5. Provisions (other than Employee Benefits), Contingent Liabilities and Contingent Assets
A provision is recognized when the Company has a present legal obligation as a result ot past event
and it is probable that an outflow of resources will be required to settle the obligation, in respect of
which reliable estimate can be made. Provisions are determined based on best estimate required to
settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are
disclosed in the notes to the financial statements. A contingent asset is neither recognized nor
disclosed if inflow of economic benefit is probable.
6. Recognition of Dividend Income, Interest Income
Income from dividend is accounted as and when such dividend has been declared and the company s
right to receive payment is established.
Interest income is recognized on a time proportion basis, taking in the account the amount
outstanding and the rate applicable.
7. Income Tax
Income tax comprises current and deferred tax. It is recognized in profit or loss except to the extent
that it relates to a business combination or to an item recognised directly in equity or in other
comprehensive income.
(i) Current Tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the
year and any adjustment to the tax payable or receivable in respect of previous years. The amount of
current tax reflects the best estimate of the tax amount expected to be paid or received after
considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax
laws) enacted or substantively enacted by the reporting date. Current tax assets and current tax
liabilities are offset only if there is a legally enforceable right to setoff the recognized amounts, and it
is intended to realize the asset and settle the liability pnjrnetbasis or simultaneously.
(ii) Deferred Tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the corresponding amounts used or
taxation purposes. , ...,
Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be
available against which they can be used.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is
realized or the liability is settled, based on the laws that have been enacted or substantively enacted
by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner
in which the Company expects, at the reporting date, to recover or settle the carrying amount of its
assets and liabilities.
Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same
taxable entity, or on different taxable entities, but they intend to settle current tax liabilities and
assets on net basis or their tax assets and liabilities will be realized simultaneously.
8. Cash and Cash Equivalents
Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits with
banks and other short term highly liquid investments that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value where original maturity is
three months or less.
9. Earnings per Share
Basic earnings per share is calculated by dividing the net profit after tax for the year attributable to
equity share holders of the Company by the weighted average number of equity shares outstanding
during the year. Diluted earnings per share is calculated by dividing net profit attributable to equity
share holders (after adjustment for diluted earnings) by average number of weighted equity shares
outstanding durii.g the year plus potential equity shares.
10. Cash Flow Statement
Cash flows are reported using the indirect method where by the profit before tax is adjusted for the
effect of the transactions of a non-cash nature, any deferrals or accruals of past and future operating
cash receipts or payments and items of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and financing activities of the Company are
segregated.
!($(
28 Financial Risk Management Objectives and Policies
Risk Exposure
The Company's business activities expose it to only one type of financial risk and that is market risk. Market risk is the risk or uncertainty arising
from possible market price movements and their impact on the present/future performance of a business. The market risks include price risk,
currency risk and interest rate risk. The primary price risk for the company is equity securities price risk i.e. price risk of various investments that
could adversely affect the value of the Company's financial assets or expected future cash flows.
The Company’s exposure to equity securities price risk arises from investments held by the Company which are classified in the balance sheet as
fair value through Other Comprehensive Income (FVOCI).
Risk Management Policy
The Company’s senior management has overall responsibility for the establishment and oversight of the Company's risk management framework.
The Company lias constituted a Risk Management Committee which is responsible for developing and monitoring the Company s risk
management policies.The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly
to reflect changes in market conditions and the Company's activities.
The Management of the Company are governed by appropriate policies and procedures and that financial risk is identified, measured and
managed in accordance with the Company's policies and risk objectives. The activities are designed to protect the Company s financial results and
position from financial risks, maintain market risks within the acceptable parameters while optimizing returns and protect the Company's
financial investments while maximizing returns.
29 Cashflow statement
Cash (lows are reported using indirect method whereby profit for the period is adjusted for the effects of the transactions ot non-cash nature, any
deferrals or accruals of past or future operating cash receipts and payments and items of income or expenses associated with investing and
financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
30 Event after reporting
Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of
such events Is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only
disclosed.
31 Capital management
The company defines capital as total equity including issued equity capital and all other equity reserves. The Company monitors capital using a
ratio of'adjusted net debt' to'adjusted equity'. For this purpose, adjusted net debt is defined as total liabilities and comprising debt Instruments
and borrowings less cash and cash equivalents. Adjusted equity comprises all components of equity.
35 NBFC-NDs with asset size of less than Rs. 500 Crore are exempted from maintaining CRAR and complying with Credit Concentration Norms. Hence. Ratio disclosure is not made.
36 Previous Year's figures have been regrouped / reclassified wherever necessary to confirm to current year presentation.
As per our report attached
For Ashil N. Shah & Co ^^or and on behalf of board of directors of
Chartered Accountants .^"SERA INVESTMENTS & FINANCE INDIA LIMITED
Firm's Registeration Number: ^
/X r-r- /y'sN. ^/^agarSShah ShwetaSShah
L^c1 Whole Time Director Managing Director
A<fiitShah y ^ DIN: 03082957 DIN: 03082967
Proprietor li'^f • ' A*
Memboi.hip No.: 036857 Ahm3d3 J3CU <p(3,
\wNv * Pranav Chalishajar
V --Chief Financial Officer
Place . Ahmcdabad Place : Ahmedabad
Date: 08-05-2025 Date: 08-05-2025
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