3.14. Provisions, contingent liabilities and contingent assets

The Company creates a provision when there is a present obligation as a result of past events
and it is probable that there will be outflow of resources and a reliable estimate of the
obligation can be made of the amount of the obligation. Contingent liabilities are not
recognised but are disclosed in the notes to the Standalone Ind-AS financial statements. 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 the likelihood of outflow of
resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best
estimate. If it is no longer probable that the outflow of resources would be required to settle
the obligation, the provision is reversed.

Contingent assets are not recognised nor disclosed in the Standalone Ind-AS financial
statements.

3.15. Employee Benefits Expenses

3.15.1. Short Term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange
for the services rendered by employees are recognised as an expense during the period when
the employees render the services.

3.15.2. Post-Employment Benefits
A. Defined Benefit schemes
Leave Encashment

The company has not provided leave encashment as the employees are not entitled for that
due to availment of leaves & there are no pending dues in this account.

Provident Fund

The company has not provided the provident Fund & ESI as the company is not covered
under E.P.F. & ESI Act.

Gratuity

The Company provides for gratuity covering eligible employees under which a lump sum
payment is paid to vested employees at retirement, death, incapacitation or termination of
employment, of an amount reckoned on the respective employee's salary and his tenor of
employment with the Company.

The provision of gratuity is being made on the basis of 15 days salary of completed years of
service of employees. The management does not see any need of actuarial valuation of the
same as the numbers of employees are very few.

3.16. Taxes

Income tax expense represents the sum of current tax and deferred tax

3.16.1 Current Tax

Provision for current tax is made after taking into consideration benefits admissible under
the provisions of the Income Tax Act, 1961. Minimum Alternative Tax (MAT) credit
entitlement is recognised when there is convincing evidence that the same can be realised in
future.

3.16.2 Deferred tax

The recognition of deferred tax assets is based upon whether it is more likely that not that
sufficient and suitable taxable profit will be available in the future against which the
temporary differences can be deducted. To determine the future taxable profits, reference is
made to the latest available profit forecasts. Where the temporary differences are related to
losses, relevant tax law is considered to determine the availability of the losses to offset
against the future taxable profits. Recognition therefore involves judgement regarding the
future financial performance of the particular legal entity or tax group in which the deferred
tax asset has been recognised.

3.17. Earnings Per Share

The Company reports basic and diluted earnings per share in accordance with Ind-AS 33 on
Earnings per share. Basic EPS is calculated by dividing the net-profit or loss for the year
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year.

For 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.

3.18. Cash-flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for
the effects of transactions of a non-cash nature and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.

4. Significant accounting judgements, estimates and assumptions, Fair Value
Measurement

The preparation of standalone financial statements in conformity with the Ind-AS requires
the management to make judgments, 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 on-going basis.

Revisions to accounting estimates are recognised in the period in which the estimates are
revised if the revision affects only that period or in the period of the revision and future
periods if the revision affects both current and future periods. 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
judgments in applying accounting policies that have the most significant effect on the
amounts recognized in the financial statements is included in the following notes:

4.1. 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.
This assessment includes judgement reflecting all relevant evidence including how the
performance of the assets is evaluated and their performance measured, the risks that affect
the performance of the assets and how these are managed and how the managers of the
assets are compensated. 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 washed. 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 and so prospective change to the classification of those
assets.

4.2. Effective Interest Rate (EIR) method

The Company's EIR methodology, recognises interest income using a rate of return that
represents the best estimate of a constant rate of return over the expected behavioural life of
loans given 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, probable fluctuations in collateral value as well
as expected changes to India's base rate and other fee income/expense that are integral parts
of the instrument

4.3. Impairment of financial assets using expected credit loss method

The impairment provisions 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 history,
existing market conditions as well as forward looking estimates at the end of each reporting
period.

4.4. 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 judgment is required in
establishing fair values. Judgments 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.

4.5. Other estimates:

Under the erstwhile Companies Act 1956, general reserve was created through an
annual transfer of profit for the period at a specified percentage in accordance with
applicable regulations. Consequent to introduction of Companies Act 2013, the
requirement to mandatorily transfer a specified percentage of the net profit to general
reserve has been withdrawn. However, the amount previously transferred to the general
reserve can be utilised only in accordance with the specific requirements of Companies
Act, 2013.

Statutory reserve

Statutory Reserve represents the Reserve Fund created under Section 45 IC of the
Reserve Bank of India Act, 1934. Accordingly an amount representing 20% of Profit for
the period is transferred to the fund for the year.

Retained earnings

This Reserve represents the cumulative profits of the Company. This Reserve can be
utilized in accordance with the provisions of the Companies Act, 2013.

FVOCI equity investments

The company has elected to recognise changes in the fair value of certain investments in
equity securities in other comprehensive income. These changes are accumulated within
the FVOCI equity investments reserve within equity. The company transfers amounts
from this reserve to retained earnings when the relevant equity securities are
derecognised.

30. lue Measurement

a) Fair Value Hierarchy

The Company determines fair value of its financial instruments according to following
hierarchy:

Level 1: Category includes financials assets and liabilities that are measured in whole or
significant part by reference to published quotes in an active market

Level 2: Category includes financials assets and liabilities that are measured using a
valuation technique based on assumptions that are supported by prices from observable
current market transactions. Company's investment in units of AIF funds fall under this
category.

Level 3: Category includes financials assets and liabilities that are measured using valuation
techniques based on non- market observable inputs. This means that fair value 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.

An explanation of each level follows underneath the table:

As at March 31, 2024 (Rupees in hundreds)

31. Payment against supplies from small scale and ancillary undertaking are made in
accordance with agreed credit terms and to the extent as ascertained from available
information, there was no amount overdue as at March 31, 2024.

32. Previous year figures have been regrouped and / or rearranged wherever found
necessary.

33. As per RBI prudential norms additional disclosures applicable on NBFC's,

a) The Company has obtained certificate of registration under section 45-IA of Reserve
Bank of India Act, 1934.

b) The Company is entitled to continue to hold such COR in terms of principal business
criteria (Financial Assets/Income Pattern) as on March 31, 2024.

c) The company has a net owned fund of Rs. 2445.99Lakhs which meet the minimum
requirement of net owned fund of Rs 200.00 lakhs as laid down by the regulations of
Reserve Bank of India.

d) The company is in compliance with the minimum CRAR i.e. 15 % as laid down by
the bank.

34. The Company has not traded or invested in Crypto currency or Virtual currency
during the financial years ended March 31, 2024 and March 31, 2023.

35. No proceedings have been initiated or pending against the Company for holding any
became property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and rules made thereunder in the financial years ended March 31, 2024 and March
31, 2023.

36. The Company has not been declared as a wilful defaulter by any bank or financial
institution or other lender in the financial years ended March 31, 2024 and March 31,
2023.

As per our report of even date attached

For Gupta & Shah For and on behalf of the Board of Directors

Chartered Accountants
FRN NO: 001416C

Sudhir Kumar Parasrampuria

CA Sharad Kumar Shah Parwati Parasrampuria

^(Partner) Director Managing Director

Membership No. 070601 DIN: 00358982 DIN: 00359065

Rakesh Panwar
Company