2.19 Provisions, contingent liabilities and contingent assets:
Provisions are recognised only when:
i. an Company entity has a present obligation (legal or constructive) as a result of a past event; and
ii. it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; and
iii. a reliable estimate can be made of the amount of the obligation
Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time
value of money is material, the carrying amount of the provision is the present value of those cash flows.
Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is
virtually certain that the reimbursement will be received.
Contingent liability is disclosed in case of:
i. a present obligation arising from past events, when it is not probable that an outflow of resources will be
required to settle the obligation; and
ii. a present obligation arising from past events, when no reliable estimate is possible.
Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities
and contingent assets are reviewed at each Balance Sheet date.
Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected
to be received under such contract, the present obligation under the contract is recognised and measured as a
provision.
2.20 Statement of cash flows:
Statement of cash flows is prepared segregating the cash flows into operating, investing and financing activities.
Cash flow from operating activities is reported using indirect method adjusting the net profit for the effects of:
i. changes during the period in operating receivables and payables transactions of a non-cash nature;
ii. non-cash items such as depreciation, provisions, deferred taxes, realized gains and losses; and
iii. all other items for which the cash effects are investing or financing cash flows.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are
not available for general use as on the date of Balance Sheet.
2.21 Earnings per share:
The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is
calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding during the year. Diluted earnings per share is determined by
adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares
outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.
2.22 Key source of estimation:
The preparation of financial statements in conformity with Ind AS requires that the management of the Company
makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the
reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the
financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates include useful lives of property, plant and equipment & intangible assets, expected credit loss
on loan books, future obligations in respect of retirement benefit plans, fair value measurement etc. Difference, if
any, between the actual results and estimates is recognised in the period in which the results are known.
2.23 Changes in Accounting Standard and recent accounting pronouncements (New Accounting Standards issued
but not effective):
On March 30, 2021, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards)
(Amendments) Rules, 2019, notifying Ind AS 116 on Leases. Ind AS 116 would replace the existing leases standard Ind
AS 17. The standard sets out the principles for the recognition, measurement, presentation and disclosures for both
parties to a contract, i.e. the lessee and the lessor. Ind AS 116 introduces a single lease accounting model and requires
a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying
asset is of low value. Currently for operating lease, rentals are charged to the statement of profit and loss. The
Company is currently evaluating the implication of Ind AS 116 on the financial statements.
The Companies (Indian Accounting Standards) Amendment Rules, 2019 notified amendments to the following
accounting standards. The amendments would be effective from April 1, 2019
a) Ind AS 12, Income taxes — Appendix C on uncertainty over income tax treatments
b) Ind AS 19— Employee benefits
c) Ind AS 23 - Borrowing costs
d) Ind AS 28— investment in associates and joint ventures
e) Ind AS 103 and Ind AS 111 — Business combinations and joint arrangements
f) Ind AS 109 — Financial instruments
The Company is in the process of evaluating the impact of such amendments.
2.24 Inventories
Stock-in-trade represents 'Shares / Securities' held by the Company with the intention to trade. The Company values
listed shares and securities at their fair value as on balance sheet date. Difference between opening and closing
inventory is recognised in statement of profit and loss. The Company follows FIFO method for inventory valuation.
2.25 Other Income Recognition
Interest on Loan is booked on a time proportion basis taking into account the amounts invested and the rate of
interest.
Dividend income on investments is accounted for when the right to receive the payment is established.
2.26 Purchases
Purchase is recognized on passing of ownership in share based on broker's purchase note.
2.27 Expenditure
Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.
2.28 Investments
Current investments are stated at the lower of cost and fair value. Long-term investments are stated at cost. A
provision for diminution is made to recognise a decline, other than temporary, in the value of long-term investments.
Investments are classified into current and long-term investments.
Investments that are readily realisable and are intended to be held for not more than one year from the date, on
which such investments are made, are classified as current investments. All other investments are classified as non¬
current investments.
2.29 Related Parties
Parties are considered to be related if at any time during the reporting period one party has the ability to control the
other party or exercise significant influence over the other party in making financial and/or operating decisions.
As required by AS-18 "Related Party Disclosure" only following related party relationships are covered:
i. Enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are
under common control with, the reporting enterprise (this includes holding Companies, subsidiaries and fellow
subsidiaries);
ii. Associates and joint ventures of the reporting enterprise and the investing party or venture in respect of which
the reporting enterprise is an associate or a joint venture;
iii. Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives
them control or significant influence over the enterprise, and relatives of any such individual;
iv. Key management personnel (KMP) and relatives of such personnel; and
v. Enterprises over which any person described in (iii) or (iv) is able to exercise significant influence.
2.30 Fair Value Hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
2.31 Financial Risk Management Objectives and Policies:
The Company's activities are exposed to a variety of Financial Risks from its Operations. The key financial risks
include Market risk, Credit risk and Liquidity risk.
i. 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 mainly three types of risk, foreign currency risk, Interest rate
risk and other price risk such as Equity price risk and Commodity Price risk.
ii. Foreign Currency Risk:
There are no Foreign Currency transactions during the financial year.
iii. Foreign Currency Sensitivity:
There are no Foreign Currency transactions during the financial year.
iv. Credit Risk:
Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or
customer contract, leading to a financial loss. The company is exposed to credit risk from its operating
activities (primarily trade receivables).
v. Trade Receivables:
Customer credit risk is managed based on company's established policy, procedures and controls. The
company assesses the credit quality of the counterparties, taking into account their financial position, past
experience and other factors.
Credit risk is reduced by receiving pre-payments and export letter of credit to the extent possible. The
Company has a well-defined sales policy to minimize its risk of credit defaults. Outstanding customer
receivables are regularly monitored and assessed. The Company follows the simplified approach for
recognition of impairment loss and the same, if any, is provided as per its respective customer's credit risk as
on the reporting date.
vi. Liquidity Risk:
Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The company's
approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due.
2.32 Earnings/(loss) per share computation method
The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is
calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding during the year. Diluted earnings per share is determined by
adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares
outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.
(e) Terms and rights attached to Equity Shares:
The Company has only one class of Equity Shares having a Face Value of ? 10/- per share. Each holder of Equity Shares
is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. 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.
The Company has neither issued any shares for consideration other than cash or as bonus shares, nor any shares issued
had been bought back by the Company during the last five years.
Note 24 — Contingent Liabilities not provided for
1. The Company has outstanding demand appearing on the Income-tax portal on account of assessment proceedings
under section 147 or other matters for AY 2013-14 to AY 2015-16 (excluding interest thereon). The Company has
preferred an appeal against the said matter before the CIT(A) and the matter is pending disposal as on date. Further, the
company is also having pending penalty proceedings for all the aforesaid years, which are yet to be disposed. The
Management is of the opinion that they have a fair case of defense against the said matters and hence, these are
contingent liabilities not provided for:
2. The Company is also having outstanding demand on TRACES TDS portal of Rs 0.27 lakhs pertaining to prior years.
Note 25: Corporate Social Responsibility
The Company does not meet the criteria specified in sub section (1) of section 135 of the Companies Act, 2013, read with
Companies [Corporate Social Responsibility (CSR)] Rules, 2014. Therefore it is not required to incur any expenditure on
account of CSR activities during the year.
Note 26: Segment Reporting -
The company is primarily engaged in the single business of trading in shares and securities and there is no reportable
secondary segment i.e. geographical segment. Hence, the disclosure requirement of Accounting Standard-17
"Segment Reporting" as notified by Companies (Accounting Standards) Rules, 2006 (as amended) is not applicable.
Note 27: Estimates -
The estimates at 31 March 2025 and at 31 March 2024 are consistent with those made for the same dates in
accordance with Ind AS (after adjustments to reflect any differences in accounting policies).
Note 28: Income-tax & Deferred tax (Reconciliation of the Income Tax Expenses to the amount computed by applying
the Statutory Income Tax) -
Notes:
1. The related party relationships have been determined on the basis of the requirements of the Indian Accounting
Standard (Ind AS) -24 'Related Party Disclosures' and the same have been relied upon by the auditors.
2. The relationships as mentioned above pertain to those related parties with whom transactions have taken place
during the current year /previous year, except where control exists, in which case the relationships have been
mentioned irrespective of transactions with the related party.
Note 32:
There are no Micro and Small Scale Business Enterprises, to whom the Company owes dues, which are outstanding
for more than 45 days as at March 31, 2025. This information as required to be disclosed under Micro, Small and
Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on
the basis of information available with the Company.
Note 35: Financial Instruments - Risk Management
Risk Management framework
The Company's activities expose it to a variety of financial risks, including market risk, credit risk, liquidity risk
and currency risk. The Company's primary risk management focus is to minimize potential adverse effects on
revenue. The Company's risk management assessment and policies and processes are established to identify
and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such
risks and compliance with the same. Risk assessment and management policies and processes are reviewed
regularly to reflect changes in market conditions and the Company's activities. The Board of Directors and the
Audit Committee is responsible for overseeing the Company's risk assessment and management policies and
processes.
Price Risk
The company's exposure to equity shares / securities price risk arises from 'investments' / 'stock in trade' held
by the company and classified in the balance sheet either at fair value through OCI or at fair value through
profit and loss. The company's has exposure to derivative markets on account of obligations under futures &
options contracts. Given the extreme volatile nature of these instruments, the Company is exposed to market
volatility risk. The Company tries to arbitrage its positions to reduce said risk.
Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
The Company manages liquidity risk by maintaining sufficient cash and marketable securities. The cash flows,
funding requirements and liquidity of Company is regularly monitored by Management of the Company. The
objective is to optimise the efficiency and effectiveness of Company's capital resources.
Exposure to Liquidity Risk
The table below analyses the Company's financial liabilities into relevant maturity groupings based on their
contractual maturities for all financial liabilities
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, security deposits and investment securities.
Customer credit risk is managed by company as per its policy, procedures and control relating to customer
credit risk. Credit quality of a customer credit risk is assessed based on an extensive credit rating scoreboard
and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables
are regularly monitored and all possible steps taken to timely realise them.
The credit risk on Fixed Deposits with Banks, Bank Balances and Investments in Mutual Fund is limited
because the counterparties are Banks, Exchanges and Mutual Fund houses who are structured market players.
Note 36: Capital Market Risk
The Company's objective when managing capital is to safeguard the Company's ability to continue as a going
concern in order to provide returns for shareholders and benefits for stakeholders. The Company also
proposes to maintain an optimal capital structure to reduce the cost of capital. Hence, the Company may
adjust any dividend payments, return capital to shareholders or issue new shares. Total capital is the equity as
shown in the statement of financial position. Currently, the Company primarily monitors its capital structure
on the basis of gearing ratio. Management is continuously evolving strategies to optimize the returns and
reduce the risks. It includes plans to optimize the financial leverage of the Company.
Note 37: Other Notes to Accounts
i. In the opinion of the management, current assets, loans and advances and other receivables are
approximately of the value stated, if realized in the ordinary course of business. Several of these asset items
are due for more than 1 year; however, the Management is confident of receiving the dues. The Auditors have
solely relied on management's representation in this regard
ii. Certain balances of trade receivables, trade payables, and loans and advances are subject to confirmation,
reconciliation, and consequential adjustments, if any. The management has obtained confirmations for some
of these balances and is in the process of obtaining the remainder.
iii. Weakness in the Internal control design commensurate with the growing size of its business, to mitigate the
risk, enhancement to internal controls is implemented by the management to address the deficiencies
identified in the Internal Control System.
Note 38: Events after the end of the reporting year
No subsequent event has been observed which may require an adjustment to the statement of financial position.
Note 39:
The balance sheet, statement of profit and loss, cash flow statement, statement of changes in equity, statement of
significant accounting policies and the other explanatory notes forms an integral part of the financial statements of
the Company for the year ended March 31, 2025.
Note 40:
Previous year's figure have been regrouped/rearranged wherever necessary, to correspond with the current year
classification / disclosures.
Note 41:
Any other disclosure as may be applicable under the statutory laws and regulations is either 'Nil' or 'Not applicable'
As per our Report of Even date For & on behalf of the Board
For S P M L & ASSOCIATES
Chartered Accountants
FRN- 13654qW S/d- S/d-
Alok Kr. Behera Swagata Dasgupta
S/d Managing Director Director
(DIN: 00272675) DIN : 08212560
CA GOVIND MANDHANIA
Partner
Membership No. 183098
UDIN: 25183098BMJEKS1823 S/d- S/d-
Minakshi Naruka Priyanka Bhauwala
Mumbai, Date: May 28, 2025 CFO Company Secretary
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