2.10 Accounting for Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is
a present obligation as a result of past events and it is probable that there will be an outflow of
resources. A disclosure for a contingent liability is made when there is a possible obligation or
present obligation that may, but probably will not; require an out flow of resources. Contingent assets
are neither recognized nor disclosed in the financial statements.
2.11 Foreign currency transactions and translations
Initial recognition: Foreign currency transactions are translated into the functional currency using
the exchange rates prevailing at the dates of the transactions.
Conversion: Monetary assets and liabilities denominated in foreign currency, which are
outstanding as at the reporting date, are translated at the reporting date at the closing exchange
rate and the resultant exchange differences are recognised in the Statement of Profit and Loss.
Non-monetary items that are measured at historical cost in a foreign currency are translated using
the spot exchange rates as at the date of recognition”
2.12 Cash Flow Statement
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects
of transactions of a non cash nature and any deferrals of past or future cash receipts and payments. The
cash flows from regular operating, investing and financing activities of the company are segregated.
2.13 Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash
in hand, deposits held at call with financial institutions, other short-term, highly liquid investments readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Bank borrowings are used for business purposes, and hence bank overdrafts are not considered to be a
part of cash and cash equivalents in Cash flow statement
2.14 Segment Reporting
The segment reporting is prepared in accordance with AS-17 Segment Reporting.
The Company is having single segment as the Company's business is to provide broking services, to its
clients, in the capital markets in India and also to do proprietary trading in derivative and cash market. All
other activities of the Company are ancillary to the main business.
2.15 Earnings Per Share
c. Basic earnings per equity share is computed by dividing net profit or loss after tax attributable to the equity
shareholders for the year by the weighted average number of equity shares outstanding during the year.
d. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to
issue equity shares were exercised or converted during the year. Diluted earnings per equity share is
computed by dividing adjusted net profit or loss after tax by aggregate of weighted average number of
equity shares and dilutive potential equity shares outstanding during the year.
2.16 Exceptional Items
The Company recognises exceptional items when items of income and expenses within Statement of Profit
and Loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain
the performance of the enterprise for the period. Significant impact on the financial statements arising from
impairment of investments in subsidiaries and associates, gain/ loss on disposal of subsidiaries and associates
(other than major lines of business that meet the definition of a discontinued operation) are considered and
reported as exceptional items.
2.17 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.
2.19 Contingent Liability
a. The company has provided bank guarantees aggregating to INR 10,000 lakhs as on March 31,
2025 (INR 4,500 Lakhs as on March 31, 2024) for meeting Margin requirements. The details
of the same are as under.
During the year, ended March 31,2025, company had provided the following bank guarantees:
2.22 In the previous year ended March 31, 2024 pursuant to board resolution dated September 23, 2023
bonus issue approved by the shareholders, during the year the Company has allotted 36,81,486 bonus
shares of Face value of INR10 Each on September 27, 2023. The Bonus share is issued in the ratio of
one equity share credited as fully paid up for every two equity share held by the members. The bonus
shares were issued by capitalization of free reserves aggregating to INR 368.45 lakhs of the Company.
2.23 Previous year ended March 31, 2024 the company had completed the Initial Public Offer (“IPO”)
including fresh issue of INR 3,823.31 lakhs comprising 46,06,400 equity shares of INR 10 each at an
issue price of INR 83 per share. The equity share of the company were listed on BSE Limited under
SME category w.e.f. March 15, 2024.The company has incurred INR 289.74 lakhs as IPO related
expenses and the same has been debited to the Operating expenses and other expenses.
2.24 Pune E - Stock Broking Limited, (“Holding Company”) has made investment of INR 120 lakhs in FY23
by infusion of capital through Overseas Direct Investment in Pune E- Stock Broking IFSC Limited (the
“Company”) a wholly owned subsidiary which was incorporated on September 19, 2022 at Gift City
Gandhinagar, Ahmedabad.
The Subsidiary Company is engaged in the business Stock Broking, Pro Trading. During the year a
company has sought the approval from Reserve Bank of India for infusion of capital in subsidiary
company and remitted the fund however, the ISIN allotment from the authority is pending and hence
the share certificate is pending for the allotment to the subscribers of the shares as on March 31,
2025.
2.25 As per Section 135 of The Companies Act, 2013, a Company, meeting the applicability threshold,
needs to spend at least 2% of its average net profit for the immediately preceding three financial years
on corporate social responsibility (CSR) activities. Details with respect to CSR activities are as follows:
Nature of CSR activities:
For Year ended 31st March, 2025: As per Schedule VII: Promoting health care including preventive health
care; Promotion of Education and school Infrastructure.
For Year ended 31st March, 2024: As per Schedule VII: Promoting health care including preventive health
care; Promotion of Education and school Infrastructure.
2.26 Employee Benefits:
Defined Contribution Plans
The company recognized following amounts in the Statement of Profit and Loss:
Towards Employer's Contribution to Provident Fund and Employee State Insurance INR 14.61 lakhs
for the year ended March 31, 2025. (Previous year- March 31, 2024 INR11.39 lakhs)
Defined benefit plans
The Company offers its employees defined-benefit plans in the form of a gratuity scheme (a lump sum
amount). Benefits under the defined benefit plans are typically based on years of service and the
employee's compensation (Last drawn basic salary immediately before retirement). The gratuity
scheme covers substantially all regular Employees. Such plan exposes the Company to actuarial risks
such as: Interest rate risk, Liquidity Risk, Salary Escalation Risk, demographic risk and Regulatory
Risk, defined as follows:
Interest Rate Risk:
The plan exposes the Company to the risk of falling interest rates. A fall in interest rates will result in
an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the
value of the liability.
Liquidity Risk:
This is the risk that the Company may not be able to meet the short-term gratuity payouts. This may
arise due to non-availability of enough cash/cash equivalent to meet the liabilities or holding of liquid
assets not being sold in time.
Demographic Risk:
The Company has used certain mortality and attrition assumptions in valuation of the liability.
The Company is exposed to the risk of actual experience turning out to be worse compared to the
assumption.
Salary Escalation Risk:
The present value of the defined benefit plan is calculated with the assumption of salary increase rate
of plan participants in future. Deviation in the rate of increase of salary in future for plan participants
from the rate of increase in salary used to determine the present value of obligation will have bearing
on the plan's liability.
Regulatory Risk
Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act,1972
(as amended from time to time). There is a risk of change in regulations requiring higher gratuity
payouts (e.g. Increase in the maximum limit on gratuity of INR 20,00,000 etc.). The discount rate
indicated above reflects the estimated timing and currency of benefit payments. It is based on the
yields/ rates available on applicable bonds as on the current valuation date. The salary growth rate
indicated above is the Company's best estimate of an increase in salary of the
employees in future years, determined considering the general trend in inflation, seniority, promotions,
past experience and other relevant factors such as demand and supply in the employment market,
etc. Mortality rate is a measure of the number of deaths (in general or due to specific cause) in a
population, scaled to the size of that population, per unit of time.
The Company does not have any diluted potential Equity Shares. Consequently, the basic and diluted
profit/earnings per share of the company remain the same.
2.29 During the year, the company has recorded diminution in value of investment for Vraj Productions LLP
amounting to INR 24.05 lakhs and disclosed the same in Note no 24 “Other Operational Expenses”
During the Financial year 2024-25, holding company has incorporated PESB Capital Venture (Trust) and
PESB Asset Management LLP for its foray into Alternative Investment Fund (AIF).
The company has made the initial capital contribution of INR 1 Lakh in PESB Asset Management LLP.
2.30 Other Regulatory requirements
a) Title deeds of immovable property not held in the name of the company
The Company holds title deeds of all the immovable property (other than properties where the company
is the lessee and the lease agreements are duly executed in favour of the lessee) in the name of the
company.
b) Fair Valuation of Investment Property, and Revaluation of Property, Plant & Equipment's, and
Intangibles Assets
The Company does not have investment property, as such the valuation as defined under rule 2 of
Companies (Registered Valuers and Valuation) Rules 2017 is not applicable.
Further, the company has not revalued its Property, Plant & Equipments, and Intangibles Assets during
the year.
c) Intangible assets under development
The company does not have any Intangible assets under development
d) Relationship with struck off companies
The company did not have any transactions with companies struck off under section 248 of the Companies
Act, 2013, as such no declaration is required to be furnished.
e) Registration of Charge/Satisfaction
There are no charges or satisfaction, which is yet to be registered as on March 31,2025, with the Registrar
of Companies beyond the Statutory period.
f) Details of Benami Property
No proceedings have been initiated or pending against the company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 and rules there under.
g) Wilful defaulter
The company has not made any default in the repayment of any borrowing, as such the declaration as a
wilful defaulter is not applicable.
h) Compliance with a number of layer of the Companies
The company has not made any non-compliance in respect of the number of layers prescribed under
clause (87) section 2 of the Act read with Companies (Restriction on number of layers) Rules, 2017.
i) Cryptocurrency or Virtual Currency
The Company has neither traded nor invested in Crypto currency or Virtual currency during the financial
year.
j) Compliance with approved scheme (s) of arrangements
The company didn't enter into any arrangement u/s 230 to 237 of the Companies Act, 2013 during the
year, thus, such disclosure is not required
k) Undisclosed Income
There were no previously unrecorded income that has been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961
l) Utilisation of borrowed fund
(iii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the intermediary shall
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, provided any guarantee, security or
the like to or on behalf of the ultimate beneficiaries.
(iv) The Company has not received any funds from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that
the company shall 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, provided any
guarantee, security or the like to or on behalf of the ultimate beneficiaries.
m) Loans/Advance granted to Directors, Promoters, or Key Managerial Personnel
The company has not granted any loans or advances in the nature of loans to the Directors, Promoters,
Key Managerial Personnel and their relatives.
2.31 Segment Reporting
The Company's operations predominantly relate to equity, currency and commodity broking and its
related activities business and is the only operating segment of the Company. The Chief Operating
Decision Maker (CODM) reviews the operations of the Company as one operating segment. Hence no
separate segment information has been furnished herewith.
The Company operates in one geographic segment namely "within India" and hence no separate
information for geographic segment wise disclosure is required.
2.32 Events after the reporting date
There were no significant events after the end of the reporting period which require any adjustment or
disclosure in the financial statements. In terms of AS-4 “Contingencies and Events occurring after the
balance sheet date”, the company has not recognised dividend (recommended by the board) as a
liability at the end of the reporting period.
2.34 Note on Code on Social Security' 2020
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the
contributions by the Company towards Provident Fund and Gratuity. However, the date on which the
Code will come into effect has not yet been notified. The Company will assess the impact of the Code
when it comes into effect and will record any related impact after the Code becomes effective.
2.35 Previous year figures have been regrouped/ reclassified and rearranged whenever necessary to
correspond with the current year's classification/ disclosure.
3.2 Terms/ rights attached to Equity Shares
The Company has only one class of equity shares. The face value of the equity share isINR 10 /- each. Each
shareholder is eligible for one vote per share and carry a right to dividends as approved by Board/Annual General
Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the
remaining assets of the Company in proportion to the number of equity shares held by the shareholders, after
distribution of all preferential amounts. However, currently no such preferential amounts exist.
Note A -Overdraft facility carries an interest @ 9% p.a. payable monthly. It is repayable at the term of 12 months.
The company has created mortgage over its property 1) Showroom at Mezzanine situated at plot no 90 shukrwar peth, Pune
411002 and Property 2) Flat no 101, 102, 201, 202 situated at plot no 90 shukrwar peth Pune 411002 and is also secured
against original FDR duly discharge in favour of Axis bank limited.
Note B - Overdraft facility carries an interest @ 8.20% p.a. payable monthly. It is repayable as per agreed terms. Secured
against orogonal FDR duly discharge in favour of Yes Bank Ltd
Note C - Working capital facility carries an interest @ 9.50 % p.a. payable monthly. It is repayble at the term of 12 months.
The said facility is pledge against the securities / shares held by the company, director and relative of director.
Note D - Exclusive charge over the receivables from margin Trading Funding provided by the Company to its clients, both
present and future.
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