3.7 Fair value measurement

The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.

Fair value is the price that would be received against sale of an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based on
the presumption that the transaction to sell the asset or transfer the liability takes place in the accessible
principal market or the most advantageous accessible market as applicable.

In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the
asset or liability if market participants would take those characteristics into account when pricing the asset or
liability at the measurement date.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the
use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy into Level I, Level II and Level III based on the lowest level input
that is significant to the fair value measurement as a whole.

For assets and liabilities that are fair valued in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.

Fair value for measurement and/or disclosure purposes for certain items in these financial statements is
determined considering the following measurement methods:

4. 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 31 March
2025, MCA has not notified any new standards or amendments to the existing standards applicable to the
Company.

Terms/Rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity
share is entitled to one vote per equity share. The dividend proposed by the Board of Directors, if any, is
subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim
dividend.

As per the Companies Act, 2013, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts in the event of liquidation of the Company. The
distribution will be in proportion to the number of equity shares held by the shareholders

(a) Statutory reserve fund

Statutory reserve fund is created by transferring 20% of the profit for the year pursuant to section 45-IC of the
Reserve Bank of India Act, 1934 for NBFC Companies.

(b) Retained earnings

Retained earnings represents accumulated surplus of profit and loss

(c) Other comprehensive income

Other comprehensive income represents actuarial gains / (losses) arising on recognition of defined benefit
plans.

25. Contingent liabilities

Claims against the Company not acknowledged as debts-

Income-tax demands for the previous year have been raised by the income tax authority; the company is
in the process of representing for the same with the authority. The liability is contingent to the extent of
the outcome of the matter

(a) The Company has reviewed all its pending litigations and proceedings and has adequately provided
for where provisions are required and disclosed as contingent liabilities where applicable, in its
financial statements. The Company does not expect the outcome of these proceedings to have a
materially adverse effect on its financial statements.

(b) It is not practical for the Company to estimate the timings of cash outflows, if any, in respect of the
above pending resolution of the respective proceedings as it is determinable only on receipt of
judgements/decisions pending with various forums/authorities.

26. Segment Information

The Company operates in a single reportable segment, i.e., financing, since the nature of the loans is
exposed to similar risks and return profiles, hence, they are collectively operating under a single
segment. The Company operates in a single geographical segment i.e. domestic.

28. Events after reporting date

There have been no events after the reporting date that requires adjustment/disclosure in these
financial statements.

29. Fair values

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction in the principal (or most advantageous) market at the measurement date under current
market conditions (i.e., an exit price), regardless of whether that price is directly observable or
estimated using a valuation technique.

To show how fair values have been derived, financial instruments are classified based on a hierarchy of
valuation techniques.

This note describes the fair value measurement of both financial and non-financial instruments.
Valuation framework

The Company has an internal fair value assessment team which assesses the fair values for assets
qualifying for fair value.

The Company's valuation framework includes:

• Benchmarking prices against observable market prices or other independent sources.

• Development and validation of fair valuation models using model logic, inputs, outputs, and
adjustments.

These valuation models are subject to a process of due diligence and validation before they become
operational and are continuously calibrated.

Valuation methodologies adopted.

Fair values of financial assets, other than those which are subsequently measured at amortized cost,
have been arrived at as under:

• Fair values of investments held for trading under FVTOCI have been determined using quoted
market prices of the underlying instruments.

• Fair values of strategic investments in equity instruments designated under FVTOCI have been
measured.

The Company has determined that the carrying values of cash and cash equivalents, bank balances,
trade receivables, short term loans, floating rate loans, investments in equity instruments designated at
FVOCI, trade payables, short term debts, borrowings, bank overdrafts and other current liabilities are a
reasonable approximation of their fair value and hence their carrying value are deemed to be fair value.

37. Additional disclosures in Notes to Accounts as per Sch III - refer notification dated 24th March 2021.

The disclosure on the following matters required under Schedule III as amended not being relevant or
applicable in case of the Company, same are not covered:

a) The Company has not traded or invested in crypto currency or virtual currency during the
financial year

b) 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 rules
made there under

c) The Company has not been declared wilful defaulter by any bank or financial institution or
government or any government authority

d) The Company has not entered into any scheme of arrangement

e) No satisfaction of charges is pending to be filed with ROC

f) There are no transactions which are not recorded in the books of account which have been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961

g) The Company has not advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or other kind of funds) to or in any other person or entity,
including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;

The Company has not received any funds (which are material either individually or in the aggregate)
from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

38. During the year, the company has not entered into any transactions with companies struck off under the

Companies Act 2013.

For S C Mehra & Associates LLP For and on behalf of the Board of

Firm Regn No.: Abhinav Capital Services Limited

106156W/W100305
Chartered Accountants

Sd/- Sd/- Sd/- Sd/-

CA Deepak M. Oza Chetan Karia Kamlesh Kotak Ms. Reshma Matele

Partner Chairman Director Company Secretary

Membership No.: 045890 DIN:00015113 DIN:00012755 Mem. No. A65306

UDIN: 25045890BMHUHP2900

Place: Mumbai

Date: 29 May 2024

Sd/-

Ritu Mohatta

CFO

DIN:08860676