J. Provisions and contingencies

Provisions are recognised when the Company has a present obligation as a
result of a past event, 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. The timing of recognition and
quantification of the liability require the application of judgement to existing facts
and circumstances, which can be subject to change. Since the cash outflows can
take place many years in the future, the carrying amounts of provisions and
liabilities are reviewed regularly and adjusted to take account of changing facts
and circumstances.

Contingent liabilities are d isclosed unless the possibility of outflow of resources is
remote. Contingent assets are neither recognised nor disclosed in the Financial
Statements.

K. Tax Expenses

Taxation on profit and loss comprises current tax and deferred tax. Tax is
recognized in the Statement of profit and loss except to the extent that it relates to
items recognized directly in equity or other comprehensive income in which case
tax impact isalso recognized in equity orothercomprehensive income.

Current tax is provided at amounts expected to be paid (or recovered) using the
tax rates and laws that have been enacted at the balance sheet date along with
any adjustment relating to tax payable in previous years.

Deferred income tax is provided in full, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the Financial
Statements. Deferred income tax is provided at amounts expected to be paid (or
recovered) using the tax rates and laws that have been enacted or substantively
enacted at the balance sheet date and are expected to apply when the related
deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax assets and deferred tax liabilities are offset when there is a legally
enforceable right to set off assets against liabilities representing current tax and
where the deferred tax assets and the deferred tax liabilities relate to taxes on
income levied by the same governing taxation laws.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives
future economic benefits in the form of adjustment to future income tax liability, is
considered as anasset if there is convincing evidence that the Company will pay
normal income tax against which the MAT paid will be adjusted.

L. Earnings PerShare

The Company reports basic and diluted earnings per share in accordance with
Ind AS 33 on Earnings per share.Basic earnings per share is computed by
dividing the net profit for the period attributable to the equity shareholders of the
Company by the weighted average number of equity shares outstanding during
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, other than the conversion of potential equity shares 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 for the
period attributable to equity shareholders and the weighted average number of
shares outstanding during the period is adjusted for the effects of all dilutive
potential equity shares.

M. Employee Benefits

i) Shortterm employee benefits:

The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognised
as an expense during the period when the employees render the services.

ii) The Company is exempted from Payment of Gratuity Act, 1972 in view of its
strength of employees being less than threshold limit attracting the
applicability of the said statute and as such no provision has been made for
the said liability. Further Leave encashment is not provided on actuarial
basis in view of employees being less than 10 and same is charged on
actual basis.

The Company has only one class of equity share having par value of Rs 10 per share. Each holder
of equity share is entitled to one vote per share held. All the equity shares rank pari passu in all
respects including but not limited to entitlement for dividend, bonus issue and rights issue. In the
event of liquidation, the equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all liabilities in proportion to their shareholding.

(A) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve
can be utilised only for limited purposes such as issuance of bonus shares, writing off the
preliminary expenses in accordance with the provisions of the Companies Act, 2013."

(B) Reserve fund in terms of section 45-IC(1) of the Reserve Bank of India Act, 1934
(NBFC Reserve Fund)

Reserve fund is not created as there is no profit for the current year ended on 31 st March,
2024 as per the terms of section 45-IC(1) of the Reserve Bank of India Act, 1934 as a
statutory reserve.

(C) Retained Earnings:

Retained earnings are the profits that the Company has earned till date, less any transfers to
general reserve, dividends or other distributions paid to shareholders.

I. Fairvalue hierarchy

The fair values of the financial assets and liabilities are included at the amount that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.

This section explains the judgements and estimates made in determining the fair values of
the financial instruments that are

(a) recognised and measured atfair value and,

(b) measured at amortised cost and for which fair values are disclosed in the financial
statements.

To provide an indication about the reliability of the inputs used in determining fair value, the
company has classified its financial instruments into the three levels prescribed under the
Indian accounting standard. An explanation of each level is as follows:

Level 1:

Level 1 hierarchy includes financial instruments measured using quoted prices. For
example, listed equity instruments that have quoted market price.

Level 2:

The fair value of financial instruments that are not traded in an active market (for example,
traded bonds, over-the- counter 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.

Level 3:

If one or more of the significant inputs is not based on observable market data, the
instrument is included in level 3. This is the case for unlisted equity securities, contingent
consideration and indemnification asset included in level 3.

II. Valuation techniques used to determinefair value

Significant valuation techniques used to value financial instruments include:

• the fair value of forward foreign exchange contracts is determined using forward
exchange rates at the balance sheet date.

• Use of quoted market price or dealer quotes for similar instruments

• Using discounted cash flowanalysis.

The fair values computed above for assets measured at amortised cost are based on
discounted cash flows using a current borrowing rate. They are classified as level 2 fair
values in the fair value hierarchy due to the use of unobservable inputs.

21 Financial Risk Management

The Company has exposure to the following risks arising from financial instruments:

• Credit risk;

• Liquidity risk; and

• Market risk

A. Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in
a financial loss. The company is exposed to credit risk from its operating activities
(primarily for trade receivables and loans) and from its financing activities (deposits
with banks and other financial instruments).

Credit risk management

Credit risk is managed through credit approvals, establishing credit limits and
continuously monitoring the credit worthiness of customers to which the Company
grants credit terms in the normal course of business. The Company establishes an
allowance for doubtful debts and impairment that represents its estimate of incurred
losses in respect of trade and other receivables and investments.

The Company’s maximum exposure to credit risk as at 31 st March, 2024 and 2023 is
the carrying value of each class of financial assets.

I) Tradeand other receivables

Credit risk on trade receivables is limited based on past experience and
management's estimate.

II) Cash and Cash Equivalents

The Company held cash and bank balance with credit worthy banks of Rs.
24,495.05 at March 31,2024 , and (Rs. 24,580/- at March 31, 2023). The

credit risk on cash and cash equivalents is limited as the Company generally
invests in deposits with banks where credit risk is largely perceived to be
extremely insignificant.

B. Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet
its obligations on time or at a reasonable price. For the Company, liquidity risk arises
from obligations on account of financial liabilities- trade payables and borrowings.

Liquidity risk management

The Company’s approach to managing liquidity is to ensure that it will have sufficient
funds to meet its liabilities when due without incurring unacceptable losses. In doing
this, management considers both normal and stressed conditions. A material and
sustained shortfall in our cash flow could undermine the Company’s credit rating
and impair investor confidence.

The Company maintained a cautious funding strategy, with a positive cash balance
throughout the year ended 31st March, 2024 and 31st March, 2023. This was the
result of cash delivery from the business. Cash flow from operating activities
provides the funds to service the financing of financial liabilities on a day-to-day
basis. The Company’s treasury department regularly monitors the rolling forecasts
to ensure it has sufficient cash on-going basis to meet operational needs. Any short
term surplus cash generated by the operating entities, over and above the amount
required for working capital management and other operational requirements, are
retained as cash and cash equivalents (to the extent required).

C. Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates,
interest rates and equity prices will affect the Company’s income or the value of its
holdings of financial instruments. Market risk is attributable to all market risk
sensitive financial instruments. The Company is exposed to market risk primarily
related to interest rate risk and the market value of the investments.

i) Currency Risk

The functional currency of the Company is Indian Rupee. Currency risk is not
material, as the Company does not have any exposure in foreign currency.

ii) Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest
rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed
interest bearing investments because of fluctuations in the interest rates.
Cash flow interest rate risk is the risk that the future cash flows of floating
interest bearing investments will fluctuate because of fluctuations in the
interest rates.

Exposure to interest rate risk

According to the Company interest rate risk exposure is only for floating rate
borrowings. Company does not have any floating rate borrowings on any of
the Balance Sheet date disclosed in this financial statements.

iii) Price Risk

Price risk is the risk that the fair value of a financial instrument will fluctuate
due to changes in market traded price. It arises from financial assets such as
investments in quoted instruments.

a Fair value sensitivity analysis forfixed rate Instruments

The Company does not account for any fixed rate financial assets or
financial liabilities at fair value through Profit or Loss. Therefore, a
change in interest rates at the reporting date would not affect Profit or
Loss.

b Cash flow sensitivity analysis for variable rate Instruments

The company does not have any variable rate instrument in Financial
Assets or Financial Liabilities.

22 Capital Management

The Company’s objectives when managing capital are to

• safeguard their ability to continue as a going concern, so that they can continue to
provide returns for shareholders and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the Company is based on management’s judgement of the
appropriate balance of key elements in order to meet its strategic and day-today
needs. We consider the amount of capital in proportion to risk and manage the capital
structure in light of changes in economic conditions and the risk characteristics of the
underlying assets.

The management monitors the return on capital as well as the level of dividends to
shareholders. The Company will take appropriate steps in order to maintain, or if
necessary adjust, its capital structure.

26 Trade payable outstanding

Tho Company does not have any Trade Payables at the end of Financial year, hence Ageing
for the same is not required to be disclosed for Trade Payables.

27 Micro, Small And Medium Enterprises:

Since there are no Trade Payables at the end of the Financial Year, none of the parties are
identified as being registered under the Micro, Small and Medium enterprises Development
Act,2006 (“MSME Act") on the basis of information available with the Company. Flence the
disclosure as per MSME Act is not applicable to the Company. The same has been relied
upon by the auditors.

28 In the opinion of the management, the current assets, loans and advances have the values
on realization in the ordinary course of business at least equal to the amounts at which they
are stated in the balance sheet except the trade receivables and loans and advances which
falls under management’s policy for bad and doubtful debts as taken in the previous years.

29 The Company has not made any transcation with the struck off companies during the
previous Year.

30 The Company does not have any Virtual Currency / Crypto Currency during the previous
Year.

31 As certified by the Management there is no obligation in respect of gratuity and leave
encashment during the year. The same is relied upon by the Auditor.

32 The Company does not have any pending creation of charge and satisfaction as well as
registration with ROC.

33 No proceedings have been initiated during the year or are pending against the Company as
at March 31, 2024 for holding any Benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

34 The Company has not given any Loan & Advances to Related Party, Promoter, Director and
KMP During the Year

35 There is no "undisclosed income" which has been reported by the Company during the
assessment.

36 No funds (which are material either individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company 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, whether, 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.

37 No funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity (“Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall, whether,
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 As per sec 135 of the Companies Act, 2013,Companies are required to spend 2% of there
Net profits over the three immediately preceding finacial years as Corporate Social
Responsibility . Since the company has notfulfiled the conditions laid down in Sec 135 thus
CSR is not Applicable to the Company.

39 The Company has not been declared wilful defaulter by any Bank or Financial Institution or
Government or any Government Authority.

40 The Company does not have any immovable property, hence no disclosure regarding title
deeds of Immovable Property (other than properties where the Company is the lessee and
the lease agreements are duly executed in favour of the lessee) is required to be disclosed.

41 During the year, the Company has not revalued its Property, Plant and Equipment (including
Right-of-Use Assets).

42 The company does not hold any intangible assets during the year March 31,2024.

Transactions in foreign currencies are translated into the functional currency of the
Company at the exchange rates at the dates of the transactions or an average rate if the
average rate approximates the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into the
functional currency at the exchange rate at the reporting date. Non-monetary assets and
liabilities that are measured at fair value in a foreign currency are translated into the
functional currency at the exchange rate when the fair value was determined. Non-monetary
assets and liabilities that are measured based on historical cost in a foreign currency are
translated at the exchange rate at the date of the transaction. Exchange differences are
recognised in the Statement of profit and loss.

44. Segment Information

The Company is engaged in the business segment of Financing, whose operating results
are regularly reviewed by the entity's chief operating decision maker to make decisions
about resources to be allocated and to assess its performance, and for which discrete
financial information is available. Further other business segments do not exceed the
quantitative thresholds as defined by the Ind AS 108 on “Operating Segment”. Hence, there
are no separate reportable segments, as required by the Ind AS 108 on “Operating
Segment".

Reserve fund is not created as there is no profit for the current year ended on 31st March,
2024 as per the terms of section 45-IC(1) of the Reserve Bank of India Act, 1934 as a
statutory reserve.

46. Contingent Liability to the extended not provided for

Income Tax Demand for A.Y. 2012-13 Rs. 5,40,00,882 /-(P.YRs. 4,23,65,400/-)

47. Prior Year Comparatives

Previous year figures have been regrouped, rearranged or reclassified wherever
necessary to conform to the current year classification. Figures in brackets pertain to
previous year.

The accompanying notes are an integral part of the financial statements.

For B.M. GATTANI & CO. On Behalf of the Board

Chartered Accountants ForAagam Capital Limited

Firm Registration No. 113536W (CIN : L65990MH1991PLC064631)

Balmukund Gattani Anil Kothari Naresh Jain

Proprietor Whole Time Director & CFO Director

Membership No. 047066 DIN: 01991283 DIN: 00291963

UDIN: 24047066BKABIK3810

Date : 28/05/2024 Kavita Jain

Place : Mumbai Company Secretary