(d) Claims, Provisions, Contingent assets and Liabilities:
Claims lodged by and lodged against the Company are accounted in the period of payment or settlement thereof.
Provisions are recognised when, as a result of a past event, the Company has a legal or constructive obligation; it is probable that an
outflow of resources will be required to settle the obligation; and the amount can be reliably estimated. The amount so recognised is
the best estimate of the consideration required to settle the obligation at the reporting date, taking into account the risks and
uncertainties surrounding the obligation.
In an event when the time value of money is material, the provision is carried at the present value of the cash flows estimated to settle
the obligation.
Contingent liabilities are not recognised but are disclosed by way of notes to the financial statements, after careful evaluation by the
management of the facts and legal aspects of each matter involved. Contingent assets are neither recognised nor disclosed in the
financial statements.
Contingent liabilities are assessed continually to determine whether an outflow of resources embodying the economic benefit has
become probable. If it becomes probable that an outflow of future economic benefits will be required for an item previously dealt with
as contingent liability, a provision is recognised in the financial statements of the period in which the change in probability occurs.
(e) Recognition of revenue and expenditure
(i) Revenue is recognised to the extent that is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration
received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on the
behalf of the government.
Revenue is recognised in the period in which the services are rendered and the amount of revenue can be measured reliably and
recovery of the consideration is probable.
(ii) Interest and dividend income
Interest income is recognised using Effective Interest Method (EIR).
EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of financial
instruments or a shorter period, where appropriate, to the gross carrying amount of the asset or to the amortised cost of financial
liability. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the
contractual terms of the financial instrument but does not consider the expected credit loss.
Dividend income is recognised in the Statement of Profit and Loss when the right to receive dividend is established.
(f) Employee benefits
Benefits such as salaries, wages and short term compensations etc. is recognized in the period in which the employee renders the
related service.
The Company makes contributions to defined benefit schemes. The Company makes contribution to defined benefit i.e. gratuity plan.
The cost of providing benefits under the defined benefit obligation is calculated by independent actuary using the projected unit credit
method. Service costs and net interest expense or income is reflected in the Statement ofProfit and Loss. Gain or Loss on account ofre-
measurements are recognised immediately through other comprehensive income in the period in which they occur.
(g) Taxes on income
Taxes on income comprises of current taxes and deferred taxes. Current tax in the Statement of Profit and Loss is provided as the
amount of tax payable in respect of taxable income for the period using tax rates and tax laws enacted during the period, together with
any adjustment to tax payable in respect of previous years.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities and the amounts used for
taxation purposes (tax base), at the tax rates and tax laws enacted or substantively enacted by the end of the reporting period.
Deferred tax assets are recognised for the future tax consequences to the extent it is probable that future taxable profits will be
available against which the deductible temporary differences can be utilised.
Deferred tax assets and liabilities are offset when there is legally enforceable right to offset current tax assets and liabilities and when
the deferred tax balances related to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a
legally enforceable right to offset and intends either to settle on net basis, or to realize the asset and settle the liability simultaneously.
(h) Foreign currency transactions and translation
Transactions in foreign currency are accounted for at the exchange rate prevailing on the transaction date. Gains/ losses arising on
settlement as also on translation of monetary items are recognised in the Statement of Profit and Loss.
(i) Prior period errors
Prior Period Errors are omissions from, and misstatements in, prior period financial statements resulting from the failure to use, or the
misuse of, reliable information that was available, or could be reasonably expected to have been obtained, at the time of preparation of
those financial statements.
Prior Period Errors has been corrected retrospectively in the financial statements. Retrospective application means that the correction
affects only prior period comparative figures, current period amounts are unaffected. Comparative amounts of each prior period
presented which contain errors are restated. If however, an error relates to a reporting period that is before the earliest prior period
presented, then the opening balances of assets, liabilities and equity of the earliest prior period presented has been restated. (As per
IAS 8).
(j) Borrowing cost
Borrowing Cost attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets upto
the date when such assets are ready for intended use. Other borrowing costs are charged to Statement ofProfit and Loss as expense in
the period in which they are incurred.
(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 (i.e. the average market value of the outstanding equity 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.
(l) Cash flow statement
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects oftransactions ofa non-cash
nature and any deferrals or accruals ofpast or future cash receipts or payments. The cash flows from operating, investing and financing
activities of the Company are segregated based on the available information.
(m) Cash and cash equivalents
Cash and cash equivalents in the Balance Sheet comprise cash at banks and on hand and short-term deposits with an original maturity
of three months or less, which are subject to insignificant risk of changes in value.
26 The Company has along with certain other professional services firms and companies in 9 (Nine) other countries, promoted a company limited by guarantee in the
U.K. with the name BTG Global Advisory Ltd. (BTGA) which is a non-practicing umbrella entity, to (i) promote professional services of the members, (ii) promote
cross referrals of international work, and (iii) creating a framework for progressingjoint pitching opportunities. The Company has nominated one of its Directors of a
wholly owned subsidiary as a director on the Board of Directors of BTGA. The Company’s guarantee is UK Pound 1.
27 As per Indian Accounting Standard-110 on "Consolidated Financial Statements" and Indian Accounting Standard-28 on "Investments in Associates in Consolidated
Financial Statements" issued by the Ministry of Corporate Affairs, Government of India, the Company has presented consolidated financial statements separately.
28 In line with the provisions of Ind AS-108 ‘Operating Segments’ as notified under the Companies (Ind AS) Rules, 2015, and as provided in section 133 of the
Companies Act, 2013, the operations of the Company fall under the head “providing consultancy and advisory services”, which is considered to be the only reportable
segment by the management. Pursuant to change in Object Clause of the Company, the activities of the Company are services in the nature of advisory in matters
related to Insolvency and Bankruptcy. The spread of COVID-19 Pandemic has had an effect on operations of the Company. The Company is in process of making an
application to Insolvency Bankruptcy Board of India for recognition as an Insolvency Professional Entity.
29 Dividend in respect of Cumulative Non-Convertible Redeemable Preference shares has not been provided in the Statement of Profit and Loss during the year due to
negative accumulated profits. The Preference Shares of Rs. 2,05,00,000, comprising 2,05,000 7% Cumulative Non-Convertible Redeemable Preference shares of Rs.
100 each are due for redemption on January 14, 2026.
The holder of preference shares has waived its right to receive dividend.
37 Financial risk management
i) Financial instrument by category
a) Investment in equity shares of subsidiaries, associates and joint venture are measured in accordance with Ind AS 27, “Consolidated and
Separate Financial Statements” and investment in equity shares of other entity is measured in accordance with Ind AS 103 'Financial
Instruments' issued by the “Ministry of Corporate Affairs”, Government of India.
b) For amortised cost instruments, carrying value represents the best estimate of fair value except investment in other debentures.
ii) Risk management
The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s Board of Directors has overall responsibility
for the establishment and oversight of the Company’s risk management framework. This note explains the sources of risk which the entity is
exposed to and how the entity manages those risks.
A) Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company’s exposure to credit risk is
influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company
continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit
risk related to cash and cash equivalents and bank deposits is managed only by accepting highly rated banks and diversifying bank deposits.
Other financial assets measured at amortized cost includes loans to employees, security deposits and others. Credit risk related to these other
financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in
place ensures the amounts are within defined limits.
Credit risk management: The Company assesses and manages credit risk of financial assets based on following categories arrived on the
basis of assumptions, inputs and factors specific to the class of financial assets.
a) Low credit risk
b) Moderate credit risk
c) High credit risk
Credit risk exposures: The Company’s trade receivables does not have any expected credit loss as they are generally within the credit
period. In case of non recoverability in extreme cases, the Company, accordingly, provides for the same in its books of account instead of
writing it off permanently.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains
adequate liquidity for meeting its obligations by monitoring the Company’s liquidity position and cash and cash equivalents on the basis of
expected cash flows from the operations.
C) Market risk
Market risk is the risk of changes in the market prices on account of foreign exchange rates, interest rates and Commodity prices, which shall
affect the Company’s income or the value of its holdings of its financial instruments. The objective of market risk management is to manage
and control market risk exposure within acceptable parameters, while optimising the returns.
a) Currency risk
The Company undertakes transactions denominated in foreign currencies, which are subject to the risk of exchange rate fluctuations.
Financial assets and liabilities denominated in foreign currency, except the Company’s net investments in foreign operations (with a
functional currency other than Indian Rupee), are subject to reinstatement risks.
b) Interest risk
i) Assets: The Company’s fixed deposits are carried at fixed rate and interest rate on loan given to subsidiary company is also fixed.
Therefore, they are not subject to interest rate risk as defined in Ind AS 107 issued by “the Ministry of Corporate Affairs, Government of
India" since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
ii) Liabilities: The Company does not have any borrowings from the market and therefore, it is not subject to interest rate risk.
39 The Company has presented its financial statements in lakhs and figures have been rounded off to the nearest two decimal after lakh.
40 Figures in bracket represents previous year figures, unless otherwise indicated.
41 Figures of the previous year have been regrouped/recast, wherever necessary, to confirm to current period's presentation.
The accompanying notes are an integral part of the financial statements.
As per our report of even date.
For DHANA & Associates
Chartered Accountants Sajeve Bhushan Deora Gyaneshwar Sahai
Firm Registration No. 0510525C Director Director
DIN: 00003305 DIN: 00657315
Nitin Kumar Lohia
Partner
Membership No. 508528 Vartika Jain Anil Kumar Tiwari Pinku Kumar Singh
Date: 30.05.2025 Company Secretary Chief Executive Officer Chief Financial Officer
New Delhi Membership No. A70782 PAN:AFXPT0882R PAN: HSQPS7526Q
| 