Accounting Policies of CMX Holdings Ltd. Company

Mar 31, 2025

1. MATERIAL ACCOUNTING POLICIES & INFORMATIONS:

1.1. Introduction

CMX Holdings Limited (Formerly known as S1EL FINANCIAL SERVICES I .IMITF.D) is a public limited
Company incorporated in India with registered office at Soni Mansion 12-B, Ratlam Kothi Tnriore-457001
(M.P ) (CIN number I 741 10MP1990PLC007674). Its equity shares are listed at Bombay Stock Exchange
(RSF)

I he financial statement for the year ended March 31, 2025 was approved and authorized by Board of
Directors In their meeting held on May us, tots

1.2. Basis of preparation and presentation

These financial statements have been prepared in accordance with the Indian Accounting Standards (Ind
AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under section 133 of
Companies Act, 2013, (the ‘Act’) and other relevant provisions of the Act applicable to the Company.

The financial statements were authorised for issue by the Company’s Board of Directors on May 05, 2025.

a. Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is also the Company’s functional
currency. All amounts have been rounded-off to the nearest rupees in thousand , unless otherwise stated.

c. Use of estimates and judgements

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, liabilities, income and
expenses. Actual result may differ from these estimates.

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

1.3. Material Accounting Policies

I he accounting policies set out below have been applied consistently to all periods presented in these
financial statements.

a. Current and non-current classification

All assets and liabilities are classified into current and non-current.

An asset is classified as current when it satisfies any of the following criteria:

• It is expected to be realised in, or is intended for sale or consumption in, the Company’s normal

operating cycle;

• It is held primarily fui the puipuse uf being haded,

• It is expected to be realised within 12 months after the reporting date; or

• II is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for

at least 12 months attcr the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as
non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

• It is expected to be settled in the Company’s normal operating cycle;

• It is held primarily lor the purpose of being traded;

• It is due to be settled within 12 months after the reporting date; or

• The Company does not have an unconditional right to defer settlement of the liability for at least 12
months after the reporting period. Terms of a liability that could, at the option ot the counterparty, result
in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of financial liabilities some part of which may be non-current.
All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Operating cycle

Based on the nature ot products/ activities of the Company and the normal time between acquisition of
assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as
12 months for the purpose of classification of its assets and liabilities as current and non-current.

b. Measurement of fair values

A number ot the Company’s accounting policies and disclosures require the measurement of fair values,
for both financial and non-financial assets and liabilities.

The finance team regularly reviews significant unobservable inputs and valuation adjustments. If third
party information, such as broker quotes or pricing services, is used to measure fair values, then the
valuation team assesses the evidence obtained from the third parties to support the conclusion that these
valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the
valuations should be classified.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the
valuation techniques as follows.

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value ot an asset or a liability, the Company uses observable market data as far
as possible. If the inputs used to measure the fair value of an asset or a liability falls into different levels of
the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of
the fair value hierarchy as the lowest level input that is significant to the entire measurement.

c. Financial instruments

Recognition and initial measurement

(i) Financial assets

Trade receivables are initially recognised when they originate. All other financial assets and financial
liabilities are initially recognised when the Company becomes a party to the contractual provisions of the
instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from
the fail value of financial asset or financial liabilities, as appropriate, on initial recognition.

Classification and subsequent measurement

On initial recognition, a financial asset is classified as measured at

• amortised cost;

• FVTPL (fair value through profit or loss)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the
Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both the following conditions and is not
designated as at FVTPL:

• the asset is held within a business model whose objective is to hold assets to collect contractual
cash flows; and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

All financial assets nut classified as measured at unionised cost or FVTOCl arc measured at f V ll''l t in
initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the
requirements to be measured at amortised cost or at FVTOCl as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.

Impairment

The Company recognizes loss allowance using the Expected Credit Loss (ECL) model for the financial
assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no
significant financing component is measured at an amount equal to lifetime ECL. For all financial assets
with contractual cash flows other than trade receivable, ECL are measured at an amount equal to the 12-
month ECL, unless there has been a significant increase in credit risk from initial recognition in which case
those are measured at lifetime ECL. The amount of ECL (or reversal) that is required to adjust the loss
allowance at the reporting date to the amount that is required to be recognised as an impairment gain or
loss in the Statement of Profit and Loss.

(ii) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified
as at FVTPL if it is classified as held-for-trading, or it is designated as such on initial recognition. Financial
liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are
recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using
the effective interest method. Interest expense and foreign exchange gains and losses are recognised in
profit and loss. Any gain or loss on derecognition is also recognised in profit or loss.

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when,
and only when, the Company currently has a legally enforceable right to set off the amounts and it intends
either to settle them on a net basis or to realise the assets and settle the liabilities simultaneously.

d. Derecognition

(i) Financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the
Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not
leuan control Oi me nnanciai uSbci.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains
either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not
derecognizes

(ii) Financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or
cancelled, or expire.

I he Company also derecognizes a financial liability when its terms are modified and the cash flows under
the modified terms are substantially different. In this case, a new financial liability based on the modified
terms is recognised at fair value. The difference between the carrying amount of the financial liability
extinguished and the new financial liability with modified terms is recognised in statement of profit or loss.

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Mar 31, 2014

A) Basis of Preparation of Financial Statements

The Financial statements have been prepared in accordance with Indian generally Accepted Accounting Principles ("GAAP") underthe historical cost convention on accrual basis and are in accordance with the applicable accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006. These Accounting policies have been consistently applied, except where a newly issued accounting standard is initially adopted by the company. Management evaluates the effect of accounting standards issued on a going basis and ensures that they are adopted as mandated by the said rules.

As required & mandated by relevant guidelines prescribed under Companies Act, 1956, Company has prepared its financials as per Revised Schedule VI. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the revised Schedule VI to the Companies Act, 1956. Based on the nature of products/services and the time between the acquisition of assets/services for processing and their realization in cash and cash equivalents, the Company has considered a period of twelve months for the purposes of classification of assets and liabilities as current and non-current.

b) Fixed Assets

Fixed assets are stated at cost of acquisition/construction less accumulated depreciation. The cost includes all pre-operative expenses and the financing cost of borrowed funds relating to the construction period.

c) Depreciation

i) The Company follows written down value method of depreciation on its fixed assets.

ii) The rates of depreciation charged on these fixed assets are those specified in Schedule XIV to the Companies Act, 1956.

iii) On assets sold/discarded during the year/period, depreciation is provided up to the date of sale/ discard.

d) Investment

Investments are classified into current and non current (long term) investments. Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non current (long term) investments. Current investments are stated at the lower of cost and fair value determined on an individual basis. A provision for diminution in value is made to recognize a decline other than temporary in the value of long term investments. Profit/loss on sale of investments is computed with reference to their average cost.

e) Inventories

Stock in trade- shares, debentures and other securities are valued at lower of cost or market price/break-up value determined for each category of stock-in-trade. The cost is ascertained on the basis of annual weighted average purchase price of each security.

f) Revenue Recognition

i) Revenue is being recognized on accrual basis in accordance with the Accounting Standard-9 on ''Revenue Recognition''. ii) Dividend income is recognized if the right to receive the payment is established by the Balance Sheet date. iii) Interest is recognized on a time proportion basis in accordance with agreement taking into account the amount outstanding and the rate applicable.

g) Employees Benefits

a) There were no employees in the company during the previous year. Accordingly, no provision for Short term employee benefit and Post employment benefits such as provident fund, gratuity, superannuation schemes and leave encashment has been made during the reporting period.

b) The aforesaid staff benefit scheme will be provided according to respective laws as and when these will be applicable on the company. h) Taxes on Income

The current charge for Income Tax is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income Tax act, 1961.

Minimum Alternative Tax ("MAT") paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an Asset if there is convincing evidence that company will pay normal tax in future. MAT Credit entitlement can be carried forward and utilized for a period often years from the year in which the same is availed. Accordingly, it is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the company and the asset can be measured reliably.

0 Provisions and Contingencies

Provisions are recognized when the Company has a present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation. Where the Company expects a provision to be reimbursed, the reimbursement is recognized as a separate Asset, only when such reimbursement is virtually certain. Contingent Liabilities are disclosed after an evaluation of the facts and legal aspects of the matters involved. Contingent Assets are neither recognized, nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet.

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Mar 31, 2013

A Basis of Preparation of Financial Statements

The Financial statements have been prepared in accordance with Indian generally Accepted Principles ("GAAP") under the historical cost convention on accrual basis and are in accordance with the applicable accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006. These Accounting policies have been consistently applied, except where a newly issued accounting standard is initially adopted by the company. Management evaluates the effect of accounting standards issued on a going basis and ensures that they are adopted as mandated by the said rules.

As required & mandated by relevant guidelines prescribed under Companies Act, 1956, Company has prepared its financials as per Revised Schedule VI. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the revised Schedule VI to the Companies Act, 1956. Based on the nature of products/services and the time between the acquisition of assets/services for processing and their realization in cash and cash equivalents, the Company has considered a period of twelve months for the purposes of classification of assets and liabilities as current and non-current.

b) Fixed Assets

Fixed assets are stated at cost of acquisition/construction less accumulated depreciation. The cost includes all pre-operative expenses and the financing cost of borrowed funds relating to the construction period.

c) Depreciation

i) The Company follows written down value method of depreciation on its fixed assets.

ii) The rates of depreciation charged on these fixed assets are those specified in Schedule XIV to the Companies Act, 1956.

iii) On assets sold/discarded during the year/period, depreciation is provided up to the date of sale/ discard.

d) Investment

Investments are classified into current and non current (long term) investments. Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non current (long term) investments. Current investments are stated at the lower of cost and fair value determined on an individual basis. A provision for diminution in value is made to recognize a decline other than temporary in the value of long term investments. Profit/loss on sale of investments is computed with reference to their average cost.

e) Inventories

Stock in trade- shares, debentures and other securities are valued at lower of cost or market price/break-up value determined for each category of stock-in-trade. The cost is ascertained on the basis of annual weighted average purchase price of each security.

f) Revenue Recognition

i) Revenue is being recognized on accrual basis in accordance with the Accounting Standard-9 on ''Revenue Recognition''.

ii) Dividend income is recognized if the right to receive the payment is established by the Balance Sheet date.

iii) Interest is recognized on a time proportion basis in accordance with agreement taking into account the amount outstanding and the rate applicable.

g) Employees Benefits

There were no employees in the company for the period of twelve months ended 31" March, 2013. Accordingly, no provision for Short Term Employee Benefits & Post-Employment Benefits such provident fund, gratuity, superannuation schemes, leave encashment, as mandated by "Accounting Standard-15 on Employees Benefits", issued by Institute of Chartered Accountants of India, has been made during the reporting period.

h) Taxes on Income

The current charge for Income Tax is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income Taxact,1961.

Minimum Alternative Tax ("MAT") paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an Asset if there is convincing evidence that company will pay normal tax in future. MAT Credit entitlement can be carried forward and utilized for a period of seven years from the year in which the same is availed. Accordingly, it is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the company and the asset can be measured reliably.

i) Provisions and Contingencies

Provisions are recognized when the Company has a present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation. Where the Company expects a provision to be reimbursed, the reimbursement is recognized as a separate Asset, only when such reimbursement is virtually certain. Contingent Liabilities are disclosed after an evaluation of the facts and legal aspects of the matters involved. Contingent Assets are neither recognized, nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet.

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Mar 31, 2012

A) Basis of Preparation of Financial Statements

The Financial statements have been prepared in accordance with Indian generally Accepted Principles (“GAAP") under the historical cost convention on accrual basis and are in accordance with the Companies Act, 1956 and the applicable accounting standards issued by the Ministry of Corporate Affairs, Government of India. These Accounting policies have been consistently applied, except where a newly issued accounting standard is initially adopted by the company. Management evaluates the effect of accounting standards issued on a going basis and ensures that they are adopted as mandated by the Ministry of Corporate Affairs, Government of India.

b) Fixed Assets

Fixed assets are stated at cost of acquisition/construction less accumulated depreciation. The cost includes all pre-operative expenses and the financing cost of borrowed funds relating to the construction period.

c) Depreciation

i) The Company follows written down value method of depreciation on its fixed assets.

ii) The rates of depreciation charged on these fixed assets are those specified in Schedule XIV to the Companies Act, 1956.

iii) On assets sold/discarded during the year/period, depreciation is provided up to the date of sale/ discard.

d) Investment

Investments are classified into current and long term investments. Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Current investments are stated at the lower of cost and fair value determined on an individual basis. A provision for diminution in value is made to recognize a decline other than temporary in the value of long term investments. Profit/loss on sale of investments is computed with reference to their average cost.

e) Inventories

Stock in trade- shares, debentures and other securities are valued at lower of cost or market price/break-up value determined for each category of stock-in-trade. The cost is ascertained on the basis of annual weighted average purchase price of each security.

f) Revenue Recognition

i) Revenue is being recognized on accrual basis in accordance with the Accounting Standard-9 on ‘Revenue Recognition' and Guidance Note on accrual basis of accounting issued by the Institute of Chartered Accountants of India except in respect of Non Performing Assets (NPA), income against which is recognized on cash basis as per Reserve Bank of India guidelines.

ii) Dividend income is recognized if the right to receive the payment is established by the Balance Sheet date.

iii) Interest is recognized on a time proportion basis in accordance with agreement taking into account the amount outstanding and the rate applicable.

g) Employees Benefits

There were no employees in the company during the financial year ended 31 “ March, 2012. Accordingly, no provision for Short Term Employee Benefits & Post-Employment Benefits such as provident fund, gratuity, superannuation schemes, leave encashment, as mandated by “Accounting Standard-15 on Employees Benefits”, issued by Institute of Chartered Accountants of India, has been made during the reporting period.

h) Taxes on Income

The current charge for Income Tax is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income Tax act, 1961.

Minimum Alternative Tax (“MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an Asset if there is convincing evidence that company will pay normal tax in future. MAT Credit entitlement can be carried forward and utilized for a period of seven years from the year in which the same is availed. Accordingly, it is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the company and the asset can be measured reliably.

i) Provisions and Contingencies

Provisions are recognized when the Company has a present obligation as a result of past events, for which it is probable that an outflow of

resources embodying economic benefits will be required to settle are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation. Where the Company expects a provision to be reimbursed, the reimbursement is recognized as a separate Asset, only when such reimbursement is virtually certain. Contingent Liabilities are disclosed after an evaluation of the facts and legal aspects of the matters involved. Contingent Assets are neither recognized, nor disclosed. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet.