(n) Provisions, Contingent Liabilities and Contingent
Assets
Provisions are recognized when there is a present
obligation (legal or constructive) as a result of past
event; and it is probable that an outflow of resources will
be required to settle the obligation, in respect of which a
reliable estimate can be made.
Provisions (excluding retirement benefits) are not
discounted to its present value and are determined based
on best estimate required to settle the obligation at the
Balance Sheet date, taking into account the risks and
uncertainties surrounding the obligation.
Contingent Liabilities are possible but not probable
obligations as on the Balance Sheet date, based on
the available evidence. Contingent Liabilities are not
recognised in the Ind AS Standalone Financial Statements.
Contingent Assets are neither recognized nor disclosed.
(o) Earnings per share
Basic earnings per share are calculated by dividing the net
profit or loss for the year attributable to equity shareholders
of the company by the weighted average number of equity
shares outstanding during the year.
The Weighted average number of equity shares outstanding
during the year is adjusted for events such as issue of
shares, bonus issue, bonus element in a rights issue, share
split, and reverse share split (consolidation of shares),
without a corresponding change in resources.
Diluted earnings per share are computed using the
weighted average number of equity shares and dilutive
potential equity shares outstanding during the year. For the
purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders
and the weighted average number of shares outstanding
during the period are adjusted for the effects of all dilutive
potential equity shares.
(p) Cash Flow Statement
Cash flows statement is prepared using the indirect
method, whereby profit before tax is adjusted for the
effects of transactions of a non-cash nature item of
income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and
financing activities of the Company are segregated.
(q) Share Based payment Arrangements
Equity settled share based payments to employees and
others are measured at the fair value of equity instruments
at the grant date. The fair value determined at the grant date
of the equity settled share based payments is expensed
on a straight line basis over the vesting period, based on
the Company's estimate of equity instrument that will
eventually vest, with a corresponding increase in equity.
(r) Segment Reporting:
An operating segment is a component of the Company
that engages in business activities from which it may earn
revenues and incur expenses, whose operating results
are regularly reviewed by the Company’s Chief Operating
Decision Maker ("CODM”) to make decisions for which
discrete financial information is available. Based on the
management approach as defined in Ind AS 108, the CODM
evaluates the Company’s performance based on only one
segment i.e. Services for distributions and sale of financial
products within India. The CODM has been identified as
CEO/CFO of the Company.
(s) Rounding of amounts
All amounts disclosed in the Ind AS Standalone Financial
Statements and notes have been rounded off to the nearest
thousand as per the requirement of Schedule III to the Act,
unless otherwise stated.
(t) Events after reporting date
Where events occurring after the balance sheet date
provide evidence of conditions that existed at the end of
the reporting period, the impact of such events is adjusted
within the financial statements. Otherwise, events after
the balance sheet date of material size or nature are
only disclosed.
The face value of equity shares of the Company has been subdivided from H 10 per equity share to H 5 per equity share vide
approval of shareholders in extraordinary general meeting held on 14 August 2018.
(ii) Terms/Rights attached to the Equity Shares
The Company has only one class of shares referred to as Equity Shares having a face value of H 5 per share. Each holder of
equity share is entitled to one vote per share.
In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the Shareholders.
Nature & Purpose of Reserves :
Securities Premium
Balance of Securities premium consist of issue of share over its face value. The balance will be utilised for issue of as per
provisions of Section 52 of the Companies Act, 2013.
Share Option Outstanding Account
The share option outstanding account is used to record the value of equity-settled share based payment transactions
with employees.
Retained earnings
Retained earnings comprises of the amounts that can be distributed by the Company as dividends to its equity share holders.
Other Comprehensive Income (OCI)
OCI includes remeasurement of defined employee benefit plan on account of actuarial gains and losses as per Ind AS 19
Employee Benefits and translation gain / loss.
The Company is recognizing and accruing the retirement benefits as per Indian Accounting Standard (Ind AS) 19 on "Employee
Benefits”. The details are as enunciated below as certified by an Independent Actuary.
A Defined Benefit Plans
Gratuity:
The gratuity payable to employees is based on the employee's service and last drawn salary at the time of leaving the
services of the Group and is in accordance with the Rules of the Company for payment of gratuity.
Inherent Risk:
The plan is defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining
to the plan. In particular, this exposes the Company to actuarial risk such as adverse salary growth, change in demographic
experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits
to employee in future. Since the benefits are lump sum in nature the plan is not subject to any longevity risks.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority,
promotion and other relevant factors including supply and demand in the employment market. The above information is
certified by the actuary.
There are no amounts included in the fair value of plan assets for:
i) Company’s own financial instrument
ii) Property occupied by or other assets used by the Company
Discount Rate:
Discount Rate for this valuation is based on Yield to Maturity (YTM) available on Government bonds having similar term to
decrement-adjusted estimated term of liabilities.
For valuation as at 31 March, 2026 the estimated term of liabilities is 14.55 years, corresponding to which YTM on
government bonds is 7.50%, after rounding to nearest 0.05%
Expected rate of return on assets:
It is the average long term rate of return expected on investments of the Trust Fund.
Salary Escalation Rate:
Salary escalation assumption has been set in discussions with the enterprise based on their estimates of overall long¬
term salary growth rates after taking into consideration expected earnings inflation as well as performance and seniority
related increases.
Withdrawal Rate:
Assumptions regarding withdrawal rates is based on the estimates of expected long term employee turnover within
the organization.
Mortality Rate:
It is based on Indian Assured Lives Mortality (2012-14) Ult. as issued by Institute of Actuaries of India for the
actuarial valuation.
22 EMPLOYEE BENEFIT EXPENSES (Contd..)
For Representative Office at Dubai
Defined Benefit Plans
Gratuity:
The gratuity payable to employees is based on the employee's service and last drawn salary at the time of leaving the
services of the company and is in accordance with the Rules of the Company for payment of gratuity.
Inherent Risk:
The plan is defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining
to the plan. In particular, this exposes the Company to actuarial risk such as adverse salary growth, change in demographic
experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits
to employee in future. Since the benefits are lump sum in nature the plan is not subject to any longevity risks.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority,
promotion and other relevant factors including supply and demand in the employment market. The above information is
certified by the actuary.
There are no amounts included in the fair value of plan assets for:
i) Company’s own financial instrument
ii) Property occupied by or other assets used by the Company
Discount Rate:
The discount rate is determined by reference to market yields at the end of the reporting period on high quality corporate
bonds (or, in countries where there is no deep market in such bonds, government bonds) of a currency and term consistent
with the currency and term of the post-employment benefit obligations.
The discount rate of 5.90% has been used based on Dubai bond yields as per the advice of the Enterprise.
Expected rate of return on assets:
It is the average long term rate of return expected on investments of the Trust Fund.
Salary Escalation Rate:
Salary escalation assumption is based on estimates of over all long-term salary growth rates after taking in to consideration
expected earnings inflation as well as performance and seniority related increases.
Withdrawal Rate:
Assumptions regarding withdrawal rates is based on the estimates of expected long term employee turnover within
the organization.
Mortality Rate:
It is based on Indian Assured Lives Mortality (2012-14) Ult. as issued by Institute of Actuaries of India for the
actuarial valuation.
Sensitivity Analysis:
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key
assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same
method used to calculate the liability recognized in the Balance Sheet has been applied. The methods and types of
assumptions used in preparing the sensitivity analysis did not change compared with the previous year.
22 EMPLOYEE BENEFIT EXPENSES (Contd..)
C Defined Contribution Plans
Amount recognized as an expense under the head "Contribution to Provident and other Funds in Note 22 "Employee Benefit
Expenses” of Statement of Profit and Loss towards Company's Contribution to Provident Fund is H 1155.73 Lakhs (FY 2024-25
H 1059.62 Lakhs).
D The Government of India has codified 29 existing labour legislations into a unified framework comprising four labour
Codes, viz Code on Wages 2019, Codes on Social Security 2020, Industrial Relations Code 2020, and Occupational Safety,
Health and Working conditions Code 2020 (Collectively referred to as the New Labour Codes'.) These Codes have been
made effective from November 21,2025.
Based on management's assessment and actuarial valuation, there is no material incremental impact on gratuity liability
arising from the implementation of the New Labour Codes.
26 OPERATING SEGMENTS
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker ("CODM”) of the company. The CODM, who is responsible for allocating resources and assessing performance of
operating segments, has been identified as CEO/CFO of the Company. The Company operates only in one business segment i.e.
Services for distribution and sale of financial products within India, hence does not have any reportable segment as per Indian
Accounting Standard 108 "operating segments
* Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number
of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders
of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted
for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive
potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined
independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods
presented for any share splits and bonus shares issues including for changes effected prior to the approval of the standalone financial statements by the
Board of Directors.
30 SHARE BASED PAYMENTS
Employees Share Option Plans
The Employee Stock Option Scheme ('the Scheme’) provides for grant of share options to the eligible employees and/or directors
("the Employees”) of the Holding Company. The Share Options are granted at an exercise price, which is either equal to the fair
market price, or at a premium, or at a discount to market price as may be determined by the Board.
ESOP Scheme 2018
During the financial year 2018-19, the Board had approved the Policy and the no. of options to be granted to the Employees that
will vest in a graded manner and which can be exercised within a specified period. The Board has approved 2,60,100 options at
an exercise price of H 5/- per option to the employees. During the meeting held on 14 June 2021, the Board has approved 20,000
options at an exercise price of H 5/- per option.
Fair Value of Options granted
The estimated fair value of each stock option granted is H 407 as on 11 March 2019. The fair value has been calculated by
applying Black-Scholes-Merton model. The model inputs the share price at respective grant dates, exercise price of H 5/- per
option, Standard Deviation of 51.15%, life of option being 3 months from the date of grant, and a risk-free interest rate of 7.35%.
The options were approved by the Board on 11 March 2019 under ESOP 2018 and were communicated to employees on1 April
2020. 20,000 options approved by the Board on 14 June 2021 under ESOP 2018 were communicated to the employees on
14 June 2021. ESOP 2018 has an exercise price of H 5 per option, and would vest over the period as under:
30 SHARE BASED PAYMENTS (Contd..)
ESOP Scheme 2025
The Board of Diretors at their meeting held on 12 January 2026, accorded approval for adoption of Employee Stock Option Plan
2025 of the Company ("the Stock Option Plan 2025”), which is in accordance with the Securities and Exchange Board of India
(Share Based Employee Benifits and Sweat Equity) Regulations, 2021. Stock option of 12,40,000 has been approved for grant @
H 5 per share under the Stock Option Plan 2025, which shall entitle the ESOP holders fully paid up equity share of face value of
H 5 per share against each option excercised.
Fair Value of Options granted
The estimated fair value of each stock option granted is H 3130 as on 12 January 2026. The fair value has been calculated by
applying Black-Scholes-Merton model. The model inputs the share price at respective grant dates, exercise price of H 5/- per
option, Standard Deviation of 36.11% and a risk-free interest rate of 6.57%.
As the share is listed on NSE (National Stock Exchange), Standard Deviation has been considered based on the annualised
volatility measured by NSE.
The options were approved by the Board on 12 January 2026 under ESOP 2025 and were communicated to employees on 1 April
2026 and would vest over the period as under:
Nature of CSR activities :
The Company has primarily spent the CSR expenditure for the purpose:
Promoting education, including special education and employment enhancing vocation skills especially among children, women,
elderly and the differently abled and livelihood enhancement projects.
Training to promote rural sports, nationally recognized sports, paralympic sports and olympic sports.
Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare.
The expenditure incurred during the year has been recommended by the CSR Committee and approved by the board of directors.
32 CAPITAL MANAGEMENT
For the purpose of Company's capital management, capital includes issued equity capital, share premium and all other equity
reserves attributable to equity holders of company. The Company manages its capital to ensure that it continues as going
concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.
33 BUSINESS COMBINATIONS
The Company had acquired following equity shares at fair value during earlier year(s). Purchase consideration for acquisition
of shares in below mentioned entities was paid by mode of cash only. The acquisitions were made to enhance the presence in
Wealth Management space. The other disclosures with respect to acquisition are as under.
AR Digital Wealth Private Limited (ARDWPL) is engaged in the business of Digital Wealth Management. The consideration paid
for shares of ARDWPL in Aug 2016 was H 252.00 Lakhs, in March 2018 was H 690.25 Lakhs, in Financial Year 2018-2019 was
H 4204.81 Lakhs and in November 2025 was H 138.60 Lakhs. The fair value per share for the aforesaid acquisitions was H 10,
H 256, H 332 and H 132.00 respectively.
Freedom Wealth Solutions Private Limited (FWSPL) is engaged in the business of Wealth Management. The consideration paid
for shares of FWSPL in September 2017 was H 237.16 Lakhs. The fair value per share for the aforesaid acquisitions was H 10.
The Board of Directors at their meeting held on 13 October 2025, has approved sale of the entire shareholding in Freedom Wealth
Solutions Private Limited. Accordingly The company has sold its entire holding in Freedom Wealth Solutions Private Limited
during the year ended 31 March 2026.
Freedom Intermediary Infrastructure Private Limited (FIINFRA) is engaged in the business of providing IT enabled services.
The consideration paid for shares of FIINFRA in FY 2019-20 was H 3598.95 Lakhs. The fair value per share for the aforesaid
acquisitions was H 434.
2,99,419 shares purchased on 13 February 2020 and 2,99,418 shares purchased on 31 March 2020 were acquired from AR
Digital Wealth Private Limited and 2,30,415 shares purchased on 31 March 2020 were acquired in a Right issue by Ffreedom
Intermediary Infrastructure Private Limited.
Pursuant to the Board of Director's meeting held on 13 January 2025, the Company incorporated a wholly-owned subsidiary
named "Anand Rathi Wealth UK Limited” in the United Kingdom on 03 February 2025. and 5,00,00,000 shares were subsicribed
for consideration of GBP 5,00,000 equivalent to INR 5,85,00,020.
36 Financial Ratios (Contd..)
(1) Current ratio increased due to increased short-term investment leading to increase in current assets.
(2) Debt equity ratio decreased due to repayment of vehicle loans during the financial year 2025-26 & increase in total equity.
(3) Net Capital to turnover ratio decreased due to increase in working capital more than the increase in turnover.
(4) Due to increase in capital employed, return on capital employed has been decreased.
Explanations to items included in computing the above ratios
1. Current Ratio: Current Asset (excluding assets held for sales) over Current Liabilities.
2. Debt-Equity Ratio: Debt (includes Current & Non-Current Borrowings excluding lease liabilities) over total share holders
equity (Includes average of opening and closing equity capital and other equity).
3. Debt Service Coverage Ratio: Earnings available for debt service (includes profit after tax, depreciation and finance cost) over
debt service (includes interest on borrowings - car loan and property loan, principal repayment made and lease payments).
4. Return on Equity Ratio: Profit After Tax over Equity (includes average of opening and closing equity capital and other equity).
5. Net capital turnover ratio: Revenue from operations over average working capital (current assets net of current liabilities).
6. Net profit ratio: Profit After Tax over Revenue from operations.
7. Return on Capital employed: Earnings Before Interest & Tax over Capital Employed (which includes tangible net worth
and total debt).
Note: a. Considering the nature of business activities, only ratios applicable to the company are provided.
37 FINANCIAL INSTRUMENT - FAIR VALUES
Accounting classification and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels
in the fair value hierarchy.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either
directly or indirectly.
Note 1 - Figures in brackets in the above table represent previous year numbers.
Note 2 - Valuation techniques used to determine the fair values:
a. Market approach method has been used to determine the fair value of unquoted equity shares of the other companies.
b. The Company has made necessary adjustments to the observable and unobservable inputs used for the purpose of valuation
Fair value measurements using significant unobservable inputs (level 3)
The fair value of financial instruments that are not traded in an active market (Non-Principal Protected Structured Product) is
determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-
specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Investment in Equity Shares of Subsidiaries of H 9,469.61 Lakhs (PY H 8,983.17 Lakhs) have been measured at cost.
(i) The fair value of the financial assets and liabilities are included at the amount at which the instrument can be exchanged
in the current transaction between willing parties, other than in a forced or liquidation sale.
(ii) Financial instruments carried at amortised cost such as cash and margin money deposits, trade and other receivables,
trade payables, borrowings and other current financial instruments approximate at their fair values largely due to short term
maturities of these instruments.
38 FINANCIAL INSTRUMENTS - RISK MANAGEMENT
Risk management framework
The Company’s activities expose it to a variety of financial risks, including market risk, credit risk, liquidity risk and currency
risk. The Company’s primary risk management focus is to minimize potential adverse effects on revenue. The Company’s risk
management assessment and policies and processes are established to identify and analyze the risks faced by the Company,
to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and
management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities.
The Board of Directors and the Audit Committee is responsible for overseeing the Company’s risk assessment and management
policies and processes.
38 FINANCIAL INSTRUMENTS - RISK MANAGEMENT (Contd..)
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
manages liquidity risk by maintaining sufficient cash and marketable securities. The cash flows, funding requirements and
liquidity of Company is regularly monitored by Management of the Company. The objective is to optimize the efficiency and
effectiveness of Company's capital resources.
Exposure to liquidity risk
The table below analyses the Company's financial liabilities into relevant maturity groupings based on their contractual maturities
for all financial liabilities
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company’s receivables from customers, security deposits and
investment securities.
Customer credit risk is managed by company as per its policy, procedures and control relating to customer credit risk. Credit
quality of a customer credit risk is assessed based on an extensive credit rating scoreboard and individual credit limits are
defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and all possible steps
taken to timely realise them.
The credit risk on Fixed Deposits with Banks, Bank Balances, Investments in Mutual Fund is limited because the counterparties
are Banks, Exchanges and Mutual Fund houses who are structured market players.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market Risk comprises three types of risk: a.) Interest Rate Risk, b.) Currency Risk and c.) Other Price Risk such as equity
price risk etc.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding
floating rate debt included in borrowings.
Currency Risk
The Company has a Foreign Representative Office in Dubai since March 07, 2021 vide its approval from UAE Government
and renewed till March 06, 2026. The Company has Fixed Assets, Current Assets, Current liabilities and Expenses of Foreign
Representative office situated at Dubai (UAE): The Company is exposed to foreign exchange risk arising from foreign currency
transactions with respect to the AED. Foreign Currency Risk is the risk that the Fair Value or Future Cash Flows of an exposure
will fluctuate because of changes in foreign currency rates. Exposures can arise on account of the various assets and liabilities
which are denominated in currencies other than Indian Rupee.
39 DIVIDENDS
The final dividends on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are
recorded as a liability on the date of declaration by the Company’s Board of Directors. Income Tax consequences of dividends
on financial instruments classifies as equity will be recognized according to where the entity originally recognized those past
transactions or events that generated distributable profits.
The Company declares and pay the dividends in Indian rupee. Companies are required to pay/distribute dividend after deducting
applicable withholding income taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange
and is also subject to withholding tax at applicable rates.
During the year ended 31 March 2026 on account of the final dividend for FY 2024-25 and interim for FY 2025-26 the Company
has incurred net cash outflow of H 10,792.68 Lakhs.
The Board of Directors in their meeting on 09 April 2026 recommend a final dividend of H 7 per equity share for the financial
year ended 31 March 2026. This pay-out is subject to the approval of shareholders in the Annual General Meeting (AGM) of the
Company and if approved would result in a net cash outflow of approximately H 5,811.44 Lakhs.
* Final Dividend for FY 2023-24 and Interim Dividend for FY 2024-25 has been paid before issue of bonus share i.e. 1:1.
40 Pursuant to approval given by its shareholders vide postal ballot on 19 May 2024, for buyback by the Company of up to 3,70,000
equity shares of H 5 each (being 0.88% of the total number of equity shares in the paid-up equity capital of the Company)
from the shareholders of the Company on a proportionate basis by way of a tender offer at a price of H 4,450 per equity share
for an aggregate amount not exceeding H 16,465 Lakhs, in accordance with the provisions contained in the Securities and
Exchange Board of India (Buy-back of Securities) Regulations, 2018 and the Companies Act, 2013 and rules made thereunder.
All the equity shares bought back were extinguished on 27 June 2024. Capital redemption reserve was created to the
extent of share capital extinguished. The premium on buyback of H 16,446.50 Lakhs was utlised from reserves. Further, the
Company has incurred buy back expenses of H 3,997.59 Lakhs including buyback tax, which have been adjusted from reserves.
Earnings per equity share for each of the three months ended 30 June 2024, 30 September 2024, 31 December 2024 and 31
March 2025 will not add up to earnings per equity share for the year ended 31 March 2025, on account of buyback of equity
shares.
41 Pursuant to the Board of Director's meeting held on 13 January 2025, the Company has incorporated a wholly-owned subsidiary
under the name "Anand Rathi Wealth UK Limited” in United Kingdom on 03 February 2025.
42 During the FY 2025-26, the Company has incorporated its wholly owned subsidiary in the name of Anand Rathi FME (IFSC)
Private Limited at Gift City, Gandhi Nagar, Gujarat, India on 16 Februray 2026.
43 The Board of Directors, at its meeting held on 13 January 2025 have approved and recommended the issuance of fully paid
bonus equity shares in the ratio of 1:1 out of its free reserves. Pursuant to the shareholders approval through postal ballot on
16 February 2025. Bonus allotment Committee in its meeting held on 06 March 2025, issued and allotted 4,15,10,317 fully paid
up Bonus Equity shares of H 5 each in the ratio of 1:1. The number of equity shares post Bonus issue increased to 8,30,20,634.
Earnings per share for all previous periods have been proportionately adjusted for the bonus issue in the ratio of 1:1 i.e. 1 (one)
bonus equity share on every 1 (one) fully paid-up equity shares held.
44 COST SHARING
Anand Rathi Financial Services Ltd, Anand Rathi Global Finance Ltd and Anand Rathi Share & Stock Brokers Ltd incurs expenditure
in the nature of Business support costs, etc. which is for the benefit of the company. The cost so expended is reimbursed by the
company on the basis of number of employees, time spent by employees, actual billings, etc. Accordingly, the expenditure noted
under the head 'Business Support charges’ in Note No. 24 are inclusive of the reimbursements.
45 ADDITIONAL REGULATORY INFORMATION
a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the company to or in any other person(s) or entity(entities), including foreign entities ("Intermediaries”),with
the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate
Beneficiaries”) or provide any guarantee, security or like on behalf of the Ultimate Beneficiaries, other than those disclosed
in the notes to accounts
b) No funds have been received by the company from any person(s) or entity(entities), including foreign entities ("Funding
Parties”), with the Understanding, whether recorded in writing or otherwise , that the company shall , whether directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party
("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, other than
those disclosed in the notes to accounts
c) The company does not have any transactions during the year with the struck off companies or balance at the end of year
with such companies.
d) The company does not have any Benami property and no proceedings have been initiated or pending against the company
for holding any Benami property, under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the rules
made thereunder
e) The company has not traded or invested in Crypto currency or Virtual Currency during the current and previous financial year.
f) The company has not undertaken any transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey
or any other relevant provisions of the Income Tax Act, 1961).
g) The company has not been declared a 'Wilful Defaulter’ by any bank or financial institution (as defined under the Companies
Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
46 The figures of the previous years have been regrouped / rearranged wherever necessary. There are no significant regrouping /
re-classification during the year under report.
As per our attached report of even date.
For and on Behalf of For and on Behalf of Board of Directors
KKC & Associates LLP
Chartered Accountants
(formerly Khimji Kunverji & Co LLP) Anand Rathi Rakesh Rawal
Registration No.:105146W/W100621 Chairman and Whole-time Director
Non-Executive Director and CEO
DIN : 00112853 DIN : 02839168
Devang Doshi
Partner
Membership No: 140056 Pravin Jogani Rajesh Bhutara
Company Secretary Chief Financial Officer
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