3.8 Provisions
A provision is recognized when the company
has a present obligation as a result of past
event and it is probable that an outflow of
resources embodying economic benefits will be
required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation.
If the effect of the time value of money is
material, provisions are discounted using a
current pre-tax rate that reflects current market
assessments of the time value of money and
the risks specific to the liability.When
discounting is used, the increase in the
provision due to the passage of time is
recognised as a finance cost.
Provisions are not discounted to their present
value and are determined based on the best
estimate required to settle the obligation at the
reporting date. These estimates are reviewed
at each reporting date and adjusted to reflect
the current best estimates.
3.9 Contingent Liability
A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future
events beyond the control of the company or a
present obligation that is not recognized
because it is not probable that an outflow of
resources will be required to settle the
obligation. A contingent liability also arises in
extremely rare cases where there is a liability
that cannot be recognized because it cannot
be measured reliably. The company does not
recognize a contingent liability but discloses its
existence in the financial statements.
3.10 Contingent Asset
A contingent asset is a possible asset that
arises from past events and whose existence
will be confirmed only be occurrence or non¬
occurrence of one or more uncertain future
events not wholly within the control of the
company. The company does not recognize a
contingent asset but discloses its existence in
the financial statements.
3.11 Cash and cash equivalent
Cash and cash equivalents for the purposes of
cash flow statement comprise cash at bank
and in hand and short-term, highly liquid
investments with original maturities of three
months or less that are readily convertible to
known amounts of cash and which are subject
to an insignificant risk of changes in value.
3.12 Earnings per share
Basic earnings per share is calculated by
dividing the net profit or loss for the year
attributable to equity shareholders by the
weighted average number of equity shares
outstanding during the year.
For the purpose of calculating diluted earnings
per share, the net profit or loss for the year
attributable to equity shareholders and the
weighted average number of shares
outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
3.13 Lease
Company as lessee
The Company's lease asset classes primarily
consist of leases for Office building. The
Company assesses whether a contract contains
a lease, at inception of a contract. A contract
is, or contains, a lease if the contract conveys
the right to control the use of an identified asset
for a period of time in exchange for
consideration. To assess whether a contract
conveys the right to control the use of an
identified asset, the Company assesses
whether: (i) the contract involves the use of an
identified asset (ii) the Company has
substantially all of the economic benefits from
use of the asset through the period of the lease
and (iii) the Company has the right to direct the
use of the asset.
At the date of commencement of the lease, the
Company recognizes a right-of-use (ROU) asset
and a corresponding lease liability for all
lease arrangements in which it is a lessee,
except for leases with a term of 12 months or
less (short-term leases) and low value leases.
For these short-term and low-value leases,
the Company recognizes the lease payments
as an operating expense on a straight-line basis
over the term of the lease.
The ROU assets are initially recognized at
cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made at or prior to the commencement date of
the lease plus any initial direct costs less any
lease incentives. They are subsequently
measured at cost less accumulated
depreciation and impairment losses.
ROU assets are depreciated from the
commencement date on a straight-line basis
over the shorter of the lease term and useful
life of the underlying asset.
The lease liability is initially measured at
amortized cost at the present value of the future
lease payments. The lease payments are
discounted using the interest rate implicit in
the lease or, if not readily determinable, using
the incremental borrowing rates in the country
of domicile of these leases.
Lease liability and ROU assets have been
separately presented in the Balance Sheet and
lease payments have been classified as
financing cash flows.
3.14 Segment Reporting
An operating segment is component of the
company that engages in the business activity
from which the company earns revenues and
incurs expenses, for which discrete financial
information is available and whose operating
results are regularly reviewed by the chief
operating decision maker, in deciding about
resources to be allocated to the segment and
assess its performance. The company's chief
operating decision maker is the Managing
Director.
Assets and liabilities that are directly attributable
or allocable to segments are disclosed under
each reportable segment. All other assets and
liabilities are disclosed as un-allocable.
Revenue and expenses directly attributable to
segments are reported under each reportable
segment. All other expenses which are not
attributable or allocable to segments have been
disclosed as un-allocable expenses.
The company prepares its segment information
in conformity with the accounting policies
adopted for preparing and presenting the
financial statements of the company as a whole.
3.15 Cash Flow Statement
Cash flows are reported using indirect method
whereby profit for the period is adjusted for the
effects of the transactions of non-cash nature,
any deferrals or accruals of past or future
operating cash receipts and payments and
items of income or expenses associated with
investing and financing cash flows. The cash
flows from operating, investing and financing
activities of the Company are segregated.
3.16 Events after reporting date
Where events occurring after the Balance Sheet
date provide evidence of conditions that existed
at the end of the reporting period, the impact
of such events is adjusted within the financial
statements. Otherwise, events after the Balance
Sheet date of material size or nature are only
disclosed.
4. RECENT ACCOUNTING PRONOUN¬
CEMENTS
Ministry of Corporate Affairs (“MCA”) notifies new
standard or amendments to the existing standards.
There is no such notification which would have been
applicable from April 1st, 2024.
28.1 Financial Instruments Risk management
objectives and Policies
The company's activities expose it to variety of financial
risks : market risk, credit risk and liquidity risk. The
company's focus is to foresee the unpredictability of
financial markets and seek to minimize potential adverse
effects on its financial performance. The Board of Directors
has overall responsibility for the establishment and
oversight of the Company's risk management framework.
The Board of Directors has established a risk management
policy to identify and analyze the risks faced by the
Company, to set appropriate risk limits and controls, and
to monitor risks and adherence to limits. Risk management
systems are reviewed periodically to reflect changes in
market conditions and the Company's activities. The Board
of Directors oversee compliance with the Company's risk
management policies and procedures, and reviews the
risk management framework.
28.2 Market Risk
The 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 risk comprises other
price risk. The company does not have any foreign currency
transactions, hence it is not exposed to currency risk. The
company does not expose to interest rate risk as it does
not have any borrowings and in respect of loans given
(other than loan given to employees) are repayable on
demand and are not interest bearing. Further, loans given
to employees are insignificant and at fixed rate of interest.
Other price risk
Other price risk is the risk that the fair value of a financial
instrument will fluctuate due to changes in market traded
price. The Company is exposed to price risk arising mainly
from investments in equity instruments.
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial assets.
The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due without incurring unacceptable losses or risking damage to the Company's reputation.
The Company ensures that it has sufficient fund to meet expected operational expenses.
The Company measures risk by forecasting cash flows.
28.4 Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company's loans and investments. Credit risk is managed
through continuously monitoring the creditworthiness of counterparty.
Credit risk arising from cash and cash equivalents with bank is limited as the counterparty are banks with high credit
ratings.
34.2 Relationship with struck off companies:
The Company does not have any transaction and
balance outstanding with struck off companies.
34.3 Willful Defaulter
The company is not declared as willful defaulter
by any bank or financial institution or other lender.
34.4 Utilisation of borrowed funds
The Company has not taken any borrowings from
Banks / Financial Institutions during the period.
34.5 Registration of charges or satisfaction
with Registrar of Companies (ROC)
As Company does not have any secured
borrowings, registration of charges or satisfaction
with ROC is not applicable.
34.6 Details of Benami Property held
The company does not hold any benami property
under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and rules made thereunder,
hence no proceedings initiated or pending against
the company under the said Act and Rules.
34.7 Utilisation of borrowed funds, share
premium and other funds
The Company has not given any advance or loan
or invested funds from borrowed funds or share
premium or any other sources with the
understanding that intermediary would directly or
indirectly lend or invest in other person or equity
identified in any manner whatsoever by or on
behalf of the company as ultimate beneficiaries
or provide any guarantee or security or the like
to on behalf of ultimate beneficiaries.
The Company has not received any fund from
any person or entity with the understanding that
the Company would directly or indirectly lend or
invest in other person or entity identified in any
manner whatsoever by or on behalf of the funding
party (ultimate beneficiary) or provided any
guarantee or security or the like on behalf of the
ultimate beneficiary.
34.8 Compliance with number of layers of
companies
In respect of Investment in subsidiry, the company
has compiled with the number of layers prescribed
under clause (87) of section 2 of the Companies
Act, 2013 read with Companies (Restrictions on
number of Layers) Rules, 2017.
35. Additional Disclosures
35.1 Details of Crypto Currency or Virtual
Currency
The company has not traded or invested in Crypto
currency or Virtual Currency during the financial
year.
35.2 Undisclosed Income
There is no transaction, which has not been
recorded in books of accounts, that has been
surrendered or disclosed as income during the
year in tax assessments under the Income Tax
Act, 1961.
36. Ratios Analysis
Non - Banking Financial Company - Non -
Systemically Important Non - Deposit taking
Company (Reserve Bank) Directions, 2016
(Master Direction) notified, vide number RBI/
DNBR/2016-17/44, on September 01, 2016 and
updated on time to time is applicable to the
Company. As per the Master Directions, ratios
are mentioned in Division III to the Schedule III
to the Companies Act, 2013 are not applicable to
the Company hence the same have not been
disclosed.
37. The Company is not holding and accepting
deposits. Further, the total assets of the Company
being less than Rs. 500 Crores, the Prudential
Norms on Credit and Investment Concentration
and Capital Adequacy are not applicable to it.
The Company has complied with all other norms
on Income Recognition, Accounting Standards,
Assets Classification, Provisioning for Bad and
Doubtful Debts & Standard Assets and other
related matters as prescribed under the Non¬
Banking Financial (Non-Deposit Accepting or
Holding) Companies Prudential Norms (Reserve
Bank) Directions, 2015 as amended.
38. Disclosure requirement as per Schedule V of
SEBI (Listing Obligations and Disclosure
Requirments) Regluations, 2015
38.1 None of the Loanees named hereinabove has
made any investment in the Equity Capital of the
Company or its subsidiary.
39. Details Of Loan Given, Investment Made
& Guarantee Given Covered U/S 186(4)
Of The Companies Act. 2013
Loan given and Investments made are given
under respective heads. The Company has not
given any guarantee.
See accompanying notes to the standalone financial statements.
As per our report of even date attached.
For Manubhai & Shah LLP For and on behalf of the Board of Directors of
Chartered Accountants Stam-ose Mafatlal Investments and Hnance Ltd.
ICAI Firm Registration No. : 106041W/W100136 p r MAFATLAL M J MEHTA
K. B. S0|anki Chairman Director & CEO
Partner DIN: 0015361 DIN: 00029722
Membership no.: 110299
Mumbai, S. A. DAVE H. V. MEHTA
Ahmedabad. Dated : May 22 2024 Company Secretary Chief Financial Officer
Dated : May 22, 2024
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