Mefcom Capital Markets Ltd. कंपली की लेखा नीति

Mar 31, 2025

2) Significant Accounting Policies

a) Basis of preparation

The financial statements of the Company have been prepared in
accordance with Indian Accounting Standards (Ind AS) notified
under the Companies (Indian Accounting Standards) Rules, 2015 as
amended and other relevant provisions of the Act.

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

b) Use of estimates and judgements

The preparation of the financial statements in conformity with
Ind AS requires management to make estimates, judgments and
assumptions. These estimates, judgments and assumptions affect
the application of accounting policies and the reported amounts
of assets and liabilities, the disclosures of contingent assets and
liabilities at the date of the financial statements and reported
amounts of revenues and expenses during the period. Accounting
estimates could change from period to period. Actual results could
differ from those estimates. Appropriate changes in estimates are
made as management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in
the financial statements in the period in which changes are made.
Differences between actual results and estimates are recognised in
the period in which the results are known/ materialised.

c) Revenue recognition

(i) Income from trading in securities and derivatives comprises
profit/ loss on sale of securities held as inventories and profit/
loss on equity and derivatives instruments. Profit/ loss on sale
of securities are determined on FIFO basis.

(ii) On settlement or squaring-up of contracts for Equity Index/
Stock Futures, the profit or loss is calculated as the difference
between settlement/ squaring-up price and contract price.
Accordingly, debit or credit balance pertaining to the settled/
squared-up contract in ''Mark-to-Market Margin-Equity Index/
Stock Futures Account'' is recognized in the Statement of Profit
and Loss.

(iii) Income from Merchant Banking Operations is accounted on
accrual basis, when the right to receive is established in terms
of the agreements with respective clients.

(iv) Dividend income is recognised when the right to receive
payment is established.

(v) Interest income from a financial asset is recognised when it is
probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably. Interest
income is accrued on, time basis, by Reference to the principal
outstanding and at the effective Interest rate applicable, which
is the rate that exactly Discounts estimated future cash receipts
through the Expected life of the financial asset to that asset''s
net Carrying amount on initial recognition

d) Employee benefits

(i) Short-term employee benefits

Short-term employee benefits are recognized as an expense on
an undiscounted basis in the statement of profit and loss of the
year in which the related service is rendered.

(ii) Post-employment benefits

Defined benefit plans (Gratuity)

Liabilities with regard to the gratuity plan are determined
on estimation basis at each balance sheet date using the
projected unit credit method. The Company recognizes the net
obligation of a defined benefit plan in its balance sheet as an
asset or liability. Remeasurements comprising of actuarial gains
and losses, on the net defined benefit liability are recognised
in Other Comprehensive Income which are not reclassified to
profit or loss in subsequent periods.

e) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated
depreciation / impairment loss, if any. Cost includes freight, duties,
taxes, and other incidental expenses.

f) Intangible assets

Intangible assets are stated at cost less accumulated amount of
amortization. Cost includes freight, duties, taxes, and other incidental
expenses.

g) Depreciation and amortisation expenses

Depreciation on property, plant and equipment is provided on
Written down value method at the rate and in the manner prescribed
in Schedule II of the Companies Act, 2013.

Amount spent on renovation including extensions on office
premises, taken on rent, is capitalised under the head ''Leased hold
improvements'' and amortised on straight line basis during the lease
term on pro-rata basis.

The Company has applied for the one-time transition exemption of
considering the carrying cost on the transition date i.e. April 1,2016
as the deemed cost under IND AS and hence regarded thereafter as
historical cost.

h) Stock-in-trade

Securities acquired with the intention to trade are classified as stock-
in-trade. Stock-in-trade is valued at market/ fair value. The profit or
loss on sale of securities is recognised on trade date in the Statement
of Profit and Loss.

i) Leases

Effective April 1, 2019, the Company adopted Ind AS 116 "Leases”
and applied the standard to all lease contracts existing on April
1, 2019 using the modified retrospective method on the date of
initial application. Consequently, the Company recorded the lease
liability at the present value of the lease payments discounted at the
incremental borrowing rate and the right of use asset at its carrying
amount.

The Company''s lease asset classes primarily consist of leases for
building. The Company assesses whether a contract contains a lease,
at inception of a contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset
for a period of time in exchange for consideration. To assess whether
a contract conveys the right to control the use of an identified asset,
the Company assesses whether: (i) the contract involves the use
of an identified asset (ii) the Company has substantially all of the
economic benefits from use of the asset through the period of the
lease and (iii) the Company has the right to direct the use of the
asset.

The Company recognizes a right-of-use asset ("ROU”) 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 recognizes the lease payments as an operating
expense on a straight-line basis over the term of the lease. Right-of-
use assets are depreciated on a straight-line basis over the shorter of
the lease term and useful life of the underlying asset.

j) Income tax

Income tax expense represents the sum of current and deferred tax
(including MAT). Tax is recognised in the Statement of Profit and

Loss, except to the extent that it relates to items recognised directly
in equity or other comprehensive income, in such cases the tax is
also recognised directly in equity or in other comprehensive income.

Deferred tax is recognised on differences between the carrying
amounts of assets and liabilities in the Balance sheet and the
corresponding tax bases used in the computation of taxable
profit and are accounted for using the liability method. Deferred
tax liabilities are generally recognised for all taxable temporary
differences, and deferred tax assets are generally recognized for
all deductible temporary differences, carry forward tax losses and
allowances to the extent that it is probable that future taxable
profits will be available against which those deductible temporary
differences, carry forward tax losses and allowances can be utilised.
Deferred tax assets and liabilities are measured at the applicable tax
rates. Deferred tax assets and deferred tax liabilities are off set and
presented as net.

The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available against
which the temporary differences can be utilised.

Credit of MAT is recognised as an asset only when and to the extent
there is convincing evidence that the Company will pay normal
income tax during the specified period, i.e., the period for which
MAT credit is allowed to be carried forward. In the year in which the
MAT credit becomes eligible to be recognized as an asset, the said
asset is created by way of a credit to the profit and loss account and
shown as MAT credit entitlement. The Company reviews the same
at each balance sheet date and writes down the carrying amount of
MAT credit entitlement to the extent there is no longer convincing
evidence to the effect that the Company will pay normal income tax
during the specified period.

k) Earnings per Share

Basic earnings per equity share is computed by dividing the net
profit attributable to the equity holders of the company by the
weighted average number of equity shares outstanding during the
period. Diluted earnings per equity share is computed by dividing
the net profit attributable to the equity holders of the company
by the weighted average number of equity shares considered for
deriving basic earnings per equity share and also the weighted
average number of equity shares that could have been issued
upon conversion of all dilutive potential equity shares. The dilutive
potential equity shares are adjusted for the proceeds receivable had
the equity shares been actually issued at fair value.

l) Financial Instruments

A financial instrument is any contract that gives rise to a financial
asset of one entity and a financial liability or equity instrument of
another entity.

(i) Initial Recognition and measurement

On initial recognition, all the financial assets and liabilities are

recognized at its fair value plus or minus transaction costs
that are directly attributable to the acquisition or issue of the
financial asset or financial liability except financial asset or
financial liability measured at fair value through profit or loss.
Transaction costs of financial assets and liabilities carried at fair
value through the Profit and Loss are immediately recognized
in the Statement of Profit and Loss.

(ii) Subsequent measurement

Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost
if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive
income (FVTOCI)

A financial asset is subsequently measured at fair value
through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the
contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

Financial assets at fair value through profit or loss (FVTPL)

A financial asset is measured at fair value through profit and
loss unless it is measured at amortized cost or at fair value
through other comprehensive income.

Financial liabilities

The financial liabilities are subsequently carried at amortized
cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet
date, the carrying amounts approximate fair value due to the
short maturity of these instruments.

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Mar 31, 2015

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statements are prepared under the historical cost convention on accrual basis in accordance with the applicable mandatory Accounting Standards as per the Companies (Accounting Standards) Rules, 2014 prescribed by the Central Government of India and relevant presentational requirements of the Companies Act, 2013.

b) FIXED ASSETS

Fixed Assets have been valued at cost less accumulated depreciation.

C) DEPRECIATION AND AMORTISATION

i) Amount spent on renovation including extensions on office premises, taken on rent, is capitalised under the head 'Leased Premises Development' and amortised on straight line basis in nine years (being reasonably expected lease tenure) on pro- rata basis.

ii) Depreciation on other fixed assets has been provided on the written down value method based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 on pro-rata basis.

d) INVESTMENTS

i) Investments in shares, debentures and other securities are classified into 'Current Investments' and 'Non-Current Investments'.

ii) Non-Current Investments are valued at cost. Adequate provision is made for a decline, other than temporary, in the value of Non-Current Investments.

ill) Current Investments i.e. the investments, which are not intended to be held for more than one year, are carried at lower of cost or market price. Where no market quotes are available, the investments are valued at rupee one per company. Shortfall in the book value as compared to market value of investments is charged to the Statement of Profit & Loss.

iv) Cost is arrived at on Weighted Average cost basis.

e) SHARES & OTHER SECURITIES HELD AS STOCK-IN-TRADE

Shares and other securities held as stock-in-trade are valued at lower of cost or market price. Where no market quotes are available value is taken at rupee one per company. Cost is arrived on Weighted Average cost basis. Cost of Bonus Shares acquired is taken as nil.

In case of units of mutual fund held as Stock-In-Trade, net assets value is considered as fair value.

f) INCOME RECOGNITION

* Income from Merchant Banking Operations is accounted on accrual basis, when the right to receive is established in terms of the agreements with respective clients.

* Dividend income is recognised when the right to receive payment is established.

* Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

g) RETIREMENT BENEFITS

i. Contribution to Provident Fund and Family Pension Fund are provided for on accrual basis and deposited in the Employees Provident Fund Account(s) administrated by the Central Government.

ii. Gratuity is accounted for on cash basis.

h) PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of economic resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised but disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

I) EARNINGS PER SHARE

In determining earnings per share, the Company considers net profit after tax. Basic earnings per share is computed using the weighted average number of equity shares outstanding during the year. There are no dilutive equity shares.

J) TAXES ON INCOME

A provision is made for income tax, based on the tax liability computed, after considering tax allowances and exemptions.

Deferred tax assets are recognised for all deductible timing differences and carried forward to the extent there is reasonable certainty that sufficient future taxable profit will be available against which such deferred tax assets can be realised. Deferred tax assets to the extent they pertain to brought forward losses and unabsorbed depreciation, are recognised only if there is virtual certainty of realisation, based on expected profitability in the future as estimated by the Company.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the balance sheet date.

Minimum alternative tax (MAT) is paid in accordance with the provisions of Income Tax Act, 1961. MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay the normal income tax during the specified period.

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Mar 31, 2014

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statements are prepared under the historical cost convention on accrual basis in accordance with the applicable mandatory Accounting Standards as per the Companies (Accounting Standards) Rules, 2006 prescribed by the Central Government of India and relevant presentational requirements of the Companies Act, 1956 (to the extent applicable) and the Companies Act, 2013 (to the extent notified).

b) FIXED ASSETS

Fixed Assets have been valued at cost less accumulated depreciation.

c) DEPRECIATION

i) Softwares are amortised on straight line basis in three years on prorata basis.

ii) Amount spent on renovation including extensions on office premises, taken on rent, is capitalised under the head ''Leased Premises Development'' and amortised on straight line basis in nine years (being reasonably expected lease tenure) on prorata basis.

iii) Assets costing upto five thousand rupees are fully depreciated in the year of purchase.

iv) Depreciation on other assets has been provided on the written down value basis at rates provided by Schedule XIV to the Companies Act, 1956 on pro-rata basis.

d) INVESTMENTS

i) Investments in shares, debentures and other securities are classified into ''Current Investments'' and ''Non-Current Investments''.

ii) Non-Current Investments are valued at cost. Adequate provision is made for a decline, other than temporary, in the value of Non-Current Investments.

iii) Current Investments i.e. the investments, which are not intended to be held for more than one year, are carried at lower of cost or market price. Where no market quotes are available, the investments are valued at rupee one per company. Shortfall in the book value as compared to market value of investments is charged to the Statement of Profit & Loss.

iv) Cost is arrived at on Weighted Average cost basis.

e) SHARES & OTHER SECURITIES HELD AS STOCK- IN-TRADE

Shares and other securities held as stock-in-trade are valued at lower of cost or market price. Where no market quotes are available value is taken at rupee one per company. Cost is arrived on Weighted Average cost basis. Cost of Bonus Shares acquired is taken as nil.

In case of units of mutual fund held as Stock-in-Trade, net assets value is considered as fair value.

f) INCOME RECOGNITION

Income from Merchant Banking Operations is accounted on accrual basis, when the right to receive is established in terms of the agreements with respective clients.

Dividend income is recognised when the right to receive payment is established.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

g) RETIREMENTBENEFITS

i. Contribution to Provident Fund and Family Pension Fund are provided for on accrual basis and deposited in the Employees Provident Fund Account(s) administrated by the Central Government.

ii. Gratuity is accounted for on cash basis.

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Mar 31, 2013

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the applicable Accounting Standards and the provisions of the Companies Act, 1956 and Guidelines issued by the Reserve Bank of India.

b) FIXED ASSETS

Fixed Assets have been valued at cost less accumulated depreciation.

c) DEPRECIATION

i) Softwares are amortised on straight line basis in three years on pro-rata basis.

ii) Amount spent on renovation including extensions on office premises, taken on rent, is capitalised under the head ''Leased Premises Development'' and amortised on straight line basis in nine years (being reasonably expected lease tenure) on pro-rata basis.

iii) Assets costing upto five thousand rupees are fully depreciated in the year of purchase.

iv) Depreciation on other assets has been provided on the written down value basis at rates provided by Schedule XIV to the Companies Act, 1956 on pro-rata basis.

d) INVESTMENTS

i) Investments in shares, debentures and other securities are classified into ''Current Investments'' and ''Non-Current Investments''.

ii) Non-Current Investments are valued at cost. Adequate provision is made for a decline, other than temporary, in the value of Non-Current Investments.

iii) Current Investments i.e. the investments, which are not intended to be held for more than one year, are carried at lower of cost or market price. Where no market quotes are available the investments are valued at rupee one per company. Shortfall in the book value as compared to market value of investments is charged to Profit & Loss Account.

iv) Cost is arrived at on Weighted Average cost basis.

e) SHARES & OTHER SECURITIES HELD AS STOCK-IN-TRADE

Shares and other securities held as stock-in-trade are valued at lower of cost or market price. Where no market quotes are available value is taken at rupee one per company. Cost is arrived on Weighted Average cost basis. Cost of Bonus Shares acquired are taken as Nil.

In case of units of mutual fund held as Stock-in-Trade, net assets value is considered as fair value.

f) PROVISION FOR NON-PERFORMING ADVANCES

Provision for Non-performing advances i.e. Sub-Standard and Doubtful Advances is based on the management assessment of the degree of impairment of the loan assets and the level of provisioning required as per the prudential norms prescribed by Reserve Bank of India.

g) INCOME RECOGNITION

Income from Merchant Banking Operations is accounted on accrual basis, when the right to receive is established in terms of the agreements with respective clients.

In accordance with the prudential norms prescribed by the Reserve Bank of India, interest on loans and advances are not recognised on non-performing assets unless the same are actually realised.

h) RETIREMENT BENEFITS

i. Contribution to Provident Fund and Family Pension Fund are provided for on accrual basis and deposited in the Employees Provident Fund Account(s) administrated by the Central Government.

ii Accrued liability in respect of gratuity is provided on the basis of actuarial valuation.

Actuarial gain / loss are recognized immediately in the Profit and Loss Account.

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Mar 31, 2012

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the applicable Accounting Standards and the provisions of the Companies Act, 1956 and Guidelines issued by the Reserve Bank of India.

b) FIXED ASSETS

Fixed Assets have been valued at cost less accumulated depreciation.

c) DEPRECIATION

i) Softwares are amortised on straight line basis in three years on pro-rata basis.

ii) Amount spent on renovation including extensions on office premises, taken on rent, is capitalised under the head ''Leased Premises Development'' and amortised on straight line basis in nine years (being reasonably expected lease tenure) on pro-rata basts.

iii) Assets costing upto five thousand rupees are fully depreciated in the year of purchase.

iv) Depreciation on other assets has been provided on the written down value basis at rates provided by Schedule XIV to the Companies Act, 1956 on pro-rata basis,

d) INVESTMENTS

i) Investments in shares, debentures and other securities are classified into ''Current Investments'' and ''Non-Current Investments''.

ii) Non-Current Investments are valued at cost. Adequate provision is made for a decline, other than temporary, In the vatue of Non-Current Investments.

iii) Current Investments i.e. the investments, which are not intended to be held for more than one year, are carried at lower of cost or market price. Where no market quotes are available the Investments are valued at rupee one per company. Shortfall in the book value as compared to market value of Investments is charged to Profit & Loss Account.

iv) Cost is arrived at on Weighted Average cost basis.

e) PROVISION FOR ADVANCES

Provision for Standard, Sub-Standard (NPA) and Doubtful Advances (NPA) has been made In accordance with the prudential norms prescribed by Reserve Bank of India.

f) INCOME RECOGNITION

- Income from Merchant Banking Operations is accounted on accrual basis, when the right (o receive is established in terms of the agreements with respective clients.

- In accordance with the prudential norms prescribed by the Reserve Bank of India, the Hire Purchase Income, Leasing Income and Interest on loans and advances are not recognised on non-performing assets (NPA) unless the same are actually realised.

g) RETIREMENT BENEFITS

i. Contribution to Provident Fund and Family Pension Fund are provided for on accrual basis and deposited in the Employees Provident Fund Account(s) administrated by the Central Government.

ii. Gratuity Is accounted for on cash basis.

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Mar 31, 2011

A) Basis of Preparation of Financial Statements :

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the applicable Accounting Standards and the provisions of the Companies Act, 1956 and Guidelines issued by the Reserve Bank of India.

b) Fixed Assets :

Fixed Assets have been valued at cost less accumulated depreciation.

c) Depreciation :

i) Software's are amortised on straight line basis in three years on pro-rata basis.

ii) Amount spent on renovation including extensions on office premises, taken on rent, is capitalised under the head 'Leased Premises Development' and amortised on straight line basis in nine years (being reasonably expected lease tenure) on pro-rata basis.

iii) Assets costing up to five thousand rupees are fully depreciated in the year of purchase.

iv) Depreciation on other assets has been provided on the written down value basis at rates provided by Schedule XIV to the Companies Act, 1956 on pro-rata basis.

d) Investments :

i) Investments in shares, debentures and other securities are classified into 'Current Investments' and 'Long Term Investments'.

ii) Long Term Investments are valued at cost. Adequate provision is made for a decline, other than temporary, in the value of Long Term Investments.

iii) Current Investments i.e. the investments, which are not intended to be held for more than one year, are carried at lower of cost or market price. Where no market quotes are available the investments are valued at rupee one per company. Shortfall in the book value as compared to market value of investments is charged to Profit & Loss Account.

iv) Cost is arrived at on Weighted Average cost basis.

e) Income Recognition :

i) Income from Merchant Banking Operations is accounted on accrual basis, when the right to receive is established in terms of the agreements with respective clients.

ii) In accordance with the prudential norms prescribed by the Reserve Bank of India, the Hire Purchase Income, Leasing Income and interest on loans and advances are not recognised on non-performing assets (NPA) unless the same are actually realised.

f) Retirement Benefits :

i) Contribution to Provident Fund and Family Pension Fund are provided for on accrual basis and deposited in the Employees Provident Fund Account(s) administrated by the Central Government.

ii) Gratuity is accounted for on cash basis.