Nikki Global Finance Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

About the Company:

Nikki Global (CIN No L65999DL1986PLC024493) registered under ROC Delhi incorporated on 13/06/1986. Nikki Global Finance Limited is a comprehensive credit institution that provides a wide range of diversified debt products. Nikki global was incorporated as a high standard credit institution that helps in leveraging the experience of comprehensive practices and local economic development to meet and greet the ever-increasing credit requirements of Indian corporates and individuals. The company is registered under section 45-IA of RBI Act,1934, which is not having CoR classified as NBFC-ICC).

Basis of preparation

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed in the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and notified under section 133 of the Companies Act, 2013 (the Act) along with other relevant provisions of the Act, the updated Master Direction - Non-Banking Financial Company -Systemically Important Non Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 (‘the NBFC Master Directions’), notification for Implementation of Indian Accounting Standards issued by RBI vide circular RBI/2019-20/170 DOR(NBFC).CC.PD.No.109/22.10.106/2019-20 dated 13 March 2020 (‘RBI notification for Implementation of Ind AS’) and other applicable RBI circulars/notifications. The Company uses accrual basis of accounting in preparation of financial statements except in case of significant uncertainties. The standalone financial statements are presented in Indian Rupee (INR), which is also the functional currency of the Company. The standalone financial statements have been prepared on a historical cost basis, except for certain financial instruments that are measured at fair value. The financial statements are prepared on a going concern basis as the Management is satisfied that the Company shall be able to continue its business for the foreseeable future and no material uncertainty exists that may cast significant doubt on the going concern assumption. In making this assessment, the Management has considered a wide range of information relating to present and future conditions, including future projections of profitability, cash flows and capital resources.

Presentation of financial statements:

The Company presents its Balance Sheet in the order of liquidity. The Company prepares and presents its Balance Sheet, the Statement of Profit and Loss and the Statement of Changes in Equity in the format prescribed by Division III of Schedule III to the Act. The Statement of Cash Flows has been prepared and presented as per the requirements of Ind AS 7 ''Statement of Cash Flows''. The Company generally reports financial assets and financial liabilities on a gross basis in the Balance Sheet. They are offset and reported net only where it has legally enforceable right to offset the recognized amounts and the Company intends to either settle on a net basis or to realize the asset and settle the liability simultaneously as permitted by Ind AS. Similarly, the Company offsets incomes and expenses and reports the same on a net basis where the netting off reflects the substance of the transaction or other events as permitted by Ind AS.

Summary of significant accounting policies:

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.

i) Revenue from Operations:

The Company recognizes revenue from contracts with customers (other than financial assets to which Ind AS 109 ''Financial instruments'' is applicable) based on a comprehensive assessment model as set out in Ind AS 115 ''Revenue from contracts with customers''. The Company identifies contract(s) with a customer and its performance obligations under the contract, determines the transaction price and its allocation to the performance obligations in the contract and recognizes revenue only on satisfactory completion of performance obligations. Revenue is recognized at transaction price is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract. Revenue in case of non-cash consideration is recognized at fair value.

Dividend income on equity shares is recognized when the Company’s right to receive the payment is established, which is generally when shareholders approve the dividend.

Income on non-performing assets is recognized in accordance with the provisions of Prudential Norms for Income Recognition prescribed by the Reserve Bank of India and is accounted for in the year of realization.

ii) Current versus non-current classification:

The company presents assets and liabilities in the balance sheet based on current/ noncurrent classification. An asset is treated as current when it satisfies any of the following criteria:

• Expected to be realized or intended to be sold or consumed within normal operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realized within twelve months after the reporting date, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle liability for at least twelve months after the reporting date. A liability is treated as current when it satisfies any of the following criteria:

• Expected to be settled in the company’s normal operating cycle;

• Held primarily for the purpose of trading;

• Due to be settled within twelve months after the reporting date; or

• The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

• Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments does not affect its classification. Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as noncurrent.

The Company has ascertained its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.

iii) Use of Estimates and management judgements

The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management of the company to make judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets, liabilities and related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date. The estimates and management’s judgements are based on previous experience and other factors considered reasonable and prudent in the circumstances. Actual results may differ from these estimates.

iv) Property, Plant & Equipment & Capital work in Progress

Recognition and measurement Property, plant and equipment are tangible items that are held for use in the production or supply for goods and services, rental to others or for administrative purposes and are expected to be used for more than one period. The cost of an item of property, plant and equipment is being recognized as an asset if and only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The PPE has been stated at cost less accumulated depreciation.

Intangible assets are recognized when it is probable that the future benefits that are attributable to the assets will flow to the Company and the cost of the assets can be measured reliably. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

Depreciation has been provided on WDV Basis Method.

v) Inventories:

The inventories of shares & securities have been valued at lower of cost price or market value as at 31st March, 2025.

vi) Revenue recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Interest -

Income Interest income from a financial asset is recognized when it is probable that the economic benefit will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

Dividend Income -

Dividend income is recognized when the Company’s right to receive the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured reliably i.e. in case of interim dividend, on the date of declaration by the Board of Directors; whereas in case of final dividend, on the date of approval by the shareholders.

vii) Expenses: All expenses are accounted for on accrual basis.

viii) Financial Instruments

Financial Asset Classification The company classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and contractual cash flow characteristics of the financial asset.

Initial Recognition and Measurement: All financial assets are recognized initially at fair value, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. The financial assets include equity and debt securities, trade and other receivables, loans and advances, cash and bank balances and derivative financial instruments.

Equity Investments: All the investments have been valued at deemed cost. (Note No. 5 to the financial statements

Loans: Loans have been carried at amortized cost. (Note No. 4 to the financial statements).

ix) Financial liabilities: Classification Debt and equity instruments issued by the company are classified as either financial liabilities or as equity in accordance with the substance of the contractual agreements and the definitions of financial liability and equity instrument.

Initial recognition and measurement: The company recognizes financial liability when it becomes a party to the contractual provision of the instrument. All financial liabilities are recognized initially at fair value, for financial liability not subsequently measured at FVTPL, at transaction costs that are directly attributable to the issue of financial liability.

Loans: Other loans classified under financial liability have been carried at amortized cost. (Note no. 13 to the financial statements).

x) Others:

a. Loans and advances are stated net of provisions for non-performing advances. Balances of various parties are subject to confirmations.

b. The company has not entered into any lease agreement, therefore, provisions of Indian Accounting Standard-116 on ‘Leases’ are not applicable.

c. To the extent information available, there were no outstanding dues towards small scale or ancillary undertaking as on 31.03.2025.

d. During the year under consideration no borrowing cost has capitalized by the company in accordance with the Indian Accounting Standard 23. ‘Borrowing Costs’ issued by the Institute of Chartered Accountants of India.

e. The advance received or given is without any stipulation of board of directors regarding them in nature and period for which they are given or received.

xi) Taxes: Provision for tax on income for the year (i.e. Current tax) is made after considering the

various Deductions/relieves admissible under the Income Tax Act 1961 as per the normal provisions of the act. Deferred tax assets are recognized as per the conservative approach. Keeping in view the current year losses of the company, net deferred tax liabilities have not been recognized in accordance with Indian Accounting Standard IND AS-12- “Accounting for taxes on income” issued by the Institute of Chartered Accountants of India”.

xii) Provisions: Provisions are recognized when the Company has a present obligation (legal or constructive) 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 a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit or loss net of any reimbursement. Provisions are not recognized for future operating losses 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 recognized as a finance cost.

Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. As mentioned in the notes to account no. 38, the management has stated an amount of Rs. 42.11 lakhs as contingent liability.

Contingent asset is not recognized but disclosed, when possible, asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

xiii) Cash flows are stated using the indirect method, whereby profit/loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of incomes and expenses associated with investing or financing flows. The cash flows from operating, investing and financing activities of the Company are segregated.

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Mar 31, 2024

Summary of Significant Accounting Policies:

This note provides a comprehensive list of the significant accounting policies adopted in the preparation
of these financial statements. These policies have been consistently applied to all the years presented,
unless otherwise stated.

i) Revenue from Operations:

Revenue is recognized based on Ind AS 115, which involves identifying contracts with customers,
determining the transaction price, allocating it to performance obligations, and recognizing revenue upon
completion of these obligations. Revenue is recorded net of variable considerations like discounts and
schemes. Non-cash consideration is recognized at fair value.

Dividend income is recognized when the company''s right to receive payment is established.

Income on non-performing assets is recognized based on the Reserve Bank of India''s Prudential Norms and
accounted for in the year of realization.

ii) Current versus Non-current Classification:

The company presents assets and liabilities in the balance sheet based on current/ noncurrent
classification. An asset is treated as current when it satisfies any of the following criteria:

• Expected to be realized or intended to be sold or consumed within normal operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realized within twelve months after the reporting date, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle liability for at least
twelve months after the reporting date. A liability is treated as current when it satisfies any of the
following criteria:

• Expected to be settled in the company’s normal operating cycle;

• Held primarily for the purpose of trading;

• Due to be settled within twelve months after the reporting date; or

• The Company does not have an unconditional right to defer settlement of the liability for at least
twelve months after the reporting date.

• Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue
of equity instruments does not affect its classification. Current liabilities include the current portion
of non-current financial liabilities. All other liabilities are classified as noncurrent.

The Company has ascertained its operating cycle as twelve months for the purpose of current and non¬
current classification of assets and liabilities.

iii) Use of Estimates and Management Judgements:

The preparation of financial statements requires management to make judgements, estimates, and
assumptions affecting the reported amounts of revenues, expenses, assets, liabilities, and disclosures. These
are based on historical experience and other factors considered reasonable. Actual results may differ from
these estimates.

iv) Property, Plant & Equipment & Capital Work in Progress:

Recognition and measurement Property, plant and equipment are tangible items that are held for use in the
production or supply for goods and services, rental to others or for administrative purposes and are expected
to be used for more than one period. The cost of an item of property, plant and equipment is being
recognized as an asset if and only if it is probable that future economic benefits associated with the item
will flow to the Company and the cost of the item can be measured reliably. The PPE has been stated at
cost less accumulated depreciation.

Intangible assets are recognized when it is probable that the future benefits that are attributable to the assets
will flow to the Company and the cost of the assets can be measured reliably. Intangible assets acquired
separately are measured on initial recognition at cost.

Following initial recognition, intangible assets are carried at cost less accumulated amortization and
accumulated impairment losses, if any.

Depreciation has been provided on WDV Basis Method

v) Inventories:

• Inventories of shares and securities are valued at the lower of cost or market value as of March 31,
2024.

vi) Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured.

Interest -

Income Interest income from a financial asset is recognized when it is probable that the economic
benefit will flow to the Company and the amount of income can be measured reliably. Interest
income is accrued on a time basis, by reference to the principal outstandingand at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that asset’s net carrying amount on initial
recognition.

Dividend Income -

Dividend income is recognized when the Company’s right to receive the dividend is established, it
is probable that the economic benefits associated with the dividend will flow to the entity and the
amount of the dividend can be measured reliably i.e. in case of interim dividend, on the date of
declaration by the Board of Directors; whereas in case of final dividend, on the date of approval by
the shareholders..

vii) Expenses: All expenses are accounted for on an accrual basis.

viii) Financial Instruments:

Financial Asset Classification The company classifies financial assets as subsequently measured at
amortized cost, fair value through other comprehensive income or fair value through profit or loss on the
basis of its business model for managing the financial assets and contractual cash flow characteristics of
the financial asset

Initial Recognition and Measurement: All financial assets are recognized initially at fair value, in the case
of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to
the acquisition of the financial asset. The financial assets include equity and debt securities, trade and other
receivables, loans and advances, cash and bank balances and derivative financial instruments.

Equity Investments: All the investments have been valued at deemed cost. (Note No. 5 to the financial
statements

Loans: Loans have been carried at amortized cost. (Note No. 4 to the financial statements)

ix) Financial Liabilities:

Classification Debt and equity instruments issued by the company are classified as either financial liabilities
or as equity in accordance with the substance of the contractual agreements and the definitions of financial
liability and equity instrument.

Initial recognition and measurement: The company recognizes financial liability when it becomes a party
to the contractual provision of the instrument. All financial liabilities are recognized initially at fair value,
for financial liability not subsequently measured at FVTPL, at transaction costs that are directly attributable
to the issue of financial liability.

Loans: Other loans classified under financial liability have been carried at amortized cost.

(Note no. 13 to the financial statements).

x) Other:

a) Loans and advances are stated net of provisions for non-performing advances.

b) Balances of various parties are subject to confirmations.

c) The company has not entered into any lease agreement, therefore, provisions of Indian Accounting
Standard-116 on ‘Leases’ are not applicable.

d) To the extent information available, there were no outstanding dues towards small
scale or ancillary undertaking as on 31.03.2024.

e) During the year under consideration no borrowing cost’ has capitalized by the company in accordance with
the Indian Accounting Standard 23. ‘Borrowing Costs’ issued by the Institute of Chartered Accountants of
India.

f) The advance received or given is without any stipulation of board of directors regarding them in
nature and period for which they are given or received.

xi) Taxes:

Provision for tax on income for the year (i.e. Current tax) is made after considering the various
Deductions/relieves admissible under the Income Tax Act 1961 as per the normal provisions of the act.
Deferred tax assets are recognized as per the conservative approach. Keeping in view the current year
losses of the company, net deferred tax liabilities have not been recognized in accordance with Indian
Accounting Standard IND AS-12- “Accounting for taxes on income” issued by the Institute of Chartered
Accountants of India”.

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Mar 31, 2015

(a) System of Accounting and Revenue Recognition

(i) Accounts are prepared under historical cost convention in accordance with applicable mandatory Accounting Standards referred to in Section 133 of the Companies Act, 2013.

(ii) Income on non-performing assets is recognized in accordance with the provisions of Prudential Norms for Income Recognition prescribed by the Reserve Bank of India and is accounted for in the year of realization.

(iii) Profit / (Losses) on sale of investments are recognized on trade date on First in First out basis.

(iv) Dividend on shares is accounted for as and when received.

(v) Loans and advances are stated net of provisions for non-performing advances. Balances of various parties are subject to confirmations.

(vi) Other Income and expenses are accounted for on accrual basis.

(vii) The inventories of shares & securities have been valued at market value as at 31st March,2015

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation

The depreciation has been provided on WDV method at the rates provided in Schedule II of the Companies Act, 2013 on pro-rata basis.

(d) Investments

(i) The investments is categorized into 'Non- Current'.

(ii) Investments are valued at cost. Provision for diminution in the value of investment, if any, is made if the Decline in value is of permanent nature.

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Mar 31, 2014

(a) System of Accounting and Revenue Recognition

(i) Accounts are prepared under historical cost convention in accordance with applicable mandatory Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

(ii) Income on non-performing assets is recognized in accordance with the provisions of Prudential Norms for Income Recognition prescribed by the Reserve Bank of India and is accounted for in the year of realization.

(iii) Profit / (Losses) on sale of investments are recognized on trade date on First in First out basis.

(iv) Dividend on shares is accounted for as and when received.

(v) Loans and advances are stated net of provisions for non-performing advances. Balances of various parties are subject to confirmations.

(vi) Other Income and expenses are accounted for on accrual basis.

(vii) The inventories of shares & securities have been valued at market value as at 31st March.

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation

The depreciation has been provided on WDV method at the rates provided in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

(d) Investments

(i) The investments is categorized into ''Non- Current''.

(ii) Investments are valued at cost. Provision for diminution in the value of investment, if any, is made if the Decline in value is of permanent nature.

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Mar 31, 2013

(a) System of Accounting and Revenue Recognition

(i) Accounts are prepared under historical cost convention in accordance with applicable mandatory Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

(ii) Income on non-performing assets is recognized in accordance with the provisions of Prudential Norms for Income Recognition prescribed by the Reserve Bank of India and is accounted for in the year of realization.

(iii) Profit / (Losses) on sale of investments are recognized on trade date on First in First out basis.

(iv) Dividend on shares is accounted for as and when received.

(v) Loans and advances are stated net of provisions for non-performing advances. Balances of various parties are subject to confirmations.

(vi) Other Income and expenses are accounted for on accrual basis.

(vii) The inventories of shares & securities have been valued at cost or market value which ever is lower.

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation

The depreciation has been provided on WDV method at the rates provided in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

(d) Investments

(i) The investments is categorized into ''Non-Current''.

(ii) Investments are valued at cost. Provision for diminution in the value of investment, if any, is made if the Decline in value is of permanent nature.

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Mar 31, 2012

(a) System of Accounting and Revenue Recognition

(i) Accounts are prepared under historical cost convention in accordance with applicable mandatory accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

(ii) Income on non-performing assets is recognized in accordance with the provisions of Prudential Norms for Income Recognition prescribed by the Reserve Bank of India and is accounted for in the year of realization.

(iii) Profit / (Losses) on sale of investments are recognized on trade date on First in First out basis.

(iv) Dividend on shares is accounted for as and when received.

(v) Loans and advances are stated net of provisions for non-performing advances. Balances of various parties are subject to confirmations.

(vi) Other Income and expenses are accounted for on accrual basis.

(vii) The inventories of shares & securities have been valued at cost or market value which ever is lower.

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation

The depreciation has been provided on WDV method at the rates provided in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

(d) Investments

(i) The investments is categorized into 'Non- Current'.

(ii) Investments are valued at cost. Provision for diminution in the value of investment, if any, is made if the decline in value is of permanent nature.

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Mar 31, 2009

(a) System of Accounting and Revenue Recognition

(i) Accounts are prepared under historical cost convention in accordance with applicable mandatory accounting standards referred to in Section 211(3C) of the Companies Act, 1953.

(ii) Income on non-performing assets is recognized in accordance with the provisions of Prudential Norms for Income Recognition prescribed by the Reserve Bank of India and is accounted for in the year of realization.

(iii) Profit/(Losses) on sale of investments are recognized on trade date on First in First out basis.

(iv) Dividend on shares is accounted for as and when received.

(v) Loans and advances are stated net of provisions for non-performing advances.

(vi) Other Income and expenses are accounted for on accrual basis.

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation

The depreciation has been provided on straight line method at the rates provided in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

(d) Investments

(i) The investments are categorized into Current and Long Term.

(ii) Long Term Investments are valued at cost. Provision for diminution in the value of investment, if any, is made if the decline in value is of permanent nature.

(iii) Current Investments, i.e., the investments which are not intended to be held for more than one year, arecarried at lower of cost or market value determined by the category of investment. Resultant shortfall, if any, in the book value as compared to market value of investments in each category, is charged to revenue.