A provision is recognised when the Company has a present legal or constructive obligation as a result of past events, and it is
probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.
Provisions (excluding retirement benefits) are discounted to their present value at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability and are determined based on the best estimate
required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect
the current best estimates. The unwinding of the discount is recognised as finance cost.
(1) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or
(2) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount of the obligation cannot be made.
Contingent assets are not recognised in the financial statements. However, the same are disclosed in the financial statements
where an inflow of economic benefit is probable.
3.15 Events after reporting date
Events after the reporting period are classified into adjusting and non-adjusting events. Adjusting events provide evidence of
conditions that existed at the end of the reporting period, while non-adjusting events are those that are indicative of conditions
that arose after the reporting period. Adjusting events are reflected in the financial statements; non-adjusting events of material
size or nature are disclosed in the notes
3.16 Exceptional Item
Exceptional items include income or expense that are part of ordinary activities, however, are of such significance and nature that
separate disclosure enables the user of Financial statements to understand the impact in a more meaningful manner Exceptional
items are identified by virtue of either their size or nature so as to facilitate comparison with prior periods and to assess underlying
trends in the financial performance of the Company.
Exceptional items are presented separately in the financial statements and excluded from the computation of EBITDA to enable
better understanding of the Company's normal operating performance.
b) Terms / Rights attached to Equity Shares
The company has only one class of shares i.e. equity shares having a par value of Rs.10/- per share. Each holder of equity
shares is entitled to one vote per share. The company declares and pays dividends, (if any), in Indian rupees. The dividend,
if proposed, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive 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.
Nature and purpose of Reserves:
Securities premium: Securities premium reserve is used to record premium on issue of shares. The reserve is utilised in accordance
with the provisions of the Companies Act, 2013.
Capital Reserve: The Reserve is created based on statutory requirement under the Companies Act, 2013. This is not available for
distribution of dividend but can be utilized for issuing bonus shares.
NBFC Reserves: Every year the Company transfers a of sum of not less than twenty per cent of net profit of that year as disclosed in
the statement of profit and loss to its Statutory Reserve pursuant to Section 45-IC of the RBI Act, 1934.
General Reserves: General reserve is a free reserve and it represents amount transferred from retained earnings.
Retained earnings: Retained earnings comprises of the Company’s undistributed earnings after taxes.
FVOCI equity instrument: The fair value changes of the long term investments in securities have been recognised in reserves under
FVOCI equity instruments as at the date of transition and subsequently in the other comprehensive income for the year.
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial
instruments into three levels prescribed under the Ind AS. An explanation for each level is given below.
Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or ndirectly
observable.
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
Notes:
1 There have been no transfer between Level 1, Level 2 and Level 3 during the period March 31, 2025 and March 31, 2024.
2 The management assessed that cash and bank balances, trade receivables, loans, trade payables, borrowings (cash credits,
commercial papers, foreign currency loans, working capital loans) and other financial assets and liabilities approximate their
carrying amounts largely due to the short-term maturities of these instruments.
NOTE - 16 -ADDITIONALNOTES ONACCOUNTS :
15) Employee benefit:
Defined benefit plan:
Gratuity
In respect of Gratuity, a defined benefit plan, contributions are made to LIC’s Recognised Group Gratuity Fund Scheme.
It is governed by the Payment of Gratuity Act, 1972.
Under the Gratuity Act, employees are entitled to specific benefit at the time of retirement or termination of the employment on
completion of five years or death while in employment.
The level of benefit provided depends on the member’s length of service and salary at the time of retirement/ termination age.
Provision for gratuity is based on actuarial valuation done by an independent actuary as at the year end.
Each year, the Company reviews the level of funding in gratuity fund and decides its contribution.
The Company aims to keep annual contributions relatively stable at a level such that the fund assets meets the requirements of
gratuity payments in short to medium term.
Risks Exposures:
Gratuity Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may
vary over time. Thus, the Company is exposed to various risks in providing the above gratuity benefit which are as follows:
i) Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an
increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as
shown in financial statements).
ii) Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to
non availabilty of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.
iii) Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase
rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of
increase in salary used to determine the present value of obligation will have a bearing on the plan’s liabilty.
iv) Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The
Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.
v) Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as
amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the
maximum limit on gratuity of Rs. 20,00,000).
vi) Asset Liability Mismatching or Market Risk: The duration of the liabilty is longer compared to duration of assets,
exposing the Company to market risk for volatilities/ fall in interest rate.
vii) Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular
investment.
NOTE - 23 -ADDITIONALNOTES ONACCOUNTS :
16) Financial risk management objectives and policies to the extent applicable:
The company is a registered NBFC and having has its major exposure to the group companies and therefore the company does
not envisage any market risk, currency risk, interest rate risk, price risk, liquidity risk and credit risk. The Company’s senior
management in consultation with audit committee has the responsibility for establishing and governing the Company’s overall
risk management framework, wherever applicable.
17) Disclosure Pursuant to regulation 54(F) of the SEBI (Listing Obligations & Disclosure Requirements) Regulation 2013.
a Loans and Advances in the nature of Loans to Subsidiary:
There were no such transaction during the year.
b Loans and Advances in the nature of loan to Associates, Related Party and parties where directors/promotors are interested:
c i) The Company has given loan to Agarwal Fuel Corporation Private Limited, which has made investment in the shares
of the Company.
ii) The above advances fall under the category of loans, which are repayable on demand and interest has been charged
on it.
18) Consolidation of Accounts:
Pursuant to the provisions of section 2(6) of the Companies Act, 2013 the Company is an associate of Agarwal Coal Corporation
(S) Pte. Ltd. as the said company holds 36.93% shareholding of the Company, consequently the Company is liable to be consolidated
under Equity method with that Company.
19) In accordance with IND AS - 109 the long-term investments held by the company are to be carried at Cost or Fair Value. All the
investments of the Company have been considered by the management to be of long-term nature.
20) The balances of Trade Receivables, Borrowings and Loans & Advances are subject to respective consent, confirmation,
reconciliation and consequential adjustments, if any.
21) Subsequent events
The Company has evaluated all subsequent events through 10.05.2025, the date on which these financial statements are authorized
for issuance. No adjusting or significant non-adjusting events have occurred between March 31, 2025 and the date of authorization
of these financial statements that would have a material impact on these financial statements or that would warrant additional
disclosures.
22) Details of Benami Property held:
During the year, no proceedings have been initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
23) Indications of Impairment
In the opinion of management, there are no indications, internal or external which could have the effect of impairing the value of
assets to any material extent as at the Balance sheet date requiring recognition in terms of Ind AS 36.
24) Registration of charges or satisfaction with Registrar of Companies (ROC):
During the year, the charges or satisfaction which were to be registered with ROC (if any) have been done within the statutory
period.
25) Relationship with Struck off Companies:
The Company has no Investment in securities, Receivables, Payables, Share-holding or Other outstanding balances with such
companies.
26) Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023:
The Reserve Bank of India, having considered it necessary in the public interest, and being satisfied that, for the purpose of
enabling the Reserve Bank to regulate the financial system to the advantage of the country and to prevent the affairs of any Non¬
Banking Financial Company from being conducted in a manner detrimental to the interest of investors and depositors or in any
manner prejudicial to the interest of such NBFCs, and in exercise of the powers conferred under sections 45JA, 45K, 45L and 45M
of the Reserve Bank of India Act, 1934 (Act 2 of 1934) and section 3 read with section 31A and section 6 of the Factoring
Regulation Act, 2011 (Act 12 of 2012), had issued to every NBFC, the Master Direction - Reserve Bank of India (Non-Banking
Financial Company - Scale Based Regulation) Directions, 2023 (the Directions) dated 10.11.2023. The Company has an asset size
of less than 1 1000 crores and hence is classified in BASE LAYER of Non-Banking Financial Company - Scale Based Regulation
(Directions), 2023.
27) Net Owned Fund Requirement:
In exercise of the powers conferred under clause (b) of sub-section (1) of section 45IA of the RBI Act,1934 and all the powers
enabling it in that behalf, the Reserve Bank, specifies ^ 2 crores as the Net Owned Fund (NOF). The Company has a NOF of
^ 75.24 crores as at 31.03.2025.
28) According to Ind AS - 7 the desired Cash flow statement is enclosed herewith.
29) The Company has no borrowings from banks or financial institutions on the basis of security of current assets with respect to
which, hence the perodical returns or statements of current assets required to be filed by the Company with banks or financial
institutions is not applicable.
30) The company has not received any funds from any person/entities, for the purpose of directly or indirectly lending/investing/
providing guarantee/security to a another person/entity, by or on behalf of the person/entity from whom such amount is received.
31) The company has not advanced/loaned/invested funds to any person/entity for the purpose of directly or indirectly lending/
investing/providing guarantee/security to a third person/entity, by or on behalf of the company.
32) The Companies (Significant Beneficial Owners) Amendment Rules, 2019 lays down the rules and compliances required to be
adhered by the reporting company in India with respect of Significant Beneficial Owners (“SBO”) . All the Significant Beneficial
Owners identified have duly complied with Rules and filed the required BEN FORMS (if any).
33) Previous year figures have been regrouped or rearranged where ever necessary.
34) The figures have been rounded off to the nearest multiple of a rupee in thousands.
As Per our report of even date attached
STATUTORY AUDITORS For and on behalf of the Board of Directors
For : MAHENDRABADJATYA& CO. Sd/- Sd/-
Chartered Accountants Sanjeev Sharma Dharmendra Agrawal
ICAI Fum Registrati°n N°. : °°1457C Whole Time Director Wole Time Director
CANIRDESH BADJATYA (DIN: 07839822) (DIN: 08390936)
Partner Sd/- Sd/-
ICAI MNO: 420388 Neha Singh Ronak Sharma
PLACE : INDORE Company Secretary Chief Financial Officer
DATE : 10.05.2025 (PAN: EKSPS2494N) (PAN: KYUPS7284E)
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