2.6 Provisions, Contingent Liabilities and Contingent Assets
Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable
that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of
the reporting period, taking into account the risks and uncertainties surrounding 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 provision for onerous contracts is recognised when the expected benefits to be derived by the Company from a contract are lower
than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of
the expected cost of terminating the contract and the expected net cost of continuing with the contract.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable
is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be
measured reliably.
In case of litigations, provision is recognised once it has been established that the Company has a present obligation based on
information available up to the date on which the Company's financial statements are finalised and may in some cases entail seeking
expert advice in making the determination on whether there is a present obligation.
Contingent Liabilities
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 recognised
because it is not probable that an outflow of resources will be required to settle the obligation. Company does not recognised
contingent liability but discloses its existence in the financial statements.
Contingent Assets
Contingent assets are not recognised in the financial statements, but are disclosed where an inflow of economic benefits is probable.
2.7 Cash and cash equivalents
Cash and cash equivalents comprise of cash on hand, balances with banks, cheques on hand, remittances in transit and short-term
investments with an original maturity of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
2.8 Financial Instruments
Classification of financial instruments
The Company classifies its financial assets into the following measurement categories:
1. Financial assets to be measured at amortised cost
2. Financial assets to be measured at fair value through other comprehensive income
3. Financial assets to be measured at fair value through profit or loss
The classification depends on the contractual terms of the financial assets' cash flows and the Company's business model for managing
financial assets which are explained below:
Business model assessment
The Company determines its business model at the level that best reflects how it manages groups of financial assets to achieve its
business objective.
The Company's business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios.
The Solely Payments of Principal and Interest (SPPI) test
As a second step of its classification process the Company assesses the contractual terms of financial assets to identify whether they
meet the SPPI test.
'Principal' for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change over the
life of the financial asset (for example, if there are repayments of principal or amortisation of the premium/ discount).
In assessing whether the contractual cash flows are SPPI, the Company considers the contractual terms of the instrument. This
includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash
flows such that it would not meet this condition.
The Company classifies its financial liabilities at amortised costs unless it has designated liabilities at fair value through the profit and
loss account or is required to measure liabilities at fair value through profit or loss such as derivative liabilities.
Recognition of Financial Instruments:
Financial assets and financial liabilities are recognised when entity becomes a party to the contractual provisions of the instruments.
Initial Measurement of Financial Instruments:
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit
or loss are recognised immediately in the Statement of Profit and Loss.
Subsequent Measurement:
(A) Financial Assets
Financial Assets carried at Amortised Cost:
A financial asset is measured at amortised cost, if it is held within a business model whose objective is to hold the asset in order to
collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Financial Assets at Fair Value through Other Comprehensive Income (FVTOCI):
A financial asset is measured at FVTOCI, if it is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
Financial Assets at Fair Value through Profit or Loss (FVTPL):
Financial assets at FVTPL include financial held for trading and financial assets designated upon initial recognition as at FVTPL. A
financial asset that meets the amortised cost criteria or debt instruments that meet the FVTOCI criteria may be designated as at FVTPL
upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would
arise from measuring assets or liabilities or recognising the gains and losses on them on different bases. The Company has not
designated any debt instrument as at FVTPL.
Any differences between the fair values of financial assets classified as FVTPL and held by the Company on the balance sheet date is
recognised in the Statement of Profit and Loss. In cases there is a net gain in the aggregate, the same is recognised in "Net gain on fair
value changes" under Revenue from Operations and if there is a net loss the same is recognised in "Net loss on fair value changes"
under Expenses in the Statement of Profit and Loss.
Effective Interest Rate (EIR) Method:
The EIR is a method of calculating the amortised cost of allocating interest income or expense over the relevant period.
The EIR for financial assets or financial liability is computed:
a) At the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial asset or
financial liability to the gross carrying amount of a financial asset or to the amortised cost of a financial liability on initial recognition.
b) By considering all the contractual terms of the financial instrument in estimating the cash flows.
c) Including all fees received between parties to the contract that are integral part of the effective interest rate, transaction costs, and
all other premiums or discounts.
Impairment of Financial Assets:
Loss allowance for expected credit losses is recognised for financial assets measured at amortised cost and FVTOCI at each reporting
date based on evidence or information that is available without undue cost or effort.
The Company measures the loss allowance for a financial asset at an amount equal to the lifetime expected credit losses if the credit
risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial asset has not
increased significantly since initial recognition, the Company measures the loss allowance for that financial asset at an amount equal
to 12-month expected credit losses.
Derecognition of Financial Assets:
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers
the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
On derecognition of a financial asset accounted under Ind AS 109 in its entirety:
a) for financial assets measured at amortised cost, the gain or loss is recognised in the Statement of Profit and Loss.
b) for financial assets measured at fair value through other comprehensive income, the cumulative fair value adjustments previously
taken to reserves are reclassified to the statement of Profit and Loss unless the asset represents an equity investment in which case
the cumulative fair value adjustments previously taken to reserves may be reclassified within equity.
If the transferred asset is part of a larger financial asset and the part transferred qualifies for derecognition in its entirety, the previous
carrying amount of the larger financial asset shall be allocated between the part that continues to be recognised and the part that is
derecognised, on the basis of the relative fair values of those parts on the date of the transfer.
If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, it recognises its retained interest in the assets and an associated liability for amounts it may have to pay.
If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, it continues to recognise the
financial asset and also recognises a liability for the proceeds received.
(B) Financial Liabilities & Equity Instruments
Classification as debt or equity:
Financial liabilities and equity instruments issued are classified according to the substance of the contractual arrangements entered
into and the definitions of a financial liability and an equity instrument.
Equity Instruments
An Equity Instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Repurchase of the Company's own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in
the statement of Profit and Loss on the purchase, sale, issue or cancellation of the Company's own equity instruments.
Financial Liabilities
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value
through profit or loss.
Financial liabilities measured at amortised cost:
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the EIR method.
Amortised cost is calculated by taking into account any discount or premium and fee or costs that are an integral part of the EIR. The
EIR amortisation is included in finance costs in the Statement of Profit and Loss. Any difference between the proceeds (net of
transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the EIR method.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a
new liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable is recognised in the Statement of Profit and Loss.
Off-setting of financial instruments
Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet when there is a legally enforceable right
to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability
simultaneously.
Fair value measurement
On initial recognition, all the financial instruments are measured at fair value. 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 the presumption that the transaction to sell the asset or transfer the liability takes place either:
a) In the principal market for the asset or liability, or
b) 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 by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by
using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best
use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised into Level 1, 2, or 3
based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety, which are as follows:
Level 1 financial instruments: Those where the inputs used in the valuation are unadjusted quoted prices from active markets for
identical assets or liabilities that the Company has access to at the measurement date. The Company considers markets as active only
if there are sufficient trading activities with regards to the volume and liquidity of the identical assets or liabilities and when there are
binding and exercisable price quotes available on the balance sheet date.
Level 2 financial instruments: Those where the inputs that are used for valuation and are significant, are derived from directly or
indirectly observable market data available over the entire period of the instrument's life. Such inputs include quoted prices for similar
assets or iabilities in active markets, quoted prices for identical instruments in inactive markets and observable inputs other than
quoted prices such as interest rates and yield curves, implied volatilities, and credit spreads. In addition, adjustments may be required
for the condition or location of the asset or the extent to which it relates to items that are comparable to the valued instrument.
However, if such adjustments are based on unobservable inputs which are significant to the entire measurement, the Company will
classify the instruments as Level 3.
Level 3 financial instruments: Those that include one or more unobservable input that is significant to the measurement as whole.
Overview of the Expected Credit Loss (ECL) principles
Expected credit loss (ECL) is the probability-weighted estimate of credit losses (i.e., the present value of all cash shortfalls) over
the expected life of the financial instrument. A cash shortfall is the difference between scheduled or contractual cash flows and
actual expected cash flows. Consequently, ECL subsumes both the amount and timing of payments. It also incorporates available
information which is relevant to the assessment, including information about past events, current conditions and reasonable and
supportable information about future events and economic conditions at the reporting date.
For portfolio of exposures, ECL is modelled as the product of the probability of default, the loss given default and the exposure at
default.
In case of assets identified to be significantly credit-impaired to the extent that default has happened or seems to be a certainty rather
than probability, ECL would be determined by directly estimating the receipt of cash flows and timing thereof.
Staging:
The loan portfolio would be classified into three stage-wise buckets - Stage 1, Stage 2 and Stage 3 - corresponding to the contracts
assessed as performing, under-performing and non-performing, in accordance with the Ind-AS guidelines. The key parameter used for
stage-wise classification would be days past due (DPDs).
Stage 1:
All exposures where there has not been a significant increase in credit risk since initial recognition or that has low credit risk at the
reporting date and that are not credit impaired upon origination are classified under this stage. The company classifies all standard
advances and advances upto 60 days default under this category. Stage 1 loans also include facilities where the credit risk has
improved and the loan has been reclassified from Stage 2.
Stage 2:
All exposures where there has been a significant increase in credit risk since initial recognition but are not credit impaired are classified
under this stage. 60 Days Past Due is considered as significant increase in credit risk.
Stage 3:
All exposures assessed as credit impaired when one or more events that have a detrimental impact on the estimated future cash flows
of that asset have occurred are classified in this stage. For exposures that have become credit impaired, a lifetime ECL is recognised
and interest revenue is calculated by applying the effective interest rate to the amortised cost (net of provision) rather than the gross
carrying amount. 150 Days Past Due is considered as default for classifying a financial instrument as credit impaired.
If an event (for eg. any natural calamity) warrants a provision higher than as mandated under ECL methodology, the Company may
classify the financial asset in Stage 3 accordingly.
While the presumption for inter-stage threshold for Stage 1 is 30 days, the company has rebutted the presumption and has considered
60 days as the threshold. As per current market practice, NBFCs typically tend to be paid later than banks by borrowers since banks
control their working capital financing.
Methodology:
The basis of the ECL calculations are outlined below which is intended to be more forward-looking. Key elements of ECL are, as follows:
Probability of Default (PD) is an estimate of the likelihood of default over a given time horizon. A default may only happen at a certain
time over the assessed period, if the facility has not been previously de-recognised and is still in the portfolio.
Exposure at Default (EAD) is an estimate of the exposure at a future default date, taking into account expected changes in the
exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise,
expected drawdown's on committed facilities, and accrued interest from missed payments.
Loss Given Default (LGD) is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the
difference between the contractual cash flows due and those that the lender would expect to receive, including from the realisation of
any collateral. It is usually expressed as a percentage of the EAD.
The key tenets of Company's methodology are as under:
Past performance as basis for ECL discovery: Company's ECL methodology is based on discovery of the relevant parameters - namely
EAD, PD and LGD - from the Company's actual performance of past portfolios.
The management will continue to monitor the loan cases on an ongoing basis, and have the discretion to make higher provisions on
the basis expected recovery of the individual accounts, wherever considered necessary.
Write-offs
The Company reduces the gross carrying amount of a financial asset when the Company has no reasonable expectations of recovering
a financial asset in its entirety or a portion thereof. The Company has a right to apply enforcement activities to recover such written off
financial assets. Subsequent recoveries of amounts previously written off are credited to the statement of profit and loss.
,10 Earnings Per Share ('EPS')
Basic EPS per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting
preference dividend, if any, and attributable taxes) 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 equity shareholders and the
weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date.
In computing the dilutive earnings per share, only potential equity shares that are dilutive and that either reduces the earnings per
share or increases loss per share are included.
,11 Significant accounting judgements, estimates and assumptions
The preparation of financial statements in conformity with the Ind AS requires the management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosure and the
disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are
affected. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about
these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
In particular, information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that
have the most significant effect on the amounts recognised in the financial statements is included in the following notes:
Impairment losses on loans and advances
The measurement of impairment losses across all categories of financial asset requires judgement, in particular, the estimation of the
amount and timing of future cash flows and collateral values when determining impairment losses and the assessment of a significant
increase in credit risk. These are based on the assumptions which are driven by a number of factors resulting in future changes to the
impairment allowance.
A collective assessment of impairment takes into account data from the loan portfolio (such as credit quality, nature of assets
underlying assets financed, levels of arrears, credit utilization, loan to collateral ratios etc.), and the concentration of risk and
economic data (including levels of unemployment, country risk and performance of different individual groups). These significant
assumptions have been applied consistently to all period presented.
Business Model Assessment
Classification and measurement of financial assets depends on the results of the SPPI and the business model test. The Company
determines the business model at a level that reflects how groups of financial assets are managed together to achieve a particular
business objective. The Company monitors financial assets measured at amortised cost or fair value through other comprehensive
income that are derecognised prior to their maturity to understand the reason for their disposal and whether the reasons are
consistent with the objective of the business for which the asset was held.
Monitoring is part of the Company's continuous assessment of whether the business model for which the remaining financial assets
are held continues to be appropriate and if it is not appropriate whether there has been a change in business model, if so, then it will
be a prospective change to the classification of those assets.
Contingent liabilities and provisions other than impairment of loan portfolio
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting
from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification
of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying
amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.
Fair Value measurement
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted
prices in active markets, their fair value is measured using various valuation techniques. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values.
Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors
could affect the reported fair value of financial instruments.
EIR method
The Company's EIR methodology, recognises interest income / expense using a rate of return that represents the best estimate of a
constant rate of return over the expected behavioural life of loans given / taken and recognises the effect of potentially different
interest rates at various stages and other characteristics of the product life cycle (including prepayments and penalty interest and
charges).
This estimation, by nature, requires an element of judgement regarding the expected behaviour and life-cycle of the instruments, as
well expected changes to India's base rate and other fee income/expense that are integral parts of the instrument.
Other estimates
These include contingent liabilities, useful lives of tangible assets etc.
2.12 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. For the year ended March 31, 2024, MCA has not notified any new standards
or amendments to the existing standards.
13 Other Equity
Nature & Purpose of Reserve
i Reserve u/s 45-IC of RBI Act, 1934
The Company has to transfer 20% of the profit after Tax to the statutory reserves in accordance with the provisions of section 45-IC
Reserve Bank of India Act, 1934. The same will be utilised in accordance with the provisions of the Reserve Bank of India Act, 1934.
ii Securities premium
This reserve represents the premium on issue of shares and can be utilised in accordance with the provisions of the companies Act, 2013.
iii General Reserve
The general reserve comprises of transfer of profits from retained earnings for appropriation purpose. The reserve can be
distributed/utilised by the Company in accordance with the provisions of the Companies Act, 2013.
iv Retained Earnings
This reserve represents the cumulative profits of the Company less any transfers to statutory reserve. This can be utilised in accordance
with the provisions of the Companies Act, 2013.
23 Capital Management
The Company maintains an actively managed capital base to cover risks inherent in the business which includes issued equity capital and
all other equity reserves attributable to equity holders of the Company. The primary objectives of the Company's capital management is
to ensure that the Company complies with externally imposed capital requirements and maintains healthy capital ratios in order to
support its business and to maximise shareholder value. The Company manages its capital structure and makes adjustments to it
according to changes in economic conditions and the risk characteristics of its activities. In order to maintain or adjust the capital
structure, the Company may adjust the amount of dividend payment to shareholders, return capital to shareholders or issue capital
securities.
All the financial assets and liabilities have short-term maturity (less than twelve months) and thus their carrying amounts are a
reasonable approximation of their fair value.
Fair Value Hierarchy
The following provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into
Level 1 to Level 3, as described below:
Quoted prices in an active market (Level 1): Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date.
Valuation techniques with observable inputs (Level 2): Inputs other than quoted prices included within level 1 that are observable for the
asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). It includes fair value of the financial
instruments that are not traded in an active market and are determined by using valuation techniques.
These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the
company specific estimated. If all significant inputs required to fair value an instrument are observable, then the instrument is included
in level 2.
Valuation techniques with significant unobservable inputs (Level 3): If one or more of the significant inputs is not based on observable
market data, the instrument is included in level 3.
25 Risk Management
Whilst risk is inherent in the Company's activities, it is managed through an integrated risk management framework including ongoing
identification, measurement and monitoring, subject to risk limits and other controls. This process of risk management is critical to the
Company's continuing profitability and each individual within the Company is accountable for the risk exposures relating to his or her
responsibilities. The Company is mainly exposed to market risk, liquidity risk and credit risk. It is also subject to various operating and
business risks.
The Board of Directors are responsible for the overall risk management approach and for approving the risk management strategies and
principles.
The Company has a robust Risk management framework to identify, evaluate business risk and opportunities. This framework seeks to
create transparency, minimize adverse impact on the business objectives and enhance the competitive advantage.
The framework has a different risk model which helps in identifying risk trends, exposure and potential impact analysis at a company
level.
i Market Risk
The Company's Financial Instruments are exposed to market changes as are summarised below:
Foreign currency risk : The Company does not have any exposure to foreign currency. Hence, any fluctuations on account of foreign
currency has not arisen.
Equity price risk: The Company does not have any investments in equity instruments. Hence, there are no Equity price risk Interest rate
risk
The Company is not exposed to interest rate risk as it has borrowings at fixed rate of interest.
ii Liquidity Risk
Liquidity risk is the riskthat the Company does not have sufficient financial resources to meet its obligations as they fall due, or will have
to do so at an excessive cost. This risk arises from mismatches in the timing of cash flows which is inherent in all finance driven
organisations and can be affected by a range of Company-specific and market-wide events.
iii Credit risk
Credit risk is the risk that the Company will incur a loss because its customers or counterparties fail to discharge their contractual
obligations.
The principal business of the Company is to provide financing in the form of loans to its clients. Credit Risk is the risk of default of the
counterparty to repay its obligations in a timely manner resulting in financial loss.Credit risk encompasses both the direct risk of default
and the risk of deterioration of creditworthiness as well as concentration risks.
In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific guidelines to focus on
maintaining a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.
26 The Company does not hold any Benami Property, nor there are any proceedings initiated or pending against the Company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.
27 The Company has no borrowings from banks or financial institutions on the basis of security of current assets, there is no requirement of
filing of quarterly returns or statements.
28 The Company is not declared to be a wilful defaulter by any bank or financial institution or other lender.
29 Relationship with Struck off Companies:
To the best of knowledge and information of the Management, the Company has no transactions with companies struck off
under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
30 There are no charges or satisfaction pending to be registered with Registrar of Companies.
31 Since the Company is NBFC - Base Layer (NBFC-BL) not availing public funds, financial ratios (CRAR and liquidity coverage ratio) are not
applicable and these ratios have not been prescribed by RBI for such NBFC. Hence, the same is not being disclosed.
32 The Company has complied with permitted number of layers of companies.
33 The Company is not party to any approved Scheme(s) of Arrangements.
34 Utilisation of Borrowed funds and share premium:
(A) The company has not advanced or loaned or invested funds (obtained from any source) to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) 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;
(B) 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.
35 There are no contingent liabilities in knowledge of management of the company
36 There are no outstanding commitments.
37 There are no foreign currency transactions entered into by the company
38 As at 31st March, 2024 and as at 31st March, 2023, there are no loans or advances in the nature of loans granted to promoters,
directors, KMPs and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that
are repayable on demand or without specifying any terms or period of repayment.
39 The business of the Company falls within a single primary segment vis.,'Financial Services' and hence, the disclosure requirement of the
Ind AS 108 - "Operating Segments” is not applicable.
40 Figures of previous period have been regrouped/reclassified, wherever necessary, to make them comparable and to conform with
current period classification.
Notes forming part of Financial Statements 1 to 40
In terms of our report of even date attached
For Multi Associates For and on behalf of the Board of Directors of
Chartered Accountants Shivkamal Impex Limited
Firm's Registration No.: 509955C
Anil Kumar Garg Lav Kush Mishra Manu Jain
Partner Director Director
Membership No.: 084003 DIN: 02241380 DIN: 07801467
Place: New Delhi Sugan Chand Jain Pooja Tyagi
Date: May 27, 2024 CEO & CFO Company Secretary
M. No. A56559
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