Accounting Policies of Rikhav Securities Ltd. Company

Mar 31, 2025

A. Significant Accounting Policies:

1. Company Overview

Rikhav Securities Limited is one of the professionally
managed Shares & Stock brokers. The company''s
objective is to be a leader in providing a full-service
brokerage house - to provide comprehensive advisory
services to the client and to offer complete management
of their financial planning requirements. Our major
business focus has been on the development of
Arbitration, HNI clients & Retail clients. Currently, one
of the Company''s key strengths is the diverse portfolios
held by its board of directors - some of which include the
Cash and Derivatives side of the Capital Market, investing
in IPOs, etc.

The company has modernized computerized operations
with the state-of-art technology. Our clients also have
access to Internet based client-trading services in
the equities and derivatives segment. Our group of
professionals does ensure the best available services
for trading, depository, online Back office etc.We believe
''Research Delivers and Research Differentiates''.

2. General:

The financial statements have been prepared in conformity
with generally accepted accounting principles to comply
in all material respects with the notified Accounting
Standards (AS) under Companies Accounting Standard
Rules, 2015, as amended, the relevant provisions of the
Companies Act, 2013 (the Act).

The financial statements have been prepared under
the historical cost convention on an accrual basis. The
accounting policies have been consistently applied
by the Company and are consistent with those used in
the previous year except for those that are specifically
disclosed for the change in policies. The method of
accounting followed is mercantile basis.

3. Use of Estimates:

The preparation of financial statements in conformity
with generally accepted accounting principles requires
management to make estimates and assumptions that
affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during
the reporting year end. Although these estimates were
based upon management''s best knowledge of current
events and actions, actual results could differ from these
estimates. Any revisions to the accounting estimates are
recognized prospectively in the current and future years.

4. Revenue Recognition:

Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Company and
the revenue can be reliably measured.

Revenue recognition in the form of commission &
brokerages for sub brokering with BRLMs for various
IPO''s is considered in the year in which the IPO''s are
serviced.

Interest Income is treated to accrue on timely basis.

Lending Premium / Borrowing charges from the trades in
Securities Lending & Borrowing Market (SLBM) segment
is recognized in the year in which the contract for lending
/ borrowing is entered into.

5. Property, Plant & Equipments Intangible Assets:

Property, Plant & Equipment& Intangible Assets are stated
at acquisition cost less accumulated depreciation, if any.

6. Depreciation:

Depreciation on tangible assets is provided on the
written-down value method over the useful lives of
assets as per Part C of Schedule II of the Companies
Act, 2013. Depreciation for assets purchased / sold
during a period is proportionately charged. Intangible
assets are amortized over their respective individual
estimated useful lives, commencing from the date the
asset is available to the Company for its use as per AS
26 Intangible Assets. The carrying value of the asset is
depreciated over the remaining useful of the asset as
per Schedule II of the Companies Act, 2013. The carrying
value of the asset after retaining the residual value is
recognized in the opening balance of retained earnings
where the remaining useful life of the asset is ''Nil''.

7. Investments:

During the financial year ended 31 March, 2025 the
company has decided to change the classification of
equity shares, these equity shares has been previously
held as Non Current Investments and were valued at
cost. Pursuant to a strategic review and change in the
Business Model, the management has decided to re¬
classify these equity shares as Stock in Trade, reflecting
the company intension to hold such shares for trading
purpose. Consequently, these financial asset has been
now been classified as inventory under current assests
and measured at fair value. This change has been effected
prospectively from 3rd October,2024 in accordance with
AS 2 - "Inventories". This change provides more relevant

and reliable information regarding the company financial
position and performance, aligning the presentation with
revised business strategy of active trading in listed equity
instrument.

8. Shares, Stocks & Securities under SLBM:

The Company has recognized current liability (refer note
no. 5) for the trades executed for sale of shares in the spot
market through borrowing it from the SLBM segment and
has recognized the gain / loss on account of change in
Fair Value of the obligation on valuation date.

9. Current Assets, Loans & Advances

Loans and Advances are stated at the value if realized in
the ordinary course of business. Irrecoverable amounts, if
any are accounted as bad debts and \ or provided for as
per management''s judgment or only upon final settlement
of accounts with the parties.

10. Provision for taxation

Provision for income tax has been made in accordance
with normal provisions of Income Tax Act, 1961. The
deferred tax for timing differences between the book and
tax profits for the year is accounted for, using tax rates
and laws that have been substantively enacted as of the
balance sheet date.

11. Inventories

Inventory is valued at cost or market value, whichever is
lower.

During the financial year ended 31 March, 2025, the
company has changed classification of equity shares, the
shares were previously held as non-current Investments
and valued at cost. The company has reclassified these
equity shares in to stock in trade. Inventory is valued

at cost or market value, whichever is lower. Due to this
reclassification there has been fair valuation loss as
follows

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Mar 31, 2024

A. Significant Accounting Policies:

1. Company Overview

Rikliav Securities Limited is one of the professionally managed Shares & Stock
brokers. The company''s objective is to be a leader in providing a full-service
brokerage house - to provide comprehensive advisory services to the client and to
offer complete management of their financial planning requirements. Our major
business focus has been on the development of Arbitration, HNI clients & Retail
clients. Currently, one of the Company''s key strengths is the diverse portfolios held
by its board of directors - some of which include the Cash and Derivatives side of
the Capital Market, investing in IPOs, etc.

The company has modernized computerized operations with the state-of-art
technology. Our clients also have access to Internet based client-trading services in
the equities and derivatives segment. Our group of professionals does ensure the
best available services for trading, depository, online Back office etc. We believe
‘Research Delivers and Research Differentiates''.

2. General:

The financial statements have been prepared in conformity with generally accepted
accounting principles to comply in all material respects with the notified Accounting
Standards (AS) under Companies Accounting Standard Rules, 2015, as amended, the
relevant provisions of the Companies Act, 2013 (the Act).

The financial statements have been prepared under the historical cost convention
on an accrual basis. The accounting policies have been consistently applied by the
Company and are consistent with those used in the previous year except for those
that are specifically disclosed for the change in policies. The method of accounting
followed is mercantile basis.

3. Use of Estimates:

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and the results of operations during
the reporting year end. Although these estimates were based upon management''s

best knowledge of current events and actions, actual results could differ from these
estimates. Any revisions to the accounting estimates are recognized prospectively in
the current and future years.

4. Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits
will flow to the Company and the revenue can be reliably measured.

Revenue recognition in the form of commission & brokerages for sub brokering with
BRLMs for various IPO''s is considered in the year in which the IPO’s areserviced.
Interest Income is treated to accrue on timely basis.

Lending Premium / Borrowing charges from the trades in Securities Lending &
Borrowing Market (SLBM) segment is recognized in the year in which the contract
for lending / borrowing is entered into.

5. Property, Plant & Equipment& Intangible Assets:

Property, Plant & Equipments Intangible Assets are stated at acquisition cost less
accumulated depreciation, if any.

6. Depreciation:

Depreciation on tangible assets is provided on the written-down value method over
the useful lives of assets as per Part C of Schedule 11 of the Companies Act, 2013.
Depreciation for assets purchased / sold during a period is proportionately charged.
Intangible assets are amortized over their respective individual estimated useful
lives, commencing from the date the asset is available to the Company for its use as
per AS 26 Intangible Assets. The carrying value of the asset is depreciated over the
remaining useful of the asset as per Schedule II of dae Companies Act, 2013. The
carrying value of the asset after retaining the residual value is recognized in the
opening balance of retained earnings where the remaining useful life of the asset is
''Nil''.

7. Investments:

Investments are either classified as current or non-current based on Management''s
intention at the time of purchase.Current Investments are carried at cost.Long term
Investments are carried at cost less provisions recorded to recognize any decline,
other than temporary, in the carrying value of each investment.

8. Shares. Stocks & Securities under SLBM:

The Company has recognized current liability (refer note no. 5) for the trades
executed for sale of shares in the spot market through borrowing it from the SLBM
segment and has recognized the gain / loss on account of change in Fair Value of the
obligation on valuation date.

9. Current Assets, Loans & Advances

Loans and Advances are stated at the value if realized in the ordinary course of
business. Irrecoverable amounts, if any are accounted as bad debts and \ or
provided for as per management’s judgment or only upon final settlement of
accounts with the parties.