20 on Earning per Share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of shares outstanding during the year.

14. Impairment of Assets

An asset is treated as impaired, when carrying cost of assets exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment loss recognized in prior year is recorded when there is an indication that impairment loss recognized earlier for the assets no longer exists or has decreased.

15. Miscellaneous Expenditure

Preliminary/ pre-operative/ Share Issue Expenses have been amortized equally over a period of ten years.

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Mar 31, 2003

1. Basis of Accounting and preparation of Financial Statements

The financial Statements are prepared under the Historical Cost convention in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and the provision of the Companies Act. 1956. All Income and Expenditure having a material bearing on the Financial Statements arc recognized on accrual basis.

The Institute of Chartered Accountant of India (ICAI), has issued new Accounting Standards on Segment Reporting, Related party disclosures, Earnings per share, borrowing cost and Accounting for taxes on Income that became mandatory effective accounting periods commencing on or after April 01, 2001. The Company has adopted these accounting standards in the preparation of these financial statements.

2. Fixed Assets: Fixed Assets of the Company are valued at cost which include allocation apportionment of direct and indirect expenses incurred in relation to such Fixed Assets.

3. Depreciations : Depreciation on fixed assets is provided on Written Down Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act 1956. Depreciation on addition/ deletion is worked out on pro rata basis.

4. Borrowing Cost: Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets arc capitalized as part of cost of such assets. Borrowing costs comprises of interest and other cost incurred in connection with borrowing of funds.

5. Investment (Long Term)

a) Quoted Investment Long Term investment are valued at cost unless there is a permanent diminution in the value of securities. In the opinion of the management, no provision towards diminution in investment is required in current year.

b) Unquoted investment has been valued at cost.

6. Stock in Trade (Inventories)

Shares : Quoted Shares are valued at lower of earning cost or market value. Unquoted shares are valued at cost or market value. Bonus share receive against share held as inventory are taken at NIL value.

7. Revenue Recognition

A) Brokerage income on secondary market transactions is recognized on the basis of the date of contract note.

B) Dividcnd/interst on debenture, income is accounted for on cash basis.

C) Profit/Loss on sale of securities is accounted for on weighted average method and is recognized on settlement date. Profit on sale of securities is netted with the loss and sale of securities.

8. Expenditure : Expenses are in general accounted on accural basis except for ex-gratras leave encashment and provisions are made for all known losses and liabilities.

9). Retirement benefit of Employees

i) Gratuity : In accordance with the Indian laws, the Company provides for gratuity, a defined benefit plan covering all employees, who have completed more than 5 years. However, during the current year, there is no employees who has served for a period exceeding 5 years.

ii) Leave Encashment: Encashment of unavailed leaves credit is being done on cash basis.

10). Tax on Income : Current tax is determined as the amount of tax payable in respect of taxable income for the period Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. During the year under review, no treatment for deferred tax assets (net of deferred tax liability) under prudence policy has been given in the books of accounts.

11. Miscellaneous Expenditure: Preliminary pre-operative Share Issue Expenses have been amortised equally over a period of ten years.