(x) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognised if, as a result of a past event, the company has a present legal or constructive obligation that
can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions for onerous contracts are recognised when the expected benefits to be derived by the Company from a contract
are lower than the unavoidable costs of meeting the future obligations under the contract
A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably
not require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable
certainty. When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no
provision or disclosure is made.
Contingent assets are neither recognised nor disclosed in financial statements.
(y) Goods and services tax input credit
Goods and services tax Input credit asset is recognised in the books of accounts in the period In which the supply of goods
or service received is recognised and when there is no uncertainty in availing/utillsing the credits.
Expenses and assets are recognised net of the goods and services tax paid, except when the tax incurred on a purchase of
assets or services is not recoverable from the taxation authority, in which case, the tax paid is recognised as part of the cost
of acquisition of the asset or charged to revenue seperately, as applicable. The net amount of tax recoverable from, or
payable to, the taxation authority is included as part of receivables or payables in the balance sheet.
(z) Cash flow Statement
Cash flows are reported under the 'Indirect method' as set out in Ind AS 7 on 'Statement of Cash Flows, whereby net profit
after tax is adjusted for the effects of transactions of non-cash nature, tax and any deferrals or accruals of past or future
cash receipts or payments. The cash flows are prepared for the operating, investing and financing activities of the
Company.
Nature and purpose of other equity:
(a) Securities premium reserve
The amount received in excess of face value of the equity shares is recognised in Securities premium reserve. In case of equity
settled share based payment transactions, the difference between fair value on grant date and nominal value of share is
accounted as securities premium reserve The reserve can be utilised only for limited purposes such as issuance of bonus
shares in accordance with the provisions of the Companies Act, 2013.
(b) General reserve
Under the erstwhile Companies Act, 1956, general reserve was created through an annual transfer of net income at a specified
percentage in accordance with applicable regulations. Consequent to introduction of Companies Act, 2013, the requirement
to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount
previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies
Act, 2013.
(c) Statutory reserve (Pursuant to Section 45-IC of The RBI Act, 1934)
Statutory reserve represents reserve fund created pursuant to Section 45-IC of the RBI Act, 1934 through Transfer of specified
percentage of net profit every year before any dividend is declared. The reserve fund can be utilised only for limited purposes
as specified by RBI from time to time and every such utilisation shall be reported to the RBI within specified period of time
from the date of such utilisation.
The conditions and restrictions for distribution attached to statutory reserves as specified in Section 45-IC(l) in The Reserve
Bank of India Act, 1934:
(1) Fvery non banking financial company (NBFC) shall create a reserve fund and transfer therein a sum not less than twenty
per cent of its net profit every year as disclosed in the profit and loss account and before any dividend is declared.
(2) No appropriation of any sum from the reserve fund shall be made by the NBFC except for the purpose as may be specified
by the RBI from time to time and every such appropriation shall be reported to the RBI within twenty one days from the date of
such withdrawal:
(3) Notwithstanding anything contained in sub-section (1). the Central Government may, on the recommendation of the RBI
and having regard to the adequacy of the paid-up capital and reserves of a NBFC in relation to its deposit liabilities, declare by
order in writing that the provisions of sub section (1) shall not be applicable to the NBFC for such period as may be specified in
the order:
(d) Retained earnings
Retained earnings or accumulated surplus represents total of all profits retained since company’s inception. Retained
earnings are credited with current year profits, reduced by losses, if any, dividend payouts, transfers to General reserve or any
such other appropriations to specific reserves.
(e) Share based payment reserve
Share based payment reserve represents amount of reserve created by recognition of compensation cost at grant date fair
value on stock options vested but not exercised by employees and unvested stock options in the Statement of profit and loss in
respect of equity-settled share options granted to the eligible employees of the Company in pursuance of the Employee Stock
Option Plan.
31 Contingent Liabilities (to the extent not provided for)
The Company does not have any claim to be acknowledged as debts as on 31 March 2025 (as at 31 March 202*5 Rs. Nil)
32 Capital Commitments
The Company has Capital Commitments as on 31 March 2025 of Rs 248.27 lakhs (as at 31 March 2024 Rs. Nil).
33 Leases
The Company's lease asset classes primarily consist of leases of buildings or part thereof taken on lease for office
and other premises.
fhe Company uses following practical expedient, when applying Ind AS 116 to leases :
(1) The Company didn't recognised Right of Use and Lease liabilities for lease for which the lease terms ends
within 12 months on the date of initial transition and low value assets.
(2) The Company excluded initial direct cost from measurement of the Right of Use assets at the date of initial
application.
(3) The Company uses hindsight in determining the lease term where the contract contains options to extend or
terminate the lease.
35 EMPLOYEE 8ENEFITS
i) Defined contribution plan :
The Company makes Provident fund contributions, which are defined contribution plans for qualifying
employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll
costs to fund the benefits. The Company have recognised Rs. 40.48 lakhs (31 March 2024: Rs. 4.74 lakhs) for
Provident fund contributions in the Statement of profit and loss. The contributions payable to the plan by he
Company is at rates specified in the rules of the scheme.
ii) Defined benefit gratuity plan:
In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan
("The Gratuity Plan") covering eligible employees. I he Gratuity Plan provides for a lump sum payment to
vested employees on retirement (subject to completion of five years of continuous employment), death,
incapacitation or termination of employment that are based on last drawn salary and tenure of
employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the
reporting date.
Iv) Employee share based payment plans:
During the year ended 31 March, 2022, the Company implemented Finkurve Employee Stock Option Plan 2018 C2018
Plan"). The plan was approved by the shareholders in the Company’s 34th AGM held on 29 September, 2018. The 2018 Plan
have resulted into creation of ESOP pool of 50 lakhs options resulting into 50 lakhs equity shares of Rs 1 each. Further, the
stock options to any single employee under the Plan shall not exceed 1% of fully diluted equity Shares of the Company
during the tenure of the Plan, subject to compliance wit h Applicable Law.
The options granted under 2018 Plan have a maximum vesting period of 4 years from the end of grant date and is
excercisable within 5 years of last vesting date. The options granted are based on the performance of the employees during
the year of the grant and their continuing to remain in service. The process for determining the eligibility of employees for
the grant of stock options under the 2018 Plan shall be determined by the Nomination and Remuneration Committee
(Administrator of the 2018 Plan) in consultation with Board and based on employee's grade, performance rating and such
other criteria as may be considered appropriate. The employees shall be entitled to receive one equity share of the
Company on exercise of each stock option, subject to performance of the employees and continuation of employment
over the vesting period and other terms of the plan. The Board of Directors or the Nomination and Remuneration
Committee shall decide the Exercise Price and the discount rate at the time of granting the Options on the basis of per share
Market rate of the shares of the Company as defined under 2018 Plan.
During the year, the Company has recognised an expense of Rs. 31.64 lakhs (31 March, 2024 - Rs. 14.58 lakhs}
(*) Issue price includes the strike price, i.e. amount to be paid by employee and weighted average call price, i.e. the cost recognised
and to be recognised in the Statement of Profit and Loss over the vesting period calculated under Black Scholes Model.
36. Segment Information
The Company primarily operates in Financing and other activities. Further, all activities are carried out within India. Based
on the ‘management approach' as defined in Ind AS 108, the Chief Operating Decision Maker (CODM), there are no other
operating segments which are identified as such and need to be reported.
37. Maturity analysis of assets and liabilities
The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered
or settled:
b) Fair value hierarchy and method of valuation:
The Company categorises assets and liabilities measured at fair value into one of three levels depending on the ability to
observe inputs employed in their measurement which are described as follows:
Level 1 • Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs are inputs that are observable, either directly or indirectly, other than quoted prices included within level
1 for the asset or liability.
Level 3 - Inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related
market data or the Company's assumptions about pricing by market participants. The management of the Company
assessed that loans given, cash and cash equivalents, trade receivables, trade payables, other current financial liabilities,
current loans and other financial assets approximate their carrying amounts largely due to the short-term maturities of
these instruments.
(d) Significant unobservable input(s) for Level 3 hierarchy
Thp fair value of financial instruments that are not traded in active market is determined by using valuation techniques. The
Company uses judgement to select from variety of methods and make assumptions that are mainly based on market conditions
existing at the end of each reporting period Significant inputs considred in valution are Terminal Growth rate, Weighted average
cost of capital and computation of Net asset value in case of certain investments.
Relationship of unobservable inputs to fair value and sensitivity
Increase or decrease in multiple will result in increase or decrease in valuation.
39 Financial risk management objectives and policies
The Company is exposed to market risk, credit risk and liquidity risk The Company's senior management oversees the management of
these risks. The Company’s Board of Directors has appropriate financial risk governance framework for the Company. The Board of
Directors govern the Company's financial risk activities by appropriate policies and procedure and that financial risks are Identified,
measured and managed in accordance with the company's policies and risk objectives. Tne Board of Directors reviews and agrees policies
for managing each risk, which are summarised as below.
Market risk
Market risk Is the risk that the fair value of future cash flows of a financial Instrument will fluctuate because of changes In market prices
Market risk comprises 3 types of risk: interest rate risk and currency risk Financial instruments affected by market risk includes loans,
Investment in units of mutual fund, and borrowings.
Interest rate risk
Interest rate risk is the nsk that the fair value of future cash flows of a financial Instrument will fluctuate because of changes in market
interest rates. The Company is exposed to interest rate risk primarily from borrowings. The Company monitors the changes in interest
rates and actively regarding finances its debt obligations and/or re-evaluate the investment position to achieve an optimal interest rate
exposure.
The Company's borrosvings are majorly is at fixed interest rates and accordingly, the company Is not exposed to any significant Interest
risk.
Foreign currency risk and sensitivity
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. The company does not have any foreign currency exposure, accordingly it Is not exposed to the foreign currency risks.
Investment price risk
The Company's exposure in Investment in equity share & mutual funds - Quoted as at 31 March 2025 is INR 0.97 lakhs (31 March 2024 is
INR1 05 lakhs) and asa result the impact of any price change will not have a material effect on the profit or loss of the Company.
Credit Risk
The Company is exposed to credit risk from their operating activities {primarily Loans given), The Company manage the credit risk by
continuously monitoring the creditworthiness of customers. The Company has used a practical expedient by computing the expected
credit loss allowance for external trade receivables based on a provision matrix. The expected credit loss allowance is based on the
ageing of the days the receivables are due and the rates as given in the provision matrix.
Expected credit losson loans given is Rs. 235.47 lakhs (31 March 2024 -Rs 194.32 lakhs).
Liquidity Risk
Liquidity risk refers to insufficiency of funds to meet the financial obligations. The Company manages liquidity risk by borrowings, fund
infusion by issue of equity shares/ preference shares, continuously monitoring forecast and actual cash flows, and by assessing the
maturity profiles of financial assets and liabilities.
The following tables detail the company's remaining contractual maturity for its non-derivative financial liabilities with agreed
repayment periods. 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. The tables include principal cash flows. The contractual maturity 1$ based on the earliest
date on which the company may be required to pay.
40 Capital management
Risk management
The Company's objectives when managing capital are to
• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for
other stakeholders, and
• maintain an optimal capital structure to reduce the cost of capital.
41 Transactions in the nature of change In ownership in other entities
The Company had incorporated a Wholly Owned Subsidiary {WOS), M/s. Arvog Enterprises Limited on 20th October 2023, for providing
"Lender Service Provider" (LSP) services. However, due to regulatory and compliance constraints, the said WOS could not start its
business operations and therefore the Company sold all of the shares of the said WOS worth of Rs. 1,00,000/* (Rupees One Lac Only) at
cost to the related parties (refer note no 34). Thus, the said WOS ceased to be the WOS effective from 13th March, 2024 and. as the WOS
did not started its business activities during the subsidiary period, the consolidated financial statements is not applicable.
42 Recent accounting and other pronouncements :
A) New Standards issued or amendments to the existing standard but not yet effective:
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time
During the year ended March 31. 202S, MCA has notified Ind AS 117 Insurance Contracts and amendments to Ind As 116 - Leases,
relating to sale and lease back transactions, applicable from April 1, 2024. The Company has assessed that there is no impact on its
financial statements.
On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Fffects of Changes in Foreign Fxchange Rates. These amendments aim to
provide clearer guidance on assessing currency exchangeability and estimating exchange rates when currencies are not readily
exchangeable. The amendments are effective for annual periods beginning on or after April 1, 2025. The Company has assessed that
there is no impact on its financial statements.
B) other recent pronouncements:
On October 19. 2023, the Reserve Bank of India (RBI) had issued Master Direction • Reserve Bank of India (Non-Banking Financial
Company Scale Based Regulation) Directions, 2023. Accordingly, the Company, considering such guldlines have adopted required
changes in process, policies and disclosures
45 Note on Covid
The significant increase in economic activities post easing of lockdown bv the state governments due to Covid-19 had resulted in
improvement in business operations of the Company. The Company’s management is continuously monitoring the situation and the
economic factors affecting the operations of the Company.
46 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013:
I) Registration of charges or satisfaction with Registrar of Companies (ROC)
All charges or satisfaction are registered with ROC within the statutory period for the financial years ended 31 March 202S and 31 March
2024. No charges or satisfactions are yet to be registered with ROC beyond the statutory period.
li) Event after reporting date
There have been no events after the reporting date.
iii) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under dause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017 for the financial years ended 31 March 2025 and 31 March 2024.
iv) Utilisation of Borrowed funds and share premium
The Company, as part of its normal business, grants loans and advances, makes Investment and obtains borrowings from bank and other
entities. These transactions are part of Company's normal non-banking finance business, which is conducted ensuring adherence to all
regulatory requirements
No funds have been advanced or loaned or invested (either from boi rowed funds or share premium or any other sources or kind of funds)
by the Company to or in any other persons or entities, including foreign entities (’ÝIntermediaries") with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate
Beneficiaries) The Company has also not received any fund from any parties (Funding Party) with the understanding that the Company
shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party ("Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
v) Compliance with approved Scheme(s) of Arrangements
There is no any scheme of Arrangement or Amalgamation Initiated or approved by the Board of Directors and / or Shareholders of the
Company or competent authority during the year ended 31 March 2025 and 31 March 2024 or in earlier years.
vl) Undisclosed income
There are no transactions which have not been recorded in the books of accounts.
vii) Title deeds of Immovable Properties not held in name of the Company
The title deeds of the immovable properties possess by the Company are held in the name of the Company (other than properties where
the Company is the lessee and the lease agreements are duly executed in favour of the lessee).
vi) Institutional set-up for liquidity risk management
The ultimate responsibility for liquidity risk management rests with the Board of directors, which has established Asset and Liability
Management Committee (ALCO) for the management of the Company's short, medium and long- term funding and liquidity
management requirements. The ALCO meets regularly to review the liquidity position based on future cash flows. The Company
manages liquidity risk by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets
and liabilities. The Company also maintains adequate liquid assets, banking facilities and reserve borrowing facilities to hedge against
unexpected requirements.
In order to achive above, the Company also has an Investment Policy to ensure that safety, liquidity and return on the surplus funds are
given appropriate weightages and are placed in that order of priority. The Investment Committee frames the strategy, sets the
operational parameters and framework within the limits as may be set by the Board for Investment The Committee approaches the
Board for revising the limit as and when required. The policy Is also reviewed periodically in the background of developments In the
money markets and the Investment Committee depending on the external factors proactively to reduce the risk In the Investments. A
well-defined Iront and back office mechanism is in place to ensure a system of checks and balances.
Definition of terms as used in the table above:
11 Significant counterparty is defined 3s 3 single counterparty or group of connected or affiliated counterparties accounting in
3S6reg3te for more than 1% of the NBFC-NDSI's, N8FC-D's total liabilities and 10% for other non-deposit taking NBFCs as defined in
RBI Circular RBI/2019-20/88 DOR.NBFC (PD) CC .No. 102/03.10.001/2019-20 dated 4 November 2019 on Liquidity Risk Management
Framework for Non-Banking Financial Companies and Core Investment Companies.
2) Significant instrument/product is defined as a single instrument/product of group of similar instruments/products which in
aggregate amount to more than 1% of the NBFC-NDSI's, N8FC-DS total liabilities and 10% for other non-deposit taking NBFCs. as
defined in RBI Circular RBI/2019-20/88 DOR.NBFC (PD) CC No.102/03.10 001/2019-20 dated 4 November 2019 on liquidity Risk
Management Framework lor Non-Banking Financial Companies and Core Investment Companies.
3) Total Liabilities has been computed as sum of all liabilities (Total of Balance Sheet less Total Equity).
4| Public funds include funds raised either directly or indirectly through public deposits, inter-corporatc deposits, bank finance and all
funds received from outside sources such as funds raised by issue of Commercial Papers, debentures etc but excludes funds raised
by issue of instruments compulsorily convertible into equity shares within a period not exceeding 5 years from the date of issue, as
defined in Master Direction - Non-Banking Financial Company - Non Systermcally Important Non-Deposit taking Company (Reserve
Bank) Direction, 2016.
5) Other short-term liabilities include all short-term borrowings other than Commercial papers (if any) and Nonconvertible debentures
with original maturity less than one year (if any).
6) The amount stated In this disclosure is based on the audited financial statements.
Further Guidelines prescribed by Reserve Bank of India vide above circular on Maintenance of Liquidity Coverage Ratio (ICR) Is
applicable for all non deposit taking NBFCs with asset size of Rs. 5,000 crore and above, and all deposit taking NBFCs irrespective of
their asset size. As the Company is Non-Systematically Important, Non-Deposit Accepting NBFC, such guidlines are not applicable to
Company.
53 Unhedged foreign currency exposure
The unhedged foreign currency exposure of the company is Nil as at the end of 31 March 2025 and 31 March 2024.
54 Disclosure of Penalties imposed by RBI and other regulators
Details of Penalties levied by various regulators:
During the year, in two of the board meetings of the Company held, though the quorum of meeting was maintained, however the
requisite quorum of independent director was not there and hence, the Bombay Stock Exchange Limited (BSE Limited) have levied a
penalty of Rs. 20,000/- on the Company. No any other penalties have been levied by any regulator on the Company for the year ended
31 March 2025 and 31 March 2024.
55 The Company is yet to receive balance confirmations in respect of certain financial assets and financial liabilities The Management does
not expect any material difference affecting the current year's financial statements due to the same.
56 The financial stotements were approved for issue by the Board of Directors on 29th May 2025.
57 The previous year’s figures have been recast / regrouped / rearranged wherever considered necessary to conform to the current year
presentation
As per our report of even date attached
For P. D. Saraf & Co For and on behalf of the Board of Directors of
Chartered Accountants Finkurve Financial Services Limited
Firm Registration No: 109241W CIN : L65990MH1984PIC032403
Madhusudan Saraf Ketan Kothari Narendraialn
Partner Director Director
Membership No.: 41747 DIN. 00230725 DIN: 08788557
AakashJain Amit Shroff Sunny Parekh
Place: Mumbai Chief Financial Chief Executive Company Secretary
Date: 29th May 2025 Officer Officer 'M.No ACS32611
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