Notes to Accounts of Dhruva Capital Services Ltd.

Mar 31, 2024

1.12 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not recognised for future operating losses. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Contingent liabilities are not recognized and are disclosed by way of notes to the financial statements when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or when there is a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the same or a reliable estimate of the amount in this respect cannot be made.

Contingent assets are not recognised but disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.

1.13 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and on hand and short term investments with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purposes of the statement of cash flows, Cash and cash equivalents consist of cash at bank and on hand and short term deposits, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

1.14 Recent Indian Accounting Standards

Ministry of Corporate Affairs (“MCA”) vide notification dated March 31,2023, has made the following amendments to Ind AS which are effective 1st April 2023:

Ind AS 101 - Presentation of Financial Statements

This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors -

This amendment has introduced a definition of ‘accounting estimates’ and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates.

Ind AS 12 - Income Taxes -

This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences

Based on preliminary assessment, the Company does not expect these amendments to have any significant impact on its financial statements.

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Mar 31, 2023

Contingent Liabilities is disclosed in Notes to the account for:-

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the company or

(ii) Present Obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statement since this may result in the recognition of the income that may never be realized.

General:

Except wherever stated, accounting policies are consistent with the generally accepted accounting principles and have been consistently applied.

(B) Notes on Financial Statements

1. The SSI status of the creditors is not known to the Company; hence the information is not given.

2. Salaries includes directors remuneration on account of salary Rs. 720000/- (Previous Year Rs. 720000 /-)

4. Payments to Auditors:
	Auditors Remuneration	FY 2022-2023 (Rs.)	FY 2021-2022 (Rs.)
	Audit Fees	25000/-	20000/-
	Tax Audit Fees	01-	0/-
	Company Law & Taxation Matters	5000/-	5000/-
	GST Matters	9000/-	5000/-
	Total	39000/-	30000/-

3. Trade receivables, Trade payables, Loans & Advances and Unsecured Loans have been taken at their book value subject to confirmation and reconciliation.

5. Loans and Advances are considered good in respect of which company does not hold any security other than the personal guarantee of persons.

6. No provision for retirement benefits has been made, in view of accounting policy No. 11. The impact of the same on Profit & Loss is not determined.

7. Advance to others includes advances to concerns in which directors are interested:NA

8. Additional Regulatory Information/disclosures as required by General Instructions to Schedule III to the Companies Act, 2013 are furnished to the extent applicable to the Company.

9. Previous year figures have been regrouped/rearranged wherever necessary.

32. The company has been granted certificate of Registration as provided in section 45IA of the RBI Act 1934 issued on 1 -9-1999 but the same is not valid for accepting deposits.

33. No employee is in employment of the Company throughout the financial year for a remuneration which in aggregate exceeded Rs. 6000000/- per annum or employed for remuneration which in aggregate exceeded Rs. 500000/- per month, if employed for part of the year.

34. The Company''s operations predominantely comprise only of one segment i.e. financial services which include hire purchase, lease, interest on ICD, loans and advances and hence the figures shown are related to only that segment

Note: Name of Related party and nature of the related party relationship where control exists have been disclosed Irrespective of whether or not there have been transactions between the related parties. In other cases, disclosure has been made only when there have been transactions with those parties.

Related parties as defined under para 9 of Ind AS 24 ’ Related Party Disclosures'' have heen defined based on representations made by key managerial personnel and formation available with the Company.

37. Disclosure as required undercircular No. Ref. DBS. FID. No. C-2/01-02-00/2003-04.dt. 10-07-2003 has not been made.

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1. As defined in Paragraph 2 (1) (xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also 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 in column (4) above

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Mar 31, 2015

1. CONTINGENT LIABILITY :

The Company has received excess refund of income tax amounting to Rs. 194668/- on A/c of excess credit of TDS for A.Y. 2006-07, which has been shown as current liabilities.

2. PROVISION FOR NPA :

In accordance with the guidelines issued by the RBI, the provision of NPA for current year is Rs. NIL.

3. Margin money on account of Leased & Hire Purchase assets represent difference between the purchase value of leased / hire purchase assets and money advanced as loans.

4. The company has been granted certificate of Registration as provided in section 45 IA of the RBI Act 1934 issued on 1-9-1999 but the same is not valid for accepting deposits.

5. No employee is in employment of the Company throughout the financial year for a remuneration which in aggregate exceeded Rs. 60,00,000/- per annum or employed for remuneration which in aggregate exceeded Rs. 5,00,000/- per month, if employed for part of the year.

6. The Company's operations predominantely comprise only of one segment i.e. financial services which include hire purchase, lease, interest on ICD, loans and advances and hence the figures shown are related to only that segment.

(i) DILUTED EARNING PER SHARE :

Diluted earning per share is same as Basic Earning per share as the Company does not have any potential equity shares as defined under AS-20 "Earning Per share" issued by ICAI.

7. Related parties disclosures :

1. Relationship :

(a) Key management personal :

Shri L.S. Karnawat - Chairman

Shri Kailash Karnawat - Managing Director

(b) Other related parties where control exists :

Pathik Hotel & Motel Ltd.

Karnawat Hire Purchase Pvt. Ltd.

Circle View Estate Pvt. Ltd.

Nakul Builders & Developers Pvt. Ltd.

Vardhman Fincon Pvt. Ltd.

Karnawat Brothers

Sampat Automobiles

Kailash Karnawat & Family (HUF)

Laxman Singh Karnawat & Sons (HUF)

Pushpa Devi Karnawat

(c) Relatives of key management personnel and their enterprises where transaction have taken place :

M/s Kailash Karnawat & Family (HUF)

Mrs. Pushpa Devi Karnawat

M/s Sampat Automobiles

Note : Related party relationship is as identified by the Company and relied upon by the Auditors.

2. Transaction carried out with related parties in 1 above in ordinary course of business of the Company.

8. Disclosure as required under Circular No. Ref. DBS. FID. No. C-2 / 01-02-00 / 2003- 04, dt. 10-07-2003 has not been made.

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Mar 31, 2014

1. CONTINGENT LIABILITY:

The Company has received excess refund of income tax amounting to Rs. 194668/- on A/c of excess credit of TDS for A.Y. 2006-07, which has been shown as current liabilities.

2. PROVISION FOR NPA:

In accordance with the guidelines issued by the RBI, the provision of NPA for current year is Rs. NIL.

3. Margin money on account of Leased & Hire Purchase assets represent difference between the purchase value of leased/hire purchase assets and money advanced as loans.

4. The company has been granted certificate of Registration as provided in section 45 IA of the RBI Act 1934 issued on 1-9-1999 but the same is not valid for accepting deposits.

5. No employee is in employment of the Company throughout the financial year for a remuneration which in aggregate exceeded Rs. 24,00,000/- per annum or employed for remuneration which in aggregate exceeded Rs. 2,00,000/- per month, if employed for part of the year.

6. The Company''s operations predominantly comprise only of one segment i.e. financial services which include hire purchase, lease, interest on ICD, loans and advances and hence the figures shown are related to only that segment.

7. Earning per share:

DILUTED EARNING PER SHARE:

Diluted earning per share is same as Basic Earning per share as the Company does not have any potential equity shares as defined underAS-20 "Earning Per share" issued by ICAI.

8. Related parties disclosures:

1. Relationship :

(a) Key management personal:

Shri L.S. Karnawat - Chairman

Shri Kailash Karnawat - Managing Director

(b) Other related parties where control exists:

Pathik Hotel & Motel Ltd.

Karnawat Hire Purchase Pvt. Ltd.

Circle View Estate Pvt. Ltd.

Nakul Builders & Developers Pvt. Ltd.

Vardhman Fincon Pvt. Ltd.

Karnawat Brothers

Sampat Automobiles

Kailash Karnawat & Family (HUF)

Laxman Singh Karnawat & Sons (HUF)

Pushpa Devi Karnawat

(c) Relatives of key management personnel and their enterprises where transaction have taken place : M/s Nakul Builders & Developers Pvt. Ltd.

M/s Circle View Estate Pvt. Ltd.

M/s Kailash Karnawat & Family (HUF)

Mrs. Pushpa Devi Karnawat

M/s Sampat Automobiles

Note : Related party relationship is as identified by the Company and relied upon by the Auditors.

2. Transaction carried out with related parties in 1 above in ordinary course of business of the Company.

10. Disclosure as required under Circular No. Ref. DBS. FID. No. C-2 / 01-02-00 / 2003- 04, dt. 10-07-2003 has not been made.

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Mar 31, 2013

1. CONTINGENT LIABILITY :

The Company has received excess refund of income tax amounting to Rs. 194668/- on A/c of excess credit of TDS for A.Y. 2006-07, which has been shown as current liabilities.

2. PROVISION FOR NPA :

In accordance with the guidelines issued by the RBI, the provision of NPA for current year is Rs. NIL.

3. Margin money on account of Leased & Hire Purchase assets represent difference between the purchase value of leased / hire purchase assets and money advanced as loans.

4. The company has been granted certificate of Registration as provided in section 45 IA of the RBI Act 1934 issued on 1-9-1999 but the same is not valid for accepting deposits.

5. No employee is in employment of the Company throughout the financial year for a remuneration which in aggregate exceeded Rs. 24,00,000/- per annum or employed for remuneration which in aggregate exceeded Rs. 2,00,000/- per month, if employed for part of the year.

6. The Company''s operations predominantly comprise only of one segment i.e. financial services which include hire purchase, lease, interest on ICD, loans and advances and hence the figures

(ii) DILUTED EARNING PER SHARE :

Diluted earnings per share is same as Basic Earnings per share as the Company does not have any potential equity shares as defined under AS-20 "Earning Per share" issued by ICAI.

7. Related parties disclosures :

1. Relationship :

(a) Key management personal :

Shri L.S. Karnawat - Chairman

Shri Kailash Karnawat - Managing Director

(b) Other related parties where control exists :

Pathik Hotel & Motel Ltd.

Karnawat Hire Purchase Pvt. Ltd.

Circle View Estate Pvt. Ltd.

Nakul Builders & Developers Pvt. Ltd.

Vardhman Fincon Pvt. Ltd.

Karnawat Brothers

Sampat Automobiles

Kailash Karnawat & Family (HUF)

Laxman Singh Karnawat & Sons (HUF)

Pushpa Devi Karnawat

(c) Relatives of key management personnel and their enterprises where transaction have taken place : M/s Nakul Builders & Developers Pvt. Ltd.

M/s Circle View Estate Pvt. Ltd.

M/s Kailash Karnawat & Family (HUF)

Mrs. Pushpa Devi Karnawat

Note : Related party relationship is as identified by the Company and relied upon by the Auditors.

2. Transaction carried out with related parties in 1 above in ordinary course of business of the Company.

NOTES:

1. As defined in Paragraph 2 (1) (xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also 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 in column (4) above.

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Mar 31, 2012

1. CONTINGENT LIABILITY :

The Company has received excess refund of income tax amounting to Rs. 194668/- on A/c of excess credit of TDS for A.Y. 2006-07, which has been shown as current liabilities.

2. PROVISION FOR NPA :

In accordance with the guidelines issued by the RBI, the provision of NPA for current year is Rs. NIL.

3. Margin money on account of Leased & Hire Purchase assets represent difference between the purchase value of leased / hire purchase assets and money advanced as loans.

4. The company has been granted certificate of Registration as provided in section 45 IA of the RBI Act 1934 issued on 1-9-1999 but the same is not valid for accepting deposits.

5. No employee is in employment of the Company throughout the financial year for a remuneration which in aggregate exceeded Rs. 24,00,000/- per annum or employed for remuneration which in aggregate exceeded Rs. 2,00,000/- per month, if employed for part of the year.

6. The Company's operations predominantely comprise only of one segment i.e. financial services which include hire purchase, lease, interest on ICD, loans and advances and hence the figures shown are related to only that segment.

(i) DILUTED EARNING PER SHARE :

Diluted earning per share is same as Basic Earning per share as the Company does not have any potential equity shares as defined under AS-20 "Earning Per share" issued by ICAI.

7. Related parties disclosures :

1. Relationship :

(a) Key management personal :

Shri L.S. Karnawat - Chairman

Shri Kailash Karnawat - Managing Director

(b) Other related parties where control exists :

Pathik Hotel & Motel Ltd.

Karnawat Hire Purchase Pvt. Ltd.

Circle View Estate Pvt. Ltd.

Nakul Builders & Developers Pvt. Ltd.

Vardhman Fincon Pvt. Ltd.

Karnawat Brothers

Sampat Automobiles

Kailash Karnawat & Family (HUF)

Laxman Singh Karnawat & Sons (HUF)

Pushpa Devi Karnawat

(c) Relatives of key management personnel and their enterprises where transaction have taken place : M/s Nakul Builders & Developers Pvt. Ltd.

M/s Circle View Estate Pvt. Ltd.

M/s Kailash Karnawat & Family (HUF)

Mrs. Pushpa Devi Karnawat

31. Disclosure as required under Circular No. Ref. DBS. FID. No. C-2 / 01-02-00 / 2003- 04, dt. 10-07-2003 has not been made.

NOTES :

1. As defined in Paragraph 2 (1) (xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also 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 in column (4) above.

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Mar 31, 2010

1. CONTINGENT LIABILITY :

a) As per Order dt. 27/3/2006 under sec 143 (1 )/154 of the Income Tax Act, the loss has been revised as Rs. 173440/- against the returned loss of Rs. 668410/- and the Company has appealed against the order.

b) The Company has received excess refund of income tax amounting to Rs. 194668/- on A/c of excess credit of TDS for A.Y. 2006-07, which has been shown as current liabilities.

2. Company has sold its investment of 71000 shares in Pathik Hotel & Motel Ltd., Udaipur to M/s Pathik Hotel & Motel Ltd. itself under its buyback offer @ Rs.160/- per share (par value Rs. 100/-) during March 2010. Company has also sold its investment of 150000 shares in Vardhman Fincon Pvt. Ltd. @ Rs. 10/- to M/s Pathik Hotel & Motel Ltd., Udaipur (par value Rs. 10/-) during March, 2010.

3. PROVISION FOR NPA :

In accordance with the guidelines issued by the RBI, the provision of NPA for current year is Rs. NIL.

4. Margin money on account of Leased & Hire Purchase assets represent difference between the purchase value of leased / hire purchase assets and money advanced as loans.

5. The company has been granted certificate of Registration as provided in section 45 IA of the RBI Act 1934 issued on 1 -9-1999 but the same is not valid for accepting deposits.

6. No employee is in employment of the Company throughout the financial year for a remuneration which in aggregate exceeded Rs. 24,00,000/- per annum or employed for remuneration which in aggregate exceeded Rs. 2,00,000/- per month, if employed for part of the year.

7. The Companys operations predominantely comprise only of one segment i.e. financial services which include hire purchase, lease, interest on ICD, loans and advances and hence the figures shown are related to only that segment.

8. Related parties disclosures : 1. Relationship:

(a) Key management personal

Shri L.S. Karnawat - Chairman

Shri Kailash Karnawat - Managing Director

(b) Other related parties where control exists : Pathik Hotel & Motel Ltd.

Karnawat Hire Purchase Pvt. Ltd.

Circle View Estate Pvt. Ltd.

Nakul Builders & Developers Pvt. Ltd.

Vardhman Fincon Pvt. Ltd.

Karnawat Brothers

Sampat Automobiles

Kailash Karnawat & Family (HUF)

Laxman Singh Karnawat & Sons (HUF)

(c) Relatives of key management personnel and their enterprises where transaction have taken place :

M/s Nakul Builders & Developers Pvt.Ltd.

M/s Sampat Automobiles

M/s Kailash Karnawat & Family (HUF)

M/s Laxman Singh Karnawat & Sons (HUF)

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

9. Disclosure as required under Circular No. Ref. DBS. FID. No. C-2 / 01-02-QO / 2003- 04, dt. 10-07-2003 has not been made.