Notes to Accounts of Ashika Credit Capital Ltd.

Mar 31, 2018

1(a) Corporate Information

Ashika Credit Capital Limited (the ''Company'') is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The shares of the Company are listed on The Calcutta Stock Exchange Limited and Metropolitan Stock Exchange of India Limited. The Company received a Certificate of Registration from the Reserve Bank of India (''RBI'') on 07th September, 1998 to commence/carry on the business of Non Banking Financial Institution ("NBFI").

2.1 Rights, preferences and restrictions in respect of Equity Shares

The Company''s authorised capital consists of one class of shares, referred to as Equity Shares having par value of RS.10/- each. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the 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.

2.2 Shares allotted as fully paid-up without payment being received in cash/by way of bonus shares (during 5 years preceding 31st March, 2018) -

The Company has not issued any shares without payment being received in cash/ by way of bonus shares since 2012-13.

2.3 The Company had issued and allotted 38,05,174 Equity Shares of the face value of RS.10 each at a premium of RS.26 per share on preferential basis to some of the Promoter and Non-Promoter Group Entities on 27th March, 2018.

2.4 MONEY RECEIVED AGAINST SHARE WARRANTS

The Company had issued and allotted 10,80,000 Fully Convertible Warrants to one of the Promoter Group Entities on a preferential basis on 27th March, 2018 on receipt of 25% of the issue price amounting to RS.97.20 Lakh, entitling it to obtain equivalent number of equity shares of RS.10 each fully paid-up (including premium of RS.26 per share).

3.1 Nature of certain provisions and their movement

Provision for Bad Debts is made in the financial statements according to the Prudential Norms prescribed by RBI for NBFCs.

The Company creates a general provision at 0.25% of the standard assets outstanding on the balance sheet date, as per the RBI Prudential Norms.

4. DEFERRED TAX ASSETS (Net)

In terms of Accounting Standard 22, the net Deferred Tax Asset (DTA) reversed during the year is RS.97.38 lakhs (Previous year: RS.78.29 lakhs). Consequently, the net DTA as at year-end stands at RS.119.10 lakhs (Previous Year: RS.216.48 lakhs). The break-up of deferred tax is as follows:

¹ Secured by way of maintaining a margin of such percentage as stipulated in the Loan Agreement relevant to the loan facility or as varied by the Company consisting of securities acceptable to the Company.

² Includes Non-Performing Assets of RS.150 lakhs (Previous year RS.845 lakhs).

5. LEASES

In the capacity of Lessee

(i) The Company has cancellable operating lease arrangement for office premises, which is of 3 years and is usually renewable by mutual consent, on mutually agreeable terms. Lease payments charged to the Statement of Profit and Loss with respect to such leasing arrangement aggregate to RS.0.90 lakhs (Previous year Nil).

(ii) Further, the Company has a non-cancellable operating lease arrangements for office premises, which is of 3 years and is usually renewable by mutual consent on mutually agreeable terms. In respect of such arrangements, lease payments for the year aggregating to RS.1.20 lakhs (Previous year RS.1.20 lakhs) have been recognised in the Statement of Profit and Loss.

6. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD 18 - RELATED PARTY DISCLOSURES Key Management Personnel (KMP) :

Pawan Jain - Executive Chairman and Whole time Director Daulat Jain - Managing Director & Chief Executive Officer

Anju Mundhra - Company Secretary (Resigned from post of Director w.e.f. 20.11.2017)

Amit Jain - Chief Financial Officer

Enterprises over which KMP and/or relative of such KMP is able to exercise significant influence (with whom transactions have taken place during the year):

Ashika Global Securities Pvt. Ltd.

Ashika Stock Broking Ltd.

Ashika Hedge Fund Pvt. Ltd.

Ashika Share Trading Pvt. Ltd.

Ashika Business Pvt. Ltd.

Puja Sales Promotion Pvt. Ltd.

Shishir Exports Pvt. Ltd.

Pawan Jain (HUF)

7. CIF Value of Imports : Nil (Previous Year: Nil)

8. Expenditure in Foreign Currency : Nil (Previous Year: Nil)

9. Earnings in Foreign Currency : Nil (Previous Year: Nil)

10. Information as required in terms of paragraph 18 of Master Direction - Non-Banking Financial Company -Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 is furnished vide Annexure - I attached herewith.

11. Previous year''s financial statements have been audited by PK.Sah & Associates, Chartered Accountants.

12. Figures pertaining to previous year have been rearranged/ regrouped, wherever necessary, to make them comparable with those of current year.

---

Mar 31, 2015

1. Company Information

Ashika Credit Capital Limited (the Company) is a public limited company domiciled in India and incorporated under the Companies Act, 1956. It''s shares are listed on The Calcutta Stock Exchange Limited since 20th September 2000 and MCX Stock Exchange Ltd. w.e.f 3rd November, 2014 & also traded under the "permitted securities" category at the nationwide platform of BSE Ltd. since 11th November, 2011. The Company is a RBI registered Non-Deposit taking Non Banking Financial Company, carrying on NBFI activities. It is mainly engaged in the business of financing, providing loans and advances, ICD and investment & trading in shares and securities.

2 : Share Capital

b) Terms / rights attached to Equity Shares

The Company has only one class of equity shares having par value of Rs.10/- per share. All these shares have the same right with respect to payment of dividend, repayment of capital and voting. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company the holders of equity shares will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by them.

Nature of certain provisions and their movement

Provision for non-performing assets (NPAs) is made in the financial statements according to the Prudential Norms prescribed by RBI for NBFCs. The Company creates a general provision at 0.25% of the standard assets outstanding on the balance sheet date, as per the RBI Prudential Norms.

3. Contingent Liabilities :

Income Tax dispute under Appeal (net of payment) Rs. 314,820/- (P.Y. 442,030/-).

4. There are no outstanding derivatives contracts as on the balance sheet date (P.Y. Nil).

5. Pursuant to the Companies Act, 2013 becoming effective from 1st April, 2014, the Company has recomputed the depreciation based on the useful life of the assets as prescribed in Schedule II of the Act. As per the transitional provision, the carrying value of the assets as on 1st April, 2014 is reduced by Rs. 1,26,997/- and the amount (net of deferred tax of Rs. 39,242/-) is adjusted in the opening balance of retained earnings. Had the Company continued with the previously adopted policy the depreciation for the year ended on 31st March, 2015 would have been higher by Rs. 57,290/-

6. Employee Benefits

(b) Defined Benefit Plan

The Company has provided for gratuity & privilege leave benefits liability based on actuarial valuation done as per the projected unit credit method. The scheme is unfunded.

The following tables summarize the components of net benefit expenses recognized in the Statement of Profit and Loss and amounts recognized in the balance sheet for the respective plan.

7. Related Parties Disclosures

Related parties disclosures, as stipulated by Accounting Standard-18 ''Related Party Disclosures'', issued by ICAI, are given below:

a) List of Related Parties:

i) Key Management Personnel:

Pawan Jain, Managing Director & CEO.

Amit Jain, Chief Financial Officer

Anju Mundhra, Executive Director-Legal & Company Secretary (Director w.e.f 1st February 2015)

ii) Relatives of Key Management Personnel

Kanchan Devi Jain

iii) Enterprises in which Key Management Personnel & their Relatives having Significant Influence:

Ashika Stock Broking Ltd.

Ashika Global Securities Pvt. Ltd. (formerly, Ashika Global Securities Ltd)

Ashika Capital Ltd.

Ashika Commodities & Derivatives Pvt. Ltd.

Ashika Global Finance Pvt. Ltd.

Ashika Logistics Pvt. Ltd.

Ashika Venture Capital Pvt. Ltd.

Ashika Business Pvt. Ltd.

Ashika Share Trading Pvt. Ltd.

Ashika Hedge Fund Pvt. Ltd.

Ashika Properties Pvt. Ltd.

Ashika Technology Pvt. Ltd.

Ashika Minerals India Pvt. Ltd.

Puja Sales Promotion Pvt. Ltd.

Pawan Jain (HUF)

Daulat Jain (HUF)

Puranmal Jain & Sons (HUF)

b) Transactions with Related Parties:

Aggregate Related Party Transactions as at and for the year ended on 31st March, 2015 (Transactions have been taken place on arm''s length basis.)

8. Foreign Currency Transactions : Nil (P.Y. Nil)

9. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

10. Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2014

1. There are no contingent Lianbilities as on the Balance Sheet Date

(a) Defined benefit plan

The Company has provided for gratuity, privilege /sick leave befts liability based on actuarial valuation done as per the projected unit method. The scheme is unfunded.

The following tables summarise the components of net benefit expenses recognised in the Statement of profit and Loss and amounts recognised in the balance sheet for the respective plan.

*Adjusted for Rs. 1,136/- being the opening sick leave obligation no longer required as there is no outstanding sick leave as on the balance sheet date.

2 related parties Disclosures

Related parties disclosures, as stipulated by Accounting Standard – 18- Related Party Disclosures, issued by ICAI, are given below:

a) list of related parties: i) Key management personnel:

Mr. Pawan Jain, Managing Director

Mr. Daulat Jain (Director upto 30th April, 2013)

ii) relatives of Key management personnel

Kanchan Devi Jain

iii) enterprises in which Key management personnel & their relatives having significant infuence:

Ashika Stock Broking Ltd.

Ashika Global Securities Pvt. Ltd. (formerly Ashika Global Securities Ltd.)

Ashika Capital Ltd.

Ashika Commodities & Derivatives Pvt. Ltd.

Ashika Global Finance Pvt. Ltd.

Ashika Logistics Pvt. Ltd. (formerly Ashika Insurance Broking & Risk Management Pvt. Ltd.)

Ashika Venture Capital Pvt. Ltd.

Ashika Business Pvt. Ltd. (formerly Ashika Forex Services Pvt. Ltd.)

Ashika Share Trading Pvt. Ltd.

Ashika Hedge Fund Pvt. Ltd.

Ashika Properties Pvt. Ltd.

Ashika Technology Pvt. Ltd.

Ashika Minerals India Pvt. Ltd. (formerly Ashika Wealth Management Pvt. Ltd)

Puja Sales Promotion Pvt. Ltd.

Kanchan Devi Puranmal Patni Charitable Trust

Pawan Jain (HUF)

Daulat Jain (HUF)

Puranmal Jain & Sons (HUF)

b) transactions with related parties:

Aggregate Related Party Transactions as at and for the year ended on 31st March, 2014 (Transactions have been taken place on arm''s length basis.)

3. Foreign Currency Transactions : Nil (P.Y. Nil)

4. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non - Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

5. Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2013

Ashika Credit Capital Limited (the Company) is a public limited company domiciled in India and incorporated under the Companies Act, 1956. It’s shares are listed and traded on The Calcutta Stock Exchange Limited since 20th September, 2000 and also traded under the “Permitted Securities” category at the nationwide platform of BSE Ltd. since 11th November, 2011. The Company is a RBI registered non-deposit taking Non Banking Financial Company, carrying on NBFI activities. It is mainly engaged in the business of financing, providing loans and advances and investment & trading in shares and securities.

Note 1

RELATED PARTIES DISCLOSURES

Related parties disclosures, as stipulated by Accounting Standard – 18- Related Party Disclosures, issued by ICAI, are given below:

a) List of Related Parties:

i) Key Management Personnel:

Mr. Pawan Jain, Managing Director

Mr. Daulat Jain, Director

ii) Enterprises owned by Key Management Personnel or their Relatives: Ashika Stock Broking Ltd. Ashika Global Securities Ltd. Ashika Capital Ltd.

Ashika Commodities & Derivatives Pvt. Ltd. Ashika Global Finance Pvt. Ltd.

Ashika Logistics Pvt. Ltd. (formerly Ashika Insurance Broking& Risk Management Pvt. Ltd.) Ashika Venture Capital Pvt. Ltd.

Ashika Business Pvt. Ltd. (formerly Ashika Forex Services Pvt Ltd) Ashika Share Trading Pvt. Ltd. Ashika Hedge Fund Pvt. Ltd. Ashika Properties Pvt. Ltd. Ashika Technology Pvt. Ltd.

Ashika Minerals India Pvt. Ltd. (formerly Ashika Wealth Management Pvt. Ltd) Puja Sales Promotion Pvt. Ltd. Kanchan Devi Puranmal Patni Charitable Trust

2. Foreign Currency Transactions : Nil (P.Y. Nil)

3. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non - Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

4. Previous years’ figures have been regrouped/ reclassified wherever necessary to correspond with the current years’ classification / disclosure.

---

Mar 31, 2012

Note 01 COMPANY INFORMATION

Ashika Credit Capital Limited (the Company) is a public limited Company domiciled in India and incorporated under the Companies Act'1956. Its shares are listed and traded on The Calcutta Stock Exchange Limited since 20th September, 2000 and also traded under the "permitted securities" category at the nationwide platform of BSE Ltd. since 11th November, 2011. The Company is RBI Registered non-deposit taking Non-Banking Financial Company carrying on NBFI activities. It is mainly engaged in the business of financing, providing loans and advances and investment and trading in shares and securities.

Note 02 Change IN ACCOUNTING POLICIES

Presentation and disclosure of financial statements

During the year ended 31st March 2012, the revised Schedule VI under the Companies Act 1956 has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

Leave Benefits Employees

Till previous year the Company followed the policy to pay sick leave and privilege leave benefit to employees on year to year basis. From 1st April, 2011 the Company has changed its policy not to pay on year to year basis and instead accumulate the same to be paid at the time retirement or termination, as the case may be. The above change in policy does not have any material impact to the profit and loss position vis-a-vis state of affairs of the Company.

a) Terms / rights attached to Equity Shares

The Company has only one class of equity shares having par value of Rs.10/- per share. All these shares have the same right with respect to payment of dividend , repayment of capital and voting.

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.

(Amount in Rupees) Year ended Year ended

31 March, 2012 31 March, 2011

Note 3 CONTINGENT LIABlLITIES NOT PROVIDED FOR IN RESPECT OF:

Bank Guarantee (jointly with two other guarantors) in favour of M/s Ashika Stock - 10,00,00,000/-

Broking Limited, Company in which two of the directors are interested. Aggregate value.

Note:

a) The Company operates in only one geographic segment i.e. 'within India' and hence no separate information for geographic segment vide disclosure is required.

b) Segment revenue, results, assets and liabilities include amounts identifiable to each segment and amounts allocated on a reasonable basis.

c) The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information as disclosed in note no. 1.1

NOTE 4 EMPLOYEE BENEFITS:

(a) Defined Contribution Plans

Contribution to Regional Provident Fund Authority charged to Profit and Loss Account during the year is Rs.160,658/- (P.Y. Rs. 47,619/-).

(b) Defined Benefit Plans (i) Gratuity :

The Company has provided for gratuity liability based on actuarial valuation done as per the projected unit method. The scheme is unfunded.

The following tables summarise the components of net benefit expenses recognised in the Profit and Loss Account and amounts recognised in the balance sheet for the respective plan.

iii) Sick Leave to Employees:

The Company has provided for Leave benefits liability based on actuarial valuation done as per the projected unit method. The scheme is unfunded.

The following tables summarise the components of net benefit expenses recognised in the Profit and Loss Account and amounts recognised in the balance sheet for the respective plan:

5. None of the Fixed Assets of the Company are considered impaired as on the Balance Sheet date.

6. Foreign Currency Transactions : Nil (P.Y. Nil)

7. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

8. The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous years' figures have been regrouped/ reclassified wherever necessary to correspond with the current years' classification / disclosure.

---

Mar 31, 2011

1. Contingent Liabilities not provided for in respect of :

(Amount in Rs.)

Particulars As at As at 31st March, 2011 31st March, 2010

Bank Guarantee (jointly with two other guarantors) in favour of M/s Ashika Stock 10,00,00,000/- 7,50,00,000/- Broking Limited, Company in which two of the directors are interested. Aggregate value

2. Sundry Debtors (Schedule - 6) includes

a) Rs.27,59,118 (P.Y. 7,50,61,893) receivable from M/s. Ashika Stock Broking Ltd., a Company in which two of the directors are interested.

b) Rs.97,56,989 (P.Y. Nil) receivable from M/s. Ashika Commodities & Derivatives Pvt. Ltd. a Company in which two of the directors are interested.

3. Other Current Assets (Schedule -8) Includes Interest accrued on Securities Margin Rs. 43,36,833/- (P.Y. Nil) receivable from M/s. Ashika Commodities & Derivatives Pvt. Ltd, a Company in which two of the directors are interested.

4. The Company has not received any memorandum (as required to be filled by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March, 2011 as micro, small or medium enterprise. Consequently the amount paid/payable to these parties during the year is Nil. (P.Y. Nil).

Note: - Deferred Tax Assets on carried forward capital loss is not recognised in view of uncertainty of it's recovery.

Note: (i) Remuneration paid to Managerial Personnel is within the limit specified in Part II to Schedule XIII to the Companies Act, 1956.

(ii) Provision for gratuity in respect of above Managerial Personnel is not included above, as actuarial valuation is done on an overall basis.

5. Since the Board had deferred the matter in relating to the proposed Further Public Offer (FPO) by the Company, expenses relating to such issue incurred so far has been kept as such under the head' Miscellaneous Expenditure' and will be written off or adjusted in the year of Issue of shares.

6. Segment Reporting :

Segment information for the year ended 31st March, 2011. Primary Segment information (by business segment)

Note:

a) The Company operates in only one geographic segment i.e. 'within India' and hence no separate information for geographic segment vide disclosure is required.

b) Segment revenue, results, assets and liabilities include amounts identifiable to each segment and amounts allocated on a reasonable basis.

c) The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information as disclosed in (A) above.

Note: The above figures are exclusive of Rs. 2,20,600/- (P.Y. Rs. 29,781/- (the figure are inclusive of service tax), being the certification fees paid and included under the 'Share Issue Expenses'.

Note : The entire Closing Stocks are held at a nominated warehouse of National Spot Exchange Limited.

7. Employee Benefits :

The Company has provided for gratuity liability based on actuarial valuation done as per the projected unit method. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is unfunded.

The following tables summarize the components of net benefit expenses recognized in the Profit & Loss Account and amounts recognized in the balance sheet for the respective plan.

8. Related Parties Disclosures :

Related parties disclosures, as stipulated by Accounting Standard - 18- Related Party Disclosures, issued by ICAI, are given below:

a) List of Related Parties :

i) Key Management Personnel:

Mr. Pawan Jain, Managing Director.

Mr. Daulat Jain, Director. ii) Enterprises owned by Key Management Personnel or their Relatives:

Ashika Stock Broking Ltd.

Ashika Global Securities Ltd.

Ashika Capital Ltd.

Ashika Commodities & Derivatives Pvt. Ltd.

Ashika Global Finance Pvt. Ltd.

Ashika Insurance Broking & Risk Management Pvt. Ltd.

Ashika Venture Capital Pvt. Ltd.

Ashika Forex Services Pvt. Ltd.

Ashika Share Trading Pvt. Ltd.

Ashika Hedge Fund Pvt. Ltd.

Ashika Properties Pvt. Ltd.

Ashika Technology Pvt. Ltd.

Ashika Wealth Management Pvt. Ltd.

b) Transactions with Related Parties :

Aggregate Related Party Transactions as at 31st March, 2011 (Transactions have been taken place on arm's length basis.)

Notes : Figures in brackets represent figures of previous year.

9. None of the Fixed Assets of the Company are considered impaired as on the Balance Sheet date.

10. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

11. Previous year's figures have been rearranged or regrouped wherever deemed necessary to conform to current year presentation.

12. Current Year Business Profile and Balance Sheet Abstract are annexed hereto.

* represents the investments in unquoted equity shares which are taken at their respective bookvalue in absence of availability of break-up zvalue as on 31st March, 2011 of the invested companies.

---

Mar 31, 2009

1. The Company has given guarantee (jointly with two other guarantors) to a bank in favour of M/s Ashika Stock Broking Limited, a Company in which two of the directors are interested. Amount outstanding as on 31st March, 2009 is Rs.7.50 Crores,

2. Loans and Other Credit Facilities (Schedule – 9) includes –

a) Rs.142,172/- (P.Y. Rs.36,59,733/-) to M/s Ashika Forex Services Pvt Ltd , a Company in which two of the directors are interested. Maximum amount outstanding at a point of time is Rs.34,59,733/- (P.Y. Rs. 50,00,000/-)

b) Rs.57,85,323/- (P.Y. Rs.1,79,69,202/-) to M/s Ashika Global Securities Ltd, a Company in which two of the directors are interested. Maximum amount outstanding at a point of time is Rs.13, 81,69,202/- (P.Y Rs. 5,01,00,000/-).

c) Rs.406,243/- (P.Y. Nil) to M/s Ashika Insurance Broking & Risk Management Pvt. Ltd, a Company in which two of the directors are interested. Maximum amount outstanding at a point of time Rs.11, 50,000/- (P.Y Nil)

3. Based on the information given by the Company, no creditor is covered under Micro, Small and Medium Enterprise Development Act, 2006. As a result, no interest provisions / payments have been made by the company to such creditors, if any and no disclosures thereof are made in these accounts.

Note: (i) Remuneration paid to Manager is within the limit specified U/s Part II to Schedule XIII to the Companies Act, 1956.

(ii) As the future liability for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to the Manager is not ascertainable and, thereof, not included above.

# Includes Rs. 36,609.39 being Impact of deferred tax assets as on 1st April, 2008 as per revised As- 15. Note: - Deferred Ta x Assets on carried forward capital loss is not recognised in view of uncertainty of it's recovery.

4. The Company is mainly engaged in only one Business Segment i.e. the business of Investing and Financing related Activities and its operation is confined to only one Geographical Segment i.e. India. All other activities of the Company revolve around the main business. As such, no further disclosure under Accounting Standard 17 – Segment Reporting issued by the Institute of Chartered Accountants of India is required.

5. Employee Benefits

In the current year the Company has adapted accounting Standard 15 (revised) employee benefit which is mandatory from accounting period commencing on or after Dec., 2006, Accordingly, the company has provided for gratuity liability based on actuarial valuation done as per the projected unit credit method. This change does not have any material impact on the profit for the year. Further, in accordance with the translation provision allowed in AS – 15, a sum of Rs.81,867.61/- (net of Deferred tax assets Rs.36,609.39) being the impact of such change on the respective liabilities upto 31st March, 2008 has been adjusted against the opening credit balance of Profit & Loss Account. The scheme is unfunded.

The following tables summarize the components of net benefit expenses recognized in the Profit & Loss Account and funded status and amounts recognized in the balance sheet for Gratuity.

(vi) The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factor, such as supply and demand in the employment market.

(vii) The Company as on the balance sheet date does not have any employee who has completed five years of service. Therefore, although the provision for gratuity has been made as at year end, the Company has not contributed any amount to the gratuity fund. The Company expects to contribute Rs.48,372/- to Gratuity fund in 2009-2010.

Note : The current year being the first year of adoption of As – 15 (revised) by the Company, the previous year's comparative information have not been furnished.

6. Related Parties Disclosures

Related parties disclosures, as stipulated by Accounting Standard – 18- Related Party Disclosures, issued by ICAI, are given below:

a) List of Related Parties:

i) Subsidiary Company upto 3rd November, 2008:

Ashika Capital Limited. (upto 3rd November, 2008) Ashika Insurance Broking & Risk Management Pvt. Ltd. (fellow subsidiary upto 3rd November, 2008)

ii) Key Management Personnel:

Mr. Pawan Jain

Mr. Daulat Jain.

iii) Enterprises owned by Key Management Personnel or their Relatives:

Ashika Stock Broking Ltd.

Ashika Global Finance Pvt. Ltd.

Ashika Venture Capital Pvt. Ltd.

Ashika Forex Services Ltd.

Ashika Global Securities Ltd.

Ashika Properties Pvt. Ltd.

Ashika Technologies Pvt. Ltd.

Ashika Commodities & Derivatives Pvt. Ltd.

b) Transactions with Related Parties

Aggregate Related Party Transactions as at and for the year ended 31st March, 2009 (Transactions have been taken place on arm's length basis.)

7. None of the Fixed Assets of the Company are considered impaired as on the Balance Sheet date.

8. Transactions in Foreign Currency – Nil (Previous year Nil).

9. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

10. Previous year's figures have been rearranged or regrouped wherever deemed necessary to conform to current year presentation.

11. Current Year Business Profile and Balance Sheet Abstract are annexed hereto.

* represents the investments in unquoted equity shares which are taken at their respective book value in absence of availability of break-up value of the invested company.

---

Mar 31, 2008

1. In the opinion of the Board and to the best of their knowledge and belief the realisable value of Current Assets in the ordinary course of business, would not be less than the amount at which they are stated at the Balance Sheet. Provisions for all known liabilities are provided for in full in the book of accounts and the same are adequate and not in excess of the amount reasonably necessary.

2. The Company has no contingent liabilities as on the Balance Sheet date.

3. Loans and Other Credit Facilities (Schedule – 9) includes –

a) Rs.36,59,733/- to M/s Ashika Forex Services Pvt Ltd , a Company in which two of the directors are interested . Maximum outstanding amount at a point of time is Rs.50,00,000/-

b) Rs.1,79,69,202/- to M/s Ashika Global Securities Ltd , in which two of directors are interested. Maximum amount outstanding at a time is Rs.5,01,00,000/-.

c) Rs.2,13,335/- to M/s Ashika Properties (P) Ltd, in which two of directors are interested. Maximum outstanding Rs.2,00,000/-.

4. Interest Accrued on Margin Money Deposits Rs. 9,10,963/- (Refer Schedule – 9) is due from M/s. Ashika Stock Broking Ltd., a Company in which two of the Directors are interested.

5. Secured loans given to customers amounting to Rs. 1,11,31,400/- (Refer Schedule – 9) is secured against margin of tradable shares having market value as on 31st March, 2008 of Rs. 3,43,91,500/-. The same shares are further being transferred to the account of Company's Broker as margin.

6. Sundry Debtors (Schedule – 7) represents Rs. 12,11,973.71 to M/s. Ashika Stock Broking Ltd., a Company in which two of the Directors are interested.

7. There are no Micro and Small Enterprises to whom the company owes which are outstanding for more than 45 days as at 31st March, 2008. This Information has been provided to the extent such parties have been identified by the company based on information available with it and has been relied upon by the auditors.

8. Transactions in Foreign Currency – Nil (Previous year Nil)

Note: Deferred Tax Assets on carried forward capital loss is not recognised in view of uncertainty of its recovery.

9. Additional Information as required under Schedule VI to the Companies Act, 1956 :

Note : Figures are rounded off to the nearest ruppee

10. None of the Fixed Assets of the Company are considered impaired as on the Balance Sheet date.

11. In the opinion of the management, during the year the company is mainly engaged in the business of Investing and Financing related Activities. All other activities of the Company revolve around the main business. As such, there are no separate reportable segments.

12. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

13. Previous year's figures have been rearranged or regrouped wherever deemed necessary to conform with current year presentation.

* represents the investments in unquoted equity shares which are taken at their respective book value in absence of availability of break-up value of the invested company.

Note : Previous year's figures have been regrouped wherever necessary to conform to the current year's classification.