1. Mail'd jl Accounting Pol i deni
a) Basis of Accounting .a net Pro pa rat fort of Financ ial Statements
The financial statement fur the year ended Marc'- 31, 2024 has been prepared in accordd-ce with Indian Accounting Standard j ind AS'j. Thq-Ccjmp-ainy scovered under the definition of N RFC and the Inb AS s Applicable under Phase il as defined in notificatioi i dated March 30, 2010 issued by Ministry of Corporate Affairs :mCAj since the company is a listed company.
These f i nano a I statements. afp prepared in accordance w;t.h Indian Accounting Standards find ASJ prescribed under See '33 of theComojr.icsAcl ("the Act ) read with IlLfe 3 of the Companies (Inc-an Accounting Standards) Rules, 2015,
These financial Statements of the Company are presented asper Schedule 111 [p vision ill) of the Companies Act, 2013 applicable? to NRFCs, as notified by the Ministry of Corporate Altai rs (MCA). Those RnanoaJ Statements ot the Company are presented in Indian Rupees flNf-r). which is also the Company's functional currency and all values a re rou nded to nea rest L acs u pto two d edm a 1 pi aces, except othe rwse i nd ida ted.
The Standalone financial statements tor the year ended March 31 2G24 are being authorised for issue in accordance w th 3 resolution of the- d rectors on May 'O' ,2024.
b} U se of Esti mates
The preparation of the financial ststomom^ in conformity with md AS requires that management ma*.e judgment.-;, estimate; and assumptions that affect the appheaton of account ng po'icics and the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities as of the date-of the financial Staternagts end The income and expense for the reporting porpd. The Actual results c.guld differ from these estimates. estimates and underlying .assumptions are reviewed on an ongoing basis. Revisions to account! "g psti mates are recognised in the period in which the estimate js revf$etj a no many tutu re periods effected
The Company makes certain judgments and estimates for valuation and impairment of financial instruments; fair valuation of employee stock options useful life of property, plant and equipment, deferred ta>; assets ana retirement benefit obligations Management believes that the estimates used in the preparation of the financial sta te me nts a ro p ru o o nt a n d reason a b lo
c) Revenue Recognition
i. Revenue from brokerage activities s accounted for on the exchange settlement date of the transact ion.
i . Revo n uc r r om issue- management, debt syn d : a t- on, f i n a n c i a I ad vso ry se ryi c c-s e Lc.. i s r ecog r, i z cd nosed bln t h e st ag e of coni p I et i o n of assig n me nts a nd te r m s of eg r ee me nt With the d ie rij
i ii C at ns / losses ur i dea li ng i h s^urities iir& re.tb.g njieb on the exc fi a Ý ige sett :e i r -e n t d a te or the t Ý s risac tiorl iv, Interest is recognized us1 r-g the effective interest rate met hod.
V. Revenue from dividend is recogrnied when the nyht to receive the dividend is established.
d) Property, Plant and Equipment (PPE)
Measurement at recognition:
. Property, plant and equipment arc- stated at cost less accumulated depreciation and accumulated impairment losses it aiffy £u osec uent costs are i niltided i n th e asset's ca rryi ri y a tnoti" t
Ý All property, plant and ec uiphnent are hiUally recorded aL cost. Cost Comprises acquisition Cost bon owing tost, if capitaazafion cri^ria are phet eng director attributable cost of bringing the assei to its working condition ‘or the intended usp.
i. Subsequent expenditure relating to property, plant ano equipment is capitalized only when it is probable that future ecu nor t 1 i c ben e f i c assoc i a ted w i t h t he se wf 11 f I o w w it h t he Co m ue ny a ri d t h e c ust of t he i te m ea r Ý oe m easu: to reliably,
i v. Any gain or loss o n dlspcsakrf a© i te rrtof property, plant at*d equ ipm^nt is recog n izesf in sfeatess&antsflf-p rofit and loss Depreciation:
i Depreciation provided on property, plant and equipment is calculated cn a Written-Down Value (WDV) basis using the ra res a rr ived at based on Ý h e u se Tu 11 i ves e s 11 nr eted by ma n a y ern en L
i. Depreciation on assets is provided on a Written Down Method as per the rates prescribed in Schedule i! to the Com Dames Act. 201?-. Depreciation on add it ions to fixed assets is provided on a pro-rata basis from the-date the asset is available for use. Depreciation on sale / deduction from frxed assets is provided for up to the date of sale/ deduction./ sera oping, as the case may be.
:.i.Ths lesidunl values. estimated useful lives and met hod so'dep^ciat ion of property, plant and eqdi£rf&rrt are' reviewed at the on-d c> eg c h f: n a nda I yea r a n d c h a n g d s rf a ny. a re a coo u nto d for 9 h a p ros pec: i ve bias is
Capital Work in Pro gross:
i. Cost of iho assets not ready for ntonded us-: as on reporting date. :s shown as caoital work in orogress. Advances given towards acquisition off iked assets outsfand ing at each repoc ino date are shoWh as oilier non-fifiijjncial assets
i Depreciation S ri&t recorded on Capital wy-k- in-progress unlT tdflStiaction end nst^atfap is completed and assets are ready for its intended use.
Derecognition:
1 fie Carrying amount of an item of property, plant anc equipment ;s derecognized on disposal or when no future economic ben ef its a re expected f r am i ts u se or d i spo sal Th e gs i n o i loss a ri si ng from t h e dere cogn it. i on of an i te m of p ro petty, plant sod equipment ts measured as the difference between the not disposal Dtoceeds -and the carrying amount of the item and is recognized ^ttheStatfemenrof profit and IjJsswhenthd' item is derecognized
e> Intangible Assets:
Intangible assets acquired separately a^e measured on initial leccgnition at cost. Flowing in tial recognition, intangible assets are carried at cost less accumulated amortization.
Amortisation
Am o rtisation is ca lc u I a tod usi ng ih e st ra i g ht-1 i h e method to write down the cost of i nta ng i ble a ssets to the i r resi d ua! va lues over their estimated usefu ivesand is included in the oepreciation and amortization in the statement of prof it and loss
f) Financial instruments
“he Company recognizes a'I me financial assets and liabi'ities at it's fair value on initial recognition, sn the case oft nancial assets noLatfair value through profit or loss, transaction costs th3t are directly attributable to the acquisition or issue of the financial assert are added to the fair value on initial recognition. The financial assets a re a^OLif^sdonatradedate basis
F o r su bscq uen i mcas u rc me nt, f i na nc ia I assets a re ca tego rise d i n to:
Amortised cost: Thc Company classifies the finijihcial assets at am or Used cost If'tlhe contractual cash flows represent solely pay merits of principal and interest on the principal amount outstanding and the assets are held under a business, modc-i to collect Contractual cash flows. I he gems anc .osses resulting from ^uctuatic-ns m fair value are not recognised forrinanonal assets ciossified in amort isedcost ifneasu r^ment category.
Fair value thro ugh other comprehensive income {FVGCI): Tns CompanyclassficstlTefinar.cial assets as FVOCI it the contractu a I cash flows represent solely payments of principal and interest on the principal amount outstanding and the Company'll business model is achieved by both ocdcctinci contractual cash flow and se ling financin assets. In case- of debt instruments measured at FVOCI, changes in fair value are recognised in other comprehensive income. The impairment gains or losses, foreign exchange gains or losses and hteT&st calculated using the effective interest method are recognised in proM or loss On do-it. so go tan. me cumulative gain qr loss previously mcogniseci in other comprehensive income is re- c'asslfied frorn equity to profit or loss as a - ed a ssif; cation adjustment. In case of equity instruments irrevocably designated at FVOCI, gains / losses includ ng relating to foreign exchange, are recognised thmugh other comprehensive income Further, cumulative gains or losses previously recoghfeed in other comprehensive income remair permanently in eg-.,ity and are not subsequently transferred to profit or oss on derecognition.
Fair value through profit or loss (FVTPL): the financial assets ar classified as FVT PL if these cc net meet the criteria "or classifying st amortised cost or FVOCI. Furthei. in certain cases to eliminate or significantly reduce a measurement or recognition inconsistency (accounting rni£m|&th}, t fie Co moony rrevocebty designates certain financial nstrumenLsat FVTP, at nitial recognition In case ofdnano.al assets measured at FVTP. changes :n fair value are recognised in profit or loss,
Profit or Loss on saie of investments is determined on the basis of first-in-first-out (FIFO) basis
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market oartid pants at the mea sure men-, date The if&ir value measurement is based on '.he presumption fiat the t ra n sa c ti o n to sc 11 r h o a ss.pt o r tra nstc f the I i a bil ity t a kes pi a c o c t he r:
Ý In t.hep'i'icipal markc-t for the-asset or liabiBty, or
- In the absence of a principal market, nt.he most advantageous market foi the asset O' l ability.
Th e pr i n ci pa t o r t he most adva nta ge.on s m a r ket m ust bo acce ss i 11 e by the C.om. p a ny
Ý-fj-t
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market panic! pants act in their economic best imprest.
A fa i rvalue nacosuremcnt otanan.1 nano; a I asset rakes into account a market parncipants a bi | tyro generate e cpnomic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use
In order to show flow fa-rvalues have been derived, financial instruments are clarified based on a hierarchy ofva.uaLion techniques, ss summarized below
Lave 11 The fa i r va I u e h ic ra re hy la ave be cn va kje d u sin g c. uotod pri c c5. for 1 nst ru n t c n t.s i n a n a c t ive m a rkot.
Level if - i"iouis other than quoted prices ir eluded within Leve; : that am observable either directly (i.e. as orices) or ind:mcrly (i.t? derived rrom prices;
Level 3: inputs mat arc unociservabio. This category includes all nstrumo^tsfor Wh cn the va'..ration technique- includes i ri put& t h a: a r e not o b se rvao la a n d ih e u no bse - va b I a' n p u ts have a a ig n 1 f ica nt Effect on the n^tru merit'sy^'Ju ati o n
Impairment of financial assets: in accordance-with nd AS 103, the Company npoiies Expected Cred't Loss model (E CL) for meas u re me nt and recogn it ion of i mpai rnn ent I oss, The Com pa ny recog n izes I ifetinn e expected losses fo r a 11 co ntract assets and / or all trade receivables that do not constitute a financing transaction. At each reporting date, the Company assesses whether the loans have been impaired. The Company is exposed to credit risk when die customer defaults on hts contractual obligations. For the computation of ECL.the loan receive dies a re classified into throe stages based on the default and the aging of the outstanding.
1‘.he amount of an- impairment loss decreases m 5 subsequent period, and tho decrease ca^- be related objectively to fcn event occurring affor the impairment was recognised, excess is written back by redoing the loan impairment a iowance account accordingly, “he write Pack is recognised n I -he statement of profit and 01s
For subseq uentm easure mont, f i n a n ci all fa bi I ity are cat og o rlsed into:
All hnancial liabilities am initially rocogo sod at fair valve net of transaction cost that are attributable to the separate ÝÝÝabil-Lies. Al; r rv.in trial I abikl es are subsequently measured at amortised c-ost using the effective interest method or at FVTPL
Financial liabilities are classified asst FVTPL whenthefinancial liability iseither contingent consideration recogn'Sed by the Company assn acquirer m a business combination to which |pd ASlOiSapoiiesorjs held for trading or t is designated as at FVTPL
Frnanatel liabilities that are not held-fur - trading a ndflre not designated as at FVTPL are measured at amortised cost. The carrying amounts of financial liabilities that are subsequently measured at amortised cost a re deter mi nod based on tho effective interest method.
The eft&ctiy$ interest method is ? method of calculating the amortised cost of a financial iabiLty and of allocating interest expense over the relevant period The effective interest rate is the rate tost exactly discounts est'mated future cash payments (including ai! foes paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts') through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a tinanci.V iinbi- ity.
Equity instruments:
An equity instrument isany contract that evidences a residual interest n the assets of an entity after deducting alt of its I ia b i I it ies. E q it;ty i nst ru m e nts isSUed by t h e Com p a ny a re recog n i sed at t he proceeds recei wed, net of d > rect i sst 1 e costs
Derecognition:
A financ al lability isdcrecogniscd when the obligation under tho lability is discharged or cancelled orexpiros. When an easting financial liability is replaced byanojHj'j|r from the same lender on subsist elly different term?, oj f'etei ms'pf an existing iability .ire substantially mc-eifiod. such an exchange or modification is treated os tho cerc-cognt on of The or.: liny iiab: ity and the recognition of a new liability. 1 ire di'Ve rente between me ts vying amount ofthefinanc altfofcrtiity derecognised and the consideration par I is recognised in the Statement of Prcdt a no Loss
g) Employee Benefits
Gratuity
I he Company pays gratuity, a defined benefit plan, to its employees who retire or resign after a m.inimunri pcrioc of five years of continuous service. The Company makes contributions to the LIC Employees Gratuity Fund which is managed by l. ife I ns u ra nee Co m pa ny U m 11 ed {UC) fio r the sott le me n t of grat u 1 ty I ra b i I i ty.
A defined befijfefit plan is a post, employment benefit plan other than a defined contribution plan. The Company's net obligation in respect of the defined benefit plan is calculated by estimating the amount of future benefit that employee has earned in exchange of their service in the current and prior periods end discounted beck to the current valuation datepp arrive att ho p rose n t va i uc of L he d of i n ed bo nef i t o bt gatifin i ho de fin od bo no f i: c bi ig a t i o n i s d od -u 01 od from, t h e fair value of plan assets to arrive at the net asset / (liability), which need to be provided tor mthe books of accounts of the Company.
As required by the Leri A5I9. the discount rate used to arrive at the present value of the defined benefit obi gations is based on the Indian Government security yields prevailing as at the balance sheet date that have maturity date equivalent to the tenu re of the obligation.
The calculation is performed by a qualified actuary using the n rejected unit credit method-When the calculation results in a net asset position, the recognized asset is limited to the present value oF economic benefits available in form of reductions i n fut tire coot ri but ions.
Renriaasurerirfeirts arising from defined benefit plans compri^fs ot aciuaria gain; and losses on benefit ob igations the return on plan sssets in excess of what has been cstinr.rjted and the- effect of asset ce. .ng, if any, in case of over funded plans. Th| Company recognises these items of remeasure merits in other comprehensive 'ncorne and ell the ethe1 expenses related to defined benefit plans as employee ocnefii expenses in their! orofitand loss account
When the benefits of the plan are changed, or when a plan i$ curtailed or settlement occurs, the portion of the Charged b sn ef i t re I a ted to pa St se rvi ce by e m p lo.yees, or me gain or I oss on tu La- i I men t Orsett] e-men t, i s recoy n i zed m med iate|y ij^t h£ profitqif'fess accQU ht when the pJ an amendlttie nt or when a cyj ta i I nqentpr sett lement pqcu rs
Provident Fund
Retirement benefit in the form of provident fond is a defined contribution scheme. The Company isstatuton ;y required tocon tribute s specified portion of the oasic salary of sn employee to a provident fund as part of retirement benefitstO'ts e m p Ioyees. I he £c n tr i b ut i o ns during the yes r a t o c h a rge d to th e sf.ateme n t of p rof it a n d I oss.
h) Borrowing costs
Borrowing fccstsihdude Interest expert&e as per ‘.he effective interest rafe (El R) and other costs incurred by the Company in connection With the borrowing of funds Borrowing costs directly attcbutableto acquisition or construction of those tangible fixed assets Which necessarily faxe a substantial period or Lime to get ready for then intended use are capitalized Other borrow- ng costs a re recognized as an expensefo theyear iff which they grffe incurred
E) Foreign exchange transactions
The functional currency and the presentation currency of the Company is Indian Rupees. Transactions in foreign currency are recorded on initial recognition using the exchange rate at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date. Exchange differences arising on me set Lie men t or translation of monetary items are recognized in Lhe statement of profit and loss in the period in which they arise
Assets and liabilities of foreign operations are translated at the dosing rate at each reporting period Income and expenses of fotergn operations ate translated at. monthly average rates, “be resultant exchange Differences ate recognized in other comprehensive i-come in case of foreign operation whose functional currency is d'fferent from the presentation currency and in the stntomont ibf orofit and 'oss for other foreign operations. Won monetary items which are carried at h'x.toriCa- cost dS&OiYifnated in a foreign currency are reported using the exchange rate at the date of the transaction
j) income tax
i lie Income tax expense comprises re ht Li n d deferred tax meurroo oythc Company neems tax expense, s 'ecognised
in the income statement except to the extent that it relates to items recognised directly in equity or OG, n which case the tax effect is recognised in equity or GCI. ncometax oayable on profits is based on the applicable tax laws in each tax jurisdiction and is recognised as an expense in the period in which profit arises. Current tax is the expected tax payab-o/receivable on the taxable income or loss for the perrod, using tax rates cm acted for the ro porting period and any adj u stme n t to ta x pays b I eAece:va bi e i n res pec t of previou s years.
Current tax assets and liabilities a re offset Ohly if, LheComnany:
a) The entity has ;egaliy enforce? die right to setoff the recognized amounts; and
b; Intends either to sot Lie cm a rot basis, or to realise the asset and settle thc-Labil ty simultaneous^
Deferred tax is recognised m respect of temporary differences between the carrying amounts of assets and liabilities to' financia reporting Purpose and the amounts for tax pur poses
Deterred Lax liabilities are general iy recognised for all taxable temporary differences and deferred lax assets are recogmsec for ell deductible temporary differences, to the extent it is probable that future taxable profits wD be avai.able against which decsuctible temporary di fferencesean be utilised.
D-d furred ta->: is measured at the tjfj® rates trot arc expected to be aoqliea to the temporary differences wt.^n they reverse, eased on the laws tha* liave been enacted or substantively enacted by the reporting date. Deterred tax. assets are reviewed at each re port rng date a nd a re red u cad to t he extent thatitisnolonaerproba bio t hat t no re I a ted tax bench t vyi 11 be r ea I tsed
Def er red tax a ssets a n ri 11 ah i I i des a re offset on iy i f.
c) I tie entity has legally enforceable right to Set off cur rent tax assets against Current tax liabilities; and
d) The defer rad tax assets and the deferred tax liabii.fles relate to in come taxes levied by the same taxation authority on the same tax able entity.
The tax effects of income tax losses, ava able for carry forward, arc rccogn: sod as deferred taxassci, wnen it isprobaolc that future taxable pro fits will be available agai-st which these losses can be set-off
Ad cf it i ona I ta xes t h a t a r i sc f rc m t he d i st ri b u t i o n of d ivi o e n d s by T.h e C om pa ny a re rer.og n i sen d: roct?y i n op u i ty a t1 h c s,a me 11 me a s the liability to pay the related dividend is recognised.
k) Cash and Cash Equivalents
Cash and cash equivalents forthe purpose of cash How state ment include cash .n hand. balances with the banks and short-term invest merits with a n or i g: n a I m at u r ity of th ? ee m o n L hs c r I ess, a nd ace r u ed r’, teres; thereon 1
1
Impairment of norvfinanciat assets
The Company assesses at the re porting date whether the re i&an indication that an asset maybe impaired. if any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An asset’s recoverable a mount is the higher of an asset's or cash- generating lira's ("CGU”) fair valueless costs of disposal ahd itsva ue in use. The recoverable amount is determined for an individual asset, unless the asset docs not generate cash inflows chat are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset Or CCd exceeds I s recoverable a mount, the asset is considered impaired and is written down to its recoverable amount In assessing value rh use, the estimated future cash flows are discounted to their present value using a ore-tax discount rate tha: reflects current market assessments of the time value of money and the risks soecific to the asset, In determining fair value fess costs of disposal, recent market transactions arc taKor into account, r avai able, i no such transactions car. bo identified, an appropriate valuation model it used, Impairment losses a re recognised in statement of prof it and loss.
|