XIII. Provisions, contingent liabilities, contingent assets
A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event
and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable
estimate can be made. If the effect of time value of money is material, provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risk 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. These are reviewed at each balance sheet date
and adjusted to reflect the current best estimates.
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. When there is a possible obligation or a present obligation in
respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.
The Company does not recognize a contingent asset but discloses its existence in the financial statements if the
inflow of economic benefits is probable. However, when the realization of income is virtually certain, then the related
asset is no longer a contingent asset, but it is recognized as an asset.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
XIV. Earnings per share
Basic earnings per share are computed using the net profit for the year attributable to the shareholders’ and weighted
average number of shares outstanding during the year. The weighted average numbers of shares also include fixed
number of equity shares that are issuable on conversion of compulsorily convertible preference shares, debentures
or any other instrument, from the date consideration is receivable (generally the date of their issue) of such
instruments.
Diluted earnings per share is computed using the net profit for the year attributable to the shareholder’ and weighted
average number of equity and potential equity shares outstanding during the year including share options, convertible
preference shares and debentures, except where the result would be anti-dilutive. Potential equity shares that are
converted during the year are included in the calculation of diluted earnings per share, from the beginning of the year
or date of issuance of such potential equity shares, to the date of conversion.
Prudential Norms
In terms of guidelines issued by Reserve Bank of India to Non Banking Financial Companies on prudential norms for
income recognition, assets classification, provisioning for Bad Debts etc., the following additional information is given.
No new provisions for non-performing assets are required in current year.
Contingent Provision is made against standard Assets at the rate of 0.25% of standard assets made as per RBI
Circular No. DNBS. PD. CC. No. 207/03.02.002/2010-11 dated 17 January, 2011.
Other additional information forming part of Financial statements
1) Contingent Liability:
Income Tax authorities have raised demand of Rs. 7.79 crores for AY 2017-18 by making addition to our income of
Rs. 7.78 crores being total amount of EMI deposited by our 26,376 customers (Average deposit per customer Rs.
2,954) directly in our various bank accounts in normal course of business at various bank branches during
demonetization period assuming that they are all unexplained deposit of SBNs (500/1000 notes).
Company has preferred an appeal against the order which is pending with CIT (Appeals). Company has also got
order from income tax department for abeyance of demand till final outcome of appeal. Company has paid Rs 40 lacs
on account. Company is advised by our consultant that it has very strong case and is confident of getting favorable
order. As per advice of our consultant we will not make any provision in the books till final outcome of appeal.
2) The Company is having many bank accounts of various branch offices of the Company wherein customers deposit
their EMI directly in the closest bank branch. There is a delay in receiving the customer-wise details from the banks.
Thus, bank reconciliation of bank accounts is under progress since it is carried out by the account staff manually and
there is high volume of transaction.
3) Deferred Tax Asset, other than unabsorbed depreciation and brought forward losses, is recognized only if there is
reasonable certainty that will be realized in future and are reviewed for their appropriateness
4) In the opinion of the Board of Directors the current assets, loans and advances have a value of realization in the
ordinary course of business at least equal to the amount of which these are stated in the Balance Sheet.
5) Other information required by relating to exports, imports and earning in foreign currency, remittances in foreign
currency transaction are not applicable.
6) The company considers it’s financing business as single segment hence IND-AS 108 on segment reporting is not
applicable to the company.
7) Other Statutory Information
a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
b) The Company have registered charges or satisfaction as applicable with ROC.
c) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
d) The Company has not received any fund from any person(s) or entity(is). including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
e) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign
entities [Intermediaries) with the understanding that the Intermediary shall directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behall of the company (Ultimate Beneficiaries) or
provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
f) The Company does not have any 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.
g) The Company is not declared as willful defaulter by any bank or financial Institution (as defined under the
Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful delauiters
issued by the Reserve Bank of India.
h) The Company has complied with the number of layers for its holding in downstream companies prescribed under
clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers)
Rules, 2017.
i) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the
year.
8) Micro, small and medium enterprise disclosure:
The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority
under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March 2025
as micro, small or medium enterprises. Consequently, the amount paid/payable to these parties during the year is NIL.
(e) Previous year’s figures have been regrouped, re-casted and rearranged wherever necessary.
FOR VORA AND ASSOCIATES. FOR AND ON BEHALF OF THE BOARD
CHARTERED ACCOUNTANTS
(ICAI Firm Reg. No. 111612W)
RONAK A RAMBHIA MINESH DOSHI VATSAL DOSHI
PARTNER DIRECTOR DIRECTOR & CFO
Membership No.: 140371 DIN: 01032705 DIN: 07950770
Darshana Chauhan
Company Secretary
Place: Mumbai Place: Mumbai
Date: 29th May, 2025 Date: 29th May, 2025
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