Accounting Policies of Mkventures Capital Ltd. Company

Mar 31, 2025

2 Material accounting policy information

The principal accounting policies applied in the preparation of these Standalone Financial Statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of Preparation of Standalone financial statements

These Standalone Financial Statements are presented “in Rupees” which is also the the Company’s functional currency and all
amounts are rounded off to the nearest lakhs, unless otherwise stated.

The Standalone Financial Statements have been prepared in accordance with the requirements of the information and disclosures
mandated by division III of Schedule III to the Act, applicable Ind AS, other applicable pronouncements and regulations.

(i) Compliance with Ind AS and regulation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind
AS) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 to be read with
Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards)
Amendment Rules, 2016. The Master Direction - Non-Banking Financial Company - Non-Deposit taking Company
(Reserve Bank) Directions, 2016 (‘the NBFC Master Directions’).

(ii) Historical cost convention and going concern assumption

The financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities
(including derivative instruments) are measured at fair value. The financial statements are prepared on a going concern
basis, as the Management is satisfied that the Company shall be able to continue its business for the foreseeable future
and no material uncertainty exists that may cast significant doubt on the going concern assumption. In making this
assessment, the Management has considered a wide range of Information relating to present and future conditions,
including future projections of profitability, cash flows and capital resources.

2.2 Investment in subsidiary

Investments in subsidiary company are carried at cost and fair value (deemed cost) as per Ind AS -101 “First-time Adoption
of Indian Accounting Standards” and 109 “Financial Instruments” less accumulated impairment losses, if any. Where an
indication of impairment exists, the carrying amount of the investment is assessed and written down to its recoverable amount.
On disposal of investments in subsidiary companies. the difference between net disposal proceeds and the carrying amounts
are recognised in the Statement of Profit and Loss.

When the Company ceases to control the investment in subsidiary the said investment is carried at fair value through profit and
loss in accordance with Ind AS 109 “Financial Instruments”.

2.3 Use of estimates and judgements

The preparation of the Financial Statement in conformity with Ind AS requires management to make estimates, judgments
and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported
amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the Financial statements and
reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual
results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Appropriate
changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes
in estimates are reflected in the Financial statement in the period in which changes are made and, if material, their effects are
disclosed in the notes to the Financial statements.

i) Business model assessment

Classification and measurement of financial assets depends on the results of business model and the solely payments of
principal and interest (“SPPI”) test. The Company determines the business model at a level that reflects how groups of
financial assets are managed together to achieve a particular business objective. This assessment includes judgement
reflecting all relevant evidence including how the performance of the assets is evaluated and their performance
measured, the risks that affect the performance of the assets and how these are managed and how the managers of the
assets are compensated. The Company monitors financial assets measured at amortised cost or fair value through other
comprehensive income (FVOCI) that are derecognised prior to their maturity to understand the reason for their disposal
and whether the reasons are consistent with the objective of the business for which the asset was held. Monitoring is part
of the Company’s continuous assessment of whether the business model for which the remaining financial assets are
held continues to be appropriate and if it is not appropriate whether there has been a change in business model and so a
prospective change to the classification of those assets.

ii) Fair value of financial instruments

The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market
conditions (i.e. an exit price) regardless of whether that price is directly observable or estimated using another valuation
technique. When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
derived from active markets, they are determined using a variety of valuation techniques that include the use of valuation
models. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
estimation is required in establishing fair values.

(iii) Impairment of financial assets

The Company applies ‘Simplified Approach’ for measurement and recognition of impairment loss on the following
financial assets and credit exposure:

- Financial assets that are debt instruments and are measured at amortised cost e.g. loans, deposits and bank balance

- Trade receivables

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

Financial assets where no significant increase in credit risk has been observed are considered to be in ‘stage 1’ and for
which a 12 month ECL is recognised. Financial assets that are considered to have significant increase in credit risk are
considered to be in ‘stage 2’ and those which are in default or for which there is an objective evidence of impairment are
considered to be in ‘stage 3’. Lifetime ECL is recognised for stage 2 and stage 3 financial assets.

At initial recognition, allowance (or provision in the case of loan commitments) is required for ECL towards default
events that are possible in the next 12 months, or less, where the remaining life is less than 12 months. In the event of
a significant increase in credit risk, allowance (or provision) is required for ECL towards all possible default events
over the expected life of the financial instrument (‘lifetime ECL’). Financial assets (and the related impairment loss
allowances) are written off in full, when there is no realistic prospect of recovery.

(IV) Provisions and other contingent liabilities

The Company operates in a regulatory and legal environment that, by nature, has a heightened element of litigation risk
inherent to its operations. As a result, it is involved in various litigation, arbitration and regulatory investigations and
proceedings in the ordinary course of the Company’s business.

When the Company can reliably measure the outflow of economic benefits in relation to a specific case and considers
such outflows to be probable, the Company records a provision against the case. Where the outflow is considered to be
probable, but a reliable estimate cannot be made, a contingent liability is disclosed.

Given the subjectivity and uncertainty of determining the probability and amount of losses, the Company takes into
account a number of factors including legal advice, the stage of the matter and historical evidence from similar incidents.
Significant judgement is required to conclude on these estimates.

These estimates and judgements are based on historical experience and other factors, including expectations of future
events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.
Management believes that the estimates used in preparation of the Financial Information are prudent and reasonable.

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

A. Financial Assets

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instrument.

(i) Initial recognition and measurement

All financial assets are recognized at fair value on initial recognition, except for trade receivables which are
initially measured at transaction price. Transaction costs that are directly attributable to the acquisition of financial
assets, which are not at fair value through profit or loss, are added to the fair value on initial recognition.

(ii) Subsequent measurement and classification

For the purpose of subsequent measurement, the financial assets are classified into three categories:

- Financial assets at amortised cost

- Financial assets at fair value through Other Comprehensive Income (FVTOCI)

- Financial assets at fair value through profit or loss (FVTPL) on the basis of its business model for managing
the financial assets.

Financial assets at amortised cost (AC):

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective
is to hold assets for collecting contractual cash flows and the 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, less impairment, if any. The EIR amortisation is included in finance income in the
Statement of Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and
Loss.

Financial asset at Fair Value through other comprehensive income (FVTOCI):

A financial asset is measured at fair value through other comprehensive income (FVTOCI) if it is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at
fair value. Fair value movements are recognized in the other comprehensive income (OCI).

Interest income measured using the EIR method and impairment losses, if any are recognised in the Statement of
Profit and Loss. On derecognition, cumulative gain or loss previously recognised in OCI is reclassified from the
equity to ‘Revenue from operations’ in the Statement of Profit and Loss.

Financial asset at Fair Value through profit or loss (FVTPL)

A financial asset which are not classified in any of the above categories are measured at FVTPL. Such financial
assets are measured at fair value with all changes in fair value, including interest income and dividend income if
any, recognised as ‘Revenue from operations’ in the Statement of Profit and Loss.

Financial assets as Equity Investments

All equity instruments other than investment in subsidiaries and associate are initially measured at fair value; the
Company may, on initial recognition, irrevocably elect to measure the same either at FVOCI or FVTPL.

The Company makes such election on an instrument-by-instrument basis. A fair value change on an equity
instrument is recognised as other income in the Statement of Profit and Loss unless the Company has elected to
measure such instrument at FVOCI. Fair value changes excluding dividends, on an equity instrument measured
at FVOCI are recognised in OCI. Amounts recognised in OCI are not subsequently reclassified to the Statement
of Profit and Loss. Dividend income on the investments in equity instruments are recognised as ‘Revenue from
operations’ in the Statement of Profit and Loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
derecognised (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 and either (a) the Company has
transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Fair Value Measurement

The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.

Fair value is the price that would be received against sale of an asset or paid to transfer 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 in the accessible principal
market or the most advantageous accessible market as applicable.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy into Level I, Level II and Level HI based on the lowest level input that is significant
to the fair value measurement as a whole.

For assets and liabilities that are fair valued in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based
on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting
period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis
of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.

B. Financial Liabilities

(i) Initial recognition and measurement

All financial liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial liability, which are not at fair value through profit or loss, are adjusted to the fair
value on initial recognition.

(ii) Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method.

(iii) Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using
the Effective Interest Rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and transactions costs. The EIR amortisation is included as finance costs in the Statement
of Profit and Loss. Gains and losses are recognised in Statement of Profit and Loss when the liabilities are
derecognised.

(iv) Derecognition

A financial liability is derecognized 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 derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the Statement of Profit and Loss.

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis
or to realize the assets and settle the liabilities simultaneously.

2.5 Revenue Recognition

The Company recognises revenue from contracts with customers (other than financial assets to which Ind AS 109 ‘Financial
instruments’ is applicable) based on a comprehensive assessment model as set out in Ind AS 115 ‘Revenue from contracts
with customers’. The Company identifies contract(s) with a customer and its performance obligations under the contract,
determines the transaction price and its allocation to the performance obligations in the contract and recognises revenue only
on satisfactory completion of performance obligations. Revenue is measured at the fair value of the consideration received or
receivable.

Interest Income

As per Ind AS 109, Financial Instruments, Interest income from financial assets is recognised on an accrual basis using
effective interest rate method (EIR). The effective interest rate method is the rate that exactly discounts estimated future cash
receipts (including all fees, transaction costs and other premiums or discounts paid or received) through the expected life of
the financial instrument to the carrying amount on initial recognition.

Dividend Income

Dividend income is recognised when the Company’s right to receive the payment is established and it is probable that the
economic benefits associated with the dividend will flow to the company and the amount of the dividend can be measured
reliably. This is generally when the shareholders approve the dividend.

Net gain on fair value changes

The Company designates certain financial assets for subsequent measurement at fair value through profit or loss (FVTPL) or
fair value through other comprehensive income (FVOCI). The Company recognises gains on fair value change of financial
assets measured at FVTPL and realised gains on derecognition of financial asset measured at FVTPL and FVOCI on net basis
in profit or loss.

Others:

All other revenues are accounted on accrual basis.

2.6 Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
(after deducting attributable taxes) 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.

2.7 Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and on hand and short term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement
of cash flow, cash and cash equivalents consists of cash and short-term deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of the Company’s cash management.

---

Mar 31, 2024

2 Material accounting policy information

The principal accounting policies applied in the preparation of these Standalone Financial Statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of Preparation of Standalone financial statements

These Standalone Financial Statements are presented in “indian Rupees” which is also the the Company’s functional currency and all amounts are rounded off to the nearest thousands, unless otherwise stated.

The Standalone Financial Statements have been prepared in accordance with the requirements of the information and disclosures mandated by division HI of Schedule III to the Act, applicable Ind AS, other applicable pronouncements and regulations.

(i) Compliance with Ind AS and regulation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 to be read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) Amendment Rules, 2016. The Master Direction - Non-Banking Financial Company - Non-Deposit taking Company (Reserve Bank) Directions, 2016 (‘the NBFC Master Directions’).

(ii) Historical cost convention and going concern assumption

The financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities (including derivative instruments) are measured at fair value. The financial statements are prepared on a going concern basis, as the Management is satisfied that the Company shall be able to continue its business for the foreseeable future and no material uncertainty exists that may cast significant doubt on the going concern assumption. In making this assessment, the Management has considered a wide range of Information relating to present and future conditions, including future projections of profitability, cash flows and capital resources.

2.2 Investment in subsidiary

Investments in subsidiary company are carried at cost and fair value (deemed cost) as per Ind AS -101 “First-time Adoption of Indian Accounting Standards” and 109 “Financial Instruments” less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down to its recoverable amount. On disposal of investments in subsidiary companies. the difference between net disposal proceeds and the carrying amounts are recognised in the Statement of Profit and Loss.

When the Company ceases to control the investment in subsidiary the said investment is carried at fair value through profit and loss in accordance with Ind AS 109 “Financial Instruments”.

2.3 Use of estimates and judgements

The preparation of the Financial Statement in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the Financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the Financial statement in the period in which changes are made and, if material, their effects are disclosed in the notes to the Financial statements.

i) Business model assessment

Classification and measurement of financial assets depends on the results of business model and the solely payments of principal and interest (“SPPI”) test. The Company determines the business model at a level that reflects how groups of financial assets are managed together to achieve a particular business objective. This assessment includes judgement reflecting all relevant evidence including how the performance of the assets is evaluated and their performance measured, the risks that affect the performance of the assets and how these are managed and how the managers of the assets are compensated. The Company monitors financial assets measured at amortised cost or fair value through other comprehensive income (FVOCI) that are derecognised prior to their maturity to understand the reason for their disposal and whether the reasons are consistent with the objective of the business for which the asset was held. Monitoring is part of the Company’s continuous assessment of whether the business model for which the remaining financial assets are held continues to be appropriate and if it is not appropriate whether there has been a change in business model and so a prospective change to the classification of those assets.

ii) Fair value of financial instruments

The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly observable or estimated using another valuation technique. When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of valuation models. The inputs to these models are taken from observable markets where possible, but where this is not feasible, estimation is required in establishing fair values.

(iii) Impairment of financial assets

The Company applies ‘Simplified Approach’ for measurement and recognition of impairment loss on the following financial assets and credit exposure:

- Financial assets that are debt instruments and are measured at amortised cost e.g. loans, deposits and bank balance

- Trade receivables

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

Financial assets where no significant increase in credit risk has been observed are considered to be in ‘stage 1’ and for which a 12 month ECL is recognised. Financial assets that are considered to have significant increase in credit risk are considered to be in ‘stage 2’ and those which are in default or for which there is an objective evidence of impairment are considered to be in ‘stage 3’. Lifetime ECL is recognised for stage 2 and stage 3 financial assets.

At initial recognition, allowance (or provision in the case of loan commitments) is required for ECL towards default events that are possible in the next 12 months, or less, where the remaining life is less than 12 months. In the event of a significant increase in credit risk, allowance (or provision) is required for ECL towards all possible default events over the expected life of the financial instrument (‘lifetime ECL’). Financial assets (and the related impairment loss allowances) are written off in full, when there is no realistic prospect of recovery.

(IV) Provisions and other contingent liabilities

The Company operates in a regulatory and legal environment that, by nature, has a heightened element of litigation risk inherent to its operations. As a result, it is involved in various litigation, arbitration and regulatory investigations and proceedings in the ordinary course of the Company’s business.

When the Company can reliably measure the outflow of economic benefits in relation to a specific case and considers such outflows to be probable, the Company records a provision against the case. Where the outflow is considered to be probable, but a reliable estimate cannot be made, a contingent liability is disclosed.

Given the subjectivity and uncertainty of determining the probability and amount of losses, the Company takes into account a number of factors including legal advice, the stage of the matter and historical evidence from similar incidents. Significant judgement is required to conclude on these estimates.

These estimates and judgements are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Management believes that the estimates used in preparation of the Financial Information are prudent and reasonable.

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

A. Financial Assets

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instrument.

(i) Initial recognition and measurement

All financial assets are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition of financial assets, which are not at fair value through profit or loss, are added to the fair value on initial recognition.

(ii) Subsequent measurement and classification

For the purpose of subsequent measurement, the financial assets are classified into three categories:

- Financial assets at amortised cost

- Financial assets at fair value through Other Comprehensive Income (FVTOCI)

- Financial assets at fair value through profit or loss (FVTPL) on the basis of its business model for managing the financial assets.

Financial assets at amortised cost (AC):

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold assets for collecting contractual cash flows and the 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, less impairment, if any. The EIR amortisation is included in finance income in the Statement of Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss.

Financial asset at Fair Value through other comprehensive income (FVTOCI):

A financial asset is measured at fair value through other comprehensive income (FVTOCI) if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI).

Interest income measured using the EIR method and impairment losses, if any are recognised in the Statement of Profit and Loss. On derecognition, cumulative gain or loss previously recognised in OCI is reclassified from the equity to ‘Revenue from operations’ in the Statement of Profit and Loss.

Financial asset at Fair Value through profit or loss (FVTPL)

A financial asset which are not classified in any of the above categories are measured at FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognised as ‘Revenue from operations’ in the Statement of Profit and Loss.

Financial assets as Equity Investments

All equity instruments other than investment in subsidiaries and associate are initially measured at fair value; the Company may, on initial recognition, irrevocably elect to measure the same either at FVOCI or FVTPL.

The Company makes such election on an instrument-by-instrument basis. A fair value change on an equity instrument is recognised as other income in the Statement of Profit and Loss unless the Company has elected to measure such instrument at FVOCI. Fair value changes excluding dividends, on an equity instrument measured at FVOCI are recognised in OCI. Amounts recognised in OCI are not subsequently reclassified to the Statement of Profit and Loss. Dividend income on the investments in equity instruments are recognised as ‘Revenue from operations’ in the Statement of Profit and Loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised (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 and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Fair Value Measurement

The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.

Fair value is the price that would be received against sale of an asset or paid to transfer 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 in the accessible principal market or the most advantageous accessible market as applicable.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy into Level I, Level II and Level HI based on the lowest level input that is significant to the fair value measurement as a whole.

For assets and liabilities that are fair valued in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.

B. Financial Liabilities

(i) Initial recognition and measurement

All financial liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial liability, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.

(ii) Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method.

(iii) Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and transactions costs. The EIR amortisation is included as finance costs in the Statement of Profit and Loss. Gains and losses are recognised in Statement of Profit and Loss when the liabilities are derecognised.

(iv) Derecognition

A financial liability is derecognized 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 derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

2.5 Revenue Recognition

The Company recognises revenue from contracts with customers (other than financial assets to which Ind AS 109 ‘Financial instruments’ is applicable) based on a comprehensive assessment model as set out in Ind AS 115 ‘Revenue from contracts with customers’. The Company identifies contract(s) with a customer and its performance obligations under the contract, determines the transaction price and its allocation to the performance obligations in the contract and recognises revenue only on satisfactory completion of performance obligations. Revenue is measured at the fair value of the consideration received or receivable.

Interest Income

As per Ind AS 109, Financial Instruments, Interest income from financial assets is recognised on an accrual basis using effective interest rate method (EIR). The effective interest rate method is the rate that exactly discounts estimated future cash receipts (including all fees, transaction costs and other premiums or discounts paid or received) through the expected life of the financial instrument to the carrying amount on initial recognition.

Dividend Income

Dividend income is recognised when the Company’s right to receive the payment is established and it is probable that the economic benefits associated with the dividend will flow to the company and the amount of the dividend can be measured reliably. This is generally when the shareholders approve the dividend.

Net gain on fair value changes

The Company designates certain financial assets for subsequent measurement at fair value through profit or loss (FVTPL) or fair value through other comprehensive income (FVOCI). The Company recognises gains on fair value change of financial assets measured at FVTPL and realised gains on derecognition of financial asset measured at FVTPL and FVOCI on net basis in profit or loss.

Others:

All other revenues are accounted on accrual basis.

2.6 Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) 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.

2.7 Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and on hand and short term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flow, cash and cash equivalents consists of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

---

Mar 31, 2023

2 Significant Accounting Policies

The Principal accounting policies applied in the preparation of these Standalone Financial Statements are set out below. These Policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of Preparation of Standalone financial statements

These Standalone Financial Statements are presented in “indian Rupees” which is also the the Company’s functional currency and all amounts are rounded off to the nearest thousands, unless otherwise stated.

The Standalone Financial Statements have been prepared in accordance with the requirements of the information and disclosures mandated by division III of Schedule III to the Act, applicable Ind AS, other applicable pronouncements and regulations.

(i) Compliance with Ind AS and regulation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 to be read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) Amendment Rules, 2016. The Master Direction - Non-Banking Financial Company - Non-Deposit taking Company (Reserve Bank) Directions, 2016 (‘the NBFC Master Directions’).

(ii) Historical cost convention and going concern assumption

The financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities (including derivative instruments) are measured at fair value. The financial statements are prepared on a going concern basis, as the Management is satisfied that the Company shall be able to continue its business for the foreseeable future and no material uncertainty exists that may cast significant doubt on the going concern assumption. In making this assessment, the Management has considered a wide range of Information relating to present and future conditions, including future projections of profitability, cash flows and capital resources.

2.2 Investment in subsidiary

The preparation of financial statements in conformity with generally accepted accounting principles in India requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Management believes that the estimates made in the preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods. Investments in subsidiary company are carried at cost and fair value (deemed cost) as per Ind AS -101 “First-time Adoption of Indian Accounting Standards” and 109 “Financial Instruments” less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down to its recoverable amount. On disposal of investments in subsidiary companies. the difference between net disposal proceeds and the carrying amounts are recognised in the Statement of Profit and Loss.

When the Company ceases to control the investment in subsidiary the said investment is carried at fair value through profit and loss in accordance with Ind AS 109 “Financial Instruments”.

2.3 Use of estimates and judgements

The preparation of the Financial Statement in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the Financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the Financial statement in the period in which changes are made and, if material, their effects are disclosed in the notes to the Financial statements.

i) Business model assessment

Classification and measurement of financial assets depends on the results of business model and the solely payments of principal and interest (“SPPI”) test. The Company determines the business model at a level that reflects how groups of financial assets are managed together to achieve a particular business objective. This assessment includes judgement reflecting all relevant evidence including how the performance of the assets is evaluated and their performance measured, the risks that affect the performance of the assets and how these are managed and how the managers of the assets are compensated. The Company monitors financial assets measured at amortised cost or fair value through other comprehensive income (FVOCI) that are derecognised prior to their maturity to understand the reason for their disposal and whether the reasons are consistent with the objective of the business for which the asset was held. Monitoring is part of the Company’s continuous assessment of whether the business model for which the remaining financial assets are held continues to be appropriate and if it is not appropriate whether there has been a change in business model and so a prospective change to the classification of those assets.

ii) Fair value of financial instruments

The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly observable or estimated using another valuation technique. When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of valuation models. The inputs to these models are taken from observable markets where possible, but where this is not feasible, estimation is required in establishing fair values.

(iii) Impairment of financial assets

The Company applies ‘Simplified Approach’ for measurement and recognition of impairment loss on the following financial assets and credit exposure:

Financial assets where no significant increase in credit risk has been observed are considered to be in ‘stage 1’ and for which a 12 month ECL is recognised. Financial assets that are considered to have significant increase in credit risk are considered to be in ‘stage 2’ and those which are in default or for which there is an objective evidence of impairment are considered to be in ‘stage 3’. Lifetime ECL is recognised for stage 2 and stage 3 financial assets.

At initial recognition, allowance (or provision in the case of loan commitments) is required for ECL towards default events that are possible in the next 12 months, or less, where the remaining life is less than 12 months. In the event of a significant increase in credit risk, allowance (or provision) is required for ECL towards all possible default events over the expected life of the financial instrument (‘lifetime ECL’). Financial assets (and the related impairment loss allowances) are written off in full, when there is no realistic prospect of recovery.

---

Mar 31, 2013

A) The preparation ofthe financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions to be made that affect the reported amounts of revenue and expenses during the reporting period, the reported amount of assets & liabilities and the disclosures relating to the contingent liabilities on the date ofthe financial statements. Examples of such estimates include useful lives of provisions for doubtful debts/advances, deferred tax etc. Actual results could differ from those estimates, such difference is recognised in the period/s in which results are known / materialised.

b) The accounts are prepared on the basis of going concern under historical cost convention as also accrual basis and in accordance with Accountiog Standards referred to in Section 211(3C) ofthe Companies Act 1956, which have been precribed by the Companies (Accounting Standards) Rules 2006, and the relevant provisions ofthe Companies Act. 1956.

c) Stock in Trade is valued at Cost or Market Value, whichever is lower.

d) Fixed Assets are stated at Cost less Depreciation.

e) Depreciation on Fixed Assets is provided for as per the Straight Line Method on pro-rata basis at the rates and in the manner prescribed by the Schedule XIV ofthe Companies Act, 1986.

f) Long term Investments are carried at cost less provisions, if any, for permanent diminution in value of such investment.

g) Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provision of Income Tax Act, 1961 h) Deferred Tax is recognised on timing differences, being die difference between taxable income and accounting income that originate in one period and are

capable of reversal in one or more subsequent periods. Deferred tax assets/ Liabilities in respect of depreciation on fixed assets is recognised if there is reasonable certainty that there will be sufficient future taxable income to realise such assets / liabilities. Moreover, deferred tax is shown net of deferred tax asseis and deferred tax liabilities. Depreciation as per Company''s Act Rs. 934,731/-, Depreciation as per Income Tax Rs. 808,649/-; Balance Rs. 126,082/- DTA = 126,082 * 30% = Rs. 37,825/-

i) In view of smallness of liability and uncertainty, retirement benefit have not been provided for as per AS 15.

j) If internal / external indications suggest that an asset ofthe company may be impaired, the recoverable amount of asset / cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount ofthe asset / cash generating unit is reduced to the said recoverable amount. The recoverable amount is measured as the higher of net selling price and value in use of such assets / cash generating unit, which is determined by the present value ofthe estimated future Cash Flows. As at the Balance Sheet date, there was no such indication.

k) The Company has no other Segment except that of securities. Therefore, segment accounting as of AS-17 is not required.

1) Income and expenditure pertaining to prior period, wherever material, are disclosed separately.

in) The Company recognised as Provisions, the liabilities being present obligations arising from past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation.

n) Contingent Assets are neither recognised nor disclosed.

o) Contingent Liability is disclosed by way of note to the financial statements after careful evaluation by the management ofthe fact and legal aspect ofthe matters involved.

The Company has no outstanding dues to small-scale industrial undertakings as on 31 st March, 2012

---

Mar 31, 2012

A) The financial statements for the year ended 31/3/2011 had been prepared as per the then applicable pre-revised Schedule VI of the Companies, Act 1956.Consequent to the notification of Revised Schedule VI under Companies Act 1956, financial statements for the year ended 31/03/2012 are prepaid as per Revised Schedule Vi. Accordingly the previous years figures have also been reclassified/regrouped to conform to this year's classifications. The adoption of Revised Sechdule VI does not impact recognition and measurement principles followed for the preparation of the financial statements.

b) The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimate and assumptions to be made that affect the reported amounts of revenue and expenses during the reporting period, the reported amount of assets & liabilities and the disclosures relating to the contingent liabilities on the date of the financial statements. Examples of such estimates include useful lives of provisions for doubtful debts/advances, deferred ta* etc. Actual results could differ from those estimates, such difference is recognised in the period/s in which results are known / materialised.

c) The accounts are prepared on the basis of going concern under historical cost convention as also accrual basis and in accordance with Accounting Standards referred to in Section 211 (3C) of the Companies Act 1956, which have been prescribed by the Companies (Accounting Standards) Rules 2006, and the relevant provisions of the Companies Act. 1956.

d) Stock in Trade is valued at Cost or Market Value, whichever is lower.

e) Fixed Assets are stated at Cost less Depreciation.

f) Depreciation on Fixed Assets is provided for as per the Straight Line Method on pro-rata basis at the rates and in the manner prescribed by the . Schedule XIV of the Companies Act, 1986.

g) Long term Investments are carried at cost less provisions, if any, for permanent diminution in value of such investment.

h) Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provision of Income Tax Act,1961

i) Deferred Tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets/ Liabilities in respect of depreciation on fixed assets Is recognised if there is reasonable certainty that there will be sufficient future taxable income to realise such assets / liabilities. Moreover, deferred tax is shown net of deferred tax assets and deferred tax liabilities.

Depreciation as per Company Rs. 849,020/-, Dep. as per Income Tax Rs. 1,196,192/-. Bal Rs. 347,172/- DTL = 347,172, * 30% = Rs. 104,152/- j) In view of smallness of liability and uncertainty, retirement benefit have not been provided for as per AS 15.

k) If internal / external indications suggest that an asset of the company may be impaired, the recoverable amount of asSet / cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset / cash generating unit is reduced to the said recoverable amount. The recoverable amount is measured as the higher of net selling price and value in use of such assets / cash generating unit, which is determined by the present value of the estimated future Cash Flows. As at the Balance Sheet date, there was no such indication

I) The Company has no other Segment except that of securities. Therefore, segment accounting as of AS-17 is not required, m) Income and expenditure pertaining to prior period , wherever material, are disclosed separately.

n) The Company recognised as Provisions, the liabilities being present obligations arising from past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of estimation, o) Contingent Assets are neither recognised nor disclosed.

p) Contingent Liability is disclosed by way of note to the financial statements after careful evaluation by the management of the fact and legal aspect of the matters involved.

---

Mar 31, 2011

A) The Company follows the Accrual System of accounting for all Income, Expenditure, Assets & Liabilities.

b) Stock in Trade is valued at Cost or Market Value, whichever is lower.

c) Long term Investments are carried at cost less provisioned, if any, for permanent diminution in value of such investment.

d) Fixed Assets are stated at Cost less Depreciation.

e) Depreciation on Fixed Assets is provided for as per the Straight Line Method on pro-rata basis at the rates and in the manner prescribed by the Schedule XTV of the Companies Act, 1986.

f) Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provision of Income Tax Act 1961

g) Deferred Tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets/ Liabilities in respect of depreciation on fixed assets is recognised if there is reasonable certainty that there will be sufficient future taxable income to realise such assets / liabilities. Moreover, deferred tax is shown net of deferred tax assets and deferred tax liabilities. Depreciation as per Company Rs. 864,519/-, Dep. as per Income Tax Rs. 956,493/-. Bal Rs. 91,974/-

DTL - 91,974, » 30% * Rs. 27.592/- h) In view of the smallness of liability and uncertainty, retirement benefits have not been provided for as per AS 15. i) If internal / external indications suggest that an asset of the company may be impaired, the recoverable amount of asset / cash generating asset is determined on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset / cash generating unit is reduced to the said recoverable amount. The recoverable amount is measured as the higher of net selling price and value in use of such assets / cash generating unit, which is determined by the present value of the estimated future Cash Flows. As at the Balance Sheet date, there was no such indication. j) The Company has no other segment except that of securities. Therefore segment accounting as of AS -17 is not required.

7) The Company has no outstanding dues to small-scale industrial undertakings as on 31st March, 2011

8) (A) The Company is contingently liable to HDFC Bank, Fort Branch for Rs. 425.00 Lakhs (PY Rs. 175.00 Lakhs) towards

Bank Guarantees issued by the bank in favour of The Bombay Stock Exchange, and NSCCL against which Bank is holding Fixed Deposits of Rs. 106.25 Lakhs (PY Rs. 87.50 Lakhs). The Company is contingently liable to the Directors for the collateral personal guarantee given by them for the same.

(B) The Company is contingently liable on account of Gratuity up to 31/03/2011 is Rs. 1,838,044 /- (PY Rs. 841,629/-) Other benefits like leave encashment are accounted on accrual basis.

(C) The Company has given counter guarantee to HDFC Bank towards Guarantee given by HDFC Bank to Oasis Securities Ltd a company in which directors are interested, for Rs Nil (PY Rs. 450.00 Lakhs).

(D) The Company is contingently liable to Director for the Guarantee given to HDFC Bank for Overdraft Facility upto Approx Rs. 3.00 Cr (P.Y. 3.00 Cr).

( E) Fixed Deposit of Rs 37.50 Lacs pledge with the bank for availing Short Term Loan of Rs 75.00 Lacs (P.Y. Rs Nil)

---

Mar 31, 2010

A) The Company follows the Accrual System of accounting for all Income,

Expenditure, Assets & Liabilities.

b) Stock in Trade is valued at Coat or Market Value, whichever is lower.

c) Long term Investments are carried at cost less provisioned, if any, for permanent diminution in value of such investment

d) Fixed Assets are stated at Cost less Depreciation.

e) Depreciation on Fixed Assets is provided for as per the Straight line Method on pro-rata basis at the rates and in the manner prescribed by the Schedule XIV of the Companies Act, 1986

f) Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provision of Income Tax Act 1961

g) Deferred Tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets. Liabilities in respect of depreciation on fixed assets is recognised if there is reasonable certamty that there wiO be sufficient future taxable income to realise such assets / fcabumes. Moreover, deferred tax is shown net of deferred tax assets and deferred tax liabilities. Depreciation as per Company Rs. 312,903/-, Dep. as per Income Tax Rs. 245,42ft"-. Bal Rs. 67,484/-

DTA = 67,484, ? 33.99% = Rs. 22,938/- h) In view of the smaBness of SabSry and uncertainty, retirement benefits have not been provided for as per AS IS. I) If internal / external indicators suggest that an asset of the company may be impaired, the recoverable amount of asset / cash generating asset is dctertnmod on the Balance Sheet date and if it is less than its carrying amount, the carrying amount of the asset / cash generating unit is reduced to the said recoverable amount The recoverable amount is measured as the higher of net selling price and value in use of such assets / cash generating unit, which is determined by the present value of the estimated future Cash Flows. As at the Balance Sheet date, there was no such indication. j ) The Company has no.other segment except that of securities. Therefore segment accounting as of AS - 17 is not required.