The Company has elected to exercise the option permitted under section 115BAA of Income Tax Act, 1961 as introduced by Taxation laws (Amendment) Ordinance 2019. Accordingly, the Company has recognised provision fbrcurrent tax/ deferred tax for the year ended 31st March 2023 and also remeasured its deferred tax assets on the basis of rate as prescribed in the said section.
Interest accrued on Loan and Deposits includes Rs NIL (Rs. 2.97 Lakhs) from Wholly Owned Subsidiary- IM Investments and Capital Private Limited.
Due from related party includes due from SMC & IM Capital Investment Manager LLP - NIL (PY- Rs 44.45 Lakhs) and IM Investments & Capital Pvt. Ltd. - NIL (PY - 2.72 Lakhs)
The aforesaid disclosure is based upon percentages computed separately for class of shares outstanding, as at the balance sheet date. As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
Terms/rights attached to paid up equity shares
The Company has only one class of equity shares having a par value of Rs 10/-. Each holder of equity shares sentitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
The information as required to be disclosed under The Micro, Small and Medium Enterprises Development Act, 2006 ("the Act") has been determined to the extent such parties have been identified by the Company, on the basis of information and records available with them. This information has been relied upon by the auditors.
Financial Risk Management
The Company's activities expose it to a variety of financial risks: interest rate risk, credit risk and liquidity risk. The Company's overall risk management strategy seeks to minimize adverse effects from the unpredictability of financial markets on the Company's financial performance. These risks are managed by the Management of the Company under Board of Directors of the Company to minimize potential adverse effects of the financial performance of the Company.
Interest rate risk
Interest rate risk primarily arises from floating rate borrowings. The Company do not have any borrowings from outside parties. The loan given to wholly owned subsidiary Company is interest bearing and, therefore, interest rate risk is minimized.
Credit risk
Credit risk is the risk of financial loss to the Company, if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables.
Investments / Inter Corporate Loan
The Company has given loan to its wholly owned subsidiary which is also interest bearing and therefore less prone to credit risk. The Company has also invested in real estate properties by giving advances and are also less prone to credit risk.
Cash & cash equivalents
With respect to credit risk arising from financial assets which comprise of cash and cash equivalents, the Company's risk exposure arises from the default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets at the reporting date. Since the counter party involved is a bank, Company considers therisks of non-performance by the counterparty as non-material.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. The Company's finance department is responsible for fund management. In addition,processes and policies related to such risks are overseen by senior management.
The Company has no secured or unsecured borrowings and has adequate and sufficient liquidity as detailed above to meet any kind of exigencies. In addition, the Company has recourse to recall loans given to wholly owned subsidiary Company. These measures are considered by the management adequate to ensure that the Company is not exposed to any kind of liquidity risk.
Capital Risk
The Company has no borrowings, therefore, not prone to capital risk
The Ministry of Corporate Affairs (MCA) through Companies (Indian Accounting Standards) Amendment Rules 2019 and Companies (Indian Accounting Standards) Second Amendment Rules has notified Ind AS 116 'Lease' which replaces existing lease Standard, Ind AS 17 leases and other Interpretations. Ind AS 116 sets out the principles for recognition, measurement, presentation and disclosure of leases for both lessee and lessor. It introduces a single lease accounting model for lessees.
The Company has adopted Ind AS 116 effective annual reporting period beginning April 1, 2019. The lease payments including interest have been disclosed under cash flow from financing activities. The weighted average incremental borrowing rate of 9% has been applied to lease liabilities recognised in balance sheet at the date of initial application. On application of IndAs 116, the nature of expense has changed from lease rent in previous periods to depreciation cost for right to use asset and finance cost for interest accrued on lease liability.
The Company had made an investment in SMC & IM Capital Investment Manager LLP for Rs 1,50.00 Lakhs and is classified as non-current investment. The said LLP has reported losses, the current account balance of Company in said LLP is negative by Rs 82.20 Lakhs. The said LLP is engaged in business of management of Real estate fund & the Company foresees future prospects in the business of LLP.
Impairment in the value of such investment has not been made, as in the opinion of management such impairment in value of investment is of temporary in nature and being non-current investment has been carried at cost.
Note- 38
The provisions of sections 135 of Companies Act, 2013 relating to expenditure on the Corporate Social Responsibility are not applicable to the company, as networth/ Turnover/ net Profit criteria are not achieved. Note- 39
The Ministry of Corporate Affairs (MCA) notifies new Indian Accounting Standards or amendments there to. There is no such notification which would have been applicable from April 1st 2022.
Note - 40
Borrowings from banks and financial institutions were applied for the specific purpose for which the borrowings were obtained at the balance sheet date. However, Company has not borrowed any money during the year.
Note - 41
The company does not have any relationship with companies struck off under section 248 of the Companies Act, 2013
Note - 42
During the year, the company has not been declared willful defaulter by any bank or financial institution or other
lender
Note- 43
There is no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period Note- 44
Previous Years figures have been re-arranged/re-grouped, wherever necessary to confirm to current year classification, all amount shown in Rupees Lakhs unless otherwise specifically mentioned.
Note-45
Details of Crypto Currency or Virtual Currency
During the year, the company has not entered into any transaction related to the Crypto Currency or Virtual Currency.
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