2.3.4 Provisions and contingencies
From time to time, the Company is subject to legal proceedings, the ultimate outcome of each
being subject to uncertainties inherent in litigation. A provision for litigation is made when it
is considered probable that a payment will be made and the amount can be reasonably
estimated. Significant judgement is required when evaluating the provision including, the
probability of an unfavourable outcome and the ability to make reasonable estimate of the
potential loss. Litigation provisions are reviewed at each accounting period and revisions
made for the changes in facts and circumstances. Contingent liabilities are disclosed in the
notes forming part of the financial statements. Contingent assets are not disclosed in the
financial statements unless an inflow of economic benefits is probable.
2.4 Property, plant and equipment (PPE)
An item of property, plant and equipment is recognised as an asset if it is probable that the
future economic benefits associated with the item will flow to the company and its cost can
be measured reliably. This recognition principle is applied to the costs incurred initially to
acquire an item of PPE, and also costs incurred subsequently to add to, replace part of , or
service it and subsequently carried at cost less accumulated depreciation and accumulated
impairment losses, if any. The cost of an asset includes the purchase cost of materials,
including import duties and non-refundable taxes, and any directly attributable costs of
bringing an asset to the location and condition of its intended use. The carrying amount of
the replaced part is derecognised. All other repair and maintenance costs are recognised in
the statement of profit and loss as incurred. The present value of the expected cost for the
decommissioning of an asset after its use is included in the cost of the respective asset if the
recognition criteria for a provision is met. When parts of an item of property, plant and
equipment have different useful lives, they are accounted for as separate items (major
components) of property, plant and equipment. The cost and related accumulated
depreciation are eliminated from the financial statements upon sale or retirement of the asset
and the resultant gains or losses are recognized in the Statement of Profit and Loss.
Depreciation methods, estimated useful lives and residual value
Freehold land is not depreciated. Lease-hold land areamortised over the lease term.
Depreciation on other items of PPE is provided on a straight-line basis to allocate their cost,
net of their residual value over the estimated useful life of the respective asset as specified in
Schedule II to the Companies Act, 2013.
The estimated useful lives are determined based on assessment made by technical experts,
in order to reflect the actual usage of the assets. The management believes that these
estimated useful lives are realistic and reflect fair approximation of the period over which the
assets are likely to be used.
The estimated useful lives considered are as follows:
Category Useful Life
Buildings (other than factory building) 60 Years
Factory Building 30 Years
Plant & Equipment 25 Years
Office Equipments including Air Conditioners 5 Years
Furniture & Fixtures 10 Years
Motor Cars 8 Years
Motor Cycles & Scooters 10 Years
There exist no restrictions or any encumbrances on title by way of any security/ pledge of
any property or plant & Equipment against any liability of the company.
The estimated useful lives, residual values and depreciation method are reviewed at-least at
the end of each financial year and are adjusted, wherever appropriate and required.
2.5 Non-current assets held for sale and discontinued operations
Non-current assets (including disposal groups) 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. Non-current assets classified as
held for sale are measured at lower of their carrying amount and fair value less cost to sell.
Non-current assets classified as held for sale are not depreciated or amortised from the date
when they are classified as held for sale. Non-current assets classified as held for sale and
the assets and liabilities of a disposal group classified as held for sale are presented
separately from the other assets and liabilities in the Balance sheet. A discontinued
operation is a component of the entity that has been disposed off or is classified as held for
sale and:
a) represents a separate major line of business or geographical area of operations and;
b) is part of a single co-ordinated plan to dispose of such a line of business or area of
operations.
The results of discontinued operations are presented separately in the Statement of Profit
and Loss.
2.6 Financial instruments
Financial assets and financial liabilities are recognised in the Balance sheet when the
Company becomes a party to the contractual provisions of the instrument. The Company
determines the classification of its financial assets and financial liabilities at initial
recognition based on its nature and characteristics.
a) Financial assets
i) Initial recognition and measurement
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 of the financial asset. The financial assets include equity, loans and advances,
cash and bank balances and derivative financial instruments
ii) Subsequent measurement
For the purpose of subsequent measurement, financial assets are classified in the following
categories:
1) At amortised cost,
2) At fair value through other comprehensive income (FVTOCI), and
3) At fair value through profit or loss (FVTPL).
Debt instruments
A financial asset or financial liability is initially measured at fair value plus, for an item not
at fair value through profit and loss (FVTPL), transaction costs that are directly attributable
to its acquisition or issue. Transaction costs of financial assets carried at fair value through
profit and loss are expensed in the Statement of Profit and Loss. Subsequent measurement of
debt instruments depends on the Company's business model for managing the asset and the
cash flow characteristics of the assets.
There are three measurement categories into which Company classifies its debt instruments:
a) Amortised cost
A ‘debt instrument’ is measured at the amortised cost if both the following conditions are
met:
1) The asset is held within a business model whose objective is to hold the asset for collecting
contractual cash flows, and
2) Contractual terms of the asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised
cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an integral part of
the EIR.
b) Fair value through Other Comprehensive Income ('FVTOCI')
Assets that are held for collection of contractual cash flows and for selling the financial seets,
cash flows represent solely payments of principal and interest, are measured at FVTOCI.
Movements in the carrying amount are recorded through OCI, except for the recognition of
impairment gains or losses, interest revenue which are recognised in the Statement of Profit
& Losses.
c) Fair value through Profit and loss ('FVTPL')
Assets that do not meet the criteria for amortised cost or FVTOCI are measured at FVTPL.
A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised
net in the Statement of Profit and Loss in the period in which it arises Interest income from
these financial assets is included in other income.
Equity investments
All equity investments in the scope of Ind AS 109 are measured at fair value.
Equity instruments included within the FVTPL category, if any, are measured at fair value
with all changes recognized in profit or loss. The Company may make an irrevocable election
to present in OCI subsequent changes in the fair value. The Company makes such election
on an instrument-by-instrument basis. The classification is made on initial recognition and
is irrevocable.
If the Company decides to classify an equity instrument at FVTOCI, then all fair value
changes on the instrument, excluding dividends, are recognized in OCI. There is no recycling
of the amounts from OCI to profit or loss, even on sale of investment. However, the Company
may transfer the cumulative gain or loss within equity.
iii) De-recognition
The Company derecognises a financial asset only when the contractual rights to the cash
flows from the asset expires or it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset.
b) Financial liabilities
(j) Initial recognition and measurement
All financial liabilities are recognised initially at fair value.
The financial liabilities include trade and other payables, loans and borrowings including
bank overdrafts, derivative financial instruments etc.
(iii)Subsequent measurement
For the purpose of subsequent measurement, Financial liabilities are classified in two
categories:
1) Financial liabilities at amortised cost, and
2) Derivative instruments at fair value through profit or loss (FVTPL)
c) Financial Guarantee contracts
Financial guarantee contracts are recognised as a financial liability at the time of issuance of
guarantee. The liability is initially measured at fair value and are subsequently measured at
the higher of the amount of loss allowance determined, or the amount recognised less, the
cumulative amount of income recognised.
d) Derivative financial instruments
Initial recognition and subsequent measurement
Derivative financial instruments are initially recognised at fair value on the date on which a
derivative contract is entered into and are subsequently re-measured at fair value.
Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative. Any gains or losses arising from changes in the fair
value of derivatives are taken directly to profit or loss.
e) Offsetting of financial instruments
Financial assets and financial liabilities including derivative instruments are offset and the
net amount is reported in the Balance sheet, if there is 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
Fair value is a market-based measurement, not an entity-specific measurement. Under Ind
AS, fair valuation of financial instruments is guided by Ind AS 113 “Fair Value
Measurement.”
For some assets and liabilities, observable market transactions or market information might
be available. For other assets and liabilities, observable market transactions and market
information might not be available. However, the objective of a fair value measurement in
both cases is the same to estimate the price at which an orderly transaction to sell the asset
or to transfer the liability would take place between market participants at the measurement
date under current market conditions (i.e. an exit price at the measurement date from the
perspective of a market participant that holds the asset or owes the liability).
Three widely used valuation techniques specified in the said Ind AS are the market approach,
the cost approach and the income approach which have been dealt with separately in the
said Ind AS.
Each of the valuation techniques stated as above proceeds on different fundamental
assumptions, which have greater or lesser relevance, and at times there is no relevance of a
particular methodology to a given situation. Thus, the methods to be adopted for a particular
purpose must be judiciously chosen. The application of any particular method of valuation
depends on the company being evaluated, the nature of industry in which it operates, the
company’s intrinsic strengths and the purpose for which the valuation is made.
In determining the fair value of financial instruments, the Company uses a variety of
methods and assumptions that are based on market conditions and risks existing at each
balance sheet date.
The Company uses the following hierarchy for determining and disclosing the fair
value of financial instruments by valuation technique:
Level 1: Quoted prices (unadjusted) 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 or indirectly.
Level 3: Inputs for the assets or liabilities that are not based on observable market data
(unobservable inputs)
g) Share capital
An equity instrument is a contract that evidences residual interest in the assets of the
Company after deducting all of its liabilities. Incremental costs directly attributable to the
issuance of new equity shares are recognized as a deduction from equity, net of any tax
effects.
2.7 Impairment of Assets
a) Non-financial assets
Property, plant and equipment are evaluated for recoverability whenever events or changes in
circumstances indicate that the carrying amounts may not be recoverable.
An impairment loss is recognized for the amount by which the carrying amount of the asset
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use.
For the purpose of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash flows (cash-generating units).
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.
These calculations are corroborated by valuation multiples, quoted share prices for publicly
traded companies or other available fair value indicators.
If at the balance sheet date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the impairment loss previously
recognized is reversed such that the asset is recognized at its recoverable amount but not
exceeding written down value which would have been reported if the impairment loss had not
been recognized.
Financial assets
The Company recognizes loss allowances using the expected credit loss (ECL) model for the
financial assets which are not fair valued through profit or loss.
ECL impairment loss allowance is measured at an amount equal to lifetime ECL.
ECL impairment loss allowance (or reversal) recognized during the period is recognized as
income or expense in the Statement of Profit and Loss. This amount is reflected under the
head “Other expenses” in the profit or loss. ECL is presented as an allowance, i.e. as an
integral part of the measurement of those assets in the Balance sheet. The allowance reduces
the net carrying amount. Until the asset meets write-off criteria, the Company does not
reduce impairment allowance from the gross carrying amount.
2.8 Inventories
There were no inventories for the period under audit.
2.9 Revenue recognition
2.9.1 Sale of goods
The Company recognizes revenue from contracts with customers based on a five step model
as set out in Ind AS 115, Revenue from Contracts with Customers, to determine when to
recognize revenue and at what amount. However at present the company does not have any
active business involving manufacturing and trading.
Further Income from Interest on loans, deposits, dividends etc., are recognised as follows
2.9.2 Interest income
Interest income on a financial asset at amortised cost is recognised on a time proportion
basis taking into interest rate (‘EIR’).
2.9.3 Dividend Income
Dividend income is accounted for when Company's right to receive the income is established.
2.10 Leases
The determination of whether an arrangement is (or contains) a lease is based on the
substance of the arrangement at the inception of the lease. The arrangement is, or contains,
a lease if fulfilment of the arrangement is dependent on the use of a specific asset and the
arrangement conveys a right to use the asset even if that right is not explicitly specified in an
arrangement.
a) When the Company is a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease.
Whenever the term of the lease transfer substantially all the risks and rewards of ownership
to the lessee, the contract is classified as a finance lease. All other leases are classified as
operating leases.
Measurement and recognition of leases as a lessee
With effect from April 1, 2019 the Company has adopted Ind AS 116, Leases using the
modified retrospective approach. Ind AS 116 - Leases introduces a single, on- balance sheet
laese accounting model for lessees.
A lessee recognises a right-of-use asset representing its right to use the underlying asset and
a lease liability representing its obligation to make lease payments. There are recognition
exemptions for short-term leases and leases of low-value items.
Lessor accounting remains similar to the current standard - i.e. lessors continue to classify
leases as finance or operating leases It replaces existing leases guidance, Ind AS 17, Leases.
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of
Ind AS 116. Identification of a lease requires significant judgement. The Company uses
significant judegment in assessing the lease term (including anticipated renewals) and the
applicable discount rate.
However the company does not have any lease contracts as a lessee, hence there is no
impact in the financial statements of the Company.
2.11 Employee benefits
a) Short-term employee benefits
Short-term employee benefits in respect of salaries and wages, including non-monetary
benefits are recognised as an expense at the undiscounted amount in the Statement of Profit
and Loss for the year in which the related service is rendered.
b) Defined contribution plans
Payments to a defined contribution benefit scheme for eligible employees in the form of
superannuation fund are charged as an expense as they fall due. The Company does not
carry any further obligation, apart from the contributions made.
c) Defined benefit plans
The Company does not have any obligation, towards defined benefit plans
2.12 Segment Reporting
As mentioned in note no 1 "Company Information" the Company does not have any trading
or industrial business. Further the company has adopted new business of lending and
investments hence as such there are no separate reportable segments as per Indian
Accounting Standard "Operating Segments” (Ind AS 108).
2.13 Income tax
Income tax expense comprises current tax and deferred tax and is recognized in the
Statement of Profit and Loss except to the extent it relates to items directly recognized in
Equity or in OCI.
a) Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at
the amount expected to be recovered from or paid to the taxation authorities using the tax
rates and tax laws that are enacted or substantively enacted by the balance sheet date and
applicable for the period.
Current tax items in correlation to the underlying transaction relating to OCI and Equity are
recognized in OCI and in Equity respectively.
Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
The Company offsets current tax assets and current tax liabilities, where it has a legally
enforceable right to set off the recognized amounts and where it intends either to settle on a
net basis or to realise the assets and settle the liabilities simultaneously.
b) Deferred income tax
Deferred income tax is recognized using the balance sheet approach. Deferred income tax
assets and liabilities are recognized for deductible and taxable temporary differences arising
between the tax base of assets and liabilities and their carrying amount in financial
statements, except when the deferred income tax arises from the initial recognition of
goodwill or an asset or liability in a transaction that is not a business combination and
affects neither accounting nor taxable profits or loss at the time of the transaction.
Deferred tax assets are recognized for deductible temporary differences, the carry forward of
unused tax credits and any unused tax losses to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred tax assets to be utilised. Unrecognised deferred
tax assets are re-assessed at each balance sheet date and are recognised to the extent that it
has become probable that future taxable profits will allow the deferred tax asset to be
recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in
the year when the asset is realised or the liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to
set off deferred tax assets against deferred tax liabilities and the deferred taxes relate to the
same taxable entity and the same taxation authority.
2.14 Provisions, contingent liabilities and contingent assets
a) A provision is recognized if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. Provisions are not recognised for
future operating losses. If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at current pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the liability.
When discounting is used, the increase in the passage of time is recognized as finance costs.
The amount recognized as a provision is the best estimate of the consideration required to
settle the present obligation as at the balance sheet date, taking into account the risks and
uncertainties surrounding the obligation. When some or all of the economic benefits required
to settle a provision are expected to be recovered from a third party, the receivable is
recognized as an asset, if it is virtually certain that reimbursement will be received and the
amount of the receivable can be measured reliably. The expense relating to provision is
presented in the Statement of Profit and Loss, net of any reimbursement.
b) A contingent liability is not recognised in the financial statements, however, is disclosed,
unless the possibility of an outflow of resources embodying economic benefits is remote. If it
becomes probable that an outflow of future economic benefits will be required for an item
dealt with as a contingent liability, a provision is recognized in the financial statements of the
period (except in the extremely rare circumstances where no reliable estimate can be made).
c) A contingent asset is not recognised in the financial statements, however, is disclosed,
where an inflow of economic benefits is probable. When the realisation of income is virtually
certain, then the related asset is no longer a contingent asset, and is recognised as an asset.
d) Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet
date.
2.15 Dividend
Final dividend (if declared) on shares is recorded as a liability on the date of approval by the
shareholders and interim dividends (if declared) are recorded as a liability on the date of
declaration by the Company's Board of Director's
2.16 Earnings per Share
a) Basic earnings per share are computed by dividing the net profit/(loss) after tax by the
weighted average number of equity shares outstanding during the year.
b) Diluted earnings per share are computed by dividing the net profit/(loss) after tax by the
weighted average number of equity shares considered for deriving basic earnings per share
and also the weighted average number of equity shares which could be issued on the
conversion of all dilutive potential equity shares.
2.17 Cash and cash equivalents
Cash and cash equivalents in the Balance sheet comprise cash on hand, cheques on hand,
balance with banks on current accounts and short term, highly liquid investments with an
original maturity of three months or less if any and which carry insignificant risk of changes
in value.
For the purpose of the Cash Flow Statement, Cash and cash equivalents consist of Cash and
cash equivalents, as defined above and net of outstanding book overdrafts (if any) as they are
considered an integral part of the Company’s cash management.
2.18 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit/loss before tax is adjusted
for the effects of transactions of a non-cash nature, any deferrals or accruals of past or
future operating cash receipts or payments and item of income or expenses associated with
investing or financing flows. The cash flows from operating, investing and financing activities
of the Company are segregated.
Note No. 3.
3(a). Recent Pronouncements
Ministry of Corporate Affairs notification dated 31st March, 2023 notified Companies (Indian-
Accounting Standards) Amendment Rules, 2023(the ‘Rules’) which amends certain
accounting standard. The Rules predominantly amend Ind AS 12, Income taxes, and Ind AS
1, presentation of financial statements. The other amendments to Ind AS notified by these
rules are primarily in the nature of clarifications. These amendments are not expected to
have a material inpact on the Company in the current or future reporting periods and on
foreseeable future transactions. Specifically, no changes would be necessary as a
consequence of amendments made to Ind AS12 as the Company’saccounting policy already
complies with the now mandatory treatment.
The ultimate realization of the deferred tax assets, carried forward losses and unused tax
credits is dependent upon the generation of future taxable income during the periods in
which the temporary difference become deductible. Management considers the scheduled
reversals of deferred tax liabilities, projected future taxable income and the planning
strategies in making this assessment. Based on the historical taxable income and projection
of future taxable income over the periods in which the deferred tax assets are deductible,
management believes that the Company will realize the benefits of those recognized
deductible differences, carried forward losses and portion of unused tax credits.
a) Inter-corporate and other loans are unsecured and generally receivable on demand and
are for general business purposes, as lending is the primary business of the company. Since
loans are generally of short duration and repayable on demand hence transaction value
approximates the fair value.
b) There are no debts and loans due by directors or other officers of the company either
severally or jointly with any other person or debts due by firms or private companies
respectively in which any director is a partner or a director or a member.
c) Impairment of loans are on actual basis, further loss allowance for previous year is made
as per general approach if any.
Note No. : 27 Other disclosures
Additional Regulatory Information
Amended Schedule III of the Companies Act 2013 requires additional regulatory information to be
provided in financial statements. These are as follows;
1) Title deeds of Immovable Property
Title deeds of immovable properties in the case of freehold land, (for description refer note no 4) are held in the
name of the Company.
2) Fair valuation of Investment property
The company has not classified any property as Investment property, hence fair valuation of Investment
property by a registered valuer as defined under Rule 2 of Companies (Registered Valuers and Valuation) Rules,
2017 does not arise.
3) Revaluation of Property, Plant and Equipment and Right -of- Use Assets.
The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during
the current reporting period and also reporting period and also for previous year's reporting period.
4) Loans or advances to specified persons
The Company has not granted any loans or advances 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 (a) repayable
on demand, or (b) without specifying any terms or period of repayment.
5) Capital Work in Progress
There was no capital work in progress during the Financial Year 2024-2025 and no amount was spent on this
account upto 31-03-2025.
6) Intangible Assets under development
The Company does not have any intangible assets under development during the current and previous year
reporting period.
7) Details of Benami Property held: Additional Disclosure
The Company does not hold any Benami Property and hence there were no proceedings initiated or pending
against the Company for holding any benami property under the Benami Transactions (Prohibitions) Act, 1988
and the Rules made thereunder, hence no disclosure is required to be given as such.
8) Borrowings secured against current assets
The Company does not have any borrowings from banks or financial on the basis of security of current assets
(except lien on Bank Fixed Deposits for availing temporary overdraft facilities - Refer Note - 6 on Accounts)
hence no disclosure is required as such on this account.
9) Willful Defaulter
The Company has not been declared as willful defaulter as at the date of the balance sheet or on the date of
approval of the financial statements, hence no disclosure is required as such.
10) Relationship with Struck off Companies
The Company does not have any transactions with Companies which are struck off under Section 248 of the
Companies Act, 2013 or Section 560 of the Companies Act, 1956, hence no disclosure is required as such.
11) Registration of Charges or Satisfaction with Registrar of Companies (ROC)
There are no charges against the companies which are yet to be registered or satisfaction yet to be registered
with ROC beyond the statutory period, hence no disclosures are required as such.
12) Compliance with number of layers of companies
The Company does not have investment in any downstream companies for which it has to comply with the
number of layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with Companies
(Restriction on number of layers) Rules, 2017, hence no disclosure is required as such.
13) Utilization of Borrowings
The Company does not have any outstanding balances towards the borrowings from banks and financial
institutions at the balance sheet date, hence no further disclosure is required as such.
14) Utilization of Borrowed Funds and Share Premium
(A) The Company has not advanced or loaned or invested funds (either borrowed funds or Share premium or any
other sources or kind of funds) 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;
a. Directly or indirectly lent or invest in other person(s) or entity (ies) 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. Hence no disclosure
is required as such.
(B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Parties) with the understanding (whether recorded in writing or otherwise ) that the company
shall;
a. Directly or indirectly lend or invest in other person(s) or entity(ies) identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) Or
b. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries. Hence no disclosure
is required as such.
15) Undisclosed Income
The Company does not have any undisclosed Income which was not recorded in the books of accounts and which
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. Also the Company does not have previously
unrecorded income and related assets which were required to be properly recorded in the books of accounts
during the year.
16) Details of Crypto Currency Or Virtual Currency
The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year, hence
disclosure requirements for the same is not applicable.
17) Corporate Social Responsibility Activities
The provisions of section 135 of the companies act, 2013 with respect to Corporate Social Responsibility
activities are not applicable to the company for the Financial Year 2024-2025.
(2) The Company uses the following fair value hierarchy for determining and disclosing the fair value
of financial instrument:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of
investment in quoted equity shares
Level 2:Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.
Level 3:Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Fair values are determined in whole or in part, using a valuation model based on assumptions that are
neither supported by prices from observable current market transactions in the same instrument nor
are they based on available market data. This level of hierarchy includes Company's investment in
equity shares which are unquoted or for which quoted prices are not available at the reporting dates.
There have been no transfers between Level 1 and Level 2 either during the year ended 31stMarch
2025 or during the year ended 31st March 2024.
(i) Investments carried at fair value are generally based on market price quotations. These investments in equity
instruments are not held for trading. Instead, they are held for long term strategic purpose. The Company
has chosen to designate these investments in equity instruments at FVOCI since; it provides a more
meaningful presentation. Cost of certain investments in equity instruments have been considered as an
appropriate estimate of fair value because of wide range of possible fair value measurements and cost
represents the best estimate of fair value within that range.
(ii) Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, loans and other
current & Non-current financial assets, and other current financial liabilities approximate their carrying
amounts due to the short term maturities of these instruments.
(iii) Management uses its best judgment in estimating the fair value of its financial instruments. However, there
are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the
fair value estimates presented above are not necessarily indicative of the amounts that the Company could
have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments
subsequent to the reporting dates may be different from the amounts reported at each reporting date.
3) Financial risk management objectives and policies
The Company does not have financial liabilities for the current reporting period except for certain non -fund
based Bank overdraft. The Company's principal financial assets include Cash and cash equivalents, loans
repayable on demand, fixed deposits with banks and other financial assets including investments in equity
and private funds.
The Company is exposed to liquidity risk & market risk The company's Senior management under the
supervision of Board of Directors oversees the management of these risks. The senior management provides
assurance that the Company's financial risk activities are governed by appropriate policies and procedures
and that financial risks are identified, measured and managed in accordance with the Company's policies and
risk objectives.
(a) 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 comprises of interest rate risk, credit risks and other risks, such as
regulatory risk and country risk.
(b) Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company's exposure to the risk of changes in market
interest rates relates primarily to the Company's obligations towards Bank overdraft with floating interest
rates. But since it is for short duration it doesn't cast significant risk owing to this exposure. To mitigate the
interest rate risk, the Company maintains an impeccable track record and ensures long term relation with
the lenders to raise adequate funds at competitive rates. Company has access to low cost borrowings,
because of its healthy balance sheet and presently the company does not have any borrowings as on the
reporting date.
(c) Risk is inherent in every business activity and the company is no exception. The company is exposed to
risks from overall market, changes in Government policies, law of the land and taxation to name a few.
(d) Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The impairment for financial assets are based on assumptions
about risk of default and expected loss rates. The Company uses judgement in making these assumptions
and selecting the inputs to the impairment calculation, based on the Company's past history, existing
market conditions as well as forward looking estimates at the end of each balance sheet date. Financial
assets are written off when there is no reasonable expectation of recovery, however, the Company
continues to attempt to recover the receivables. Where recoveries are made, these are recognised in the
Statement of Profit and Loss Based on Company's past history and the model under which company
operates doesn't cast significant credit risk leading to impairment of its financial assets. In case of loans the
company applies general approach to measure the expected credit loss.
(e) Balances with banks
Credit risk from balances with banks is managed in accordance with the Company's policy.
4) Capital Management
The Company's capital management is intended to create value for shareholders by facilitating the meeting
of long term and short term goals of the Company.
The Company determines the amount of capital required on the basis of annual business plan coupled with
long term and short term Strategic investments and expansion plans.
At present the Company is non-operational in Industries and the Company has deployed its funds in shares
and securities and with bank fixed deposits and by providing loans. Further the management of the
company is evaluating the future business plans either in the same or in different industry.
For the purpose of the Company's capital management, capital includes issued equity capital, securities
premium and all other equity reserves attributable to the equity shareholders of the Company. The
Company's objective when managing capital is to safeguard its ability to continue as a going concern so
that it can continue to provide returns to shareholders and other stake holders. The Company manages its
capital structure and makes adjustments in light of changes in the financial condition and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims
to ensure that it meets financial covenants if any from time to time.
5) Previous period figures have been re-grouped/ re-classified wherever necessary, to confirm to
current period's classification and in order to comply with the requirements of the amended
Schedule III to the Companies Act, 2013 effective.
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