Notes to Accounts of DB (International) Stock Brokers Ltd.

Mar 31, 2025

2.13 Provisions and contingent liabilities

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

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the
control of the Company or

• Present obligations arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount of the
obligation cannot be made.

Contingent assets are neither recognized nor disclosed except when realisation of income is
virtually certain, related asset is disclosed.

The disclosure of contingent liability is made when, as a result of obligating events, there is a
possible obligation or a present obligation that may, but probably will not, require an outflow of
resources.

2.14 Impairment

Impairment of non-financial assets:

At each reporting date, the Company assesses whether there is any indication based on
internal/external factors, that an asset may be impaired. If any such indication exists, the
recoverable amount of the asset or the cash generating unit is estimated. If such recoverable
amount of the asset or cash generating unit to which the asset belongs is less than its carrying
amount. The carrying amount is reduced to its recoverable amount and the reduction is treated

as an impairment loss and is recognized in the Statement of Profit and Loss. If, at the reporting
date, there is an indication that a previously assessed impairment loss no longer exists, the
recoverable amount is re-assessed and the asset is reflected at the recoverable amount.
Impairment losses previously recognized are accordingly reversed in the Statement of Profit and
Loss.

Impairment of financial assets:

In accordance with IND AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss for financial assets. ECL is the weighted-
average of difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the Company expects to receive,
discounted at the original effective interest rate, with the respective risks of default occurring
as the weights. When estimating the cash flows, the Company is required to consider:

All contractual terms of the financial assets (including prepayment and extension) over the
expected life of the assets, Cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.

Trade receivables:

In respect of trade receivables, the Company applies the simplified approach of Ind AS 109,
which requires measurement of loss allowance at an amount equal to lifetime expected credit
losses. Lifetime expected credit losses are the expected credit losses that result from all
possible default events over the expected life of a financial instrument.

Other financial assets:

In respect of its other financial assets, the Company assesses if the credit risk on those financial
assets has increased significantly since initial recognition. If the credit risk has not increased
significantly since initial recognition, the Company measures the loss allowance at an amount
equal to 12-months expected credit losses, else at an amount equal to the lifetime expected
credit losses.

When making this assessment, the Company uses the change in the risk of a default occurring
over the expected life of the financial asset. To make that assessment, the Company compares
the risk of a default occurring on the financial asset as at the balance sheet date with the risk of
a default occurring on the financial asset as at the date of initial recognition and considers
reasonable and supportable information, that is available without undue cost or effort, that is
indicative of significant increases in credit risk since initial recognition. The Company assumes
that the credit risk on a financial asset has not increased significantly since initial recognition if
the financial asset is determined to have low credit risk at the balance sheet date.

2.15 Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents
includes cash in hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value. Bank
borrowings are used for business purposes, and hence bank overdrafts are not considered to be a
part of cash and cash equivalents in Cash flow statement.

2.16 Cash flow statement

Cash flows from operating activities are reported using the indirect method, whereby net
profit/(loss) before tax is adjusted for the effects of transactions of a non-cash nature and any
deferrals or accruals of past or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated.

2.17 Investments

Investments intended to be held for a period exceeding 12 months are considered as long-term
investments and all other investments are classified as current investments. Investments are
financial instruments and are considered as such as per the requirement of “Ind-AS 109
Financial instruments”. Investments held by the Company, whether short-term or long-term, are
valued at fair value as at the reporting date.

For purposes for income tax computation the Company values investments at lower of cost and
market value. Cost is determined on FIFO basis and consequent gain upon disposal is offered for
tax under the head capital gains i.e. long-term or short-term gain as the case may be.

2.18 Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed
at the end of the reporting period, the impact of such events is adjusted within the financial
statements. Otherwise, events after the balance sheet date of material size or nature are only
disclosed.

For ATK & Associates

Chartered Accountants For and on behalf of the Board of Directors of

Firm Registration No. 018918C DB (International) Stock Brokers Limited

Sd/- Sd/- Sd/-

CA Ankur Tayal Shiv Narayan Daga Sachin Kumar Rathi

Partner Managing Director Director

Sd/- Sd/-

Place: Noida S K Rawal Prachi Sharma

Date: April 29, 2025 Chief Financial Officer Company Secretary

Udin: 25404791BMIBCH4612

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Mar 31, 2024

Nature and purpose of reserves

(i) Securities premium account: Securities premium is used to record the premium received on issue of shares. The reserve can be utilised only for limited purposes in accordance with the provisions of the Companies Act, 2013.

(ii) General reserve: Under the erstwhile Companies Act, 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations, however the same is not required to be created under Companies Act, 2013. This reserve can be utilised only in accordance with the specified requirements of Companies Act, 2013.

(iii) Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to generate reserve, dividends or other distributions paid to Shareholders. It also includes remeasurement gains and losses on defined benefit plans recognised in other comprehensive income (net of taxes).

(ii) Terms/rights attached to equity shares:

The Company has one class of equity shares having a par value of K 2 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim dividend.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The shareholders have all other right as available to equity shareholders as per the provisions of the Companies Act, 2013 read together with the Memorandum and Articles of Association of the Company, as applicable.

The Company has not issued/ allotted any class of shares as fully paid up pursuant to contract(s) without payment being received in cash or by way of bonus shares during the (v) period of five years immediately preceding the reporting date. Further, no shares of any class were bought back during the period of five years immediately preceding the reporting date.

35 Detail of dues to micro and small enterprises defined under the MSMED Act, 2006

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue Principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly, there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

^A* The above amount includes demand from tax authorities for Assessment Year 2015-16 & 2016-17. The Company has filed appeals and the appeals are pending before the appellate authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required. Considering the facts of the matter, no further provision is considered necessary by management.

Above disputed income tax demands does not include interest u/s 234B and u/s 234C of the Income Tax Act, 1961 upto the date of raising demand. The management believes that the ultimate outcome of the above proceedings will not have a material adverse effect on the Company''s financial position and result of operations.

37 Employee benefits

(i) Defined contribution plan

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

Employer''s contribution to Provident fund and Employee state insurance 12,951.43 9,068.15

(ii) Defined benefit plans Gratuity payable to employees

The Company has a defined benefit gratuity plan. Gratuity is payable to all eligible employees of the Company on retirement or separation from the Company after completion of five years of service with the Company and the maximum limit is ? 20 Lacs.

The Company''s liabilities under the Payment of Gratuity Act, 1972 are determined on the basis of actuarial valuation made at the end of each reporting period using the projected unit credit method.

The gratuity benefit is provided through funded plan and annual contributions are charged to the statement of profit and loss. Under the scheme, the settlement obligation remains with the Company. the Company accounts for the liability for future gratuity benefits based on an actuarial valuation. The net present value of the Company''s obligation towards the same is actuarially determined based on the projected unit credit method as at the Balance Sheet date.

The plan is of a final salary defined benefit in nature which is sponsored by the Company and hence, it underwrites all the risks pertaining to the plan. The actuarial risks associated are:

Discount rate

Discount Rate for this valuation is based on government bonds having similar term to duration of liabilities. Due to lack of a deep and secondary bond market in India, government bond yields are used to arrive at the discount rate.

Mortality

If the actual mortality rate in the future turns out to be more or less than expected then it may result in increase/decrease in the liability.

Employee turnover/withdrawal rate

If the actual withdrawal rate in the future turns out to be more or less than expected then it may result in increase/decrease in the liability.

Salary escalation rate

More or less than expected increase in the future salary levels may result in increase/decrease in the liability.

i) Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follow:

a) Salary increases- actual salary increases will increase the plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

b) Investment risk - as the plan is not funded, there is no investment risk

c) Discount rate : reduction in discount rate in subsequent valuations can increase the plan''s liability.

d) Mortality & disability - actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

e) Withdrawals - actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

ii) During the year the Company has recorded an expense of ? 9,068.15 (previous year ? 5,861.01) towards provident fund, a defined contribution plan.

iii) Leaves are encased at the end of the year and not carried forwarded.

iv) Post employment benefits are determined by an Independent Actuary on overall basis and hence have not been separately provided for key management personnel.

39 Leases

Information about leases

- The Company has taken office premises at certain locations on operating lease. The agreements are executed for a period ranging from 11 months to 36 months.

- The aggregate depreciation expenses on right of use assets is included under depreciation and amortisation expenses in the statement of Profit and Loss.

B Fair value hierarchy:

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or Liabilities.

Level 2 - Inputs other than quoted prices included within 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 assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:

41 Financial risk management objective and policies

The Company is exposed to various financial risks. These risks are categorised into market risk, credit risk and liquidity risk. The Company''s risk management is coordinated by the Board of Directors and focuses on securing long-term and short-term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises following types of risks: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings.

(i) 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. As at each reporting date, the Company does not have exposure in interest rate risk. Therefore, it is not exposed to interest rate risk

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. As at each reporting date, the Company does not have exposure in foreign currency. Therefore, it is not exposed to currency risk

(B) Credit risk

Credit risk is the risk that the Company will incur a loss because its customers or counterparties fail to discharge their contractual obligation. The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties, and by monitoring exposires in relation to such limits.

The maximum exposures to credit risk for each class of financial instruments is the carrying amount of that class of financial instruments presented in the financial statements. The Company''s major classes of financial assets are cash and cash equivalents, loans, term deposits, trade receivables and security deposits.

Cash and cash equivalents and term deposits with banks are considered to have negligible risk or nil risk, as they are maintained with high rated banks financial institutions as approved by the Board of directors. Security deposits are kept with stock exchange for meeting minimum base capital requirements. These deposits do not have any credit risk.

The management has established accounts receivable policy under which customer accounts are regularly monitored. The Company has a dedicated risk management team, which monitors the positions, exposures and margins on a continuous basis.

Expected credit loss (i) Trade receivables

The Company applies the Ind AS 109 simplified approach to measure expected credit losses which uses a lifetime expected loss allowance(ECL) for all trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics as follows:

- Receivable from Brokerage (Secured by collaterals mainly in form of Securities of listed Company)

- Receivable from Exchange (Unsecured)

- Receivable from Depository (Secured by collaterals mainly in form of Securities of listed Company)

Receivable from Exchange(Unsecured): There are no historical loss incurred in respect of Receivable from exchange. Entire exposure/receivables as at each reporting period is received and settled within 7 days from reporting period. Therfore, no ECL is recognised in respect of receivable from exchange.

Receivable from Brokerage and depository: Company has large number of customer base with shared credit risk characteristics. As per policy of Company, trade receivable to the extent not covered by collateral(i.e. unsecured trade receivable) is considered as default and are fully written off as bad debt against respective tarde receivables and the amount of loss is recognised in the Statement of Profit and Loss. Subsequent recoveries of amounts previously written off are credited to the income statement as bad debts recovered. Trade receivable of the Company are of short duration with credit period ranging up to maximum 30 days. In case of delay in collection, the Comapny has right to charges interest (commonly referred as delayed payment charges)on overdue amount for the overdue period. However, in case of receivable from depository, the Company doesn''t have right to charge interest. Though credit period given to customer in respect of receivable from depository is very short, generally ther is significant delay in ultimate collection. Incremental borrowing rate is considered as effective interst rate on these trade receivable for the purpose of computing time value loss.

(ii) Margin Trading facilities

As at each reporting date, the Company does not have exposure in margin trading facility. Therfore, it is not exposed to margin trading facility.

(C) Liquidity risk

Liquidity risk is the risk that the Company will not able to meet its financial obligations as they become due. The Company manges its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

43 Capital management Risk Management

The Company manages its capital structure and makes necessary adjustments in light of changes in economic conditions and the requirement of financial covenants.

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company⁷s capital management is to maximise the shareholder value and to ensure the Company;s ability to continue as a going concern. There is no non compliance with any covenants of borrowings.

44 Corporate social responsibility (CSR) expenses

As per Section 135 of the Companies Act, a company meeting the activity threshold needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The Company undertook two initiatives to channelise efforts to empower the underprivileged constituents of society through programmes designed in the domains of Financial and Digital Literacy, Skilling of youth and Income Generation, in the states of Delhi, Rajasthan and Uttar Pradesh.

Gross amount required to be spent by the Company during the year Rs.15,000 (Previous year- Rs. 11,000.00)

45 Additional regulatory information

Additional regulatory information required under (WB) (xiv) of Division III of Schedule III amendment, disclosure of ratios, is

a. not applicable to the Company as it is in broking business and not an NBFC registered under Section 45-IA of Reserve Bank of India Act, 1934

b. The tittle deeds of all immovable property are in the name of Company.

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company

c.

for holding any Benami property.

d. There are no charges or satisfaction yet to be registered with Registrar of companies beyond the statutory period.

e. The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when the financial statements are approved.

f. The Company does not have any transactions with struck-off companies.

The Company does not have layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 201 7.

The company has not advanced or loaned or invested funds to any other person(s) or entity(s), including foreign h.

entities(intermediaries), with the understanding that the intermediary shall;

Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries), or

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate beneficiaries), or

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The Company does not have any transactions which is not recorded in the books of account but has been surrendered or

j. disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 ( such as, search or survey or any other relevant provisions of the Income Tax Act, 1 961 ).

The Company has fulfil the criteria as specified under 135(1) of the Act read with the Companies (Corporate Social

^k. Responsibility Policy) Rules, 2014.

l. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

The Company has complied with the requirements of the number of layers prescribed under Section 2(87) of the Companies

^m. Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

46 Subsequent events

(i) There were no significant events after the end of the reporting period which require any adjustment or disclosure in the financial statements.

(ii) The financial statements of the Company were authorised for issue in accordance with a resolution of the directors on April 30, 2024.

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Mar 31, 2023

(ii) Terms/rights attached to equity shares:

The Company has one class of equity shares having a par value of ? 2 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim dividend.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The shareholders have all other right as available to equity shareholders as per the provisions of the Companies Act, 2013 read together with the Memorandum and Articles of Association of the Company, as applicable.

^(v) The Company has not issued/allotted any class of shares as fully paid up pursuant to contract(s) without payment being received in cash or by way of bonus shares during the period of five years immediately preceding the reporting date. Further, no shares of any class were bought back during the period of five years immediately preceding the reporting date.

Securities premium account: Securities premium is used to record the premium received on issue of shares. The reserve can be utilised only for limited '' ¹ purposes in accordance with the provisions of the Companies Act, 2013.

General reserve: Under the erstwhile Companies Act, 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with (ii) applicable regulations, however the same is not required to be created under Companies Act, 2013. This reserve can be utilised only in accordance with the specified requirements of Companies Act, 2013

Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to generate reserve, dividends or other distributions paid to '' ¹ Shareholders. It also includes remeasurement gains and losses on defined benefit plans recognised in other comprehensive income (net of taxes).

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue Principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly, there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

Notes to the standalone financial statements for the year ended March 31, 2023 (All amounts in hundred except shares and earning per share)	For the year ended March 31, 2023	For the year ended March 31, 2022
27 Contingent liabilities Claims against the company not acknowledged as debts	f	f
Income tax matters, disputed and under appealA*	37.510.42 37.510.42	37.510.42 37.510.42

^A* The above amount includes demand from tax authorities for Assessment Year 2015-16 & 2016-17. The company has filed appeals and the appeals are pending before the appellate authorities. The company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required. Considering the facts of the matter, no further provision is considered necessary by management.

iv) Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

n. Description of risk exposures:

i) Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follow:

a) Salary increases- actual salary increases will increase the plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

b) Investment risk - as the plan is not funded, there is no investment risk

c) Discount rate : reduction in discount rate in subsequent valuations can increase the plan''s liability.

d) Mortality & disability - actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

e) Withdrawals - actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

ⁱⁱ⁾ During the year the Company has recorded an expense of ? 9,068.15 (previous year ? 5,861.01) towards provident fund, a defined contribution plan.

iii) Leaves are encased at the end of the year and not carried forwarded.

^iv) Post employment benefits are determined by an Independent Actuary on overall basis and hence have not been separately provided for key management personnel.

28(a) Leases

Information about leases

- The Company has taken office premises at certain locations on operating lease. The agreements are executed for a period ranging from 11 months to 36 months.

- The aggregate depreciation expenses on right of use assets is included under depreciation and amortisation expenses in the statement of Profit and Loss.

- The movement in lease liabilities has been disclosed in Note 14(ii)

29 Financial risk management objective and policies

The Copmany is exposed to various financial risks. These risks are categorised into market risk, credit risk and liquidity risk. The Company''s risk management is coordinated by the Board of Directors and focuses on securing long-term and short-term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises following types of risks: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings.

(i) 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. As at each reporting date, the Company does not have exposure in interest rate risk. Therefore, it is not exposed to interest rate risk

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. As at each reporting date, the Company does not have exposure in foreign currency. Therefore, it is not exposed to currency risk

(B) Credit risk

Credit risk is the risk that the Company will incure a loss because its customers or counterparties fail to discharge their contractual obligation. The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties, and by monitoring exposires in relation to such limits.

The maximum exposures to credit risk for each class of financial instruments is the carrying amount of that class of financial instruments presented in the financial statements. The Company''s major classes of financial assets are cash and cash equivalents, loans, term deposits, trade receivables and security deposits.

Cash and cash equivalents and term deposits with banks are considered to have negligible risk or nil risk, as they are maintained with high rated banks financial institutions as approved by the Board of directors. Security deposits are kept with stock exchange for meeting minimum base capital requirements. These deposits do not have any credit risk.

The management has established accounts receivable policy under which customer accounts are regularly monitored. The Company has a dedicated risk management team, which monitors the positions, exposures and margins on a continuous basis.

Expected credit loss (a) Trade receivables

The Company applies the Ind AS 109 simplified approach to measure expected credit losses which uses a lifetime expected loss allowance(ECL) for all trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics as follows:

- Receivable from Brokerage (Secured by collaterals mainly in form of Securities of listed Company)

- Receivable from Exchange (Unsecured)

- Receivable from Depository (Secured by collaterals mainly in form of Securities of listed Company)

Receivable from Exchange(Unsecured): There are no historical loss incurred in respect of Receivable from exchange. Entire exposure/receivables as at each reporting period is received and settled within 7 days from reporting period. Therfore, no ECL is recognised in respect of receivable from exchange.

Receivable from Brokerage and depository: Company has large number of customer base with shared credit risk characteristics. As per policy of Company, trade receivable to the extent not covered by collateral(i.e. unsecured trade receivable) is considered as default and are fully written off as bad debt against respective tarde receivables and the amount of loss is recognised in the Statement of Profit and Loss. Subsequent recoveries of amounts previously written off are credited to the income statement as bad debts recovered. Trade receivable of the Company are of short duration with credit period ranging up to maximum 30 days. In case of delay in collection, the Comapny has right to charges interest (commonly referred as delayed payment charges)on overdue amount for the overdue period. However, in case of receivable from depository, the Company doesn''t have right to charge interest. Though credit period given to customer in respect of receivable from depository is very short. Incremental borrowing rate is considered as effective interst rate on these trade receivable for the purpose of computing time value loss.

(b) Margin Trading facilities

As at each reporting date, the Company does not have exposure in margin trading facility. Therefore, it is not exposed to margin trading facility.

(B) Liquidity risk

Liquidity risk is the risk that the Company will not able to meet its financial obligations as they become due. The Company manges its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

B Fair value hierarchy:

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

Level 2 - Inputs other than quoted prices included within 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 assets or liabilities that are not based on observable market data (unobservable inputs).

31 Capital management Risk Management

The Company manages its capital structure and makes necessary adjustments in light of changes in economic conditions and the requirment of financial covenants.

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximise the shareholder value and to ensure the Company;s ability to continue as a going concern. There is no non compliance with any covenants of borrowings.

33 Additional regulatory information

Additional Regulatory Information pursuant to General Instructions for preparation of Balance Sheet as given in Division I of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statements.

a) The tittle deeds of all immovable property are in the name of Company.

b) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial

^c) year or after the end of reporting period but before the date when the financial statements are approved.

d) The Company does not have any transactions with struck-off companies.

The Company does not have layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers)

^e) Rules, 2017.

The company has not advanced or loaned or invested funds to any other person(s) or entity(s), including foreign entities(intermediaries), with the understanding that the intermediary shall;

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries), or

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate beneficiaries), or

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The Company does not have any transactions which is not recorded in the books of account but has been surrendered or disclosed as income during the year in the '' tax assessments under the Income Tax Act, 1961 ( such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

i) The Company has fulfil the criteria as specified under 135(1) of the Act read with the Companies (Corporate Social Responsibility Policy) Rules, 2014.

j) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

34 Subsequent events

(i) There were no significant events after the end of the reporting period which require any adjustment or disclosure in the financial statements.

(ii) The financial statements of the Company were authorised for issue in accordance with a resolution of the directors on April 28, 2023.

For instruments measured at amortised costs, carrying value represents best estimate of the fair value. These instruments are level 3 instruments.

Fair value hierarchy

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

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

The fair value of financial instruments that are not traded in an active market is determined using market approach and valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Derivatives [call & put options, un-hedged] are valued using valuation techniques with market observable inputs and these are marked to market based on prevailing quoted rates, as applicable.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty.

The fair value of trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. Where such items are non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis. Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year. [Though, presently the Company does not have any Level 1 financial instruments.]

Financial risk management objectives and policies

The Company''s principal financial liabilities comprises trade and other payables, security deposits, employee liabilities. The Company''s principal financial assets include trade and other receivables, cash and short-term deposits/ loan that derive directly from its operations.

^36(a) Credit risk: Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. The Company''s trade receivables does not have any expected credit loss as these are secured by a collateral.

^36(b) Fair value: The Company has made investment in quoted security (level I investment) for which discrete financial information is not available with the Company and hence, the Company has used adjusted net assets value method to arrive at fair value.

^36(c) Price risk: The Company has open positions in derivatives [call & put options, un-hedged] and these are open to volitality in market.

^36(d) Liquidity risk: Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due. All current the financial liabilities of the Company are current in nature as disclosed in the financial statements.

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Mar 31, 2018

1. Background of the Reporting entity

DB (International) Stock Brokers Limited (the ‘Company’), a Public Limited listed Company is engaged in stock broking and Depository Participant services of CDSL. The Company is domiciled in India and its registered office is situated at 756, Sector 23-A Gurugram-Haryana-122017. The Company was incorporated in India on February 28, 1992.

(i) Terms/Rights attached to equity shares

The Company has one class of equity shares having a par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim dividend.

In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

# As per the records of the company, including register of members

(ii) The Company has not issued/allotted any class of shares as fully paid up pursuant to contract(s) without payment being received in cash or by way of bonus shares during the period of five years immediately preceding the reporting date. Further, no shares of any class were bought back during the period of five years immediately preceding the reporting date.

2 Detail of dues to Micro and Small Enterprises defined under the MSMED Act 2006

Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue Principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly, there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

*The above amount includes demand from tax authorities for assessment year 2013-2014. The Company has filed an appeal and the appeal is pending before the appellate authority. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required. Considering the facts of the matter, no further provision is considered necessary by management.

3 Post-employment benefit plans

i) The Company has a defined benefit gratuity plan (unfunded). Gratuity is payable to all eligible employees of the Company on retirement or separation from the Company after completion of five years of service with the Company and the maximum limit is Rs. 20 Lacs.

The discount rate is based on the market yields of Government bonds as at the balance sheet date for the estimated term of the obligation. The salary escalation rate takes into account inflation, seniority, promotion and other relevant factors.

iii) Sensitivity analysis: Significant actuarial assumptions for the determination of the defined benefit obligations are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

l. Description of Risk Exposures:

i) Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follow:

a) Salary Increases- actual salary increased will increase the plan’s liability. Increase in salary increased rate assumption in future valuations will also increase the liability.

b) Investment risk - as the plan is not funded, there is no investment risk

c) Discount rate - reduction in discount rate in subsequent valuations can increase the plan’s liability.

d) Mortality & Disability - actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

e) Withdrawals - actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

ii) During the year the Company has recorded an expense of Rs. 7.54 lacs (previous year Rs. 7.40 lacs) towards provident fund, a defined contribution plan.

iii) Leaves are encashed at the end of the year and not carried forwarded.

iv) Post employment benefits are determined by an Independent Actuary on overall basis and hence have not been separately provided for Key Management Personnel.

4 Related party disclosure

Name of Related parties and description of relationship with whom transactions have taken place during the year:-

(a) Subsidiary:

Daga Business (International) Stock Brokers (IFSC) Private Limited (wholly owned subsidiary company)

(b) Associate:

Flourishing Apartments Private Limited

(c) Name of Key Management Personnel and their relatives (KMP) (where transactions have taken place during the year):

Mr. Shiv Narayan Daga (Managing Director)

Ms. Shikha Mundra (Director) (Daughter of Mr. Shiv Narayan Daga)

Mr. Sanjeev Kumar Rawal (CFO) (resigned on March 28, 2017)

Mr. Vishnu Kumar Sharma (CFO) (joined on January 25, 2018)

Ms. Sonal Seth (Company Secretary & Compliance Officer) (resigned on January 25, 2018)

Ms. Himanshi Mittal (Company Secretary & Compliance Officer) (joined on January 25, 2018)

Mrs. Sharda Daga (wife of Mr. Shiv Narayan Daga)

5 Investor Education and Protection Fund

An amount of Rs. 154,320/- has been transferred to the Investor Education and Protection Fund by the Company during the year towards unpaid/ unclaimed dividend of FY 2009-10.

6 Long term and Derivative Contracts

The Company does not have any long term contracts. There are no derivative contracts outstanding as at the year end.

7 First time adoption of Ind AS:

A. Explanation of transition to Ind AS

These are the Company’s first Financial Statements prepared in accordance with Ind AS.

The accounting policies have been applied consistently in preparing the Financial Statements for the year ended March 31, 2018, the comparative information presented in these Financial Statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 31, 2016 (the Company’s date of transition). An explanation of how the transition from Financial Statements prepared in accordance with accounting standards notified under the Section 133 of the Act, read together with paragraph 7 of the Companies(Accounts)Rules,2014(PreviousGAAP)toIndAShasaffectedtheCompany’sfinancialposition, financial performance and cash flows is set-out in the following tables and notes:

B. Ind AS Optional Exemptions

1 Deemed cost for property, plant and equipment and intangible assets:

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets property at their previous GAAP carrying value.

2 Investments

Ind AS 101 permits a first-time adopter to continue previous GAAP carrying value for investment in equity instrument of subsidiary and associate. Accordingly, the Company has elected to apply the said exemption.

C. Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total Comprehensive Income and Cash Flows for periods before reporting period. The following tables represent the reconciliations from previous GAAP to Ind AS.

Note-1 Other Comprehensive Income

Under Ind AS, all items of Income and Expense recognized in a period should be included in Profit or Loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in Profit or Loss but are shown in the Statement of Profit and Loss as ‘other comprehensive income’ includes re-measurements of defined benefit plans, and their corresponding income tax effects. The concept of other comprehensive income did not exist under previous GAAP.

Note-2 Tax impact on adjustments

Retained earnings and Statement of Profit and Loss has been adjusted consequent to the Ind AS transition adjustments with corresponding impact to deferred tax, wherever applicable.

For instruments measured at amortised costs, carrying value represents best estimate of the fair value. These instruments are level 3 instruments.

Financial Risk Management Objectives and Policies

The Company’s principal financial liabilities comprises trade and other payables, security deposits, employee liabilities. The Company’s principal financial assets include trade and other receivables, cash and short-term deposits/ loan that derive directly from its operations.

8(a) Credit Risk: Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company’s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. The Company’s trade receivables does not have any expected credit loss as these are secured by a collateral.

8(b) Fair value: The Company has made investment in quoted security (level I investment) for which discrete financial information is not available with the Company and hence, the Company has used adjusted net assets value method to arrive at fair value.

9 Liquidity Risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due. All current the financial liabilities of the Company are current in nature as disclosed in the financial statements.

10 Capital Commitments:

Capital expenditures contracted for at the balance sheet date but not recognised in the financial statements (excluding those relating to investments (Note 3(i))

11 Figures of GST input credit claim is not reconciled with the GSTN data.

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Mar 31, 2015

Terms/Rights Attached to Equity Shares

The company has only one class of equity share having a par value of Rs. 2 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees.

During the year ended 31st March,2015 , no dividend is recognised as distributable to the equity shareholders

1. Employees Benefit

An amount of Rs.1423491/-has been ascertained by the management in respect of the gratuity and other employee''s benefit. As given in the accounting policy of the company, all such payments shall be made on due basis, hence is not provided for in the books of account.

2. Related Party Disclosure required as per Accounting Standard (AS-18) on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are as below:

Name of Related parties and description of relationship with whom transactions have taken place during the year:-

(a) Key Management Personnel:

Sh. Shiv Narayan Daga (Managing Director)

(b) Relative of Key Management Personnel:

Mrs. Sharda Daga

Mrs. Shikha Mundra

3. a) Contingent Liabilities not provided for in respect of :Guarantee issued by banks Rs. 72.50 Crores (PreviousYearRs. 67.00 Crores)

b) Loans and Advances, Debtors, Security Deposit and other assets have value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

c) The expenses incurred by branches have been incorporated in the respective heads of account.

d) The previous year figures have been reworked, regrouped, rearranged, reclassified wherever necessary. Amounts and other disclosures for preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amount and other disclosures relating to the current year.

e) There is unpaid amount of Rs. 4,60,535/- outstanding against Dividend declared for the financial year 2009-10,2010-2011 and 2011-12. The said balance is lying in titled "Indusind Dividend Account" with Indusind Bank. The said unpaid dividend is not reflected in the current liability and Bank balance in the figure of Current & previous Financial year.

f) Figures have been rounded off to the nearest rupee.

g) Note from 1 to 21 form an integral part of the accounts.

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Mar 31, 2014

1. Employees Benefit

An amount of Rs.1248568/-has been ascertained by the management in respect of the gratuity and other employee''s benefit .As given in the accounting policy of the company, all such payments shall be made on due basis, hence is not provided for in the books of account.

2. Related Party Disclosure required as per Accounting Standard (AS-18) on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are as below:

Name of Related parties and description of relationship with whom transactions have taken place during the yearr-

(a) Key Management Personnel:

Sh. Shiv Narayan Daga ( Managing Director)

(b) Relative of Key Management Personnel: Mrs Shikha Daga

Mrs. Sharda Daga

3. GENERAL

a) Contingent Liabilities not provided for in respect of :Guarantee issued by banks Rs. 67.00 Crores (Previous yearRs. 53.00 Crores)

b) Loans and Advances, Debtors, Security Deposit and other assets have value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

c) The expenses incurred by branches have been incorporated in the respective heads of account.

d) The previous year figures have been reworked, regrouped, rearranged, reclassified wherever necessary. Amounts and other disclosures for preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amount and other disclosures relating to the current year.

e) There is unpaid amount of 7 460535/- outstanding against Dividend declared during the financial year 2009-10,2010-2011 and 2011-12, The said balance is lying in titled " Indusind Dividend Account" with Indusind Bank. The said unpaid dividend is not reflected in the current liability and Bank balance in the figure of Current & previous Financial year.

f) Figures have been rounded off to the nearest rupee.

g) Note from 1 to 22 form an integral part of the accounts.

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Mar 31, 2013

1 Employees Benefit

An amount of Rs, 1,248,568/- has been ascertained by the management in respect of the gratuity and other employees benefit as given in the accounting policy of the company all such payments shall be made on due payment basis hence is not provided for in the books of account

2. Change in method of provision of Depreciation

There is charge in the method of providing depreciation from straight line method to written down value method during the current financial year accounting due to change in the method of providing depreciation the profit during the year may be excess with a sum of Rs.1,439,005/-.

3. Related party Disclosure as required as per Accounting standard (AS-18) on related party disclosure issued by the institute of chartered accountants of India are as blow.

(a) key Management personal

Sh.Shiv Narayan Daga (Managing Director)

(b) Relative of key Management personnel

Ms Shikha Daga

4 GENERAL

a) Contingent Liabilities not provided for in respect of:

Guarantee issued by banks Rs.53.00 Crores (Previous year 41.25 crores)

b) Loans and Advances: Debtors security Deposit and other assets have value on realization in the ordinary Amounts and other disclosures for preceding year are included as an integral part of the current year financial statement and are to be read in relation to the amount and other disclosures relating to the current year.

c) There is unpaid amount of Rs.4,60,577/- outstanding against Dividend declared during the financial year 2009-10 2010-2011 and 2011-12 The said balance is lying in titled inducing Divided Account with inducing Bank The said unpaid dividend is not reflected in the current liability and Bank balance in the figure of current & previous Financial year.

f) Figures have been rounded off to the nearest rupee.

g) Note from 1 to 23 from an integral part of the accounts.

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Mar 31, 2012

1. Employees' Benefit

An amount of Rs. 11,76,857/- has been ascertained by the management in respect of the gratuity and other employee's benefit. As given in the accounting policy of the company, all payments shall be made on due basis, hence is not provided for in the books of account.

NOTES ON BALANCE SHEET AS AT 31st MARCH, 2012

2. GENERAL

a) Contingent liabilities not provided for in respect of:-

Guarantees issued by banks: Rs. 41.25 Crores (Previous year: 36.25 Crores)

b) Loans & Advances: Debtors, Security deposits and other assets have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

c) The expenses incurred by branches have been incorporated in respective heads of account.

d) The previous figures have been reworked, regrouped, rearranged, reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amount and other disclosures relating to the current year.

e) Figures have been rounded off to the nearest rupee.

f) Schedules from 1 to 22 form an integral part of the accounts.

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Mar 31, 2011

1. The previous figures have been reworked, regrouped, rearranged, reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amount and other disclosures relating to the current year.

2. Employees' Benefit

An amount of Rs. 10,95,035/- has been ascertained by the management in respect of the gratuity and other employee's benefit. A certificate to this effect has been obtained from Mr. Ashok Kumar Garg, a Fellow of Institute of Actuaries of India. As given in the accounting policy of the company all payments shall be made on due basis, hence is not provided for in the books of account.

3. GENERAL

a) Contingent liabilities not provided for in respect of:-

Guarantees issued by banks: Rs. 36.25 Crores (Previous year: 16 Crores)

b) Loans & Advances: Debtors, Security deposits and other assets have value on realization in the ordinary business at least equal to the amount at which they are stated in the Balance Sheet.

c) The expenses incurred by branches have been incorporated in respective heads of account.

d) Figures have been rounded off to the nearest rupee.

e) Schedules from 1 to 13 form an integral part of the accounts.

"As per our report of even date attached"