2.10 Provisions and contingent liabilities
The Company creates a provision when there is present obligation as a result of a past event that probably
requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.
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. The Company also discloses present obligations
for which a reliable estimate cannot be made. 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.
2.11 Foreign currency translation
There is no foreign exchange transaction during the year.
2.12 Fair value measurement
The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.
Fair value is the price that would be received against sale of an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place in the
accessible principal market or the most advantageous accessible market as applicable.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximising the use of relevant observable inputs and minimising the
use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy into Level I, Level II and Level III based on the lowest level input
that is significant to the fair value measurement as a whole. For a detailed information on the fair value
hierarchy, refer note no. 22 and 48.
For assets and liabilities that are fair valued in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of
each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value
hierarchy.
2.13 Unless specifically stated to be otherwise, these policies are consistently followed.
(ii) Fair value hierarchy
All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that is insignificant to the fair value measurements as a whole.
Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 : valuation techniques for which the lowest level inputs that has a significant effect on the fair value measurement
are observable, either directly or indirectly.
Level 3 : valuation techniques for which the lowest level input which has a significant effect on fair value measurement
is not based on observable market data.
The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities, other than
those whose fair values are close approximations of their carrying values.
29. In the opinion of the Board, all Current Assets, Loans & Advances (Except where indicated otherwise)
collectively have a value on realisation in the ordinary course of business at least equal to the amount at which
they are stated.
30. Balance confirmation certificates from parties, as appearing in the Balance Sheet under the heads ‘Current
Liabilities’ on the liabilities side and ‘Loans & Advances’ on the assets side of the Balance Sheet are subject
to confirmations of balances to the extent received have been reconciled/under reconciliation.
31. Provision regarding Provident fund and Gratuity Act, 1972 are not applicable to the company during the year
under reference.
32. The company is engaged in the business of non-banking financial activity. Since all the activities relate to main
activity, in the opinion of the management, there is only one business segment in terms of AS-108 on segment
issued by ICAI.
33. Related Party Disclosures:
In accordance with the AS-24 on Related Party Disclosure, where control exists and where key management
personnel are able to exercise significant influence and, where transactions have taken place during the year,
along with description of relationship as identified, are given below:-
35. Figures for the previous year have been regrouped or recasted wherever necessary.
36. The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August
2008 which recommends that the Micro and Small Enterprises should mention in their correspondene with its
customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Disclosure
under the Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED Act):
37. Additional Disclosure Requirements:
i. Registration of Charges or Satisfaction with Registrar of Companies (ROC)
There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
ii. Compliance with Number of Layers of Companies
The company does not have layers under clause (87) of section 2 of the Act read with Companies (Restriction on
number of Layers) Rules, 2017.
iii. 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 lend or invest in other persons or entities 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.
B. 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:
a. 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
b. Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
iv. Undisclosed Income
There are no transactions which have not been recorded in the books of accounts and which have been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
v. Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
vi. Disclosure of Benami Property
The Company does not possess any benami property under the Benami Transactions (Prohibition) Act, 1985 and
rules made thereunder.
vii. Disclosure of Borrowing
The Company has not borrowed money from banks or financial institutions on the basis of security of current
assets.
viii. Willful Defaulter
The Company has not been declared as Willful Defaulter by any Bank or Financial Institution or other Lender.
ix. Title Deeds of Immovable Properties Not Held in Name ofthe Company
The company doesn’t have any immovable property.
38. Disclosure of details as required by revised para 19 of Non -Banking Financial Companies - Non Systemically
Important Non Deposit taking Company (Reserve Bank) Directions, 2016, earlier para 13 of Non-Banking Financial
Companies Prudential Norms (Reserve Bank) Directions, 2007.
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