Smart Finsec Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

H. Provisions, contingent liabilities and contingent assets
General

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event and it is probable that the outflow of resources embodying economic benefits will be required to
settled the obligation in respect of which reliable estimate can be made of the amount of the obligation. When
the Company expects some or all of a provision to be reimbursed, the expense relating to provision presented
in the statement of profit & loss is net of any reimbursement.

If the effect of the time value of money is material, provisions are disclosed using a current pre-tax rate that
reflects, when appropriate, the risk specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as finance cost.

Contingent liability is disclosed in the notes in case of:

• There is a possible obligation arising from past events, the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company.

• A present obligation arising from past event, when it is not probable that as outflow of resources will be
required to settle the obligation

• A present obligation arises from the past event, when no reliable estimate is possible

Commitments include the amount of purchase order (net of advances) issued to parties for completion of
assets.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
Contingent assets

Contingent assets are not recognized in the financial statements.

I. Taxes

Tax expense comprises current income tax and deferred tax. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the Income-Tax Act, 1961 enacted in India. The
tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the
reporting date.

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to
the taxation authorities. Current income tax relating to items recognized directly in equity is recognised in
equity and not in the statement of profit and loss. 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.

Deferred tax

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose at
reporting date. Deferred income tax assets and liabilities are measured using tax rates and tax laws that have
been enacted or substantively enacted by the balance sheet date and are expected to apply to taxable income
in the years in which those temporary differences are expected to be recovered or settled. The effect of
changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the
period that includes the enactment or the substantive enactment date. A deferred income tax asset is
recognized to the extent that it is probable that future taxable profit will be available against which the
deductible temporary differences and tax losses can be utilized.

The carrying amount of deferred tax assets are reviewed at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax
assets to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are
recognised to the extent that it has become probable that future taxable profits will allow deferred tax assets
to be recovered.

The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set
off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and
settle the liability simultaneously.

J. Revenue recognition

Revenue is recognized to the extent it is probable that the economic benefit will flow to the company &
revenue is reliably measured.

a) The Company recognises interest income using effective interest rate (EIR) on all financial assets
subsequently measured under amortised cost or fair value through other comprehensive income (FVOCI).
Interest Income is recognized on the time proportionate basis starting from the date of disbursement of
loan. In case of Non-Performing Assets, interest income is recognized on receipt basis, as per NBFC
Prudential norms.

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

c) Income from investment in Private Equity Funds ("the fund") is booked as and when the same is distributed
by the Fund. Return of capital contribution is reduced from the original cost of investment.

d) In respect of other heads of income the Company accounts the same on accrual basis.

K. Foreign currency translation/conversion

Financial statements have been presented in Indian Rupees (INR), which is the Company''s functional and
presentation currency.

• Initial recognition

Foreign currency transactions are recorded on initial recognition in the functional currency, using the exchange
rate at the date of the transaction.

• Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date.
Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are
reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at
fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate
at the date when such value was determined.

• Exchange differences

The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items
whose fair value gain or loss is recognized in Other income or profit or loss are also recognized in Other income
or profit or loss, respectively).

L. Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
are capitalized, in accordance with the principles laid down in AS-16, during the period of time that is required
to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take
a substantial period of time to get ready for their intended use or sale.

Borrowing costs that are directly attributable to the projects are charged to the respective project on the basis
of expenditure incurred net of customer collections.

Other borrowing costs are expensed in the period in which they are incurred.

M. Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Ind AS-19 - ''Employee
Benefits''.

N. Segment accounting and reporting

On the basis of nature of activity carried out, The Company has identified two reportable primary segments, i.e.
Real Estate segment and NBFC activity segment. The disclosure, as per Ind AS 108 for both the segments is
made in the financial statements.

O. Previous year figures have been regrouped/reclassified wherever considered necessary to conform to the
presentation of current year financial statements.

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Mar 31, 2024

ii) Terms, rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 1/- per share. Members of the company holding equity share capital therein have a right to vote on every resolution placed before the company and the right to receive dividend.The voting rights on a poll is in proportion to the share of the paid up equity capital of the company held by the shareholders. In the event of liquidation of the company, the holders of equity shares would be entitled to receive remaining assets of the company after distribution of all preferential amounts.

Note-28: EARNINGS PER SHARE (EPS)

Basic EPS is calculated in accordance with Ind AS 33, ''Earning Per Share'' by dividing the profit for the year attributbale to equity holders of the company by the weighted average number of equity holders outstanding during the year.

Diluted EPS is calculated by dividing the profit attributable to equity shares of the company by the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential equity shares into Equity share of the Company.

The following reflects the income and share data used in basic & diluted EPS computations:

Note-31: LEASES As a Lessor:

The Company has given two premises on operating leases. These lease arrangements are for a period of eleven months and are cancellable lease. The lease arrangements are renewable for further period on mutually agreeable terms and also include esclation clause.

(d) liquidity covergae Ratio

The company does not have any outside liability & hence no cash outflow is needed. Hence this ratio is not applicable.

Note-34: CONTINGENT LIABILITIES

The Company has given corporate guarantee amounting to Rs. 30 Crore to Axis bank in respect of various facilities obtained by related entity Smart Equity Brokers Pvt. Ltd

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Mar 31, 2015

Not available

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Mar 31, 2014

Not avialable

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Mar 31, 2013

Not available

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Mar 31, 2012

Not available