(g) Provision, Contingent Liabilities and Contingent Assets:
A provision is recognized when the company has a present obligation as a result of past event
and it is probable that an outflow of resources will be required to settle the obligation, in respect
of which reliable estimate can be made.
If the effect of the time value of money is material, provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, 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 costs.
Contingent Assets and Contingent Liabilities are not recognized in the standalone Ind AS
financial statements.
Company's policy is to carry adequate amounts towards Provision for Standard Assets, Non¬
Performing Assets (NPAs) and other contingencies. All loans and other credit exposures where
the installments are overdue for ninety days and more are classified as NPAs in accordance with
the prudential norms prescribed by the National Housing Bank (NHB). The provisioning policy
of Company covers the minimum provisioning required as per the NHB guidelines.
Provisions are established on a collective basis against loan assets classified as "Standard" to
absorb credit losses on the aggregate exposures in each of the loan portfolios based on the NHB
Directions. A higher non-performing asset provision may be made based upon an analysis of past
performance, level of allowance already in place and Management's judgment. This estimate
includes consideration of economic and business conditions. The amount of the allowance for
credit losses is the amount that is required to establish a balance in the Provision for Non¬
Performing Assets Account that management consider adequate, after consideration of the
prescribed minimum requirement under the NHB Directions, to absorb crest related losses in its
portfolio of loan items after individual allowances or write offs.
(h) Leases
Ministry of Corporate Affairs ("MCA") through Companies (Indian Accounting Standards)
Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment
Rules, has notified Ind AS 116 Leases which replaces the existing lease standard, Ind AS 17
Leases and other interpretations. Ind AS 116 sets out the principles for the recognition,
measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a
single, on-balance sheet lease accounting model for lessees.
The Company has adopted Ind AS 116, effective annual reporting period beginning April 1, 2019
and applied the standard to its leases using the modified retrospective approach whereby a lessee
applies the new standard from the beginning of the current period. The lessee calculates the lease
asset and lease liability as at the beginning of the current period and recognized an adjustment in
equity at the beginning of the current period. Accordingly, a lessee will not restate its prior
period financial information under this approach.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short term leases
of all assets that have a lease term of 12 months or less and leases for which the underlying asset
is of low value. The lease payments associated with these leases are recognised as an expense on
a straight-line basis over the lease term.
The Company recognises right-of-use asset representing its right to use the underlying asset for
the lease term at the lease commencement date. The cost of the right of-use asset measured at
inception shall comprise of the amount of the initial measurement of the lease liability adjusted
for any lease payments made at or before the commencement date less any lease incentives
received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee
in dismantling and removing the underlying asset or restoring the underlying asset or site on
which it is located. The right-of-use assets are subsequently measured at cost less any
accumulated depreciation, accumulated impairment losses, if any. The right-of-use assets is
depreciated using the straight-line method from the commencement date over the shorter of lease
term or useful life of right-of-use asset
The Company measures the lease liability at the present value of the lease payments that are not
paid at the commencement date of the lease. The lease payments are discounted using the
interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be
readily determined, the Company uses incremental borrowing rate. For leases with reasonably
similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental
borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole.
The lease liability is subsequently re-measured by increasing the carrying amount to reflect
interest on the lease liability, reducing the carrying amount to reflect the lease payments made
and re-measuring the carrying amount to reflect any reassessment or lease modifications or to
reflect revised in-substance fixed lease payments.
On application of Ind AS 116, the nature of expenses has changed from lease rent in previous
periods to depreciation cost for the right-of-use asset, and finance cost for interest accrued on
lease liability.
26. At present, Company does not have any defined benefit plan hence no provision has been made in
the books.
27. Increased Authorized and Paid-up Capital during the year:
Authorised and Paid up Capital has been increased from 3,50,00,000 to Rs 5,50,00,000 and Rs
300,10,000 to Rs 4,32,60,000 respectively at Extraordinary General Meeting held on 21.03.2025
28. Unsecured Loan convert to equity paid-up capital during the year
Unsecured loan of Rs 1,02,50,000 from Director has been converted in to equity shares in
different tranches at face value of Rs 1.00/- each ranked pari-passu with existing shares at Extra¬
ordinary General Meeting held on 27.01.2025 and 21.03.2025.
29. The standalone financial statements were approved for issue by the Board of Directors on 23rd May,
2025.
30. The Company did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses.
31. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education and Protection Fund by the Company.
32. Previous year's figures have been re- arranged or re- grouped wherever considered necessary.
33. Figures have been rounded off to the nearest thousands of rupees.
34. Figures in brackets indicate negative (-) figures.
Signed for the purpose of Identification
FOR R.C. AGARWAL & CO. For and on behalf of Board of Directors of
Chartered Accountants Superior Finlease Limited
Firm Regn. No. 003175N
Sd/- Sd/-
PRAVIN KUMAR JHA Rajneesh Kumar Krishan Gopal Sharma
Partner Director CFO
Membership No. 506375 DIN: 02463693 PAN: ACRPG5717F
UDIN: - 25506375BMJJOA6599
Date: 23rd May, 2025
New Delhi Sd/- Sd/-
Mohd. Hishamuddin Shashank Mathur
CEO Company Secretary
PAN : ACTPH4397N PAN:BKZPM5095H
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