2.23 Provisions and Contingencies
Provisions:
Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event, 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. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance sheet date and are discounted to its present
value as appropriate.
Contingent Liabilities:
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the company or a present obligation that arises from past events where it is either not
probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be
made, is termed as a contingent liability.
2.24 Trade Receivables\Trade payables, Loans, Borrowings and Other Financial as well as non-financial assets and
liabilities are subject to reconciliation and confirmation and therefore the effect of the same on profit could not be
ascertained.
2.25 The company generally complied with the direction issued by Reserve Bank of India and provision of section
73 of the Companies Act, 2013. The policy of provisioning for Non-Performing Loans & Advances has been decided
by management considering prudential norms prescribed by the Reserve Bank of India.
2.26 The account balances existing at the beginning of the period have been relied upon the audited financial
statements audited by the previous auditor.
2.27 The previous year's figures have been reworked, regrouped, and reclassified wherever necessary. Amounts
and other disclosures for the preceding year are included as an integral part of the current annual financial
statements and are to be read in relation to the amounts and other disclosures relating to the current financial
year.
2.28 During the year, the Company has discontinued the retails loan business tied up with various service
provider Companies and started its own loan business by way of installing Salary Day App and providing loan
facilities on the basis of salary to the salaried persons.
2.29 As earlier the Company had tied up with various service providers for its loan business and the said business
by service providers were discontinued during the year, hence the loan outstanding which were not recovered due
to discontinuance of service provider's business were either recovered from the service provider as per terms &
conditions of agreement or written off in the books of accounts in case if there is no such terms and conditions in
the agreement.
3. STATEMENT OF MANAGEMENT
i) The current assets, loans and advances are good and recoverable and are approximately of the values, if realized
in the ordinary courses of business unless and to the extent stated otherwise in the Accounts. Provision for all
known liabilities is adequate and not in excess of amount reasonably necessary.
ii) Balance Sheet, Statement of Profit and Loss and Cash Flow Statement read together with Notes to the accounts
thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a
true and fair view of the statement of affairs of the Company as at the end of the year and results of the Company
for the year under review.
3.1 Financial Risk Management
The Company's activities expose it to various financial risks: market risk, credit risk and liquidity risk. The company
tries to foresee the unpredictable nature of financial markets and seek to minimise potential adverse impact on its
financial performance. The senior management of the company oversees the management of these risks. The
management has additional oversight in the area of financial risks and controls. It is the Company's policy that
no trading in derivativesfor speculative purposes may be undertaken.
3.8 Contingent Provision against Standard Asset
As per notification RBI/2015-16/23 DNBR (PD) CC.No.044/03.10.119/2015-16 dated 1st July,2015(Updated as on
April 11,2016) issued by Reserve Bank of India, NBFCs are required to make provision for standard assets @ 0.25%
of the outstanding standard asset. Accordingly, the company has made the provision against standard assets of Rs.
1,14,406/- in profit and loss accounts and created Contingent provision against standard assets of Rs. 71,560/- in
the balance sheet.
3.9 Segment Informations
Disclosure under Indian Accounting Standard 108 - 'Operating Segments' is not given as, in the opinion of the
management, the entire business activity falls under one segment, viz. investment and financing activities . The
Company conducts its business only in one Geographical Segment, viz., India.
4. In terms of provisions of Schedule V of the Companies Act, 2013 read with the Companies (Particulars of
Employees) Rules, 1975 none of the employees are in receipt of remuneration in excess of Rs 5,00,000 per
month or Rs 60,00,000 p.a. as per the limits stated in the provisions.
4.1 Employee benefits expenses
The Company has adopted Indian Accounting Standard (Ind AS) - 19 on Employee Benefit as under:
(a) Defined contribution plan:
The Company makes contributions, determined as a specified percentage of employee salaries, in respect of
qualifying employees towards Provident Fund and Employee state insurance fund, which is a defined
contribution plan. The Company has no obligations other than to make the specified contributions. The
contributions are charged to the Statement of Profit and Loss as they accrue.
(b) Defined benefit plan:
Leave Encashment: During the year 2023-24, the amount paid to employees as leave encashment is NIL
(c) Gratuity:
The Company has voluntarily provided Gratuity payable for the F.Y. 2023-2024 amounting to Rs. 2.88 Lakhs on
the basis of actuarial valuation. The Company has thus, changed the Policy of accounting and the said liability is
accounted on accrual basis. Actuarial valuation has been done and provided by the Company.
4.2 Contingent liabilities and commitments (to the extent not provided for): There is no contingent liability not
acknowledged as debt.
4.3 The management is of view that as per Ind AS 36, no impairment loss is required to be recognised, as the
present values of assets are higher than the carrying amount of such assets except impairment loss of loans and
advances which are recognized in the statement of profit & loss account as per RBI rules.
4.4 The disclosure on the following mafflers required under Schedule III as amended not being relevant or
applicable in case of the Company, same are not covered such as:
a. Title Deeds of Immovable Property not held in name of Company: Not applicable.
b. Disclosure on Revaluation of Assets: The Company has not revalued its property, plant and equipment or
intangible assets or both during the current or previous year.
c. Details of benami property held: No proceedings have been initiated on or are pending against the Company
for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules
made thereunder.
d. Borrowings against current assets: There is no borrowing against Company's current assets.
e. Willful defaulter: The Company have not been declared willful defaulter by any bank or financial institution or
government or any government authority.
f. Relationship with struck off companies: The Company has no transactions with the companies struck off
under Companies Act, 2013 or Companies Act,1956.
g. Registration of charges or satisfaction with Registrar of Companies: There are no charges or satisfactions
which are yet to be registered with the Registrar of Companies beyond the statutory period.
h. Compliance with number of layers of companies: The Company has complied with the number of layers
prescribed under clause (87) of section 2 of the Companies Act 2013 read with the Companies (Restriction on
number of Layers) Rules, 2017.
i. Utilization of borrowed funds and share premium: The Company has not received securities premium through
issue of equity and preference shares during the year ended March 31, 2024, and year ended March 31, 2023.
There is no understanding with investors, in writing or otherwise, to lend or invest in other person or entities,
directly or indirectly or provide any guarantee, security or the like to or on behalf of the said investors. The
management has absolute discretion on use of such funds. Hence, the additional regulatory disclosure with
respect to the utilisation of borrowed funds and share premium are not included in these financial statements.
j. Compliance with approved scheme of arrangements: The Company has not entered into any scheme of
arrangement which has an accounting impact on current or previous financial year.
k. Undisclosed income: There is no income surrendered or disclosed as income during the current or previous
year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of
account.
l. Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or
virtual currency during the current or previous year.
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