Investment risk The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.
Interest risk :- A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.
Longevity risk :- The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.
Salary risk :- The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
(a) Amount paid under protest with respect to income tax demand '69.80 million (As at March 31,2025 '44.80 million)
The Income-tax Department had conducted a search under Section 132 of the Income-tax Act, 1961 at the registered office and certain other premises of the Company in January 2025. In the course of the proceedings, certain legal and factual matters were examined, and the Company has fully cooperated by furnishing the requisite information and documentary evidence as sought from time to time. On receipt of notice under Section 158BC of the Act, the Company filed return for the block period from April 01, 2018 to February 03, 2025. As a prudential measure and without prejudice to its rights and contentions, the Company has paid an ad-hoc amount of Income tax aggregating to '36.78 million and accounted for the same as expenditure under "Tax Expense - short/excess". The assessment proceedings are currently in progress, and the Company continues to extend full cooperation to the Income-tax authorities. The Company has not received any orders/demand notices till date of signing of BS. The Management, after considering all available records and facts, is of the view that there would not be any material adverse impact on the financial position of the Company and hence no material adjustments are required to be made in the financial statements of the Company.
(b) Amount paid under protest with respect to service tax & GST demand '12.20 million (As at March 31,2025 '9.48 million)
(c) Bank Guarantees given as collateral to various stock exchange against fixed deposits of '10,195.25 million (Previous year '6,336.60 million).
(d) SEBI vide its order dated June 19, 2023 prohibited the Company from onboarding new clients for a period of two years in respect of its business as a stock broker consequent to certain findings of SEBI inspections with respect to segregation of client funds and own funds for different periods from April 2011 to 2017. Securities Appellate Tribunal (SAT). vide its order dated December 07, 2023 has set aside the aforesaid order. SEBI has preferred appeal before the Hon'ble Supreme Court and the same is pending.
NOTE 32 : CORPORATE SOCIAL RESPONSIBILITY
During the period ended March 31, 2026 the Company has spent '65.31 million (Previous year '50.72 million) out of the total amount of '110.36 million (Previous year '83.54 million) required to be spent as per section 135 of the Companies Act 2013 in respect of Corporate Social Responsibility [CSR]. Unspent amount of '33.15 million for the previous year for ongoing projects has been spent during current year.
The Company undertakes the following activities in the nature of Corporate social responsibility (CSR):
a) Promoting quality education among children and women, especially of girls from marginalized and vulnerable communities through supplementary classes aiming to reintegrate them into formal schools.
b) Ensuring easy and safe access to education in rural and remote region. Also, supporting infrastructural development in the government school in aspirational district.
c) Promoting education through comprehensive scholarships for needy students that reduce financial barriers and enable academic continuity.
d) Promoting livelihood and entrepreneurship opportunities through job-oriented training and hands-on exposure, especially for youth in aspirational districts.
e) Promoting gender equality, empowering women and taking measures to reduce inequalities faced by socially and economically backward groups through Entrepreneurship development program.
f) Ensuring safety and healthcare for sanitation workers by equipping them with advance technological assistance.
g) Promoting environmental sustainability and biodiversity enhancement through afforestation initiatives using innovative ecological techniques.
h) Enhancing climate resilience and community preparedness through integrated heat action planning and sustainable infrastructure initiatives.
i) Promoting healthcare by providing medical equipment and technological support towards community level health facilities and infrastructure development in medical institutions that are bridging gaps in healthcare service delivery.
j) Upgradation of community infrastructure by installing safety measures, improving accessibility and well-being opportunities.
k) Promoting preservation of cultural heritage through the development of dedicated community institutions.
l) Promoting sports through training and support for athletes and para-athletes through advanced training, equipment access, and comprehensive preparatory support.
Stock Price: The Market price on NSE on the date of grant has been considered for the purpose of Option valuation.
Volatility: The daily volatility of the stock prices on NSE, over a period prior to the date of grant, corresponding with the expected life of the Options has been considered to calculate the fair value.
Risk-free rate of return: The risk-free rate being considered for the calculation is the India Government Bond Generic Bid Yield with a maturity about equal to the expected life of the options.
Exercise Price: Price of each specific grant has been considered.
Time to Maturity: Time to Maturity/Expected Life of Options is the period for which the Company expects the Options to be live. The minimum life of a stock option is the minimum period before which the Options cannot be exercised and the maximum life is the period after which the Options cannot be exercised.
Expected dividend yield: Expected dividend yield has been calculated as an average of dividend yields for the earlier financial years preceding the date of the grant. The dividend yield for the year is derived by dividing the dividend per share by the average price per share of the respective period.
NOTE 35 : FINANCIAL RISK MANAGEMENT Financial risk management objectives and policies
The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's risk management policy is approved by the board committee.
The Company has adopted the 'three lines-of-defence' (3 LOD) model wherein management control at the business entity level is the first line of defence in risk management. Various risk control and compliance oversight functions, established by the management are the second line of defence. Finally, the third line comprises the internal audit/assurance function. All three lines play a distinct role within Company wider governance framework.
The Company is exposed to market risk, credit risk, liquidity risk etc. The Company senior management oversees the management of these risks. The Company senior management is overseen by the audit committee with respect to risks and facilitates appropriate financial risk governance framework for the Company. Financial risks are identified, measured and managed in accordance with the Company policies and risk objectives. The Board of Directors reviews and agrees policies for managing key risks, which are summarised below.
35 A. CREDIT RISK
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investments, derivative financial instruments, other balances with banks, loans and other receivables and other financial asset.
35 A.1. CREDIT QUALITY ANALYSIS
The following tables sets out information about the credit quality of financial assets measured at amortised cost, FVOCI debt investments. Unless specifically indicated, for financial assets, the amounts in the table represent gross carrying amounts.
35 A.2. COLLATERAL HELD
The Company holds collateral of securities and other credit enhancements against its credit exposures.
35 B. LIQUIDITY RISK
Liquidity risk arises from the Company's inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities and maintaining availability of standby funding through an adequate line up of committed credit facilities. It uses a range of products mix to ensure efficient funding from across well-diversified markets and investor pools. Treasury monitors rolling forecasts of the Company's cash flow position and ensures that the Company is able to meet its financial obligation at all times including contingencies.
35 C. MARKET RISK
Market risk is the risk of any loss in future earnings, in realisable fair values or in futures cash flows that may result from a change in the price of a financial instrument.
The Company manages market risk through a treasury department, which evaluate and exercises control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by senior management and the Audit/Investment committee. The activities of this department include management of cash resources, borrowing strategies, and ensuring compliance with market risk limit and policies.
35 C.1. 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. Interest rate change does not affects significantly short term borrowing and current investment therefore the Company's exposure to the risk of changes in market interest rates relates primarily to the Company's Non current investment.
Company business is volatile and hence borrowings are done bases on requirement, generally borrowings are done for short term and are on market based interest rate.
Sensitivity
The effect of upward movement of 5% in the price affects the projected net income by '127.85 milllion ('176.77 milllion for previous year) and for forward downward movement of 5% the projected net loss will be '127.85 milllion ('176.77 milllion for previous year) for FY 2026.
35 D. CAPITAL MANAGEMENT
The Company's objective when managing capital are to
- Safeguard their ability to continue as going concern, so that they can continue to provide returns for the share holders and benefits for other stake holders, and
- Maintain an optimal capital structure to reduce the cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using debt equity ratio.
35 E. FAIR VALUES OF FINANCIAL INSTRUMENTS
The Company measures fair values using the following fair value hierarchy, which reflects the significance of the inputs used in making
the measurements.
— Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments.
— Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data.
— Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs that are not observable and the unobservable inputs have a significant effect on the instrument's valuation. This category includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.
Subjective estimate - The valuation of level 3 financial instruments held at fair value through profit or loss or through other comprehensive income may be misstated due to the application of valuation techniques which often involve the exercise of judgement and the use of assumptions and estimates. A subjective estimate exists for instruments where the valuation method uses significant unobservable inputs which is principally the case for level 3 financial instruments. The estimate measurement of fair value is more judgemental in respect of Level 3 assets, these are valued based on models that use a significant degree of non-market-based unobservable inputs.
Observable prices or model inputs are usually available in the market for listed debt and equity securities. The availability of observable market prices and model inputs reduces the need for management judgement and estimation and also reduces the uncertainty associated with determining fair values.
The following table analyses financial instruments measured at fair value at the reporting date, by the level in the fair value hierarchy into which the fair value measurement is categorised.
35 E. 3. VALUATION METHODOLOGIES OF FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE
The following table sets out the fair values of financial instruments not measured at fair value and analyses them by the level in the fair value hierarchy into which each fair value measurement is categorised.
Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the Company's financial statements. These fair values were calculated for disclosure purposes only.
Short-term financial assets and liabilities
For financial assets and financial liabilities that have a short-term nature, the carrying amounts, which are net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash and bank balances, trade receivables, other receivables, balances other than cash and cash equivalents and trade payables.
NOTE 39 : DISCLOSURE OF FINANCIAL RATIOS
Additional regulatory information required under (WB)(xvi) of Division III of Schedule III amendment, disclosure of rations, is not
applicable to the Company as it is in broking business and not an NBFC registered under Section 45-IA of Reserve Bank of India
Act, 1934.
NOTE 40 : OTHER DISCLOSURE UNDER SCHEDULE - III
1) No funds have been advanced or loaned or invested 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, 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 the like on behalf of the Ultimate Beneficiaries.
2) No funds have been received by the Company from any persons or 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.
3) The Company does not have any long-term contracts including derivative contracts for which there are any material forseeable losses.
4) There were no amounts which were required to be transferred to the Investor Education and Protection by the Company.
5) 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).
6) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.
7) During the year, the Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
8) There are no transactions which have not been recorded in the books of accounts and which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
9) The quarterly returns/statements of current assets filed by the Company,with banks from whom borrowings have been availed on the the basis of security of current assets,are in agreement with the books of account.
10) There are no charges or satisfaction yet to be registered with the registrar of companies beyond the statutory period.
11) The Company does not have layers beyond the number prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
12) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
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