Accounting Policies of Algoquant Fintech Ltd. Company

Mar 31, 2023

1. Corporate Information

Algoquant Fintech Limited [Formerly Hindustan Everest Tools Limited] ("Algoquant" or the ''Company'') was incorporated on 25-January-1962 and is engaged in the business of trading in financial instruments [w.e.f. 10-Feb-2021].

The Company was formerly engaged in the business of trading in metals, which was discontinued w.e.f. 01-April-2021.

The Company is domiciled in India and the address of its registered office of the Company is at Unit No. 705, 07th Floor of ISCON Elegance,developed at Plot No. 24, Prahaladnagar Ahmedabad City Gujarat -380015. The equity shares of the Company are listed on BSE Limited ("BSE" or "the Stock exchange").

The Company is a wholly owned subsidiary of Algoquant Investment Private Limited [Formerly Mandelia Investment Private Limited] and during the year ended 31-March-2021, there was a change in the management of the Company.

2. Summary of significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistent with those of the previous year unless otherwise stated.

A) Basis of preparation

i) Statement of compliance

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (the ''Act'') and other relevant provisions of the Act. The Company has prepared these financial statements which comprise the Balance Sheet as at 31-March-2023, the Statement of Profit and Loss (including other comprehensive income),and the Statement of Changes in Equity for the year ended 31-March-2023, and a summary of the significant accounting policies and other explanatory information (together hereinafter referred to as "financial statements").

The financial statements have been prepared on going concern basis using a historical cost convention, except certain financial assets and financial liabilities which are measured at fair value as explained in relevant accounting policies.

The Company does not have any investment that is required to be consolidated. Therefore, the Company has presented these standalone financials only. Accordingly, there are no consolidated financial statements.

These financial statements are presented in Indian Rupees (?) which is the functional currency of the Company. All amounts disclosed in the financial statements which also include the accompanying notes have been rounded off to the nearest lakh as per the requirement of Schedule III to the Companies Act, 2013, unless otherwise stated.

ii) Discontinued operations

The Company had closed the only manufacturing facility in the year 2017. Results of the manufacturing operations that were discontinued, are disclosed as discontinued operations. Further, during the quarter ended 31-Dec-2018, the Company had substantially completed the settlement of liabilities and realization of assets, pertaining to its discontinued operations.The adjustments in the current period pertain to changes in the settlement of those liabilities.

iii) Presentation of financial statements Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. All the assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 "Presentation of Financial Statements".

An asset is treated as current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle ofthe Company

• Held primarily for the purposes of trading

• Expected to be realized within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

• It is expected to be settled in normal operating cycle of the Company

• It is held primarily for the purposes of trading

• It is due to be settled within twelve months from the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

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

iv) Use of estimates and judgements

The preparation of the Pro Forma financial statements in conformity with Ind AS requires that management make judgments, estimates and assumptions that affect the application of accountingpolicies and the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the income and expense for thereporting period. The actual results could differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

In particular, information about significant judgements and areas of estimation uncertainty in applying accounting policies that have the most significant effect on the amounts recognizedin the Pro Forma financial statements are discussed below:

Significant management judgements

The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the Pro Forma financial statements are as follows:

¦ Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilized.

¦ Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.

¦ Classification of leases - The assessment (including measurement) of the lease is based on several factors, including, but not limited to, transfer of ownership of leased asset atend of lease term, lessee''s option to extend/terminate etc. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to extend or to terminate.

¦ Defined benefit plans - The liabilities and costs for defined benefit plans are determinedjsing actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the longterm nature of these plans, such estimates are subject to significant uncertainty.

¦ Provisions

At each balance sheet date basis the management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.

¦ Contingencies

In the normal course of business, contingent liabilities may arise from litigation, taxationand other claims against the Company. A tax provision is recognized when the Companyhas a present obligation as a result of a past event; it is probable that the Company will be required to settle that obligation. Where it is management''s assessment thatthe outcome cannot be reliably quantified or is uncertain the claims are disclosed as contingent liabilities unless the likelihood of an adverse outcome is remote. Such liabilities are disclosed in the notes but are not provided for in the Pro Forma financial statements.When considering the classification of a legal or tax cases as probable, possible or remotethere is judgement involved.

This pertains to the application of the legislation, which in certain cases is based upon management''s interpretation of country specific tax law, in particular India, and the likelihood of settlement. Management uses in-house and external legal professionals to inform their decision.

Although, there can be no assurance regarding the final outcome of the legal proceedings, the Company does not expect them to have a materially adverse impact on the Company''s financial position or profitability.

¦ Going concern

The management has made an assessment of the Company''s ability to continue as going concern and is satisfied that the Company has resources to continue in business for the foreseeable future. Further, management is not aware of any material uncertainties thatmay cast significant doubt upon the Company''s ability to continue as going concern.

¦ Estimation uncertainty

Information about estimates and assumptions that have the most significant effect on

recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may be substantially different.

¦ Recoverability of advances/ receivables - At each balance sheet date, based on discussions with the respective counterparties and internal assessment of their credit worthiness, the Management assesses the recoverability and expected credit loss of outstanding receivables and advances. Such assessment requires significant management judgement based on financial position of the counter-parties, market information and other relevant factor.

¦ Classification of assets and liabilities into current and non-current - The management classifies the assets and liabilities into current and non-current categories basedon management''s expectation of the timing of realization of the assets or timing of contractual settlement of liabilities.

¦ Impairment of non-financial assets - The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.

¦ Impairment of financial assets - The Company estimates the recoverable amount of trade receivables and other financial assets where collection of the full amount is expected to be no longer probable. For individually significant amounts, this estimation is performed on an individual basis considering the length of time past due, financial condition of the counterparty, impending legal disputes, if any and other relevant factors.

¦ Fair value measurements - Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible, but this is not always available. In that case management uses the best information available.

¦ Useful lives of Property, Plant and Equipment - The Company uses its technical expertise along with historical and industry trends for determining the economic life of an asset/ component of an asset. The useful lives are reviewed by management periodically and revised, if appropriate. In case of a revision, the unmortised depreciable amount is charged over the remaining useful life of the asset.

B) Financial instruments

Recognition and initial measurement

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets are recognized when the Company becomes a party to the contractual provisions of thefinancial instrument and are measured initially at fair value adjusted by transaction costs, except for those carried at fair value through profit or loss which are measured initially at fair value.

Classification and subsequent measurement

The Company has applied Ind AS 109 and classifies its financial assets in the following measurement categories: -

• Amortized cost

• Fair value through other comprehensive income (FVOCI)

• Fair value through profit or loss (FVTPL)

a) Financial assets carried at amortized cost

The Company classifies the financial assets at amortized cost, if the contractual cash flows represent solely payments of principal and interest on the principal amount outstanding and the assets are held under a business model to collect contractual cash flows. The gains and losses resulting from fluctuations in fair value are not recognized for financial assets classified in amortized cost measurement category.

Financial asset is measured at the amortized cost, if both the following conditions are met:

Theassetisheld within a businessmodelwhoseobjective istohold assetsfor collectingcontractual cash flows, and Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.

b) Financial assets measured at FVOCI.

The Company classifies the financial assets as FVOCI if the contractual cash flows represent solelypayments of principal and interest on the principal amount outstanding and the Company''s businessmodel is achieved by both collecting contractual cash flow and selling financial assets. In case of debt instruments measured at FVOCI, changes in fair value are recognized in other comprehensiveincome.

Amounts recognized in OCI are not subsequently reclassified to the Statement of Profit and Loss. Dividend income on the investments in equity instruments are recognized as other income in the Statement of Profit and Loss.

In case of equity instruments irrevocably designated at FVOCI, gains / losses including relating to foreign exchange, are recognized through other comprehensive income. Further, cumulative gainsor losses previously recognized in other comprehensive income remain permanently in equity and are not subsequently transferred to profit or loss on derecognition.

c) Financial assets measured at FVTPL

The financial assets are classified as FVTPL if these do not meet the criteria for classifying at amortized cost or FVOCI. The Company makes such election on an instrument-by-instrument basis.Such financial assets are subsequently measured at fair value at each reporting date. In case of financial assets measured at FVTPL, changes in fair value are recognized in profit or loss.

De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e. removed from the Company''s balance sheet) when:

• The rights to receive cash flows from the asset have expired; or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either (1) the Company has transferred substantially all the risks and rewards of the asset, or (2) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Financial liabilities Subsequent measurement

Subsequent to recognition, all non-derivative financial liabilities are measured at amortized cost using the effective interest method.

De-recognition of financial liabilities

A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

Offsetting

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

Fair Value

The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value is the price that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants at the measurement date.The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability

• In absence of principal market, in the most advantageous market for the asset or liability

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows,the inputs to valuation techniques used to measure value.

The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs).

• Level 1 — quoted (unadjusted) market prices 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 or indirectly

• Level 3 — inputs that are unobservable for the asset or liability

C) Property, plant and equipment

Recognition and measurement

Items of property, plant and equipment are measured at cost, less accumulated depreciation and accumulated impairment losses, if any.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on retirement from active use or disposal of an item of property, plant and equipment is recognized in statement of profit and loss.

All other repair and maintenance costs are recognised in the Statement of Profit and Loss as incurred. Subsequent expenditure

All items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as separate asset is derecognized when replaced.

De-recognition

An item of property, plant and equipment or any significant part initially recognised of such item of property plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognised.

Depreciation method and estimated useful lives

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values over their estimated useful lives using the straight-line method and is generally recognized in the statement of profit and loss.

Depreciation on fixed assets is provided as per the guidance set out in the schedule II to the CompaniesAct, 2013. Depreciation is charged on straight-line method based on estimated useful life of the asset after considering residual value as set out in schedule II to the Companies Act, 2013. Depreciation on additions (disposals) is provided on a pro-rata basis i.e., from (up to) the date on which asset is ready foruse (disposed of).

Useful life of depreciable assets

S.No.	Asset class	Useful life of asset
1	Buildings	3 - 60 years
2	Plant and equipment	8 - 30 years
3	Computers	3 - 6 years
4	Furniture & fixtures	3 - 10 years
5	Leasehold improvements	5 - 10 years

The Management believes that the useful lives as given above represents the period over which the assets are likely to be used. Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

D) Employee benefits

(i) Short-term employee benefit

Short-term employee benefit includes salaries/short-term cash bonus and such obligations are measured at an undiscounted amount and are expensed as the related service is provided. A liability is under short-term cash bonus, if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the amount of obligation can be estimated reliably. These costs are recognized as an expense in the Statement of Profit and Loss at the undiscounted amount expected to be paid over the period of services rendered by the employees to the Company.

(ii) Long-term employee benefits

a) Defined contribution plan

Defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation topay further amounts. The Company makes monthly contributions to statutory provident fund (Government administered provident fund scheme) in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 which is a defined contribution plan. Obligations for contributions to defined contribution plans are recognized as an employee benefit expense in statement of profit or loss in the period(s) during which the related services are rendered byemployees.

b) Defined benefit plan

Defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Gratuity is a post- employment benefit and is in the nature of a defined benefit plan.

The Company''s liabilityisdetermined onthe basisofan actuarial valuation using the projected unit credit method as at the Balance Sheet date. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using discount rate with reference to the market yield on government bonds at the end of reporting period. The Gratuity plan of the Company is un-funded.

Defined benefit costs are categorised as follows:

i) The current service cost of the defined benefit plan, recognised in the Statement of Profit and Loss in employee benefits expense, reflects the increase in the defined benefit obligation resulting from employee service in the current period, benefit changes, curtailments and settlements. Past service costs, which comprise plan amendments and curtailments, as well as gains or losses on the settlement of benefits are recognised immediately in the Statement of Profit and Loss when they occur.

ii) The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation. This cost is included in finance cost in the Statement of Profit and Loss.

iii) Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability, are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to the Statement of Profit and Loss in subsequent periods.

For discontinued operations, in view of closure of its operations in earlier years, the Company''s net obligation in respect of defined benefit plans had been considered as current liability and has been calculated on actual basis as per the provisions of Payment of Gratuity Act, 1972. The same was dischargedduring the previous year.

E) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

F) Leases

For any new contracts entered into on or after 01-April-2019, the Company considers whether a contractis, or contains a lease. A lease is defined as ''a contract, or part of a contract, that conveys the right touse an asset (the underlying asset) for a period of time in exchange for consideration''. Identification ofa lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.

The Company recognizes right of use assets, measured at an amount equal to lease liability (adjusted for related prepayments/ accruals) and discounts lease payments using the incremental borrowing ratefor measuring the lease liability.

The Company depreciates the right of use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. TheCompany also assesses the right-of-use asset for impairment when such indicators exist.

Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed), variable payments based on an index or rate, amounts expected to be payable under a residual value guarantee and payments arising from options reasonably certain to be exercised.

Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments.

When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero.

Short-term leases and leases of low-value assets

The Company has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are recognized as an expense in Statement of profit and loss on a straight-line basis over the lease term.

G) Revenue Recognition Trading in financial instruments

Revenue from trading, primarily consists of trading in marketable financial instruments earned by the Company. Net Trading income represents trading gain net of losses. The profit or loss arising from all transactions entered into on account and risk of the Company are recorded on completion of trade date.The revenue is recorded at the gross value after net trading revenue.

Market Value for exchange traded derivatives, principally, futures and options, are based on quoted market prices. The gains or losses on derivatives used for trading purposes are included in revenue from trading. Purchase & Sales of derivatives financial instruments are recorded on trade date. The transactions are recorded on a net basis.

As per Ind AS 109 Financial Instruments, in respect of options contracts open as on the reporting date,the net premium paid or received is carried forward to the balance sheet as financial assets or financialliabilities. The unrealized gain or loss measured on fair valuation is shown as financial assets or financialliabilities.

Consulting and advisory income

Advisory income or service income is accounted for on an accrual basis in accordance with the terms of the respective agreements entered into between the Company and the counter party.

interest income

Revenue is recognized on accrual basis using effective interest rate method.

Dividend income

Dividend on equity shares, preference shares and on mutual fund units is recognized as income whenthe right to receive the dividend is established as at the reporting date.

H) Income tax

Income tax comprises current and deferred tax incurred by the Company. It is recognised in statement of profit or loss except to the extent that it relates to items recognised directly in equity or OCI, in which case the tax effect is recognised in equity or OCI.

i. Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss forthe period, using tax rates enacted by the reporting period and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the taxamount expected to be paid or received after considering the uncertainty, if any, related to incometaxes.

Current tax assets and current tax liabilities are off set when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a netbasis. The amount of current tax reflects the best estimate of the tax amount expected to be paid orreceived after considering the uncertainty, if any, related to income taxes.

ii. Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assetsand liabilities for financial reporting purposes and the corresponding amounts used for taxationpurposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits.Deferred tax is recognised for:

-deferred tax assets are recognised to the extent that it is probable that future taxable profits will beavailable against which they can be used. The existence of unused tax losses is strong evidence thatfuture taxable profit may not be available. Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realised. Deferred tax assets -unrecognised or recognised, are reviewed ateach reporting date and are recognised/ reduced to the extent that it is probable/ no longer probablerespectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset isrealised or the liability is settled, based on the laws that have been enacted or substantively enactedby the reporting date.

Minimum Alternative Tax (''MAT'') credit is recognized as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specifiedperiod. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT creditasset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

Current and deferred tax is recognised in the statement of profit and loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity and in this case, thetax is also recognised in other comprehensive income or directly in equity, respectively.

The measurement of deferred tax reflects the tax consequences that would follow from the

manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of itsassets and liabilities.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current taxliabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets ona net basis, or their tax assets and liabilities will be realised simultaneously.

I) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, othershort-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,and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

J) Earnings per share

The basic earning/loss per share is computed by dividing the net profit/(loss) before other comprehensive income attributable to owners of the Company for the period by the weighted average number of equityshares outstanding during reporting period.

The number of shares used in computing diluted earnings/(loss) per share comprises the weighted average shares considered for deriving basic earnings/(loss) per share and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equityshares.

While computing basic and diluted earnings/loss per share the Company takes into account issue of ordinary shares during the period which can be in the form of fresh issue at fair value, bonus issue withoutany consideration, stock split, issue of shares to the existing holders in lieu of dividends, right issueto the existing holders of ordinary shares at a price which is equal to or less than the fair value andso on. Accordingly, restated comparative figures of earning/loss per share is presented in the financialstatements.

K) Provisions and contingent liabilities

Provisions are recognized only when there is a present obligation (legal or constructive), as a resultof past events and when a reliable estimate of the amount of obligation can be made at the reporting date. Provisions are determined based on management estimates required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Provisions are discounted totheir 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 willbe 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.

L) Impairment

Impairment of non-financial assets

At each reporting date, the Company assesses whether there is any indication based on internal/

externalfactors, 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 toits 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 assessedimpairment loss no longer exists, the recoverable amount is re-assessed and the asset is reflected at therecoverable amount. Impairment losses previously recognized are accordingly reversed in the statementof 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, theCompany is required to consider:

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

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 sinceinitial recognition, the Company measures the loss allowance at an amount equal to 12-month expectedcredit losses, else at an amount equal to the lifetime expected credit losses.

M) Operating Segment

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (''CODM'') of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segment of the company.

In accordance with IND AS-108, prior to 10-Feb-2021 the Company had only one business segment i.e., business of trading in metals. However, due to unfavorable business environment and to safeguard against losses the Management did not engage into trading in metals during financial years ended 31-March-2020 and 31-Mar-2021. Further, w.e.f. 01-April-2021, the Company has discontinued the business of trading in metals.

The new Management has engaged in the business of trading in financial instruments w.e.f 10-Feb-2021. Accordingly, revenue from operations for the year ended 31-March-2023 represents revenue from trading in financial instruments.

N) Dividends

Being appropriately authorized and no longer at the discretion of the entity, provision is made for the amount of any dividend declared, on or before the end of the reporting period but not distributed at the end of the reporting period.

Final Dividend is recorded as liability on the date of approval by shareholders in their General Meeting.Interim Dividend is declared as liability on the date of declaration by Board of Directors.

O) 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.

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Mar 31, 2015

(i) General Information

Hindustan Everest Tools Limited (hereinafter referred to as 'the Company' HETL)is a manufacturer of Hand Tools. The Company's manufacturing facilities are located at village Jatheri P.O. Rai, Sonipat.

(ii) Accounting Convention

The financial statements are prepared under the historical cost convention, on the accural basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards Notified u/s 133 and the relevant provisions of Companies Act, 2013.

(iii) Use of Estimates

The Preparation of financial statement require estimates and assumptions to be made that effect the reported amount Assets and Liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period which the results are known/ materialised.

(iv) Fixed Assets

i) Freehold Land is at revalued amount.

ii) Buildings, Plant and Machinery & Other Fixed Assets are stated at cost.

(v) Depreciation

Depreciation on Fixed Assets has been provided on Straight Line Method at the rates and in the manner specified in Schedule II of the Companies Act, 2013 (as amended)except in case of the following assets.

Description Usefull Life Justification for Considered deviation

Plant & Machinery 20 Years Based on past history of usage and supported by Technical Evalution report

Laboratory Apparatus 20 Years

Jigs & Fixtures 20 Years

Electric Installation 20 Years

Tubewell & Water Supply 20 Years

Air-Conditioner. 20 Years

Other Office Equipments 20 Years

Fire Extiguisher 20 Years

Weigh Bridge 20 Years

Computer & Software 6 Years

Motor Vehicles 10 Years

(vi) Investments

Long term investments are stated at cost. The company provides diminution, other than temporary, in the value of long term investments.

(vii) Impairement of Assets

Impairement of Assets are assessed at Balance Sheet date if any indication of impairment exist, the same is assessed and provided for.

(viii) Inventories

Inventories are valued at cost or net reliasable value whichever is lower except dies, which is re-valued based on es- timated useful life, Materials and other supplies held for the use in the production of inventories are not written down below cost of Finished products in which they will be incorporated are expected to be sold at or above cost. Cost is cal- culated on weighted average basis. cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present condition and location. Excise Duty on finished goods lying inside factory/ customs duty on goods lying at warehouse is also provided at the year end.

(ix) Foreign Currencies

Transaction in foreign currency are accounted at exchange rates prevailing on the date of transaction. Foreign currency monetary as on Balance Sheet date are reconverted at the rate prevalling at the year end and the resultant net gains or losses are adjusted in the Profit and Loss Statement.

(x) Retirement Benefits

Year end liabilities in respect of retirement benefits towards Gratuity & Leave encashment to the employees of the com- pany has been provided as per acturial valuation.

(xi) Sales

Sales is recognised on the transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of sales returns (including related to earlier years). Discount & rebates.

(xii) Recognition of Income and Expenditure

All Income and expenditure are accounted on accrual basis except due to uncertainly in realisation, interest on over- dues bills from customers is accounted for on receipt basis.

(xiii) Deferred Taxation

In accordance with Accounting standard-22' Accounting for Taxes on Income' notified u/s 133 of the Companies Act 2013. the deferred tax for timing differences between the accounting income and taxable income for the year is ac- counted for using the tax rates and laws that have been enacted or substantively enacted as on balance sheet date. Deferred Tax Assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future and the same is reviewed at each Balance Sheet date.

(xiv) Others

Profit/Loss on sale of raw material, components and stores, not being material, is being adjusted in respective con- sumption account and are not shown separately.

(xv) Contingent Liabilities

These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts on respect of those contingencies, which are likely to materialize into liabilities after the year end till the finalisation of accounts and have material effect on the the position stated in the Balance Sheet.

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Mar 31, 2014

(i) General Information

Hindustan Everest Tools Limited (hereinafter referred to as ''the Company'' HETL)is a manufacturer of Hand Tools. The Company''s manufaturing facilities are located at village Jatheri P.O. Rai, Sonipat.

ii) Acconting Convention

The financial statements are prepared under the historical cost convention, on the accural basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards as notified by The Companies (Accounting Standered) Rules, 2006 issued by the Central Government and the relevant provisions of Companies Act, 1956. of India.

(iii) Use of Estimates

The Preparation of financial statement require estimates and assumptions to be made that effect the reported amount of Assets and Liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period which the results are known/ materialised.

(iv) Fixed Assets

i) Freehold Land is at revalued amount.

ii) Buildings, Plant and Machinery & Other Fixed Assets are stated at cost.

(v) Depreciation

Depreciation on Fixed Assets has been provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 (as amended)

(vi) Investments

Long term investments are stated at cost. The company provides diminution, Other than temporary, in the value of long term investments.

(vii) Impairement of Assets

Impairement of Assets are assessed at Balance Sheet date if any indication of impairment exist, the same is assessed and provide for.

(viii) Inventories

Inventories are valued at cost or net reliasable value whichever is lower except dies, which is re-valued based on estimated useful life, Materials and other supplies held for the use in the production of inventories are not written down below cost of Finished products in which they will be incorporated are expected to be sold at or above cost. Cost is calculated on weighted average basis.cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present condition and location. Excise Duty on finished goods lying inside factory/customs duty on goods lying at warehouse is also provided at the year end.

(ix) Foreign Currencies

Transaction in foreign currency are accounted at exchange rates prevailing on the date of transation. Foreign currency monetary as on Balance Sheet date are reconverted at the rate prevalling at the year end and the resultant net gains or losses are adjusted in the Profit and Loss Statement.

(x) Retirement Benefits

Year end liabilities in repect of retirement benefits towards Gratuity & Leave encashment to the employees of the company has been provided as per acturial valuation.

(xi) Sales

Sales is recognised on the transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of sales returns (including related to earlier years). Discount & rebates.

(xii) Recognition of Income and Expenditure

All Income and expenditure are accounted on acrual basis except due to uncertainity in realisation, interest on overdues bills from customers is accounted for on receipt basis.

(xiii) Deferred Taxation

In accordance with Accounting standard-22'' Accounting for Taxes on Income'' notified companies (Accounting Standard Rules 2006), the deferred tax for timing differences between the accounting income and taxable income for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as on balance sheet date. Defrred Tax Assets arising from temporary timing differences are recognised to the extent there is resonable certainty that the assets can be realised in future and the same is reviewed at each Balance Sheet date.

(xiv) Others

Proift/Loss on sale of raw material, components and stores, not being material, is being adjusted in respecive consumption account and are not shown seperately.

(xv) Contingent Liablities

These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts on respect of those contingencies, which are likely to materialize into liabilities after the year end till the finalisation of accounts and have material effect on the the position stated in the Balance Sheet.

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Mar 31, 2013

(i) General Information

Hindustan Everest Tools Limited (hereinafter referred to as ''the Company'' HETL)is a manufacturer and trading of Hand Tools. The Company''s manufaturing facilities are located at village Jatheri P.O. Rai, Sonipat.

(ii) Acconting Convention

The financial statements are prepared under the historical cost convention, on the acceual basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards as notified by The Companies (Accounting Standereds) Rules, 2006 issued by the Central Government and the relevant provisions of Companies Act, 1956.

(iii) Use of Estimates

The Preparation of financial statement require estimates and assumptions to be made that effect the reported amount of Assets and Liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known/ materialised.

(iv) Fixed Assets

i) Freehold Land is at revalued amount.

ii) Buildings, Plant and Machinery & Other Fixed Assets are stated at cost.

(v) Depreciation

Depreciation on Fixed Assets has been provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

(vi) Investments

Non Current investmentsare stated at cost. The company provides diminution, Other than temporary, in the value of Non Current investments.

(vii) Impairement of Assets

Impairement of Assets are assessed at Balance Sheet date if any indication of impairement exist, the same is assessed and provided for.

(viii) Inventories

Inventories are valued at cost or net reliasable value whichever is lower except dies, which is re-valued based on estimated useful life, Materials and other supplies held for the use in the production of inventories are not written down below cost ,if Finished products in which they will be incorporated are expected to be sold at or above cost. Cost is caculated on weighted average basis.cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present condition an location. Excise Duty on finished goods lying inside factory/customs duty on goods lying at warehouse is also provided at the ty on goods lying at warehouse is also provided at the year end.

(ix) Foreign Currencies

Transaction in foreign curriency are accounted at exchange rates prevalling on the date of transation. Foreign currency monetary assets and liabilities as on Balance Sheet date are reconverted at the rate prevalling at the year end and the resultant net gains or losses are adjusted in the Statement of Profit and Loss.

(x) Retirement Benefits

Year end liabilities in repect of retirement benefits towards Gratuity & Leave encashment to the employess of the company has been provided as per actuarial valuation.

(xi) Sales

Sales is recognised on the transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of sales returns (including related to earlier years). Discount & rebates.

(xii) Recognition of Income and Expenditure

All Income and expenditure are accounted on acrual basis except due to uncertainity in realisation, interest on overdues bills from customers is accounted for on receipt basis.

(xiii) Taxation

The deferred tax for timing differences between the accounting income and taxable income for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as on balance sheet date. Defrred Ta x Assets arising from temporary timing differences are recognised to the extent there is resonable certainty that the assets can be realised in future and the same is reviewed at each Balance Sheet date.Current Tax is provided as per amount expected to be paid to the tax authorities in accordance with with Income Tax Act,1961.

(xiv) Others

Proift/Loss on sale raw material, components and stores, not being material, is being adjusted in respecive consumption account and are not shown seperately.

(xv) Contingent Liablities

These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts on respect of those contingencies, which are likely to materialize into liabilities after the year end till the finalisation of accounts and have material effect on the the position stated in the Balance Sheet.

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Mar 31, 2010

A. ACCOUNTING CONVENTION

The financial statements are prepared under the historical cost convention, on an accrual basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards as notified by The Companies (Accounting Standards) Rules, 2006 issued by the Central Government and the relevant provisions of Companies Act, 1956 of India.

B. USE OF ESTIMATES.

The preparation of financial statements require estimates and assumptions to be made that effect the reported amount of Assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are Known/materialzed.

C. FIXED ASSETS:

i) Freehold Land is at revalued amount.

ii) Buildings, Plant & Machinery & Other Fixed Assets are stated at cost.

D. DEPRECIATION:

Depreciation on Fixed Assets has been provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 (as amended).

E. INVESTMENTS: Long term Investments are stated at cost. The company provides diminution, other than temporary, in the value of long term investments.

F. IMPAIRMENT OF ASSETS

Impairment of Assets are assessed at Balance Sheet date if any indication of impairment exist, the same is assessed and provided for.

G. VALUATION OF INVENTORIES: Inventories are valued at cost or net realisable value whichever is lower except dies, which is re-valued based on estimated remaining useful life, Materials and other Supplies held for the use in the production of inventories are not written down below cost of the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is calculated on weighted average basis. Cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their present condition and location. Excise duty on finished goods lying inside factory/ customs duty on goods lying at warehouse is also provided at the year end.

H. FOREIGN CURRENCIES: Transaction in foreign currency are accounted at exchange rates prevailing on the date of transaction. Foreign currency monetary assets as on the Balance Sheet dates are re-converted at rates prevailing at the year end and the resultant net gains or losses are adjusted in the profit & loss Accounts.

I. RETIREMENT BENEFITS : Year end Liabilities in respect of retirement benefits towards Gratuity & Leave encashment to the employees of the company has been provided as per actuarial valuation.

J. SALES: Sales is recognised on the transfer of significant risk and rewards of the ownership of the goods to the buyer and stated at net of sales returns (including relating to earlier years), discount and rebates.

K. RESEARCH & DEVELOPMENT: Expenditure incurred during research phase are charged to the revenue when no intangible assets arise from such research. Assets produced for research & Development activities are generally capitalised.

L. RECONGNITION OF INCOME AND EXPENDITURE: All income and expenditure are accounted on accrual basis except due to uncertainty in realization, interest on overdue bills from customers is accounted for on receipt basis.

M. DEFERRED TAXATION : In accordance with Accounting Standard-22 Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and tax income for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date. Deferred Tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future and the same is reviewed at each Balance Sheet date.

N. OTHERS: Profit/Loss on sale of raw material, components and stores, not being material, is being adjusted in respective consumption account and are not shown separately.

O. CONTINGENT LIABILITIES: These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts in respect of those contingencies, which are likely to materialize into liabilities after the year end till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.