2.14 Provisions, contingent liabilities and contingent assets
The Company creates a provision when there is a present obligation as a result of past events
and it is probable thatthere will be outflow of resources and a reliable estimate of the
obligation can be made of the amount of the obligation.
Contingent liabilities are not recognised but are disclosed in the notes to the financial
statements. A disclosure for a contingent liability is made when there is a possible obligation
or a present obligation that may, but probably will not, require an outflow of resources.
When there is a possible obligation or a present obligation in respect of which the
likelihoodof outflow of resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best
estimate. If it is no longerprobable that the outflow of resources would be required to settle
the obligation, the provision is reversed.
Contingent assets are neither recognised nor disclosed in the financial statements.
2.15 Statement of Cash Flows
Statement of Cash Flows is prepared segregating the cash flows into operating, investing
andfinancing activities. Cash flow from operating activities is reported using indirect
methodadjusting the net profit for the effects of:
i. changes during the period in operating receivables and payables transactions of a non¬
cash nature;
ii. non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign
currency gains and losses, and undistributed profits of associates and joint ventures; and
iii. all other items for which the cash effects are investing or financing cash flows. Cash
and cash equivalents (including bank balances) shown in the Statement of Cash Flows
exclude items which are not available for general use as on the date of Balance Sheet.
2.16 Other accounting policies
Non-material accounting policies encompass those that hold importance for the Company's
financial statements without being material in terms of their impact on the financial
statements.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided
to the chief operating decision maker. The Company’s primary business segments are
reflected based on the principal business carried out, i.e. lending activities as Non-Banking
Finance Company (NBFC) regulated by the Reserve Bank of India (‘RBI’). The risk and
returns of the business of the Company is not associated with geographical segmentation,
hence there is no secondary segment.
2.17 Recent accounting pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the
existing standards under Companies (Indian Accounting Standards) Rules as issued from
time to time. For the year ended 31 March, 2024, MCA has not notified any new standards
or amendments to the existing standards applicable to the Company.
2.18 Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to
time. On 31 March, 2023, MCA amended the Companies (Indian Accounting Standards)
Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules,
2023, applicable from 1 April, 2023, as below:
a. Ind AS 1 - Presentation of Financial Statements
The amendments require companies to disclose their material accounting policies rather than
their significant accounting policies. Accounting policy information, together with other
information, is material when it can reasonably be expected to influence decisions of
primary users of general-purpose financial statements. The Company does not expect this
amendment to have any significant impact in its financial statements.
b. Ind AS 12 - Income Taxes
The amendments clarify how companies account for deferred tax on transactions such as
leases and decommissioning obligations. The amendments narrowed the scope of the
recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that
it no longer applies to transactions that, on initial recognition, give rise to equal taxable and
deductible temporary differences. The Company does not expect this amendment to have
any significant impact in its financial statements.
c. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
The amendments will help entities to distinguish between accounting policies and
accounting estimates. The definition of a change in accounting estimates has been replaced
with a definition of accounting estimates. Under the new definition, accounting estimates are
“monetary amounts in financial statements that are subject to measurement uncertainty”.
Entities develop accounting estimates if accounting policies require items in financial
statements to be measured in a way that involves measurement uncertainty. The Company
does not expect this amendment to have any significant impact in its financial statements.
Reason for variance (if above 25%)
1. The variation in Debt service Coverage Ratio is above 25% because there is no outstanding debt during the year.
2. The variation in Return on Equity is above 25% because the profits of the company has been reduced in comparision with the FY 2023-24.
3. Variance in Inventory Turnover ratio is because neither the company has purchased any stock nor it has sold any stock during the FY 2024-25.
4. Variance in Trade Receivable Turnover ratio is because neither the company has purchased any stock nor it has sold any stock during the FY
2024-25.
5. Variance in Trade Payables Turnover ratio is because neither the company has purchased any stock nor it has sold any stock during the FY
2024-25.
6. Capital turnover ratio has decreased as compared to previous year due to decrease in working capital.
7. The variation in Net Profit Ratio is above 25% because the profits of the company has been reduced in comparision with the FY 2023-24.
8. The variation in Return on Capital employed is above 25% because the profits of the company has been reduced in comparision with the FY
2023-24.
28. Additional information to the financial statement and disclosure under Indian
Accounting standards and Companies Act, 2013:
28.1 Share application money pending allotment
The company has not received any share application money which is pending for
allotment.
28.2 Contingent liabilities and commitments (to the extent not provided for)
28.3 Disclosure as per the Listing Agreements with the Stock Exchanges/SEBI (LODR),
2015
Loans and advances in the nature of loans given to subsidiaries, associates and investment
in shares of the Company of such parties are nil.
28.4 Details on derivatives instruments and unhedged foreign currency exposures
The derivative transaction was done under normal course of business. There were no
foreign currency dealings & exposures.
28.5 Value of imports calculated on CIF basis
Not applicable to the company.
28.6 Expenditure in foreign currency
No foreign currency expenditure was incurred by the company during the Financial Year.
28.7 Details of consumption of imported and indigenous items
Not applicable to the company because it is not engaged in manufacturing activities.
28.8 Earnings in foreign exchange
There were no earnings in foreign exchange.
28.9 Amounts remitted in foreign currency during the year on account of dividend
Not Applicable to the company.
28.10 Details of contract revenue and costs
The company is RBI approved NBFC, and all revenues & expenses are accounted for on
an accrual basis. There were no construction-related contracts.
28.11 Details of government grants
The Company has not received any government grant either in the year ended 31.3.2025
or in the year ended 31.3.2024.
28.12 Details of amalgamations
The company has neither floated/approved any scheme of amalgamations nor participated in
any such scheme.
28.13 Employee benefit plans
As per terms of employment, the employees are not entitled to any other benefit e.g. PF,
Gratuity, Pension, etc. except the annual salary and ex-gratia allowance paid for their work.
28.14 Details of borrowing costs capitalized
There were no such borrowings either in the year ended 31.3.2025 nor in the year ended
31.3.2024.
28.15 Segment information
The segment wise information for Income & Profits is as under but considering nature of
business it is not possible to segregate assets segment wise-
The Company has recognized deferred tax on difference in value of fixed assets as per
Income Tax Laws and as per Companies Act.
28.20 Discontinuing operations
The company has not discontinued any operations which it was carrying on in past as per
its main business objects.
28.21 Details of research and development expenditure recognized as an expense
No specific expenditure has been incurred on research & development considering nature
of business of the company. The company is mainly engaged in financial activities as
NBFC and keeps incurring expenditure to upgrade technology from time to time.
28.22 Interest in joint ventures
The company has no interest, right and sharing in any joint venture project.
28.23 Details of provisions
The Company has not made any provision for any contractual obligations and disputed
liabilities because no such obligation or liability was pending at year end.
28.24 Employee Stock Option Scheme
The company has never issued any ESOP and therefore, no disclosure is required to be
made in this connection.
28.25 Disclosure under Micro, Small and Medium Enterprises Development Act, 2006
There are no Micro and Small-Scale Business Enterprises, to whom the Company owes
dues, which are outstanding for more than 45 days as at March 31, 2024 as per the
information of parties or organizations under Micro, Small and Medium Enterprises
(MSME) is available with the company. This information as required to be disclosed
under the Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis of information
available with the Company.
28.26 The disclosure on the following matters required under Schedule III as amended not being
relevant or applicable in case of the Company, same are not covered:
a. The Company has not traded or invested in crypto currency or virtual currency
during the financial year
b. No proceedings have been initiated or are pending against the Company for
holding any benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and rules made thereunder
c. The Company has not been declared willful defaulter by any bank or financial
institution or government or any government authority
d. No satisfaction of charges is pending to be filed with ROC
e. There are no transactions which are not recorded in the books of account which
have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961.
f. The Company has performed an assessment to identify transactions with struck
off companies as at 31 March 2025 and no such company was identified.
28.27 Note on Previous year’s figures
Previous year's figures have been regrouped/reclassified wherever necessary to
correspond with the current year's classification/disclosure.
The accompanying notes are an integral part of the standalone financial statements
In terms of our report attached. For and on behalf of the Board of Directors
For Vinod Kumar Gupta & Associates
Chartered Accountants
FIRM’S REGISTRATION NO. 002377C
CA. NIKHIL GUPTA BAKHSHISH GUPTA SAROJ GUPTA
PARTNER (Director) (Managing Director)
M.N. 403014 DIN - 09466909 DIN - 07793920
ICAI UDIN: 25403014BMJLGJ3028
Date: 07.06.2025 CS. KHUSHAMBI SINGHAL PRADEEP KUMAR MISHRA
Place: Delhi (Company Secretary) (CFO)
Membership No. 71921 PAN: ADGPM5206P
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