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.33(a). Recent Pronouncements
The Ministry of Corporate Affairs (“MCA”) notifies new standards or amendment to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time accordingly the
company has prepared the financial statements which are consistent with those followed in the
preparations of the Company's annual financial statements for the year ended March 31, 2026. The
Company has not early adopted any other standard, interpretation or amendment that has been issued but
is not yet effective.
aa) Amended Standards adopted by the Company
For the financial year ended March 31, 2026, the following amendment were made by the MCA and the
Company has applied for the first time during the current year which are effective from April 01, 2025; to
the extent applicable to the company.
l) Amendments to Ind AS 21- Lack of exchangeability
The amendment requires the Effects of Changes in Foreign Exchange Rates to specify how an entity should
assess whether a currency is exchangeable and how it should determine a spot exchange rate when
exchangeability is lacking. The amendments also require disclosure of information that enables users of its
financial statements to understand how the currency not being exchangeable into the other currency
affects, or is expected to affect, the entity’s financial performance, financial position and cash flows. The
amendments are effective for annual reporting periods beginning on or after April 1, 2025. When applying
the amendments, an entity cannot restate comparative information. The Company has reviewed this
amendment based on its evaluation has determined that it does not have any impact in its financial
statements.
2) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-Current and Non-current
Liabilities with Covenants
In August 2025, the MCA notified amendments to paragraphs 69 to 76 of Ind AS 1 to specify the
requirements for classifying liabilities as current or non-current. The amendments clarify: a) What is meant
by a right to defer settlement b) That a right to defer must exist at the end of the reporting period c) That
classification is unaffected by the likelihood that an entity will exercise its deferral right d) That only if an
embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not
impact its classification. In addition, a requirement has been introduced to require disclosure when a
liability arising from a loan agreement is classified as non-current and the entity’s right to defer settlement
is contingent on compliance with future covenants within twelve months. The amendments are effective for
annual reporting periods beginning on or after April 1, 2025 retrospectively in accordance with Ind AS 8.
3) Amendments to Ind AS 7 and Ind AS 107- Supplier Finance Arrangements
In August 2025, the MCA notified amendments to Ind AS 7 Statement of Cash Flows and Ind AS 107
Financial Instruments: Disclosures to clarify the characteristics of supplier finance arrangements and
require additional disclosure of such arrangements. The disclosure requirements in the amendments are
intended to assist users of financial statements in understanding the effects of supplier finance
arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk
4) International Tax Reform- Pillar Two Model Rules- Amendments to Ind AS 12
In August 2025, the MCA notified amendments to Ind AS 12 Income Taxes in response to the OECD’s
BEPS Pillar Two rules and include: a) A mandatory temporary exception to the recognition and disclosure
of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules; and b)
Disclosure requirements for affected entities to help users of the financial statements better understand an
entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before its effective
date. The mandatory temporary exception - the use of which is required to be disclosed - applies
immediately. The remaining disclosure requirements apply for annual reporting periods beginning on or
after April 1, 2025, but not for any interim periods ending on or before March 31, 2026 The Company has
reviewed the new pronouncements and based on its evaluation has determined that these amendments do
not have a significant impact on the Company's Financial Statements.
ab) Standards issued but not effective
The Ministry of Corporate Affairs (MCA), as part of India’s continued convergence with IFRS, has initiated
the process for introduction of Ind AS 118 - Presentation and Disclosure in Financial Statements, which is
converged with IFRS 18 issued by the IASB in April 2024. Ind AS 118 is intended to replace Ind AS 1
(Presentation of Financial Statements) and focuses on improving how entities present and communicate
financial performance, particularly in the Statement of Profit and Loss. This standard is proposed to be
applicable for annual reporting periods beginning on or after April 1, 2027, subject to final notification by
the MCA through amendment to the Companies (Indian Accounting Standards) Rules.
Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Noncurrent
Liabilities with Covenants
The Ind AS 1 carve-out regarding the classification of liabilities when there is a breach of a material
covenant that transforms the liability from non-current to current has been removed and hence when an
entity breaches any covenant of a long-term loan arrangement on or before the end of the reporting period
with the effect that the liability becomes payable on demand, it classifies the liability as current, even if the
lender agreed, after the reporting period and before the approval of the financial statements for issue, not to
demand payment as a consequence of the breach. An entity classifies the liability as current because, at
the end of the reporting period, it does not have the right to defer its settlement for at least 12 months after
that date. However, an entity classifies the liability as non-current if the lender agreed by the end of the
reporting period to provide a period of grace ending at least 12 months after the reporting period, within
which the entity can rectify the breach and during which the lender cannot demand immediate repayment.
Note (a)
Balances with banks includes Fixed deposits of Rs.46.00 Lacs under lien for Bank Guarantees of Rs
46.00 Lacs issued in Central Coalfields Ltd (Rs 46.00 Lacs for P.Y 2024-25)
Note (b)
Balances with banks in fixed deposits accounts include deposits under lien of Rs 1080.00 lacs to avail
overdraft, if needed. (Rs. 1080.00 lacs as on 31.03.2025).
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.
(d) The Company has only one class of equity shares. The holders of equity shares are entitled to
receive dividend as declared from time to time and are entitled to one vote per share.
(e) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive
remaining assets of the Company, after distribution of all preferential dues. The distribution will be
in proportion to the number of equity shares held by the shareholders.
(f) The company is neither a holding company nor a subsidiary company.
Note:
(i) Securities premium is used to record the premium on issue of shares. The General reserve is
eligible for utilization in accordance with the provisions of the Companies Act 2013.
(ii) General reserve represents amounts appropriated out of retained earnings based upon the
provisions of the Act prior to its amendment.
(iii) Other Comprehensive income ('OCI') represents the cumulative gains and/or losses arising on
the revaluation of equity instruments measured at fair value through Other Comprehensive income
('OCI') net of Taxes.
3) Disclosures as required by Indian Accounting Standard (Ind AS) 37:- Provisions, Contingent
liabilities and Contingent assets.
(i) Nature of provision
Provision for contingencies
Provision for contingencies represent provision towards various claims made/anticipated in
respect of duties and taxes and other litigation claims against the Company based on the
Management’s assessment.
a) The transaction with related parties have been entered at an amount which are not materially
different from those on normal commercial terms. The transactions with related parties are made on
terms equivalent to those that prevail in arm's length transactions.
b) The remuneration of directors is determined by the Nomination & Remuneration Committee having
regard to the performance of individuals and market trends and as further approved by the Board.
Note No. : 28 Other disclosures
Additional Regulatory InformationAmended 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 2025-2026 and no amount was spent
on this account upto 31-03-2026.
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 aswillful 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 2025-2026.
Note No. : 29 Other disclosures1) Financial instruments - Accounting, Classification and Fair value measurements
This section gives an overview of the significance of financial instruments for the Company and
provides additional information on balance sheet items that contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised in respect of each class of
financial asset, financial liability and equity instrument are disclosed in Note 2 to the financial
statements.
A. Fair value hierarchy
The fair value of the financial assets and financial liabilities are included at the amount at which
the instrument could be exchanged in a current transaction between willing parties, other than in
a forced or liquidation sale.
(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 ended31stMarch 2026 or during the year ended 31st March 2025.
(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
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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