h) Provisions and contingencies
The Company recognizes provisions when a present obligation (legal or constructive) as a result of a
past event exists and it is probable that an outflow of resources embodying economic benefits will be
required to settle such obligation and the amount of such obligation can be reliably estimated.
If the effect of 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 recognized as a finance cost.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not require an outflow of resources embodying economic benefits or
the amount of such obligation cannot be measured reliably. When there is a possible obligation or a
present obligation in respect of which likelihood of outflow of resources embodying economic benefits
is remote, no provision or disclosure is made.
i) Cash and Cash Equivalents
Cash and Cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand,
bank balances, demand deposits with banks where the original maturity is three months or less and
other short term highly liquid investments.
j) Employees Benefits
Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering the service are classified as
short term employee benefits and they are recognized in the period in which the employee renders the
related service. The Company recognizes the undiscounted amount of short term employee benefits
expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting
any amount already paid.
Post-Employment Benefits:
I. Defined Benefit plans:
i. Provident Fund scheme:
Retirement benefit in the form of provident fund is defined contribution scheme. The company has
no obligation, other than the contribution payable to the provident fund. The company recognizes
contribution payable to provident fund scheme as an expense, when an employee renders the
related services.
ii. Gratuity scheme:
The Company operates a defined benefit gratuity plan for employees. The Company contributes to
Life Insurance Corporation of India (a fund), towards meeting the Gratuity obligation.
Recognition and measurement of Defined Benefit plans:
The cost of providing defined benefits is determined using the Projected Unit Credit method with
actuarial valuations being carried out at each reporting date. The defined benefit obligations
recognized in the Balance Sheet represent the present value of the defined benefit obligations
as reduced by the fair value of plan assets. Any defined benefit asset (negative defined benefit
obligations resulting from this calculation) is recognized representing the present value of available
refunds and reductions in future contributions to the plan.
All expenses represented by current service cost, past service cost, if any, and net interest on the
defined benefit liability / (asset) are recognized in the Statement of Profit and Loss. Remeasurements
of the net defined benefit liability / (asset) comprising actuarial gains and losses and the return
on the plan assets (excluding amounts included in net interest on the net defined benefit liability/
asset), are recognized in Other Comprehensive Income. Such remeasurements are not reclassified
to the Statement of Profit and Loss in the subsequent periods.
The Company presents the above liability/(asset) as current and non-current in the Balance Sheet
as per actuarial valuation by the independent actuary.
Other Long Term Employee Benefits:
As per company’s policy, no encashment of leave to any employee is allowed.
k) Lease Accounting
The company mainly has lease arrangement for building for office.
Short-term leases and leases of low-value assets
The Company has elected not to recognize ROU assets and lease liabilities for short term leases as well
as low value assets and recognizes the lease payments associated with these leases as an expense on a
straight-line basis over the lease term.
l) Segment Reporting
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 is responsible for allocating
resources and assessing performance of the operating segments of the Company.
m) 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.
1.4 Key accounting estimates and judgments
The preparation of the Company’s financial statements requires the management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.
Critical accounting estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are described below:
a. Income taxes
The Company’s tax jurisdiction is India. Significant judgments are involved in estimating budgeted
profits for the purpose of paying advance tax, determining the provision for income taxes, including
amount expected to be paid/recovered for uncertain tax positions
b. Defined Benefit Obligation
The costs of providing post-employment benefits are charged to the Statement of Profit and Loss in
accordance with Ind AS 19 'Employee benefits’ over the period during which benefit is derived from the
employees’ services. The costs are assessed on the basis of assumptions selected by the management.
These assumptions include salary escalation rate, discount rates, expected rate of return on assets and
mortality rates.
b) Terms/ Rights Attached to Equity Shares:
The company has only one class of equity shares having par value of Re 1 each. Each holder of equity shares is
entitled to one vote per share. The company declares and pays dividend in Indian Rupees. In the event of liquidation
of the company, the holders of the 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 and purpose of reserve
General Reserve: Under the erstwhile Indian Companies Act, 1956, a general reserve was created through an annual
transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these
transfers was to ensure that if a dividend distribution in a given year is more than 10.00% of the paid-up capital of the
Company for that year, then the total dividend distribution is less than the total distributable reserves for that year.
Consequent to introduction of Companies Act, 2013, the requirement of mandatory transfer of a specified percentage
of the net profit to general reserve has been withdrawn and the Company can optionally transfer any amount from the
surplus of profit or loss to the General reserve.
Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to
general reserve, dividends or other distributions paid to shareholders.
Items of Other Comprehensive Income
Remeasurements of Net Defined Benefit Plans : Differences between the interest income on plan assets and the return
actually achieved, and any changes in the liabilities over the year due to changes in actuarial assumptions or experience
adjustments within the plans, are recognised in other comprehensive income.
Terms of repayment
Vehicle loan is for three years repayable in equated monthly instalment getting fully repaid by August 2025. Loan from
related parties is short term in nature and is used as and when required. The commercial papers are repayable on
maturity and tenures are one year.
C. Financial Risk management- Objectives and policies
The Company’s financial liabilities comprise mainly of borrowings, payable to clearing house and
other payables. The Company’s financial assets comprise mainly of investments, bank deposits with
more than 12 months of maturities, cash and cash equivalents, other balances with bank, balance
with clearing house and other receivables.
The Company is exposed to Credit risk and Liquidity risk. The board of directors oversees the
management of these financial risks.
a) 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. Any adverse effect on the interest rate on
bank deposit will fluctuate the future cash flow on bank deposits.
The company does have fixed interest bearing borrowings from the related parties during the
year as and when required for the business purpose. The company is not exposed to significant
interest rate risk at the respective reporting dates.
b) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will
fluctuate due to changes in foreign exchange rates. The company is not exposed to changes in
any foreign currency as the company operates mainly in India.
c) Other Price Risk
Other price risk is the risk that the fair value of a financial instrument will fluctuate due to
changes in market traded price. As the company is into the hedging business of trading in equity
futures and options, the other price risk arising from financial assets such as trading in equity
instruments and underlying commodities is minimal.
d) Credit Risk
Credit risk refers to risk that counterparty will default on its contractual obligations resulting
in financial loss to the Company. Credit risk arises primarily from financial assets such as
investment in mutual funds, bank deposits with more than 12 months of maturities, other
balances with banks, and other receivables.
The company is member of NSE and is doing trading in equity futures and options on its own
account The settlement of trade is done in a day or two, the credit risk arising from the trade
receivable is minimal.
Credit risk arising from investment in mutual funds, derivative financial instruments, bank
deposits and other balances with banks is limited and there is no collateral held against these
because the counterparties are banks and recognized financial institutions with high credit
ratings assigned by the international credit rating agencies.
e) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet
commitments associated with financial instruments that are settled by delivering cash or
another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly
at close to its fair value.
The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of
financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate
funds in cash and cash equivalents.
D. Capital Management
For the purpose of the Company’s capital management, capital includes issued capital and all other
equity reserves attributable to the equity shareholders of the Company. The primary objective of
the Company when managing capital is to safeguard its ability to continue as a going concern and to
maintain an optimal capital structure so as to maximize shareholder value. As at 31st March, 2026,
the Company has only one class of equity shares and has no long term debt. Consequent to such capital
structure, there are no externally imposed capital requirements. In order to maintain or achieve an
optimal capital structure, the Company allocates its capital for the re-investment into business based
on its long term financial plans.
27. Ageing of trade receivable and trade payable
Trade receivable and trade payable ageing schedule as required as per schedule III to the Companies Act
2013 as amended is not given as the company is the member of National Stock Exchange of India Ltd and
trades in shares and securities in its own accounts and have no retails clients. The amount receivable and/
or payable to clearing house on account of any trade is settled under T 1 and T 2 settlement basis and
shown under other current financial assets or other current financial liabilities as the case may be.
a. The decrease in current ratio is primarily due to significant increase in short-term borrowings and
other current financial liabilities during the year, while current assets remained largely stable.
b. The increase in Debt-Equity Ratio during the year is primarily attributable to significant increase in
short-term borrowings availed by the Company during the year compared to the previous year.
c. The decrease in Debt Service Coverage Ratio during the year is primarily attributable to decline in
profit after tax and consequent reduction in earnings available for debt service, while finance costs
remained broadly consistent with the previous year.
d. The decrease in return on Equity Ratio and return on Capital Employed Ratio are mainly due to
decline in profit after tax and profit before tax during the year along with increase in shareholders’
equity and increase in capital employed arising from higher short term borrowings.
e. Since the company are members of National Stock Exchange and BSE Ltd and doing trades in shares
and securities in its own account, inventory turnover ratio, trade receivable turnover ratio and trade
payables turnover ratio are not given.
f. The reduction in Net Capital Turnover Ratio is primarily due to reduction in revenue from operations
during the year.
g. The return on mutual funds are functions of market dynamics.
30. Accounting policy related to employee’s benefits of gratuity and other benefits is accounted in accordance
with Ind AS 19-“Employees Benefit”. No provision for leave encashment is made during the year in view of
company’s policy of not allowing encashment and accumulation of eligible leave.
On November 21, 2025, the Government of India has introduced new labour codes consolidating various
existing labour laws. Based on the assessment carried, the implementation of these reforms does not have
material financial impact on the financial statements.
31. Corporate Social Responsibility (CSR)
Gross amount required to be spent by the Company during the year '39.19million
(Previous Year '35.98 million)
This year the Company has not spent any amount towards corporate social responsibility. The unspent
CSR amount of '39.19 million for the year ended 31st March, 2026 is proposed to be contributed to funds
specified in Schedule VII to the Companies Act, 2013 on or before 30th September, 2026, in accordance
with the applicable provisions of Section 135 of the Companies Act, 2013.
The company is engaged primarily in the business of trading in shares and securities and there are no
separate reportable segments as per Indian Accounting Standards (Ind AS) - 108 dealing with segment
reporting.
a) Provision for current tax for the current year has been made, taking into consideration benefits
admissible under the provisions of the Income Tax Act, 1961.
b) In accordance with Ind AS - 12 “Taxes on Income” issued by Ministry of Corporate Affairs, net
deferred tax liabilities on account of timing difference for current year of '16.87 million is charged
to the Statement of Profit & Loss and net deferred tax assets of'0.02 million is credited to other
comprehensive income.
c) The major components of deferred tax (liabilities) / assets arising on account of timing difference are
as follow:
36. As at March 31, 2026, the company has reviewed the future earnings of all the cash generating units in
accordance with the Ind AS 36 “Impairment of Assets. As the carrying amount of assets does not exceed
the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered
necessary by the Management.
37. In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are
expected to realize at their Book Values in the normal course of business and adequate provision have been
made in respect of all known liabilities.
38. Based on the information available with the Company, there are no suppliers who are registered as micro,
small or medium enterprises under The Micro, Small and Medium Enterprises Development Act, 2006 as
at March 31, 2026.
39. Disclosures of transactions with the struck off companies
The Company did not have any transactions with companies struck off under Section 248 of the Companies
Act,2013 or Section 560 of Companies Act, 1956 during the financial year.
40. No transactions to report against the following disclosure requirements as notified by MCA pursuant to
amended Schedule III:
(a) Crypto Currency or Virtual Currency
(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made
thereunder
(c) Registration of charges or satisfaction with Registrar of Companies
(d) Relating to borrowed funds:
i. Wilful defaulter
ii. Utilisation of borrowed funds & share premium
iii. Borrowings obtained on the basis of security of current assets
iv. Discrepancy in utilisation of borrowings
(e) Borrowings obtained on the basis of security of current assets.
(f) Foreign Currency Exposure
41. Previous year’s figures have been regrouped wherever necessary to confirm with this year’s classification.
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