(k) Provisions and Contingent Liabilities
Provisions for legal claims, volume discounts and returns
are recognised when the Company has a present legal
or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required
to settle the obligation and the amount can be reliably
estimated. Provisions are not recognised for future
operating losses.
Where there are a number of similar obligations, the
likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as
a whole. A provision is recognised even if the likelihood
of an outflow with respect to any one item included in
the same class of obligations may be small.
A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may,
but will probably not, require an outflow of resources.
When there is a possible obligation of a present
obligation in respect of which the likelihood of outflow
of resources is remote, no provision disclosure is made.
A contingent asset is not recognised but disclosed in the
financial statements where an inflow of economic benefit
is probable.
(I) Employee benefits
(i) Short-term obligations
Short-term employee benefits are expensed as the
related service is provided. A liability is recognised
for the amount expected to be paid if the Company
has a present legal or constructive obligation to pay
this amount as a result of past service provided by
the employee and the obligation can be estimated
reliably. The Company has a scheme of Performance
Linked Variable Remuneration (PLVR) which rewards
its employees based on either Economic Value
Added (EVA) or Profit before tax (PBT). The PLVR
amount is related to actual improvement made in
either EVA or PBT over the previous year when
compared with expected improvements.
(ii) Other long-term employee benefit obligations
The liabilities for earned 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.
Remeasurements as a result of experience
adjustments and changes in actuarial assumptions
are recognised in profit or loss.
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:
(a) defined benefit plans such as gratuity, and
(b) defined contribution plans such as provident
fund.
Gratuity obligations
The following post - employment benefit plans are
covered under the defined benefit plans:
Gratuity:
The Company's net obligation in respect of defined
benefit plans is calculated by estimating the amount of
future benefit that employees have earned in the current
and prior periods, discounting that amount and deducting
the fair value of any plan assets.
The calculation of defined benefit obligations is performed
annually by a qualified actuary using the projected unit
credit method. When the calculation results in a potential
asset for the Company, the recognised asset is limited
to the present value of economic benefits available in
the form of any future refunds from the plan or reductions
in future contributions to the plan.
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.
(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.
(m) 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.
(n) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an original maturity of three months or less, which are
subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short- term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of the
Company's cash management.
(o) Earnings per share
(i) 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.
(ii) Diluted 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 shares, and
- the weighted average number of additional
equity shares that would have been
outstanding assuming the conversion of all
dilutive potential equity shares.
(p) Statement of Cash flow
Statement of Cash flow is prepared segregating the
cash flows from operating, investing and financing
activities. Cash flow from operating activities is reported
using indirect method. Under the indirect method, the
net surplus is adjusted for the effects of changes during
the period in inventories, operating receivables and
payables transactions of a non-cash nature.
i. Non-cash items such as depreciation, provisions,
deferred taxes, unrealised foreign currency gains
and losses, and undistributed profits of associates;
and
ii. All other items for which the cash effects are
investing or financing cash flows.
(q) Rounding of amounts
All amounts disclosed in the Financial Statements and
Notes have been rounded off to the nearest in Lakhs
with two decimals as per the requirement of Schedule
III, unless otherwise stated.
Note 3: KEY ACCOUNTING ESTIMATES AND JUDGMENTS
The preparation of Financial Statements requires management
to make judgments, estimates and assumptions in the
application of accounting policies that affect the reported
amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates. Estimates and
underlying assumptions are reviewed on ongoing basis. Any
changes to accounting estimates are recognized prospectively.
Information about critical judgments in applying accounting
policies, as well as estimates and assumptions that have the
most significant effect on the amounts recognised in the
financial statements are included in the following notes:
a) Provision and contingent liability: On an ongoing
basis, Company reviews pending cases, claims by
third parties and other contingencies. For contingent
losses that are considered probable, an estimated
loss is recorded as an accrual in financial statements.
Loss Contingencies that are considered possible are
not provided for but disclosed as Contingent liabilities
in the financial statements. Contingencies the likelihood
of which is remote are not disclosed in the financial
statements. Gain contingencies are not recognized
until the contingency has been resolved and amounts
are received or receivable.
b) Allowance for impairment of financial asset: Judgments
are required in assessing the recoverability of overdue
loans and determining whether a provision against
those loans is required. Factors considered include
the aging of past dues, value of collateral and any
possible actions that can be taken to mitigate the risk
of nonpayment.
c) Recognition of deferred tax assets: Deferred tax assets
are recognised for unused tax-loss carry forwards and
unused tax credits to the extent that realisation of the
related tax benefit is probable. The assessment of the
probability with regard to the realisation of the tax
benefit involves assumptions based on the history of
the entity and budgeted data for the future.
d) Defined benefit plans: The cost of defined benefit
plans and the present value of the defined benefit
obligations are based on actuarial valuation using the
projected unit credit method. An actuarial valuation
involves making various assumptions that may differ
from actual developments in the future. These include
the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities
involved in the valuation and its long - term nature, a
defined benefit obligation is highly sensitive to changes
in these assumptions.
e) Property, plant and equipment and Intangible Assets:
Management reviews the estimated useful lives and
residual values of the assets annually in order to
determine the amount of depreciation to be recorded
during any reporting period. The useful lives and
residual values as per schedule II of the Companies
Act, 2013 or are based on the Company's historical
experience with similar assets and taking into account
anticipated technological changes, whichever is more
appropriate.
Note 41: Other Statutory Information :
a) Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
b) 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 the
Companies (Restriction on number of Layers) Rules, 2017
c) Details of Benami Property Held
The Company does not have any benami property under the Benami Transaction ( Prohibition), Act 1988 (45 of 1988), where
any proceeding has been initiated or pending against the Company for holding any benami property
d) Wilful Defaulter
The Company is not declared wilful defaulter by and bank orfinancials institution or lender during the current and previous
financial year.
e) Loans and Advances Given
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), which are either severally or jointly with any other person repayable on
demand or without specifying any terms or period of repayment during the current and previous financial year.
f) Utilisation of Borrowed Funds and Share Premium
a) There is 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 any other person(s) or entity(ies), 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.
b) There is no funds have been received by the Company from any person(s) or entity(ies), 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.
g) Compliance with Approved Scheme(s) of Arrangements
No Scheme(s) of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013.
h) End use of Borrowed Funds
i) The Company has used the borrowings from banks for the specific purpose for which it was taken at the balance sheet date.
ii) The Company has taken borrowings from banks on the basis of security of Current assets ( only fixed deposits ) during the
current and previous financial year. The borrowings are continue from previous year and no fresh borrowings are taken during
the current and previous year.
iii) There are no charges or satisfaction yet to be registered with the Registrar of Companies beyond the statutory period.
i) Relationship with Struck Off Companies
There is no transactions with the Companies struck off under Section 248 of the the Companies Act, 2013 or Section 560 of
Companies Act, 1956 for the year ended March 31, 2024 and year ended March 31, 2025.
j) Key Financial Ratios
Additional regulatory information required under (WB) (xvi) of Division III of Schedule III amendment, disclosure of ratios, is not
applicable to the Company as it is in stock broking business and not an NBFC registered under Section 45-IA of Reserve Bank
of India Act, 1934
b) Compensation of Key Management Personnel of the Company
Key management personnel are those individuals who have the authority and responsibility for planning and exercising
power to directly or indirectly control the activities of the Company and its employees. The Company includes the members
of the Board of Directors which include Independent Directors (and its Sub-Committees) and Executive Committee to
be Key Management Personnel for the purposes of Ind AS 24 Related Party Disclosures.
c) Transactions with Key Management Personnel of the Company
The Company enters into transactions, arrangements and agreements involving Directors, Senior Management and their
Business Associates, or close Family Members, in the ordinary course of business under the same commercial and market
terms, interest and commission rates that apply to non-related parties.
Note 44 : Financial Risk Management
(A) Market Risk
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 three types of risk: foreign currency risk, interest rate risk and other price risk
such as equity price risk and commodity/real estate risk.
(i) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates.
Foreign currency Risk Management
In respect of the foreign currency transactions, the Company does not hedge the exposures since the management
believes that the same is insignificant in nature and will not have a material impact on the Company.
(ii) 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. The management is responsible for the monitoring of the Company interest rate
position. Various variables are considered by the management in structuring the Company's borrowings to achieve
a reasonable and competitive cost of funding.
In respect of fluctuating interest rate, the Company does not have any borrowings from banks and financial institution
and therefore the Company is not significantly exposed to interest rate risk.
(iii) Market Price Risk
The Company is exposed to market price risk, which arises from FVTPL and FVOCI investments. The management
monitors the proportion of these investments in its investment portfolio based on market indices. Material investments
within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the appropriate
authority.
(B) Credit Risk
Credit risk is the risk that the Company will incur a loss because its customers or counterparties fail to discharge their
contractual obligation. The Company manages and controls credit risk by setting limits on the amount of risk it is willing
to accept for individual counterparties, and by monitoring exposures in relations to such limits. The Company's exposure
to credit risk arises meagerly from trade receivables. Therefore, the Company applies Ind AS 109 simplified approach
to measuring expected credit losses (ECLs) for trade receivables at an estimated rate decided by the management.
Other financial assets like security deposits, loans and bank deposits are mostly with exchange, lease rent and banks
and hence, the Company does not expect any credit risk with respect to them.
(C) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at
reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and
the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company’s
finance team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies
related to such risks are overseen by senior management. Management monitors the Company’s liquidity position through
rolling forecasts on the basis of expected cash flows.
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. In the table below, borrowings include both interest and principal cash
flows.
The management assessed that the fair value of cash and cash equivalent, and other current financial assets and liabilities
approximate their carrying amounts largely due to the short term maturities of these instruments.
Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity
securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial
assets held by the Company is the current bid price. These instruments are included in level 1.
Level 2: The fair value of financial instruments that are not traded in an active market 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 is not based on observable market data, the instrument is included in level
3. This is the case for unlisted equity securities and investment in private equity funds.
ii. 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 unquoted equity instruments has been measured on the basis of their networth and valuation of
their shares.
- the fair value of equity shares of group companies are measured at cost.
- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.
iii. 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.
Note 46 : Capital Management
The Company manages its capital to ensure that the Company will be able to continue as going concern while maximizing
the return to stakeholder through the optimization of the debt and equity balance.
For the purpose of the Company's capital management, capital includes issued capital and other equity reserves. The primary
objective of the Company's capital management is to maximize shareholders value. The Company manages its capital
structure and makes adjustments in the light of changes in economic environment and the requirements of the financial
covenants.
Note 47 : Figures have been Regrouped, Reclassified & Rearranged
Previous year's figures have been regrouped, reclassified & rearranged to correspond with the current year figures /
presentation wherever necessary.
This is the Standalone Statement of Notes to For and on behalf of the Board of Directors
financial statement referred to in our report of
Anil Mutha Chairman (DIN 00051924)
even date
Subhash Agarwal Whole Time Director (DIN 00022127)
For M/s Banshi Jain & Associates
Chartered Accountants Dinesh Khandelwal Whole Time Director (DIN 00052077)
Firm Registration No. : 100990W Paras Bathia Whole Time Director (DIN 00056197)
Parag Jain Rakesh Sharma Independent Director (DIN 07622167)
Partner
Membership No. 078548 Sweta Jain Company Secretary
Place : Mumbai Pramod Surana Chief Financial Officer
Dated : 30th May, 2025
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