vi. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not recognised for future operating losses. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
The Reserve Bank of India its Circular dated June 6, 2022, has issued guidelines on differential provisioning for NBFC-UL which shall be effective from October 01, 2022 ('Circular1) to all NBFCs to make provision of 0.40% on Standard Assets. Accordingly, the Company has made provision @ 0.40% on Standard Assets in accordance therewith
Contingent liabilities are not recognized and are disclosed by way of notes to the financial statements when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or when there is a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the same or a reliable estimate of the amount in this respect cannot be made.
Contingent assets are not recognised but disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.
vii. Taxes on Income:
Tax expenses comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. This liability is calculated at the applicable tax rate or minimum alternate tax rate u/s 115JB of the Income Tax Act, 1961 as the case may be for current taxes on Income. Deferred income tax reflects the impact of timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax laws enacted or substantively enacted at the balance sheet date.
Deferred Tax resulting from “timing difference” between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profit.
MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the Minimum Alternative Tax (MAT) credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.
viii. Earnings per share:
^ Earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders, by the weighted average number of equity shares outstanding during the year.
^ For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.
OTHER NOTES ON ACCOUNTS:
i. Based on the information / documents available with the Company, no creditor is covered under Micro, Small and Medium Enterprise Development Act, 2006. As a result, no interest provision/payments have been made by the Company to such creditors for the year ended March 31, 2024.
ii. Loans & advances balances are subject to confirmation by the respective parties.
iii. Segment Reporting:
The Company is engaged in one business segment viz Non-Banking Financial Services and hence, there are no separate reportable segments. However, going forward the Board is contemplating to evaluate respective differential Risks & Rewards applicable to the revenue generating functions of Investment in mutual funds vis-a-vis interest income from unsecured loans and recognise the segment information on the same. The incomes and assets engaged in these two sub-activities are mentioned with appropriate description & nomenclature in the schedules to financial statements.
iv. Related party disclosure as identified by the management in accordance with the Indian Accounting Standard (Ind AS) 24 on "Related Party Disclosures” are as follows:
v. The Company has Complied this information based on the current information in its possession. As at 31.03.2024, no supplier has intimated the Company about its status as a Micro or Small enterprise or its Registration with the appropriate authority under Micro, Small and Medium Enterprise Development Act, 2006.
Amount due to Micro Small and Medium Enterprises as on 31.03.2024 is. NIL. (based on disclosure made by the vendors, or absence of the same).
vi. The Financial Statements and Notes on Accounts has been prepared as per the Companies Act, 2013 with their Schedule as the same is effective from 1st April, 2014.
vii. Effective from April 1, 2014, the Company has been charging depreciation based on the useful life of the assets as per the requirement of Schedule II of the Companies Act, 2013. It has recomputed the depreciation on various fixed assets in accordance with and in the manner prescribed with Part C of Schedule II of the Companies Act, 2013.
viii. Provision for taxation on Income for the year has been made under the tax calculated on income under normal computation as per income tax act being higher than the tax computed under section 115JB of the income tax act.
ix. The management has assessed that there is no impairment of Fixed assets requiring provisions in the accounts. Accordingly, there is no debit to the Profit & Loss Account for the impairment of Assets.
x. Deferred Taxation:
The company recognises the deferred tax liabilities/assets on the timing differences for the period in which there is virtual certainty of future income by way of prudence in accordance with Ind AS-12 " Income T axes "
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences.
xi. No Provision has been made on account of gratuity as none of the employees have put in completed years of Service as required by the payment of Gratuity Act.
xii. No provision has been made on account of leave salary as there are no leave to the credit of employees as at the end of the year.
xiii. Previous Year figures have been regrouped, rearranged or re-casted wherever considered necessary.
xiv. Information required to be furnished under paragraph 9BB of Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 is given in separate Annexure.
xv. The bad debts associated with Loans & Advances is reported on the as Bad Debts Expense supported by Board Resolution passed by the Board of Directors in its meeting.
xvi. Additional regulatory information pursuant to Ministry of Company Affairs Notification dated March 24, 2021:
a. Compliance with approved Scheme(s) of Arrangements - There are no Scheme of Arrangements approved by the Competent Authority in terms of section 230 to 237 of the Act.
b. Utilisation of borrowed funds and share premium- Utilisation of borrowed funds and share premium
c. 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) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
d. Undisclosed income - There are no transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961.
e. Corporate Social Responsibility (CSR) — Not applicable to the Entity
f. Details of Crypto Currency or Virtual Currency - The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
For G.C. Bafna & Co. For and in behalf of the Board of Directors
Chartered Accountants FRN: 319104E
Subhadeep Mukherjee Gourav Goel
GULAB CHAND BAFNA Managing Director Director
Partner DIN: 03060827 DIN: 06850998
Membership No-054241
Kolkata Ashok Kumar Agarwal Prerna Mall
May 30, 2024 Chief Financial Officer Company Secretary
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