Note No.: 31 Disclosures of Provisions required by Indian Accounting Standards (Ind AS) 37 on "Provisions, Contingent Liabilities and Contingent Assets".
Accordingly, in the opinion of the Management, there are no provisions for which disclosure is required duimg the financial year 2024-25 as per Ind (AS) 37 on "Provisions, Contingent Liabilities and Contingent Assets".
Contingent Liabilities and Commitments
There are no other Contingent Liabilities and Capital Commitments which needs to be disclosed in the Financial Statement.
The table shown below analyses financial instruments carried at fair value.The different levels have been defined below 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 asset or liability that are not based on observable market data (unobservable inputs)
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the value that would eventually be received or settled. The loans given to the customers are repayble on demand basis. Hence classification of the fair value of the financial assets and liabilities as per the measurment at the end of reporting period
II Financial risk management
The Company has exposure to the following risks arising from financial instruments:
• Credit risk
• Liquidity risk
• Interest rate risk
Risk management framework
The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The Board of Directors have authorised senior management to establish the processes and ensure control over risks through the mechanism of properly defined framew ork in line with the businesses of the company.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risks limits and controls, to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in market conditions and the Company's activities.
The Company has policies covering specific areas, such as interest rate risk, foreign currency risk, other price risk, credit risk, liquidity risk, and the use of derivative and non-derivative financial instruments. Compliance w ith policies and exposure limits is reviewed on a continuous basis.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers.
The Company's credit risk is primarily to the amount due from customer and investments. The Company maintains a defined credit policy and monitors the exposures to these credit risks on an ongoing basis. Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with scheduled commercial banks with high credit ratings assigned by domestic credit rating agencies.
The maximum exposure to the credit risk at the reporting date is primarily from Loan given. Loan given are unsecured . The Company does monitor the economic enviorment in which it operates. The Company manages its Credit risk through credit approvals, establishing credit limits and continuosly monitoring credit worthiness of customers to which the Company grants credit terms in the normal course of business.
This definition of default is determined by considering the business environment in which entity operates and othe macro-economic factors. Further, the Company does not anticipate any material credit risk of any of its other receivables.
(ii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
The Company believes that its liquidity position, including total cash (including bank deposits under lien and excluding interest accrued but not due) of Rs. 7.52 (in lakhs) as at March 31.2025 (March 31,2024: Rs. 9.95 (in lakhs)) and the anticipated future internally generated funds from operations will enable it to meet its future known obligations in the ordinary course of business.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company's policy is to regularly monitor its liquidity requirements to ensure that it maintains sufficient reserves of cash and funding from group companies to meet its liquidity requirements in the short and long term.
iii). Market risk
Market risk is the risk that the 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, the Company mainly has exposure to one type of market risk namely: interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
a. Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's main interest rate risk arises from long-term and short term borrowings with variable interest rates, which expose the Company to cash flow interest rate risk.
b. Capital Management
The Capital Structure of the Company consists of equity, debt, cash and cash equivalents. The Company's objective for capital management is to maintain the capital structure w hich will support the Company's strategy to maximize shareholders's value, safeguarding the business continuity and help in supporting the grow th of the Company.
Note No.: 35 Figures have been rounded off to the nearest lakhs of rupees.
Note No.: 36 The standalone financial statements were approved for issue by the Board of Directors of the Company on 29th May, 2025 subject to approval of shareholders.
Note No.: 38 There have been no other events after the reporting date that require disclosure in these financial statements
Note No.: 39 The has not made any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act 1956
Note No.: 40 Disclosure of Penalties imposed by RBI and other regulators
During the current year and the previous year, there arc no penalties imposed by RBI and other regulators.
Note No.: 41 Previous year amounts have been re-grouped / re-castcd wherever considered necessary, to make them comparable with those of the current year.
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