(d) Rights, preferences and restrictions in respect of equity shares issued by the Company
The company has only one class of equity shares having a par value of Rs.10 each. The equity shares of the company having par value of Rs.10 /- rank pari-passu in all respects including voting rights and entitlement to dividend. The dividend proposed if any, by the Board of Directors, is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive the remaining assets of the Company, after settling the dues of preferential and other creditors as per priority. The distribution will be in proportion to the number of equity shares held by the shareholders. During the current and previous year, no dividend has been proposed by the company to equity shareholders.
33 Operating Segments
The company is engaged in the business of "NBFC activities" while in the previous year engaged in the business of "NBFC activities and also providing travel and tourism services", However, it has only one reportable segment in accordance with IndAS 108'Segment Reporting". Other operating segments do not meet the criteria for reportable segments.
Information relating to geographical areas
The Company is domiciled in Indiaand its operations are restricted only in India.Accordingly, no disclosures with regard to geographical locations are disclosed.
The Company manages its capital to ensure that entities in the Company will be able to continue as going concern, while maximising the return to stakeholders through the optimisation of the debt and equity balance.
The Company determines the amount of capital required on the basis of annual operating plans and longterm product and other strategic investment plans. The funding requirements are met through equity For the purposes of the Company’s capital management, capital includes issued capital, share premium and all other equity reserves attributable to the equity holders.
In the course of its business, the Company is exposed to certain financial risks namely interest risk, credit risk & liquidity risk. The Company's primary focus is to achieve better predictability of financial markets and seek to minimize potential adverse effects on its financial performance.
Interest rate risk management
Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a financial instrument. The Company's activities expose it primarily to the financial risks of changes in interest rates. The Company is exposed to interest rate risk because it borrow funds at fixed interest rates. The Company actively manages its interest rate exposures through a centralized treasury division Credit risk management
Credit risk arises when a customer or counterparty does not meet its obligations under a customer contract or financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities primarily trade receivables and from its financing/ investing activities Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure is the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables, margin money and other financial assets excluding equity investments.
(a) Trade Receivables
The Company has credit evaluation policy for each customer and, based on the evaluation, credit limit of each customer is defined. Wherever the Company assesses the credit risk as high, the exposure is backed by either bank, guarantee/letter of credit or security
deposits. As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default in payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.
(b) Investments, Cash and Cash Equivalents and Bank Deposits
Credit Risk on cash and cash equivalents, deposits with the banks/financial institutions is generally low as the said deposits have been made with the banks/financial institutions, who have been assigned high credit rating by international and domestic rating agencies. Investments of surplus funds are made only with approved financial institutions/ counterparty. Offsetting related disclosures Offsetting of cash and cash equivalents to borrowings as per the consortium agreement is available only to the bank in the event of a default. Company does not have the right to offset in case of the counter party's bankruptcy, therefore, these disclosures are not required.
Liquidity risk management
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company invests its surplus funds in such items which carry minimal mark to market risks. The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
37 Retirement benefit plans Defined contribution plans
In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees' salary. The contributions, as specified under the law, are made to the Provident fund.
Defined benefit plans
(a) Gratuity
Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, gratuity is computed by multiplying last drawn salary (basic salary including dearness Allowance if any) by completed years of continuous service with part thereof in excess of six months and again by 15/26. The Act provides for a vesting period of 5 years for withdrawal and retirement and a monetary ceiling on gratuity payable to an employee on separation, as may be prescribed under the Payment of Gratuity Act, 1972, from time to time. However, in cases where an enterprise has more favourable terms in this regard the same has been adopted.
(b) Compensated absence
The leave scheme is a final salary defined benefit plan, that provides for a lumpsum payment at the time of separation based on scheme rules the benefits are calculated on the basis of last drawn salary and the leave count at the time of separation and paid as lumpsum.
Sensitivity analysis
In view of the fact that the Company for preparing the sensitivity analysis considers the present value of the defined benefit obligation which has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
(b) Compensated absences
The leave scheme is a final salary defined benefit plan, that provides for a lumpsum payment at the time of separation; based on scheme rules the benefits are calculated on the basis of last drawn salary and the leave count at the time of separation and paid as lumpsum.
(c) Proceedings under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder
There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder
(d) Borrowings from banks
Company does not have any outstanding borrowings from banks or financial institutions at any time during the year on the basis of security of current assets.
The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.
(e) Relationship with Struck off Companies
The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the information available with the Company.
(f) Compliance with number of layers of companies
The Company do not have any parent company and accordingly, compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable for the year under consideration.
Formula adopted for above Ratios
Capital to Risk-weighted Assets Ratio (CRAR) = (Tier I Capital Tier II Capital) / Risk weighted assets Tier I CRAR = Tier I Capital / Risk weighted assets Tier II CRAR = Tier II Capital / Risk weighted assets
Reasons for variation if more than 25%
Liquidity coverage ratio
The Companies operations have improved and at the same time there is significant cost optimisation, which improved the liquity coverage ratio (h) Scheme of arrangements
There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year
(I) Advance or loan or investment to intermediaries and receipt of funds from intermediaries
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 (i) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
The company has also 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 (i) 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 (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(j) Undisclosed Income
The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.
(k) Details of Crypto Currency or Virtual Currency
The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating to it are not applicable.
40 Dues from customer
A corporate insolvency resolution process (CIRP) and the appointment of resolution professional were admitted in the case of one of the customers of the Company by the Hon'ble National Company Law Tribunal, Chennai Bench ('the Hon'ble NCLT) vide its order dated May 5, 2020. The Hon'ble NCLT has approved the resolution plan vide its Order No. 1A/1410/2022 dated December 20, 2023. Hence, as per the Order, the Company is expected to received the balance Inter Corporate Deposit of Rs. 305 Lakhs along with accrued interest in the normal course of business, preferably within 365 days from the date of NCLT Order.
The Company has given Inter-Corporate Deposit (ICD) of Rs. 200 Lakhs to M/s. Aryav Exports Private Limited on July 4, 2017. However, the Company has not received interest on ICD till date. Therefore, no accrued interest on ICD has been recognised in the books of accounts for the financial year 2024-25.
41 The Hon'ble National Company Law Tribunal, Chennai Bench vide its order dated July 29, 2021 admitted a corporate insolvency resolution process (CIRP) and approved the appointment of an interim resolution professional, in one of the investee companies. The carrying amount of investments as at June 30, 2023 was Rs. 21.99 Lakhs. The investee company went into liquidation vide Order passed by the Hon'ble NCLT on June 27, 2023. Accordingly, the carrying value of investments was made nil in the books of account. The investee company had filed an appeal before the Hon'ble National Company Law Appellate Tribunal which was dismissed vide its Order dated July 11,2023. Subsequently, the investee company had filed an appeal before the Hon'ble Supreme Court. The Hon'ble Supreme Court vide its Order dated March 18, 2024 had set aside the Tribunal's Order of liquidation and remitted back the matter to the Hon'ble NCLT, to examine and follow the procedures established by law in terms of Section 12A of IBC, 2016. The Hon'ble NCLT, vide its Order dated May 9, 2024, has restored the powers back to the Board of Directors of the investee Company. However, the value of investment is not reinstated in the books as on March 31,2025.
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