3.9 Provisions and contingent liabilities
The Company creates a provision when there is present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation.
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. The Company also discloses
present obligations for which a reliable estimate cannot be made.
When 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.
3.10 Foreign currency translation
The Company's financial statements are presented in Indian Rupee,
which is also the Company's functional currency.
Initial recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate
between the reporting currency and the foreign currency at the date
of the transaction.
Conversion
Foreign currency monetary items are re-translated using the
exchange rate prevailing at the reporting date. Non- monetary items,
which are measured in terms of historical cost denominated in a
foreign currency, are reported using the exchange rate at the date of
the transaction.
Exchange differences
All exchange differences are accounted in the Statement of Profit
and Loss.
3.11 Retirement and other employee benefits
(a) Gratuity
The company has not created any Gratuity Fund to which payment
for present liability of future payment of gratuity can be made.
However, provision for gratuity is made in the books based on the
actuarial valuation report provided by an approved valuer. The
actuarial liability as determined by an appointed actuary using the
projected unit credit method are recognised as a liability. Gains and
losses through remeasurements of the net defined benefit liability/
assets are recognised immediately in the Balance Sheet with a
corresponding debit or credit to retained earnings through OCI in the
period in which they occur. The effect of any planned amendments
are recognised in Statement of Profit and Loss. Remeasurements
are not reclassified to profit or loss in subsequent periods.
(b) Provident fund
Provident Fund Contributions are made to Recognized Provident
Fund.
3.12 Leases
Measurement of Lease Liability
At the time of initial recognition, the Company measures lease
liability as present value of all lease payments discounted using the
Company's cost of borrowing. Subsequently, the lease liability is -
(i) increased by interest on lease liability;
(ii) reduced by lease payments made; and
(iii) remeasured to reflect any reassessment or lease modifications
specified in Ind AS 116 ‘Leases', or to reflect revised fixed lease
payments.
Measurement of Right-of-use assets
At the time of initial recognition, the Company measures ‘Right-
of-use assets' as present value of all lease payments discounted
using the Company's cost of borrowing w.r.t said lease contract.
Subsequently, ‘Right-of-use assets' is measured using cost model
i.e. at cost less any accumulated depreciation and any accumulated
impairment losses adjusted for any measurement of the lease
liability specified in Ind AS 116 ‘Leases'.
Depreciation on ‘Right-of-use assets' is provided on straight line
basis over the lease period.
The exception permitted in Ind AS 116 for low value assets and short
term leases has been adopted by Company.”
3.13 Investment properties
Investment properties are properties held to earn rentals or for capital
appreciation or both, and that is not occupied by the Company, is
classified as investment property
Initial Recognition and Measurement
Investment properties are initially measured at cost, including
transaction costs. The cost of a purchased investment property
comprises its purchase price and any directly attributable
expenditure, such as legal fees, property transfer taxes, and other
transaction costs.
Subsequent Measurement
After initial recognition, investment properties are measured at cost
less accumulated depreciation and any accumulated impairment
losses. The carrying amount includes the cost of replacing parts of
an existing investment property at the time the cost is incurred if
the recognition criteria are met and excludes the costs of day-to-day
servicing of an investment property.
Depreciation
Investment properties are depreciated using the straight-line method
over their estimated useful lives. The useful lives and residual values
are reviewed at each reporting date and adjusted, if appropriate.
Impairment
The carrying amounts of the investment properties are reviewed at
each balance sheet date to determine whether there is any indication
of impairment. If any such indication exists, the recoverable amount
of the asset is estimated. If the recoverable amount of the asset is
less than its carrying amount, an impairment loss is recognized in
the statement of profit and loss.
Revenue Recognition
Rental income from investment properties is recognized on a straight¬
line basis over the lease term, unless another systematic basis is
more representative of the time pattern in which use benefit derived
from the property is diminished. Contingent rents are recognized as
revenue in the period in which they are earned.
Transfers
Transfers to or from investment properties are made when there is
a change in use. For a transfer from investment property to owner-
occupied property, the deemed cost for subsequent accounting
is the carrying amount at the date of change in use. If an owner-
occupied property becomes an investment property, the Company
accounts for such property in accordance with the policy stated
under property, plant, and equipment up to the date of change in
use.
Disposal
An investment property is derecognized upon disposal or when
the investment property is permanently withdrawn from use and no
future economic benefits are expected from the disposal. Any gain
or loss arising on derecognition of the property is included in the
statement of profit and loss in the period in which the property is
derecognized.
3.14Fair value measurement
The Company measures its Investments and Deposits (Both Given
and Taken) at fair value on each Balance Sheet date.
Fair value is the price that would be received against sale of 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 in the accessible principal market or
the most advantageous accessible market as applicable.
The Company uses valuation techniques that are appropriate in the
circumstances and for which sufficient data is available to measure
fair value, maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.
Fair value measurement has been done for investments and
Deposits (Both Given and Taken). Listed investments have been
valued at the market price at which the respective investments were
quoting as on 31.03.2025. Unlisted investments have been valued
on the basis of the valuation certificates issued by an approved
valuer. Both deposits given and taken have been valued at the Net
present value applying the EIR method as explained in 3.1.
27. Contingent Liabilities:
Claims against the Company for the Financial Year 2024-25 is NIL ( PY 2023-2024 is NIL)
28. Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs. NIL (Previous Year Rs.
NIL)
29. Disclosure required by Micro, Small and Medium Enterprises (Development) Act, 2006. As per requirement of Section 22 of Micro, Small &
Medium Enterprises (Development) Act, 2006 following information is disclosed:
35. Financial risk management objective and policies
The Company's principal financial liabilities consist of loans and borrowings, as well as trade and other payables. These financial liabilities
primarily serve the purpose of financing the Company's operations. The Company's principal financial assets encompass investments, loans,
trade receivables, and other receivables, and cash and cash equivalents. These assets directly derive from the Company's operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's management oversees the management of these risks.
a) Market risk:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, foreign currency risk and other price risk such as equity price risk. Financial
instruments affected by market risk include loans and borrowings, deposits, other financial instruments.
1) Interest rate risk:
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of
changes in fair value of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk
is the risk that future cash flows of floating interest bearing investments will vary because of fluctuations in interest rates.
The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's short-term loan from
banks. Redeemable preference shares carries fixed coupon rate and hence is not considered for calculation of interest rate
sensitivity of the company.
2) Foreign currency risk:
The company enters into transactions relating to expenses in currency other than its functional currency. The company makes
advance payment for buying of foreign currency to be used for expenses incurred and is therefore not exposed to foreign currency
risk. As there are no outstanding assets or liabilities denominated in foreign currency at any point of time, there is no need to hedge
the currency risk. Thus, exchange rate exposures are not hedged considering the insignificant impact and period involved on such
exposure.
The Company does not have any foreign currency risk. Hence no sensitivity analysis is required.
3) 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, and arises principally from the Company's receivables from customers, deposits and loans given, investments and
balances at bank.
The Company measures the expected credit loss of on loans given to customers/borrowers based on historical trend, industry
practices and the business environment in which the entity operates. Expected Credit Loss (ECL) on loans is calculated based on
past trends based on the historical data
b) Liquidity Risk:
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The Company's principal source of liquidity are
cash and cash equivalents and the cash flow i.e. generated from operations. The Company consistently generated strong cash flows from
operations which together with the available cash and cash equivalents and investments provides adequate liquidity in short terms as well
in the long term.
Fair Value Hierarchy:
a) Investments included in Level 1 of fair value hierarchy are based on prices quoted in stock exchange and/ or NAV declared
by the funds.
b) Investments included in Level 2 of fair value hierarchy have been valued based on inputs from banks and other recognized
institutions such as FIMMDA/ FEDAI
c) Investments included in Level 3 of fair value hierarchy have been valued using acceptable valuation techniques such as Net
Asset
Value and/ or Discounted Cash Flow Method.
Note : All financial instruments for which fair value is recognized or disclosed are categorized within the Fair Value Hierarchy
described as above, based on the lowest level input that is significant to the fair value measurement as a whole.
36. Employee Benefits plans
Defined Benefit plans
A. Gratuity
The Gratuity plan is governed by the payment of Gratuity Act, 1972. The Gratuity Act is not applicable to the company, however the company
provides gratuity benefits to the whole time director of the company. The company has not created any fund for the payment of the gratuity
liability but has created a provision for gratuity liability based on Actuary Valuer report.
Movement in defined benefits obligations
B. Defined Contribution Scheme
The Employee's Provident Funds Scheme, 1952 is not applicable to the company. However, the company extends provident fund benefits to
its whole time director. The employer contribution to the Provident Fund together with the employee deduction is deposited in the Recognized
Provident Fund and is charged as an expense as and when accrued and incurred.
Other than the above, the company does not operate any superannuation, pension, ESOP or any other defined benefit or defined contribution
scheme for the benefit of its employees.
37. The management has identified the Company's operations with a single business segment of non- banking financial operations in India. All the
assets of the Company are located in India.
38. Additional regulatory information required by Schedule III of the Act:
a) Title deeds of immovable properties not held in name of the Company.
The title deeds of all the immovable (other than properties where the Company is the lessee and the lease agreements are duly executed
in favour of the lessee), as disclosed in notes to the financial statements, are held in the name of the Company.
b) Valuation of PP&E and Intangible Assets :
The Company has not revalued its property, plant and equipment or intangible or both during the current or previous year.
c) Loans or Advances in the nature of Loans granted to Promoters, Directors, Key Managerial Personnel and Related Parties.
e) 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.
f) Borrowing secured against current assets :
No borrowing has been secured against current assets.
g) Wilful defaulter :
The Company has not been declared a wilful defaulter by any bank, financial institution, government, or government authority.
h) Relationship with struck off Companies
There is no relationship or transaction with any struck off companies under Section 248 of the Companies Act, 2013, or Section 560 of the
Companies Act, 1956.
i) Registration of charges or satisfaction with Registrar of Companies :
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
j) Compliance with number of layers of Companies :
The Company has compiled with the number of layers prescribed under the Act.
Notes :
1. Earning for debt service = Net profit after taxes Non-Cash operating expenses like depreciation and other amortisations Interest
other.
2. Working capital Current assets minus Current liabilities.
3. Capital employed = Tangible net worth Total debt Deferred tax liability
l) Compliance with approved schemes (s) arrangements :
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
m) Utilisation of borrowed funds and share premium:
a) 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;
b) 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
n) Undisclosed income:
There has been no undisclosed income surrendered or disclosed during the current or previous year in the tax assessments under the
Income Tax Act.
o) Details of crypto currency or virtual currency:
The Company has not engaged in any trading or investment activities related to crypto currency during the current or previous year.
39. Previous year figures have been regrouped or reclassified wherever necessary in order to make them comparable and shown in brackets.
As per our report of even date attached For and on behalf of the Board of Directors
For Batliboi & Purohit KJMC FINANCIAL SERVICES LIMITED
Chartered Accountants
Registration No: 101048W
Rajnesh Jain Girish Jain
Whole time Director Chairman
DIN:00151988 DIN:00151673
Raman Hangekar
Partner Mrs.Khushbu Bohra
Membership No. 030615 Company Secretary
Place : Mumbai Place : Mumbai
Date : 28th May 2025 Date : 28th May 2025
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