11. Provisions & Contingencies :
Provisions involving substantial degree of estimation in measurement are recognized
when there is a present obligation as a result of past events, it is probable that there will
be an outflow of resources and a reliable estimate can be made of the amount of the
obligation. The Company does not provide for a contingent liability but discloses its
existence in the financial statement.
12. Earnings per equity share
Basic earnings per share is calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period. Earnings considered in ascertaining the Company’s
earnings per share is the net profit for the period after deducting preference dividends
and any attributable tax thereto for the period. The weighted average number of equity
shares outstanding during the period and for all periods presented is adjusted for events,
such as bonus shares, sub-division of shares etc., that have changed the number of
equity shares outstanding, without a corresponding change in resources. For the purpose
of calculating diluted earnings per share, the net profit or loss for the period attributable
to equity shareholders is divided by the weighted average number of equity shares
outstanding during the period, considered for deriving basic earnings per share and
weighted average number of equity shares that could have been issued upon conversion
of all dilutive potential equity shares.
13. Employee Benefits
(a) ESI & EPF Contribution : The company had taken registration with employees
provident fund department from September, 2023 onwards and the company is still
in the process of taking registration with employees state Insurance department.
(b) Provision for Retirement Benefits : Since the management of the Company does not
provide any kind of post retirement benefits to any of its employees, provision for
retirement benefits is not made by the Company.
14. Impairment of Assets j.
The carrying values of assets/ cash generating units at each balance sheet date are
reviewed for impairment. If any indication of impairment exists, the recoverable
amount of such assets is estimated and impairment is recognized, if the carrying
amount of these assets exceeds their recoverable amount. The recoverable amount is
the greater of the net selling price and their value in use. Value in use is arrived at by
discounting the future cash flows to their present value based on an appropriate
discount factor. When there is indication that an impairment loss recognized for an
asset in earlier accounting periods no longer exists or may have decreased, such
reversal of impairment loss is recognized in the Statement of Profit and Loss, except in
case of revalued assets.
15. Repossessed Hypothecated Stocky
The repossessed stock has been valued at year end at market value & accounted in the
books of accounts of the Company. The Company maintained separately a Seized
Vehicles Register, recording the date of seizure of vehicle, release of vehicle and sale of
Seized Vehicle & accounted profit /loss on sale of seized vehicles, wherever applicable.
3. During the year, as and when required, Unsecured Loans and advances are given to and
taken from the Directors / Companies/ firms and other parties, in which Directors are
interested. Since the accounts were operated as current accounts, repayable on demand,
it is impossible for the Management to quantify the maximum amount of unsecured loans
given and taken. However, Balance receivable outstanding at the yearend under the same
management does not exceeds the limit prescribed under section 185 & 186 of the
Companies Act, 2013 & under RBI Directions to NBFC’s.
4. Previous year’s figures have been regrouped / recast / rearranged / reclassified, wherever
required.
5. Contingent Liabilities & Commitments
(to the extent not provided for)
A. Contingent Liabilities
a. Claims against the Company not acknowledged as debt : -
1. Disputed Income Tax Liability for A.Y.2017-18 Rs.20,51,022/-
(on account of addition u/s 68 on deposit of cash in Banks during demonetisation
period)
b. Guarantees : NIL
c. Other Money for which the Company is contingently liable : - NIL
B. Commitments
a. Estimated amount of contacts remaining to be executed on capital account and
not provided for : - NIL
b. Un called liability on shares and other investments partly paid : - NIL
c. Other Commitments : - NIL
6. In the opinion of the management, there is no material diminition in the value of
investments made in Immovable Properties / Unquoted shares, held as long term
investments.
7. In the opinion of the Board, the realisable value of the Current Assets, Loans and
Advances, in the ordinary course of business would not be less than the amount at which
they are stated in the Balance Sheet.
8. Loans/Investments / Guarantees / Securities taken together to single group of parties
i.e. Firms & Companies under the same management are within the limits prescribed
under section 185 & 186 of the Companies Act, 2013.
14. Financial risk management objectives and policies:-
The company’s principal financial assets/liabilities comprise loans and borrowings, trade
and other payables. The main purpose of these financial assets/liabilities is to finance
and support company’s operations. The company’s principal financial assets include
loans, other receivables, cash and cash equivalents and refundable deposits/ Investment
in property that derive directly from its operations.
The company is exposed to market risk, credit risk and liquidity risk. The company’s
senior management oversees the management of these risks. The Board of Directors
reviews and agrees policies for managing each of these risks which are summarized
below.
a) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument
will fluctuate because of changes in market price. Market risk comprises two types of
risk. Interest rate risk & other price risk such as commodity risk. Financial instruments
affected by market risk include loans & borrowings & refundable deposits. The sensitivity
analysis in the following sections relate to the position as at March 31st, 2024 & March
31st 2023. The sensitivity analysis have been prepared on the basis of the amount of net
debt & the ratio of fixed to floating interest rates of debt. The sensitivity of the relevant
profit or loss item in the effect of the assumed changes in respective market risks. This
is based on the financial assets and financial liabilities held at March 31st 2024 & March
31st 2023.
b) Interest rate risk
Interest rate sensitivity on fixed and floating rate assets and liabilities with defining
maturity profiles is measured by using the duration gap analysis. The same is computed
monthly and sensitivity of the market value of equity assuming varied changes in interest
rates are presented and monitored by management.
c) Credit Risk
Credit risk is the risk that the company will incur a loss because its customers fail to
discharge their contractual obligations. The company has a comprehensive framework
for monitoring credit quality of its all kinds of loans primarily based on days past due
monitoring, at period end. Repayment by individual customers and portfolio is tracked
regularly and required steps for recovery are taken through follow ups and legal recourse.
In assessing the impairment of financial loans under expected credit loss (ECL) model,
the assets have been segmented into three stages. The three stages reflect the general
pattern of credit deterioration of a financial instrument. The differences in accounting
between stages, relate to the recognition of expected credit losses and the measurement
of interest income.
The company applies the simplified approach to providing for expected credit losses
prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision
for trade advances. The company has computed expected credit losses based on a
provision matrix which uses historical credit loss experience of the company
15. Loans written off as Bad debts
The gross carrying amount of a financial asset is written off when there is no realistic
prospect of further recovery. This is generally the case when the company determines that
the debtor does not have assets or sources of income that could generate sufficient cash
flows to repay the amounts subject to the write-off. However, financial assets that are written
off could still be subjected to enforcement activities under the company’s
recovery procedures, taking into account legal advice where appropriate. Any recoveries
made are recognized in profit or loss statement.
16. Capital Management
The company’s policy is to maintain a stable capital base so as to maintain investor, creditor
and market confidence and to sustain future development of the business. Management
monitors capital on the basis of return on capital employed as well as the debt to total equity
ratio. For the purpose of debt to total equity ratio, debt considered is long-term and short¬
term borrowings. Total equity comprise of issued share capital and all other equity reserves.
21. Details of immovable properties not held in the name of the company : NIL
22. Fair value of investment property disclosed based on valuation by registered
valuer under the Co’s Act. : (Amount
in Rs.)
(a) Property at Kalburagi valued & disclosed at Market Value (Rs.38500000/-).
(b) Property at Vijaypura valued & disclosed at Market Value. (Rs.1337000/-)
23. Details of Benami Property held : NIL
24. Details as wilful defaulter declared : NIL
25. Quarterly returns of current asset filed by the company with Bank or any other
lender tallies with books of accounts or not : Not Applicable
26. Details of relationship with struck off Companies : NIL
27. Details of pending Registration of charges or Satisfaction of charges with
Registrar of Companies : NIL
28. Analytical Ratios : -
29. Details of borrowings used for other than specific purposes : NIL
30. Details of lending of borrowed funds & share premium to other Intermediary who
shall lend or invest or provide any guarantee, security on behalf of the Company (ie
ultimate beneficiaries) : NIL
31. Details of any fund received from funding party to lend or invest or provide any
guarantee, security on behalf of the funding party (ie ultimate beneficiaries). : NIL
32. Details of undisclosed income surrendered or disclosed as income on search,
survey or any other income tax assessments. : NIL
33. Details of Crypto Currency or Virtual Currency traded or invested. : NIL
34. Details of Non-Performing Assets & Provisions against NPA’s
As per our report of even date attached.
For BENNUR NAGARAJA & CO For and on Behalf of Board of Directors
CHARTERED ACCOUNTANTS
FR No. 419S
(BENNUR NAGARAJA) (RAJGOPAL GILADA)
PROPRIETOR MANAGING DIRECTOR
M.No: 024163 DIN:00307829
Place : Bangalore (SAMPATHKUMAR GILADA)
Date : 24th May, 2024 DIRECTOR
UDIN : 24024163BKCJVI2887 DIN: 02144736
(SANGEETA GILADA)
CHIEF EXECUTIVE OFFICER
PAN: AIDPG1236B
(PALLAVI GILADA)
CHIEF FINANCIAL OFFICER
PAN: BGDPM7347E
(MOHITA AGRAWAL)
COMPANY SECRETARY
PAN: AJUPA7962Q
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