Notes to Accounts of IIFL Capital Services Ltd.

Mar 31, 2025

l) Provisions and Contingencies:

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is
probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount
of such obligation can be reliably estimated.The amount recognised as a provision is the best estimate of the consideration
require to settle the present obligation at the end of reporting period,taking into account the risk & uncentainties surrounding
the obligation.

If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognized as a finance cost.

The Company in the normal course of its business, comes across client claims/ regulatory penalties/ inquiries, etc. and
the same are duly clarified/ address from time to time. The penalties/ action if any are being considered for disclosure as
contingent liability only after finality of the representation of appeals before the lower authorities.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably
will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured
reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources
embodying economic benefits is remote(based on the judgement of the management considering factors including experience
with similar matters, past history, precedents, relevant and other evidence and facts specified to the matter), no provision or
disclosure is made.

Contingent assets are disclosed only where an inflow of economic benefits is probable.

m) Statement of Cash Flows :

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow
from operating activities is reported using indirect method adjusting the net profit for the effects of:

- changes during the period in operating receivables and payables transactions of a noncash nature;

- non-cash items such as depreciation, provisions, deferred taxes and unrealised foreign currency gains and losses.

- all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not
available for general use as on the date of balance sheet.

n) Cash and Bank Balances:

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

o) Revenue Recognition

Revenue from contracts with customers

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of
variable consideration on account of various discounts and schemes offered by the Company as part of the contract.

The Company recognizes revenue from contracts with customers based on a five-step model as set out in Ind AS 115:

Step 1: Identify contract(s) with a customers. A contract is defined as an agreement between two or more parties that creates
enforceable rights and obligations and sets out the criteria for every contract that must be met.

Step 2: Identify performance obligations in the contract: A performance obligation is a promise in a contract with a customer
to transfer a good or service to the customer.

Step 3: Determine the transaction price: The transaction price is the amount of consideration to which the company expects
to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf
of third parties.

Step 4: Allocate the contract price to the performance obligations in the contract: For contract that has more than one
performance obligation, the Company allocates the transaction price to each performance obligation in an amount
that depicts the amount of consideration to which the Company expects to be entitled in exchange for satisfying each
performance obligation.

Step 5: Recognise revenue when (or as) the Company satisfies a performance obligation.

The Company assesses its revenue arrangement against specific criteria to determine if it is acting as principal or agent. The
Company has generally concluded that it is acting as a principal in all of its revenue arrangements.

Income from services rendered as a broker is recognised upon rendering of the services on a trade date basis, in accordance
with the terms of contract. Fees for subscription based services are received periodically but are recognised as earned on
a pro-rata basis over the term of the contract. Commissions from distribution of financial products are recognised upon
allotment of the securities to the applicant. Commission and fees recognized as aforesaid are exclusive of goods and service
tax, securities transaction tax, stamp duties and other levies by SEBI and stock exchanges.

The Company recognised revenue from various activities as follows:

i. Interest Income

Interest income is recognised using effective interest rate by considering all the contractual term of the financial
instruments in estimating the cash flow.

ii. Fees & Commission

Fees and commission income is recognised based on five step model set out in Ind AS 115.

- Brokerage income earned on secondary market operations is accounted on trade date basis.

- Investment banking & Financial Product Distribution Income is accounted on accrual basis.

iii. Other operational revenue:

Other operational revenue represents income earned from the activities incidental to the business and is recognised
when the right to receive the income is established as per the terms of the contract.

p) Employee Benefits

Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee
benefits and they are recognized in the period in which the employee renders the related service. 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 obligation can
be estimated reliably. The Company recognizes the undiscounted amount of short term employee benefits expected to be paid
in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.

Post-Employment Benefits:

I. Defined contribution plans:

Defined contribution plans are post-employment benefit plans under which the Company pays fixed contributions into
state managed retirement benefit schemes and will have no legal or constructive obligation to pay further contributions,
if any, if the state managed funds do not hold sufficient assets to pay all employee benefits relating to employee services in
the current and preceding financial years. The Company contributions to defined contribution plans are recognised in the
Statement of Profit and Loss in the financial year to which they relate. The Company and its Indian subsidiaries operate
defined contribution plans pertaining to Employee State Insurance Scheme and Government administered Pension Fund
Scheme for all applicable employees and the Company operates a Superannuation scheme for eligible employees.

Recognition and measurement of defined contribution plans: The Company recognizes contribution payable to a defined
contribution plan as an expense in the Statement of Profit and Loss when the employees render services to the Company
during the reporting period. If the contributions payable for services received from employees before the reporting date
exceeds the contributions already paid, the deficit payable is recognized as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution due for services received before the reporting
date, the excess is recognized as an asset to the extent that the prepayment will lead to, for example, a reduction in future
payments or a cash refund.

II. Defined benefit plans:

i) Gratuity scheme: The Company, operates a gratuity scheme for employees. The contribution is paid to a separate
fund , towards meeting the Gratuity obligations.

Recognition and measurement of defined benefit plans:

The cost of providing defined benefits is determined using the Projected Unit Credit method with actuarial valuations
being carried out at each reporting date. The defined benefit obligations recognized in the Balance Sheet represent
the present value of the defined benefit obligations as reduced by the fair value of plan assets, if applicable. Any
defined benefit asset (negative defined benefit obligations resulting from this calculation) is recognized representing
the present value of available refunds and reductions in future contributions to the plan.

All expenses represented by current service cost, past service cost if any and net interest on the defined benefit
liability (asset) are recognized in the Statement of Profit and Loss. Re-measurements of the net defined benefit
liability (asset) comprising actuarial gains and losses and the return on the plan assets (excluding amounts included
in net interest on the net defined benefit liability/asset), are recognized in Other Comprehensive Income. Such reÂ¬
measurements are not reclassified to the Statement of Profit and Loss in the subsequent periods.

Other Long Term Employee Benefits: Entitlements to annual leave and sick leave are recognized when they accrue to
employees. Sick leave can only be availed while annual leave can either be availed or encashed subject to a restriction
on the maximum number of accumulation of leave. The Company determines the liability for such accumulated leaves
using the Projected Accrued Benefit method with actuarial valuations being carried out at each Balance Sheet date.

Other Employee Benefits

Compensated absences which accrue to employees and which can be carried to future periods but are expected to be
availed in twelve months immediately following the year in which the employee has rendered service are reported as
expenses during the year in which the employees perform the services that the benefit covers and the liabilities are
reported at the undiscounted amount of the benefits.

q) Lease accounting :

The Company assesses whether a contract contains a lease, at the inception of the contract. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To
assess whether a contract conveys the right to control the use of an identified asset, the Company considers whether (i) the
contract involves the use of identified asset; (ii) the Company has substantially all of the economic benefits from the use of the
asset through the period of lease and (iii) the Company has right to direct the use of the asset.

As a Lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is
initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
Certain lease arrangements include the option to extend or terminate the lease before the end of the lease term. The right-of-
use assets and lease liabilities include these options when it is reasonably certain that the option will be exercised.â

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of
the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant
and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain
re-measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, Companyâs incremental
borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprises of fixed payments, including in-substance fixed
payments, amounts expected to be payable under a residual value guarantee and the exercise price under a purchase option
that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably
certain to exercise an extension option

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change
in future lease payments arising from a change in an index or rate, if there is a change in the Companyâs estimate of the
amount expected to be payable under a residual value guarantee, or if Company changes its assessment of whether it will
exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-
use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Lease liability and the right of use asset have been separately presented in the balance sheet.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-use assets and lease liabilities for short term leases that have a lease term
of less than or equal to 12 months with no purchase option and assets with low value leases. The Company recognises the
lease payments associated with these leases as an expense in statement of profit and loss over the lease term.The related cash
flows are classified as operating activities.

r) Goods and Services tax input credit

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

s) Borrowing Cost:

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings
and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the
interest cost. Borrowing costs, if any, 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 capitalized, if any. All other borrowing
costs are expensed in the period in which they occur.

t) Earning Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings
per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

u) Segment Reporting :

The Companyâs business is to provide capital market services in primary & secondary market. All other activities of the
Company are ancillary to the main business. As such, there are no reportable segments that need to be reported separately as
defined in Ind AS 108, Operating Segments.

2.2 KEY ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of the Companyâs financial statements requires the management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods.

Critical accounting estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year,
are described below:

a. Income taxes

The Company tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose
of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered
for uncertain tax positions. Further Deferred tax assets and liabilities are recognized for the future tax consequences of
temporary differences between the carrying values of assets and liabilities and their respective tax bases.

b. Determination of the estimated useful lives of tangible and intangible assets

The charge in respect of periodic depreciation is derived after determining an estimate of an assetâs expected useful life and
the expected residual value at the end of its life. The useful lives and residual values of Companyâs assets are determined by
the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are
based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such
as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in
market demand of the product or service output of the asset.

c. Defined Benefit Obligation

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions
include discount rate, trends in salary escalation, actuarial rates and life expectancy. The discount rate is determined by
reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying
bonds corresponding to the probable maturity of the post-employment benefit obligations. Due to complexities involved in
the valuation and its long term nature, defined benefit obligation is sensitive to changes in these assumptions. Further details
are disclosed in note no 26.

d. Fair value measurement of Financial Instruments

When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be measured based on
quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow
model, which involve various judgements and assumptions.

e. Impairment of financial assets

The provision for expected credit loss involves estimating the probability of default and loss given default based on the
Company own experience & forward looking estimation.

f. Provision for litigations:

In estimating the final outcome of litigation, the Company applies judgment in considering factors including experience with
similar matters, past history, precedents, relevant and other evidence and facts specified to the matter. Application of such
judgment determines whether the Company requires an accrual or disclosure in the financial statements.

g. Fair valuation of employee share options

The fair valuation of the employee share options is based on the Black-Scholes model used for valuation of options. Key
assumptions made with respect to expected volatility includes share price, expected dividends and discount rate, under this
option pricing model. Further details are disclosed in note no. 33.

h. Determining whether an arrangement contains a lease

In determining whether an arrangement is, or contains a lease is based on the substance of the arrangement at the inception
of the lease. The arrangement is, or contains, a lease date if fulfillment of the arrangement is dependent on the use of a
specific asset or assets and the arrangement conveys a right to use the asset, even if that right is not explicitly specified in
the arrangement.

i. Discount rate

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio
of leases with similar characteristics.

Interest risk A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by
an increase in the return on the plan debt investments.

Longevity risk :- The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan
participants will increase the planâs liability.

Salary risk :- The present value of the defined plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the planâs liability.

Notes :

1) Amount paid under protest with respect to income tax demand H44.80 million (As at March 31,2024 H54.08 million)

2) Amount paid under protest with respect to service tax & GST demand H9.48 million (As at March 31,2024 H11.81 million)

3) Bank Guarantees given as collateral to various stock exchange against fixed deposits of H6,336.60 million (Previous year
H6,311.60 million).

4) SEBI vide its order dated June 19, 2023 prohibited the company from onboarding new clients for a period of two years in
respect of its business as a stock broker consequent to certain findings of SEBI inspections with respect to segregation of
client funds and own funds for different periods from April 2011 to 2017. Securities Appellate Tribunal (SAT). vide its order
dated December 07,2023 has set aside the aforesaid order. SEBI has preferred appeal before the Honâble Supreme Court and
the same is pending.

5) The Income-Tax authorities (âthe departmentâ) had conducted search activity during the month of January 2025 at the
registered office and other premises of the Company. The Company extended full cooperation to the Income-Tax officials during
the search and provided required details, clarifications and documents. The Company has not received any communication
from the department regarding the outcome of the search. Hence, the consequent impact on the financial statements, if any,
is not ascertainable.

NOTE 32 : CORPORATE SOCIAL RESPONSIBILITY

During the period ended March 31, 2025 the Company has spent H50.72 million (Previous year H54.22 million) out of the total

amount of H83.54 million (Previous year H54.08 million) required to be spent as per section 135 of the Companies Act 2013 in

respect of Corporate Social Responsibility [CSR].

a) Promoting education among children and women, especially of girls from marginalised and vulnerable communities along
with promoting digital learning initiatives and strengthening government schools

b) Promoting employment enhancing vocational skills, especially among youths, through livelihood enhancement projects in
aspirational districts and encouraging entrepreneurship

c) Promoting gender equality, empowering women and taking measures to reduce inequalities faced by socially and economically
backward groups through Entrepreneurship development program

d) Promoting Livelihood and Environment sustainability through skilling of rag-pickers to segregate waste and use recycled
plastic for producing useful products

e) Supporting the senior workforce of a tiffin delivery service to sustain their livelihood while maintain their health by donating
E-bikes

f) Promoting green initiatives by installation of Solar Lights in rural village to promote functioning of market during evening
hours, thus supporting livelihood and also provision safety from wild animals.

Stock Price: The Market price on NSE on the date of grant has been considered for the purpose of Option valuation.

Volatility: The daily volatility of the stock prices on NSE, over a period prior to the date of grant, corresponding with the
expected life of the Options has been considered to calculate the fair value.

Risk-free rate of return: The risk-free rate being considered for the calculation is the India Government Bond Generic
Bid Yield with a maturity about equal to the expected life of the options.

Exercise Price: Price of each specific grant has been considered.

Time to Maturity: Time to Maturity / Expected Life of Options is the period for which the Company expects the Options
to be live. The minimum life of a stock option is the minimum period before which the Options cannot be exercised and
the maximum life is the period after which the Options cannot be exercised.

Expected dividend yield: Expected dividend yield has been calculated as an average of dividend yields for the earlier
financial years preceding the date of the grant. The dividend yield for the year is derived by dividing the dividend per
share by the average price per share of the respective period.

NOTE 35 : FINANCIAL RISK MANAGEMENT
Financial risk management objectives and policies

The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Companyâs
risk management policy is approved by the board committee.

The company has adopted the âthree lines-of-defenceâ (3 LOD) model wherein management control at the business entity level
is the first line of defence in risk management. Various risk control and compliance oversight functions, established by the
management are the second line of defence. Finally, the third line comprises the internal audit/ assurance function. All three lines
play a distinct role within Company wider governance framework.

financial risk governance framework for the Company. Financial risks are identified, measured and managed in accordance with
the Company policies and risk objectives. The Board of Directors reviews and agrees policies for managing key risks, which are
summarised below.

35 A.1. CREDIT RISK

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
Credit risk arises primarily from financial assets such as trade receivables, investments, derivative financial instruments, other
balances with banks, loans and other receivables and other financial asset.

Credit quality analysis

The following tables sets out information about the credit quality of financial assets measured at amortised cost, FVOCI debt
investments. Unless specifically indicated, for financial assets, the amounts in the table represent gross carrying amounts.

35 A.2. COLLATERAL HELD

The Company holds collateral of securities and other credit enhancements against its credit exposures.

35 B. LIQUIDITY RISK

Liquidity risk arises from the Companyâs inability to meet its cash flow commitments on time. Prudent liquidity risk management
implies maintaining sufficient stock of cash and marketable securities and maintaining availability of standby funding through
an adequate line up of committed credit facilities. It uses a range of products mix to ensure efficient funding from across well-
diversified markets and investor pools. Treasury monitors rolling forecasts of the companyâs cash flow position and ensures that
the company is able to meet its financial obligation at all times including contingencies.

The table below analyse the company financial liability into relevant maturity companying based on their contractual maturity.
The amount disclosed in the table are the contractual undiscounted cash flows. Balance due within 1 year equals their carrying
balances as the impact of discounting is not significant.

35 C. MARKET RISK

Market risk is the risk of any loss in future earnings, in realisable fair values or in futures cash flows that may result from a change
in the price of a financial instrument.

The Company manages market risk through a treasury department, which evaluate and exercises control over the entire process
of market risk management. The treasury department recommends risk management objectives and policies, which are approved
by senior management and the Audit/ Investment committee. The activities of this department include management of cash
resources, borrowing strategies, and ensuring compliance with market risk limit and policies.

35 C.1. INTEREST RATE RISK

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. Interest rate change does not affects significantly short term borrowing and current investment therefore
the Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs Non current investment.

Company business is volatile and hence borrowings are done bases on requirement, generally borrowings are done for short term
and are on market based interest rate.

Sensitivity :

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated
financial instruments.

The effect of upward movement of 5% in the exchange rate increase in the profit/reserve by H0.13 million (Previous year H5.44
million) and downward movement of 5% will reduce profit/reserve by H0.13 million (Previous year H5.44 million) for FY 2024-25.

35 C.4. EXPOSURE TO PRICE RISK

The Company exposure to price risk arising from investment held by the company and is classified in the balance sheet through
fair value through profit & loss account. Company has majorly invested in Equity, Mutual Fund and Alternate Investment Funds
under various scheme and its exposure.

The Company measures fair values using the following fair value hierarchy, which reflects the significance of the inputs used in
making the measurements.

- Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments.

- Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly
(i.e. derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar
instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other
valuation techniques in which all significant inputs are directly or indirectly observable from market data.

- Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs
that are not observable and the unobservable inputs have a significant effect on the instrumentâs valuation. This category
includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable
adjustments or assumptions are required to reflect differences between the instruments.

Subjective estimate - The valuation of level 3 financial instruments held at fair value through profit or loss or through other
comprehensive income may be misstated due to the application of valuation techniques which often involve the exercise of
judgement and the use of assumptions and estimates. A subjective estimate exists for instruments where the valuation method
uses significant unobservable inputs which is principally the case for level 3 financial instruments. The estimate measurement
of fair value is more judgemental in respect of Level 3 assets, these are valued based on models that use a significant degree of
non-market-based unobservable inputs.

The following table sets out the fair values of financial instruments not measured at fair value and analyses them by the level in
the fair value hierarchy into which each fair value measurement is categorised.

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not
recorded and measured at fair value in the Companyâs financial statements. These fair values were calculated for disclosure
purposes only.

Short-term financial assets and liabilities

For financial assets and financial liabilities that have a short-term nature, the carrying amounts, which are net of impairment,
are a reasonable approximation of their fair value. Such instruments include: cash and bank balances, trade receivables, other
receivables, balances other than cash and cash equivalents and trade payables.

NOTE 39 : DISCLOSURE OF FINANCIAL RATIOS

Additional regulatory information required under (WB)(xvi) of Division III of Schedule III amendment, disclosure of rations, is not

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

Act, 1934.

NOTE 40 : OTHER DISCLOSURE UNDER SCHEDULE - III

1) No funds have been advanced or loaned or invested by the company to or in any other persons or entities, including foreign
entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

2) No funds have been received by the company from any persons or entities, including foreign entities (âFunding Partiesâ), with
the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend
or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate
Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

3) The Company does not have any long-term contracts including derivative contracts for which there are any material
forseeable losses.

4) There were no amounts which were required to be transferred to the Investor Education and Protection by the Company.

5) No proceedings have been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988).

6) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.

7) During the year, the company has not entered into any transactions with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956.

8) There are no transactions which have not been recorded in the books of accounts and which have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

9) The quarterly returns / statements of current assets filed by the Companywith banks from whom borrowings have been
availed on the the basis of security of current assets,are in agreement with the books of account.

10) There are no charges or satisfaction yet to be registered with the registrar of companies beyond the statutory period.

11) The company does not have layers beyond the number prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.

12) The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

For V Sankar Aiyar & Co. For and on behalf of Board of Directors

Chartered Accountants

Firmâs Registration No.109208W

S. Nagabushanam R. Venkataraman Narendra Jain

Partner Managing Director Whole Time Director

Membership No.: 107022 (DIN: 00011919) (DIN: 01984467)

Place: Mumbai Ronak Gandhi Meghal Shah

Date : April 28, 2025 Chief Financial Officer Company Secretary

Mar 31, 2024

(a) Security :

Working Capital Demand Loan (WCDL) and revolving credit facilities are secured by way of first pari-passu charge on receivable & Bank overdraft are secured against fixed deposits pledge with the banks. Refer note 34 for details of asset pledged.

(b) Tenor of repayment :

WCDL and revolving credit facilities varies from 7 days to 365 days and bank overdraft upto validity of facility.

(c) Interest Rate :

Interest rate is ranging from 8.30% to 10.25%.

c. Terms/Rights attached to Equity Shares

The company has only one class of shares referred to as equity shares having a par value of ? 2/- each. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees.

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

e. Other details of equity shares for a period of five years immediately preceding March 31,2024

(i) In FY 2019-20, fresh 319,234,462 equity shares of ? 2/- each allotted through composite Scheme of Arrangement as approved by NCLT, Mumbai.

(ii) In FY 2020-21, 17,000,394 equity shares bought back for an aggregate amount of ? 866.82 million. Consequently the paid-up equity share capital had reduced by ? 34.00 million.

f. Shares reserved for issue under options and contracts/commitments for sale of shares/disinvestments, including the terms and amount, Refer Note 33 for details of shares reserved for issue under Employees Stock Option Plan of the Company.

Footnotes: Nature and purpose reserves

i) Capital reserves : Capital reserve was created due to slump sale transaction and as per the Composite Scheme of Arrangement.

ii) Capital Redemption Reserve: Nominal value of the shares cancelled through buyback is transferred to Capital Redemption Reserve.

iii) Securities premium : Securities premium represents the surplus of proceeds received over the face value of shares, at the time of issue of shares.

iv) General Reserve: This reserve can be distributed/utilised by the Company, in accordance with the Companies Act, 2013.

v) Retained earnings : The balance in retained earnings primarily represents the net profit after payment of dividend and transfer to reserves.

vi) Share options outstanding account : This reserve is created on account of ESOP granted by the Company.

(a) The estimate of future salary increase, considered in the actuarial valuation, takes into account inflation, seniority, promotion, increments and other relevant factors.

(b) The Expected Rate of Return on Plan Assets is determined considering several applicable factors, mainly the composition of Plan Assets held assessed risks, historical results of return on Plan Assets and the Companyâs policy for Plan Assets Management.

(viii) Sensitivity Analysis

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade ,expected salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at end of the reporting year , while holding all other assumptions constant. The result of Sensitivity analysis is given below:

These plans typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and salary risk.

Investment risk The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest risk :- A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.

Longevity risk :- The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the planâs liability.

Salary risk :- The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the planâs liability.

1) Amount paid under protest with respect to income tax demand ? 54.08 million (As at March 31,2023 ? 52.54 million)

2) Amount paid under protest with respect to service tax & GST demand '' 11.81 million (As at March 31,2023 '' 11.69 million).

3) Bank Guarantees given as collateral to various stock exchanges against fixed deposits of '' 6,311.60 million (Previous year '' 8,200.00 million).

4) SEBI vide its order dated June 19, 2023 prohibited the company from onboarding new clients for a period of two years in respect of its business as a stock broker consequent to certain findings of SEBI inspections with respect to segregation of client funds and own funds for different periods from April 2011 to 2017. Securities Appellate Tribunal (SAT). vide its order dated December 07, 2023 has set aside the aforesaid order. SEBI has preferred appeal before the Honâble Supreme Court and the same is pending.

NOTE 32 : CORPORATE SOCIAL RESPONSIBILITY

During the period ended March 31,2024 the Company has spent ? 54.22 million (Previous year ? 51.92 million including earlier

year shortfall) out of the total amount of ? 54.08 million (Previous year ? 42.59 million) required to be spent as per section 135 of

the Companies Act 2013 in respect of Corporate Social Responsibility [CSR].

The Company undertakes the following activities in the nature of Corporate social responsibility (CSR):

a) Promoting education among children and women, especially of girls from marginalised and vulnerable communities along with promoting digital learning initiatives and strengthening government schools

b) Promoting employment enhancing vocational skills, especially among youths, through livelihood enhancement projects in aspirational districts and encouraging entrepreneurship

c) Promoting healthcare, including preventive health and sanitation,

d) Promoting gender equality, empowering women and taking measures to reduce inequalities faced by socially and economically backward groups

e) Maintenance of green spaces to promote physical and mental wellbeing of the community

For a detailed report, please refer to annexure -1 âCorporate Social Responsibility (CSR)â in the Director report.

Fair Value Methodology:

The fair value of the shares are measured using Black scholes formula. Measurement inputs include share price on measurement date, exercise date of the instrument, exercise price, expected life, risk free interest rate, dividend yield, expected volatility .

Stock Price: The average of weekly high & low of volume weighted average price (VWAP) of shares during the two week preceeding the date of grant.

Volatility: The daily volatility of the stock prices on NSE, over a period prior to the date of grant, corresponding with the expected life of the Options has been considered to calculate the fair value.

Risk-free rate of return: The risk-free rate being considered for the calculation is the India Government Bond Generic Bid Yield with a maturity about equal to the expected life of the options.

Exercise Price: Price of each specific grant has been considered.

Time to Maturity: Time to Maturity / Expected Life of Options is the period for which the Company expects the Options to be live. The minimum life of a stock option is the minimum period before which the Options cannot be exercised and the maximum life is the period after which the Options cannot be exercised.

Expected dividend yield: Expected dividend yield has been calculated as an average of dividend yields for the three financial years preceding the date of the grant. The dividend yield for the year is derived by dividing the dividend per share by the average price per share of the respective period.

NOTE 35 : FINANCIAL RISK MANAGEMENT

Financial risk management objectives and policies

The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Companyâs risk management policy is approved by the board committee.

The company has adopted the âthree lines-of-defenceâ (3 LOD) model wherein management control at the business entity level is the first line of defence in risk management. Various risk control and compliance oversight functions, established by the management are the second line of defence. Finally, the third line comprises the internal audit/ assurance function. All three lines play a distinct role within Company wider governance framework.

The Company is exposed to market risk, credit risk, liquidity risk etc. The Company senior management oversees the management of these risks. The Company senior management is overseen by the audit committee with respect to risks and facilitates appropriate financial risk governance framework for the Company. Financial risks are identified, measured and managed in accordance with the Company policies and risk objectives. The Board of Directors reviews and agrees policies for managing key risks, which are summarised below.

35 A.1. CREDIT RISK

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investments, derivative financial instruments, other balances with banks, loans and other receivables and other financial asset.

Credit quality analysis

The following tables sets out information about the credit quality of financial assets measured at amortised cost, FVOCI debt investments. Unless specifically indicated, for financial assets, the amounts in the table represent gross carrying amounts.

35 A.2. COLLATERAL HELD

The Company holds collateral of securities and other credit enhancements against its credit exposures.

35 A.3. MEASUREMENT OF EXPECTED CREDIT LOSS 35 B. LIQUIDITY RISK

Liquidity risk arises from the Companyâs inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities and maintaining availability of standby funding through an adequate line up of committed credit facilities. It uses a range of products mix to ensure efficient funding from across well-diversified markets and investor pools. Treasury monitors rolling forecasts of the companyâs cash flow position and ensures that the company is able to meet its financial obligation at all times including contingencies.

The table below analyse the company financial liability into relevant maturity companying based on their contractual maturity. The amount disclosed in the table are the contractual undiscounted cash flows. Balance due within 1 year equals their carrying balances as the impact of discounting is not significant.

The Company manages market risk through a treasury department, which evaluate and exercises control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by senior management and the Audit/ Investment committee. The activities of this department include management of cash resources, borrowing strategies, and ensuring compliance with market risk limit and policies.

35 C.1. INTEREST RATE RISK

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Interest rate change does not affects significantly short term borrowing and current investment therefore the Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs Non current investment.

Company business is volatile and hence borrowings are done bases on requirement, generally borrowings are done for short term and are on market based interest rate.

Sensitivity :

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments.

The effect of upward movement of 5% in the exchange rate reduce the profit/reserve by ? 5.44 million (increase in profit/reserve ? 0.42 million for previous year) and downward movement of 5% will increase profit/reserve by ? 5.44 million (reduce in profit/ reserve ? 0.42 million for previous year) for FY 2023-24.

35 C.3. EXPOSURE TO PRICE RISK

The Company exposure to price risk arising from investment held by the company and is classified in the balance sheet through fair value through profit & loss account. Company has majorly invested in Debt Fund and Alternate Investment Funds under various scheme and its exposure.

Sensitivity

The effect of upward movement of 5% in the price affects the projected net income by ? 60.45 million (? 29.87 million for previous year)and for forward downward movement of 5% the projected net loss will be ? 60.45 million (? 29.87 million for previous year) for FY 2023-24.

35 D. CAPITAL MANAGEMENT

The companyâs objective when managing capital are to

- Safeguard their ability to continue as going concern, so that they can continue to provide returns for the share holders and benefits for other stake holders, and

- Maintain an optimal capital structure to reduce the cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using debt equity ratio.

35 E. FAIR VALUES OF FINANCIAL INSTRUMENTS

The Company measures fair values using the following fair value hierarchy, which reflects the significance of the inputs used in making the measurements.

- Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments.

- Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data.

- Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs that are not observable and the unobservable inputs have a significant effect on the instrumentâs valuation. This category includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

Subjective estimate - The valuation of level 3 financial instruments held at fair value through profit or loss or through other comprehensive income may be misstated due to the application of valuation techniques which often involve the exercise of judgement and the use of assumptions and estimates. A subjective estimate exists for instruments where the valuation method uses significant unobservable inputs which is principally the case for level 3 financial instruments. The estimate measurement of fair value is more judgemental in respect of Level 3 assets, these are valued based on models that use a significant degree of non-market-based unobservable inputs.

Observable prices or model inputs are usually available in the market for listed debt and equity securities. The availability of observable market prices and model inputs reduces the need for management judgement and estimation and also reduces the uncertainty associated with determining fair values.

The following table analyses financial instruments measured at fair value at the reporting date, by the level in the fair value hierarchy into which the fair value measurement is categorised.

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the Companyâs financial statements. These fair values were calculated for disclosure purposes only.

Short-term financial assets and liabilities

For financial assets and financial liabilities that have a short-term nature, the carrying amounts, which are net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash and bank balances, trade receivables, other receivables, balances other than cash and cash equivalents and trade payables.

35 E. 5. MEASUREMENT OF FAIR VALUE

The fair values of Investments in Equity share and Bonds is based on last traded price and Alternate Investment Fund, Mutual Funds is based on the net asset value (NAV) as stated by the issuers of these alternate asset funds in the published statements as at the Balance Sheet date. NAV represents the price at which the issuer will issue further units of alternate asset fund and the price at which issuers will redeem such units from the investors.

i) Amount is less than ? 0.01 Million, hence shown ? 0.00 Million, wherever applicable.

ii) As the future liability for retirement and other employee benefits is provided on an actuarial basis for the Company as a whole, the amount pertaining to directors and key managerial personnel is not included above.

iii) 360 ONE Wam Limited (Formerly known as IIFL Wealth Management Limited) has provided a letter of undertaking-cum-indemnity to the Company towards a civil suit pending against IIFL Wealth (UK)Ltd., a wholly owned subsidiary of the Company, inter-alia, to defend the said suit and indemnify the Company and its directors against claims, if any, arising from the same.

NOTE 37 : DISCLOSURE AS PER IND AS -108 âSEGMENT REPORTINGâ

The Companyâs business is to provide capital market services in primary & secondary market. All other activities of the Company are ancillary to the main business. As such, there are no reportable segments that need to be reported separately as defined in Ind AS 108, Operating Segments.

NOTE 39 : DISCLOSURE OF FINANCIAL RATIOS

Additional regulatory information required under (WB)(xvi) of Division III of Schedule III amendment, disclosure of rations, is not

applicable to the Company as it is in broking business and not an NBFC registered under Section 45-IA of Reserve Bank of

India Act, 1934.

NOTE 40 : OTHER DISCLOSURE UNDER SCHEDULE - III

1) No funds have been advanced or loaned or invested by the company to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

2) No funds have been received by the company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

3) The Company does not have any long-term contracts including derivative contracts for which there are any material forseeable losses.

4) There were no amounts which were required to be transferred to the Investor Education and Protection by the Company.

5) No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

6) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.

7) During the year, the company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

8) There are no transactions which have not been recorded in the books of accounts and which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

9) The quarterly returns / statements of current assets filed by the Company,with banks from whom borrowings have been availed on the the basis of security of current assets,are in agreement with the books of account.

10) There are no charges or satisfaction yet to be registered with the registrar of companies beyond the statutory period.

11) The company does not have layers beyond the number prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

12) The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

Mar 31, 2023

(a) Security

Working Capital Demand Loan (WCDL) & Bank overdraft are secured by way of first pari-passu charge on receivable and fixed deposits pledge with the banks. Refer note 33 for details of asset pledged.

(b) Tenor of repayment:

WCDL varies from 7 days to 365 days and bank overdraft upto validity of facility.

(c) Interest Rate:

Interest rate is ranging from 5.45% to 9.60%.

c. Terms/Rights attached to Equity Shares

The company has only one class of shares referred to as equity shares having a par value of '' 21- each. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees.

e. Other details of equity shares for a period of five years immediately preceding March 31, 2023

(i) In FY 2019-20, fresh 319,234,462 equity shares of '' 21- each allotted through composite Scheme of Arrangement as approved by NCLT, Mumbai.

(ii) In FY 2020-21, 17,000,394 equity shares bought back for an aggregate amount of '' 866.82 million. Consequently the paid-up equity share capital had reduced by '' 34.00 million.

f. Shares reserved for issue under options and contractslcommitments for sale of sharesldisinvestments, including the terms and amount, Refer Note 32 for details of shares reserved for issue under Employees Stock Option Plan of the Company.

Footnotes: Nature and purpose reserves

i) Capital reserves : Capital reserve was created due to slump sale transaction and as per the Composite Scheme of Arrangement.

ii) Securities premium : Securities premium represents the surplus of proceeds received over the face value of shares, at

the time of issue of shares. The issue expenses of securities which qualify as equity instruments are written off against

securities premium account.

iii) Retained earnings : The balance in retained earnings primarily represents the surplus after payment of dividend (including tax on dividend) and transfer to reserves.

iv) Share options outstanding account : The share options outstanding account is used to record the fair value of equity-settled share based payment transactions with employees. The amounts recorded in share options outstanding account are transferred to securities premium upon exercise of stock options and transferred to general reserve on account of stock options not exercised by employees.

v) General Reserve: This reserve can be distributed/utilised by the Company, in accordance with the Companies Act, 2013.

vi) Capital Redemption Reserve: Nominal value of the shares cancelled through buyback is transferred to Capital

Redemption Reserve.

(a) The estimate of future salary increase, considered in the actuarial valuation, takes into account inflation, seniority, promotion, increments and other relevant factors.

(viii) Sensitivity Analysis

These plans typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and salary risk.

Interest risk :- A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.

Longevity risk :- The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk :- The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

Notes :

1) Amount paid under protest with respect to income tax demand '' 52.54 million (As at March 31,2022''29.34 million)

2) Amount paid under protest with respect to service tax demand '' 11.69 million (As at March 31,2022''11.69 million)

3) The Company has pledged fixed deposits with banks aggregating of '' 8,200.00 million (Previous year '' 3,733.30 million) for obtaining bank guarantee and for meeting margin requirements.

4) The Company is subject to legal proceedings and claims which arises in the ordinary course of the business. The Company''s management does not reasonably expect that these legal actions, when ultimately concluded and determined, will have material and adverse effect on the Company''s financial position.

5) The above Contingent Liability does not include Income Tax Liability of '' 187.39 millions arising due to error in processing of return by the Income Tax Department for which rectification application has been filed and outflow of resources is considered remote.

NOTE 31 : CORPORATE SOCIAL RESPONSIBILITY

During the period ended March 31, 2023 the Company has spent '' 51.92 million (Previous year '' 27.74 million) out of the total amount of '' 42.59 million (Previous year '' 37.07 million) required to be spent as per section 135 of the Companies Act 2013 in respect of Corporate Social Responsibility [CSR]. Unspent amount of '' 9.33 million for the previous year for ongoing projects has been spent during current year.

The Company undertakes the following activities in the nature of Corporate social responsibility (CSR):

a) Promoting education and special education among children and women, especially from marginalised and vulnerable communities

b) Promoting employment enhancing vocational skills, especially among youths, through livelihood enhancement projects in aspirational districts

c) Promoting healthcare, including preventive health and sanitation,

d) Promoting gender equality, empowering women and taking measures to reduce inequalities faced by socially and economically backward groups

For detailed report, please refer annexure 1: Corporate Social Responsibility (CSR) in Director Report

NOTE 34 : FINANCIAL RISK MANAGEMENT Financial risk management objectives and policies

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s risk management policy is approved by the board committee.

The company has adopted the ''three lines-of-defence'' (3 LOD) model wherein management control at the business entity level is the first line of defence in risk management. Various risk control and compliance oversight functions, established by the management are the second line of defence. Finally, the third line comprises the internal audit/ assurance function. All three lines play a distinct role within Company wider governance framework.

34 A.1. CREDIT RISK

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investments, derivative financial instruments, other balances with banks, loans and other receivables and other financial asset.

Credit quality analysis

The following tables sets out information about the credit quality of financial assets measured at amortised cost, FVOCI debt investments. Unless specifically indicated, for financial assets, the amounts in the table represent gross carrying amounts.

34 A.2. COLLATERAL HELD

The Company holds collateral of securities and other credit enhancements against its credit exposures.

34 A.3. MEASUREMENT OF EXPECTED CREDIT LOSS

The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognized. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind AS whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.

34 B. LIQUIDITY RISK

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities and maintaining availability of standby funding through an adequate line up of committed credit facilities. It uses a range of products mix to ensure efficient funding from across well-diversified markets and investor pools. Treasury monitors rolling forecasts of the company''s cash flow position and ensures that the company is able to meet its financial obligation at all times including contingencies.

The table below analyse the company financial liability into relevant maturity companying based on their contractual maturity. The amount disclosed in the table are the contractual undiscounted cash flows. Balance due within 1 year equals their carrying balances as the impact of discounting is not significant.

34 C. MARKET RISK

Market risk is the risk of any loss in future earnings, in realisable fair values or in futures cash flows that may result from a change in the price of a financial instrument.

The Company manages market risk through a treasury department, which evaluate and exercises control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by senior management and the Audit/ Investment committee. The activities of this department include management of cash resources, borrowing strategies, and ensuring compliance with market risk limit and policies.

34 C.l. INTEREST RATE RISK

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Interest rate change does not affects significantly short term borrowing and current investment therefore the Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt and Non current investment.

Company business is volatile and hence borrowings are done bases on requirement, generally borrowings are done for short term and are on market based interest rate.

34 C.2. FAIR VALUE SENSITIVITY ANALYSIS FOR FIXED-RATE INSTRUMENTS

The Company''s fixed-rate financial liabilities are carried at amortised cost. Therefore, a change in interest rates at the reporting date would not affect profit or loss, since neither the carrying amount nor the future cash flows will fluctuate. There is no fixed-rate financial liabilities outstanding as at the reporting date.

34 C.3. EXPOSURE TO CURRENCY RISKS

The Company is operating internationally and is exposed to foreign exchange risk arising form foreign currency transaction. Below is table showing net gap between foreign asset and liability

Sensitivity :

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments.

The effect of upward movement of 5% in the exchange rate reduce the profit/reserve by '' 0.42 million (increase in profit/reserve '' 1.95 million for previous year) and downward movement of 5% will increase profit/reserve by '' 0.42 million (reduce in profit/ reserve '' 1.95 million for previous year) for FY 2022-23.

34 C.4. EXPOSURE TO PRICE RISK

The Company exposure to price risk arising from investment held by the company and is classified in the balance sheet through fair value through profit & loss account. Company has majorly invested in Debt Fund and Alternate Investment Funds under various scheme and its exposure.

Sensitivity

The effect of upward movement of 5% in the price affects the projected net income by '' 29.87 million ('' 54.05 million for previous year)and for forward downward movement of 5% the projected net loss will be '' 29.87 million ('' 54.05 million for previous year) for FY 2022-23.

34 D. CAPITAL MANAGEMENT

The company''s objective when managing capital are to

â¢ Safeguard their ability to continue as going concern, so that they can continue to provide returns for the share holders and benefits for other stake holders, and

â¢ Maintain an optimal capital structure to reduce the cost of capital.

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 Company monitors capital using debt equity ratio.

34 E. FAIR VALUES OF FINANCIAL INSTRUMENTS

The Company measures fair values using the following fair value hierarchy, which reflects the significance of the inputs used in making the measurements.

â¢ Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments.

â¢ Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data.

â¢ Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs that are not observable and the unobservable inputs have a significant effect on the instrument''s valuation. This category includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

Subjective estimate - The valuation of level 3 financial instruments held at fair value through profit or loss or through other comprehensive income may be misstated due to the application of valuation techniques which often involve the exercise of judgement and the use of assumptions and estimates. A subjective estimate exists for instruments where the valuation method uses significant unobservable inputs which is principally the case for level 3 financial instruments. The estimate measurement of fair value is more judgemental in respect of Level 3 assets, these are valued based on models that use a significant degree of non-market-based unobservable inputs.

The following table analyses financial instruments measured at fair value at the reporting date, by the level in the fair value hierarchy into which the fair value measurement is categorised.

34 E. 3. VALUATION METHODOLOGIES OF FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE

The following table sets out the fair values of financial instruments not measured at fair value and analyses them by the level in the fair value hierarchy into which each fair value measurement is categorised.

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the Company''s financial statements. These fair values were calculated for disclosure purposes only.

Short-term financial assets and liabilities

For financial assets and financial liabilities that have a short-term nature, the carrying amounts, which are net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash and bank balances, trade receivables, other receivables, balances other than cash and cash equivalents and trade payables.

34 E. 5. MEASUREMENT OF FAIR VALUE

i) Amount is less than '' 0.01 Million, hence shown '' 0.00 Million, wherever applicable.

iii) Giskard Datatech Private Limited Associate from November 06, 2020 till December 30, 2021.

iv) 360 ONE Wam Limited (Formerly known as IIFL Wealth Management Limited) has provided a letter of undertaking-cum-indemnity to the Company towards a civil suit pending against IIFL Wealth (UK)Ltd., a wholly owned subsidiary of the Company, inter-alia, to defend the said suit and indemnify the Company and its directors against claims, if any, arising from the same.

NOTE 36 : DISCLOSURE AS PER IND AS -108 âSEGMENT REPORTING"

The Company''s business is to provide capital market services in primary & secondary market. All other activities of the Company

are ancillary to the main business. As such, there are no reportable segments that need to be reported separately as defined in

Ind AS 108, Operating Segments.

NOTE 38: RECENT PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCAâ) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and there is no impact on its standalone financial statements.

Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statement.

NOTE 39 : LABOUR CODE

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment received Indian Parliament approval and Presidential assent in September 2020. The Code has been published in the Gazette of India and subsequently on November 13, 2020 draft rules were published and invited for stakeholders'' suggestions. The Central Government on March 30, 2021 has deferred the implementation of the said Code and the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will account for the related impact in the period the Code becomes effective.

NOTE 40 : DISCLOSURE OF FINANCIAL RATIOS

Additional regulatory information required under (WB)(xvi) of Division III of Schedule III amendment, disclosure of rations, is not applicable to the Company as it is in broking business and not an NBFC registered under Section 45-IA of Reserve Bank of India Act, 1934.

NOTE 41 : OTHER DISCLOSURE UNDER SCHEDULE - III

1) No funds have been advanced or loaned or invested by the company to or in any other persons or entities, including foreign entities ("Intermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

2) No funds have been received by the company from any persons or entities, including foreign entities ("Funding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, 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 Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.