Provisions, contingent liabilities and contingent assets
Provisions are recognised only when:
(i) an entity has a present obligation (legal or constructive) as a result of a past event; and
(ii) it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation; and
(iii) a reliable estimate can be made of the amount of the obligation
Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is
material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of
expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.
Contingent liability is disclosed in case of:
(i) a present obligation arising from past events, when it is not probable that an outflow of
resources will be required to settle the obligation; and
(ii) a present obligation arising from past events, when no reliable estimate is possible.
Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent assets
are reviewed at each Balance Sheet date.
Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under
such contract, the present obligation under the contract is recognised and measured as a provision.
Contingent assets are not recognised in the financial statements.
XVII. Statement of Cash Flows
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from
operating activities is reported using indirect method adjusting the net profit for the effects of:
i. changes during the period in operating receivables and payables transactions of a noncash nature;
ii. non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses, and undistributed profits
of associates and joint ventures; and
iii. all other items for which the cash effects are investing or financing cash flows
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for
general use as on the date of Balance Sheet.
Note: 28 The Company does not have any transactions with companies struck off under section 248 of the
companies Act, 2013 as on the Balance Sheet date
Note: 29 To the best of the knowledge and belief of the management, as on the date of balance sheet, 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 person(s), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary 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.
Note: 30 Financial risk management
The Company is a Non-Banking Financial Company registered with the Reserve Bank of India. On account of it's business activities it is exposed to various financial risks associated with financials products such as credit or
default risk, market risk, interest rate risk, liquidity risk and inflationary risk. However, the Company has a robust financial risk management system in place to identify, evaluate, manage and mitigate various risks associated
with its financial products to ensure that desired financial objectives are met. The Company's senior management is responsible for establishing and monitoring the risk management framework within its overall risk
management objectives and strategies, as approved by the Board of Directors. Such risk management strategies and objectives are established to identify and analyse potential risks faced by the Company, set and monitor
appropriate risk limits and controls, periodically review the changes in market conditions and assess risk management performance. Any change in Company's risk management objectives and policies needs prior approval of it's
Board of Directors.
Market risk:
Market risk is a form of systematic risk associated with the day-to-day fluctuation in the market prices of shares and securities and such market risk affects all securities and investors in the same manner. These daily price
fluctuations follows its own broad trends and cycles and are more news and transaction driven rather than fundamentals and many a times, it may affect the returns from an investment. Market risks majorly comprises of two
types - interest rate risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risks include borrowings and investments
Note: 31 The Company does not have any transactions not recorded in books of accounts that has been surrendered or disclosed as income during the year and previous year in the tax assessments under the Income Tax Act, 1961.
Note: 32 The Company has not traded or invested in any crypto currency or virtual currency during the year and previous year.
Note: 33 There has been no fraud by the Company or on the Company during the year and previous year.
Note: 34 The company has made Investment in Un-quoted Equity Shares of BRG Iron and Steel Co Private Limited to the extent of 3,05,46,667 equity shares of face value of ^10/- each, amounting to ^45,82,00,005/-. However pursuant
to order of the Honb'le National Company Law Tribunal, Kolkata Bench, dated 28th February, 2022, the investment in equity shares of BRG Iron and Steel Co Private Limited has been extinguished. Consequently the loss of
^45,82,00,005/- has been recognised in the Statement of Profit and Loss.
Note: 35 Previous year figures have been regrouped and re-arranged, wherever necessary, to confirm to the current year's classification
As per our Report of even date.
FOR R K KANKARIA & CO For and on Behalf of the Board of Directors
Chartered Accountants Shree Securities Limited
Firm Reg. No : 321093E
Bhavya Dhiman Vaishali Kumari Shaw
Managing Director Director
DIN:09542964 DIN:08804508
CA. RAJESH KUMAR KANKARIA
(Partner)
M. No. : 082796
Varsha Maniar Shubham Gupta
Dated: 30.05.2024 Company Secretary Chief Financial Officer
Place :Kolkata PAN : BVQPA6577A
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