l) Provision and contingencies
The Company makes a provision when there is a present
obligation as a result of a past event, where the outflow of
economic resources is probable and a reliable estimate of
the amount of the obligation can be made.
A disclosure is made for a contingent liability when there is a:
- possible obligation, the existence of which will be
confirmed by the occurrence/non-occurrence of one
or more uncertain events, not fully within the control
of the Company;
- present obligation, where it is not probable that an
outflow of resources embodying economic benefits
will be required to settle the obligation; and
- present obligation, where a reliable estimate cannot
be made.
When there is a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or
disclosure is made.
m) Cash and cash equivalent
Cash and cash equivalents comprise cash at bank and in
hand and short-term bank deposits with an original maturity
of three months or less.
n) Earnings per share
Basic earnings per share are calculated by dividing the net
profit or loss for the year attributable to equity shareholders
by the weighted average number of equity shares
outstanding during the year.
For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of
all potential dilutive equity shares.
o) Recent accounting pronouncements
Ministry of Corporate Affairs("MCA") notifies new
standard or amendment to the existing standard under
Companies(Indian Accounting Standard Rules as issued from
time to time. As on March 31,2025, there is no new standard
notified or amendment to any of the existing standard under
Companies(Indian Accounting Standard) Rules, 2015.
p) Impairment of financial instruments
The Company uses 'Expected Credit Loss' (ECL) model, for
evaluating impairment of financial assets measured at
amortized cost or FVTOCI, except for investments in equity
instruments. Company follows a 'three-stage' model for
impairment based on changes in credit quality since initial
recognition.
Stage 1 (Performing Assets) - includes financial assets that
have not had a significant increase in credit risk since initial
recognition or that have low credit risk at the reporting date.
For these assets, 12-month ECL is recognized and interest
income is calculated on the gross carrying amount of the
assets (that is, without deduction for credit allowance).
12-month ECL are the portion of ECL that results from
default events on a financial instrument that are possible
within 12 months after the reporting date, if the credit risk
has not significantly increased since initial recognition.
Stage 2 (Underperforming Assets with significant
increase in credit risk since initial recognition) - includes
financial instruments that have had a significant increase
in credit risk since initial recognition (unless they have
low credit risk at the reporting date) but that do not have
objective evidence of impairment. For these assets, lifetime
ECL are recognized, but interest income is calculated on the
gross carrying amount of the assets. Lifetime ECL are the
expected credit losses that result from all possible default
events over the expected life of the instrument.
Stage 3 (Non-performing or Credit-impaired assets)-
includes financial assets that have objective evidence of
impairment at the reporting date. For these assets, lifetime
ECL is recognized.
Nature and purpose of reserves
(i) Securities premium : Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance
with the provisions of the Indian Companies Act, 2013 ("the Companies Act").
(ii) Share Warrants : i it is a document issued by the company under its common seal, stating that its bearer is entitled to the shares or
stock specified therein. Share warrants are negotiable instruments. They are transferable by mere delivery without registration
of transfer.
(iii) Retained earnings : It represents unallocated/un-distributed profits of the Company. The amount that can be distributed as
dividend by the Company as dividends to its equity shareholders is determined based on the separate financial statements of the
Company and also considering the requirements of the Companies Act, 2013. Thus amount reported above are not distributable
in entirety.
(iv) Reserve fund in terms of section 45-IC(1) of the Reserve Bank of India Act, 1934 : Reserve fund is created as per the terms of
section 45-IC(1) of the Reserve Bank of India Act, 1934 as a statutory reserve.
(v) ESOP Reserve : ESOP stands for employee stock ownership plan. An ESOP grants company stock to employees, often based on
the duration of their employment.
19(C) EMPLOYEE SHARE BASED PAYMENTS
The Company has established employees stock options plan, 2022 (ESOP Scheme-Moongipa Securities Limited Employee Stock
Option Scheme-2022) for its employees by passing a resolution through postal ballot e-voting dated November 27, 2022. The
employee stock option plan is designed to provide incentives to the employees of the Group to deliver long-term returns and is
an equity settled plan. The ESOP Scheme is administered by the Nomination and Remuneration committee. Participation in the
plan is at the Nomination and Remuneration committee's discretion and no individual has a contractual right to participate in the
plan or to receive any guaranteed benefits. Options granted under ESOP scheme would vest in not less than one year and not
more than five years from the date of grant of the options. The Nomination and remuneration committee of the Company has
approved multiple grants with related vesting conditions. Vesting of the options would be subject to continuous employment
with the Company and hence the options would vest with passage of time. In addition to this, the Nomination and remuneration
committee may also specify certain performance parameters subject to which the options would vest. Such options would vest
when the performance parameters are met.
Once vested, the options remain exercisable for a period of maximum five year. Options granted under the plan are for no
consideration and carry no dividend or voting rights. On exercise, each option is convertible into one equity share.
b) Fair Value of the options granted during the year-
During the current year Nomination & remuneration committee approved one grant which was surrendered by the allottees
during the financial year itself.
The Company has granted options under ESOP scheme based on following criteria and related assumptions
Vesting criteria - Continuous employment with the company.
Fair Valuation Method- Black Scholes options Pricing Model
The above information regarding Micro, small and medium enterprises has been determined to the extent such parties have been
identified on the basis of information available with the Company.
Micro, Small and Medium Enterprises Development
The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends
that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum
Number as allocated after filing of the Memorandum. Based on the information available with the management, as at 31 March 2025,
no dues were outstanding to micro and small enterprises as defined under the Micro, Small and Medium Enterprises Development
Act, 2006. Further, the Company has not received any claim for interest from any supplier under the said Act till 31st March 2025.
38 FINANCIAL RISK MANAGEMENT
The company is exposed to various risk in relation to financial instruments. The company is exposed to market risk, credit risk
and liquidity risk. The company risk activities are governed by appropriated policies and procedures and that financial risk
are identified, measured and managed in accordance with the companies policies and risk objectives, which are summarized
below:-
a) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market
prices. Market risk comprises Interest rate risk and foreign currency risk. The company does not have any foreign currency risk
since the company does not have any foreign currency exposure as on reporting date.
The company uses a mix of cash and borrowings to manage the liquidity and fund requirement of its day-to-day operations.
Further, certain interest bearing liabilities carry variable interest rate.
b) Credit Risk
Credit risk is the risk of financial loss if a customer or counterparty fails to meet an obligation under a contract. Lending activities
account for most of the Company's credit risk. Other sources of credit risk also exist in loans and transaction settlements. Credit
risk is measured as the amount that could be lost if a customer or counterparty fails to make repayments. The maximum exposure
to credit risk in the case of all the financial instruments is restricted to their respective carrying amount. Credit Risk is monitored
through stringent credit appraisal, counter party limits and internal risk ranges of the borrowers. Exposure to credit risk is managed
through regular analysis of the ability of all the customers and counterparties to meet interest and capital repayment obligations
and by changing lending limits where appropriate.
Company primarily offers loans secured by immovable property. In order to mitigate credit risk, the company also seeks collateral
appropriate to the product segment. Other means of mitigating credit risk that the company uses are guarantees. The most
common types of collateral the company receives, measured by collateral value, are mortgages on financial assets in the form of
real estate. The company carries a Standard Assets Provision at 0.40 % on loans and advances.
ii) Credit Quality Analysis
An impairment analysis is performed at each reporting date based on the facts and circumstances existing on that date to
identify expected losses on account of time value of money and credit risk. The credit quality of Loans and advances measured
at amortized cost is primarily assessed by the Days Past Due (DPD) status.
Inputs, assumptions and techniques used for estimating impairment
In assessing the impairment of financial assets under the expected credit loss model, the Company defines default when a loan
obligation is overdue for more than 90 days.
Assessment of significant increase in credit risk
When determining whether the risk of default has increased significantly since initial recognition, the Company considers the DPD
status of the loans. Credit risk is deemed to have increased significantly when an asset is more than 30 days past due (DPD)
Calculation of expected credit losses
ECL provisioning has been computed taking guidance from the RBI's IRB approach.
The Company has followed simplified approach of ECL provisioning on loans and advances.
Applicable provisions for NBFCs covered under Ind AS:
RBI vide circular no. RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020, provides that NBFCs
which are required to comply with Indian Accounting Standards (Ind AS) shall, as hitherto, continue to be guided by the guidelines
duly approved by their board and as per the ICAI guidelines for recognition of the impairments.
Policy for Write off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no reasonable
expectation of recovering the asset in its entirety or a portion thereof. This is generally the case when the Company determines
that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off and when there is no reasonable expectation of recovery from the collaterals held. However, financial
assets that are written-off could still be subject to enforcement activities in order to comply with the Company's procedures for
recovery of amounts due.
iv) Collateral and other credit enhancements
Company would generally have its credit exposures backed by securities, either primary or collateral. Lending Policy of the Company
prescribes Asset cover norms and collateral guidelines for its various product offering. The amount and type of collateral required
depends on an assessment of the credit risk of the counterparty and product offered. Company grants loans against collateral
of immovable property (Land, under construction projects, Ready property) including commercial and residential properties.
As collateral is a source of mitigating credit risk, assessment of the condition of the securities and their value is undertaken on a
regular basis. There were no significant changes in the collateral policy of the company during the Financial Year 2024-2025
c) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulties in meeting the obligations associated with its financial
liabilities that are selected by delivering cash or other financial assets. The Company's approach to managing liquidity is to ensure,
as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Company's reputation. The Company has in place an
Asset-Liability Management Committee (ALCO) which functions as the operational unit for managing the Balance Sheet within
the performance and risk parameters laid down by the Board and Risk Committee of the Board. ALCO reviews Asset Liability
strategy and Balance Sheet management in relation to asset and liability profile. ALCO ensures that the objectives of liquidity
management are met by monitoring the gaps in the various time buckets, deciding on the source and mix of liabilities, setting the
maturity profile of the incremental assets and liabilities etc.
Key principles adopted in the Company's approach to managing liquidity risk include:
a) Monitoring the Company's liquidity position on a regular basis, using a combination of contractual and behavioral modelling
of balance sheet and cash flow information
b) Maintaining a high quality liquid asset portfolio or maintaining undrawn bank lines
c) Operating a prudent funding strategy which ensures appropriate diversification and limits maturity concentrations
42 LONG-TERM CONTRACTS
The company did not have any long-term contracts including derivative contracts for which any provision is required for the
forseeable losses.
43 FOREIGN CURRENCY EXPOSURE NOT HEDGED BY DERIVATIVE INSTRUMENTS
NIL (Previous Year- NIL)
44 DISCLOSURE IN RESPECT OF RBI CIRCULAR ON “COVID19 REGULATORY PACKAGE - ASSET CLASSIFICATION AND
PROVISIONING
Not Applicable
45 DISCLOSURE AS PER THE FORMAT PRESCRIBED AS PER THE NOTIFICATION NO. RBI/2020-21/16 DOR.NO.BP.BC/3/
21.04.048/ 2020-21 DATED AUGUST 6, 2020 AND RB1/2021-22/31/DOR.STR.REC.11 /21.04.048/2021-22 DATED MAY 05,
2021 - ON RESOLUTION FRAMEWORK-RESOLUTION OF COVID-19 RELATED STRESS
Not applicable since no resolution plan implemented under this framework
46 DISCLOSURE PERTAINING TO RBI MASTER DIRECTION - RBL/DOR/2021-22/86 DOR STR.REC51/21.04.048/2021-22
RESERVE BANK OF INDIA (TRANSFER OF LOAN EXPOSURES) DIRECTIONS, 2021 DATED SEPTEMBER 24, 2021
(a) The Company has not transferred through assignment in respect of loans not in default during the financial year ended
March 31,2025 and March 31,2024
(b) The Company has not acquired any loans (not in default) through assignment during the financial year ended March 31,
2025 and March 31,2024
(c) The Company has neither acquired nor transferred any stressed loans during the financial year ended March 31, 2025 and
March 31, 2024
47 PURSUANT TO RBI CIRCULAR ON PRUDENTIAL NORMS ON INCOME RECOGNITION, ASSET CLASSIFICATION AND
PROVISIONING PERTAINING TO ADVANCES
Clarification dated November 12, 2021, the Company has taken necessary steps in accordance with the provision of the aforesaid
circular. Further, on February 15, 2022, RBI has allowed a deferment of Para 10 of the aforesaid circular till September 30, 2022,
pertaining to upgrade of non-performing account.
48 MORATORIUM IN ACCORDANCE WITH THE RESERVE BANK OF INDIA (RBI) GUIDELINES
Not Applicable
49 MANAGERIAL REMUNERATION
During the year, Company has not paid the managerial remuneration to the directors which exceeds the limit prescribed under
section 197 and rules thereunder read with Schedule V of the Act.
50 RELATIONSHIP AND TRANSACTIONS WITH STRUCK OFF COMPANIES
The Company does not have any transactions with struck-off companies in the financial year ended March 31, 2025 and
March 31,2024
51 UNDISCLOSED INCOME
The Company does not have any transaction which is not recorded in the books of accounts but has been surrendered or disclosed
as income in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the
Income Tax Act, 1961) for the financial year ended March 31,2025 and March 31,2024.
52 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES
No Satisfaction of charges pending on March 31,2025
53 SCHEME(S) OF ARRANGEMENTS
Not Applicable
54 DISCLOSURE W.R.T CRYPTO CURRENCY OR VIRTUAL CURRENCY
The company has not traded or invested in Crypto currency or virtual currency during the financial year ended March 31,2025 and
March 31,2024.
55 OTHER STATUTORY INFORMATION
i) No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder during the financial year ended March 31,2025
and March 31,2024.
ii) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or other kind of funds) to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
iii) The Company has not received any funds (which are material either individually or in the aggregate) from any person or
entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that
the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
(iv) The company has not been declared as willful defaulter by any bank or financial institutions or other lender during the
financial year ended March 31,2025 and March 31,2024.
As per our report of even date For and on behalf of the Board of Directors of
For AKGVG & Associates SG Finserve Limited
Chartered Accountants
Firm Registration No.018598N
Mohan Nayak Sahil Sikka Rohan Gupta Asha Anil Agarwal Sorabh Dhawan Ritu Nagpal
Partner Chief Financial Officer Director Director Chief Executive Officer Company Secretary
Membership No.029858 DIN- 08598622 DIN-09722160 ICSI Membership
No.A38318
Place: Bengaluru Date: May 8, 2025
Date: May 8, 2025 Place: Ghaziabad
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