A Oneindia Venture
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అకౌంట్స్ గమనికలుUTI Asset Management Company Ltd.
Mar 31, 2025
Contingent liabilities are disclosed when there is a
possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not
wholly within the control of the Company or a present
obligation that arises from past events where it is either
not probable that an outflow of resources will be required
to settle the obligation or a reliable estimate of the amount
cannot be made.
A contingent asset is not recognised but disclosed in the
financial statements where an inflow of economic benefit
is probable.
Commitments includes the amount of purchase order
(net of advance) issued to counterparties for supplying/
development of assets and amounts pertaining to
Investments which have been committed but not called for.
Provisions, contingent assets, contingent liabilities and
commitments are reviewed at each Balance Sheet date.
2.14 Earnings per share
a) Basic earnings per share
Basic earnings per share is computed by dividing
profit after tax attributable to the equity shareholders
by the weighted average number of equity shares
outstanding during the reporting period.
b) Diluted earnings per share
Dilutive earnings per share is computed and disclosed
using the weighted average number of equity and
dilutive equity equivalent shares outstanding during
the period, except when the results would be anti¬
dilutive.
2.15 Operating segments
An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses, including revenues
and expenses that relate to transactions with any of the
Company''s other components, and for which discrete
financial information is available. All operating segments''
operating results are reviewed regularly by the Chief
Operating Decision Maker, in deciding how to allocate
resources and assessing performance (Refer Note no 42).
2.16 Dividends on equity shares
The Company recognises a liability to make cash
distributions to equity shareholders when the distribution
is authorised and the distribution is no longer at the
discretion of the Company. As per the corporate laws
in India, a distribution is authorised when it is approved
by the shareholders except in case of interim dividend. A
corresponding amount is recognised directly in equity.
2.17 Cash and cash equivalents
The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk
of change in value and having original maturities of
three months or less from the date of purchase, to be
cash equivalents. Cash and cash equivalents consist of
balances with banks which are unrestricted for withdrawal
and usage.
2.18 Recent Pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standard
or amendments to the existing standards. There is no such
notification which would have been applicable from 1st
April 2025.
2.13 Provisions and contingencies
Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the
amount of the obligation.
Nature and purpose of reserve
a) General reserve
General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general
reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income,
items included in the general reserve will not be reclassified subsequently to profit or loss.
b) Securities premium account
Securities Premium is used to record the premium (amount received in excess of face value of equity shares) on issue of equity
shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions
of the Companies Act, 2013.
c) Share option outstanding account
The Share options outstanding account is used to recognise the grant date fair value of options issued to employees under share
based payments arrangement over the vesting period.
d) Share application money pending allotment
Until the shares are allotted, the amount received on account of options exercised by employees under share based payments
arrangement are shown under the share application money pending allotment.
e) Retained earnings
Retained earnings are the profits that the Company has earned to date, less any dividends or any other distribution paid to the
shareholders, net of utilisation as permitted under applicable regulations.
f) Other comprehensive income
Other comprehensive income comprises of remeasurement of the net defined benefit obligation, which includes actuarial gains
& losses, the return on plan assets. The income tax related to the same also recognised in other comprehensive income.
Contingent liabilities:
A. To the extent not provided for
(i) Estimated liability for the Consumer Disputes Redressal Forum cases pending in courts for the dispute pertaining to the
schemes of UTI Mutual Fund is '' 0.47 crore (Previous year '' 0.90 crore). The Company is hopeful of a positive outcome
in its favour and therefore no provision has been made.
(ii) W.r.t. assessment Year 2009-2010, an order has been passed raising a demand of '' 5.26 crore (Previous year '' 5.26
crore). The Company has filed an Appeal against the order before Income Tax Appellate Tribunal (''ITAT''), the decision of
which is passed in the favour of the Company and the effect of the order passed is awaited.
(iii) W.r.t. assessment Year 2010-201 1, an order has been passed raising a demand of '' 2.28 crore (Previous year '' 2.28
crore). The Company has filed an Appeal against the order before Commissioner of Income Tax (Appeal) (''CIT-A''). The
Company is hopeful of a positive outcome in its favour and therefore no provision has been made.
(iv) Ex-Registrars & Transfer Agents (''RTA'') filed a suit against the Company, Administrators of Specified Undertaking of Unit
Trust of India (''SUUTI'') and UTI Trustee Company Private Limited (''Trustee Company'') in the year 2003 before Hon''ble
Bombay High Court seeking recovery of unpaid dues '' 3.19 crore for services provided as a registrar and transfer agent
and dematerialisation services, in relation to certain schemes of UTI Mutual Funds and SUUTI. The Trustee Company
and SUUTI have filed a cross suit against RTA before Hon''ble Bombay High Court for '' 1 .37 crore for deficiencies in
the services. Hon''ble Bombay High Court directed both the parties to frame the issue for arguments. The case has been
transferred from Bombay High Court to City Civil Court, Mumbai vide order dated 29.01.2024. The Company is hopeful
of a positive outcome in its favour and therefore no provision has been made. Contingent Liability is for '' 1.82 crore.
B. Other Contingent liabilities where financial impact is not ascertainable, comprises:
(i) A case was filed by All India UTI AMC Officers'' Association (''AIUTEA'') against the Company in respect of leftover Class
III and Class IV staff on date demanding pension option. The honorable presiding officer, CGIT, Mumbai pronounced
the verdict in favour of AIUTEA dated 28th February 2007 for 3rd pension option. The matter was taken with Government
of India, which advised the Company to seek legal opinion. The Company filed an appeal in the Hon''ble Bombay High
Court challenging the order of CGIT. Hon''ble Bombay High Court vide its order dated 5th May 201 7 allowed the appeal
of the Company by quashing and setting aside the order of CGIT. AIUTEA filed a Review Petition to review the order dated
5th May 201 7 of Hon''ble Justice K K Tated in WP no. 1 792 of 2007 filed by the Company. Hon''ble Bombay High Court
vide its order dated 31st August 201 7 rejected the review petition of the petitioner stating that ''the only endeavor is to
re-argue the entire matter, which is not permitted''. AIUTEA has filed a Special Leave petition before Hon''ble Supreme Court
of India challenging the order of Hon''ble Bombay High Court. The matter has not yet been heard Hon''ble Supreme Court
of India.
(ii) A case has been filed by UTI Retired and VSS Employees Social Association against the Company before Hon''ble
Bombay High Court for giving a fresh opportunity for pension option after pay revision 2001 and arrears of pension with
12% interest on the same. The case is pending for further proceedings.
(iii) A case has been filed by UTI Retired and VSS Employees Social Association against the Company before Hon''ble Bombay
High Court for payment of dearness allowance with pension or periodic review of the pension. The case is pending for
further proceedings.
Note: Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash
outflows, if any, in respect of the above as it is determinable only on receipt of judgements/decisions pending with various
forums/authorities.
~| CAPITAL AND OTHER COMMITMENTS
(a) Estimated amount of contracts remaining to be executed on capital accounts '' 0.33 crore ('' 1 .50 crore as on 31st March 2024).
(b) As on 31st March 2025, the Company has commitments of '' 27.50 crore (Previous year '' 77.50 crore) to Structured Debt
Opportunity Fund III, '' 40 crore (Previous year '' 40 crore) to UTI Alternatives Private Limited.
~| EMPLOYEE BENEFITS
(a) Defined Contribution Plan
The Company manages provident fund plan through a provident fund trust for its eligible employees, which is permitted under
The Provident Funds Act, 1925. The plan mandates contribution by employer at a fixed percentage of employee''s salary.
Employees also contribute to the plan at a fixed percentage of their salary as a minimum contribution. The contribution by
employer and employee together with interest are payable at the time of separation from service or retirement whichever is
earlier. The benefit under this plan vests immediately on rendering of service.
The Company has recognised the following amounts in the Statement of Profit and Loss, which are included under contributions
to Provident Fund.
(b) Defined Benefit Plans
Characteristics of defined benefits plans (''DBO'')
1. Gratuity Plan
The Company operates a gratuity plan through Life Insurance Company of India (''LIC'') wherein every employee is entitled
to the benefit based on the respective employee''s half last drawn salary and years of employment with the Company.
Further, employees who have completed more than 30 years of service are paid additional gratuity based on the respective
employee''s half last drawn salary on completion of additional year of service post 30 years. The same is payable on
termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service. Liabilities
in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes annual
contributions to the plan. The plan is funded with LIC in the form of a qualifying insurance policy.
2. Pension Plan
The Company commenced operations from 1 st February 2003 and formed a Pension Trust (''PF'') which inherited the
Employees Group Superannuation Fund from the erstwhile Unit Trust of India. The Company''s pension plan assets are
managed by PF. The Company makes 1 0% of basic salary and additional pay, wherever applicable, as employer contribution
towards pension to the PF. PF independently manages some part of the corpus / assets and balance is managed by LIC.
The actuarial valuation considers the assets independently managed by PF as well as LIC. The trustees nominated by the
Company are responsible for the administration of PF.
Risk associated with defined benefits plans
These defined benefit plans expose the Company to actuarial risks, such as salary risk, investment risk, asset liability matching
risk, interest rate risk, concentration risk, and mortality risk.
(c) The following tables summaries the components of net employee benefit expense recognised in the
Statement of Profit and Loss, the funded status and amounts recognised in the Balance Sheet.
(x) Demographic Assumption:
Mortality in Service: Published rates under the Indian Assured Lives Mortality (201 2-1 4) Ult table. Mortality in Retirement:
Current LIC Buy-Out Annuity Rates prevailing as on the valuation date.
(xi) Sensitivity Analysis:
The benefit obligation results of gratuity fund are particularly sensitive to discount rate and future salary escalation rate. The
benefit obligation results of pension scheme are particularly sensitive to discount rate, longevity risk, salary escalation rate
and pension increases, if the plan provision do provide for such increases on commencement of pension.
The following table summarises the change in DBO and impact in percentage terms compared with the reported defined
benefit obligation at the end of the reporting year arising on account of an increase or decrease in the reported assumption
by changes in the below mentioned three parameters.
These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there
are no other changes in market conditions at the accounting date. There have been no changes from the previous year in
the methods and assumption used in preparing the sensitivity analysis.
Fair value of options granted
The fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the
option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free
interest rate for the term of the option.
Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during a period. The measure of
volatility used in the Black-Scholes Model is the annualised standard deviation of the continuously compounded rates of return on the
stock over a period of time.
As on the date of grant, in case of schemes ESOS 2007 - issued on 1 6th December 201 9, the Company being an unlisted Company,
the expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any expected
changes to future volatility due to publicly available information.
As on the date of grant in case of ESOS 2007 - issued on 28th July 2021,1 7th January 2022 and 1 3th September 2022, the Company
being listed, trading history of the Company and its comparable companies listed on the stock exchange were considered. The
volatility derived from these stocks has been annualised for the purpose of this valuation.
~| FINANCIAL RISK MANAGEMENT:
The Company has exposure to the following risks arising from financial instruments:
⢠Credit Risk
⢠Liquidity Risk
⢠Market Risk
Risk Management Framework:
The Company''s board of directors has overall responsibility for the establishment and oversight of its risk management framework.
The board of directors has established a risk management committee, which is responsible for developing and monitoring the
Company''s risk management policies. The committee reports regularly to the board of directors on its activities.
The Company''s risk management policies are established to identify and analyze 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.
A. Credit Risk:
Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual
obligations and arises principally from its investment transactions. The Company is exposed to credit risk from its operating
activities (mostly trade receivables) and from its investing activities, which includes deposits with banks and financial institutions,
and other financial assets measured at amortised cost.
Exposure to credit risk
The carrying amount of financial assets represents maximum amount of credit exposure. The maximum exposure to credit risk is as
per the table below, it being total of carrying amount of cash and cash equivalent, trade and other receivables and financial assets
measured at amortised cost.
Expected Credit Loss (ECL) on Financial Assets
The Company continuously monitors all financial assets subject to ECLs. In order to determine whether an instrument is subject to 12
month ECL (1 2mECL) or life time ECL (LTECL), the Company assesses whether there has been a significant increase in credit risk or the
assets have become credit impaired since initial recognition. The Company applies the following quantitative and qualitative criteria
to assess whether there is a significant increase in credit risk or the assets have been credit impaired.
⢠Historical trend of collection from counterparty
⢠Company''s contractual rights with respect to recovery of dues from counterparty
⢠Credit rating of counterparty and any relevant information available in public domain
ECL is a probability weighted estimate of credit losses. It is measured as the present value of cash shortfalls (i.e. the difference between
the cash flows due to the Company in accordance with contract and the cash flows that the Company expects to receive).
The Company has three types of financial assets that are subject to the expected credit loss:
⢠Trade and other receivables
⢠Cash and cash equivalent
⢠Investment in debt securities measured at amortised cost
The amount of trade receivable for which the Company has assessed credit risk is on an individual basis.
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine expected credit
losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Further, management believes
that amounts that are past due by more than 365 days are collectible in full and are not impaired, as the same are recoverable from
government entities.
Cash and cash equivalent:
The Company holds cash and cash equivalents of '' 2.95 crore as on 31st March 2025. The cash and cash equivalents are held with
banks, which are rated AA- to AA , based on CRISIL ratings. Impairment on cash and cash equivalents and other bank balances has
been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. The Company considers that its
cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.
Investment in Debt Securities measured at amortised cost:
The Company has made investments in state government and corporate bonds. Investments have been made after taking into account
parameters like safety, liquidity and post-tax returns etc. The Company avoids concentration of credit risk by spreading them over
several counterparties with good credit rating profile and sound financial position. The investment in corporate bonds are rated AAA
based on CRISIL ratings. The Company considers that the investments in state government and corporate bonds have low credit risk.
B. Liquidity Risk:
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company
might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows
under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not
available to the Company on acceptable terms.
The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its
liabilities when they are due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to
the Company''s reputation.
The Company''s investment policy and strategy are focused on preservation of capital and supporting the Company''s liquidity
requirements. The Company typically invests in money market funds, debt funds, equity funds and other highly rated securities
under a limits framework, which governs the credit exposure to any one issuer as defined in its investment policy. The policy
requires investments generally to be of investment grade, with the primary objective of minimizing the potential risk of principal
loss.
The following are the remaining contractual maturities of financial assets and financial liabilities at the reporting date. The
amounts are gross and not discounted:
C. Market Risk:
Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument that may result
from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is
exposed to market risk primarily related to currency risk, interest rate risk and price risk. Financial instruments affected by market
risk include investments, loans and deposits.
Interest rate risk:
I nterest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s
financial Instruments. The investments in government securities and bonds are at fixed rate of coupon and accordingly the
Company does not perceive any interest rate risk.
Foreign currency risk:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s
operating activities (wherever revenue or expense is denominated in a foreign currency) and the Company''s net investments in
foreign subsidiaries. The Company has insignificant amount of foreign currency denominated assets. Accordingly, the exposure
to currency risk is insignificant.
~| FINANCIAL INSTRUMENTS:
A. Fair Value Hierarchy:
As per Ind AS 107, ''Financial Instruments: Disclosures'', the fair values of the financial assets or financial liabilities are defined
as the price that would be received on sale of asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable
or unobservable. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and
lowest priority to unobservable inputs.
The hierarchy used is as follows:
⢠Level 1 â Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
⢠Level 2 â Inputs are 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). Investment in all mutual fund schemes are included in Level 2.
⢠Level 3 â Inputs are not based on observable market data (unobservable inputs). 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. Accounting classification and fair valuation:
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels
in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at
fair value if the carrying amount is a reasonable approximation of fair value.
39 During the year, the Company has reversed liability of '' 0.45 crore (previous year '' 0.47 crore) towards employee
superannuation, as the same is no longer payable, and accounted for as other income.
40| CAPITAL MANAGEMENT:
The primary objective of the Company''s capital management is to maximise the shareholder value as well as to maintain investor,
creditor and market confidence and to sustain future development of the Company.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares.
The Company monitors capital using the ratio of ''net adjusted debt'' to ''Total equity''. For this purpose, adjusted net debt is defined
as total liabilities, comprising interest bearing loans and borrowings and obligations under finance lease (if any), less cash and cash
equivalents. Total Equity comprises of share capital and all reserves.
Calculation of this ratio is given below:
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the
obligations related to lease liabilities as and when they fall due.
The weighted average incremental borrowing rate applied to lease liabilities for financial year ended 31st March 2025 is 1 0.75% and
for the financial year ended 31st March 2024 is 9.88%.
Company as a lessor:
The company leases out its properties of which details of the same are as follows:
i) Finance Lease
During the year ended 31st March 2025, the Company has sub-leased several premises that have been presented as a right-
of-use asset. The Company recognised a gain of '' 0.14 crore (Previous year: nil) on derecognition of the right-of-use asset
pertaining to the building and presented the gain as part of ''Other income'' and interest income on lease receivables of '' 0.04
crore (Previous year: nil) as part of ''Interest Income''.
The following table sets out a maturity analysis of lease receivables, showing the undiscounted lease payments to be received
after the reporting date.
There is no Intangible assets under development as at 31st March 2025, whose completion is overdue or has exceeded its cost
as compared to original plan.
(e) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company.
(f) The Company has availed overdraft facility from bank on the basis of security of current assets during the year. The balance
outstanding at the year ended 31st March 2025 is NIL (Balance Outstanding as on 31st March 2024 is NIL). As per the sanction
term, the Company is not required to file quarterly returns or statements with the bank. The Company has used the overdraft
facility from bank for the specific purpose for which it was taken.
(g) The Company is not a declared willful defaulter by any bank or financial institution or other lender.
(h) During the current year, the Company does not have any transactions with the companies struck off under section 248 of the Act
or Section 560 of the Companies Act, 1956.
(i) The Company has created charge with ROC Mumbai on the state development loans of '' 1 45.00 crore given as security for the
overdraft facility availed.
(j) The Company has complied with the number of layers for investments made as prescribed under clause (87) of section 2 of the
Act read with Companies (Restriction on number of Layers) Rules, 2017.
(ii) The Company has not received any fund from any persons or entities, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall:
⢠directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Parties ("Ultimate Beneficiaries") or
⢠provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(n) The Company does not have transactions which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1 961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).
(o) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
As per our Report of even date For and on behalf of the Board of Directors of
For B S R & Co. LLP UTI Asset Management Company Limited
Chartered Accountants
Firm Registration Number: 101248W/W-100022
D K Mehrotra Imtaiyazur Rahman
Non Executive Chairman Managing Director & Chief Executive Officer
(DIN: 00142711) (DIN: 01818725)
Sameer Mota Vinay Lakhotia Arvind Patkar
Partner Chief Financial Officer Company Secretary
Membership Number: 109928 (ACS 21577)
Place: Sydney, Australia Place: Mumbai
Date: 29th April, 2025 Date: 29th April, 2025
* Since the Company is not in lending business, hence these ratios are not applicable.
[l) During the year, the Company has not entered into scheme of arrangements.
[m) (i) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds), to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall:
⢠directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company ("Ultimate Beneficiaries"); or
⢠provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Mar 31, 2024
B. Measurement of fair valuesi. Fair value hierarchy
Fair value of Investment property (as measured for disclosure purposes in the financial statements) by the Company, is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. This is considered as level 3 valuation.
(i) Considering the locality, age, mode of construction, the fair and reasonable market value arrived by the independent valuer vide valuation report as at 25th March, 2024 is '' 239.06 crore (25th March, 2023 is '' 47.50 crore). The value derived by the valuer for the property is after considering the economic usefulness to the prospective purchaser, functional and economic obsolescence, technical potentiality, financial bankruptcy, management lapses, technical in competency in running the unit. The factors will enable valuer to arrive at very realistic and reasonable figures of reliability in the present market.
(ii) The cost approach is a Real Property valuation method which considers the value of a property as the cost of the land plus the replacement cost of the building (Construction Cost) minus the physical and functional depreciation
i) Buildings include an area admeasuring 1,28,997.73 sq.feet and 36,096.90 sq.feet in UTI Towers, Bandra Kurla Complex, Mumbai, acquired from SUUTI and Bank of Baroda respectively on an outright basis in different years. The land on which the building is constructed belongs to MMRDA and the balance period of lease remaining is 49 years, as at 31st March, 2024.
ii) Buildings include 2 flats given on operating cancellable lease having acquisition value of '' 8.29 crore (Previous year: '' 8.29 crore) and Accumulated depreciation of '' 4.21 crore (Previous year: '' 3.87 crore), Lease rent of NIL (Previous year : '' 0.47 crore) has been received during the period 31st March, 2024.
iii) The Company has not revalued its property, plant and equipment''s (including right-of-use assets) during the current or previous year.
Dues to Micro, Small and Medium Enterprises
Trade payables do not include any amount payable to Micro, Small and Medium Enterprises. Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMEDA) which came into force from 2nd October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, the following disclosures are made for the amounts due to the Micro, Small and Medium enterprises, who have registered with the competent authorities.
b) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of ''10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
d) The Company does not have a holding company.e) Shares reserved for issue under options:
The Company has introduced an Employee Stock Option Scheme called the "UTI AMC Employee Stock Option Scheme -2007". Information relating to the Employee Stock Option Scheme (''ESOS''), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out separately. (Refer Note 37)
Nature and purpose of reservea) General reserve
General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
Securities Premium is used to record the premium (amount received in excess of face value of equity shares) on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
c) Share option outstanding account
The Share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period.
d) Share application money pending allotment
Until the shares are allotted, the amount received on account of options exercised by employees under share based payments arrangement are shown under the Share application money pending allotment.
Retained earnings are the profits that the Company has earned to date, less any dividends or any other distribution paid to the shareholders, net of utilisation as permitted under applicable regulations.
Other comprehensive income comprises of remeasurement of the net defined benefit obligation, which includes actuarial gains & losses, the return on plan assets. The income tax related to the same also recognised in other comprehensive income.
##Consolidated from 27th September, 2023, as per the requirement of IND AS 110.
### UTI Investments America Limited has been incorporated on 7th November, 2022 as a Wholly Owned Subsidiary (''WOS'') of UTI International Limited (WOS of the Company).
*Mr. Imtaiyazur Rahman was re-appointed as the Managing Director and Chief Executive Officer of the Company on 7th March, 2024 for another term of two years with effect from 13th June, 2024 till 12th June, 2026 after completion of his existing term on 12th June, 2024.
**Mr. Srivatsa Desikamani was appointed as the Non-Executive Nominee Director with effect from 9th June, 2023
***Mr. Kiran Kumar Tarania (due to liable to retire by rotation), was re-appointed as the Non Executive Nominee Director with effect
from 26th July, 2023
****Mr. Edward Cage Bernard resigned from the position of Non-Executive Nominee Director with effect from the closing of business hours on 8th June, 2023
***** Entities having significant influence as per Ind As 24.
****** Entities on which the Company has significant influence.
Basic earnings per share (EPS) is calculated by dividing the profit after tax for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.
Diluted EPS is calculated by dividing the profit after tax for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
|
32 B| CONTINGENT LIABILITIES Contingent liabilities: |
('' in crore) |
|
|
Particulars |
As at 31st March, 2024 |
As at 31st March, 2023 |
|
A. To the extent not provided for |
||
|
Claims against the Company not acknowledged as debts in respect of: |
||
|
a. Disputed consumer cases |
0.90 |
1.25 |
|
b. Disputed Income Tax demand |
7.54 |
7.54 |
|
c. Other Matters |
1.82 |
1.82 |
Contingent liabilities:A. To the extent not provided for
(i) Estimated liability for the Consumer Disputes Redressal Forum cases pending in courts for the dispute pertaining to the schemes of UTI Mutual Fund is '' 0.90 crore (Previous year '' 1.25 crore).
(ii) Ex-Registrars & Transfer Agents (''RTA'') filed a suit against the Company, Administrators of Specified Undertaking of Unit Turst of India (''SUUTI'') and UTI Trustee Company Private Limited (''Trustee Company'') in the year 2003 before Hon''ble Bombay High Court seeking recovery of unpaid dues '' 3.19 crore for services provided as a registrar and transfer agent and dematerialisation services, in relation to certain schemes of Trustee Company and SUUTI. The Trustee Company and SUUTI have filed a cross suit against RTA before Hon''ble Bombay High Court for '' 1.37 crore for deficiencies in the services. Hon''ble Bombay High Court directed both the parties to frame the issue for arguments. The Company is hopeful of a positive outcome in its favour and therefore no provision has been made. Contingent Liability is for '' 1.82 crore.
(iii) W.r.t. assessment Year 2009-2010, an order has been passed raising a demand of '' 5.26 crore (Previous year '' 5.26 crore). The Company has filed an Appeal against the order before Income Tax Appeallet Tribunal (''ITAT'').
(iv) W.r.t. assessment Year 2010-2011, an order has been passed raising a demand of '' 2.28 crore (Previous year '' 2.28 crore). The Company has filed an Appeal against the order before Commissioner of Income Tax (Appeal) (''CIT-A'').
B. Other Contingent liabilities where financial impact is not ascertainable, comprises:
(i) A case was filed by All India UTI AMC Officers'' Association (''AIUTEA'') against the Company in respect of leftover Class III and Class IV staff on date demanding pension option. The honorable presiding officer, CGIT, Mumbai pronounced the verdict in favour of AIUTEA dated 28th February, 2007 for 3rd pension option. The matter was taken with Government of India, which advised the Company to seek legal opinion. The Company filed an appeal in the Hon''ble Bombay High Court challenging the order of CGIT. Hon''ble Bombay High Court vide its order dated 5th May, 2017 allowed the appeal of the Company by quashing and setting aside the order of CGIT. AIUTEA filed a Review Petition to review the order dated 5th May, 2017 of Hon''ble Justice K K Tated in WP no. 1792 of 2007 filed by the Company. Hon''ble Bombay High Court vide its order dated 31st August, 2017 rejected the review petition of the petitioner stating that ''the only endeavor is to re-argue the entire matter, which is not permitted''. AIUTEA has filed a Special Leave petition before Hon''ble Supreme Court of India challenging the order of Hon''ble Bombay High Court. The matter has not yet been heard Hon''ble Supreme Court of India. Therefore, financial liability at this juncture cannot be crystallised.
(ii) A case has been filed by UTI Retired and VSS Employees Social Association against the Company before Hon''ble Bombay High Court for giving a fresh opportunity for pension option after pay revision 2001 and arrears of pension with 12% interest on the same. The case is pending for further proceedings.
(iii) A case has been filed by UTI Retired and VSS Employees Social Association against the Company before Hon''ble Bombay High Court for payment of dearness allowance with pension or periodic review of the pension. The case is pending for further proceedings.
(iv) There are 10 criminal cases pending related to normal operation of the schemes of UTI MF, such as non-transfer of units, non-receipt of unit certificates, non-receipt of redemption proceeds or income distribution. These cases are non-maintainable and judging from our experience such cases are generally dismissed by Court or withdrawn by the complainant.
~| CAPITAL AND OTHER COMMITMENTS(a) Estimated amount of contracts remaining to be executed on capital accounts '' 1.50 crore (Previous year '' 3.58 crore).
(b) As on 31st March, 2024, the Company has commitments of '' 6.12 crore (Previous year '' 16.31 crore) to LIC Housing Finance Ltd - Housing & Infrastructure Fund, '' 77.50 crore (Previous year '' 137.50 crore) to Structured Debt Opportunity Fund III, '' 40 crore (Previous Year '' 40 crore) to UTI Alternatives Private Limited (formerly known as UTI Capital Private Limited).
~| EMPLOYEE BENEFITS (a) Defined Contribution Plan
The Company manages provident fund plan through a provident fund trust for its eligible employees, which is permitted under The Provident Funds Act, 1925. The plan mandates contribution by employer at a fixed percentage of employee''s salary. Employees also contribute to the plan at a fixed percentage of their salary as a minimum contribution. The contribution by employer and employee together with interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service.
(b) Defined Benefit PlansCharacteristics of defined benefits plans (''DBO''):1. Gratuity Plan:
The Company operates gratuity plan through a life insurance company (''LIC'') wherein every employee is entitled to the benefit based on the respective employee''s half last drawn salary and years of employment with the Company Further, employees who have completed more than 30 years of service are paid additional gratuity based on the respective employee''s half last drawn salary on completion of additional year of service post 30 years. same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service. Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes annual contributions to the plan. The plan is funded with LIC in the form of a qualifying insurance policy.
The Company commenced operations from 1st February, 2003 and formed a Pension Trust which inherited the Employees Group Superannuation Fund from the erstwhile Unit Trust of India. The Company makes 10% of basic salary and additional pay, wherever applicable, as employer contribution to this trust and any shortfall in the fund size as per the scheme. Some portion of the pension fund is managed by the Company. The actuarial valuation considers the asset managed by the trustee of the pension fund as well as the fund maintained by LIC. The defined benefit plan for pension of the Company is administered by separate pension fund that are legally separate from the Company. The trustees nominated by the Company are responsible for the administration of the plan.
Risk associated with defined benefits plans:
These defined benefit plans expose the Company to actuarial risks, such as Salary risk, investment risk, asset liability matching risk, interest rate risk, concentration risk, and mortality risk.
Mortality in Service: Published rates under the Indian Assured Lives Mortality (2012-14) Ult table. Mortality in Retirement: Current LIC Buy-Out Annuity Rates prevailing as on the valuation date.
The benefit obligation results of gratuity fund are particularly sensitive to discount rate and future salary escalation rate. The benefit obligation results of pension scheme are particularly sensitive to discount rate, longevity risk, salary escalation rate and pension increases, if the plan provision do provide for such increases on commencement of pension.
The following table summarises the change in DBO and impact in percentage terms compared with the reported defined benefit obligation at the end of the reporting year arising on account of an increase or decrease in the reported assumption by changes in the below mentioned three parameters.
These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous year in the methods and assumption used in preparing the sensitivity analysis.
~| EMPLOYEE SHARE BASED PAYMENTSEmployee stock option scheme (Equity settled)
The Company has formed an Employee Stock Option Scheme i.e. "UTI AMC Employee Stock Option Scheme 2007 ("ESOS 2007")", which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till three years as per plan. Each option entitles the holder thereof to apply for and be allotted / transferred one equity share of the Company upon payment of the exercise price during the exercise period.
The fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.
Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during a period. The measure of volatility used in the Black-Scholes Model is the annualised standard deviation of the continuously compounded rates of return on the stock over a period of time.
As on the date of grant, in case of schemes ESOS 2007 - issued on 16th December, 2019, the Company being an unlisted Company, the expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any expected changes to future volatility due to publicly available information.
As on the date of grant in case of ESOS 2007 - issued on 28th July, 2021, 17th January, 2022 and 13th September, 2022, the Company being listed, trading history of the Company and its comparable companies listed on the stock exchange was considered. The volatility derived from this stock had been annualised for the purpose of this valuation.
The Company has exposure to the following risks arising from financial instruments:
⢠Credit Risk
⢠Liquidity Risk
⢠Market Risk
The Company''s management has the overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyze 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.
Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations and arises principally from its investment transactions. The Company is exposed to credit risk from its operating activities (mostly trade receivables) and from its investing activities, which includes deposits with banks and financial institutions, and other financial assets measured at amortised cost. The carrying amount of the financial assets represents the maximum credit risk exposure.
The carrying amount of financial assets represents maximum amount of credit exposure. The maximum exposure to credit risk is as per the table below, it being total of carrying amount of cash and cash equivalent, trade and other receivables and financial assets measured at amortised cost.
Expected Credit Loss (ECL) on Financial Assets
The Company continuously monitors all financial assets subject to ECLs. In order to determine whether an instrument is subject to 12 month ECL (12mECL) or life time ECL (LTECL), the Company assesses whether there has been a significant increase in credit risk or the asset has become credit impaired since initial recognition. The Company applies following quantitative and qualitative criteria to assess whether there is significant increase in credit risk or the asset has been credit impaired.
⢠Historical trend of collection from counterparty.
⢠Company''s contractual rights with respect to recovery of dues from counterparty.
⢠Credit rating of counterparty and any relevant information available in public domain.
ECL is a probability weighted estimate of credit losses. It is measured as the present value of cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with contract and the cash flows that the Company expects to receive). The Company has three types of financial assets that are subject to the expected credit loss:
⢠Trade and other receivables.
⢠Cash and cash equivalent.
⢠Investment in debt securities measured at amortised cost.
The amount of trade receivable for which the Company has assessed credit risk is on an individual basis.
Trade receivables include AMC fees receivable from the schemes of UTI Mutual Fund, SUTTI, CMPFO, ESIC, EPFO and amount receivable from PLI and RPLI. Based on the past experience, management expects to receive these amounts in full.
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Further, management believes that amounts that are past due by more than 365 days are collectible in full and are not impaired, as the same are recoverable from government entities.
Trade payables include management and advisory fees payable and other vendor payments. Based on the past experience the Group will pay off the dues on time.
The Company holds cash and cash equivalents of '' 6.92 crore as on 31st March, 2024. The cash and cash equivalents are held with banks, which are rated AA- to AA , based on CRISIL ratings. The Company considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.
Investment in Debt Securities measured at amortised cost.
The Company has made investments in bonds. Investments have been made after taking into account parameters like safety, liquidity and post tax returns etc. The Company avoids concentration of credit risk by spreading them over several counterparties with good credit rating profile and sound financial position.
Investment in debt securities that are in government bonds do not carry any credit risk, being sovereign in nature. Credit risk from other financial assets has not increased significantly since initial recognition. Accordingly, the expected probability of default is low.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on acceptable terms. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
The Company''s investment policy and strategy are focused on preservation of capital and supporting the Company''s liquidity requirements. The Company uses a combination of internal and external management to execute its investment strategy and achieve its investment objectives. The Company typically invests in money market funds, debt funds, equity funds and other highly rated securities under a limits framework, which governs the credit exposure to any one issuer as defined in its investment policy. The policy requires investments generally to be of investment grade, with the primary objective of minimising the potential risk of principal loss.
The following are the remaining contractual maturities of financial assets and financial liabilities at the reporting date. The amounts are gross and not discounted:
Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk. Financial instruments affected by market risk include investments, loans and deposits.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s financial Instruments. The investments in government securities and bonds are at fixed rate of coupon and accordingly the Company does not perceive any interest rate risk.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (wherever revenue or expense is denominated in a foreign currency) and the Company''s net investments in foreign subsidiaries. The Company has insignificant amount of foreign currency denominated assets. Accordingly, the exposure to currency risk is insignificant.
Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds held by the Company and classified in the balance sheet at fair value through profit or loss and is as follows:
To manage its price risk from investments in equity securities, debt securities, units of mutual funds, venture capital fund and alternative investment funds, the Company diversifies its portfolio.
The table below summarises the impact of increases/decreases of the Net Asset Value (NAV) on the Company''s investment in Mutual fund and profit for the year. The analysis is based on the assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s investments in mutual funds moved in line with the NAV.
~| FINANCIAL INSTRUMENTS:A. Fair Value Hierarchy:
As per Ind AS 107, ''Financial Instruments: Disclosures'', the fair values of the financial assets or financial liabilities are defined as the price that would be received on sale of asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs.
The hierarchy used is as follows:
⢠Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
⢠Level 2 - Inputs are 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). Investment in all mutual fund schemes are included in Level 2.
⢠Level 3 - Inputs are not based on observable market data (unobservable inputs). 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. Accounting classification and fair valuation:
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
During the year, the Company has reversed liability of '' 0.47 crore (previous year '' 8.04 crore) towards employee superannuation, as the same is no longer payable, and accounted for as other income. Further, the accrued investment income of Nil (previous year '' 19.87 crore), has been accounted as income under the head net gain on fair value changes.
The primary objective of the Company''s capital management is to maximise the shareholder value as well as to maintain investor, creditor and market confidence and to sustain future development of the Company.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
The Company monitors capital using the ratio of ''net adjusted debt'' to ''Total equity''. For this purpose, adjusted net debt is defined as total liabilities, comprising interest bearing loans and borrowings and obligations under finance lease (if any), less cash and cash equivalents. Total Equity comprises of share capital and all reserves.
~| LEASES:Company as a lessee:
The Company has entered into leasing arrangements for premises. Majority of the leases are cancellable by the Company. Right of Use asset has been included under the line ''Non-Financial Assets'' and Lease liability has been included under ''Other Financial Liabilities'' in the Balance Sheet.
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
The weighted average incremental borrowing rate applied to lease liabilities for financial year 2023-24 is 9.8750% and for the financial year 2022-23 is 9.8750%.
The Company leases out its properties of which details of the same are as follows:
(a) Future minimum lease payments:~| SEGMENT REPORTING:
The Company is in the business of providing asset management services to UTI Mutual Fund and portfolio management and advisory services to clients. The primary segment is identified as asset management services. As such, the Company''s financial statements are largely reflective of the asset management business and accordingly there are no separate reportable segments as per Ind AS 108, ''Operating Segment''. The Company has disclosed the segmental information in the consolidated financial statements to comply with the requirements of Ind AS 108.
~| ADDITIONAL REGULATORY INFORMATION PURSUANT TO THE REQUIREMENT IN DIVISION II OF SCHEDULE III TO THE ACT:
(a) The title deeds of immovable properties (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the standalone financial statements are held in the name of the Company, except for the following where the Company is a lessee and lease agreements are not duly executed in the favour of lessee:
(e) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company.
(f) The Company has availed overdraft facility from bank on the basis of security of current assets during the year. The balance outstanding at the year ended 31st March, 2024 is NIL (Balance Outstanding as on 31st March, 2023 is NIL). As per the sanction term, the Company is not required to file quarterly returns or statements with the bank. The Company has used the overdraft facility from bank for the specific purpose for which it was taken.
(g) The Company is not a declared willful defaulter by any bank or financial institution or other lender.
(h) During the current year, the Company does not have any transactions with the companies struck off under section 248 of the Act or Section 560 of the Companies Act, 1956.
(i) The Company has not created charge with ROC Mumbai (due from last 12 months) on the fixed deposits of '' 50 crore given as security for the overdraft facility availed.
(j) The Company has complied with the number of layers for investments made as prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
*Since the Company is not in lending business, hence these ratios are not applicable.
(l) During the year, the Company has not entered into scheme of arrangements.
(m) (i) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds), to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries"); or
- a) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The Company has not received any fund from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:
- directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") or
- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(n) The Company does not have transactions which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(o) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Mar 31, 2023
C. Measurement of fair valuesi. Fair value hierarchy
The fair value of investment property is based on the valuation done by a registered valuer as defined under rule 2 of
Companies (Registered Valuers and Valuation) Rules, 2017. This is considered as Level 3 valuation.
(i) Considering the locality, age, mode of construction, the fair and reasonable market value arrived by the independent valuer vide valuation report as at 25th March, 2023 is '' 47.50 crore (31st March, 2022''46.50 crore). The value derived by the valuer for the property is after considering the economic usefulness to the prospective purchaser, functional and economic obsolescence, technical potentiality, financial bankruptcy, management lapses, technical in competency in running the unit. The factors will enable valuer to arrive at very realistic and reasonable figures of reliability in the present market.
(ii) The costapproach is a Real Property valuation method which considers the value of a property as the cost of the land plus the replancement cost of the building (Construction Cost) minus the physical and functional depriciation.
b) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
d) The Company does not have a holding company.e) Shares reserved for issue under options:
The Company has introduced an Employee Stock Option Scheme called the "UTI AMC Employee Stock Option Scheme -2007". Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out separately. (Refer Note 37).
Nature and Purpose of Reservea) General reserve
General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
Securities Premium is used to record the premium (amount received in excess of face value of equity shares) on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
c) Share option outstanding account
The Share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period.
d) Share application money pending allotment
Until the shares are allotted, the amount received on account of options granted, vested and exercised by employees under share based payments arrangement over the vesting periods shown under the Share Application Money Pending Allotment.
Retained earnings are the profits that the Company has earned to date, less any dividends or any other distribution paid to the shareholders, net of utilisation as permitted under applicable regulations. Adjusted for prior period income (net of tax) of '' 13.93 crore in the opening retained earnings as at 1st April, 2021.
Other comprehensive income comprises of remeasurement of the net defined benefit obligation, which includes actuarial gains & losses, the return on plan assets. The income tax rlated to the same also recognised in other comprehensive income.
Consolidated as per the requirement of IND AS 110. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The fund has been closed on 8th September, 2022.
## Wounded up on 18th March, 2022.
*** Incorporated on 7th November, 2022 as a Wholly Owned Subsidiary (''WOS'') of UTI International Limited.
*Mr. Imtaiyazur Rahman (DIN: 01818725) was appointed as Managing Director of the Company with effect from 26th July, 2022 to 12th June, 2024, not liable to retire by rotation. Accordingly, Mr. Imtaiyazur Rahman was re-designated as the Managing Director & Chief Executive Officer of the Company.
**Mr. Flemming Madsen (DIN: 02904543) retired by rotation at the 19th Annual General Meeting (AGM) of the Company and the shareholders had re-appointed him as a Nominee Director (Non-Executive Category) of the Company with effect from 26th July, 2022, liable to retire by rotation.
***Mr. Sanjay Varshneya (DIN: 08161701) resigned as Nominee Director of the Company w.e.f. 26th July, 2022.
****Mr. Kiran Kumar Tarania was appointed as an Additional Director (Nominee Non-Executive Category) by the Board of Directors w.e.f. 26th July, 2022 and his appointment was regularised by shareholders through postal ballot passed on 12th October, 2022.
Basic earnings per share (EPS) is calculated by dividing the profit after tax for the year attributable to equity shareholders of Company by the weighted average number of equity shares outstanding during the year.
Diluted EPS is calculated by dividing the profit after tax for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
|
32j CONTINGENT LIABILITIES |
||
|
('' in crore) |
||
|
Particulars |
As at 31st March, 2023 |
As at 31st March, 2022 |
|
A. To the extent not provided for |
||
|
Claims against the company not acknowledged as debts in respect of: |
||
|
a. Disputed consumer cases |
1.25 |
1.85 |
|
b. Disputed Income Tax demand |
- |
- |
|
c. Other Matters |
1.82 |
1.82 |
Contingent liabilities:A. To the extent not provided for
(i) Estimated liability for the Consumer Disputes Redressal Forum cases pending in courts for the dispute pertaining to the schemes of UTI Mutual Fund is '' 1 .25 crore.
Ex-Registrars & Transfer Agents filed a recovery suit of '' 3.19 crore against the Company, Administrators of SUUTI and UTI Trustee Company Private Limited in the year 2003 regarding termination of their agreement as registrars. The Company also filed a cross suit against them in the Hon''ble Bombay High Court for '' 1.37 crore for lack of service. Honourable court directed both the parties to frame the issue for arguments. The company is hopeful of a positive outcome in its favour and there-fore no provision is made. Net liability is '' 1.82 crore.
B. Other Contingent liabilities where financial impact is not ascertainable, comprises:
(i) A case was filed by AIUTEA against the company in respect of leftover Class III and Class IV staff on date demanding pension option. The honorable presiding officer, CGIT, Mumbai pronounced the verdict dated 28th February 2007 for pension option. The matter was taken with the Government of India, which advised the company to seek legal option. The company filed an appeal in the High Court, Bombay challenging the order of CGIT. The Hon''ble High Court vide its order dated 5th May, 2017 allowed the appeal of AMC by quashing and setting aside the order of CGIT. AIUTEA has filed a Review Petition to review the order dated 5th May, 2017 of Hon''ble Justice K K Tated in WP no. 1792 of 2007 filed by UTI AMC Limited Hon''ble Court vide its order dated 31st August, 2017, rejected the review petition of the petitioner stating that "the only endeavor is to re-argue the entire matter, which is not permitted". AIUTEA has filed a Special Leave petition before Hon''ble Supreme Court of India challenging the order of the Bombay High Court. The matter will come up for hearing in due course. Therefore, financial liability at this juncture cannot be crystallised.
(ii) In connection to UTI India Fund Unit Scheme 1986 managed by UTI Mutual Fund, as assessment order has been passed by the Income Tax Department, disallowing the exemption under section 10(23D) of Income Tax Act, for an aggregate amount of '' 48.30 crore, as well as penalty notice. Our Company has deposited an amount of '' 1.83 crore with Income Tax Department in this regards. CIT (A) has granted our appeal for deduction under section 10(23D) vide order dated 28th March, 2023 for all the assessment years. Refund of '' 1.83 crore deposited with income tax department is awaited.
(iii) The orders cum demand notices for '' 0.01 crore (Previous Year Rs 0.01 crore) is pending with Income Tax Office - TDS on various grounds. The Company has filed appeals to the appellate authority on the said orders mentioning that all the payments have been duly complied. The grounds of appeal are well supported in law. As a result, the Company does not expect the demand to crystalise into a liability.
(iv) A case has been filed by UTI Retired and VSS Employees Social Association against the Company before the Hon''ble Bombay High Court for giving a fresh opportunity for pension option after pay revision 2001 and arrears of pension with 12% interest on the same. The case is pending for further proceedings.
(v) A case has been filed by UTI Retired and VSS Employees Social Association against the Company before the Bombay High Court for payment of dearness allowance with pension or periodic review of the pension. At present the case is pending for further proceedings and the Company is disputing the case of the petitioners.
(vi) There are 10 cases against UTI Mutual Fund or key personnel, relating to normal operation of UTI MF, pending for final outcome.
(vii) In connection with India Debt Opportunities Fund Limited Mauritius and the India Debt Opportunities Scheme (Domestic Scheme), SEBI has issued a Show Cause Notice (SCN) to The Company and UTI Mutual Fund in January 2020 alleging violation of SEBI FPI Regulations and SEBI MF Regulations. The SCN has been issued to the Company and UTI MF to show cause as to why inquiry should not be held under the Adjudication Rules for imposing penalty under section 15 HB of the SEBI Act 1992 which shall not be less than rupees one lac but which may extend to rupees one crore. The Company and UTI MF have filed their detailed replies to SEBI in March 2020 denying all the allegations made in the SCN. The Company is hopeful of the outcome in it''s favour and there-fore financial liability at this junction cannot be crystalised.
(viii) The Income Tax re-assessment order for the Assessment Year 2009-10 has been passed raising a demand of '' 5.26 crore. An Appeal have been filed against the order before ITAT.
(ix) The Income Tax assessment order for Assessment Year 2010-11 have been passed raising a demand of '' 2.28 crore. An Appeal have been filed against such order before CIT (A).
~| CAPITAL AND OTHER COMMITMENTS
(a) Estimated amount of contracts remaining to be executed on capital accounts '' 3.58 crore.
(b) As on 31st March, 2023, the Company has commitments of '' 147.02 crore towards Structured Debt Opportunity Fund II, '' 16.31 crore to LIC Housing Finance Limited - Housing & Infrastructure Fund, '' 137.50 crore to Structured Debt Opportunity Fund III, '' 40 crore to UTI Capital Private Limited.
~| EMPLOYEE BENEFITS(a) Defined Contribution Plan
The Company manages provident fund plan through a provident fund trust for its eligible employees, which is permitted under The Provident Funds Act, 1925. The plan mandates contribution by employer at a fixed percentage of employee''s salary. Employees also contribute to the plan at a fixed percentage of their salary as a minimum contribution. The contribution by employer and employee together with interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service.
(b) Defined Benefit PlansCharacteristics of defined benefits plans (''DBO''):1. Gratuity Plan:
The Company operates gratuity plan through a life insurance company (''LIC'') wherein every employee is entitled to the benefit based on the respective employee''s last drawn salary and years of employment with the Company. The same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service. Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes annual contributions to the plan. The plan is funded with LIC in the form of a qualifying insurance policy.
The Company commenced operations from 1st February, 2003 and formed a Pension Trust which inherited the Employees Group Superannuation Fund from the erstwhile Unit Trust of India. The Company makes 10% of basic salary and additional pay, wherever applicable, as employer contribution to this trust and any shortfall in the fund size as per the scheme. Some portion of the pension fund is managed by the Company. The actuarial valuation considers the asset managed by the trustee of the pension fund as well as the fund maintained by LIC. The defined benefit plan for pension of the Company is administered by separate pension fund that are legally separate from the Company. The trustees nominated by the Company are responsible for the administration of the plan.
Risk associated with defined benefits plans:
These defined benefit plans expose the Company to actuarial risks, such as Salary risk, investment risk, asset liability matching risk, interest rate risk, concentration risk, and mortality risk.
(c) The following tables summaries the components of net employee benefit expense recognised in the Statement of Profit and Loss, the funded status and amounts recognised in the Balance Sheet.(x) Demographic Assumption:
Mortality in Service: Published rates under the Indian Assured Lives Mortality (2012-14) Ult table.
Mortality in Retirement: Current LIC Buy-Out Annuity Rates prevailing as on the valuation date.
The benefit obligation results of gratuity fund are particularly sensitive to discount rate and future salary escalation rate. The benefit obligation results of pension scheme are particularly sensitive to discount rate, longevity risk, salary escalation rate and pension increases, if the plan provision do provide for such increases on commencement of pension.
The following table summarizes the change in DBO and impact in percentage terms compared with the reported defined benefit obligation at the end of the reporting year arising on account of an increase or decrease in the reported assumption by changes in the below mentioned three parameters.
These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous year in the methods and assumption used in preparing the sensitivity analysis.
~| EMPLOYEE SHARE BASED PAYMENTSEmployee stock option scheme (Equity settled)
The Company has formed an Employee Stock Option Scheme i.e. "UTI AMC Employee Stock Option Scheme 2007 ("ESOS 2007")", which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till three years as per plan. Each option entitles the holder thereof to apply for and be allotted / transferred one equity share of the Company upon payment of the exercise price during the exercise period.
The fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.
Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during a period. The measure of volatility used in the Black-Scholes Model is the annualised standard deviation of the continuously compounded rates of return on the stock over a period of time.
As on the date of grant, in case of schemes ESOS 2007 - issued on 16th December, 2019, the Company being an unlisted Company, the expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any expected changes to future volatility due to publicly available information.
As on the date of grant in case of ESOS 2007 - issued on 28th July, 2021, 17th January, 2022 and 13th September, 2022, the Company being listed, trading history of the Company and its comparable companies listed on the stock exchange was considered. The volatility derived from this stock had been annualised for the purpose of this valuation.
The Company has exposure to the following risks arising from financial instruments:
⢠Credit Risk
⢠Liquidity Risk
⢠Market Risk
The Company''s management has the overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyze 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.
Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations and arises principally from its investment transactions. The Company is exposed to credit risk from its operating activities (mostly trade receivables) and from its investing activities, which includes deposits with banks and financial institutions, and other financial assets measured at amortised cost. The carrying amount of the financial assets represents the maximum credit risk exposure.
The carrying amount of financial assets represents maximum amount of credit exposure. The maximum exposure to credit risk is as per the table below, it being total of carrying amount of cash and cash equivalent, trade and other receivables and financial assets measured at amortised cost.
Expected Credit Loss (ECL) on Financial Assets
The Company continuously monitors all financial assets subject to ECLs. In order to determine whether an instrument is subject to 12 month ECL (12mECL) or life time ECL (LTECL), the Company assesses whether there has been a significant increase in credit risk or the asset has become credit impaired since initial recognition. The Company applies following quantitative and qualitative criteria to assess whether there is significant increase in credit risk or the asset has been credit impaired.
⢠Historical trend of collection from counterparty
⢠Company''s contractual rights with respect to recovery of dues from counterparty
⢠Credit rating of counterparty and any relevant information available in public domain
ECL is a probability weighted estimate of credit losses. It is measured as the present value of cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with contract and the cash flows that the Company expects to receive).
The Company holds cash and cash equivalents of '' 94.55 crore as on 31st March, 2023. The cash and cash equivalents are held with banks, which are rated AA- to AA , based on CRISIL ratings. The Company considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.
Investment in Debt Securities measured at amortised cost.
The Company has made investments in bonds. Funds are invested after taking into account parameters like safety, liquidity and post tax returns etc. The Company avoids concentration of credit risk by spreading them over several counterparties with good credit rating profile and sound financial position.
Investment in debt securities that are in government bonds do not carry any credit risk, being sovereign in nature. Credit risk from other financial assets has not increased significantly since initial recognition. Accordingly, the expected probability of default is low. B. Liquidity Risk:
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on acceptable terms. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
The Company''s investment policy and strategy are focussed on preservation of capital and supporting the Company''s liquidity requirements. The Company uses a combination of internal and external management to execute its investment strategy and achieve its investment objectives. The Company typically invests in money market funds, debt funds, equity funds and other highly rated securities under a limits framework, which governs the credit exposure to any one issuer as defined in its investment policy. The policy requires investments generally to be of investment grade, with the primary objective of minimising the potential risk of principal loss.
Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk. Financial instruments affected by market risk include investments, loans and deposits.
I nterest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s financial Instruments. The investments in government securities and bonds are at fixed rate of coupon and accordingly the Company does not perceive any interest rate risk.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (wherever revenue or expense is denominated in a foreign currency) and the Company''s net investments in foreign subsidiaries. The Company has insignificant amount of foreign currency denominated assets. Accordingly, the exposure to currency risk is insignificant.
Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds held by the Company and classified in the balance sheet at fair value through profit or loss and is as follows:
~| FINANCIAL INSTRUMENTS:A. Fair Value Hierarchy:
As per Ind AS 107, ''Financial Instruments: Disclosures'', the fair values of the financial assets or financial liabilities are defined as the price that would be received on sale of asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs.
The hierarchy used is as follows:
⢠Level 1 â Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
⢠Level 2 â Inputs are 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). Investment in all mutual fund schemes are included in Level 2.
⢠Level 3 â Inputs are not based on observable market data (unobservable inputs). 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. Accounting classification and fair valuation:
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
During the year, the Company has reversed liability of '' 8.04 crore towards employee superannuation, as the same is no longer payable, and accounted for as other income. Further, the accrued investment income of '' 19.87 crore thereon, has been accounted as income under the head net gain on fair value changes.
The primary objective of the Company''s capital management is to maximise the shareholder value as well as to maintain investor, creditor and market confidence and to sustain future development of the Company.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
The Company is in the business of providing asset management services to UTI Mutual Fund and portfolio management and advisory services to clients. The primary segment is identified as asset management services. As such, the Company''s financial statements are largely reflective of the asset management business and accordingly there are no separate reportable segments as per Ind AS 108, Operating Segment. The Company has disclosed the segmental information in the consolidated financial statements to comply with the requirements of Ind AS 108.
(b) Fair value of Investment property (as measured for disclosure purposes in the financial statements) by the Company, is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
(c) The Company has not revalued its property, plant and equipment''s (including right-of-use assets) during the current or previous year.
(d) The Company has not revalued its intangible assets during the current or previous year.
(e) During the year, the Company has not granted loans or advances in the nature of loans to promoters, directors, key managerial personnel''s and related parties (as defined under the Act), either severally or jointly with any other person, that are:
- repayable on demand or
- without specifying any terms or period of repayment.
There is no Intangible assets under development as at 31st March, 2023, whose completion is overdue or has exceeded its cost as compared to original plan.
(h) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company.
(i) The Company has availed overdraft facility from bank on the basis of security of current assets during the year. The balance outstanding at the year ended 31st March, 2023 is NIL (Balance Outstanding as on 31st March, 2022 is NIL). As per the sanction term, the Company is not required to file quarterly returns or statements with the bank. The Company has used the overdraft facility from bank for the specific purpose for which it was taken.
(j) The Company is not a declared willful defaulter by any bank or financial institution or other lender.
(k) During the current year, the Company does not have any transactions with the companies struck off under section 248 of the Act or Section 560 of the Companies Act 1956.
(l) The Company has not created charge with ROC Mumbai (due from last 2.5 months) on the fixed deposits given as security for the overdraft facility availed.
(m) The Company has complied with the number of layers for investments made as prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
(o) During the year, the Company has not entered into scheme of arrangements.
(P) (i) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds), to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries"); or
- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The Company has not received any fund from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:
- directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") or
- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(q) The Company does not have transactions which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(r) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Mar 31, 2022
Deposits pledged with bank against bank overdraft and bank guarantee.
Term deposits with a carrying amount of '' 54.82 crore (Previous year '' 54.82 crore) are held as pledge for overdraft account, Performance bank guarantee to Employees Provident Fund Organisation (EPFO) '' 10.00 crore (Previous year '' 10.00 crore), Pension Fund Regulatory and Development Authority (PFRDA) '' 0.46 crore (Previous year '' 0.46 crore), Employee State Insurance Corporation (ESIC) '' 10.00 crore ( Previous year: 10.00 crore) and Coal Mines Provident Fund Organisation (CMPFO) '' 1.00 crore (Previous year 1.00 crore) . Postal Life Insurance (PLI) '' 1.20 crore (Pervious year ''1.20 crore), National Stock Exchange (NSE) NIL (Previous Year ''18.60 crore), Corporate Credit Card Facility with Axis Bank Limited '' 0.30 crore (Previous Year NIL).
C. Measurement of fair valuesi. Fair value hierarchy
The fair value of investment property is based on the valuation done by a registretde valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
Considering the locality, age, mode of construction, the fair and reasonable market value arrived by the independent valuer vide valuation report as at 31st March, 2022 is ''46.50 crore (31st March, 2021 '' 41.49 crore). The value derived by the valuer for the property is after considering the economic usefulness to the prospective purchaser, functional and economic obsolescence, technical potentiality, financial bankruptcy, management lapses, technical in competency in running the unit. The factors will enable valuer to arrive at very realistic and reasonable figures of reliability in the present market.
i) Buildings include an area admeasuring 1,28,997.73 sq.feet and 36,096.90 sq.feet in UTI Towers, Bandra Kurla Complex, Mumbai, acquired from SUUTI and Bank of Baroda respectively on outright basis in different years. The land on which the building is constructed belongs to MMRDA and the balance period of lease remaining is 51 years, as at 31st March, 2022.
ii) Buildings include 2 flats under operating cancellable lease having acquisition value of '' 8.29 crore and Accumulated depreciation of '' 3.53 crore (Previous year : '' 3.19 crore).
iii) Lease rent of '' 0.78 crore (Previous year : '' 0.74 crore) has been received during the year 1st April, 2021 to 31st March, 2022 for above 2 flats.
Dues to Micro, Small and Medium Enterprises
Trade payables do not include any amount payable to Micro, Small and Medium Enterprises. Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMEDA) which came into force from 2nd October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, the following disclosures are made for the amounts due to the Micro, Small and Medium enterprises, who have registered with the competent authorities.
b) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of ''10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
c) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: NIL
During the year ended 2020-21, the Company had completed the initial public offering (''IPO'') through an offer for sale of 3,89,87,081 equity shares (1,04,59,949 equity shares each by State Bank India, Life Insurance Corporation of India, Bank of Baroda and 38,03,617 equity shares each by Punjab National Bank & T. Rowe Price International Limited) of face value of '' 10 each at a price of '' 554 per equity share aggregating up to '' 2,159.88 crore. The equity shares of the Company were listed on National Stock Exchange of India Limited (''NSE'') and BSE Limited (''BSE'') on 12th October, 2020.
f) Share Based Payment to Employees under Employee Stock Option Scheme :
The Company introduced an Employee Stock Option Scheme called the "UTI AMC Employee Stock Option Scheme -2007". Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out separately (refer Note no. 38).
A. Nature and Purpose of Reservea) General Reserve
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
Securities Premium is used to record the premium (amount received in excess of face value of equity shares) on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
c) Share option outstanding account
The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period.
d) Share application money pending allotment
Until the shares are allotted, the amount received is shown under the Share Application Money Pending Allotment.
Retained earnings are the profits that a Company has earned to date, less any dividends or any other distribution paid to the shareholders, net of utilisation as permitted under applicable regulations.
* Ms. Uttara Dasgupta ceased to be an Independent Director of the Company with effect from the conclusion of the 17th Annual General Meeting held on 27th November, 2020.
** Mr. Ashok Shah ceased to be an Independent Director of the Company with effect from the conclusion of the 17th Annual General Meeting held on 27th November, 2020.
***Mr. Deepak Kumar Chatterjee was re-appointed as an Independent Director at the 18th Annual General Meeting of the Company for another term of five years from 29th July, 2021 to 28th July, 2026, not liable to retire by rotation.
****Mr. Edward Cage Bernard retired by rotation at the 18th Annual General Meeting of the Company and the shareholders had approved his appointment as a Nominee Director (Non-Executive Category) of the Company with effect from 29th July, 2021, liable to retire by rotation.
*****Mr. Sanjay Varshneya was appointed as a Nominee Director (Non-Executive Category) at the 18th Annual General Meeting of the Company with effect from 29th July, 2021, liable to retire by rotation.
******The above mentioned fund have been consolidated as per the requirement of IND AS 110. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Basic earnings per share (EPS) is calculated by dividing the profit after tax for the year attributable to equity shareholders of Company by the weighted average number of equity shares outstanding during the year.
Diluted EPS is calculated by dividing the profit after tax for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
Contingent liabilities:A. To the extent not provided for
(i) Estimated liability for the Consumer Disputes Redressal Forum cases pending in courts for the dispute pertaining to the schemes of UTI Mutual Fund is '' 1.85 crore.
Ex-Registrars & Transfer Agents filed a recovery suit of '' 3.19 crore against the Company, Administrators of SUUTI and UTI Trustee Company Private Limited in the year 2003 regarding termination of their agreement as registrars. The Company also filed a cross suit against them in the Hon''ble Bombay High Court for '' 1.37 crore for lack of service. Honourable court directed both the parties to frame the issue for arguments. The Company is hopeful of a positive outcome in its favour and there-fore no provision is made. Net liability is '' 1.82 crore.
(ii) The orders cum demand notices for '' 0.01 crore (Previous Year '' 0.01 crore) is pending with Income Tax Office - TDS on various grounds. The Company has filed appeals to the appellate authority on the said orders mentioning that all the payments have been duly complied. The grounds of appeal are well supported in law. As a result, the Company does not expect the demand to crystalise into a liability.
(iii) Bank guarantee of ''10 crore to Employees Provident Fund Organisation (EPFO), '' 10 crore to Employees State Insurance Corporation (ESIC), '' 1 crore to Coal Mines Provident Fund Organisation (CMPFO), '' 1.2 crore to Postal life insurance & '' 0.20 crore to Pension Fund Regulatory and Development Authority (PFRDA).
B. Other Contingent liabilities where financial impact is not ascertainable, comprises:
(i) A case was filed before the CGIT, Mumbai by AIUTEA against the Company in respect of left over Class III and Class IV Staff on demanding pension option. The honourable presiding officer, CGIT, Mumbai pronounced the verdict dated 28th February, 2007 for pension option. The matter was taken with the Government of India, which advised the Company to seek legal option. The Company filed an appeal in the High Court, Bombay challenging the order of CGIT. The Hon''ble High Court vide its order dated 5th May, 2017 allowed the appeal of AMC by quashing and setting aside the order of CGIT. AIUTEA has filed a Review Petition to review the order dated 5th May, 2017 of Hon''ble Justice K K Tated in WP no. 1792 of 2007 filed by UTI AMC Limited Hon''ble Court vide its order dated 31st August, 2017, rejected the review petition of the petitioner stating that "the only endeavor is to re-argue the entire matter, which is not permitted". AIUTEA has filed a petition before Hon''ble Supreme Court of India challenging the order of the Bombay High Court. Therefore, financial liability at this juncture cannot be crystallised.
(ii) In connection to UTI India Fund Unit Scheme 1986 managed by UTI Mutual Fund, as assessment order has been passed by the Income Tax Department, disallowing the exemption under section 10(23D) of Income Tax Act, for an aggregate amount of '' 41.82 crore, as well as penalty notice. As appeal has been filed with CIT(A) against the demand order along with proper approval of GOI and the RBI and other documents. These appeal are presently pending. Our Company has deposited an amount of '' 1.83 crore with Income Tax Department in this regards.
(iii) A case has been filed by UTI Retired and VSS Employees Social Association against the Company before the Hon''ble Bombay High Court for giving a fresh opportunity for pension option after pay revision 2001 and arrears of pension with 12% interest on the same. The case is pending for further proceedings.
(iv) A case has been filed by UTI Retired and VSS Employees Social Association against the Company before the Bombay High Court for payment of dearness allowance with pension or periodic review of the pension. At present the case is pending for further proceedings and the Company is disputing the case of the petitioners.
(v) There are 10 cases against UTI Mutual Fund or key personnel, relating to normal operation of UTI MF, pending for final outcome.
(vi) UTI Asset Management Company Limited renders Point of Presence (POP) services. PFRDA has issued a Show Cause Notice (SCN) to UTI AMC Limited in February 2020. This has been issued to show cause as to why inquiry should not be held under the PFRDA Act and the Adjudication Regulations against the Noticee and as to why suitable penalty as per sub-section (1)
(c) & (5) of section 28 of PFRDA Act 2013 should not be recommended against the Noticee for the allegations/violations of the PFRDA Act and the POP Regulations. Under sub-section (1)(c) of section 28, penalty can be imposed which may extend to one crore rupees or five times the amount of profits made or losses avoided, whichever is higher. Under sub-section (5) of section 28, penalty can be imposed which may extend to one crore rupees or five times the amount of profits made or losses avoided, whichever is higher. UTI AMC has filed detailed reply to PFRDA in February 2020 denying all the allegations made in the SCN. The Company is hopeful of the outcome in it''s favour and the liability cant be crystalised at this point of time.
(vii) In connection with India Debt Opportunities Fund Limited Mauritius and the India Debt Opportunities Scheme (Domestic Scheme), SEBI has issued a Show Cause Notice (SCN) to UTI Asset Management Company Limited and UTI Mutual Fund in January 2020 alleging violation of SEBI FPI Regulations and SEBI MF Regulations. The SCN has been issued to UTI AMC Limited and UTI MF to show cause as to why inquiry should not be held under the Adjudication Rules for imposing penalty under section 15 HB of the SEBI Act 1992 which shall not be less than rupees one lac but which may extend to rupees one crore. UTI AMC Limited and UTI MF have filed their detailed replies to SEBI in March 2020 denying all the allegations made in the SCN. The Company is hopeful of the outcome in it''s favour and there-fore financial liability at this junction can''t be crystalised.
(viii) The Income Tax re-assessment order for the Assessment Year 2009-10 has been passed raising a demand of '' 5.26 crore. An Appeal have been filed against the order before ITAT.
The Income Tax assessment order for Assessment Year 2010-11 have been passed raising a demand of '' 2.28 crore. An Appeal have been filed against such order before CIT (A).
(i) The assessment of Assessment Year 2012-13 has been completed and there is a dispute of income tax amounting to '' 0.74 crore. An Appeal have been filed against the order before ITAT.
(ii) The assessment of Assessment Year 2013-14 has been completed and there is a dispute of income tax amounting to '' 0.78 crore. An Appeal have been filed against the order before ITAT.
~| CAPITAL AND OTHER COMMITMENTS
(a) Estimated amount of contracts remaining to be executed on capital accounts '' 9.19 crore.
(b) As on 31st March, 2022, the Company has commitments of '' 151.00 crore towards Structured Debt Opportunity Fund II and '' 30.35 crore to LIC Housing Finance Limited - Housing & Infrastructure Fund.
38~| EMPLOYEE BENEFITS (a) Defined Contribution Plan
The Company manages provident fund plan through a provident fund trust for its employees, which is permitted under the Provident Fund and Miscellaneous Provisions Act, 1952. The plan mandates contribution by employer at a fixed percentage of employee''s salary. Employees also contribute to the plan at a fixed percentage of their salary as a minimum contribution. The plan guarantees interest at the rate notified by Employees'' Provident Fund Organisation. The contribution by employer and employee together with interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service. The interest payment obligation of trust-managed provident fund is assumed to be adequately covered by the interest income on long term investments of the fund.
In accordance with the requirements of the Indian Accounting Standard (''Ind AS'') 19 related to Employee Benefits, in regard to any future obligation related to Provident Fund, arising due to interest shortfall (i.e. interest rate prescribed by the government from time to time to be paid on provident fund scheme exceeds rate of interest earned on investment), the amount of shortfall, if any, will be borne by the Company. However, at present the fund does not have any existing deficit or interest shortfall. The Company voluntarily keeps the interest rate same as the rate declared by EPFO & in this process if & only if, there is any shortfall in the fund the Company bears the same.
The Company has recognised the following amounts in the Statement of Profit and Loss, which are included under contributions to Provident Fund
(b) Defined Benefit PlansCharacteristics of defined benefits plans (''DBO''):1. Gratuity Plan:
The Company operates gratuity plan through a life insurance company (the ''LIC'') wherein every employee is entitled to the benefit based on the respective employee''s last drawn salary and years of employment with the Company. The same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service. The Company''s scheme is more favorable as compared to the obligation under Payment of Gratuity Act, 1972. Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes annual contributions to the plan. The plan is funded with the LIC in the form of a qualifying insurance policy.
The Company commenced operations from 1st February, 2003 and formed a Pension Trust which inherited the Employees Group Superannuation Fund from the erstwhile Unit Trust of India. The Company is making 10% of basic salary and additional pay, wherever applicable, as employer contribution to this trust and any shortfall in the fund size as per the scheme. A small part of the pension fund is managed by the Company. The actuarial valuation has also duly considered the asset managed by the trustee of the pension fund as well as the fund maintained by the LIC. The defined benefit plan for pension of the Company is administered by separate pension fund that are legally separate from the Company. The trustees nominated by the Company are responsible for the administration of the plan.
Risks associated with Defined Benefit Plan:
Interest Rate Risk: A fall in the discount rate, which is linked, to the Government Securities (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. 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 (''ALM'') 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, the 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 which mitigate the risk.
(c) As required by the Ind AS19, the discount rate used to arrive at the present value of the defined benefit obligation is based on the Indian G-Sec yields prevailing as at the balance sheet date that have maturity date equivalent to the tenure of the obligation The return on plan assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation. The Gratuity scheme is invested in a Group Gratuity - Cum Life Assurance cash accumulation policy issued by Life Insurance Corporation (LIC) of India.
The investment return earned on the policy comprises of bonuses declared by LIC having regard to LIC''s investment earning. The information on the allocation of the fund into major asset classes and return on each major class are not readily available.
(d) Re-measurements arising from defined plans comprises of actuarial gains and losses on benefits obligation. As required by the Ind AS19, the Company recognises these items of re-measurements immediately in other comprehensive income and all the other expenses related to defined benefit plan as employee benefit expenses in the Statement of Profit and Loss.
(e) Ind AS 19 does not require any specific disclosures except where expense resulting from Employee Leave Encashment scheme is of such size, nature or incidence that its disclosure is relevant under another standard.
(f) The following tables summaries the components of net employee benefit expense recognised in the Statement of Profit and Loss, the funded status and amounts recognised in the Balance Sheet.
The funding requirements are based on the gratuity & super annuation fund''s actuarial measurement framework set out in the funding policies of the plan. The Company generally makes annual contributions to the plan based on the actuarial valuation of ''amount recognised in the Balance Sheet as Liability at the year end.
The Company expects to pay ''13.03 crore in contributions to its defined benefit plans (super annuation fund) in FY 2022-23
Mortality in Service: Published rates under the Indian Assured Lives Mortality (2012-14) Ult table.
Mortality in Retirement: Current LIC Buy-Out Annuity Rates prevailing as on the valuation date.
The benefit obligation results of gratuity fund are particularly sensitive to discount rate and future salary escalation rate. The benefit obligation results of pension scheme are particularly sensitive to discount rate, longevity risk, salary escalation rate and pension increases, if the plan provision do provide for such increases on commencement of pension.
The following table summarises the change in DBO and impact in percentage terms compared with the reported defined benefit obligation at the end of the reporting year arising on account of an increase or decrease in the reported assumption by changes in the below mentioned three parameters.
These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous year in the methods and assumption used in preparing the sensitivity analysis.
The liabilities arising in the Defined Benefit Schemes are determined in accordance with the advice of independent, professionally qualified actuaries, using the projected unit credit method. The Company makes regular contributions to these Employee Benefit Plans. Additional contributions are made to these plans as and when required.
39j EMPLOYEE SHARE BASED PAYMENTSEmployee stock option scheme (Equity settled)
The Company have Employee Stock Option Scheme called the "UTI AMC Employee Stock Option Scheme 2007", which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till three years as per plan. Each option entitles the holder thereof to apply for and be allotted / transferred one equity share of the Company upon payment of the exercise price during the exercise period.
Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during a period. The measure of volatility used in the Black-Scholes Model is the annualised standard deviation of the continuously compounded rates of return on the stock over a period of time.
As on the date of grant, in case of schemes ESOS 2007 - issued on 16th December, 2019, the Company being an unlisted Company, the expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any expected changes to future volatility due to publicly available information.
As on the date of grant in case of ESOS 2007 - issued on 28th July, 2021 and 17th January, 2022, the Company being listed, trading history of the Company and its comparable companies listed on the stock exchange was considered. The volatility derived from this stock had been annualised for the purpose of this valuation.
The Company''s management has the overall responsibility for the establishment and oversight of Company''s risk management framework. 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 Company''s activities.
Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations and arises principally from its investment transitions. The Company is exposed to credit risk from its operating activities (mostly trade receivables) and from its financing activities, which includes deposits with banks and financial institutions, foreign exchange transactions and other financial assets measured at amortised cost. The carrying amount of the financial assets represents the maximum credit risk exposure.
Financial services business has a risk management framework that monitors and ensures that the business lines operate within the defined risk appetite and risk tolerance levels as defined by the senior management. The credit risk function independently evaluates proposals based on well-established sector specific internal frameworks, in order to identify, mitigate and allocate risks as well as to enable risk-based pricing of assets. Regulatory and process risks are identified, mitigated and managed by a separate group.
Expected Credit Loss (ECL) on Financial Assets
The Company continuously monitors all financial assets subject to ECLs. In order to determine whether an instrument is subject to 12 month ECL (12mECL) or life time ECL (LTECL), the Company assesses whether there has been a significant increase in credit risk or the asset has become credit impaired since initial recognition. The Company applies following quantitative and qualitative criteria to assess whether there is significant increase in credit risk or the asset has been credit impaired
- Historical trend of collection from counterparty
- Company''s contractual rights with respect to recovery of dues from counterparty
- Credit rating of counterparty and any relevant information available in public domain
ECL is a probability weighted estimate of credit losses. It is measured as the present value of cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with contract and the cash flows that the Company expects to receive). The Company has three types of financial assets that are subject to the expected credit loss:
- Cash and cash equivalent
- Trade & other receivables
- Investment in debt securities measured at amortised cost
The amount of trade receivable for which the company has assessed credit risk is on an individual basis.
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Further, management believes that the unimpaired amounts that are past due by more than 365 days are still collectible in full, as the same are recoverable from government entities.
Financial Instruments & cash depo7sits:
The Investments of the Company are primarily in Mutual Fund schemes. The Company holds cash & cash equivalents of '' 21.34 crore as on 31st March, 2022. The cash and cash equivalents are held with banks, which are rated AA- to AA , based on CRISIL ratings. The Company considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on acceptable terms. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
The Company''s investment policy and strategy are focused on preservation of capital and supporting the Company''s liquidity requirements. The Company uses a combination of internal and external management to execute its investment strategy and achieve its investment objectives. The Company typically invests in money market funds, large debt funds, equity funds and other highly rated securities under a limits framework, which governs the credit exposure to any one issuer as defined in its investment policy. The policy requires investments generally to be investment grade, with the primary objective of minimising the potential risk of principal loss.
* Our non-managerial staff have a recognised trade union with whom we negotiate their compensation periodically. The last settlement signed with them expired on 31st December, 2018. Negotiations regarding wage revision and settlement have been completed. Accordingly, an arrear amount of '' 12.17 crore has been charged in the Statement of Profit & Loss in the year ended 31st March, 2021.
Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk. Financial instruments affected by market risk include investments, loans and deposits.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s financial Instruments. All of the Company''s interest rate risk exposure is at a fixed rate. Therefore, a change in interest rates at the reporting date would not affect statement of profit and loss for any of these fixed interest bearing financial instruments. Fair value can change due to change in interest rate.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (wherever revenue or expense is denominated in a foreign currency) and the Company''s net investments in foreign subsidiaries. The Company has insignificant amount of foreign currency denominated assets. Accordingly, the exposure to currency risk is insignificant.
Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market
variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds held by the Company and classified in the balance sheet at fair value through profit or loss.
The table below summarises the impact of increases/decreases of the Net Asset Value (NAV) on the Company''s investment in Mutual fund and profit for the year. The analysis is based on the assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s investments in mutual funds moved in line with the NAV.
4lJ FINANCIAL INSTRUMENTS A. Fair Value Hierarchy:
As per Ind AS 107, ''Financial Instruments: Disclosures'', the fair values of the financial assets or financial liabilities are defined as the price that would be received on sale of asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs.
The hierarchy used is as follows:
Level 1 â Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities
.Level 2 â Inputs are 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 â Inputs are not based on observable market data (unobservable inputs). 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.
A. Accounting classification and fair valuation:
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.
The primary objective of the Company''s capital management is to maximise the shareholder value as well as to maintain investor, creditor and market confidence and to sustain future development of the Company.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
The Company monitors capital using the ratio of ''net adjusted debt'' to ''Total equity''. For this purpose, adjusted net debt is defined as total liabilities, comprising interest bearing loans and borrowings and obligations under finance lease (if any), less cash and cash equivalents. Total Equity comprises of share capital and all reserves.
43j LEASE:Company as a lessee:
Effective 1st April, 2019, the Company adopted Ind AS 116 ''Leases'' and applied the standard to all lease contracts existing on 1st April, 2019 using the modified retrospective method on the date of initial application. Consequently, the Company recorded the lease liability and right of use at the present value of the lease payments discounted at the incremental borrowing rate.
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
Rental expense recorded for short-term leases and low value item was '' 0.87 crore for the year ended 31st March, 2022.The weighted average incremental borrowing rate applied to lease liabilities for FY 2021-22 is 8.15% and for the FY 2020-21 is 8.50%.
The company has applied the practical expedient to all the rent that meet the conditions of para 46B of Ind AS 116, notified by Ministry of Corporate Affairs (MCA) on 24th July, 2020, and has recognised '' 0.04 crore in Statement of Profit and Loss account with regards to the rent concession for the FY 2021-22 and '' 0.55 crore for the FY 2020-21.
The Group leases out its properties of which details of the same are as follows: i) Future minimum lease payments:
The Company is in the business of providing asset management services to UTI Mutual Fund and portfolio management & advisory services to clients. The primary segment is identified as asset management services. As such, the Company''s financial statements are largely reflective of the asset management business and accordingly there are no separate reportable segments as per Ind AS 108, Operating Segment.
a) The particulars of the remuneration of the key managerial personnel are as under:
No Funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding, whether recorded in writing or otherwise, that the intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of ultimate beneficiaries or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
The outbreak of COVID - 19 pandemic has affected several countries across the world, including India, resulting in significant volatility in financial market and significant decrease in global and Indian economy. The Government is undertaking several measures to restrict the spread of virus and provide financial support to some stressed sectors. While the situation had improved significantly and there had been an all-round recovery in economic activity, the situation will have to be closely monitored till the pandemic is finally put to rest. The extent to which the pandemic will impact the Group''s financial results will depend on ongoing as well as future developments, which at this juncture are highly uncertain. Management will continue to closely monitor the material changes in the macro-economic factors impacting the operations of the Company.
Previous year''s figures have been regrouped / reclassified wherever necessary, to confirm to current year''s classification.
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మరింత సమాచారం UTI Asset Management Company Ltd.
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UTI Asset Management Company Ltd. టూల్స్
- బల్క్ డీల్స్
- బ్లాక్ డీల్స్
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UTI Asset Management Company Ltd. కంపెనీ వివరాలు
- కంపెనీ ప్రొఫైల్
- కంపెనీ చరిత్ర
- నిర్వహణ బృందం
- క్యాపిటల్ స్ట్రక్చర్
- ప్రొడక్ట్ మిక్స్
- బ్యాంకర్/ఆడిటర్/రిజిస్ట్రార్
-
కంపెనీ చరిత్ర
- బిఎస్ఇ ధర చరిత్ర
- ఎన్ఎస్ఇ ధర చరిత్ర
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UTI Asset Management Company Ltd. ముఖ్య ఆర్థిక నిష్పత్తులు
- నిష్పత్తులు
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UTI Asset Management Company Ltd. ఫలితాలు
- క్వార్టర్లీ ఫలితాలు
- హాఫ్ ఇయర్లీ ఫలితాలు
- 9నెలల ఫలితాలు
- వార్షిక ఫలితాలు
-
UTI Asset Management Company Ltd. ఆర్థిక డేటా
- ఆడిట్ ఫలితాలు
- క్యాష్ ఫ్లో
- బ్యాలెన్స్ షీట్
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UTI Asset Management Company Ltd. నివేదికలు
- అకౌంటింగ్ విధానాలు
- ఆడిటర్స్ నివేదిక
- డైరక్టర్స్ నివేదిక
- ఖాతాకు గమనికలు
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UTI Asset Management Company Ltd. కార్పొరేట్ ప్రకటనలు
- బుక్ క్లోజర్
- డివిడెండ్
- బోర్డు సమావేశాలు
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ఇరాన్ యుద్ధంతో స్టాక్ మార్కెట్లో భయాందోళన..728 పాయింట్లు పడిపోయిన గిఫ్ట్ నిఫ్టీ.. భారీగా పెరిగిన ఇండియా VIX.. -
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