1. Corporate Information and Material Accounting Policies
SW Investments Limited is a public company incorporated in India under the provision
of erstwhile companies Act 1956. The company carry on the business of an investment
company and to invest or otherwise deals in shares, debentures, bonds, units, securities,
issues or guaranteed by Indian or Foreign Governments, states, sovereigns or public
authorities or bodies. Equity Shares of the Company are listed on BSE Limited, India. The
registered office of the company is situated at 5th Floor, Sunteck Centre, 37- 40 Subhash
Road, Vile Parle (East), Mumbai 400057, Maharashtra, India.
The significant accounting policies applied by the Company in the preparation of its
financial statements are listed below. Such accounting policies have been applied
consistently to all the periods presented in these financial statements, unless otherwise
indicated.
(a) Basis of Preparation
The standalone financial statements comply in all material aspects with Indian Accounting
Standards (hereinafter referred to as "Ind AS") as notified under the Companies (Indian
Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards)
Amendment Rules, 2016 prescribed under Section 133 of the Companies Act, 2013
read with rule 7 of the Companies (Accounts) Rules, 2014.
The standalone financial statements have been prepared in accordance with the Indian
Accounting Standards (Ind AS) on the historical cost basis except for certain financial
instruments that are measured at fair values at the end of each reporting period as
explained in the accounting policies below and the relevant provisions of the Act
Based on the nature of products / activities of the Company normal time between
acquisition of assets and their realization in cash or cash equivalents, the Company
has determined its operating cycle as 12 months for the purpose of classification of its
assets and liabilities. The Standalone financial statements are presented in Indian rupee
(INR), which is Company's functional and presentation currency. Functional Currency is
the currency of a primary economic environment in which the Company operates. All
amounts disclosed in the financial statements and notes have been rounded off to the
nearest lakhs as per the requirement of Schedule III of the Companies Act, 2013 unless
otherwise stated.
These standalone financial statements have been approved for issue by Board of
Directors of the company on May 27, 2025.
(b) Revenue Recognition
(i) Revenue
Company follows accrual system of accounting and takes into account expense and
incomes as accrued. Income from consultancy charges, brokerage & commission is
recognized when it is reliably measured that it will flow to the company.
(ii) Interest Income
Interest income from a financial asset is recognised when it is probable 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, 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.
(iii) Dividend
Dividend income from investments is recognized when the shareholder's right to receive
payment has been established (provided that it is probable that the economic benefits
will flow to the company and the amount of income can be measured reliably).
(c) Income tax
Current Income tax
Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities in accordance with the Income Tax
Act,1961. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date in the countries where the
company operates and generates taxable income.
Current income tax relating to items recognised outside profit or loss is recognised
outside profit or loss (either in other comprehensive income or in equity). Current tax
items are recognised 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
1) 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
recognized for all taxable temporary differences. 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. Such deferred tax assets and liabilities are not recognized
if the temporary difference arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither the taxable
profit nor the accounting profit. In addition, deferred tax liabilities are not recognised
if the temporary difference arises from the initial recognition of goodwill.
2) Deferred tax liabilities are recognised for taxable temporary differences associated
with investments in subsidiaries and associates, and interests in joint ventures, except
where the Company is able to control the reversal of the temporary difference and it
is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets arising from deductible temporary differences associated with
such investments and interests are only recognized to the extent that it is probable
that there will be sufficient taxable profits against which to utilize the benefits of the
temporary differences and they are expected to reverse in the foreseeable future.
3) 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.
4) 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.
5) Deferred tax assets and liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred tax assets relate
to the same taxable entity and same taxation authority.
Minimum Alternate Tax:
Minimum Alternate Tax ('MAT') credit is recognised as an asset only when and to the
extent there is convincing evidence that the company will pay normal income-tax
during the specified period. In the year in which the MAT credit becomes eligible to be
recognised as an asset, the said asset is created by way of a credit to the statement of
profit and loss. The company reviews the same at each balance sheet date and writes
down the carrying amount of MAT credit entitlement to the extent there is no longer
convincing evidence to the effect that company will pay normal income-tax during the
specified period.
(d) Impairment of non-financial assets
Goodwill and intangible assets that have an indefinite useful life are not subject to
amortization and are tested annually for impairment, or more frequently if events or
changes in circumstances indicate that they might be impaired. Other assets are tested
for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised in the statement
of profit or loss for the amount by which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset's fair value less
costs of disposal and value in use. For the purposes of assessing impairment, assets are
grouped at the lowest level for which there are separately identifiable cash inflows which
are largely dependent of the cash inflows from other assets or groups of assets (cash¬
generating units). Non-financial assets other than goodwill that suffered an impairment
are reviewed for possible reversal of the impairment at the end of each reporting period.
After impairment, depreciation is provided on the revised carrying amount of the asset
over its remaining useful life.
(e) Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand
and demand deposits with an original maturity of three months or less and highly liquid
investments that are readily convertible into known amounts of cash and which are
subject to an insignificant risk of changes in value net of outstanding bank overdrafts as
they are considered an integral part of the Company's cash management.
(f) Non-current assets (or disposal groups) held for sale and discontinued operations
Non-current assets are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use and a sale is
considered highly probable. They are measured at the lower of their carrying amount
and fair value less costs to sell, except for assets such as deferred tax assets, assets
arising from employee benefits, financial assets and contractual rights under insurance
contracts, which are specifically exempt from this requirement.
Non-current assets are not depreciated or amortised while they are classified as held
for sale. Interest and other expenses attributable to the liabilities of a disposal asset
classified as held for sale continue to be recognised.
(g) Investments and other financial assets
(i) Classification
Financial assets, other than equity instruments, are subsequently measured at amortised
cost, fair value through other comprehensive income (FVOCI) or fair value through profit
or loss (FVTPL) on the basis of both:
(a) the entity's business model for managing the financial assets and
(b) the contractual cash flow characteristics of the financial asset.
For assets measured at fair value, gains and losses will either be recorded in profit or
loss or other comprehensive income. For investments in debt instruments, this will
depend on the business model in which the investment is held. For investments in equity
instruments, this will depend on whether the company has made an irrevocable election
at the time of initial recognition to account for the equity investment at fair value through
other comprehensive income.
The company reclassifies debt investments when and only when its business model for
managing those assets changes.
(ii) Measurement
At initial recognition, the company measures a financial asset at its fair value plus, in the
case of a financial asset not carried at fair value through profit or loss, transaction costs
that are directly attributable to the acquisition of the financial asset. Transaction costs of
financial assets carried at fair value through profit or loss are expensed in profit or loss.
Debt instruments
Subsequent measurement of debt instruments depends on the company's business
model for managing the asset and the cash flow characteristics of the asset. There are
three measurement categories into which the company classifies its debt instruments:
• Amortised cost: Assets that are held for collection of contractual cash flows where
those cash flows represent solely payments of principal and interest are measured
at amortised cost. A gain or loss on a debt investment that is subsequently measured
at amortised cost and is not part of a hedging relationship is recognised in profit or
loss when the asset is derecognised or impaired. Interest income from these financial
assets is included in finance income using the effective interest rate method.
• Fair value through other comprehensive income (FVOCI): Assets that are held
for collection of contractual cash flows and for selling the financial assets, where the
assets' cash flows represent solely payments of principal and interest, are measured
at fair value through other comprehensive income (FVOCI). Movements in the
carrying amount are taken through OCI, except for the recognition of impairment
gains or losses, interest revenue and foreign exchange gains and losses which
are recognised in profit and loss. When the financial asset is derecognised, the
cumulative gain or loss previously recognised in OCI is reclassified from equity to
profit or loss and recognised in other gains/ (losses). Interest income from these
financial assets is included in other income using the effective interest rate method.
• Fair value through profit or loss: Assets that do not meet the criteria for amortised
cost or FVOCI are measured at fair value through profit or loss.
A gain or loss on a debt investment that is subsequently measured at fair value through
profit or loss and is not part of a hedging relationship is recognised in profit or loss and
presented net in the statement of profit and loss within other gains/(losses) in the period
in which it arises. Interest income from these financial assets is included in other income.
Equity instruments
The company subsequently measures all equity investments at fair value. Where the
company's management has elected to present fair value gains and losses on equity
investments in other comprehensive income, there is no subsequent reclassification
of fair value gains and losses to profit or loss. Dividends from such investments are
recognised in profit or loss as other income when the company's right to receive
payments is established.
Changes in the fair value of financial assets at fair value through profit or loss are
recognised in the statement of profit and loss. Impairment losses (and reversal of
impairment losses) on equity investments measured at FVOCI are not reported separately
from other changes in fair value.
(iii) Impairment of financial assets
The company assesses on a forward looking basis the expected credit losses associated
with its assets carried at amortised cost and FVOCI debt instruments. The impairment
methodology applied depends on whether there has been a significant increase in
credit risk. Note 20 details how the company determines whether there has been a
significant increase in credit risk.
For trade receivables only, the company applies the simplified approach permitted
by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be
recognised from initial recognition of the receivables.
(iv) Derecognition of financial assets
A financial asset is derecognised only when
• The company has transferred the rights to receive cash flows from the financial asset
or
• The company retains the contractual rights to receive the cash flows of the financial
asset, but assumes a contractual obligation to pay the cash flows to one or more
recipients.
Where the entity has transferred an asset, the company evaluates whether it has
transferred substantially all risks and rewards of ownership of the financial asset. In
such cases, the financial asset is derecognised. Where the entity has not transferred
substantially all risks and rewards of ownership of the financial asset, the financial asset
is not derecognised.
Where the entity has neither transferred a financial asset nor retains substantially all risks
and rewards of ownership of the financial asset, the financial asset is derecognised if
the company has not retained control of the financial asset. Where the company retains
control of the financial asset, the asset is continued to be recognised to the extent of
continuing involvement in the financial asset.
(h) Financial Liabilities
All Financial liabilities are measured at amortized cost using effective interest method
or fair value through profit and loss. However, financial liabilities that arise when a
transfer of a financial asset does not qualify for derecognition or when the continuing
involvement approach applies, financial guarantee contracts issued by the Company,
and commitments issued by the Company to provide a loan at below-market interest
rate are measured in accordance with the specific accounting policies set out below.
Financial liabilities are classified as at FVTPL when the financial liability is either contingent
consideration recognised by the Company as an acquirer in a business combination to
which Ind AS 103 applies or is held for trading or it is designated as at FVTPL.
A financial liability is classified as held for trading if:
• it has been incurred principally for the purpose of repurchasing it in the near term;
or
• on initial recognition it is part of a portfolio of identified financial instruments that
the Company manages together and has a recent actual pattern of short-term profit¬
taking; or
• it is a derivative that is not designated and effective as a hedging instrument
A financial liability other than a financial liability held for trading or contingent
consideration recognised by the Company as an acquirer in a business combination
to which Ind AS 103 applies, may be designated as at FVTPL upon initial recognition if:
• such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise arise;
• the financial liability forms part of a Company of financial assets or financial liabilities
or both, which is managed and its performance is evaluated on a fair value basis,
in accordance with the Company's documented risk management or investment
strategy, and information about the Company is provided internally on that basis; or
• it forms part of a contract containing one or more embedded derivatives, and
Ind AS 109 permits the entire combined contract to be designated as at FVTPL in
accordance with Ind AS 109
Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising
on remeasurement recognised in Statement of Profit and Loss. The net gain or loss
recognized in Statement of Profit and Loss incorporates any interest paid on the financial
liability and is included in the 'Other income' line item.
However, for non-held-for-trading financial liabilities that are designated as at FVTPL, the
amount of change in the fair value of the financial liability that is attributable to changes
in the credit risk of that liability is recognised in other comprehensive income, unless the
recognition of the effects of changes in the liability's credit risk in other comprehensive
income would create or enlarge an accounting mismatch in profit or loss, in which case
these effects of changes in credit risk are recognised in Statement of Profit and Loss. The
remaining amount of change in the fair value of liability is always recognised in Statement
of Profit and Loss. Changes in fair value attributable to a financial liability's credit risk that
are recognised in other comprehensive income are reflected immediately in retained
earnings and are not subsequently reclassified to Statement of Profit and Loss.
Gains or losses on financial guarantee contracts and loan commitments issued by the
Company that are designated by the Company as at fair value through profit or loss are
recognised in Statement of Profit and Loss.
Financial liabilities that are not held-for-trading and are not designated as at FVTPL
are measured at amortised cost at the end of subsequent accounting periods. The
carrying amounts of financial liabilities that are subsequently measured at amortised
cost are determined based on the effective interest method. Interest expense that is not
capitalised as part of costs of an asset is included in the 'Finance costs' line item. The
effective interest method is a method of calculating the amortised cost of a financial
liability and of allocating interest expense over the relevant period.
The effective interest rate is the rate that exactly discounts estimated future cash
payments (including all fees paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) through the expected
life of the financial liability, or (where appropriate) a shorter period, to the net carrying
amount on initial recognition.
Derecognition of financial liabilities
The Company derecognises financial liabilities when, and only when, the Company's
obligations are discharged, cancelled or have expired. An exchange with a lender of
debt instruments with substantially different terms is accounted for as an extinguishment
of the original financial liability and the recognition of a new financial liability. Similarly,
a substantial modification of the terms of an existing financial liability (whether or not
attributable to the financial difficulty of the debtor) is accounted for as an extinguishment
of the original financial liability and the recognition of a new financial liability. The
difference between the carrying amount of the financial liability derecognised and the
consideration paid and payable is recognised in Statement of Profit and Loss.
(i) Trade and other payables
These amounts represent liabilities for goods and services provided to the company
prior to the end of financial year which are unpaid. The amounts are unsecured and are
usually paid within 45 -90 days of recognition. Trade and other payables are presented
as current liabilities unless payment is not due within 12 months after the reporting
period. They are recognised initially at their fair value and subsequently measured at
amortised cost using the effective interest method.
(j) Expected Credit Losses
The Company measures the expected credit loss of trade receivables and loan from
individual customers based on historical trend, industry practices and the business
environment in which the entity operates. Loss rates are based on actual credit loss
experience and past trends. Based on the historical data, loss on collection of receivable
is not material hence no additional provision considered.
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