7. Provisions and contingent liabilities
The Company creates a provision when there is present
obligation as a result of a past event that probably
requires an outflow of resources and a reliable estimate
can be made 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, provision is reversed.
Contingent assets are not recognised in the financial
statements. However, contingent assets are assessed
continually and if it is virtually certain that an economic
benefit will arise, the asset and related income are
recognised in the period in which the change occurs.
8. Retirement and other employee benefits
a. Gratuity
The employees of the Company are eligible for gratuity
in accordance with the Payment of Gratuity Act, and
is a Defined Employee Benefit. A defined contribution
plan is a post-employment benefit plan under which the
Company pays specified contributions to a separate
entity. The Company's contribution is recognized as
an expense in the Profit and Loss Statement during
the period in which the employee renders the related
service. The company has paid an amount of H1,00,000/-
to Life Insurance Corporation of India (LIC of India) and
H22,00,000/- to Kotak Mahindra Life Insurance Policies
in the year under consideration. The amount would be
respectively paid to the employees on their retirement.
b. Provident fund
The Company contributes to a recognized provident fund
which is a Defined Contribution Scheme. The Company
makes specified monthly contributions towards
Provident Fund. The contributions are accounted for on
an accrual basis and recognized in the Statement of
Profit and Loss.
c. Performance incentive and compensated absences
The undiscounted amount of short term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized as an
expense during the period when the employees render
the services.
9. Dividends
Final Dividend on equity shares paid for the year ended
31st March, 2024
The Board of Directors, at its meeting held on 08th May,
2024 had proposed the dividend of H7/-per share for
the year ended 31st March, 2024 which was approved
by the shareholders at the Annual General Meeting held
on 27th August 2024.This resulted in a cash outflow of
H74.585 million.
Interim Dividend on equity shares paid during the
financial year 2024-25
The Board of Directors, at its meeting held on 14th October,
2024 had declared and paid the First Interim dividend
of H8/-per share during the financial year 2024-2025.
This resulted in a cash outflow of H85.24 million.
The Board of Directors, at its meeting held on
27th January, 2025 had declared and paid the second
Interim dividend of H4/-per share during the financial
year 2024-2025. This resulted in a cash outflow of H42.62
million.
12. Taxation
Tax expense comprises of current tax (i.e. amount of tax
for the year determined in accordance with the Income
Tax Act, 1961), and deferred tax charge or benefit (i.e.
reflecting the tax effect of timing differences between
accounting income and taxable income for the year).
Current tax
Provision for current tax is recognized based on estimated
tax liability computed after adjusting for allowances,
disallowances and exemptions in accordance with the
Income Tax Act, 1961.
Deferred Tax
Deferred income tax reflects the current period timing
differences between taxable income and accounting
income for the period and reversal of timing differences
of earlier years/period. Deferred tax assets and liabilities
are measured using the tax rates and tax law that have
been enacted or substantively enacted by the Balance
Sheet date.
Deferred tax assets are recognized when there is
reasonable certainty that the asset can be realized in
future, however, where there is unabsorbed depreciation
or carried forward loss under taxation laws, deferred
tax assets are recognized to the extent there is virtual
certainty of realization of the assets.
Deferred tax assets are reviewed as at each balance
sheet date and written down or written up to reflect the
amount that is reasonably/virtually certain, as the case
may be, to be realized.
13. Segment Reporting - IND AS 108
An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses, whose operating
results are regularly reviewed by the company's Chief
Operating Decision Maker (“CODM”) to make decisions
for which discrete financial information is available.
Based on the management approach as defined in Ind
AS 108 - Operating Segments, the CODM evaluates
the Company's performance and allocates resources
based on an analysis of various performance indicators
by business segments and geographic segments.
The Company operates in single segment namely
Provision of financial services to its client.
14. Foreign Currency Transactions
The company has not entered into any Foreign currency
transaction during the year except miniscule payment
for subscription of research materials.
17. Financial Risk Management
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems
are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its
training and management standards and procedures, aims to maintain a disciplined and constructive control environment
in which all employees understand their roles and obligations.
The audit committee oversees how management monitors compliance with the company's risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc
reviews of risk management controls and procedures, the results of which are reported to the audit committee.
A. Market Risk
Market risk is the risk that the fair value or future Cash flows of a financial instrument will fluctuate because of changes
in market prices. The objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimizing the return.
i) Foreign currency risk
The company is not dealing in any foreign exchange therefore foreign currency risk is not applicable to the
company.
ii) Interest rate risk
The Company's interest rate risk arises from interest bearing deposits with bank. Such instruments expose the
Company to fair value interest rate risk. Management believe that the interest rate risk attached to this financial
asset are not significant due to the nature of this financial assets.
iii) Market price risks
The Company is exposed to market price risk, which arises from FVTPL and FVOCI investments.
The management monitors the proportion of these investments in its investment portfolio based on market
indices. Material investments within the portfolio are managed on an individual basis and all buy and sell
decisions are approved by the appropriate authority.
B. Liquidity Risk
Liquidity risk is the risk that the entity will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The entity's approach to managing liquidity is
to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the entity's reputation.
Looking to the company's business activity of broking services, the company has absolutely minimum liquidity risk.
The table below summarises the maturity profile of the Company's financial liabilities based on the contractual
undiscounted payments.
C. Credit Risk
It is risk of financial loss that the Group will incur a loss because its customers or counter parties to financial
instruments fails to meet its contractual obligation.
The Group's financial assets comprise of cash and bank balances, trade receivables, investments and other financial
assets which comprise mainly of deposits.
The maximum exposure to credit risk at the reporting date is primarily from Group's trade receivable.
Following provides exposure to credit risks for trade receivables and loans:
Cash and cash equivalents
The company maintains its Cash and cash equivalents and Bank deposits with banks having good reputation, good
past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.
Trade receivables
Trade receivables of the company are typically unsecured. Credit risk of clients is managed by company by adhering
to the rule and regulations prescribed by NSE, BSE and SEBI.
19. Subsequent Events
The Board of Directors in their meeting held on 12th May, 2025 have proposed a final dividend of H4/- per equity share for
the year ended 31st March, 2025 which is subject to the approval of shareholders at the ensuing Annual General Meeting
and if approved, would result in a cash outflow of approximately H42.62 million.
20. There were no Micro, Small and Medium Enterprises, to whom the Company owed dues, which were outstanding for more
than 45 days as at March 31, 2025. This information as required to be disclosed under the Micro, Small and Medium
Enterprises Development Act, 2006 has been determined to the extent, such parties have been identified on the basis of
information available with the Company.
21. Other Notes On Accounts
(i) Estimated amount of contracts remaining to be executed on Capital Account: H NIL
(ii) We have relied on internal evidences certified by management, in case where external evidences in respect of
expenses are not available.
(iii) Previous year's figures have been regrouped / reclassified and rearranged wherever necessary to correspond with
the current year's classification / disclosure.
The Company has received order u/s 148A (d) of Income Tax Act 1961 for re-opening of scrutiny assessment for AY
2016-17, AY 2017-18 & AY 2019-20 with approval of appropriate authority. The company has filed the writ petitions
against the same in Hon'ble Gujarat High Court. The High Court has granted ad-interim stay against the said proceedings.
The matter is pending with Hon'ble Gujarat High Court. Based on prior experience management is reasonably confident
that no liability will devolve on the company. During the current year, on assessment of facts and status on the above
matter, the company has assessed that possibility of any outflow in settlement is remote. Accordingly, the same has not
been considered as contingent liability.
For WEALTH FIRST PORTFOLIO MANAGERS LIMITED As per our report of even date attached herewith
CIN: L67120GJ2002PLC040636 For, JAIMIN DELIWALA & CO.
Chartered Accountants
Ashish Shah, Directors (DIN : 00089075) Aayush Shah, CS Firm Regd No. 0103861 W
Hena Shah, Directors (DIN : 00089161) Dhiren Parikh, CFO
Rajan Mehta, Directors (DIN : 03548180) JAIMIN DELIWALA
Proprietor
Place : Ahmedabad Place : Ahmedabad M. No. 044529
Date : 12th May, 2025 Date : 12th May, 2025 UDIN: 25044529BMIMJJ6397
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