(xv) Provisions and contingencies related to claims, litigation, etc.
A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not,
require an outflow of resources, or a present obligation whose amount cannot be estimated reliably.
Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote. Contingent
assets are disclosed in the financial statements where an inflow of economic benefits is probable.
(xvi) Cash and cash equivalent
Cash and cash equivalents include balance with banks in current accounts and term deposits, cash & cheques
in hand and money lent on collateralized lending & borrowing obligations transactions.
(xvii) Retirement Benefit
Retirement benefits, gratuity medical reimbursement and Leave Payments and other liabilities in respect on employees, shall be
accounted as and when company becomes statutory liable.
(xviii) Taxation
• The provision for current tax has been provided following current year income tax provisions.
• Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising
between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax
rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax
assets and liabilities is recognized to the profit and loss account.
(xix) Earnings Per Share
Basic earnings per share has been computed by dividing net income attributable to ordinary equity holders by the weighted average
number of shares outstanding during the year. Partly paid up equity share is included as fully paid equivalent according to the fraction
paid up.
Diluted earnings per share has been computed using the weighted average number of shares and dilutive potential shares, except
where the result would be anti-dilutive
(xx) Prior Period Adjustment & Extra-Ordinary Item
Income and expenditure pertaining to prior period, if any, which were omitted to be recorded in last year due to error or omission in
books are duly reflected under head of prior period items in the statement of Profit & loss of current year.
(xxi) Contingencies & Events Occurring After The Balance Sheet Date
Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual
acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the
Board, where material.
(xxii) Segment Reporting
Primary Segment identified based on the nature of product and secondary segment is identified based on geographical location.
(xxiii) 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 March 31, 2024, MCA has not notified any new
standards or amendments to the existing standards applicable to the Company.
(xxiv) Optional exemptions availed and mandatory exceptions _|
In preparing the financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.
A. Optional exemptions:
(i) Property plant and equipment, intangible assets and investment properties
As per Ind AS 101 an entity may elect to:
(a) measure an item of property, plant and equipment at the date of transition at its fair value and use that fair value as its deemed
cost at that date; or
(b) use a previous GAAP revaluation of an item of property, plant and equipment at or before the date of transition as deemed cost at
the date of the revaluation, provided the revaluation was, at the date of the revaluation, broadly comparable to:
- fair value;
- or cost or depreciated cost under Ind AS adjusted to reflect, for example, changes in a general or specific price index.
The elections under (a) and (b) above are also available for intangible assets that meets the recognition criteria in Ind AS 38,
Intangible Assets, (including reliable measurement of original cost); and criteria in Ind AS 38 for revaluation (including the existence
of an active market); or
(c) use carrying values of property, plant and equipment, intangible assets and investment properties as on the date of transition to Ind
AS (which are measured in accordance with previous GAAP and after making adjustments relating to decommissioning liabilities
prescribed under Ind AS 101) if there has been no change in its functional currency on the date of transition.
The Company has elected to apply the exemption available under Ind AS 101 to use the previous GAAP revaluation for all of its
property, plant and equipment, intangible assets and investment properties as recognised in the financial statements as at the date of
transition to Ind AS, as deemed cost as at the date of transition (i.e. 1 April 2021).
(i) De recognition of financial assets and liabilities
As per Ind AS 101, an entity should apply the de recognition requirements in Ind AS 109, Financial Instruments, prospectively for
transactions occurring on or after the date of transition to Ind AS. However, an entity may apply the derecognition requirements
retrospectively from a date chosen by it if the information needed to apply Ind AS 109 to financial assets and financial liabilities de
recognised as a result of past transactions was obtained at the time of initially accounting for those transactions.
The Company has elected to apply the de recognition principles of Ind AS 109 prospectively from 1 April 2021.
(ii) Estimates
As per Ind AS 101, an entity’s estimates in accordance with Ind AS at the date of transition to Ind AS and at the end of the
comparative period presented in the entity’s first Ind AS financial statements, as the case may be, should be consistent with estimates
made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error.
However, the estimates should be adjusted to reflect any differences in accounting policies.
As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous
GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS
balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).
The Company’s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the
financial statements that were not required under the previous GAAP are listed below:
- Fair value of financial instruments carried at fair value through profit and loss and/ or fair value through other comprehensive
income.
- Impairment of financial assets based on the expected credit loss model.
- Determination of the discounted value for financial instruments carried at amortised cost.
Note No “24”: OTHER NOTES ON ACCOUNTS:
i. Previous year’s figures have been regrouped and re-casted, re-arranged wherever necessary to make them comparable with those
of the current year.
ii. Proceedings under section 295 (4) & (5), 211, 372 (8) and 383 (1A) of Companies Act, 1956 were initiated by the Registrar of
Companies, MP, against the company and its directors before the Chief Judicial Magistrate, Gwalior (MP).
iii. The Company's shares are suspended from trading at Bombay Stock Exchange Ltd. (BSE). However, the company has applied
for Revocation of suspension of share with BSE which is yet to be concluded.
iv. In the opinion of the management loans and advances other than NPA / doubtful have been considered as good and fully
recoverable. Provision for NPA/doubtful has been made in books of accounts as per RBI guidelines.
v. The Company has been classified as loan Company by the Reserve Bank of India and registration as Non-Banking Finance
Company with RBI is also continued for the year of Audit.
vi. Balance of All loan & advances are subject to confirmation and consequential reconciliation, if any from the respective parties.
However, the management does not expect any material difference affecting the current year financial statement.
vii. Contingent Liabilities not provided for:
a. Estimated amount of contracts remaining to be executed on capital account: Registration fees for registration of plot.
b. Liability, if any, In respect of proceedings under section 295 (4) & (5), 211, 372 (8) and 383 (1A) of Companies Act, 1956
initiated by the Registrar of Companies, MP, before the Chief Judicial Magistrate, Gwalior (MP).
c. Liability, if any, an inspection u/s 209A Companies act, 1956 has been made by the Registrar of Companies M.P. & C.G.
Gwalior in past years. The matter is still pending with ROC and Court.
viii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses,
if any, on long-term contracts. Company do not have any derivative contracts;
ix. There is no material Prior Period item except to the extent disclosed in Statement of P&L Accounts.
x. For the purpose of calculating market value of investment as well as closing stock of shares, where quotations are not available
on the last day of the year the latest available quotations are taken as the market value.
xi. Details of Loans and advances under finance operation overdue for more than 90 days are as under :
a) All accounts with overdue for 90 days above has been categorized as Non-Performing Assets as per RBI norms and Interest
receivable on these accounts are suspended till recovery of over dues as per terms of the loans & advance.
b) Provision for Bad & Doubtful Debts, as per RBI norms, amounting to ' 77.44 (previous year ' 50.93) lakhs has been maintained in
books of accounts in respect of such overdue loan accounts.
c) Loans and advances under finance operation include ' 26.81 (P.Y. ' 26.81) Lakhs against which legal suit has been filed and cases
are under progress before District Court.
xii. Additional Regulatory Information as per Companies Act, 2013
1. The company does not own any immovable property which in not in the name of Company
2. The company has not revalued its Property.
3. 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 the rules made there under.
4. The company is not declared wilful defaulter by any bank or financial institution or other lender.
5. The company has not entered into transactions with companies struck off under section 248 of the Companies Act, 2013 or
section560 of Companies Act, 1956.
6. The company has not applied for any Scheme of Arrangements in term of sections 230 to 237 of the Companies Act, 2013.
7. (a) 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 person(s) or entity(ies), including foreign entities ("intermediaries"),with the
understanding, whether recorded in writing or otherwise , that the intermediary shall, whether , directly or indirectly lend or
invest in other person or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) No funds have been received by the company from any person(s) or entity (ies), including foreign entities
("FundingParties"),with the understanding ,whether recorded in writing or otherwise , that the company shall , whether , directly
orIndirectly. Lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the FundingParty
("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
8. The company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
9. Provisions of Section 135 of the Companies Act, 2013 does not apply to the Company as Company does not fall under any of
the criteria specified under above referred section therefore Company has not constituted Corporate Social responsibility
(CSR)committee as required under the Act.
10. All charges or satisfaction are registered with ROC within the statutory period for the financial years ended March 31, 2024
and March 31, 2023. No charges or satisfactions are yet to be registered with ROC beyond the statutory period.
11. There is no undisclosed income in the books of accounts.
12. The company has does not have any borrowing from Banks or FIs against security of current assets.
13. The Company has not used the borrowings from banks and financial institutions for the purpose other than for which it was
taken.
14. The company does not hold any intangible assets and thus no revaluation is done.
xiii. Segment Reporting :
The Company’s entire business is conducted within India.Therefore, there is no reportable geographical segment for the year.
The Company’s operations are in a single segment i.e. “Finance Activities”. Thus the reporting of Accounting Standard (AS)
“17” regarding segment reporting issued by the Institute of Chartered Accountants of India is also not applicable to the company
for the year.
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