1.14 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when there is a present obligation as a result of a past event and it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the
amount of the obligation.
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. The Company also discloses present obligations for which a reliable
estimate cannot be made as a contingent liability. When there is a possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent Assets are not recognised but are disclosed when an inflow of economic benefits is probable.
1.15 Employee Benefits
1.15.1 Short-term Employee Benefits
These are recognised at the undiscounted amount as expense for the year in which the related service is rendered.
1.15.2 Other Long-term Employee Benefits (Unfunded)
The cost of providing long-term employee benefits is determined using Projected Unit Credit Method with
actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost
are recognised immediately in the Statement of Profit and Loss for the period in which they occur. Long term
employee benefit obligation recognised in the Balance Sheet represents the present value of related obligation.
1.15.3 Post-employment Benefit & Plans
Contributions under Defined Contribution Plans payable in keeping with the related schemes are recognised as
expenditure for the year.
In case of Defined Benefit Plans, the cost of providing the benefit is determined using the Projected Unit Credit
Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses are
recognised in full in the Other Comprehensive Income for the period in which they occur. Past service cost is
recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a
straight-line basis over the average period until the benefits become vested. The retirement benefit obligation
recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for
unrecognised past service cost, if any, and as reduced by the fair value of plan assets, where funded. Any asset
resulting from this calculation is limited to the present value of any economic benefit available in the form of
refunds from the plan or reductions in future contributions to the plan.
1.16 Impairment of Non-Financial Assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher on an asset’s fair value less costs of disposal and value in use.
For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash flows which are largely independent of the cash flows from other assets or group of assets (cash-generating units).
Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each
reporting period.
1.17 Segment Reporting
1.17.1 Identification of segment
The Company has identified that its operating segments are the primary segments. The Company’s operating
businesses are organized and managed separately according to the nature of products, with each segment
representing a strategic business unit and offering different products and serving different markets.
1.18 Borrowing Costs
Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are
charged to the Statement of Profit and Loss.
1.19 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and
settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be
enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the
counterparty.
1.20 Revenue Recognition
Revenue is recognised when control of the goods or services are transferred to the customer at an amount that reflects the
consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is measured
based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties.
The specific recognition criteria followed by the Company are described below:
1.20.1 Sale of Services
Timing of recognition: Revenue is recognised when no significant uncertainty as to its determination exists. The
primary business of the Company is financial consultancy as Merchant banker and brokerage at NSE and BSE.
The revenue in consultancy is recognised in terms of mandate and on completion of the assignment. The
brokerage income is recognised when contract of sale/purchase of equity is completed.
Goods and Services Tax (GST) is not received by the Company on its own account. Rather it is tax collected on
the value added to the product by the seller on behalf of the Government. Accordingly, it is excluded from
revenue.
Measurement of revenue: Estimates of revenues, costs or extent of progress towards completion are revised if
circumstances change. Any resultant increases or decreases in estimated revenues or costs are reflected in the
Statement of Profit and Loss in the period in which the circumstances that give rise to the revision become known
by management.
1.20.2 Sale of Goods
Revenue is recognised when control of the goods are transferred to the customer at an amount that reflects the
consideration to which the Company expects to be entitled in exchange for those goods.
1.20.3 Insurance and other Claims / refunds
Insurance and Other claims are recognized when there is a reasonable certainty of recovery.
1.20.4 Interest
Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate
applicable.
1.20.5 Dividend
Dividend is recognised when the right to receive the payment is established.
1.21 Accounting for Taxes on Income
Provision for current tax is made as per the provisions of the Income Tax Act, 1961.
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at
the reporting date. Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Management periodically evaluates positions taken in the tax returns
with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements at the reporting date. Deferred income tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period
and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is
settled.
Deferred Tax Liabilities are recognised for all temporary taxable differences. Deferred tax assets are recognised for all
deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available
to utilize those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are
offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.
Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.
1.22 Recent pronouncements
The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Third Amendment Rules 2024,
dated 28th September 2024, to amend the following Ind AS which is effective from 30th September 2024.
Amendment to Ind AS 104
An insurer or insurance company may provide its financial statement as per Ind AS 104 for the purposes of consolidated
financial statements by its parent or investor or venturer till the Insurance Regulatory and Development Authority notifies
the Ind AS 117 and for this purpose, Ind AS 104 shall, as specified in the Schedule to these rules, continue to apply.
The said amendment is not applicable to the Company and accordingly, has no impact on the Company’s financial
statements.
17.2 Rights, preferences and restrictions attached to shares
The Company has only one class of issued shares i.e. Equity Shares having face value of Rs. 10 per share. Each holder of Equity
Shares is entitled to one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.
The shareholders have the right to declare and approve dividend, as proposed by the Board of Directors for any financial year, to
be paid to the members according to their rights and interest in the profits. However, no larger dividend shall be declared than is
recommended by the Board of Directors.
35) DUES TO MICRO ENTERPRISES AND SMALL ENTERPRISES
The Company has no dues to micro enterprises and small enterprises as at 31st March, 2025 and 31st March, 2024 in the
Standalone Financial Statements based on the information received and available with the Company.
36) BALANCE CONFIRMATION
Outstanding balances of Trade Receivables, Advances are subject to confirmation from the respective parties and consequential
adjustments arising from reconciliation if any. The management, however, is of the view that there will be no material
discrepancies in this regard.
37) EMPLOYEE BENEFITS
A. Defined Benefit Plans
Defined Benefit Plans expose the Company to actuarial risk such as: Interest Rate Risk, Liquidity Risk, Salary Escalation
Risk, Demographic Risk and Regulatory Risk.
i. Interest Rate Risk: The plan exposes the Company to the risk of fall in 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 (as shown in the Standalone Financial Statements).
ii. Liquidity Risk: This is the risk that the Company is not able to meet the short-term benefit payouts. This may arise due
to non-availability of enough cash/ cash equivalents to meet the liabilities or holding of illiquid assets not being sold in
time.
iii. 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 in future for plan participants from the rate of increase in salary used to determine present
value of obligation will have a bearing on the plan’s liability.
iv. 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.
v. 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 Rs. 20,00,000).
Gratuity Plans
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled
to gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The above Scheme is funded.
Level 2 hierarchy includes financial instruments that are not traded in active market. This includes instruments valued using
observable market data such as yield etc. of similar instruments traded in active market.
Level 3 if one or more significant inputs are not based on observable market data, the instrument is included in level 3. This is
the case for unlisted equity instruments and certain debt instruments which are valued using assumptions from market
participants.
(iii) Valuation techniques used for valuation of instruments categorized as level 3
For valuation of investments in equity shares of associates which are unquoted, peer comparison has been performed
wherever available. Valuation has been primarily done based on the cost approach wherein the net worth of the Company
is considered and the price to book multiple is used to arrive at the fair value. In cases where income approach was
feasible valuation has been arrived using the earnings capitalization method. For inputs that are not observable for these
instruments, certain assumptions are made based on available information. The most significant of these assumptions are
the discount rate and credit spreads used in the valuation process. For valuation of investments in debt securities
categorized as level 3, market polls which represent indicative yields are used as assumptions by market participants
when pricing the asset.
(iv) Financial Instrument- Financial Risk Management
The Company’s activity exposes it to various risks such as market risk, liquidity risk and credit risks. This section explains
the risks which the Company is exposed to and how it manages the risks.
A. Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange risk rates, interest rates and equity prices
which will affect the Company’s income or the value of its holdings of financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while optimising the
return. The Company’s main business activity, financial consulting, has no or limited entry barrier. Entry of Banks and
large consulting firms has increased competition.
(i) 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. The Company is exposed to interest rate risk on financial liabilities such as
long-term borrowings.
The Company is also exposed to interest rate risk on its financial assets that include fixed deposits.
(ii) Price Risk
The Company’s exposure to equity securities price risk arises from investments held by the Company and
classified in the Balance Sheet as fair value through Profit or Loss. The majority of the Company’s equity
investments are publicly traded.
(iii) Sensitivity analysis- Equity price risk
The table below summarises the impact of increase/decrease of the market price of the listed instruments on the
Company’s equity and profit for the period. The analysis is based on the assumption that market price had
increased by 2% or decreased by 2 %.
B. Liquidity Risk
The Company determines its liquidity requirements in the short, medium and long term. This is done by drawing up cash
forecast for short and medium term requirements and strategic financing plans for long term needs.
The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant
delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining
adequate cash and cash equivalent position. This is generally carried out in accordance with practice and limits set by the
Group.
(i) Maturity Analysis
The Company’s financial liabilities into relevant maturity groupings based on their contractual maturities as
disclosed in the table are the contractual undiscounted cash flows. The impact of discounting is not significant.
C. Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligation, and arises principally from the Company’s receivables from customers, stock
exchanges and clearing members. The carrying amount of financial assets represents the maximum credit
exposure. Security deposit with stock exchanges and clearing members mainly represents the margin money to
cover the regular trading exposure in stock exchanges backed by margin collected from clients and has very
insignificant credit risk.
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each client.
However, management also considers the factors that may influence the credit risk of its customer base, including
the default risk associated with the industry.
Financial assets are written off when there is no expectation of recovery such as debtors failing to engage in a
repayment plan with the Company. Where loans and receivables have been written off, the Company continues to
engage in enforcement activity to attempt to recover the receivable due. Where necessary, the Company has
adopted the policy of creating expected credit loss where recoveries are not made, these are organised as expense
in the Statement of Profit and Loss.
43) Segment Reporting
The Company is primarily engaged in the business of “Investment Banking” which constitutes a single reporting segment and
the Management does not monitor the operating results of its business units as a whole for the purpose of making decisions
about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss in the
standalone financial statements, thus, there are no additional disclosures to be provided under Ind AS 108- “Operating
Segments.”
44) Capital Advances
Capital Advances represent an amount of Rs. 62,560.00 (in hundreds) towards the booking of two flats at Mumbai against
total consideration of Rs. 84,500.00 (in hundreds) in the Financial Year 2008. The Company is yet to receive the possession
and therefore due to abnormal delay, the Company had filed the case at the RERA court, Mumbai against builder in Financial
Year 2019-20. In the Financial Year 2024-25, the RERA court has ordered the Builder to refund the entire amount paid by the
Company. In the opinion of the management, no provision is required in this regard.
45) The Board of Directors have recommended a dividend at the rate of Re. 1 per share (face value Rs. 10) (previous year Re.
1.00) for the year ended 31st March, 2025, subject to approval of the shareholders at the ensuing Annual General Meeting.
As per requirements of Ind AS, the Company is not required to provide for proposed dividend declared after the Balance Sheet
date. Consequently, no provision has been made in respect of the aforesaid dividend proposed by the Board of Directors for
the year ended 31st March, 2025. Had the company continued with the creation of the provision of the proposed dividend as
at the Balance Sheet date, its surplus in the Statement of Profit and Loss would have been lower by Rs. 79,844.24 (in
Hundreds) (Previous Year Rs. 79,844.24 (in Hundreds)) on account of dividend and the short term provision would have been
higher by the said amount of Rs. 79,844.24 (in Hundreds) (Previous Year Rs. 79,844.24 (in Hundreds)).
46) During the year, Unclaimed Dividend amounting to Rs 2,248.63 (Hundreds) relating to financial
year 2016-17 has been transferred to Investor Education and Protection Fund (IEPF) Account as per Section 124(5) of the
Companies Act, 2013.
47) Additional Regulatory Information:
• The Company does not have any transactions with companies struck off.
• The Company has not traded or invested in Crypto currency or Virtual Currency during the year.
• The Company has complied with the number of layers prescribed under the Companies Act, 2013.
• The Company does not hold any Benami Property by its name.
• The Company has not been declared wilful defaulter by any bank or financial institution or any other lender.
48) Figures have been rounded off to nearest Hundreds.
Signature to Notes 1 to 48
For V. SINGHI & ASSOCIATES For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No.:311017E
(Naveen Taparia) Bhawani Shankar Rathi Bijay Murmuria
Partner Wholetime Director Director
Membership No. 058433 DIN : 00028499 DIN: 00216534
Place : Kolkata Dhwani Fatehpuria Girdhari Lal Dadhich
Date : 16th May, 2025 Company Secretary Chief Financial Officer
Membership No. FCS12817
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