Notes to Accounts of Vikalp Securities Ltd.

Mar 31, 2025

O. Provisions, Contingent Liabilities and Contingent Assets

The Company recognises a provision when it has a present obligation as a result of a past event that
probably requires an outflow of the Company''s resources embodying economic benefits at the time of
settlement and a reliable estimate can be made of the amount of the obligation. The provisions are
measured at the best estimate of the amounts required to settle the present obligation as at the
balance sheet date and are not discounted to its present value.

When the company expects some or all of a provision to be reimbursed, for example, under an
insurance contract, the reimbursement is recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the Statement of
Profit and Loss net of any reimbursement.

Contingent liability is a possible obligation arising from past events, the existence of which will be
confirmed only on the occurrence or non-occurrence of one or more future uncertain events not wholly
or substantially within the control of the Company or a present obligation that arises from the 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. The company does not recognize a
contingent liability but discloses its existence in the financial statements.

When demand notices are issued by the Government Authorities and demand is disputed by the
company and it is probable that the company will not be required to settle/pay such demands then
these are classified as disputed obligations.

Contingent Assets, if any, are not recognised in the financial statements. If it becomes certain that
inflow of economic benefit will arise then such asset and the relative income are recognised in financial
statements.

P. Current/Non-Current Classifications:

The Company presents assets and liabilities in the balance sheet on the basis of their classifications into
current and non-current based on the assessment made by the management of the company.

Assets:

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for

at least twelve months after the reporting period.

All other assets are classified as non-current.

Liabilities:

A liability is treated as current when it is:

• Expected to be settled in normal operating cycle

• Held primarily for the purpose of trading

• Due to be settled within twelve months after the reporting period

• No unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period.

All other liabilities are classified as non-current.

Q. Financial Instruments, Financial Assets, Financial liabilities and Equity Instruments

The financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the relevant instrument and are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities measured at fair value through profit or loss) are
added to or deducted from the fair value on initial recognition of financial assets or financial liabilities.

A. Financial Assets:

Initial Recognition:

Financial Assets include Investments, Cash and Cash Equivalents and eligible current and non-current
assets. The financial assets are initially recognized at the transaction price when the Company becomes
party to contractual obligations. The transaction price includes transaction costs unless the asset is
being value at fair value through the Statement of Profit and Loss. Purchases or sales of financial assets
that require delivery of assets within a time frame established by regulation or convention in the
market place (regular way trades) are recognised on the trade date, i.e., the date that the Company
commits to purchase or sell the assets.

Subsequent Measurement:

The subsequent measurement of financial assets depends upon the initial classification of financial
assets. For the purpose of subsequent measurement, financial assets are classified as under:

i. Financial Assets at Amortized Cost where the financial assets are held solely for collection of
cash flows and contractual terms of the assets give rise on specified dates to cash flows that are
solely payments of principal and interest on principal amount outstanding.

ii. 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.

iii. Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI): A

Financial Asset is measured at 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
represents solely payments of principal and interest on the principal amount outstanding.
Security Deposits, Loans and Advances, Cash and Cash Equivalents where reliable data for fair value is
not available then such eligible current and non-current assets are classified for measurement at
amortized cost.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are
held for trading and contingent consideration recognised by an acquirer in a business combination to
which Ind AS103 (Business Combinations) applies are classified as at FVTPL. The classification is made
on initial recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from
OCI to P&L, even on sale of investment. However, the company may transfer the cumulative gain or loss
within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

Impairment:

If the recoverable amount of an asset (or cash-generating unit/property, plant and equipment) is
estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating
unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or
loss, unless the relevant asset is carried at a re-valued amount if any, in which case the impairment loss
is treated as a revaluation decrease.

Expected Credit Losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those default events on
the financial instrument that are possible within 12 months after the reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events
over the life of the financial instrument).

For Trade Receivables the Company applies ‘simplified approach’ which requires expected lifetime
losses to be recognized from initial recognition of the receivables. The Company uses historical default
rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these
historical default rates are reviewed and changes in the forward looking estimates are analysed. For
other assets, the Company uses 12 month ECL to provide for impairment loss where there is no
significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

Financial assets, other than those at Fair Value through Profit and Loss (FVTPL), are assessed for
indicators of impairment at the end of each reporting period. Financial assets are considered to be
impaired when there is objective evidence that, as a result of one or more events that occurred after
the initial recognition of the financial asset, the estimated future cash flows of the investment have
been affected.

B. Financial Liabilities:

Financial liabilities, which include trade payables and eligible current and non-current liabilities. The
trade payables and other financial liabilities are recognised at the value of the respective contractual
obligations. Financial liabilities are derecognised when the liability is extinguished, that is, when the
contractual obligation is discharged, cancelled and on expiry of the terms.

Subsequent measurement

Financial Liabilities are carried at amortised cost using the effective interest method. For trade and
other payables maturing within one year from the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.

Derecognition of Financial Instruments

The Company derecognises a Financial Asset when the contractual rights to the cash flows from the
Financial Asset expire or it transfers the Financial Asset and the transfer qualifies for derecognition
under Ind AS 109. A Financial liability (or a part of a Financial liability) is derecognized from the
Company’s Balance Sheet when the obligation specified in the contract is discharged or cancelled or
expires.

Reclassification of financial assets and liabilities

The company determines classification of financial assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for financial assets which are equity instruments and
financial liabilities. For financial assets which are debt instruments, a reclassification is made only if
there is a change in the business model for managing those assets. Changes to the business model are
expected to be infrequent.

Offsetting

Financial Assets and Financial Liabilities are offset and the net amount is presented in the balance sheet
when, and only when, the Company has a legally enforceable right to set off the amount and it intends,
either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

Derivative financial instruments and hedge accounting:

Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such as interest rate swaps and call options, to

hedge its interest rate risks and foreign currency risks. Such derivative financial instruments are initially
recognised at fair value on the date on which a derivative contract is entered into and are subsequently
re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and
as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or
loss, except for the effective portion of cash flow hedges, which is recognised in OCI and later
reclassified to profit or loss when the hedge item affects profit or loss or treated as basis adjustment if
a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non¬
financial liability.

For the purpose of hedge accounting, hedges are classified as:

• Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset
or liability or an unrecognised firm commitment

• Cash flow hedges when hedging the exposure to variability in cash flows that is either
attributable to a particular risk associated with a recognised asset or liability or a highly
probable forecast transaction or the foreign currency risk in an unrecognised firm commitment

• Hedges of a net investment in a foreign operation

At the inception of a hedge relationship, the Company formally designates and documents the hedge
relationship to which the Company wishes to apply hedge accounting and the risk management
objective and strategy for undertaking the hedge. The documentation includes the Company’s risk
management objective and strategy for undertaking hedge, the hedging/ economic relationship, the
hedged item or transaction, the nature of the risk being hedged, hedge ratio and how the entity will
assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to
changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are
expected to be highly effective in achieving offsetting changes in fair value or cash flows and are
assessed on an ongoing basis to determine that they actually have been highly effective throughout the
financial reporting periods for which they were designated.

Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:

(i) Fair value hedges

The change in the fair value of a hedging instrument is recognised in the statement of profit and loss as
finance costs. The change in the fair value of the hedged item attributable to the risk hedged is
recorded as part of the carrying value of the hedged item and is also recognised in the statement of
profit and loss as finance costs.

For fair value hedges relating to items carried at amortised cost, any adjustment to carrying value is
amortised through profit or loss over the remaining term of the hedge using the EIR method. EIR
amortisation may begin as soon as an adjustment exists and no later than when the hedged item ceases
to be adjusted for changes in its fair value attributable to the risk being hedged.

If the hedged item is derecognised, the unamortised fair value is recognised immediately in profit or
loss. When an unrecognised firm commitment is designated as a hedged item, the subsequent
cumulative change in the fair value of the firm commitment attributable to the hedged risk is
recognised as an asset or liability with a corresponding gain or loss recognised in profit and loss.

(ii) Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash flow
hedge reserve, while any ineffective portion is recognised immediately in the statement of profit and
loss.

The Company uses interest rate swaps and call options as hedges of its exposure to interest rate risks
and foreign currency risks in the foreign currency loan. The ineffective portion relating to foreign
currency loan is recognised in other income or expenses.

Amounts recognised as OCI are transferred to profit or loss when the hedged transaction affects profit
or loss, such as when the hedged item affects the statement of profit and loss.

If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover (as
part of the hedging strategy), or if its designation as a hedge is revoked, or when the hedge no longer
meets the criteria for hedge accounting, any cumulative gain or loss previously recognised in OCI
remains separately in equity until the forecast transaction occurs or the foreign currency firm
commitment is met.

(iii) Hedges of a net investment

Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is
accounted for as part of the net investment, are accounted for in a way similar to cash flow hedges.
Gains or losses on the hedging instrument relating to the effective portion of the hedge are recognised
as OCI while any gains or losses relating to the ineffective portion are recognised in the statement of
profit or loss. On disposal of the foreign operation, the cumulative value of any such gains or losses
recorded in equity is reclassified to the statement of profit or loss (as a reclassification adjustment).

1. Fair Value Measurement:

The Company measures financial instruments, such as investments at fair value at each balance sheet
date. 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.

The fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:

• In the principal market for the asset or liability, or in the absence of a principal market, in the
most advantageous market for the asset or liability.

• The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants

would use when pricing the asset or liability, assuming that market participants act in their economic
best interest. A fair value measurement of a non-financial asset takes into account a market
participant’s ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use.

The company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs
and minimizing 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, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognised 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.

At each reporting date, the management of the Company analyses the movements in the values of
assets and liabilities which are required to be remeasured or re-assessed as per the accounting policies
of the Company.

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 as explained above.

This note summarises the accounting policy for determination of fair value. Other fair value related
disclosures are given in the relevant notes as following:

• Disclosures for significant estimates and assumptions

• Quantitative disclosures of fair value measurement hierarchy

• Financial instruments (including those carried at amortised cost)

Cash and Cash Equivalents-For the Purpose of Cash Flow Statements:

Cash and cash equivalent in the balance sheet comprise cash at banks and in 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.

Cash and cash equivalents includes bank overdrafts are form an integral part of Company''s cash
management

T. Events occurring after the Balance Sheet date

Impact of events occurring after the balance sheet date that provide additional information materially
effecting the determination of the amounts relating to conditions existing at the balance sheet date are
adjusted to respective assets and liabilities.

U. Operating Cycle:

Based on the activities of the company and normal time between incurring of liabilities and their

settlement in cash or cash equivalents and acquisition/right to assets and their realization in cash or
cash equivalents, the company has considered its operating cycle as 12 months for the purpose of
classification of its liabilities and assets as current and non-current.

V. Earnings Per Share:

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders
of the Company by the weighted average number of equity shares outstanding during the period.
Diluted earnings per equity share is computed by dividing the net profit attributable to the equity
holders of the Company by the weighted average number of equity shares considered for deriving basic
earnings per equity share and also the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are
adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the
average market value of the outstanding equity shares). Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless issue data later date. Dilutive potential equity
shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all
periods presented for any share splits and bonus shares issues including changes effected prior to the
approval of the financial statements by the Board of Directors.

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Mar 31, 2013

1.Right,Preferences and Restrictions attached to Equity Share:-

The company has one class of equity shares having a par value of R s. 10 per share each Shareholder is eligible for one vote per held in the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts. In propartion of their shareholding

2. Company purchased membership of U P Stock Exchange Association Limited in the year 1995-96 for Rs.10,00,000 (face value Rs 2000.0O & Security deposit Rs. 10000 00) The Company has surrendred the same during the year to UPSE and received back security deposit of Rs. 10000/- only as per UPSE letter no UPSE/2012-13/Margin/2371 Dated 11-12-12 Further the Company had during the year paid Rs 1563758/- against SEBI Turnover fees & interest thereon of previous years as finilised by SEBI on surrender of the membershipof the U.PStoek Exchange Assn Ltd

3. There is no permanent dimunition in the value of Investments as on 31 st March, 2013 as per the guidelines of AS-13 Issued by the ICAI Thus the company has valued investments at cost as The company is doing business of shares & securities The profit /loss will be accounted for on sale of these securities as it is the main business of the company The company has not accounted for diminution in the value of the investment of unquoted equity shares if any as it could not be ascertained in want of the final accounts of the companies in which investments were being made, therefore market value of unquoted equity share is taken as nil.

4. Company invested Rs. 1,45,100.00 in Holiday Resorts of sterling Securities Ltd. on time sharing basis and valued at cost (Market value not known).

5. Debtors,Creditors,Loans&Advances accounts are subject to confimnation

6. (a) U.P.S.E. Delivery account amounting Rs. 109131.13 is irrovercoverable and transferred to bad debts accounts as the company surrendered UPSE Membership card and on surrender the U.P Stock Exchange has not taken cognigance of same.

(b) The company has written off the long term loan account of Late Vibhash Agarwal amounting to Rs 500000/- by making provision for bad debts as this is not recoverable

7. Based on information available with the company as at March 31, 2013 there are no dues to Micro, Small & Medium Enterprises Development Act, 2006 as at March 31,2013.

Based on the information available with the company as at 31 st March, 2013, there was neither any interest payable nor paid to any supplier under the aforesaid Act 4 similarty there is no such amount remaining unpaid as at March 31.2013

8. Impairment of Assets:-

The indicators listed in paragraph 8 to 10 of accounting standard (AS-28) " Impairment of Assets" isued by the Institute of Chartered Accountants of India have been exaimened and on such examination, it has been found that none of the indicators are present in the case of the company

9. Related Party Disclosures -

A. Related Party 4 their relationship as per accounting standard 18 of the Institute of Chartered Accountants of India

1. Directors Arun Kejriwal Shared Tandon Ashish Dixit T.NAgarwal Vinod Kumar Sharma

2 Enterprises in which key management personnel & their relatives are interested-

a) Vrindavan Construction Mr Arur Kejriwal Managing Director Pvt Ltd. of the company is a director in this company

b) Transaction during the period with related parties are as under. -

c. The maximum balance in the account of Mr Arun Kejriwal Managing Director Is Rs 13399558/- during the year Note:- Related party relationship is as identified by the company and relied upon by the auditors

10. Employee Benefit

(i) Since the Company have only One , is not eligible for gratutity 8 other benefits, except Managing Director during the year provision of Gratuity, Leave encashment 8 other benefits are not required as per the recommendations of Accounting Standard (AS-15) prescribed by the Institute of Chartered Accountants of India. No provision of gratuity is being made on the salary of managing director.

(ii) The company is not covered under Providend Fund Act and Employes Estate Insurance Act

11. The other applicable accounting standard as per the provision of Companies Act, has been followed by the company

12. The figures of previous year has been regrouped and / or rearranged wherever necessary

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Mar 31, 2010

1. CONTINGENT LIABILITIES 2009-2010 2008-2009 NIL NIL

1.1 Company purchased membership of U.P Stock Exchange Association Limited in the year 1995-96 for Rs. 10,00,000/-(face value Rs. 2000/-& Security deposit Rs. 10000/-)

There is no permanent dimunition in the value of Investments as on 31st March, 2010 (Previous Year dimunition is Rs. NIL) as per the guidelines of AS-13 issued by the ICAI Thus the company has valued investments at cost as The company is doing business of shares & securities & is a broker of Stock Exchange. The profit /loss will be accounted for on sale of these securities as it is the main business of the company. The company has not accounted for diminution of the investment of unquoted equity shares if any as it could not be ascertained in want of the final accounts of the companies in which investments are made, therefore market value of unquoted equity share is taken as nil..

1.2 During the year company has not done any business of Share & Investment of any kind except sale of Shares of Rs. 16,00,000/-outofopeningstockintrade.

1.3 Company deposit & Withdraw shares & Securities as Margin money with U.P.S.E Ltd. time to time as per norms of Stock Exchange.

1.4 Company invested Rs. 1,45,100/-in Holiday Resorts of sterling Securities Ltd. and valued at cost (Market value not known).

1.5 Debtors,Creditors,Loans & Advances accounts are subject to confirmation. Debts due to Mr. Arun Kejriwal, Managing Director Rs. 665000/- & maximum balance during the year Rs. 1600000/-

1.6 In our opinion the debtors outstanding for more than six months amounting to Rs. 16.96 Laks (Previous Year) 38.77 Lacs) seems to be irrecoverable but has not been provided for as the management informed that they are recoverable. The . management has written off one account of Rs. 11.62 laks as bad debts during the year. The loan given to six parties amounting Rs. 33.15 laks were outstanding since long & seems irrecoverable but management informed, that these loans are recoverable and has taken steps to realise the same.

1.7 Based on information available with the company as at MArch 31, 2010 there are no dues to Micro, Small & Medium Enterprises Development Act, 2006 as at March 31, 2010. Based on the information available with the company as at 31 st March, 2010, there was neither any interest payable nor paid to any supplier under the aforesaid Act & similarly there is no such amount remaining unpaid as at March 31,2010.

Closing stock of equity shares of A B B Limited is 70 shares of Rs. 21- each insted of 14 equity shares of Rs. 10/- each due to corporate action of the company.

The company has received 250 equity shares of centum electronics & 250 equity shares of solectron EMS India in demate account of the company the details of receipt of those shares are not available as these are neither purchase nor any other transaction.

2. Impairment of Assets:-

The indicators listed in paragraph 8 to 10 of accounting standard (AS-28)" Impairment of Assets" issued by the Institute of Chartered Accountants of India have been examined and on such examination, it has been found that none of the indicators are present in the case of the company.

3. Related Party Disclosures:- A.Related Party & the irrelationship as per accounting standard 18 of the lnstitute of Chartered Accountants of lndia.

1. Directors

Arun Kejriwal

SharadTandon

Lalta Prasad Dixit

T.N.Agarwal

Shiv Kumar Trivedi

4. Enterprises in which key management personal & their relatives are interested:-

a) Vrindavan Construction Pvt Ltd. Mr. Arun Kejriwal Managing Director of the company is a director in this company.

5. Employee Benefit: Since the Company do not have any employee except Managing Director during the year provision of Gratuity, Leave encashment & other benefits are not required as per the recommendations of Accounting Standard (AS-15) prescribed by the lnstitute of Chartred Accountants of lndia.

6. The other applicable accounting standard as per the provision of Companies Act, has been followed by the company.

7. Previous year figures have been regrouped/rearranged wherever necessary, to make them comparable.