Note 1: Significant accounting policies
The principal accounting policies applied in the preparation
of these financial statements are set out below. These policies
have been consistently applied to all the years presented,
unless otherwise stated.
1. Company Overview
Wealth First Portfolio Managers Limited ("the Company")
is a public limited company incorporated on 16 April
2002 under the provisions of the Companies Act and is
domiciled in India. The Company was initially listed on
the NSE SME Platform and subsequently migrated to
the NSE Main Board with effect from 20 January 2021.
Further, the equity shares of the Company were listed
on the BSE Limited (Main Board) with effect from 30th
September 2025.
The Company is primarily engaged in the business of
distribution of various mutual fund schemes in India.
It is registered as a Stock Broker with the Securities and
Exchange Board of India (SEBI) and is a trading member of
NSE, BSE, MCX and NCDEX. The Company is also registered
as a Depository Participant with Central Depository
Services (India) Limited (CDSL) and provides demat and
depository services to its clients.
In addition to mutual fund distribution, the Company,
together with its subsidiaries, is engaged in the distribution
of a wide range of financial products and services,
including insurance products, Portfolio Management
Services (PMS), Alternative Investment Funds (AIFs),
unlisted securities, bonds, fixed deposits, stock broking
and other investment solutions.
The Company's registered office is at "Capitol House",
10 Paras-II, Near Campus Corner, Prahaladnagar, Anand
Nagar Ahmedabad Gujarat-380015.
2. Basis of preparation and presentation
A. Statement of Compliance:
The Standalone Financial Statements of Company
comprise the Standalone Balance Sheet as at March 31,
2026, and the Standalone Statement of Profit and Loss
(including Other Comprehensive Income), the Standalone
Statement of Cash Flows and the Standalone Statement
of Changes in Equity for the year ended March 31,2026,
and a summary of significant accounting policies and
other explanatory information, (together referred to as
the "Standalone Financial Statements"). The Standalone
Financial Statements have been prepared in accordance
with Indian Accounting Standards notified under Section
133 of the Companies (Indian Accounting Standards) Rules,
2015, as amended from time to time, the provisions of the
Companies Act, 2013 ("the Act") to the extent notified
and other accounting principles generally accepted in
India. The Company uses accrual basis of accounting. The
financial statements are presented in Indian Rupee (INR)
which is also the functional currency of the Company.
The financial statements are prepared on a going concern
basis, as the Management is satisfied that the Company
shall be able to continue its business for the foreseeable
future and no material uncertainty exists that may cast
significant doubt on the going concern assumption. In
making this assessment, the Management has considered
a wide range of information relating to present and future
conditions, including future projections of profitability,
cash flows and capital resources.
B. Presentation of financials statements
The Company is covered in the definition of Company
other than Non-Banking Financial Company as defined in
Companies (Indian Accounting Standards) (Amendment)
Rules, 2016. As per the format prescribed under Division
II of Schedule III to the Companies Act, 2013 on 11th
October, 2013 the Company presents the Balance Sheet,
the Statement of Profit and Loss and the Statement of
Changes in Equity in the order of liquidity.
C. Rounding off
All amounts disclosed in the Standalone Financial
Statements and notes have been rounded off to the
nearest thousands unless otherwise stated.
D. Regrouping / Reclassification
Previous year's figures have been re-grouped / re¬
classified wherever necessary to conform to the current
year's classification.
E. Use of estimates and judgments
The preparation of Standalone financial statements in
conformity with Ind AS requires management to make
estimates, judgments and assumptions that affect the
application of accounting policies and the reported
amounts of assets and liabilities (including contingent
liabilities) and disclosures as of the date of Standalone
financial statements and the reported amounts of revenue
and expenses for the reporting period. Actual results
could differ from these estimates. Accounting estimates
and underlying assumptions are reviewed on an ongoing
basis and could change from period to period. Appropriate
changes in estimates are recognized in the period in
which the Company becomes aware of the changes in
circumstances surrounding the estimates. Any revisions to
accounting estimates are recognized prospectively in the
period in which the estimate is revised and future periods.
Information about critical judgments in applying
accounting policies, as well as estimates and assumptions
that have the most significant effect to the carrying
amounts of assets and liabilities within the next financial
period, are included in the following notes:
i) Depreciation / amortisation and Useful
life of property, plant and equipment and
Intangible Assets:
Property, plant and equipment / intangible assets are
depreciated / amortised over their estimated useful
lives, after taking into account estimated residual
value. Management reviews the estimated useful
lives and residual values of the assets annually in
order to determine the amount of depreciation /
amortisation to be recorded during any reporting
period. (Refer Note 6)
ii) Recognition and measurement of provisions and
contingencies:
The Company recognises a provision if it is probable
that an outflow of cash or other economic resources
will be required to settle the provision. If an outflow
is not probable, the item is treated as a contingent
liability. Risks and uncertainties are taken into account
in measuring a provision. (Refer Note 7)
iii) Recognition of deferred tax assets:
Significant management judgement is required to
determine the amount of deferred tax assets that can
be recognised, based upon the likely timing and the
level of future taxable profits together with future
tax planning strategies and future recoverability of
deferred tax assets. (Refer Note 12)
iv) Fair Value Measurement
Fair value is the price at the measurement date,
at which an asset can be sold or paid to transfer a
liability, in an orderly transaction between market
participants. The Company's accounting policies
require, measurement of certain financial / non¬
financial assets and liabilities at fair values (either on a
recurring or non-recurring basis). Also, the fair values
of financial instruments measured at amortized cost
are required to be disclosed in the said Standalone
Financial Statement. The Company is required to
classify the fair valuation method of the financial /
non-financial assets and liabilities, either measured
or disclosed at fair value in the Standalone financial
statements, using a three level fair-value-hierarchy
(which reflects the significance of inputs used in
the measurement). Accordingly, 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. The three levels of the fair-value-
hierarchy are described below:
Level 1: Quoted (unadjusted) prices for identical
assets or liabilities in active markets
Level 2: Significant inputs to the fair value
measurement are directly or indirectly observable
Level 3: Significant inputs to the fair value
measurement are unobservable.
v) Measurement of defined benefit obligations:
The Company provides for gratuity, a defined benefit
retirement plan covering eligible employees, in
accordance with the provisions of applicable laws and
accounting standards.
During the current financial year, the gratuity liability
has been recognised based on an actuarial valuation
carried out by an independent actuary using the
Projected Unit Credit Method. The defined benefit
obligation and related expense are determined using
actuarial assumptions including discount rate, future
salary escalation, employee attrition and mortality
rates. Due to the long-term nature of the obligation,
such valuations are subject to significant estimates
and assumptions, and actual experience may differ
from those estimates. All actuarial assumptions are
reviewed at each reporting date.
Till the financial year ended 31 March 2026, gratuity
expense and liability were provided based on the
Management's estimates. Pursuant to obtaining the
actuarial valuation report during the current year,
the gratuity liability has been recognised based on
actuarial valuation and the impact thereof has been
accounted for in the financial statements for the year
under review. (Refer Note 8)
3. Revenue recognition
The Company recognises revenue from contracts with
customers (other than financial assets to which Ind AS
109 'Financial instruments' is applicable) based on Ind
AS 115 'Revenue from contracts with customers.'The
Company identifies contract(s) with a customer and its
performance obligations under the contract, determines
the transaction price and its allocation to the performance
obligations in the contract and recognises revenue only
on satisfactory completion of performance obligations.
Revenue is measured at the fair value of the consideration
received or receivable.
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 Revenue from contracts
with customers is recognised when control of the services
are transferred to the customer which can be either at
a point in time or over time, at an amount that reflects
the consideration to which the Company expects to be
entitled in exchange for those services.
Brokerage income is recognised as per contracted rates
at the point in time when transactions performance
obligation is satisfied on behalf of the customers on the
trade date and is reflected net of related stock exchange
charges, goods and service tax and security transaction
tax. These include brokerage fees charged per transaction
executed on behalf of the clients as per the contractually
agreed rate.
Dividend income on equity shares is recognised when the
Company's right to receive the payment is established,
which is generally when shareholders approve the
dividend.
Interest income is recognized on accrual basis.
4. Cash and cash equivalents
Cash and cash equivalents in the Standalone Balance
Sheet comprise cash at banks and on hand and short¬
term deposits with an original maturity of three months or
less, which are subject to an insignificant risk of changes
in value. Cash and cash equivalents for the purpose of
Standalone Statement of Cash Flow comprise cash and
cheques in hand, bank balances, demand deposits with
banks where the original maturity is three months or less.
5. Financial Instruments
A financial instrument is defined as any contract that gives
rise to a financial asset of one entity and a financial liability
or equity instrument of another entity. Trade receivables
and payables, loan receivables, investments in securities
and subsidiaries, debt securities and other borrowings,
preferential and equity capital etc. are some examples of
financial instruments.
All the financial instruments are recognised on the date
when the Company becomes party to the contractual
provisions of the financial instruments. For tradable
securities, the Company recognises the financial
instruments on trade date.
Financial Assets
Financial assets include cash, or an equity instrument of
another entity, or a contractual right to receive cash or
another financial asset from another entity. Few examples
of financial assets are loan receivables, investment in
equity and debt instruments, trade receivables and cash
and cash equivalents.
All financial assets are recognised initially at fair value.
Transaction costs that are directly attributable to the
acquisition of financial assets (other than financial assets
at Fair Value Through Profit or Loss) are added to or
deducted from the fair value of the financial assets, as
appropriate, on initial recognition.
Investment in subsidiaries
Investment in subsidiaries is recognised at cost and is not
adjusted to fair value at the end of each reporting period.
Cost of investment represents amount paid for acquisition
of the said investment.
The Company assesses at the end of each reporting period,
if there are any indications that the said investment may
be impaired. If so, the Company estimates the recoverable
value/amount of the investment and provides for
impairment, if any i.e. the deficit in the recoverable value
over cost.
Financial Assets (other than investment in subsidiaries)
Initial recognition and measurement
All financial assets are recognized at fair value on initial
recognition
Subsequent measurement
The Company has applied Ind AS 109 and classifies its
financial assets in the following measurement categories:
• Fair value through profit or loss (FVTPL);
• Fair value through other comprehensive income
(FVOCI); or
• Amortised cost.
Financial assets carried at amortised cost:
A financial asset is measured at the amortised cost if the
following condition is met:
• The asset is held within a business model whose objective
is to hold assets for collecting contractual cash flows.
Derecognition of Financial Assets
The Company derecognises a financial asset (or, where
applicable, a part of a financial asset) when:
• The right to receive cash flows from the asset have
expired; or
• The Company has transferred its right to receive cash
flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to
a third party under an assignment arrangement and the
Company has transferred substantially all the risks and
rewards of the asset.
Once the asset is derecognised, the Company does not
have any continuing involvement in the same.
On derecognition of a financial asset in its entirety, the
difference between:
• The carrying amount (measured at the date of
derecognition) and
• The consideration received (including any new asset
obtained less any new liability assumed) is recognised
in profit or loss.
Financial Liabilities
Initial recognition and measurement
Financial liabilities are measured at cost. Any gain or loss
on derecognition is also recognised in Statement of Profit
or loss.
Subsequent measurement
Financial liabilities are subsequently measured at cost
Derecognition
A financial liability is derecognised when the obligation
specified in the contract is discharged, cancelled or
expires.
6. Property, plant, equipment and Intangible assets
Property, plant and equipment are carried at historical
cost of acquisition less accumulated depreciation and
impairment losses, consistent with the criteria specified in
Ind AS 16 'Property, Plant and Equipment'
Subsequent costs are included in the asset's carrying
amount or recognized as a separate asset, as appropriate,
only 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.
On transition to Ind AS, the Company has elected to
continue with the carrying value of all of its property,
plant and equipment measured as per the previous GAAP
and use that carrying value as the deemed cost of the
property, plant and equipment.
Depreciation is calculated using the written down method
to allocate their cost, net of their residual values, over their
estimated useful life as determined by management.
As per information given to us these life is not less than
estimated useful life prescribed under schedule II to the
Companies Act, 2013. The Company provides pro-rata
depreciation from the date of installation till date the
assets are sold or disposed.
The carrying amount of an item of property, plant and
equipment is derecognized on disposal or when no
future economic benefits are expected from its use or
disposal. Gains and losses on disposals are determined
by comparing proceeds with carrying amount and are
recognized in the statement of profit and loss when the
asset is derecognized.
Other Intangible Assets
Intangible assets purchased are measured at cost or fair
value as of the date of acquisition, as applicable, less
accumulated amortisation and accumulated impairment,
if any. The amortization period and the amortization
method are reviewed at least at each financial year end.
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