2.11 Provisions, contingent liabilities and contingent assets
Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event, and it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a
reliable estimate of the amount of the obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect
the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation,
the provision is reversed. Provisions are not recognised for future operating losses.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at
the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability.
When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is
remote, no provision is made. The disclosure of contingent liability is made when there is a possible obligation or present
obligation that may, but probably will not, require an outflow of resources. The Company also discloses present obligation
for which a reliable estimate cannot be made as a contingent liability. Contingent Liabilities are reviewed at each Balance
Sheet date.
A contingent asset is disclosed where an inflow of economic benefit is probable. When some or all economic benefits
required to settle a provision are expected to be recovered from third party, a receivable is recognised as an asset, if it is
virtually certain that reimbursement will be received and the amount can be measured reliably.
2.12. Foreign currency translation
(i) Functional and presentation currency
Items included in financial statements of the Company are measured using the currency of the primary economic
environment in which the entity operates ('the functional currency'). The financial statements are presented in Indian rupee
(INR).
(ii) Translation and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in
profit or loss.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported
as part of the fair value gain or loss. For example, translation differences on nonmonetary assets and liabilities such as
equity instruments
held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss and
translation differences on non-monetary assets such as equity investments classified as FVOCI are recognised in other
comprehensive income.
2.13 Repossessed collateral
Repossessed collateral represents financial and non-financial assets acquired by the Company in settlement of overdue
loans. The assets are initially recognised at fair value when acquired and included in premises and equipment, other financial
assets, investment properties or inventories within other assets depending on their nature and the Company's intention in
respect of recovery of these assets and are subsequently remeasured and accounted for in accordance with the accounting
policies for these categories of assets.
2.14 Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months
after the end of the period in which the employees render the related service are recognised in respect of employees'
services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities
are settled.
(ii) Post-employment obligations
The Company operates the following post-employment schemes:
(a) Gratuity;
(b) Superannuation fund; and
(c) Provident fund
Defined benefit plans
Gratuity obligations: The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is
the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The
defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated
future cash outflows by reference to market yields at the end of the reporting period on government bonds that have
terms approximating to the terms of the related obligation. The estimated future payments which are denominated in a
currency other than INR, are discounted using market yields determined by reference to high-quality corporate bonds that
are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the
related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the
fair value of plan assets. This cost is included in employee benefit expense in the statement of profit or loss.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised
in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the
statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are
recognised immediately in profit or loss as past service cost.
Defined contribution plans
Superannuation fund: Contribution to Superannuation Fund, a defined contribution scheme, is made at pre-determined
rates to the Superannuation Fund, Life Insurance Corporation and is charged to the Statement of Profit or loss. There are no
other obligations other than the contribution payable to the Superannuation Fund.
Provident fund: The Group pays provident fund contributions to publicly administered provident funds as per local
regulations. The Group has no further payment obligations once the contributions have been paid. The contributions
are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when
they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future
payments is available.
(iii) Other long-term employee benefit obligations
Leave encashment: The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of
the period in which the employees render the related service. They are therefore measured as the present value of expected
future payments to be made in respect of services provided by employees up to the end of the reporting period using the
projected unit credit method. The benefits are discounted using the appropriate market yields at the end of the reporting
period that have terms approximating to the terms of the related obligation. Re-measurements as a result of experience
adjustments and changes in actuarial assumptions are recognized in the statement of profit or loss.
2.15 Fair value measurement
The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available
to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within
the fair value hierarchy into Level I, Level II and Level III based on the lowest level input that is significant to the fair value
measurement as a whole. For a detailed information on the fair value hierarchy.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.
2.16 Derivative financial instruments
Hedge accounting
The Company makes use of derivative instruments to manage exposures to interest rate risk and foreign currency risk. In
order to manage particular risks, the Company applies hedge accounting for transactions that meet specified criteria.
At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which
the Company wishes to apply hedge accounting and the risk management objective and strategy for undertaking the
hedge. The documentation includes the Company's risk management objective and strategy for undertaking hedge, the
hedging/economic relationship, the hedged item or transaction, the nature of the risk being hedged, hedge ratio and how
the Company would assess the effectiveness of changes in the hedging instrument's fair value in offsetting the exposure to
changes in the hedged item's cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in
achieving offsetting changes in cash flows and are assessed on an on-going basis to determine that they actually have been
highly effective throughout the financial reporting periods for which they were designated.
Cash flow hedge
Hedges that meet the criteria for hedge accounting and qualify as cash flow hedges are accounted as follows :
A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated
with a recognised asset or liability and could affect profit or loss.
For designated and qualifying cash flow hedges, the effective portion of the cumulative gain or loss on the hedging instrument
is initially recognised directly in OCI within equity (cash flow hedge reserve). The ineffective portion of the gain or loss on
the hedging instrument is recognised immediately as finance cost in the Statement of Profit and Loss.
When the hedged cash flow affects the Statement of Profit and Loss, the effective portion of the gain or loss on the hedging
instrument is recorded in the corresponding income or expense line of the Statement of Profit and Loss.
When a hedging instrument expires, is sold, terminated, exercised, or when a hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss recognised in OCI is subsequently transferred to the Statement of Profit and Loss
on ultimate recognition of the underlying hedged forecast transaction. When a forecast transaction is no longer expected to
occur, the cumulative gain or loss that was reported in OCI is immediately transferred to the Statement of Profit and Loss.
2.16 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker.
The power to assess the financial performance and position of the Company and make strategic decisions is vested in the
executive director who has been identified as the chief operating decisions maker.
The Company is engaged in investments in share & securities, credit & alternative asset business , Rental (Other activity)
and all other activities revolve around the main business of the Company. Further, all activities are conducted within India.
21. Other Equity (Contd.)
Securtites Premium:
Securtites Premium account is used to record the premium received on issue of shares. The reserve will be utilised in accordance
with the provisions of the companies act, 2013.
Capital Redemption Reserve:
The capital redemption reserve is created to be utilised towards redemption of preference shares. The reserve will be utilised in
accordance with the provisions of the companies act, 2013.
Statutory Reserve Fund:
The Company created a reserve pursuant to section 45 IC the Reserve Bank of India Act, 1934 by transferring amount not less
than twenty percent of its net profit every year as disclosed in the Statement of Profit and Loss and before any dividend is declared.
Retained Earnings:
Retained Earnings represents surplus / accumuted earnings of the company and are available for distribution to the shareholders.
Other Comprehensive Income:
Other comprehensive income consists of gains/losses of equity financial instruments carried through fair value through other
comprehensive income.
C. Demand in respect of income tax matters for which appeal & Rectification is pending is Rs. 134.08 Crores(previous year
117.47 Crores ). This is disputed by the company and hence not provided for in the books of account. The company has paid
20% of the tax liability amounting to Rs. 2.85 Crores for the Assessment Year 2022-23.
38. Segment Information
As per IND AS 108 para 4, segment information has been disclosed in consolidated financial statements, hence no separate
disclosure has been given in standalone financial statements of the company.
39. Due to Micro, Small and Medium Enterprises
i) The classification of the suppliers under Micro, Small and Medium Enterprises Development Act, 2006 made on the basis
of information made available to the company.
ii) Disclosure requirement as required made under Micro, Small and Medium Enterprises Development Act, 2006 is
as follows:
43. LEASE
The Company as a Lessee
The Company has adopted Ind AS 116 'Leases' with the date of initial application being April 01, 2024. The determination
of whether an arrangement is a lease, or contains a lease, is based on the substance of the arrangement and requires an
assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets or whether the
arrangement conveys a right to use the asset. A contract is, or contains, a lease if the contract conveys the right to control the
use of an identified asset for a time in exchange for a consideration. The Company , at the inception of a contract, assesses
whether the contract is a lease or not lease. The Company recognises a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and
an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is
located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method
from the commencement date to the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the Companies incremental borrowing rate at the transition date in case of leases existing as on the
date of transition date and in case of leases entered after transition date, incremental borrowing rate as on the date of lease
commencement date. In case of existing leases, the said date would be the date of transition. It is remeasured when there is
a change in future lease payments arising from a change in a rate, if the Company changes its assessment of whether it will
exercise an extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment
is made to the carrying amount of the right-of-use asset, or is recorded in Statement of Profit and Loss if the carrying amount
of the right-of-use asset has been reduced to zero. The Company has elected not to recognise right-of-use assets and lease
liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Company
recognises the lease payments associated with these leases as an expense over the lease term. The Company's lease asset
class consist of leases for office premises.
1. In case of trade receivables, cash and cash equivalents, trade payables, short term borrowings and other financial
assets and liabilities it is assessed that the fair values approximate their carrying amounts largely due to the short-term
maturities of these instruments.
2. The fair values of the financial assets and financial liabilities included above have been determined in accordance with
generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the
discount rate that reflects the credit risk of counterparties.
Fair Value hierarchy
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either
observable or unobservable and consists of the following three levels:
Level 1 hierarchy - Includes Financial Instruments measured using quoted prices in the active market.
Level 2 hierarchy - The Fair value of Financial Instruments that are not traded in an active market, is determined using
valuation techniques which maximize the use of observable market data.
Level 3 hierarchy - Inputs are not based on observable market data. Fair values are determined in whole or in part using a
valuation model based on assumptions that are neither supported by prices from observable current market transactions in
the same instrument nor are they based on available market data.
B. Measurement of fair values
Financial instruments fair valued under Level 3 hierarchy are measured using Market multiples method.
The carrying amount of trade receivables, cash and cash equivalents ,other financial assets, trade payables and other
financial liabilities are considered to be the fair value due to short term nature.
There are no transfers between level 1 , level 2 and level 3 during the year.
2) Assignment Deal:
During the year ended March 31, 2025 and March 31, 2024, there were no assignment deals undertaken by the Company.
3) Transferred financial assets that are derecognised in their entirety but where the Company has
continuing involvement
The Company has not transferred any assets that are derecognised in their entirety where the Company continues to have
continuing involvement.
46. Capital risk management
The Company actively manages its capital base to cover risks inherent to its business and meet the capital adequacy
requirement of RBI. The adequacy of the Company's capital is monitored using, among other measures, the regulations issued
by RBI.
(i) Capital management
The primary objectives of the Company's capital management policy are to ensure that the Company complies with
externally imposed capital requirements and maintains strong credit ratings and healthy capital ratios in order to support
its business and to maximise shareholder value. No changes have been made to the objectives, policies and processes
from the previous years. However, they are under constant review by the board.
The Company manages its capital structure and makes adjustments to it according to changes in economic conditions
and the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Company may adjust
the amount of dividend payment to shareholders, return capital to shareholders or issue capital securities. No changes
have been made to the objectives, policies and processes from the previous years. However, they are under constant
review by the board.
(ii) Regulatory Capital
The Company is subject to the capital adequacy requirements of the Reserve Bank of India (RBI). Under RBI's capital
adequacy guidelines, the Company is required to maintain a capital adequacy ratio consisting of Tier I and Tier II Capital.
The minimum capital ratio as prescribed by RBI guidelines and applicable to the Company, consisting of Tier I and Tier II
capital, shall not be less than 15 percent of its aggregate risk weighted assets on-balance sheet and of risk adjusted value
of off-balance sheet. The Tier I capital, at any point of time, shall not be less than 10%.
The following additional information is disclosed in terms of the Master Direction - Reserve Bank of India (Non-Banking
Financial Company -Scale Based Regulation) Directions 2023, issued by Reserve Bank of India vide circular no. RBI/
DoR/2023-24/106 DoR.FIN.REC. NO.45/03.10.119/2023-24 October 19, 2023 :
“Tier I Capital” means owned fund as reduced by investment in shares of other non-banking financial companies and
in shares, debentures, bonds, outstanding loans and advances including hire purchase and lease finance made to and
deposits with subsidiaries and companies in the same group exceeding, in aggregate, ten per cent of the owned fund.
“Owned Fund” means paid up equity capital, preference shares which are compulsorily convertible into equity, free
reserves, balance in share premium account and capital reserves representing surplus arising out of sale proceeds of
asset, excluding reserves created by revaluation of asset, as reduced by accumulated loss balance, book value of intangible
assets and deferred revenue expenditure, if any
Tier II capital” includes the following -
a. preference shares other than those which are compulsorily convertible into equity;
b. revaluation reserves at discounted rate of fifty five percent;
c. Generalprovisions(includingthatforStandardAssets)andlossreservestotheextentthesearenotattributabletoactual
diminution in value or identifiable potential loss in any specific asset and are available to meet unexpected losses, to the
extent of one and one fourth percent of risk weighted assets. "
d. hybrid debt capital instruments; and
e. subordinated debt;
to the extent the aggregate does not exceed Tier I capital
Aggregate Risk Weighted Assets -
Under RBI Guidelines, degrees of credit risk expressed as percentage weightages have been assigned to each of the
on-balance sheet assets and off- balance sheet assets. Hence, the value of each of the on-balance sheet assets and off-
balance sheet assets requires to be multiplied by the relevant risk weights to arrive at risk adjusted value of assets. The
aggregate shall be taken into account for reckoning the minimum capital ratio.
i) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority,
promotion and other relevant factors.
ii) General Descriptions of significant defined plans:
a) Gratuity Plan
Gratuity is payable to all eligible employees of the Company on superannuation, death and permanent disablement,
in terms of the provisions of the Payment of Gratuity Act 1972 or as per the Company's Scheme whichever is
more beneficial.
iii) The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occuring at the end reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the projected benefit
obligation as it is unlikely that the change in assumtions would occur in isolation of one another as some of the assumtions
may be corelated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has
been calculated using the projected unit credit meathod at the end of the reporting period, which is the same method as
applied in calculating the projected benefit obligation as recognised in the balance sheet.
iv) Characteristics of defined benefit plan
The entity has a defined benefit gratuity plan in India (funded). The entity's defined benefit gratuity plan is a final salary
plan for employees, which requires contributions to be made to a separately administered fund.
The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the
administration of the plan assets and for the definition of the investment strategy.
v) Gratuity is a defined benefit plan and entity is exposed to the Following Risks:
Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the
liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets
depending on the duration of asset.
Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of
members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.
47. Employee benefits (Contd.)
Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan
asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of
investments in government securities, and other debt instruments.
Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines
of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does
not have any longevity risk.
Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and
a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow
regulatory guidelines.
48. Related party transactions
In accordance with the requirements of Ind AS 24, on related party disclosures, name of the related party, related party
relationship, transactions and outstanding balances including commitments where control exists and with whom transactions
have taken place during reported year, are as detail below:
A. List of Related Parties and their relationship:
i) Subsidiaries
1 Open Elite Developers Limited (Formerly known as "Reliance Commercial Finance Limited") - Wholly owned
subsidiary company
2 Authum Asset Management Company Private Limited - Wholly owned subsidiary company - W.e.f. 11th
January, 2024.
3 Authum Real Estate Private Limited - Wholly owned subsidiary company - W.e.f. 15th January, 2024 and ceased to
be an associate company w.e.f. 31st May, 2024.
ii) Associate Company
1 Michigan Engineers Private Limited - Associate company w.e.f. 25th May, 2023 and ceased to be an associate
company w.e.f. 27th July, 2023.
iii) Enterprise in which company have significant influence
1 Nitco Limited
2 Prataap Snacks Limited
iv) Key Managerial Personnel and their Relatives
1 Mr. Amit Dangi, Whole Time Director
2 Mr. Divy Dangi, Whole Time Director, w.e.f August 7, 2024)
3 Mr. Sanjay Dangi, Director (Ceased w.e.f. September 03, 2024)
4 Mrs. Alpana Dangi, Promotor and Director
5 Mr. Akash Suri, Whole Time Director and Group Chief Executive Officer, (w.e.f. August 07,2024)
6 Mr. Deepak Dhingra, Chief Financial Officer (Ceased w.e.f. October 31, 2024)
7 Mr. Hitesh Vora, Company Secretary (Ceased w.e.f. January 16, 2025)
8 Mr. Amit Kumar Jha, Chief Financial Officer, w.e.f November 01, 2024
9 Ms. Avni Shah, Company Secretary, w.e.f January 17, 2025
49. Risk management objectives and policies (Contd.)
(c) Credit risk
Credit risk is the risk of financial loss arising out of a customer or counterparty failing to meet their repayment obligations
to the Company. It has a diversified lending model and focuses on six broad categories viz: (i) consumer/retail lending, (ii)
SME lending, (iii) infra lending, (iv) micro financing, and (vi) other commercial lending. The Company assesses the credit
quality of all financial instruments that are subject to credit risk. The company has manged the credit risk by diversifying
into retail segment in recent years. In SME lending also, focus has been on the products with lower ticket size.
Classification of financial assets under various stages
The Company classifies its financial assets in three stages having the following characteristics:
- Stage 1: unimpaired and without significant increase in credit risk since initial recognition on which a 12 months
allowance for ECL is recognised;
- Stage 2: a significant increase in credit risk since initial recognition on which a lifetime ECL is recognised;
- tage 3: objective evidence of impairment, and are therefore considered to be in default or otherwise credit impaired
on which a lifetime ECL is recognised.
Unless identified at an earlier stage, all financial assets are deemed to have suffered a significant increase in credit
risk when they are 30 days past due (DPD) and are accordingly transferred from stage 1 to stage 2. For stage 1 an ECL
allowance is calculated based on a 12 months Point in Time (PIT) probability weighted probability of default (PD). For
stage 2 and 3 assets a life time ECL is calculated based on a lifetime PD.
The Company has calculated ECL using three main components: a probability of default (PD), a loss given default (LGD)
and the exposure at default (EAD).
(ii) Collateral Valuation
The nature of products across these broad categories are either unsecured or secured by collateral. Although collateral is an
important risk mitigant of credit risk, the Company's practice is to lend on the basis of assessment of the customer's ability to
repay rather than placing primary reliance on collateral. Based on the nature of product and the Company's assessment of the
customer's credit risk, a loan may be offered with suitable collateral. Depending on its form, collateral can have a significant
financial effect in mitigating the Company's credit risk.
50. A. Fair value Measurment
a) Financial instruments - fair value and risk management
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the
principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price),
regardless of whether that price is directly observable or estimated using a valuation technique.
Valuation methodologies adopted
Fair values of financial assets, other than those which are subsequently measured at amortised cost, have been arrived at
as under:
(i) Fair values of investments held for trading under FVTPL have been determined under level 1 using quoted market prices
of the underlying instruments;
(ii) Fair values of strategic investments in equity instruments designated under FVOCI have been measured under level 3 at
fair value based on a discounted cash flow model.
(iii) Fair values of other investments under FVOCI have been determined under level 1 using quoted market prices of the
underlying instruments;
(iv) Fair value of loans held under a business model that is achieved by both collecting contractual cash flows and partially
selling the loans through partial assignment to willing buyers and which contain contractual terms that give rise on
specified dates to cash flows that are solely payments of principal and interest are measured at FVOCI. The fair value of
these loans have been determined under level 3.
The Company has determined that the carrying values of cash and cash equivalents, bank balances, trade receivables,
short term loans, floating rate loans, investments in equity instruments designated at FVOCI, trade payables, short term
debts, borrowings, bank overdrafts and other current liabilities are a reasonable approximation of their fair value and
hence their carrying value are deemed to be fair value.
b) Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are:
(a) recognised and measured at fair value and
(b) measured at amortised cost and for which fair values are disclosed in the financial statements
The Company determines fair values of its financial instruments according to the following hierarchy:
Level 1: valuation based on quoted market price: financial instruments with quoted prices for identical instruments in active
markets that the Company can access at the measurement date.
Level 2: valuation based on using observable inputs: financial instruments with quoted prices for similar instruments in active
markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using
models where all significant inputs are observable.
Level 3: valuation technique with significant unobservable inputs: - financial instruments valued using valuation techniques
where one or more significant inputs are unobservable. Equity investments designated under FVOCI has been valued using
discounted cash flow method.
Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- Listed equity investments (other than subsidiaries and associates - Quoted bid price on stock exchange
- Mutual fund - net asset value of the scheme
- Debentures or bonds - based on market yield for instruments with similar risk / maturity, etc.
- Private equity investment fund - price to book value method and
- Other financial instruments - discounted cash flow analysis.
All of the resulting fair value estimates are included in level 2 except for unlisted equity securities, a contingent consideration
receivable and certain derivative contracts, where the fair values have been determined based on present values and the
discount rates used were adjusted for counterparty or own credit risk.
For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts,
which are net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash and balances,
Trade receivables, cash and cash equivalents, bank deposits and trade payables. Such amounts have been classified as Level 3
on the basis that no adjustments have been made to the balances in the balance sheet.
The fair values for loans were calculated based on cash flows discounted 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.
The fair values of debt securities, borrowing other than debt securities, subordinate liability are based on discounted cash
flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of
unobservable inputs, including own credit risk.
For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
(vi) Institutional set-up for liquidity risk management
Further, the Company's risk management function is carried out by the Risk Management Committee. The Risk Management
Committee evaluates financial risks and the appropriate governance framework for the Company. The Risk Management
Committee provides assurance to the Board that the Company's financial risk activities are governed by appropriate policies
and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and
risk objectives.
52. Disclosure as per the circular no.RBI/2019-20/88 DOR.NBFC (PD) CC.No.102/03.10.001/2019-20
dated November 04, 2019 issued by Reserve Bank of India on "Liquidity Coverage Ratio (LCR)
RBI has issued final guidelines on Liquidity Risk Management Framework for Non-Banking Financial Companies and Core
Investment Companies on November 04, 2019. As per the said guidelines, LCR requirement shall be binding on all non¬
deposit taking systemically important NBFCs with asset size of ff 10,000 crore and above from December 1, 2020, with the
minimum LCR to be 50%, progressively increasing, till it reaches the required level of 100%, by December 1, 2024, as per the
time-line given below:
4. Derivatives
Forward Rate Agreement (FRA) / Interest Rate Swap (IRS)
The Company has not entered into any Forward Rate Agreement/Interest Rate Swap transactions during the current
financial year and in the previous financial year. Hence disclosures relating to Forward Rate Agreement/Interest Rate Swap
are not applicable.
Exchange Traded Interest Rate (IR) Derivative
The Company has not entered into any Exchange Traded Interest Rate (IR) Derivatives transactions during the current
financial year and in the previous financial year. Hence disclosures relating to Exchange Traded Interest Rate (IR) Derivatives
are not applicable.
Disclosures on Risk Exposure in Derivatives
A. Qualitative Disclosure
The Company has Board approved risk management policy for capital market exposure including derivatives contract
trading. Risk Management Team independently calculates sensitivities and revalues portfolio on daily basis and ensures
that risk limits are adhered on daily basis. Market risk limits have been established at portfolio level.
The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for
material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required
under any law/ accounting standards there are no foreseeable losses on such long term contracts (including derivative
contracts) has been made in the books of accounts (Refer "Material Accounting Policy" point 1).
Notes :
1 During the year the company has not breached the Single Borrower Limit (SBL) / Group Borrower Limit (GBL) through
loans sanctioned/ disbursed to its borrowers. Hence, the disclosure is reported as Nil.
9. Unsecured Advances
The Company has not financed any unsecured advances against intangible securities such as rights, licenses, authority etc as
collateral security.
10. Exposure to group companies engaged in real estate business
The Company has no exposure to group companies engaged in real estate business in current and previous year.
11. Miscellaneous
a. Registration obtained from other financial sector regulators
In addition to the registration with RBI as NBFC-ML, the Company has not obtained any registration/ licence /
authorisations by whatever name called from other financial sector regulators.
b. Disclosure of Penalties imposed by RBI and other regulators
During the previous year, penalties were imposed by both BSE & NSE of Rs. 5000/- each for delay in filing disclosure
under regulation 23(9) of SEBI (LODR) Regulations 2015 for half year ended March 31,2024.
The Company had filed the disclosure under regulation 23(9) of SEBI (LODR) Regulations 2015 for half year ended March
31,2024 and has also paid a penalty of Rs. 5000/- to each stock exchanges.
c. Related Party Transactions
Details of all material transactions with related parties has been given in Notes No 46 of the standalone financial statements.
d. Ratings assigned by rating agencies and migration of ratings during the year
The Company has obtained Credit rating from CRISIL for Long Term Bank Facilities. The rating assigned is "CRISIL A-/
Stable.
2 Revaluation of investment property
The Company has not revalued its investment property during the current or previous year.
3 Revaluation of property, plant and equipment
The Company has not revalued its property, plant and equipment during the current or previous year.
4 Revaluation of intangible assets
The Company has not revalued its intangilbe assets during the current or previous year.
5 Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties
The company has not granted any loan to promotors, directors & KMPs that are repayable on demand or without specifying
any terms or period of repayment, however, the company has granted loan to related parties specifying the terms of
repayment. The outstanding amount from related parties is Rs. 58.31 Crores.
6 The company does not have any asset as capital work-in progress as at 31st March, 2025
7 Intangible asset under development ageing schedule. (Refer note no 10)
8 Details of Benami Property held
No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
9 Borrowings from banks or financial institutions on the basis of security of current asset
During the year, the Company has borrowed funds from financial institutions on the basis of pledging shares & securities. The
company is not required to file quarterly returns or statements with financial institutions.
10 Wilful Defaulter
The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in the financial
years ended March 31, 2025 and March 31, 2024.
11 Relationship with Struck off Companies
The Company does not have any transactions with the companies struck off under section 248 of Companies Act, 2013 during
the year ended March 31, 2025 and March 31, 2024.
12 Registration of charges or satisfaction with Registrar of Companies (ROC)
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
13 Compliance with number of layers of companies
The Company has two wholly owned subsidiaries as at March 31, 2025 and three wholly owned subsidiary as at March
31, 2024.
15 There were no scheme of arrangement approved by the compenent authority during the year in terms of section 232 to 237
of The Companies Act, 2013
16 Utilisation of Borrowed funds and share premium
A. During the year, the Company has not advanced or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (Ultimate Beneficiaries); or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
B. During the year, the Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries); or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
17 Undisclosed income
There is no transaction surrendered or disclosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded in the books of accounts
18 Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
60. Events after reporting date
There have been no events after the reporting date.
61. The Code on Social Security, 2020 (the Code) has been enacted, which would impact contribution by the Company towards
Provident Fund and Gratuity. The effective date from which changes are applicable is yet to be notified and the rules
thereunder are yet to be announced. The actual impact on account of this change will be evaluated and accounted for when
notification becomes effective.
62. Rs. 0.00 in Standalone Financial Statement indicates amount below Rs.50,000.
63. Previous year figures have been regrouped / rearranged wherever necessary.
64. The above financial statements have been reviewed by audit committee and subsequently approved by Board of Directors
at its meeting held on 12th May, 2025.
The accompanying notes form an integral part of the standalone financial statements.
As per our report of even date attached
For Maharaj N R Suresh & Co. LLP For APAS & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants Chartered Accountants Authum Investment & Infrastrucuture Limited
FRN No. 001931S/000020 FRN No. 000340C/C400308
K V Srinivasan Rajeev Ranjan Divy Dangi Amit Dangi
Partner Partner Whole Time Director Whole Time Director
Membership No. 204368 Membership No. 535395 DIN: 08323807 DIN: 06527044
Place: Mumbai Akash Suri Amit Kumar Jha
Date: 12th May, 2025 WTD & CEO Chief Financial Officer
DIN:09298275
Place: Mumbai Avni Shah
Date: 12th May, 2025 Company Secretary
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