Vedant Asset Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2. Significant Accounting Policies

2.1 Basis of Preparation of Financial Statements

These financial statements are prepared in accordance with Indian Generally Accepted
Accounting Principles (GAAP) under the historical cost convention on accrual basis.
GAAP comprises mandatory accounting standards as prescribed under section 133 of
the Companies Act, 2013, Companies (Indian Accounting Standards) rules, 2015 and
Companies (Accounting Standards) amendments Rules 2016 and other applicable
provisions of the Act.

The preparation and presentation management to make judgements, estimates and
assumptions that may impact the application of accounting policies and reported value
of assets, liabilities, income, expenses and related disclosures including contingent
assets and liabilities at the Balance Sheet date. The estimates and management''s
judgements are based on previous experience and other factors considered reasonable
and prudent in the circumstances.

2.2 Use of Estimates

The preparation of financial statements is in conformity with Indian GAAP requires
judgments, estimates and assumptions to be made that affect the reported amount of
assets and liabilities, disclosure of contingent liabilities on the date of the financial
statements and the reported amount of revenues and expenses during the reporting
period. Difference between the actual results and estimates are recognised in the
period in which the results are known / materialized.

2.2 Accounting Convention

The company follows the mercantile system of accounting, recognizing income and
expenditure on accrual basis. The accounts are prepared on historical cost basis and as
a going concern. Accounting policies not referred to specifically otherwise, are
consistent with the generally accepted accounting principles.

The following significant accounting policies are adopted in the preparation and
presentation of these financial statements:

(i) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic
benefits will flow to the Company and the revenue can be reliably measured in
accordance with Accounting Standard (AS-9) “Revenue Recognition”.

Sale of Goods

Revenue is recognised when the significant risks and rewards of ownership of
the goods have been passed to the buyer. Sales are disclosed net of GST, trade
discounts and returns, as applicable.

Income from Services

Revenue from services is recognised when services have been rendered and
there should be no uncertainty regarding consideration and its ultimate
collection.

Interest Income

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

Dividend Income

Dividend income is recognised on receipt basis.

(ii) Property, Plant & Equipment

a) Tangible Fixed Assets are stated as per Cost Model i.e., at cost less
accumulated depreciation and impairment, if any;

b) Costs directly attributable to acquisition are capitalized until the Fixed
Assets are ready for use, as intended by the management;

c) Subsequent expenditures relating to fixed assets are capitalized only when it
is probable that future economic benefits associated with these will flow to the
Company and the cost of the item can be measured reliably. Repairs &
maintenance costs are recognized in the Statement of profit & Loss when
incurred;

d) The cost and related accumulated depreciated are eliminated from the
financial statements upon sale or retirement of the asset and the resultant gains
or losses are recognized in the Statement of Profit or Loss. Assets to be
disposed of are reported at the lower of the carrying value or the fair value less
cost to sell;

e) Depreciation on Tangible Assets in case of company is provided in such a
manner so that the cost of asset (Net of realizable value) will be amortized over
their estimated remaining useful life on WDV basis as per the useful life
prescribed under Schedule II to the Companies Act 2013.

f) Depreciation methods, useful lives, and residual values are reviewed
periodically, including at each financial year end

(iii) Impairment

The Management periodically assesses, using external and internal sources,
whether there is an indication that an asset may be impaired. An impairment
loss is recognized wherever the carrying value of an asset exceeds its
recoverable amount. The recoverable amount is higher of the asset''s net selling
price and value in use, which means the present value of future cash flows
expected to arise from the continuing use of the asset and its eventual disposal.
An impairment loss for an asset is reversed if, and only if, the reversal can be
related objectively to an event occurring after the impairment loss was
recognized. The carrying amount of an asset is increased to its revised
recoverable amount, provided that this amount does not exceed the carrying
amount that would have been determined (net of any accumulated amortization
or depreciation) had no impairment loss been recognized for the asset in prior
years.

(iv) Inventories

The company has M-ATMs and Stocks to be given for Business Correspondence.
These items are valued as per AS -2 "Inventory" at Cost or Market price which
ever is lower.

(v) Foreign Exchange Transactions

There are no foreign exchange transactions during the year.

(vi) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is
adjusted for the effects of transactions of a non- cash nature, any deferrals or
accruals of past or future operating cash receipts or payments and item of
income or expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities are segregated.

(vii) Borrowing Costs

There are no borrowings by the company.

(viii) Income Tax

The accounting treatment for the Income Tax in respect of the Company''s
income is based on the Accounting Standard on Accounting for Taxes on
Income'' (AS-22). The provision made for Income Tax in Accounts comprises
both, the current tax and deferred tax. Provision for Current Tax is made on the
assessable Income Tax rate applicable to the relevant assessment year after
considering various deductions available under the Income Tax Act, 1961.

(ix) Deferred Tax

Deferred tax is recognised for all timing differences; being the differences
between the taxable income and accounting income that originate in one period
and are capable of reversal in one or more subsequent periods. Such deferred
tax is quantified using the tax rates and laws enacted or substantively enacted
as on the Balance Sheet date. The carrying amount of deferred tax asset/liability
is reviewed at each Balance Sheet date and consequential adjustments are
carried out.

Deferred Tax liabilities have been created during the year. Since there is a timing
difference arising from depreciation and amortization which are resulting into
creation of deferred tax liability.

(x) Earnings Per Share

Basic earnings per share are computed by dividing the net profit after tax by the
weighted average number of equity shares outstanding during the period.
Diluted earnings per share is computed by dividing the profit after tax by the
weighted average number of equity shares considered for deriving basic
earnings per share and also the weighted average number of equity shares that
could have been issued upon conversion of all dilutive potential equity shares.
The diluted potential equity shares are adjusted for the proceeds receivable had
the shares been actually issued at fair value which is the average market value
of the outstanding shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later date.

Dilutive potential equity shares are determined independently for each period
presented.

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Mar 31, 2024

1. Corporate Overview

Vedant Asset Limited was originally incorporated as private limited company in 2015 under the provisions of the Companies Act, 2013. It was later converted to public limited company in June 2022. The company is engaged in the business of providing banking correspondence services in association with various banks and managing funds of investors with various mutual fund houses. The company earns revenue from brokerage and commission by providing these services.

2. Significant Accounting Policies

2.1 Basis of Preparation of Financial Statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis. GAAP comprises mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013, Companies (Indian Accounting Standards) rules, 2015 and Companies (Accounting Standards) amendments Rules 2016 and other applicable provisions of the Act.

The preparation and presentation management to make judgements, estimates and assumptions that may impact the application of accounting policies and reported value of assets, liabilities, income, expenses and related disclosures including contingent assets and liabilities at the Balance Sheet date. The estimates and management''s judgements are based on previous experience and other factors considered reasonable and prudent in the circumstances.

2.2 Use of Estimates

The preparation of financial statements is in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

2.2 Accounting Convention

The company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis. The accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to specifically otherwise, are consistent with the generally accepted accounting principles.

The following significant accounting policies are adopted in the preparation and presentation of these financial statements:

(i) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured in accordance with Accounting Standard (AS-9) “Revenue Recognition”.

Sale of Goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have been passed to the buyer. Sales are disclosed net of GST, trade discounts and returns, as applicable.

Income from Services

Revenue from services is recognised when services have been rendered and there should be no uncertainty regarding consideration and its ultimate collection.

Interest Income

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

Dividend Income

Dividend income is recognised on receipt basis.

(ii) Property, Plant & Equipment

a) Tangible Fixed Assets are stated as per Cost Model i.e., at cost less accumulated depreciation and impairment, if any;

b) Costs directly attributable to acquisition are capitalized until the Fixed Assets are ready for use, as intended by the management;

c) Subsequent expenditures relating to fixed assets are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs & maintenance costs are recognized in the Statement of profit & Loss when incurred;

d) The cost and related accumulated depreciated are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit or Loss. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell;

e) Depreciation on Tangible Assets in case of company is provided in such a manner so that the cost of asset (Net of realizable value) will be amortized over their estimated remaining useful life on WDV basis as per the useful life prescribed under Schedule II to the Companies Act 2013.

f) Depreciation methods, useful lives, and residual values are reviewed periodically, including at each financial year end

(iii) Impairment

The Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

(iv) Inventories

The company has M-ATMs and Stocks to be given for Business Correspondence. These items are valued as per AS -2 "Inventory" at Cost or Market price which ever is lower.

(v) Foreign Exchange Transactions

There are no foreign exchange transactions during the year.

(vi) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

(vii) Borrowing Costs

There are no borrowings by the company.

(viii) Income Tax

The accounting treatment for the Income Tax in respect of the Company''s income is based on the Accounting Standard on Accounting for Taxes on Income'' (AS-22). The provision made for Income Tax in Accounts comprises both, the current tax and deferred tax. Provision for Current Tax is made on the assessable Income Tax rate applicable to the relevant assessment year after considering various deductions available under the Income Tax Act, 1961.

(ix) Deferred Tax

Deferred tax is recognised for all timing differences; being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. The carrying amount of deferred tax asset/liability is reviewed at each Balance Sheet date and consequential adjustments are carried out.

Deferred Tax liabilities have been created during the year. Since there is a timing difference arising from depreciation and amortization which are resulting into creation of deferred tax liability.

(x) Earnings Per Share

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

(xi) Provisions

A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

(xii) Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

(xiii) Cash & Cash Equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

(xiv) Comparatives

Comparatives financial information (i.e. the amounts and other disclosures for the preceding year presented above), is included as an integral part of the current year''s financial statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been regrouped / reclassified wherever necessary to correspond to figures of the current year.