Nilkanth Engineering Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2024

xvii) Provisions

Provisions are recognised when the Company has a present obligation (legal or
constructive) 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 realisable
estimate can be made of the amount of the obligation. The expense relating to a provision
is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to passage of time is recognised
as a finance cost.

xviii) Borrowing costs

Borrowing costs include interest, amortization of ancillary costs incurred. Costs in
connection with the borrowing of funds to the extent not directly related to the acquisition
of qualifying assets are charged to the Statement of Profit and Loss, over the tenure of
the loan. Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the
period from commencement of activities relating to construction/development of the
qualifying asset upto the date of capitalization of such asset is added to the cost of the
assets.

A qualifying asset is an asset that necessarily takes a substantial period of time to get
ready for its intended use or sale.

xix) Contingent liabilities and Contingent assets

Contingent Liabilities are not recognised but are disclosed in notes in respect of possible
obligations that arise from past events but their existence is confirmed by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of
the Company.

Contingent assets are disclosed in the standalone financial statements by way of notes
to accounts, when an inflow of economic benefits is probable.

xx) 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 is adjusted for the effects of all
dilutive potential equity shares, except where the results are anti-dilutive.

xxi) Significant accounting judgements, estimates and assumptions

When preparing the standalone financial statements, management makes a number of
judgements, estimates and assumptions about the recognition and measurement of
assets, liabilities, income and expenses.

The following are significant management judgements in applying the accounting policies
of the Company that have the most significant effect on the standalone financial
statements.

Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each
reporting date, based on the expected utility of the assets. Uncertainties in these
estimates relate to technological obsolescence that may change the utility of certain
software and IT equipment.

Management reviews its estimate of the lease term of right-of-use assets at each
reporting date, based on the expected utility of the leased property. Uncertainties in this
estimate relate to business obsolescence/discontinuance that may change the lease term
for certain right-of-use assets.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds
its recoverable amount, which is the higher of its fair value less costs of disposal and its
value in use. The fair value less costs of disposal calculation is based on available data
from binding sales transactions, conducted at arm''s length, for similar assets or
observable market prices less incremental costs for disposing of the asset. The value in
use calculation is based on a DCF model. The cash flows are derived from the budget
for the next five years and do not include restructuring activities that the Company is not
yet committed to or significant future investments that will enhance the asset’s
performance of the CGU being tested. The recoverable amount is sensitive to the
discount rate used for the DCF model as well as the expected future cash-inflows and
the growth rate used for extrapolation purposes.

Defined benefit obligation (DBO)

Management''s estimate of the DBO is based on a number of critical underlying
assumptions such as standard rates of inflation, mortality, discount rate and anticipation
of future salary increases. Variation in these assumptions may significantly impact the
DBO amount and the annual defined benefit expenses.

xxii) Recent 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.

Laval 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The
fair value of all equity instruments and Ponds which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the
closing NAV.

Laval 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-thecounter derivatives) is determined using valuation techniques which
maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument
is included in level 2.

Laval 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as their fair values, due to their shcrt-term nature.
For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

21 Capital Management:

The primary objectives of the Company''s capital management policy are to ensure that the Company complies
with externally imposed capital requirements and maintains strong credit ratings and healthy capital ratios in
order to support its business and to maximise shareholders value.

The Company manages its capital structure and makes adjustments to it according to changes in economic
conditions and the risk characteristics of its activities. Capital Management Policy, objectives and processes
are under constant review by the Board.

22 Financial Risk Management Objectives and Policies:

The Company''s principal financial liabilities comprise Security Deposits and Previsions. The Company’s
financial assets include Investments and Cash and Cash equivalents that derive directly from its operations.

The Company is exposed to credit risk, liquidity risk and market risk. The Company’s board of directors has an
overall responsibility for the establishment and oversight of the Company’s risk management framework. The
board of directors has established the risk management committee, which is responsible for developing and
monitoring the Company''s risk management policies. The committee reports to the board of directors on its
activities.

The Company’s risk management policies are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed to reflect changes in market conditions and the Company’s
activities.

The Company''s risk management committee oversees how management monitors compliance with the
Company''s risk management policies and procedures, and reviews the adequacy of the risk management
framework in relation to the risks faced by the Company.

1) Credit risk

Credit risk is the risk of financial loss to the Company If a customer falls to meet its contractual obligations and
arises principally from the Company’s receivables from customers and loans. The carrying amounts of financial
assets represent the maximum credit risk exposure.

Investments

The major investments of the Company Is In the group companies which Includes Investment In an associate.
Cash and cash equivalent and Bank deposits

Credit risk on cash and cash equivalent and bank deposits is limited as the fund are in Current Account and
sometimes in invests in term deposits with banks.

2) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting its obligations associated with its
financial liabilities. The Company’s approach In managing liquidity Is to ensure that It will have sufficient funds
to meet Its liabilities when due.

The Company Is monitoring Its liquidity risk by estimating the future Inflows and outflows during the start of the
year and planned accordingly the funding requirement. The Company manages its liquidity by term loans, inter¬
corporate deposit and investment in mutual funds.

The table below summarises the maturity profile of the Company''s non-derivative financial liabilities based an
contractual undiscounted payments along with Its carrying value as at the balance sheet date.

3) 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 prioes.

Market risk includes interest rate risk and foreign currency risk. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimizing the return.

5. Longevity Risk

The Company is not exposed to risk of the employees living longer as the benefit under the scheme ceases on the
employee separating from the employer for any reason.

6. Risk of Salary Increase

The Company is exposed to higher liability if the future salaries rise more than assumption of salary escalation.

7. Discount Rate

The discount rate has decreased from 7.29% to 7.11% and hence there is an increase in liability leading to actuarial loss
due to change in discount rate.

27 Contingent Liabilities not provided (Ind AS - 37)

a. Estimated amount of contracts remaining to be executed on capital account and not provided for t Nil (March 31,2023: ? Nil).

b. Other Contingent Liabilities not provided for ? Nil (March 31,2023: t Nil).

2B Segment Reporting (Ind AS -108)

The Company operates mainly in the business segment of fund based leasing & financing activity. All other activities revolve
around the main business. Further, all activities are carried out within India. As such, there are no separate reportable
segments as per the provisions of IND AS 108 on ‘Operating Segments¹.

29 Leases (lndAS-116)

Ind AS 116 did not have any material impact on the financial position of the Company for the year ended March 31,2024

30 Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro,
Small and Medium Enterprises Development (‘MSMED’) Act, 2006". Accordingly, no disclosures relating to amounts unpaid as
at the year end together with interest paid /payable are required to be furnished.

31 Disclosure required under Section 186 (4) of the Companies Act, 2013 has been made under Note No. 4. Further, during the
year, the Company has not provided any guarantee (Refer Note No. 27).

32 There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31,2024.

33 While determining diminution, other than temporary, in the value of the long term quoted / unquoted investments, the strategic
objective of such investments and the asset base of the investee companies have been considered. In view thereof, the
decline in the market value of such investments is considered to be of a temporary nature.

34 Expenditure, Earning and remittance in foreign currency ? Nil (March 31,2023: ? Nil).

35 The Company has not traded or invested in crypto currency or virtual currency during the current period.

38 The Company is not required to spent any amount in terms of provisions of section 135 of the Companies, Act 2013 on
Corporate Social Responsibility.

37 The Company has not been declared as wilful defaulter by any bank or financial institution or other lenders.

38 The are no transactions with the Struck off Companies under Section 248 or 560 of the Companies, Act 2013.

39 No proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988.

40 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

41 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

42 The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

a. 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

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

43 The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961.

45 In the opinion of the Board, the Current assets, and Loans and Advances have a value on realisation in the ordinary course of
the business at least equal to the amount at which they are stated in the books of account and adequate provision has been
made of founds all known liabilities.

46 Figures of the previous year have been re-grouped and re-classified wherever necessary to correspond with the figure of the
current period.

As per our report of even date attached For and on behalf of the Board of Directors

PKJ & CO.

Chartered Accountants
Firm Regn. No. 124115W

Sd /- Sd /- Sd I-

(Padam Jain) (G.M. Loyalka) (Shiksha Agrawal)

Partner Director Managing Director

Membership No: 071026 DIN: 00299416 DIN: 02597523

Sd/- Sd/-

Place: Mumbai (Shrub Didwania) (Anil Londhe)

Date: May 24,2024 Company Secretary Chief Financial Officer

UDIN : 24071026BKB2P01862

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Mar 31, 2014

1. Share Capital

1.1 Terms/Rights attached to equity shares:

The Company has only one class of 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 in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2014, the amount of dividend per share recognized as distributions to equity shareholders was Rs. NIL (31st March, 2013 Rs. NIL).

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 proportion to the number of equity shares held by the shareholders.

Pursuant to the Scheme of Amalgamation of Heritage Housing Finance Limited and Mangalam Services Limited (Transferor Companies) with Umang Commercial Company Limited (Transferee Company) sanctioned by the Hon''ble High Court at Calcutta vide its order dated 16.09.13, the Company has received 5,593 Equity Shares of Rs. 10/- each fully paid up of Umang Commercial Company Limited during the year.

2. Gratuity and other post employment benefit plans (AS-15)

No provision for gratuity has been made since none of the employees has completed five years of continuous service.

3. Segment Information (AS - 17)

The Company is engaged in only one business i.e Non Banking Financial Services (granting of loans, making investments, etc.) and as such there are no other reportable segment in the context of Accounting Standard 17 "Segment Reporting". Therefore, Segment Information as required by Accounting Standard - 17 "Segment Reporting" is not applicable.

4. Related Party Disclosures (AS - 18)

Name of related parties and related party relationship:

a) Key Management Personnel:

Lalit Kumar Daga Director

Manish Newar Director

R. D. Bhatter Director

b) Related parties with whom transaction have taken place during the year:

- NIL -

Note : Related Parties are disclosed by the management and relied upon by the auditors.

5. In accordance with Accounting Standard - 20 (AS - 20) Earnings per Share, the computation of earnings per share.

The Company does not have any dilutive potential equity shares. Consequently the basic and diluted earnings per share of the Company remain the same.

6. Due to the uncertainty in the future taxable income, the Company has not recognized Deferred Tax as per Accounting standard-22 "Accounting for Taxes On Income".

7. The Company believes that no impairment of assets arises during the year as per the recommendations of Accounting Standard - 28 Impairment of Assets.

8. Additional Disclosures as required in terms of Paragraph 13 of Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 issued by the Reserve Bank of India.

9. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro, Small and Medium Enterprises Development (''MSMED'') Act, 2006". Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid/payable are required to be furnished.

10. While determining diminution, other than temporary, in the value of the long term quoted/unquoted investments, the strategic objective of such investments and the asset base of the investee companies have been considered. In view thereof, the decline in the market value of such investments is considered to be of a temporary nature.

11. In the opinion of the Board, the Current Assets, Loans & Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

12. a) Figures of the previous year have been re-grouped and re-classified wherever necessary to correspond with the figure of the current period.

b) Figures have been rounded off to nearest rupee.

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Mar 31, 2013

1. Gratuity and other post employment benefit plans (AS-15)

No provision for gratuity has been made since none of the employees has completed five years of conJj|nuous service.

2. Segment Information (AS - 17)

Thepompany is engaged in only one business i.e Non Banking Financial Services (granting of loans, makpg investments, etc.) and as such there are no other reportable segment in the context of Accounting Standard 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India. Therefore, Segnlent Information as required by Accounting Standard - 17 "Segment Reporting" is not applicable.

The Company does not have any dilutive potential equity shares. Consequently the basic and diluted earnings per share of the Company remain the same.

3. Due to the uncertainty in the future taxable income, the Company has not recognized Deferred Tax as per Accounting standard-22 "Accounting for Taxes On Income".

4. The Company believes that no impairment of assets arises during the year as per the recommendations of Accounting Standard - 28 Impairment of Assets, issued by the Institute of Chartered Accountants of India.

5. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro, Small and Medium Enterprises Development (''MSMED'') Act, 2006". Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid /payable are required to be furnished.

6. While determining diminution, other than temporary, in the value of the long term quoted / unquoted investments, the strategic objective of such investments and the asset base of the investee companies have been considered. In view thereof, the decline in the market value of such investments is considered to be of a temporary nature.

7. In the opinion of the Board, the Current Assets, Loans & Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

8. a) Figures of the previous year have been re-grouped and re-classified wherever necessary to correspond with the figure of the current period.

b) Figures have been rounded off to nearest rupee.