probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount of the
obligation cannot be made.
Contingent assets are neither recognised nor disclosed except
when realisation of income is virtually certain, related asset is
disclosed.
(iii) Property, plant and equipment
and initial measurement
Property, plant and equipment are stated at their cost of
acquisition. The cost comprises purchase price, borrowing
cost if capitalisation criteria are met and directly attributable
cost of bringing the asset to its working condition for the
intended use. Any trade discount and rebates are deducted in
arriving at the purchase price.
Subsequent costs are included in the asset's carrying amount
or recognised as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the
item will flow to the Company and the cost of the item can be
measured reliably. All other repair and maintenance costs are
recognised in statement of profit and loss.
Subsequent measurement (depreciation method, useful
lives and residual value)
Property, plant and equipment are subsequently measured
at cost less accumulated depreciation and impairment losses.
Depreciation on property, plant and equipment is provided on
the written-down method over the useful life of the assets as
prescribed under Part 'C' of Schedule II of the Companies Act,
2013.
(ii) Provisions, contingent liabilities and contingent assets
Provisions are recognised only when there is a present
obligation, as a result of past events, and when a reliable
estimate of the amount of obligation can be made at the
reporting date. These estimates are reviewed at each reporting
date and adjusted to reflect the current best estimates.
Provisions are discounted to their present values, where the
time value of money is material.
Contingent liability is disclosed for:
• Possible obligations which will be confirmed only by future
events not wholly within the control of the Company or
• Present obligations arising from past events where it is not
Depreciation is calculated on pro rata basis from the date on which
the asset is ready for use or till the date the asset is sold or
disposed.
The residual values, useful lives and method of depreciation are
reviewed at the end of each financial year.
De-recognition
An item of property, plant and equipment and any significant part
initially recognised is de-recognised upon disposal or when
no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the
asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is recognised
in the statement of profit and loss, when the asset is de¬
recognised.
Capital work-in-progress
Capital work-in-progress are carried at cost, comprising direct cost
and related incidental expenses to acquire property, plant and
equipment. Assets which are not ready for intended use are
also shown under capital work-in-progress.
(iv) Intangible assets
Recognition and initial measurement
Intangible assets are stated at their cost of acquisition. The
cost comprises purchase price including license fees paid,
import duties and other taxes (other than those subsequently
recoverable from taxation authorities), borrowing cost if
capitalisation criteria are met and directly attributable cost of
bringing the asset to its working condition for the intended
use.
Subsequent measurement (amortisation method, useful
lives and residual value)
Intangible assets are amortised over a period of 3 years
from the date when the assets are available for use. The
estimated useful life (amortisation period) of the intangible
assets is arrived basis the expected pattern of consumption of
economic benefits and is reviewed at the end of each financial
year and the amortisation period is revised to reflect the
changed pattern, if any.
Investment Property
Property that is held to earn rentals and for capital
appreciation. Investment property is measured initially at its
cost, including related transaction costs and where applicable
borrowing costs. Subsequent expenditure is capitalised to the
asset's carrying amount only when it is probable that future
economic benefits associated with the expenditure will flow
to the group and the cost of the item can be measured reliably.
All other repairs and maintenance costs are expensed when
incurred. When part of an investment property is replaced,
the carrying amount of the replaced part is derecognized.
Subsequent to initial recognition, investment properties are
measured in accordance with Ind AS 16's requirements for
cost model.
(v) Revenue from Operations
The company recognizes revenue in accordance with
INDAS-115, revenue is to be recognized upon transfer of
control of promised services to customers in an amount that
reflects the consideration which the company expects to
receive in exchange for those services.
Revenue from fixed price, fixed time frame contracts where
the performance obligation are satisfied over time and when
there is no uncertainty as to measurement or collectivity of
consideration is recognized as per percentage of completion
method.
However, only for the purpose of matching expense with
revenue, in some cases we provide consultancy services for
preparing Detailed Project Report (DPR) -
• on a continuous basis to the authority,
• the duration of such services to be provided under the
contract is more than three months and
• the same is against periodic payment of consultancy
fee
Hence income on such incomplete DPR projects is recognized
on percentage of completion method as unbilled revenue.
Revenue includes the following:
i) Brokerage fee income
Revenue from contract with customer is recognized point
in time when performance obligation is satisfied (when the
trade is executed i.e., trade date). These include brokerage
fees which is charged per transaction executed on behalf of
the clients.
ii) Fees & Commission Income
This includes:
a) Income from investment banking activities and other
fees.
Income from investment banking activities and other fees
is recognized as and when such services are completed /
performed and as per terms of agreement with the client
(i.e. when the performance obligation is completed).
b) Income from depository operations.
Income from depository operations is accounted when the
performance obligation is completed.
c) Income from wealth management services
Commission (net of taxes and other statutory charges)
income from distribution of financial products is
recognized based on mobilization and intimation received
from clients/ intermediaries or over the period of service
after deducting claw back as per the agreed terms.
iii) Interest Income
Under Ind AS 109 interest income is recognized by applying
the Effective Interest Rate (EIR) to the gross carrying amount
of financial assets other than credit-impaired assets and
financial assets classified as measured at FVTPL.
The EIR in case of a financial asset is computed
a. As the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to
the gross carrying amount of a financial asset.
b. By considering all the contractual terms of the financial
instrument in estimating the cash flows.
c. Including all fees received between parties to the contract
that are an integral part of the effective interest rate,
transaction costs, and all other premiums or discounts.
Any subsequent changes in the estimation of the future cash
flows is recognized in the statement of profit and loss with
the corresponding adjustment to the carrying amount of the
assets.
Interest income on credit impaired assets is recognized by
applying the effective interest rate to the net amortized cost
(net of provision) of the financial asset.
iv) Dividend Income
Dividend income is recognized
a. When the right to receive the payment is established,
b. it is probable that the economic benefits associated with
the dividend will flow to the Company and
c. the amount of the dividend can be measured reliably
v) Net gain on Fair value changes
Any differences between the fair values of financial assets
(including investments, derivatives and stock in trade)
classified as fair value through the profit or loss ("FVTPL")
(refer Note 34), held by the Company on the balance sheet date
is recognized as an unrealized gain / loss. In cases there is a
net gain in the aggregate, the same is recognized in "Net gains
on fair value changes" under Revenue from operations and if
there is a net loss the same is disclosed under "Expenses" in
the statement of profit and loss.
Similarly, any realized gain or loss on sale of financial
instruments measured at FVTPL is recognized in net gain /
loss on fair value changes.
However, net gain / loss on de-recognition of financial
instruments classified as amortized cost is presented
separately under the respective head in the statement of profit
and loss.
vi) Trading shares & Securities:
Revenue on account of trading in shares is recognised on the
basis of each trade executed at the stock exchange during the
financial year.
In respect of non-delivery based transactions such as
derivatives and intraday, the profit and loss is accounted for at
the completion of each settlement, however in case of an open
settlement the net result of transactions which are squared up
on FIFO basis is recognised as profit/loss in the account.
vii) Other Revenue
In respect of other heads of income, the Company follows the
practice of recognising income on accrual basis.
(vi) Expenses
Expenses are recognised on accrual basis and provisions are
made for all known losses and liabilities. Expenses incurred
on behalf of other companies, in India, for sharing personnel,
common services and facilities like premises, telephones, etc.
are allocated to them at cost and reduced from respective
expenses.
Similarly, expenses allocation received from other companies
is included within respective expense classifications.
(vii) Borrowing costs
Borrowing costs that are directly attributable to the
acquisition and/or construction of a qualifying asset, till the
time such qualifying assets become ready for its intended
use, are capitalised. Borrowing cots consists of interest and
other cost that the Company incurred in connection with the
borrowing of funds. A qualifying asset is one that necessarily
takes a substantial period of time to get ready for its intended
use. All other borrowing costs are charged to the Statement
of Profit and Loss as incurred basis the effective interest rate
method.
(viii) Taxation
Tax expense recognised in Statement of Profit and Loss
comprises the sum of deferred tax and current tax except to
the extent it recognised in other comprehensive income or
directly in equity.
Current tax comprises the tax payable or receivable on taxable
income or loss for the year and any adjustment to the tax
payable or receivable in respect of previous years. Current
tax is computed in accordance with relevant tax regulations.
The amount of current tax payable or receivable is the best
estimate of the tax amount expected to be paid or received
after considering uncertainty related to income taxes, if
any. Current tax relating to items recognised outside profit
or loss is recognised outside profit or loss (either in other
comprehensive income or in equity).
Current tax assets and liabilities are offset only if there is a
legally enforceable right to set off the recognised amounts,
and it is intended to realise the asset and settle the liability on
a net basis or simultaneously.
Minimum alternate tax ('MAT') credit entitlement is
recognised as an asset only when and to the extent there is
convincing evidence that normal income tax will be paid
during the specified period. In the year in which MAT credit
becomes eligible to be recognised as an asset, the said asset
is created by way of a credit to the Statement of Profit and
Loss and shown as MAT credit entitlement. This is reviewed
at each balance sheet date and the carrying amount of MAT
credit entitlement is written down to the extent it is not
reasonably certain that normal income tax will be paid during
the specified period.
Deferred tax is recognised in respect of temporary differences
between carrying amount of assets and liabilities for financial
reporting purposes and corresponding amount used for
taxation purposes. Deferred tax assets are recognised on
unused tax loss, unused tax credits and deductible temporary
differences to the extent it is probable that the future taxable
profits will be available against which they can be used.
This is assessed based on the Company's forecast of future
operating results, adjusted for significant non-taxable income
and expenses and specific limits on the use of any unused
tax loss. Unrecognised deferred tax assets are re-assessed at
each reporting date and are recognised to the extent that it
has become probable that future taxable profits will allow the
deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at
the reporting date. The measurement of deferred tax reflects
the tax consequences that would follow from the manner in
which the Company expects, at the reporting date to recover
or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if there is a
legally enforceable right to set off the recognised amounts,
and it is intended to realise the asset and settle the liability
on a net basis or simultaneously. Deferred tax relating to
items recognised outside statement of profit and loss is
recognised outside statement of profit or loss (either in other
comprehensive income or in equity).
(ix) Employee benefits
Short-term employee benefits
Short-term employee benefits including salaries, short term
compensated absences (such as a paid annual leave) where
the absences are expected to occur within twelve months
after the end of the period in which the employees render
the related service, profit sharing and bonuses payable
within twelve months after the end of the period in which
the employees render the related services and non-monetary
benefits for current employees are estimated and measured
on an undiscounted basis.
Post-employment benefit plans are classified into defined
benefits plans and defined contribution plans as under:
Defined contribution plans
The Company has a defined contribution plans namely
provident fund, pension fund and employees state insurance
scheme. The contribution made by the Company in respect of
these plans are charged to the Statement of Profit and Loss.
Defined benefit plans
The Company has an obligation towards gratuity, a defined
benefit retirement plan covering eligible employees. Under
the defined benefit plans, the amount that an employee will
receive on retirement is defined by reference to the employee's
length of service and last drawn salary. The legal obligation
for any benefits remains with the Company, even if plan assets
for funding the defined benefit plan have been set aside. The
liability recognised in the statement of financial position
for defined benefit plans is the present value of the Defined
Benefit Obligation (DBO) at the reporting date less the fair
value of plan assets. Management estimates the DBO annually
with the assistance of independent actuaries. Actuarial gains/
losses resulting from re-measurements of the liability/asset
are included in other comprehensive income.
Other long-term employee benefits
The Company also provides the benefit of compensated
absences to its employees which are in the nature of long-term
employee benefit plans. Liability in respect of compensated
absences becoming due and expected to avail after one year
from the Balance Sheet date is estimated in the basis of an
actuarial valuation performed by an independent actuary
using the projected unit credit method as on the reporting
date. Actuarial gains and losses arising from experience and
changes in actuarial assumptions are charged to Statement of
Profit and Loss in the year in which such gains or losses are
determined.
(x) Leases
Company as a lessee
The Company's lease asset classes primarily consist of leases
for land and buildings. The Company assesses whether a
contract contains a lease, at inception of a contract. 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. To assess whether a contract
conveys the right to control the use of an identified asset, the
Company assesses whether:
(i) the contract involves the use of an identified asset
(ii) the Company has substantially all the economic benefits
from use of the asset through the period of the lease and
(iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company
recognises a right-of-use (ROU) asset and a corresponding
lease liability for all lease arrangements in which it is a lessee,
except for leases with a term of 12 months or less (short-term
leases) and low value leases. For these short-term and low-
value leases, the Company recognises the lease payments as
an operating expense on a straight-line basis over the term of
the lease.
Certain lease arrangements include the options to extend
or terminate the lease before the end of the lease term. ROU
assets and lease liabilities includes these options when it is
reasonably certain that they will be exercised.
The ROU assets are initially recognised at cost, which
comprises the initial amount of the lease liability adjusted for
any lease payments made at or prior to the commencement
date of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses.
ROU assets are depreciated from the commencement date
on a straight-line basis over the shorter of the lease term and
useful life of the underlying asset. ROU assets are evaluated for
recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost to sell and
the value-in-use) is determined on an individual asset basis
unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the
recoverable amount is determined for the Cash Generating
Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortised cost
at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in
the lease or, if not readily determinable, using the incremental
borrowing rates in the country of domicile of these leases.
Lease liabilities are remeasured with a corresponding
adjustment to the related ROU asset if the Company changes
its assessment of whether it will exercise an extension or a
termination option.
Lease liability and ROU assets have been separately presented
in the Balance Sheet
The Company as a lessor
Leases for which the Company is a lessor is classified as a
finance or operating lease. Whenever the terms of the lease
transfer substantially all the risks and rewards of ownership
to the lessee, the contract is classified as a finance lease. All
other leases are classified as operating leases.
When the Company is an intermediate lessor, it accounts for
its interests in the head lease and the sublease separately.
The sublease is classified as a finance or operating lease by
reference to the ROU asset arising from the head lease.
For operating leases, rental income is recognised on a straight¬
line basis over the term of the relevant lease.
(xi) Earnings per share
Basic earnings per share is calculated by dividing the net profit
or loss for the period attributable to equity shareholders
(after deducting attributable taxes) by the weighted average
number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during
the period is adjusted for events including a bonus issue.
For the purpose of calculating diluted earnings per share, the
net profit or loss (interest and other finance cost associated)
for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential
equity shares.
(xii) Foreign currency
Transactions and balances
Foreign currency transactions are translated into the
functional currency, by applying the exchange rates on the
foreign currency amounts at the date of the transaction.
Foreign currency monetary items outstanding at the balance
sheet date are converted to functional currency using the
closing rate. Non-monetary items denominated in a foreign
currency which are carried at historical cost are reported
using the exchange rate at the date of the transaction.
Exchange differences arising on monetary items on settlement,
or restatement as at reporting date, at rates different from
those at which they were initially recorded, are recognised
in the Statement of Profit and Loss in the year in which they
arise.
Transition to Ind AS
The Company has elected to exercise the option for accounting
for exchange differences arising from translation of long-term
foreign currency monetary items recognised in the financial
statements for the period ending immediately before the
beginning of the first Ind AS financial reporting period as per
the previous GAAP.
(xiii) Impairment of assets
a) Impairment of non-financial assets
The company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing
for an asset required, the company estimates the assets
recoverable amount. An asset's recoverable is the higher
of an asset’s fair value less costs of disposal and its value in
use. Recoverable amount is determined for an individual
asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets.
such assets are considered to be impaired, the impairment
to be recognized in the statement of Profit and loss is
measured by the amount by which the carrying amount
value of the assets exceeds the estimated recoverable
amount of the asset. An impairment loss is reversed in the
statement of profit and loss if there has been a change in
the estimates used to determine the recoverable amount.
The carrying amount of the asset is increased to its
revised recoverable amount, provided that this amount
does not exceed the carrying amount that would have
been determined (net of any accumulated amortization or
depreciation) has no impairment loss been recognized for
the asset in prior years.
b) Impairment of financial assets
The company recognizes loss allowances using the
expected credit loss (ECL) model for the financial assets
which are not fair valued through profit and loss. Loss
allowance for trade receivables with no significant
financing component is measured at an amount equal
to lifetime ECL. The company applies a simplified
approach in calculating Expected Credit Losses (ECLs)
on trade receivables. Therefore, the company does not
track changes in credit risk, but instead recognize a
loss allowance based on lifetime ECLs at each reporting
date. The company established a provision matrix that
is based on its historical credit loss experience, adjusted
for forward looking factors specific to the debtors and the
economic environment.
all other financial assets, expected credit loss are
measured at an amount equal to the 12 month ECL, unless
there has been a significant increase in credit risk from
initial recognition in which case those are measured at
lifetime ECL. The amount of expected credit losses (or
reversal) that is required to adjust the loss allowance at
the reporting date to the amount that is required to be
recognized is recognized as an impairment gain or loss in
the statement of profit and loss.
(xiv) Financial instruments
A Financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.
Initial recognition and measurement
Financial assets and financial liabilities are recognised when
the Company becomes a party to the contractual provisions
of the financial instrument and are measured initially at fair
value adjusted for transaction costs. Subsequent measurement
of financial assets and financial liabilities is described below.
Non-derivative financial assets
Subsequent measurement
i. Financial assets carried at amortised cost - a financial
asset is measured at the amortised cost if both the following
conditions are met:
• The asset is held within a business model whose objective is
to hold assets for collecting contractual cash flows, and
• Contractual terms of the asset give rise on specified dates to
cash flows that are solely payments of principal and interest
(SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the effective
interest rate (EIR) method. Amortised cost is calculated by
considering any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The EIR
amortisation is included in interest income in the Statement
of Profit and Loss.
ii. Investments in equity instruments - Investments in equity
instruments which are held for trading are classified as at
fair value through profit or loss (FVTPL). For all other equity
instruments, the Company makes an irrevocable choice upon
initial recognition, on an instrument by instrument basis,
to classify the same either as at fair value through other
comprehensive income (FVOCI) or fair value through profit
or loss (FVTPL). Amounts presented in other comprehensive
income are not subsequently transferred to profit or loss.
However, the Company transfers the cumulative gain or loss
within equity. Dividends on such investments are recognised
in profit or loss unless the dividend clearly represents a
recovery of part of the cost of the investment.
De-recognition of financial assets
Financial assets (or where applicable, a part of financial
asset or part of a group of similar financial assets) are de¬
recognised (i.e. removed from the Company’s balance sheet)
when the contractual rights to receive the cash flows from
the financial asset have expired, or when the financial asset
and substantially all the risks and rewards are transferred.
Further, if the Company has not retained control, it shall also
de-recognise the financial asset and recognise separately
as assets or liabilities any rights and obligations created or
retained in the transfer.
De-recognition of financial liabilities
A financial liability is de-recognised when the obligation
under the liability is discharged or cancelled or expired. When
an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an
exchange or modification is treated as the de-recognition of
the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognised in
the Statement of Profit and Loss.
First loss default guarantee
First loss default guarantee contracts are contracts that
require the Company to make specified payments to
reimburse the bank and financial institution for a loss it incurs
because a specified debtor fails to make payments when due,
in accordance with the terms of an agreement. Such financial
guarantees are given to banks and financial institutions, for
whom the Company acts as 'Business Correspondent'.
These contracts are initially measured at fair value and
subsequently measure at higher of:
• The amount of loss allowance (calculated as described in
policy for impairment of financial assets)
• Maximum amount payable as on the reporting date to the
respective bank/financial institution which is based on the
amount of loans overdue for more than 75-90 days in respect
to agreements with banks and financial institutions.
Further, the maximum liability is restricted to the cash outflow
agreed in the agreement.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net
amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and
there is an intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.
(xv) Operating segments
An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses (including revenues and
expenses relating to transactions with other components
of the Company), whose operating results are regularly
reviewed by the Company's management to make decisions
about resources to be allocated to the segment and assess its
performance, and for which discrete financial information is
available. Operating segments of the Company are reported in
a manner consistent with the internal reporting provided to
the company's management.
(xvi) Share Based payment
The Employees Stock Option Scheme ("the Scheme")
provides for grant of equity shares of the Company to
whole-time directors and employees of the Company. The
fair value of options granted under Employee Stock Option
Plan is recognised as an employee benefits expense with a
corresponding increase in other equity. The total amount to
be expensed is determined by reference to the fair value of
the options. The total expense is recognised over the vesting
period, which is the period over which all of the specified
vesting conditions are to be satisfied. At the end of each period,
the entity revises its estimates of the number of options that
are expected to vest based on the non-market vesting and
service conditions. It recognises the impact of the revision to
original estimates, if any, in Statement of Profit and Loss, with
a corresponding adjustment to equity.
(xvii) Stock-in-trade
A financial instrument is classified as held for trading if it is
acquired or incurred principally for selling or repurchasing
in the near term, or forms part of a portfolio of financial
instruments that are managed together and for which there
is evidence of short-term profit taking, or it is a derivative
not designated in a qualifying hedge relationship. Trading
derivatives and trading securities are classified as held for
trading and recognized at fair value.
(xviii) Equity investment in subsidiaries
Investments representing equity interest in subsidiaries are
accounted for at cost in accordance with Ind AS 27 Separate
Financial Statements.
(xix) Government grants
Grants and subsidies from the government are recognised
when there is reasonable assurance that:
(i) the Company will comply with the conditions attached to
them, and
(ii) the grant/subsidy will be received.
Grant or subsidy relates to revenue, it is recognised as
income on a systematic basis in profit or loss over the periods
necessary to match them with the related costs, which they
are intended to compensate.
2.2 New standards or amendments to the existing standards
and other pronouncements:
Ministry of Corporate Affairs ("MCA") notifies new standard
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time
to time. As on 31st March 2025, there is no new standard
notified or amendment to any of the existing standards under
Companies (Indian Accounting Standards) Rules, 2015
D. Estimation of fair values
The Company obtains independent valuations for each of its investment property by external, independent property valuers, having
appropriate recognised professional qualifications and recent experience in the location and category of the property being valued.
Fair market value is the amount expressed in terms of money that may be reasonably be expected to be exchanged between a willing
buyer and a willing seller, with equity or both. The valuation by the valuer assumes that Company shall continue to operate and run the
assets to have economic utility.
Valuation technique:
Under the market comparable method (or market comparable approach), a property's fair value is estimated based on comparable
transactions.The market comparable approach is based upon the principle of substitution under which a potential buyer will not pay more
for the property than it will cost to buy a comparable substitute property. In theory, the best comparable sale would be an exact duplicate
of the subject property and would indicate, by the known selling price of the duplicate, the price for which the subject property could be
sold. The unit of comparison applied by the Company is the price per square metre (sqm).
Footnotes:
(i) Details of vehicle loans
Vehicle loan from HDFC Bank - for Lexus Car is taken on 03.06.2022 amounting Rs. 69.50 lac- repayable in 60 equated monthly installment of
Rs. 1.38 lac from July 2023 and hypothecated against vehicle purchased. The last installment is due on 07-06-2027. The interest rate is 7.30 %
p.a.
Vehicle loan from Axis Bank - for Vitara Car is taken on 31.12.2023 amounting Rs. 15.00 lac- repayable in 39 equated monthly installment of
Rs. 0.45 lac from Jan 2024 and hypothecated against vehicle purchased. The last installment is due on 005-03-2027. The interest rate is 9.25%
p.a.
Vehicle loan from HDFC Bank - for Mercedes Car is taken on 12.12.2024 amounting Rs. 60.00 lac- repayable in 84 equated monthly installment
of Rs. 0.95 lac from Jan 2025 and hypothecated against vehicle purchased. The last installment is due on 05-12-2031. The interest rate is 8.60%
p.a.
(ii) Details of overdraft from banks
Overdraft limit of Rs. 316.86 lac (previous year Rs. Nil lacs) is secured by way of pledged securities with Bajaj Finance Ltd., the rate of interest
of which is 8.5% per annum.
Overdraft limit of Rs. 281.50 lac (previous year Rs. 281.60 lacs) is secured by way of pledged securities / fixed deposits with Axis Bank, the rate
of interest of which is 8.5% per annum.
(iii) Details of others
Unsecured loan from related parties from holding company Avonmore Capital and Management Services Limited Rs.1500.00 Lacs
(previous year Rs.Nil lac). The interest rate on loan is 7.00% p..a.
The company has not used the borrowings from banks and financial institutions for the purpose other than specific purpose for which it
was taken at the balance sheet date.
a) . Terms and rights attached to equity shares
Voting
Each equity holder has voting rights on a poll in proportion to his share in the paid up equity share capital.
On show of hands, every member present in person and being holders of equity shares shall have one vote.
Dividends
The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the
shareholders in ensuing Annual General Meeting except in the case where interim dividend is distributed.
During the year ended March 31, 2025, the company has recorded per share dividend of Rs. Nil (previous year Nil) to its equity holders.
Liquidation
In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive all of the remaining assets of the Company,
after distribution of all preferential amounts, if any. Such distribution amounts will be in proportion to the number of equity shares held by the
shareholders.
b) . Terms and rights attached to preference shares
7% Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) were non-convertible and hence being compound financial
instrument , equity component shown as other equity and liability component as borrowings in accordance with Ind AS 109 on Financial
Instruments.
12,00,000 ; 7% Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) of Rs. 100/- each, at par aggregating to Rs. 1200 Lac
to Avonmore Capital & Management Services Limited being one of Promoters of the Company with rights and privileges as per applicable law.
Preference shares redeemed pre-maturity on 31 December 2023.
Nature and purpose of other reseves:
a) . Securities premium
Securities premium is used to record the premium on issue of shares. It can only be utilisied for limited purposes in accordance with the
provisions of the Companies Act, 2013.
b) . NCPS Equity
The component parts of compound financial instruments issued by the Company are classified separately as financial liabilities and equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible
instruments. This amount is recognised as a liability on an amortised cost basis using the effective interest method until extinguished upon the
instrument's maturity date.
c) . Capital reserve
The capital reserve was generated on account of forfeiture of share warrants.
d) . Amalgamation reserve
The amalgamation reserve was generated on account of merger of Almondz Capital Markets Private Limited with Almondz Global Securities
Limited in the year 2008.
e) . General reserve
General reserve includes amounts set aside from retained profits as a reserve to be utilised for permissable general purpose as per Law.
f) . Employee stock options outstanding
The Company has an equity-settled share-based payment plans for to eligible employeee of the Company, its subsidiaries and its holding
company . Refer Note 50 for further details on these plans.
g) . Retained earnings
Retained earnings represents the surplus in profit and loss account and appropriations.
h) . Other comprehensive income
Other comprehensive income consist of remeasurement gains/ losses on defined benefit plans carried through FVTOCI.
i) . Share Application Money
Share Application Money is received on account exercise of ESOPs - " Series G” ofwhich allotment of share were made in April 2023.
C Contingent assets
The Company does not have any contingent assets as at March 31, 2025 and March 31, 2024.
D Financial Guarantee contracts ( FGCs ) as per Ind AS 109
The Company has given corporate guarantees of Rs.1209.95 lac (previous year Rs.1727.70 lacs) to the lenders of AGICL, wholly
owned subsidiary of the Company(AGSL) and corporate guarantees of Rs.Nil lac (previouos year Rs.1.89 lacs) to the lenders of
Skiffle, wholly owned subsidiary of the Company(AGSL).
As per Ind As109, Financial Guarantee contracts are realised at fair value.The fair value of the guarantee will be the present value
of the difference between the net contractual cash flows required under the loan & the net contractual cash flows that would have
been required without the guarantee.
The corporate guarantee issued by the company was merely to fulfil the requirements of loan. It would not have resulted in savings
in the interest rates.
Therefore the fair value of guarantee which represents the difference in the PV of interest payment over the period is nil.
As per Ind AS 109, FGCs should be initially recognised at fair value. Normally the transaction price is usually the fair value unless
it is contrary to arm's length price.In our case,it is not possible to reliably identify the market price for similar financial guarantee
identical to those its parent has given to its subsidiary.
Alternatively fair value can also be determined by estimating using a probability adjusted discounted cash flow analysis. However
in our case this method too would not be applicable as the management of AGSL (Parent co issuing corporate guarantee on behalf
of its subsidiary) intend that there is no probability of default by its subsidiaries due to its strong order book & cash flows in
the forseeable future.So making a small provisioning of loss would not have any material impact in the books of either parent or
subsidiary companies.
However management intend to review the position on every balance sheet date over the period of guarantee & make suitable
entries in the books of accounts if required,to comply with provisions of Ind as 109 on FGC. In lieu of the above explanations,no
financial entry has been made either in the books of parent or subsidiary co either at the date of inception or on balance sheet
date.
B. Defined benefit plan:
Gratuity
The Company operates a post-employment defined benefit plan for Gratuity. This plan entitles an employee to receive half month's salary for each
year of completed service at the time of retirement/exit.
The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognize each period of
service as giving rise to additional employee benefit entitlement and measures each unit separately to build up the final obligation.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31
March 2025. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using
the Projected Unit Credit Method.
The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 8.89 years (March 31, 2024: 8.08 years).
46 Operating segments
A Basis of segmentation
Segment information is presented in respect of the Company's key operating segments. The operating segments are based on the Company's
management and internal reporting structure. The chief operating decision maker identifies primary segments based on the dominant
source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments
for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly. All operating
segments' operating results are reviewed regularly by the Board of Directors to make decisions about resources to be allocated to the
segments and assess their performance.
The 'Board of Directors' have been identified as the Chief Operating Decision Maker (CODM), since they are responsible for all major
decision with respect to the preparation and execution of business plan, preparation of budget, planning, expansion, alliance, joint venture,
merger and acquisition, and expansion of any facility.
The Board of Directors examines the Company's performance both from a product and geographic perspective and have identified the
following reportable segments of its business:
The following summary describes the operations in each of the Company's reportable segments:
Level 1: It includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise
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
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.
The Company's borrowings have been contracted at floating rates of interest. Accordingly, the carrying value of such borrowings (including
interest accrued but not due) which approximates fair value.
The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other financial assets and liabilities, approximates
the fair values, due to their short-term nature. Fair value of financial assets and security deposits is smiliar to the carrying value as there is no
significant differences between carrying value and fair value.
The fair value for security deposits were calculated based on discounted cash flows using a current lending rate. They are classified as level 3 fair
values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.
Valuation processes
The Management performs the valuations of financial assets and liabilities required for financial reporting purposes on a periodic basis,
including level 3 fair values.
b). Financial risk management
The Company has exposure to the following risks arising from financial instruments:
Ý Credit risk
Ý Liquidity risk
Ý Interest rate risk
Risk management framework
The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management
framework. The Board of Directors have authorised senior management to establish the processes and ensure control over risks through
the mechanism of properly defined framework in line with the businesses of the company.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risks
limits and controls, to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in market
conditions and the Company's activities.
The Company has policies covering specific areas, such as interest rate risk, foreign currency risk, other price risk, credit risk, liquidity
risk, and the use of derivative and non-derivative financial instruments. Compliance with policies and exposure limits is reviewed on a
continuous basis.
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 receivables from customers.
The Company's credit risk is primarily to the amount due from customer and investments. The Company maintains a defined credit policy and
monitors the exposures to these credit risks on an ongoing basis. Credit risk on cash and cash equivalents is limited as the Company generally
invests in deposits with scheduled commercial banks with high credit ratings assigned by domestic credit rating agencies.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are unsecured and are derived
from revenue earned from customers primarily located in India. The Company does monitor the economic enviorment in which it operates. The
Company manages its Credit risk through credit approvals, establishing credit limits and continuosly monitoring credit worthiness of customers
to which the Company grants credit terms in the normal course of business.
On adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company establishes an
allowance for impairment that represents its expected credit losses in respect of trade receivable. The management uses a simplified approach
(i.e. based on lifetime ECL) for the purpose of impairment loss allowance, the company estimates amounts based on the business environment
in which the Company operates, and management considers that the trade receivables are in default (credit impaired) when counterparty seems
partly or fully doubtful to pay its obligations.
When a trade receivable is credit impaired, it is written off against trade receivables and the amount of the loss is recognised in the income
statement. Subsequent recoveries of amounts previously written off are credited to the income statement.
Trade receivables as at year end primarily relate to revenue generated from rendering of services.
Trade receivables are generally realised within the credit period.
This definition of default is determined by considering the business environment in which entity operates and othe macro-economic factors.
Further, the Company does not anticipate any material credit risk of any of its other receivables.
48 b). Financial risk management (continued)
(ii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that
it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company's reputation.
The Company believes that its liquidity position, including total cash (including bank deposits under lien and excluding interest accrued but
not due) of Rs.643.76 lac as at March 31, 2025 (March 31, 2024: Rs. 963.79 lac ) and the anticipated future internally generated funds from
operations will enable it to meet its future known obligations in the ordinary course of business.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an
adequate amount of credit facilities to meet obligations when due. The Company's policy is to regularly monitor its liquidity requirements
to ensure that it maintains sufficient reserves of cash and funding from group companies to meet its liquidity requirements in the short and
long term.
The Company's liquidity management process as monitored by management, includes the following:
- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.
- Maintaining rolling forecasts of the Company's liquidity position on the basis of expected cash flows.
b). Financial risk management (continued)
iii). Market risk
Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk
comprises three types of risk: interest rate risk, currency risk and other price risk, the Company mainly has exposure to one type of market
risk namely: interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.
Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The
Company's main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate
risk.
Exposure to interest rate risk
The Company's interest rate risk arises majorly from the term loans from banks carrying floating rate of interest. These obligations exposes the
Company to cash flow interest rate risk. Since the Company has no variable borrowing rates in the current year, the Company is not exposed to
interest rate risk.
49 Capital Management
For the purpose of the Company's capital management, capital includes issued equity share capital and all other equity reserves attributable
to the equity holders of the Company.
Management assesses the Company's capital requirements in order to maintain an efficient overall financing structure. The Company
manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the
underlying assets.
To maintain or adjust the capital structure, the Company may return capital to shareholders, raise new debt or issue new shares.
The Company monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debts divided by total capital
(equity attributable to owners of the parent plus interest-bearing debts).
The Almondz Global Securities Employees Stock Option Scheme 2007 ("ESOS” or “Scheme”) as approved by the Shareholders of the
Company, the Company after taking into effect of the split of shaes of the Compay in the ratio of 1:6 w.e.f. 23 July 2024 is entitled, as on
the date of this meeting, to grant an aggregate of 9,00,00,000 or 50% of paid-up share capital of the Company, whichever is lower. The
Company has already granted a total of 6,49,20,000 options out of which 3,31,40,948 options got lapsed, a portion of which had been re¬
issued by the Company. Further, till date, an aggregate of 2,03,54,126 options were exercised by the concerned employees of the Company.
The compensation committee in its meeting held on 26th August 2019 has alloted 2,64,00,000 options under series "G” to eligible employees
of the company/itssubsidiary company. However, options granted under series A to F are exercised or lapsed. Under Series G, 30,00,000
options got lapsed.
The compensation committee in its meeting held on 14th September 2020 has alloted 18,00,000 options under series "H” to eligible
employees of the company/itssubsidiary company. Under Series H, 18,00,000 options got lapsed
The compensation committee in its meeting held on 14th March 2022 has alloted 72,60,000 options under series "I” to eligible employees of
the company/its subsidiary company. Under Series I, 40,90,002 options got lapsed.
The compensation committee in its meeting held on 23 May 2023 has alloted 15,00,000 options under series "J” to eligible employees of the
company/its subsidiary company.
52 There are no borrowing costs that have been capitalised during the year ended March 31, 2025 and March 31, 2024.
53 There have been no events after the reporting date that require adjustment/disclosure in these financial statements.
54 Previous year's figures have been regrouped / reclassified as per the current year’s presentation for the purpose of comparability.
As Per our report of even date attached.
For Mohan Gupta & Co. For and on behalf of the Board of Directors of
Chartered Accountants Almondz Global Securities Limited
Firm registration No. 006519N
Mohan Gupta Manoj Kumar Arora Ajay Pratap
Partner Managing Director- Director Legal - Corporate Affairs and
Company Secretary
Membership No.: 0822466 DIN : 06777177 c /
^ & Company Secretary
UDIN - 25082466BMTFEY2395 Membership No.: F8480
DIN :10805775
Rajeev Kumar
Place: Delhi Chief Financial Officer
Date: 26th May 2025 PAN: ALPPK5252J
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