Accounting Policies of DAM Capital Advisors Ltd. Company

Mar 31, 2025

2.1. Material accounting policies

a) Basis of preparation

(i) Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) prescribed under Section
133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015 (as amended)] and other
relevant provisions of the Act.

These Financial Statements of the Company are presented in Indian Rupees (INR) which is also the Company''s functional
currency. The Financial Statements are presented in crores, except when otherwise indicated. Amount which is less than
H50,000 is shown as H0.00 crores

The Standalone financial statements for the year ended March 31, 2025 are being authorised for issue in accordance with a
resolution of the Board of Directors on May 14, 2025.

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) on the historical
cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period as
explained in the accounting policies below and the relevant provisions of the Act.

(i) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which
have been measured at fair value or revalued amounts:

• Financial assets and liabilities- measured at fair value;

• Defined benefit plans assets- measured at fair value; and

• Share-based payments - measured at fair value.

(ii) Order of liquidity

The Company is registered Intermediary under the respective SEBI Regulations. Though for the classification purpose, the
entity will be covered in the definition of Non-Banking Financial Company as defined in Companies (Indian Accounting
Standards) (Amendment) Rules, 2016, in view of the exemption granted under the RBI Regulations for SEBI registered
intermediaries, the Company is exempted from the requirement of registration and applicable Rules under Non- Banking
Financial Companies Regulations. Pursuant to Ind AS 1 and amendment to Division III of Schedule III to the Companies
Act, 2013, the Company presents its balance sheet in the order of liquidity. Since the Company does not supply goods
or services within a clearly identifiable operating cycle, therefore making such presentation more relevant. A maturity
analysis of recovery or settlement of assets and liabilities within 12 months after the reporting date and more than 12
months after the reporting date is presented in Note 37.

b) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The board of directors of the Company assesses the financial performance and position of the Company, and makes strategic
decisions. The board of directors, which has been identified as being the chief operating decision maker, consists of the directors of
the Company (both executive and independent). Refer note 32 for segment information presented.

c) Foreign currency translation

(i) Functional and presentation currency

Items included in the standalone financial statements of the Company is measured using the currency of the primary economic
environment in which the entity operates (''the functional currency''). The standalone financial statements are presented in
Indian Rupees (INR) except when otherwise stated.

(ii) Transactions and balances

Transactions in foreign currencies are initially recorded in the functional currency at the spot rate of ex-change ruling at the
date of the transaction. However, for practical reasons, the Company uses an average rate if the average approximates the
actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are retranslated into the functional currency at the spot rate
of exchange at the reporting date. All differences arising on non-trading activities are taken to other income/expense in the
statement of profit and loss.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the spot exchange rates as
at the date of recognition.

d) Financial instruments

Initial Recognition and Measurement

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instruments. Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Company
commits to purchase or sell the asset.

In the case of a financial asset or financial liability not at FVTPL, at initial recognition, the Company measures a financial asset or
financial liability at its fair value plus or minus transaction costs that are incremental and directly attributable to the acquisition
or issue of the financial asset or financial liability. Transaction costs of financial assets and financial liabilities carried at FVTPL are
expensed in profit and loss.

Trade receivables that do not contain a significant financing component are measured at transaction price.

Determination of Fair value

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 regardless of whether that price is directly observable or estimated using another valuation
technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or
liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement
date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on such a basis, except
for share based payment transactions that are within the scope of Ind AS 102 and measurements that have some similarities to fair
value but are not fair value, such value in use.

Fair value measurements under Ind AS are categorized into Level 1,2, or 3 based on the degree to which the inputs to the fair value
measurement are observable and the significance of the inputs to the fair value measurement in its entirety, which are described
as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at
measurement date

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) that the Company can
access at measurement date.

Financial assets

(i) Classification and subsequent measurement of financial assets

The Company classifies its financial assets in the following measurement categories:

• Fair value through profit and loss (FVTPL)

• Fair value through other comprehensive income (FVOCI)

• Amortised cost

The classification requirements for debt and equity instruments are described below:

Debt Instruments

Debt instruments are those instruments that meet the definition of a financial liability from the issuer''s perspective such as
loans, mutual fund units, venture capital fund and corporate bonds.

For investments in debt instruments, measurement will depend on the classification of debt instruments depending on:

• the Company''s business model for managing the asset; and

• the cash flow characteristics of the asset.

Business model assessment

The business model reflects how the Company manages the assets in order to generate cash flows. The business model
determines whether the Company''s objective is solely to collect the contractual cash flows from the assets or is to collect both
the contractual cash flows and cash flows arising from the sale of assets. If neither of these is applicable or when performance
of portfolio of financial assets managed is evaluated on a fair value basis, then the financial assets are classified as part of ''other''
business model and measured at FVTPL.

Solely Payment of Principle and Interest ("SPPI") Assessment

Where the business model is to hold assets to collect contractual cash flows or to collect contractual cash flows and sell, the
Company assesses whether the financial instruments cash flows represent solely payments of principal and interest (the ''SPPI
test'').

Based on these factors, the Company classifies its debt instruments into one of the following three measurement categories

Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments
of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at
amortised cost is recognised in profit and loss when the asset is derecognised or impaired.

Fair value through other comprehensive income: Debt instruments that meet the following conditions are subsequently
measured at FVOCI:

• the asset is held within a business model whose objective is achieved both by collecting contractual cash flows and
selling financial assets; and

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

Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI, are measured at FVTPL. A
gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in profit and loss and presented in the
statement of profit and loss within other gains/(losses) in the period in which it arises.

Equity Instruments

Equity instruments are instruments that meet the definition of equity from the issuer''s perspective; that is, instruments that do
not contain a contractual obligation to pay and that evidence a residual interest in the issuer''s net assets.

Changes in fair value of equity investments at FVTPL are recognised in the statement of profit and loss, except where the
Company''s management has elected, at initial recognition, to irrevocably designate an equity investment at FVOCI.

Where the management has elected to present gains and losses on equity instruments in other comprehensive income, there
is no subsequent reclassification of fair value gains and losses to statement profit and loss. Dividends from such investments
are recognised in statement profit and loss.

Misdeal stock comprises of stock that has devolved on the Company due to erroneous execution of trades on behalf of the
clients in the normal course of business. These securities are measured at fair value. A valuation gain or loss on a misdeal stock
is recognised in profit and loss and presented in the statement of profit and loss within "gains/(losses) on misdeal stock" in the
period in which it arises.

(ii) Impairment of Financial Assets

The Company assesses on a forward-looking basis the expected credit losses (''ECL'') associated with its financial instrument
measured at amortised cost. The impairment methodology depends upon whether there has been significant increase in
credit risk of the investment.The Company recognises life time expected credit loss for trade receivables (also referred to
as provision for doubtful trade receivables ) and has adopted simplified approach of computation as per Ind AS 109. The
Company considers outstanding overdue for more than 180 days is 75% and for more than 270 days is 100% calculation of
expected credit loss.

(iii) Income recognition
Interest income

The Company calculates interest income by applying the EIR to the gross carrying amount of financial assets other than
credit-impaired assets. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the gross carrying amount of a financial asset.

Dividend income

Dividend income is recognised when the Company''s right to receive the payment is established, it is probable that the
economic benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured
reliably. This is generally when the shareholders approve the dividend.

(iv) De-recognition of financial assets

Financial assets, or a portion thereof, are derecognised when the contractual rights to receive the cash flows from the assets
have expired, or when they have been transferred. On derecognition of a financial asset in its entirety, the difference between
the asset''s carrying amount and the sum of the consideration received and receivable is recognised in profit and loss on
disposal of that financial asset.

Financial liabilities and equity instruments

(i) Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities.

(ii) Classification and subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the effective interest method. The effective interest
rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to
the gross carrying amount of a financial liability.

(iii) De-recognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled
or have expired.

e) Offsetting financial instruments

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

f) Investment in Subsidiaries

Subsidiaries are all entities over which the Company has control. The Company controls an entity when the Company is exposed to,
or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to
direct the relevant activities of the entity. Investments in Subsidiaries are accounted at cost, net off impairment loss, if any.

g) Revenue recognition

Revenue is recognized to the extent that is probable that the economic benefits will flow to the Company and the amount based
on performance obligation can be reliably measured. Revenue towards satisfaction of a performance obligation is measured at the
amount of transaction price (net of variable consideration) allocated to that performance obligation.

Ind AS 115, Revenue from contracts with clients outlines a single comprehensive model of accounting for revenue arising from
contracts with clients:"

The standard is based on the principle that revenue is recognised when control of a good or service transfers to a clients. A five-step
process must be applied before revenue can be recognised:

- identify contracts with clients.

- identify the separate performance obligation

- determine the transaction price of the contract

- allocate the transaction price to each of the separate performance obligations, and

- recognise the revenue as each performance obligation is satisfied.

i) Brokerage fees - point in time

Revenue from contract with clients is recognised at point in time when performance obligation is satisfied (when the trade is
executed). These include brokerage fees which is charged per transaction executed.

ii) Fees, commission and other income

The Company provides investment banking services to its clients and earns revenue in the form of advisory fees on issue
management services, mergers and acquisitions, debt syndication, corporate advisory services etc. In case of these advisory
transactions, the performance obligation and its transaction price is enumerated in contract with the clients. For arrangements
with a fixed term, the Company may commit to deliver services in the future. Revenue associated with these remaining
performance obligations typically depends on the occurrence of future events or underlying asset values and is not recognized
until the outcome of those events or values are known. In case of contracts, which have a component of success fee or variable
fee, the same is considered in the transaction price when the uncertainty regarding the consideration is resolved.

iii) Contract assets

Contract assets are recognised when there are excess of revenues earned over billings on contracts. Contract assets are
classified as unbilled receivables (only act of invoicing is pending) when there is unconditional right to receive cash, and only
passage of time is required, as per contractual terms.

iv) Dividend Income

Dividend income is recognized in the Statement of profit and loss on the date that the Company''s right to receive payment is
established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of
dividend can be reliably measured.

h) Income Tax

The Company tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of paying
advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax
positions.The income tax expense or credit for the period is the tax payable on the taxable income of the current period based on
the applicable income tax rates adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and
unused tax losses.

(i) Current Tax

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of
the reporting period in the countries where the Company and its subsidiaries and associates operate and generate taxable
income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid
to the tax authorities.

(ii) Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised
for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable
profits will be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of
the reporting period.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation authority.

Deferred tax is recognised in profit and loss, except to the extent that it relates to items recognised in other comprehensive
income or directly in equity

i) Goods and service tax and input credit

Expenses and assets are recognised net of the goods and services tax paid, except:

(i) when the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the tax
paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable;

(ii) when receivables and payables are stated with the amount of tax included.

The net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in
the balance sheet.

Goods and Services tax input credit is accounted for in the books in the period in which the supply of goods or service received
is accounted and when there is no uncertainty in availing/utilising the credits.

j) Leases - as a lessee

Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use
by the Company

At the inception of the contract, the Company assesses whether a contract is, or contain, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The
Company assesses whether:

- The contract involves the use of an identified asset, this may be specified explicitly or implicitly

- The Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of
use, and

- The Company has right to direct the use of the asset

At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the
contract to each lease component based on their relative stand-alone prices

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value
of the following lease payments:

• fixed payments (including in-substance fixed payments), less any lease incentives receivable

• variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date

• amounts expected to be payable by the Company under residual value guarantees

• the exercise price of a purchase option if the Company is reasonably certain to exercise that option, and

• payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which
is generally the case for leases in the Company, the lessee''s incremental borrowing rate is used, being the rate that the individual
lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar
economic environment with similar terms, security and conditions.

To determine the incremental borrowing rate, the Company uses recent third-party financing received by the individual lessee as a
starting point, adjusted to reflect changes in financing conditions since third party financing was received

Subsequently, Lease liability is measured at amortised cost using the effective interest method.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period
so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability

• any lease payments made at or before the commencement date less any lease incentives received

• any initial direct costs, and

• restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset''s useful life and the lease term on a straight-line basis. If
the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset''s
useful life.

Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets
comprise IT equipment and small items of office furniture."

k) Cash and Bank Balance

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity
of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts
of cash and which are subject to insignificant risk of changes in value. Cash and bank balances also include fixed deposits, margin
money deposits, earmarked balances with banks and other bank balances which have restrictions on repatriation. Short term
and liquid investments being subject to more than insignificant risk of change in value, are not included as part of cash and cash
equivalents.that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

l) Property, plant and equipment

All items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured
reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs
and maintenance are charged to profit and loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual value :

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated
useful lives prescribed in Schedule II to the Companies Act, 2013 except in respect of following categories of assets, in which case
life of asset has been assessed based on the technical advice.

a) Computer - 3 years

b) Servers and networks - 6 years

c) Furniture - 10 years

d) Office equipments - 5 years

e) Vehicles - 4 years

f) Mobile - 2 years

g) Leasehold improvement - Over the period of lease or useful life, whichever is lower

Depreciation on additions during the year is provided on a pro-rata basis. Assets costing less than Rs. 5,000 each are fully depreciated
in the year of capitalisation.

The useful lives have been determined based on technical evaluation done by the management''s expert which are lower than
those specified by Schedule II to the Companies Act; 2013, in order to reflect the actual usage of the assets. The residual values are
not more than 5% of the original cost of the asset.

The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period on
prospective basis

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its
estimated recoverable amount.

Gains and losses on disposals and retirement are determined by comparing proceeds with carrying amount.

Capital work in progress and Capital advances:

Cost of assets not yet ready for intended use, as on the Balance Sheet date, is shown as capital work in progress. Advances given
towards acquisition of fixed assets outstanding at each Balance Sheet date are disclosed as capital advances under Other Non¬
Financial Assets.

m) Intangible assets

Separately purchased intangible assets are initially measured at cost. Subsequently, intangible assets are carried at cost less any
accumulated amortisation and accumulated impairment losses, if any.

Estimated useful lives by major class of intangible assets are as follows:

Computer software - 3 years

The amortisation period and the amortisation method for intangible assets are reviewed at each financial year end and adjusted
prospectively, if appropriate.

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or
losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the
carrying amount of the asset, are recognised in the statement of Profit and Loss when the asset is derecognised.

n) Impairment of non-financial assets

Non-financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. Non¬
financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of
each reporting period.

o) Share-based payment arrangements

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity
instruments at the grant date.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over
the vesting period, based on the Company''s estimate of equity instruments that will eventually vest, with a corresponding increase
in equity.

When the terms of an equity-settled award are modified, the minimum expense recognized is the expense had the terms had not
been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases
the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee as measured at the date of
modification. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award
is expensed immediately through the statement of profit and loss.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.
Securities premium includes:

A. The difference between the face value of the equity shares and the consideration received in respect of shares issued pursuant
to Stock Option Scheme.

B. The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock
Options Scheme.

p) Employee benefits

(i) Defined contribution plan

The contribution to provident fund is considered as defined contribution plans, and is charged to the Statement of Profit and
Loss as it fall due, based on the amount of contributions required to be made as and when services are rendered. The Company
has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined
contribution plan and the contributions are recognised as employee benefit expense when they are due.

(ii) Defined benefit plan

The liability or asset recognised in the balance sheet in respect of gratuity plans is the present value of the defined benefit
obligation at the end of the reporting period less the fair value of plan assets. Actuaries using the projected unit credit method
calculate the defined benefit obligation annually.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by
reference to market yields at the end of the reporting period on government bonds that have terms approximating to the
terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the
fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in
the period in which they occur, directly in other comprehensive income. They are reclassified to surplus in statement of profit
and loss under other equity.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in statement of profit and loss as past service cost.

(iii) Compensated absences

Based on the leave rules of the Company companies, employees are not permitted to accumulate leave. Any unavailed
privilege leave to the extent encashable is paid to the employees and charged to the Statement of profit and loss for the year.
Short term compensated absences are provided based on estimates of availment / encashment of leaves.

q) Trade and other payable

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year, which are
unpaid. They are initially recognised at their transaction price and subsequently measured at amortised cost using the effective
interest method.