j) Provisions and contingencies
Provisions are recognised when the Company has 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 a reliable estimate can be made of the
amount of the obligation. Provisions are measured at the
best estimate of the expenditure required to settle the
present obligation at the reporting date.
Provisions are determined by discounting the expected
future cash flows (representing the best estimate of the
expenditure required to settle the present obligation
at the balance sheet date) at a pre-tax rate that reflects
current market assessments of the time value of money
and the risks specific to the liability. The unwinding of
the discount is recognized as finance cost. Expected
future operating losses are not provided for.
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.
k) Employee Benefits
(i) Short-term obligations
Short-term employee benefits are recognized as an
expense at the undiscounted amount in the Statement
of Profit and Loss for the year in which the related
services are rendered. The Company recognises the costs
of bonus payments when it has a present obligation to
make such payments as a result of past events and a
reliable estimate of the obligation can be made.
L) Foreign currency translation
(i) Functional and presentation currency
Items included in financial statements of the
Company are measured using the currency of
the primary economic environment in which the
Company operates ('the functional currency').
The financial statements are presented in Indian
rupee (INR), which is Company’s functional and
presentation currency.
(ii) Translation and balances
Foreign currency transactions are translated into
the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement
of such transactions and from the translation of
monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are
recognized in profit or loss.
Non-monetary items that are measured at fair
value in a foreign currency are translated using the
exchange rates at the date when the fair value was
determined. Translation differences on assets and
liabilities carried at fair value are reported as part of
the fair value gain or loss. For example, translation
differences on non-monetary assets and liabilities
such as equity instruments held at fair value
through profit or loss are recognized in profit or loss
as part of the fair value gain or loss and translation
differences on non-monetary assets such as equity
investments classified as FVOCI are recognized in
other comprehensive income.
m) Dividend Liability
Final dividend on equity shares are recorded as a
liability on the date of approval by the shareholders and
interim dividend are recorded as liability on the date of
declaration by the company’s board of directors.
n) Earnings per share
(i) Basic Earning per share
Basic earnings per share is calculated by dividing the net
profit for the period (excluding other comprehensive
income) attributable to equity share holders of the
Company by the weighted average number of equity
shares outstanding during the financial year, adjusted
for bonus element in equity shares issued during the
year.
(ii) Diluted Earning per share
Diluted earnings per share is computed by dividing
the net profit for the period attributable to equity
shareholders by the weighted average number of shares
outstanding during the period as adjusted for the effects
of all diluted potential equity shares except where the
results are anti-dilutive.
o) Rounding of Amounts
All amounts disclosed in the financial statements and
notes have been rounded off to the nearest lakhs as per
the requirements.
p) Events after reporting date
Where events occurring after the balance sheet date
provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is
adjusted within the financial statements. Otherwise,
events after the balance sheet date of material size or
nature are only disclosed.
General Reserve
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the
general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income, items included in the general reserve will not be reclassified subsequently to statement of profit and loss.
Statutory Reserve
Statutory reserve represents reserve fund created pursuant to Section 45-IC of the RBI Act, 1934 through transfer of specified
percentage of net profit every year before any dividend is declared. The reserve fund can be utilised only for limited purposes
as specified by RBI from time to time and every such utilisation shall be reported to the RBI within specified period of time
from the date of such utilisation.
Retained Earnings
Retained earnings or accumulated surplus represents total of all profits retained since Company's inception. Retained
earnings are credited with current year profits, reduced by losses, if any, dividend payouts, transfers to General reserve or
any such other appropriations to specific reserves.
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and
assumptions used to estimate the fair values are consistent with those used for the year ended 31st March, 2024.
The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as
described below:
i) Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
ii) Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If
all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. In the case
of Derivative contracts, the Company has valued the same using the forward exchange rate as at the reporting date.
iii) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3.
C Calculation of fair values:
Financial assets and liabilities measured at fair value as at Balance Sheet date:
Other financial assets and liabilities:¬
- Cash and cash equivalents , trade receivables, other financial assets , trade payables, and other financial liabilities have
fair values that approximate to their carrying amounts due to their short-term nature.
- Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the
anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining
maturities.
31 FINANCIAL RISK MANAGEMENT
The Company's financial risk management is an integral part of how to plan and execute its business strategies. The
Company's business activities are exposed to a variety of financial risks, namely liquidity risk, market risks, and credit
risk. The Company's senior management has the overall responsibility for establishing and governing the Company's risk
management framework. The Company's risk management policies are established to identify and analyze the risks faced by
the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions
and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit
Committee of the Company.
The Company has exposure to the following risks arising from financial instruments:
A) Credit risk;
B) Liquidity risk; and
C) Market risk;
A Credit risk
It is risk of financial loss that the Company will incur a loss because its customer or counterparty to financial instruments fails
to meet its contractual obligation.
The Company's financial assets comprise of Cash and bank balance, Loans, Investments and Other Non-Financial Assets
which comprise mainly of advance tax and other reivables.
The Company follows 'simplified approach' for recognition of impairment loss allowance on loan given.
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime Expected Credit Loss (ECL) at each reporting date, right from its initial
recognition.
B Liquidity risk
Liquidity represents the ability of the Company to generate sufficient cash flow to meet its financial obligations on time,
both in normal and in stressed conditions, without having to liquidate assets or raise funds at unfavourable terms thus
compromising its earnings and capital.
Liquidity risk is the risk that the Company may not be able to generate sufficient cash flow at reasonable cost to meet
expected and/or unexpected claims. It arises in the funding of lending, trading and investment activities and in the
management of trading positions.
Funds required for business is taken care by borrowings through inter-corporate bodies.
C Market Risk
Market risk is the risk that the fair value or future Cash flows of a financial instrument will fluctuate because of changes in
market prices. The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimizing the return.
(i) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates.
Foreign currency risk management
The Company does not have any exposure to foreign exchange risk arising from foreign currency transaction.
(ii) Interest rate risk
The Company is exposed to Interest risk if the fair value or future cash flows of its financial instruments will fluctuate
as a result of changes in market interest rates. Fair value interest rate risk is the risk of changes in fair values of fixed
interest bearing investments because of fluctuations in the interest rates.
The Company's interest rate risk arises from interest bearing loan given to Inter corporate deposit. Such instruments
exposes the Company to fair value interest rate risk. Management believe that the interest rate risk attached to this
financial assets are not significant due to the nature of this financial assets.
** Due to increase in reserves on account of profit on buyback of shares of subsidiary and fair valuation of investments
* The disclosure of Liquidity Coverage Ratio is not applicable to the company as it is non-deposit taking non-systemically important NBFC.
33 The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956 for the financial year ended 31st March, 2024.
34 The Company has not been declared wilful defaulter by any bank or financial institution or other lender for the financial yeai
ended 31st March, 2024.
35 The company did not have any cryptocurrency transactions during the year.
38 The Financial Statements were approved for issue by the Board of Directors on Date: 30th May 2024.
39 Previous year's figures have been regrouped, wherever necessary, to conform to the current year's classification.
Signature to notes from 1 to 39 forming part of the standalone financial statements.
As per our report of even date For and on behalf of the Board of directors
For G.K. Choksi & co. Ventura Guaranty Limited
Chartered Accountants
Firm Registration No.: 125442W
Himanshu Vora Hemant Majethia Sajid Malik Sudha Ganapathy
Partner Whole Time Director Director CFO cum Company Secretary
Membership No.:103203 DIN-00400473 DIN-00400366 Mem. No. ACS 9342
Place: Thane Place: Thane
Date: 30th May 2024 Date: 30th May 2024
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