Notes to Accounts of Visagar Financial Services Ltd.

Mar 31, 2025

l) Contingent Liability

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 that
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 a contingent liability but discloses its existence
in the financial statements.

m) Cash and cash equivalents

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

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short¬
term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral
part of the Company’s cash management.

n) Investments and other financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

(1) Those to be measured subsequently at fair value (either through other comprehensive income, or
through the Statement of Profit and Loss), and

(2) Those measured at amortised cost.

The classification depends on the Company’s business model for managing the financial assets and
the contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of
financial assets carried at fair value through the Profit and Loss are expensed in the Statement of
Profit and Loss.

Debt Instruments:

Subsequent measurement of debt instruments depends on the Company’s business model for
managing the asset and the cash flow characteristics of the asset. The Company classifies its debt
instruments into following categories:

Amortised Cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. Interest income
from these financial assets is included in other income using the effective interest rate method.

Fair value through profit and loss: Assets that do not meet the criteria for amortised cost are
measured at fair value through Profit and Loss. Interest income from these financial assets is included
in other income.

Equity instruments:

The Company measures its equity investment other than in subsidiaries, joint ventures and associates
at fair value through profit and loss.

(iii) Impairment of financial assets

The Company measures the expected credit loss associated with its assets based on historical trend,
industry practices and the business environment in which the entity operates or any other appropriate
basis. The impairment methodology applied depends on whether there has been a significant increase
in credit risk.

o) Earnings Per Share
Basic earnings per share

Basic earnings per share is calculated by dividing:

- The profit attributable to owners of the Company

- By the weighted average number of equity shares outstanding during the financial year, adjusted
for bonus elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per shares

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account:

- The after income tax effect of interest and other financing costs associated with dilutive potential
equity shares, and

- The weighted average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.

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Mar 31, 2024

In accordance with Accounting Standard Ind AS 108 ‘Operating Segment’ the Company has only one reportable business segment and have only one reportable geographic segment in India.

30. Capital Risk Management:

The Company aim to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders.

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. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and

the risk characteristics of the underlying assets. 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.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

31. Contingent Liabilities: Rs. 40,42,798/-(Previous Year - 40,42,798/-)

32. Financial risk management objectives and policies

The Company''s principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and deposits to landlords) and from its financing activities. The Company generally doesn''t have collateral.

Trade Receivables and Security Deposits

Customer credit risk is managed by business through the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of each

customer is assessed and credit limits are defined in accordance with this assessment. Outstanding customer receivables and security deposits are regularly monitored.

Liquidity Risk

The company''s principal source of liquidity is cash and cash equivalents and the cash flow that is generated from operations. The company has no outstanding bank borrowings. The company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived

33. Certain Balances of parties under sundry debtors, creditors, loans and advances are subject to confirmations/reconciliation.

34. There was no expenditure/earning in Foreign Currency during the year.

36. Certain Balances of parties under sundry debtors, creditors, loans and advances are subject to confirmations/reconciliation.

37. There was no expenditure/earning in Foreign Currency during the year.

38. The Company does not any transactions with Companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

39. The Company has not traded or invested in crypto currency or virtual currency during the current year or previous year.

40. The Company has not entered into any Scheme or Arrangements that are approved by the Competent Authority in terms of Sections 230 to 232 of the Companies Act, 2013

41. The Company has complied with the number of layers prescribed under the Companies Act, 2013

42. Previous Year figures have been reclassified whenever necessary to conform in the current year’s presentation.

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Mar 31, 2014

1. RETIRMENT BENEFITS

Provision for Payment of Gratuity Act, 1972 is not applicable and as such no provision is made. Leave Encashment, if any, would be accounted for as and when paid.

2. In the opinion of the Board the value of Current Assets, Loans & Advances have a value in ordinary course of business at least equal to that stated in the Balance Sheet except in case of those show in doubtful. Loans & Advances, Sundry Debtors & Sundry creditors are subject to confirmation from the parties.

3. No Interest has been provided for the year on loans & advances made by the Company during the year in many cases.

4. Estimated Amount of Contracts Remaining to be executed on Capital Accounts and not provide for Rs. NIL.

5. Additional information Pursuant to the Provision of Paragraph 3, 4C and 4D of part II of the Schedule VI of the Companies Act, 1956.

a. Particulars of Purchase, Turnover and Stock of Goods traded in -

b. Other additional information - NIL (Previous Year NIL)

c. Earning & Expenditure in Foreign Currency - NIL (Previous Year NIL)

6. Previous Year''s Figure have been Regrouped and rearrange wherever found necessary.

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Mar 31, 2013

1. In the opinion of the Board the value of Current Assets, Loans & Advances have a value in ordinary course of business at least equal to that stated in the Balance Sheet except in case of those show in doubtful. Loans & Advances, Sundry Debtors & Sundry creditors are subject to confirmation from the parties.

2. No Interest has been provided for the year on loans & advances made by the Company during the year in many cases.

3. Estimated Amount of Contracts Remaining to be executed on Capital Accounts and not provide for Rs. NIL.

4. Additional information Pursuant to the Provision of Paragraph 3, 4C and 4D of part II of the Schedule VI of the Companies Act, 1956.

A. Particulars of Purchase, Turnover and Stock of Goods traded in –

B. Other additional information – NIL (Previous Year NIL)

C. Earning & Expenditure in Foreign Currency – NIL ( Previous Year NIL)

5. Previous Year''s Figure have been Regrouped and rearrange wherever found necessary. Signature to the Schedule 1 to 19 forming part of the Balance Sheet & Profit & Loss Account.

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Mar 31, 2012

1. In the opinion of the Board the value of Current Assets, Loans & Advances have a value in ordinary course of business at least equal to that stated in the Balance Sheet except in case of those show in doubtful. Loans & Advances, Sundry Debtors & Sundry creditors are subject to confirmation from the parties.

2. No Interest has been provided for the year on loans & advances made by the Company during the year in many cases.

3. Estimated Amount of Contracts Remaining to be executed on Capital Accounts and not provide for Rs. NIL.

4. Additional information Pursuant to the Provision of Paragraph 3, 4C and 4D of part II of the Schedule VI of the Companies Act, 1956.

A. Particulars of Purchase, Turnover and Stock of Goods traded in -

B. Other additional information - NIL (Previous Year NIL)

C. Earning & Expenditure in Foreign Currency - NIL ( Previous Year NIL)

5. Previous Year's Figure have been Regrouped and rearrange wherever found necessary.

Signature to the Schedule 1 to 19 forming part of the Balance Sheet & Profit & Loss Account.

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Mar 31, 2011

1. In the opinion of the Board the value of Current Assets, Loans & Advances have a value in ordinary course of business at least equal to that stated in the Balance Sheet except in case of those show in doubtful. Loans & Advances, Sundry Debtors & Sundry creditors are subject to confirmation from the parties.

2. No Interest has been provided for the year on loans & advances made by the Company during the year in many cases.

3. Estimated Amount of Contracts Remaining to be executed on Capital Accounts and not provide for Rs. NIL.

4. Additional information Pursuant to the Provision of Paragraph 3, 4C and 4D of part II of the Schedule VI of the Companies Act, 1956.

A. Particulars of Purchase, Turnover and Stock of Goods traded in –

B. Other additional information – NIL (Previous Year NIL)

C. Earning & Expenditure in Foreign Currency – NIL ( Previous Year NIL)

5. Previous Year's Figure have been Regrouped and rearrange wherever found necessary.

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Mar 31, 2010

1. In the opinion of the Board the value of Current Assets, Loans & Advances have a value in ordinary course of business at least equal to that stated in the Balance Sheet except in case of those show in doubtful. Loans & Advances, Sundry Debtors & Sundry creditors are subject to confirmation from the parties.

2. No Interest has been provided for the year on loans & advances made by the Company during the year in many cases.

3. Estimated Amount of Contracts Remaining to be executed on Capital Accounts and not provide for Rs. NIL.

4. Additional information Pursuant to the Provision of Paragraph 3, 4C and 4D of part II of the Schedule VI of the Companies Act, 1956.

A. Particulars of Purchase, Turnover and Stock of Goods traded in -

B. Other additional information - NIL (Previous Year NIL)

C. Earning & Expenditure in Foreign Currency - NIL (Previous Year NIL)

5. Previous Year's Figure have been Regrouped and rearrange wherever found necessary. Signature to the Schedule 1 to 13 forming part of the Balance Sheet & Profit & Loss Account.