Notes to Accounts of Choice International Ltd.

Mar 31, 2023

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations directly or indirectly. The Company''s principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents that derive directly from its operations.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including Fixed deposits with banks and financial institutions and other financial instruments.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made generally in the fixed deposits and for funding to subsidiary company The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.

The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2023 and March 31, 2022 is the carrying amounts as stated in balance sheet except for balances of subsidiary company.

Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.

Market Risk

The Company manages market risk through a corporate treasury department, which evaluates and exercises independent control over the entire process of market risk management. The corporate treasury department recommends risk management objectives and policies, which are approved by senior management and Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company''s policy is to keep balance between its borrowings at fixed rates of interest. The difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

Equity price risk

The Company''s investments in non listed equity securities are accounted at cost in the financial statements net of impairment . The expected cash flows from these entities are regularly monitored internally and also independently , wherever necessary to identify impairment indicators.

(1) Increase in the current liabilities and decrease in the current assets has caused decline in the Current ratio.

(2) Increase in debt and decrease in retained earnings in the current year carries the ratio in the lower side.

(3) There is a decrease in EBITD and increase in debt position in current year which has impaired debt service coverage ratio.

(4) Delayed recovery of debtors in current year weakens the ratio.

(5) Increase in Revenue and decrease in working capital improved the ratio.

(6) Decrease in net profit in the current year weakens the ratio.

NOTE 43 : SEGMENT INFORMATION:

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance. The Group''s chief operating decision maker is the Chief Executive Officer and Managing Director. Pursuant to surrendering its license, the main Business of the Company is investing and financing to the Subsidiaries and providing support services to the Group Companies. Further all activities are carried out within India. Accordingly, Segment Reporting in accordance with Ind Accounting Standard - 108 “Operating Segment” issued by the Institute of Chartered Accountants of India and adopted by Companies (Accounting Standard) Rules, 2015 is not applicable to the Company.

NOTE 46 : UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM:

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 Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the group shall:

a. 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

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

NOTE 47 : UNDISCLOSED INCOME:

There have been no transactions which have not been recorded in the books of accounts, that have been surrendered or disclosed as income during the year ended March 31,2023 and March 31, 2022, in the tax assessments under the Income Tax Act, 1961. There have been no previously unrecorded income and related assets which were to be properly recorded in the books of account during the year ended March 31, 2023 and March 31, 2022.

NOTE 48 : UTILISATION OF BORROWINGS AVAILED FROM BANKS AND FINANCIAL INSTITUTIONS:

The borrowings obtained by the Company from financial institution has been applied for the purposes for which such loans were was taken.

NOTE 49 : DISCLOSURE RELATING TO BENAMI PROPERTY HELD:

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder

NOTE 50 : WILFUL DEFAULTER:

The Company has not been declared wilful defaulter by any bank or financial institutions or government or any government authority.

NOTE 51 : COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES:

The Company has complied with the number of layers prescribed under clause 87 of section 2 of the Companies Act, 2013 read with Companies (restriction on number of layers) Rules, 2017

NOTE 52 : DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

NOTE 53 : RELATIONSHIP WITH STRUCK OFF COMPANIES:

The Company has not entered in any transactions with companies struck off under section 248 of the Companies Act ,2013. or section 560 of Companies Act 1956.

NOTE 54 : EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY:

As per Section 135 of the Companies Act, 2013, the Company is not mandatorily required to spend on corporate social responsibility (CSR) activities.

NOTE 55 : REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

The Company has completed the process of creation and satisfaction the charges with Registrar of Companies (ROC) within the statutory timeline.

NOTE 56 : TITLE DEEDS OF IMMOVABLE PROPERTIES NOT HELD IN NAME OF THE COMPANY

There are no instances where the title deeds of immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are not held in the name of the Company.

NOTE 57 : COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

NOTE 58 : THE SOCIAL SECURITY CODE, 2020

The Code on Social Security 2020 (‘the Code'') relating to employee benefits, during the employment and postemployment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued. The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

NOTE 59:SUBSEQUENT EVENT

There have been no events after the reporting date that require disclosure in these financial statements.

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Mar 31, 2018

1. Background

Choice International Limited ("Cl L"/ the "Company") is incorporated in India as a public limited company and registered with Reserve Bank of India as Non-Deposit Taking Non-Systemically Important Non-Banking Financial Services Company. The Company is engaged in financial services business comprising of lending, investments and advisory services.

Rights, preferences and restrictions attached to each class of shares -

The Company has only one class of share capital, i.e., equity shares having face value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share. The Shareholders are entitled to interim dividend if proposed by the Board of Directors. The Final dividend is subject to approval of theshareholders in theAnnual General Meeting.

2 MONEY RECEIVED AGAINSTSHARE WARRANTS

During the previous year the Company has received application money of Rs.10/- each against preferential issue of 10,000,000 share warrants. These warrants were converted into 10,000,000 Equity shares of Rs.1 0/- each face value with Rs.30/- per share as securities premium. The proceeds were utilised for the purpose it was raised other than temporary deployment.

*The Management has created a statutory reserve ofRs.4,603,000./-(PY- Rs.5,1 76,000/-) as per the provisions of section 45-IC of Reserve Bankof India Act, 1934.

**Pursuant to the Revised AS 1 0 "Accounting for Fixed Assets", the Company has revalued freehold lands at fair market value, under revaluation model. Pursuant to the foregoing, during the current year, property, plant & equipment increased by Rs.41 7,022,090/- and Reserves & Surplus increased by Rs.41 7,022,090/.

*The Company has sold its 1 00% holding in Choice E-Commerce Private Limited @ Rs.13.16 per equity share on March 26,2018

** The Company has purchased 1 00% holding in Choice Retail Solutions Private Limited @ Rs.0.001 per equity share on December06,2017.

*** During the yearthe Company has made investment in Kisan Mouldings Limited in 450,000 equity shares of Rs.118.90/- per share on October 17,201 7.

****The Company has purchased 604,960 equity shares of Jaatvedas Construction Co Private Limited on November 28, 201 7 @ Rs.248/-per share & subsequently sold 80,980 shares at the same price on March 27,201 8.

*****During the year the Company has made investment in Gini& Jony Limited in 400,000 equity shares @ Rs.11 6.40/- per share on August 07,2017.

3 Employee benefit plans:

The Company has classified the various benefits provided to employees as under:

1. Defined Contribution Plan

During the year, the Company has incurred and recognised the following amounts in the Statement of Profit and Loss:

*Provisioning norms shall be applicable as prescribed in these Directions.

**As peraccounting standard of ICAI.

*** Quoted Investment are disclosed at Market Value and unquoted investments are disclosed at Break-up Value & FairValue unless Fair Value of the investments are available

4. Choice Finserv Private Limited, a wholly owned subsidiary of the Company, received its Certificate of Registration (CoR) vide registration number N-13.0221 6 dated January 1 2, 201 8 from the Reserve Bank of India on January 1 5, 201 8 to carry on the activities as a Non-Deposit taking Non-Banking Finance Company. The Board of Directors'' of the Company at their meeting held on February 1 2, 201 8 have approved the proposal to conduct the NBFC business from Choice Finserv Private Limited and to surrender the company''s NBFC license within six months from date of the CoR. On March 30, 2018, the shareholders of the Company have approved the same vide postal ballot.

5. The main Business of the Company is Non-Banking Finance activities. All other activities revolve around the main business. Further all activities are carried out within India. As such there are no separate reportable segments as per Accounting Standard (AS)-17 on "Segment Reporting" prescribed underSection 133 of the CompaniesAct, 201 3.

6. The comparative financial information of the Company for the year ended March 31, 201 7 was audited by the M/s Gupta Shyam& Co. (previous auditors of the Company).

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

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Mar 31, 2016

1. OTHER NOTES FORMING PART OF FINANCIAL STATEMENTS

2. Nature of business :

The company is a Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in investment, lending and allied activities. The company received the certificate of registration from the RBI on February 26,1998, enabling the company to carry on business as a Non-Banking Finance Company.

3. Statutory reserve:

The management has created a statutory reserve of X 3,321,000/-(PY- X 2,860,000/-) as per the provisions of section 45-IC of Reserve Bank of India Act, 1934.

4. In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

5. Balances of the trade receivables, trade payables, loans & advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements.

6. Effective from 01.04.2014, the company has charged depreciation based on the revised remaining useful life of assets as per the requirement of Schedule II of the Companies Act,2013. Due to this, depreciation charge is higher by Nil (PY- X 23,54,251/-) for the year ended on March 31, 2016.

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

8. Employee benefit plans :

Defined benefit plans

The Company offers the gratuity as employee benefit schemes to its employees:

The following table sets out the funded status of the Gratuity and the amount recognized in the financial statements:

9. Schedule as required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

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Mar 31, 2015

1. SHARE CAPITAL

Rights, preferences and restrictions attached to each class of shares -

The company has only one class of share capital, i.e. equity shares having face value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.

2. OTHER NOTES FORMING PART OF FINANCIAL STATEMENTS A Nature of business :

A Nature of business

The company is a Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in investment, lending and allied activities. The company received the certificate of registration from the RBI on February 26,1998, enabling the company to carry on business as a Non-Banking Finance Company.

B Statutory reserve:

The management has created a statutory reserve of Rs. 2,860,000/- { PY-Rs. 2,750,000/-) as per the provisions of section 45-1C of Reserve Bank of India Act, 1934.

C Corporate social responsibility:

Although the company does not fall within the purview of Corporate Social Responsibility as per section 135 of the Companies Act 2013,but the company has contributed towards various corporate social responsibility Initiatives like supporting under-privileged In education, medical treatments, etc. and various other charitable and noble aids, voluntarily.

D In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

E Balances of the trade receivables, trade payables, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial statements.

F Effective from 01.04.2014, the company has charged depreciation based on the revised remaining useful life of assets as per the requirements of Schedule II of the Companies Act,2013. Due to this, depreciation charge is higher by Rs. 23,54,251/ for the year ended on March 31, 2015.

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

H Contingent liabilities not provided for: 31/Mar/15 31/Mar/14

Corporate guarantees to banks for subsidiaries -

Choice Equity Broking Pvt. Ltd. 1,815,600,000 1,820,000,000

Choice Merchandise Broking Pvt. Ltd. 50,000,000 20,000,000

I Employee benefit plans :

Defined benefit plans

The Company offers the gratuity as employee benefit schemes to its employees:

J (i) Related Party Disclosure :

Details of Related Parties -

Description of Relationship Names of Related Parties

a. Subsidiary Companies Choice Capital Advisors Pvt. Ltd.

Choice Corporate Services Pvt. Ltd.

Choice Equity Broking Pvt. Ltd.

Choice Merchandise Broking Pvt. Ltd

Choice Business Services Pvt. Ltd.

Choice Wealth Management Pvt. Ltd.

Choice Insurance Brokers Pvt. Ltd.

b. Associate Companies Aqua Pumps Infra Ventures Limited (APIVL)

Choice Realty Pvt. Ltd. (Subsidiary of APIVL)

c. Key Management Personnel Kamal Poddar (Managing Director) (KMP) and their relatives Hemlata Poddar (Non-executive Director)

Manoj Singhania (CFO)

Mahavir Toshniwal (Company Secretary)

Savita Singhania (Relative of KMP)

Arun Poddar (Relative of KMP)

Sonu Poddar (Relative of KMP)

d. Individuals owning directly Sunil Patodia indirectly interest in voting power that gives them control Vinita Patodia & their relatives Anil Patodia

Archana Patodia

e. Enterprises over which (c) S. K. Patodia & Associates & (d) are able to exercise significant influence The Byke Hospitality Ltd.

Hotel Relax Pvt. Ltd.

Manbhari Biofuel Pvt. Ltd.

S. K. Patodia Advisory Services Pvt. Ltd.

Upton Infrastructure Pvt. Ltd.

Aqua Pumps Pvt. Ltd.

M/s. Shree Shakambhari Exim

Anil Patodia HUF

Sunil Patodia HUF

Arun Poddar HUF

Kamal Poddar HUF

J (ii) Details of Related Parties with whom transaction entered during the year:-

Description of Relationship Names of Related Parties

a. Subsidiary Companies Choice Capital Advisors Pvt. Ltd.

Choice Corporate Services Pvt. Ltd.

Choice Equity Broking Pvt. Ltd.

Choice Merchandise Broking Pvt.Ltd.

Choice Business Services Pvt. Ltd.

Choice Wealth Management Pvt. Ltd.

b. Associate Companies Aqua Pumps Infra Ventures Limited (APIVL)

Choice Realty Pvt. Ltd. (Subsidiary of APIVL)

c. Key Management Personnel Kamal Poddar (Managing Director) (KMP) Manoj Singhania ( CFO)

Savita Singhania (Relative of KMP)

e. Enterprises over which (c) & S. K. Patodia & Associates (d) are able to exercise significant influence The Byke Hospitality Ltd.

Aqua Pumps Pvt. Ltd.

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Mar 31, 2014

1. Rights, preferences and restrictions attached to each class of shares -

The company has only one class of share capital, i.e. equity shares having face value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.

2. Nature of business:

The company is a Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in investment, lending and allied activities. The company received the certificate of registration from the RBI on February 26, 1998, enabling the company to carry on business as a Non- Banking Finance Company.

3. Statutory reserve:

The management has created a statutory reserve of Rs. 2,750,000/- (PY - Rs. 2,250,000/-) as per the provisions of section 45-IC of Reserve Bank of India Act, 1934.

4. Corporate social responsibility:

Recognising the responsibilities towards society, as a part of ongoing activities, the company has contributed towards various corporate social responsibility initiatives like supporting under-privileged in education, medical treatments, etc. and various other charitable and noble aids.

5. In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

6. Balances of the trade receivables, trade payables, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements.

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

8. Contingent liabilities not provided for: 31/Mar/14 31/Mar/13

Corporate guarantees to banks for subsidiaries -

Choice Equity Broking Pvt. Ltd 1,820,000,000 590,000,000

Choice Merchandise Broking Pvt. Ltd. 20,000,000 20,000,000

H. Employee benefit plans:

Defined benefit plans

The Company offers the gratuity as employee benefit schemes to its employees:

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Mar 31, 2013

A. Nature of business :

The company is a Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in investment, lending and allied activities. The company received the certificate of registration from the RBI on February 26, 1998, enabling the company to carry on business as a Non-Banking Finance Company.

B. Statutory reserve :

The management has created a statutory reserve of Rs 22,50,000/- (PY - Rs 20,00,000/-) as per the provisions of section 45-IC of Reserve Bank of India Act, 1934.

C. Corporate social responsibility :

Recognising the responsibilities towards society, as a part of ongoing activities, the company has contributed towards various corporate social responsibility initiatives like supporting under-privileged in education, medical treatments, etc. and various other charitable and noble aids.

In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value

D. on realisation in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

E. Balances of the trade receivables, trade payables, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements.

Previous year''s figures have been regrCouped / reclassified wherev r necessary to correspond with the current

F. hoice International Limited year''s classification / disclosure.

Choice International Limited Accompanying notes to the financial statements as at March 31, 2013

G. Employee benefit plans :

Defined benefit plans

The Company offers the gratuity as employee benefit schemes to its employees:

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Mar 31, 2012

A. Monies received against Share Warrants

The Board of Directors of the Company at their meeting held on August 12, 2011 and as approved at its Annual General Meeting held on September 30, 2011 have resolved to create, offer, issue and allot up to 25,00,000 warrants, convertible into 25,00,000 equity shares of Rs.10/- each on a preferential allotment basis, pursuant to Section 81(1 A) of the Companies Act, 1956, at a conversion price of Rs.81/- per equity share of the Company, arrived at in accordance with the SEBI Guidelines in this regard and subsequently these warrants were allotted on December 21,2011 to the promoters and non-promoters, and the company has received the amount of Rs.6,02,47,500 as application money which is more than the minimum limit prescribed as per SEBI guidelines. The warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before June 20, 2013. In the event the warrants are not converted into shares within the said period, the Company is eligible to forfeit the amounts received towards the warrants.

B. In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

C. Balances of the trade receivables, trade payables, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial statements.

D. Segment Information

The Company has identified operating segments as its primary segment. Operating segments are primarily NBFC operations and Investment Banking services. Revenues and expenses directly attributable to segments are reported under each reportable segment. All other expenses which are not attributable or allocable to segments have been disclosed as unallowable expenses. Fixed assets used in the company's business or Liabilities have not been identified to any reportable segment, as the fixed assets are used interchangeably between segments. It is not possible to furnish segment disclosure relating to total assets and liabilities of the company.

E. Statutory Reserve

The management has created a Statutory Reserve of Rs.20,00,000/- (PY Rs.67,00,000/-) as per the provisions of Section 45-IC of Reserve Bank of India Act, 1934.

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

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Mar 31, 2011

1) Previous year's figures have been regrouped / reclassified / rearranged / recast wherever necessary. Amounts and other disclosures for the preceeding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2) Balances of the Debtors, Creditors, Advances and balances of Deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial statements.

3) In the opinion of management, the Current Assets and Advances have the value as stated in the balance sheet, if realised in the ordinary course of business.

4) There is no outstanding dues of Micro and Small Enterprises suppliers as defined under The Micro, Small and Medium Enterprises Development Act, 2006.

5) Based on the guiding principles stated in Accounting Standard 17 "Segment Reporting", the management does not recognise any distinguishable component of the company that is engaged in providing an individual product or service or a group of related products or services. Hence the disclosure requirements of AS- 17 in this regard is not applicable.

6) Contingent Liabilities:

The company has given Corporate Guarantees of Rs. 3 crore to the Axis Bank for its subsidiary Choice Equity Broking Pvt. Ltd. and Rs.1 crore to the Axis Bank for its subsidiary Choice Merchandise Broking Pvt. Ltd. Since this is a contingent liability no provision has been made in the financial statements.

7) The Company has Unclaimed Dividend of Rs. 65,715/- as on 31st March 2011 (P.Y. Rs. 21,866/- representated by the demand drafts issued but not presented in bank.)

8) The management has created a Statutory Reserve of Rs. 6,700,000/-, (P.Y. Rs. 5,400,000/-) as per the provisions of Section 45-IC of Reserve Bank of India Act, 1934.

9) Related Party Disclosures:

List of Related Parties -

A. Key Management Personnel - Kamal Poddar (Managing Director) & their relatives Hemlata Poddar (Non-Executive Director)

Arun Poddar

B. Subsidiaries - Choice Equity Broking Private Limited

Choice Merchandise Broking Private Limited

Choice Insurance Brokers Private Limited

Choice Business Services Private Limited

Choice Capital Advisors Private Limited

Choice Wealth Management Private Limited Choice Realty Private Limited

C. Associates - Zenu Infotech Limited

D. Individuals owning Vinita Patodia directly or indirectly Sunil Patodia interest in voting power Anil Patodia that gives them control Archana Patodia & their relatives -

E. Enterprises over which Sunil C. Patodia HUF (A) & (D) are able to Anil C. Patodia HUF exercise Significant S. K. Patodia & Influence - Associates Hotel Relax Private Limited S. K. Patodia Advisory Services Pvt. Ltd. Manbhari Biofuel Private Limited Upton Infrastructure Private Limited M/s. Shree Shakambhari Exim Aqua Pumps Private Limited

V. Generic Names of Principle Products / Service of Company:

Name of the Product / Service Non-Banking Finance Company

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Mar 31, 2010

1) Balances of the debtors, creditors, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current years financial statements.

2) In the opinion of management, the current assets and advances have the value as stated in the balance sheet, if realised in the ordinary course of business.

3) The management has created a statutory reserve of RS. 5,400,000/- as per the provisions of section 45-IC of Reserve Bank of India Act, 1934.

4) Based on the guiding principles stated in accounting standard 17 "Segment reporting", the management does not recognise any distinguishable component of the company that is engaged in providing an individual product or service or a group of related products or services. Hence the disclosure requirements of AS-17 in this regard is not applicable.

5) In opinion of the management there is no contingent liabilities as on 31 st March 2010. (RY. Contingent liability not provided for in respect ofsebi compliances of Rs. 185,000/-)

6) The company has unclaimed dividend of Rs.22,478/- as on 31 st March 2010 and the same is represented by the demand drafts issued but not presented in bank. (RY. - NIL)

7) During the year the company has issued 2,500,000 preferential equity shares of Rs.10/- each at a premium of Rs.5/- vide special resolution passed at extra ordinary general meeting held on 18th May, 2009.

8) Related Party Disclosure List of Related Parties:-

A. Key Management Personnel & their relatives

Kamal Poddar (Managing Director) Hemlata Poddar (Non-Executive Director) Arun Poddar

B. Subsidiaries

Choice Equity Broking Private Limited Choice Merchandise Broking Private Limited Choice Insurance Brokers Private Limited Choice Business Services Private Limited Choice Capital Advisors Private Limited Choice Wealth Management Private Limited Choice Realty Private Limited

C. Associates Zenu Infotech Limited

D. Individuals owning directly or indirectly interest in voting power that gives them control & their relatives

Vinita Patodia Sunil Patodia Anil Patodia Archana Patodia

E. Enterprises over which (A) & (D) are able to exercise significant influence

Sunil C. Patodia HUF

Anil C. Patodia HUF

S. K. Patodia & Associates

Hotel Relax Private Limited

S. K. Patodia Advisory Services Private Limited

Manbhari Biofuel Private Limited

M/s. Shree Shakambhari Exim

Aqua Pumps Private Limited