PROVISION FOR TAXATION: Provision for Taxation is computed as per total income
returnable under the Income Tax Act, 1961.
DEFERRED TAX: Deferred Tax Liability is provided pursuant to Indian Accounting
Standard [IND AS-12 “Income Taxes”]. Deferred Tax Asset and Deferred Tax Liability are
calculated by applying tax rates and tax laws that have been enacted or substantively
enacted by the Balance Sheet date. Deferred Tax Assets arising mainly on account of
brought forward losses and unabsorbed depreciation under tax laws, are recognized, only
if there is virtual certainty of its realization, supported by convincing evidence. Deferred
Tax Assets on account of other timing differences are recognized only to the extent there is
reasonable certainty of its realization.
OTHER ACCOUNTING POLICIES: These are consistent with the generally accepted
accounting policies.
3. PROPERTY, PLANTS AND EQUIPMENTS
Property, Plant and Equipment are stated at cost less accumulated depreciation and
accumulated losses, if any. Cost includes expenses directly attributable to bringing the
Asset to their location and conditions necessary for it to be capable of operating in the
manner intended by the management. Subsequent costs are included in the asset’s
carrying amount or recognized as separate asset, as appropriate, only when it is probable
that is future economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognized when replaced. All other repairs and
maintenance are charged to profit or loss during the reporting period in which they are
incurred. Internally manufactured property, plant and equipment are capitalized at
factory cost, including excise duty, wherever applicable.
Assets in the course of construction are capitalized in capital work in progress account.
At the point when an asset is capable of operating in the manner intended by the
management, the cost of erection/ construction is transferred to the appropriate category
of property, plant and equipment cost (net of income and including pre-operative cost /
expenses) associated with the commissioning of an asset are capitalized until the period of
commissioning has been completed and the asset is ready of its intended use. Property,
Plant and Equipment are eliminated from financial statement, either on disposal or when
retired from active use. Losses arising in the case of retirement of Property, plant and
equipment and gains or losses arising from disposal of property, plant and equipment are
recognized in Statement of Profit and Loss in the year of occurrence.
On transition to Ind AS, the Company has elected to continue with the carrying value of
all of its property, plant and equipment recognized as at 1st April, 2016 measured as per
the previous GAAP and use that carrying value as the deemed cost of the property, plant
and equipment.
Depreciation methods, estimated useful lives and residual value. Deprecation is
calculated using the Straight-Line Method (SLM) to allocate as per the rate provided in the
Schedule II to Companies Act, 2013 having regard to carrying amount of Property, Plant &
Equipment as on 01.04.2014, residual value (as prescribed) and remaining useful lives of
these assets.
Depreciation on Property, plant and equipment, purchased during current financial year,
is provided on SLM Method as per Schedule-II of Companies Act, 2013 having regard to
original cost, residual value (as prescribed) and prescribed useful lives of these assets.
Intangible Assets if any have been amortized on the basis of SLM Method over the useful
life.
The assets residual values, useful lives and methods of depreciation are reviewed at each
financial year end and adjusted prospectively, if appropriate. Gains and losses on
disposals are determined by comparing proceeds with carrying amount. These are
included in the statement of profit and loss within other gains / (losses).
Depreciation on impaired assets is provided on the basis of their residual useful life.
4 INVESTMENTS PROPERTY
Property that is held for long-term rentals yields or for capital appreciation or both, and
that is not occupied by the Company, is classified as investment property. Investment
property is measured initially at its cost, including related transaction costs and where
applicable borrowing costs. Subsequent expenditure is capitalized to the asset’s carrying
amount only when it is probable that future economic benefits associated with the
expenditure will flow to the Company and the cost of the item can be measured reliably.
All other repairs and maintenance costs are expensed when incurred. When part of an
investment property is replaced, the carrying amount of the replaced part is derecognized.
Investment properties are depreciated using the SLM Method over their estimated useful
lives. The useful live has been determined based on technical evaluation performed by the
management’s expert. The Residual Life, useful lives and depreciation method of
investment properties are reviewed, and adjusted on Prospective basis as appropriate, at
each financial year end. The effects of any revision are included in the Statement of Profit
and Loss when the changes arise.
However, on transition to Ind AS, the Company has no any Investment Property.
5. INTANGIBLE ASSETS: Intangible Assets have been amortized on the basis of SLM
Method over the useful life. Intangible Property, Plant & Equipment relating to computer
software has been taken under the block computer and related equipment during earlier
years and has not been classified under the head intangible Property, Plant & Equipment.
a) Intangible Assets are initially recognized at:
In case the assets are acquired separately then at cost.
In case the assets are acquired in a business combination then at fair value.
In case the assets are internally generated then at capitalized development cost subject to
satisfaction of criteria of recognition (identify ability, control and future economic benefit)
laid down from clause 11 to17 of IND AS 38.
Following initial recognition, intangible assets are carried at cost less any accumulated
amortization and accumulated impairment loss. Research costs are recognized as expense
in the period in which it is incurred.
b) Intangible assets with finite useful life are assessed for impairment whenever there is
an indication that the intangible assets may be impaired. Intangible assets with infinite
useful life including goodwill are tested for impairment annually.
c) Intangible assets with finite useful life are amortized over the useful economic life on a
SLM basis. In case of Patents and Trade Marks the useful life is taken to be 10 years and
in case of Software, the useful life is taken as 5 years.
6. IMPAIRMENT OF ASSETS.
Company comes in operation from the financial year 1992-93 and in the view of
management of the company, no impairment of assets is required.
IMPAIRMENT OF NON-FINANCIAL ASSETS
a) An asset is deemed impairable when recoverable value is less than it’s carrying cost and
the difference between the two represents provisioning exigency.
b) Recoverable value is the higher of the “Value in Use’ and fair value as reduced by cost of
disposal.
c) Test of impairment of PPE, investment in subsidiaries / associates / joint venture and
goodwill are undertaken under Cash Generating Unit (CGU) concept. For Intangible Assets
and Investment Properties it is undertaken in asset specific context.
d) Test of impairment of assets are generally undertaken based on indication of impairment,
if any, from external and internal sources of information outlined in para 12 of Ind AS-36.
Non-financial assets other than goodwill that suffered impairment are reviewed for
possible reversal of the impairment at the end of each reporting period.
9. The Company is registered with the Reserve Bank of India as a NBFC within the
provisions of the NBFC (Reserve Bank of India) Directions, 1998.
10. In the opinion of the management of the company the aggregate value of current
assets, loans & advances if realized in the ordinary course of the business shall not
be less than the amount at which these are stated in the Balance Sheet and the
provision for all known liabilities are adequate.
11. Deferred Tax
Deferred tax has been calculated in accordance with the provisions of Indian
Accounting Standard (IND AS- 12 “Income Tax”). The details are as under:
Deferred Tax Asset (Net) amounting to ? 0.01/- has been credited to Profit and Loss
Account for the year-ended 31-03-2026.
12. Segmental Reporting
Indian Accounting Standard -108 ‘Operating Segments’, the company has one
segment only therefore the segment reporting is not applicable to the company.
13. Micro, Small and Medium Enterprises
The Company has not received any information from its suppliers regarding their
status under the Micro, Small and Medium Enterprises Development Act 2006,
which came into effect from 2nd October, 2006 and hence disclosure, if any,
relating to amounts unpaid as on 31st March, 2026 together with interest paid or
payable as required under the Act, have not been given.
14. The category of the company is Non-Banking Financial Company-Base Level (NBFC-
BL), hence CRAR & concentration norms as prescribed by RBI are not applicable to
the company.
15. Net Owned Fund (NOF) of the company is ? 415.75/- which is as per the requirement in
the guidelines issued by RBI on 10th Nov, 2014. The company is under the takeover process
due to which company can't increase its share capital until the takeover process is complete.
Therefore, the company could not maintain the required minimum NOF of 5 Crores by 31.03.2026
as laid down in Master Direction of the Bank in respect of NBFC-ND. The company has already
communicated the said facts to the RBI and SEBI.
16. Leverage ratio of 7 is applicable to the company being a NBFC-BL (below asset size of ?
1000 crores) as per the guidelines issued by RBI. The company is in compliance with the
norms throughout the period under report and has not contravened this norm at any
time during the financial year 2025-26.
17. There is change in the management or constitution of the company during the financial
year 2025-26. After demise of Mr. Sanjeev Arora, Mr. Hardev Singh was appointed as
Whole Time Director of the company. During the year, Director Mr. Hardev Singh and
company secretary Ms. Varsha Jain has resigned the company.
The company is not rated by any approved credit rating agency till date. Being a NBFC-
18. BL credit rating is not applicable to the company.
19. Previous Years figures have been regrouped and/or rearranged wherever found
necessary to conform to this year’s classification.
20. The company has no subsidiaries.
21. The balances of sundry debtors, creditors and loans and advances are subject to
confirmation.
(i) The company do not hold any immovable property during the year.
(ii) Company has not revalued its property/intangible assets.
..... No loans or advances are given to any promotor, directors, KMP and related party which is repayable on
demand or without specifying any term or period of repayment.
(iv) Thre is no Capital Work-in-Progress. Disclosure regarding the CWIP is not applicable.
(v) Thre is no Intangible Assets under Developments. Disclosure regarding the same is not applicable.
(vi) No Benami Property is held by Company.
(vii) The company has no borrowing from bank or financial institution. There is no any submission regarding the
same is applicable.
(viii) Company is not declared by any lender as wilful defauters.
(ix) During the year company has not done any transaction with struckoff company/companies.
(x) During the year neither new charge was created nor satisfied.
(xi) Company has complied with provisions of layers of companies rule.
(xii) Ratios are disclosed in Note No. 25.
(xiii) Compliance with any approved scheme of Arrangements is not applicable.
( , ) Utilization of Borrowed funds and share Premium: Company has not given or availed loan or advance to any
intermediaries. No Dsclosure is required for the same.
(xv) Corporate Social Responsibility: Company is not covered under section 135 of Companies Act.
(xvi) Crypto currency or virtual currency disclosure: Company has neither traded nor invested in any Crypto
currency or virtual currency.
(xvii) There is no any trnsaction which required to be recorded in the books of account, which has been surrended
before Income Tax Authorities.
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