Notes to Accounts of GCM Securities Ltd.

Mar 31, 2018

1 Corporate information

GCM Securities Limited (“the Company”) is a widely held limited Company and incorporated on May 2, 1995 at Calcutta, West Bengal, India. It is a Public limited company by its shares. The Company is having its registered office at 3B, Lai Bazar Street, Sir RNM House, Kolkara-700001 (West Bengal). The company operates in Capital Market. The activities of the company include broking, trading, investing in shares & other securities and other related activities of capital market.

2 Basis of preparation of financial statements

These financial statements, for the year ended 31 March 2018 and 31 March 2017 are prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read with relevant rules issued thereunder.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2016, the date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

3 Fair value hierarchy

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 as of 31 March 2018:

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of 31 March 2017:

There have been no transfers among Level 1, Level 2 and Level 3 during the period.

The management assessed that cash and cash equivalents, Trade receivable and other financial asset, trade payables and other financial liabilities approximate their carrying amount largely due to short term maturity of these instruments.

4 Financial risk management objectives and policies

The risk management policies of the Company are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Management has overall responsibility for the establishment and oversight of the Company’s risk management framework.

In performing its operating, investing and financing activities, the Company is exposed to the Credit risk, Liquidity risk and Market risk.

Carrying amount of financial assets and liabilities:

The following table summaries the carrying amount of financial assets and liabilities recorded at the end of the period by categories:

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 three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial instruments.

Ageing analysis of the age of trade receivable amounts that are past due as at the end of reporting year but not impaired:

In the opinion of management, trade receivable, Financial assets, Cash and cash equivalent, Balance with Bank, Loans and other financial assets have a value on realisation in the ordinary course pf business at lease equal to the amount at which they are stated in the balance sheet.

The Company has not recognised any loss allowance as the Company expect that there is no credit loss on trade receivables.

5 Classification and presentation of assets and liabilities

Under previous GAAP, the Company was not required to present its assets and liabilities bifurcating between financial assets / financial liabilities and non financial assets / non financial liabilities. Under Ind AS, the Company is required to present its assets and liabilities bifurcating between financial assets / financial liabilities and non financial assets / non financial liabilities . Accordingly, the Company has classified and presented its assets and liabilities.

6 The Ministry of Corporate Affairs (MCA) vide its notification in the Official Gazette dated February 16,2015 notified the Indian Accounting Standards (Ind AS) applicable to certain classes of companies. Ind AS would replace the existing Indian GAAP prescribed under section 133 of The Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules,2014. For GCM Caommodity & Derivatives Limited, Ind AS would be applicable for the accounting period beginning April 1, 2017, with a transition date of April 1, 2016.

7 Taxation

a) Current Tax

Current Tax is calculated at the amount expected to be paid to the authorities in accordance with the Income-Tax, 1961.

b) Deferred Tax

During the year, the Company has accounted for deferred tax in accordance with Indian Accounting Standard 12 - “Income Tax” notified under section 133 of Compnies Act, 2013 (Companies (Indian Accounting Standards) Rules, 2015), the Company has provided for deferred tax asset (net) in the Statement of Profit and Loss on account of timing difference. Additional deferred tax assets has been recognised corresponding to the adjustments to retained earnings / profit and loss as a result of Ind AS Implementation.

8 Micro Enterprises and Small Enterprises

There are no dues to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006.

The above information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

9 Related Party Disclosure

Related party disclosure as required by Indian Accounting Standard 24 - “Related Party Disclosure” notified under section 133 of Compnies Act, 2013 (Companies (Indian Accounting Standards) Rules, 2015) are given below:

10 Balances in the accounts of trade receivables, loans and advances, trade payables and other current liabilities are subject to confirmation / reconciliation, if any. The management does not expect any material adjustment in respect of the same effecting the financial statements on such reconciliation / adjustments.

11 Earnings per share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

The following reflects the income and share data used in the basic and diluted EPS computations:

12 Events after the end of the reporting year

No subsequent event has been observed which may required an adjustment to the statement of financial position.

13 In the opinion of the Director, current assets, loans, advances and deposits are approximately of the value stated, if realised in the ordinary course of business and are subject to confirmation.

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Mar 31, 2015

Company Information & Accounting Policies Company Information

The company is incorporated on 2nd May, 1995 at Calcutta, West Bengal, India. It is a Public limited company by its shares. The company operates in Capital Market. The activities of the company include broking, trading, investing in shares & other securities and other related activities of capital market.

Other Notes and Additional Information forming part of Financial Statements

1. In the opinion of the management, current assets, loans and advances and other receivables have realizable value of at least the amounts at which they are stated in the accounts

2. The Trade Receivable of Rs.66.30 Lacs from GCM Commodity & Derivatives Ltd. Is on account of settlement dues from National Spot Exchange Ltd.

3. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to amount unpaid as at the year end together with interest paid/payable as required under the said act, have not been given.

4. In accordance with the requirement under the Accounting Standard - 22 "Accounting for taxes on Income" the company has accounted for deferred Tax during the year. Consequently the net deferred tax Liability of Rs.75,426/- during the year arising due to timing difference in depreciation & related items has been credited to Profit & Loss account.

5.The Payment of Gratuity Act, 1972 is not applicable to the company as the number of permanent employees in the company are below ten, similarly no other benefits are paid.

6. There are no impairment of Assets, as the management is of the opinion that the carrying value of assets is more than the realizable value as at 31st March, 2015.

7. Related Party Disclosures: Directors are Key Management Personnel of the Company Directors of the Company

1) Inder Chand Baid

2) Manish Baid

3) Samir Baid

Other Related entities:

1) Global Capital & Infrastructure Ltd.

2) Cadillac Vanijya Private Limited

3) Silverpearl Hospitality & Luxery Spaces Ltd.

4) Chello Commotrade Ltd.

5) GCM Capital Advisors Ltd.

6) GCM Commodities & Derivatives Ltd.

Remuneration paid to Directors;

i) Manish Baid Rs.300000/- per annum

8. Other additional information to be disclosed by way of Notes to Statement of Profit and Loss Quantitative Details of trading items

9. The Compnay has only one reportable segment namely Share Broking & Self trading in invsetment products and accordingly disclosures regarding segment reporting are not being made separately.

10. Events Occurring after Balance Sheet date

No significant events which could effect the financial position as on March 31, 2015, to a material extent have been reported by the management, after the balance sheet date till the signing of the report.

11. Details of Loans given, Investments made, guarantees given covered under section 186(4) of The Companies Act, 2013

Investments made are disclosed with respective note, further no loans and guarantee has been given by the Company.

12. Previous year's figures have been re-arranged and re-grouped wherever considered necessary.

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Mar 31, 2014

(All amounts in Rs., except share data and unless otherwise stated)

Note 1 Company Informaton & Accountng Policies

Company Informaton

The company is incorporated on 10th May, 1995 at Calcuta, West Bengal, India. It is a Public limited company by its shares. The company operates in Capital Market. The actvites of the company include broking, trading, investng in shares & other securites and other related actvites of capital market.

NOTE 2.1

The Trade Receivable of Rs.70.74 Lacs from GCM Commodity & Derivatves Ltd. Is on account of setlement dues from Natonal Spot Exchange Ltd.

NOTE 2.2

The Company has not received any intmaton from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure, if any, relatng to amount unpaid as at the year end together with interest paid/payable as required under the said act, have not been given.

NOTE. 2.3

In accordance with the requirement under the Accountng Standard - 22 "Accountng for taxes on Income" the company has accounted for deferred Tax during the year. Consequently the net deferred tax asset of Rs.58297/- during the year arising due to tming diference in depreciaton & related items has been credited to Statement of Profit & Loss.

NOTE 2.4

The Payment of Gratuity Act, 1972 is not applicable to the company as the number of permanent employees in the company are below ten, similarly no other benefits are paid. The leave encashment are paid within the year and no leave balances are carried forward. Hence AS – 15 Employee benefit has been complied with.

NOTE 2.5

There are no impairment of Assets, as the management is of the opinion that the carrying value of assets is more than the realizable value as on 31st March, 2014.

NOTE. 2.6

Related Party Disclosures: Directors are Key Management Personnel of the Company

Directors of the Company

1) Inder Chand Baid

2) Manish Baid

3) Samir Baid

Other Related enttes:

1) Global Capital & Infrastructure Ltd.

2) Cadillac Vanijya Private Limited

3) Silverpearl Commercial Pvt. Ltd.

4) Chello Commotrade Pvt.Ltd.

5) GCM Capital Advisors Ltd.

6) GCM Commodites & Derivatves Ltd. Remuneraton to Directors : 24000/- ( Manish Baid)

NOTE 2.7

The Compnay has only one reportable segment namely Share Broking & Self trading in invsetment products and accordingly disclosures regarding segment reportng are not being made separately.

NOTE 2.8

Previous year''s figures have been re-arranged and re-grouped wherever considered necessary.

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Mar 31, 2013

Company Information

The company is incorporated on 10th May, 1995 at Calcutta, West Bengal, India. It is a Public limited company by its shares. The company operates in Capital Market. The activities of the company include broking, trading, investing in shares & other securities and other related activities of capital market.

NOTE 1.1

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to amount unpaid as at the year end together with interest paid/payable as required under the said act, have not been given.

NOTE. 1.2

In accordance with the requirement under the Accounting Standard - 22 "Accounting for taxes on Income" the company has accounted for deferred Ta x during the year. Consequently the net deferred tax asset of Rs. 349516/- during the year arising due to timing difference in depreciation & related items has been credited to Profit & Loss account.

NOTE 1.3

The Payment of Gratuity Act, 1972 is not applicable to the company as the number of permanent employees in the company are below ten, similarly no other benefits are paid. The leave encashment are paid within the year and no leave balances are carried forward. Hence AS – 15 Employee Benefit has been complied with.

NOTE 1.4

There are no impairment of Assets, as the management is of the opinion that the carrying value of assets is more than the realizable value as on 31st March, 2013.

NOTE. 1.5

Related Party Disclosures: Directors are Key Management Personnel of the Company Directors of the Company

1) Inder Chand Baid

2) Manish Baid

3) Samir Baid

4) Saroj Baid

Other Related entities:

1) Global Capital & Infrastructure Ltd.

2) Cadillac Vanijya Private Limited

3) Silverpearl Commercial Pvt. Ltd.

4) Chello Commotrade Pvt.Ltd. Remuneration to Directors : 24000/- ( Manish Baid)

Amount paid to Relatives of Directors ( Shrenik Choraria Salary ) : 2,40,000/- Amount paid to Relatives of Directors ( Amrita Baid Salary ) : 1,20,000/-

NOTE 1.6

The Compnay has only one reportable segment namely Share Broking & Self trading and accordingly disclosures regarding segment reporting are not being made separately.

NOTE 1.7

Previous year''s figures have been re-arranged and re-grouped wherever considered necessary.