(i) Provisions (other than for employee benefits), contingent liabilities, contingent assets and commitments
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 are determined by discounting the expected future cash flows
(representing the best estimate of the expenditure required to settle the present obligation at the balance sheet
date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the liability. The unwinding of the discount is recognised as finance cost. Expected future operating
losses are not provided for
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 or a present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the
amount cannot be made
A contingent asset is not recognised but disclosed in the financial statements where an inflow of economic
benefit is probable
Commitments includes the amount of purchase order (net of advance) issued to counterparties for supplying/
development of assets and amounts pertaining to Investments which have been committed but not called for
Provisions, contingent assets, contingent liabilities and commitments are reviewed at each balance sheet date
(j) Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and credit risk exposure :
Trade receivables or any contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 115
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to receive (i.e. all cash shortfalls), discounted at the
original Effective Interest Rate (EIR). ECL impairment loss allowance (or reversal) recognised during the period is
recognised as income/expense in the statement of profit and loss
(k) Employee benefits
(i) Short Term Obligations : Liabilities for wages and salaries, including nonmonetary benefits that are
expected to be settled wholly within 12 months after the end of the period in which the employees render
the related service are recognised in respect of employees' services up to the end of the reporting and are
measured at the amounts expected to be paid when the liabilities are settled
(ii) Retirement benefit costs and termination benefits : Payments to defined contribution retirement benefit
plans are recognised as an expense when employees have rendered service entitling them to the
contributions. The Company has no obligation, other than the contribution payable to the provident fund
The Company provides for gratuity, a defined benefit plan. Incremental liability for gratuity based on
actuarial valuation/management estimates as per the projected unit credit method as at the reporting
date, is charged as expenses in the Statement of Profit and Loss. Actuarial gains and losses arising from
changes in actuarial/management assumptions are recognised in other comprehensive income and shall
not be reclassified to the Statement of Profit and Loss in a subsequent period
(iii) Leave Encashment : The Company provides for the encashment of leave with pay subject to certain rules.
The employees are entitled to accumulate leave subject to certain limits, for future encashment/availment.
The liability is provided based on the actual number of days of unutilised leave at each Balance Sheet date
on the basis of a management estimate/independent actuarial valuation
(l) Leases
At the inception of a contract, assessment is being done by Company whether the contract is, or contains, a
lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset
for a period of time in exchange for consideration. The Company reassesses whether a contract is, or contains,
a lease only if the terms and conditions of the contract are changed
As a Lessor :
A lessor shall classify each of its leases as either an operating lease or a finance lease
As a Lessee :
At the commencement date, a lessee shall recognise a right-of-use ("ROU") asset representing its right to use
the underlying asset and a lease liability representing its obligation to make lease payments. The nature of
expenses would be depreciation charge for ROU assets and interest expense on lease liabilities
The Company in the capacity of lessee has classified each of its leases as short term leases (having a lease
term of 12 months or lower) and has recognised the lease payments as an expense on either a straight-line
basis over the lease term or another systematic basis. The related cash flows are classified as Operating
activities in the Statement of Cash Flows
(m) Earnings Per Share
In determining earnings per share, the Company considers the profit attributable to the owners of the company.
The number of shares used in computing basic earnings per share is the weighted average number of shares
outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and
excluding treasury shares. The number of shares used in computing diluted earnings per share comprises the
weighted average shares considered for deriving basic earnings per share, and also the weighted average number of
additional equity shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted as of the beginning of the year, unless issued at a later date
(n) Cash flow Statements
Cash flows are reported using the indirect method, whereby proflt/(loss) before tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments and
item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated based on the available information
(o) Segment reporting
An operating segment is a component of a Company that engages in business activities from which it may
earn revenue and incur expenses, including revenue and expenses that relates to transactions with any of
the Company's other components, for which discrete financial information is available, and such information
is regularly reviewed by the Company's Chief Operating Decision Maker (CODM) to make key decision on
operations of the segments and assess its performance. The Company operates in one reportable business
segment i.e. "Asset Management and other related service"
(p) Goods and Services Tax
Goods and Services Tax ("GST") is accounted for in the books in the period in which the underlying service
received is accounted and when there is reasonable certainty in availing the credits
(q) Operating Cycle
Based on the nature of activities of the Company and the normal time between acquisition of assets and their
realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the
purpose of classification of its assets and liabilities as current and non-current
(r) use of estimates and judgements
In preparing these financial statements, management has made judgements, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised prospectively
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment in the year ending March 31, 2025 is included in the following notes :
(i) Note 28 Impairment of financial assets (including trade receivable)
(ii) Note 13 Estimation of defined benefit obligations
(iii) Note 34 Estimation for preparation of financials under going concern assumption
(s) Rounding off
All amounts disclosed in the financial statement and notes have been rounded off to the nearest Lakhs, unless
otherwise stated
(t) The 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. For the year ended March 31, 2025,
MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and
leaseback transactions, applicable w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and
based on its evaluation has determined that it does not have any significant impact in its financial statements.
a) Defined-Contribution Plans :
The Company has recognised ' 20.86 Lakhs (Previous year ' 21.98 Lakhs) as expense in the Statement of Profit
and Loss under Company's Contribution to Provident Fund, which is maintained with the office of Regional
Provident Fund Commissioner and ' 7.96 Lakhs (Previous year ' 8.17 Lakhs) as Company's contribution to
Superannuation Fund maintained with Life Insurance Corporation of India
There has been a Supreme Court of India judgement dated February 28, 2019 relating to components of salary
structure that need to be taken into account while computing the contribution to provident fund under the EPF
Act. There are interpretative aspects related to the Judgement including the effective date of application. The
Company has deducted provident fund as per Supreme Court judgement with effect from 01 April 2019. But in
the absence of any notification from PF Authorities, the Company has not deducted additional provident fund
of previous years yet. The Company will continue to assess any further developments in this matter for the
implications on financial statements, if any.
Nature and purpose of reserve :
(i) Security Premium Reserve: Securities premium reserve is used to record the premium on issue of shares. The
reserve can be utilised only for limited purposes in accordance with the provisions of the Companies Act, 2013
(ii) General Reserve : The general reserve is used from time to time to transfer profits from retained earnings
for appropriation purposes as the general reserve is created by a transfer from one component of equity to
another and is not an item of other comprehensive income, items included in the general reserve will not be
reclassified subsequently to profit or loss
(iii) Capital Redemption Reserve : Capital Redemption reserve is created out of profits on account of redemption of
preference share
(iv) Capital Reserve : Capital Reserve is created on account of effect of merger under the Scheme of Amalgamation
(v) Retained earning : Retained earnings are the profits that the Company has earned till date, add/(less) any
transfers from/(to) general reserve and dividends or other distributions paid to shareholders. Retained earnings
includes re-measurement gain/(loss) on defined benefit obligations, net of taxes that will not be reclassified to
Profit and Loss
b) contingent Liabilities :
i) There are no claims against the company, not acknowledged as debt or any liability of contingent nature
ii) The Company has filed an appeal with Income Tax Appellate Tribunal, Mumbai on May 28, 2025 against
disallowance of deduction under Section 80M in respect of AY 2022-23 and AY 2023-24. The additional tax
demand against the said disallowance is ' 34.58 Lakh for AY 2022-23 and refund of Income tax has been
reduced by the department of ' 13.77 Lakh for AY 2023-24
iii) Service tax demand contested by the Company ('IIML Asset Advisors Limited') of ' 1,185.22 Lakh are disputed
with the Service Tax Authority for the period from April 1, 2011 to June 30, 2017 towards classification of
services rendered by the Company and disallowing Export of Service claim. The Company has paid ' 52.63
Lakh under dispute and has filed an appeal against the order
iv) Income tax demand contested by the Company ('IL&FS Asian Infrastructure Managers Limited') for A.Y. 11-12
of ' 3.63 Lakh and refund have been adjusted against the said demand of ' 2.33 Lakh
22) Leases :
The Company has entered into a Business Service Agreement with IL&FS for the use of certain office premises,
furniture, fixtures, and other facilities located at the IL&FS Business Centre. The agreement is effective for a period of
12 months commencing from April 1, 2024, and is renewable upon mutual consent of both parties.
In accordance with the provisions of Ind AS 116 "Leases", this arrangement qualifies as a short-term lease, and
accordingly, the Company has elected to apply the recognition exemption available for short-term leases. As a
result, no right-of-use asset or corresponding lease liability has been recognized in the financial statements for the
year ended March 31, 2025.
The following methods and assumptions were used to estimate the fair values :
The fair values of the units of mutual fund schemes are based on net asset value at the reporting date
The fair value of Venture Capital Funds is valued using discounted cash flow analysis and inputs based on
information about market participants' assumptions and other data that are available. The discount rates used
is based on management estimates.
28) Financial Risk Management :
The Company has exposure to the following risks from financial instruments :
1. Credit risk
2. Liquidity risk
3. Market risk
Risk management framework
The Company has a system of controls in place to create an acceptable balance between the cost of risks occurring
and the cost of managing the risks. Management continually monitors the risk management process to ensure
adherence to appropriate risk limits and controls are set in place.
The Board of Directors oversees how management monitors compliance with the Company's risk management
process and procedures and reviews the adequacy of the risk management framework in relation to the risks faced
by the Company.
credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company has a practice of only dealing with creditworthy counterparties as a means of mitigating the
risk of financial loss from defaults. At the end of the year, the details of the trade receivables were as follows :
interest rate risk
The Company is not exposed to interest rate risk as the Company has fixed interest bearing financial assets
Price risk
The Company has invested in the Mutual Funds and Venture capital funds
Mutual fund and venture capital funds Net Asset Values (NAVs) are impacted by a number of factors like interest
rate risk, credit risk, liquidity risk, market risk in addition to other factors
A movement of 5% in NAV mutual funds on either side can lead to a gain/loss of ' 175.96 Lakhs and ' 238.54 Lakhs on
the overall portfolio as at March 31, 2025 and March 31, 2024 (Restated) respectively
A movement of 5% in NAV Venture Capital Funds on either side can lead to a gain/loss of ' 68.55 Lakhs and ' 56.57
Lakhs on the overall portfolio as at March 31, 2025 and March 31, 2024 (Restated) respectively.
Capital Management
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising
the return to stakeholders through the optimisation of the debt and equity balance. As part of its capital risk
management policies, the Company reviews the capital structure to ensure that it has an appropriate portion of
net debt to equity. Net financial debt is defined as current and non-current financial liabilities less cash and cash
equivalents and short-term investments. The debt equity ratio highlights the ability of a business to repay its debts.
The Net financial debt position of the Company as on March 31, 2025 and March 31, 2024 is negative which signifies
the Company has more than sufficient cash to pay off its liabilities.
29) Segment Reporting :
(a) Description of segments and principal activities
The Company is a domestic private equity fund management company which manages funds on behalf
of leading Indian and International Institutions. The operations of the Company are limited to one segment
viz. Asset Management and other related service. As such, there are no separate reportable business or
geographical segments as per as per the Indian Accounting Standard 108 (Ind AS) on Operating Segment.
(b) Segment Revenue
The amount of revenue from external customers broken down by location of the customers is shown in the table
below :
31) In accordance with the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, the Company has
maintained its books of account using accounting software that incorporates a feature of recording an audit
trail (edit log) of each and every transaction. The audit trail functionality has been operated consistently
throughout the financial year for all transactions recorded in the software and has also been enabled at
the database level to capture direct modifications impacting the books of account. The audit trail has been
maintained without any tampering and preserved by the Company in compliance with the applicable statutory
requirements for record retention.
32) The Ministry of Corporate Affairs (MCA), Government of India, has vide its letter dated October 1, 2018 initiated
investigation by Serious Fraud Investigation Office (SFIO) against IL&FS, the Holding Company and its subsidiaries
(including the Company) under Section 212(1) of the Companies Act, 2013. On December 3, 2018, MCA on the
directions of the National Company Law Tribunal, Mumbai (NCLT) has impleaded various Group Companies of IL&FS
(which includes the Company) as Respondents to the Petition filed by them on October 1, 2018. The Company has
received the "Summary of Charges" sent by the Ministry of Corporate Affairs through IL&FS, based on which the
required action has been completed.
33) The term of most of the existing funds being managed/advised by the Company has already been over. Other
funds being managed/advised by the company are approaching the end of their term in the near future which
has resulted in a significant reduction in the Company's fee revenue. Management expects that its future income
from existing funds being managed/advised together with liquid assets held by the Company as at March 31,
2025 will be adequately sufficient to meet the Company's existing and future obligations arising over the next 12
months. Management believes that use of the going concern assumption for preparation of these financial results is
appropriate
The IL&FS Board has been working on a resolution plan, with a view to enable value preservation for stakeholders
of IL&FS Group. The resolution plan, inter alia, involves sale of assets/businesses/companies owned by IL&FS. In
this regard, the IL&FS Board has on December 21, 2023 invited a public Expression of Interest (Eol) for sale of its
entire stake in the Company. In response to the EOI, few prospective bidders have shown interest and the process is
underway
34) The Board of Directors, in their meeting held on May 29, 2025, have proposed a final dividend of ' 0.28 per equity
share amounting to ' 879.29 Lakhs for FY 2024-25. As the profits for the year are inadequate, the dividend will be
paid out of accumulated free reserves in accordance with Section 123(1) of the Companies Act 2013 and Rule 3
of the Companies (Declaration and Payment of Dividend) Rules 2014. The proposal is subject to the approval of
shareholders at the Annual General Meeting.
37) The disclosure requirements to be given pursuant to Gazette notification for Amendments in Schedule III to
Companies Act, 2013 dated March 24, 2021 effective from April 1, 2021 pertaining to the following matters are not
applicable to the Company :
(a) Disclosure on Revaluation of property, plant and equipment and intangible assets from Registered Valuers
(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder
(c) Registration of charges or satisfaction with Registrar of Companies
(d) Transactions with Crypto Currency or Virtual Currency
(e) The company has not been declared a willful defaulter by any Bank or financial institution or other lender
(f) As per clause (87) of section 2 and section 186(1) of the Companies Act, 2013 and Rules made there under, the
company is in compliance with the number of layers as permitted under the said provisions
(g) There are no transactions recorded in books of accounts reflecting surrender/disclosure of income in the
assessment under Income Tax Act, 1961
(h) Disclosures relating to Borrowings obtained on the basis of security of current assets and utilisation thereof
38) 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 :
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
39) The Company has not received any fund 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 :
(a) 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
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
40) The National Company Law Tribunal, Mumbai has passed an Order dated July 26, 2024 approving the Scheme
of Amalgamation ("the Scheme") of its two wholly owned subsidiaries IL&FS Asian Infrastructure Managers
Limited and IIML Asset Advisors Limited with the Company, with appointed date as April 1, 2022. Upon completion
of the formalities on August 23, 2024 the Scheme has become effective from the Appointed Date i.e. April 1, 2022.
Consequently, the above-mentioned wholly owned subsidiaries of the Company stand dissolved without winding up
Since the amalgamated entities are under common control, the accounting of the said amalgamation been done
applying Pooling of Interest method as prescribed in Appendix C of Ind AS 103 "Business Combinations". While applying
Pooling of Interest method, the Company has recorded all assets, liabilities and reserves attributable to the wholly
owned subsidiaries at their carrying values as appearing in the consolidated financial statements of the Company.
Consequently, the previous year/periods figures have been restated considering that the amalgamation has taken
place from the beginning of the preceding period i.e. April 1, 2022 as required under Appendix C of Ind AS 103
The financial statements of the amalgamated entities for the year ended March 31, 2024 have been audited on a
standalone basis
Consequent to the above, the standalone financial statements for the year ended March 31, 2024 have been restated
from the financial statements to give the impact of the Scheme. The impact of the Scheme on Standalone profit and
loss and balance sheet are as follows :
41) Previous year numbers are regrouped/reclassified wherever necessary
In terms of our report attached of even date For and on behalf of the Board of Directors
For KKC & Associates LLP Chitranjan Singh Kahlon
Chartered Accountants Chairman
(formerly Khimji Kunverji & Co LLP) DIN : 02823501
Firm Registration No. 105146W/W100621
Bharat Jain lubna usman Harish agrawal
Partner Executive Director and Company Secretary
Membership No. 100583 CEO & CFO Membership No. : A12549
DIN : 08299976
Place : Mumbai Place : Mumbai
Date : May 29, 2025 Date : May 29, 2025
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