2.15 Provisions, contingent liabilities and contingent assets
Provisions are recognized only when:
(i) an entity has a present obligation (legal or constructive) as a result of a past event; and
(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
(iii) a reliable estimate can be made of the amount of the obligation Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.
Contingent liability is disclosed in case of:
(i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and
(ii) a present obligation arising from past events, when no reliable estimate is possible. Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date. Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognized and measured as a provision.
Contingent assets are not recognized in the financial statements.
2.16 Write off
The gross carrying amount of a financial asset is written-off (either partially or in full) to the extent that there is no reasonable expectation of recovering the asset in its entirety or a portion thereof. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off.
2.17 Leases
The Company has adopted Ind-AS 116 - Leases and applied it to all lease contracts entered. Based on the same and as permitted under the specific transitional provisions in the standard, the Company is not required to restate the comparative figures.
All leases are accounted for by recognizing a right-of-use asset and a lease liability except for:
- Leases of low value assets; and
- Leases with a duration of 12 months or less The following policies applied-
Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the Company's incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate.
Right-of-use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:
- initial direct costs incurred; and
- the amount of any provision recognized where the Company IS contractually required to dismantle.
Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortized on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term.
2.18 Statement of Cash Flows
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method adjusting the net profit for the effects of: (i.) changes during the period in operating receivables and payables transactions of a non-cash nature; (ii.) non-cash items such as depreciation, provisions, deferred taxes, unrealized foreign currency gains and losses, and undistributed profits of associates and joint ventures; and (iii.) all other items for which the cash effects are investing or financing cash flows. Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as on the date of Balance Sheet.
33 ADDITIONAL DISCLOSURES UNDER SCHEDULE III DIVISION III PART 1
A. There are no trade receivables in the books of accounts therefore aging schedule not applicable in this financial year.
B. There are no trade payables in the books of accounts therefore aging schedule not applicable in this financial year. _ _
C. There are no CWIP in the finacial year ended March 31, 2024, therefore aging schedule not applicable in this financial year.
D. There are no intangible assets under development exist in the finacial year ended March 31, 2024, therefore aging schedule not applicable in this financial year.
Part - II - Other Disclosures
A) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
B) Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
C) As per the information available, the company has no transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
D) There has been no charges or satisfaction yet to be registered with ROC beyond the statutory period.
E) Compliance with number of layers of companies (Company does not have any subsidary company in the FY 23-24 and FY 22-23.
F) Compliance with approved Scheme(s) of Arrangements- No scheme of Arrangements has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies
Act, 2013 in the last FY 23-24 and FY 22-23.
G) The company being a non-banking finance company, as part of its normal business, grants loans and advances to its customers, ensuring adherence to all regulatory requirements. Further, the company has borrowed funds from banks, financial institutions, other than the transactions described above,no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources/kind of funds) by the company to or in any other persons or entities, including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the comapny (Ultimate Beneficiaries). The company has not received any funds from parties (Funding Party) with the understanding that the company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
H) CSR is applicable from Financial year 2024-25
I) Company has not traded or invested in Crypto currency or Virtual Currency during the financial year ended March 31, 2024.
37. The Previous year figure have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosure for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.
M/s RAJ GUPTA & CO. For and on behalf of the Board of Directors
CHARTERED ACCOUNTANTS F.R NO. 000203N
Vinay Kumar Chawla Krishan Kumar
Whole Time Director Director
Sandeep Gupta DIN: 02618168 DIN:00004181
(PARTNER)
M.No 529774
06th May 2024 Sunil Gupta Anupriya Ojha
Place : Delhi Chief Financial Officer Company Secretary
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