Notes to Accounts of Swadeshi Industries & Leasing Ltd.

Mar 31, 2024

R. Provisions and Contingent Liabilities and Assets:

A provision is recognised when the Company has a present obligation (legal or constructive) as a result
of past events and it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation, in respect of which a reliable estimate can be made of the amount of
obligation. Provisions (excluding gratuity and compensated absences) are determined based on
management''s estimate required to settle the obligation at the Balance Sheet date. In case the time
value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks
specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost. These are reviewed at each Balance Sheet date and adjusted to
reflect the current management estimates.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose
existence would be confirmed by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company. A contingent liability also arises, in rare cases,
where a liability cannot be recognised because it cannot be measured reliably.

Contingent asset is not recongnised unless it becomes virtually certain that an flow of econimic benefits
will arise,

S. Employee Benefits

1. Defined Contribution Plan

Contributions to defined contribution schemes such as provident fund, employees’ state insurance,
labour welfare are charged as an expense based on the amount of contribution required to be made as
and when services are rendered by the employees. The above benefits are classified as Defined
Contribution Schemes as the Company has no further obligations beyond the monthly contributions.

2. Defined Benefit Plan

The Company also provides for gratuity which is a defined benefit plan, the liabilities of which is
determined based on valuations, as at the balance sheet date, made by an independent actuary using
the projected unit credit method. Re-measurement, comprising of actuarial gains and losses, in respect
of gratuity are recognised in the OCI, in the period in which they occur. Re-measurement reoognised in
OCI are not reclassified to the Statement of Profit and Loss in subsequent periods. Past service cost is
recognised in the Statement of Profit and Loss in the year of plan amendment or curtailment. The
classification of the Company’s obligation into current and non-current is as per the actuarial valuation
report.

3. Leave entitlement and compensated absences

Accumulated leave which is expected to be utilised within next twelve months, is treated as short-term
employee benefit. Leave entitlement, other than short term compensated absences, are provided based
on a actuarial valuation, similar to that of gratuity benefit. Re-measurement, comprising of actuarial
gains and losses, in respect of leave entitlement are recognised in the Statement of Profit and Loss in
the period in which they occur.

4. Short-term Benefits

Short-term employee benefits such as salaries, wages, performance incentives etc. are recognised as
expenses at the undiscounted amounts in the Statement of Profit and Loss of the period in which the
related service is rendered. Expenses on non-accumulating compensated absences is recognised in the
period in which the absences oocur.

5. Termination benefits

Termination benefits are recognised as an expense as and when incurred.

T. Accounting for Taxes of Income:-

1. Current Taxes

Current income tax is recognised based on the estimated tax liability computed after taking credit for
allowances and exemptions in accordance with the Inoome Tax Act, 1961. Current income tax
assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date.

2. Deferred Taxes

Deferred tax is determined by applying the Balance Sheet approach. Deferred tax assets and
liabilities are recognised for all deductible temporary differences between the financial statements’
carrying amount of existing assets and liabilities and their respective tax base. Deferred tax assets
and liabilities are measured using the enacted tax rates or tax rates that are substantively enacted at
the Balance Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is
recognised in the period that includes the enactment date. Deferred tax assets are only recognised
to the extent that it is probable that future taxable profits will be available against which the
temporary differences can be utilised. Such assets are reviewed at each Balanoe Sheet date to
reassess realisation.

3. Minimum Alternative Tax

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously

Fair Value of Financial Assets measured at amortised cost:

i. The Carrying amounts of Trade and Other Receivables and Cash and Cash equivalents are cosndered to be the same as their fair values, due to
their short term nature. The Carrying amounts of loans are considered to be close to their fair values.

ii. Financials Liabilities measured at amortised cost: The Carrying amount of Trade and Other Payables are considered to be the same as their fair
values due to their short term nature.

Note 24 : Financial Risk Management

The Company’s activities expose it to business risk, interest rate risk, liquidity risk and credit risk. In order to minimise
any adverse effects on the financial performance, the Company ’s risk management is carried out by a corporate treasury
and corporate finance department under policies approved by the board of directors and top management. Company’s
treasury identifies, evaluates and mitigates financial risks in close cooperation with the Company’s operating units. The
board provides guidance for overall risk management, as well as policies covering specific areas. The table below gives
the summarised view of the financial risk managed bv the Company :

A. Credit Risk

Credit risk is the risk of incurring a loss that may arise from a borrower or debtor failing to make required
payments. Credit risk arises mainly from outstanding receivables, cash and cash equivalents, employee
advances and security deposits. The Company manages and analyses the credit risk for each of its new
clients before standard payment and delivery terms and conditions are offered. There are no significant
concentrations of credit risk, whether through exposure to individual customers, specific industry sectors
and/or regions.

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as
agreed. To manage this, the Company periodically assess financial reliability of customers, taking into
account the financial condition, current economic trends, and analysis of historical bad debts and ageing of
accounts receivable. Individual risk limits are set accordingly

The Company considers the probability of default upon initial recognition of asset and whether there has
been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess
whether there is a significant increase in credit risk the Company compares the risk of default occurring on
asset as at the reporting date with the risk of default as at the date of initial recognition. It considers
reasonable and supportive looking forward information such as;

i. Actual or expected significant adverse changes in business, ,

ii. Actual or expected significant changes in the operating results of the counterparty,

iii. Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability''
to meet its obligations

iv. Significant changes in the value of the collateral supporting the obligation ot in the quality of the third party
guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery'', such as a debtor failing
to engage in a repayment plan with the Company. Where loans or receivables have been written off, the
Company continues to engage in enforcement activity to attempt to recover the receivable due. Where
recoveries are made, these are recognized in profit or loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers
based on historical trend, industry practices and the business environment in which the entity operates.Loss
rates are based on actual credit loss experience and past trends. Based on the historical data, loss oil
collection of receivable is not material hence no additional provision considered.

Notes foiming part to the Financial Statement for die Year Ended March 31, 2024

B. Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses. The Company’s objective is to, at all times maintain
optimum levels of liquidity to meet its cash and collateral requirements.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on
the basis of expected cash flows. The Company’s liquidity management policy involves projecting cash
flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity-
ratios against internal requirements and maintaining debt financing plans.

Financing arrangements

The Company had access to bank overdraft facilities. These facilities may be drawn at any time and may be
terminated by the bank without notice.

C. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Since the Company does not have any borrowings which are on
ilucutating interest rate, it is not exposed to cash flow interest rate risk. The Company has not used any
interest rate derivatives

Exposure to interest rate risk

The Company''s deposits and Investments are all at fixed rate and carried at amortised cost. They are
therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the
future cash flows will fluctuate because a change in market interest rates.

Note 27: Capital Management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going
concern and to optimise returns to its shareholders. Management monitors the return oil capital as well as the
debt equity ratio and make necessary adjustments in the capital structure for the development of the business.
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 - to - day needs. In order to maintain or adjust the capital
structure, the Company may adjust the amount of dividends paid to shareholders, return capital to
shareholders or issue new shares.

Gearing Ratio- There is no Debts in the company as on 31.03.2023and 31.03.2022 .Thus ,Gearing Ratio is
Nil as on 31.03.2023 and 31.03.2024 ''

Note 28: Contingent Liability

There are no contingent liabilities in the company

Note 29 :

There is no availability of information about the amount dues to small/micro undertaking, we are unable to
comment that the interest if any is due to such undertaking or not.

Note 30:

Balances are relied upon as per books of accounts wherever the confirmations from debtors /creditors /Loans
/Advances are not available

Note 31:

As certified by the Management there is no obligation in respect of gratuity and leave encashment during the
year

Note 32:

Previous year figures have been regrouped and rearranged wherever necessary to confirm with the current
year presentation.

{As per our re port of even date)

For G C AS & Associates LLP FOR Swadeshi Industries & Leasing Limited

Chartered Accountants

FRN: 327601E

Parag Gudhka GouravJain Krishna Vyas

Designated Partner Managing Director Director

Membership No. 143380 DIN: 06794973 DIN: 07444324

Place: Mumbai Place: Mumbai Place: Mumbai

Date: 29-May-2024 Date: 29-May-2024 Date: 29-May-2024

CS Shruti Jain Vikas Jain

Company Secretary CFO

Place: Mumbai
Date: 29-May-2024

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Mar 31, 2016

1. 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.

2. Contingent Liabilities and commitments (to the extent not provided for)

Claims against the company not acknowledged as debt -- Contingent Liabilities

3. Income Tax Demand for A.Y 2008-09 of Rs.6,180/-

4. Income Tax Demand for A.Y. 2008-09 of Rs.33,930/-

5. Income Tax Demand for A.Y 2009-10 of Rs.1,10,570/-

6. Income Tax Demand for A.Y. 2009-10 of Rs.11,820/-

7. Income Tax Demand for A.Y. 2014-15 of Rs.1,518/-

8. Income Tax Demand for A.Y. 2015-16 of Rs.33,010/-

9. All Debit and Credit balances are subject to confirmation and reconciliation.

10. There are no dues to Micro; Small & Medium Enterprises as at Balance Sheet date and no interest has been paid to any such parties. This is based on the information on such parties having been identified on the basis of information available with the Company and relied upon by the auditors.

11. Earnings Per Share (EPS) The following reflects the profit and share data used in the basic and diluted EPS Computations:

12. Related Party transactions:

As per the AS 18 for related party transaction issued by The Institute of Chartered Accountants of India and statement provided by the Company for Identification of Related Parties and accepted by the auditors relying on the authenticity of the statement. The related party transactions are as follows.

13.. The financial statement for the year ended 31st March, 2016 has been prepared as per the requirement of the Revised Schedule III to the Companies Act, 2013. The previous year''s figures have been accordingly regrouped/ classified to confirm to the year''s classification.

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

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Mar 31, 2015

1) 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.

2) All Debit and Credit balances are subject to confirmation and reconciliation.

3) There are no dues to Micro, Small & Medium Enterprises as at Balance Sheet date and no interest has been paid to any such parties. This is based on the information on such parties having been identified on the basis of information available with the Company and relied upon by the auditors.

4) Earnings Per Share (EPS) The following reflects the profit and share data used in the basic and diluted EPS Computations:

5) Related Party transactions:

As per the AS 18 for related party transaction issued by The Institute of Chartered Accountants of India and statement provided by the Company for Identification of Related Parties and accepted by the auditors relying on the authenticity of the statement. The related party transactions are as follows.

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Mar 31, 2014

Related Party transactions:

As per the AS 18 for related party transaction issued by The Institute of Chartered Accountants of India and statement provided by the Company for Identification of Related Parties and accepted by the auditors relying on the authenticity of the statement. There is no payment to related parties.

31 March 2014 31 March 2013 (Rs.) (Rs.) Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Claims against the Company not acknowledged as debt Not Not Ascertainable Ascertainable

(b) Legal suits and claims filed against the company Not Not Ascertainable Ascertainable

Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Micro, Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors. The Company has not received any instruction from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, disclosures if any, relating to amounts unpaid as at the year end together with interest payable as required under the said Act have not been given.

The balances appearing under unsecured loans, sundry creditors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation

In the opinion of the Board, the Current Assets, Loans and Advances have value on realisation in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet.

All known liabilities are provided for on the basis of available information/ estimates. 20.7 Other advances includes Rs. 1,000,000/- (Previous year Rs. 2,500,000) paid to M/s. Anira Devlopers Private Limited as advance against realty, Rs. 5,000,000/- (Previous year Rs. 5000,000) paid to M/s. Nahata Leasing Private Limited as loan.

Segment Reporting:

During the year, the Company has only one segment in product wise and geographical wise, hence Segment Reporting in accordance with Accounting Standard 17 (AS-17), “Segmental reporting”, issued by the Institute of Chartered Accountants of India, has not been provided.

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. 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

1. Value of imported and indigenous raw materials consumed during the year and the percentage of each to the total consumption:-

2. Figures for previous years have been re-grouped/re-arranged, wherever necessary.

3. Related Party transactions:

As per the AS 18 for related party transaction issued by The Institute of Chartered Accountants of India and statement provided by the Company for Identification of Related Parties and accepted by the auditors relying on the authenticity of the statement the following are the related party transactions are recognised as under:

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Mar 31, 2012

1. Related Party transactions:

As per the AS 18 for related party transaction issued by The Institute of Chartered Accountants of India and statement provided by the Company for Identification of Related Parties and accepted by the auditors relying on the authenticity of the statement the following are the related party transactions are recognised as under:

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Mar 31, 2011

1. Figures for previous years have been re-grouped/re-arranged, wherever necessary.

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Mar 31, 2010

1. Figures for previous years have been re-grouped/re-arranged,wherever necessary.