a) Terms / Rights attached to Equity Shares
The company has only one class of shares i.e. equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Nature and purpose of Reserves:
a. Capital Reserve: The Reserve is created based on statutory requirement under the Companies Act, 2013. This is not available for distribution of dividend but can be utilized for issuing bonus shares.
b. Securities Premium: Securities premium is used to record premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.
c. NBFC Reserves: Every year the Company transfers a of sum of not less than twenty per cent of net profit of that year as disclosed in the statement of profit and loss to its Statutory Reserve pursuant to Section 45-IC of the RBI Act, 1934.
d. Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to statutory reserve, debenture redemption reserve, general reserve, dividends distributions paid to shareholders and transfer from debenture redemption reserve.
e. FVOCI equity instrument: The fair value changes of the long term investments in securities have been recognised in reserves under FVOCI equity instruments as at the date of transition and subsequently in the other comprehensive income for the year.
Note 17: ADDITIONAL NOTES ON ACCOUNTS :
1) Note 1 to 17 referred herein forms an integral part of these Standalone Financial Statements.
2) The Company is engaged in the finance business which constitutes a single business segment, accordingly, disclosure requirement of Ind AS 108 "Operating Segments" is not required to be given.
3) Contingent Liability and commitements :
a) Contingent Liabilities to the extent not provided for:
a) Disputed demand of Income-tax pending appeals amounting to ^ 608.87 /- (PY ^ 608.87/-) against which an amount of ^ NIL/- (PY ^ NIL) paid under protest but not provided for.
b) Disputed demand ofTDS amounting to ^ 1.39 (PY ^ 1.39/-) against which an amount of ^ Nil (PY ^ Nil) is outstanding and not provided for.
b Investments Made:
The investments are classified under respective heads for purposes as mentioned in their object clause. Refer Note 4 of the Financial Statements.
c Guarantee Given or Security Provided:
During the year there is no such transaction.
c Provision For Taxation:
The Company has migrated to the new regime of Income Tax Act, 1961 u/s 115BAA. Provision for taxation for the year has been made after considering allowance, claims and relief available to the Company, if any.
d There were no such transactions that were not recorded in the books of accounts that have 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).
11) Capital Management:
The Company maintains an actively managed capital base to cover risks inherent in the business which includes issued equity capital and all other equity reserves attributable to equity holders of the Company. RBI requires NBFC's to maintain a minimum capital to risk weighted assets ratio ("CRAR") consisting of Tier I and Tier II capital of 15% of our aggregate risk weighted assets. Since, the Company (NBFC) is a "NBFC-CIC-ND-NSI", hence it is not required to compute the financial ratios. The Company has complied with the notification RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 "Implementation of Indian Accounting Standards.
12) Disclosure of CSR Activities as per Sec. 135 :
Pursuant to the Provisions of Section 135 of the Companies Act 2013 read with companies (Corporate Social Responsibility Policy) Rules 2014 are not applicable on Company.
13) Financial Instruments by Category and fair value hierarchy:
Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments, other than those with carrying amounts that are reasonable approximations of fair values.
The fair values of the financial assets and financial liabilities included in the level 2 and level 3 categories have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the Ind AS. An explanation for each level is given below. Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
Notes:
1 There have been no transfer between Level 1, Level 2 and Level 3 during the period March 31, 2025 and March 31, 2024.
2 The management assessed that cash and bank balances, borrowings (cash credits, commercial papers, foreign currency loans, working capital loans) and other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
Note 17: ADDITIONAL NOTES ON ACCOUNTS :14) Financial risk management objectives and policies to the extent applicable:
The company is a core investment company and having its major exposure to the group companies and therefore the company does not envisage any market risk, currency risk, interest rate risk, price risk, liquidity risk and credit risk. The Company's senior management in consultation with audit committee has the responsibility for establishing and governing the Company's overall risk management framework, wherever applicable.
15) Disclosure Pursuant to regulation 54(F) of the SEBI (Listing Obligations & Disclosure Requirements) Regulation 2013.
a Loans and Advances in the nature of Loans to Subsidiary:
There were no such transaction during the year.
c i) None of the parties to whom loans were given have made investment in the shares of the Company.
ii) The above Advances fall under the category of loans, which are repayable on demand and interest has been charged on it.
16) Pursuant to Ind AS 112 - 'Disclosure of Interests in Other Entities' the interest of the Company in various Associates are as follows:
a The Company is holding more than 20% Equity Shares in Agarwal Coal Corporation Private Limited 32.63% ( PY 32.63%) and Agarwal Fuel Corporation Private Limited 43.55% (PY 43.31%) which are therefore Associate companies within the meaning of section 2(6) of the Companies Act, 2013 and as per applicable IND AS the consolidated financial statements shall be separately prepared.
b The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
17) Consolidation of Accounts:
The Company is a subsidiary within the meaning of section 2(87) of the Companies Act, 2013 of Archana Coal Private Limited which is holding 57.22% (PY 57.22%) equity shares of the company.
18) In accordance with IND AS - 109 the long-term investments held by the company are to be carried at Cost or Fair Value. All the investments of the Company have been considered by the management to be of long-term nature.
19) The balances of Borrowings and Loans & Advances are subject to respective consent, confirmation, reconciliation and consequential adjustments, if any.
20) Subsequent events
There have been no events after the reporting date that require adjustment/ disclosure in these financial statements.
21) Details of Benami Property held:
During the year, no proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
22) Indications of Impairment
In the opinion of management, there are no indications, internal or external which could have the effect of impairing the value of assets to any material extent as at the Balance sheet date requiring recognition in terms of Ind AS 36.
23) Registration of charges or satisfaction with Registrar of Companies (ROC):
During the year, creation, modification or satisfaction of charge which were to be registered with ROC (if any) have been done within the statutory period.
24) Relationship with Struck off Companies:
The Company has no Investment in securities, Receivables, Payables, Share-holding or Other outstanding balances with such companies.
25) Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023:
The Company has surrendered its license for NBFC-ND as per terms of sub-section (6) of the Section 45-IA of the RBI Act 1934, based on order received from Bhopal Regional Office Of RBI bearing reference number PV(Bhopal)/S728/00.10.149/2021-22, dated 11.02.2022. Pursuant to the stated order, it holds a status of an Unregistered Core Investment Company and is still governed by NBFC Regulations and RBI Act, 1934. It has an asset size of less than 1 1000 crores and hence is classified in BASE LAYER of Non-Banking Financial Company - Scale Based Regulation (Directions), 2023.
26) Net Owned Fund Requirement:
In exercise of the powers conferred under clause (b) of sub-section (1) of section 45IA of the RBI Act,1934 and all the powers enabling it in that behalf, the Reserve Bank, specifies ^ 2 crores as the Net Owned Fund (NOF). The Company has a NOF of ^ 2.01 crores as at 31.03.2025.
27) According to Ind AS - 7 the desired Cash flow statement is enclosed herewith.
28) The Company has no borrowings from banks or financial institutions on the basis of security of current assets with respect to which, hence the perodical returns or statements of current assets required to be filed by the Company with banks or financial institutions is not applicable.
29) The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2025 and March 31, 2024.
30) The company has not received any funds from any person/entities, for the purpose of directly or indirectly lending/investing/providing guarantee/security to a another person/entity, by or on behalf of the person/ entity from whom such amount is received.
31) The company has not advanced/loaned/invested funds to any person/entity for the purpose of directly or indirectly lending/investing/providing guarantee/security to a third person/entity, by or on behalf of the company.
32) The Companies (Significant Beneficial Owners) Amendment Rules, 2019 lays down the rules and compliances required to be adhered by the reporting company in India with respect of Significant Beneficial Owners ("SBO") . There is no Significant Beneficial Owner in the Company.
33) Previous year figures have been regrouped or rearranged where ever necessary.
34) The figures have been rounded off to the nearest multiple of a rupee in thousands.
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