iv) Provisions and contingent liabilities
Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a
reliable estimate of the amount of the obligation. When a provision is measured using the cash flows estimated to settle
the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of
money is material). The discount rate used to determine the present value is a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the
passage of time is recognised as interest expense.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the
control of the Company or 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 obligation or a reliable estimate of the amount cannot be made.
v) Revenue recognition
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.
Loan processing fees income is accounted for on effective interest basis. Arranger fees / Asset monitoring fees income is
accounted for on accrual basis.
Dividend income from investments is recognised when the Company's right to receive payment has been established
(provided that it is probable that the economic benefits will flow to the Company and the amount of dividend income can
be measured reliably).
vi) Exceptional items
When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that
their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of such items
is disclosed separately as Exceptional items.
vii) Taxes on income
Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or
loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the
Income Tax Act, 1961.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
standalone financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised
for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the
temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that
it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
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.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting
for a business combination, the tax effect is included in the accounting for the business combination.
viii) Cash and cash equivalents
In the cash flow statement, cash and cash equivalents includes cash on hand, demand deposits with banks, other short¬
term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are
shown within borrowings in current liabilities in the balance sheet.
ix) Borrowing costs
Borrowing costs directly attributable to acquisition or construction of qualifying assets (i.e. those fixed assets which
necessarily take a substantial period of time to get ready for their intended use) are capitalised. Other borrowing costs are
recognised as an expense on effective interest rate basis.
x) Earnings per share
Basic_earnings_per share
The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders by weighted
average number of equity shares outstanding during the reporting year.
Diluted_earnings_per share
Number of equity shares used in computing diluted earnings per share comprises the weighted average number of shares
considered for deriving basic earnings per share and also weighted average number of equity shares which would have
been issued on the conversion of all dilutive potential shares. In computing diluted earnings per share only potential equity
shares that are dilutive are included.
xi) Property, plant and equipment
All Property, Plant and Equipment are stated at cost of acquisition, less accumulated depreciation and accumulated
impairment losses, if any. Direct costs are capitalised until the assets are ready for use and includes freight, duties, taxes
and expenses incidental to acquisition and installation.
The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other
repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
Subsequent expenditures related to an item of Property, Plant and Equipment are added to its book value only if they
increase the future benefits from the existing asset beyond its previously assessed standard of performance.
Losses arising from the retirement of, and gains or losses arising from disposal of Property, Plant and Equipment are
recognised in the Statement of Profit and Loss.
Depreciation is provided on a pro-rata basis on the straight line method ('SLM') over the estimated useful lives of the
assets specified in Schedule II of the Companies Act, 2013.
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
xii) Intangible Assets
Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment losses, if
any.
xiii) Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired.
For the purposes of assessing impairment, the smallest identifiable group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows from other assets or group of assets, is considered as
a cash generating unit. If any such indication exists, the Company estimates the recoverable amount of the asset. The
recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. If such recoverable
amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss
and is recognised in the Statement of Profit and Loss. If at the Balance Sheet date there is an indication that a previously
assessed impairment loss no longer exists or may have decreased, the recoverable amount is reassessed and the asset
is reflected at the recoverable amount.
23 Capital management
The Company manages its capital to ensure that it will be able to continue as going concern while maximizing the return
to stakeholders. The capital structure of the Company consists of only share capital.
The Company being a Non-Deposit taking NBFC has to maintain a Capital to Risk Assets Ratio (CRAR) of 15%. The
Company determines the amount of capital required on the basis of annual as well as long term operating plans and
other strategic investment plans. The funding requirements are met through equity or other short-term borrowings. The
Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt
portfolio of the Company. There is no direct and indirect real estate exposure.
24 Risk management
Risk management is an integral part of the Company's business strategy. The Risk management oversight structure
includes Committees of the Board and Management Committees. Company's risk philosophy is to develop and maintain
a healthy portfolio which is within its risk appetite and the regulatory framework. While the Company is exposed to various
types of risks, the most important among them are liquidity risk, interest rate risk, credit risk, regulatory risk and fraud and
operational risk. The measurement, monitoring and management of risks remain a key focus area for the Company.
The Company's risk management strategy is based on a clear understanding of various risks, disciplined risk assessment
and measurement procedures and continuous monitoring. The policies and procedures established for this purpose are
continuously benchmarked with market best practices.
The Risk Management Committee of the Board (“RMC”) reviews compliance with risk policies, monitors risk tolerance
limits, reviews and analyse risk exposure and provides oversight of risk across the organization. The RMC nurtures a
healthy and independent risk management function to inculcate a strong risk management culture in the Company and
broadly perceives the risk arising from (i) credit risk, (ii) liquidity risk, (iii) fraud risk and operational risk (iv) regulatory risk.
24.1 Liquidity risk
Liquidity risk refers to insufficiency of funds to meet the financial obligations. Liquidity Risk Management implies
maintenance of sufficient cash and marketable securities.
The following tables detail the Company's remaining contractual maturity for its financial liabilities with agreed repayment
periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest
date on which the Company can be required to pay. The contractual maturity is based on the earliest date on which the
Company may be required to pay.
24.2 Credit risk
The Company is exposed to credit risk through its lending activity. Credit risk refers to the risk that counterparty will default
on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of dealing
with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of
financial loss from defaults.
Wholesale lending:
The Company has developed proprietary internal rating models to evaluate risk return trade-off for the loans and
investments made by the Company. The output of traditional credit rating model is an estimate of probability of default.
These models are different from the traditional credit rating models as they integrate both probability of default and loss
given default into a single model.
Credit risk management
Credit risk management is achieved by considering various factors like :
• Cash flow at risk - This is an assessment of the standalone project or business from which interest servicing and principal
repayment is expected to be done.
• Security cover - This is an assessment of the value of the security under stress scenario which is further adjusted for
factors like liquidity, enforceability, transparency in valuation etc. of the collateral.
• Promoter strength - This is an assessment of the promoter from financial, management and performance perspective.
• Exit - This is an assessment of the liquidity of the loan or investment.
The output from each of the analysis is converted to a risk weight equivalent. Each of the four components of the risk
analysis are assigned a specific weight which differ based on type of investment. The risk weight is then converted into
capital requirement. The required capital and the return is combined to create a metric which is used for deal assessment.
The credit risk on liquid funds and other financial instruments is limited because the counterparties are banks with high
credit-ratings assigned credit-rating agencies or mutual funds.
Provision for expected credit loss
The Company has assessed the credit risk associated with its financial assets for provision of Expected credit loss (ECL)
at the reporting dates. For different product categories (Real estate, Senior debt, Lease rental discounting, Loan against
shares, Mezzanine etc.), the Company has developed scorecard that makes use of various reasonable supportive forward
looking parameters which are both qualitative as well as quantitative in nature. These scorecards helps in determining
the change in credit risk and the probability of default. Based on the result yielded by the above assessment the financial
assets are classified into (1) Standard (Performing) asset, (2) Significant credit deteriorated (Under-Performing) asset (3)
Default (Non-Performing) asset (Credit impaired).
For the purpose of expected credit loss analysis the Company defines default as any asset with more than 90 days over
dues. This is also as per the rebuttable presumption provided by the standard.
c) Description of collateral held as security and other credit enhancements
The Company has set benchmarks on appropriate level of security cover for various types of deals. The Company
periodically monitors the quality as well as the value of the security to meet the prescribed limits. The collateral held by
the Company varies on case to case basis.
As at the reporting date, the ratio of value of the collateral held as security for the credit impaired financial assets to the
exposure at default for these assets is higher than 1.
24.3 Regulatory risk:
The Company requires certain statutory and regulatory approvals for conducting business and failure to obtain retain or
renew these approvals in a timely manner, may adversely affect operations. Any change in laws or regulations made by
the government or a regulatory body that governs the business of the Company may increase the costs of operating the
business, reduce the attractiveness of investment and / or change the competitive landscape.
24.4 Fraud risk and operational risk:
The Company has an elaborate system of internal audit commensurate with the size, scale and complexity of its operations
and covers funding operations, financial reporting, fraud control and compliance with laws and regulations.
Risks associated with frauds are mitigated through 100% document verification and review of all the cases which are
entered in the system, including corrective and remedial actions as regards people and processes.
Internal Auditors monitors and evaluates the efficacy and adequacy of internal control systems in the Company, its
compliance with laws and regulations, efficacy of its operating systems, adherence to the accounting procedures and
policies and report directly to Audit and Risk Management Committee of the company.
26 Income and Expenditure in foreign currency is NIL (Previous Year Nil).
27 The Company is registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India (RBI) under
Section 45-IA of the Reserve Bank of India Act, 1934. The Company is required to meet “Principal Business Criteria” as
per RBI Circular no. DNBS (PD) C.C. No. 81/03.05.002/2006-07 dated October 19, 2006, as given below:
(i) Financial assets should constitute more than 50% of the total assets (net of intangible assets); and
(ii) Income from financial assets should constitute more than 50% of the gross income.
Based on the financial statements for the year ended March 31, 2025, the Company does not meet one of the “Principal
Business Criteria” i.e. Income from financial assets should constitute more than 50% of the gross income.
28 Segment reporting
The chief operational decision maker monitors its principle business segment i.e. 'financing segment' for the purpose of
making decision about resource allocation and performance assessment. The Company is operating in a single reportable
and geographical segment in accordance with Ind AS 108 - Operating Segments as notified u/s 133 of the Companies Act,
2013 and accordingly the same is not applicable to the Company.
(iv) Draw down from reserves
There is no drawdown of reserves during the year ended March 31, 2025 (previous year nil).
(v) Registration/ license/ authorisation obtained from other financial sectors regulators-
The Company has not obtained any registration/license/authorization from any financial sector regulator other
than Reserve Bank of India except shares of company are Listed on Bombay Stock Exchange and Delhi Stock
Exchange.
(vi) Rating assigned by credit rating agencies and migration of rating during the year
The Company has not been assigned any credit ratings during the year ended March31,2025 (previous year nil).
(vii) Structured product issued
The Company has not issued any structured product during the year ended March 31, 2025.
(viii) Penalties/fines imposed by RBI and other banking regulatory bodies
No penalty was imposed by RBI or any other banking regulatory bodies during the year ended March 31, 2025.
(ix) Area, country of operation & joint venture partners with regard to joint ventures and overseas subsidiaries-
The Company does not have any joint ventures and overseas subsidiaries.
(x) Extent of financing of parent company product
The Company has not financed any parent company product.
(xi) Details of off-balance sheet SPV's sponsored
The Company does not have any off- balance sheet SPV's sponsored.
(xii) Disclosure of complaints
There are no customer complaints received during the year no pending at the beginning at the end of the year.
(xiii) Securitisation/ assignment transactions
There is no securitisation transactions during the year.
The Company had not entered into any assignment transaction during the year ended March 31, 2025.
(xiv) Details of financial assets sold to Securitisation/Reconstruction Company for asset reconstruction
The Company had not sold any financial assets to Securitisation / Reconstruction Company for asset
reconstruction.
(xv) Details of non-performing financial assets purchased / sold
The Company has not purchased/ sold any non-performing financial assets during the year ended March 31,
2025.
(xvi) Details of single borrower limit (SGL) / group borrower limit (GBL) exceeded by the NBFC
The Company has not exceeded SBL/ GBL during the year ended March 31,2025 (previous year nil).
(xvii) Unsecured advances
There is no unsecured advances as on March 31,2025 (previous year nil).
(xviii) Related party transactions
Details of all material transactions with related parties are disclosed in note 21
(xix) Remuneration of directors
No remuneration is paid to directors during the year ended March 31,2025 (previous yaer nil).
(xx) Management
Refer Directors' report for the relevant disclosures.
(xxi) Net profit or loss for the period, prior period items and changes in accounting policies
There are no prior period items that have impact on the current year's profit and loss.
(xxii) Revenue recognition
There have been no instances in which revenue recognition has been postponed pending the resolution of
significant uncertainties.
(xxiii) Ind AS 110 - Consolidated financial statements (CFS)
The Company does not have any subsidiary. Hence, this disclosure under this para is not applicable.
(xxiv) Forward rate agreement (FRA) / Interest rate swap (IRS)
The Company has not taken any Forward rate agreement / Interest rate swap during the year ended March 31,
2025 (previous year nil).
(xxv) Exchange traded interest rate (IR) derivative
The Company has not taken any exchange traded interest rate (IR) derivatives during the year ended March 31,
2025 (previous year nil).
(xxvi) Disclosure on risk exposure in derivative - Qualitative and quantitative disclosures
The Company has not taken any risk exposure in derivatives instruments as on March 31, 2025 (previous year
nil). Hence, this disclosure under this para is not applicable.
31 Other Statutory Information
(i) There are no transaction with companies stuck off under section 248 of the Company Act, 2013 or section 560 of
Companies Act, 1956 during the current year & previous year.
(ii) No proceeding has been initiated during the year or pending against the Company for holding any Benami property.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
(iv) During the current year the company has not traded or invested in crypto currency or Virtual Currency.
(v) The Company have not been declared as a wilful defalture by any bank or financial institution (as defined under
Companies Act,2013) or consortium thereof, in accrodence with the guidance on wilful defaulture issued by Reserve
Bank of India.
(vi) The Company has complied with the number of layers prescribed under clause (87) of Sectio 2 of the act read with
companies (Restriction on number of Layers) Rules, 2017.
(vii) The Company does not have any such transaction which is 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 (such as,
search or survey or any other relevant provisions of the income Tax Act,1961)
(viii) The Company, has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign
entities (Intermediaries) with the understanding that the intermediary shall:
(a) directly or indirectlry lend or invest in other persons or entities identified in any manner whatsover by or on behalf
of the company (Ultimate Beneficiaries) or
(b) provide any gurantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ix) The Company, has not received any fund from any persons(s) or entity(is), including foreign entities (Funding Party)
with the understanding (wheather recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or inest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or
(b) provide any gurantee security or the like on behalf of the Ultimate Beneficiaries
33 There have been no events after the reporting date that require disclosure in these financial statements.
34 Previous year figures have been regrouped and recasted wherever necessary to confirm to current year's
classification.
As per our report attached on even date
For K K Birla & Co. For and on behalf of the Board of Directors
Firm Registration Number :146343W The Swastik Safe Deposit And Investments Limited
Chartered Accountants
Sunil Adukia
Director
DIN - 00020049
Kalpesh Birla Jaimin Desai
Partner Director
Membership No. 141245 DIN - 10957029
Mumbai Vinod Gadaiya
Date: April 15, 2025 Chief Financial Officer
Jitesh Agarwal
Company Secretary
Membership No. FCS-6890
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