n. Provisions, Contingent Liabilities and Contingent Assets
Contingent liabilities as defined in Ind AS 37 “Provisions, Contingent Liabilities and
Contingent Assets” are disclosed by way of notes to accounts. Provision is made if it
becomes probable that an outflow of future economic benefits will be required for an item
previously dealt with as a contingent liability.
o. Statement of Cash flow
Cash flows are reported using the indirect method, whereby the net profit before tax is
adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals
of the past or future cash receipts or payments. The cash flows from regular revenue
generating, investing & financing activities of the company are segregated.
p. Statutory Reserve and Provision of Standard Assets
A Statutory Reserve of 20% of the current profit after tax is made during the year in
pursuance of section 45-IC of the Reserve Bank of India Act, 1934.
Provision is made @ 0.40 % of Standard assets which includes secured and unsecured
loans granted to companies and other entities.
q. Prudential Norms
For the purpose of identifying the assets as non-performing assets in pursuance of Non¬
Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998, the
Company follows generally accepted accounting principles and industry practices.
r. Taxation
Current tax comprises amount of tax payable in respect of the taxable income or loss for
the year determined in accordance with Income Tax Act, 1961 and any adjustment to the
tax payable or receivable in respect of previous years. The Company’s current tax is
calculated using tax rates that have been enacted or substantively enacted by the end of the
reporting period.
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. 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 realised,
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.
Capital management
The Company has only equity capital. The Company operates as an Investment Company
and Loan Company and consequently is registered as a Non-Banking Financial Institution -
Investment and Credit Company (NBFC-ICC) with Reserve Bank of India (RBI). As per
RBI’s ‘Scale Based Regulations’ (SBR), the Company is classified as NBFC - Base Layer
(NBFC-BL).
The funds are currently invested in equity, debt, money market and other instruments or
given as loan depending on economic conditions in line with Investment Policy set by the
Management. Safety of capital is of prime importance to ensure availability of capital for
operations. Investment objective is to provide safety and adequate return on the surplus
funds.
Note 25 In the opinion of the Directors, balances in Loans and Advances & Current Assets,
Debtors and Creditors, borrowings have a value on realization of current assets in the
ordinary course of business and it would not be less than the amount at which they are
stated in the Balance sheet. According to the management, provisions for all the loans
and liabilities are adequate. Balances in Debtors, Creditors, Loans, and advances and
current assets are subject to confirmation & reconciliation.
Note 26 Auditors’ remuneration in accordance with paragraph 5A (j) of part II of Schedule III
to the Companies Act 2013 is as under:
Note 29 The Company is mainly engaged in the business of providing finance and dealing in
shares and securities. All other activities of the Company revolve around the main
business, and as such in the opinion of the management, there is no separate reportable
segment as per IND AS 108 on ‘Operating Segments’ in respect of the Company.
The Company operates in single segment only. There are no operations outside India
and hence there is no external revenue or assets which require disclosure.
Note 30 Loans and advances given to the employees and associates and for projects do not
carry any stipulation as to repayment of principal or payment of interest; and are being
repaid periodically. Accordingly, these are considered as good and not considered as
part of non-performing assets.
Note 39 The Company has a process whereby periodically all long-term contracts are assessed
for material foreseeable losses. At the year end, the Company has reviewed and
ensured that adequate provision as required under any law / accounting standards for
material foreseeable losses, including derivatives, on such long-term contracts has
been made in the books of account.
Note 40 The Company has reviewed its pending litigations and proceedings and has adequately
provided for where Provisions are required and disclosed the contingent liabilities
where applicable, in its financial statements. The Company does not expect the
Note 45 The Notes referred to in the Balance Sheet and Statement of Profit and Loss Account
form an integral part of the Accounts.
Note 46 Company do not have borrowings from Banks or financial institutions on the basis of
security of current assets, hence disclosure to that effect is not required.
Note 47 The Company does not have any benami property and no proceedings have been
initiated or are pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder.
Note 48 There have been no events after the reporting date that require disclosure in these
financial statements.
Note 49 Company do not have any transactions with companies struck off under section 248 of
Companies Act, 2013 or section 560 of Companies Act,1956, hence disclosure to that
effect is not required.
Note 50 There are no charges or satisfaction yet to be registered with Register of Companies
(ROC) beyond the statutory period.
Note 51 Company is not declared wilful defaulter by any bank, financial institution or other
lender, hence disclosure to that effect is not required.
Note 52 There is no such scheme of Arrangements has been approved by the Competent
Authority in terms of Section 230 to 237 of the Companies Act. 2013.
Note 53 Undisclosed Income
Note 54 Company has not traded or invested in Crypto Currency or Virtual Currency during the
financial year, has disclosure is not required to that effect.
Note 55 Disclosure of details as required in terms of paragraph 13 of Non-Banking Financial
(Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank)
Directions, 2007):
Note 59 Other information pursuant to General Instructions for preparation of Balance Sheet
and Profit & Loss Account of Schedule III to the Companies Act 2013 is not
applicable.
UDIN: 25035809BMK0HH7475
AS PER OUR REPORT OF EVEN DATE
FOR CHAITANYA C. DALAL & COMPANY FOR AND ON BEHALF OF THE BOARD OF
CHARTERED ACCOUNTANTS MUKESH BABU FINANCIAL SERVICES LIMITED
Chaitanya C. Dalal Mukesh Babu Meena Babu
Partner Managing Director Director
Membership No.35809 DIN:00224300 DIN:00799732
FRN NO. 101632W
Mahesh Thakar Nupur Chaturvedi
Chief Financial Officer Company Secretary
ACS: A30139
Place : Mumbai Place : Mumbai
Date : 30/04/2025 Date : 30/04/2025
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