Accounting Policies of SPA Capital Services Ltd. Company

Mar 31, 2025

1 Company overview and Significant Accounting Policies

1.1 Corporate Information

SPA Capital Services Limited (“the Company”) is a public limited company incorporated on July 20, 1984 under the
provisions of the Companies Act, 1956. The Company is engaged in providing Wealth Management and Financial
Advisory services to institutions, corporate and individuals. The Company is also registered with Reserve Bank of India as
a Non-Deposit Accepting Non Banking Financial Institution.

2.1 Basis of Preparation of Financial Statements

These financial statements have been prepared in accordance with Indian Accounting Standards (IndAS), under the
historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values,
the provisions of the Companies Act, 2013 (''the Act¹) (to the extent notified) and guidelines issued by the Securities and
Exchange Board of India (SEBI). The IndAS are prescribed under Section 133 of the Companies Act read with Rule 3 of
the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair
value is the price 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.

All assets and liabilities are classified as Current and Non-Current as per company’s normal operating cycle of 12 months
which is based on the nature of business of the Company. Current Assets do not Include elements which are not expected
to be realised within one year and Current Liabilities do not include items which are due after one year, the period of one
year being reckoned from the reporting date.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted
or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Rounding off

All amounts in the financial statement and accompanying notes are presented in Lacs and have been rounded-off to two
decimal place unless stated otherwise.

2.2 Use of Estimates and Judgement

The preparation of financial statements requires management to exercise judgement and make estimates and
assumptions that affects the reported amounts of revenue, expenses, assets and liabilities. These estimates and
assumptions are based on historical experience and various other factors that are believed to be reasonable under the
circumstances. Actual results may differ from these estimates. These estimates and underlying assumptions are reviewed
on a periodic basis. Revisions to accounting estimates are recognised in the period in which the results are
known/materialise.

The areas involving significant estimates and judgement include determination of useful life of Property, Plant and
Equipment (Refer note 1.4), measurement of defined benefit obligations, and recognition of deferred tax assets/liabilities
(Refer note 5).

2.3 Property. Plant and Equipment

Property, Plant and Equipment are stated at cost of acquisition or construction less accumulated depreciation and
impairment, if any. For this purpose, cost includes deemed cost which represents the carrying value of Property, Plant
and Equipment recognised as at 1st April, 2016 measured as per the previous GAAP.

Cost is inclusive of inward freight, duties and taxes and incidental expenses related to acquisition, In respect of major
projects involving construction, related pre-operational expenses form part of the value of assets capitalised. Expenses
capitalised also include applicable borrowing costs for qualifying assets, if any. All Up-gradation / enhancements are
charged off as revenue expenditure unless they bring similar significant additional benefits

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of asset. Any gain or loss arising on the disposal or retirement of an item of
property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the
asset and is recognised in the Statement of Profit and Loss.

2.4 Intangible Assets

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over
their respective individual estimated useful lives on a straight-line basis, from the date they are available for use. The
estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of
obsolescence, demand, competition, and other economic factors (such as the stability of the Industry, and known
technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows
from the asset.

2.5 Investments :

Investments are classified as Current or Non-Current based upon management intent at the time of acquisition.
Investments that are intended to be held for not more than one year from the date of acquisition are classified as Current
Investments. All other investments are classified as Non-Current Investments.

2.6 Inventories

The shares and securities acquired with the intention of trading are considered as Stock in trade and disclosed as Current
Assets. The stock in trade of securities is valued at Sower of aggregate cost or aggregate market price / aggregate net
asset value in case of unquoted, as per the provisions of ICDS, The cost is determined on First In First Out (FIFO) basis.

2.7 Financial Instruments, Financial Assets, Financial Liabilities and Equity Instruments
Recognition

Financial assets include Investments, Trade receivables, Advances, Security Deposits, Cash and Cash Equivalents. Such
assets are initially recognised at transaction price when the Company becomes party to contractual obligations. The
transaction price includes transaction costs unless the asset is being fair valued through the Statement of Profit and Loss.

Classification

Management determines the classification of an asset at initial recognition depending on the purpose for which the assets
were acquired. The subsequent measurement of financial assets depends on such classification.

Financial assets are classified as those measured at:

Amortised cost

Where the financial assets are held solely for collection of cash flows arising from payments of principal and/ or interest.
Fair Value Through Other Comprehensive Income (FVTOCI)

Where the financial assets are held not only for collection of cash flows arising from payments of principal and interest but
also from the sale of such assets, Such assets are subsequently measured at fair value, with unrealised gains and losses
arising from changes in the fair value being recognised in Other Comprehensive Income.

Fair Value Through Profit or Loss (FVTPL)

Where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale
decisions based on the fair value of such assets. Such assets are subsequently measured at fair value, with unrealised
gains and losses arising from changes in the fair value being recognised in the Statement of Profit and Loss in the period
in which they arise.

Measurement

Trade receivables, Advances, Security Deposits, Cash and cash equivalents etc. are classified for measurement at
amortised cost while investments may fall under any of the aforesaid classes. However, in respect of particular
investments in equity instruments that would otherwise be measured at fair value through profit or loss, an irrevocable
election at initial recognition may be made to present subsequent changes in fair value through other comprehensive
income.

Impairment of Financial Assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried
amortized cost and FVOCI debt instalments. The impairment methodology applied depends on whether there has been a
significant increase in credit risk.

For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments,
which requires expected lifetime losses to be recognized from initial recognition of the receivables.

Derecognition of Financial Assets

A financial asset is derecognised only when

- The Company has transferred the rights to receive cash flows from the financial asset; or

- Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to
pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and
rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not
transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retained substantially all risks and rewards of ownership of
the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset.
Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of
continuing involvement in the financial asset.

Income Recognition

Dividend income is recognised in the Statement of Profit and Loss when the right to receive dividend is established.

Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset
and settle the liability simultaneously The legally enforceable right must not be contingent on future events and must be
enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the
counterparty,

Financial Liabilities

I) Trade Payables and Other Financial Liabilities

Trade Payables and Other Financial Liabilities are initially recognised at the value of the respective contractual
obligations. Trade and other payables represent liabilities for goods and services provided to the Company prior to the
end of financial year which are unpaid, The amounts are unsecured and presented as current liabilities unless payment is
not due within 12 months after the reporting period.

if) Borrowings

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or
expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to
another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized
in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term
loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand
on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and
before Ihe approval of the financial statements for issue, not to demand payment as a consequence of the breach.

Equity Instruments

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in equity as deduction, net of tax, from the proceeds,

2.8 Revenue Recognition

(a) Sale of Shares & Securities

Revenue from sales is recognized at the completion of each settlement of the capital market segment of the Stock

In respect of non-delivery based transactions in capital market segment, the profit/loss is accounted for at the end of each

settlement

Revenue from derivative market segment:-

- in respect of settled contracts the difference between the transaction price and settlement price is recognized in the
Statement of Profit and Loss; and

- In respect or open interests as on the balance sheet date, the derivatives are valued at fair value, and the difference
between the fair value and the transaction price, is recognized in the Statement of Profit and Loss.

Income from Dividend is recognized when the right to receive payment is established.

(b) Other Income

Gain on Sale of Investment Is recorded on transfer of title from the Company and is determined as the difference between
the sale price and carrying value of the investment.

The revenue from Interest & Other Income is recognized on accrual basis as part of Other Income in the Statement of
Profit and Loss.

2.9 Employee Benefits

a. Short-term Obligations

Liabilities for wages, salaries and bonus, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognised in respect of
employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet

b. Post-Employment Obligations

The Company operates the following post-employment schemes:

- defined benefit plans for gratuity, and

- defined contribution plans for provident fund.

Defined Benefit Plans

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the
fair value of plan assets. This cost is included in employee benefit expense In the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in the balance sheet. Changes in the present value of the defined
benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past
service cost,

Defined Contribution Plans

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The
Company has no further payment obligations once the contributions have been paid. The contributions are accounted for
as defined contribution plans and the contributions are recognised as employee benefit expense when they are due.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is
available.

2.10 Impairment of Non-Financial Assets

Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual
asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In
such cases, the recoverable amount is determined for the cash generating unit to which the asset belongs.

2.11 Borrowing Costs

Borrowings are measured at amortized cost. Fees paid on the establishment of loan facilities are recognized as
transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. To the
extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a
prepayment for liquidity services and amortized over the period of the facility to which it relates.

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended
use or sale. Qualifying assets are assets that necessarily lake a substantial period of time to get ready for their intended
use or sale Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation. Other borrowing costs are expensed in
the period in which they are incurred.

2.12 Income Tax

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the
year. Current and deferred tax are recognised in the Statement of Profit and Loss, except when they relate to items that
are recognised in Other Comprehensive Income or directly in equity, in which case, the current and deferred tax are also
recognised in Other Comprehensive Income or directly in equity, respectively.

(I) Current tax:

Current tax expenses are accounted in the same period to which the revenue and expenses relate. Provision for current
income tax is made for the tax liability payable on taxable income after considering tax allowances, deductions and
exemptions determined in accordance with the applicable tax rates and the prevailing tax laws.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised
_amounts and there is an intention to settle the asset and the liability on a net basis._

(II) Deferred tax:

Deferred income tax is recognised using the balance sheet approach. Deferred tax assets and liabilities are recognised
for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying
amount in financial statements, except when the deferred tax arises from the initial recognition of goodwill, an asset or
liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the
time of the transaction.

Deferred income tax assets are recognised to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be
utilised.

Deferred tax liabilities are generally recognised for all taxable temporary differences except in respect of taxable
temporary differences associated with investments in subsidiaries, associates and interests in joint ventures where the
timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not
reverse in the foreseeable future.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantially enacted
by the end of the reporting period.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends
to settle its current tax assets and liabilities on a net basis.

Minimum Alternative Tax (“MAT") credit forming part of deferred tax assets is recognised as an asset only when and to
the extent there is convincing evidence that the Company will pay normal income tax during the specified period, Such
asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the
extent there is no longer a reasonable certainty to the effect that the Company will pay normal income tax during the
specified period.

2.13 Ind AS 12 Appendix C, Income Tax

On March 30, 2019, the Ministry of Corporate Affairs has notified Ind AS 12 Appendix C, Uncertainty over Income Tax
Treatments which is to be applied while performing the determination of taxable profit (or loss), tax bases, unused tax
losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind AS 12.
According to the appendix, companies need to determine the probability of the relevant tax authority accepting each tax
treatment, or group of tax treatments, that the companies have used or plan to use in their income tax filing which has to
be considered to compute the most likely amount or the expected value of the tax treatment when determining taxable
profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates. The standard permits two possible
methods of transition - i) Full retrospective approach - Under this approach, Appendix C will be applied retrospectively to
each prior reporting period presented in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors, without using hindsight and ii) Retrospectively with cumulative effect of initially applying Appendix C
recognized by adjusting equity on initial application, without adjusting comparatives. The effective date for adoption of Ind
AS 12 Appendix C is annual periods beginning on or after April 1, 2019, The Company will adopt the standard on April 1,
2019 and has decided to adjust the cumulative effect in equity on the date of initial application i.e. April 1, 2019 without
adjusting comparatives. The effect on adoption of Ind AS 12 Appendix C would be insignificant in the standalone financial
statements.

2.14 Earnings Per Share

a. Basic Earnings Per Share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

* by the weighted average number of equity shares outstanding during the financial year

b. Diluted Earnings Per Share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after-income tax effect of interest and other financing costs associated with dilutive potential equity shares, and the
weighted average number of additional equity shares that would have been outstanding assuming the conversion of all
dilutive potential equity shares.

2.15 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/loss for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and
item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing
and financing activities of the Company are segregated.

2.16 Events occurring after the Balance Sheet date

There have been no material events other than disclosed in the financial statements after reporting date which would
require disclosure or adjustments to the financial statements as of and for the year ended 31 March 2025,

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Mar 31, 2024

¹ Company overview and Significant Accounting Policies

SPA Capital Services Limited (“the Company") is a public limited company incorporated on July 20, 1984 under the provisions of the Companies Act, 1956. The Company is engaged in providing Wealth Management and Financial Advisory services to institutions corporate and individuals. The Company is also registered with Reserve Bank of India as a Non-Deposit Accepting Non Banking Financial Institution. *

2.1 Basis of Preparation of Financial Statements

These financial statements have been prepared in accordance with Indian Accounting Standards (IndAS), under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (''the Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The IndAS are prescribed under Section 133 of the Companies Act read .with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services Fair value is the pnce 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.

All assets and liabilities are classified as Current and Non-Current as per company''s normal operating cycle of 12 months which is based on the nature of business of the Company. Current Assets do not include elements which are not expected to be realised within one year and Current Liabilities do not include items which are due after one year, the period of one year being reckoned from the reporting date.

Accounting policies have been consistently applied except where a newly issued accounting standard is Initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Rounding off

All amounts in the financial statement and accompanying notes are presented in Lacs and have been rounded-off to two decimal place unless stated otherwise.

2.2 Use of Estimates and Judgement

The preparation of financial statements requires management to exercise judgement and make estimates and assumptions that affects the reported amounts of revenue, expenses, assets and liabilities. These estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. These estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognised in the period in which the results are known/materialise.

The areas involving significant estimates and judgement include determination of useful life of Property, Plant and Equipment (Refer note 1.4), measurement of defined benefit obligations, and recognition of deferred tax assets/Iiabilities (Refer note 5).

2-3 Property. Plant and Equipment

Property. Plant and Equipment are stated at cost of acquisition or construction less accumulated depreciation and impairment if any For ^is purpose, cost includes deemed cost which represents the carrying value of Property, Plant and Equipment recognised as at 1st Apnl, 2016 measured as per the previous GAAP.

Cost is inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalised. Expenses capitalised also include applicable borrowing costs for qualifying assets, if any All Upgradation / enhancements are charged off as revenue expenditure unless they bring similar significant additional benefits.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement or Profit and Loss.

The useful lives have been determined based on technical evaluation done by the expert''s which are in line those specified by Scheduie II to the Companies Act 2013 The residual values are not more than 5% of the original cost of the asset. The depreciation n ethods, assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under Other Non-Current Assets and the cost of assets not put to use before such date is disclosed under ''Capital work-in-progress''. ^y

The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss.

2.4 Intangible Assets

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.

2.5 Investments :

Investments are classified as Current or Non-Current based upon management intent at the time of acquisition. Investments that are intended to be held for not more than one year from the date of acquisition are classified as Current Investments. All other investments are classified as Non-Current Investments.

2.6 Inventories

The shares and securities acquired with the intention of trading are considered as Stock in trade and disclosed as Current Assets. The stock in trade of securities is valued at lower of aggregate cost or aggregate market price / aggregate net asset value in case of unquoted, as per the provisions of ICDS. The cost is determined on First In First Out (FIFO) basis.

2.7 Financial Instruments, Financial Assets. Financial Liabilities and Equity Instruments Recognition

Financial assets include Investments, Trade receivables, Advances, Security Deposits, Cash and Cash Equivalents. Such assets are initially recognised at transaction price when the Company becomes party to contractual obligations. The transaction price indudes transaction costs unless the asset is being fair valued through the Statement of Profit and Loss.

Classification

Management determines the classification of an asset at initial recognition depending on the purpose for which the assets were acquired. The subsequent measurement of financial assets depends on such classification.

Financial assets are classified as those measured at:

Amortised cost

Where the financial assets are held solely for collection of cash flows arising from payments of principal and/ or interest.

Fair Value Through Other Comprehensive Income (FVTOCII

Where the finandal assets are held not only for collection of cash flows arising from payments of principal and interest but also from the sale of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in Other Comprehensive Income.

Fair Value Through Profit or Loss (FVTPL)

Where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in the Statement of Profit and Loss in the period in which they arise.

Measurement

Trade receivables, Advances, Security Deposits, Cash and cash equivalents etc. are classified for measurement at amortised cost while investments may fall under any of the aforesaid classes. However, in respect of particular investments in equity instruments that would otherwise be measured at fair value through profit or loss, an irrevocable election at initial recognition may be made to present subsequent changes in fair value through other comprehensive income.

Impairment of Financial Assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried amortized cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables.

Derecognition of Financial Assets A financial asset is derecognised only when

- The Company has transferred the rights to receive cash flows from the financial asset; or

- Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred . substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

r r r * T transferred a financial asset nor retained substantially all risks and rewards of ownership of the financial

®®*®^,^th?”^na.^{nc,al a}f^{et 13} derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset

Income Recognition

Dividend income is recognised in the Statement of Profit and Loss when the right to receive dividend is established.

Offsetting Financial Instruments

^F|nanci^a| assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable nght to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

Financial Liabilities

i) Trade Payables and Other Financial Liabilities

Trade Payables and Other Financial Liabilities are initially recognised at the value of the respective contractual obligations. Trade and other payables represent liabilities for goods and services provided to the Company prior to the end of financial year which are

unpaid. The amounts are unsecured and presented as current liabilities unless payment is not due within 12 months after the reporting penod.

ii) Borrowings

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired fhe difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at east 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

Equity Instruments

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as deduction, net of tax, from the proceeds.

2.8 Revenue Recognition

(a) Sale of Shares & Securities

Revenue from sales is recognized at the completion of each settlement of the capital market segment of the Stock Exchange settlement °'' ⁿ⁰ⁿ''^{delivery based transact,ons in} “P''*^{31 mark}et segment, the profit/loss is accounted for at the end of each

Revenue from derivative market segment

ProfitTnd^e?oss^Sand^8d °°^{ntraCtS the difference between the} transaction price and settlement price is recognized in the Statement of

- in respect of open interests as on the balance sheet date, the derivatives are valued at fair value, and the difference between the fair value and the transaction price, is recognized in the Statement of Profit and Loss.

Income from Dividend is recognized when the right to receive payment is established.

(b) Other Income

Gain on Sale of Investment is recorded on transfer of title from the Company and is determined as the difference between the sale price and carrying value of the investment.

They-evenue from Interest & Other Income is recognized on accrual basis as part of Other Income in the Statement of Profit and

2.9 Employee Benefits

a. Short-term Obligations

Liabifities for wages, salaries and bonus, including non-monetary benefits that are expected to be settled wholly within 12 months ^{of the} Penoci in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting penod and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

b. Post-Employment Obligations

The Company operates the following post-employment schemes: defined benefit plans for gratuity, and defined contribution plans for provident fund.

Defined Benefit Plans ----

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuanes using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets^ This cost is included in employee benefit expense in the statement of profit and loss. Remeasurement gains and tosses ansing from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or toss as past service cost

Defined Contribution Plans

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

2.10 Impairment of Non-Financial Assets

Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit to which the asset belongs.

2.11 Borrowing Costs

Borrowings are measured at amortized cost. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the penod of the facility to which it relates.

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. Other borrowing costs are expensed in the period in which they are incurred.

2.12 Income Tax

tncome tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred tax are recognised in the Statement of Profit and Loss, except when they relate to items that are recognised in Other Comprehensive Income or directly in equity, in which case, the current and deferred tax are also recognised in Other Comprehensive Income or directly in equity, respectively.

(i) Current tax:

Current tax expenses are accounted in the same period to which the revenue and expenses relate. Provision for current income tax is made for the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the applicable tax rates and the prevailing tax laws.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and _there is an intention to settle the asset and the liability on a net basis._

(ii) Deferred tax:

Deferred income tax is recognised using the balance sheet approach Deferred tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred tax arises from the initial recognition of goodwill, an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.

‘ⁿ.^{COme teX} !-l^{S6tS are recosnised t0 the extent that}''t is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax tosses can be utilised.

Deferred tax liabilities are generally recognised for all taxable temporary differences except in respect of taxable temporary differences associated with investments In subsidiaries, associates and interests in joint ventures where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled period ^{fea IS6d}'' ^{based 0,1 tax rates} <^and te* ^laws) that have been enacted or substantially enacted by the end of the reporting

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax labilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

2.13 Ind AS 12 Appendix C. Income Tax

On March 30, 2019, the Ministry of Corporate Affairs has notified Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments which is to be applied while performing the determination of taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind AS 12. According to the appendix, companies need to determine the probability of the relevant tax authority accepting each tax treatment, or group of tax treatments, that the companies have used or plan to use in their income tax filing which has to be considered to compute the most likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates.

The standard permits two possible methods of transition - i) Full retrospective approach - Under this approach, Appendix C will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, without using hindsight and ii) Retrospectively with cumulative effect of initially applying Appendix C recognized by adjusting equity on initial application, without adjusting comparatives. The effective date for adoption of Ind AS 12 Appendix C is annual periods beginning on or after April 1, 2019. The Company will adopt the standard on April 1, 2019 and has decided to adjust the cumulative effect in equity on the date of initial application i.e. Apnl 1, 2019 without adjusting comparatives.

The effect on adoption of Ind AS 12 Appendix C would be insignificant in the standalone financial statements.

2.14 Earnings Per Share

a. Basic Earnings Per Share

Basic earnings per share is calculated by dividing: the profit attributable to owners of the Company

by the weighted average number of equity shares outstanding during the financial year

b. Diluted Earnings Pgr..ghgrfi

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the afterincome tax effect of interest and other financing costs associated with dilutive potential equity shares, and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

2.15 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/loss for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

2.16 Events occurinq after the Balance Sheet date

There have been no material events other than disclosed in the financial statements after reporting date which would require disclosure or adjustments to the financial statements as of and for the year ended 31 March 2024.

As per our report of even date attached For and on behalf of the Board ¦''/

I i

For DHANA & ASSOCIATES SandeepJPanval Honey Mrwal

Chartered Accountants Chairnfui cum Managing Director Dire/tor .___'')

ICAI FRN : 510525C . J 7 » j DIN No 00025803 DIN Nb. 00025835

CA. Arun Khandelia ... •") cl '' \ " \

Partner Manish Kumar /'' ''bji—

Membership No.089125 \ Company Secretary f /

Place: New Delhi -—- ~\©\

Date : (CO {

UDIN : \ ycy