3.11 Provisions and Contingent Liabilities
A provision is recognized when the Company has
a present obligation as a result of past events
and it is probable that an outflow of resources
will be required to settle the obligation in respect
of which a reliable estimate can be made. 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. These are reviewed at each Balance
sheet date and adjusted to reflect the current
best estimates.
Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only
by the occurrence or non-occurrence of one or
more uncertain future events not wholly within
the control of the Company. A present obligation
that arises from past events where it is either
not probable that an outflow of resources will
be required to settle or reliable estimate of the
amount cannot be made, is termed and disclosed
as contingent liability.
3.12 Segment reporting
The Company's operating segments are
established on the basis of those components
of the Company that are evaluated regularly by
the Executive Committee (the 'Chief Operating
Decision Maker' as defined in lnd AS 108-
'Operating Segments'), in deciding how to
allocate resources and in assessing performance.
These have been identified taking into account
the nature of products and services, the differing
risks and returns and the internal business
reporting systems. Basis of such evaluation,
the Company concluded it operates in a single
reportable segment.
3.13 Earnings per share (EPS)
The basic earnings per share is computed
by dividing profit after tax attributable to the
equity shareholders by the weighted average
number of equity shares outstanding during the
reporting period.
The diluted earnings per share is computed by
dividing profit after tax attributable to the equity
shareholders by the weighted average number
of equity shares outstanding plus the weighted
average number of equity shares that would
be issued on the conversion of all the dilutive
potential ordinary shares into ordinary shares.
The number of equity shares used in computing
diluted earnings per share comprises the weighted
average number of shares considered for deriving
basic earnings per share and also weighted
average number of equity shares which would
have been issued on the conversion of all dilutive
potential shares, unless they are anti-dilutive.
3.14 Dividends on Equity Shares
Final dividends on shares are recorded as a liability
on the date of approval by the shareholders and
interim dividends are recorded as a liability on the
date of declaration by the Company's Board of
Directors.
3.15 Trade receivables
Trade receivables that do not contain a significant
financing component are measured at transaction
price.
3.16 Standards Issued/Amended but not Effective
There are no new standards which have been
issued but not yet effective.
Terms/rights attached to equity shares
The Company has only one class of shares referred to as equity shares. Each holder of equity shares is entitled to one vote
per share.
The holders of equity shares are entitled to dividend, if any, proposed by the Board of Directors and approved by
shareholders at the Annual General Meeting
*During the previous year, the Company has capitalized a sum of' 149,56,30,710/- byway of issue of bonus shares of' 10/-
each to existing shareholder's in the proportion of three new shares for every one shares held, as approved in the EGM
of the Company held on September 19, 2024. Pursuant to this, 7,62,77,166 equity shares were issued as bonus shares to
Canara Bank & 7,32,85,905 equity shares were issued as bonus shares to ORIX Corporation Europe N.V.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholder.
Initial Public Offering - Offer for sale (OFS)
During the year ended March 31, 2026, the Company has completed initial public offer (IPO= Offer for sale) of 4,98,54,357
equity shares of face value of ' 10 each at an issue price of ' 266.00 per share, comprising offer for sale of shares of
2,59,24,266 by Canara Bank and sale of shares of 2,39,30,091 by ORIX Corporation Europe N.V. Pursuant to the IPO, the
equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on
October 16, 2025. The Company has not received any proceeds from the offer and all such proceeds (net of any offer-
related expenses which are borne by Shareholders) have gone to the Shareholders. The offer has been authorized by
resolution of Board of Directors at their meeting held on April 24, 2025.
ESOP-2025
14,55,109 equity shares of' 10 each are reserved for issuance towards outstanding employee stock options.
a. Securities premium reserve
The amount received in excess of face value of equity shares has been classified as securities premium.
b. General Reserve
General Reserve is created from time to time by transferring profits from retained earnings.
c. Share options Outstanding Account
The fair value of equity-settled share based payments as on grant date for transactions with employees are recognized in
the Statement of Profit and loss with corresponding credit to this account over the vesting period.The amounts recorded in
Share options outstanding account are transferred to securities premium upon exercise of stock options by the employee
and subsequent allotment of shares to them.
d. Retained Earning
Retained earning represents the amount of accumulated earnings of the Company.
e. Other Comprehensive Income
It consist of remeasurement of net defined benefit liability/assets of the employee benefits.
f. Dividend
During the year, Interim Dividend @ ' 1.50 per equity share aggregating to ' 2,991.26 Lakhs was paid for FY 2025-26 and
Final Dividend @ ' 1.50 per equity share aggregating to ' 2,991.26 Lakhs was paid for FY 2024-25. During previous year,
interim Dividend @ ' 1.00 per equity share aggregating to ' 1,994.17 Lakhs was paid and Final Dividend @ ' 5.00 per equity
share aggregating to ' 2,492.72 Lakhs was paid for FY 2023.24.
The Board of Directors of the Company have proposed final dividend of' 4,985.44 Lakhs @ ' 2.5 per equity share for FY
2025-26 (Previous year' 2,991.26 Lakhs for FY 2024-25), subject to the approval of the shareholders at the ensuing Annual
General Meeting.
Note: Basic earnings per share (EPS) is calculated by dividing the profit after tax for the year attributable to equity
shareholders of the Company by the weighted average number of equity shares outstanding during the year.
Diluted EPS is calculated by dividing the profit after tax for the year attributable to equity shareholders of the Company
adjusted for the effects of all dilutive potential ordinary shares by weighted average number of equity shares outstanding
during the year plus the weighted average number of equity shares that would be issued on the conversion of the dilutive
potential ordinary shares.
b) Defined benefit plan - Gratuity
In accordance with the applicable Indian laws, the Company has a defined benefit plan which provides for gratuity
payments. The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their
employment, which requires contributions to be made to a separately administered fund. The amounts are based on
the respective employee's last drawn salary and the years of employment with the Company.
The Company contribute to an approved Group gratuity policy with LIC. To Administer gratuity payments, Company
has created a gratuity Trust. Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based
upon which the Company makes annual contributions to the plan.
The following tables summaries the components of net employee benefit expense recognized in the Statement of
Profit and Loss, the funded status and amounts recognized in Balance Sheet.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the projected benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same method
as applied in calculating the projected benefit obligation as recognized in the balance sheet.
Risks associated with defined benefit plan
(i) Interest Rate Risk
A fall in the discount rate which is linked to the G-Sec rate will increase the present value of the liability requiring
higher provision. A fall in the discount rate generally increases the fair value of the assets depending on the
duration of asset.
(ii) Salary Risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members.
As such, an increase in the salary of the members more than the assumed level will increase the plan's liability.
(iii) Investment Risk
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset
is below this rate, it will create a plan deficit. Currently, for the gratuity plan in India, it has a relatively balanced
mix of investments in money market instruments and public deposits.
(iv) Asset Liability Matching Risk
The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income
Tax Rules, 1962. this generally reduces ALM risk.
(v) Mortality Risk
Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not
have any longevity risk.
(vi) Concentration Risk
The plan has a concentration risk as all the assets are invested with the insurance company and a default will
wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent
regulatory guidelines which mitigate risk.
During the year, there were no plan amendments, curtailments and settlements.
36 EMPLOYEE SHARE BASED PAYMENTS
Employee stock option scheme (Equity settled)
The Company has formed an Employee Stock Option Scheme i.e CRAMC Employee Stock Option Scheme 2025 ("ESOP
2025"/Scheme), which covers eligible employees of the Company. The vesting of the options is from expiry of one year
till three years from the date of grant.Each option entitles the holder thereof to apply for and be allotted/transferred one
equity share of the Company upon payment of the exercise price during the exercise period.
In ESOP 2025, the options shall vest in three tranches. Each of these tranches consisting of 1/3 of the options granted
shall vest on the completion of the 1st, 2nd and 3rd year from the date of the grant respectively. Any fractional residue shall
be settled in the 3rd tranche. The options can be exercised over a period of five years from the date of respective vesting.
Fair value of options granted
The fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the
term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the option.
Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during a period. The measure
of volatility used in the Black-Scholes Model is the annualised standard deviation of the continuously compounded rates
of return on the stock over a period of time.
Expense arising from share-based payment transactions
37 SEGMENTAL REPORTING
The Company is in the business of providing asset management services to the Fund and advisory service to clients.
As such the Company's financial statements are largely reflective of the assets management business and there is no
separate reportable segment. All assets of the Company are domiciled in India.
There is only one customer contributing in excess of 10% of the total revenue of the Company.
40 FINANCIAL INSTRUMENTS
A. Fair value measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an
exit price), regardless of whether that price is directly observable or estimated using a valuation technique. In order
to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation
techniques, as explained below.
The hierarchy used is as follows:
Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Investment in open
ended Mutual Funds are included in Level 1.
Level 2 - Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices). Investment in close ended Mutual Funds and Debt
Securities that are not traded in active market are included in Level 2.
Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole
or in part using a valuation model based on assumptions that are neither supported by prices from observable
current market transactions in the same instrument nor are they based on available market data. Investment in
unlisted Debt Securities, unlisted Equity Instruments, Alternative Investment Funds and Venture Capital Fund are
included in Level 3.
In order to assess Level 3 valuations, the management reviews the performance of the alternative investment funds
on a regular basis by tracking their latest available financial statements/financial information, valuation report of
independent valuers, recent transaction results etc. which are considered in valuation process.
B. Financial Risk Management
Risk management is an integral part of the business practices of the Company. The Company's primary focus is
to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial
performance. The financial risks are managed in accordance with the Company's risk management policy which
has been approved by the Risk Committee of Board of director's. The Company's Risk Committee has overall
responsibility for managing the risk profile of the Company. The purpose of risk management is to identify potential
problems before they occur, so that risk-handling activities may be planned and invoked as needed to manage
adverse impacts on achieving objectives.
The Risk Committee of the Company reviews the development and implementation of the risk management policy of
the Company on periodic basis. The Risk Committee provides guidance on the risk management activities, review the
results of the risk management process and reports to the Board of Directors on the status of the risk management
initiatives.
1 Liquidity Risk:
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. Liquidity risk arises because of
the possibility that the Company might be unable to meet its payment obligations when they fall due as a result of
mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur
when funding needed for illiquid asset positions is not available to the Company on acceptable terms.
To limit this risk, management has adopted a policy of managing assets with liquidity in mind and monitoring future
cash flows and liquidity on a regular basis. The Company has developed internal control processes for managing
liquidity risk.
The Company maintains a portfolio of highly marketable and diverse assets that are assumed to be easily liquidated
in the event of an unforeseen interruption in cash flow. The Company assesses the liquidity position under a variety
of scenarios, giving due consideration to stress factors relating to both the market in general and specifically to
the Company.
The table below analyses the Company's financial liabilities into relevant maturity pattern based on their contractual
maturities for all financial liabilities.
2 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 obligations and arises principally from the Company's trade and other receivables, cash and
cash equivalents, and financial assets measured at amortised cost.
Exposure to credit risk is mitigated through regular monitoring of collections, counterparty's creditworthiness and
diversification in exposure.
Exposure to credit risk
The carrying amount of financial assets represents maximum amount of credit exposure. The maximum exposure
to credit risk is as per the table below, it being total of carrying amount of cash and cash equivalent, trade and other
receivables and financial assets measured at amortised cost.
Expected Credit Loss (ECL) on Financial Assets
The Company continuously monitors all financial assets subject to ECLs. In order to determine whether an instrument
is subject to 12 month ECL (12mECL) or life time ECL (LTECL), the Company assesses whether there has been a
significant increase in credit risk or the asset has become credit impaired since initial recognition. The Company
applies following quantitative and qualitative criteria to assess whether there is significant increase in credit risk or
the asset has been credit impaired:
- Historical trend of collection from counterparty.
- Company's contractual rights with respect to recovery of dues from counterparty.
- Credit rating of counterparty and any relevant information available in public domain.
ECL is a probability weighted estimate of credit losses. It is measured as the present value of cash shortfalls (i.e.
the difference between the cash flows due to the Company in accordance with contract and the cash flows that the
Company expects to receive).
The Company has two types of financial assets that are subject to the expected credit loss:
- Trade & other receivables.
- Cash and cash equivalent.
Trade and Other Receivables
Exposures to customers' outstanding at the end of each reporting period are reviewed by the Company to determine
incurred and expected credit losses. Historical trends of collection from counterparties on timely basis reflects low
level of credit risk. As the Company has a contractual right to such receivables as well as control over preponderant
amount of such funds due from customers, the Company does not estimate any credit risk in relation to such
receivables.
Cash and Cash Equivalents
The Company holds cash and cash equivalents and other bank balances as per note 4. The credit worthiness of such
banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high.
3 Market Risk:
Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument that
may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other
prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.
i. Foreign Currency Risk:
The Company has insignificant amount of foreign currency denominated assets and liabilities. Accordingly,
there is no significant exposure to currency risk.
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 changes in market interest rates.
iii. Price risk:
Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market
prices and related market variables including interest rate for investments in debt oriented mutual funds and
debt securities, whether caused by factors specific to an individual investment, its issuer or the market. The
Company's exposure to price risk arises from investments in equity securities, AIF & units of mutual funds,
which are classified as financial assets at Fair Value Through Profit and Loss and is as follows:
To manage its price risk from investments in equity securities & units of mutual funds, the Company diversifies
its portfolio.
Sensitivity Analysis
The table below sets out the effect on profit or loss and equity due to reasonable possible weakening/
strengthening in prices of 5%:
41 CAPITAL MANAGEMENT
The Company's capital management strategy is to effectively determine, raise and deploy capital so as to create and
maximise value for its shareholders. The same is done through equity. The funding requirements are met through operating
cash flows and other equity. The management monitors the return on capital and the board of directors monitor the level
of dividends paid to shareholders of the Company. The Company may take appropriate steps in order to maintain, or if
necessary adjust, its capital structure.
44 DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES
Trade payables do not include any amount payable to Micro, Small and Medium Enterprises. Under the Micro, Small and Medium
Enterprises Development Act, 2006, (MSMEDA) which came into force from October 2, 2006, certain disclosures are required to be
made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, the
following disclosures are made for the amounts due to the Micro, Small and Medium enterprises, who have registered with the competent
authorities.
46 THE CODE ON SOCIAL SECURITY (2020)
Effective November 21, 2025, the Government of India has consolidated multiple existing labour legislations into a unified
framework comprising four labour Codes collectively referred to as the 'New Labour Codes! The Company has presented its
financial statements for the year ended March 31,2026, after considering the impact of the aforesaid'Labour Codes! based on
an independent actuarial valuation. The Government is in the process of notifying related rules to the New'Labour Codes'and
the impact of these will be evaluated and accounted for in accordance with applicable accounting standards in the period in
which they are notified.
47 OTHER DISCLOSURES
- The Company does not have any borrowings from banks/financial institutions.
- The Company does not have immovable property (other than properties where the Company is the lessee and
the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of
the Company.
- The Company does not have investment property in terms IND AS 40.
- The Company has not revalued any of its Property, Plant and Equipment (including Right of-Use Assets) during
the year.
- The Company has not revalued any of its Intangible assets during the year under review.
- 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 the Companies Act, 2013)
- The details of capital work in progress are given under Note 12.
- The details of Intangible assets under development are given in Note 13
- The details of CSR are given in Note 34
- There are no proceedings have been initiated or pending against the Company for holding any benami property
under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the rules made thereunder.
- The Company does not have any borrowings from banks or financial institutions on the basis of security of
current assets.
- The Company has not been declared a Wilful Defaulter by any bank or financial institution or consortium thereof in
accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
- The Company has not entered into any transaction with companies struck off under section 248 of the Companies
Act 2013.
- The Company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory year.
- There are no ratios which are applicable with regard to new amendments under "Division III of Schedule III" under
"Part I - Balance Sheet - General Instructions for preparation of Balance Sheet'!
- The Company has not entered into any Scheme of Arrangements in terms of sections 230 to 237 of the Companies
Act, 2013.
- No funds have been advanced/loaned/invested (from borrowed funds or from share premium or from any other
sources/ 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 (i) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
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 (i) 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 (ii) provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
- The Company has not traded or invested in Crypto currency or Virtual Currency during year.
- The Company is in compliance with number of layers of companies, as prescribed under clause (87) of Section 2 of
the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
- The Company does not have any transactions which were not recoded in the books of account, but offered as income
during the year in the income tax assessment.
48 Previous figures have been regrouped/reclassified, wherever necessary, to conform to the current year classification.
| 