3.10. Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the company has a present
obligation (legal or constructive) as a result of past events, and
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 effect of the time value of money is material, the Company
determines the level of provision by discounting the expected
cash flows at a pre-tax rate reflecting the current rates specific
to the liability. The expense relating to any provision is presented
in the statement of profit and loss net of any reimbursement.
Where the probability of outflow is considered to be remote, or
probable, but a reliable estimate cannot be made, a contingent
liability is disclosed.
Given the subjectivity and uncertainty of determining the
probability and amount of losses, the Company takes into
account a number of factors including legal advice, the stage
of the matter and historical evidence from similar incidents.
Significant judgement is required to conclude on these estimates.
provisions are reviewed at each balance sheet date and adjusted
to reflect the current best estimate. If it is no longer probable
that the outflow of resources would be required to settle the
obligation, the provision is reversed.
Contingent Liabilities and Contingent Assets are not recognized
but are disclosed in the notes.
3.11. Employee share based payments
Stock options granted to the employees under the stock option
scheme established are accounted as per the accounting
treatment prescribed by the SEBI (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021 (Formerly the SEBI
(Share Based Employee Benefits) Regulations, 2014) issued by
Securities and exchange Board of India. The Company follows the
fair value method of accounting for the options and accordingly,
the excess of market value of the stock options as on the date of
grant over the fair value of the options is recognised as deferred
employee compensation cost and is charged to the Statement of
Profit and Loss over the vesting period of the options.
3.12. Fair value measurement
The Company measures financial instruments at fair value at
each balance sheet date. Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement
date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes
place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous
market for the asset or liability which are accessible to the
Company.
The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in
their economic best interest.
A fair value measurement of a non-financial asset takes into
account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset
in its highest and best use.
The Company uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs. All assets
and liabilities for which fair value is measured or disclosed in
the financial statements are categorized within the fair value
hierarchy, described as follows, based on the lowest level input
that is significant to the fair value measurement as a whole:
• Level 1: Quoted (unadjusted) market prices in active markets
for identical assets or liabilities;
• Level 2: Valuation techniques for which the lowest level input
that is significant to the fair value measurement is directly or
indirectly observable, or
• Level 3: Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.
For assets and liabilities that are recognised in the financial
statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy
by re-assessing categorisation (based on the lowest level input
that is significant to the fair value measurement as a whole) at
the end of each reporting period.
3.13. Earnings per share
Basic Earnings per Share is calculated by dividing the net profit
or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during
the period. The weighted average number of equity shares
outstanding during the period and for all periods presented
is adjusted for events, such as bonus shares, other than the
conversion of potential equity shares that have changed the
number of equity shares outstanding, without a corresponding
change in resources.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during
the period is adjusted for the effects of all dilutive potential
equity shares.
3.14. Dividends on ordinary shares
The Group recognises a liability to make cash or non-cash
distributions to equity holders of the company when the
distribution is authorised and the distribution is no longer at
the discretion of the company. As per the corporate laws in
India, a distribution is authorised when it is approved by the
shareholders. A corresponding amount is recognised directly in
equity.
3.15. statement of Cash Flows
Cash flows are reported using the indirect method, where
by profit / (loss) before tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the company are
segregated based on the available information.
b) Defined benefit plans
The Company has funded the gratuity liability ascertained on actuarial basis. The gratuity plan is governed by the Payment of Gratuity Act, 1972
wherein every employee who has completed five years of service is entitled to specific benefit. The level of benefit provided depends on the employee's
length of service and salary at retirement age.
The plans in India typically expose the Company to actuarial risks such as: investment risk, liquidity risk, longevity risk, salary risk and legislative risk.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to government
bond yields. the present value of plan assets is independent of the future discount rate. If the return on plan asset is below this rate, it will create a
plan deficit.
Liquidity risk: Employees with high salaries and long durations, accumulate significant level of benefits. If some of such employees resign/ retire
from the company, there can be strain on the cashflows.
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 benefit 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.
Legislative risk: It is the risk of increase in the plan liabilities or reduction in the plan assets due to change in legislation/ regulation. any amendment
in The Payment of Gratuity Act with respect to benefits to employees will directly affect the present value of the Defined benefit obligation.
Expected return on plan assets is based on expectation of the average long term rate of return expected on investments of the fund during the
estimated term of the obligations after considering several applicable factors such as the composition of plan assets, investment strategy, market
scenario, etc.
The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors,
such as supply and demand in the employment market.
The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of
the obligations.
C. Financial risk management
The Company has an Audit Committee established by its Board of Directors for overseeing the Risk Management Framework and developing and
monitoring the Company's risk management policies. The risk management policies are established to ensure timely identification and evaluation
of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk
awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and
the Company's activities to provide reliable information to the Management and the Board to evaluate the adequacy of the risk management
framework in relation to the risk faced by the Company.
The risk management policies aims to mitigate the following risks arising from the financial instruments:
- market risk
- Credit risk
- Liquidity risk
D. 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 the market prices.
E. Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk
encompasses of both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration risks. Company's credit
risk arises principally from loans and investments. Exposure pertaining to these are substantially with its subsidiaries. accordingly, there are no
significant credit risks.
F. Liquidity risk management
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. It arises due to shortage of liquid funds in a situation where business conditions unexpectedly
deteriorate and requiring financing. Being a unregistered core investment company, the Company has adequate cash and cash equivalents to
maintain liquidity. The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual cash
flows and by matching the maturity profiles of financial assets and liabilities.
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods
and its non-derivative financial assets. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.
33 Segment information:
There are no reportable segments to be disclosed in the standalone financial statements in terms of Ind AS 108.
34 JRG ESOP Trust
As per the requirements of Securities Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines
1999 ('SEBI guidelines'), since the stock option plans of 2005 and 2008 schemes are administered through a trust, the accounts of the Company are
prepared as if the Company itself is administering the employee stock option plan. Pursuant to such requirement of the SEBI guidelines the equity
shares issued to the JRG ESOp Trust and not exercised by the employees as on 31 March 2023 have been presented as a deduction from the share
capital. the bank balance of the JRG ESOp trust as on 31 march 2023 net of the loan granted and capital contribution to the JRG ESOp trust by the
Company has been presented as bank balance of the Company.
35 Micro, small and Medium Enterprises Development Act, 2006
The management has identified enterprises which have provided goods and services to the company and which qualify under the definition of
"Micro and Small Enterprises" as defined under Micro, Small and Medium Enterprises Development Act, 2006 ("the Act"). Accordingly, based on the
information received and available with the company, there are no amounts payable to such enterprises other than as disclosed in Note no.13 to the
financial statements.
38 Utilisation of Borrowed funds
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kinds of funds) by
the company to or in any other person(s) or entity(ies), including foreign ("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 not received any fund from any party(s) (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 Company ("Ultimate Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
39 Standards issued but not yet effective
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. On 31 March 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules,
2023, as below:
Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than
their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after 01 April 2023. The
Company has evaluated the amendment and the impact of the amendment is insignificant in the Company's financial statements.
Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of accounting estimates'
and included amendments to Ind As 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. the
effective date for adoption of this amendment is annual periods beginning on or after 01 April 2023. the Company has evaluated the amendment
and there is no impact on its financial statements.
Ind As 12 - Income taxes - this amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that
give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after 01
April 2023. The Company has evaluated the amendment and there is no impact on its financial statement.
40 Previous year figures have been reclassified / regrouped wherever necessary to conform to the current year's classification.
As per our report of even date attached For and on behalf of the Board of Directors of
Inditrade Capital Limited
For Kirtane & pandit LLp
Chartered Accountants sudip Bandyopadhyay Jhuma Guha
ICAI Firm registration No.: 05215W/W100057 director director
Din:00007382 Din:00007454
Mittal shah
partner Biju sreeramachandran Meera C
Membership No.: 147370 Chief Financial Officer and Manager Company Secretary
place: mumbai place: mumbai
date: 30 may, 2024 date: 30 may, 2024
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