1.9 Provisions, Contingent Liabilities and Contingent Assets, legal or constructive
(i) Provisions are recognised when there is a present obligation as a result of a past event and 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. Provisions are measured at the present value of management's best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. 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 risk specific to the liability. The increase in the
provision due to the passage of time is recognised as interest expense.
(ii) A disclosure for contingent liabilities is made 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 or a reliable estimate of the amount cannot be made. When there is a possible obligation or a present
obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.
(iii) Contingent Assets are not recognised but are disclosed when an inflow of economic benefits is probable.
1.10 Employee Benefits
(i) Short term Employee benefits are accrued in the year services are rendered by the employees.
(ii) Contribution to defined contribution plans such as Provident Fund etc. is being made in accordance with the statute and are
recognized as and when incurred. Contribution to defined benefit plans consisting of contribution to gratuity are determined at
close of the year at present value of the amount payable using actuarial valuation techniques. Actuarial gain and losses arising from
experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income. Other costs
recognised in the Statement of Profit or Loss.
(iii) Other long term employee benefits consisting of Leave encashment are determined at close of the year at present value of the
amount payable using actuarial valuation techniques. The changes in the amount payable including actuarial gain or loss are
recognised in the Statement of Profit or Loss.
1.11 Taxes on Income
Income Tax expenses comprise current tax and deferred tax charge or credit.
(i) Current Tax
Current tax is measured on the basis of estimated taxable income for the current accounting period in accordance with the
applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.
(ii) Deferred Tax
Deferred Tax assets and liabilities is measured at the tax rates that are expected to apply to the period when the asset is realized or
the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting
period.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the corresponding amounts used fortaxation purposes (i.e., tax base). Deferred tax is also recognized for
carry forward of unused tax losses and unused tax credits.
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period. The Company reduces the carrying
amount of a deferred tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the
benefit of part or that entire deferred tax asset to be utilized. Any such reduction is reversed to the extent that it becomes
probable that sufficient taxable profit will be available.
Deferred tax relating to items recognized outside the Statement of Profit and Loss is recognized either in other comprehensive
income or in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current
tax assets and liabilities on a net basis.
1.12 Investment Property
Recognition
Investment property shall be recognised as an asset when, and only when: (a) it is probable that the future economic benefits that
are associated with the investment property will flow to the entity; and (b) the cost of the investment property can be measured
reliably.
Depreciation on Investment Property is provided under the straight line method on the rates as per the useful life prescribed as
per Schedule II of the Companies Act, 2013.
Measurement at recognition
An investment property shall be measured initially at its cost. Transaction costs shall be included in the initial measurement. The
cost of a purchased investment property comprises its purchase price and any directly attributable expenditure. Directly
attributable expenditure includes, for example, professional fees for legal services, property transfer taxes and other transaction
costs.
Measurement after recognition
After initial recognition, an entity shall measure all of its investment properties in accordance with Ind AS 16's requirements for
cost model, other than those that meet the criteria to be classified as held for sale (or are included in a disposal group that is
classified as held for sale) in accordance with Ind AS 105, Non-current Assets Held for Sale and Discontinued Operations.
Transfers
An entity shall transfer a property to, or from, investment property when, and only when, there is a change in use. A change in use
occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in
use. In isolation, a change in management's intentions for the use of a property does not provide evidence of a change in use.
Disposals
An investment property shall be derecognised (eliminated from the balance sheet) on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal. Gains or losses arising from the
retirement or disposal of investment property shall be determined as the difference between the net disposal proceeds and the
carrying amount of the asset and shall be recognised in profit or loss in the period of the retirement or disposal.
1.13 Statement of Cash Flows
Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of a non¬
cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company
are segregated. The Company considers all highly liquid investments that are readily convertible to known amounts of cash to be
cash equivalents.
1.14 Earnings per Share
Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders by the
weighted average number of equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit
attributable to equity holders adjusted for the effects of potential equity shares by the weighted average number of equity shares
outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the
dilutive potential equity shares into equity shares.
1.15 Critical estimates and judgements
The Company makes estimates and assumptions that affect the amounts recognised in the Standalone Ind AS financial statements,
and the carrying amounts of assets and liabilities within the next financial year. Estimates and judgements are continually
evaluated and are based on management's experience and other factors, including expectations of future events that are believed
to be reasonable under the circumstances. Management also makes certainjudgements, apart from those involving estimations, in
the process of applying the accounting policies. Judgements that have most significant effect on the amount recognised in the
Standalone Ind AS financial statements and estimates that can cause a significant adjustment to the carrying amount of assets and
liabilities within the next financial year include the following:
Estimation of fair value of unlisted investment
The fair value of financial instrument that are not traded in an active market is determined using valuation techniques. The
Company uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions
existing at the end of each reporting period and also for, details of key assumptions used and the impact of changes to these
assumptions.
Current Tax
Current tax is measured on the basis of estimated taxable income for the current accounting period in accordance with the
applicable tax rates and the provisions of the Income Tax Act, 1961.
Deferred Tax
The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable profits
will be available in the future against which the reversal of temporary differences can be deducted. To determine the future
taxable profits, reference is made to the latest available profit forecasts. Where the temporary differences are related to losses,
relevant tax law is considered to determine the availability of the losses to offset against the future taxable profits. Recognition
therefore involves judgement regarding the future financial performance of the Company.
Provisions and Contingencies
Provisions and contingencies are based on Management's best estimate of the liabilities based on the facts known at the balance
sheet date.
22 ACCOUNTING FOR TAXES ON INCOME
Provision for Tax is made for current and deferred taxes.
Income tax expense is recognised in the income statement except to the extent that it relates to items recognised directly in equity or other
comprehensive income, in which case it is recognised directly in equity or other comprehensive income.
Current income tax for current period is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the
tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Taxable Income differs
from 'profit before tax' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other
years and items that are never taxable or deductible. Current tax assets and liabilities are set off and presented as net.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is measured at the tax rates that
have been enacted or substantively enacted.
Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the estimation of the
provision for income taxes.
The Company has significant amount of unused tax credits, since availability of future taxable income is not certain, no provision for deferred tax
assets has been made under IND AS 12 ' Income Taxes'.
23 DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS PER MSMED ACT 2006
The Company has circulated confirmation for the identification of suppliers registered under the Micro, Small and Medium Enterprises Development
Act, 2006. On the basis of information available with the Company under the aforesaid Act, there are no Enterprises to whom the Company owes
dues which are outstanding at year end. This has been relied upon by the Auditors.
24 VALUATION OF CURRENT ASSETS, LOANS & ADVANCES
In the opinion of the management, current assets, loans and advances have the value at which these are stated in the Balance Sheet, unless
otherwise stated, and adequate provisions for all known liabilities have made and are not in excess of the amount reasonably required.
B. Financial Risk Management
The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company continues to focus
on a system-based approach to business risk management. The Company's financial risk management process seeks to enable the early
identification, evaluation and effective management of key risks facing the business. Backed by strong internal control systems, the current Risk
Management System rests on policies and procedures issued by appropriate authorities; process of regular reviews / audits to set appropriate risk
limits and controls; monitoring of such risks and compliance confirmation for the same.
(i) Market Risk
Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the price of a
financial instrument. The value of a financial instrument may change as a result of changes in interest rates, foreign currency exchange rates, equity
price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.
Foreign currency risk
Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate due to changes in foreign exchange rates.
Currently the Company does not have any foreign currency exposure.
Interest rate risk
The main business of the Company is trading in goods and shares and investment in mutual funds, shares and securitires. These activities expose us
to interest rate risk.
Interest rate risk is measured through earnings at risk from an earning perspective. The Company monitors the change in economic value of equity
arising out of change in the Interest rate. Further, an interest rate sensitivity gap report is prepared by classifying all rate sensitive assets into various
time period categories according to earliest of contracted/behavioural maturities or anticipated re-pricing date. The difference in the amount of rate
sensitive assets maturing or being re-priced in any time period category, gives an indication of the extent of exposure to the risk of potential changes
in the margins on new or re-priced assets. The Company monitors interest rate risk through above measures on a monthly basis.
Currently the company does not have any borrowings.
(ii) Liquidity Risk
Liquidity risk is the risk than an entity will encounter difficulty in meeting obligation associated with financial liabilities that are settled by deliverying
cash or other financial assets. The Company mitigates its liquidity risks by ensuring timely collections of its receivables and close monitoring of its
credit cycle.
(iii) Credit Risk
Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to the contractual terms or obligations.
Credit risk encompasses both the direct risk of default and the risk of deterioration of credit worthiness as well as concentration risks.
Financial instruments that are subject to credit risk and concentration thereof principally consist of rent receivables, loans receivables, investments
in equity and preference share and mutual funds and other financial assets. None of the financial instruments of the Company result in material
concentration of credit risk except some loans made by the company and against which sufficient provision for expected credit loss has been
provided.
The carrying value of financial assets represents the credit risk. The exposure to credit risk was Rs. 50.12 crores and Rs. 5.68 crores as at March 31,
2025 and March 31, 2024 respectively, being the total carrying value of rent receivables, loans receivables, investments in equity and preference
share and mutual funds and other financial assets.
(iv) Expected Credit Loss
Ind AS 109 outlines a 'three stages' model for impairment based on changes in credit quality since initial recognition as summarized below. The
objective of the impairment requirements is to recognize life time expected credit loss (ECLs) on all financial instrument for which there have been
significant increases in credit risk since initial recognition - whether assessed on an individual or collective basis.
At the reporting date, an allowance (or provision for loan and advances) is required on stage 1 assets at 12 month ECLs. If the credit risk has
significantly increased since initial recognition (Stage 1), an allowance (or provision) should be recognised for the lifetime ECLs for financial
instruments for which the credit risk has increased significantly since initial recognition (Stage 2) or which are credit impaired (Stage 3).
The measurement of ECL is calculated using three main components:
(i) Probability of Default (PD)
(ii) Loss Given Default (LGD) and
(iii) the Exposure At Default (EAD).
The 12 month ECL is calculated by multiplying the 12 month PD, LGD and the EAD.
The 12 month and lifetime PDs represent the PD occurring over the next 12 months and the remaining maturity of the instrument respectively.
The EAD represents the expected balance at default, taking into account the repayment of principal and interest from the balance sheet date to the
default event together with any expected drawdowns of committed facilities.
The LGD represents expected losses on the EAD given the event of default, taking into account, among other attributes, the mitigating effect of
collateral value at the time it is expected to be realised and the time value of money.
Probalility of default represents the likelihood of a borrower defaulting on its financial obligation either over the next 12 months (12M PD) or over
the remaining lifetime (Lifetime PD) of the obligation.
Exposure at Default (EAD) is the total amount of an asset the entity is exposed to at the time of default. EAD is define based on the characteristics
of the assets. EAD is dependent on the outstanding exposure of an assets sanctioned amount of loan and credit conversion factor for non-funded
exposure.
Loan Given Default (LGD) it is part of an assets which is lost provided the assets default. The recovery rate is derive as a ratio of discounted value of
recovery cash flow (incorporating the recovery time) to total exposure of amount at the time of default.
The Company assesses when a significant increase in credit risk has occurred based on quantitative and qualitative assessments. Exposures are
considered to have resulted in a significant increase in credit risk and are moved to Stage 2 when:
i. Quantitative test: Accounts that are 30 calendar days or more past due move to Stage 2 automatically. Accounts that are 90 calendar days or more
past due move to Stage 3 automatically.
ii. Qualitative test: Accounts that meet the portfolio's 'high risk' criteria and are subject to closer credit monitoring. High risk customers may not be
in arrears but either through an event or an observed behaviour exhibit credit distress.
iii. Reversal in Stages: Exposures will move back to Stage 2 or Stage 1 respectively, once they no longer meet the quantitative criteria set out above.
For exposures classified using the qualitative test, when they no longer meet the criteria for a significant increase in credit risk and when any cure
criteria used for credit risk management are met.
The definition of default for the purpose of determining ECLs has been aligned to the RBI definition of default, which considers indicators that the
debtor is unlikely to pay and is no later than when the exposure is more than 90 days past due.
28 Additional Disclosures
(a) During the year, the company has granted loans to related parties (as defined under Companies Act, 2013) which are repayable on demand. The
Company has not granted any Loans orAdvances in the nature of loans which are either repayable on demand orwithout specifyingany terms or period of
repayment to promoters, directors and KMPs either severally or jointly with any other person.
(b) No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and the rules made thereunder, the company for the financial year 2024-25.
(c) The Company has not taken any borrowings from banks orfinancial institutions on the basis of security of current assets during the financial yearended
31.03.2025.
(d) The Company is not declared as wilful defaulter by any Bank or Financial Institution or other lender.
(e) The Company has not entered into any transactions with companies which are struck off under section 248 of the Companies Act, 2013 or section 560
of Companies Act, 1956 during the financial year ended on 31.03.2025.
(f) 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 persons or entities, 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). Further, No funds have
been received by the Company from any parties (Funding Parties) 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 funding party or provide any guarantee, security or the like on behalf thereof.
(g) The Company does not have any transaction relating to earlier years that has been surrendered or disclosed as income during the year in the tax
assessments under the Income tax Act, 1961 and also there are no such previously unrecorded income and related assets relating to earlier years which
have been recorded in the books of account during the year.
(h) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(i) Section 135 of the Companies Act, 2013 read with respective rules in relation to Corporate Social Responsibility is not applicable to the Company under
the said Section/Rule.
On the basis of physical verification of assets and cash generation capacity ofthose assets, in the management perception, there is no impairment of assets
as on 31st March, 2025.
30 Previous year figures have been reclassified wherever appropriate to confirm to current year's presentation.
According to the management's evaluation of events subsequent to the balance sheet date, there were no significant adjusting events that occurred other
than those disclosed / given effect to, in these financial statements as of June 16, 2025.
As per our report of even date
For NKSJ & Associates For and on behalf of the Board
Chartered Accountants
Firm Registration No. 329563E
Ajay Jaiswal Vishal Jaiswal
Managing Director & CFO Whole-time Director
CA Sneha Jain DIN- 01754887 DIN- 01741062
Partner
Membership No. 234454
Place: I ndore Mohd Shanawaz Shekh
Date: 16th June, 2025 Company Secretary
M No.- A65714
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