12. Provisions & Contingencies :
Provisions involving substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of past events, it is
probable that there will be an outflow of resources and a reliable estimate
can be made of the amount of the obligation. The Company does not provide
for a contingent liability but discloses its existence in the financial statement.
13. Earnings per equity share :
Basic earnings per share is calculated by dividing the net profit or loss for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period. Earnings considered
in ascertaining the Company's earnings per share is the net pr ofit for the
period after deducting preference dividends and any attributable tax thereto
for the period. The weighted average number of equity shares outstanding
during the period and for all periods presented is adjusted for events, such
as bonus shares, sub-division of shares etc., that have changed the number
of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or
loss for the period attributable to equity shareholders is divided by the
weighted average number of equity shares outstanding during the period,
considered for deriving basic earnings per share and weighted average
number of equity shares that could have been issued upon conversion of all
dilutive potential equity shares.
14. Employee Benefits :
(a) ESI & EPF Contribution : The company had taken registration with
employees provident fund department and with employees state
Insurance department. Accordingly, deductions and payments are made,
wherever applicable.
(b) Provision for Retirement Benefits : Since the management of the
Company does not provide any kind of post retirement benefits to any of
its employees, provision for retirement benefits is not made by the
Company.
15. Impairment of Assets :
The carrying values of assets/ cash generating units at each balance sheet date
are reviewed for impairment. If any indication of impairment exists, the
recoverable amount of such assets is estimated and impairment is recognized, if
the carrying amount of these assets exceeds their recoverable amount. The
recoverable amount is the greater of the net selling price and their value in use.
Value in use is arrived at by discounting the future cash flows to their present
value based on an appropriate discount factor. When there is indication that an
impairment loss recognized for an asset in earlier accounting periods no longer
exists or may have decreased, such reversal of impairment loss is recognized in
the Statement of Profit and Loss, except in case of revalued assets.
16. Repossessed Hypothecated Stock :
The repossessed stock has been valued at year end at market value &
accounted in the books of accounts of the Company. The Company
maintained separately a Seized Vehicles Register, recording the date of
seizure of vehicle, date of release of vehicle and date of sale of Seized Vehicle
& accounted profit /loss on sale of seized vehicles, wherever applicable.
B. NOTES ON ACCOUNTS
1. The outstanding balances of Trade receivables (Sundry Debtors) & Trade
payables (Sundry Creditors), Loans and Advances given / taken are subject
to confirmation from the parties.
3. During the year, as and when required, Unsecured Loans and advances are
given to and taken from the Directors / Companies / Firms and other parties,
in which Directors are interested. Since the accounts were operated as
current accounts, repayable on demand, it is impossible for the Management
to quantify the maximum amount of unsecured loans given and taken.
However, Balance receivable outstanding at the yearend under the same
management does not exceeds the limit prescribed under section 185 & 186
of the Companies Act, 2013 & under RBI Directions to NBFC's.
4. Previous year's figures have been regrouped / recast / rearranged /
reclassified, wherever required.
5. Contingent Liabilities & Commitments
(to the extent not provided for)
A. Contingent Liabilities
a. Claims against the Company not acknowledged as debt : -
1. Disputed Income Tax Liability for A.Y.2017-18 Rs.20,51,022/-
(on account of addition u/s 68 on deposit of cash in Banks during
demonetisation period)
b. Guarantees : NIL
c. Other Money for which the Company is contingently liable : - NIL
B. Commitments
a. Estimated amount of contacts remaining to be executed on capital
account and not provided for : - NIL
b. Un called liability on shares and other investments partly paid : - NIL
c. Other Commitments : - NIL
6. In the opinion of the management, there is no material diminition in the value
of investments made in Immovable Properties / Unquoted shares, held as
long term investments.
7. In the opinion of the Board, the realisable value of the Current Assets, Loans
and Advances, in the ordinary course of business would not be less than the
amount at which they are stated in the Balance Sheet.
8. Loans/Investments / Guarantees / Securities taken together to single group
of parties i.e. Firms & Companies under the same management are within
the limits prescribed under section 185 & 186 of the Companies Act, 2013.
14. Financial risk management objectives and policies
The company's principal financial assets/liabilities comprise loans
investments and borrowings, trade and other payables. The main purpose of
these financial assets/liabilities is to finance and support company's
operations. The company's principal financial assets include loans,
investments other receivables, cash and cash equivalents and refundable
deposits/ Investment in property that derive directly from its operations.
The company is exposed to market risk, credit risk and liquidity risk. The
company's senior management oversees the management of these risks. The
Board of Directors reviews and agrees policies for managing each of these
risks which are summarized below.
a) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial
instrument will fluctuate because of changes in market price. Market risk
comprises two types of risk. Interest rate risk & other price risk such as
commodity risk. Financial instruments affected by market risk include loans
& borrowings & refundable deposits. The sensitivity analysis in the
following sections relate to the position as at March 31st, 2025 & March 31st
2024. The sensitivity analysis have been prepared on the basis of the amount
of net debt & the ratio of fixed to floating interest rates of debt. The
sensitivity of the relevant profit or loss item in the effect of the assumed
changes in respective market risks. This is based on the financial assets and
financial liabilities held at March 31st 2025 & March 31st 2024.
b) Interest rate risk
Interest rate sensitivity on fixed and floating rate assets and liabilities with
defining maturity profiles is measured by using the duration gap analysis.
The same is computed monthly and sensitivity of the market value of equity
assuming varied changes in interest rates are presented and monitored by
management.
c) Credit Risk
Credit risk is the risk that the company will incur a loss because its
customers fail to discharge their contractual obligations. The company has a
comprehensive framework for monitoring credit quality of its all kinds of
loans primarily based on days past due monitoring, at period end.
Repayment by individual customers and portfolio is tracked regularly and
required steps for recovery are taken through follow ups and legal recourse.
In assessing the impairment of financial loans under expected credit loss
(ECL) model, the assets have been segmented into three stages. The three
stages reflect the general pattern of credit deterioration of a financial
instrument. The differences in accounting between stages, relate to the
recognition of expected credit losses and the measurement of interest
income.
The company applies the simplified approach to providing for expected
credit losses prescribed by Ind AS 109, which permits the use of the lifetime
expected loss provision for trade advances. The company has computed
expected credit losses based on a provision matrix which uses historical
credit loss experience of the company
The gross carrying amount of a financial asset is written off when there is no
realistic prospect of further recovery. This is generally the case when the
company determines that the debtor does not have assets or sources of income
that could generate sufficient cash flows to repay the amounts subject to the
write-off. However, financial assets that are written off could still be subjected
to enforcement activities under the company's recovery procedures, taking into
account legal advice where appropriate. Any recoveries made are recognized in
profit or loss statement.
16. Capital Management
The company's policy is to maintain a stable capital base so as to maintain
investor, creditor and market confidence and to sustain future development of
the business. Management monitors capital on the basis of return on capital
employed as well as the debt to total equity ratio. For the purpose of debt to
total equity ratio, debt considered is long-term and short-term borrowings.
Total equity comprise of issued share capital and all other equity reserves.
21. Details of immovable properties not held in the name of the company : NIL
22. Fair value of investment property disclosed based on valuation by general
registered valuer : (Amount in Rs.)
(a) Property at Kalburagi valued & disclosed at Market Value (Rs.38500000/-).
(b) Property at Vijaypura valued & disclosed at Market Value. (Rs.1337000/-)
23. Details of Benami Property held : NIL
24. Details as wilful defaulter declared : NIL
25. Quarterly returns of current asset filed by the company with Bank or any
other lender tallies with books of accounts or not : Not Applicable
26. Details of relationship with struck off Companies : NIL
27. Details of pending Registration of charges or Satisfaction of charges with
Registrar of Companies : NIL
30. Details of lending of borrowed funds & share premium to other
Intermediary who shall lend or invest or provide any guarantee, security on
behalf of the Company (ie ultimate beneficiaries) : NIL
31. Details of any fund received from funding party to lend or invest or provide
any guarantee, security on behalf of the funding party (ie ultimate
beneficiaries). : NIL
32. Details of undisclosed income surrendered or disclosed as income on
search, survey or any other income tax assessments. : NIL
33. Details of Crypto Currency or Virtual Currency traded or invested. : NIL
34. Details of Non-Performing Assets & Provisions against NPA's (Amount in Rs.)
As per our report of even date attached.
For BENNUR NAGARAJA & CO For and on Behalf of Board of Directors
CHARTERED ACCOUNTANTS
FR No. 419S
__Sd/-__ __Sd/-__
(BENNUR NAGARAJA) (RAJGOPAL GILADA)
PROPRIETOR MANAGING DIRECTOR
M.No: 024163 DIN: 00307829
___Sd/-___
Place : Bangalore (SAMPATHKUMAR GILADA)
Date : 30th May, 2025 DIRECTOR
UDIN : DIN: 02144736
Sd/-_
(SANGEETA GILADA)
CHIEF EXECUTIVE OFFICER
PAN: AIDPG1236B
Sd/-_
(PALLAVI GILADA)
CHIEF FINANCIAL OFFICER
PAN: BGDPM7347E
_Sd/-
(CHAITRA G S)
COMPANY SECRETARY
PAN: AITPC1761F
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