(i) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the company has present determined obligations as a result of
past events and an outflow of resources embodying economic benefits will be required to settle
the obligations. Provisions are recognised at the best estimate ofthe expenditure required to settle
the present obligation at the balance sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre
tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is
used, the increase in the provision due to the passage of time is recognised as a finance cost.

A Contingent liability is not recognised but disclosed in the notes to the accounts, unless the
probability of an outflow ofresources is remote.

A contingent asset is generally neither recognised nor disclosed.

(ii) Earnings per share

The Basic earnings per share (EPS) is calculated 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.

For the purpose of calculating Diluted earnings per share, the net profit or loss for the year
attributable to the equity shareholders and the weighted average number of equity shares
outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

(iii) Cash and Cash Equivalent

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits maturing within twelve months from the date of balance Sheet, which are subject to an
insignificant risk of changes in value. Bank overdrafts are shown under borrowings in the balance
sheet.

(iv) Financial Instruments

A. Financial Instruments - Initial recognition and measurement

A financial instrument is defined as any contract that gives rise to a financial asset of one entity
and a financial liability or equity instrument of another entity. Trade receivables and payables,
loan receivables, investments in securities and subsidiaries, debt securities and other borrowings,
preferential and equity capital etc. are some examples of financial instruments.

Financial assets and financial liabilities are recognised in the company's statement of financial
position when the company becomes a party to the contractual provisions of the instrument. The
company determines the classification of its financial assets and liabilities at initial recognition.
All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition ofthe financial asset.

B.1. Financial assets -Subsequent measurement

The Subsequent measurement of financial assets depends on their classification which is as
follows:

a. Financial assets at fair value through profit or loss

Financial assets at fair value through profit and loss include financial assets held for sale in the
near term and those designated upon initial recognition at fair value through profit or loss.

b. Financial assets measured at amortised cost

Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. Trade receivables generally do not carry any interest and
are stated at their nominal value as reduced by appropriate allowance for estimated irrecoverable
amounts based on the ageing of the receivables balance and historical experience. Additionally, a
large number of minor receivables are grouped into homogenous groups and assessed for
impairment collectively. Individual trade receivables are written off when management deems
them not to be collectible.

c. Financial assets at fair value through OCI

All equity investments, except investments in subsidiaries, joint ventures and associates, falling
within the scope of Ind AS 109, are measured at fair value through Other Comprehensive Income
(OCI). The company makes an irrevocable election on an instrument by instrument basis to
present in other comprehensive income subsequent changes in the fair value. The classification is
made on initial recognition and is irrevocable.

If the company decides to designate an equity instrument at fair value through OCI, then all fair
value changes on the instrument, excluding dividends, are recognized in the OCI.

B. 2. Financial assets -Derecognition

The company derecognises a financial asset when the contractual rights to the cash flows from the
assets expire or it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset.

Upon derecognition of equity instruments designated at fair value through OCI, the associated
fair value changes ofthat equity instrument is transferred from OCI to Retained Earnings.

C. Investment in subsidiaries, joint ventures and associates

Investments made by the company in subsidiaries, joint ventures and associates are measured at
cost in the separate financial statements ofthe company.

D.1. Financial liabilities -Subsequent measurement

The Subsequent measurement of financial liabilities depends on their classification which is as
follows:

a. Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading,
if any.

b. Financial liabilities measured at amortised cost

Financial liabilities include liabilities that represent a contractual obligation to deliver cash or
another financial assets to another entity, or a contract that may or will be settled in the entities
own equity instruments. Few examples of financial liabilities are trade payables, debt securities
and other borrowings and subordinated debts.

Interest bearing loans and borrowings taken by the company are subsequently measured at
amortised cost using the effective interest rate method (EIR). Amortised cost is calculated by
taking into account any discount or premium on acquisition and fee or costs that are integral part
ofthe EIR. The EIR amortised is included in finance costs in the statement ofprofit and loss.

D. 2. Financial liabilities -Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or
expires.

E. Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the statement of
financial position, if and only if, there is a currently enforceable legal right to offset the
recognised amounts and there is an intention to settle on a net basis, or to realise the assets and
settle the liabilities simultaneously.

F. Fair value measurement

The company measures certain financial instruments at fair value at each reporting date. Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is
based on presumption that the transaction to sell the asset or transfer the liability takes place
either:

• In the principal market for the assets or liability or

• In the absence of a principal market, in the most advantageous market for the asset or
liability.

The principal or the most advantageous market must be accessible to the company.

The company uses valuation technique that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.

(v) Property, Plant and Equipment

Property, plant and equipment are carried at historical cost of acquisition less accumulated
depreciation and impairment losses, consistent with the criteria specified in Ind AS 16 'Property,
Plant and Equipment'.

The cost of an item of property, plant and equipment comprises of its purchase price, any costs
directly attributable to its acquisition, borrowing costs (wherever applicable). Subsequent costs
are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the
company and the cost of the item can be measured reliably. All other repairs and maintenance are
charged to profit or loss during the reporting period in which they are incurred.

Depreciation on property, plant and equipment is calculated using Written Down Value method.
An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included under other
income in the Statement of Profit and Loss when the asset is derecognised. The residual values,
useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.

The useful lives have been determined based on technical evaluation done by the management's
experts, which is same as the lives as specified by Schedule II to the Companies Act, 2013. The
residual values are not more than 5% of the original cost/deemed cost of the asset. The asset'
residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.

(vi) Impairment of non-financial assets

An assessment is done at each Balance Sheet date to ascertain whether there is any indication that
an asset may be impaired. If any such indication exists, an estimate of the recoverable amount of
asset is determined. If the carrying value of relevant asset is higher than the recoverable amount,
the carrying value is written down accordingly.

(vii) Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use and a sale is considered
highly probable. They are measured at the lower of their carrying amount and fair value less costs
to sell.

Non-current assets classified as held for sale and their related liabilities are presented separately
in the balance sheet. Non-current assets are not depreciated or amortised while they are classified
as held for sale.

(viii) Exceptional items

Exceptional items refer to items of income or expense within statement of profit and loss from
ordinary activities which are non-recurring and are of such size, nature or incidence that their
separate disclosure is considered necessary to explain the performance ofthe company.

(ix) Impairment of 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 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.

Impairment losses of continuing operations, including impairment on inventories, are recognised
in the statement ofprofit and loss.

2.3 (a) Critical accounting estimates and judgements

The preparation of the Company's financial statements requires Management to make use of
estimates and judgments. In view of the inherent uncertainties and a level of subjectivity involved
in measurement of items, it is possible that the outcomes in the subsequent financial years could
differ from those on which the Management's estimates are based. Accounting estimates and
judgments are used in various line items in the financial statements for e.g.:

• Business model assessment

• Fair value of financial instruments

• Effective Interest Rate (EIR)

• Impairment on financial assets

• Provisions and other contingent liabilities

• Provision for tax expenses

• Residual value and useful life of property, plant and equipment

22 CAPfTAL MANAGEMENT

The following are the objectives of Capital management policy of the company:

(i) Safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and
benefits fer other stakeholders, and

[ii] Maintain an optimal capital structure to reduce the cost of capital

As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders, issue
new shares, raise debt capital or sell assets to reduce debt. The company monitors capital basis a gearing ratio which is
calculated by dividing the total borrowings by total equity. The company's strategy is to maintain a gearing ratio as
possible as lower. In order to achieve this overall objective, the company ensures to meet its financial covenants attached
to the interest bearing loans and borrowings. There have never been any breaches in financial covenants of any interest
bearing loans and borrowings in the past and also in the current period.

Management estimations and assumptions

a] The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and cither current
liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

b] The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to
estimate the fair values:

[i] The fair values of the quoted shares and unquoted mutual funds are based on NAVs at the reporting date.

[ii] The fair values of the unquoted equity shares have been determined based on certifications from valuers who have used book Value
approach for determining the fair values.

Level 1: Quoted Prices in active markets for identical assets or liabilities

Level 2 : Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly [i.e. as prices]
or indirectly [i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data [unobservable inputs].

The company's policy is to recognize transfers into and the transfers out of fair value hierarchy levels as at the end of the reporting
period. There are no transfers between level 1 and level 2 during the end of the reported periods.

23.3 Financial Risk Management

The Company's principal financial liabilities comprise loans and borrowings. The main purpose of these financial liabilities is to finance the
Company's operations. The Company’s principal financial assets include loans, Investments, trade and other receivables, and cash and
cash equivalents that derive directly from its operations.

The Company’s activities expose it to various financial risks: market risk, credit risk and liquidity risk. The company tries to foresee the
unpredictable nature of financial markets and seek to minimise potential adverse impact an its financial performance. The senior
management Df the company oversees the management of these risks. The Audit Committee has additional oversight in the area of
financial risks and controls. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken.

26 Segment Reporting:

The Company is predominantly engaged in a single reportable segment of 'Financial Services' as per the Ind AS 108 -
Segment Reporting. The Company has determined its business segment as Finance Activities Business. Since there are no
other business segments in which the company operates, there are no other primary reportable segments. Therefore, the
segment revenue, segment results, segment assets, segment liabilities, total cost incurred to acquire segment assets,
depreciation charge are all as is reflected in the financial statements.

27 On the basis of physical verification of assets, as specified in IND AS - 36 and cash generation capacity of those assets, in the
management perception there is no impairment of such assets as appearing in the balance sheet as on 31 .03.2024.

Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease, unless the

30 receipts are structured to increase in line with expected general inflation.

31 a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found necessary.

In terms of our report of even date attached herewith

Signature to notes 1 to 31

For VMSS St Associates

Chartered Accountants _ _

Firm Registration No. 328952E Akshay Ranka Monal Malji

[ Director] (Director)

DIN-00235788 DIN-00511813

Sagar Jaiswal _

Partner Shilpi Biswas

Membership NO. 316727 (Company Secretary/CFO)

UDIN: 24316727BKFQJKB594

Date: 24th MAY 2024
Place: Nagpur [Camp]