Notes to Accounts of Asia Capital Ltd.

Mar 31, 2024

2.16 Provisions & Contingencies

Contingent Liabilities:

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 tha 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 any contingent liability but discloses its existence in the financial statements.

Provisions:

(a) As per the prudential norms on Income Recognition, Asset Classification with reference to Master Direction
DNBR.PD.007/03.10.119/2016 -17 dated September 01, 2016, the Board has transferred 0.25% of standard assets (Total of Loans &
Advances given) in “Contingent provision against Standard Assets”.

(b) As per the requirement of sec. 45-IC of the Reserve Bank of India Act, 1934, the Board of Directors has created a Special
Reserve Account to transfer 20% of the net profit of the year.

Operating Cycle

².¹⁷ All assets and liabilities have been classified as current or non current as per company''s normal operating cycle another criteria as
set out in sechedule III to the nature of the services and there realization in cash and cash equivalents, the company has ascertained
its operating cycle as twelve months for the purpose of current and non current classification of assets and liabilities.

Note 1 - The Company’s business model is to hold contractual cash flows, being the payment of Principal
and Interest till maturity and accordingly the loans are measured at amortised cost.

Note 2 - A financial asset has been measured at amortised cost since -

a) the financial asset is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows and

b) the contractual terms of the financial asset give rise on specified date to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

Note 21: Defined benefit plans

The Company does not recognise its liability for ''Gratuity'' and ''Leave encashment'' on the basis as prescribed in
IND AS 19 Employee Benefits. The company provides for the actual liability (if any) or recognises as expense
when such Gratuity or Leave encashment is paid to the employee.

Note 22: Segment information (IND AS 108)

Operating Segment:

The Company operates mainly in the business segment of fund based 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 Segments’.

Note 26:

The Company is a Non Banking Finance Company and do not accept any public deposits. The management of
the Company has confirmed the following:

1) The Board of Directors has passed a resolution for the non acceptance of any public deposit.

2) The Company has complied with the prudential norms relating to income recognition, accounting
standards, assets, classification, and provisioning for bad debts as applicable.

3) The Board has transferred an amount of Rs. 391.222/- (PY Rs. 363.571/-) for current year towards “Special
Reserve Account “ and the same has been shown under the head Special Reserve Account under Note No. 13
of Reserve and Surplus, as per the requirement under section 45-IC of the Reserve Bank of India Act, 1934.
i.e. 20% of Profit after Tax.

4) As per the prudential norms on Income Recognition, Asset Classification with reference to Master
Direction DNBR.PD.007/03.10.n9/2016-17 dated September 01, 2016, the Board has provided 0.25
percentage ( last year 0.25 percentage) of standard assets towards “Contingent provision against Standard
Assets”. Due to this account a provision of Rs. 6.938 has been made during the financial year (Previous Year
write back of Rs. 12.415/-).

Note 30

30.1: Risk Disclosures

Company’s risk is managed through an integrated risk management framework, including ongoing
identification, measurement and monitoring, subject to risk limits and other controls. This process of risk
management is critical to the Company’s continuing profitability and each individual within the Company
is accountable for the risk exposures relating to his or her responsibilities. The Company is exposed to
credit risk, liquidity risk and interest rate risk.

It is the Company’s policy to ensure that a robust risk awareness is embedded in its organisational risk
culture.

30.2. Credit risk

Credit risk is the risk that the Company will incur a loss because its customers or counterparties fail to
discharge their contractual obligations. The Company manages and controls credit risk by setting limits on
the amount ofrisk it is willing to accept for individual

30.2.1 Impairment assessment

All advances have been classified as Stage 1 since they have low credit risk and there are no overdue.

30.2.1.1 Exposure at Default

EAD is taken as the gross exposure under a facility upon default of an obligor. The amortized principal
and the interest accrued isconsidered as EAD for the purpose of ECL computation

30.2.1.2 PD estimation process

In view of low credit risk, the Company has assessed the probability of default at 0.25% of the exposure
of EAD which is also in line with the minimum provisioning requirement as per RBI guidelines. The
Company does not expect a higher loss.

The probability of default is an estimate of the likelihood of default over a given time horizon. A default
may only happen at a certain time over the assessed period, if the facility has not been previously
derecognised and is still in the portfolio. Probability of Default is computed based on number of accounts
that default during a year as a percentage ofaverage number ofaccounts outstanding.

a) The Company has applied 12 months PD to stage 1 advances

b) The Lifetime PD is computed using basic exponentiation technique after considering the residual maturity
ofthe respective loan.

c) PD of 100% is considered for Stage 3 assets.

30.2.1.3 Loss given default

In view of the above, the LGD is estimated as Nil.

The loss given default is an estimate of the loss arising in the case where a default occurs at a given time. It
is based on the difference between the contractual cash flows due and those that would be expected to
receive, including from realisation of any prime/collateral security. LGD is computed based on discounted
expected recoveries at an account level based on collateral valuation after applying

30.3. Liquidity risk and funding management

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations
associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity
risk arises because of the possibility that the Company might be unable to meet its payment obligations
when they fall due as a result of mismatches in the timing of the cash flows.

30.4. Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the
fair values offinancial instruments.

Note 38. There arenoRestructuredAccounts asperAppendix4ofMasterDirection - Non-Banking Financial Company -
Systemically Important Non-Deposit taking Company andDeposittaking Company (Reseree Bank)Directions, 2016.

Note 39. The company has not reported any frauds during the current year (March 31, 2024: Rs. Nil) based on management
reporting to risk committee and to the RBI through prescribed returns.

Note 40:

In the opinion of the Board the value of current assets, loans and advances, if realized in the ordinary courses of business,
shall not be less than the amount at which the same are stated in the balance sheet. Confirmation of balances have not been
received from debtors, creditors, loans and advances given through request was sent to major parties and therefore balances
are as per books of accounts only.

Note41: OtherStatutoryInformation

i) The Company do not have any transactions with companies struck off.

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

iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries), with theunderstanding thattheIntermediary shall:

company (Ultimate Beneficiaries) or

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

v) 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 othernise) that the Company shall:

company (Ultimate Beneficiaries) or

b)provide any guarantee, security orthe like onbehalfoftheUltimateBeneficiaries,

vi) 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 theyearinthetax assessments under the Income Tax Act, 1961 (such as, search or survey or any

Note 42: Grouping and classification

Figures of the previous year have been rearranged wherever necessary to them comparable with the current year''s
As Per Our Report OfEven Date

For Shankarlal Jain & Associates LLP For And On Behalf OfThe Board ofDirectors

CharteredAccountants OfAsia capitalLunited

Firm Reg. no. 109901W/W100082

Sd/- Sd/- Sd/-

Satish Jain Santosh Suresh Choudhary Manoj Kumar Jain

Partner ManagingDirector Director

Mem. No. 048874 DIN: 05245122 DIN: 00097821

Sd/-

Siddharth Bhikchand Bhansali
Chief Financial Officer

Date: 27.05.2024 Date: 27.05.2024

Place: Mumbai Place: Mumbai

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Mar 31, 2014

1. In the opinion of the management the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of business. The provisions for all the known liabilities are adequate and not in excess of the amount considered reasonably necessary.

2. Previous year figures have been re-grouped or re-arranged wherever necessary.

3. Note 1 to 22 are annexed to and from an integral part of the Balance Sheet as at 31st March 2014 and Statement of Profit & Loss for the year ended as on that date.

Notes:

(1) Provisioning norms shall be applicable as prescribed in the Non-Banking Financial (Non-Deposit Accepting or holding) Companies Prudential Norms (Reserve Bank ) Direction, 2007.

(2) All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of Unquoted investments should be disclosed irrespective of whether they are classified as long term or current (4) above.

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Mar 31, 2013

1.1 During the financial year Company has not made any provision for

Listing fee and other charges i.e. penalties for non compliance of listing provisions and also received show cause notice during the F.Y. 2009-10 for compulsory delisting of Company from Delhi Stock Exchange Limited due to non compliance of Listing requirements.

2. In the opinion of the management the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of business. The provisions for all the known liabilities are adequate and not in excess of the amount considered reasonably necessary.

3. Previous year figures have been re-grouped or re-arranged wherever necessary.

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Mar 31, 2012

1. Related party disclosures as required by Accounting Standard-18 issued by the Institute of Chartered Accountants of India.

2. In the opinion of the management the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of business. The provisions for all the known liabilities are adequate and not in excess of the amount considered reasonably necessary.

3. Previous year figures have been re-grouped or re-arranged wherever necessary.

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Mar 31, 2011

As at 31.03.2011 As at 31.03.2010 1. Contingent Liabilities not provided for: 17,700 Nil

As at 31.03.2011 As at 31.03.2010

2. Claims against Company not acknowledged as debts Nil Nil

3. In the opinion of the management the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business. The provisions for all the known liabilities are adequate and not in excess of the amount considered reasonably necessary.

4. During the year company has received show cause notice for compulsory delisting of company from Delhi Stock Exchange Limited due to non compliance of listing requirements.

5. INVESTMENTS

The Company held Investments in Equity Shares Rs. Nil Lac as on 31.03.2011.

6. As the Company did not carry any manufacturing activity during the year under review the other information as required under Schedule-VI of the Companies Act, 1956 are not applicable.

7. Previous year figures have been, re-grouped or re-arranged wherever necessary.

8. Related party disclosures as required by Accounting Standard-18 issued by the Institute of Chartered Accountants of India.

a) Parties where control exists

Mr. Deepak Kumar Jain along with his relatives.

b) Enterprises over which major shareholder or key management personnel along with his relatives exercises significant influence

Akashdeep Metal Industries Limited

Deepak & Company D.M. International Pvt. Ltd.

Transcend Electronics Pvt. Ltd.

Competent Electronics Pvt. Ltd.

Rose Electronics Pvt. Ltd.

Petal Electronics Pvt. Ltd.

Novelty Electricals Pvt. Ltd.

Sandal Auto Pvt. Ltd.

Posh Electronics Pvt. Ltd.

Shree Ganpati Educational Society (Regd.)

c) Key Management Personnel

Mr. Deepak Kumar Jain, Managing Director

d) Relatives of key Managerial personnel Details of relatives of Mr. Deepak Kumar Jain

Mr. Surendra Kumar Jain Father

Mrs. Kavita Jain Wife

Mrs. Alka Jain Sister

Mrs. Sangeeta Agarwal Sister

Mr. Manoj Kumar Jain Brother

Mr. Ankit Jain Son

Mr. Atin Jain Son

9. Since the Company''s operations primarily comprise of investment and financing, as such there is no other reportable segment as specified by Accounting Standard-17 issued by Institute of Chartered Accountants of India.

10. The Company has not received any intimation from supplier regarding their status under Micro/Small & Medium Enterprises Development Act, 2006 and hence disclosure if any relating amount unpaid as at year end together with interest paid/payable as required under the Act have not been given.

11. Schedule "A" to "H" form as integral part of Balance Sheet, Profit and Loss Account and Cash Flow Statement.