1.1 Basis of preparation Statement of compliance
These financial statements comprising Balance Sheet, Statement of Profit and Loss, Cash flow
Statement and Statement of changes in Equity, together with notes as at and for the year ended
March 31,2025 have been prepared in accordance with Indian Accounting Standards (Ind AS)
under the historical cost convention on the accrual basis except for certain financial instruments
which are measured at fair values, the provisions of the Companies Act, 2013 (“the ACT”) and
guidelines issued by the Securities and Exchange Board of India (SEBI). The financial statements
are prepared in accordance with Ind AS prescribed under Section 133 of the Act read with Rule
3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting
Standards) Amendment Rules, 2016. The company has consistently applied accounting policies,
unless stated otherwise, to all periods.
The Balance Sheet, the Statement of Profit and Loss and the Statement of Changes in Equity
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 in accordance
with Ind AS 7 “Statement of Cash Flows”. The disclosures 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 Ind AS and the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 as
Use of estimates
The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS)
notified under Companies (Indian Accounting Standards) Rules, 2015 (as amended) read with
Section 133 of the Companies Act, 2013 (“the Act”), and other relevant provisions of the Act requires
management to make judgements, estimates and assumptions that affect the application of
accounting policies and reported amounts of assets, liabilities, income and expenses and the
disclosure of contingent liabilities on the date of the financial statements. Actual results could
differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Any revision to accounting estimates is recognized prospectively in current and future
periods.
These financial statements for the year ended 31st March 2025 have been approved and authorized
for issue by the board of directors at its meeting on 30th May 2025.
Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the following:
(a) certain financial assets and liabilities (including derivative instruments) and contingent
consideration that is measured at fair value;
(b) assets held for sale - measured at fair value less cost to sell;
(c) defined benefit plans - plan assets measured at fair value; and
1.2 Current and Non Current Classification
An entity presents current and non-current assets and current and non-current liabilities as
separate classifications in its balance sheet
As the operating cycle cannot be identified easily in normal course, the Company has assumed
its operating cycle as 12 months for the purpose of current and non-current classification of assets
and liabilities.
An entity shall classify an asset as current when:
(a) It expects to realise the asset, or intends to sell or consume it, in its normal operating
cycle;
(b) It holds the asset primarily for the purpose of trading;
(c) It expects to realise the asset within twelve months after the reporting period; or
(d) The asset is cash or a cash equivalent (as defined in Ind AS 7 Statement of Cash Flows )
unless the asset is restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.
All other assets shall be classified as non-current.
An entity shall classify a liability as current when:
(a) IIt expects to settle the liability in its normal operating cycle;
(b) It holds the liability primarily for the purpose of trading;
(c) The liability is due to be settled within twelve months after the reporting period; or
(d) It does not have an unconditional right to defer settlement of the liability for at least twelve
months after the reporting period. Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of equity instruments do not affect its
classification.
1.3 Functional and presentation currency
These financial statements are presented in Indian Rupees (INR), which is the Company's functional
currency. All financial information presented in INR has been rounded to the nearest thousands
(upto two decimals).
1.4 Critical accounting estimates and management judgements
In application of the accounting policies, which are described in note 1, the management of the
Company is required to make judgements, estimates and assumptions about the carrying amounts
of assets and liabilities that are not readily apparent from other sources. The estimates and
assumptions are based on historical experience and other factors that are considered to be relevant.
(A) Current Tax
Calculations of income taxes for the current period are done based on applicable tax laws
and management's judgement by evaluating positions taken in tax returns and interpretations
of relevant provisions of law.
(B) Deferred Tax Assets (including MAT Credit Entitlement)
Significant management judgement is exercised by reviewing the deferred tax assets at each
reporting date to determine the amount of deferred tax assets that can be retained/recognized,
based upon the likely timing and the level of future taxable profits together with future tax
planning strategies.
(C) Fair Value
Management uses valuation techniques in measuring the fair value of financial instruments
where active market quotes are not available. In applying the valuation techniques,
management makes maximum use of market inputs and uses estimates and assumptions
that are, as far as possible, consistent with observable data that market participants would
use in pricing the instrument. Where applicable data is not observable, management uses
its best estimate about the assumptions that market participants would make. These
estimates may vary from the actual prices that would be achieved in an arm's length
transaction at the reporting date.
(D) Impairment of Trade Receivables
The impairment for trade receivables are determined based on assumptions about risk of
default and expected loss rates. The assumptions, selection of inputs for calculation of
impairment are based on management judgement considering the past history, market
conditions and forward looking estimates at the end of each reporting date.
(E) Impairment of Non-financial assets (PPE/Intangible Assets)
The impairment of non-financial assets is determined based on estimation of recoverable
amount of such assets. The assumptions used in computing the recoverable amount are
based on management judgement considering the timing of future cash flows, discount rates
and the risks specific to the asset.
(F) Defined benefit plans and Other long term benefits
The cost of the defined benefit plan and other long term employee benefits, and the present
value of such obligation are determined by the independent actuarial valuer. An actuarial
valuation involves making various assumptions that may differ from actual developments in
future. Management believes that the assumptions used by the actuary in determination of
the discount rate, future salary increases, mortality rates and attrition rates are reasonable.
Due to the complexities involved in the valuation and its long term nature, this obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each
reporting date.
1.5 Fair Value Measurement
The Company has applied the fair value measurement whenever neccessiated at each Balance
Sheet date.
Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
(i) In the principal market for the asset or liability.
(ii) In the absence of a principal market, in the most advantageous market for the asset or liability.
The Principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best Interest.
A fair value measurement of a non- financial asset takes into account a market participant's ability
to generate economic benefits by using the asset in its highest and the best use or by selling it
to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, Maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.
All Assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole :
Level 1: Quoted (Unadjusted) Market prices in active market for identical assets or liabilities.
Level 2: Valuation Techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable; and
Level 3: Valuation Techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the fair value hierarchy
by reassessing the classification (based on the lowest level input that is significant to the entire
fair value measurement) at the end of each reporting period. Transfers into and out of fair value
hierarchy levels are recognized at the end of the reporting period during which the change has
occurred.
The Company has designed the respective team leads to determine the policies and procedures
for both recurring and Non- recurring fair value measurement. External valuers are involved, wherever
necessary with the approval of Company's board of directors. Selection criteria include market
knowledge, reputation, Independence and whether professional standards are maintained.
For the purpose of fair value disclosure, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risk of the asset and the level of the fair
value hierarchy as explained above. The component wise fair value measurement is disclosed in
the relevant notes.
1.6 Property, Plant and Equipment and Intangible Assets
On transition to IND AS, the Company has elected to continue with the carrying value of all of its
Property, Plant and Equipment recognized as at April 1, 2016, measured as per the previous
GAAP, and use that carrying value as the deemed cost of such property plant and equipment.
PPE are stated at cost of acquisition (including incidental expenses), less accumulated
depreciation and accumulated impairment loss, if any
The Company has provided the depreciation based on the estimated useful life of respective years
and as the change in estimated useful life is considered as change in estimate, accordingly there
is no impact of this roll back.
When significant parts of plant and equipment are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. Likewise, when a major inspection
is performed, its cost is recognized in the carrying amount of the plant and equipment as a
replacement if the recognition criteria are satisfied. All other repair and maintenance costs are
recognized in profit or loss as incurred.
An item of property, plant and equipment and any significant part initially recognized is
derecognized upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the income
statement when the asset is derecognized.
The residual values, useful lives and methods of depreciation of property, plant and equipment
are reviewed at each financial period/year end, and adjusted prospectively, if appropriate, as they
are change in estimates.
After impairment if any, depreciation is provided on the revised carrying amount of the assets
over its remaining useful life. No Depreciation is charged on the discarded assets.
1.7 Intangible Assets
1. Intangible assets acquired separately are measured on initial on recognition at cost. Following
initial recognition, intangible assets are carried at cost less any accumulated amortization
and accumulated impairment losses.
2. Intangible assets with finite lives are amortized over the useful economic life and assessed
for impairment whenever there is an indication that the intangible assets may be impaired.
The amortization period and the amortization method for an intangible assets with a finite
useful lives are reviewed at the end of each reporting period. Changes in the expected useful
life/ pattern of consumption of future economic benefit embodied in the assets are considered
to modify the amortization period/method and treated as changes in accounting estimate.
The amortization expenses are recognized in the statement of profit or loss unless such
expenditure forms part of carrying value of another asset.
3. Software are amortized over a period of 3 to 5 years.
1.8 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 units (CGU) fair value less costs of disposal and its value
in use.
The 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 Company of assets. Where
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 net selling price, recent market transactions are taken into account, if available. 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 in which the entity operates, or for the market in which the asset is used.
An assessment is made at each reporting date to determine whether there is an indication that
previously recognized 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 recognized
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 recognized. 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 recognized for the asset in prior years. Such reversal is recognized 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.
1.9 Borrowing costs
Borrowing cost includes interest expense as per Effective Interest Rate (EIR).
Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily
takes a substantial period of time to get ready for its intended use are capitalized as part of the
cost of the asset until the asset is substantially ready for its intended use or sale. Where funds
are borrowed specifically to finance a project, the amount capitalized represents the actual
borrowing costs incurred. Where surplus funds are available out of money borrowed specifically
to finance project, the income generated from such current investments is deducted from the
total capitalized borrowing cost. Where the funds use to finance a project form part of general
borrowings, the amount capitalized is calculated using a weighted average of rates applicable to
relevant general borrowings of the company during the period/year. Capitalization of borrowing
costs is suspended and charged to profit and loss during the extended periods when the active
development on the qualifying assets is interrupted.
EIR is the rate that exactly discounts the estimated future cash payments or receipts over the
expected life of the financial liability or a shorter period, where appropriate, to the amortized cost
of a financial liability after considering all the contractual terms of the financial instrument.
1.10 Revenue Recognition
The Company is in the business of providing Stock Broking, DP Operations, Portfolio Advisory
Services, Merchant Banking .
In accordance with the Ind As 115 contract with customers revenue is recognized in the following
manner.
(a) Brokerage Fee income
Brokerage fee income is recognised on the trade date of transaction upon confirmation of the
transaction by the stock exchange. The services are point in time in nature.
(b) Income from depository services and portfolio management services
Income from depository services, penal charges and portfolio management services are
recognised on the basis of agreements entered into with clients and when the right to receive
the income is established. It is recognised at the point in time for transaction charges and
others are recognised over the period of service as applicable.
(c) Income from distribution of financial products
Commission income from financial products distribution is recognised on the basis of
agreements entered into with principals and when the right to receive the income is established.
The date of the agreement is considered as point in time when the performance obligation is
satisfied. In case of continuing services, the same is recognised over a period of time.
(D) Interest income
Interest income is recognised using the effective interest rate method. Interest income from
margin funding business is recognised on loans given to clients on time proportion basis
(E) Dividend income
Dividend income is recognised in the statement of profit or loss on the date that the Company's
right to receive payment is established, it is probable that the economic benefits associated
with the dividend will flow to the entity and the amount of dividend can be reliably measured.
1.11 Income Taxes
Taxes comprise current income tax and deferred tax.
Current income tax
The tax currently payable is based on taxable profit for the period/year. Taxable profit differs from
'profit before tax' as reported in the statement of profit and loss because of items of income or
expense that are taxable or deductible in other years and items that are never taxable or deductible.
The current tax is calculated using tax rates that have been enacted or substantively enacted by
the end of the reporting period.
Current income tax assets and liabilities are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted, at the reporting date in India, where the
Company operates and generates taxable income.
Current income tax relating to items recognized outside profit or loss is recognized outside profit
or loss (either in other comprehensive income or in equity). Current tax items are recognized in
correlation to the underlying transaction either in OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is recognized on temporary differences between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are generally recognized for all taxable temporary differences, except:
(i) 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 (including MAT credit) are recognized for all deductible temporary differences,
the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are
recognized to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences and the carry forward of unused tax credits and unused tax losses
can be utilized, except:
(i) ) When the deferred tax asset relating to the deductible temporary difference arises from the
initial recognition of 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.
(ii) In respect of deductible temporary differences associated with investments in subsidiaries,
associates and interests in joint ventures, deferred tax assets are recognized only to the
extent that it is probable that the temporary differences will reverse in the foreseeable future
and taxable profit will be available against which the temporary differences can be utilized.
The carrying amount of deferred tax assets (including MAT credit available) is reviewed at each
reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized 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 the tax rates that are expected to apply in
the year when the asset is realized or the liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss
(either in other comprehensive income or in equity). Deferred tax items are recognized in correlation
to the underlying transaction either in OCI or directly in equity.
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.
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