2.1 STATEMENT OF COMPLIANCE AND BASIS FOR PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS
a) These Standalone Financial Statements of the Company have been prepared in accordance with the Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (“the Act”) read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended from time to time, and other relevant provisions of the Act. The
financial statements have also been prepared in conformity with the accounting principles generally accepted in India.
b) The standalone financial statements were approved and authorized for issue by the Board of Directors of the Company
at its meeting held on May 02, 2025.
c) The accounting policies have been consistently applied to all periods presented in the standalone financial statements
except where a newly issued Ind AS is applied for the first time or where a change in accounting policy is required due
to amendment to existing standards.
d) The standalone balance sheet, the standalone statement of profit and loss, the standalone statement of changes in
equity, and disclosures have been prepared in accordance with the format prescribed under Division III of Schedule III
to the Companies Act, 2013, as amended, applicable to Non-Banking Financial Companies (NBFCs) that are required
to comply with Ind AS. The standalone statement of cash flows has been prepared in accordance with Ind AS 7,
Statement of Cash Flows.
2.2 FUNCTIONAL & MEASUREMENT CURRENCY
These standalone financial statements are presented in Indian Rupees (INR or Rs.), which is the Company’s functional and
presentation currency. All financial information presented in INR has been rounded to the nearest lakhs with two decimal
places unless otherwise stated. Amounts stated as “0.00” represent values that are below the rounding off threshold.
2.3 BASIS OF MEASUREMENT
The standalone financial statements have been prepared on the historical cost basis except for certain financial instruments
which are measured at fair values:
i. Financial instruments measured at fair value through profit or loss (FVTPL)
ii. Financial assets classified as fair value through other comprehensive income (FVOCI)
iii. Derivative financial instruments
iv. Other financial assets held for trading
a) The preparation of these financial statements in accordance with Indian Accounting Standards (IND AS) requires
management to make estimates, judgements, and assumptions that affect the application of accounting policies and
the reported amounts of assets, liabilities (including contingent liabilities), income, expenses, and related disclosures
at the reporting date.
b) These estimates and assumptions are based on historical experience, current and expected future events, and various
other factors that are considered reasonable under the circumstances.
c) The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised prospectively in the period of revision and, where applicable, in future periods. If such revisions are
material, they are disclosed in the relevant notes to the financial statements.
d) Significant areas involving a higher degree of judgement or complexity, or areas where estimates have a significant
impact on the financial statements, include but not limited to:
(i) Valuation of financial instruments
(ii) Assessment of impairment of assets
(iii) Useful lives of property, plant and equipment and intangibles
(iv) Recognition of revenue and contract assets
(v) Deferred tax assets
(vi) Provisions and contingencies
Information about critical judgments in applying accounting policies, as well as estimates and assumptions that
have the most significant effect on the amounts recognised in the financial statements are included in the following
notes:
(i) Business Model Assessment:
Classification and measurement of financial assets depends on the results of the SPPI (Solely Payments of Principal
and Interest) 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. 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.
Fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved investment
strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently
measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in the
standalone statement of profit and loss in the period in which they arise.
(ii) Measurement of Fair Values
The preparation of the financial statements requires the Company to measure certain financial and non-financial
assets and liabilities at fair value, both at initial recognition and at subsequent reporting dates.
Fair values are determined based on 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 under current market conditions, regardless
of whether that price is directly observable or estimated using a valuation technique.
The Company classifies fair value measurements using a fair value hierarchy, which reflects the significance of inputs
used in making the measurements. The fair value hierarchy has the following levels:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access
at the measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly, such
as quoted prices for similar assets or liabilities in active markets, or inputs derived from observable market data.
Level 3: Inputs that are unobservable for the asset or liability, based on the Company's own assumptions about the
assumptions market participants would use in pricing the asset or liability.
For items that are recognised in the financial statements on a recurring basis at fair value, the Company determines
whether transfers between levels in the hierarchy have occurred by reassessing the categorisation (based on the
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
Valuation techniques used to determine fair value include the market approach, income approach, and cost approach,
as appropriate. When applicable, the Company calibrates valuation models using observable data and reviews the
models periodically for consistency and reliability.
(iii) Effective Interest Rate (EIR) Method
The Company’s EIR methodology, recognises interest income / expense using a rate of return that represents the
best estimate of a constant rate of return over the expected behavioural life of loans given / taken and recognises
the effect of potentially different interest rates at various stages and other characteristics of the financial instruments.
This estimation, by nature, requires an element of judgement regarding the expected behaviour and life-cycle of the
instruments, as well expected changes to India’s base rate and other fee income/expense that are integral parts of the
instrument.
(iv) Provision & Contingent Liability:
The company operates in a regulatory and legal environment that, by nature, has a heightened element of litigation
risk inherent to its operations. As a result, it is involved in various litigation, arbitration and regulatory investigations
and proceedings in the ordinary course of the Company’s business.
When the Company can reliably measure the outflow of economic benefits in relation to a specific case and considers
such outflows to be probable, the Company records a provision against the case. Where the probability of outflow is
considered to be remote, or probable, but a reliable estimate cannot be made, a contingent liability is disclosed.
Given the subjectivity and uncertainty of determining the probability and amount of losses, the Company takes
into account a number of factors including legal advice, the stage of the matter and historical evidence from similar
incidents. Significant judgement is required to conclude on these estimates.
(v) Expected Credit Loss:
When determining whether the risk of default on a financial instruments has increased significantly since initial
recognition, 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, based on the company's
historical experience and credit assessment and including forward-looking information.
The inputs used and process followed by the company in determining the ECL have been detailed in note 37.
(vi) Defined Benefit Plans
The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial
valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may
differ from actual developments in the future. These include the determination of the discount rate, future salary increases
and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation
is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
(vii) Leases
With effect from 1 April 2019, the Company has applied Ind AS 116 'Leases' for all long term and material lease
contracts covered by the Ind AS. The Company has adopted modified retrospective approach as stated in Ind AS 116
for all applicable leases on the date of adoption.
Measurement of Lease Liability
At the time of initial recognition, the Company measures lease liability as present value of all lease payments discounted
using the Company’s incremental cost of borrowing and directly attributable costs. Subsequently, the lease liability is -
(a) increased by interest on lease liability;
(b) reduced by lease payments made; and
(c) remeasured to reflect any reassessment or lease modifications specified in Ind AS 116 'Leases', or to reflect
revised fixed lease payments.
Measurement of Right-of-use assets
At the time of initial recognition, the Company measures 'Right-of-use assets' as present value of all lease payments
discounted using the Company’s incremental cost of borrowing w.r.t said lease contract. Subsequently, 'Right-of-use
assets' is measured using cost model i.e. at cost less any accumulated depreciation and any accumulated impairment
losses adjusted for any remeasurement of the lease liability specified in Ind AS 116 'Leases'.
Depreciation on 'Right-of-use assets' is provided on straight line basis over the lease period.
The exception permitted in Ind AS 116 for low value assets and short term leases has been adopted by Company.
2.5 PROPERTY, PLANT & EQUIPMENT (PPE)
a) Recognition & Measurement
Property, plant and equipment are stated at cost less accumulated depreciation and impairment, if any. The cost of
property, plant and equipment comprise purchase price and any attributable cost of bringing the asset to its working
condition for its intended use. Advances paid towards the acquisition of property, plant and equipment outstanding at
each balance sheet date is classified as capital advances under other non-financial assets and the cost of assets not
put to use before such date is disclosed under ‘Capital work-in-progress’.
Assets held for sale or disposals are stated at the lower of their net book value and net realisable value.
b) Subsequent Measurement
Subsequent expenditure related to the asset are added to its carrying amount or recognised as a separate asset only
if it increases the future benefits of the existing asset, beyond its previously assessed standards of performance and
cost can be measured reliably. Other repairs and maintenance costs are expensed off as and when incurred.
c) Depreciation, estimated useful life & residual values
Depreciation on PPE is provided on straight-line basis in accordance with the useful lives specified in Schedule II to
the Companies Act, 2013 on a pro-rata basis.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at the end
of each financial year and adjusted prospectively, if appropriate. Changes in the expected useful life are accounted for
by modifying the depreciation period or methodology, as appropriate, and treated as change in accounting estimates.
The carrying amount of an item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. The date of disposal of an item of property, plant and
equipment is the date when the recipient gains control of the item, in accordance with the requirements for determining
when a performance obligation is satisfied under Ind AS 115. The gain or loss arising from the derecognition of an item
of property, plant and equipment is measured as the difference between the net disposal proceeds and the carrying
amount of the item, and it is recognised in the Statement of Profit and Loss.
2.6 INTANGIBLE ASSETS
a) 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.
b) Intangible assets are stated at cost less accumulated amortization and accumulated impairment loss, if any.
c) Intangible assets comprises of Membership rights of Stock Exchanges, Computer software and Software licences
which is amortized over the estimated useful life. The amortization period of Stock exchange license and membership
right is 10 years and computer software is 3 years which is based on management’s estimates of useful life. Amortisation
is calcualted using the straight line method to write down the cost of intangible assets over their estimated useful lives.
d) Subsequent expenditure related to the asset is added to its carrying amount or recognised as a separate asset only
if it increases the future benefits of the existing asset, beyond its previously assessed standards of performance and
cost can be measured reliably.
(e) Gains or losses from derecognition of intangible assets are measured as the difference between the net disposal
proceeds and the carrying amount of the asset are recognised in the Statement of Profit or Loss when the asset is
derecognised.
2.7 INVESTMENT IN SUBSIDIARIES AND ASSOCIATES
The Company’s investments in subsidiaries, joint ventures and associates that are listed are carried at fair value through
profit or loss in accordance with the requirements of Ind AS 109 read with IND AS Any gains or losses arising from changes in
fair value are recognised in the Statement of Profit and Loss. Separate Financial Statements. Investments classified as held
for sale are measured and presented in accordance with Ind AS 105, Non-current Assets Held for Sale and Discontinued
Operations, if any.
2.8 FOREIGN EXCHANGE
The Company’s financial statements are presented in Indian Rupee, which is also the Company’s functional currency.
a) Initial recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency at the date of the transaction.
b) Conversion
Foreign currency monetary items are re-translated using the exchange rate prevailing at the reporting date. Non¬
monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using
the exchange rate at the date of the transaction.
c) Exchange difference
All exchange differences are accounted in the Statement of Profit and Loss.
2.9 FINANCIAL INSTRUMENTS
a) Date of recognition
Financial assets and financial liabilities are recognised in the Company's Standalone Balance sheet, when the
Company becomes a party to the contractual provisions of the instrument.
b) Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through
other comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow
characteristics and the Company’s business model for managing them. With the exception of trade receivables are
measured at transaction price determined under Ind AS 115 since it do not contain a significant financing component
and the Company has applied the practical expedient as well.
Financial assets and liabilities, with the exception of loans, debt securities, deposits and borrowings are initially
recognised on the trade date, i.e., the date that the Company becomes a party to the contractual provisions of the
instrument. Recognised financial instruments are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities 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 fair value through profit or loss are recognised
immediately in profit or loss.
c) Classification and Subsequent measurement of financial assets
Based on the business model, the contractual characteristics of the financial assets, the Company classifies and
measures financial assets in the following categories:
(i) Amortised cost
(ii) Fair value through other comprehensive income ('FVOCI')
(iii) Fair value through profit or loss ('FVTPL')
(i) Amortised cost -
The Company’s business model is not assessed on an instrument-by-instrument basis, but at a higher level of
aggregated portfolios being the level at which they are managed. The financial asset is held with the objective
to hold financial asset in order to collect contractual cash flows as per the contractual terms that give rise on
specified dates to cash flows that are solely payment of principal and interest (SPPI) on the principal amount
outstanding. Accordingly, the Company measures Cash and Bank balances, Loans, investment in subsidiaries,
trade receivables at amortised cost.
(ii) Fair value through other comprehensive income
The Company 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 business model for managing financial assets.
Movements in the carrying amount of such financial assets are recognised in Other Comprehensive Income
(‘OCI’), except interest/dividend income which is recognised in profit and loss. Amounts recorded in OCI are
subsequently transferred to the statement of profit and loss in case of debt instruments however, in case of
equity instruments it will be directly transferred to reserves. Equity instruments at FVOCI are not subject to an
impairment assessment.
(iii) Financial assets at fair value through profit and loss
Financial assets which do not meet the criteria for categorisation as at amortised cost or as FVOCI or either
designated, are measured at FVTPL. Subsequent changes in fair value are recognised in profit or loss. The
Company records investments in equity instruments and mutual funds at FVTPL.
d) Financial liabilities and equity instruments:
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.
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.
(i) 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.
(ii) 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-for trading 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.
e) Reclassification
Financial assets are not reclassified subsequent to their initial recognition, apart from the exceptional circumstances
in which the Company acquires, disposes of, or terminates a business line or in the period the Company changes its
business model for managing financial assets. Financial liabilities are not reclassified.
f) Derecognition
(i) 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.
(ii) 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.
g) 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.
h) Impairment of financial assets
(i) Trade Receivables
• The Company applies the Ind AS 109 simplified approach for measuring expected credit losses which uses
a lifetime expected loss allowance (ECL) for all trade receivables.
• The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from
its initial recognition.
• To measure the expected credit losses, trade receivables have been grouped based on shared credit risk
characteristics and the days past due. The expected loss rates are based on average of historical loss rate
adjusted to reflect current and available forward-looking information affecting the ability of the customers
to settle the receivables. The Company has also computed expected credit loss due to significant delay in
collection.
(ii) Other financial assets
In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ model (ECL), for evaluating impairment
of financial assets other than those measured at Fair value through profit and loss.
The Company recognises lifetime ECL for trade and other receivables and lease receivables. 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 may result from all
possible default events over the expected life of a financial assets. (refer Schedule on Receivables Note No 5)
For all other financial assets, the Company recognizes lifetime expected credit losses (ECL) based on the
months past due when there has been a significant increase in credit risk since initial recognition and when the
financial asset is credit impaired. Financial assets where no significant increase in credit risk has been observed
are considered to be in ‘stage 1’ and for which no ECL is recognized. Financial assets where there has been
significant increase in credit risk are considered to be in ‘stage 2’ and those which are in default or for which there
is an objective evidence of impairment are considered to be in ‘stage 3’. Lifetime ECL is recognized for stage 2
and stage 3 financial assets.
In the event of a significant increase in credit risk, allowance (or provision) is required for ECL towards all
possible default events over the expected life of the financial instrument (‘lifetime ECL’).
Financial assets (and the related impairment loss allowances) are written off either partially or in their entirety,
when there is no realistic prospect of recovery and the company has stopped pursuing the recovery. If the
amount to be written off is greater than the accumulated loss allowance, the difference is first treated as an
addition to the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are
credited to impairment on financial instruments in statement of profit and loss.
Without significant increase in credit risk since initial recognition (stage 1)
No ECL allowance is recognized for stage 1 financial asset as based on company’s assessment there is no significant
increase in credit risk. The Company has ascertained default possibilities on past behavioral trends and other
performance indicators.
Significant increase in credit risk (stage 2)
An assessment of whether credit risk has increased significantly since initial recognition is performed at each reporting
period by considering the change in the risk of default of the loan exposure. However, unless identified at an earlier
stage 90 days past due is considered as an indication of financial assets to have suffered a significant increase in
credit risk.
Credit impaired (stage 3)
The Company recognises a financial asset to be credit impaired and in stage 3 by considering relevant objective
evidence, primarily whether:
Contractual payments of either principal or interest are past due for more than 365 days;
The loan is otherwise considered to be in default.
Measurement of ECL
The assessment of credit risk and estimation of ECL are unbiased and probability weighted. It incorporates all
information that is relevant including information about past events, current conditions and reasonable forecasts
of future events and economic conditions at the reporting date. The Company has calculated ECL using three
components: a probability of default (PD), a loss given default (LGD) and the exposure at default (EAD). ECL is
calculated by multiplying the PD, LGD and EAD and adjusted for time value of money as necessary.
* Determination of PD is covered above for each stages of ECL.
* EAD represents the expected balance at default, taking into account the repayment of principal and interest from
the Balance Sheet date to the date of default together with any expected drawdowns of committed facilities.
* LGD represents expected losses on the EAD given the event of default, taking into account, among other
attributes, the mitigating effect of collateral value, if any,at the time it is expected to be realised.
2.10 IMPAIRMENT OF ASSETS OTHER THAN FINANCIAL ASSETS
a) The Company reviews the carrying amounts of its tangible and intangible assets at the end of each reporting period, to
determine whether there is any indication that those assets have impaired. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Recoverable amount
is determined for an individual asset, unless the asset does not generate cash flows that are largely independent of
those from other assets or group of assets.
b) Recoverable amount is the higher of fair value less costs to sell 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.
c) If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount.
d) When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is
increased to the revised estimate of its recoverable amount such that the increased carrying amount does not exceed
the carrying amount that would have been determined if no impairment loss had been recognised for the asset (or
cash-generating unit) in prior years. The reversal of an impairment loss is recognised in Statement of profit and loss.
2.11 CASH & CASH EQUIVALENTS
Cash and cash equivalents in the balance sheet comprise cash on hand, cheques and drafts on hand, balance with
banks in current accounts and short-term deposits with an original maturity of three months or less, which are subject to
an insignificant risk of change in value. For the purpose of the statement of cash flows, cash and cash equivalents, and
short-term deposits are considered integral part of the Company’s cash management. Outstanding bank overdrafts are not
considered as an integral part of the Company’s cash management.
2.12 REVENUE RECOGNITION
Revenue (other than for those items to which Ind AS 109, Financial Instruments, are applicable) is measured at the
transaction price, which includes but is not limited to estimating variable consideration, adjusting the consideration for
the effects of the time value of money, and measuring non-cash consideration as applicable. Ind AS 115, Revenue from
Contracts with Customers, outlines a single comprehensive model of accounting for revenue arising from contracts with
customers. Revenue from contracts with customers is recognised when control of the goods or services are transferred to
the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those
goods or services. The Company has generally concluded that it is the principal in its revenue arrangements, except for the
agency services below, because it typically controls the goods or services before transferring them to the customer.
The Company recognises revenue from contracts with customers based on a five step model as set out in Ind AS
115:
Step 1: Identify contract(s) with a customer: A contract is defined as an agreement between two or more parties that
creates enforceable rights and obligations and sets out the criteria for every contract that must be met.
Step 2: Identify performance obligations in the contract: A performance obligation is a promise in a contract with a
customer to transfer a good or service to the customer.
Step 3: Determine the transaction price: The transaction price is the amount of consideration to which the Company
expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected
on behalf of third parties.
Step 4: Allocate the transaction price to the performance obligations in the contract: For a contract that has more
than one performance obligation, the Company allocates the transaction price to each performance obligation in an amount
that depicts the amount of consideration to which the Company expects to be entitled in exchange for satisfying each
performance obligation.
Step 5: Recognise revenue when (or as) the Company satisfies a performance obligation.
Specific policies for the Company's different sources of revenue are explained below:
a) Fee 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 for the services rendered are recognised as and when they are
due.
b) 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.
c) Dividend Income
Dividends are recognised in the 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 to the Company and the amount of the
dividend can be measured reliably.
d) Depository Service Income
Revenue from depository services on account of annual maintenance charges is accounted for over the period of the
performance obligation. Revenue from depository services on account of transaction charges is recognised at the
point in time when the performance obligation is satisfied.
Contract Asset & Contract Liability
Revenue on time-and-material contracts are recognized as the related services are performed and revenue from the
end of the last invoicing to the reporting date is recognized as unbilled revenue.
Revenues in excess of invoicing are classified as contract assets (which we refer as unbilled revenue) while invoicing
in excess of revenues are classified as contract liabilities (which we refer to as unearned revenues).
2.13 EMPLOYEE BENEFITS
a) Short-term employee benefits
Short-term employee benefits are recognised as an expense 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
Retirement benefit in the form of provident fund, is a defined contribution scheme. The Company has no obligation,
other than the contribution payable to the provident fund. The Company recognises contribution payable to the
provident fund scheme as an expense, when an employee renders the related service.
c) Gratuity
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.
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.
Remeasurement gains or losses on long-term compensated absences that are classified as other long-term benefits
are recognised in Statement of profit and loss.
d) Leave encashment / compensated absences
The employees of the Company are entitled to compensated absences as per the policy of the Company. The
Company recognises the charge to the Statement of profit and loss and corresponding liability on account of such
non-vesting accumulated leave entitlement based on a valuation by an independent actuary. The cost of providing
compensated absences are determined using the projected unit credit method. Remeasurements as a result of
experience adjustments and changes in actuarial assumptions are recognised in statement of Profit and Loss
e) Employee shared based payments
Equity-settled share-based payments to employees are recognised as an expense at the fair value of stock options at
the grant date. The fair value determined at the grant date of the Equity-settled share-based payments is expensed on
a straightline basis over the vesting period, based on the Company’s estimate of equity instruments that will eventually
vest, with a corresponding increase in equity.
2.14 FINANCE COSTS
Finance costs include interest expense computed by applying the effective interest rate on respective financial instruments
measured at Amortised cost.
Financial instruments include bank term loans and overdraft facility. Borrowing costs directly attributable to the acquisition
or construction of a qualifying asset are capitalised as part of the cost of that asset, as per Ind AS 23. Other borrowing costs
are recognised as an expense in the period in which they are incurred.
Finance costs are charged to the Statement of profit and loss.
2.15 INCOME 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 is measured at the amount expected to be paid in respect of taxable income for the year in accordance
with the Income Tax Act, 1961. Current tax comprises the expected tax payable or receivable on the taxable income
or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. It is measured
using tax rates and tax laws enacted or substantively enacted at the reporting date.
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.
Current tax assets and current tax liabilities are offset only if the Company has a legally enforceable right to set off the
recognised amounts, and it intends to realise the asset and settle the liability on a net basis or simultaneously.
b) Deferred tax
(i) Deferred tax is provided using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements.
(ii) Deferred tax assets arising mainly on account of carry forward losses and unabsorbed depreciation under tax
laws are recognised only if there is reasonable certainty of its realisation.
(iii) Deferred tax assets on account of other temporary differences are recognised only to the extent that there is
reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets
can be realised.
(iv) Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or
substantively enacted at the Balance Sheet date.Changes in deferred tax assets / liabilities on account of
changes in enacted tax rates are given effect to in the standalone statement of profit and loss in the period of the
change. The carrying amount of deferred tax assets are reviewed at each Balance Sheet date.
(v) Deferred tax assets and deferred tax liabilities are off set when there is a legally enforceable right to setoff assets
against liabilities representing current tax and where the deferred tax assets and deferred tax liabilities relate to
taxes on income levied by the same governing taxation laws.
2.16 EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the
Company’s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax
thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, sub-division of shares etc. that have changed the number of equity
shares outstanding, without a corresponding change in resources. Diluted earnings per equity share have been computed
by dividing the net profit attributable to the equity share holders after giving impact of dilutive potential equity shares for
the year by the weighted average number of equity shares and dilutive potential equity shares outstanding during the year,
except where the results are anti-dilutive.
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