3.14 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The assessments undertaken in recognising provisions and contingencies have been made in accordance with the
applicable Ind AS. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance
sheet date and are adjusted to reflect the current best estimate.
3.14.1 PROVISIONS
Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized
when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an
outflow of resources, that can be reliably estimated, will be required to settle such an obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows
to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value
of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in the statement
of profit and loss as a finance cost.
3.14.2 CONTINGENT LIABILITIES
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
Guarantees are also provided in the normal course of business. There are certain obligations which management of the
Company has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult
to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected
as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal
proceedings in which the Company involved, it is not expected that such contingencies will have a material effect on its
financial position or profitability.
3.14.3 CONTINGENT ASSETS
Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is
probable.
3.15 CASH FLOW STATEMENT
Cash flows are reported using indirect method as set out in Ind AS -7 “Statement of Cash Flows”, whereby profit/ (loss)
before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past 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.
3.16 FAIR VALUE MEASUREMENT
The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:
• In the principal market for asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimizing the use of unobservable
inputs.
Other Fair Value related disclosures are given in the relevant notes.
3.17 EXCEPTIONAL ITEMS
Exceptional items are transactions which due to their size or incidence are separately disclosed to enable a full
understanding of the Company’s financial performance. Items which may be considered exceptional are significant
restructuring charges, gains or losses on disposal of investments of subsidiaries, associate and joint ventures and
impairment losses/ write down in the value of investment in subsidiaries, associates and joint ventures and significant
disposal of fixed assets.
3.18 RECENT PRONOUNCEMENT
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time.
• For the year ended March 31,2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS
116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The
Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have
any significant impact in its financial statements.
• The Ministry of Corporate Affairs (MCA) has issued amendments to Ind AS 21, The Effects of Changes in Foreign
Exchange Rates, through the Companies (Indian Accounting Standards) Amendment Rules, 2025. The
amendments are effective for annual periods beginning on or after April 1,2025, with early adoption permitted. The
Company is in the process of evaluating the potential impact of these amendments on its financial statements.
Note No 13 D
The company has one class of Equity Shares having par value of Rs. 10/- per share. Each shareholder is eligible for one vote per
share held. The dividend proposed (if any) by the Board of Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting, except in case of interim dividend (if any). In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the company after distribution of all preferential amount, in proportion to their shareholding.
Shares issued by the Company for the period of five years immediately preceding as at 31st March 2025 NIL; 31st March 2024 NIL
There were no buy back of shares or issue of shares pursuant to contract without payment being received in cash in previous five
years.
Note No 14 A
Nature and purpose of Other Reserves
Securities Premium
Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes
such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
Statutory Reserve (Created U/s 45 IC Reserve Bank of India Act)
Statutory reserve represents reserve fund created pursuant to Section 45-IC of the RBI Act, 1934 through transfer of specified
percentage of net profit every year before any dividend is declared. The reserve fund can be utilised only for limited purposes as
specified by RBI from time to time and every such utilisation shall be reported to the RBI within specified period of time from the date
of such utilisation.
General Reserve
General Reserve represents the statutory reserve, this is in accordance with Corporate law wherein a portion of profit is
apportioned to general reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a company can declared
dividend, however under the Companies Act, 2013 transfer of any amount to General Reserve is at the discretion of the Company.
Retained Earnings
Retained earnings or accumulated surplus represents total of all profits retained since Company’s inception. Retained earnings
are credited with current year profits, reduced by losses, if any, dividend payouts, transfers to General reserve or any such other
appropriations to specific reserves.
Other Comprehensive Income
Other Comprehensive Income (OCI) Reserve represents the balance in equity for items to be accounted in Other Comprehensive
Income. OCI is classified into i). Items that will not be reclassified to profit and loss ii). Items that will be reclassified to profit and loss.
Disaggregate Revenue Information
Nature, timing of satisfaction and performance obligation
Interest Income - The Company only source of Revenue is Interest and Dividend Income earned from its Investments in
India.
Dividend Income - Dividends are recognized only when the right to receive payment is established.
The Company is primarily engaged in the business of financing and there are no separate reportable segments identified
accordingly reported revenue is from single segment Financing Activity.
Revenue earned is from Customers based in India only.
Note No 26
Deferred Tax
On a prudent and conservative basis, Deferred Tax Assets on timing differences, arising due to Unabsorbed Depreciation,
Business Loss has not been recognised due to uncertainity in sufficient future taxable income will be available in the foreseeable
future against which the net Deferred Tax Assets can be realised.
Note No 27
Segment Reporting
The Company is primarily engaged in the business of financing and there are no other separate reportable segments identified as
per the Ind AS 108 - Segment Reporting.
The carrying amount of Trade Receivables, Cash & Cash Equivalent, Security Deposits Paid, Other Bank Balances, Other
Financial Liabilities & Other Financial Assets are considered to be the same as their Fair Values due to their short term nature.
The carrying amount of the Financial Assets and Liabilities carried Amortised Cost is considered a reasonable approximation
of Fair Value.
Note No 32
Fair Value Hierarchy
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or
most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether
that price is directly observable or estimated using a valuation technique. In order to show how fair values have been derived,
financial instruments are classified based on a hierarchy of valuation techniques, as explained in accounting policies of the
company.
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a)
recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial
statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its
financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows
underneath the table.
The categories used are as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
The Company’s policy is to recognize transfers into and transfer out of fair value hierarchy levels as at the end of the reporting
period.
During the year there were no transfers between level 1 and level 2. Similarly, there were no transfers from or transfer to level 3.
Note -33
Financial Risk Management
The Company’s businesses are subject to several risks and uncertainties including financial risks. The Company’s documented
risk management polices, act as an effective tool in mitigating the various financial risks to which the business is exposed to in the
course of their daily operations. The risk management policies cover areas such as liquidity risk, commodity price risk, foreign
exchange risk, interest rate risk, counterparty and concentration of credit risk and capital management.
The Company’s senior management oversees the management of these risks. The senior professionals working to manage the
financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors
and Audit Committee. This process provides assurance to Company’s senior management that the Company’s financial risk-taking
activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in
accordance with Company policies and Company risk objective.
Note - 33 A Market Risk
The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial
instruments:
Price Risk;
Interest Rate Risk
The above risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’s
exposure to and management of these risks are explained below.
Price Risk - Potential Impact of Risk & Management Policy
The Company is mainly exposed to the price risk due to its investment in Equity Shares & Mutual Funds. The price risk arises due to
uncertainties about the future market values of these investments.
The Company has laid policies and guidelines which it adheres to in order to minimise price risk arising from investments in Equity
Shares & Mutual Funds.
The majority of investments of the Company are publicly traded and listed in BSE Index. Carrying amounts of the Company’s
investment in Equity Shares at the end of the reporting period are given in relevant Notes.
Price Risk - Sensitivity to Risk
The following tables demonstrate the sensitivity to a reasonably possible change in equity index where investments of the
Company are listed. The impact on the company profit before tax is due to changes in the BSE Index.
Interest Rate Risk - Potential Impact of Risk & Management Policy
The Company is mainly exposed to the interest rate risk due to its investment in term deposits with banks. The Company invests in
term deposits for a period of up to one year. Considering the short-term nature, there is no significant interest rate risk pertaining to
these deposits.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
long-term debt obligations with floating interest rates and term deposits. The Company’s fixed rate borrowings and deposits are
carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying
amount nor the future cash flows will fluctuate because of a change in market interest rates.
Interest Rate Risk - Sensitivity
The company does not have any borrowings accordingly, the company is not exposed to Interest Rate Risk.
Note - 33 B Credit Risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The
Company has adopted a policy of obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial
loss from defaults.
The Company is exposed to credit risk from its operating activities (primarily trade receivables and also from its investing activities
including deposits with banks and cash and cash equivalents.
In respect of its investments, the Company aims to minimize its financial credit risk through the application of risk management
policies. Credit limits are set based on a counterparty value. The methodology used to set the list of counterparty limits includes,
counterparty Credit Ratings (CR) and sector exposure. Evolution of counterparties is monitored regularly, taking into consideration
CR and sector exposure evolution. As a result of this review, changes on credit limits and risk allocation are carried out.
For financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and financial
institutions having high credit-ratings assigned by international credit-rating agencies. Defined limits are in place for exposure to
individual counterparties in case of mutual funds schemes and bonds. The carrying value of the financial assets other than cash
represents the maximum credit exposure.
None of the Company’s cash equivalents, including flexi deposits with banks, are past due or impaired.
Trade receivables are subject to credit limits, controls & approval processes. These terms and conditions are determined on a case
to case basis with reference to the customer’s credit quality and prevailing market conditions. The credit quality of the Company’s
customers is monitored on an ongoing basis and assessed for impairment where indicators of such impairment exist. Due to large
geographical base & number of customers, the Company is not exposed to material concentration of credit risk. Basis the historical
experience, the risk of default in case of trade receivable is low. Provision is made for doubtful receivables on individual basis
depending on the customer ageing, customer category, specific credit circumstances & the historical experience of the group. The
solvency of customers and their ability to repay the receivable is considered in assessing receivables for impairment. Where
receivables are impaired, the Company actively seeks to recover the amounts in question and enforce compliance with credit
terms.
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.
Note - 33C Liquidity Risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s
approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring
unacceptable losses. In doing this, management considers both normal and stressed conditions.
The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2025;
31st March, 2024.
Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.
The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational
needs. Any short term surplus cash generated, over and above the amount required for working capital management and other
operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest
bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on
investments while ensuring sufficient liquidity to meet its liabilities.
For maturity analysis of the Company’s financial liabilities based on contractually agreed undiscounted cash flows along with its
carrying value as at the Balance Sheet date refer Note on Maturity Analysis of Assets and Liabilities. (Note No. 28)
Note -34
Capital Management
Capital Risk Management
Capital management is driven by Company’s policy to maintain a sound capital base to support the continued development of its
business. The Board of Directors seeks to maintain a prudent balance between different components of the Company’s capital.
The Management monitors the capital structure and the net financial debt at individual currency level. Net financial debt is defined
as current and non-current financial liabilities less cash and cash equivalents and short term investments.
The Company monitors capital using gearing ratio, which is net debt divided by total capital. The Company’s policy is to keep the
Gearing Ratio within 30%.
Note -36
Going Concern
The Accumulated Losses (including Other Comprehensive Income) as at the close of the year amounts to ' 1898.48 Lacs. After
adjustment of the accumulated losses (including other comprehensive income) with General Reserve, Securities Premium and
Paid-Up Share Capital is ' 1047.81 Lacs which results in positive net worth. The Company is already a debt free company. In view
of utilization of funds to liquidate the liabilities there has been no fresh exposure of business undertaken by the Company.
The management is of the considered view that considering the availability of assets and its realization there will be sufficient
cushion available to repay all other liabilities. The accounts, as such, have been prepared on a Going Concern basis.
The Company continues to hold the certificate issued by Reserve Bank of India in Category “B” as Non-Accepting Deposits Non
Banking Finance Company.
Note -37
Corporate Social Responsibility
As per the provisions of Section 135 of the Companies Act , 2013 the company is not falling in the criteria as is prescribed in the said
section and as such , CSR is not applicable during the year.
Note - 38
Additional regulatory information required by Schedule III
i. Details of Benami Property held
No proceedings have been initiated on or are pending against the company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
ii. Willful Defaulter
Company has not been declared Willful defaulter by any bank or financial institution or government or any government
authority.
iii. Compliance with number of layers of companies
The company has complied with the number of layers prescribed under the Companies Act, 2013.
iv. Compliance with approved scheme(s) of arrangements
The company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.
v. Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the
Income Tax Act, 1961, that has not been recorded in the books of account.
vi. Details of Crypto currency or Virtual currency
The company has not traded or invested in crypto currency or virtual currency during the current or previous year.
vii. Valuation of Property, Plant & Equipments, intangible asset and investment property
The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both
during the current or previous year.
viii. Registration of charges or satisfaction with Registrar of Companies:
Details of Charge pending satisfaction which are yet to be registered with the Registar of Companies beyond the statutory
period, however, as 31st March 2025, there are no charges to be registered with the Registrar of Companies
This information has been given as per MCA Portal, Since charge pertains to year 1996, the company does not have any
records of the above charge.
ix. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on
behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party)
with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities
identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
x. There is no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of
Companies Act, 1956 during the year.
xi. The Company has not declared or paid dividend during the year 2024-2025.
Note - 39
No significant adjusting event occurred between the balance sheet data and date of the approval of these financial statements by
the Board of Directors of the company.
Note - 40
Previous year figures have been regrouped/rearranged, wherever considered necessary.
As per our Report of even date For and on behalf of
For Jagdish Chand & Co. India Lease Development Limited
Chartered Accountants
ICAI Firm Registration No: 000129N
(Preeti Basniwal) Rajiv Gupta Dinesh Agnani
Partner Chairman Director
Membership No. 531468 DIN:00022964 DIN:00591448
Murali. S Rohit Madan
Chief Executive Officer Manager, Company Secretary & CFO
ACS:13636
Place of Signing : New Delhi
Dated : May 28, 2025
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