W Provisions, Contingent liabilities and Contingent assets
The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists
and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation
and the amount of such obligation can be reliably estimated.
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 embodying economic benefits or the amount of such obligation cannot
be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow
of resources embodying economic benefits is remote, no provision or disclosure is made.
Contingent assets are not recognised in the financial statements; however they are disclosed where the inflow of
economic benefits is probable. When the realization of income is virtually certain, then the related asset is no longer a
contingent asset and is recognised as an asset.
Note 23 Financial Risk Management
Risk Management isan integral part of thebusiness practices oftheCompany. The framework of Risk Management concentrates on formalisinga system to deal with
the most relevant risks, building on existing Management practices, knowledge and structures. With the help of a reputed consultancy firm, the Company has
developed and implemented a comprehensive Risk Management System to ensure that risks to the continued existence of the Company as a going concern and to its
growth are identified and remedied on a timely basis. While defining and developing the formalised Risk Management System, leading standards and practices have
been considered. The Risk Management System is relevant to business reality, pragmatic and simpleand involves the following:
1 Risk identification and definition
Focused on identifying relevant risks, creating updating clear definitions to ensure undisputed understanding along with details of the underlying root causes
contributing factors.
2 Risk classification:
Focused on understanding the various impacts of risks and the level of influence on its root causes, this involves identifying various processes generating the root
causes and clear understanding of risk interrelationships.
3 Risk assessment and prioritisation
Focused on determining risk priority and risk ownership for critical risks. This involves assessment of the various impacts taking into consideration risk appetite and
existing mitigation controls
4 Risk mitigation
Focused on addressing critical risks to restrict their impact(s) to an acceptable level (within the defined risk appetite). This involves a clear definition of actions,
responsibilities and milestones.
5 Risk reporting and monitoring
Focused on providing to the Board and the Audit Committee periodic information on risk profile evolution and mitigation plans.
Management of liquidity risk
The principal sources of liquidity of the Company are cash and cash equivalents, thecash flow that isgenerated from operations. TheCompany believes that current cash
and cash equivalents, cash flowthat isgenerated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low. The following table
shows the maturity analysis of financial liabilities of the Company based on contractually agreed undiscounted cash flows as at the Balance Sheet date:
Note 24 Management of credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual Obi igation
Trade receivables
Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large, diverse and across sectors and countries. All trade receivables are reviewed and assessed for
default on a quarterly basis.
Historical experience of collecting receivablesof the Company issupported by low level of past default and hence the credit risk is perceived to below.
29(iii) Details of non performing financial assets purchased/sold
The Company has not purchased and sold any non performing financial asset during the current and previous year
29(iv) Details of Single Borrower Limit (SGL)/Group Borrower Limit (GBL) exceeded
The Company has not exceeded the prudential exposure limits during the current and previous year
29(v) Unsecured advances
Total loan sand advances includes Rs. 12.72 Crorecrore which are unsecured advances where as in previous year Rs. 12.57 Crore
29(vi) Registration obtained from other financial sector regulators
The Company does not have registered in other financial sector regulators except Reserve Bank of India (RBI)
29(vii) Detailsof penalties imposed by RBI and other regulators
Rs. Nil penalties has been levied by the Reserve Bank of India or any other Regulators for the year ended 31 March 2024. (Previous Year NIL Lakhs)
Now 30 The disclosures as required by the Master Direction -Monitoring of frauds In NBFCs Issued by RBI dated 29 September 2014
The company has (nude monitoring I rum who on quarterly basis review the overall procedure and policies there are no cases of frauds during the year as well as no cases In the pnreous year.
Not* 31 The Company has not been declared as a wilful drfauiter by any bank or financial institution or other lender in the financial years ended March 31, 2025 and March 31. 2024.
Note 32 Reladonship with Struck off Companies
There are no transactions with companies whose names have been struck on under section 24g of Companies Act 2013 or section 560 of Companies Act 1956 in the financial yean ended
March 31, 2025 and Marth 31, 2024
Note 33
Registration of charges or satisfaction vath Registrar of Companies (ROC)
Where any charge or satisfaction yet to be registered with ROC beyond the statutory period, details and reasons thereof shall be disclosed. The Company shall provide the details in relation to
each charge or satisfaction that are not negstered by the statutory date. Such details may include a brief description of the charges or satisfaction, the location of die Registrar, the period (in
days or months) by which such charge had to be registered and the reason tor d*fay in registration.
Compliance with number of layers of companies
When the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017. the
name and CiN ofthecompan.es beyond the specified layers and the relationship f ertern of holding of the company in such downstream compan.es shall be disclosed
Not* 35 Utilisation of Borrowed fund and Share Premium
The Company, as part of its normal business, grants loans and advances, makes investment, provides guarantees to and accept deposits and borrowings from its customers, other entities and
persons These transactions are pan of Company's normal non-banking finance business, which Is conducted ensuring adherence to all regulatory requirements.
Other than the transactions described above, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other source or hind of funds) by the
Company to or in any other persons or entities, including foreign entitle ('Intermediarie') with the understanding whether recorded in writing or otherwise that the Intermediary shall lend
orinvesi in party identified by or on behalf of the Company (Ultimate Benefinarie). The Company has also not received any fund from any pariie (Funding Party) with the understanding that
th* Company shall whether, directly or indirectly lend or invest m other persons or entities identified by or on tehatf of the Funding Party ('Ultimate Beneficiaries') or provide any guarantee
security or die tike on bdialf of the Ubmate BmcAovici
Note 36 Figures tor the previous period have been regrouped and rearranged, wherever necessary, to make them comparable with the current Period
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