2.05 Provisions and contingencies:
The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of
resources embodying economic benefits will be required to settle such obligation and the amount ofsuch obligation can be reliably estimated. If the effect
of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. 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 embodying economic
benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which
likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.
2.06 Cash and Cash Equivalents:
Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances, demand deposits with banks where
the original maturity is three months or less and other short term highly liquid investments.
2.07 Employee Benefits
Short-term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and they are
recognized in the period in which the employee renders the related service. The Company recognizes the undiscounted amount of short-term employee
benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.
2.08 Borrowing Cost
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences
arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs, if any, directly attributable
to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are
capitalized, if any. All other borrowing costs are expensed in the period in which they occur.
2.09 Events after reporting date
Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such
events is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.
2.10 Property, plant & equipment
Measurement at recognition
An item of property, plant and equipment that qualifies as an asset is measured on initial recognition at cost. Following initial recognition, items of
property, plant and equipment are carried at its cost less accumulated depreciation and accumulated impairment losses.
The cost of an item of property, plant and equipment comprises of its purchase price including import duties and other non-refundable purchase taxes or
levies, directly attributable cost of bringing the asset to its working condition for its intended use and the initial estimate of decommissioning, restoration
and similar liabilities, if any. Any trade discounts and rebates are deducted in arriving at the purchase price. Cost includes cost of replacing a part of a plant
and equipment if the recognition criteria are met. Items such as spare parts, stand-by equipment and servicing equipment that meet the definition of
property, plant and equipment are capitalized at cost and depreciated over their useful life. Costs in nature of repairs and maintenance are recognized in
the Statement of Profit and Loss as and when incurred.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate.
2.10 Property, plant & equipment (cont'd)
Capital work-in-progress and capital advances:
Cost of assets not ready for intended use, as on the balance sheet date, is shown as capital work-in-progress. Advances given towards acquisition of fixed
assets outstanding at each balance sheet date are disclosed as other non-financial assets.
Depreciation
Depreciation on each part of an item of property, plant and equipment is provided using the written down value method based on the useful life of the
asset as prescribed in Schedule II to the Act. Depreciation is calculated on a pro-rata basis from the date of installation till date the assets are sold or
disposed. Leasehold improvements are amortised over the underlying lease term on a straight line basis. Individual assets costing less than INR 5,000 are
depreciated in full in the year of acquisition.
De-recognition
The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its
use or disposal. The gain or loss arising from the de-recognition of an item of property, plant and equipment is measured as the difference between the
net disposal proceeds and the carrying amount of the item and is recognized in the Statement of Profit and Loss when the item is derecognized.
2.11 Impairment of non-financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual
impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an
asset's or cash-generating unit's (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of
an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market
transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated
by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.
For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised
impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset's or CGU's recoverable amount. A
previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount
since the last impairment loss was recognised. The reversal is limited so that the carrying amount ofthe asset does not exceed its recoverable amount, nor
exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
Such reversal is recognised in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a
revaluation increase.
2.12 Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes)
by the weighted-average number of equity shares outstanding during the period. The weighted-average number of equity shares outstanding during the
period is adjusted for events including a bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted-average
number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
(b) Fair value hierarchy
The fair value of financial assets and 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 sale or liquidation sale. Methods and assumptions used to estimate the
fair values are consistent in all the years. Fair value of financial instruments referred to in note (a) above has been classified into
three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in
active markets for identical assets and liabilities and lowest priority to unobservable entity specific inputs.
(c) Fair value of assets and liabilities measured at cost/amortised cost
The carrying amount of financial assets, other fianncial assets, financial liabilities and borrowings measured at amortised cost are a
reasonable approximation of their fair values since the Company does not anticipate that the carrying amount would be significantly
different from the values that would be eventually received or settled. Management assessed that fair values of cash and cash
equivalents, bank deposits, loans, and other financial liabilities approximate their carrying amounts of these instruments.
25 Financial risk management
The Company is a Non - Banking Financial Company - Non Deposit taking - Non - Systemically Important (NBFC - ND - NSI) registered with the
Reserve Bank of India. On account of it's business activities it is exposed to various financial risks associated with financials products such as credit
or default risk, market risk, interest rate risk, liquidity risk and inflationary risk. However, the Company has a robust financial risk management
system in place to identify, evaluate, manage and mitigate various risks associated with its financial products to ensure that desired financial
objectives are met. The Company's senior management is responsible for establishing and monitoring the risk management framework within its
overall risk management objectives and strategies, as approved by the Board of Directors. Such risk management strategies and objectives are
established to identify and analyse potential risks faced by the Company, set and monitor appropriate risk limits and controls, periodically review
the changes in market conditions and assess risk management performance. Any change in Company's risk management objectives and policies
(a) Credit risk
This risk is common to all investors who invest in bonds and debt instruments and it refers to a situation where a particular bond issuer is unable to
make the expected principal payments, interest rate payments, or both. Similarly, a lender bears the risk that the borrower may default in the
payment of contractual interest or principal on its debt obligations, or both. The entity continuously monitors defaults of customers and other
counterparties and incorporates this information into its credit risk controls.
(b) Market risk:
Market risk is a form of systematic risk associated with the day-to-day fluctuation in the market prices of shares and securities and such market risk
affects all securities and investors in the same manner. These daily price fluctuations follows its own broad trends and cycles and are more news
and transaction driven rather than fundamentals and many a times, it may affect the returns from an investment. Market risks majorly comprises
of two types - interest rate risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risks
25 Financial risk management (cont'd)
(c) Liquidity risk:
Liquidity refers to the readiness of the Company to sell and realise its financial assets. Liquidity risk is one of the most critical risk factors for
Companies which is into the business of investments in shares and securities. It is the risk of not being able to realise the true price of a financial
asset, or is not being able to sell the financial asset at all because of non-availability of buyers. Unwillingness to lend or restricted lending by Banks
and Financial Institutions may also lead to liquidity concerns for the entities.
The Company maintains a well-diversified portfolio of investments in shares and securities which are saleable at any given point of time. A
dedicated team of market experts are monitoring the markets on a continuous basis, which advises the management for timely purchase or sale of
securities. The Company is currently having a mix of both short-term and long-term investments. The management ensures to manage it's cash
flows and asset liability patterns to ensure that the financial obligations are satisfied in timely manner.
(d) Inflationary risk:
Inflationary or purchasing power risk refers to the variation in investor returns caused by inflation. It is the risk that results in increase of the prices
of goods and services which results in decrease of purchasing power of money, and likely negatively impact the value of investments. The two
important sources of inflation are rising costs of production and excess demand for goods and services in relation to their supply. Inflation and
interest rate risks are closely related as interest rates generally go up with inflation.
The Company closely monitors the inflation data and analyses the reasons for wide fluctuations thereof and its effect on various sectors and
businesses. The main objective is to avoid inflationary risk and accordingly invest in securities and debt instruments that provides higher returns as
compared to the inflation in long-term.
26 Capital management
For the purpose of Company's capital management, capital includes issued equity share capital, other equity reserves and borrowed capital less
cash and cash equivalents. The primary objective of capital management is to maintain an efficient capital structure to reduce the cost of capital,
support corporate expansion strategies and to maximize shareholder's value.
The entity manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial
covenants. To maintain or adjust the capital structure, the entity may adjust the dividend payment to shareholders, return capital to shareholders
or issue new shares. The entity monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The entity's policy is
to keep an optimum gearing ratio. The entity includes within net debt, interest bearing loans and borrowings less cash and cash equivalents.
(i) Sectoral exposure: Reger Note 4
(ii) Intra-group exposures:Nil
(iii) Unhedged foreign currency exposure : The Company do not have any Unhedged foreign currency exposure in Current year & previous year.
(iv) Related Party Disclosures : Details of all related party disclosures are given in note 22
(v) Disclosure of Complaints : a) No Complaints has been received during the Current year & previous year.
b) Top five grounds of complaints received by the NBFCs from customers- Not Applicable
(vi) Miscellaneous - Additional disclosures pursuant to the RBI circular RBI/2021-22/112 DOR.CRE.REC.No.60/ 03.10.001/2021-22 dated
October 22, 2021
a) Disclosures relating to Corporate Governance Report containing composition and category of directors, shareholding of non-executive
directors, etc: - Details relating to Corporate Governance Report containing composition and category of directors, shareholding of non¬
executive directors etc are covered under Corporate Governance Report, which forms part of the Annual Report.
b) Disclosure on modified opinion, if any, expressed by auditors, its impact on various financial items and views of management on audit
qualifications: - The Auditors has not expressed any modified opinion during the current financial year ended 31 March 2025.
c) Disclosures relating to items of income and expenditure of exceptional nature - During the financial year 2024-2025, the company sold
its entire 100% stake in a wholly owned subsidiary to another company. This transaction is classified as exceptional in nature due to its
one-time and significant impact on the financial results.
d) Disclosures relating to breaches in terms of covenants in respect of loans availed by the Company or debt securities issued by the
Company including incidence/s of default -There are no such instance during the Financial Year 2024-2025.
e) Disclosures relating to Divergence in asset classification and provisioning above a certain threshold to be decided by the Reserve Bank: -
There are no such instance during the Financial Year 2024-2025.
f) Related Party Disclosure - Refer Point No. 22
(This space has been intentionally left blank.)
32 Based on the information available with the Company and has been relied upon by the auditors, none of the suppliers have confirmed to be
registered under "The Micro, Small and Medium Enterprises Development ('MSMED') Act, 2006". Accordingly, no disclosure relating to
principal amounts unpaid as at the period ended 31st March, 2025 together with interest paid/payable are required to be furnished.
33 No significant adjusting event occurred between balance sheet date and the date of the approval ofthese standalone financial statements by
the Board of Directors requiring adjustments on disclosures.
34 Segment reporting
As per the requirement of Ind AS 108, Operating Segments, based on evaluation of financial information for allocation of resources and
assessing performance, the Group identified as single segments, i.e., holding and investing with focus on earning income through dividends,
interest and gains from investments and operates in India. Accordingly, there are no separate reportable segments as per the Standard.
35 The company has not used accounting software for maintaining its books of accout which has a feature of recording audit trail (edit log)
facility and the same has not been operated throughout the year for all relevant transactions recorded in the software. Additionally,
the audit trail of prior year(s) has not been preserved by the Company as per the statutory requirements for record retention to the extent it
was enabled and recorded in the respective years.
36 Backup Schedule and Data Preservation
The company follows a well-defined backup schedule and data preservation protocol to ensure the integrity and availability of critical
information assets. Regular and systematic backups are conducted to protect against potential data loss or corruption. This proactive
approach ensures that vital data remains secure and accessible in the event of unforeseen incidents.
37 The disclosure on the following matters required under Schedule III as amended not being relevant or applicable in case of the Company:
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding
any Benami property.
(ii) The Company does not have any transactions with struck off Companies.
(iii) The company has complied 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.
(iv) The Company has not advanced or given loan or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding 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.
(v) 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.
(vi) The Company does not have any such transaction which is not 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 (such as, search or survey or any other relevant provisions
of the Income Tax Act, 1961.
(vii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
(viii) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
39 Figures or the previous year have been regrouped wherever necessary.
40 The financial statements are approved for issue by the Board of Directors in its meeting held on 30th May 2025.
For H S K & CO LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm's Reg. No. : 117014W/W100685
Sudhir S, Shah Shekh Hasina Kasambhai Irfan Ahmedbhai Belim
Partner Director Director
Membership No. 115947 (DIN: 07733184) (DIN: 08010290)
Place: Ahmedabad Place: Bhavnagar Place: Bhavnagar
Date: May 30, 2025
Anny Shankarlal Sachdev Siddharth Sharma
Chief Financial Officer Company Secretary
Place: Bhavnagar Place: Bhavnagar
Date: May 30, 2025
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