i) Funds held relating to cash management activity, represents the net funds used by the Company for operating one of the services (Network Currency Management) of its cash management business. These include Bank balances and Cash in Vaults as reduced by the amounts payable to customers.
ii) Margin money deposits with carrying amount of ' 78.85 Million (March 31, 2024 : ' 120.27 Million) are subject to first charge to secure the Bank guarantees / fixed deposits given by banks on behalf of the Company for pending court cases and deposits of ' 55.00 Million (March 31, 2024 - ' 116.00 Million) are subject to first charge to secure the facilities for Vaulting and ATM operations.
(i) Terms and rights attached to equity shares
The Company has only one class of equity shares having par value of ' 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend which is approved by the Board of Directors.
In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(iii) Disclosure of Shareholding of Promoters
There are no shares held by the promoters of the Company as at March 31, 2025.
Notes:
a) As per records of the Company, including its register of share holders / members and other declarations received from shareholders regarding beneficial interest, the above share holding represents both legal and beneficial ownership of shares.
b) Shares reserved for issue under options
Terms attached to stock option granted plan to employees under employee stock option schemes are described in note 38
B) Nature and purpose of reserves
(i) Securities Premium : The amount received in excess of face value of the equity shares is recognised in Securities Premium. 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, on exercise of the option. During the current year the company has recognised securities premium of
' 60.33 Million ( March 31, 2024'259.55 Millions) on account of transfer to securities premium on exercise of options.
(ii) Share based payment reserves : The fair value of the equity-settled share based payment transactions is recognised in the Standalone Statement of Profit and Loss with corresponding credit to Share based payment reserves.
(iii) Capital Redemption Reserve: The Company has recognised Capital Redemption Reserve on buyback of equity shares from its retained earnings. The amount in Capital Redemption Reserve is equal to nominal amount of the equity shares bought back.
(iv) Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
Defined benefit plan
As per “The Payment of Gratuity Act, 1972”, the Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets gratuity on departure at 15 days' salary (last drawn salary) for each completed year of service. The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the Company carries out an actuarial valuation based on the latest employee data from the certified actuary valuer.
The Company has purchased insurance policy, which is a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate in particular, the significant fall in interest rates, which could result in an increase in liability without corresponding increase in the asset.
The following tables summarizes the components of employee benefit expense recognized in the Standalone Statement of Profit and Loss and the funded status and amounts recognized in the Standalone balance sheet for the gratuity plan of the Company.
The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of reporting period.
Other long term employee benefits
In accordance with its leave policy, the Company has provided for leave benefits on the basis of an actuarial valuation carried out by an independent actuary at the end of the year.
Amount of ' 14.48 Million (March 31, 2024: ' 13.50 Million) for Compensated absences is recognised as an expense and included in “Employee benefits expense” in the Statement of Profit and Loss. Accumulated noncurrent liability amount to ' 33.05 Million (March 31, 2024: ' 29.53 Million) and accumulated current liability amount to ' 13.45 Million (March 31, 2024: ' 9.29 Million).
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
The weighted average incremental borrowing rate applied to lease liabilities is 8.5%.
The outflow on account of lease liabilities for the year ended March 31, 2025 is '599.96 Million.(March 31, 2024 is '533.17 Million). Refer Standalone Cash Flow Statement.
Notes:
*In relation to the matters of Custom duty, VAT, CST, Service Tax, GST, Income tax and excise matters listed above, the Company is contesting the demands from the respective Government Departments. The management believes that its position will likely be upheld in the appellate process. No expense has been accrued in the financial statements for these demand raised. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company's financial position and results of operations.
** The Company has given Corporate guarantees in favor of lenders of Securitrans India Private Limited, a subsidiary of the Company amounting to ' 600 Million (March 31,2024: ' 600 Million) and ' 200 Million (March 31, 2024: ' 200 Million) in favor of one of the customers of subsidiary for overnight vaulting facilities.
b) The Company has ' 93.63 Million Capital commitment for the year ended March 31, 2025 (March 31, 2024 ' Nil).
c) There has been a Supreme Court (SC) judgement dated 28th February 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. The Company believes, based on legal opinion, that the liability if any, in practice would be from the date of order. Based on such opinion and pending clarification from PF authorities, the Company has recorded the cost prospectively from March 2019.
d) In addition to the above, there are certain civil claims against the Company. The Management is confident, that these will not have any material impact in the Standalone financial statements.
e) The Hon'ble National Company Law Tribunal (“NCLT”) passed an order in the proceedings on 5th December 2023, wherein it has directed the board of directors of the Company to take employees of ATM & Cash Management Division of the Transferor Company, being CMS Securitas Limited, as their employees, provided such employees were working for ATM & Cash Management Division of the Transferor Company as on Appointed Date, and such employees also continued to remain in employment on the effective date of the Scheme approved by the Hon'ble Bombay High Court on October 25, 2010 and by the Hon'ble Delhi High Court on 17 January 2011. Management has appealed the order with the National Company Law Appellate Tribunal (NCLAT) and Hon'able NCLAT has allowed the NCLAT appeal in favor of the Company and set aside the NCLAT order by a judgement 6th November 2024.The Supreme court has sqaushed the said matter.
NOTE 32 : TRADE PAYABLESa) Details of dues to Micro and Small Enterprises as per Micro, Small and Medium Enterprises Development Act, 2006
The Company has ' 99.09 Million (March 31, 2024'59.58 Million) dues outstanding to the micro and small enterprises as defined in Micro, Small and Medium Enterprise Development Act, 2006. The information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.
NOTE 33 : IMPAIRMENT TEST OF GOODWILL Impairment test of Goodwill
Goodwill acquired through business combinations have indefinite lives. Out of the total Goodwill of the Company, the material amount of goodwill is allocated to the following:
a) ' 1,035.12 Million (March 31, 2024: ' 1,035.12 Million), relates to the Cash Management division of the Company.
b) ' 185.94 Million (March 31, 2024: ' 185.94 Million), relates to the acquisition of door step banking business from Checkmate Services Private Limited; also a part of Cash management business.
The Company performed its annual impairment test for the year ended March 31, 2025 and March 31, 2024 respectively . The Company considers the relationship between its value in use and its carrying value, among other factors, when reviewing the indicators of impairment.
The recoverable amount of the goodwill is determined based on a value in use ('VIU') calculated using cash flow projections from financial budgets approved by management covering a period of five years and the terminal value (after considering the relevant long-term growth rate) at the end of the said forecast periods. The Company has extrapolated cash flows beyond 5 years using a growth rate and Terminal value growth rate of 5% for the year ended March 31, 2025 (March 31,2024: 5%). The pre-tax discount rate applied to the cash flow projections for impairment testing is 13.4% for March 31, 2025 ( March 31, 2024: 13.4%)
The said cash flow projections are based on the senior management past experience as well as expected trends for the future periods. The calculation of weighted average cost of capital (WACC) is based on the Company's estimated capital structure as relevant and attributable to the CGU. The WACC is also adjusted for specific risks, market risks and premium, and other inherent risks associated with similar type of investments to arrive at an approximation of the WACC of a comparable market participant. The said WACC being pre-tax discount rates reflecting specific risks relating to the relevant CGUs, are then applied to the above mentioned projections of the estimated future cash flows to arrive at the discounted cash flows.
The key assumptions used in the determination of VIU are the revenue annual growth rates and the EBITDA growth rate.
Based on the above assumptions and analysis, no impairment was identified as at March 31, 2025. Further, on the analysis of the said calculation's sensitivity to a reasonably possible change in any of the above mentioned key assumptions / parameters on which the Management has based determination of the CGU's recoverable amount, there are no scenarios identified by the Management wherein the carrying value could exceed its recoverable amount.
The Company does not use forward exchange contracts to hedge its foreign exchange exposure relating to the underlying transactions in accordance with its forex policy. The Company does not use foreign exchange forward contracts for trading or speculation purposes.
The fair value for the investments is arrived at with reference to the Net asset value (NAV) of the mutual fund units as disclosed by the Asset Management Company.
The management assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, and other current financial assets and financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. Further the difference between carrying amount and fair value of insurance receivables, deposit measured at amortised cost is not significantly different in each of the year presented.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
NOTE 37 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company has exposure to the following risks arising from financial instruments :-
• credit risk;
• liquidity risk; and
• market risk
(i) 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 has established the risk management committee, which is responsible for developing and monitoring the Company's risk management policies. The committee reports regularly to the board of directors on its activities.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies are reviewed regularly to effect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Company audit committee oversees how management monitors compliance with the Company's risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Company audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to audit committee.
(ii) Credit risk
Credit risk is the risk of financial loss to the Company if a customer fails to meet its obligations under a financial instrument or customer contract. The carrying amount of financial assets and contract assets represents the maximum credit exposure. The Company is exposed to credit risk from its operating activities (primarily trade receivables and claims receivables).
TRADE RECEIVABLES
Customer credit risk is managed by the Company's established policy. To minimize the risk from the counter parties the Company enters into financial transaction with counter parties who are major names in the industry.
A significant risk in respect of receivables is related to the default risk and credit risk. An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous Companies and assessed for impairment collectively. The calculation is based on historical data. The maximum exposure to credit risk at the reporting date is the carrying value of receivables disclosed in Note 12 . The Company does not hold collateral as security.
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations. Trade receivables concentration of credit risk with respect to trade receivables is limited, due to the Company's customer base being large and diverse.
Other receivables
Security deposits are interest free deposits given by the Company for properties taken on Lease. Provision is taken on a case to case basis depending on circumstances with respect to non-recoverability of the amount. The gross carrying amount of Security deposit is ' 112.12 Million as at March 31 2025 , ' 106.00 Million as at 31st March 2024.
Other financial asset includes claims receivable, and other receivables (refer note 8). Provision is made where there is significant increase in credit risk of the asset.
(iii) 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 due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
Management monitors rolling forecasts of the Company's liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.
The Company has sufficient current assets comprising of Trade Receivables, Cash and Cash Equivalents, Investment in Mutual Funds, Other Bank Balances (other than restricted balances), Loans, Inventories and Other Current Financial Assets to manage the liquidity risk, if any in relation to current financial liabilities.
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of cash credit, working capital , demand loan and bank loans. The Company has access to a sufficient variety of sources of funding. The table below provides details regarding the contractual maturities of significant financial liabilities as at year end.
(iv) Market risk
Market risk is the risk that's changes in the market prices - eg. Foreign exchange rates, interest rates and equity prices, will effect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the returns.
a) Currency Risk
Currency risk is not material, as the Company's primary business activities are within India and does not have significant exposure in foreign currency.
b) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
Exposure to interest rate risk
Fair value sensitivity analysis for fixed rate instruments
The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
Capital management
For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company's capital management is to maximize the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents. In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. The Company does not have any loans outstanding as at March 31, 2025. It has taken adequate credit facilities from various banks to maintain its liquidity.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2025 and March 31, 2024
For options granted under Employee scheme 2016, 21st month onward vesting will be based on Company / business unit performance for the second financial year after the financial year in which the options have been granted and so on. The performance condition are assessed as non-market conditions.
For options granted under Employee scheme 2023, 12th month onward vesting will be based on Company / business unit performance for all financial year. The performance condition are assessed as non-market conditions.
The vested options pertaining to Employee Scheme 2016 can be exercised within 2 year of the date such options are vested and vested options pertaining to Employee Scheme 2023 can be exercised within 3 year of the date such options are vested. In any other liquidity event, the vested options can be exercised within such period as may be prescribed by the Board in this regard.
The expected life of the share options is based on current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome. The historical volatility is based on price volatility of listed companies in same or similar industry. The company has allotted employee stock options to some of its employees through its Employee Stock Option Scheme. During the year 113,500 (year ended March 31, 2024; 232,500) stock options has expired and lapsed on account of employees left the organization. During the current year, reversal on account of such expired options is recognized in the profit and loss account aggregating to ' 14.48 Million. The Company has recognized ' 307.45 Million, (March 31, 2024 - ' 365.55 Million) as employee benefit expense in relation to all the active options outstanding as at March 31,2025.
NOTE 39 : OPERATING SEGMENTS
Since the segment information as required by Ind AS 108-Operating Segments is provided in consolidated financial statements, the same is not provided in the Company's standalone financial statements.
NOTE 41 : IND AS 115 REVENUE FROM CONTRACTS WITH CUSTOMERS Sale of Product
The Company applies practical expedient in paragraph 121 of Ind AS 115 for all contracts entered for sale of product and does not disclose information about remaining performance obligation that have original expected duration of one year or less.
Revenue for services
The Company applies practical expedient in paragraph 121 of Ind AS 115 for all contract entered for revenue from services, whereby it has right to receive consideration from a customer in an amount that corresponds directly with the value to the customer of the entity's performance completed to date. Hence the Company does not disclose information of remaining performance obligation of such contracts.
Disaggregation of revenue from contract with customers
Revenue from sale of goods is recognized at point in time when control of the products being sold is transferred to our customer and Revenue from services is recognized over time as and when services are rendered. Revenue from contracts with customers is disaggregated by primary business units as given in the note 19.
There is no obligation for returns, refunds and other similar obligation as at March 31, 2025 and March 31, 2024
Revenue from two customers of the Company represents 10% or more of the Company's total revenue during the year ended March 31, 2025 amounting to ' 8,362.50 Million (March 31, 2024'7,130.97 Million).
NOTE 42 : REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
NOTE 43 : UNDISCLOSED INCOME
a) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
b) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
NOTE 44 : DISCLOSURE REQUIRED FOR QUARTERLY STATEMENT SUBMITTED WITH BANKS
For borrowings from banks or financial institutions on the basis of security of current assets, quarterly returns or quarterly statements of current assets filed by the Company with banks or financial institutions during the year ended March 31, 2025 and the year ended March 31, 2024 are in agreement with the books of accounts.
NOTE 45 : DIVIDEND
Dividends declared and paid during the year ended March 31, 2025 include an amount of ' 3.25 per equity share towards final dividend for the year ended March 31, 2024 and an amount of ' 3.25 (PY : March 31, 2024 ' 2.50) per equity share towards interim dividends for the year ended March 31, 2025.
The Board of Directors, in its meeting held on May 19, 2025, has declared Special Interim Dividend of ' 3.00/-per Equity share of ' 10 each for FY 2024-25 which shall be payable within statutory limit of 30 days from the date of declaration. The board has also recommended a final dividend of ' 3.25/- per Equity share of ' 10 for FY 2024-25. The payment of final dividends, as recommended above, is subject to the approval of the Shareholders of the Company at the ensuing Annual General Meeting.
NOTE 46 : DISCLOSURE REQUIRED UNDER RULE 11(E) OF THE COMPANIES RULES, 2014
A) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) in any other persons or entities, including foreign entities (“’’Intermediaries””), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“’Ultimate Beneficiaries””) by or on behalfof the Group or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
B) The Company has not received any funds from any persons or entities, including foreign entities (“’’Funding Parties””), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“’’Ultimate Beneficiaries””) by or on behalf of the Funding Party or provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
NOTE 50: SUBSEQUENT EVENTS
There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on the balance sheet date.
NOTE 51 : ADDITIONAL DISCLOSURE REQUIRED BY SCHEDULE III (AMENDMENTS DATED 24TH MARCH 2021) TO THE COMPANIES ACT, 2013
No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule III:
a) Crypto Currency or Virtual Currency
b) Benami Property held under Prohibition of Benami Property Transaction Act,1988 and rules made thereunder
c) Relating to borrowed funds:
i. Wilful defaulter
ii. Utilization of borrowed funds and share premium
iii. Borrowings obtained on the basis of security of current assets
iv. Discrepancy in utilisation of borrowings
v. Current maturity of long term borrowings
d) Merger / amalgamation / reconstruction, etc.
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