h) Provisions and Contingent Liability
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence
in the financial statements.
i) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders
(after deducting preference dividends and attributable taxes) by the weighted average number of equity shares
outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for
events of bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all
dilutive potential equity shares.
j) Investments
Investments that are readily realisable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of
shares or other securities, the acquisition cost is the fair value of the securities issued.
Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term
investments are carried at fair value through profit and loss
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or
credited to the statement of profit and loss.
k) Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year. The Company based its assumptions and estimates on parameters available when the financial statements
were prepared. Existing circumstances and assumptions about future developments, however, may change due to
market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.
l) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity . Financial assets other than equity instruments are classified into categories: financial
assets at fair value through profit or loss or at amortized cost. Financial assets that are equity instruments are classified
as fair value through profit or loss or fair value through other comprehensive income. Financial liabilities are classified
into financial liabilities at fair value through profit or loss & amortized cost.
Financial instruments are recognized on the balance sheet date when the Company becomes a party to the contractual
provisions of the instrument. Initially, a financial instrument is recognized at its fair value. Transaction costs directly
attributable to the acquisition or issue of financial instruments are recognized in determining the carrying amount, if it is
not classified as at fair value through profit or loss. Subsequently, financial instruments are measured according to the
category in which they are classified.
Financial assets at amortized cost: Financial assets having contractual terms that give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal outstanding and that are held within a business
model whose objective is to hold such assets in order to collect such contractual cash flows are classified in this category.
Subsequently, these are measured at amortized cost using the effective interest method less any impairment losses.
For B. D. Jokhakar & Co. For and on behalf of the board of Director of
Chartered Accountants Lerthai Finance Limited
Firm Registration No: 104345W
Raman Haren Jokhakar Mr. Shao Xing Max Yang Mr. Jayant Goel
Partner Chairman and Director Executive Director
Membership No: 103241 DIN 08114973 DIN 01925642
Place: Mumbai Place: Los Angeles Place: Delhi
Date: Date: Date:
Ms. Sneha Khandelwal
Company Secretary
M. No : A55597
Place: Delhi
Date:
Notes:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date,
Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the aseets or liability, either directly or indirectly,
Level 3 inputs are unobservable inputs for assets or liability.
a. There have been no transfers between the levels during the period.
b. The carrying amount of trade payables, employee related payment, loans (financial assets), trade receivable, cash and cash equivalents, security deposit, interest accrued and other financial assets and
liabilities are considered to be same as fair values, due to their short-term nature.
c. For finanacial assets & liabilities that are measured at fair value, the carrying amounts are equal to fair values.
26 Financial risk management objectives and policies
The Company's principal financial liabilities comprises trade and other payables. The Company's principal financial assets
include investments, loans and advances given, cash and cash equivalents and security deposits that derive directly from its
operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the
management of these risks. The Company's financial risk management is an integral part of how to plan and execute its business
strategies. The Company's financial risk management policy is set by the Board.
The Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are
identified, measured and managed in accordance with the Company's policies and risk objectives.
a. Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a
financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency
exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable
to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and
loans and borrowings.
The Company's exposure to market risk arises from investments held by the Company and classified in the balance sheet at fair
value through profit and loss. The exposure of the Company is limited to the fair value of the preference shares held by it.
b. Credit risk
Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding
accounts, loans and advances receivable. The maximum exposure to credit risk is equal to the carrying value of the financial
assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the
credit quality of the counterparties, taking into account their financial position, past trend, industry practices and business
environment in which company operates.
Financial Instrument and Cash Deposit
Credit risk from balances with banks and financial institutions is managed accordance with the Company's board approved SOP.
Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each
counterparty. Counterparty credit limits are reviewed by the Company's Board of Directors on an annual basis. The limits are set
to minimise the concentration of risks and therefore mitigate financial loss through a counterparty's potential failure to make
payments. The Company's maximum exposure to credit risk for the components of the statement of financial position at 31
March 2025 and 2024 is the carrying amounts.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.
Company's treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management
monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flow.
The table below summarises the maturity profile of the Group's financial liabilities based on contractual undiscounted payments.
27 Capital management
For the purpose of the Company's capital management, capital includes issued equity capital, and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company's capital management is to manages its
capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders.
The capital structure of the Company is based on management's judgement of the appropriate balance of key elements in order
to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital
structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or
adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to
shareholders or issue new shares.
The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor,
creditors and market confidence and to sustain future development and growth of its business. The Company will take
appropriate steps in order to maintain, or if necessary adjust, its capital structure.
28 Segment Reporting
The Chief Operating Decision maker reviews the operations of the company as a Investment activity, which is considered to be
the only reportable segment by the management. Hence there are no additional disclosures to be provided under IND AS 108
'Operating Segments'. Further, the Company's operations are in India only.
29 Disclosure required under Section 186(4) of the Companies Act 2013
Loans, advances and guarantees given and securities was not provided to related parties during the financial year
The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMPs and the related parties (As per Companies Act,
() 2013), which are repayable on demand or without specifying any terms or period of repayments.
No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act,
(ii) 1988 (45 of 1988) and the rules made thereunder.
(iii) The Company do not have sanctioned facilities from banks on the basis of security of current assets.
There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 or Section 560 of the Companies
(iv) Act, 1956 during the year ended 31st March 2025.
(v) No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013.
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 that the Intermediary shall:
(vi) (a) 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
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiary
The Company have 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:
(vii) (a) 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
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
(viii) The Company has not operated in any crypto currency or Virtual Currency transactions
During the year the Company has not disclosed or surrendered, any income other than the income recognised in the books of accounts in the tax
( ) assessments under Income Tax Act, 1961.
New Ind AS standards/amendments issued : The Ministry of Corporate Affairs (“MCA") notifies new standards or amendment to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified Ind AS - 117
Insurance contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024
(x) and the MCA has amended Ind AS 21, "The Effects of Changes in Foreign Exchange Rates," effective for annual reporting periods beginning on or after April
1, 2025. The Company has reviewed the new pronouncements based on its evaluation and has determined that it does not have any significant impact in
its financial statements.
For B. D. Jokhakar & Co. For and on behalf of the board of Director of
Chartered Accountants Lerthai Finance Limited
Firm Registration No: 104345W
RamanHarenJokhakar Mr.ShaoXingMaxYang Mr.JayantGoel
Partner Chairman and Director Executive Director
Membership No: 103241 DIN08114973 DIN01925642
Place: Mumbai Place: Los Angeles Place: Delhi
Date:15/05/2025 Date:15/05/2025 Date:15/05/2025
Ms. Sneha Khandelwal
Company Secretary
M.No: A55597
Place: Delhi
Date:15/05/2025
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