Notes to Accounts of Sulabh Engineers & Services Ltd.

Mar 31, 2025

1.3.10 Provisions and contingent liabilities

The Company creates a provision when there is present obligation as a result of a past event that
probably requires an outflow of resources and a reliable estimate can be made of the amount of the
obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. The Company also discloses present obligations for
which a reliable estimate cannot be made. When there is a possible obligation or a present obligation in
respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.3.11 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 beMeen 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.

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 detailed information on the fair value hierarchy,
refer note no. 4.10.

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.

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Mar 31, 2024

(b) Terms/ rights/ resetrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 1/- per share. Each holder of equity shares is entitled to one vote per share. The dividend recommended by the Board of Directors and approved by the shareholders in the Annual General Meeting is paid in Indian Rupees. 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 in proportion to the number of equity shares held by the shareholders.

Nature and purpose of other equity

(i) Securities Premium

Securities premium is used to record the premium on issue of shares. It can be utilised only for limited purposes in accordance with the provisions of the Companies Act, 2013.

(ii) Retained earnings

Retained earnings represents the surplus in profit and loss account and appropriations.

{iii) Reserve fund in terms of section 45-IC of the RBI Act, 1934

Reserve fund is created as per the terms of section 45-1 C(l) of the Reserve Bank of India Act, 1934 as a statutory reserve.

(iv) General reserve

Amounts set aside from retained profits as a reserve to be utilised for permissible genera I purpose as per Law.

4.1 Contingent liabilities and commitments	(Rs.In la	khs)
	As at 31 March
Particulars	2024	2023
(a) Contingent liabilities not provided;	Nil	Nil
(b) Capital and other commitments	Nil	Nil

4.4 Event after reporting date

There have been no events after the reporting date that require adjustments/ disclosure in these financial statements

4.5 Corporate Social Responsibility

Expenditure required to be incurred under Section 135 of the Companies Act, 2013 on Corporate Social Responsibility (CSR) activities are Rs Nil (Previous

4.5 Segment Reporting

The Company operates in a single reportable segment i.e financing, since the nature of the loans are exposed to similar resik and return profiles hence theyare collectiielyopearting undera single segment.The Company operates in a single geographical segment i.e. domestic.

4.7 Financial Risk Management Objectives and Policies

The Company''s Board of Directors has overall responsibility forthe establishmentand oversight of the Company''s Risk Managementframework.

The Company actively manages its capital base to cover risks inherent to its business and meet the capital adequacy requirement of RBI. The adequacy of the Company''s capital is monitored using, among other measures, the regulations issued by RBI.

The Company has exposure to Credit, liquidity and Market risks arising from financial instruments:

a. Market Risk

Market risk is the risk that the fair val ue of future cash flow of financial instruments will fluctuate due to changes in the market variables such as interest rates, foreign exchange rates and equity prices. The Com pa ny do not have any exposure to foreign excha nge rate and equity price risk.

b. Credit Risk

Credit risk is the risk of financial loss arising out of a customer or counterparty failing to meet their repayment obligations to the Company. It has a diversified lending model and focuses on six broad categories vie: |i) consumer lending, (ii| SME lending, (iii) rural lending, (iv| mortgages, (v| loa n against securities, and (vi| commercial lending. The COm pa ny assesses the credit quality of all financial instruments that are subject to credit risk.

Classification of financial assets under various stages

The Company classifies its financial assets in three stages having the following characteristics:

Stage 1: unimpaired and without significant increase in credit risk since initial recognition on which a 12 monthsllowanee for Ed is recognised;

Stage 2: a significant increase in credit risk since initial recognition on which a lifetime Ed is recognised;

Stage 3 : objective evidence of impairment, and a re therefore considered to be in default or otherwise credit impairedHn which a lifetime ECL is recognised.

Unless identified a tan earlier stage, all financial assets are deemed to have suffered a significant increase in credit risk when they a re 30 days past due (DPD| and are accordingly transferred from stage 1 to stage 2. For stage lan ECL a I Iowa nee is calculated based on a 12 month Point in Time (PIT| probability weighted probabilityof default (PD). For stage 2 and 3 assets a life time Ed is calculated based on a lifetime PD.

The Company has calculated Ed using three main components: a probability of default (PD|,a loss given default (LGD| and the exposure at default (EAD) along with an adjustment considering forward macro economic conditions.

Financial instruments other than loans were subjected to simplified Ed approach under Ind AS 109 Financial Instruments'' and accordingly were not subject to sensitivity of future economic conditions.

The table be low summarises the approach adopted by the Company for various components of ECL viz. PD, EAD and IGD across product lines using emperical data where relevant:

c. Liquidity and interest rate Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meelits liabilities when theyare due, underboth normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument fluctuate because of change in market interest rates.

4.10 Fair Value Vleasurerrent a. Valuation methodologies adopted

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

Fair values of investments held for trading under FVTPL have beer determined under level 1 (refer note no, 48) using quoted market prices of the underlying instruments;

Fair values of strategic investments in equity instruments designated under FVOCI have been measured under level 3 {refer note no. 48) at fair value based on a discounted cash flow model.

Fair values of other investments under FVOCI have been determined under level 1 using quoted market prices of the underlying instruments;

Fairvalue of loans held under a business model that isachieved by both collecting contractual cashflows and partially selling the loans through partial assignment to willing buyers and which contain contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest ane measured at FVOCI.The fairvalue ofthese loans have been determined under level 3.

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 equityinstruments designated at FVOCI, trade payables, short term debts, borrowings, bank overdrafts and othercurrent liabilities area reasonable approximation of theirfair value and hence theirca trying value are deemed to be fairvalue.

b.^:air values hierarchy

Fairvalje measure me nts are analysed bylevel in the fairvalue hierarchyas follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations techniques with all material inputs observable forthe asset or liability, either directly (that is, as prices] or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable marketdata (thatis, unobservable inputs). Managementapplies judgementin categorisingfinancial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significantadjjstment, that measurement is a Level 3 measurement. The signifiance of a valuation input is assessed againstthe fairvalue measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements, To provide an indication about the leliabilityofthe inputs used in determining fairvalue, the Companyhas classified its financial instruments into the three levels prescribed underthe accounting standard.

Level l:The fairvalue of financial instruments traded in active markets (such as publiclytraded derivatives, and eqjitysecurities) is based on quoted market prices at the end of the reporting period, The quoted market price used for financial assets held by the group is the current bid price, These instruments a re included in level 1,

Level 2: The fairvalue of financial instruments that are not traded in an active marketer example, over-the-counter derivatives] is determined using valuation techniques which maximise the use of observable marketdata and rely as little as possible on entity-specific estimates. If all significant inputs required to fairvalue 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,

There are no transfers between levels 1, level 2 and level 3 during the year.

b. Analytical Ratios

Other than in the normal and ordinary course of business there are no funds that 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 persons or entities, including foreign entities {‘Intermediaries"), with the understanding, whether recorded in writing orotherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company; or provide any guarantee, securityorthe like on behalf of the Ultimate Beneficiaries.

There have been no funds that have been received bythe Company from any persons orentities, including foreign entities {"Funding Parties"), with the

understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons orentities identified in any manner whatsoever ("Ultimate Beneficiaries'') by oron behalf of the Funding Party or provide any guarantee, security orthe like on behalf ofthe Ultimate Beneficiaries.

4.14 Previous yea^s figures have been regrouped/ rearranged wherever necessary to make them comparableto those with the current year,

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Mar 31, 2016

Note 1 Related party transactions

Description of relationship Names of related parties

Key Management Personnel (KMP) Manoj Kumar Agarwal - WTD & Chairman

Seema Mittal - Director, CFO Rajiv Agarwal - Director Rakesh Chand Agarwal - Director Sudeepti Srivastava- Additional Director Subsidiary Company Rodic Coffee Estates P Ltd

Note 2 Previous year''s figures

Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2015

A Corporate Information

The Company is Non-banking Financial Company (NBFC) registered with the Reserve Bank of India ("RBI") under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in lending and related activities. The Company received the Certificate of Registration from the RBI, enabling the Company to carry on business as a Non-banking Financial Company.

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Mar 31, 2014

A Corporate Information

The Company is Non-banking Financial Company (NBFC) registered with the Reserve Bank of India ("RBI") under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in lending and related activities. The Company received the Certificate of Registration from the RBI, enabling the Company to carry on business as a Non-banking Financial Company.

Particulars For the year For the year ended March ended March 31, 2014 31, 2013

Note 1 Contingent liabilities Nil Nil

Note 2 Dues to Micro, Small and Medium EnterprisesDues to Micro and Small Enterprises have been determined to the extent Nil Nil such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

Note 3 Deferred Tax Assets (Net) Deferred Tax Liability on account ofdifference in Depreciation as per tax books and financial books 48,541 33,696

Note 4 Expenditure in foreign currency Nil Nil

Note 5 Earnings in foreign exchange Nil Nil

Note 6 Employee benefits Nil Nil

Note 7 Previous year''s figures Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

A Corporate information

The Company is Non-banking Financial Company (NBFC) registered with the Reserve Bank of lndfa("RBI") under section j 45-lAaf the Reserve Bank of India Act, 1934 and primarily engaged in lending and related activities. The Company received ) the Certificate of Registration from the RBi, enabling the Company to carry on business as a Non-banking Financial Company.

Note 1 Contingent liabilities Nil Nil

Note 2 Dues to Micro, Small and Medium Enterprises

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

Note 3 Previous year''s figures

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification /disclosure.

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Mar 31, 2012

1. Since the amount of Deferred Tax provision was not material, therefore no provision for deferred tax was made as on 31.03.2012.

2. List of Related Parties are as under:

a. Sulabh Agro P. Ltd

b. Sulabh Engg. Cons. P.Ltd

Transactions with Related Parties are as under:

a. Sulabh Agro P.Ltd. - Rs. 25,000/-

b. Sulabh Engg. Cons. P.Ltd.- Rs. 25,000/-

c. Manoj Kumar Agarwal- Director Remuneration - Rs.180000/-

d. Deepa Mittal-Director Remuneration- Rs. 180000/-

3. During the year under review, the Company has issued 70,00,000 Equity shares on preferential basis of Rs.l0/- each on premium Rs.10/- each, out of which 17,00,000 Equity shares were issued to Promoters and 53,00,000 Equity shares to Non-Promoters.

4. Loans & Advances includes Rs.250,40,000/- being advance paid to Sanjeevani Fertilizers & Chemicals Pvt. Ltd, as advance for use of land owned by Sanjeevani Fertilizers & Chemicals Pvt. Ltd.

5. Advances also includes Rs.l3,00,000/- being advance paid to M/s.MGIL Emrald Garden Invt. Pvt. Ltd., as advance for purchase of property.

6. Previous year's figures has been rearranged and regrouped, wherever required to make comparable with current year's figures.

7. Balances of sundry debtors, sundry creditors, loans and advances (debit & credit) shown in the Balance Sheet, are subject to confirmation and verification from respective parties.

8. Auditors' Remuneration comprises of:

Statutory Audit fee- Rs.25,000/-

Certification Fee- Rs.51,000/-

9. Directors Remuneration includes payment made to Mr.Manoj Kumar Agarwal Rs. 180000/- & Mrs. Deepa Mittal Rs. 180000/- Director of the Company.

10. EPS and DEPS for the year 2011-12 is Rs. 0.46 calculated as ( Profit after tax for the year is Rs. 14,79,993/- divided by weighted No. of shares 30,47,500 (70,00,000*9/366))

11. As per Management's explanation amount due to SSI, MICRO, Small Enterprises is NIL.

12. Cash Balances at the year end is not verified by the Auditors, the same is relied on the certification by the Management.

13. Expenditure in Foreign Currency-NIL

14. Earning in Foreign Currency-NIL

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Mar 31, 2011

1. Since the amount of deferred tax provision is not material amount, no provision for deferred tax liabilities/assets as on 31.03.2011 is made.

2. As explained to us the amount due to SSI, MICRO, Small Enterprises is NIL.

3. Related party disclosures transaction are NIL.

4. During the year the company has issued 2800000 equity shares on preferential basis of Rs.10/- each on premium of Rs.10/- each , out of which 1000000 equity shares were issued to Promoters and 1800000 equity shares to Non-promoters.

5. Interest and Dividend Income are shown gross.

6. During the year the Company has sold out their all investments in securities, and as a result loss of Rs.60812.82 has been occurred.

7. Previous year's figures have been regrouped and rearranged, wherever necessary to make comparable with the current year's figure.

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Mar 31, 2010

A) Provision for deferred tax liability/Assets as on 31-3-2010 – Nil. Deferred tax asset on income tax credit and benefits has not been accounted for in the books of accounts as a measure of prudence and with uncertainty of their ultimate realisation. Amount due to SSI, Micro, Small Enterprises – Nil.

b) Related party disclosures:- Expenses incurred - Remuneration and allowances Rs.18,000/- to Key Management Personnel(Director)–Mr.A.K.Sharma.Rent Rs.12,000/- to associate concerns M/s.Chimanram Motilal.

c) Previous Years figures have been regrouped and rearranged wherever necessary.

d) Interest and Dividend Income are shown gross - Tax deducted at source on Interest Rs.13,680/-(Previous year Rs.17,764/-). Advance/ self assessment tax for the current year has not been fully paid. Interest on delay shall be accounted for as and when balance tax will be paid.

e) The Companys investment in securities are long term in nature and are being carried at cost. In the opinion of the Directors, there is no need to consider any diminution in the value of Companys investments.