Hira Automobiles Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

36 Contingent liabilities

a Claim against the Company not acknowledged as debts 31 March 2025 31 March 2024

Income tax matters pending in appeal (excluding interest and penalties)

Service tax matters pending in appeal

37 Operating leases A Leases as lessee

The Company has entered into operating lease arrangements for office space for six to nine years and computer related equipment''s for a initial period of 3 years. Certain lease arrangements contain a clause for renewal of the lease agreement and the others are supported by letters from the lessor for renewal options. Certain lease agreements contain escalation clauses.

i Risk management framework

The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework. The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also reviewed by the senior management of the Company. The note explains the sources of risk to which the Company is exposed to and how the entity manages the risk.

ii Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party to financial instrument fails to meet its contractual obligations and arises principally from Company''s receivables from customers and loans

Trade receivables

! Concentration of credit risk with respect to trade receivables are limited, due to majority of its customers being group companies. The value of third party trade

Jo receivables is not material and further there was no material impairment observed in the past years. Considering the historical experience of collecting receivables

! we do not foresee credit risk for such trade receivables. Hence, the company has is not applied expected credit loss model for valuing such third party trade

receivables.

Trade receivables and unbilled revenue are typically unsecured and are derived from revenue earned from the customers. Credit risk has always been managed by each business segment 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. As per Ind AS 109, the Company shall use expected credit loss (ECL) model to assess the impairment loss or gain. ECL methodology depends on whether there is any significant increase in credit risk. In case of significant increase in credit risk, life time ECL is used; otherwise twelve-month ECL is used. However, the management of the company does not feel a significant increase in credit risk, to made provision matrix to compute the expected credit loss allowance for trade receivables.

Cash and cash equivalent

Credit risk on cash and cash equivalent is limited as the company generally invests in term deposits with banks with higher credit rating. Investment primarily includes certificates of deposit which are funds deposited at bank for lesser than three months of maturity hence, there is lesser exposure to credit risk

Other financial assets

The Company has other financial assets such as security deposits, unbilled revenue, loans and advance to related parties and intercorporate deposits. Loans and advances and intercorporate deposits are placed with Hira goup companies and hence, the Company does not foresee any credit risk for such class of assets. In respect of security deposits, considering historical trend there have been no instances of any defaults with receipts of security deposits placed with third parties, hence no provision for impairment is made for the same.

The Company’s maximum exposure to credit risk as at 31 March 2025, 31 March 2024 and 1 April 2023 is the carrying value of each class of financial assets, iii Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due. The Company believe that the working capital is sufficient to meets its current obligations. Accordingly, no liquidity risk is perceived.

Any amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and excess, if any, is invested in interest bearing term deposits with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

40

The Company has not advanced any Inter corporate deposits ("ICD") to any Person as on 31st March 2025

Considering that the Participant is a fellow subsidiary, the Company has evaluated whether the ICD is in compliance with section 185 of the Companies Act, 2013. Emphasis is placed on explanation (e) to section 185, which states that no company shall directly or indirectly advance any loan to any body corporate, the Board of directors, managing director or manager, whereof is accustomed to act in accordance with the directions or instructions of the Board, or of any director or directors, of the lending company.

The Company has considered the following factors in evaluating whether the Participant''s Board or its Managing Director is accustomed to act in accordance with the directions and instruction of the Company''s Board:- There is no substantial interest of the Company in the financial and/or operating policies of the Participant.

- The Board of Participant takes independent decisions

- The ICD agreement has been approved by the Board of both the companies on an arm''s length basis

- Both the companies have a separate business vertical at a group level

Based on above factors and legal opinion obtained from a renowned law firm, the Company has concluded that the ICD is not within the purview of section 185 of the Companies Act, 2013.

41 Corporate Social Responsibility (CSR) ---------NA-------

As per provisions of section 135 of Companies Act 2013, the Company was required to spend INR NIL (March 31,2024: INR NILL) being 2% of average net profits made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy on the activities specified in Schedule VII of the Act. The Company has spent INR NIL (March 31, 2024: INR NIL ) towards Corporate Social Responsibility activities.

7. The company does not falling under the definition of “Large Corporate” or say LC as per the Chapter XII of Operational Circular and Amendment to SEBI ( Issue and Listing of NonConvertible Securities) Regulation, 2021. So the clause regarding requirements for Large Corporate (LCs) for meeting their financing needs from debt market through issuance of debt securities to an extend of 25% of their incremental borrowing in a financial year, is not applicable to the Company.

8. During the financial year 2024-25, the company has paid a penalty under 15A(a) ad 15A(b) of SEBI Act, 1992 of Rs. 14,00,000/- for non-compliance.

Hence, the interest due towards MSME Suppliers is not a materialise amount, as mentioned above. Further there is no claim has been received from MSME suppliers during the financial year. In view of the same, the company has not provided/ accounted for the interest due towards MSME suppliers in the books of accounts

10. Balance Confirmation letters have been obtained from some of the parties on test check basis.

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Mar 31, 2024

M) Provisions and Contingencies

Provisions are recognised when there is 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 there is a reliable estimate of the amount of the obligation. Provisions are measured
at the best estimate of the expenditure required to settle the present obligation at the balance
sheet date and are not discounted to their present value.

Contingent liabilities are disclosed 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 a present obligation that
arises from past events where it is either not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be made.

N) Earnings Per Share

The calculation of Earnings Per Share (EPS) as disclosed in the balance Sheet Abstract has been
made in accordance the requirement of Accounting Standard (AS) -20 on Earnings Per Share
issued by the Institute of Chartered Accounts of India. Diluted Earning per Share is the same
Basis Earning per share because there is no potential equity shares which would have dilutive
effect on earning per shares to equity shareholders.

O) Segment Reporting

1. The Company is Authorized Dealer of Maruti Suzuki India Limited (MSIL) and hence, is engaged
in the business of sale and service of MSIL vehicles. As the basis nature of sale of variants of
vehicles is governed by the same set of risk & returns, these have been grouped as single
segment as per Accounting Standard (AS-14) on segment reporting issued by the Institute of
Chartered accountants of India.

2. Balance Sheet of Current year has been prepared as per Ind AS per application to listed
companies and figures of previous year have also been recalculated, re-group and re classified
wherever necessary in order to conform to the current year''s presentation. Due to applicability of
Ind AS previous year figure have changed.

3. (a) During the year, the company has recognized the following amounts as Defined Contribution
Plan in the Profit and Loss Account:

1) Employer''s Contribution to Provident Fund - Rs. 44.45 lacs

2) Employer''s Contribution to Employee State Insurance -Rs. 17.38 lacs

(b) During the year the Company has made provision for Gratuity of Rs.23.61 lacs in books
as designed benefit plan.

4. Subsequent to Accounting Standards -22" Accounting for Taxes on Income" , Issued by the
institute of Chartered Accountants of India, Deferred tax expenses of Rs. 4,01,894.00 for the
periods is recognized in the profit and loss amount.

7. The company does not falling under the definition of “Large Corporate” or say LC as per the
Chapter XII of Operational Circular and Amendment to SEBI ( Issue and Listing of Non¬
Convertible Securities) Regulation, 2021. So the clause regarding requirements for Large
Corporate (LCs) for meeting their financing needs from debt market through issuance of debt
securities to an extend of 25% of their incremental borrowing in a financial year, is not applicable to
the Company.

8. During the financial year 2023-24, the company has received a penalty notice under 15A(a) ad
15A(b) of SEBI Act, 1992 of Rs. 14,00,000/- for non-compliance. However, the Company has paid
the same penalty on 24th May 2024 vide challan no. 533278, the same has not been recorded or
provided in the books of accounts during the financial year.

Hence, the interest due towards MSME Suppliers is not a materialise amount, as mentioned
above. Further there is no claim has been received from MSME suppliers during the financial year.
In view of the same, the company has not provided/ accounted for the interest due towards MSME
suppliers in the books of accounts.

10. Balance Confirmation letters have been obtained from some of the parties on test check
basis.

As per out report of even date

For Mohan Juneja & Co. For and on Behalf of the Board

Firm Registration Number : 020488N
Chartered Accountants

Rahulinder Singh Sidhu
Chairman & Managing Director

Mohan Juneja
Partner

Membership Number: 099825 Neha Sidhu

Director

Place: Chandigarh Rajan Kaushal

Date :30.05.2024 Chief Finance Officer

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Mar 31, 2014

1 (a). During the year ,the Company has recognized the following amounts as Defined Contribution Plan in the Profit and Loss Account: i) Employer''s Contribution to Provident Fund - Rs. 53.52 Lacs

ii) Employer''s Contribution to Employee State Insurance - Rs. 17.14 Lacs

(b) During the year the Company has made provision for Gratuity in books as designed benefit plan.

2. Legal & Professional Fees includes Payments toAuditors comprising as follows :- i) Statutory Audit fee Rs 100000.00

ii)Tax audit and VAT audit Fee Rs 50000.00

3. Related Party Disclosure in accordance with Accounting Standard -18:

a) Enterprises owned or Significantly Influenced by Directors and their Relatives Pacific FinleasePvt. Ltd.

4. Balance confirmation letters have been obtained from some of the parties on test check basis.

5. Figures of Previous year have been re-grouped and re classified wherever necessary, in order to conform to the current year''spresentation.

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Mar 31, 2013

1 (a). During the year ,the Company has recognized the following amounts as Defined Contribution Plan in the Profit and Loss Account :

i) Employer''s Contribution to Provident Fund - Rs. 43.23 Lacs

ii) Employer''s Contribution to Employee State Insurance - Rs. 13.27 Lacs

(b) During the year the Company has made provision for Gratuity in books as designed benefit plan.

2. Subsequent to Accounting Standards -22 " Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India ,Deferred Tax Expenses of Rs. 919135.00 for the periods is recognized in the Profit and Loss Account. Calculation of Deferred Tax Liability is as follows :

3. Balance confirmation letters have been obtained from some of the parties on test check basis.

4. Figures of Previous year have been re-grouped and re classified wherever necessary, in order to conform to the current year''s presentation.

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Mar 31, 2012

A) Taxes on Income

(i) Income tax expenses for the period comprise of Current Tax and Deferred Tax.

(ii) Current Tax is the amount of tax payable on the taxable income for the year determined in accordance with the provision of the Income Tax Act, 1961.

(iii) Deferred Tax is recognized, on the timing differences, being the difference between accounting income and taxable income, which originates in one period and are capable of reversal in one or more subsequent accounting periods in accordance with the provisions of Accounting Standard -22 on "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India. Deferred Tax Asset in respect of brought forward losses is recognized only if there is virtually certainly that there will be sufficient future taxable income against which such asset can be realized.

b) Provisions and Contingent liabilities

Provisions are recognized when the company has a present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of obligation.

c). Impairment of Assets

At each balance sheet date, the company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount. If the carrying amount of the asset exceed its recoverable amount, an impairment loss is recognized in the profit and loss account to the extent the carrying amount exceeds the recoverable amount.

d) Earnings Per Share *

The calculation of Earnings Per Share (EPS) as disclosed in the Balance Sheet Abstract has been made in accordance with the requirement of Accounting Standard (AS) -20 on Earnings Per Share issued by the Institute of Chartered Accountants of India.

Diluted Earning per share is the same as Basic Earning per share because there is no potential equity shares which would have dilutive effect on earning per shares to equity shareholders.

e) Segment Reporting

The Company is Authorized Dealer of Maruti Suzuki India Limited (MSIL) and hence, is engaged in the business of sale & service of MSIL vehicles. As the basic nature of sale of variants of vehicles is governed by the same set of risk & returns, these have been grouped as single segment as per Accounting Standard(AS-17) on segment reporting issued by the Institute of Chartered Accountants of India.

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Mar 31, 2010

1. Subsequent to Accounting Standards -22 " Accounting for Taxes on Incomes",issued by the Institute of Chartered Accountants of India,Deferred Tax Expenses of Rs. 2248961.00 for the periods is recognized in the Profit and Loss Account. Calculation of Deferred Tax Liability is as follows :

2. Balance confirmation letters have been obtained from some of the parties on test check basis.

3. Figures of Previous year have been re-grouped and re classified wherever necessary, in order to conform to the current years presentation.

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Mar 31, 2009

1) Contingent Liablities

These liablities are acknowledged as and when arises

1) The loan/borrowings stated in schedule 3 are secured by:-

a) Cash Credit The Company has taken cash credit limit of Rs. 650 lacs from Punjab National Bank, Gur mandi Branch, Patiala against primary security o Hypothecation of stock of vehicles, book debts spares and all other stores on regular basis. Outstanding balance as on 31 st March 2009 was of Rs 696.59 lacs.

b) Term Loan The Company had taken secured term loan against primary security of hypothecation of vehicles. Outstanding balance as on 31 st March 2009 was of Rs. 11.22 lacs

2) Related Party Transactions

I. Entities under common control - NIL

II. Enterprises over which individuals related to Hira Automobiles Ltd are able to exercise significant influence: - M/S Pacific Finlease Pvt Ltd.

3) Figures of Previous year have been re-grouped and re classified wherever necessary, in order to conform to the current years presentation.