Notes to Accounts of JMJ Fintech Ltd.

Mar 31, 2025

24. Contingent liabilities and commitments (to the extent not provided for)
Particulars	As at 31st March	As at 31st March
	2025	2025
Contingent liabilities Income tax matters	1,156.27
Goods and services tax related matters	-	-
Total	1,156.27	-
Capital Commitments Estimated amount of contracts remaining to be executed on capital expenditure and not provided for
Uncalled capital in Investments	-	-
Total	-	-

26. Segment reporting

The Chief Operating Decision Maker (CODM) has considered the business of providing loans as a single operating segment as defined in Ind AS 108- Operating Segments.

27. Capital Management

The Company’s capital management strategy is to ensure that it has sufficient capital for business operations, strategic investment, and regulatory requirements, to provide reasonable return to the shareholders. Equity share capital, other equity and subordinated debts are considered for Capital management.

The company monitors its Capital Adequacy ratio as stipulated by RBI. The Capital adequacy ratio as of March 31, 2025 is 80.13%

(March 31, 2024 - 84.38%) as against the regulatory requirement of 15%._ 29. Financial Risk Management

The Company’s board of directors have overall responsibility for the establishment and oversight of the risk management framework. The board of directors along with the top management are responsible for developing and monitoring the risk management policies.

The risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer fails to meet his contractual obligations and arises principally from the company''s loan receivables.

The company has a credit policy which clearly defines the credit filters and the terms of acceptance of proposals for financing different categories of borrowers and asset classes. The credit appraisal process includes stratification of customers, compliance with know your customer (KYC) norms, field investigation, loan to value, loan tenure, etc.

Liquidity 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 meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposit to optimize the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

31. Additional Disclosures Under Schedule III Division III

i) The Company neither has any immovable property nor any title deeds of Immovable Property not held in the name of the Company

ii) All Property, Plant and Equipment (PPE) and Intangible Assets are stated in the Balance sheet at cost less accumulated depreciation/ammortization and accumulated impairment losses, if any. The company has not revalued any PPE and Intangible Assets during the financial year.

iii) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

iv) The Company has not been declared wilfid defaulter by any bank or financial institution or government or any government authority.

v) The company has not transacted with other companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

vi) The Company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period, as at the year ended 31 March 2025.

vii) The Company does not have Investments in other companies and hence compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 does not apply.

viii) The Company, as part of its normal business, grants loans and advances, borrows from Banks, financial institutions and others. These transactions are part of the Company’s authorised normal business, which is conducted ensuring adherence to regulatory requirements.

Other than the transactions described above:

a) No funds 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 person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

b) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

ix) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year ended March 31, 2025.

x) There is no income surrendered/disclosed as income during the current/previous year in the tax assessments under Income Tax Act, 1961, that has not been recorded in the books of accounts.

xi) The Company has not entered into any scheme of arrangements which has an accounting impact on current/previous financial year.

xii) There are no loans or advances in the nature of loans granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are either repayable on demand or without specifying any terms or period of repayment.

xiii) The company is not required to file any quarterly statements or returns of current assets with banks / financial institutions.

32. Shares Issue

During the year 2024-25, the Company had issued 4,00,000 equity shares for Rs.25 each (comprising face value Rs. 10 each and a share premium of Rs.15). The shares were issued on preferential allotment on 04th October 2024 for cash consideration.

33. Corresponding figures for the previous years have been regrouped/rearranged where ever necessary to make them comparable with those of the current year.The figures are rounded to the nearest thousand rupee.

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Mar 31, 2024

2.17 Provisions and Contingencies

The Company recognizes provisions when there is present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. In cases where the available information indicates that the loss on the contingency is reasonably possible but the amountof loss cannot be reasonably estimated, a disclosure is made in the financial statements.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current management estimates. If it is no longer probable that the outflow of resources is not required to settlethe obligation, the provision is reversed.

A disclosure of contingent liability is made when there is a possible obligation or a present obligationthat may but probably will not require an outflow of resources.

When there is possible obligation or a present obligation in respect of which likelihood of outflow ofresources is remote, no provision or disclosure is made. Contingent assets are not recognized in the financial statements.

For Mahesh C Solanki & Co Chartered Accountants FR.No.006228C

Sd/-

CA.Vinay Kumar Jain Memb No. 232058 Partner

UDIN: 24232058BKCZSL2794 Place: Chennai Date:23-05-2024

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Mar 31, 2016

In the event of the 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 of shares held by the shareholders.

1. CONTINGENT LIABILITIES AND COMMITMENTS: NIL

2. ADDITIONAL INFORMATION DISCLOSED AS PER PART II OF THE COMPANIES ACT, 2013: NIL

3. SEGMENT REPORTING:

The company is primarily engaged in the single business of Financing and Investment and there is no reportable secondary segment i.e. geographical segment. Hence, the disclosure requirement of Accounting Standard-17 "Segment Reporting" as notified by Companies (Accounting Standards) Rules, 2006 (as amended) is not applicable.

4. AMOUNT DUE FROM DIRECTORS/PARTIES/COMPANIES IN WHICH DIRECTOR IS INTERESTED, IN TERMS OF SECTION 185 OF THE COMPANIES ACT, 2013:

Loans and Advances include loan amount of Rs.8,50,751/- due from M/s. India Roller Flour Mills, in which one of the directors of the company is interested as a Partner in HUF capacity. 100% provision towards the loan has been made as per Prudential Norms prescribed for NBFC''s by RBI. However, the company is confident of recovery of the amount due to the company.

5. CONFIRMATION OF BALANCES/RECONCILIATION OF ACCOUNTS PERTAINING TO CERTAIN ADVANCES/CREDITORS/DEBTORS IS PENDING AS AT PERIOD END. HENCE, THE BALANCES HAVE BEEN ADOPTED AS PER THE BOOKS OF ACCOUNTS.

6. PREVIOUS YEARS FIGURES HAVE BEEN REGROUPED WHEREVER NECESSARY TO CONFORM TO CURRENT PERIODS CLASSIFICATION.

7. LOANS GRANTED UNDER HIRE-PURCHASE SCHEMES HAVE BECOME NONPERFORMING ASSETS, THE COMPANY HAS NOT RECOGNISED ANY INCOME ON SUCH LOANS IN TERMS OF PRUDENTIAL NORMS PRESCRIBED FOR NBFCS BY THE RBI.

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Mar 31, 2015

1. SEGMENT REPORTING:

The company is primarily engaged in the business of financing and investments and accordingly it is operating in a single segment of financing activities only.

2. Related Party Transactions:

As per Accounting Standard 18, the disclosure of transactions with related parties is given:

(i) List of Related Parties where control exists and related parties with whom transactions have taken place and their relationships:

3. The Company has recognised the deferred tax liability of Rs. 44,854/- during the year which arouse on account of timing difference of depreciation on fixed assets.

4. Loans and Advances include loan amount of Rs. 8,50,751/- (Previous year Rs. 8,50,751/-) due from M/s. India Roller Flour Mills, in which one of the erstwhile directors of the company is interested as a Partner in HUF capacity. 100% provision towards the loan has been made as per NBFC Prudential Norms as per RBI Regulations. However, the company is confident of recovery of the amount due to the company.

5. Loans granted under Hire-purchase schemes have become non-performing assets, the company has not recognized any income on such loans in terms of prudential norms prescribed for NBFCs by the RBI.

6. Previous figures have been regrouped wherever necessary to conform to the current year classifications.

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Mar 31, 2014

1. SEGMENT REPORTING:

The company is primarily engaged in the business of financing and investments and accordingly it is operating in a single segment of financing activities only.

2. Related Party Transactions:

As per Accounting Standard 18, the disclosure of transactions with related parties is given:

(i) List of Related Parties where control exists and related parties with whom transactions have taken place and their relationships:

3.Utilisation Of Proceeds Of Preferential Issue:

During the current year, the company had raised Rs.1,0,34,00,000/- by way of preferential issue of equity shares (including share premium) to be utilized to meet its various financing activities including lending and business operations and working capital requirements. As at March 31, 2014, the company had utilized the entire proceeds of the preferential issue, net of issue expenses in accordance with the objects stated at the time of preferential issue.

4. The Company has recognized the deferred tax liability of Rs.12,040/- during the year which arouse on account of timing difference of depreciation on fixed assets.

5. Loans and Advances include loan amount of Rs.8,50,751/- due from M/s. India Roller Flour Mills, in which one of the directors of the company is interested as a Partner in HUF capacity. 100% provision towards the loan has been made as per NBFC Prudential Norms as per RBI Regulations. However, the company is confident of recovery of the amount due to the company.

6. Loans granted under Hire-purchase schemes have become non-performing assets, the company has not recognized any income on such loans in terms of prudential norms prescribed for NBFCs by the RBI.

7. Previous figures have been regrouped wherever necessary to conform to the current year classifications.

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Mar 31, 2013

A. SEGMENT REPORTING:

The company is primarily engaged in the business of financing and investments and

b. As per accounting standard 17, the disclosure of transactions with related parties.

d. The company has recognized the deferred tax liability of Rs. 2,448/- during the year which arose on accounting of timing differences of depreciation on fixed assets

e. Loans and advances include loan amount of Rs. 8,50,751/-du from M/S. India Roller Flour mills, in which one of the directors of the company is interested as a partner in HUF capacity. 100% provision towards the loan has been made as per NBFC prudential Norms as per RBI Regulations. However, the company is confident of recovery of the amount due to the company.

f. Loans granted under Hire-purchase schemes have become non-performing assets, the company has not recognized any income on such loans in terms of prudential norms prescribed for NBFCs by the RBI.

g. Previous years figures have been regrouped whenever necessary to conform to current year classification.

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Mar 31, 2012

A. SEGMENT REPORTING:

The company is primarily engaged in the business of financing and investments.

b. RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosure of transactions with related parties (i) List of Related Parties where control exists and related parties with whom

Name Relationship

i. Rohit Gupta (HUF) Kartha is Director

Suresh Kumar Gupta (HUF) Kartha is Director

Suresh Kumar Gupta (individual) Director iv. Rohit Gupta (Individual) Director

ii. Deepak Gupta Director

a. the Company has unabsorbed depreciation and carried forwarded losses under the Income tax Act, 1961. In the absence of virtual certainty of sufficient future taxable income, deferred tax assets are not recognized.

b. Loans and Advances include loan amount of Rs. 8,50,751/- due from M/s. India Roller Flour Mills, in which one of the directors of the company is interested as a partner in HU F capacity. 100% provision towards the loan has been made as per NBFC Prudential Norms as per RBI Regulation. However, the company is confident of recovery of the amount due to the company.

c. Loans granted under Hire - purchase schemes have become non - performing assets, the company has not recognized any income on such loans in terms of prudential norms prescribed for NBFCs by the RBI.

d. Previous yer's figures have been regrouped wherever necessary to conform to current year classification.

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Mar 31, 2011

1. The Company is primarily engaged in the business of financing and accordingly there are no separate reportable segments as per Accounting Standard (AS17) - "Segment Reporting".

2. The "Related Party Disclosure" as required by the Accounting Standard IS (AS 18) is given as under.

3. The company has unabsorbed depreciation and carries forward losses under die Income Tax Act, 1961. In the absence of virtual certainty of sufficient future taxable income, net deferred tax assets are not recognized.

4. Previous years' figures have been re-arranged and re-grouped wherever found necessary.

5. Generator Repossessed during 1999-2000 is continued in books at its book value of Rs.642360. Assessment of its value is yet to be made and diminution/ impairment loss, if any would be accounted as and when made.

6. Loans and advances include loan amount of Rs.8, 50,751/- due from M/s. India Roller Flour Mills, Coimbatore in which one of the Directors is interested as a Partner in HUF capacity. 100% Provision towards the loan has been made as per NBFC Norms of RBI. However, the Company is confident of recovery of the same.

7. As the Hire Purchase Loans have become Non Performing, as a prudent measure, the Company has not recognized any interest income for the year ended 31.3.2011. 100% provision has been made in the accounts as per RBI NBFC Norms.

8. The Board of Directors confirms that the value of other current assets and loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

9. Particulars in respect of stock-in-trade:

(Securities quoted/valued at cost or market value whichever is lower):