The Company recognizes provisions when a present
obligation (legal or constructive) as a result of a
past event exists and it is probable that an outflow
of resources embodying economic benefits will be
required to settle such obligation and the amount
of such obligation can be reliably estimated. If the
effect of 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 recognized as
a finance cost. A disclosure for a contingent liability is
made when there is a possible obligation or a present
obligation that may, but probably will not require an
outflow of resources embodying economic benefits or
the amount of such obligation cannot be measured
reliably. When there is a possible obligation or a
present obligation in respect of which likelihood of
outflow of resources embodying economic benefits is
remote, no provision or disclosure is made.
Short-term employee benefits
All employee benefits payable wholly within twelve
months of rendering the service are classified as short¬
term employee benefits and they are recognized in
the period in which the employee renders the related
service. The Company recognizes the undiscounted
amount of short-term employee benefits expected
to be paid in exchange for services rendered as
a liability (accrued expense) after deducting any
amount already paid.
Post-employment benefits
(i) Defined contribution plans
Defined contribution plans are employee state
insurance scheme and Government administered
pension fund scheme for all applicable employees.
Recognition and measurement of defined
contribution plans:
The Company recognises contribution payable to
a defined contribution plan as an expense in the
Statement of profit and loss when the employees
render services to the Company during the reporting
period. If the contributions payable for services
received from employees before the reporting date
exceeds the contributions already paid, the deficit
payable is recognized as a liability after deducting
the contribution already paid. If the contribution
already paid exceeds the contribution due for
services received before the reporting date, the
excess is recognized as an asset to the extent that
the prepayment will lead to, for example, a reduction
in future payments or a cash refund.
(ii) Defined benefits plans
Gratuity scheme
Gratuity is a post-employment benefit and is a
defined benefit plan. The cost of providing defined
benefits is determined using the Projected Unit Credit
method with actuarial valuations being carried out at
each reporting date. The defined benefit obligations
recognized in the Balance sheet represent the present
value of the defined benefit obligations as reduced by
the fair value of plan assets, if any. Any defined benefit
asset (negative defined benefit obligations resulting
from this calculation) is recognized representing the
present value of available refunds and reductions in
future contributions to the plan.
Recognition and measurement of defined benefit
plans
All expenses represented by current service cost,
past service cost, if any, and net interest on the
defined benefit liability / (asset) are recognized in the
Statement of profit and loss. Re-measurements of
the net defined benefit liability / (asset) comprising
actuarial gains and losses and the return on the plan
assets (excluding amounts included in net interest on
the net defined benefit liability/asset), are recognized
in Other Comprehensive Income. Such re¬
measurements are not reclassified to the Statement
of profit and loss in the subsequent periods.
The Company does not present the above liability/
(asset) as current and non-current in the Balance
sheet as per the principles of Division III of Schedule
III to the Act as per MCA's Notification dated 11th
October, 2018.
(10) Lease accounting
The Company, as a lessee, recognizes a Right-of-
Use (RoU) asset and a lease liability for its leasing
arrangements, if the contract conveys the right to
control the use of an identified asset.
The contract conveys the right to control the use
of an identified asset, if it involves the use of an
identified asset and the Company has substantially
all the economic benefits from use of the asset
and has right to direct the use of the identified
asset. The cost of the RoU asset shall comprise of
the amount of the initial measurement of the lease
liability adjusted for any lease payments made at
or before the commencement date plus any initial
direct costs incurred. The RoU asset is subsequently
measured at cost less any accumulated depreciation,
accumulated impairment losses, if any and adjusted
for any remeasurement of the lease liability. The RoU
asset is depreciated using the straight-line method
from the commencement date over the shorter of
lease term or useful life of RoU asset.
The Company measures the lease liability at the
present value of the lease payments that are not
paid at the commencement date of the lease. The
lease payments are discounted using the interest
rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined,
the Company uses incremental borrowing rate.
For short-term and low value leases, the Company
recognizes the lease payments as an operating
expense on a straight-line basis over the lease term.
(11) Borrowing Costs
Borrowing cost includes interest, amortization
of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences
arising from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest
cost. Borrowing costs, if any, directly attributable to
the acquisition, construction or production of an asset
that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalized,
if any. All other borrowing costs are expensed in the
period in which they occur.
(12) 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.
(13) Impairment of non-financial assets
The Company assesses, at each reporting date,
whether there is an indication that an asset may be
impaired. If any indication exists, or when annual
impairment testing for an asset is required, the
Company estimates the asset's recoverable amount.
An asset's recoverable amount is the higher of an
asset's or Cash-Generating Unit's (CGU) fair value
less costs of disposal and its value in use. Recoverable
amount is determined for an individual asset, unless
the asset does not generate cash inflows that are
largely independent of those from other assets or
groups of assets. When the carrying amount of an
asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to
its recoverable amount.
In assessing the value in use, the estimated future
cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions
are taken into account. If no such transactions can
be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation
multiples, quoted share prices for publicly traded
companies or other available fair value indicators.
For assets excluding goodwill, an assessment is
made at each reporting date to determine whether
there is an indication that previously recognised
impairment losses no longer exist or have decreased.
If such indication exists, the Company estimates the
asset's or CGU's recoverable amount. A previously
recognised impairment loss is reversed only if there
has been a change in the assumptions used to
determine the asset's recoverable amount since the
last impairment loss was recognised. The reversal is
limited so that the carrying amount of the asset does
not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined,
net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal
is recognised in the statement of profit or loss unless
the asset is carried at a revalued amount, in which
case, the reversal is treated as a revaluation increase.
(14) Earnings per share (refer note 24)
Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes)
by the weighted-average number of equity shares
outstanding during the period. The weighted-average
number of equity shares outstanding during the
period is adjusted for events including a bonus issue.
For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable
to equity shareholders and the weighted-average
number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity
shares.
(15) Accounting and reporting of information for
Operating Segments
Operating segments are those components of the
business whose operating results are regularly
reviewed by the chief operating decision making body
in the Company to make decisions for performance
assessment and resource allocation. The reporting
of segment information is the same as provided to
the management for the purpose of the performance
assessment and resource allocation to the segments.
Segment accounting policies are in line with the
accounting policies of the Company.
2 (C) Recent pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments 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. The
Company has reviewed the new pronouncements
and based on its evaluation has determined that it
does not have any significant impact in its financial
statements.
Note 2 : Disclosure pursuant to Note no. S(e) of Division III of Schedule III to the Companies Act, 2013
Terms and rights attached to equity shares
Equity Shares: The Company has issued one class of equity shares having face value of Rs. 10/- per share. Each
shareholder is eligible for one vote per share held.
The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing
Annual General Meeting, except in case of Interim Dividend. In the event of liquidation, the equity shareholders are
eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion
to their shareholding.
The shareholders have all other rights as available to the Equity Shareholders as per the provisions of Companies
Act, 2013 read together with the Memorandum of Association and Articles of Association of the Company, as
applicable.
Note 3 : Disclosure pursuant to Note no. S(f) of Division III of Schedule III to the Companies Act, 2013
(i) Swallow Associates LLP is directly holding more than 50% of total paid up share capital of the Company
Note 4 : Disclosure pursuant to Note no. S(g) of Division III of Schedule III to the Companies Act, 2013
(shareholders holding more than 5% shares in the Company)
Nature and purpose of each reserve:
General reserve
General reserve is created from time to time by way of transfer profits from Retained earnings for appropriation
purposes. General reserve is created by a transfer from one component of equity to another and is not an item of
other comprehensive income.
Retained earnings
Retained earnings are the profits that the Company has earned till date, less any transfer to General reserve.
Statutory reserves
The Company is required to create a reserve in accordance with the provisions of Section 45-IC of the Reserve
Bank of India Act, 1934. Accordingly 20% of the profits after tax for the year is transferred to this reserve at the end
of every reporting period.
Other Comprehensive Income (OCI)
This represents the cumulative gains and losses arising on the revaluation of financial instruments measured at fair
value through other comprehensive income, under an irrevocable option, net of amounts reclassified to Retained
earnings when such assets are disposed off, if any.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised directly in other comprehensive income.
(b) Fair value hierarchy
The Group determines fair values of its financial instruments according to the following hierarchy:
Level 1: Valuation based on quoted market price: Financial instruments with quoted prices for identical
instruments in active markets that the Company can access at the measurement date.
Level 2: Valuation based on using observable inputs: Financial instruments with quoted prices for similar
instruments in active markets or quoted prices for identical or similar instruments in inactive markets and
financial instruments valued using models where all significant inputs are observable.
Level 3: Valuation technique with significant unobservable inputs: - financial instruments valued using valuation
techniques where one or more significant inputs are unobservable.
32 Financial risk management
The Company is a Non-Deposit taking Non-Banking Financial Company registered with the Reserve Bank of
India (the 'RBI') (classified as Middle Layer). On account of it's business activities it is exposed to various financial
risks associated with financial products such as credit or default risk, market risk, interest rate risk, liquidity risk
and inflationary risk. However, the Company has a robust financial risk management system in place to identify,
evaluate, manage and mitigate various risks associated with its financial products to ensure that desired financial
objectives are met. The Company's senior management is responsible for establishing and monitoring the risk
management framework within its overall risk management objectives and strategies. Such risk management
strategies and objectives are established to identify and analyse potential risks faced by the Company, set and
monitor appropriate risk limits and controls, periodically review the changes in market conditions and assess risk
management performance.
(a) Credit risk
This risk is common to all investors who invest in bonds and debt instruments and it refers to a situation
where a particular bond issuer is unable to make the expected principal payments, interest rate payments,
or both. Similarly, a lender bears the risk that the borrower may default in the payment of contractual interest
or principal on its debt obligations, or both. The entity continuously monitors defaults of customers and other
counterparties and incorporates this information into its credit risk controls.
Financial instruments
Risk concentration is minimized by investing in highly rated, investment grade bonds and debt instruments,
which has the least risk of default. These investments are reviewed by the Board of Directors on a regular
basis.
(b) Market risk:
Market risk is a form of systematic risk associated with the day-to-day fluctuation in the market prices of shares
and securities and such market risk affects all securities and investors in the same manner. These daily price
fluctuations follows its own broad trends and cycles and are more news and transaction driven rather than
fundamentals and many a times, it may affect the returns from an investment. Market risks majorly comprises
of two types - interest rate risk and other price risk, such as equity price risk and commodity risk. Financial
instruments affected by market risks include borrowings and investments.
(i) Price risk
Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market
traded price. It arises from financial assets such as investments in equity instruments, bonds, mutual
funds etc. The Company is exposed to price risk arising mainly from investments carried at fair value
through FVTPL or FVTOCI which are valued using quoted prices in active markets (level 1 investments).
A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the
prices existing as at the reporting date is given below:
(ii) Interest rate risk
Risk of exposure to interest rate risk is not material.
(c) Liquidity risk:
Liquidity refers to the readiness of the Company to sell and realise its financial assets. Liquidity risk is one of
the most critical risk factors for Companies which is into the business of investments in shares and securities.
It is the risk of not being able to realise the true price of a financial asset, or is not being able to sell the financial
asset at all because of non-availability of buyers.
The Company maintains a well-diversified portfolio of investments in shares and securities which are saleable
at any given point of time. A dedicated team of market experts are monitoring the markets on a continuous
basis, which advises the management for timely purchase or sale of securities. The Company is currently
having a mix of both short-term and long-term investments.
For disclosures pursuant to master direction - RBI (NBFC scale based regulation) Direction 2023, Annex
VI dated 19th October 2023 that enables the market participants to make an informed judgment about the
soundness of its liquidity risk management framework and liquidity position, refer note no 37.
33 Capital management
For the purpose of Company's capital management, capital includes issued equity share capital, other equity
reserves and borrowed capital less cash and cash equivalents. The primary objective of capital management is to
maintain an efficient capital structure to reduce the cost of capital, support corporate expansion strategies and to
maximize shareholder's value.
The entity 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 entity may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. The entity monitors capital
using a gearing ratio, which is net debt divided by total capital plus net debt. The entity's policy is to keep an
optimum gearing ratio. The entity includes within net debt, interest bearing loans and borrowings less cash and
cash equivalents.
13 Restructured accounts for the year ended March 31,2025: Not applicable
14 Provision under prudential norms of income recognition, asset classification and provisioning (IRACP) as at
March 31,2025: Not applicable
15 Liquidity Risk Management: Refer Note no. 32(c). Liquidity Risk
35: Disclosures given pursuant to Annexure VII of the Master Direction - Reserve Bank of India (Non-Banking
Financial Company - Scale Based Regulation) Directions, 2023
(i) Sectoral exposure: Nil
(ii) Intra-group exposures: Nil
(iii) Unhedged foreign currency exposure : The Company do not have any Unhedged foreign currency exposure
in Current year & previous year.
(iv) Related Party Disclosures : Details of all related party disclosures are given in note 27.
(v) Disclosure of Complaints:
a) No Complaints has been received during the Current year & previous year.
b) Top five grounds of complaints received by the NBFCs from customers- Not Applicable
(vi) Miscellaneous - Additional disclosures pursuant to the RBI circular RBI/2021-22/112 DOR.CRE.REC.No.60/
03.10.001/2021-22 dated October 22, 2021
a) Disclosures relating to Corporate Governance Report containing composition and category of directors,
shareholding of non-executive directors, etc: - Details relating to Corporate Governance Report containing
composition and category of directors, shareholding of non-executive directors etc are covered under
Corporate Governance Report, which forms part of the Annual Report.
b) Disclosure on modified opinion, if any, expressed by auditors, its impact on various financial items and
views of management on audit qualifications: - The Auditors has not expressed any modified opinion
during the current financial year ended 31 March 2025.
c) Disclosures relating to items of income and expenditure of exceptional nature - During the financial year
2024-2025, the company sold its entire 100% stake step down subsidiary to another company. This
transaction is classified as exceptional in nature due to its one-time and significant impact on the financial
results.
d) Disclosures relating to breaches in terms of covenants in respect of loans availed by the Company or debt
securities issued by the Company including incidence/s of default -There are no such instance during the
Financial Year 2024-2025.
e) Disclosures relating to Divergence in asset classification and provisioning above a certain threshold to be
decided by the Reserve Bank: -There are no such instance during the Financial Year 2024-2025.
f) Related Party Disclosure - Refer Point No. 27.
(vii) Institutional set-up for Liquidity Risk Management
The Board of Directors holds overall responsibility for overseeing the management of all risks, including
liquidity risk, arising from the Company's business operations. It formulates and approves the relevant policies
and strategies, and regularly reviews their implementation either directly or through designated committees.
To support this, the Board has constituted a Risk Management Committee (RMC) comprising select members
of the Board and Senior Management, as detailed in the Terms of Reference outlined in the Corporate
Governance section of the Annual Report. Additionally, an Asset Liability Management Committee (ALCO),
consisting of members from the Senior Management, has been established in accordance with its Terms of
Reference. This Committee, in coordination with the RMC, specifically oversees the implementation of the
Company's Liquidity Risk Management Framework.
36 (i) Disclosures pursuant to Reserve Bank of India notification no. DOR (NBFC).CC.PD.
No.109/22.10.106/2019-20 dated 13 March 2020 on implementation of IndAS by Non-Banking Financial
Companies: Nil
39 On 23rd April, 2024, the Company's wholly-owned subsidiary, Instant Holdings Limited (IHL) has entered into a
MOU to sell its entire shareholding in its subsidiary, Sudarshan Electronics and TV Limited (SETVL), inter alia to
conculsion of a Share Purchase Agrrement (SPA). The SPA has since been entered into, on 07th May, 2024. Post
the aforesaid SPA, SETVL ceased to be a subsidiary of IHL and the Company.
40 Based on the information available with the Company and confirmations received from suppliers regarding their
registration under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the Company has
identified certain vendors as registered under the said Act. However, as at 31st March, 2025, there are no amounts
due and outstanding to such suppliers for a period exceeding 45 days. Accordingly, no interest is payable or has
been paid under the terms of the MSMED Act, 2006 during the year.
41 No significant adjusting event occurred between balance sheet date and the date of the approval of these
standalone financial statements by the Board of Directors requiring adjustments on disclosures.
42 Segment reporting
As per the requirement of Ind AS 108, Operating Segments, based on evaluation of financial information for
allocation of resources and assessing performance, the Group identified as single segments, i.e., holding and
investing with focus on earning income through dividends, interest and gains from investments and operates in
India. Accordingly, there are no separate reportable segments as per the Standard.
43 Enhancing Accountability and Transparency: Implementation of Audit Trail
The company had implemented an audit trail system within our company's software which has impact on books
of accounts with effect from 1st April 2023. This implementation underscores our commitment to transparency,
accountability, and data integrity. Audittrail hasbeen implemented forall transactions recorded in the software throughout
the year. By capturing and documenting critical events and activities within our systems, we ensure a comprehensive
record that enhances security, facilitates compliance, and supports effective decision-making. In addition, audit
trail data is preserved in the system as per statutory requirement for record retention. The company's dedication
to maintain a robust audit trail reflects ongoing efforts to uphold the highest standards of governance and security
across all aspects of business operations.
44 Backup Schedule and Data Preservation
The company follows a well-defined backup schedule and data preservation protocol to ensure the integrity and
availability of critical information assets. Regular and systematic backups are conducted to protect against potential
data loss or corruption. This proactive approach ensures that vital data remains secure and accessible in the event
of unforeseen incidents.
45 Other Regulatory Information:
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
(ii) The Company does not have any transactions with struck off Companies.
(iii) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with Companies (Restriction on number of Layers) Rules, 2017.
(iv) The Company has not advanced or given loan or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(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 Beneficiaries.
(v) 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:
(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.
(vi) 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 survey or any other relevant provisions of the Income Tax Act, 1961.
(vii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
(viii) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
45 Amount shown as ? 0.00 represents amount below ? 500 (Rupees Five Hundred).
46 Figures or the previous year have been regrouped wherever necessary.
Signatures to Notes 1 to 46
D M K H & Co For and on behalf of the Board of Directors
Chartered Accountants Summit Securities Limited
Firm's Registration No. 116886W
by the hand of
Parin Shah H N Singh Rajpoot A.V. Nerurkar
Partner Director Director
Membership No. 606667 DIN: 00080836 DIN: 00045309
Place: Mumbai Arvind Dhumal Anand Rathi Jiya Gangwani
Date: 05th May, 2025 Manager Chief Financial Officer Company Secretary
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