11.1.3 The Company does not face a significant liquidity risk with regard to its lease liabilities, as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
11.1.4 The aggregate depreciation on Right of Use asset has been included in Depreciation in the Statement of Profit and Loss Account (Refer Note no. 26 )
11.1.5 Rental expense short-term leases was Rs 3.89 Lakhs (31st March, 2023 - Rs12.13 Lakhs) included under other expenses in the statement of profit and loss (Refer Note no. 27).
(i) The Loan taken are at Interest rate of 7.90%. The amount is repayable in 60 monthly instalments. The last instalment is due in August, 2027.
(ii) The Loan taken are at Interest rate of 9.05%. The amount is repayable in 60 monthly instalments. The last instalment is due in March, 2029.
e. Terms / rights attached to the equity shares
Issued Share capital of the Company has only one class of shares referred to as equity shares having Par value of Rs. 10/-. Each holder of Equity Shares is entitled to One vote per share. In the event of the Liquidation of the company, the holder of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all Preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. The dividend proposed by the board of directors is subject to the approval of the sharehlders in the ensuing Annual General Meeting except in case of interim dividend.
h. Aggregate number of share issued in cash/ share issued pursuant to contract without payment being received in cash during the period of five years immedietaly preceedings the reporting date.
No share was issued in cash/ share issued pursuant to contract without payment being received in cash during the period of five years immediately preceeding the reporting date. No shares were alloted as fully paid up bonus shares during the period of five years immediately preceeding the reporting date. There has been no buy back of shares during the period of five years immediately preceeding the reporting date. i Dividend
Final dividend distribution to shareholder is recognised as a liability in the period in which dividend is approved by the shareholders. Any interim dividend paid is recognised on approval by board of directors. Dividend payable is recognised directly in equity.
Companies are required to pay/ distribute dividend after deducting applicable taxes. The remittance of dividend outside India is governed by indian law on foreign exchange and is also subject to withholding tax at applicable rates. j The Company is an Investment company, the objective of the Company is to invest in long term investments, and distributing the profits of Company in a way that shareholders can participate equitably in the Company's growth, while maintaining the financial foundation of the Company and ensure sustainable growth.
Description of the nature and purpose of Other Equity:
Securities Premium
Securities premium represents amount received in excess of face value of the equity shares. The Securities premium can be applied by the company for limited purposes such as issuance of bonus shares, buy back of shares etc. in accordance with the provisions of Section 52 of the Companies Act, 2013.
Stautory Reserve
Statutory reserve represents reserve fund created pursuant to Section 45-IC of the RBI Act, 1934 through transfer of specified percentage (20%) of net profit every year before any dividend is Marchlared. 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. Debit balance in retained earnings represents balance of accumulated losses.
Other Comprehensive Income:
Equity Instruments through Other Comprehensive income.
The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVTOCI equity investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised. Remeasurement gain/ (losses) on defined benefit plan
The Company recognises change on account of remeasurement of the net defined benefit liability/(asset) as part of other comprehensive income.
33. DUE TO MICRO, SMALL AND MEDIUM ENTERPRISES
To the extent information available with the company, it has no dues to the Micro,Small and medium enterprises as at 31st March, 2024 and 31st March, 2023.
35. DISCLOSURE RELATING TO OUTSTANDING DERIVATIVE EXPOSURES IN SECURITIES
a) Cash Margin amounting to Rs. 172.75 Lakhs (Rs. 107.55 Lakhs) on Equity Derivative instruments contracts has been paid and outstanding as at the end of previous year.
b) Detail of Open Interest in Equity Stock Futures Contracts as at the year-end 31st March, 2024.
32. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) CONTINGENT LIABILITIES:
a) Income Tax demand disputed Rs. 25.17 Lakhs (Previous year Rs. 25.17 Lakhs) against which appeals are pending with appropriate authorities.
b) Amount payable in respect of partly paid up shares: Rs. 35.28 Lakhs (previous year Rs. 0.28 Lakhs)
36. Capital Management
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.
The company has adequate cash and bank balances. The company monitors its capital by careful scrutiny of the cash and bank balances, and a regular assessment of any debt requirements. In the absence of any significant amount of debt, the maintenance of debt equity ratio etc. may not be of any relevance to the Company.
37. Financial Risk Management Financial risk factors
The Company's principal financial liabilities, comprise borrowings and other payables. The main purpose of these financial liabilities is to purchase certain fixed assets and other liabilities incurred during the ordianary course of Company's operations. The Company's principal financial assets include Investments, inter corporate deposits, loans, cash and cash equivalents and other receivables. The Company's activities expose it to a variety of financial risks:
I. 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. Market prices comprise six types of risk: currency rate risk, interest rate risk and other price risks, such as commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments.
The company is exposed to market risk primarily related to the market value of its investments.
Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of Financial Instruments will fluctuate because of change in market interest rates.The company does not have exposure to the risk of changes in market interest rate as it has debt obligations with fixed interest rates which are measured at amortised cost.
Currency risk
Currently company does not have transaction in foreign currencies and hence the company is not exposed to currency risk.
Equity Price Risk
(a) Exposure
The company is exposed to equity price risk arising from Investments held by the company and classified in the balance sheet as fair value through P&L. To manage its price risk arising from investment in equity securities, the company diversifies its portfolio.
The majority of the company's equity instruments are listed on the Bombay stock exchange (BSE) or the National stock exchange (NSE) in India.
(b) Sensitivity analysis- Equity price risk
The table below sumarise the impact of increase/ decrease of the index on the company's equity and the profit for the period. The analysis is based on the assumption that the equity/ index had increased by 2% or decreased by 2% with all other variable held constant, and that all the company's equity instruments moved in line with the Index.
II. Credit risk
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its financing activities towards inter corporate loans where no significant impact on credit risk has been identified.
III. Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company manages its liquidity requirement by analysing the maturity pattern of Company's cash flows of financial assets and financial liabilities.
The table below summarises the maturity profile of the undiscounted cash flows of the Company's financial assets and liabilities.
39. Fair values
The management assessed that Fair Values of Financial Assets and Liabilities are approximately their carrying values.
40. Fair value hierarchy
The company determines fair values of its financial instruments according to the following hierarchy:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques which use Inputs that have a significant effect on the recorded fair value that are not based on observable market data.
42. Litigation :
The Company is in appeal in respect of various income tax matters.The Contingent liability in respect thereof is disclosed in note no. 32. Besides, in respect of appeals decided in favour of the company, the department is in appeals in certain cases.
In addition, the company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Company's management does not reasonably expect that the above legal claims and proceedings, when ultimately concluded and decided will have a meterial and adverse effect on the company's results of operations or Financial Statements.
43. Lease:
Expenses recognised in the statement of profit & loss in respect of short term lease for Rs. 3.89 Lakhs (PY Rs.12.13 Lakhs)
44. Segment Reporting:
In the opinion of Management there are no separate reportable segments as per Indian Accounting Standard (Ind AS-108).
45. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
46. The Company is required to spent Rs. Nil (Previous year Rs.11.34 Lakhs) on Corporate Social Responsibility (CSR) activities during the year. Amount spent during the year Rs. Nil (Previous Year Rs. 11.50 Lakhs).
47. The Company holds 3840 equity shares in its name as trustee in its depository account.
These shares are a result of fractional entitlement under its Scheme of Arrangement.
48. Other statutory information
i The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.
ii The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iii The Company has 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 for the financial years ended 31st March, 2024 and 31st March, 2023.
Note: - In the absence of purchase price of share held by struck off companies face value is considered for reporting purpose.
v The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
vi The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
vii The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
viii The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
ix The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961
d) Intra Group Exposures: -
The Company has given intra group (subsidiary company) loans & advances of Rs. 37.00 Lakhs as at the year end (Previous Year Rs. 35.00 Lakhs) .
The Company has invested in group companies totalling to Rs. 2272.37 Lakhs as at the year end (Previous Rs. 973.54 Lakhs).
e) Unhedged foreign currency exposure
The Company does not have any unhedged foreign currency exposures as at 31st March, 2024 and 31st March, 2023.
f) Disclosure of complaints
The Company does not have any customer interface and thus there are no complaints received by the NBFCs from customers and from the Offices of Ombudsman during the year ended 31st March, 2024 and 31st March, 2023.
g) Related Party Disclosure
For related party disclosures refer to Note 30 of the notes to Standalone Financial Statements.
51. During the year under consideration, the company has reclassified some of the investment from trading portfolio to investment portfolio. These has been done in view of these investments being intended to be held for long term. This reclassification has no impact on profit/loss of the company for the year.
52. The Previous year figures have been regrouped/reclassified,wherever necessary to confirm to the Current Year's presentation.
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