j| Provisions, contingent liabilities and contingent assets
i. Provisions
Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result
of a past event, it is probable that the Company
will be required to settle that obligation and a
reliable estimate can be made of the amount of the
obligation. Provisions are determined by discounting
the expected future cash flows (representing the
best estimate of the expenditure required to settle
the present obligation at the reporting date) at a pre¬
tax rate that reflects current market assessments
of the time value of money and the risks specific
to the liability, taking into account the risks and
uncertainties surrounding the obligation. Where a
provision is measured using the cash flows estimated
to settle the present obligation, it carrying amount
is the present value of those cash flows (when the
effect of the time value of money is material). The
unwinding of the discount is recognized as finance
cost. Expected future operating losses are not
provided for.
ii. 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.
iii. Contingent assets
Contingent assets are not recognized. A contingent
asset is disclosed, as required by Ind AS 37, where
an inflow of economic benefits is probable.
k| Taxation
The income tax expense for the period comprises of current
and deferred income tax. Income tax is recognized in the
statement of profit and loss, except to the extent that it
relates to items recognized in the other comprehensive
income or directly in equity, in which case the related
income tax is also recognized accordingly.
i. Current tax
Current income tax for the current and prior periods
are measured at the amount expected to be
recovered from or paid to the taxation authorities
based on the taxable income for the period.
The tax rates and tax laws used to compute the
current tax amounts are those that are enacted or
substantively enacted as at the reporting date and
applicable for the period.
While determining the tax provisions, the Company
assesses whether each uncertain tax position is
to be considered separately or together with one
or more uncertain tax positions depending upon
the nature and circumstances of each uncertain
tax position. The provisions are measured at the
best estimate of the amount expected to become
payable. The assessment is based on the judgement
of tax professionals within the Company supported
by previous experience in respect of such activities
and in certain cases based on specialist independent
tax advice.
The Company offsets current tax assets and current
tax liabilities, where it has a legally enforceable
right to set off the recognized amounts and where
it intends either to settle on a net basis, or to realize
the asset and liability simultaneously.
ii. Deferred tax
Deferred tax assets and liabilities are recognized
for the future tax consequences of temporary
differences between the carrying values of assets
and liabilities and their respective tax bases.
Such deferred tax assets and liabilities are not
recognized if the temporary difference arises from
the initial recognition of assets and liabilities in a
transaction that affects neither the taxable profit
nor the accounting profit.
Deferred tax liabilities and assets are measured at
the tax rates that are expected to apply in the period
in which the liability is settled or the asset realized,
based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the
reporting period. The measurement of deferred tax
liabilities and assets reflects the tax consequence
that would follow from the manner in which the
Company expects, at the end of the reporting period,
to recover or settle the carrying amount of its assets
and liabilities.
Deferred tax assets are recognized to the extent
that it is probable that future taxable income
will be available against which the deductible
temporary difference could be utilized. The Company
recognizes a deferred tax asset only to the extent
that it has sufficient taxable temporary differences
or there is convincing other evidence that sufficient
taxable profit will be available against which such
deferred tax asset can be realized. Deferred tax
assets - unrecognized or recognized, are reviewed
at each reporting date and are recognized/ reduced
to the extent that it is probable/ no longer probable
respectively that the related tax benefit will
be realized.
The Company offsets deferred tax assets and
deferred tax liabilities if it has a legally enforceable
right and these relate to the same taxable entity and
levied by the same governing taxation laws.
l| Operating cycle
Based on nature of product /activities of the Company
and normal time between acquisition of assets and their
realization in cash or cash equivalents, the Company
has determined its operating cycle as 12 months for the
purpose of classification of its assets and liabilities as
current and non-current.
m| Foreign currency transactions and translations
The functional currency and presentation currency of
the Company is Indian Rupee. Functional currency of
the Company has been determined based on the primary
economic environment in which the Company operates
considering the currency in which funds are generated,
spent and retained.
Transactions in currencies other than the Company's
functional currency are recorded on initial recognition
using the exchange rate at the transaction date.
At each reporting date, foreign currency monetary items
are reported at the prevailing closing spot rate. Exchange
differences that arise on settlement of monetary items
or on reporting of monetary items at each reporting date
at the closing spot rate are recognized in the Statement
of Profit and Loss in the period in which they arise.
Non-monetary assets and liabilities that are measured
at fair value in a foreign currency are translated into
the functional currency at the exchange rate when the
fair value was determined. Non-monetary assets and
liabilities that are measured based on historical cost in a
foreign currency are translated at the exchange rate at
the date of the transaction and are not retranslated at
each reporting date.
n| Earnings per share [EPS]
Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period. The weighted
average number of equity shares outstanding during the
period and for all periods presented is adjusted for events,
such as bonus shares, sub-division of shares etc. that
have changed the number of equity shares outstanding,
without a corresponding change in resources.
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 potential equity shares except where the results are
anti-dilutive.
o] Cash and cash equivalents
Cash comprises cash on hand and demand deposits with
banks. Cash equivalents are short-term balances (with
an original maturity of three months or less from the date
of acquisition), highly liquid investments that are readily
convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
2. For AY 2018-19 a new demand was generated in this period based on a new ground, the assessment for which was completed
u/s 147 r.w.s 143(3) of IT act, this has been challenged before Commissioner of Income Tax (Appeal) and the same is pending
with the department
3. For AY 2019-20 the company had filed ithe revised return and paid the required amount and the demand was closed, the case
was again reopened, the company had made the requested submission. The assessment u/s 147 r.w.s 143(3) was completed
and the appeal was filed in FY 2024-25 with CIT (A) againnst the order u/s 147 r.w.s. 143(3) of the IT Act 1961, which is pending
with the department.
4. For AY 2020-21 Scrutiny notice received by the company which created a demand to be payable by the company, the company
had filed rectification letter twice the demand got reduced to the maximum extent but still some amount is pending.
5. For AY 2009-10 Demand was paid on 22.11.2022. Demand is cancelled by department but Interest u/s 220(2) is still shown
in the ITBA portal
6. Some short deduction of TDS were appearing in the portal, during this period the had company identified and rectified the
issue. Now a negligible figure appearing in the portal.
(B) Defind benefit plans
(i| Gratuity
The Company's liabilities under the Payment of Gratuity Act,1972 are determined on the basis of
actuarial valuation made at the end of each reporting period using the projected unit credit method.
The gratuity benefit is provided through unfunded plan and annual contributions are charged to the statement of
profit and loss. Under the scheme, the settlement obligation remains with the Company. Company accounts for the
liability for future gratuity benefits based on an actuarial valuation. The net present value of the Company's obligation
towards the same is actuarially determined based on the projected unit credit method as at the Balance Sheet date.
The defined benefit plans expose the Company to risks such as actuarial risk, liquidity risk, market risk, legislative risk.
These are discussed as follows:
Basis of assumptions
Calculating Defined benefit obligation, by using Projected Unit Credit Method, requires an actuary to make a lot of assumptions,
based on current market scenarios. The basis of different assumptions used while calculating the defined benefit obligation
is as follows :-
Discount rate - Discount rate has been determined by reference to market yields on Government bonds of term consistent
with estimated term of obligations.
Mortality / disability - If the actual mortality rate in the future turns out to be more or less than expected then it may result
in increase / decrease in the liability.
Employee turnover / withdrawal rate - If the actual withdrawal rate in the future turns out to be more or less than expected
then it may result in increase / decrease in the liability.
Salary escalation rate - More or less than expected increase in the future salary levels may result in increase / decrease
in the liability.
Note 42 - Fair values hierarchy
The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2 - 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).
• Level 3 - inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Valuation technique used to determine fair value
The above table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value,
grouped into Level 1 to Level 3, as described below.
Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to
quoted prices (adjusted/unadjusted) for identical assets. This category consists of quoted equity shares, mutual fund units.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets, measured using inputs
other than quoted prices included within Level 1 that are observable for the asset, either directly (i.e.; as prices) or indirectly
(i.e.; derived from prices). Thiscategory includes venture fund units and security receipts.
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets measured
using inputs that are not based on observable market data. Fair values are determined in whole or in part, using a valuation
model based on assumptions that are neither supported by prices from observable current market transactions in the same
instrument nor are they based on available market data. This category includes unlisted equity shares, preference shares and
debentures.
There has been no transfer between level 1, level 2 and level 3 for the period/year ended 31 March 2025, 31 March 2024
The carrying amounts of trade receivables, trade payables and cash and cash equivalents are considered to be the same as
their fair values, due to their short-term nature.
The fair value of Loan approximates the carrying amount.
For financial assets and liabilities measured at fair value, the carrying amounts approximates the fair values.
Note 43 - Financial risk management objectives
The Company's activities expose it to credit risk, liquidity risk and market risk. The Company's overall risk management program
focuses on robust liquidity management as well as monitoring of various relevant market variables, thereby consistently
seeking to minimize potential adverse effects on the Company's financial performance. Management has not formed formal risk
management policies, however, the risks are monitored by management by analyzing exposures by degree and magnitude of risk
on a continued basis. This note explains the sources of risk which the Company is exposed to and how the Company manages
the risk and the related impact in the financial statements.
(A) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity
price risk and commodity risk.
(i| Interest rate risk
The Company have majority of the borrowings under fixed Rate of Interest,So The Interest Rate Risk is at very lower side.
(ii| Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates. The company's mainly transacting in INR and hence the company is not exposed to any
foreign currency risk.
|B| Credit risk
Credit impaired (stage 3)
The Company recognises a financial asset to be credit impaired and in stage 3 by considering relevant objective evidence,
primarily whether:
• Contractual payments of principal and/or interest are past due for more than 90 days;
• The loan is otherwise considered to be in default. Loan accounts where principal and/or interest are past due for more
than 90 days along with all other loans of such customer, continue to be classified as stage 3, till overdue across all
loan accounts are cleared.
Significant increase in credit risk (stage 2|
An assessment of whether credit risk has increased significantly since initial recognition is performed at each reporting
period by considering the change in the risk of default of the loan exposure. However, unless identified at an earlier stage,
any overdue of more than 30 day past due and up to 90 days past due as on the reporting date is considered as an indication
of financial assets to have suffered a significant increase in credit risk.
The measurement of risk of defaults under stage 2 is computed on homogenous portfolios, generally by tenors, underlying
collateral, source of income etc. The default risk is assessed using PD (probability of default) derived from past behavioural
trends of default across the identified homogenous portfolios. These past trends factor in the past customer behavioural
trends, credit transition probabilities.
Without significant increase in credit risk since initial recognition (stage 1)
ECL resulting from default events that are possible in the next 12 months are recognised for financial assets in stage 1.
The Company has ascertained default possibilities on past behavioural trends witnessed for each homogenous portfolio
using behavioural analysis and other performance indicators, determined statistically.
(i) Loans and advances (including loan commitments and gaurantees)
The estimation of credit exposure for risk management purposes is complex, as the exposure varies with changes in market
conditions, expected cash flows and the passage of time. The assessment of credit risk of a portfolio of assets entails
further estimations as to the likelihood of defaults occurring and of the associated loss ratios. The Company measures credit
risk for each class of loan assets using inputs such as Probability of Default ("PD") and Loss Given Default ("LGD").
Computation of allowance for impairment losses:
The Company prepares its financial statements in accordance with the IND AS framework.
As per the RBI notification on acceptance of IND AS for regulatory reporting, the Company computes provision as per IND
AS 109 as well as per extent prudential norms on Income Recognition, Asset Classification and Provisioning (IRACP). Where
impairment allowance in aggregate for the Company under Ind AS 109 is lower than the provisioning required under IRACP
(Including standard asset provisioning) for the Company, the difference is appropriated from net profit or loss after tax to
a separate 'Impairment Reserve'. Any withdrawals from this reserve shall be done only with prior permission from the RBI.
ECL allowances recognised in the financial statements reflect the effect of a range of possible economic outcomes,
calculated on a probability weighted basis, based on certain economic scenarios. The recognition and measurement of
ECL involves use of significant judgement and estimation. Forward looking economic forecasts are used in developing
the ECL estimates. Three scenarios sufficient to calculate unbiased ECL were used - representing the "Base case" (the
"Central" scenario) and two "Worst case" scenarios (the "Downside" scenario) and three "Best case' (the "Upside" scenario).
Probability weights are assigned to each scenario. The Central scenario is based on the Company outlook of GDP growth,
inflation, unemployment and interest rates for India and most relevant for the Company's loan portfolio. The Upside and
Downside scenarios generated at the reporting dates are designed to cover cyclical changes and are updated during the
year only if the economic conditions change significantly.
I n case where the estimate based on ECL model does not appropriately capture the stress in the portfolio given the lag
effect between the actual stress and its impact on ECL computation, the management estimates an additional provision
over and above the estimate based on the model and computation methodology stated above. This additional provision is
referred to as management overlay.
(ii| Other remaining financial assets (Other financial assets and loans]
Other financial assets mainly includes deposit and advances given, and receivables from recovery agents. Loans, being
a primary part of our operations, represent vehicle loans given to various parties for purchasing motor vehicles. Based on
assessment carried by the Company, entire receivable under this category is classified as "Stage 1". There is no history of
loss and credit risk and the amount of provision for expected credit losses on other financial assets is negligible.
(c) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities
when due.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.
Land is in the name of Theme Infotech Pvt Ltd which is related party and on that Building was developed and on that land
we are paying rent which is considered Lease under Ind AS 116.
8. There are no transactions with the Struck off Companies under Section 248 or 560 of the Companies, Act 2013.
9. The Company being an non-banking finance company, as part of its normal business, grants loans and advances to its
customers, other entities and persons ensuring adherence to all regulatory requirements. Further, the company has also
borrowed funds from banks, financial institutions in compliance with regulatory requirements in the ordinary course of
business.
Other than the transactions described above, no funds have been advanced or loaned or invested (either from borrowed
funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including
foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has also not
received any fund from any parties (Funding Party) with the understanding that the Company shall whether, directly or
indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
10. The Company has regrouped, reclassified and restated previous year figures to confirm to this year's presentation.
48.Notes to financial information
48.1 The Company has borrowings from banks and financial institutions on the basis of security of current assets and the
quarterly returns filed by the Company with the banks and financial institutions are in accordance with the unaudited books
of accounts of the Company for the respective
48.2 The Company has taken borrowings from banks and financial institutions and utilised them for the specific purpose for
which they were taken as at the Balance sheet date. Unutilised funds are held by the Company in the form of debt mutual
funds and short term fixed deposits till the time the utilisation is made subsequently.
48.3 Details of Benami Property held:
No proceedings have been initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder, as at 31 March 2025
48.4 Wilful Defaulter:
The Company is not a declared wilful defaulter by any bank or financial Institution or other lender, in accordance with the
guidelines on wilful defaulters issued by the Reserve Bank of India, during the year ended 31 March 2025
48.5 Undisclosed Income:
There have been no transactions which have not been recorded in the books of accounts, that have been surrendered or
disclosed as income during the year ended 31 March 2025, in the tax assessments under the Income Tax Act, 1961. There
have been no unrecorded income and related assets which were to be properly recorded in the books of account during
the year ended 31 March 2025
48.6 Details of Crypto Currency or Virtual Currency:
The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2025
48.7 Title Deeds of Immovable Properties not held in the name of the Company:
The Company does not hold any immovable property as at 31 March 2025. All the lease agreements are duly executed in
favour of the Parent Company for properties where the Parent Company is the lessee.
48.8 Revaluation of Property, plant and equipment and Intangible assets 1
There is no revaluation of Property, plant and equipment and other intangible assets during the year ended 31 March 2025.
48.9 Ultimate Beneficiary
No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed
funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including
foreign entities ('Intermediaries'), with the understanding, whether recorded in writing or otherwise, that the Intermediaries
shall, 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 provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
No funds (which are material either individually or in the aggregate) have been received by the Company from any person(s)
or entity(ies), including foreign entities ('Funding Parties'), with the understanding, whether recorded in writing or otherwise,
that the Company shall, 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 provide any guarantee, security or the like on behalf of the
ultimate beneficiaries.
48.10 Utilisation of Borrowed funds and share premium:
As a part of normal lending business, the Company grants loans and advances on the basis of security/ guarantee provided
by the Borrower/ co-borrower and makes investments. These transactions are part of Company normal non-banking finance
business, which is conducted ensuring adherence to all regulatory requirements.
As per our report of even date For and on bahalf of the Board of Director of
For Vonus Shah & Associates LLP Manba Finance Limited
Chartered Accountants CIN : L65923MH1996PLC099938
Firm registration number - 120878W/W101094
Sd/- Sd/- Sd/-
Venus B. Shah Manish K. Shah Monil M. Shah
Partner Managing Director Director
Membership No. - 109140 DIN -00979854 DIN -07054772
Sd/- Sd/-
UDIN - 25109140BMOQUI1173 Jay K. Mota Bhavisha A. Jain
Place - Mumbai Director & CFO Company Secretary
Date - 22.05.2025 DIN -03105256
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