a. Guarantees/property given for facilities taken by Wholly Owned Subsidiary Company named Ritco Travels and Tours Private Limited:-
i. Over Draft Facility: As on 31.03.2025 originally sanctioned limited Rs. 100 Lakhs from Bank of Baroda and outstanding/ utilized Rs.67.64 lacs (as on 31.03.2024: Sanctioned Limit 100 Lakhs and outstanding/ utilized Rs. 0.0 lacs)
ii. Working Capital Term loan: As on 31.03.2025 Originally sanctioned limits Rs. 838.08 Lakhs from Bank of Baroda and outstanding/utilized Rs.206.41 lacs (as on 31.03.2024: Sanctioned Limit 838.08 Lakhs and outstanding/utilized Rs.341.97 lacs)
iii. Joint Bank Guarantee given to IATA Limited through TAFI: Rs. 300 Lakhs (as on 31.03.2024: Rs. 300 Lakhs)
iv. Bank Guarantee:116 Lakhs(from HDFC Bank Ltd.) (as on 31.03.2024: 49.50 lakhs)
b. During FY2019-20, three incidents of Cyber fraud happened in which funds moved using bank account of company. Yes Bank on the basis of police complaints filed by victims has freezed a sum of Rs. 23.44 lacs in the bank account of Company. Company has filed petition before the Hon'ble High Court of Chattisgarh for defreezing the same. During FY 2024-25, twenty two incidents of Cyber fraud happened in which funds moved using bank account of company through different SBI CSP locations. State Bank of India on the basis of police complaints filed by victims has freezed a sum of Rs. 31.20 lacs in the bank account of Company. Company has filed FIR against
c. Income Tax demand disputed in appeal for A.Y. 2017-18 Rs.27.61 lacs and for A.Y. 2018-19 Rs. 276.03 Lakhs (previous year Income Tax demand disputed in appeal for A.Y. 2017-18 Rs.27.61 lacs and for A.Y. 2018-19 Rs.
276.03 lakhs
d. TDS Defaults of Rs. 3.21 Lakh (Previous year Rs. 2.90 lakh)
e. GST Demand order against Financial Year 2019-20 of Tax Rs. 17.03 Lakh and penalty Rs.1.70 Lakh for which Appeal is filed to First Appellate authority ,Delhi.
f. GST Demand order consequent upon 5 Year GST Audit- Tax Amount of Rs. 417.06 Lakh and penalty Amount of Rs. 424.51 Lakh out of which deposited Rs. 0.23 Lakhs against tax and Rs.0 .04 Lakh against penalty.
44 Disclosure as per Ind AS 108: Operating Segments
The company is engaged in the business of Forex and Remittances and hence there is no other separate reportable segment within the criteria defined under Ind AS-108 Operating Sagments. Although Segment Reporting for the group is given in Consolidated Financial Statement.
45 Disclosure as per Ind AS 107: Financial Instruments
Financial Risk Management
The Company's principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to manage finances for the Company's as well as of it's wholly owned subsidiary's operations. The Company has advances and other receivables, trade and other receivables, and cash and short-term deposits that arise directly from its operations. The Company also enters into derivative transactions.The most significant financial risks to which the Company is exposed to are described as follows:-
45.1 Market risk
Market risk is the risk that the fair value or future cash flows of a financial/ paid instrument/ foreign exchange will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as investment price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits,investments, and derivative financial instruments. This is based on the financial assets and financial liabilities held as at March 31, 2025 and March 31, 2024.
45.2 Credit risk
Credit risk is the risk that a counter party/client will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.
45.3 Liquidity ris k.
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.
45.4 Physical risk.
Physical risk is the risk of theft or robbery or fakeness of cash and cash equivalents, leading to a financial loss. Fake currencies and loss by theft (if not recovered from insurance) are provided in the P&L A/ c. The company provides training to staff for recognizing the valid currency and has taken adequately insurance coverage for covering loss which may be incurred by company due to theft and robbery.
Risk Management framework
The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial performance. The Company does not acquire or issue derivative financial instruments for trading or speculative purposes.
Risk management is carried out by the risk management team under policies approved by the board of directors and consultants. The risk management team identifies, evaluates and hedges financial risks in close co-operation with the Company's operating units. The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, and credit risk, use of derivative financial instruments and non-derivative financial instruments, phisical risk and investment of excess liquidity.
ancial Risk Management 1. Market risk
i. Interest Rate Risk:
Interest rate risk is the risk that the fair value of the future cash flows of the financial instrument will fluctuate because of changes in market interest rates. The company only have fixed interest rate financial instruments. The company is not exposed to interest rate risk as it does not have any floating rate instruments at the respective reporting periods.
Fair V alue sensitivity analysis for fixed rate
The company's fixed rate instruments are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
ii. Currency Risk
The Company operates in the business of money exchange including outward remittance and inward remittance and major portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its services in various foreign currencies.
Foreign currency exchange rate exposure is partly balanced by services in the respective currencies.
The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows established risk management policies, including the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.
2. Credit risk
The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and other financial instruments.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company categorizes a loan or receivable for write off when a debtor fails to make contractual payments greater than 3 years past due and management is of the opinion that all the possible efforts have been undertaken for recovery but the recovery is not possible. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit and loss. The Company across all the divisions avoid business having risk of delayed payments, even at the cost of Top-line growth.
Company is having a system of online follow-up on daily basis to avoid the delay in payments.
Strict watch is being maintained on cheque bouncing instances and if there is any bouncing from the client , more precautions are taken.
Money Receivable for Money changing business is being checked on daily basis by Compliance Officer, Manager Operations. Credit apprisal process and know your customer norms are being followed prior to giving credit.
Trade Receivables
The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and Industries and operate in largely Independent markets.
Investments
The Company limits its exposure to investments by investing in only counter parties after consideraing all the relavent factors. The management actively monitors the interest rate and maturity period of these investments. The Company does not expect the counter party to fail to meet its obligations, and has not experienced any significant impairment losses in respect of any of the investments.
Cash and cash equivalents
The Company held cash and cash equivalents of Rs. 524.48 Lakh (31 March 2024: Rs. 573.93 Lakhs ). Bank balances out of cash and cash equivalents are held with banks with high rating.
(ii) Provision for expected credit losses
(a) Financial assets for which loss allowance is measured using 12 month expected credit loss
The Company has assets where the counter-parties have sufficient capacity to meet the obligations and where the risk of default is very low. Accordingly, no loss allowance for impairment has been recognised.
(b) Financial assets for which loss allowance is measured using life time expected credit loss
Exposure to credit risk is to be shown in case where ECL or lifetime ECL is recognized .
Other balances included fixed assets written off Rs. 1.43 Lakhs
iii. Financial instruments and cash deposits
The Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which balances and deposits are maintained. Generally, the balances are maintained with the institutions with which the Company has also availed fund and non fund based financial facilities. The banks are also chosen as per the geographical and other business conveniences and needs.
The Company maintain significant cash and deposit balances which is required for its day to day operations.
5 Liquidity Risk
The Company's objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies on a mix of borrowings, capital infusion and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.
The Company is required to maintain ratios (including total debt to EBITDA / net worth, EBITDA to gross interest, debt service coverage ratio and secured coverage ratio) as mentioned in the loan agreements at specified levels. In the event of failure to meet any of these ratios these loans become callable at the option of lenders, except where exemption is provided by lender.
All assets and liabilities for which fair value is measured or disclosed in the standalone 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- Level 1 hierarchy includes financial instruments measured using quoted prices. This Includes listed equity instruments that have quoted price. Listed and actively traded equity instruments are stated at the last quoted closing price on the National Stock Exchange of India Limited (NSE).
Level 2- The fair value of financial instruments that are not traded in active market is determined using valuation techniques which maximize 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. The fair value of the financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar instruments. This level includes foreign exchange forward contracts and investments in unquoted equity instruments.
There has been no transfer in either direction in this year or the previous year. c) Valuation technique used to determine fair value:
Specific Valuation techniques used to fair value the financial instruments include:
(i) For Financial instruments other than at (ii) ,(iii) and (iv) - the use of quoted market prices.
(ii) For investments in Mutual Funds- Closing NAV is used
(iii) For Financial liabilities (public deposits, long term borrowings) Discounted Cash Flow; appropriate market borrowing rate of entity as on each balance sheet date used for discounting.
(iv) For financial assets (loans) discounted cash flow; appropriate market brrowing rate of the entity as on each balance sheet date is used for discounting.
48 Capital Risk Management
For the purposes of the Company's capital management, capital includes issued capital, share premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings, trade and other payables less cash and short term deposits. The primary objective of the Company's Capital Management is to maximize shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirements of the financial covenants.
Contract Costs
The contract cost primarily relates to direct cost related to acquire new customer for PPI business. During the period, card acquisition cost amounting to Rs. NIL lakhs for the year ended 31st March, 2025(P.Y. Rs. 246.61 lakhs) has been deferred and recognized as contract assets in accordance with Ind AS 115. The same is amortized over the estimated behavioral life of the card/ customer.
52 The company had received the SCN No. T-4/SRO/SDE/CEZO-II/16/2022 dated 31.03.2022 from Directorate of Enforcement, Chennai under Section of 16 of FEMA, 1999 as to why adjudicating process as contemplated under Section 16 of FEMA, 1999 should not be held against it in the manner as provided under rule 4 of the FEMA (Adjudicating and appeal) Rules, 2000 for the alleged contraventions to the extent of Rs. 727259.84 Lacs relating to the financial year 2016-2017 and 2017-2018 and as to why penalty as provided under Section 13(1) of FEMA, 1999 should not be imposed. The SCN is related to the MTSS business of the company which has already been closed by the company in year 2018 by surrendering its MTSS License.Proceedings are still pending at DOE level with ad interim stay on proceedings by Hon'ble Bombay High Court. Looking to many infirmities observed by the company in the SCN, and pending legal proceedings the company does not anticipate any impact on its financial statements.
b) Other particulars/disclousers as required by Schedule III are either nil or not applicable
58 Balances of Sundry Debtors , Sundry creditors, Advances given and advances received are subject to confirmation and reconciliation. Management on reconciliation / confirmation expects no material financial impact
59 During earlier year company initiated the process for composite scheme of arrangement between Transcorp Estates Private Limited, Transwire Forex Limited, Transcorp Payments Limited and their respective shareholders and creditors. The appointed date for the arrangement as per scheme is 1st April 2022. Bombay Stock Exchange has communicated to company by returning the scheme that activities of the company proposed to be demerged are predominantly regulated by RBI and as such requested to refile the same with stock exchange after receipt of NOC/ Clearance from the principal regulator. Company has not so far received NOC/ Clearance from the principal regulator.
60 Previous Year's figures have been regrouped, rearranged or recasted wherever considered necessary.
Company had during the quarter ended 31.12.2024 noticed that in respect of its prepaid instrument transactions the amounts related to successful IMPS transactions involving 189.87 lacs were erroneously credited back to customer wallets due to failure of software in decrypting the API responses received. Company immediately
61 took the necessary steps and has so far received back a sum of Rs.95.27 lacs from respective remitters. Process of recovering the balance amount is on and company expects that it will receive back most of it. Company as per its best estimate booked a loss of Rs. 23 lacs( around 25% of balance amount) being possible shortfall in recovery.
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