(i) Statement of Compliance
“The Financial Statements of the Company
have been prepared in accordance with
Indian Accounting Standards (Ind AS) as per
Companies (Indian Accounting Standards)
Rules 2015 as amended and notified under
Section 133 of the Companies Act, 2013 (“the
act”) in conformity other accounting principles
generally accepted in India and issued by the
Institute of Chartered Accountants of India.
In addition, the guidance note/announcements
issued by Institute of Chartered Accountants
of India are also applied along with
compliance with the other statutory
promulgations require a different treatment.
The financial statements for the year ended
March 31, 2025 of the Company is prepared in
compliance with Ind AS.”
(ii) Basis of preparation
“The financial statements have been prepared
on the historical cost basis except for certain
financial assets and liabilities that are measured
at fair values at the end of each reporting period.
Fair value measurements under Ind AS are
categorised into Level 1,2, or 3 based on the degree
to which the inputs to the fair value measurements
are observable and the significance of the inputs
to the fair value measurement in its entirety, which
are described as follows:
• Level 1 inputs are quoted prices (unadjusted)
in active markets for identical assets or
liabilities that the Company can access at
reporting date.
• Level 2 inputs are inputs, other than quoted
prices included within level 1, that are
observable for the asset or liability, either
directly or indirectly; and
• Level 3 inputs are unobservable inputs for
the valuation of assets or liabilities”
(iii) Presentation of financial statements:
“The Balance Sheet and the Statement of Profit
and Loss are prepared and presented in the
format prescribed in the Schedule III to the
Companies Act, 2013 (“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 disclosure requirements
with respect to items in the Balance Sheet and
Statement of Profit and Loss, as prescribed
in the Schedule III to the Act, are presented
by way of notes forming part of the financial
statements along with the other notes required
to be disclosed under the notified accounting
Standards and the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
Amounts in the financial statements are presented
in absolute Indian Rupees rounded off to two
decimal places as permitted by Schedule III
to the Companies Act, 2013. Per share data
are presented in Indian Rupee to two decimal
places.”
(iv) Revenue Recognition:
a) Dividend and Interest Income
“Dividends are recognised in Statement of
profit and Loss only when the right to receive
payment is established, it is probable that
the economic benefits associated with the
dividend will flow the Company and the
Amount of the dividend can be measured
reliably.
Interest income from investments is
recognised when it is certain that the
economic benefits 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.”
b) Fees and Commission Income
Fee based income are recognised when
they become measurable and when it is
probable to expect their ultimate collection.
Commission and brokerage income
earned on secondary market operations
are accounted on trade dates. Brokerage
on mutual fund and IPO syndication are
accounted on receipt basis.
c) Net gain or fair value change
Any differences between the fair values
of the financial assets classified as fair
value through the profit or loss, held by
the Company on the balance sheet date is
recognised as an unrealised gain/loss in
the statement of profit and loss. In cases
there is a net gain in aggregate, the same
is recognised in “Net gains or fair value
changes” under revenue from operations
and if there is a net loss the same is disclosed
“Expenses”, in the statement of profit and
loss.
(v) Property Plant and Equipment
PPE is recognised when 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. PPE is stated at
original cost net of tax/duty credits availed, if any,
less accumulated depreciation and cumulative
impairment, if any. Cost includes all direct cost
related to the acquisition of PPE and, for qualifying
assets, borrowing costs capitalised in accordance
with the Company’s accounting policy.
An item of Property, Plant and Equipment is
derecognised on disposal or when no future
economic benefits are expected from its use or
disposal. The gain or loss arising on derecognition
is recognised in the Statement of Profit and
Loss.
“Depreciation is provided on a written down
value basis from the date the asset is ready
for its intended use or the date it is put to use,
whichever is earlier. In respect of assets sold,
depreciation is provided upto the date of disposal.
As per the requirement of Schedule II of the
Companies Act, 2013, the Company has
evaluated the useful lives of the respective fixed
assets which are as per the provisions of Part C
of the Schedule II of the Act for calculating the
depreciation”
The estimates of useful lives of tangible assets are
as follows :
Leasehold improvement & premises are amortized
on a straight line basis over the estimated useful
lives of the assets or the period of lease, whichever
is shorter.
(vi) Intangible Assets
“Intangible assets are recognised when it is
probable that the future economic benefits
that are attributable to the asset will flow to the
enterprise and the cost of the asset can be
measured reliably. Intangible assets are stated at
original cost net of tax/duty credits availed, if any,
less accumulated amortisation and cumulative
impairment. Direct expenses and administrative
and other general overhead expenses that
are specifically attributable to acquisition of
intangible assets are allocated and capitalised
as a part of the cost of the intangible assets.
Intangible assets are amortised on straight
line basis over the estimated useful life. The
method of amortisation and useful life are
reviewed at the end of each accounting year
with the effect of any changes in the estimate
being accounted for on a prospective basis.
An intangible asset is derecognised on disposal,
or when no future economic benefits are
expected from use or disposal. Gains or losses
arising from derecognition of an intangible asset
are recognised in profit or loss when the asset is
derecognised”
(vii) Impairment of tangible and intangible
assets
“As at the end of each accounting year, the
Company reviews the carrying amounts of its
PPE and intangible assets to determine whether
there is any indication that those assets have
suffered an impairment loss. If such indication
exists, the PPE, investment property and
intangible assets are tested for impairment
so as to determine the impairment loss, if
any. Goodwill and the intangible assets with
indefinite life are tested for impairment each year.
Impairment loss is recognised when the carrying
amount of an asset exceeds its recoverable
amount. Recoverable amount is determined:
(i) in the case of an individual asset, at the higher
of the net selling price and the value in use; and
(ii) in the case of a cash generating unit
(the smallest identifiable Company of
assets that generates independent cash
flows), at the higher of the cash generating
unit’s net selling price and the value in use.
Recoverable amount is the higher of fair value
less costs of disposal and value in use. In
assessing value in use, the estimated future
cash flows are discounted to their present value
using a pretax discount rate that reflects current
market assessments of the time value of money
and the risks specific to the asset for which the
estimates of future cash flows have not been
adjusted. If recoverable amount of an asset (or
cash generating unit) is estimated to be less than
its carrying amount, such deficit is recognised
immediately in the Statement of Profit and Loss
as impairment loss and the carrying amount of
the asset (or cash generating unit) is reduced
to its recoverable amount. For this purpose,
the impairment loss recognised in respect of a
cash generating unit is allocated first to reduce
the carrying amount of any goodwill allocated
to such cash generating unit and then to
reduce the carrying amount of the other assets
of the cash generating unit on a pro-rata basis.
When an impairment loss subsequently reverses,
the carrying amount of the asset (or cash
generating unit), except for allocated goodwill, is
increased to the revised estimate of its recoverable
amount.
(viii) Employee benefits
a) Short-term employee benefits
Short-term employee benefits are expensed
as the related service is provided. A liability
is recognised for the amount expected
to be paid if the Company has a present
legal or constructive obligation to pay this
amount as a result of past service provided
by the employee and the obligation can be
estimated reliably.
b) Contribution to provident fund and ESIC
Company’s contribution paid/payable
during the year to provident fund and ESIC
is recognised in the Statement of profit and
loss.
c) Gratuity (Funded):
The Company’s liability towards gratuity
scheme is determined by independent
actuaries, using the projected unit credit
method. The present value of the defined
benefit obligation is determined by
discounting the estimated future cash
outflows by reference to market yields at the
end of the reporting period on government
bonds that have terms approximating to the
terms of the related obligation. Past services
are recognised at the earlier of the plan
amendment / curtailment and recognition
of related restructuring costs/ termination
benefits. The net interest cost is calculated
by applying the discount rate to the net
balance of the defined benefit obligation
and the fair value of plan assets. This cost is
included in employee benefit expense in the
Statement of profit and loss. Gratuity liability
is funded with Life Insurance Corporation of
India.
“Remeasurement gains/losses -
Remeasurement of defined benefit plans,
comprising of actuarial gains / losses,
return on plan assets excluding interest
income are recognised immediately in the
balance sheet with corresponding debit
or credit to Other Comprehensive Income
(OCI). Remeasurements are not reclassified
to Statement of profit and loss in the
subsequent period. “
d) Superannuation fund
The Company makes contribution to
the Superannuation scheme, a defined
contribution scheme, administered by Life
Insurance Corporation of India, which are
charged to the Statement of profit and loss.
The Company has no obligation to the
scheme beyond its contributions.
e) Leave encashment / compensated
absences / sick leave -
The Company provides for the encashment/
availment of leave with pay subject to
certain rules. The employees are entitled to
accumulate leave subject to certain limits for
future encashment / availment. The liability
is provided based on the number of days of
unutilized leave at each balance sheet date
on the basis of an independent actuarial
valuation.
(ix) Leases
The determination of whether an agreement is, or
contains, a lease is based on the substance of the
agreement at the date of inception.
(i) Finance leases:
A. Leases where the Company has
substantially transferred all the risks
and rewards of ownership of the
related assets are classified as finance
leases. Assets under finance lease
are capitalised at the commencement
of the lease at the lower of the fair
value or the present value of minimum
lease payments and a liability is
created for an equivalent amount.
Each lease rental paid is allocated
between the liability and the interest
cost, so as to obtain a constant periodic
rate of interest on the outstanding
liability for each period.
B. Assets given under a finance lease
are recognised as a receivable at an
amount equal to the net investment in
the lease. Lease income is recognised
over the period of the lease so as to
yield a constant rate of return on the net
investment in the lease.”
“(ii) Operating leases:
The leases which are not classified as
finance lease are operating leases.
A. Lease rentals on assets under operating
lease are charged to the Statement of
Profit and Loss on a straight line basis
over the term of the relevant lease.
B. Assets leased out under operating
leases are continued to be shown
under the respective class of assets.
Rental income is recognised on a
straight line basis over the term of the
relevant lease”
(x) Financial instruments :
A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
a) Recognition and initial measurement -
Financial assets and financial liabilities are
recognised when the Company becomes
a party to the contractual provisions of the
instruments. Financial assets and financial
liabilities are initially measured at fair
value. Transaction costs that are directly
attributable to the acquisition or issue of
financial assets and financial liabilities (other
than financial assets and financial liabilities
at FVTPL) are added to or deducted from
the fair value of the financial assets or
financial liabilities, as appropriate, on initial
recognition. Transaction costs directly
attributable to the acquisition of financial
assets or financial liabilities at FVTPL are
recognised immediately in Statement of
profit and loss.
b) Classification and Subsequent
measurement of financial assets
“On initial recognition, a financial asset is
classified as measured at
- Amortised cost;
- FVOCI - debt instruments;
- FVOCI - equity instruments;
- FVTPL
“Amortised cost -
Financial assets are subsequently measured
at amortised cost using the effective interest
rate (EIR) if these financial assets are held
within a business model whose objective
is to hold these assets in order to collect
contractual cash flows and the contractual
terms of the financial asset give rise on
specified dates to cash flows that are solely
payments of principal and interest on the
principal amount outstanding.”
“FVOCI - debt instruments -
The Company measures its debt instruments
at FVOCI when the instrument is held within
a business model, the objective of which is
achieved by both collecting contractual cash
flows and selling financial assets; and the
contractual terms of the financial asset meet
the SPPI test.”
“FVOCI - equity instruments -
The Company subsequently measures all
equity investments at fair value through
profit or loss, unless the Company’s
management has elected to classify
irrevocably some of its equity instruments
at FVOCI, when such instruments meet the
definition of Equity under Ind AS 32 Financial
Instruments and are not held for trading.
Financial assets are not reclassified
subsequent to their initial recognition, except
if and in the period the Company changes its
businessmodelfor managing financial assets.
All financial assets not classified as measured
at amortised cost or FVOCI are measured at
FVTPL. This includes all derivative financial
assets.”
Subsequent measurement of financial
assets
“Financial assets at amortised cost are
subsequently measured at amortised
cost using effective interest method. The
amortised cost is reduced by impairment
losses. Interest income, foreign exchange
gains and losses and impairment are
recognised in Statement of profit and loss.
Any gain and loss on derecognition is
recognised in Statement of profit and loss.
Debt investment at FVOCI are subsequently
measured at fair value. Interest income
under effective interest method, foreign
exchange gains and losses and impairment
are recognised in Statement of profit
and loss. Other net gains and losses are
recognised in OCI. On derecognition,
gains and losses accumulated in OCI are
reclassified to Statement of profit and loss.
For equity investments, the Company makes
an election on an instrument-by-instrument
basis to designate equity investments
as measured at FVOCI. These elected
investments are measured at fair value with
gains and losses arising from changes in fair
value recognised in other comprehensive
income and accumulated in the reserves.
The cumulative gain or loss is not reclassified
to Statement of profit and loss on disposal of
the investments. These investments in equity
are not held for trading. Instead, they are
held for strategic purpose. Dividend income
received on such equity investments are
recognised in Statement of profit and loss.
Equity investments that are not
designated as measured at FVOCI are
designated as measured at FVTPL and
subsequent changes in fair value are
recognised in Statement of profit and loss.
Financial assets at FVTPL are subsequently
measured at fair value. Net gains and losses,
including any interest or dividend income,
are recognised in Statement of profit and
loss.”
b) Financial liabilities and equity
instruments:
“Classification as debt or equity -
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 arrangements
and the definitions of a financial liability and
an equity instrument.”
“Equity instruments -
An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
Equity instruments issued by Company
are recognised at the proceeds received.
Transaction costs of an equity transaction are
recognised as a deduction from equity.”
“Financial liabilities -
Financial liabilities are classified as
measured at amortised cost or FVTPL. A
financial liability is classified as at FVTPL
if it is classified as held-fortrading or it is a
derivative or it is designated as such on initial
recognition. Other financial liabilities are
subsequently measured at amortised cost
using the effective interest method. Interest
expense and foreign exchange gains and
losses are recognised in Statement of profit
and loss. Any gain or loss on derecognition
is also recognised in Statement of profit and
loss.”
c) Derecognition
“Financial assets
The Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers
the rights to receive the contractual cash
flows in a transaction in which substantially
all of the risks and rewards of ownership of
the financial asset are transferred or in which
the Company neither transfers nor retains
substantially all of the risks and rewards of
ownership and does not retain control of
the financial asset. If the Company enters
into transactions whereby it transfers assets
recognised on its balance sheet, but retains
either all or substantially all of the risks
and rewards of the transferred assets, the
transferred assets are not derecognised.”
“Financial liabilities
A financial liability is derecognised when
the obligation in respect of the liability
is discharged, cancelled or expires. The
difference between the carrying value of
the financial liability and the consideration
paid is recognised in Statement of profit and
loss”
d) Offsetting
Financial assets and financial liabilities are
offset and the net amount presented in the
balance sheet when, and only when, the
Company currently has a legally enforceable
right to set off the amounts and it intends
either to settle them on a net basis or to
realise the asset and settle the liability
simultaneously.
e) Derivative financial instruments
“Derivatives are initially recognised at fair
value at the date the contracts are entered
into and are subsequently remeasured
to their fair value at the end of each
reporting period. The resulting gain/loss is
recognised in Statement of profit and loss.
Derivatives embedded in non-derivative host
contracts are treated as separate derivatives
when their risks and characteristics are not
closely related to those of the host contracts
and the host contracts are not measured at
FVTPL.”
e) Impairment of financial instruments
“Equity instruments are not subject to
impairment under Ind AS 109.
The Company recognises lifetime expected
credit losses (ECL) when there has been
a significant increase in credit risk since
initial recognition and when the financial
instrument is credit impaired. If the credit risk
on the financial instrument has not increased
significantly since initial recognition, the
Company measures the loss allowance
for that financial instrument at an amount
equal to 12 month ECL. The assessment of
whether lifetime ECL should be recognised
is based on significant increases in the
likelihood or risk of a default occurring since
initial recognition. 12 month ECL represents
the portion of lifetime ECL that is expected
to result from default events on a financial
instrument that are possible within 12
months after the reporting date.
When determining whether credit risk of a
financial asset has increased significantly
since initial recognition and when estimating
expected credit losses, the Company
considers reasonable and supportable
information that is relevant and available
without undue cost or effort. This includes
both quantitative and qualitative information
and analysis, including on historical
experience and forward-looking information
The expected credit losses on these financial
assets are estimated using a provision
matrix based on the Company’s historical
credit loss experience, adjusted for factors
that are specific to the debtors, general
economic conditions and an assessment
of both the current as well as the forecast
direction of conditions at the reporting
date, including time value of money where
appropriate. Lifetime ECL represents
the expected credit losses that will result
from all possible default events over the
expected life of a financial instrument.
Loss allowances for financial assets
measured at amortised cost are deducted
from the gross carrying amount of the
assets. For debt securities at FVOCI, the loss
allowance is recognised in OCI and carrying
amount of the financial asset is not reduced
in the balance sheet.”
f) Write offs
The gross carrying amount of a financial
asset is written off when there is no realistic
prospect of further recovery. This is generally
the case when the Company determines that
the debtor/ borrower does not have assets
or sources of income that could generate
sufficient cash flows to repay the amounts
subject to the write-off. However, financial
assets that are written off could still be
subject to enforcement activities under the
Company’s recovery procedures, taking
into account legal advice where appropriate.
Any recoveries made are recognised in
Statement of profit and loss.
(xi) Cash and bank balances:
Cash and bank balances also include fixed
deposits, margin money deposits, earmarked
balances with banks and other bank balances
which have restrictions on repatriation. Short
term and liquid investments being subject to
more than insignificant risk of change in value,
are not included as part of cash and cash
equivalents.
(xii) Borrowing costs:
Borrowing costs net of any investment income
from the temporary investment of related
borrowings, that are attributable to the acquisition,
construction or production of a qualifying asset
are capitalised as part of cost of such asset till
such time the asset is ready for its intended use or
sale. A qualifying asset is an asset that necessarily
requires a substantial period of time to get ready
for its intended use or sale. All other borrowing
costs are recognised in profit or loss in the period
in which they are incurred.
(xiii) Taxation - Current and deferred tax:
Income tax expense comprises of current tax
and deferred tax. It is recognised in Statement of
profit and loss except to the extent that it relates
to an item recognised directly in equity or in other
comprehensive income.
“A. Current tax :
Current tax comprises amount of tax payable
in respect of the taxable income or loss for
the year determined in accordance with
Income Tax Act, 1961 and any adjustment to
the tax payable or receivable in respect of
previous years. The Company’s current tax
is calculated using tax rates that have been
enacted or substantively enacted by the end
of the reporting period.
B. Deferred tax :
Deferred tax assets and liabilities are
recognized for the future tax consequences
of temporary differences between the
carrying values of assets and liabilities and
their respective tax bases. Deferred tax
liabilities and assets are measured 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.
The measurement of deferred tax liabilities
and assets reflects the tax consequence
that would follow from the manner in which
the Company expects, at the end of the
reporting period, to recover or settle the
carrying amount of its assets and liabilities.
Deferred tax assets are recognized to the
extent that it is probable that future taxable
income will be available against which the
deductible temporary difference could
be utilized. Such deferred tax assets and
liabilities are not recognised if the temporary
difference arises from the initial recognition
of assets and liabilities in a transaction that
affects neither the taxable profit nor the
accounting profit. The carrying amount of
deferred tax assets is reviewed at the end
of each reporting period 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.”
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