SEGMENT REPORTING
The Company is primarily engaged in Investment in shares and securities and financing which are not separate reportable segment as per IND AS -34 of the Institute of Chartered Accountants of India. Hence is no separate-wise report to be furnished.
Based on information available with the company, there are no dues owed by the company to Micro, Small & Medium Enterprise, which are outstanding for more than 45 days during the year and as at 31st March' 2024. As a result, no interest provision/ payments have been made by the Company to such Creditors, and no disclosure thereof is required under Micro Enterprises Development Act, 2006.
The retirement benefit of the employees of the company is recognised on payment basis as & when arised.
The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
RESERVE BANK OF INDIA REGISTERED NON BANKING FINANCE COMPANY
The company is registered as Non Banking Finance Company with Reserve Bank of India vide Registration no. N-13.02048 dated 15.07.2013 and has been complying with prudential norms as prescribed by RBI for NBFC.
Additional particulars as required under 'Non- Systematically Important Non-Banking Financial (Non-Deposit Accepting or Holding ) Companies Prudential Norms (Reserve Bank) Directions, 2015 are attached , under Separate Annexure - I.
CAPITAL MANAGEMENT
The primary objective of the Company’s capital management is to ensure availability of funds at competitive cost for its operational and development needs and maintain a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value.
The Company manages its capital structure and makes changes in view of changing economic conditions. No changes were made in the objectives, policies or process during the year ended 31.03.2025 and 31.03.2024. There have been no breaches of the financial covenants of any interest bearing loans and borrowings for the reported period.
The Company monitors capital structure on the basis of debt to equity ratio. For the purpose of Company’s capital management, equity includes paid up equity share capital and reserves and surplus and effective portion of cash flow hedge and Debt comprises of long term borrowings including current maturities of these borrowings.
DISCLOSURES REQUIRED AS PER RBI CIRCULARS/DIRECTIVES 1. Exposure
1.1. Exposure to real estate sector
The Company does not have any exposure to real estate in the current year as well as previous year .
3 There has not been any financing of parent company products by the company during the current year and previous year.
3.1 The Company has not exceeded the single borrower limit (SGL) / group borrower limit (GBL) during the the year ended March 31,2025 and March 31,2024.
3.2 There are no advances/projects financed by the Company wherein intangible security such as rights, licenses, authorizations etc. are charged as collateral as at march 31,2025 & March 31,2024.
4 Disclosure of complaints
4.1 Summary information on complaints received by the NBFCs from customers and from the Offices of Ombudsman
The Company does not have any customer interface and hence the disclosure is not applicable for it.
4.2 Top five grounds of complaints received by the company from the customers
The Company does not have any customer interface and hence this disclosure is not applicable for it.
5 Derivatives
5.1 Forward Rate Agreement/Interest Rate Swap - Nil
5.2 Exchange Traded Interest Rate (IR) Derivatives - Nil
5.3 Disclosures on Risk Exposure in Derivatives
Qualitative Disclosure - NA
7 Breach of covenant - Nil
8 Divergence in Asset Classification and Provisioning
There was no divergence or additional provision or NPA by the Company during the current year and previous year.
9 Net Profit or Loss for the period, prior period items and changes in accounting policies
There are no prior period items that have impact ton the current year's profit and loss.
10 Revenue Recognition
There have been no instances in which revenue recognition has been postponed pending the resolution of significant uncertainties.
11 Additional Disclosures
11.1 Provisions and Contingencies
Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)
The Company does not have any joint ventures and subsidiaries abroad during the year ended March 31,2025 and March 31,2024 and hence this disclosure is not applicable
Off-balance Sheet SPVs sponsored
The Company does not have off-balance sheet SPVs sponsored, which are required to be consolidated as per the accounting norms, during the financial year ended March 31,2025 and March 31,2024
Fair Value Techniques:
The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
a) Fair value of cash and short term deposits, trade receivables, trade payables, current loans, other current financial assets, short term borrowings and other current financial liabilities approximate to their carrying amount largely due to the short term maturities of these instruments.
b) The fair value of investment in quoted Equity Shares and Mutual Funds is measured at quoted price or NAV.
c) All foreign currency loans and liabilities are translated using exchange rate at reporting date Fair Value Hierarchy
The following table provides the fair value measurement hierarchy of Company’s asset and liabilities grouped into Level 1 to Level 3 as described below:
Quoted prices / published Net Asset Value (NAV) in an active markets (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities and financial instruments like mutual funds for which NAV is published by mutual funds. This category consist mutual fund investments and equity share instrument of other companies.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (that is, unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumption that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
Assets and Liabilities Measured at Fair Value (Accounted)
The fair values of the financial assets and financial liabilities included in the level 2 categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties. Following table describes the valuation techniques used and key inputs to valuation for level 2 of the fair value hierarchy as at 31.03.2025 and 31.03.2024.
5 Financial Risk Management Objectives and Policies
The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company's activities exposed to various risk such as market risk, credit risk and liquidity risk.
The sensitivity analyses exclude the impact of movement in market variables on the carrying value of postemployment benefit obligations, provisions and on non-financial assets and liabilities. The sensitivity of the relevant statement of profit and loss item is the effect of the assumed changes in respective market rates. The company’s activities are exposed to varieties of financial risk including the effect of changes in foreign currency exchange rates and interest rates. The company uses derivatives financial instruments such as foreign exchange forward contracts of varying maturity depending upon the underlying contract and risk management strategy to manage its exposures to foreign exchange fluctuation and interest rates.
The Board of Directors reviews and agrees policies for managing each of these risks which are summarised below. Market risk and sensitivity Foreign Currency Risk and Sensitivity
Foreign Currency Risk is the risk that the present exposure or Future Cash Flows will fluctuate because of changes in foreign currency rates. The company follow natural hedging to the extend of inward and outward of forex exposure and takes forward contracts to minimise the risk of fluctuation in foreign exchange rates for remaining amount. Exposures can arise on account of the various assets and liabilities which are denominated in currencies other than Indian Rupee.
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the Company. Credit risk arises from Company’s activities in investments, dealing in derivatives and receivables from customers.
The Company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Credit risk across the Company, is actively managed through Letters of Credit, Bank Guarantees, advance payments and security deposits .
The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.
Liquidity risk is the risk that the company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.
The Company monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers the maturity of both its financial investments and financial assets (i.e. trade receivables, other financial assets) and projected cash flows from operations. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of working capital loans, letter of credit facility, bank loans and credit purchases.
E - Other Statutory information
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 has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lendor 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.
The Company has not received any fund from any person(s) or entity(is), 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.
iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iv) The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.
v) The Company does not have any 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).
vi) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.
vii) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017
viii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.
x) The Company has not obtained any borrowings from banks.
xi) There is no Title deeds of Immovable Properties which are not held in name of the Company Previous years figures have been regrouped / rearranged where ever necessary.
The accompanying notes are an integral part of the financial statements.
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