Notes to Accounts of Advik Capital Ltd.

Mar 31, 2025

Loan from Axis Bank of Rs. 32.00 Lakhs ( Previous Year :Nil) Secured against hypothecation of car at the rate of interest 10.20% p.a. payable in 37 Months commencing from May-2024. The remaining maturity period is 26 Months from Balance sheet Date.

* Loans without specifying any terms or period of repayment are considered as repayable on demand. Note No.12 : Lease Liabilities

Effective April 01, 2019 the Company adopted Ind AS 116 "Leases" and applied the standard to all lease contracts existing on April 01,2019 using the modified retrospective method. ROU are measured at cost comprising the amount of the initial measurement of lease liability, any lease payments made at or before the commencement date and any initial direct costs less any lease incentives received. Lease liabilities were recognized based on the present value ol the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application.

The following is the summary of practical expedient selected on initial application:

1. Applying a single discount rate to a portfolio of leases with reasonably similar characteristics

2. Applied the exemption not to recognize right-to-use assets and liabilities for leases with less than 12 months of lease term on the date on initial application.

3. Excludedtheinitialdirectcostsfromthemeasurementoftheright-of-useassetatthedateof initial application. The weighted average incremental borrowing rate applied to lease liabilities is 9%

ADVIK CAPITAL LIMITED

Regd. Office: G-3, 34/1, Vikas House, East Punjabi Bagh, New Delhi-110026 CIN: L65100DL1985PLC022505 | www.advikcapital.com

Standalone Statement of change in equity for the year ended as at March 31, 2025

a) The company has not issued any Bonus share''s during the last two financial years.

b) The company has not buy back any share''s during the last two financial years

c) The company has not forfieted shares''s during the last two financial years.

d) The company has not issued any securities, which convertible into equity shares.

e) Terms attached to Equity Shares

The rights, powers and preference relating to each class of share and the qualifications limitations and restrictions thereof are contained in the Memorandum and Articles of Association of the Company. The Company has only one class of Equity Shares having a par value of Rs.1 per share. Each holder of equity shares is entitled to one vote per share. Any shareholder whose name is entered in the Register of Members of the company shall enjoy the same rights and be subject to the same liabilities as all other shareholders of the same class.

In the event of winding up/ liquidation of the company, Equity Shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. For the said purpose, the liquidator may set such value as he deems fair upon any property to be divided and may determine how such division shall be carried out between the members.

As per Section 45-IC (1) of Reserve Bank of India Act, 1934, every non-banking financial company shall create a reserve fund and transfer therein a sum not less than twenty per cent of its net profit every year as disclosed in the profit and loss account and before any dividend is declared.

(1) During the financial year ending 31st March''2025, the company has completed 1 right issue (IPO) and issued 18,03,66,825 Shares @ Rs. 2.50 per share (Including premium of Rs. 1.50 per share). The shares were allotted on 17th October''2024 & were listed on Bombay stock exchange & National Stock Exchange of India.

(2) The proceeds from right issues during the year for the purpose of meeting augment the capital base of our Company and general corporate purposes were majorly utilized collectively towards repayment of company''s borrowings and advancement of loans in accordance with business objects of the company.

(1) During the financial year ending 31st March''2024, the company has completed 1 right issue (IPO) dated 11th October''2023 and issued 20,79,60,320 Shares @ Rs. 2.40 per share. The shares were allotted on 13th October''2023 & were listed on Bombay stock exchange & National Stock Exchange of India.

* Income Tax demand for the AY 2022-23 is subject to rectification

** Income Tax dispute for the AY 2023-24 is pending at CIT(A), Delhi. The company has provided for tax liability including interest accrued till year ending 31st March 2025 against self assessment tax for Rs. 380.68 Lakhs

*** Income Tax demand for the AY 2024-25 is subject to rectfication. The company has provided for tax liability including interest accrued till year ending 31st March 2025 against self assessment tax for Rs. 43.85 Lakhs

Guarantee given to Indusind Bank Ltd. for erstwhile subsidiary Advik Optoelectronics Limited for Rs. 142.84 lacs (Previous year Rs 142.84 lacs), Process for satisfaction of charge is in process There is demand of Rs 1.10 Lakhs for past outstanding TDS demand as per traces site as at 31.03.2025 Capital Commitments : Nil (Nil)

Note No.31: Capital Management

The primary objective of the Company''s capital management policy is to ensure that the Company complies with capital adequacy requirements required by the Reserve Bank of India and maintain strong credit ratings and healthy capital ratios in order to support its business and to maximize shareholders value.

The Company''s capital management objectives are :

- to ensure the Company''s ability to continue as a going concern

- to comply with externally imposed capital requirement and maintain strong credit ratings

- to provide an adequate return to shareholders"

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the sub-ordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets (including investments in Subsidiary companies). In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

* Net debt includes debt securities borrowings other than debt securities sub-ordinated liabilities interest accrued - cash and cash equivalents - bank balances other than cash and cash equivalents.

Note No. 32: Maturity Analysis Of Assets And Liabilities

The table below shows an analysis of assets and liabilities analyzed according to when they are expected to be recovered or settled. Derivatives have been classified to mature and/or be repaid within 12 months, regardless of the actual contractual maturities.

The above sensitivity analysis is based on a change an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied which was applied while calculating the defined benefit obligation liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to previous year

iii) Enterprise over which KMP and their relatives exercise significant influence

Ebix Cash Ltd. (Step down Subsidiary of Eraaya Lifespaces Limited)

Ebix Cash World Money Ltd. (Step down Subsidiary of Eraaya Lifespaces Limited) Eraaya Lifespaces Limited

(B) Fair values hierarchy

Financial assets and financial liabilities are measured at fair value in the financial statements and are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

The categories used are as follows:

Level 1: Quoted prices (unadjusted) for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs;

Level 3: Inputs which are not based on observable market data (unobservable inputs).

Valuation technique used to determine fair value

The fair value of a financial instrument on initial recognition is normally the transaction price (fair value of the consideration given or received). Subsequent to initial recognition, the Company determines the fair value of financial instruments that are quoted in active markets using the quoted bid prices (financial assets held) or quoted ask prices (financial liabilities held) and using valuation techniques for other instruments. Valuation techniques include discounted cash flow method, market comparable method, recent transactions happened in the Company and other valuation models. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

Valuation process and technique used to determine fair value Specific valuation techniques used to value financial instruments include:

Eligible loans valued by discounting the aggregate future cash flows (both principal and interest cash flows) with credit risk-adjusted discounting rate for the remaining portfolio tenor. The Company has considered the average valuation impact arrived using risk free, cost of funds and yield free securitization approach.

The use of net asset value for certificate of deposits and mutual funds on the basis of the statement received from investee party.

Fair value of instruments measured at amortized cost for which fair value is disclosed is as follows, these fair values are calculated using Level 3 inputs:

The management assessed that fair values of cash and cash equivalents, other bank balances, trade receivables and trade payables approximate their respective carrying amounts, largely due to the shortterm maturities of these instruments.

Note No.37: Financial Risk Management

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s board of directors has overall responsibility for the establishment and oversight of the Company risk management framework. The Company manages the risk basis policies approved by the board of directors. The board of directors provides written principles for overall risk management.

A) Credit risk

Credit risk is the risk that the Company will incur a loss because its customers or counterparties fail to discharge their contractual obligations. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, other bank balances, investments, loan assets, trade receivables and other financial assets. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Credit Risk Management

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. ''The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company has established a credit quality review process to provide early identification of possible changes in the creditworthiness of counterparties, including regular collateral revisions. The Company assigns the following Credot ratings to each class of financial assets based on the assumption, Input and factor specific to the class of financial assets.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

Credit risk on cash and cash equivalents and bank deposits is generally limited as the Company transacts with Banks having a high credit ratings assigned by domestic credit rating agencies.

B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities (other than derivatives) that are settled by delivering cash or another financial asset. 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.

The Company maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors the Company''s liquidity positions (also comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. The Company also takes into account liquidity of the market in which the entity operates.

c) Market Risk - Interest rate risk

Interest rate risk is the risk that the 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 related primarily to the Company''s borrowings with floating interest rates.

Exposure to interest rate risks

The interest rate risk arises majorly from the borrowings carrying floating rate of interest. These obligations exposes the entity to cash flow interest rate risk. The company does not have any borrowings bearing floating rate of interest.

D) 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 is exposed to currency risk on account of its borrowings, receivables and other payables in foreign currency. The functional currency of the company is Indian Rupee.

The foreign currency exchange management policy is to minimize economic and transactional exposures arising from currency movements against the US dollar & Euro. The Company manages the risk by netting off naturally-occurring opposite exposures wherever possible, and then dealing with any material residual foreign currency exchange risks if any.The company does not have borrowings, receivables and other payables in foreign currency and hence does not have any currency risk.

Note No.38: Segment Reporting

The Company operates in single reportable segment based on the regular review by the CODM of company which is Finance Business for the purpose of Ind AS 108.

Methodology:

1. Current Ratio = Current Asset / Current Liability

2. Debt-Equity Ratio = Total Debt / (Total Equity)

3. Debt Service Coverage Ratio = EBITDA / (Finance Cost Repayment of Long term Debt)

4. Return on Equity Ratio = (Profit After Tax-Contingent Reserve) / (Total Equity-Contingent Reserve)

5. Inventory Turnover Ratio = Sale / (Average Inventory)

6. Trade Receivable Turnover Ratio = Revenue from Operations / Trade Receivable

7. Trade Payable Turnover Ratio = Purchase / Trade Payable

8. Net Capital Turnover Ratio = Revenue from Operations / (Current Asset - Current Liability)

9. Net Profit Ratio = Profit After Tax / Revenue

10 Return on Capital Employed= EBIT/ (Total Equityholder''s Funds Long term debt)

11 Return on Investment= Income from Investments/ Net Invesment

Note No.40: Additional Regulatory Information

i All the Title deeds of Immovable properties are held in the name of company.

ii The Company has neither any capital work in progress of Property, Plant and Equipment nor any intangible assets under development.

iii

vi During the year, the company has not borrowed any funds from banks.

v During the year, the company has not revalued its Property, Plant and Equipment''s and Intangibles.

vi During the year, no proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.

vii The Company has not provided any Loan to any person on behalf of other person other than its ordinary course of its NBFC business, hence disclosure under section 186 is not applicable to the company.

viii During the year, the company has not been declared wilful defaulter by any bank or financial institution or any other lender.

ix There is charge on movable property amount to Rs. 3.5 Lacs whose satisfaction is yet to be registered with ROC due to procederal issues.

x The Company does not have any Scheme of Arrangements, which has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

xi The company has utilized funds raised from the issue of securities or borrowings from banks & financial institutions for the specific purposes, for which they were issued/taken. (Also Refer Note 19)

xii The company has not advanced or loaned or invested funds to any other person(s) or entity(ies) including foreign entities (intermediaries) with the understanding that the intermediatory shall: -

i. 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

ii. Provide any guarantees, securities or the like or on behalf of the ultimate beneficiaries

xiii The Company has not received any funds from any person(s) or entity(ies), including foreign entity(ies) (funding party) with the understanding (whether recorded in writing or otherwise) that the Group shall: -

i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

ii. Provide any guarantees, securities or the like or on behalf of the ultimate beneficiaries.

xiv During the year, the company has not traded, invest or perform any transaction in crypto or other virtual currency.

xv In the opinion of the management, the realizable value of current assets, loans & advances, in the ordinary course of business, would not be less than the amount at which they are stated.

Note: In computing the above information certain estimates, assumptions and adjustments have been made by the Management for its regulatory submission which have been relied upon by the auditors.

# Estimated cash inflows exceeds the estimated cash outflows for the year ended March 2024 over the next 30 days. Hence, ratio is not applicable.

Methodology:

(a) capital to risk weighted assets ratio-(Tier I Capital Tier II capital)/Total Risk Weighted Assets

(b) Tier I CRAR-Tier I Capital/Total Risk Weighted Assets

(d) Liquidity Coverage Ratio-High Quality Liquid Assets/Net Cash flow over 30 days period

Note No.44 : Re- Grouping

Cretain reclassification have been to the comparitive period Financial statements to enhance comparability with the current financial year financial statements & enhance compliance with guidance note on the Division-II- Ind AS Shedule III to the companies Act.

Reclassification of Prior Period Figures

(Pursuant to Ind AS 1 - Presentation of Financial Statements and Ind AS 109 - Financial Instruments) During the current year, the Company has changed the presentation of transactions relating to the sale and purchase of shares and securities. Previously, such transactions were presented on a gross basis, i.e., separately showing the sale proceeds as revenue and the purchase cost as expenses.

In line with the requirements of Ind AS 109 (Financial Instruments) and to provide more relevant information, the Company has now presented these transactions on a net basis, recognizing only the net gain or loss from such transactions under ''Revenur From Operations''.

In accordance with Ind AS 1 - Presentation of Financial Statements (Paragraphs 41-44), the comparative figures for the previous period have been reclassified to conform with the current year''s presentation. This reclassification is a presentation change and does not have any impact on the net profit or loss or equity for the previous year.

Accordingly, revenue and expenses relating to such transactions have been netted off in the previous year

figures for the FY 2023-24 to make it comparable with current year figures of FY 2024-25.

Note No.45 : Others

(a) Pursuant to Section 135 of the Companies Act, 2013, the provisions related to Corporate Social Responsibility (CSR) are applicable to every company having: Net worth of ?500 crore or more, or Turnover of ?1,000 crore or more, or Net profit of ?5 crore or more during any financial year. Since the Company has exceeded the prescribed financial thresholds, the provisions of Section 135 of the Companies Act, 2013, along with the Companies (Corporate Social Responsibility Policy) Rules, 2014, are applicable to the Company for the financial year 2024-25. Based on the financial performance, the prescribed CSR obligation for the year amounts to ?13.00 lakhs. The Company has spent ?11.00 lakhs towards approved CSR initiatives within the stipulated time frame. The balance unspent amount of ?2.00 lakhs, not relating to any ongoing project, is pending transfer to a fund specified in Schedule VII of the Companies Act, 2013. The Company is in the process of transferring the said amount within the statutory timeline of 30th September 2025, in accordance with Section 135(5) of the Act. The Company remains fully committed to ensuring compliance with its CSR obligations.

(b) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956

(d) The company does not have any transaction which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act''1961.

(e) Other additional information pursuant to Schedule III to the Companies Act 2013 are either nil or not applicable.

(f) The Previous year''s figures have been reclassified /re-grouped and / or rearranged wherever considered necessary.

(g) Figures have been rounded off to the nearest lakh and two decimal thereof.

Mar 31, 2024

2.11 Provisions contingent assets and contingent liabilities

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values, where the time value of money is material.

Contingent liability is disclosed for, Possible obligations which will be confirmed only by future events not wholly within the control of the Company or Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized but disclosed where an inflow of economic benefits is probable.

2.12 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

The Company as lessor

Amounts due from lessees under finance leases are recognised as receivables at the amount of the Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Company''s net investment outstanding in respect of the leases.

Rental income from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the Company''s expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue.

The Company as lessee

Rental expense from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

2.13 Foreign currency

Functional And presentation currency

Items included in the financial statement of the Company are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). The financial statements have been prepared and presented in Indian Rupees (INR), which is the Company''s functional and presentation currency.

Transaction and Balances

Foreign currency transactions are translated into the functional currency, by applying the exchange rates on the foreign currency amounts at the date of the transaction. Foreign currency monetary items outstanding at the balance sheet date are converted to functional currency using the closing rate. Non- monetary items denominated in a foreign currency which are carried at historical cost are reported using the exchange rate at the date of the transaction.

Exchange differences arising on monetary items on settlement, or restatement as at reporting date, at rates different from those at which they were initially recorded, are recognized in the Statement of Profit and Loss in the year in which they arise.

2.14 Segment reporting

The Company identifies segment basis of the internal organization and management structure. The operating segments are the segments for which separate financial information is available and for whichoperating profit/loss amounts are regularly reviewed by the CODM (''chief operating decision maker'') and in assessing performance. The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basisof their relationship with the operating activities of the segment.

2.15 Use of Judgements and Estimates

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities (including contingent liabilities and assets) as on the date of the financial statements and the reported income and expenses for the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

2.16 Earning Per Share

Basic earnings per equity share is calculated by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the financial year.

To calculate diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2.17 Dividends

Final dividends are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Board of Directors of the Company.

2.18 Impairment of Non-Financial Assets

At each reporting date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. Recoverable amount is higher of an asset''s net selling price and its value in use. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the

Statement of Profit and Loss. If at the reporting date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount. Impairment losses are recognised in profit and loss. An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

2.19 Impairment of Financial Assets

The Company recognises impairment allowances for ECL on all the financial assets that are not measured at FVTPL: Financial assets that are debt instruments Lease receivables, Financial guarantee contracts issued, Loan commitment issued. No impairment loss is recognised on equity investments.ECL are probability weighted estimate of credit losses. They are measured as follows:

-Financial assets that are not credit impaired- as the present value of all cash shortfalls that are possible within12 months after the reporting date.

-Financial assets that are credit impaired - as the difference between the gross carrying amount and the presentvalue of estimated cash flows With respect to trade receivables and other financial assets, the Company measures the loss allowance at anamount equal to lifetime expected credit losses.Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.

-For financial assets at FVTOCI, the loss allowance is recognised in OCI.

-Loan assets- The Company follows a ''three-stage'' model for impairment based on changes in credit qualitysince initial recognition as summarized below:

Stage 1 includes loan assets that have not had a significant increase in credit risk since initial recognition or that have low credit risk at the reporting date.

Stage 2 includes loan assets that have had a significant increase in credit risk since initial recognition but that do not have objective evidence of impairment.

Stage 3 includes loan assets that have objective evidence of impairment at the reporting date.

The Expected Credit Loss (ECL) is measured at 12-month ECL for Stage 1 loan assets and at lifetime ECL for Stage 2 and Stage 3 loan assets.

Write-off

Financial assets are written off either partially or in their entirety to the extent that there is no realistic prospect of recovery. Any subsequent recoveries are credited to impairment on financial instrument on statement of profit and loss.

2.20 Financial instruments

A Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Initial recognition and measurement

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs. Subsequent measurement of financial assets and financial liabilities is described below.

(A) Non-derivative financial assets Subsequent Measurement

Financial assets carried at amortized cost - a financial asset is measured at the amortized cost if both the following conditions are met:

The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) onthe principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in interest income in the Statement of Profit and Loss.

Financial assets (debt instruments e.g. loans) are measured at FVOCI when both of the following conditions are met:

The instrument is held within a business model, the objective of which is achieved by both collecting contractual cash flows and selling financial assets.

The contractual terms of the financial asset meet the SPPI test.

FVOCI debt instruments are subsequently measured at fair value with gains and losses arising due to changes in fair value recognized in OCI. Interest income are recognized in profit or loss in the same manner as for financial assets measured at amortized cost.

Financial assets measured at FVPL - FVPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL, with all changes recognized in the P&L.

Derecognition of Financial Assets

Financial assets (or where applicable, a part of financial asset or part of a group of similar financial assets) are de- recognized (i.e. removed from the Company''s balance sheet) when the contractual rights to receive the cash flows from the financial asset have expired, or when the financial asset and substantially all the risks and rewards are transferred. Further, if the Company has not retained control, it shall also de-recognize the financial asset and recognize separately as assets or liabilities any rights and obligations created or retained in the transfer.

(B) Non Derivatives Financial Liabilities

Subsequent Measurement

Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortized cost using the effective interest method.

Derecognition of Financial Liabilities

A financial liability is de-recognized when the obligation under the liability is discharged or canceled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de- recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss.

2.21 Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date using valuation techniques. Fair value is the price that would be received to sell an asset or paid to

transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most advantageous market for the asset or liability.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured are categorized with fair value hierarchy into Level I, Level II and Level III based on level of input.

2.22 Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet when the Company has a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

Capital Commitment

-During the year the company entered into share purchase agreement dated 08th February 2024 along with others parties for purchase of equity shares of Industrial Investment Trust Limited. In pursuance of this agreement the company Advik Capital Limited is required to acquire 14,07,067 shares at the consideration price of Rs. 38,69,43,425 (at the rate of Rs. 275 per share). The company has deposited 24.00 Lacs as refundable security deposit to Creative Projects & Contracts Pvt Ltd in accordance with regulation 17 of Securities and exchange board of india (Substantial Acquisition of Shares and Takeovers) Regulation, 2011

B) Lease Commitment: Lease yet not commenced:

The company entered in to LOI with M/s Indian Realtors Private Limited with respect to lease of under construction property of which possession is expected to be received by 31st March 2028. The lease rental of Rs. 10.00 Lakhs per month shall be commenced three months after handing over of posession. The security deposit of 50 Lakhs given by the company in relation to said lease agreement has been shown as security deposit at discounted value as other financial asset in Note no. 6

Note No.33: Capital Management

The Company''s capital management objectives are :

- to ensure the Company''s ability to continue as a going concern

- to comply with externally imposed capital requirement and maintain strong credit ratings

- to provide an adequate return to shareholders

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets (including investments in Subsidiary companies). In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

(B) Fair values hierarchy

The categories used are as follows:

Level 1: Quoted prices (unadjusted) for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs;

Level 3: Inputs which are not based on observable market data (unobservable inputs). Valuation technique used to determine fair value

Valuation process and technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

The use of net asset value for certificate of deposits and mutual funds on the basis of the statement received from investee party.

The value of derivative contracts are determined using forward exchange rates at Balance Sheet date.

Fair value of instruments measured at amortized cost for which fair value is disclosed is as follows, these fair values are calculated using Level 3 inputs:

Note No.37: Financial Risk Management

A) Credit risk

Credit Risk Management

(i) Low credit risk

(ii) Moderate credit risk

(iii) High credit risk

B) Liquidity risk

The table below summarizes the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments:-

c) Market Risk - Interest rate risk

D) Currency risk

Note No.38: Segment Reporting

SEGMENT REPORT OF THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2024

The Company operates in two reportable segment based on the regular review by the CODM i.e. financing and Trade in securities, for the purpose of Ind AS 108 "Operating segments" infromations related to such business segments have given below. The Company derives its major revenues from financing activities and its customers are widespread. Further, the Company operates only in India which is considered as a single geographical segment.

Information on Segment Reporting pursuant to Ind AS 108 - Operating Segments Operating segments:

Securities/Share Divison Loan Division Others

Note No.40: Additional Regulatory Information

i All the Title deeds of Immovable properties are held in the name of company.

ii The Company has neither any capital work in progress of Property, Plant and Equipment

iii nor any intangible assets under development.

vi During the year, the company has not borrowed any funds from banks.

v During the year, the company has not revalued its Property, Plant and Equipment''s and Intangibles.

viii During the year, the company has not been declared wilful defaulter by any bank or financial

i_x institution or any other lender.

There is charge on movable property amount to Rs. 3.5 Lacs whose satisfaction is yet to be registered with ROC.

Details of significant investments in subsidiaries, associates and joint ventures