Notes to Accounts of Mkventures Capital Ltd.

Mar 31, 2025

2.8 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. The expense
relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources
will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent Assets are not recognised in the financial statements. Contingent Assets if any, are disclosed in the notes to the
financial statements.

2.9 Property, Plant & Equipment

Property, Plant & Equipment’s are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added
on revaluation, less accumulated depreciation and impairment loss if any. The cost of property, plant & equipment’s comprises
its purchase price, borrowing cost and any other cost directly attributable to bringing the asset to its working condition for
its intended use. Subsequent expenditure is capitalised only if it is probable that future economic benefits associated with the
expenditure will flow to the Company and the cost of the item can be measured reliably.

Depreciable amount for property, plant and equipment is the cost of property, plant and equipment less its estimated residual
value.

Depreciation is provided on Straight Line Method over the estimated useful lives of the property, plant and equipment, except
Leasehold Improvements, prescribed under Schedule II to the Companies Act, 2013 on pro rata basis. In cases, where the
useful lives are different from that prescribed in Schedule II, they are based on internal technical evaluation.

The estimated useful lives, residual values and depreciation methods are reviewed by the management at each reporting date
and adjusted if appropriate.

Property, plant and equipment are derecognised either on disposal or when no economic benefits are expected from its use or
disposal. The gain or loss arising from disposal of property, plant and equipment are determined by comparing the proceeds
from disposal with the carrying amount of property, plant and equipment and recognised in the Statement of Profit and Loss in
the year of occurrence.

2.10 Impairment of non-financial assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine
whether there is any indication that the assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of impairment loss (if any).

If the recoverable amount of asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced
to its recoverable amount. An impairment loss is recognised as an expenses in the Statement of Profit and Loss.

When an impairment loss subsequently reverses, the carrying amount of an asset is increased to the revised estimate of
its recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised
immediately in the Statement of Profit and Loss.

2.11 Taxation

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities, in accordance with the Income Tax Act, 1961 and the Income computation and Disclosure Standards prescribed
therein. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the
reporting date. Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in
other comprehensive income or directly in equity.

Company has elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the
Taxation Laws (Amendment) Ordinance, 2019 and recognized the tax provision for the year ended 31st March, 2022 on the
basis of rates prescribed in that section.

Deferred tax is provided using the liability method on temporary differences arising between the tax base of assets and liabilities
and their carrying amounts in the financial statements. Deferred tax is determined using tax rates that have been enacted or
substantially enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realised
or the deferred tax liability is settled.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets are recognised for all deductible temporary
differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary
differences.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive
income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive
income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

2.12 Intangible Assets

Intangible Assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible
assets are carried at cost less any accumulated amortization and accumulated impairment losses.

Intangible Assets are amortised over the useful economic life and assessed for impairment whenever there is an indication that
the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset are reviewed
at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset are considerd to modify the amortisation period or method, as appropriate, and are
treated as changes in accounting estimates. The amortisation expense on intangible is recognised in the statement of profit and
loss account.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

2.13 Borrowing Costs

Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds and is
measured with reference to the effective interest rate applicable to the respective borrowing. Borrowing costs, allocated to
qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the
qualifying asset are capitalized upto the time all the activities necessary to prepare the qualifying asset for its intended use or
sale are complete. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready to its intended
use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

2.14 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. Benefits such as salaries, wages, performance incentives etc. are recognised at actual amounts due in the period
in which the employee renders the related service. The undiscounted amount of short-term employee benefits to be paid in
exchange for employee services is recognized as an expense as the related service is rendered by employees.

Post Employment Benefits

Defined Benefit Plan : The cost of providing benefit like gratuity is determined using the actuarial valuation using the projected
unit credit method carried out as at the balance sheet date. Actuarial gain or loss are recognised immediately in the Profit or
Loss Account or Other comprehensive income.

All expenses represented by current service cost, past service cost, if any, and net interest expense / (income) on the net defined
benefit liability / (asset) are recognised in the Statement of Profit and Loss. Remeasurements of the net defined benefit liability
/ (asset) comprising actuarial gains and losses are recognised immediately in Other Comprehensive Income (OCI).

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or
the gain or loss on curtailment is recognised immediately in the Statement of Profit and Loss. The Company recognises gains
and losses on the settlement of a defined benefit plan when the settlement occurs.

Other long term employment benefits

Compensated absences : Compensated absences which are not expected to occur within twelve months after the end of the
period in which the employee renders the related services are recognised as a liability at the present value of the defined benefit
obligation at the balance sheet date as determined by an independent actuary based on projected unit credit method. The
discount rates used for determining the present value of the obligation under other long term employment benefits plan, are
based on the market yields on Government securities as at the balance sheet date.

Nature & Purpose of reserves

A. Statutory reserve (created pursuant to Section 45-IC of the Reserve Bank of India Act, 1934)

Statutory reserve represents the Reserve Fund created under section 45-IC of the Reserve Bank of India Act, 1934. The
Company is required to transfer a sum not less than twenty percent of its net profit every year as disclosed in the statement
of profit and loss. The statutory reserve can be utilized for the purposes as may be specified by the Reserve Bank of India
from time to time.

B. Retained earnings

Retained earnings represents total of all profits retained since Company’s inception. Retained earnings are credited with
current year profits, reduced by losses, if any, dividend payouts, transfers to General reserve or any such other appropriations
to specific reserves.

C. Capital reserve

Capital reserve has been created to set aside gains of capital nature from amalgamation and merger. It is utilised in accordance
with the provisions of the Companies Act, 2013.

D. Securities premium

Security premium represents excess amount received over and above the face value of shares issued.

E. Impairment reserve

Impairment Reserve represents the reserve created pursuant to the per RBI circular dated March 13, 2020 on ‘Implementation
of Indian Accounting Standards’. Under the circular, where the impairment allowance under Ind AS 109 is lower than the
provisioning required as per prudential norms on Income Recognition, Asset Classification and Provisioning (including
standard asset provisioning) the difference should be appropriated from the net profit to a separate ‘Impairment Reserve’.
Withdrawals from this reserve is allowed only after obtaining permission from the RBI.

F. Other comprehensive income

Other comprehensive income represents re - measurement of the net defined benefit plans.

* The company alloted 4,27,050 fully paid-up equity shares having a face value of Rs. 10/- on 5th May, 2023, each at an
issue price of Rs. 936/- per equity share, i.e. at a premium of Rs. 926/- per equity share, on a right basis to the existing
equity shareholders of the company in the ratio of 1 equity share for every eight fully paid-up equity shares held by the
existing equity shareholders on the record date. The basic and diluted earning per share as on 31st March, 2023 have
been restated pursuant to right issue of shares.

27 Dividends

An interim dividend of Rs.1 per equity share (P.Y.: NIL) was declared during the year ended 31st March, 2025, amounting to
Rs.38.43. (P.Y.: NIL) (Lakhs). An amount of Rs. 1.25 (Lakhs) remains unpaid out of the aforesaid amount as at 31-03-2025.

28 Employee benefits - post employment benefit plans A. Defined contribution plans

A. Defined contribution plans

The Company makes provident fund and employee state insurance scheme contributions which are defined contribution
plans, for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the
rules of the schemes.

B. Defined benefit plans
Gratuity

The Company operates a defined benefit plan (the Gratuity plan) covering eligible employees. The gratuity plan is
governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service
is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at
retirement age/ resignation date.

The defined benefit plans expose the Company to risks such as Actuarial risk, Liquidity risk, Market risk, Legislative
risk. These are discussed as follows:

Adverse salary growth experience: Salary hikes that are higher than the assumed salary escalation will result into an
increase in obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption then the gratuity
benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of
cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption then the
Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as
at the resignation date.

Liquidity risk: Employees with high salaries and long durations or those higher in hierarchy, accumulate significant
level of benefits. If some of such employees resign/retire from the company there can be strain on the cash flows.

Market risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time
value of money. An increase in discount rate leads to decrease in defined benefit obligation of the plan benefits and vice
versa. This assumption depends on the yields on the government bonds and hence the valuation of liability is exposed to
fluctuations in the yields as at the valuation date.

Legislative risk: Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change
in the legislation/regulation. The government may amend the labour laws, thus requiring the companies to pay higher
benefits to the employees. This will directly affect the present value of the defined benefit obligation and the same will
have to be recognized immediately in the year when any such amendment is effective.

Funding

The defined benefit plans are not funded.

The sensitivity analysis have been determined based on reasonably possible changes in the respective assumptions occurring
at the end of the reporting year, holding all other variables constant. The sensitivity analysis presented above may not be
representative of the actual change in the Projected Benefit Obligation as it is unlikely that the change in assumptions would
occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the Projected Benefit Obligation has been
calculated using the projected unit credit method at the end of the reporting year, which is the same method as applied in
calculating the projected benefit obligation as recognised in the Balance Sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

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

(i) Discount rate risk:

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the ultimate cost
of providing the above benefit thereby increasing the value of the liability.

(ii) Demographic risk:

In the valuation of the liability, certain demographic (mortality and attrition rates) assumptions are made. The Company is
exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing
an increase in the benefit cost.

(iii) Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An
increase in the salary of the plan participants will increase the plan liability.

Valuation principles

Fair value 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 a valuation technique.

In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation
techniques, as explained below:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets. Quotes would
include rates/values/valuation references published periodically by BSE, NSE etc. basis which trades take place in a linked
or unlinked active market. This includes traded bonds and mutual funds, as the case may be, that have quoted price/rate/
value.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation
techniques which maximise the use of observable market data (either directly as prices or indirectly derived from prices)
and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

35 RISK MANAGEMENT

The Company has operations in India. Whilst risk is inherent in the Company’s activities, it is managed through a risk
management framework, including ongoing identification, measurement and monitoring subject to risk limits and other
controls. The Company’s activities expose it to credit risk, liquidity risk and market risk.

i. Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company’s loans advances and other financial assets. The
carrying amount of financial assets represents the maximum credit exposure.

Credit Risk Management

a) Credit risk from loans & other financial assets have always been managed by the Company through credit
approvals and continuously monitoring the creditworthiness of customers to which the Company grants credit
terms in the normal course of business. On account of adoption of Ind AS 109, the Company has adopted expected
credit loss model to assess the impairment loss, and is positive of the realisibility of the Loans and other financial
asset.

The impairment provision as disclosed above are based on assumptions about Loss given default, Probability of default and
Exposure at default. The Company uses judgement in making these assumptions based on the Company''s past history, existing
market conditions as well as forward looking estimates at the end of each reporting period.

For assumptions about impairment provision, refer accounting policy in note 2.3(iii).

ii. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market
rates and prices (such as equity price, interest rates etc.) or in the price of market risk-sensitive instruments as a result of such
adverse changes in market rates and prices.

The Company is exposed to market risk primarily related to the market value of its investments.

(a) Interest rate risk

Interest rate risk is the fair value of future cash flows of a financial instrument which fluctuates because of changes in
the market interest rates. Since the Company does not have any financial assets or financial liabilities bearing floating
interest rates, any change in interest rates at the reporting date would not have any significant impact on the financial
statements of the Company.

(b) Foreign currency risk

Foreign Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates.The Company operates in only one currency INR and accordingly is not exposed
to Foreign Currency Risk

iii. Liquidity Risk

The Company’s principal sources of liquidity are ‘cash and cash equivalents’, ''bank balance other than cash and cash
equivalents'' and cash flows that are generated from operations. The Company believes that its working capital is sufficient to
meet the financial liabilities within maturity period. The Company has no borrowings. The Company manages its liquidity risk
by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal
and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

The table below analyses the Company’s liabilities into relevant maturity groupings based on their contractual maturities based
on undiscounted contractual payments for all non derivative financial liabilities.

iv. Operational Risk

Operational Risk has been defined as “The risk of loss resulting from inadequate or failed internal processes, people and
systems or from external events “The risk of direct or indirect potential loss arising from a wide variety of causes associated
with the Company’s processes, personnel, systems, or from external factors other than strategic and reputation risk Management
of operational risk forms an integral part of Company’s enterprise wide risk management systems. The organisation thrives
towards incremental improvements to its operational risk management framework to address the dynamic industry landscape.
Clear strategies and oversight by the Board of Directors and senior management, a strong operational risk management
culture, effective internal control and reporting and contingency planning are crucial elements of Company’s operational risk
management framework.

v. Regulatory and Compliance Risk

MKVentures Capital Limited has a robust compliance risk management framework in place approved by the Board, which
lays down the roles and responsibilities of employees towards ensuring compliance with the applicable laws and regulations
as also the role of the Compliance Department in monitoring compliance. The management of compliance risk is an integral
component of the governance framework along with other internal control and risk management frameworks.

vi. Internal Capital Adequacy Assessment Process (ICAAP)

MKVentures Capital Limited has already put in place a Board approved ICAAP policy and asssed the capital requrements
based on the ICAAP policy and stressed scenarios, which is in compliance with the scale based regulation issued on 22 October
2021 required NBFC-UL and NBFC-ML.

36 CAPITAL MANAGEMENT

Objectives, policies and processes of capital management

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business.

The cash surpluses are currently invested in loans, fixed deposits, mutual funds & equity instruments depending on economic
conditions in line with Loan & investment policy set by the Management. Safety of capital is of prime importance to ensure
availability of capital for operations. Investment objective is to provide safety and adequate return on the surplus funds.

38 Micro, small and medium enterprises

There are no Micro, Small & Medium Enterprises, to whom the Company owes dues, which are outstanding for more than
45 days as at 31^st March 2025. This information as required to be disclosed under the Micro, Small and Medium Enterprises
Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information
available with the Company.

39 Events after reporting date

There have been no events after the reporting date that require disclosure in these financial statements.

40 Other statutory information

a) The Company does not have any benami property, where any proceeding has been initiated or pending against the
Company for holding any benami property.

b) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (ultimate beneficiaries) or

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

d) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
funding party (ultimate beneficiaries) or

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

e) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961.

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

g) The Company is not declared wilful defaulter by and bank or financials institution or lender during the year.

h) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

i) The Company does not have any immovable property during the financial year.

j) The company has not revalued its property, plant and equipment during the financial year.

k) The Company has not availed borrowings from banks or financial institutions on the basis of security of current assets
during the year.

l) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956.

m) The company has not entered into any scheme of arrangement which has been approved by the competent authority in
terms of section 230 to 237 of the Companies Act, 2013 which has an accounting impact on financial year.

41 According to Para 16 of Master Direction DNBR. PD. 007/03.10.119/2016-17 of Non-Banking Financial Company - Non-
Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, a non-banking financial company
not accepting/holding public deposits having total assets of Rs. 500 crore and above in aggregate as shown in the last audited
balance sheet of multiple NBFC’s in a group is required to be classified as “”Systemically important non-deposit taking
non-banking financial company (NBFC-ND-SI)”.

As per the audited financial statements for F. Y 2022-23 of the group, the total assets of the Company in aggregate exceeded
Rs. 500 crores. As a result, MKVentures Capital Limited (“”the Company””) shall be classified as NBFC-ND-SI and
accordingly the directions of Systemically Important Non-Deposit taking Company and Deposit taking Company shall be
applicable to it w.e.f .01-04-2023.

(N) Overseas Assets and off- balance sheet SPVs sponsored (which are required to be consolidated as per accounting
norms)

(i) Overseas Assets

The Company does not have any overseas assets as at 31^st March, 2025 and 31^st March, 2024.

(ii) Off- Balance sheet SPVs sponsored (which are required to be consolidated as per accounting norms

The Company does not have any exposure to off balance sheet SPVs sponsored as at 31^st March, 2025 and 31^st March, 2024.

(O) Disclosure of complaints

The Company does not have any customer interface and thus there are no complaints received by the NBFCs from customers
during the year ended 31st March, 2025 and 31^st March, 2024.

(P) Disclosures relating to fraud in terms of the notification issued by Reserve Bank of India: - Rs. Nil

(Q) Corporate governance

For report on Corporate Governance refer to director report of the Annual Report for the financial year 2023-24

46 Figures have been rounded off to nearest lakhs, unless otherwise stated.

As per our report of even date

For ARSK & Associates For and on behalf of the board of Directors

Chartered Accountants MKVENTURES CAPITAL LIMITED

Firm’s Registration No: 315082E

Sd/- Sd/- Sd/-

CA. Amrit Kabra Madhusudan Murlidhar Kela Sumit Bhalotia

Partner Managing Director Director

Membership No: 313602 DIN: 05109767 DIN: 08737566

Date: 30-05-2025 Sd/- Sd/-

Place: Mumbai Sanket Dilip Rathi Shyam Sundar Jaju

Company Secretary Chief Financial Officer

---

Mar 31, 2024

2.8 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent Assets are not recognised in the financial statements. Contingent Assets if any, are disclosed in the notes to the financial statements.

2.9 Property, Plant & Equipment

Property, Plant & Equipment’s are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss if any. The cost of property, plant & equipment’s comprises its purchase price, borrowing cost and any other cost directly attributable to bringing the asset to its working condition for its intended use. Subsequent expenditure is capitalised only if it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably.

Depreciable amount for property, plant and equipment is the cost of property, plant and equipment less its estimated residual value.

Depreciation is provided on Straight Line Method over the estimated useful lives of the property, plant and equipment, except Leasehold Improvements, prescribed under Schedule II to the Companies Act, 2013 on pro rata basis. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on internal technical evaluation.

The estimated useful lives, residual values and depreciation methods are reviewed by the management at each reporting date and adjusted if appropriate.

Property, plant and equipment are derecognised either on disposal or when no economic benefits are expected from its use or disposal. The gain or loss arising from disposal of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and recognised in the Statement of Profit and Loss in the year of occurrence.

2.10 Impairment of non-financial assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that the assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss (if any).

If the recoverable amount of asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expenses in the Statement of Profit and Loss.

When an impairment loss subsequently reverses, the carrying amount of an asset is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Profit and Loss.

2.11 Taxation

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, in accordance with the Income Tax Act, 1961 and the Income computation and Disclosure Standards prescribed therein. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Company has elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 and recognized the tax provision for the year ended 31st March, 2022 on the basis of rates prescribed in that section.

Deferred tax is provided using the liability method on temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is determined using tax rates that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

2.12 Intangible Assets

Intangible Assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses.

Intangible Assets are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considerd to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible is recognised in the statement of profit and loss account.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

2.13 Borrowing Costs

Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds and is measured with reference to the effective interest rate applicable to the respective borrowing. Borrowing costs, allocated to qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset are capitalized upto the time all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready to its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

2.14 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. Benefits such as salaries, wages, performance incentives etc. are recognised at actual amounts due in the period in which the employee renders the related service. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognized as an expense as the related service is rendered by employees.

Post Employment Benefits

Defined Benefit Plan : The cost of providing benefit like gratuity is determined using the actuarial valuation using the projected unit credit method carried out as at the balance sheet date. Actuarial gain or loss are recognised immediately in the Profit or Loss Account or Other comprehensive income.

All expenses represented by current service cost, past service cost, if any, and net interest expense / (income) on the net defined benefit liability / (asset) are recognised in the Statement of Profit and Loss. Remeasurements of the net defined benefit liability / (asset) comprising actuarial gains and losses are recognised immediately in Other Comprehensive Income (OCI).

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in the Statement of Profit and Loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

Other long term employment benefits

Compensated absences : Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the defined benefit obligation at the balance sheet date as determined by an independent actuary based on projected unit credit method. The discount rates used for determining the present value of the obligation under other long term employment benefits plan, are based on the market yields on Government securities as at the balance sheet date.

27 Employee benefits - post employment benefit plans

A. Defined contribution plans

Statutory reserve represents the Reserve Fund created under section 45-IC of the Reserve Bank of India Act, 1934. The Company is required to transfer a sum not less than twenty percent of its net profit every year as disclosed in the statement of profit and loss. The statutory reserve can be utilized for the purposes as may be specified by the Reserve Bank of India from time to time.

B. Defined benefit plans Gratuity

The Company operates a defined benefit plan (the Gratuity plan) covering eligible employees. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age/ resignation date.

The defined benefit plans expose the Company to risks such as Actuarial risk, Investment risk, Liquidity risk, Market risk, Legislative risk. These are discussed as follows:

Actuarial risk: It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse salary growth experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption then the gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption then the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

Liquidity risk: Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cash flows.

Market risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in defined benefit obligation of the plan benefits and vice versa. This assumption depends on the yields on the government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

Legislative risk: Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the labour laws, thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the defined benefit obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

Funding The defined benefit plans are not funded.

ii. Fair Valuation Techniques

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

The fair value of cash and cash equivalents, other financial assets, other financial liabilities and assets approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the financial statements approximate their fair values.

iii. Fair value hierarchy

This section explains the basis of estimates made in determining the fair values of the financial instruments except investment in subsidiary that are :-

a. recognised and measured at fair value and

b. measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the Accounting Standard, which are explained herein below.

Valuation principles

Fair value 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 a valuation technique.

In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained below:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets. Quotes would include rates/values/valuation references published periodically by BSE, NSE etc. basis which trades take place in a linked or unlinked active market. This includes traded bonds and mutual funds, as the case may be, that have quoted price/rate/value. Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data (either directly as prices or indirectly derived from prices) and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. 33 FINANCIAL RISK MANAGEMENT

The Company’s activities expose it to credit risk, liquidity risk and market risk (i.e. Foreign currency risk, interest rate risk & Price risk).

i. Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s loans advances and other financial assets. The carrying amount of financial assets represents the maximum credit exposure.

Credit Risk Management

a) Credit risk from loans & other financial assets have always been managed by the Company through credit approvals and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company has adopted expected lifetime credit loss model to assess the impairment loss, and is positive of the realisibility of the Loans and other financial asset.

b) The Company holds bank balances of '' 2,99,081.07 (in 000)’ at 31 March 2024 (31 March 2023: 14,444.28 (in 000)'' ). The credit worthiness of such banks is evaluated by the management on an ongoing basis and is considered to be good.

ii. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as equity price, interest rates etc.) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices and relevance of market risk are as follows:-

(a) Interest rate risk

Interest rate risk is the fair value of future cash flows of a financial instrument which fluctuates because of changes in the market interest rates. Since the Company does not have any financial assets or financial liabilities bearing floating interest rates, any change in interest rates at the reporting date would not have any significant impact on the financial statements of the Company.

(b) Foreign currency risk

Foreign Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.The Company operates in only one currency INR and accordingly is not exposed to Foreign Currency Risk

iii. Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

The table below analyses the Company’s liabilities into relevant maturity groupings based on their contractual maturities based on undiscounted contractual payments for all non derivative financial liabilities.

34 CAPITAL MANAGEMENT

Objectives, policies and processes of capital management

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The cash surpluses are currently invested in loan & equity instruments depending on economic conditions in line with Loan & investment policy set by the Management. Safety of capital is of prime importance to ensure availability of capital for operations. Investment objective is to provide safety and adequate return on the surplus funds.

36 Micro, small and medium enterprises

There are no Micro, Small & Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March 2023. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

37 Events after reporting date

There have been no events after the reporting date that require disclosure in these financial statements.

38 Other statutory information

a) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

b) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

d) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

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

e) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

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

g) The Company is not declared wilful defaulter by and bank or financials institution or lender during the year.

h) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

i) The Company does not have any immovable property during the financial year.

j) The company has not revalued its property, plant and equipment during the financial year.

k) The Company has not availed borrowings from banks or financial institutions on the basis of security of current assets during the year.

l) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

m) The company has not entered into any scheme of arrangement which has been approved by the competent authority in terms of section 230 to 237 of the Companies Act, 2013 which has an accounting impact on financial year.

39 According to Para 16 of Master Direction DNBR. PD. 007/03.10.119/2016-17 of Non-Banking Financial Company - Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, a non-banking financial company not accepting/holding public deposits having total assets of Rs. 500 crore and above in aggregate as shown in the last audited balance sheet of multiple NBFC’s in a group is required to be classified as “Systemically important non-deposit taking nonbanking financial company (NBFC-ND-SI)”.

As per the audited financial statements for F. Y. 2022-23 of the group, the total assets of the Company in aggregate exceeded Rs. 500 crores. As a result, MKVentures Capital Limited (“the Company”) shall be classified as NBFC-ND-SI and accordingly the directions of Systemically Important Non-Deposit taking Company and Deposit taking Company shall be applicable to it w.e.f .01-04-2023.

10 Balance Sheet Disclosures as required under Master Direction - Non-Banking Financial Company - Systemically Important

Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and other RBI notification*

*Amounts included herein are based on current and previous year financials, as per Ind AS

43 Figures have been rounded off to nearest thousands, unless otherwise stated.

As per our report of even date

For ARSK & Associates For and on behalf of the board of Directors

Chartered Accountants Mkventures Capital Limited

Firm’s Registration No: 315082E

sd/- Sd/-

Madhusudan Murlidhar Kela Sumit Bhalotia

sd/- Managing Director Director

CA. Amrit Kabra DIN: 05109767 DIN: 08737566

Partner

Membership No: 313602

sd/- sd/-

Date: 30^th May, 2024 Rashmee Purushottam Mehta Sanket Dilip Rathi

Place: Mumbai Chief Financial Officer Company Secretary

---

Mar 31, 2023

(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 prudeS ar^eSo^blS^⁰^

2.4 Financial Instruments

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.

(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.

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 III 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.

(v) Off setting of Financial instruments

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.

2.8 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent Assets are not recognised in the financial statements. Contingent Assets if any, are disclosed in the notes to the financial statements.

2.9 Property, Plant & Equipment

Property, Plant & Equipment’s are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss if any. The cost of property, plant & equipment’s comprises its purchase price, borrowing cost and any other cost directly attributable to bringing the asset to its working condition for its intended use. Subsequent expenditure is capitalised only if it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably.

Depreciable amount for property, plant and equipment is the cost of property, plant and equipment less its estimated residual value.

Depreciation is provided on Straight Line Method over the estimated useful lives of the property, plant and equipment, except Leasehold Improvements, prescribed under Schedule II to the Companies Act, 2013 on pro rata basis. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on internal technical evaluation.

The estimated useful lives, residual values and depreciation methods are reviewed by the management at each reporting date and adjusted if appropriate.

Property, plant and equipment are derecognised either on disposal or when no economic benefits are expected from its use or disposal. The gain or loss arising from disposal of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and recognised in the Statement of Profit and Loss in the year of occurrence.

2.10 Impairment of non-financial assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that the assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss (if any). I f

the recoverable amount of asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expenses in the Statement of Profit and Loss.

When an impairment loss subsequently reverses, the carrying amount of an asset is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Profit and Loss.

2.11 Taxation

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, in accordance with the Income Tax Act, 1961 and the Income computation and Disclosure Standards prescribed therein. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Company has elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 and recognized the tax provision for the year ended 31st March, 2022 on the basis of rates prescribed in that section.

Deferred tax is provided using the liability method on temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is determined using tax rates that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

2.12 Intangible Assets

Intangible Assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses.

Intangible Assets are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considerd to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible is recognised in the statement of profit and loss account.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

2.13 Borrowing Costs

Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds and is measured with reference to the effective interest rate applicable to the respective borrowing. Borrowing costs, allocated to qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset are capitalized upto the time all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready to its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

2.14 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. Benefits such as salaries, wages, performance incentives etc. are recognised at actual amounts due in the period in which the employee renders the related service. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognized as an expense as the related service is rendered by employees.

Post Employment Benefits

Defined Benefit Plan : The cost of providing benefit like gratuity is determined using the actuarial valuation using the projected unit credit method carried out as at the balance sheet date. Actuarial gain or loss are recognised immediately in the Profit or Loss Account or Other comprehensive income.

All expenses represented by current service cost, past service cost, if any, and net interest expense / (income) on the net defined benefit liability / (asset) are recognised in the Statement of Profit and Loss. Remeasurements of the net defined benefit liability / (asset) comprising actuarial gains and losses are recognised immediately in Other Comprehensive Income (OCI).

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in the Statement of Profit and Loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

Other long term employment benefits

Compensated absences : Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the defined benefit obligation at the balance sheet date as determined by an independent actuary based on projected unit credit method. The discount rates used for determining the present value of the obligation under other long term employment benefits plan, are based on the market yields on Government securities as at the balance sheet date.

Recent Accounting Developments

a) Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial Statements.

b) Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its financial statements.

c) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.

*Details of security

Loan from M/s. Julius Baer Capital (India) Private Limited

The aforesaid loan secured against pledge of approved securities offered by M/s.Sanatan Financial Advisory Services Private Limited & M/s. Chartered Finance & Leasing Limited HDFC Bank Limited

Bank Overdraft facility secured against fixed deposits of Rs. 105 Crores offered by M/s.Sanatan Financial Advisory Services Private Limited and the sanctioned limit of overdraft facility is Rs.100 Crores Federal Bank

Bank Overdraft facility secured against fixed deposits of Rs. 50 Crores offered by M/s.Sanatan Financial Advisory Services Private Limited and the sanctioned limit of Overdraft facility is Rs.45 Crore

17.1 Terms/rights attached to equity shares of Rs 10/- each fully paid up

The Company has one class of equity shares having par value of Rs.10 per share. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll are in proportion to his share of the paid-up equity capital of the Company. Voting rights cannot be excercised in respect of shares on which any call or other sums presently payable have not been paid.

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

17.2 The Company during the five years immediately preceeding the reporting date, has not

(a) alloted any shares pursuant to contract without payment being received in cash ;

(b) alloted any shares as bonus shares; and

(c ) bought back any of its shares/securities; and

Nature & Purpose of reserves

A. Statutory reserve (created pursuant to Section 45-IC of the Reserve Bank of India Act, 1934)

Statutory reserve represents the Reserve Fund created under section 45-IC of the Reserve Bank of India Act, 1934. The Company is required to transfer a sum not less than twenty percent of its net profit every year as disclosed in the statement of profit and loss. The statutory reserve can be utilized for the purposes as may be specified by the Reserve Bank of India from time to time.

B. Retained earnings

Retained earnings represents total of all profits retained since Company’s inception. Retained earnings are credited with current year profits, reduced by losses, if any, dividend payouts, transfers to General reserve or any such other appropriations to specific reserves.

C. Capital reserve

Capital reserve has been created to set aside gains of capital nature from amalgamation and merger. It is utilised in accordance with the provisions of the Companies Act, 2013.

30 Employee benefits - post employment benefit plans

A. Defined contribution plans

The Company makes provident fund and employee state insurance scheme contributions which are defined contribution plans, for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

B. Defined benefit plans Gratuity

The Company operates a defined benefit plan (the Gratuity plan) covering eligible employees. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age/ resignation date.

The defined benefit plans expose the Company to risks such as Actuarial risk, Investment risk, Liquidity risk, Market risk, Legislative risk. These are discussed as follows:

Actuarial risk: It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons: Adverse salary growth experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption then the gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption then the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

Liquidity risk: Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cash flows.

Market risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in defined benefit obligation of the plan benefits and vice versa. This assumption depends on the yields on the government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

Legislative risk: Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the labour laws, thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the defined benefit obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

The sensitivity analysis have been determined based on reasonably possible changes in the respective assumptions occurring at the end of the reporting year, holding all other variables constant. The sensitivity analysis presented above may not be representative of the actual change in the Projected Benefit Obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the Projected Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting year, which is the same method as applied in calculating the projected benefit obligation as recognised in the Balance Sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

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

(i) Discount rate risk:

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the ultimate cost of providing the above benefit thereby increasing the value of the liability.

(ii) Demographic risk:

In the valuation of the liability, certain demographic (mortality and attrition rates) assumptions are made. The Company is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing an increase in the benefit cost.

(iii) Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

ii. Fair Valuation Techniques

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

The fair value of cash and cash equivalents, other financial assets, other financial liabilities and assets approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the financial statements approximate their fair values.

iii. Fair value hierarchy

This section explains the basis of estimates made in determining the fair values of the financial instruments except investment in subsidiary that are :-

a. recognised and measured at fair value and

b. measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the Accounting Standard, which are explained herein below.

Valuation principles

Fair value 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 a valuation technique.

In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained below:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets. Quotes would include rates/values/valuation references published periodically by BSE, NSE etc. basis which trades take place in a linked or unlinked active market. This includes traded bonds and mutual funds, as the case may be, that have quoted price/rate/value. Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data (either directly as prices or indirectly derived from prices) and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

36 FINANCIAL RISK MANAGEMENT

The Company’s activities expose it to credit risk, liquidity risk and market risk (i.e. Foreign currency risk, interest rate risk & Price risk).

i. Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s loans advances and other financial assets. The carrying amount of financial assets represents the maximum credit exposure.

Credit Risk Management

a) Credit risk from loans & other financial assets have always been managed by the Company through credit approvals and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company has adopted expected lifetime credit loss model to assess the impairment loss, and is positive of the realisibility of the Loans and other financial asset.

b) The Company holds bank balances of '' 13,685.55 (in 000)'' at 31 March 2023 (31 March 2022: 12,116.42 (in 000)'' ). The credit worthiness of such banks is evaluated by the management on an ongoing basis and is considered to be good.

ii. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as equity price, interest rates etc.) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices and relevance of market risk are as follows:-

(a) Interest rate risk

Interest rate risk is the fair value of future cash flows of a financial instrument which fluctuates because of changes in the market interest rates. Since the Company does not have any financial assets or financial liabilities bearing floating interest rates, any change in interest rates at the reporting date would not have any significant impact on the financial statements of the Company.

(b) Foreign currency risk

Foreign Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.The Company operates in only one currency INR and accordingly is not exposed to Foreign Currency Risk

iii. Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

37 CAPITAL MANAGEMENT

Objectives, policies and processes of capital management

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The cash surpluses are currently invested in loan & equity instruments depending on economic conditions in line with Loan & investment policy set by the Management. Safety of capital is of prime importance to ensure availability of capital for operations. Investment objective is to provide safety and adequate return on the surplus funds.

39 Micro, small and medium enterprises

There are no Micro, Small & Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March 2023. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

40 Events after reporting date

There have been no events after the reporting date that require disclosure in these financial statements.

41 Other statutory information

a) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

b) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

d) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

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

e) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

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

g) The Company is not declared wilful defaulter by and bank or financials institution or lender during the year.

h) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

i) The Company does not have any immovable property during the financial year.

j) The company has not revalued its property, plant and equipment during the financial year.

k) The Company has not availed borrowings from banks or financial institutions on the basis of security of current assets during the year.

l) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

m) The company has not entered into any scheme of arrangement which has been approved by the competent authority in terms of section 230 to 237 of the Companies Act, 2013 which has an accounting impact on financial year.

42 According to Para 16 of Master Direction DNBR. PD. 007/03.10.119/2016-17 of Non-Banking Financial Company - Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, a non-banking financial company not accepting/holding public deposits having total assets of Rs. 500 crore and above in aggregate as shown in the last audited balance sheet of multiple NBFC''s in a group is required to be classified as ''''Systemically important non-deposit taking nonbanking financial company (NBFC-ND-SI)".

As per the last audited financial statements of the group, the total assets of the Company in aggregate exceeded Rs. 500 crores. As a result, MKVentures Capital Limited ("the Company") shall be classified as NBFC-ND-SI and accordingly the directions of Systemically Important Non-Deposit taking Company and Deposit taking Company shall be applicable to it w.e.f .01-04-2023

43 . Balance Sheet Disclosures as required under Master Direction - Non-Banking Financial Company - Systemically Important

Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and other RBI notification*

*Amounts included herein are based on current and previous year financials, as per Ind AS

(M) Movement of NPA’s- Rs Nil (excluding provision for standard assets)

(N) Overseas Assets and off- balance sheet SPVs sponsored (which are required to be consolidated as per accounting norms)

(i) Overseas Assets

The Company does not have any overseas assets as at March 31, 2023 and March 31, 2022

(ii) Off- Balance sheet SPVs sponsored (which are required to be consolidated as per accounting norms

The Company does not have any exposure to off balance sheet SPVs sponsored as at March 31, 2023 and March 31,2022

(O) Disclosure of complaints

The Company does not have any customer interface and thus there are no complaints received by the NBFCs from customers during the year ended March 31, 2023 and March 31, 2022.

47 Figures have been rounded off to nearest thousands, unless otherwise stated.

As per our report of even date attached

For ARSK & Associates For and on behalf of the Board of Directors

Chartered Accountants

Firm’s Registration No: 315082E sd/- sd/-

Madhusudan Murlidhar Kela Sanjay Malpani

sd/- Manging Director Director

CA. Ravindra Khandelwal DIN : 05109767 DIN: 07772768

Partner

Membership No: 054615

sd/- sd/-

Place : Kolkata Rashmee Purushottam Mehta Sanket Dilip Rathi

Date : 30.05.2023 Chief Financial Officer Company Secretary

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Mar 31, 2015

1) Details of shares held by the holding compary, the ultimate holding company, their subsidiaries and associates: NIL 5) No dividend has beer proposed by the Board of Directors for the year ended 31 st March, 2015

2) The Company has only one class of shares referred to as equity shares having par value of Rs. 10/-; each holder of equity shares is entitled to one vote per share.

3) No dividend has been proposed by the Board of Directors for the year ended 31st March, 2015

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

5) Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date: NIL

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Mar 31, 2013

(A) The Company is contingently liable to HDFC Bank, Fort Branch for Rs. Nil (PY Rs. 400.00 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. Nil (PY Rs. 87.50 Lakhs) since the Bank . Guarantees were surrendered during the yeai.

The Company was contingently liable to the Directors for the collateral personal guarantee given by them for the same in the previous year and is not contingently liable to them as on 31st March, 2013.

(B) The Company is contingently liable on account of Gratuity up to 31/03/2013 is Rs. 1,675,016 /- (PY Rs. 1,904,856/-) Other benefits like leave encashment are accounted on accrual basis.

(C) The Company is contingently liable to Director for the Guarantee given to HDFC Bank for Overdraft Facility upto Rs. Nil (PY Rs. 3.00 Cr) since the Overdraft Facility was surrendered during the year.

(D) Fixed Deposit of Rs. Nil (PY Rs 62.50 Lakhs) pledged with the bank for availing Short Term Loan (Current Year Nil, PY Rs. 125.00 Lakhs)

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Mar 31, 2012

Iktib Securities and Investment Ltd Notes forming part of the financial statements

1) In the opinion of the Management, the Current Assets and Loans and Advances arenot less than the value stated, if realised in the ordinary course of business. .

2) Figures of the previous year have been regrouped and recast wherever necessary so as to make them comparable with those of the current year.

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

5) (A) The Company is contingently liable to HDFC Bank, Fort Branch for Rs. 400,00 Lakhs (PY Rs. 425.00 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. 87.50 Lakhs (PYRs. 106.25 Lakhs).

The Company is contingently liable to the Directors for the collateral personal guarantee given by th§m for the same.

(B) The Company is contingently liable on account of Gratuity up to 31/03/2012 is Rs. 1,904,856/-(PY Rs. 1,838,044/-) ' Other benefits like leave encashment are accounted on accrual basis.

(C) 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).

(D) Fixed Deposit of Rs 62.50 Lacs pledge with the bank for availing Short Term Loan of Rs125.00 Lacs (P.Y. Rs 75.00 Lacs)

6) Overdraft Account with the bank is secured by personal guarantee of Directors as well as the flat belonging to Director.

7) Related Party Disclosures are as per Annexure 'A'.

8) Other Information pursuant to Schedule VI of the Companies Act, 1956 is either Nil or Not Applicable.

3) Details of shares held by the holding company, the ultimate holding company, their subsidiaries and associates. NIL

4) The Company has only one class of shares referred to as equity shares having par value of Rs. 10/-; each holder of equity shares is entitled to one vote per share.

5) The dividend proposed by the Board of Directores is subject to the approval of the shareholders in the Annual General Meeting except in case of intreim dividend.

6) In event of fiquidation of the company the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after the distribution of all preferential amounts, in proportion to the number of equity shares held by shareholders.

7) Details of shares held by each shareholder holding more than 5% shares:

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Mar 31, 2011

1) Debts due by Directors: Rs.Nil (PY Rs. Nil); Maximum Balance due by directors during the year Rs. 12,602,173/- (PYRs. 16,825,413/-)

2) Debts due from Companies under the same management: Oasis Securities Ltd. Rs.Nil (PY Rs. Nil)

Maximum Balance due during the year from the above Companies Oasis Securities Ltd Rs.8,456,029/- (PY Rs. 4,471,923/-)

3) Overdraft Account with the bank is secured by personal guarantee of Directors as well as the flat belonging to Director.

4) Related Party Disclosures are as per Annexure 'A'.

5) Other Information pursuant to Schedule VI of the Companies Act, 1956 is either Nil or Not Applicable.

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Mar 31, 2010

1) The Company has no outstanding dues to small-scale industrial undertakings as on 31st March, 2010

2) (A) The Company is contingently liable to HDFC Bank. Fort Branch for Rs. 175 Lakhs (PY Rs. 200.00 Lakhs) towards

Bank Guarantees issued by the bank in favour of The Bombay Stock Exchange, against which Bank is holding Fixed

Deposits of Rs. 87.50 Lakhs (PY Rs. 100.00 Lakhs).

The Company is contingently liable to the Directors for the collateral personal guarantee given by them for the same. ( B ) The Company is conBngendy liable on account of Gratuity up to 31/03/2010 is Rs. 841,629 /- (PY Rs. 736,425/-)

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 450.00 Lakhs (PY Rs. 450.00 Lakhs).

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

3) Debts due by Directors: Rs. Nil (PY Rs, 1,281,103); Maximum Balance due by directors during the year Rs.16,825,413/- (PY Rs. 13,438,054/-)

4) Debts due from Companies under the same management: Oasis Securities Ltd. Rs.Nil (PY Rs. Nil)

Maximum Balance due during the year from the above Companies Oasis Securities Ltd Rs. 4,471,923 /- (PY Rs. 3,434,539/-)

5) During the year remuneration of Rs.706,880/- (PY Rs. 2,901,010/-) has been paid to the Wholetime Directors along with allowances of Rs. 19,200 /- (PY Rs. 18,400) and me same is within the limits prescribed in the Companies Act. However the same is yet to be approved by general body as per schedule - XIII

6) Overdraft Account with the bank is second personal guarantee of Directors as well as flat beloning to Director.

7) Related Party Disclosures are as per Annexure A.

8) Other Information pursuant to Schedule VI of the Companies Act, 19S6 is either Nil or Not Applicable.