2.13. Provision, Contingent Liabilities and Contingent Assets
Provisions are recognised only when there is a present obligation, as a result of past
events, and when a reliable estimate of the amount of obligation can be made at the
reporting date. These estimates are reviewed at each reporting date and adjusted to reflect
the current best estimates. Provisions are discounted to their present values, where the
time value of money is material.
Contingent liability is disclosed for:
(i) Possible obligations which will be confirmed only by future events not wholly within the
control of the Company or
(ii) Present obligations arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount
of the obligation cannot be made.
Contingent assets are disclosed when probable and recognised when realisation of
income is virtually certain.
2.14. Earnings Per Share
Earnings per share is calculated by dividing the net profit or loss before OCI for the year
attributable to 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 before OCI 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.
2.15. Segment Reporting - Identification of Segments
An operating segment is a component of the Company that engages in business activities
from which it may earn revenues and incur expenses, whose operating results are regularly
reviewed by the company’s chief operating decision maker to make decisions for which
discrete financial information is available. Based on the management approach as defined in
Ind AS 108, the chief operating decision maker evaluates the Company’s performance and
allocates resources based on an analysis of various performance indicators by business
segments and geographic segments.
2.16. Use of Critical Estimates, Judgements and Assumptions
The preparation of the financial statements requires the use of accounting estimates,
which, by definition would seldom equal the actual results. Management also needs to
exercise judgment and make certain assumptions in applying the Company’s accounting
policies and preparation of financial statements.
In the process of applying the Company’s accounting policies, management has made the
following judgments, which have most significant effect on the amounts recognised in the
financial statement:
a. Estimation of Defined benefit obligations
The cost of the defined benefit plans and the present value of the obligations are
determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases and mortality rates. Due to
the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are
reviewed at each financial year end.
The parameter most subject to change is the discount rate. In determining the
appropriate discount rate for plans, the actuary considers the interest rates of
government bonds. The mortality rate is based on publicly available mortality tables.
Those mortality tables tend to change only at interval in response to demographic
changes. Future salary increase is based on expected future inflation rates.
b. Estimated fair value of unlisted securities
The fair values of financial instruments that are not traded in an active market and
cannot be measured based on quoted prices in active markets and is determined
based on estimated fair value.
2.17. Operating Cycle
Based on the nature of products/activities of the company and the normal time between
acquisition of assets and their realisation in cash or cash equivalents, the company has
determined its operating cycle as 12 months.
2.18. Recent accounting pronouncements:
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to
time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards)
Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules,
2023, applicable from April 1,2023, as below:
Ind AS 1 - Presentation of Financial Statements
The amendments require companies to disclose their material accounting policies rather
than their significant accounting policies. Accounting policy information, together with other
information, is material when it can reasonably be expected to influence decisions of
primary users of general purpose financial statements. The Company does not expect this
amendment to have any significant impact in its financial statements.
Ind AS 12 - Income Taxes
The amendments clarify how companies account for deferred tax on transactions such as
leases and decommissioning obligations. The amendments narrowed the scope of the
recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so
that it no longer applies to transactions that, on initial recognition, give rise to equal taxable
and deductible temporary differences. The Company does not expect this amendment to
have any significant impact in its financial statements.
Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
The amendments will help entities to distinguish between accounting policies and
accounting estimates. The definition of a change in accounting estimates has been
replaced with a definition of accounting estimates. Under the new definition, accounting
estimates are “monetary amounts in financial statements that are subject to measurement
uncertainty”. Entities develop accounting estimates if accounting policies require items in
financial statements to be measured in a way that involves measurement uncertainty. The
Company does not expect this amendment to have any significant impact in its financial
statements.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that
have quoted price. The fair value of all equity instruments and bonds which are traded in the stock exchanges is valued using the closing price as at the reporting
period. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-thecounter derivatives) is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3
The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as their fair values, due
to their short-term nature.
For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
The Company’s principal financial liabilities comprise Current Tax Liabilities and Provisions. The Company’s
financial assets include Investments, Loan, Interest receivable on Loan and Cash and Cash equivalents that
derive directly from its operations.
The Company is exposed to credit risk, liquidity risk and market risk. The Company’s board of directors has an
overall responsibility for the establishment and oversight of the Company’s risk management framework. The
board of directors has established the risk management committee, which is responsible for developing and
monitoring the Company’s risk management policies.
The Company’s risk management policies are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed to reflect changes in market conditions and the Company’s
activities.
The Company oversees how management monitors compliance with the Company’s risk management policies
and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by
the Company.
1) Credit risk
Credit risk is the risk of financial loss to the Company if a customer fails to meet its contractual obligations and
arises principally from the Company’s receivables from customers and loans. The carrying amounts of financial
assets represent the maximum credit risk exposure.
Loans
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each Borrower /
Customer, However, management also considers the factors that may influence the credit risk of its customer
base. Including the default risk associated with the industry. The Company’s exposure to credit risk for loans and
advances by type of counterparty is as follows;
The Loans are repayable on demand, however an impairment analysis is performed at each reporting date based
on the facts and circumstances existing on that date to identify expected losses on account of time value of
money and credit risk. For the purposes of this analysis, the trade receivables are categorised into groups based
on days past due.
Investments
The Company has made investments in the Quoted and unquoted Equity Shares as well as in the Preference
Shares for non trade long purpose.
The company has also made investments in the units of mutual funds on the basis of risk and returns of the
respective scheme during the year.
Cash and cash equivalent and Bank deposits
Credit risk on cash and cash equivalent and bank deposits is limited as the fund are in Current Account and
sometimes in invests in term deposits with banks.
2) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting its obligations associated with its
financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to
meet its liabilities when due.
The Company is monitoring its liquidity risk by estimating the future inflows and outflows during the start of the
year and planned accordingly the funding requirement. The Company manages its liquidity by term loans, inter¬
corporate deposit and investment in mutual funds.
The table below summarises the maturity profile of the Company’s non-derivative financial liabilities based on
contractual undiscounted payments along with its carrying value as at the balance sheet date.
3) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices.
Market risk includes interest rate risk and foreign currency risk. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimizing the return.
27 Contingent Liabilities not provided for:-
a. Estimated amount of contracts remaining to be executed on capital account and not provided for - Rs. Nil (PY - Rs. Nil).
b. Other Contingent Liabilities not provided for - Rs. Nil (PY - Rs. Nil).
28 There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2025
29 Dues to Micro, Small and Medium Enterprises
Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2nd October 2006, certain disclosure
are required to be made relating to Micro, Small and Medium Enterprises. As per the information available with the Company and relied upon by the
Auditors as follows:
31 Segment Reporting (Ind AS - 108)
The Operating Segment is the level at which discrete financial information is available. Business segments are identified considering : a) the nature of
products and services b) the differing risks and returns c) the internal organisation and management structure, and d) the internal financial reporting
systems.
Revenue and expenses directly attributable to segments are reported under each reportable segment. Exceptional items and other expenses which are
not attributable or allocable to segments are disclosed separately. Assets and liabilities that are directly attributable or allocable to segments are
disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable assets and liabilities.
(i) Business Segments:
During the year the company commenced activities in new line of business, trading of Goods.
In view of increased scale and financial Significance of business the trading business is identified as a separate reportable segment for the 1st time in
the financial for the year ended 31/03/2025.
Accordingly, the company’s reportable segment consists of the followings.
1. Non - Banking financial services - includes lending & investment activities in accordance with NBFC licenses issued by RBI.
2. Trading business -includes trading activities of goods initiated during the current financial year.
The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified in the Management
Committee.
(ii) Revenue from Major Customers:
The Group is not reliant on revenues from transactions with any single external customer and received 10% or more of its revenues from transactions
with 3 external customers under Financial Business Segment. The amount of revenue from each external customer exceeding 10% & not exceeding 10
% is tabulated hereunder:
34 a) Provision towards Current Tax has been made as per the Law stated under the Income Tax Act, 1961. Rs. 120 Lac (Previous Year Rs. 8 Lakhs)
b) Accounting for deferred taxation is made as per the requirement of Ind AS -12"Income Taxes".
35 In compliance of Section 45-IC of the Reserve Bank of India Act, 1934, the Company is required to create Special Reserve out of the profits after tax
for the year. However,the Company has transferred Rs 194.70 Lac to special reserve. The aggregate amount standing to the credit of such Special
Reserve as at the Balance Sheet date is Rs. 2086.57. Lakhs (Previous Year - Rs. 1,891.87 Lakhs).
40 The Company is not declared as a wilful defaulter by any bank or financial institution or other lenders during the year.
41 The Company has no transactions with the Struck off Companies under Section 248 or 560 of the Act.
42 No proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act,
44 In the opinion of the Board, the Current assets, and Loans and Advances have a value on realisation in the ordinary course of the business at least
equal to the amount at which they are stated in the books of account and adequate provision has been made of founds all known liabilities.
45 Disclosure in respect of foreign exchange fluctuations during the year carried to the Statement of Profit and Loss for the current year - Nil (Previous
Year - Nil).
46 Compliance related to number of layers prescribed under clause (87) of Section 2 of the Act read with the Companies (Restriction on number of
Layers) Rules, 2017 is not applicable to the Company, keeping in view the fact that the Company has no subsidiaries.
47 Disclosure on 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 is not applicable to the Company, since no such event occurred during the year.
48 Since the Company has no borrowings from banks or financial institutions on the basis of security of current assets, disclosure of the following is not
applicable:
(i) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions whether are in agreement with the books
of accounts.
(ii) Summary of reconciliation and reasons of material discrepancies.
49 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:
i) 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
(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
50 Additional information as required under various notification issued by RBI, to the extend applicable, (other than what is already disclose elsewhere) is
disclosed as an Annexure.
51 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:
(i) 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
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
52 The Company does not have any unutilised amounts in respect of any issue of securities. No Long-term borrowings from banks and financial
institutions have been raised by the Company during the year.
53 The Company has no charges or satisfaction, which are yet to be registered with the Registrar of Companies.
54 a) Figures of the previous year have been re-grouped and re-classified wherever necessary to correspond with the figure of the current period.
b) Figures have been rounded off to nearest lakhs of rupees.
As per our report of even date attached For and on behalf of the Board of Directors
For S K H D & Associates
Chartered Accountants
Firm Reg. No. 105929 W
Sd/- Sd/- Sd/-
Hemanshu Solanki P.KJajodia Vikas Kulkarni
Partner Director Managing Director
Membership No: 132835 DIN: 00376220 DIN: 08180938
Sd/- Sd/-
Place : Mumbai Neha Tulsyan Abhijeet Salvi
Date : 27th May, 2025 Company Secretary Chief Financial Officer
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