(C) Rights, preferences and restrictions :_
i) The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.
ii) The Company declares and pays dividend in Indian Rupees. The dividend , if any, proposed by the Board of directors is subject to the approval of the shareholders in ensuing Annual General Meeting.
ii) In event of liquidation of the Company,the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The Distribution will be in proportion to the number of equity shares held by the shareholders.
(F) Capital Management
i) For the purpose of the Company's capital management, capital includes issued equity capital and all other reserves attributable to the equity holders of the Company.
ii) The Company's objective for capital management is to maximize shareholder value and safeguard business continuity. The Company determines the capital requirement based on annual operating plans and other strategic plans. The funding requirements are met through equity and operating cash flows.
(No Provision for tax has been made in view of loss incurred by the company and No Deferred Tax Asset is not recognized in respect of carried forward losses and other comprehensive Loss, as there is no virtual certainly with respect to the reversal of the same on near future years.)
(There is no change in the applicable tax rate as compared to previous financial year.)
22 Financial Instruments
Financial assets and liabilities are recognized when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.
24 Segment Reporting
The company is engaged in financial activity and all other activities of the company revolve around the main business and therefore there are no reportable segments .
25 Disclosure of Corporate Social Responsibility (CSR) activities u/s 135 of the Companies Act, 2013 is as under:
The provisions of section 135 of the Companies Act, 2013 is not applicable to your Company as the Company does not fall under the criteria limits mentioned in the said section of the Act. Hence, the Company has not taken voluntary initiative towards any activity mentioned for Corporate Social Responsibility
Impariment Reserve
As per RBI circular no. RBI/2019-20/ 170 DOR(NBFC).CC.PD.No. 109/22.10.106/2019-20 dated March 13, 2020, impairment reserve is created on excess of provisioning required as per Income Recognition, Asset Classification and Provision norms of RBI over impairment allowance under Ind AS - 109.
As per RBI circular no. RBI/2019-20/170 DOR(NBFC).CC.PD.No. 109/22.10.106/2019-20 dated March 13, 2020, NBFCs are required to provide for impairment on financial assets in accordance with Ind AS.
Further, as per the circular, impairment reserve is required to be created on excess of provisioning required as per Income Recognition, Asset Classification and Provision (IRACP) norms of RBI (including standard assets) over impairment allowance under Ind AS - 109. The Company is following Board approved methodology for computation of Impairment Allowance towards provisioning for its loan assets and Impairment Allowance (ECL Provision). In compliance with the the said RBI circular, company has calculated provision required under IRACP Norms (including standard assets provisions) and company is not required to appropriate any amount to “Impairment Reserve" during the year.
In accordance with ECL method as prescribed in Ind AS - 109, impairment allowance worked out is Rs. Nil.
Equity Instruments through Other Comprehensive Income
The company has elected to recognise changes in the fair value of investments in equity securities in other comprehensive income. This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income. The company transfers amounts from this reserve to retained earnings when the relevant equity securities are disposed off.
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