Sanchay Finvest Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2024

2. Material Accounting Policies:

2.1. Statement of Compliance

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed in the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and the financial statement also complies with presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III) notified under section 133 of the Companies Act, 2013 (the Act) along with other relevant provisions of the Act.

The standalone financial statements are presented in Indian Rupee (Rs), which is also the functional currency of the Company, in denomination of thousands (''000) with rounding off to two decimals as permitted by Schedule III to the Act,unless otherwise indicated.

The financial statements are prepared on a going concern basis as the Management is satisfied that the Company shall be able to continue its business for the foreseeable future and no material uncertainty exists that may cast significant doubt on the going concern assumption. In making this assessment, the Management has considered a wide range of information relating to present and future conditions, including future projections of profitability, cash flows and capital resources.

2.2. Basis of Preparation

These financial statements have been prepared on the historical cost basis, except for certain financial instruments that are measured at fair values at the end of each reporting period.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. 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.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, Level 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 measurements in its entirety which are described as follows;

Level 1 — inputs are quoted (unadjusted) prices in active markets for identical assets or liabilities that the entity can access at the measurement date;

Level 2 — inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or liability either directly or indirectly.

Level 3 — inputs are unobservable inputs for the assets or liability.

Accounting Policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting policy hitherto in use.

2.3. Revenue Recognition

A) Revenue and cost are generally recognized and accounted on accrual basis as they are earned / incurred except in cases of significant uncertainty.

a) Operational and other income are accounted for on accrual basis.

b) Brokerage is recognized on trade date basis and is net of statutory payments. c)Profit / loss in

dealing in shares & securities are recognized on the day of settlement of the transaction.

d)Dividend income on equity shares, preference share & on mutual fund units is recognized when the right to receive is established. e)Profit/ loss from

derivatives is recognized on mark to market basis. f) All other income and

expenses are generally accounted on accmal basis except debenture interest, interest receivable from/ payable to Government on tax refunds / late payment of taxes, duties and levies etc. g)Revenue does not include GST and other tax component, if any.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership to the lessee.

As a Lessee -

At the date of commencement of the lease, the Company recognises a right-of-use asset fROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the

commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Company''s lease agreements having period of twelve months or less, hence all lease agreements are short term,

2.5. Employee Benefits

Short term employee benefits are recognized as expenses at the undiscounted amount in the profit and loss account of the year in which the related services rendered. These benefits include performance incentives,if any . No other post-retirement benefits are provided to employees,

2.6. Tax on Income

Income tax expense represents the sum of the tax currently payable and deferred tax.

L Current Tax

The tax currently payable is based on taxable profit for the period. Taxable profit differs from ''Profit Before Tax'' as reported in the Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

Current tax assets and Labilities are measured at the amount expected to be recovered from or paid to the taxation authorities, in accordance with the Income Tax Act, 1961 and the Income Computation and Disclosure Standards (ICDS) prescribed therein. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

ii. Deferred Tax

Deferred tax is recognised on the temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period when the liability is settled or the asset realised based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

iii Current and Deferred Tax for the period

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

2.7. Property, Plant and Equipment

Tangible assets:

Property, Plant & Equipment carried at cost less accumulated depreciation and amortisation and impairment losses, if any. The cost comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use.

Any revaluation of asset is recognized in other comprehensive income and shown as revaluation reserve in other equity. The residual value,

useful life and method of depreciation of the property, plant and equipments are reviewed at each financial year and adjusted prospectively, if appropriate. An item of property, plant and equipment is

derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss.

Capital Work-in-Progress

Projects under which tangible fixed assets that are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses, and interest attributable.

The property, plant, and equipment (PPE) are recorded at their residual value, which represents the estimated amount the company expects to recover

2.8.Intangible Assets

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably. Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities),

and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates. The estimated useful life of intangible assets and the amortization period are reviewed at the end of each financial year and amortization method is revised to reflect the changed pattern.

2.9. Depreciation and Amortisation

Depreciation is charged so as to write off the cost of assets other than Capital work-in-progress less its estimated residual value over the useful lives as prescribed in Schedule II to the Companies Act, 2013, using the straight-line method.Depreciation on property, plant and equipment are added or sold during the year, is provided on pro-rata basis with reference to the date of addition/ deletion.

Intangible assets are amortised on a straight line basis. Computer software is amortised over 24 months or useful life, whichever is lower.

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Mar 31, 2012

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statements are consistently prepared under the historical cost convention, on the accrual basis of accounting and comply with the accounting standards issued by the Institute of Chartered Accountants of India (to the extent applicable) and in accordance with the generally accepted accounting principles, the provisions of the Companies Act, 1956 .

1.2 USE OF ESTIMATES

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying financial statements. Any differences of actual results to such estimates are recognized in the period in which the results are known / materialized.

1.3 FIXED ASSETS & DEPRECIATION

Fixed Assets are stated at cost less accumulated depreciation thereon. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use. The Company provides pro-rata depreciation from the date on which asset is acquired / put to use. In respect of assets sold, pro-rata depreciation is provided upto the date on which the asset is sold. On all assets, except as mentioned below, depreciation has been provided using the Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956.

1.4 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 cost.

1.5 REVENUE RECOGNITION

a) Interest Income is recognized on accrual basis on fixed deposits.

b) Dividend income is recognized when the right to receive payment is established.

c) Sales are recorded on the basis of actual contract notes.

1.6 STOCK IN TRADE

Shares are valued at cost or market value, whichever is lower. The comparison of Cost and Market value is done separately for each category of Shares. Cost is considered on Weighted Average Basis.

1.7 FOREIGN CURRENCY TRANSACTIONS

There are no foreign currency transactions undertaken by the company during the financial year under reporting.

1.8 EMPLOYEE BENEFITS

No provision is made for the future liabilities arising out of provident fund, gratuity and leave encashment, which are accounted on cash basis.

1.9 TAXATION

Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law), deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the period) and fringe benefit tax. Current Tax: Provision for current tax is made on the basis of estimated taxable income for the accounting year in accordance with the Income Tax Act, 1961.

Deferred taxation: The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable / virtually certain (as the case may be) to be realized.

1.10 PROVISIONS AND CONTINGENCIES

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed. Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognized in the period in which the change occurs.

1.11 IMPAIRMENT OF ASSTS

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit which the asset belongs to, is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

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Mar 31, 2011

1.1 Basis of Accounting

The financial statements are prepared under the historical cost convention and accrual basis.

1.2 Fixed Assets.

Fixed Assets are stated at cost less accumulated depreciation. Fixed assets are capitalised at acquisition cost including directly attributable cost of bringing the assets to its working conditions for intended use.

1.3 Depreciation

Depreciation on fixed assets, which are put to use, is provided on pro-rata basis on reducing balance method at the rates and on the basis as specified in Schedule XIV to the Companies Act,1956.

1.4 Investments

Long Term Investments are stated at cost. Provision for diminution in the value of Long Term Investments is made only if such decline is other than temporary, in the opinion of the management.

1.5 Inventories

Stock in trade in the case of Quoted Scrips/Units of Mutual Fund are valued at lower of cost or market value and in case of unquoted scrips the same are taken at cost .

1.6 Sales and Purchases

Sales and Purchases are recorded on the basis of contract note.

1.7 Deferred Taxation

The tax expense for the year comprising of the Current Tax & Deferred Tax is included in determining the net profit for the year. Provision for the Current Tax is based on tax liability computed in accordance with the relevant tax rates & tax laws. Provision for Deferred Tax is made for all timing differences arising between taxable income & accounting income at rates that have been enacted or substantively enacted as of the Balance Sheet Date. Deferred Tax Assets arerecognised only if there is a reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

1.8 Accounting for Derivatives

Profit/Loss on final settlement of Equity Stock Future Contracts is recognised in the Profit & Loss Account. Provision for loss on outstanding Equity Stock Future Contract as on balance sheet date, whether long or short, is made in the account.

1.9 Retirement Benefits

No provision is made for the future liabilities arising out of gratuity and leave encashment, which are accounted on cash basis.

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Mar 31, 2010

1.1 Basis of Accounting

The financial statements are prepared under the historical cost convention and accrual basis.

1.2 Fixed Assets.

Fixed Assets are stated at cost less accumulated depreciation. Fixed assets are capitalised at acquisition cost including directly attributable cost of bringing the assets to its working conditions for intended use.

1.3 Depreciation

Depreciation on fixed assets, which are put to use, is provided on pro-rata basis on reducing balance method at the rates and on the basis as specified in Schedule XIV to the Companies Act,1956.

1.4 Investments

Long Term Investments are stated at cost. Provision for diminution in the value of Long Term Investments is made only if such decline is other than temporary, in the opinion of the management.

1.5 Inventories

Stock in trade in the case of Quoted Scrips/Units of Mutual Fund are valued at lower of cost or market value and in case of unquoted scrips the same are taken at cost .

1.6 Sales and Purchases

Sales and Purchases are recorded on the basis of contract note.

1.7 Deferred Taxation

The tax expense for the year comprising of the Current Tax & Deferred Tax is included in determining the net profit for the year. Provision for the Current Tax is based on tax liability computed in accordance with the relevant tax rates & tax laws. Provision for Deferred Tax is made for all timing differences arising between taxable income & accounting income at rates that have been enacted or substantively enacted as of the Balance Sheet Date. Deferred Tax Assets are recognised only if there is a reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

1.8 Accounting for Derivatives

Profit/Loss on final settlement of Equity Stock Future Contracts is recognised in the Profit & Loss Account. Provision for loss on outstanding Equity Stock Future Contract as on balance sheet date, whether long or short, is made in the account.

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Mar 31, 2001

1. SYSTEM OF ACCOUNTING :

The Company adopt the accrual concept in the preparation of accounts.

2. INFLATION:

Assets and Liabilities are recorded at historical cost of the Company.

3. FIXED ASSETS:

These are capitalised at cost inclusive of taxes and/or installation expenses.

4. DEPRECIATION:

Depreciation on fixed assets is provided on pro-rata basis. Rates of depreciation have been taken as prescribed in Schedule XIV of Companies Act, 1956 and amended by Companies Act (Amendment Act) 1988 on reducing balance method.

5. METHOD OF STOCK VALUATION :

These have been valued at Cost or Market Price whichever is less. Dividend and/or interest are accounted for as and when they are received and deposited into bank.

6. INVESTMENTS:

These are valued at Cost. Dividend and/or interest are accounted for as and when they are received and deposited into bank.

7. REVENUE RECOGNITION:

Revenue from sales and service transactions have been taken on accrual basis.

8. BENEFITS TO EMPLOYEES :

No provision is made for the future liabilities arising out of Gratuity and Leave encashment which are accounted on cash basis.

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Mar 31, 1999

1. SYSTEM OF ACCOUNTING :

The Company adopt the accrual concept in the preparation of accounts.

2. INFLATION :

Assets and Liabilities are recorded at historical cost of the Company.

3. FIXED ASSETS :

These are capitalised at cost inclusive of taxes and/or installation expenses.

4. DEPRECIATION :

Depreciation on fixed assets is provided on pro-rata basis. Rates of depreciation have been taken as prescribed in Schedule XIV of Companies Act, 1956 and amended by Companies Act (Amendment Act) 1988 on reducing balance method.

5. METHOD OF STOCK VALUATION :

These have been valued at Cost or Market Price whichever is less. Dividend and/or interest are accounted for as and when they are received and deposited into bank.

6. INVESTMENTS :

These are valued at Cost. Dividend and/or interest are accounted for as and when they are received and deposited into bank.

7. REVENUE RECOGNITION :

Revenue from sales and service transactions have been taken on accrual basis.

8. BENEFITS TO EMPLOYEES :

No provision is made for the future liabilities arising out of Gratuity and Leave encashment which are accounted on cash basis.

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Mar 31, 1998

1. SYSTEM OF ACCOUNTING :

The Company adopt the accrual concept in the preparation of accounts.

2. INFLATION :

Assets and Liabilities are recorded at historical cost of the Company.

3. FIXED ASSETS :

These are capitalised at cost inclusive of taxes and/or installation expenses.

4. DEPRECIATION :

Depreciation on fixed assets is provided on pro-rata basis. Rates of depreciation have been taken as prescribed in Schedule XIV of Companies Act, 1956 and amended by Companies Act (Amendment Act) 1988 on reducing balance method.

5. METHOD OF STOCK VALUATION :

These have been valued at Cost or Market Price whichever is less. Dividend and/or interest are accounted for as and when they are received and deposited into bank.

6. INVESTMENTS :

These are valued at Cost. Dividend and/or interest are accounted for as and when they are received and deposited into bank.

7. REVENUE RECOGNITION :

Revenue from sales and service transactions have been taken on accrual basis.

8. BENEFITS TO EMPLOYEES :

No provision is made for the future liabilities arising out of Gratuity and Leave encashment which are accounted on cash basis.

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Mar 31, 1997

ACCOUNTING POLICIES:

1. SYSTEM OF ACCOUNTING: The Company adopt the accrual concept in the preparation of accounts.

2 INFLATION: Assets and Liabilities are recorded at historical cost of the Company.

3. FIXED ASSETS: These are capitalised at cost inclusive of taxes and/or installation expenses

4. DEPRECIATION: Depreciation on fixed assets is provided on pro-rata basis. Rates of depreciation have been taken as prescribed in Schedule XIV of Companies Act, 1956 and amended by Companies Act (Amendment Act) 1988 on reducing balance method.

5. METHOD OF STOCK VALUATION: These have been valued at Cost or Market Price whichever is less as against the valuation at Cost in previous year. Dividend and/or interest are accounted for as and when they are received and deposited into bank.

6. INVESTMENTS : These are valued at Cost. Dividend and/or interest are accounted for as and when they are received and deposited into bank.

7. BENEFITS TO EMPLOYEES : No provision is made for the future liabilities arising out of Gratuity and Leave encashment which are accounted on cash basis.

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Mar 31, 1996

1. SYSTEM OF ACCOUNTING:

The Company adopt the accrual concept in the preparation of accounts.

2. INFLATION:

Assets and Liabilities are recorded at historical cost of the Company.

3. FIXED ASSETS:

These are capitalised at cost inclusive of taxes and/or installation expenses.

4. DEPRECIATION:

Depreciation on fixed assets is provided on pro-rate basis. Rates of depreciation have been taken as prescribed in Schedule XIV of Companies Act, 1956 and amended by Companies Act (Amendment Act) 1988 on reducing balance method.

5. METHOD OF STOCK VALUATION:

These are valued at Cost. Dividend and/or interest are accounted for as and when they are received and deposited into bank.

6. INVESTMENTS:

These are also valued at Cost. Dividend and/or interest are accounted for as and when they are received and deposited into bank.

7. BENEFITS TO EMPLOYEES:

No provision is made for the future liabilities arising out of Gratuity and Leave encashment which are accounted on cash basis.

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Mar 31, 1995

1. SYSTEM OF ACCOUNTING:

The Company adopt the accrual concept in the preparation of accounts.

2. INFLATION:

Assets and Liabilities are recorded at historical cost of the Company.

3. FIXED ASSETS:

These are capitalised at cost inclusive of taxes and/or installation expenses.

4. DEPRECIATION:

Depreciation on fixed assets is provided on pro-rata basis. Rates of depreciation have been taken as prescribed in Schedule XIV of Companies Act, 1956 and amended by Companies Act (Amendment Act) 1988 on reducing balance method.

5. METHOD OF STOCK VALUATION:

Stock have been valued at cost.

6. INVESTMENTS:

These are valued at Cost Divided and/or interest are accounted for as and when they are received and deposited into bank.

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Mar 31, 1994

SYSTEM OF ACCOUNTING:

The Company adopt the accrual concept in the preparation of accounts.

INFLATION

Assets and Liabilities are recorded at historical cost of the Company.

FIXED ASSETS

These are capitalised at cost inclusive of taxes and/or installation expenses.

DEPRECIATION

Depreciation on fixed assets is provided on pro-rata basis. Rates of depreciation have been taken as prescribed in Schedule XIV of Companies Act, 1956 and amended by Companies Act (Amendment Act) 1988 on reducing balance method.

METHOD OF STOCK VALUATION

Stock have been valued at cost.

INVESTMENTS

These are valued at Cost. Divided and/or interest are accounted for as and when they are received and deposited into bank.

As decided in the board meeting held on 7th February 1994 to adopt the current accounting year for 9 months commencing from 1.7.93 to 31.3.94, the accounts for a period of 9 months ended on 31.3.94 have been prepared & to be placed before the members for their approval.