17.5. Rights of Shareholders, Dividend and
Repayment of Capital:
a. The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to vote per share.
b. The holders of equity shares are entitled to dividends, if any, proposed by the Board of Directors and
approved by Shareholders at the Annual General Meeting.
c. 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.
17.6 Capital Management
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other reserves attributable to the equity holders of the Company. The Company's objective for capital management is to maximize shareholder value and safeguard business continuity. The Company determines the capital requirement based on annual operating plans and other strategic plans. The funding requirements are met through equity and operating cash flows.
26.2 Valuation in level 1
Fair Value of Investments in Equity instruments are based on quoted prices.
As investment in other equity shares of private limited of Rs. 1.5 lakhs is not material, the carrying value of such shares is considered to be its fair value.
26.3 The Fair value of other financial assets and other financial Liabilities measured at amortised cost are considered to be the same as their carrying amount because they are of short term nature.
26.4 There are no transfer between level 1 and level 2 during the year.
27. Financial Risk Management
27.1 Financial Instruments Risk management objectives and Policies
The company's activities expose it to variety of financial risks : market risk, credit risk and liquidity risk. The company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company's activities. The Board of Directors oversee compliance with the Company's risk management policies and procedures, and reviews the risk management framework.
27.2 Market Risk
The market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises other price risk. The company does not have any foreign currency
transactions, hence it is not exposed to currency risk. The company does not expose to interest rate risk as it does not have any borrowings and in respect of loans given (other than loan given to employees) are repayable on demand and are not interest bearing. Further, loans given to employees are insignificant and at fixed rate of interest.
Other price risk
Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. The Company is exposed to price risk arising mainly from investments in equity instruments.
27.3 Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial assets.
The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due without incurring unacceptable losses or risking damage to the Company's reputation. The Company ensures that it has sufficient fund to meet expected operational expenses.
The Company measures risk by forecasting cash flows.
The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscount amount.
27.4 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 loans and investments. Credit risk is managed through continuously monitoring the creditworthiness of counterparty.
Credit risk arising from cash and cash equivalents with bank is limited as the counterparty are banks with high credit ratings.
Limitation of method used for sensitivity analysis :
The sensitivity is performed on the DBO at the respective valuation date by modifying one parameter whilst retaining other parameters constant. There are no changes from the previous period to the methods and assumptions underlying the sensitivity analyses.
29.13 Details of Asset- Liability Matching Strategy
The Company deploys its investment assets in a smoothed return cash accumulation plan with an insurance company. Investment returns of the plan are not greatly sensitive to the changes in interest rates. The liabilities' duration is not matched by the assets' duration.
31. Segment Reporting
The Company is primarily engaged in the business of Investments, Capital Market Activities and Financing. Accordingly there are no separate reportable segments. No client individually accounted for more than 10% of the revenues in the year ended March 31, 2025 and March 31,2024.
32. Leases
32.1 The Company has lease contracts for a period of 3 year for its office premises.
33.2 Relationship with struck off companies:
The Company does not have any transaction and balance outstanding with struck off companies.
33.3 Willful Defaulter
The company is not declared as willful defaulter by any bank or financial institution or other lender.
33.4 Utilisation of borrowed funds
The Company has not taken any borrowings from Banks / Financial Institutions during the period.
33.5 Registration of charges or satisfaction with Registrar of Companies (ROC)
As Company does not have any secured borrowings, registration of charges or satisfaction with ROC is not applicable.
33.6 Details of Benami Property held
The company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, hence no proceedings initiated or pending against the company under the said Act and Rules.
33.7 Utilisation of borrowed funds, share premium and other funds
The Company has not given any advance or loan or invested funds from borrowed funds or share premium or any other sources with the understanding that intermediary would directly or indirectly lend or invest in other person or equity identified in any manner whatsoever by or on behalf of the company as ultimate beneficiaries or provide any guarantee or security or the like to on behalf of ultimate beneficiaries.
The Company has not received any fund from any person or entity with the understanding that the Company would directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on behalf of the funding
party (ultimate beneficiary) or provided any guarantee or security or the like on behalf of the ultimate beneficiary.
33.8 Compliance with number of layers of companies
In respect of Investment in subsidiry, the company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
34. Additional Disclosures
34.1 Details of Crypto Currency or Virtual Currency
The company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
34.2 Undisclosed Income
There is no transaction, which has not been recorded in books of accounts, that has been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961.
35. Ratios Analysis
Non - Banking Financial Company - Non -Systemically Important Non - Deposit taking Company (Reserve Bank) Directions, 2016 (Master Direction) notified, vide number RBI/ DNBR/2016-17/44, on September 01, 2016 and updated on time to time is applicable to the Company. As per the Master Directions, ratios are mentioned in Division III to the Schedule III to the Companies Act, 2013 are not applicable to the Company hence the same have not been disclosed.
36. The Company is not holding and accepting deposits. Further, the total assets of the Company
being less than Rs. 500 Crores, the Prudential Norms on Credit and Investment Concentration and Capital Adequacy are not applicable to it. The Company has complied with all other norms on Income Recognition, Accounting Standards, Assets Classification, Provisioning for Bad and Doubtful Debts & Standard Assets and other related matters as prescribed under the NonBanking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015 as amended.
37. Disclosure requirement as per Schedule V of SEBI (Listing Obligations and Disclosure Requirments) Regluations, 2015
37.1 None of the Loanees named hereinabove has made any investment in the Equity Capital of the Company or its subsidiary.
38. Details Of Loan Given, Investment Made & Guarantee Given Covered U/S 186(4) Of The Companies Act. 2013
Loan given and Investments made are given under respective heads. The Company has not given any guarantee.
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