1        BACKGROUND

           Angel Broking Private Limited ("ABPL" or  the ‘Company’) is the holding Company of Angel Group.

           The Company is Stock Broker member of  National Stock Exchange of India Limited (NSE), BSE Limited (BSE), Metropolitan Stock Exchange of India Limited (MSEI) and depository participant with Central Depository Services (India) Limited (CDSL). The Company has also been providing portfolio management services, mutual fund distribution services  and other financial products.

           ABPL is a diversified financial services company and its Subsidiaries are primarily engaged in the business of broking in commodities, Institutional Broking, lending as a Non Banking Financial Institution (Non- Deposit Accepting), Corporate agency of an Insurance Company. The Company has its other subsidiaries engaged in offering health and allied fitness services and Software Consultancy and Annual Maintenance Services.

2        PRINCIPLES OF CONSOLIDATION

           The Consolidated Financial Statements relate to Angel Broking Private Limited and its subsidiaries  (hereinafter collectively referred to as the "Group"). The subsidiaries considered in the consolidated financial statements as at March 31, 2017 are summarised below.

                     

Name of the Subsidiary	Country of Incorporation	% voting power	% voting power
		held as at	held as at
		March 31, 2017	March 31, 2016
Angel Financial Advisors Private Limited  (AFAPL)	India	100	100
Angel Securities Limited (ASL)	India	100	100
Angel Commodities Broking Private Limited  (ACBPL)	India	100	100
Mimansa Software Systems Private Limited  (MSSPL)	India	100	100
Angel Fincap Private Limited (AFPL)	India	100	100
Angel Wellness Private Limited  (AWPL)	India	100	100

                      These Consolidated Financial Statements are brpared in accordance with the principles and procedures brscribed by Accounting Standard (AS-21) "Consolidated Financial Statements", notified under Section 133 of the Companies Act, 2013. Pursuant to section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, till the Standards of Accounting or any addendum thereto are brscribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply.  Consequently, these consolidated financial statements have been brpared to comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.

                      The Consolidated Financial Statements of the Company and its subsidiaries have been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses after eliminating intra-group balances/transactions and resulting unrealized profits or losses in accordance with the Accounting Standard (AS-21) “Consolidated Financial Statements” as referred in the Companies (Accounting Standards) Rules, 2006.

                      These Consolidated Financial Statements have been brpared using uniform accounting policies for similar transactions and other events in similar circumstances and are brpared to the extent possible, in the same manner as the Company’s separate Financial Statements.

                      Investments in subsidiaries are eliminated and differences between the cost of investments over the net assets on the date of investments or on the date of the financial statements immediately brceding the date of investments in subsidiaries are recognised as Goodwill or Capital Reserve, as the case may be.

                      Minority interest if any, includes Equity capital, share of reserves and share of profit (loss) for the year.

3        SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

3.1     BASIS OF ACCOUNTING

           These financial statements have been brpared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, till the Standards of Accounting or any addendum thereto are brscribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply.  Consequently, these financial statements have been brpared to comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.

           All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of the services and the time between the provision of services and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

3.2     USE OF ESTIMATES

           The brsentation of consolidated financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities (including contingent liability) on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which results are known / materialised. Management believes that the estimates used in brparation of the financial statements are prudent and reasonable.

3.3     REVENUE RECOGNITION

           (i)      Revenue is recognised when there is reasonable certainity of its ultimate realisation / collection.

           (i)      Revenue from broking activities is accounted for on the trade date of transactions (net of service tax).

           (ii)     Revenue from Mutual Fund Distribution, Insurance, Personal Loan, Depository Income, IPO  and Cross Sales Operations has been accounted on an accrual basis.

           (iii)    Delayed payment charges are accounted on an accrual basis.

           (iv)    Portfolio Management Fees are accounted on an accrual basis as follows:

                      - In case of fees based on fixed percentage of the corpus, Income is accrued as per the agreement on quarterly basis.

                      - In case of brmature withdrawal, flat percentage of corpus is charged.

           (v)     Dividend on Investments recognised when the right to receive dividend is established.

           (vi)    Interest income from financing activities is recognised on an accrual basis,except interest on non performing assets is recognised on receipt basis as per Reserve Bank of India Prudential norms for Non-Banking Financial Companies Directions, 2015.

           (vii)   Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

           (viii)  Membership fees (net of service tax and rebates) is recognised as income on receipt of the fees subject to commencement of subscription period. Further, fees receivable from customers as at the year end has been recognised as income for the year.

           (ix)    Personal training fees is recognised as income on receipt of fees. Also, fees receivable as at the year end has been recognised as income for the year.

           (x)     Revenue from software consultancy charges are accounted for on accrual basis.

           (xi)    Syndication fees are accrued based on completion of assignments in accordance with terms of understanding.

           (xii)   In respect of other heads of Income, the group accounts the same on accrual basis.

           (xiii)  Revenue excludes service tax and value added taxes.

3.4     PROPERTY PLANT AND EQUIPMENTS

           Property plant and equipments are stated at acquisition cost, net of accumulated debrciation. Acquisition cost for this purpose includes purchase price, non refundable taxes or levies and other directly attributable costs of bringing the asset to its working condition for its intended use. Subsequent expenditure related to an item of property plant and equipments is added to its book value only, if it increases the future benefits from the existing asset beyond its brviously assessed standard of performance.

           Items of property plant and equipments that have been retired from active use and held for disposal are stated at lower of their net book value and net realisable value and are shown separately in the financial statement. Any expected loss is recognised immediately in the Consolidated Statement of Profit and Loss.

           Losses arising from the retirement of, and gains or losses arising from disposal of property plant and equipments, which are carried at cost are recognised in the Consolidated Statement of Profit and Loss.

3.5     INTANGIBLE ASSETS

           Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment losses, if any. Intangible assets are amortised on a straight line basis over their estimated useful lives. The amortisation period and the amortisation method are reviewed at least at the end of each financial year. If the expected useful life of the asset is significantly different from brvious estimates, the amortisation period is changed accordingly.

           Computer software which is not an integral part of the related hardware is classified as an intangible asset. Based on Management's evaluation ,the intangible assets are amortised over the period of 5 years of useful life.

           Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Consolidated Statement of Profit and Loss.

           Goodwill on consolidation and acquired on amalgamation / acquisition of business is tested for impairment on the balance sheet date and impairment loss if any, is recognised in the consolidated statement of profit and loss.

3.6     DEbrCIATION AND AMORTIZATION

           (i)      Debrciation on property plant and equipment is provided on a pro-rata basis on the straight -line method over the estimated useful lives of the assets as brscribed by Schedule II to the Companies Act, 2013.

           (ii)     Leasehold improvements are amortised over the primary period of lease.

           (iii)    The intangible assets are amortised over the period of 5 years of useful life.

           (iv)    Debrciation on additions/ deletions to property plant and equipment is provided on pro-rata basis from/ upto the date the asset is put to use/ discarded.

           Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Consolidated Statement of Profit and Loss.

3.7     INVESTMENTS

           Investments that are readily realisable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long-term investments (non-current investments).

           Current investments are carried at lower of cost or fair value. In case of investment in mutual funds, the net asset value of units declared by the mutual funds is considered as fair value.

           Long-term investments are carried at cost. However, provision for diminution is made to recognise a decline, other than temporary, in the value of the investments, such reduction being determined and made for each investment individually.

           Amount of interest attributable to bracquisition period is reduced from cost once it is received and balance is recognised in the statement of profit and loss.

3.8     INVENTORIES

           The securities acquired with the intention of short term holding and trading positions are considered as "Stock-in-Trade" and disclosed as Current Assets.

           The securities held as "Stock-in-Trade" under Current Assets are valued at lower of cost or market value. When stock is valued at cost, it is based on FIFO method.

3.9     BORROWING COSTS

           All borrowing costs except which are eligible for capitalisation, are charged to Statement of Profit and Loss on accrual basis.

3.10  FOREIGN CURRENCY TRANSACTIONS

           (i)      Transactions in foreign currencies are recorded at the rate of exchange in force at the time of occurrence of the transactions.

           (ii)     Exchange differences arising on settlement of revenue transactions are recognised in the Consolidated Statement Profit and Loss.

           (iii)    Monetary items denominated in a foreign currency are restated using the exchange rates brvailing at the date of balance sheet and the resulting net exchange difference is recognised in the Consolidated Statement of Profit and Loss.

3.11  EMPLOYEE BENEFITS

           (i)      Provident Fund

                      The Group contributes to a Recognised Provident Fund which is a defined contribution scheme. The contributions are accounted for on an accrual basis and recognised in the Consolidated Statement of Profit and Loss.

           (ii)     Gratuity

                      The Group provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The gratuity provides for a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the tenure of employment. The liability is acturially determined (using the Projected Unit Credit method ) at the end of each year. Acturial losses/gains are recognised in the consolidated statement of profit and loss in the year in which they arise.

           (iii)    Compensated Absences

                      The employees of the Group are entitled to compensated absences as per the policy of the Group. Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year are treated as short term employee benefits. The obligation towards the same is measured at the expected cost as the additional amount expected to be paid as a result of the unused entitlement as at the year end.

                      Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year are treated as long term employee benefits. The Group's liability for compensated absences is actuarially determined using the Projected Unit Credit method at the end of each year. Actuarial losses/gains are recognised in the consolidated statement of profit and loss in the year in which they arise.

3.12  LEASED ASSETS

           Assets acquired under Leases where a significant portion of the risks and rewards of the ownership are retained by the lessor are classified as Operating Leases. The rentals and all other expenses of assets under operating leases are charged to the Consolidated Statement of Profit and Loss on a straight-line basis over the period of the lease.

           Assets given on operating leases are included in fixed assets. Lease income is recognised in the Statement of Profit and Loss on straight line basis over the lease term. Initial direct costs such as legal costs, brokerage costs, etc are recognised immediately in the Consolidated  Statement of Profit and Loss.

3.13  CURRENT AND DEFERRED TAX

           (i)      Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws brvailing.

           (ii)     Provision for taxation for the year is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income Tax Act, 1961.

           (iii)    Current tax assets and liabilities are offset when there is a legally enforceable rights to set off the recognised amount and there is intention to settle the assets and the liabilities on a net basis.

           (iv)    Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax asset, on timing differences, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years.

           (v)     Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty of their realisation. This reasonable level of certainty would normally be achieved by examining the past record of the Group and by making realistic estimates of profits for the future. In case of carry forward losses and unabsorbed debrciation, under tax laws, the deferred tax assets are recognised only to the extent there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be raised.

           (vi)    Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted on the balance sheet date. At each balance sheet date, the Group re-assesses unrecognised deferred tax assets, if any.

           (vii)   Deferred tax assets and liabilities are offset when there is a legally enforceable rights to set off assets against liabilities rebrsenting the current tax and where the deferred tax assets and liabilities relate to taxes on income levied by the same governing taxation laws.

           (viii)  Minimum Alternative Tax (MAT) Credit is recognised as an asset only when and to the extent there is convincing evidence that the Group will pay normal income tax during the specified period.

3.14  PROVISIONS AND CONTINGENT LIABILITIES

           (i)      Provisions are recognised when there is a brsent obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the brsent obligation at the Balance Sheet date and are not discounted to its brsent value.

           (ii)     Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurence or non occurence of one or more uncertain future events not wholly within the control of the Group or a brsent obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Contingent assets are not recognised in the financial statements.

           (iii)    In respect of a subsidiary which is a Non- Banking finance Company,  contingent provisions on standard assets, provisions for non - performing assets and classification of assets is made in line with "Non - systematic important Non-Banking Financial ( Non-Deposit accepting or holding) Companies Prudential norms (Reserve Bank) Directions,2015 "(NBFC Direction, 2015 ).

           (iv)    Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed.

3.15  IMPAIRMENT OF ASSETS

           The Group assesses at each balance sheet date whether there is any indication that an asset (tangible or intangible) may be impaired. An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the consolidated statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss is reversed to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had brviously been recognised.

3.16  EARNINGS PER SHARE

           The basic earnings per share is computed by dividing the net profit /(loss) attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting year. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year. The diluted earnings per share is computed by dividing the net profit/(loss) after tax by the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

3.17  CASH AND CASH EQUIVALENTS

      Cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

3.18  SEGMENT REPORTING

           Inter-segment revenue have been accounted for based on the transaction price agreed to between segments which is primarily market based. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the Group as a whole and are not allocable to segments on a reasonable basis, have been included under “Unallocated expenses/income”.

3.19  Dividends to Company’s shareholders

           The Dividend paid to shareholders is recognised, once it is approved by the shareholders in the general meeting. While Interim dividend is recognised basis approval by the Board of directors.

Employee Benefits Plan

The Company is recognizing and accruing the employee benefits as per Accounting Standard (AS) – 15 (revised 2005) “Employee Benefits” issued by the Institute of Chartered Accountants of India.

Disclosure relating to actuarial valuation of  Gratuity and Compensated Absences Liability

		Amounts in Rs.		Amounts in Rs.
	Year Ended		Year Ended
Assumptions	March 31, 2017		March 31, 2016
	Gratuity	Compensated Absences	Gratuity	Compensated Absences
Discount Rate	6.65%	6.65%	7.29%  - 7.72%	7.29%  - 7.72%
Salary Escalation	3.00%	3.00%	3.00%	3.00%
Changes in Present Value of Obligations
Liability at the beginning of the year	2,10,64,177	91,79,868	1,70,22,731	66,22,994
Interest Cost	17,20,233	6,66,437	13,59,345	5,29,326
Current Service Cost	46,96,483	37,34,995	19,49,447	24,44,230
Liability Transfer In/ (Out)	-	-	-	-
Benefit Paid	(84,37,156)	(24,11,951)	(66,96,352)	(27,52,560)
Actuarial Loss/(Gain) on Obligations	79,03,768	41,20,343	74,29,006	23,35,878
Liability at the end of the year	2,69,47,505	1,52,89,692	2,10,64,177	91,79,868
Actuarial Loss / (Gain) Recognised
Actuarial Loss / (Gain) for the year (Obligation)	79,03,768	41,20,343	74,29,006	23,35,878
Actuarial Loss / (Gain) for the year (Plan Asset)	-	-
Total Loss / (Gain) for the year	79,03,768	41,20,343	74,29,006	23,35,878
Actuarial Loss / (Gain) Recognised for the year	79,03,768	41,20,343	74,29,006	23,35,878
Amounts to be Recognised in the Consolidated Balance Sheet
Liability at the end of the year	2,69,47,505	1,52,89,692	2,10,64,177	91,79,868
Amount of Liability Recognised in the Balance Sheet	2,69,47,505	1,52,89,692	2,10,64,177	91,79,868
Expenses Recognised in the Consolidated Statement of Profit and Loss
Current Service Cost	46,96,483	37,34,995	19,49,447	24,44,230
Interest Cost	17,20,233	6,66,437	13,59,345	5,29,326
Expected Return on Plan Assets	-	-	-	-
Net Actuarial Loss/(Gain) on Obligations	79,03,768	41,20,343	74,29,006	23,35,878
Expenses Recognised in the Statement of Profit and Loss	1,43,20,484	85,21,775	1,07,37,798	53,09,434
Movement in the Liability Recognised in Consolidated Balance Sheet
Opening Net Liability	2,10,64,177	91,79,868	1,70,22,731	66,22,994
Expense as above	1,43,20,484	85,21,775	1,07,37,798	53,09,434
Benefits paid	(84,37,156)	(24,11,951)	(66,96,352)	(27,52,560)
Amount Recognised in Balance Sheet	2,69,47,505	1,52,89,692	2,10,64,177	91,79,868
Experience Adjustments
On Plan Liability Losses/(Gains)	57,65,821	(16,03,641)	(44,45,103)	(5,90,578)
Classification
- Current	11,41,720	60,59,829	8,29,558	42,69,862
- Non-current	2,58,05,785	92,29,863	2,02,34,619	49,10,010

Experience adjustments							Amount in Rs.
		Year Ended March 31, 2015		Year Ended March 31, 2014		Year Ended March 31, 2013
	Particulars	Gratuity	Compensated Absences	Gratuity	Compensated Absences	Gratuity	Compensated Absences
	Experience adjustments on Plan Liabilities (Loss) / Gain	(33,86,536)	3,00,037	57,60,575	(9,41,742)	36,79,093	(2,22,461)

SEGMENT REPORTING :

Primary Segments:

1. The business segments has been considered as the primary segment for disclosure. The company's primary business comprises of following segments

Segment	Activities covered
Finance and Investing Activities	Income from financing and investment income
Health and allied fitness activities	Income from fitness center operations
Agency based activities	Broking, advisory, product distribution and other fee based services

2. The Companys primary business segments are reflected based on principal business activities, the nature of service, the differing risks and returns, the organization structure and the internal financial reporting system.

3. Segment revenue, results, assets and liabilities have been accounted for on the basis of their relationship to the operating activities of the segment and amounts allocated on a reasonable basis.

Geographical Segment:

The Company operates in one geographic segment namely Within India and hence no separate information for geographical segment is required. 

					(Amount in Rupees)
	March 31,2017
Particulars	Finance and Investing activities	Health and allied fitness activities	Agency based activities	Unallocated	Total
Segment Revenue
External Revenue	265,786,771	62,466,543	5,194,849,768	17,200	5,523,120,283
Inter - Segment Revenue	42,841,258	(3,513,477)	(39,327,781)	-	-
Total Revenue	308,628,029	58,953,066	5,155,521,987	17,200	5,523,120,283
Segment Results
Segment Results	205,861,516	(27,472,836)	300,664,973	17,200	479,070,854
Profit before tax	205,861,516	(27,472,836)	300,664,973	17,200	479,070,854
Income taxes (Current and Deferred tax)					168,927,860
Profit after tax					310,142,994
Other Information
Segment Assets	1,404,230,986	187,098,521	16,329,965,565	106,782,322	18,028,077,395
Segment Liabilities	597,122,149	134,164,654	13,397,614,469	4,826,077	14,133,727,349
Capital Expenditure (including capital work-in-progress)	-	15,960,978	106,390,458	-	122,351,435
Segment Debrciation and Amortization	6,573,891	12,347,135	116,303,926	-	135,224,952
Segment non-cash expense other than Debrciation	2,108,420	228,368	66,306,464	-	68,643,252

					(Amount in Rupees)
	March 31,2016
Particulars	Finance and Investing activities	Health and allied fitness activities	Agency based activities	Unallocated	Total
Segment Revenue
External Revenue	241,317,313	67,516,099	4,245,727,041	67,701,305	4,622,261,758
Inter - Segment Revenue	40,021,640	(1,050,052)	(38,971,588)	-	-
Total Revenue	281,338,953	66,466,047	4,206,755,453	67,701,305	4,622,261,758
Segment Results
Segment Results	111,340,608	(12,395,039)	352,840,996	67,701,305	519,487,870
Profit before tax	111,340,608	(12,395,039)	352,840,996	67,701,305	519,487,870
Income taxes (Current and Deferred tax)					202,240,885
Profit after tax					317,246,985
Other Information
Segment Assets	1,086,007,874	183,846,048	10,019,494,155	99,461,612	11,388,809,689
Segment Liabilities	285,508,742	106,482,134	7,294,064,182	9,720,032	7,695,775,090
Capital Expenditure (including capital work-in-progress)	-	34,314,197	134,768,372	-	169,082,570
Segment Debrciation and Amortization	6,183,207	12,339,944	111,623,057	-	130,146,208
Segment non-cash expense other than Debrciation	2,347,276	171,153	74,340,796	-	76,859,226