Notes to Accounts of Hexa Tradex Ltd.

Mar 31, 2023

i) Including 300 No. of shares held through nominee shareholders. Further, as collateral security 25% shares has been pledged and 75% shares provided under Non Disposable Undertaking for Term Loan sanctioned '' 42500 lakhs by Tata Capital Financial Services Limtied to subsidiary Hexa Securities and Finance Company Limited. Corporate guarantee of

'' 42500 lakhs also given for said term loan. Loan outstanding as on 31st March, 2023 is '' 34202.42 lakhs (31st March, 2022''19130.90 lakhs).

ii) NCLT Cuttack vide its order number MA No. 16B/2021 dated January 18, 2021 had approved a scheme of amalgamation (merger by absorption) of Danta Enterprises Private Limited (''''transferor company 1''''), Glebe Trading Private Limited (''''transferor company 2'''') into Siddeshwari Tradex Private Limited (''''transferee company''''). As a result for every 15 shares of Danta Enterprises Private limited 14 shares of Siddeshwari Tradex Private Limited was issued to the company.

d) 650 equity shares have been held in abeyance, and not allotted due to attachment orders by Court.

e) Terms/ rights attached to equity shares:

The Company has only one class of equity shares having a par value of '' 2/- per equity share and holder of the equity share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to 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 holders of the equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held.

Nature of reserves:

Retained earnings represent the undistributed profits of the Company.

Other comprehensive income reserve represent the balance in equity for items to be accounted in other comprehensive income. OCI is classified into (i) Items that will not be reclassified to profit and loss (ii) Items that will be reclassified to profit and loss.

Securities premium represents the amount received in excess of par value of securities (equity shares, preference shares and debentures).

22. Financial risk management22.1 Financial risk factors

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for Company''s operations. The Company has loans, trade and other receivables and cash that arise directly from its operations. The Company''s activities expose it to a variety of financial risks.

i) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments. 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. 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. This is based on the financial assets and financial liabilities held as at March 31,2023 and March 31,2022.

ii) Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

iii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.

The Company''s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company''s financial performance.

Risk management is carried out by the treasury department under policies approved by the board of directors. The treasury team identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, and credit risk.

Market Risk

The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post-employment benefit obligations provisions and on the non-financial assets and liabilities. The sensitivity of the relevant Statement of Profit and Loss item is the effect of the assumed changes in the respective market risks. The Company''s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates.

a) Foreign exchange risk and sensitivity

The Company transaction are in USD. The Company has foreign currency trade payables and is therefore, exposed to foreign exchange risk.

c) Commodity price risk and sensitivity

i) Credit risk

Credit risk arises from cash and cash equivalents, deposited with banks, credit exposures from customers including outstanding receivables and other financial instruments.

ii) Trade receivables

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low. Trade receivables for the year ended March 31,2023 is Nil (March 31,2022 Nil).

iii) Others

For cash and cash equivalents and deposit held with banks, the Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which balances and deposits are maintained. Generally, the balances are maintained with the institutions with which the Company has also availed borrowings. The Company does not maintain significant cash and deposit balances other than those required for its day to day operations. There are no receivables which have significant increase in credit risk or credit impaired.

d) Liquidity risk

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Company relies on a mix of borrowings, capital infusion and excess operating cash flows to meet its needs for funds. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

The table below provides undiscounted cash flows towards financial liabilities into relevant maturity based on the remaining period at the balance sheet to the contractual maturity date.

22.2 Competition risk

The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage in terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of its customers.

22.3 Capital risk management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements ofthe financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company''s capital management is to maximize the shareholder value. The Company''s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company''s ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. No changes were made in the objectives, policies or processes during the year ended March 31,2023 and year ended March 31,2022.

Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant available data. The fair values of the financial assets and liabilities represents the amount 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.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash, bank and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Long-term fixed-rate and variable-rate loans/ borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. Risk of non-performance for the Group is considered to be insignificant in valuation.

Fair Value hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3 as described below:

Fair Valuation of Financial guarantees:

Financial guarantee issued by the company on behalf of its subsidiary company have been measured through profit & loss account. Fair value of said guarantee as at 31st March 2023 is considered Nil (31st March 2022 Nil).

Level 1: It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date like mutual funds. The mutual funds are valued using the closing net assets value (NAV) as at the balance sheet date.

Level 2: It includes fair value of the financial instruments that are not traded in an active market like over-the-counter derivatives, which is valued by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the company specific estimates. If all significant inputs required to fair value an instrument are observable then instrument is included in level 2.

Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

31. Employee benefit obligations

The Company has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. Refer table below for the expense recognised during the period towards defined contribution plan:

2. Below tables sets forth the changes in the projected benefit obligation and plan assets and amounts recognised in the standalone Balance Sheet as at March 31, 2023 and March 31, 2022, being the respective measurement dates:

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the balance sheet. The method and types of assumption used in preparing the sensitivity analysis did not change as compared to the previous year.

OCI presentation of defined benefit plan

Gratuity is in the nature of defined benefit plan, Accordingly, re-measurement gains and losses on gratuity is presented under OCI as an item that will not be reclassified to profit and loss alongwith income tax effect on the same.

Presentation in statement of profit & loss and balance sheet

Expense for service cost, net interest cost and expected return on plan assets is charged to statement of profit & loss.

Actuarial liability for leave encashment and gratuity is shown as current and non-current provision in balance sheet.

The Company has taken policy from Jindal Saw Limited for managing gratuity fund. The major categories of plan assets for the year ended March 31,2023 and March 31,2022 has not been provided by the insurance company. Accordingly, the disclosure for major categories of plan assets has not been provided.

Risk exposure

The Company has taken gratuity policies from an insurance company. Contribution towards policies are done annually basis demand from the insurance company.

The insurance policy is non participating variable insurance plan and will not participate in the profits of the insurance company.

These policies provide for minimum floor rate (MFR), i.e. a guaranteed interest rate that the policy account will earn during the entire policy term. In addition to MFR the insurance company shall also declare a nonzero positive additional interest rate (AIR) at the beginning of every financial quarter on the policy account

and AIR shall remain guaranteed for that financial quarter. In addition to this, the policy also earns residual addition.

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility

This may arise from volatility in asset values due to market fluctuations. Most of the plan asset investments are in fixed income securities.

Changes in government bond yields

The plan liabilities are calculated using a discount rate set with reference to government bond yields. A decrease in government bond yields will increase plan liabilities and vice-versa, although this will be partially offset by an increase in the value of the plans'' holdings in such bonds.

Salary cost inflation risk

The present value of the defined benefit plan liability is calculated with reference to the future salaries of participants under the Plan. Increase in salary due to adverse inflationary pressures might lead to higher liabilities.

(ii) Benami Property

No proceedings have been initiated or pending against the company under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(iii) Statements filed with banks or financial institutions

The company don''t have any borrowings from banks and financial institutions on the basis of security of current assets. Hence, there is no requirement to file quarterly returns or statements of current assets with banks and financial institutions.

(iv) Wilful Defaulter

The company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vi) Registration of charges or satisfaction with Registrar of Companies

The company do not have any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

(vii) Compliance with number of layers of companies

The company has complied with the provisions related to number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

(ix) Compliance with approved Scheme(s) of Arrangements

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

(x) Utilisation of Borrowed funds and share premium:

The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries. The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the group shall:

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

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

(xi) Undisclosed income

No income has been surrended or disclosed for which transaction was not recorded in the books of accounts that 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).

(xii) The company doesn''t fulfill the criteria covered under section 135 of the Companies act, 2013. Therefore the provisions related to CSR are not applicable.

(xiii) There was no transaction related to Crypto Currency or Virtual Currency during the year.

34 Segment information

The Company has two primary business segments viz. trading and other activities and investment & finance. Company''s operations are carried out in India and all assets are also located in India, hence, there is no reportable secondary business segment.

Segments have been identified taking into account nature of product and differential risk and returns of the segment. These business segments are reviewed by the CEO (Chief operating decision maker).

36. An Initial public announcement made by the promoter group persons / entities in accordance with Regulation 8 of the Securities and Exchange Board of India (Delisting of Equity Shares), 2022, inter alia, expressing the intention to voluntary delist the equity shares of the Company and approved to initiate the process and the floor price and notice of postal ballot. The shareholders of the company had also approved the delisting of shares of the company. The in-principle approval from the Stock Exchanges are pending.

37. These financial statements were approved and adopted by board of directors of the Company in their meeting dated May 25, 2023.

38. Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year''s classification.

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Mar 31, 2018

1. Corporate and General Information

Hexa Tradex Limited (“Hexa" or ''''the Company") is domiciled and incorporated in India and its shares are publicly traded on the National Stock Exchange (''NSE'') and the Bombay Stock Exchange (''BSE''), in India. The registered office of the Company is situated at A-1, UPSIDC Industrial Area, Nandgaon Road, Kosi Kalan, District Mathura, 281403 (U.P.) India.

Information of principal shareholders of the Company is provided in note 15.

2. Basis of preparation

The Company adopted IND AS for the financial year beginning on April 1, 2017 with April 1, 2016 as the date of transition. These are the Company''s first annual financial statements prepared complying in all material respects with the accounting standards notified under Section 133 of the Companies Act 2013, read together with Companies (Accounts) Rule 2015. The financial statements comply with IND AS notified by Ministry of Company Affairs (“MCA"). The Company has consistently applied the accounting policies used in the preparation of its opening IND AS Balance Sheet at April 1, 2016 throughout all periods presented, as if these policies had always been in effect and are covered by IND AS 101 ''''First-time adoption of Indian Accounting Standards''''. The transition was carried out from accounting principles generally accepted in India (''''Indian GAAP'''') which is considered as the previous GAAP, as defined in IND AS 101. The reconciliation of effects of the transition from Indian GAAP on the equity as at April 1, 2016 and March 31, 2017 and on the net profit/(loss) and cash flows for the year ended March 31, 2017 is disclosed in Note 38 to these financial statements. The financial statement has been prepared considering all IND AS as notified by MCA till reporting date i.e. March 31, 2018. The standalone financial statements provide comparative information in respect to the previous year. In addition, the company presents Balance Sheet as at the beginning of the previous year, which is the transition date to IND AS.

The significant accounting policies used in preparing the financial statements are set out in Note 3 of the Notes to the Standalone Financial Statements.

The preparation of the financial statements requires management to make estimates and assumptions. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision effects only that period or in the period of the revision and future periods if the revision affects both current and future years (refer Note 4 on critical accounting estimates, assumptions and judgements).

c) Aggregate number of bonus shares issued, shares issued for consideration other than cash, shares bought back during the period of five years immediately preceding the reporting date:

5,52,45,354 equity shares were issued pursuant to demerger of investment undertaking of Jindal SAW Limited in financial year 2011-12.

d) Terms/ rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs. 2/- per equity share and holder of the equity share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to 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 holders of the equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held.

Nature of reserves

i) Retained earnings represent the undistributed profits of the Company.

ii) Other comprehensive income reserve represents the balance in equity for items to be accounted in other comprehensive income (OCI). OCI is classified into (i) Items that will not be reclassified to profit and loss and (ii) Items that will be reclassified to profit and loss.

iii) Securities premium reserve represents the amount received in excess of par value of securities (equity shares, preference shares and debentures). Premium on redemption of securities is accounted in security premium available. Where security premium is not available, premium on redemption of securities is accounted in statement of profit and loss. Section 52 of Companies Act, 2013 specify restriction and utilisation of security premium.

The above loan is repayable in one bullet installment and carries interest rate @ 11.00% p.a. (March 31, 2017 12.00% p.a. and April 1, 2016 12.00% p.a.).

There is no default in repayment of principal and interest.

3. Financial risk management

3.1 Financial risk factors

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for Company''s operations. The Company has loan and other receivables, trade and other receivables and cash that arise directly from its operations. The Company''s activities expose it to a variety of financial risks:

i) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments. 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. 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. This is based on the financial assets and financial liabilities held as at March 31, 2018 and March 31, 2017.

ii) Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

iii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.

The Company''s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company''s financial performance. Risk management is carried out by the treasury department under policies approved by the board of directors. The treasury team identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, and credit risk.

Market Risk

The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post-employment benefit obligations provisions and on the non-financial assets and liabilities. The sensitivity of the relevant Statement of Profit and Loss item is the effect of the assumed changes in the respective market risks. The Company''s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates.

a) Foreign exchange risk and sensitivity

The Company transacts business primarily in Indian Rupee, USD and GBP. The Company has outstanding liabilities and is therefore, exposed to foreign exchange risk.

The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment.

i) Credit risk

The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, mutual funds and financial institutions and other financial instruments.

ii) Trade Receivables

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

iii) Provision for expected credit losses

The Company extends credit to customers as per the internal credit policy. Any deviation are approved by appropriate authorities, after due consideration of the customers credentials and financial capacity, trade practices and prevailing business and economic conditions. The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the customers etc. Loss allowances and impairment is recognised, where considered appropriate by the management.

iv) Financial instruments and cash deposits

The Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which balances and deposits are maintained. Generally, the balances are maintained with the institutions with which the Company has also availed borrowings. The Company does not maintain significant cash and deposit balances other than those required for its day to day operations.

c) Liquidity risk

The Company''s objective is to; at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies on a mix of borrowings, capital infusion and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

The table below provides undiscounted cash flows towards non-derivative financial liabilities and net-settled derivative financial liabilities into relevant maturity based on the remaining period at the balance sheet to the contractual maturity date.

3.2 Competition and price risk

The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage in terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of its customers.

3.3 Capital risk management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company''s capital management is to maximize the shareholder value. The Company''s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company''s ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. No changes were made in the objectives, policies or processes during the year ended March 31, 2018 and year ended March 31, 2017.

For the purpose of the Company''s capital management, capital includes issued capital, compulsorily convertible debentures, share premium and all other equity reserves. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents.

The Company monitors capital using gearing ratio, which is net debt divided by sum of capital and net debt.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches of the financial covenants of any interest bearing loans and borrowing for reported periods.

Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount 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.

The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. For fixed interest rate borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance for the Group is considered to be insignificant in valuation

3) The fair values of derivatives are estimated by using pricing models, where the inputs to those models are based on readily observable market parameters basis contractual terms, period to maturity, and market parameters such as interest rates, foreign exchange rates, and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not require significant judgement, and inputs thereto are readily observable from actively quoted market prices. Management has evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant and not warranting a credit adjustment.

Fair Value hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3 as described below:

i) Quoted prices / published NVA (unadjusted) in active markets for identical assets or liabilities (level 1). It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date and financial instruments like mutual funds for which net assets value (NAV) is published mutual fund operators at the balance sheet date.

ii) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). It includes fair value of the financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the Company specific estimates. If all significant inputs required to fair value an instrument are observable then instrument is included in level 2.

iii) Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

During the year ended March 31, 2018, March 31, 2017, and April 1, 2016, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements. There is no transaction / balance under Level 3.

2. Below tables sets forth the changes in the projected benefit obligation and plan assets and amounts recognised in the standalone balance sheet as at March 31, 2018 and March 31, 2017, being the respective measurement dates:

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the balance sheet.

OCI presentation of defined benefit plan

Gratuity is in the nature of defined benefit plan, re-measurement gains/(losses) on defined benefit plans is shown under OCI as Items that will not be reclassified to profit and loss and also the income tax effect on the same.

Presentation in Statement of Profit & Loss and Balance Sheet

Expense for service cost, net interest on net defined benefit liability /(asset) is charged to Statement of Profit and Loss.

IND AS 19 does not require segregation of provision in current and non-current, however net defined liability/assets is shown as current and non-current provision in balance sheet as per IND AS 1.

Actuarial liability for leave encashment is shown as current and non-current provision in balance sheet.

When there is surplus in defined benefit plan, Company is required to measure the net defined benefit asset at the lower of; the surplus in the defined benefit plan and the assets ceiling, determined using the discount rate specified, i.e. market yield at the end of the reporting period on government bonds, this is applicable for domestic companies, foreign companies can use corporate bonds rate.

The Company assesses these assumptions with its projected long-term plans of growth and prevalent industry standards. The mortality rates are used from IALM 2006-08 Ultimate as per actuary certificate.

The Company has taken policies from an insurance company for managing gratuity fund. The major categories of plans assets for the year ended March 31, 2018 has not been provided by the insurance company. Accordingly, the disclosure for major categories of plan assets has not been provided.

Risk exposure

The Company has taken group gratuity policies from an insurance company. Contribution towards policies are done annually basis demand from insurance company.

The insurance policy is non participating variable insurance plan and will not participate in the profits of the insurance company.

These policies provide for minimum floor rate (MFR), i.e. a guaranteed interest rate that the policy account will earn during the entire policy term. In addition to MFR the insurance company shall also declare a non-zero positive additional interest rate (AIR) at the beginning of every financial quarter on the policy account and AIR shall remain guaranteed for that financial quarter. In addition to these both the policy also earn residual addition.

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility

This may arise from volatility in asset values due to market fluctuations. Most of the plan asset investments are in fixed income securities.

Changes in government bond yields

The plan liabilities are calculated using a discount rate set with reference to government bond yields. A decrease in government bond yields will increase plan liabilities and vice-versa, although this will be partially offset by an increase in the value of the plans'' holdings in such bonds.

Salary cost inflation risk

The present value of the defined benefit plan liability is calculated with reference to the future salaries of participants under the plan. Increase in salary due to adverse inflationary pressures might lead to higher liabilities.

b) Disclosure of Specified Bank Notes

During the previous year, the Company had Specified Bank Notes (SBN''s) or other denomination notes as defined in the MCA notification, G.S.R. 308(E), dated March 31, 2017. The details of SBN''s held and transacted during the period from November 8, 2016 to December 30, 2016, the denomination wise SBN''s and other notes as per the notification are as follows:

The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity.

4. Impairment review

Assets are tested for impairment annually or whenever there are any indicators for impairment. Impairment test is performed at the level of each Cash Generating Unit (''CGU'') or group of CGUs within the Company at which assets are monitored for internal management purposes within an operating segment. The impairment assessment is based on higher of value in use and fair value less cost.

5. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs.1,052.78 lakhs (March 31, 2017 Rs.917 lakhs and April 1, 2016 Rs.546 lakhs)

6 Segment reporting

The Company has two business segments viz. trading activities and investment and finance including consultancy. Company''s operations are carried out in India and all assets are also located in India, hence, there is no reportable secondary business segment.

Segments have been identified taking into account nature of product and differential risk and returns of the segment. These business segments are reviewed by the CEO (Chief operating decision maker).

7. Transition to IND AS

Basis of preparation

For all period up to and including the year ended March 31, 2017, the Company has prepared its financial statements in accordance with generally accepted accounting principles in India (Indian GAAP). These financial statements for the year ended March 31, 2018, are the Company''s first annual IND AS financial statements and have been prepared in accordance with IND AS.

Accordingly, the Company has prepared financial statements which comply with IND AS applicable for periods beginning on or after April 1, 2016, as described in the accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 1, 2016, the Company''s date of transition to IND AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP Balance Sheet as at April 1, 2016 and its previously published Indian GAAP financial statements for the year ended March 31, 2017.

Exemptions Applied

IND AS 101 First-time adoption of Indian Accounting Standards allows first time adopters certain exemptions from the retrospective application of certain IND AS, effective for April 1, 2016 opening balance sheet.

Following exemptions availed from other IND AS as per Appendix D of IND AS 101.

1. The Company has decided to disclose prospectively from the date of transition the following as required by IND AS 19.

i. The present value of the defined benefit obligation, the fair value of the plan assets and the surplus or deficit in the plan, and

ii. The experience adjustments arising on;

a) The plan liabilities expressed as either an amount or a percentage of the plan liabilities at the end of the reporting period; and

b) The plan assets expressed as either an amount or a percentage of the plan liabilities at the end of the reporting period.

Under previous GAAP the Company was considering leave encashment as defined benefit plan as there was no difference in previous GAAP for accounting of experience adjustments and impact of change in actuarial assumption. On transition to IND AS, the Company has considered leave encashment as short term benefit and consequently experience adjustments and impact of change in actuarial assumption is accounted in P&L.

2. Fair value of financial assets and liabilities

The Company has financial receivables and payables that are non-derivative financial instruments. Under previous GAAP, these were carried at transactions cost less allowances for impairment, if any. Under IND AS, these are financial assets and liabilities are initially recognised at fair value and subsequently measured at amortised cost, less allowance for impairment, if any. For transactions entered into on or after the date of transition to IND AS, the requirement of initial recognition at fair value is applied prospectively.

The Company has quoted and unquoted investments in equity shares and preference shares. Under previous GAAP, these were carried at cost. under Ind AS, these are fair valued initially and subsequently.

Impact of transition to IND AS

The following is a summary of the effects of the differences between IND AS and Indian GAAP on the Company''s total equity shareholders'' funds and profit and loss for the financial period for the periods previously reported under Indian GAAP following the date of transition to IND AS.

Principal differences between IND AS and Indian GAAP

Measurement and recognition difference for year ended March 31, 2017

1. Financial instruments

i. Fair valuation of financial assets and liabilities

Under Indian GAAP, receivables and payables were measured at transaction cost less allowances for impairment, if any. Under IND AS, these financial assets and liabilities are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less allowance for impairment, if any. The resulting finance charge or income is included in finance expense or finance income in the Statement of Profit and Loss for financial liabilities and financial assets respectively.

ii. Non-current investments others than investment in subsidiary

Under IND AS investments are designated as fair value through other comprehensive income (FVOCI), fair value through profit and loss (FVTPL) and carried at amortised cost. For investment designated as FVOCI, difference between the fair value and carrying value is recognised in OCI. For investment designated as FVTPL, difference between the fair value and carrying value is recognised in profit and loss. For investment designated as amortised cost, accrual of interest is recognised in profit and loss with which value of investment will be equal to maturity date contractual cash flows which includes solely payments of interest and principal.

2. Deferred Tax

The Company has accounted for deferred tax on the various adjustments between Indian GAAP and IND AS at the tax rate at which they are expected to be reversed.

The Company has fair valued investment in subsidiary on transition, considering that there would be no long term capital gain in foreseeable future period, no deferred tax assets has been created on the fair valuation impact.

3. The impact of change in actuarial assumption and experience adjustments for defined benefit obligation towards gratuity liability is accounted in the statement of other comprehensive income and corresponding tax impact on the same. Due to this Rs.0.67 lakhs and Rs.0.22 lakhs as tax effect thereon for the year ended March 31, 2017 is shown in OCI and reversed in statement of profit and loss.

4. Statement of Cash Flows

The impact of transition from Indian GAAP to IND AS on the Statement of Cash Flows is due to various reclassification adjustments recorded under IND AS in Balance Sheet, Statement of Profit & Loss and difference in the definition of cash and cash equivalents and these two GAAP''s.

8. Information related to Consolidated financial statements

The company is listed on stock exchange in India, the Company has prepared consolidated financial statements as required under IND AS 110, Sections 129 of Companies Act, 2013 and listing requirements. The consolidated financial statements is available on company''s web site for public use.

9. These financial statements were approved and adopted by board of directors of the Company in their meeting dated May 25, 2018.

10. Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year''s classification.

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Mar 31, 2016

(c) Aggregate number of bonus shares issued, shares issued for consideration other than cash, shares bought back during the period of five years immediately preceding the reporting date:

5,52,45,354 Equity Shares were Issued pursuant to demerger of Investment Undertaking of Jindal SAW Limited in Financial year 2011-12.

(d) Terms/ Rights attached to Equity Shares:

1. The Company has only one class of Equity Share having a par value of Rs.2/- each.

2. Each Equity Shareholder is entitled to one vote per share.

3 In the opinion of the Management, the realizable value of assets other than fixed assets and long term investments, in the ordinary course of business, would not be less than the amount at which they are stated.

4 Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances)- Rs.546 lacs (Previous year Rs.546 lacs) 25 Segment Reporting

i) Information about Business Segments

The company has two business segments viz. Trading Activities and Investment & Finance. Company''s operations are carried out in India and all assets are also located in India, hence, there is no reportable secondary business segment.

5 Details of Loans given, Investments made and Guarantees given, covered U/S 186(4) of the Companies Act, 2013: Loans given and Investments made are given under the respective heads.

6 Previous year figures have been regrouped/re-arranged, wherever considered necessary.

7 Notes 1 to 34 are annexed to and form an integral part of Financial Statements.

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Mar 31, 2015

1 In the opinion of the Management, the realisable value of assets other than fixed assets and long term investments, in the ordinary course of business, would not be less than the amount at which they are stated.

2 Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances)- Rs. 546 lacs (Previous year Rs. 498 lacs)

(i) Information about Business Segments

The company has two business segments viz. Trading Activities and Investment & Finance. Company's operations are carried out in India and all assets are also located in India hence there is no reportable secondary business segment.

3 Related Parties Disclosures

List of Related Parties & Relationship

a) Subsidiary

Hexa Securities and Finance Company Limited

b) List of Key Management Personnel ( KMP ) & Person having significant influence

1 Mr. Prithvi Raj Jindal Chairman (Non Executive)

2 Ms. Sminu JindalManaging Director

3 Mr. Neeraj Kanagat Asstt. Vice President (Treasury) & CFO

4 Mr. Pravesh Srivastava Company Secretary

c) List of Relatives of Key Management Personnel ( KMP ) where transactions have taken place

1 Ms. Arti JindalWife of Mr Prithvi Raj Jindal

2 Ms. Reena Kanagat Wife of Mr. Neeraj Kanagat

d) Entities, where individual,having significant influence over reporting enterprise or KMP and/or their relatives, having significant influence

1 Danta Enterprises Private Limited

2 Groovy Trading Private Limited

3 Jindal Saw Limited

4 JITF Shipyards Limited

5 JSW Holdings Limited

6 JSW Steel Limited

7 Nalwa Sons Investment Limited

8 OPJ Trading Private Limited

9 P R Jindal HUF

10 PRJ Holdings Private Trust

11 Rohit Tower Building Limited

12 Sahyog Tradecorp Private Limited

13 Sonabheel Tea Limited

14 Virtuous Tradcorp Private Limited

4 Details of loans given, investments made and guarantees given, covered U/S 186 (4) of the Companies Act, 2013:

Loans given and investment made are given under the respective heads.

5 Previous year figures have been regrouped/re-arranged,wherever considered necessary.

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Mar 31, 2014

1. In the opinion of the Management, the realisable value of assets other than fixed assets and long term investments, in the ordinary course of business, would not be less than the amount at which they are stated.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances)- Rs. 498 lacs (previous year Rs. Nil)

3. Related Parties Disclosures

List of Related Parties & Relationship

a) Subsidiary

- Hexa Securities & Finance Co. Limited

b) Key Management Personnel

- Ms. Sminu Jindal – Managing Director

- Mr. Neeraj Kanagat - CFO

c) Relatives of Key Management Personnel

- Mr. P.R. Jindal

- Ms. Arti Jindal

- Ms. Reena Kanagat

d) Enterprises over which Key Management Personnel and their relatives exercise significant influence

- Jindal Saw Limited

- P R Jindal HUF

- PRJ Holdings Private Trust

4. Previous year figures have been regrouped/re-arranged,wherever considered necessary.

5. Notes 1 to 33 are annexed and form integral part of Financial Statements.

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Mar 31, 2013

1) In the opinion of the Management, the realisable value of assets other than fixed assets and long term investment, in the ordinary course of business, would not be less than the amount at which they are stated.

2) Segment Reporting

(i) Information about Business Segments

The company has two business segments viz. Trading Activities and Investment & Finance. Company''s operations are carried out in India and all assets are also located in India hence there is no reportable secondary business segment.

3) Related Party Transactions

List of Related Parties & Relationship

a) Subsidiaries:

- Hexa Securities & Finance Co. Ltd

b) Key Management Personnel

- Ms. Sminu Jindal – Managing Director

- Mr. Neeraj Kanagat-CFO

c) Enterprise over which key management personnel having significant influence

- Jindal Saw Limited

D) Relative of Key Management Personnel

- Mr. P.R. Jindal

4) Sundry Debtors, Creditors and other advances are subject to confirmation. The effect of the same, if any, which is not likely to be material, will be adjusted at the time of confirmation.

5) Figures for previous period ended 31st March, 2012 are not comparable with current year figures as previous period''s figures were from date of incorporation i.e.25th October, 2010 to 31st March, 2012.

6) Previous period''s figures have been regrouped wherever necessary.

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Mar 31, 2012

1) This is the first financial period of the company, hence there are no previous year figures. Profit and loss account has been prepared from the date of incorporation i.e. 25th October, 2010 to 31st March, 2012.

2) Related Party Transactions List of Related Parties & Relationship

a) Subsidiaries:

Hexa Securities ft Finance Co. Ltd

b) Key Management Personnel

Ms. Sminu Jindal - Managing Director Mr. Neeraj Kanagat-CFO

c) Enterprise over which key management personnel having significant influence Jindal SAW Limited

3) In terms of the Scheme of Arrangement and Demerger (Scheme) with Jindal SAW Limited (JSL) for demerger of Investment Undertaking of the JSL and as per the Order of the Hon'ble High Court of Judicature at Allahabad dated August 29, 2011 which has been filed with the Registrar of Companies, Uttar Pradesh on 5th November 2011, Investment Undertaking of the JSL stands demerged with the Company w.e.f. 1st January, 2011, the appointed date. The assets and liabilities transferred as per the Scheme is as under:-

Further as per Scheme, existing capital of the Company of Rs 5 lacs stands cancelled and is credited to Securities Premium.

As per the Scheme, the Company has allotted to the equity shareholders of JSL 1 (one) equity share of face value of Rs. 2/- (credited as fully paid-up) for every 5 (five) fully paid-up equity shares of Rs. 2/- each held by them in JSL as on the Record Date i.e. 23rd November, 2011. Accordingly, the paid up capital of the Company is 55245354 equity shares of Rs 21- each amounting to Rs. 1104.91 lacs.

4) Segment Reporting

(i) Information about Business Segments

The company has two business segments viz. Trading Activities and Investment & Finance. Company's operations are carried out in India and all assets are also located in India hence there is no reportable secondary business segment.

NOTE: Segments have been identified in line with AS on Segment Reporting (AS-17) taking into account the organisational structure, nature of product and differential risk and returns of these segments.

5) In the opinion of the board any of the assets (other than fixed assets and non current investment) in the ordinary course of business, would not be less than the amount at which they are stated.

As per our report of even date attached