(l) Provisions, Contingent Liabilities and Contingent Assets
General
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the
Company expects some or all of a provision to be reimbursed, for example, under an insurance contract,
the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually
certain. The expense relating to a provision is presented in the statement of profit and loss net of any
reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised as a finance cost.
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of
a past event and it is probable that an outflow of resources, that can be reliably estimated, will be required
to settle such an obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected
future cash flows to net present value using an appropriate pre-tax discount rate that reflects current
market assessments of the time value of money and, where appropriate, the risks specific to the liability.
Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions
are reviewed at each reporting date and are adjusted to reflect the current best estimate.
A present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a
contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from
past events, the existence of which will be confirmed only by the occurrence or non -occurrence of one or
more uncertain future events not wholly within the control of the Company.
Claims against the Company where the possibility of any outflow of resources in settlement is remote, are
not disclosed as contingent liabilities.
Contingent assets are not recognised in financial statements since this may result in the recognition of
income that may never be realised. However, when the realisation of income is virtually certain, then the
related asset is not a contingent asset and is recognised.
(m) Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are
recognised in respect of employees’ services up to the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.
(ii) Other long-term employee benefit obligations
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after
the end of the period in which the employees render the related service. They are therefore measured as
the present value of expected future payments to be made in respect of services provided by employees
up to the end of the reporting period using the projected unit credit method. The benefits are discounted
using the market yields at the end of the reporting period that have terms approximating to the terms of
the related obligation.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting period, regardless of
when the actual settlement is expected to occur.
(iii) Post-employment obligations
The company operates the following post-employment schemes:
(i) Retirement and other employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short¬
term employee benefits. These benefits include short term compensated absences such as paid annual
leave. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the
services rendered by employees is recognised as an expense during the period. Benefits such as salaries
and wages, etc. and the expected cost of the bonus/ ex-gratia are recognised in the period in which the
employee renders the related service.
(ii) Defined contribution schemes
All the employees of the Company are entitled to receive benefits under the Provident Fund and Employees
State Insurance scheme, defined contribution plans in which both the employee and the Company
contribute monthly at a stipulated rate. The Company has no liability for future benefits other than its annual
contribution and recognises such contributions as an expense in the period in which employee renders
the related service. If the contribution payable to the scheme for service received before the balance sheet
date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability
after deducting the contribution already paid. If the contribution already paid exceeds the contribution due
for services received before the balance sheet date, then excess is recognised as an asset to the extent
that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.
(iii) Defined benefit schemes
The Company provides for the gratuity, a defined benefit retirement plan covering all employees. The plan
provides for lump sum payments to employees upon death while in employment or on separation from
employment after serving for the stipulated years mentioned under the Payment of Gratuity Act, 1972. The
present value of the obligation under such defined benefit plan is determined based on actuarial valuation,
carried out by an independent actuary at each balance sheet date, using the Projected Unit Credit Method,
which recognises each period of service as giving rise to an additional unit of employee benefit entitlement
and measures each unit separately to build up the final obligation. The obligation is measured at the present
value of the estimated future cash flows. The discount rates used for determining the present value of the
obligation under defined benefit plan are based on the market yields on government securities as at the
balance sheet date. Net interest recognised in the statement of profit and loss is calculated by applying the
discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The
actual return on the plan assets above or below the discount rate is recognised as part of re-measurement
of net defined liability or asset through OCI. An actuarial valuation involves making various assumptions
that may differ from actual developments in the future. These include the determination of the discount
rate, attrition rate, future salary increases and mortality rates. Due to the complexities involved in the
valuation and its long-term nature, these liabilities are highly sensitive to changes in these assumptions. All
assumptions are reviewed annually.
Re-measurement, comprising of actuarial gains and losses and the return on plan assets (excluding
amounts included in net interest on the net defined benefit liability), are recognised immediately in the
balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which
they occur. They are not reclassified to the statement of profit and loss in subsequent periods.
Gratuity obligations
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value of plan
assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit
method.
The present value of the defined benefit obligation denominated in INR 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. The benefits
which are denominated in currency other than INR, the cash flows are discounted using market yields
determined by reference to high-quality corporate bonds that are denominated in the currency in which
the benefits will be paid, and that have terms approximating to the terms of the related obligation.
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 and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive income.
They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognised immediately in profit or loss as past service cost.
Post-employment medical obligations
Company provide post-retirement healthcare benefits to their retirees. The entitlement to these benefits
is usually conditional on the employee remaining in service up to retirement age and the completion of a
minimum service period. The expected costs of these benefits are accrued over the period of employment
using the same accounting methodology as used for defined benefit plans. Remeasurement gains and
losses arising from experience adjustments and changes in actuarial assumptions are charged or credited
in other comprehensive income in the period in which they arise.
Defined contribution plans
The company pays provident fund contributions to publicly administered provident funds as per local
regulations. The company has no further payment obligations once the contributions have been paid.
The contributions are accounted for as defined contribution plans and the contributions are recognised
as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the
extent that a cash refund or a reduction in the future payments is available.
(iv) Share-based payments
Share-based compensation benefits are provided to employees via the Employee Option Plan and share-
appreciation rights.
Employee options
The fair value of options granted under the Employee Option Plan is recognised as an employee benefits
expense with a corresponding increase in equity. The total amount to be expensed is determined by
reference to the fair value of the options granted:
• including any market performance conditions (e.g., the entity’s share price)
• excluding the impact of any service and non-market performance vesting conditions (e.g. profitability,
sales growth targets and remaining an employee of the entity over a specified time period), and
• including the impact of any non-vesting conditions (e.g. the requirement for employees to save or
holdings shares for a specific period of time).
The total expense is recognised over the vesting period, which is the period over which all of the specified
vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number
of options that are expected to vest based on the non- market vesting and service conditions. It recognises the
impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
Share appreciation rights
Liabilities for the company’s share appreciation rights are recognised as employee benefit expense over
the relevant service period. The liabilities are remeasured to fair value at each reporting date and are
presented as employee benefit obligations in the balance sheet.
(iv) Bonus Plans
The company recognises a liability and an expense for bonuses. The company recognises a provision
where contractually obliged or where there is a past practice that has created a constructive obligation.
(vi) Termination benefits
Termination benefits are payable when employment is terminated by the company before the normal
retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The
company recognises termination benefits at the earlier of the following dates: (a) when the company can
no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a restructuring
that is within the scope of Ind AS 37 and involves the payment of terminations benefits. In the case of an
offer made to encourage voluntary redundancy, the termination benefits are measured based on the
number of employees expected to accept the offer. Benefits falling due more than 12 months after the end
of the reporting period are discounted to present value.
(n) Contributed equity
Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
(o) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of
the reporting period.
(p) Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing:
• the profit attributable to owners of the company
• by the weighted average number of equity shares outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the year and excluding treasury shares
Dilluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account:
- the after income tax effect of interest and other financing costs associated with dilutive potential equity
- the weighted average number of additional equity shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.
3. Significant accounting judgements, estimates and assumptions
The preparation of financial statements requires the use of accounting estimates which, by definition, will
seldom equal the actual results. Management also needs to exercise judgement in applying the company’s
accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity,
and of items which are more likely to be materially adjusted due to estimates and assumptions turning
out to be different than those originally assessed. Detailed information about each of these estimates and
judgements is included in relevant notes together with information about the basis of calculation for each
affected line item in the financial statements.
Critical estimates and judgements
The areas involving critical estimates or judgements are:
• Estimation of current tax expense and payable
• Estimated fair value of unlisted securities and Debt Instruments
• Estimation of defined benefit obligation
• Estimation of provision for warranty claims
• Estimation of fair values of contingent liabilities and contingent purchase consideration in a business
combination
• Recognition of revenue
• Recognition of deferred tax assets for carried forward tax losses
• Impairment of trade receivables and other financial assets
Estimates and judgements are continually evaluated. They are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the company and that
are believed to be reasonable under the circumstances.
4. New Accounting standards, amendments and interpretations notified by Ministry of Corporate
Affairs (“MCA”):
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended
March 31, 2025, MCA has not notified any new standards or amendments to the existing standards
applicable to the Company.
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current
tax assets and current tax liabilities and the deferred tax assets and deferred tax liablities relate to income
taxes levied by the same tax authority Long term capital losses which arose in India of INR 1,85,49,928 (PY
: Rs. 1,78,25,285) that are available for offsetting for eight years against future long term capital gains of
the company. Majority of these losses will expire in assessment year 2027-28. Considering the probability
of availability of future LTCG in the period in which tax losses expire, deferred tax assets have not been
recognised in respect of tax lossses carried forward by the Company.
ii. Leasing Arrangements
Certain investment properties are leased to tenants under long term operating leases with rentals payable
monthly. Minimum Lease payments receivable under non-cancellable operating leases of investment
properties are as follows:
iii. Contractual Obligations
Refer to Note 39 for disclosure of contractual obligations to purchase, construct or develop investment
property or for its repairs, maintenance or enhancements.
Fair Value
The fair value (Carrying Value) of the investment property (Buildings) as at March 31, 2025 is INR 152.28
Lakhs (March 31, 2024: INR 203.03 Lakhs)
The carrying value of investment property is considered as fair value which have been determined by
management.
Note : The Company has not revalued any of its investment property during the years ended March
31, 2025 and March 31, 2024. Hence, the amount of change in gross and net carrying amount due to
provision for loss allowance.
i. Property, Plant and Equipment pledged as security against borrowings by the company
No property, plant and equipment has been pledged as security by the company
ii. Contractual Obligations
Refer to Note 39 for disclosure of contractual commitments for the acquisition of property, plant and
equipment.
iii. Refer note 54 for Title deeds of Immovable Properties not held in name of the Company
iv. The Company has not revalued any of its property, plant and equipment during the years ended March
31, 2025 and March 31, 2024. Hence, the amount of change in gross and net carrying amount due to
revaluation and impairment losses/reversals is NIL.
Micro, Small and Medium Enterprises:
Based on and to the extent of the information received by the Company from the suppliers during the year
regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED
Act), the total outstanding dues of Micro and Small enterprises, which are outstanding for more than the
stipulated period and other disclosures as per the Micro, Small and Medium Enterprises Development
Act, 2006 (hereinafter referred to as “the MSMED Act”) are given below:
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current
assets are sufficient to meet the obligations related to the lease liabilities as and when they fall due. The
Company has several lease contracts that includes option to extend or terminate. These options are
negotiated by the Management to provide flexibility in managing the leased-asset portfolio and align with
Company’s business needs. Management exercises significant judgement in determining whether these
extension and termination are reasonably certain to be exercised. The company has not defaulted in its
lease obligations.
Terms/rights attached to equity shares
The company has only one class of equity shares having par value of INR 10 per share. Each holder of
equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting.
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.
iv) The Company has not proposed/declared/paid any dividend during the year.
v) Shares held by holding/ ultimate holding company and / or their subsidiaries / associates : NIL
vi) Aggregate number of equity shares issued as bonus, shares issued for consideration other than cash
and shares bought back during the period of five years immediately preceding the reporting date: Nil
vii) Shares reserved for issue under options: Nil
Nature of reserves
22.1 Statutory Reserve (under section 45 IC of The Reserve bank of India Act,1934) : The Company
created a reserve pursuant to section 45 IC the Reserve Bank of India Act, 1934 by transferring amount
not less than twenty percent of its net profit every year as disclosed in the statement of profit and loss and
before any dividend is declared.
22.2 Securities premium : The amount received in excess of face value of the equity shares is recognised
in securities premium. The account is utilised in accordance with the provisions of the Companies Act
2013.
22.3 Share based payment reserves for employees : The Company has share option schemes under
which options to subscribe for the Company’s shares have been granted to certain executives and senior
employees. This reserve is used to recognise the value of equity-settled share-based payments provided
to employees.
22.4 Retained earnings : Retained earnings are the profits that the Company has earned till date, less any
transfers to statutory reserve.
(i) Leave Obligations
The leave obligations cover the company’s liability for sick and earned leave.
The amount of the provision of INR 80,184 (March 31, 2024: INR 68,223) is presented as current,
since the company does not have an unconditional right to defer settlement for any of these obligations.
(ii) Post Employement obligations
a) Gratuity
The company provides for gratuity for employees in india as per the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of
gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed
proportionately for 15 days salary multiplied by number of years of service.
The gratuity plan is a funded plan and the company makes contributions to recognised funds in India.
The company’s plan is fully fund the liability and maintains a target level of funding to be maintained over
a period of time based on estimations of expected gratuity payments.
The amount recognised in the balance sheet and the movement in the net defined benefit
obligation over the period are as follows:
The Company expects to contribute INR 5.83 lakhs to the fund in the next financial year
The average duration of the defined benefit plan obligation at the end of the reporting period
is 8.79 years
(iii) Defined contribution plans:
The company also has defined contribution plans. Contributions are made to provident fund in India for
employees at the rate of 12% of basic salary as per regulations. The contributions are made to Provident
fund and pension scheme of Employees’ Provident Fund Organisation which is administered by the
government. The obligation of the company is limited to the amount contributed and it has no further
contractual nor any constructive obligation. The expense recognised during the period towards defined
contribution plan is INR 6.55 lakhs (March 31, 2024: INR 7.22 lakhs)
38. Apollo finvest employee stock option scheme 2022
Apollo Finvest Employee Stock Option Scheme 2022 has been formulated by the Board of the Company
and approved by it at its meeting held on August 09, 2022, subject to the authority vested in it by, and
approval of, the shareholders by way of special resolution passed on September 21, 2022.
The main objective of such schemes is to give back to the employees and align their interests with those
of the company and its shareholders, providing an opportunity to employees to share the growth of the
company and to create long-term wealth in the hands of employees. The main objective of such give
employees who are performing well, an opportunity to gain from the company’s performance, thereby
acting as a retention tool and to attract best talent available in the market. The employee reward through
this mechanism has been well tested over a period of time.
There shall be a minimum period of one year or such time period as may be prescribed under the Applicable
Law including but not limited to Securities and Exchange Board of India (Share Based Employee Benefits
and Sweat Equity) (SBEBSE) Regulations, 2021 between the Grant of Options and Vesting of Options. The
Vesting shall extend upto such number of years as the Board may decide. The maximum Vesting Period
may extend up to 10 years from the date of Grant of Options.
Brief description of the nature of each contingent liability
Demand raised by Income Tax department against which the Company has preferred an appeal. Future
cash outflows in respect of above are determinable only on receipt of judgements/ decisions pending with
various forums/ authorities. It is not practicable for the Company to estimate the timings of the cashflows, if
any, in respect of the above pending resolution of the respective proceedings. The management believes
that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s
financial position and results of operations. No contingent liability has been recognized for past orders, as
the ITAT has ruled in our favor; the absence of an AO order giving effect to the same does not warrant a
provision.
(v) Terms and conditions of transactions with related parties
All the arrangements and transactions entered into by the company with related parties, during the
financial year 2024-25 were in ordinary course of business and on arm’s length price. There have been
no guarantees provided or received for any related party receivables and payables. For the year ended
March 31, 2025, the company has not recorded any impairment of receivables relating to amount owed
by related parties (March 31, 2024: INR NIL). This assessment is undertaken each financial year through
examining the financial position of the related party and market in which the related party operates.
41. Segment reporting
1. 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 the operating segments, has been identified as the Promoter of
the Company. The Company operates only in one Business Segment i.e. finance and investments, since
the nature of the business are exposed to similar risks and return profiles, hence they are collectively
operating under a single segment. Accordingly the Company does not have any reportable Segments as
per Indian Accounting Standard 108 “Operating Segments”.
2. The Company is not reliant on revenues from transactions with any single external customer and does
not receive 10% or more of its revenues from transactions with any single external customer.
3. Geographical Segment : Refer note no. 6 and 7
42. Fair value measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction in the principal (or most advantageous) market at the measurement date under current
market conditions (i.e. an exit price), regardless of whether that price is directly observable or estimated
using a valuation technique. In order to show how fair values have been derived, financial instruments are
classified based on a hierarchy of valuation techniques, as explained in material accounting policies of the
year ended March 31, 2025.
The management assessed that the fair value of cash and cash equivalent, trade receivables, trade
payables, loans, other current financial assets and liabilities and deposits approximate their carrying
amounts largely due to the short term maturities of these instruments.
The fair values of the equity and debt investment which are quoted, are derived from quoted market
prices in active markets.
The fair value of the financial instruments that are not traded in an active market i.e. are unquoted is
determined using valuation techniques with the exception of certain investments, where cost has
been considered as an appropriate estimate of fair value because of a wide range of possible fair value
measurements and cost represents the best estimate of fair values within that range. The Company uses
its judgment to select a variety of methods and make assumptions that are mainly based on market
conditions existing at the end of each reporting period.
The fair values of non current borrowings are based on discounted cash flows using a current borrowing
rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable
inputs, including own credit risk.
ii. Fair Value Hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are recognised and measured at fair value. To provide an indication about the reliability
of the inputs used in determining fair value, the company has classified its financial instruments into three
levels prescribed under the accounting standard. An explanation of each level follows underneath the
table:
There have been no transfers among Level 1, Level 2 and Level 3 during the period
Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed
equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity
instruments (including bonds) which are traded in the stock exchanges is valued using the closing price
as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2 - The fair value of financial instruments that are not traded in an active market (for example, traded
bonds, over the counter derivatives) 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.
Level 3 - If one or more of the significant inputs are not based on observable market data, the instrument
is included in level 3. This is the case for unlisted shares included in level 3.
iii. Valuation technique used to determine fair value
Specific Valuation techniques used to value financial instruments include:
- the use of quoted market prices or dealer quotes for similar instruments
- the fair value of the remaining financial instruments is determined using discounted cash flow analysis
iv. Valuation processes
The finance department of the company includes a team that performs the valuations of financial assets
and liabilities required for financial reporting purposes, including level 3 fair values. This team reports
directly to the Chief Financial Officer (CFO) and the audit committee. Discussions of valuation processes
and results are held between the CFO, AC and the valuation team at least once every three months, in line
with the company’s quarterly reporting periods.
43. Financial risk activities
The company’s activity expose it to market risk, liquidity risk and credit risk. This note explains the
sources of risk which the entity is exposed to and how the entity manages
the risk and the impact in the financial statements.
(A) Credit risk
Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk
arises from cash and cash equivalents, investments carried at amortised cost and deposits with banks and
financial institutions, as well as credit exposures to customers including outstanding receivables and loans.
i. Credit risk management
The company assesses and manages credit risk based on internal credit rating system. Internal credit
rating is performed on a group basis for loans with different characteristics.
Significant estimates and judgements :
In general, it is presumed that credit risk has significantly increased since initial recognition if the payments
are more than 30 days past due.
A default on a financial asset is when the counterparty fails to make contractual payments within 90 days
of when they fall due and is therefore calculated in Stage 3 (Credit impaired). This definition of default
is determined by considering the business environment in which entity operates and other macro¬
economic factors.
(a) Probability of Default Estimation (PD) : It is an estimate of the likelihood of default over a given time.
PD estimation process is done based on historical internal data available with the Company. Company
calculates the 12 month PD by taking into account the past historical trends and its credit performance.
In case of assets where there is a significant increase in credit risk, lifetime PD has been applied which is
computed based on survival analysis. For credit impaired assets, a PD of 100% has been applied.
(b) Exposure at Default (EAD) : The exposure at default (EAD) represents the gross carrying amount of the
financial instrumentssubjecttothe impairment calculation.To calculatethe EAD fora Stage 1 loan,the Company
assesses the possible default events within 12 months for the calculation of the 12 months ECL. For stage 2 and
stage 3 financial assets, the exposure at default is considered for events over the lifetime of the instruments.
(c) Loss Given Default (LGD) : It is an estimate of the loss arising in case where a default occurs. It is based
on the difference between the contractual cash flows due and those that the Company would expect to
receive, including from the realisation of any security, if any.
The company considers the probability of default upon initial recognition of asset and whether there has
been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess
whether there is a significant increase in credit risk the company compares the risk of a default occurring
on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers
available reasonable and supportive forwarding-looking information.
# The change in the loss allowance is due to changes in the probability of default used to calculate 12-month
expected credit loss
Policy for write off of loan assets:
Loans are written off when the Company has no reasonable expectations of recovering the financial asset
(either in its entirety or a portion of it). This is the case when the Company determines that the borrower
does not have assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off.
(B) Liquidity risk
Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations
associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity
risk arises because of the possibility that the Company might be unable to meet its payment obligations
when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress
circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available
to the Company on acceptable terms
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations when
due and to close out market positions. Due to the dynamic nature of the underlying businesses, company
maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the company’s liquidity position (comprising the undrawn
borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. In addition, the
company’s liquidity management policy involves projecting cash flows and considering the level of liquid
assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external
regulatory requirements and maintaining debt financing plans.
(i) Maturities of financial liabilities
The tables below analyse the company’s financial liabilities into relevant maturity groupings based on their
contractual maturities for:
- all non-derivative financial liabilities, and
- net and gross settled derivative financial instruments for which the contractual maturities are essential
for an understanding of the timing of the cash flows, if any.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of change in market prices.
Market risk comprises two types of risk: interest rate risk and other price risk such as equity price risk.The
Company’s exposure to market risk is a function of asset liability management and interest rate sensitivity
assessment. The Company continuously monitors these risks and manages them through appropriate
risk limits. The Asset Liability Management Committee (ALCO) reviews market-related trends and risks
and adopts various strategies related to assets and liabilities, in line with the Company’s risk management.
(i) 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 change in market interest rates. Various variables are considered by the management in
structuring the Company’s borrowings to achieve a reasonable and competitive cost of funding.
During the periods presented in the financial statements, the Company has primarily borrowed funds
under fixed interest rate arrangements with corporate companies and related party and therefore the
Company is not significantly exposed to interest rate risk on them.
Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market
prices and related market variables whether caused by factors specific to an individual investment, its
issuer or the market.
(a) Price risk Exposure
The company’s exposure to listed and unlisted equity, preference, debt and mutual fund securities price
risk arises from investments held by the company and classified in the balance sheet either as fair value
through OCI or at fair value through profit or loss. To manage its price risk arising from investments in
equity securities, the company diversifies its portfolio. Diversification of the portfolio is done in accordance
with the limits set by the company.
44. Capital management
For the purpose of the company’s capital management, capital includes issued equity capital, share
premium and all other equity reserves. The primary objective of the Company’s capital management is to
maximise the shareholder value.
The company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants.
LCR - Since this ratio is not required to be maintained by RBI regulations. The disclosure for the same is not
applicable.
Tier 1 capital, which comprises share capital, Statutory Reserve, and retained earnings including current
year profit . Certain adjustments are made to Ind AS-based results and reserves, as prescribed by the
Reserve Bank of India
Tier 2 Capital includes hybrid debt, subordinate debt which is NIL (PY : NIL)
Company’s Leverage Ratio is 0.41 (FY 23-24: 0.19)
45. Events after the reporting period
There have been no events after the reporting date that require adjustment/disclosure in these financial
statements.
Notes:
1. Provisioning norms shall be applicable as prescribed in these Directions.
2. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of
investments and other assets as also assets acquired in satisfaction of debt. However, market value
in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments
should be disclosed irrespective of whether they are classified as long term or current in (5) above.
* Specify item if total for the item is more than 5 per cent of total related party transactions. Related
parties would include trusts and other bodies in which the NBFC can directly or indirectly (through its
related parties) exert control or significant influence.
1. Related party, in the context of the aforementioned disclosure, shall include all related parties as per
the applicable accounting standards. Further, related party shall also include following related parties
defined under Section 2(76) of the Companies Act, 2013.
i. a director or his relative;
ii. a key managerial personnel or his relative;
iii. a firm, in which a director, manager or his relative is a partner;
iv. a private company in which a director or manager or his relative is a member or director;
v. a public company in which a director or manager is a director or holds along with his relatives,
more than two per cent. of its paid-up share capital;
vi. any body corporate whose Board of Directors, managing director or manager is accustomed to act in
accordance with the advice, directions or instructions of a director or manager;
vii. any person on whose advice, directions or instructions a director or manager is accustomed to act:
Provided that nothing in clauses (vi) and (vii) shall apply to the advice, directions or instructions given in a
professional capacity;
2. At a minimum, Key Management Personal (KMPs) shall include following key managerial personnel as
per section 2(51) of the Companies Act, 2013.
i. the Chief Executive Officer or the managing director or the manager
ii. the company secretary
iii. the whole-time director
iv. the Chief Financial Officer
v. such other officer, not more than one level below the Directors who is in whole-time employment,
designated as key managerial personnel by the Board; and
vi. such other officer as may be prescribed
vi) Institutional Setup:
The Board of Directors of the Company has the overall responblity to look after the liquidity risk
management, further Asset Liablity Committee (ALCO is consituted which consists of senior management
of the Company who are corely financially literate to implement liquidity risk management policies and
and strategies. Management monitors rolling forecasts of the company’s liquidity position (comprising
the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows.
In addition, the company’s liquidity management policy involves projecting cash flows and considering
the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal
and external regulatory requirements and maintaining debt financing plans.
54. Title deeds of Immovable Properties not held in name of the Company
The Company does not possess any immovable property (other than properties where the Company is the lessee
and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of
the Company.
55. Loans & Advances
The Company has not granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the
related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.
56. Details of Benami Property held
No proceedings have been initiated or pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
57. Security of current assets against borrowings
Borrowings from financial institutions have been hypthecated against tangible assets of the Company.
58. Wilful Defaulter
The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender.
59. Relationship with Struck off Companies
The company does not have any transactions with companies struck off under section 248 of the Companies Act,
2013 or section 560 of the Companies Act, 1956.
60. Registration of charges or satisfaction with Registrar of Companies (ROC)
All charges or satisfaction are registered with ROC within the statutory period. No charges or satisfactions are yet to
be registered with beyond the statutory period.
61. Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
62. Compliance with approved Scheme(s) of Arrangements
The Company has no scheme of arrangements which have been approved by the competent Authority in terms of
Sec 230 to 237 of the Companies Act, 2013 during the reporting period.
63. Utilisation of Borrowed funds and share premium
The Company as part of its normal business, grants loans and advances, makes investment, provides guarantees
to and accept deposits and borrowings from its customers, other entities and persons. These transactions are
part of Company’s normal non-banking finance business, which is conducted ensuring adherence to all regulatory
requirements.
Other than the transactions described above, 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 persons
or entities, including foreign entities (intermediaries) with the understanding, whether recorded in writing or otherwise,
that the intermediary shall lend or invest in party identified by or on behalf of the Company (ultimate beneficiaries). The
Company has also not received any fund from any parties (funding party) with the understanding that the Company
shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the funding
party (ultimate beneficiaries) or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
64. Undisclosed Income
The Company have not any such 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)
65. Details of Crypto currency or Virtual currency
The Company has not traded or invested in Crypto currency or Virtual currency.
Material Accounting Policies and Notes on Accounts form an integral part of the financial statements.
As per our report of even date attached For and on behalf of the board of directors
For GMJ & Co of Apollo Finvest (India) Limited
Chartered Accountants CIN: L51900MH1985PLC036991
Firm Registration No.: 103429W
CA Amit Maheshwari Mikhil R. Innani Diksha Nangia
Partner Managing Director Chief Financial Officer
Membership No.: 428706 DIN: 02710749 & Whole Time Director
UDIN : 254287 06BMIO YP9686 DIN: 07380935
Place: Mumbai
Date: May 23, 2025 Kruti Khemani Disha Khemani
Director Company Secretary
DIN: 07977942 ACS: 74244
|