1.13 Provisions, Contingent Liabilities and Contingent Assets
Provisions

A provision is recognized in the statement of profit and loss if, as a result of a
past event, the Company has a present legal or constructive obligation that
can be estimated reliably and it is probable that an outflow of economic benefits
will be required to settle the obligation. If the effect of the time value of money
is material, provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. Where discounting is
used, the increase in the provision due to the passage of time is recognized as
a finance cost.

Contingent liabilities and contingent assets

A disclosure for a contingent liability is made when there is a possible obligation
or a present obligation that may, but probably will not, require an outflow of
resources. Where there is a possible obligation or a present obligation in
respect of which the likelihood of outflow of resources is remote, no provision
or disclosure is made.

Contingent assets are not recognized in the financial statements. However,
contingent assets are assessed continually and if it is virtually certain that an
inflow of economic benefits will arise, the asset and related income are
recognized in the period in which the change occurs.

Onerous contracts

A provision for onerous contracts is recognised in the statement of profit and
loss when the expected benefits to be derived by the Company from a contract

are lower than the unavoidable cost of meeting its obligations under the contract.
The provision is measured at the present value of the lower of the expected
cost of terminating the contract and the expected net cost of continuing with the
contract. Before a provision is established, the Company recognises any
impairment loss on the assets associated with that contract.
Reimbursement rights

Expected reimbursements for expenditures required to settle a provision are
recognised in the statement of profit and loss only when receipt of such
reimbursements is virtually certain. Such reimbursements are recognised as
a separate asset in the balance sheet, with a corresponding credit to the
specific expense for which the provision has been made.

1.14 Revenue from contracts with customers

Revenue is measured based on transaction price, which is the fair value of the
consideration received or receivable, stated net of discounts and returns.
Transaction price is recognised based on the price specified in the contract,
net of the estimated sales incentives/discounts. Accumulated experience is
used to estimate and provide for the discounts/right of return, using the
expected value method.

As per Ind AS 109, Financial Instruments, Interest income from financial assets
is recognised on accrual basis, other than non performing/Credit Impaired
assets, using effective interest rate method (EIR). Interest income from a
financial asset is recognised when it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably.
Interest income is accrued on time proportionate basis, by reference to the
principle outstanding and at the effective interest rate applicable. Interest
Income on Fixed Deposits is recognized on time proportionate basis taking
into account the amount outstanding and the applicable interest rate.

Dividend income from investments is recognized when the Company's right to
receive payment has been established (provided that it is probable that the
economic benefits will flow to the Company and the amount of income can be
measured reliably).

Net gain/loss on fair value changes

Any differences between the fair values of financial assets classified as fair
value through the profit or loss held by the Company on the balance sheet date
is recognised as an unrealised gain/loss. In cases there is a net gain in the
aggregate, the same is recognised in “Net gains on fair value changes” under
Revenue from operations and if there is a net loss the same is disclosed
under “Expenses” in the statement of Profit and Loss.

Similarly, any realised gain or loss on sale of financial instruments measured
at FVTPL is recognised in net gain/loss in the statement of Profit and Loss.

However, net gain/loss on derecognition of financial instruments classified as
amortised cost is presented separately under the respective head in the
Statement of Profit and Loss.

1.15 Tax Expenses

Income tax expense comprises current and deferred tax. It is recognised in
profit or loss except to the extent that it relates to a business combination, or
items recognised directly in equity or in Other comprehensive income.

Current tax

Current income tax assets and liabilities are measured at the amount expected
to be recovered from or paid to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date. Current income tax relating to items recognised
outside the statement of profit and loss is recognised outside the statement of
profit and loss (either in OCI or in equity in correlation to the underlying
transaction). Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are subject
to interpretation and establishes provisions, where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences
between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.

Deferred tax liabilities and assets are recognized for all taxable temporary
differences and deductible temporary differences.

Deferred tax assets are recognised to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences, and
the carry forward of unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date
and reduced to the extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the deferred tax asset to be utilised.

Unrecognised deferred tax assets are re-assessed at each reporting date
and are recognised to the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply in the period when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.

Deferred tax relating to items recognised outside the statement of profit and
loss is recognised outside the statement of profit and loss (either in OCI or in
equity in correlation to the underlying transaction).

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable
right exists to set off current tax assets against current tax liabilities and the
deferred taxes relate to the same taxable entity and the same taxation authority.
Minimum alternate tax (MAT) is not applicable to the Company, it has chosen
an option to pay corporate tax under section 115BAA at the rate of 22% plus
applicable surcharge and cess subject to compliance with certain conditions.

1.16 Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before
tax is adjusted for the effects of transactions of non-cash nature, tax and any
deferrals or accruals of past or future cash receipts or payments. The cash
flows are prepared for the operating, investing and financing activities of the
Company.

1.17 Earning per share
Basic earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the
year attributable to equity shareholders (after deducting preference dividends
and attributable taxes) by the weighted average number of equity shares
outstanding during the year.

The weighted average number of equity shares outstanding during the year is
adjusted for events such as bonus issue, bonus element in a rights issue,
share split, and reverse share split (consolidation of shares) that have changed
the number of equity shares outstanding, without a corresponding change in
resources.

Diluted earnings per share

Diluted earnings per share is computed by dividing the profit (considered in
determination of basic earnings per share) after considering the effect of interest
and other financing costs or income (net of attributable taxes) associated with
dilutive potential equity shares by the weighted average number of equity shares
considered for deriving basic earnings per share adjusted for the weighted
average number of equity shares that would have been issued upon conversion
of all dilutive potential equity shares.

1.18 Segment reporting

The Company is engaged in “investments and financing” and the same
constitutes a single reportable business segment as per Ind AS 108.

1.19 Determination of fair value

The Company's accounting policies and disclosures require the determination
of fair value, for certain financial and non-financial assets and liabilities. Fair
values have been determined for measurement and/or disclosure purposes

based on the following methods. When applicable, further information about
the assumptions made in determining fair values is disclosed in the notes
specific to that asset or liability. 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.
Investments in equity and debt securities and units of mutual funds
The fair value of marketable equity and debt securities is determined by
reference to their quoted market price at the reporting date. For debt securities
where quoted market prices are not available, fair value is determined using
pricing techniques such as discounted cash flow analysis.

In respect of investments in mutual funds, the fair values represent net asset
value as stated by the issuers of these mutual fund units in the published
statements. Net asset values represent the price at which the issuer will issue
further units in the mutual fund and the price at which issuers will redeem
such units from the investors.

Accordingly, such net asset values are analogous to fair market value with
respect to these investments, as transactions of these mutual funds are carried
out at such prices between investors and the issuers of these units of mutual
funds.

1.20 New standards adopted by the company
Ind AS 1 - Presentation of financial information

The amendments require companies to disclose their material accounting
policies rather than their significant accounting policies. Accounting policy
information, together with other information, is material when it can reasonably
be expected to influence decisions of primary users of general purpose financial
statements. The Company does not expect this amendment to have any
significant impact in its financial statement.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on
transactions such as leases and decommissioning obligations. The
amendments narrowed the scope of the recognition exemption in paragraphs
15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to
transactions that, on initial recognition, give rise to equal taxable and deductible
temporary differences. The Company does not expect this amendment to have
any significant impact in its financial statements.

I nd AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies
and accounting estimates. The definition of a change in accounting estimates
has been replaced with a definition of accounting estimates. Under the new
definition, accounting estimates are “monetary amounts in financial statements
that are subject to measurement uncertainty”. Entities develop accounting
estimates if accounting policies require items in financial information to be
measured in a way that involves measurement uncertainty. The company does
not expect this amendment to have any significant impact in its financial
statements.

1.21 New Accounting pronouncements

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, 2024, MCA has not
notified any new standards or amendments to the existing standards
applicable to the Company.

Note 32: Employee benefits

Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A
liability is recognised for the amount expected to be paid if the Company has a
present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.
The Company is not having any defined contribution plans and defined benefit
plans at present.

Note 36: Financial Risk Management

The Company's primary focus is to foresee the unpredictability of financial markets and seek to
minimize potential adverse effects on its financial performance. The financial risks are managed in
accordance with the Company's risk management policy which has been approved by its Board of
Directors. The Company's Board of Directors has overall responsibility for managing the risk profile of
the Company. The purpose of risk management is to identify potential problems before they occur, so
that risk-handling activities may be planned and invoked as needed to manage adverse impacts on
achieving objectives.

(A) 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 that arises principally from the
Company's trade and other receivables, loans given, cash and cash equivalents, other
bank balances and financial assets measured at amortised cost.

Exposure to credit risk is mitigated through regular monitoring of collections, counterparty's
creditworthiness and diversification in exposure.

Exposure to Credit Risk

The carrying amount of financial assets represents maximum amount of credit exposure.
The maximum exposure to credit risk is as per the table below, it being total of carrying
amount of cash and cash equivalents, other bank balances, trade and other receivables,
loans given and financial assets measured at amortised cost. The unsecured loans also
includes loans secured partly which may not be liquid.

Expected Credit Loss (ECL) on Financial Assets

The Company continuously monitors all financial assets subject to ECL. In
order to determine whether an instrument is subject to 12 month ECL or life
time ECL (LTECL), the Company assesses whether there has been a
significant increase in credit risk or the asset has become credit impaired
since initial recognition. The Company applies following quantitative and
qualitative criteria to assess whether there is significant increase in credit
risk or the asset has been credit impaired:

- Historical trend of collection from counterparty

- Company's contractual rights with respect to recovery of dues from
counterparty

- Credit rating of counterparty and any relevant information available in public
domain

ECL is a probability weighted estimate of credit losses. It is measured as the
present value of cash shortfalls (i.e., the difference between the cash flows
due to the Company in accordance with contract and the cash flows that the
Company expects to receive).

The Company has following types of financial assets that are subject to
the expected credit loss:

(i) Trade and other receivables

Exposures to customers' loan outstanding at the end of each reporting period
are reviewed by the Company to determine incurred and expected credit
losses. Historical trends of collection from counterparties on timely basis
reflects low level of credit risk. As the Company has a contractual right to such
receivables as well as the control over such funds due from customers, the
Company does not estimate any credit risk in relation to such receivables.
The company do not have any trade receivables as at 31.03.2024 and as at
31.03.2023.

(ii) Cash and cash equivalents and other bank balances

The Company holds cash and cash equivalents and other bank balances.
The credit worthiness of such banks and financial institutions is evaluated by
the Management on an ongoing basis and is considered to be high.

(B) Liquidity Risk

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations
associated with financial liabilities that are settled by delivering cash or another financial asset.
Liquidity risk arises because of the possibility that the Company might be unable to meet its payment
obligations when they fall due as a result of mismatches in the timing of the cash flows under both
normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset
positions is not available to the Company on acceptable terms.

To limit this risk, management has adopted a policy of managing assets with liquidity in mind and
monitoring future cash flows and liquidity on a regular basis. The Company has developed internal
control processes for managing liquidity risk.

The Company maintains a portfolio of highly marketable and diverse assets that are assumed to be
easily liquidated in the event of an unforeseen interruption in cash flows. The Company assesses the
liquidity position under a variety of scenarios, giving due consideration to stress factors relating to both
the market in general and specifically to the com pany.

As of 31^st March, 2024 and 2023, the Company had unutilized credit limits from banks of NIL and NIL
respectively.

As of 31⁵¹ March, 2024, the Company had working capital (current assets less current liabilities) of
Rs.29.71 lakhs including cash and cash equivalents of Rs.24.71 lakhs, as of 31^st March, 2023, the
Company had working capital of Rs.36.31 lakhs including cash and cash equivalents of Rs.32.01
lakhs.

Exposure to Liquidity Risk

The table below analyses the Company's financial liabilities into relevant maturity pattern
based on their contractual maturities for all financial liabilities.

(C) Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial
instruments that may result from adverse changes in market rates and prices (such as foreign
exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related
to currency risk, interest rate risk and price risk. The Company is not having any exposure to any type
of borrowings.

(i) Currency Risk

The Company does not have any foreign currency denominated assets. Accordingly, the exposure to
currency risk will not arise.

(ii) Interest Rate Risk

The Company is not much exposed to the interest rate risk due to lack of investments in Debt
Securities mainly. The interest rate risk arises due to uncertainties about the future market interest rate
on these investments.

(iii) Price Risk

Price risk is the risk that the value of the financial instruments will fluctuate as a result of changes in
market prices and related market variables including interest rate for investments in debt oriented
mutual funds and debt securities, whether caused by factors specific to an individual investment, its
issuer or the market. The Company's exposure to price risk arises from investments in equity securities,
units of mutual funds which are classified as fi nancial assets at Fair Value through Other Comprehensive
Income and Fair Value through Profit and Loss respectively and is as follows:

d) Operational risk

Operational risk is the risk arising from inadequate or failed internal processes, people or systems, or
from external events. The Company manages operational risks through comprehensive internal control
systems and procedures laid down around various key activities in the Company viz., customer
service, finance function etc.,

Note 37: Capital Management

The Company's objective for capital management is to maximize shareholder wealth, safeguard
business continuity and support the growth of the Company. The funding requirements are met through
equity and operating cash flows. The Company's capital comprises Equity Share Capital, Retained
Earnings and other equity attributable to equity holders.

No changes were made in the objectives, policies or processes for managing capital during the
years ended March 31,2024 and March 31,2023.

a. The decrease in return on Equity ratio by more than 25% is due to increase in deferred
tax.

b. The increase in Net capital turnover ratio by more than 25% is mainly due to better
working capital management.

c. The decrease in Net profit ratio by more than 25% is due to increase in deferred tax.

d. The decrease in return on investment by more than 25% is due to increase in deferred
tax and increase in Fair value gains and OCI.

Note 41: The company has no amount due to suppliers under the Micro, Small and
Medium Enterprises Development Act, 2006 (MSMED Act) as at 31^st March, 2024 and as
at 31^st March, 2023.

footnote: No enterprise has been identified as a “supplier” under the
micro, small and medium enterprises Development Act, 2006. The
aforesaid identification has been done on the basis of information, to
the extent provided by the vendors to the company.

Note 42: The fair value of Investment property as at 31.03.2024 Rs.9.60
lakhs and as at 31.03.2023 Rs.9.60 lakhs.

Note 43: Miscellaneous

(I) Registration obtained from other financial sector regulators : No
registration has been obtained from other financial sector regulators.

(II) Penalties imposed by RBI and other regulators : No penalties have
been imposed by RBI or other regulators during the year: Nil
(Previous Year: Nil).

Note 44: Other statutory Information

a. The Company does not have any Benami property, where any
proceeding has been initiated or pending against the Company for
holding any Benami property.

b. The Company does not have any transactions with struck off
companies.

c. The Company does not have any charges or satisfaction which is
yet to be registered with ROC beyond the statutory period.

d. The Company has not traded or invested in Crypto currency or Virtual
Currency during the financial year.

e. The Company has not advanced or loaned or invested funds to any
other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall

i. 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

ii. provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.

f. The Company has not received any fund from any person(s) or
entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the
Company shall

i. 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

ii. provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

g. The Company has not entered in to any transaction which is not
recorded in the books of accounts that has been surrendered or
disclosed as income during the year 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).

h. The Company has not been declared as willful defaulter by any bank
or financial institution or other lender.

i. No Scheme of Arrangements has been approved by the
Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013, during the year.

Note 45:

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement
for companies under the proviso to Rule 3(1) of the Companies (Accounts)
Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021
requiring companies, which uses accounting software for maintaining its
books of account, shall use only such accounting software which has a
feature of recording audit trail of each and every transaction, creating an
edit log of each change made in the books of account along with the date
when such changes were made and ensuring that the audit trail cannot be
disabled.

Provisioning norms shall be applicable as prescribed in the Non-Banking Financial (Non-Deposit
Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2016.

Note 47: The Financial Statements were approved for issue by the Board of Directors on
25^th May, 2024.

Note 48: Previous year's figures have been regrouped/reclassified wherever necessary to
conform to the current year's presentation.

Per our report of even date annexed For and on behalf of the Board

For NSVR & ASSOCIATES LLP

Chartered Accountants .. .. .

(Firm Regn. No:008801 S/S200060) ^(T Diree^ ^(P ^redo^

DIN:02943146 DIN: 02769220

(V Gangadhara Rao N)

Partner (Sanjana Jain) (Omprakash Koyalkar)

Membership No.219486 Company Secretary Manager

UDIN: 24219486BKFBA116854

^{Place :} Hy^derabad (T. Ramesh Babu)

Date : 25^th May, 2024 Chief Financial Officer