k) Provision, Contingent Liabilities and Contingent Assets
A provision is recognized 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. Provisions are determined by discounting the expected future cash flows (representing the best
estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre- tax rate
that reflects current market assessments of the time value of money and the risks specific to the liability. Expected
future operating losses are not provided for.
Contingencies
Provision in respect of loss contingencies relating to claims, litigations, assessments, fines and penalties are
recognized when it is probable that a liability has been incurred and the amount can be estimated reliably.
Contingent Liabilities and Contingent Assets
A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may,
but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated
reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of
resources is remote.
Contingent assets are not recognised in financial statements since this may result in the recognition of income that
may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a
contingent asset and is recognised.
l) Earnings per share
Basic Earnings Per Share ('EPS') is computed by dividing the net profit or loss for the year attributable to the equity
shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per
share is computed by dividing the net profit by the weighted average number of equity shares considered for
deriving basic earnings per share and also the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted
as of the beginning of the year, unless issued at a later date. In computing diluted earnings per share, only potential
equity shares that are dilutive and that either reduce earnings per share or increase loss per share are included.
The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented
for the share splits.
m) Statement of Cash Flows
Cash flows are reported using the indirect method, whereby net profit/ (loss) before tax is adjusted for the effects
of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments and
item of income or expenses associated with investing or financing cash flows. The cash flows from regular
revenue generating (operating activities), investing and financing activities of the Company are segregated.
n) Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and in hand and other short-term, highly liquid investments with
original maturities of three months or less that are readily convertible(including interest thereon) to known amounts
of cash and which are subject to an insignificant risk of changes in value.
o) Events after Reporting Date
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.
p) Recent Pornouncements
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March, 2025
MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases,relating to sale and
leaseback transactions, applicable w.e.f. April 1,2024 which is not applicable to the Company.
(b) Terms/Rights attached to equity shares
The Company has only one class of Equity Shares having a par value of Rs 10. Each holder of Equity Shares is entitled to
one vote per share. There are no restrictions attached to any Equity Shares. The Company declares and pays dividends, if
any, in Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the share
holders in the ensuing Annual General Meeting. 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 respective shareholders.
(c) Details of Bonus Shares
The Company issued 533750 Equity Shares as Bonus Shares in the ratio of 5:1 during the year 1989-90 and 960750 Equity
Shares as Bonus Shares in the ratio of 10:3 during the year 1992-93.
22 2272 12.5% Fully Convertible Debentures of Rs.125 each allotted on 25th January, 1993 have not been converted into
fully paid equity shares since allotment money has not been received. Additions to subscribed and paid up share capital
will be made as and when allotment money is received.
23 Accounts relating to allotment money in arrears of Fully Convertible Debentures are not reconciled.
24 The Company has not recognized Deferred Tax Asset in respect of losses under the Income Tax Act, 961, considering
prudence in terms of Accounting Standard 22 ‘Accounting for Taxes on Income‘ issued by the Institute of Chartered
Accountants of India.
25 Employee Benefit
The Company has a defined benefit gratuity plan. The gratuity plan is governed by The Payment of Gratuity Act, 1972.
Under the Act, employee who has completed five years of service is entitled to specific benefit. The scheme is funded with
an insurance company in the form of qualifying insurance policy.
30 Financial Risks Management
In the course of business, amongst others, the Company is exposed to several financial risks such as Credit Risk, Liquidity Risk, Interest Rate Risk, Exchange Risk
and Commodity Price Risk. These risks may be caused by the internal and external factors resulting into impairment of the assets of the Company causing adverse
influence on the achievement of Company’s strategies, operational and financial objectives, earning capacity and financial position.
The Company has formulated an appropriate policy and established a risk management framework which encompass the following process.
- identify the major financial risks which may cause financial losses to the company
- assess the probability of occurrence and severity of financial losses
- mitigate and control them by formulation of appropriate policies, strategies, structures, systems and procedures
- Monitor and review periodically the adherence, adequacy and ei cacy of the financial risk management system.
The Company enterprise risk management system is monitored and reviewed at all levels of management, Audit Committee and the Board of Directors from time to
time.
Credit Risk
Credit Risk refers to the risks that arise on default by the counterparty on its contractual obligation resulting into financial loss to the company. The Company may
carry this Risk on liquid assets and some of the non current financial assets.
The credit risk on cash & cash equivalent, investment in fixed deposits, liquid funds and deposits are insignificant as counterparties are banks or mutual funds with
high credit ratings assigned by the rating agencies of international repute.
Liquidity Risk
Liquidity Risk arises when the Company is unable to meet its short term financial obligations as and when they fall due.
The Company maintains adequate liquidity in the system so as to meet its all financial liabilities timely.
Interest Rate Risk
Generally market linked financial instruments are subject to interest rate risk. The Company does not have any market linked financial instruments both on the asset
side as well liability side. Hence there is no interest rate risk linked to market rates.
However the interest rate in respect of borrowings by the Company from others are at a fixed rate. Any fluctuation in the same either on higher side or lower side will
result into financial loss or gain to the company.
31 Capital management
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity rese^es attributable to the equity holders. The
primary objective of the Company's capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To
maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders and issue new shares.
32 Other Statutory Information:
i. The Company do not have any Benami Property and neither any proceedings have been initiated or is pending against the Company for holding any Benami
Property.
ii The Company has not borrowed any fund from banks or financial institutions and as such is not required to file quarterly returns or statements of current assets
with banks or financial institutions.
iii The Company has not been declared a willful defaulter by any bank or financial institution or any other lender during the current period.
iv. The Company do not have any transactions with companies struck off.
v The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. However certain charges are being
reflected on the website of MCA against the name of the Company for which Company has taken necessary steps for removal of the same.
vi 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 (whether recorded in writing or otherwise) that the Intermediary shall 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 provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
vii 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 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
viii The loan has been utilised for the purpose for which it was obtained and no short term funds have been used for long term purpose.
ix The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
x The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
xi The Company does not have any such 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 su^ey or any other relevant provisions of the Income Tax Act, 1961.
xii The Company has complied with the number of layers prescribed under the Companies Act, 2013.
xiii The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
The accompanying notes form an integral part of the Financial Statements
As per our report of even date
For RAJAN GOEL & ASSOCIATES For and on behalf of the Board of IFire ctors n behalf of the Board of Directors
Chartered Accountants Aravali Securities & Finance Limited
(Firm Registration No. 004624N)
RANJAN KUMAR PODDAR (DIN 0020949)
Chairman & Managing Director
RUCHI SRIVASTAVA DEVASHISH PODDAR (DIN 00457349)
RAJAN KUMAR GOEL Company Secretary SURESH KUMAR LAKHOTIA (DIN 00450723)
Proprietor RAKESH BHARTIA (DIN 00877865)
Membership No.083829 DURGA PRASAD (DIN 00877865)
VED PRAKASH ARYA (DIN 00989393)
SUSHIL KUMAR NARESH KUMAR MAGOO (DIN 00914743)
Place : Gurgaon Chief Financial Officer TARA CHAND SAGAR (DIN 11038633)
Dated: 23rd May 2025 SUBHASH CHAND (DIN 11038622)
Directors
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