K) Provisions and contingent liabilities
Provisions are recognised only when there is a present obligation (legal or constructive), as a
result of past events and when a reliable estimate of the amount of obligation can be made
at the reporting date. Provisions are determined based on management estimates required
to settle the obligation at the balance sheet date, supplemented by experience of similar
transactions. These estimates are reviewed at each reporting date and adjusted to reflect the
current best estimates. Provisions are discounted to their present values, where the time value
of money is material. Contingent liability is disclosed for:
• Possible obligations which will be confirmed only by future events not wholly within the
control of the Company or
• Present obligations arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount of
the obligation cannot be made.
Contingent assets are neither recognised nor disclosed except when realisation of income is
virtually certain, related asset is disclosed.
L) Impairment
Impairment of non-financial assets
At each reporting date, the Company assesses whether there is any indication based on
internal/external factors, that an asset may be impaired. If any such indication exists, the
recoverable amount of the asset or the cash generating unit is estimated. If such recoverable
amount of the asset or cash generating unit to which the asset belongs is less than its carrying
amount. The carrying amount is reduced to its recoverable amount and the reduction is treated
as an impairment loss and is recognised in the statement of profit and loss. If, at the reporting
date, there is an indication that a previously assessed impairment loss no longer exists, the
recoverable amount is re-assessed and the asset is reflected at the recoverable amount.
Impairment losses previously recognised are accordingly reversed in the statement of profit
and loss.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss for financial assets.
ECL is the weighted-average of difference between all contractual cash flows that are due to
the Company in accordance with the contract and all the cash flows that the Company expects
to receive, discounted at the original effective interest rate, with the respective risks of default
occurring as the weights. When estimating the cash flows, the Company is required to consider:
All contractual terms of the financial assets (including prepayment and extension) over the
expected life of the assets; and;
Cash flows from the sale of collateral held or other credit enhancements that are integral to
the contractual terms.
Other financial assets
In respect of its other financial assets, the Company assesses if the credit risk on those financial
assets has increased significantly since initial recognition. If the credit risk has not increased
significantly since initial recognition, the Company measures the loss allowance at an amount
equal to 12-month expected credit losses, else at an amount equal to the lifetime expected
credit losses.
M) Operating Segment
The Company has only one business, being trading in financial instruments. The operations of
the Company are in India and accordingly, there are no reportable geographical segments as
per Ind AS 108 "Operating Segments".
N) Dividends
Being appropriately authorized and no longer at the discretion of the entity, provision is made
for the amount of any dividend declared, on or before the end of the reporting period but not
distributed at the end of the reporting period.
Final Dividend is recorded as liability on the date of approval by shareholders in their General
Meeting. Interim Dividend is declared as liability on the date of declaration by Board of
Directors.
O) Events after Reporting Date
Where events occurring after the Balance Sheet date provide evidence of conditions that
existed at the end of the reporting period, the impact of such events is adjusted within the
financial statements. Otherwise, events after the Balance Sheet date of material size or nature
are only disclose
The Company has availed facilities secured by the following:
i) fixed deposits with Axis Bank Limited
ii) mortgage of immovable properties of Algoquant Financials LLP (Holding company) and Devansh Real Estate Private Limited
(entity controlled by key management personnel).
iii) pledge of director's holding in quoted shares of the Company and quoted shares of other companies.
iv) Personal guarantee of the Directors.
v) Corporate guarantee of Algoquant Financials LLP (Holding company) and Devansh Real Estate Private Limited (entity controlled
by key management personnel)
* The Bank Guarantee is issued in the favour of stock exchanges and clearing corporations, in which the Company holds
membership. There is additional 1 year claim period against Bank Guarantee.
Canara Bank Limited
Bank guarantee facility (to meet exchange obligations and margin requirements) :
The bank guarantee facility worth ' 1,250.00 lakh is available to the Company against which following securities are provided:
i) cash margin/fixed deposits
ii) mortgage of immovable property of Nirmal Buildwell Real Estate LLP (a related party)
iii) personal guarantee of Directors.
iv) corporate guarantee of Nirmal Buildwell Real Estate LLP (a related party).
13.3 SEBI Margin trade funding facility (SEBI MTF)
The Company has SEBI MTF facilities from two stock-brokers. The rate of interest ranges between 10.00% - 12.00%. The
facilities are secured by the pledge of underlying investments acquired under such facilities. The borrowing facility is for
a short-term and are repayable on demand. Margin requirement are as per SEBI norms.
13.4 Revolving loan facility
Nature of facility:- Revolving Loan Facility- Loan amount of Rs. 2,000.00 lakh (previous year Rs. 2,000.00 lakh)
Rate of interest:- 12-16% per annum (previous year 12-16% per annum), charged on calendar monthly basis on daily outstanding
basis & payable within next calendar month along with interest thereon.
Security with haircut:-
1. Equitable Mortgage of immovable property of Dhruv Devansh Investment & Finance LLP.
2. Only lender approved/pre-approved scripts or any other security as acceptable to the lender will be considered for calculation
of margin. Haircut of 52% to be maintained during the total loan tenure (calculated at closing price of end of the day at the
lower of BSE/NSE; any deficit is to be provided before opening of the market on the next day).
13.5 From related parties
- the loan (and interest thereon) is unsecured and repayable within 15 days from the end of last day of 11 calendar months from
disbursement. The loan carries an interest of 10% per annum. The Company can pre-pay principal and/or interest without any
charges or penalties.
13.6 During the year the Company has not defaulted in repayment of principal and interest.
g) Loan given and interest income received
The Loan (and interest thereon) is unsecured and repayable within 15 days from the end of last day of 11 calendar
months from disbursement. The loan carries an interest of 10% (previous year 10%) per annum. The Company can
pre-pay principal and/or interest without any charges or penalties. The loans have been utilized by the related parties
their business purposes.
h) Short term borrowings and interest expense
The loan (and interest thereon) is unsecured and repayable within 15 days from the end of last day of 11 calendar
months from disbursement. The loan carries an interest of 10% per annum. The Company can pre-pay principal and/
or interest without any charges or penalties. The borrowings have been utilized by the Company for their business
purposes.
i) The transactions with related parties are made on the terms equivalent to those that prevail in arm's length transactions.
Outstanding balances at the year-end are unsecured, interest free and settlement occurs by Cheque/ RTGS.
35 Employee benefits
Defined benefit obligations
Disclosures pursuant to Ind AS-19 "Employee Benefits"(specified under section 133 of the Companies Act, 2013, read with
Rule 7 of Companies (Accounts) Rules, 2015) are given below :
Gratuity payable to employees
The Company has a defined benefit gratuity plan. Gratuity is payable to all eligible employees of the Company on
retirement or separation from the Company after completion of five years of service with the Company and the maximum
limit is ' 20 Lakh.
The Company's liabilities under the Payment of Gratuity Act, 1972 are determined on the basis of actuarial valuation made
at the end of each reporting period using the projected unit credit method.
The gratuity benefit is provided through unfunded plan and annual contributions are charged to the statement of profit
and loss. Under the scheme, the settlement obligation remains with the Company. The Company accounts for the liability
for future gratuity benefits based on an actuarial valuation. The net present value of the Company's obligation towards the
same is actuarially determined based on the projected unit credit method as at the Balance Sheet date.
The plan is of a final salary defined benefit in nature which is sponsored by the Company and hence it underwrites all the
risks pertaining to the plan. The actuarial risks associated are:
Discount rate
Discount Rate for this valuation is based on government bonds having similar term to duration of liabilities. Due to lack of
a deep and secondary bond market in India, government bond yields are used to arrive at the discount rate.
Mortality
If the actual mortality rate in the future turns out to be more or less than expected then it may result in increase/decrease
in the liability.
Employee turnover/withdrawal rate
If the actual withdrawal rate in the future turns out to be more or less than expected then it may result in increase/decrease
in the liability.
Salary escalation rate
More or less than expected increase in the future salary levels may result in increase/decrease in the liability.
Principal assumptions used for the purposes of the actuarial valuations
Economic assumptions
Discount rate 7.00 % per annum
Salary growth rate 5.00 % per annum
Demographic assumptions
Mortality IALM 2012-14
Withdrawal rate (per annum) 10.00% p.a.
The discount rate is based on the market yields of Government bonds as at the balance sheet date for the estimated term
of the obligation. The salary escalation rate takes into account inflation, seniority, promotion and other relevant factors.
Description of risk exposures:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Group is exposed to
various risks as follow:
a) Salary increases- actual salary increases will increase the plan's liability. Increase in salary increase rate assumption in
future valuations will also increase the liability.
b) Investment risk - as the plan is not funded, there is no investment risk
c) Discount rate : reduction in discount rate in subsequent valuations can increase the plan's liability.
d) Mortality & disability - actual deaths & disability cases proving lower or higher than assumed in the valuation can
impact the liabilities.
e) Withdrawals - actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates
at subsequent valuations can impact Plan's liability.
f) Leaves are encased at the end of the year and not carried forwarded.
g) Post employment benefits are determined by an Independent Actuary on overall basis and hence have not been
separately provided for key management personnel.
36 Leases
Information about lease
The Company has taken office premises at certain locations on operating lease. The agreements are executed for a period
ranging from 24 months to 120 months. The changes in the carrying value of right of use assets for the year ended
31-March-2025 and 31-March-2024 has been disclosed in Note 10. The aggregate depreciation expense on right of use
assets is included under depreciation and amortisation expense in the statement of Profit and Loss.
Right of use assets and leases liabilities
(i) Right of use assets: The Company lease assets primarly consists of: (a) Leasehold building representing
the property taken on lease for warehouse and apartment having lease term between 2 to 9 years.
(b) The Company also has certain lease with lease term of 12 months or less and low value leases.
The Company has applied the short-term and low value recognition exemption of these leases.
(c) The Companies obligation under its lease are secured by the lessors title to the lease assets.
(ii) The weighted average incremental borrowing rate applied to lease liabilities as at 31-March-2025 is 10.00%
(31-March-2024 10.00%).
(B) Fair value hierarchy
Some of the Company's assets and liabilities are measured at fair value for financial reporting purpose. 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
participants at the measurement date regardless of whether that price is directly observable or estimated using another
valuation technique. Financial assets and financial liabilities measured at fair value in the financial statements are grouped
into three levels of a fair value hierarchy under Ind AS categorised into Level 1, 2, or 3 based on the degree to which the
inputs to the fair value measurement are observable and the significance of the inputs to the fair value measurement in its
entirety, which are described as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Valuation techniques used to determine fair value specific valuation techniques used to value financial instruments includes
investment in equity investment valued at quoted closing price on stock exchange / other basis based on materiality.
The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:
The carrying amount of cash and bank balances, trade receivables, loans, trade payables, borrowings and other receivables
and payables are considered to be the same as their fair values due to their short term nature. The fair values of borrowings
(lease liability) and security deposits 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 own
and counterparty credit risk. During the year there were no transfers between level 1 and level 2, and no transfers into and
out of level 3 fair value measurements.
38 Financial risk management objectives and policies
Risk Management
The Company has a system-based approach to risk management, anchored to policies and procedures and internal
financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market
risk, credit risk and liquidity risk) that may arise as a consequence of its investing and financing activities. Accordingly,
the Company's risk management framework has the objective of ensuring that such risks are managed within acceptable
and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also
seeks to drive accountability in this regard.
Financial risk management
Financial Risk Evaluation and Management is an ongoing process within the Company. The Company has a system based
risk management framework to identify, monitor, mitigate and minimise risks arising from financial instruments. The
Company is exposed to market, credit and liquidity risks. The Board of Directors ('Board') oversee the management of these
risks through its Risk Management Policy. The Company's Risk Management Policy has been formulated and approved by
the Board. The Policy articulates on the Company's approach to address uncertainties in its endeavour to achieve its stated
and implicit objectives. It also prescribes the roles and responsibilities of the Company's management, the structure
for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate risks
in order to minimise potential adverse effects on the Company's financial performance. All derivative activities for risk
management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision.
The Board of Directors reviews and agrees on policies for managing each of these risks, which are summarised below. This
note explains the sources of risk which the entity is exposed to and how the entity manages the risk.
(A) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises following types of risk: interest rate risk and currency risk. Financial instruments
affected by market risk include borrowings.
(i) Interest rate risk
The unsecured loans taken during the year were all fixed interest rate borrowings. Further, treasury activities, focused
on managing investments in equity/debt instruments, are centralised and administered under a set of approved
policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only
made within acceptable risk parameters after due evaluation.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value for future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. As at each reporting date, the Company does not have exposure in
foreign currency, therefore it is not exposed to currency risk.
(iii) Price risk
The Company holds investments and measures them at fair value through Profit and Loss. The fair value of investments
of such equity instruments (FVTPL) as at 31-March-2025 is Rs. 3,080.63 lakh (previous year - Rs.1,055.16 lakh).
Accordingly, fair value fluctuations arising from market volatility is recognised in statement of Profit and Loss. The
sensitivity analysis has been presented as below:
(d) During the year ended 31-March-2025, there were no charges or satisfaction yet to be registered with the Registrar
of Companies beyond the statutory period.
(e) During the year ended 31-March-2025, the Company did not have any transactions which had not been recorded in
the books of account that had been surrendered or disclosed as income during the current and previous 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).
(f) The Company does not hold any benami property and no proceedings have been initiated or pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder during the year ended 31-March-2025.
(g) The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31-March-2025.
(h) During the year ended 31-March-2025, the Company is not declared wilful defaulter by any bank or financial
institution or other lender.
(i) During the year ended 31-March-2025, the Company has not advanced or loaned or invested funds to any other
person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary
shall 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 provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.
(j) During the financial year ended 31-March-2023, the Board of Directors of the Company approved the composite
scheme of amalgamation amongst Growth Securities Private Limited ("Demerged Company"), Algoquant Investments
Private Limited ("Amalgamating Company") and Algoquant FIntech Limited ("Resulting Company"/"Amalgamated
Company") in terms of Section 230-232 and other applicable provisions of Companies Act, 2013. The aforesaid
Scheme has been approved and sanctioned by Hon'ble National Company Law Tribunal (NCLT) Ahmedabad Bench
vide order dated October 04, 2024 (Refer note 43).
(k) During the year ended 31-March-2025 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 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 provide any guarantee, security or the like to or on
behalf of the Ultimate Beneficiaries.
(l) During the current and previous year the Company has complied with the requirements of the number of layers
prescribed under Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of Layers)
Rules, 2017.
(m) During the current and previous year the Company has no transactions with the companies struck off under section
248 of Companies Act, 2013.
(n) The Company has granted loans or advances in the nature of loans to another company in which the directors of the
Company are also directors. However, the loans granted were not oustanding as at the year end. The loans have been
disclosed in note 34 of the Financial Statements.
43 Business combination implementation details as per Ind AS 103:
The Board of Directors of the Company in its meeting held on 10-March-2023, had approved the composite scheme of
arrangement (the Scheme), amongst Growth Securities Private Limited ("Demerged Company"), Algoquant Investments
Private Limited ("Amalgamating Company") and Algoquant FIntech Limited ("Resulting Company"/ "Amalgamated
Company") in terms of Section 230-232 and other applicable provisions of Companies Act, 2013. The Scheme inter alia
provides for:
(i) Demerger of the Stock Broking, Self Clearing Membership/ Clearing Membership and Depository Participant Business
Undertaking (as defined in the Scheme) of Growth Securities Private Limited (GSPL)(”Demerged Company") and
vesting of the same with and into Algoquant Fintech Limited (AFL)("Resulting Company"), on a going concern basis;
and
(ii) Amalgamation of Algoquant Investments Private Limited (AIPL)("Amalgamating Company") into and with the
Algoquant Fintech Limited (AFL)("Resulting Company") and subsequent automatic dissolution of amalgamating
company ; and
(iii) Various other matters consequential or otherwise integrally connected herewith.
The aforesaid Scheme has been approved and sanctioned by Hon'ble National Company Law Tribunal (NCLT) Ahmedabad
Bench vide order dated 04-October-2024.
The Scheme has become effective from 01-April-2023 upon filing of the certified copy of the orders passed by NCLT with
the relevant Registrar of Companies on 16-November-2024. The Appointed Date of the Scheme is 01-April-2023.
Accounting treatment
The amalgamation has been accounted in accordance with "Pooling of interest method" as laid down in Appendix C -
'Business combinations of entities under common control' of Ind AS 103 notified under Section 133 of the Companies Act
read with the Companies (Indian Accounting Standards) Rules, 2015. Accordingly, comparatives have been restated to give
effect of the amalgamation from the beginning of the previous year.
The difference between the assets, liabilities and acquired reserves were transferred to Capital Reserves, further
cancellation of investment in Algoquant Investments Private Limited allocated to remaining business and shares issued
pursuant to the Scheme and the revaluation reserves in relation to investment have been transferred to Capital Reserve.
Consequent to the scheme coming into effect and in accordance with the Share Exchange ratio enshrined in the Scheme,
the Company has allotted its 65,47,314 equity shares of Rs. 2/- each (fully paid-up) to the equity shareholders of Growth
Securities Private Limited and Algoquant Investments Private Limited (21,81,000 equity shares were issued for Demerger
of the Stock Broking, Self Clearing Membership/ Clearing Membership and Depository Participant Business Undertaking
(as defined in the Scheme) of Growth Securities Private Limited (GSPL) into Algoquant Fintech Limited AFL and 43,66,314
equity shares were issued on the Amalgamation of Algoquant Investments Private Limited (AIPL) into and with the
Algoquant Fintech Limited (AFL)).
In addition, pursuant to the scheme, the authorised equity share capital of the Company stands increased, by Rs. 100 Lakh,
being the authorised equity share capital of Algoquant Investments Private Limited.
(A) Detail of adjustment of assets and liabilities along with reserves of erstwhile Algoquant Fintech Limited and consequential
adjustment to Capital Reserves as on the appointed and effective date of 01-April-2023:
45 Subsequent events
There were no significant events after the end of the reporting period which require any adjustment or disclosure in the
financial statements.
46 The standalone financial statements of the Company for the year ended 31-March-2025 were approved for issue in
accordance with a resolution of the board of directors on 30-May-2025.
The accompanying notes are an integral part of the standalone financial statements.
As per our report of even date.
For O P Bagla & Co. LLP For and on the behalf of the Board of Directors
Chartered Accountants Algoquant Fintech Limited
Firm Registration No : 000018N/N500091 Sd- Sd-
Dhruv Gupta Devansh Gupta
Director Managing Director
DIN: 06920431 DIN: 06920376
Sd- Sd- Sd-
Deepanshu Saini Yogesh Gusain Barkha Sipani
Partner Chief Financial Officer Company Secretary
Membership No : 510573 BGGPG8044R LFOPS3524R
Place: New Delhi
Date: 30-May-2025
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