L. Provisions and contingencies
Provisions are recognised when the Company has a present obligation 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 a reliable estimate can be made of the amount of the
obligation. The timing of recognition and quantification of the liability require the
application of judgement to existing facts and circumstances, which can be subject to
change. Since the cash outflows can take place many years in the future, the carrying
amounts of provisions and liabilities are reviewed regularly and adjusted to take account of
changing facts and circumstances.
Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.
Contingent assets are neither recognised nor disclosed in the Financial Statements.
M. Employee Benefits
i) Short term employee benefits:
The undiscounted amount of short term employee benefits expected to be paid in
exchange for the services rendered by employees are recognised as an expense
during the period when the employees renderthe services.
ii) The Company is exempted from Payment of Gratuity Act, 1972 in view of its
strength of employees being less than threshold limit attracting the applicability of
the said statute and as such no provision has been made for the said liability. Leave
encashment is not provided on actuarial basis in view of employees being less than
10 and same is charged on actual basis.
N. Earnings Per Share
i) Basic Earnings pershare:
Basic earnings per share is computed by dividing the net profit for the period
attributable to the equity shareholders of the Company by the weighted average
number of equity shares outstanding during the financial year. The weighted
average number of equity shares outstanding during the financial year and for all
periods presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity shares that have changed the number of equity
shares outstanding, without a corresponding change in resources.
ii) Diluted Earnings per share:
For the purpose of calculating diluted earnings per share, the net profit for the period
attributable to equity shareholders and the weighted average number of shares
outstanding during the period is adjusted forthe effects of all dilutive potential equity
shares.
O. Critical Estimates and Judgments.
The preparation of the financial statements required the Management to exercise
judgment and to make estimates and assumptions. These estimates and associated
assumptions are based on historical experiences and various other factors that are
believed to be reasonable under the circumstances. Actual results may differ from these
estimates. The estimates and underlying assumptions are reviewed on an on-going basis.
Revision to accounting estimates are recognised in the period in which the estimate is
revised if the revision affects only that period, or in the period of the revision and future
periods if the revision affects both current and future period.
The areas involving critical estimates or judgements are:
i. Estimated useful life of Tangible Assets
The Company reviews the useful lives and carrying amount of property, plant and
equipment at the end of each reporting period. This reassessment may result in
change in depreciation and amortisation expense in future periods.
ii. Estimation of Current Tax Expense and Income Tax Payable / Receivable
The calculation of Company's tax charge necessarily involves a degree of
estimation and judgement in respect of certain items whose tax treatment cannot
be finally determined until resolution has been reached with the relevant tax
authority or, as appropriate, through a formal legal process. The final resolution of
some of these items may give rise to material adjustment to taxable profits/losses.
iii. Impairment of Financial Assets
At each balance sheet date, based on historical default rates observed over
expected life, the management assesses the expected credit loss on outstanding
receivables.
iv. Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is based on an
assessment of the probability of the future taxable income against which the
deferred tax assets can be utilised.
v. Contingent liabilities
At each balance sheet date basis, the management judgment, changes in facts and
legal aspects, the Company assesses the requirement of provisions against the
outstanding warranties and guarantees. However, the actual future outcome may
be different from this judgement.
vi. Fair value measurements
Management applies valuation techniques to determine the fair value of financial
instruments (where active market quotes are not available). This involves
developing estimates and assumptions consistent with how market participants
would price the instrument.
Terms / Rights attached to equity shares
The Company has only one class of equity share having par value of Rs 1 per share. Each
holder of equity share is entitled to one vote per share held. All the equity shares rank pari
passu in all respects including but not limited to entitlement for dividend, bonus issue and
rights issue. In the event of liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after distribution of all liabilities in proportion to their
shareholding.
I. Fair value hierarchy
The fair values 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.
This section explains the judgements and estimates made in determining the fair values
of the financial instruments that are
(a) recognised and measured at fair value and,
(b) measured at amortised cost and for which fair values are disclosed in the financial
statements.
To provide an indication about the reliability of the inputs used in determining fair value,
the company has classified its financial instruments into the three levels prescribed
under the Indian accounting standard. An explanation of each level is as follows:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted
prices. For example, listed equity instruments that have quoted market price.
Level 2: The fair value of financial instruments that are not traded in an active market
(for example, traded bonds, over-the- counter derivatives) is determined using valuation
techniques which maximise the use of observable market data and rely as little as
possible on entity-specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data,
the instrument is included in level 3. This is the case for unlisted equity securities,
contingent consideration and indemnification asset included in level 3.
II. Valuation techniques used to determine fair value
Significant valuation techniques used to value financial instruments include: • the fair
value of forward foreign exchange contracts is determined using forward exchange
rates at the balance sheet date.
o Use of quoted market price or dealer quotes for similar instruments
o Using discounted cash flow analysis.
The fair values computed above for assets measured at amortised cost are based on
discounted cash flows using a current borrowing rate. They are classified as level 2 fair
values in the fair value hierarchy due to the use of unobservable inputs.
The Company has exposure to the following risks arising from financial instruments:
• Credit risk;
• Liquidity risk; and
• Market risk
A. Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting
in a financial loss. The company is exposed to credit risk from its operating
activities (primarily for trade receivables and loans) and from its financing
activities (deposits with banks and other financial instruments).
Credit risk management
Credit risk is managed through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers to which the Company
grants credit terms in the normal course of business. The Company establishes
an allowance for doubtful debts and impairment that represents its estimate of
incurred losses in respect of trade and other receivables and investments.
The Company’s maximum exposure to credit risk as at 31 March, 2024 and 2025
is the carrying value of each class of financial assets
i Trade and other receivables
Credit risk on trade receivables is limited based on past experience and
management's estimate.
ii Cash and Cash Equivalents
The Company held cash and bank balance with credit worthy banks of
Rs.7,85,629.35 at 31st March 2025, and (Rs.8,12,286.47/- at March 31,
2024). The credit risk on cash and cash equivalents is limited as the
Company generally invests in deposits with banks where credit risk is
largely perceived to be extremely insignificant.
B. Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or
meet its obligations on time or at a reasonable price. For the Company, liquidity
risk arises from obligations on account of financial liabilities - trade payables and
borrowings.
Liquidity risk management
The Company’s approach to managing liquidity is to ensure that it will have
sufficient funds to meet its liabilities when due without incurring unacceptable
losses. In doing this, management considers both normal and stressed
conditions. A material and sustained shortfall in our cash flow could undermine the
Company’s credit rating and impair investor confidence.
The Company maintained a cautious funding strategy, with a positive cash
balance throughout the year ended 31 st March, 2025 and 31 st March, 2024. This
was the result of cash delivery from the business. Cash flow from operating
activities provides the funds to service the financing of financial liabilities on a day-
to-day basis. The Company’s treasury department regularly monitors the rolling
forecasts to ensure it has sufficient cash on-going basis to meet operational
needs. Any short term surplus cash generated by the operating entities, over and
above the amount required for working capital management and other operational
requirements, are retained as cash and cash equivalents (to the extent required).
C. Market risk
Market risk is the risk that changes in market prices such as foreign exchange
rates, interest rates and equity prices will affect the Company’s income or the
value of its holdings of financial instruments. Market risk is attributable to all
market risk sensitive financial instruments. The Company is exposed to market
risk primarily related to interest rate risk and the market value of the investments.
i. Currency Risk
The functional currency of the Company is Indian Rupee. Currency risk is
not material, as the Company does not have any exposure in foreign
currency.
ii. Interest Rate Risk
Interest rate risk can be either fair value interest rate risk or cash flow
interest rate risk. Fair value interest rate risk is the risk of changes in fair
values of fixed interest bearing investments because of fluctuations in the
interest rates. Cash flow interest rate risk is the risk that the future cash flows
of floating interest bearing investments will fluctuate because of fluctuations
in the interest rates.
Exposure to interest rate risk
According to the Company interest rate risk exposure is only for floating rate
borrowings. Company does not have any floating rate borrowings on any of
the Balance Sheet date disclosed in this financial statements.
iii Price Risk
Price risk is the risk that the fair value of a financial instrument will fluctuate
due to changes in market traded price. It arises from financial assets such as
investments in quoted instruments.
a Fair value sensitivity analysis for fixed rate Instruments
The Company does not account for any fixed rate financial assets or
financial liabilities at fair value through Profit or Loss. Therefore, a
change in interest rates at the reporting date would not affect Profit or
Loss.
b Cash flow sensitivity analysis for variable rate Instruments
The company does not have any variable rate instrument in Financial
Assets or Financial Liabilities.
The company is exposed to price risk from its investment in equity
instruments classified in the balance sheet at fair value through other
comprehensive income.
The company’s objectives when managing capital are to
• safeguard their ability to continue as a going concern, so that they can continue to
provide returns for shareholders and benefits for other stakeholders, and
• maintain an optimal capital structure to reduce the cost of capital.
The capital structure of the Company is based on management’s judgement of the
appropriate balance of key elements in order to meet its strategic and day-today needs.
We consider the amount of capital in proportion to risk and manage the capital structure
in light of changes in economic conditions and the risk characteristics of the underlying
assets.
The management monitors the return on capital as well as the level of dividends to
shareholders. The Company will take appropriate steps in order tomaintain, or if
necessary adjust, its capital structure.
28. 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 or entity,
including foreign entity (“Intermediaries”), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, 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.
29. No funds (which are material either individually or in the aggregate) have been received
by the Company from any person or entity, including foreign entity (“Funding Parties”),
with the understanding, whether recorded in writing or otherwise, that the Company
shall, whether, 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.
30 Additional Regulatory Information
(i) The Company does not have any immovable property, hence no disclosure
regarding title deeds of Immovable Property (other than properties where the
Company is the lessee and the lease agreements are duly executed in favour of
the lessee) is required to be disclosed.
(ii) During the year, the Company has not revalued its Property, Plant and Equipment
(including Right-of-Use Assets).
(iii) The company does not hold any intangible assets during the year March 31,2025.
(iv) No proceedings have been initiated during the year or are pending against the
Company as at March 31,2025 for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made
thereunder.
(v) No Loans or Advances in the nature of loans has been granted to promoters,
Directors, KMPs and the related parties (as defined under Companies Act, 2013)
during the year.
(vi) The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
(vii) The Company has not borrowed any amount from banks or financial institutions
on the basis of security of current assets.
(viii) As per the information available with us, the Company did not have any
transactions with companies struck off during the financial year.
(ix) Following Ratios to be disclosed:-
(x) The Company has not traded or invested in Crypto currency or Virtual Currency during the
financial year 2024-25.
(xi) Due to Non-availability of information about the amount dues to small/micro undertaking, we are
unable to comment that the interest if any is due to such undertaking or not.\
(xii) There is no obligation in respect of gratuity and leave encashment during the year March 31,2025
(xiii) Balances are relied upon as per books of accounts wherever the confirmations from debtors
/creditors /Loans /Advances are not available. Debtors and Creditors Balances are subject to
Confirmation. Debtors & Creditors Balances are as per Management Representation and relied
upon by the Auditors.
(xiv) Corporate social responsibility
a) Amount required to be spent by the company during the year NA
b) Amount of expenditure incurred NA
c) Nature of CSR activities NA
(xv) There is no “undisclosed income" which has been reported by the Company during the
assessment.
(xvi) Other Income of Rs. 6,00,00,000/- includes amount recovered by the management from
Shreepati Developers & Builders Ltd. The said party was previously written off by the Company.
Therefore, on receiving such amount, the same has been classified as Other Income.
31. Related Party Transactions & Related Party Disclosures underlnd AS-24 “Related Party”
As per Indian Accounting standard 24 “Related Party Disclosures” the Company’s related parties
and transactions with them are disclosed below.
34. Segment Information
Company is engaged in the business of Trading in Shares and incidental activities
thereto which, in the context of Ind AS 108 on Operating Segments, constitutes a single
reportable segment.
35. Balance written off during the Year
I. The Goods and Service tax (GST) have been written off during the year as per
Management Estimates and tax opinions obtained stating that the said amount is
not payable.
36. The Company had maintained trading and demat accounts with Guiness Securities
Limited since 2014 and availed margin funding facilities. As per the public notice issued
by the National Stock Exchange, Guiness Securities Limited has been declared a
defaulter and is currently untraceable. As of March 31, 2025, the Company held
securities valued at ?8,58,14,107.14 in its demat account with Guiness Securities
Limited. Against this, an amount of ?7,70,35,646.19 was payable to Guiness Securities
Limited. The management has adjusted the value of these securities against the
outstanding payable, resulting in a net recoverable amount of ?87,78,460.95. Due to the
inability to trace Guiness Securities Limited and recover the balance, the Company has
written off the said amount of ?87,78,460.95 as bad debts under "Other Expenses" in the
Statement of Profit and Loss for the year ended March 31,2025.
37. Balance Confirmation
The debit and credit balances for Unsecured Loans (Loan from Companies & Loan from
Related Parties), Advances, Debtors, Creditors and other Balances are subject to
confirmation and reconciliation.
38. Dues/Outstanding Demand pertaining to Previous Assessment Years
Any Dues and/or Outstanding demands pertaining to any previous Financial Years,
preceding thefinancial year under audit that are served afterthe end of the financial year
under audit are disclosed in the Financial Statements of the year in which such
communication or Demand Notice/Orderhave been served.
39. Prior Year Comparatives
Previous year figures have been regrouped, re-arranged or reclassified wherever
necessary to conform to the current year classification. Figures in brackets pertain to
previous year.
For B M Gattani & Co. For MONOTYPE INDIA LIMITED
Chartered Accountants (CIN : L72900MH1974PLC287552)
ICAIFRN : 113536W
Balmukund N Gattani (Naresh Jain) (Suryakant Kadakane)
Proprietor Whole Time Director & CFO Director
Membership No. 047066 DIN: 00291963 DIN: 02272617
UDIN : 25047066BMLJLV1810
Date: 28/05/2025 (Prerna Mehta)
Place: Mumbai Company Secretary
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