viii. Provisions and contingent Liabilities: - Provisions are recognized when there is a
present legal or constructive obligation as a result of a past events. It is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation
and there is a reliable estimate of the amount of the obligation.
Contingencies: - Contingent liabilities are disclosed in the Notes to the financial
statements when:-
Ý There is a possible obligation arising from past events, the existence of which will
be confirmed only by the occurrence or non-occurrence of uncertain future events
not wholly within the control of the Company, or
Ý A present obligation that arises from past events where it is probable that an outflow
of resources will be required to settle the obligation or a reliable estimate of the
amount cannot be made.
ix. Statutory Dues:- All Statutory dues, taxes, and regulatory compliances applicable to the
Company have been appropriately complied with, accounted for, and disclosed. The dues
of Income Tax and other statutory dues on account of any dispute are as follows:-
x. Cash Flow Statement: Cash flows are reported using the indirect method prescribed
in Ind AS 7 ‘Statement of Cash Flows’ whereby profit/(loss) before extraordinary items
and tax is adjusted for the effects of transactions of non-cash nature. Cash flow from
operating, investing and financing activities of the Company are segregated based on
the available information.
xi. Loan and Advances: - Balances of Loans and Advances, are confirmed as at Balance
Sheet date.
xii. Accounting for GST :- The Company is recording sales and purchases on exclusive
method and GST are not passed through the profit and Loss accounts of the company.
The Effect of Indirect Taxes (GST) on Sales will be as = Gross Sales (-) GST = Net
Sales
xiv. Estimates and Assumptions: The key assumptions concerning the future and other
key sources of estimation at the reporting date, which may cause material adjustment to
the carrying amounts of assets and liabilities within the next financial year.
The Company has based its assumptions and estimates on parameters available when
the financial statements were prepared. Existing circumstances and assumptions about
future developments may change due to market changes or circumstances arising that are
beyond the control of the company. Such changes would be reflected in the assumptions
when they occur.
The areas involving critical estimates and judgements are:-
Ý Useful life of Property, Plant and Equipment and Intangibles.
Ý Measurement of defined benefit obligation.
Ý Provision for Loans & Advances
Ý Measurement of likelihood of occurrence of provisions and contingencies
- Deferred Taxes.
xv. Dividend:- The company has not declared any dividend to public shareholders.
As per our report of even date.
b) Terms and rights attached to Equity Shares
The company has only one class of equity shares having a par value of Rs. 10 per share. Accordingly, all equity shares rank
equally with regard to dividends and share in the Company's residual assets. The equity shares are entitled to receive
dividend as declared from time to time. The voting rights of and equity shares holder in a poll ( not on show of hand) are
in proportion to its share of the paid-up equity capital of the company.
- During the year ended 31st March, 2026 the Company has not declared any dividend.
- On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the
company, remaining after distribution of all preferential amounts in proportion to the number of equity share held.
a) Retained earnings_
Retained earnings or accumulated surplus represents total of all profits retained since Company's inception.
Retained earnings are credited with current year profits, reduced by losses, if any, dividend payouts, transfers
to General reserve or any such other appropriations to specific reserves.
b) Special Reserve under Section 45 IC of RBI Act, 1934_
This is a Statutory Reserve created in accordance with Section 45 IC(1) of the RBI Act, 1934 which requires the
Company to transfer a specified sum (not less than 20% of its profit after tax) to Reserve Fund based on its net
profit as per the profit and loss account. As per Section 45 IC(2) of the RBI Act, 1934, no appropriation of any
sum from this reserve fund shall be made by the Company except for the purpose as may be specified by RBI.
Basic EPS is calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number
of equity shares outstanding during the year.
Diluted EPS is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of equity
shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the
dilutive potential equity shares into equity shares of the Company.
(a) Defined Contribution Plan
The Company's contribution to Provident Fund and Employee State Insurance Scheme are considered as defined contribution plans. The
Company's contribution to Provident Fund and Employee State Insurance Scheme aggregating Rs. 11.17 lakhs (March 31, 2025: Rs. 7.98 lakhs) has
been recognised in the statement of profit and loss under the head employee benefits expense.
(b) Defined Benefit Plan: Gratuity
Financial assets not measured at fair value
The Company operates a defined benefit plan (the "gratuity plan") covering eligible employees. The gratuity plan is governed by the Payment of
Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided
depends on the member's length of service and salary at retirement age/ resignation date. Calculation of provision of gratuity is taken from the
Acturial Valuation Report of Gratuity for the financial Year 2025-26.
Note 31 - Segment Reporting
The Company is exclusively engaged in the business of financial activiites which includes trading and investment in shares, granting of
loans, etc., since the nature of these business are exposed to similar risks and return profiles, hence they are collectively operating under a
single segment. Accordingly the Company does not have any reportable Segments as per Indian Accounting Standard 108 "Operating
Segments".
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Note 32 - Corporate Social Responsibility (CSR) expenses:
As per Section 135 of the Companies Act, 2013, the Company is required to comply with the CSR requirements which is
formation of the CSR committee, identification of the CSR projects and funding such projects for at least two percent of
the average net profits of the Company made during the three immediately preceding financial years. During the Financial
year Company falls in the CSR Activities. As per Current Year Financial Statements CSR applicability has arisen from the
Financial Year 2024-25. We have given below Section 198 average net profit workings supporting the 'Nil' FY26
requirement for CSR.
Note 33 -Related party disclosure as per Indian Accounting Standard (Ind AS) - 24:
Transactions with Related Parties are done on arms length basis and these are in normal course of business . (a) Necessary approval from Board and Audit
Committee under Section 188 and SEBI LODR Reg. 23 for the RPT loans have been taken . (b) the loan terms are on arm's length/normal commercial terms
comparable to unrelated borrowers.
Valuation Principle
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or
most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that
price is directly observable or estimated using a valuation technique. In order to show how fair values have been derieved, financial
instruments are classified based on a hierarchy of valuation techniques.
Fair Value Hierarchy
This section explains the judgments and estimates made in determining the fair value of the financial instrument that are (a) recognized
and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To
provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial
instruments into three levels prescribed under the accounting standard. The valuation technique used is Carrying Vaue which acts as a
resonable proxy for fair value because the discounting effect is immaterial. An explanation of each level follows underneath table:
Level 1 : Level 1 hierarchy includes financial instruments measured using unadjusted quoted prices in active markets that the Company has
the ability to access for the identical assets or liabilities. A financial instrument is classified as a Level 1 measurement if it is listed on an
exchange. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity
instruments which are traded in the stock exchanges are valued using the closing price as at the reporting period. The mutual funds are valued
at the closing NAV.
Level 2 : The fair value of financial instruments that are not traded in active markets is determined using valuation techniques which maximize
the use of observable market data either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets, for
substantially the full term of the financial instrument but do not qualify as Level 1 inputs. If all significant inputs required to fair value an
instrument are observable the instrument is included in level 2.
Level 3 : If one or more of the significant inputs is not based in observable market data, the instruments is included in level 3. That is, Level 3
inputs incorporate market participants assumptions about risk and the risk premium required by market participants in order to bear that risk.
The Company develops Level 3 inputs based on the best information available in the circumstances.
Financial instruments valued at carrying value
The respective carrying values of certain on-balance sheet financial instruments approximated their fair value. These financial instruments
include cash in hand, balances with Banks, financial institutions and money at call and short notice, accrued interest receivable, acceptances,
deposits payable on demand, accrued interest payable, and certain other assets and liabilities that are considered financial instruments.
Carrying values were assumed to approximate fair values for these financial instruments as they are short-term in nature and their recorded
amounts approximate fair values or are receivable or payable on demand.
Financial instruments recorded at fair value
There are no financial instruments held at FVTPL or FVOCI.
Fair value of financial instruments carried at amortised cost
Loans and advances
The fair values of loans that do not reprice or mature frequently are estimated using discounted cash flow models. The discount rates are
based on the movement in yield curve from the loan origination till reporting date. For the purposes of level disclosures loans and advances
are categorized under Level 3. The Level 3 loans would decrease (increase) in value based upon an increase (decrease) in discount rate. Since
substantially all individual lines of credit and other variable rate loans reprice frequently, with interest rates reflecting current market pricing,
the carrying values of these loans approximate their fair values.
The Company maintains an actively managed capital base to cover risks inherent in the business and is meeting the capital adequacy
requirements of the local banking supervisor, RBI. The adequacy of the Company's capital is monitored using, among other measures,
the regulations issued by RBI.
The Company has complied in full with all its externally imposed capital requirements over the reported period. Equity share capital and
other equity are considered for the purpose of Company's capital management.
C.1 Capital Management
The primary objectives of the Company's capital management policy are to ensure that the Company complies with externally imposed
capital requirements and maintains strong credit ratings and 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. No changes have been made to the objectives,
policies and processes from the previous years. However, they are under constant review by the Board.
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. The board of directors has established the Risk Management Committee, which is responsible for
developing and monitoring the Company's risk management policies. The committee reports regularly to the board of directors
on its activities.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and
management standards and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations.
The audit committee oversees how management monitors compliance with the Company's risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The
audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk
management controls and procedures, the results of which are reported to the audit committee.
Cash and cash equivalents_
Cash and cash equivalents include balance maintained in Bank by Company in current accounts._
Collateral Held_
The Company's financial asset portfolio comprises both secured and unsecured exposures. Where considered appropriate based on the nature of
the exposure and the Company's credit risk assessment, financial assets are secured by collateral in the form of security deposits, bank guarantees,
liens on liquid investments, and other forms of collateral security
"Collateral securing an individual financial asset may not always be sufficient to fully cover the carrying value of the related financial asset.
Accordingly, all borrowers and counterparties are required to satisfy the Company's internal credit assessment and approval procedures,
irrespective of whether the financial asset is secured or unsecured."
Measurement of Expected Credit Losses_
The Company has applied a three-stage approach to measure expected credit losses (ECL) on financial assets accounted for at amortised cost and
FVOCI. Assets migrate through following three stages based on the changes in credit quality since initial recognition:
(a) Stage 1: 12- months ECL: For exposures where there is no significant increase in credit risk since initial recognition and that are not credit-
impaired upon origination, the portion of the lifetime ECL associated with the probability of default events occurring within the next 12- months is
recognized.
(b) Stage 2: Lifetime ECL, not credit-impaired: For credit exposures where there has been a significant increase in credit risk since initial recognition
but are not credit-impaired, a lifetime ECL is recognized.
(c) Stage 3: Lifetime ECL, credit-impaired: Financial assets are assessed as credit impaired upon occurrence of one or more events that have a
detrimental impact on the estimated future cash flows of that asset.
At each reporting date, the Company assesses whether there has been a significant increase in credit risk of its financial assets since initial
recognition by comparing the risk of default occurring over the expected life of the asset. In determining whether credit risk has increased
significantly since initial recognition, the Company uses information that is relevant and available without undue cost or effort. This includes the
Company's internal credit rating grading system, external risk ratings and forward-looking information to assess deterioration in credit qualityof a
financial asset.
Probability of Default (PD)_
The Company uses ratings issued by external credit rating agencies to determine the credit quality of its obligors. The Through the Cycle ("TTC")
Probability of Default (PD) has been obtained from the master PD scale published by the external rating agencies. Ind AS 109 requires Point in Time
("PIT") Probability of Default (PD). The PIT PDs are obtained by adjusting the TTC PD with forward-looking macro-economic variable using Single
Factor Vasicek approach.
Loss Given Default (LGD)_
For the computation of LGD, the regulatory LGD rates prescribed by RBI or basis the internal management assessment have been used. Loss Given
Default (LGD) is the percentage of a lender's exposure that is not expected to be recovered if a borrower defaults on a loan.LGD is essentially the
inverse of the anticipated recovery rate. It is evaluated after accounting for collateral liquidation, guarantees, and legal recovery processes, minus
any associated collection or administrative costs. (LGD = Exposure at Default (EAD) * (1 - Recovery Rate)
Exposure at default (EAD)_
Exposure at default is the total value an entity is exposed to when a obligor defaults on its financial asset. It is the predicted amount of exposure
that an entity may be exposed to when a borrower defaults. The outstanding principal, outstanding arrears reported as of the reporting date
adjusted for security deposit held in cash, cash collateral and the WDV of the leased asset (only in case of operating leases) for computation of ECL
is used as the EAD for all the portfolios.
Macroeconomic Scenarios_
In addition, the Company uses reasonable and supportable information on future economic conditions including macroeconomic factors: e.g. GDP
growth rate, Inflation rate, CPI etc. Incorporating these forward looking information increases the judgment as to how the changes in these
macroeconomic factor will affect Expected Credit Loss, the methodology and assumptions are reviewed regularly.
The Company sometimes renegotiates or otherwise modifies the contractual cash flows of advances to customers. When this happens, the
Company assesses whether or not the new terms are substantially different to the original terms. If the terms are substantially different, the
Company derecognises the original financial asset and recognises a 'new' asset at fair value and recalculates a new effective interest rate for the
asset. The date of renegotiation is consequently considered to be the date of initial recognition for impairment calculation purposes, including for
the purpose of determining whether a significant increase in credit risk has occurred.
If the terms are not substantially different, the renegotiation or modification does not result in de-recognition, and the Company recalculates the
gross carrying amount based on the revised cash flows of the financial asset and recognises a modification gain or loss in the statement of profit or
loss. The new gross carrying amount is recalculated by discounting the modified cash flows at the original effective interest rate (or credit-adjusted
effective interest rate for purchased or originated credit-impaired financial assets).
There are no financial assets restructured or modified during the current year._
B. Price Risk
(a) Exposure details_
The Company's exposure to equity securities price risk arises from investments held by the Company and classified in the
balance sheet as at fair value through profit or loss. As at reporting date, the company does not have any instrument which is
exposed to price risk.
To manage its price risk arising from investments in equity securities and mutual funds, the Company diversifies its portfolio.
Diversification of the portfolio is done in accordance with the limits set by the Company.
C. Interest rate risk_
The Company provides loans to customers on fixed rate and hence there is no interest rate risk on loan exposure. Borrowings
are at fixed rate and hence these are not expose to Interest rate risk.
Exposure to interest rate risk_
The interest rate profile of the Company's interest-bearing financial instruments as reported by the management is as
follows.
B. Other notes_
(i) As of March 31, 2026 there were no foreign currency exposures hedged by a derivative instrument or otherwise (March 31, 2025 :
NIL).
(ii) The Company does not have any long-term contracts where there are material foreseeable losses as on March 31, 2026 (March 31, I
2025 : NIL). The Company does not have any derivative contracts as on March 31, 2026 (March 31, 2025 : NIL).
(iii) There are no pending litigations against the company which affects its financial position as on March 31, 2026 (March 31, 2025 :
NIL).
(iv) The Company is not declared wilful defaulter by any bank or financial Institutions or other lender.
(v) The Company is not required to transfer any amount into the Investor Education & Protection Fund for the year ended March
31,2026 (March 31, 2025 : NIL).
(vi) There are no charges or satisfaction yet to be registered with ROC beyond statutory period. I
(vii) The Company has complied wih the number of layers prescribed under clause (87) of section 2 of the Act read with Companies I
(Restiction on number of Layers) Rules, 2017.
(viii) No Scheme of Arrangements has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act,
2013.
(ix) No transactions has been 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.
(x) The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.
(xi) There is no proceedings pending against the Company for holding any benami property under the Benami Transactions I
(Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
(xii) There are no transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies I
Act, 1956.
(xiii) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with
the books of accounts.
(xiv) The Company has complied with Companies Act 2013.
(xv) There is not breach of covenants in case of any loan availed or debt securities.
(xvi) The Company has not revalued Property, Plant and Equipment and Intangible assets during the
(xvii) 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 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 provide any guarantee, security or the like to or on
behalf of the Ultimate Beneficiaries.
(xviii) 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 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.
4 Total Public Funds: Includes funds raised either directly or indirectly through public deposits, inter-corporate deposits, bank
finance and all funds received from outside sources such as funds raised by issue of Commercial Papers, debentures etc. but
excludes funds raised by issue of instruments compulsorily convertible into equity shares within a period not exceeding 5
years from the date of issue.
5 Short Term Liability: Borrowings with original maturity of less than 12 months, except for ICDs.
E) Figures pertaining to the previous year's/period have been regrouped/rearranged, reclassified and restated wherever considered necessary, to make them
comparable with those of current year/period.
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