1 Corporate Information
Inditrade Capital Limited (“the Company”) was incorporated on 17 October 1994. During 2018-19, the company had sold its
principal operating business of equity broking. The company continues to hold investments in subsidiaries and associate
engaged in various businesses.
2 Basis of preparation and presentation
a. Statement of compliance
The financial statements of the company have been prepared in accordance with Indian Accounting Standards (‘Ind AS’)
notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time ('Ind AS Rules') and
notified under Section 133 of the Companies Act, 2013 (the ‘Act’) and other relevant provisions of the Act.
The financial statements have been prepared under the historical cost convention, as modified by the application of fair
value measurements required or allowed by relevant Accounting Standards. Accounting policies have been consistently
applied to all periods presented, unless otherwise stated. The preparation of financial statements requires the use of certain
critical accounting estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses
and the disclosed amount of contingent liabilities.
The financial statements were authorised for issue by the Company’s Board of Directors on 21-08-2025
b. Functional and presentation currency
These financial statements are presented in Indian Rupees (INR), which is also the Company’s functional currency. All
amounts are presented in lacs, unless otherwise indicated.
c. Presentation of financial statements
These financial statements have been presented in accordance with the format prescribed for Non-Banking Finance
Companies under the Companies (Indian Accounting Standards) Rules, 2015, in division III of Notification no. GSR. 1022 (E)
dated 11 th October 2018, issued by Ministry of Corporate Affairs, Government of India.
The Company presents its balance sheet in order of liquidity. An analysis regarding recovery or settlement within 12 months
after the reporting date (current) and more than 12 months after the reporting date (non- current) is presented in notes to
the financial statements. Financial assets and financial liabilities are generally reported gross in the balance sheet. They are
only offset and reported net when, in addition to having an unconditional legally enforceable right to offset the recognised
amounts without being contingent on a future event, the parties also intend to settle on a net basis in all of the following
circumstances:
• The normal course of business
• The event of default
• The event of insolvency or bankruptcy of the Company and/or its counterparties
d. Critical accounting estimates and judgements
The preparation of the Company’s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying disclosures,
as well as the disclosure of contingent liabilities. The estimates used in the accompanying financial statements are based
upon management’s evaluation of the relevant facts and circumstances as on the date of the financial statements. Actual
results could differ from estimates. Any revision to the accounting estimates is recognised prospectively in the current and
future periods. In particular, information about significant areas of estimation, uncertainty and critical judgments in
applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is
given below:
>> Business model assessment
Classification and measurement of financial assets depends on the results of the SPPI and the business model test. The
Company determines the business model at a level that reflects how groups of financial assets are managed together to
achieve a particular business objective. This assessment includes judgement reflecting all relevant evidence including how
the performance of the assets is evaluated and their performance measured, the risks that affect the performance of the
assets and how these are managed and how the managers of the assets are compensated. The Company monitors financial
assets measured at amortised cost or fair value through other comprehensive income that are derecognised prior to their
maturity to understand the reason for their disposal and whether the reasons are consistent with the objective of the
business for which the asset was held. Monitoring is part of the Company’s continuous assessment of whether the business
model for which the remaining financial assets are held continues to be appropriate and if it is not appropriate whether
there has been a change in business model and so a prospective change to the classification of those assets
>> Fair value of financial instruments
The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction in the principal (or most advantageous) market at the measurement date under current market
conditions (i.e., an exit price) regardless of whether that price is directly observable or estimated using another valuation
technique. When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be derived
from active markets, they are determined using a variety of valuation techniques that include the use of valuation models.
The inputs to these models are taken from observable markets where possible, but where this is not feasible, estimation is
required in establishing fair values. Judgements and estimates include considerations of liquidity and model inputs related to
items such as credit risk (both own and counterparty), funding value adjustments, correlation and volatility. For further
details about determination of fair value please see Fair value note in accounting policy.
>> Impairment of financial asset
The measurement of impairment losses across all categories of financial assets requires judgement, in particular, the
estimation of the amount and timing of future cash flows and collateral values when determining impairment losses and the
assessment of a significant increase in credit risk. These estimates are driven by a number of factors, changes in which can
result in different levels of allowances.
It has been the Company’s policy to regularly review its models in the context of actual loss experience and adjust when
necessary.
>> Provisions and liabilities:
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds
resulting from past operations or events that can reasonably be estimated. The timing of recognition requires application of
judgement to existing facts and circumstances which may be subject to change. The amounts are determined by discounting
the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and
the risks specific to the liability.
e. Uncertainty on account of Covid-19 pandemic
The COVID -19 pandemic has spread across the globe and in India, contributing to significant volatility in global and Indian
financial markets and a significant decrease in global and local economic activities. Since March 2020, this has resulted in
imposition of lockdown at various points in times. The roll out of vaccination and decrease in incidence of in active cases
recently has resulted in lifting of restrictions. However, the extent to which the COVID-19 pandemic will further impact the
Company's operations and financial results will depend on future developments, which are highly uncertain, including, among
other things, any new information concerning the severity of the COVID-19 pandemic and any action to contain its spread or
mitigate its impact whether government-mandated or elected by the Company. As a result of the uncertainties in macro
economic condition, the impact of the global health pandemic may be different from that estimated as at the date of
approval of these financial results. The Company will continue to closely monitor any material changes to future economic
conditions.
3 Significant Accounting Policies
The significant accounting policies applied in preparation of the financial statements are as given below:
3.1 Financial Instruments
3.1.1 Financial Assets
A. Initial recognition and measurement
All financial assets are recognized initially at fair value, which is normally the transaction price. Transaction costs that are
directly attributable to the acquisition of financial assets (other than financial assets at fair value through Statement of
Profit or Loss (‘FVTPL’)) are added to the fair value of the financial assets, on initial recognition. Such transaction cost
includes all fees paid or received between parties to the contract that would not have been incurred if the entity had not
acquired the financial asset. Transaction costs directly attributable to the acquisition of financial assets at FVTPL are
recognized immediately in Statement of Profit and Loss.
B. Subsequent Measurement
For purposes of subsequent measurement, financial assets are classified in three categories:
a) Financial assets measured at amortized cost
b) Financial assets measured at fair value through other comprehensive income (FVTOCI);
c) Financial assets measured at fair value through profit or loss (FVTPL);
The classification depends on the contractual terms of the financial assets’ cash flows and the company’s business model for
managing financial assets.
Business model assessment
The Company determines its business model at the level that best reflects how it manages company’s financial assets to
achieve its business objective.
The Company's business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated
portfolios and is based on observable factors such as:
• How the performance of the business model and the financial assets held within that business model are evaluated and
reported to the entity's key management personnel
• The risks that affect the performance of the business model (and the financial assets held within that business model) and,
in particular, the way those risks are managed
• How managers of the business are compensated (for example, whether the compensation is based on the fair value of the
assets managed or on the contractual cash flows collected)
• The expected frequency, value and timing of sales are also important aspects of the Company’s assessment.
The business model assessment is based on reasonably expected scenarios without taking 'worst case' or 'stress case’
scenarios into account. If cash flows after initial recognition are realised in a way that is different from the Company's
original expectations, the Company does not change the classification of the remaining financial assets held in that business
model, but incorporates such information when assessing newly originated or newly purchased financial assets going forward.
The Solely Payments of Principal and Interest (‘SPPI’) test
As a second step of its classification process the Company assesses the contractual terms of financial to identify whether
they meet the SPPI test.
‘Principal’ for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change
over the life of the financial asset (for example, if there are repayments of principal or amortisation of the
premium/discount).
The most significant elements of interest within a lending arrangement are typically the consideration for the time value of
money and credit risk. To make the SPPI assessment, the Company applies judgement and considers relevant factors such as
the currency in which the financial asset is denominated, and the period for which the interest rate is set.
a) Financial assets measured at amortized cost
Financial assets are measured at amortized cost if both the following conditions are met:
• Contractual terms of the asset give rise to cash flows on specified dates, that represent Solely Payments of Principal and
Interest on the principal amount outstanding (‘SPPI’); and
• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows.
Effective Interest Rate (EIR) Method
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest
rate (EIR) method. Interest income is recognized by applying the effective interest rate to the gross carrying amount of
financial assets other than in case of credit-impaired financial assets where EIR is applied to the amortised cost i.e. gross
carrying amount of financial assets less provision for impairment.
The EIR is computed:
a. As the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
gross carrying amount of a financial asset.
b. By considering all the contractual terms of the financial instrument in estimating the cash flows
c. Including all fees received between parties to the contract that are an integral part of the effective interest rate,
transaction costs, and all other premiums or discounts.
Any subsequent changes in the estimation of the future cash flow are recognised in interest income with the corresponding
adjustment to the carrying amount of the assets.
b) Financial assets measured at fair value through other comprehensive income (FVTOCI)
Debt Instruments
Financial assets are measured at FVTOCI if both of the following criteria are met:
• Contractual terms of the asset give rise to cash flows on specified dates, that represent Solely Payments of Principal and
Interest on the principal amount outstanding (‘SPPI’); and
• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows as well as
selling the asset.
Financial assets included within the FVTOCI category are measured initially as well as at each reporting date at fair value.
Fair value movements are recognized in the other comprehensive income (OCI). Upon disposal, the cumulative gain or loss
previously recognized in OCI is reclassified from equity to the statement of profit and loss.
Equity Instruments
Investment in equity instruments that are neither held for trading nor contingent consideration recognised by the Company
in a business combination to which Ind AS 103 ‘Business Combination’ applies, are measured at fair value through other
comprehensive income, where an irrevocable election has been made by management and when such instruments meet the
definition of Equity under Ind AS 32 Financial Instruments: Presentation. Such classification is determined on an instrument-
by-instrument basis.
Amounts presented in other comprehensive income are not subsequently transferred to the statement of profit and loss.
Dividends on such investments are recognised in the statement of profit and loss.
c) Financial assets measured at fair value through profit or loss (FVTPL)
Any financial asset, which does not meet the criteria for categorization as at amortized cost or as at FVTOCI is classified as
at FVTPL. Financial assets included within the FVTPL category are measured at fair value and all changes thereto and
transaction costs are recognized in the statement of profit and loss.
Financial instruments held for trading
A financial instrument is classified as held for trading if it is acquired or incurred principally for selling or repurchasing in the
near term, or forms part of a portfolio of financial instruments that are managed together and for which there is evidence of
short-term profit taking.
d) Equity Investment in Subsidiaries and Associates
Investment in subsidiaries and associates are carried at Cost in the Separate Financial Statements as permitted under Ind AS
27 and 28 respectively.
C. De-recognition of financial assets
De-recognition of financial assets due to substantial modification of terms and conditions:
The Company derecognises a financial asset, such as a loan to customer, when the terms and conditions have been
renegotiated to the extent that, substantially, it becomes a new loan, with the difference recognised as a de-recognition
gain or loss, net of impairment loss, if any, already recorded. The newly recognised loans are classified as Stage 1 for ECL
measurement purposes. Based on the change in cash flows discounted at the original EIR, the Company records a
modification gain or loss, net of impairment loss, if any, already recorded.
De-recognition of financial assets other than due to substantial modification of terms and conditions:
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
derecognised when the rights to receive cash flows from the financial asset have expired.
The Company also derecognises the financial asset if it has transferred the financial asset and the transfer qualifies for de¬
recognition.
D. Impairment of Financial assets
The Company assesses at the end of each reporting period whether a financial asset or a group of financial assets is impaired
and determines the expected credit losses. Equity instruments are not subject to impairment under Ind AS 109.
Expected credit loss (ECL) assessment
The Company records allowance for expected credit losses for all loans, other debt financial assets, together with financial
guarantee contracts.
The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit
loss), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on
the 12 months’ expected credit loss.
Write-offs
The Company reduces the gross carrying amount of a financial asset when the Company has no reasonable expectations of
recovering a financial asset in its entirety or a portion thereof. This is generally the case when the Company determines that
the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts
subjected to write-offs. Any subsequent recoveries against such loans are credited to the statement of profit and loss.
3.1.2 Financial liabilities
A. Initial recognition and measurement:
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings, net of directly
attributable transaction costs.
B. Subsequent measurement:
The measurement of financial liabilities depends on their classification, as described below:
Loans and borrowings:
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
Effective Interest Rate (EIR) method. Gains and losses are recognized in profit or loss when the liabilities are de-recognised
as well as through the EIR amortization process. Amortised cost is calculated by taking into account any discount or premium
on acquisition and processing fees or sourcing costs that are an integral part of the EIR. The EIR amortization is included as
finance costs in the statement of profit and loss.
Trade and other payables:
These amounts represent liabilities for goods or services provided to the Company which are unpaid at the end of the
reporting period. Trade and other payables falling due within a period of 12 months are presented at its carrying amounts as
it approximates fair value due to the short maturity of these instruments. Other payables falling due after 12 months from
the end of the reporting period are measured and presented at amortised cost unless designated as fair value through profit
and loss at the inception.
Financial liabilities measured at fair value through profit or loss:
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. Gains or losses on liabilities held for trading or
designated as at FVTPL are recognized in the profit or loss.
C. De-recognition of financial liabilities:
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expired. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or Modification is treated as the de-recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the
statement of profit or loss.
3.1.3 Offsetting
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the
assets and settle the liabilities simultaneously.
3.2 Property, plant and equipment
Property plant and equipment is stated at cost excluding the costs of day-to-day servicing, less accumulated depreciation
and accumulated impairment in value. Changes in the expected useful life are accounted for by changing the amortisation
period or methodology, as appropriate, and treated as changes in accounting estimates.
Depreciation is calculated using the straight-line method to write down the cost of property and equipment to their residual
values over their estimated useful lives. Land is not depreciated.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.
Property plant and equipment is de-recognised on disposal or when no future economic benefits are expected from its use.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and
the carrying amount of the asset) is recognised in other income / expense in the statement of profit and loss in the year the
asset is derecognised. The date of disposal of an item of property, plant and equipment is the date the recipient obtains
control of that item in accordance with the requirements for determining when a performance obligation is satisfied in Ind
AS 115.
3.3 Intangible assets
The Company’s other intangible assets mainly include the value of computer software. An intangible asset is recognised only
when its cost can be measured reliably and it is probable that the expected future economic benefits that are attributable to
it will flow to the Company. Intangible assets acquired separately are measured on initial recognition at cost. Subsequently,
they are carried at cost less accumulated amortisation and impairment losses if any, and are amortised over their estimated
useful life on the straight line basis over a 5 year period or the license period whichever is lower.
The carrying amount of the assets is reviewed at each Balance sheet date to ascertain impairment based on internal or
external factors. Impairment is recognised, if the carrying value exceeds the higher of the net selling price of the assets and
its value in use.
As per schedule II of companies act 2013, earlier useful life determined as per board was 3 years for computer software
which includes software for distribution platform, Trade mark & Rights and Software cost. During the financial year 2024-25,
board revised the estimation of useful life in board meeting held on 31st January 2024 by further 3 years and revised total
estimated useful life is 5 years and 3 months.
Useful life of assets as per Schedule II:
3.4 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 from the date of acquisition, highly liquid instruments that are readily convertible into
known amounts of cash and which are subject to an insignificant risk of changes in value.
3.5 Leases
Leases are recognized, measured and presented in accordance with IND AS 116 “Leases”.
The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-
of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short¬
term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the
Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless
another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are
consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its
incremental borrowing rate.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease
transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to
exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The
depreciation starts at the commencement date of the lease.
3.6 Impairment of non-financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable
amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of
disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or Group of assets. When the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair
value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an
appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for
publicly traded companies or other available fair value indicators.
The company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately
for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations
generally cover a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future
cash flows after the fifth year. To estimate cash flow projections beyond periods covered by the most recent
budgets/forecasts, the Company extrapolates cash flow projections in the budget using a steady or declining growth rate for
subsequent years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term
average growth rate for the products, industries, or country or countries in which the entity operates, or for the market in
which the asset is used.
Impairment losses of continuing operations, are recognised in the statement of profit and loss.
For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that
previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates
the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change
in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The
reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying
amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior
years. Such reversal is recognised in the statement of profit or loss unless the asset is carried at a revalued amount, in which
case, the reversal is treated as a revaluation increase.
3.7 Revenue Recognition
Revenue (other than for those items to which Ind AS 109 Financial Instruments are applicable) is measured at fair value of
the consideration received or receivable.
Income from other non-financing activity is recognised as per the terms of the respective contract on accrual basis provided
that it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably.
Dividend income from investments is recognised when the shareholder’s right to receive payment has been established.
3.8 Employee benefits
Short term employee benefit Plans
All short term employee benefit plans such as salaries, wages, bonus, special awards and medical benefits, which fall due
within 12 months of the period in which the employee renders the related service, which entitles him to avail such benefits
are recognised on an undiscounted basis, and charged to the statement of profit and loss.
Defined Contribution Plans
Contribution to prov'dent funds are made monthly at a predetermined rate to the regional prov'dent fund commissioner and
debited to the statement of profit and loss.
Defined Benefit Plans
Prov'sion is made for gratuity based on actuarial valuation, carried out by an independent actuary as at the balance sheet
date using the projected unit credit method. Re-measurement, comprising actuarial gains and losses, the effect of the
changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the
statement of financial position with a charge or credit recognised in other comprehensive income in the period in which they
occur.
3.9 Taxes
Current tax
Current tax is provided using the tax rates and laws that have been enacted or substantively enacted by the reporting date
and includes any adjustment to tax payable in respect of prev'ous years. Current tax is generally recognized in the statement
of profit and loss.
Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences, except when the Deferred Tax Liability arises from the initial recognition of
goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised.
The carrying amount of deferred tax assets is rev'ewed at the end of each reporting date and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Unrecognised Deferred Tax assets are re-assessed at each reporting date and are recognized to the extent that it has
become probable that future taxable profits will allow the Deferred Tax Asset to be recovered.
Deferred tax assets and liabilities are measured at each reporting date at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
Current and deferred tax are recognised in the statement of profit and loss, except when they are related to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also
recognized in other comprehensive income or directly in equity respectively.
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