Notes to Accounts of Almondz Global Securities Ltd.

Mar 31, 2025

probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount of the
obligation cannot be made.

Contingent assets are neither recognised nor disclosed except
when realisation of income is virtually certain, related asset is
disclosed.

(iii) Property, plant and equipment
and initial measurement

Property, plant and equipment are stated at their cost of
acquisition. The cost comprises purchase price, borrowing
cost if capitalisation criteria are met and directly attributable
cost of bringing the asset to its working condition for the
intended use. Any trade discount and rebates are deducted in
arriving at the purchase price.

Subsequent costs are included in the asset''s carrying amount
or recognised as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the
item will flow to the Company and the cost of the item can be
measured reliably. All other repair and maintenance costs are
recognised in statement of profit and loss.

Subsequent measurement (depreciation method, useful
lives and residual value)

Property, plant and equipment are subsequently measured
at cost less accumulated depreciation and impairment losses.
Depreciation on property, plant and equipment is provided on
the written-down method over the useful life of the assets as
prescribed under Part ''C'' of Schedule II of the Companies Act,
2013.

(ii) Provisions, contingent liabilities and contingent assets

Provisions are recognised only when there is a present
obligation, as a result of past events, and when a reliable
estimate of the amount of obligation can be made at the
reporting date. These estimates are reviewed at each reporting
date and adjusted to reflect the current best estimates.
Provisions are discounted to their present values, where the
time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future
events not wholly within the control of the Company or

• Present obligations arising from past events where it is not

Depreciation is calculated on pro rata basis from the date on which
the asset is ready for use or till the date the asset is sold or
disposed.

The residual values, useful lives and method of depreciation are
reviewed at the end of each financial year.

De-recognition

An item of property, plant and equipment and any significant part
initially recognised is de-recognised upon disposal or when
no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the
asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is recognised
in the statement of profit and loss, when the asset is de¬
recognised.

Capital work-in-progress

Capital work-in-progress are carried at cost, comprising direct cost
and related incidental expenses to acquire property, plant and

equipment. Assets which are not ready for intended use are
also shown under capital work-in-progress.

(iv) Intangible assets

Recognition and initial measurement

Intangible assets are stated at their cost of acquisition. The
cost comprises purchase price including license fees paid,
import duties and other taxes (other than those subsequently
recoverable from taxation authorities), borrowing cost if
capitalisation criteria are met and directly attributable cost of
bringing the asset to its working condition for the intended
use.

Subsequent measurement (amortisation method, useful
lives and residual value)

Intangible assets are amortised over a period of 3 years
from the date when the assets are available for use. The
estimated useful life (amortisation period) of the intangible
assets is arrived basis the expected pattern of consumption of
economic benefits and is reviewed at the end of each financial
year and the amortisation period is revised to reflect the
changed pattern, if any.

Investment Property

Property that is held to earn rentals and for capital
appreciation. Investment property is measured initially at its
cost, including related transaction costs and where applicable
borrowing costs. Subsequent expenditure is capitalised to the
asset''s carrying amount only when it is probable that future
economic benefits associated with the expenditure will flow
to the group and the cost of the item can be measured reliably.
All other repairs and maintenance costs are expensed when
incurred. When part of an investment property is replaced,
the carrying amount of the replaced part is derecognized.
Subsequent to initial recognition, investment properties are
measured in accordance with Ind AS 16''s requirements for
cost model.

(v) Revenue from Operations

The company recognizes revenue in accordance with
INDAS-115, revenue is to be recognized upon transfer of
control of promised services to customers in an amount that
reflects the consideration which the company expects to
receive in exchange for those services.

Revenue from fixed price, fixed time frame contracts where
the performance obligation are satisfied over time and when
there is no uncertainty as to measurement or collectivity of
consideration is recognized as per percentage of completion
method.

However, only for the purpose of matching expense with
revenue, in some cases we provide consultancy services for
preparing Detailed Project Report (DPR) -

• on a continuous basis to the authority,

• the duration of such services to be provided under the
contract is more than three months and

• the same is against periodic payment of consultancy
fee

Hence income on such incomplete DPR projects is recognized
on percentage of completion method as unbilled revenue.
Revenue includes the following:

i) Brokerage fee income

Revenue from contract with customer is recognized point
in time when performance obligation is satisfied (when the
trade is executed i.e., trade date). These include brokerage
fees which is charged per transaction executed on behalf of
the clients.

ii) Fees & Commission Income

This includes:

a) Income from investment banking activities and other
fees.

Income from investment banking activities and other fees
is recognized as and when such services are completed /
performed and as per terms of agreement with the client
(i.e. when the performance obligation is completed).

b) Income from depository operations.

Income from depository operations is accounted when the
performance obligation is completed.

c) Income from wealth management services
Commission (net of taxes and other statutory charges)
income from distribution of financial products is
recognized based on mobilization and intimation received
from clients/ intermediaries or over the period of service
after deducting claw back as per the agreed terms.

iii) Interest Income

Under Ind AS 109 interest income is recognized by applying
the Effective Interest Rate (EIR) to the gross carrying amount
of financial assets other than credit-impaired assets and
financial assets classified as measured at FVTPL.

The EIR in case of a financial asset is computed

a. As the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to
the gross carrying amount of a financial asset.

b. By considering all the contractual terms of the financial
instrument in estimating the cash flows.

c. Including all fees received between parties to the contract
that are an integral part of the effective interest rate,
transaction costs, and all other premiums or discounts.

Any subsequent changes in the estimation of the future cash
flows is recognized in the statement of profit and loss with
the corresponding adjustment to the carrying amount of the
assets.

Interest income on credit impaired assets is recognized by
applying the effective interest rate to the net amortized cost
(net of provision) of the financial asset.

iv) Dividend Income

Dividend income is recognized

a. When the right to receive the payment is established,

b. it is probable that the economic benefits associated with
the dividend will flow to the Company and

c. the amount of the dividend can be measured reliably

v) Net gain on Fair value changes

Any differences between the fair values of financial assets
(including investments, derivatives and stock in trade)
classified as fair value through the profit or loss ("FVTPL")

(refer Note 34), held by the Company on the balance sheet date
is recognized as an unrealized gain / loss. In cases there is a
net gain in the aggregate, the same is recognized in "Net gains
on fair value changes" under Revenue from operations and if
there is a net loss the same is disclosed under "Expenses" in
the statement of profit and loss.

Similarly, any realized gain or loss on sale of financial
instruments measured at FVTPL is recognized in net gain /
loss on fair value changes.

However, net gain / loss on de-recognition of financial
instruments classified as amortized cost is presented
separately under the respective head in the statement of profit
and loss.

vi) Trading shares & Securities:

Revenue on account of trading in shares is recognised on the
basis of each trade executed at the stock exchange during the
financial year.

In respect of non-delivery based transactions such as
derivatives and intraday, the profit and loss is accounted for at
the completion of each settlement, however in case of an open
settlement the net result of transactions which are squared up
on FIFO basis is recognised as profit/loss in the account.

vii) Other Revenue

In respect of other heads of income, the Company follows the
practice of recognising income on accrual basis.

(vi) Expenses

Expenses are recognised on accrual basis and provisions are
made for all known losses and liabilities. Expenses incurred
on behalf of other companies, in India, for sharing personnel,
common services and facilities like premises, telephones, etc.
are allocated to them at cost and reduced from respective
expenses.

Similarly, expenses allocation received from other companies
is included within respective expense classifications.

(vii) Borrowing costs

Borrowing costs that are directly attributable to the
acquisition and/or construction of a qualifying asset, till the
time such qualifying assets become ready for its intended
use, are capitalised. Borrowing cots consists of interest and
other cost that the Company incurred in connection with the
borrowing of funds. A qualifying asset is one that necessarily
takes a substantial period of time to get ready for its intended
use. All other borrowing costs are charged to the Statement
of Profit and Loss as incurred basis the effective interest rate
method.

(viii) Taxation

Tax expense recognised in Statement of Profit and Loss
comprises the sum of deferred tax and current tax except to
the extent it recognised in other comprehensive income or
directly in equity.

Current tax comprises the tax payable or receivable on taxable
income or loss for the year and any adjustment to the tax
payable or receivable in respect of previous years. Current
tax is computed in accordance with relevant tax regulations.
The amount of current tax payable or receivable is the best

estimate of the tax amount expected to be paid or received
after considering uncertainty related to income taxes, if
any. Current 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 assets and liabilities are offset only if there is a
legally enforceable right to set off the recognised amounts,
and it is intended to realise the asset and settle the liability on
a net basis or simultaneously.

Minimum alternate tax (''MAT'') credit entitlement is
recognised as an asset only when and to the extent there is
convincing evidence that normal income tax will be paid
during the specified period. In the year in which MAT credit
becomes eligible to be recognised as an asset, the said asset
is created by way of a credit to the Statement of Profit and
Loss and shown as MAT credit entitlement. This is reviewed
at each balance sheet date and the carrying amount of MAT
credit entitlement is written down to the extent it is not
reasonably certain that normal income tax will be paid during
the specified period.

Deferred tax is recognised in respect of temporary differences
between carrying amount of assets and liabilities for financial
reporting purposes and corresponding amount used for
taxation purposes. Deferred tax assets are recognised on
unused tax loss, unused tax credits and deductible temporary
differences to the extent it is probable that the future taxable
profits will be available against which they can be used.
This is assessed based on the Company''s forecast of future
operating results, adjusted for significant non-taxable income
and expenses and specific limits on the use of any unused
tax loss. 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 and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at
the reporting date. The measurement of deferred tax reflects
the tax consequences that would follow from the manner in
which the Company expects, at the reporting date to recover
or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if there is a
legally enforceable right to set off the recognised amounts,
and it is intended to realise the asset and settle the liability
on a net basis or simultaneously. Deferred tax relating to
items recognised outside statement of profit and loss is
recognised outside statement of profit or loss (either in other
comprehensive income or in equity).

(ix) Employee benefits

Short-term employee benefits

Short-term employee benefits including salaries, short term
compensated absences (such as a paid annual leave) where
the absences are expected to occur within twelve months
after the end of the period in which the employees render
the related service, profit sharing and bonuses payable
within twelve months after the end of the period in which
the employees render the related services and non-monetary
benefits for current employees are estimated and measured
on an undiscounted basis.

Post-employment benefit plans are classified into defined
benefits plans and defined contribution plans as under:

Defined contribution plans

The Company has a defined contribution plans namely
provident fund, pension fund and employees state insurance
scheme. The contribution made by the Company in respect of
these plans are charged to the Statement of Profit and Loss.

Defined benefit plans

The Company has an obligation towards gratuity, a defined
benefit retirement plan covering eligible employees. Under
the defined benefit plans, the amount that an employee will
receive on retirement is defined by reference to the employee''s
length of service and last drawn salary. The legal obligation
for any benefits remains with the Company, even if plan assets
for funding the defined benefit plan have been set aside. The
liability recognised in the statement of financial position
for defined benefit plans is the present value of the Defined
Benefit Obligation (DBO) at the reporting date less the fair
value of plan assets. Management estimates the DBO annually
with the assistance of independent actuaries. Actuarial gains/
losses resulting from re-measurements of the liability/asset
are included in other comprehensive income.

Other long-term employee benefits

The Company also provides the benefit of compensated
absences to its employees which are in the nature of long-term
employee benefit plans. Liability in respect of compensated
absences becoming due and expected to avail after one year
from the Balance Sheet date is estimated in the basis of an
actuarial valuation performed by an independent actuary
using the projected unit credit method as on the reporting
date. Actuarial gains and losses arising from experience and
changes in actuarial assumptions are charged to Statement of
Profit and Loss in the year in which such gains or losses are
determined.

(x) Leases

Company as a lessee

The Company''s lease asset classes primarily consist of leases
for land and buildings. The Company assesses whether a
contract contains a lease, at inception of a contract. A contract
is, or contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset, the
Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all the economic benefits
from use of the asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company
recognises a right-of-use (ROU) asset and a corresponding
lease liability for all lease arrangements in which it is a lessee,
except for leases with a term of 12 months or less (short-term
leases) and low value leases. For these short-term and low-
value leases, the Company recognises the lease payments as
an operating expense on a straight-line basis over the term of
the lease.

Certain lease arrangements include the options to extend
or terminate the lease before the end of the lease term. ROU

assets and lease liabilities includes these options when it is
reasonably certain that they will be exercised.

The ROU assets are initially recognised at cost, which
comprises the initial amount of the lease liability adjusted for
any lease payments made at or prior to the commencement
date of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses.

ROU assets are depreciated from the commencement date
on a straight-line basis over the shorter of the lease term and
useful life of the underlying asset. ROU assets 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 (CGU) to which the asset belongs.

The lease liability is initially measured at amortised cost
at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in
the lease or, if not readily determinable, using the incremental
borrowing rates in the country of domicile of these leases.
Lease liabilities are remeasured with a corresponding
adjustment to the related ROU asset if the Company changes
its assessment of whether it will exercise an extension or a
termination option.

Lease liability and ROU assets have been separately presented
in the Balance Sheet

The Company as a lessor

Leases for which the Company is a lessor is classified as a
finance or operating lease. Whenever the terms of the lease
transfer substantially all the risks and rewards of ownership
to the lessee, the contract is classified as a finance lease. All
other leases are classified as operating leases.

When the Company is an intermediate lessor, it accounts for
its interests in the head lease and the sublease separately.
The sublease is classified as a finance or operating lease by
reference to the ROU asset arising from the head lease.

For operating leases, rental income is recognised on a straight¬
line basis over the term of the relevant lease.

(xi) Earnings per share

Basic earnings per share is 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. The
weighted average number of equity shares outstanding during
the period is adjusted for events including a bonus issue.

For the purpose of calculating diluted earnings per share, the
net profit or loss (interest and other finance cost associated)
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.

(xii) Foreign currency
Transactions and balances

Foreign currency transactions are translated into the
functional currency, by applying the exchange rates on the
foreign currency amounts at the date of the transaction.
Foreign currency monetary items outstanding at the balance
sheet date are converted to functional currency using the
closing rate. Non-monetary items denominated in a foreign
currency which are carried at historical cost are reported
using the exchange rate at the date of the transaction.

Exchange differences arising on monetary items on settlement,
or restatement as at reporting date, at rates different from
those at which they were initially recorded, are recognised
in the Statement of Profit and Loss in the year in which they
arise.

Transition to Ind AS

The Company has elected to exercise the option for accounting
for exchange differences arising from translation of long-term
foreign currency monetary items recognised in the financial
statements for the period ending immediately before the
beginning of the first Ind AS financial reporting period as per
the previous GAAP.

(xiii) Impairment of assets

a) Impairment of non-financial assets

The company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing
for an asset required, the company estimates the assets
recoverable amount. An asset''s recoverable is the higher
of an asset’s fair value less costs of disposal and its value in
use. Recoverable amount is determined for an individual
asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets.

such assets are considered to be impaired, the impairment
to be recognized in the statement of Profit and loss is
measured by the amount by which the carrying amount
value of the assets exceeds the estimated recoverable
amount of the asset. An impairment loss is reversed in the
statement of profit and loss if there has been a change in
the estimates used to determine the recoverable amount.
The carrying amount of the asset is increased to its
revised recoverable amount, provided that this amount
does not exceed the carrying amount that would have
been determined (net of any accumulated amortization or
depreciation) has no impairment loss been recognized for
the asset in prior years.

b) Impairment of financial assets

The company recognizes loss allowances using the
expected credit loss (ECL) model for the financial assets
which are not fair valued through profit and loss. Loss
allowance for trade receivables with no significant
financing component is measured at an amount equal
to lifetime ECL. The company applies a simplified
approach in calculating Expected Credit Losses (ECLs)
on trade receivables. Therefore, the company does not
track changes in credit risk, but instead recognize a
loss allowance based on lifetime ECLs at each reporting
date. The company established a provision matrix that

is based on its historical credit loss experience, adjusted
for forward looking factors specific to the debtors and the
economic environment.

all other financial assets, expected credit loss are
measured at an amount equal to the 12 month ECL, unless
there has been a significant increase in credit risk from
initial recognition in which case those are measured at
lifetime ECL. The amount of expected credit losses (or
reversal) that is required to adjust the loss allowance at
the reporting date to the amount that is required to be
recognized is recognized as an impairment gain or loss in
the statement of profit and loss.

(xiv) Financial instruments

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

Initial recognition and measurement

Financial assets and financial liabilities are recognised when
the Company becomes a party to the contractual provisions
of the financial instrument and are measured initially at fair
value adjusted for transaction costs. Subsequent measurement
of financial assets and financial liabilities is described below.

Non-derivative financial assets

Subsequent measurement

i. Financial assets carried at amortised cost - a financial
asset is measured at the amortised cost if both the following
conditions are met:

• The asset is held within a business model whose objective is
to hold assets for collecting contractual cash flows, and

• 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. Amortised cost is calculated by
considering any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The EIR
amortisation is included in interest income in the Statement
of Profit and Loss.

ii. Investments in equity instruments - Investments in equity
instruments which are held for trading are classified as at
fair value through profit or loss (FVTPL). For all other equity
instruments, the Company makes an irrevocable choice upon
initial recognition, on an instrument by instrument basis,
to classify the same either as at fair value through other
comprehensive income (FVOCI) or fair value through profit
or loss (FVTPL). Amounts presented in other comprehensive
income are not subsequently transferred to profit or loss.
However, the Company transfers the cumulative gain or loss
within equity. Dividends on such investments are recognised
in profit or loss unless the dividend clearly represents a
recovery of part of the cost of the investment.

De-recognition of financial assets

Financial assets (or where applicable, a part of financial
asset or part of a group of similar financial assets) are de¬
recognised (i.e. removed from the Company’s balance sheet)
when the contractual rights to receive the cash flows from

the financial asset have expired, or when the financial asset
and substantially all the risks and rewards are transferred.
Further, if the Company has not retained control, it shall also
de-recognise the financial asset and recognise separately
as assets or liabilities any rights and obligations created or
retained in the transfer.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation
under the liability is discharged or cancelled or expired. 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 de-recognition 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.

First loss default guarantee

First loss default guarantee contracts are contracts that
require the Company to make specified payments to
reimburse the bank and financial institution for a loss it incurs
because a specified debtor fails to make payments when due,
in accordance with the terms of an agreement. Such financial
guarantees are given to banks and financial institutions, for
whom the Company acts as ''Business Correspondent''.

These contracts are initially measured at fair value and
subsequently measure at higher of:

• The amount of loss allowance (calculated as described in
policy for impairment of financial assets)

• Maximum amount payable as on the reporting date to the
respective bank/financial institution which is based on the
amount of loans overdue for more than 75-90 days in respect
to agreements with banks and financial institutions.

Further, the maximum liability is restricted to the cash outflow
agreed in the agreement.

Offsetting 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, to realise the
assets and settle the liabilities simultaneously.

(xv) Operating segments

An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses (including revenues and
expenses relating to transactions with other components
of the Company), whose operating results are regularly
reviewed by the Company''s management to make decisions
about resources to be allocated to the segment and assess its
performance, and for which discrete financial information is
available. Operating segments of the Company are reported in
a manner consistent with the internal reporting provided to
the company''s management.

(xvi) Share Based payment

The Employees Stock Option Scheme ("the Scheme")
provides for grant of equity shares of the Company to
whole-time directors and employees of the Company. The
fair value of options granted under Employee Stock Option

Plan is recognised as an employee benefits expense with a
corresponding increase in other equity. The total amount to
be expensed is determined by reference to the fair value of
the options. The total expense is recognised over the vesting
period, which is the period over which all of the specified
vesting conditions are to be satisfied. At the end of each period,
the entity revises its estimates of the number of options that
are expected to vest based on the non-market vesting and
service conditions. It recognises the impact of the revision to
original estimates, if any, in Statement of Profit and Loss, with
a corresponding adjustment to equity.

(xvii) Stock-in-trade

A financial instrument is classified as held for trading if it is
acquired or incurred principally for selling or repurchasing
in the near term, or forms part of a portfolio of financial
instruments that are managed together and for which there
is evidence of short-term profit taking, or it is a derivative
not designated in a qualifying hedge relationship. Trading
derivatives and trading securities are classified as held for
trading and recognized at fair value.

(xviii) Equity investment in subsidiaries

Investments representing equity interest in subsidiaries are
accounted for at cost in accordance with Ind AS 27 Separate
Financial Statements.

(xix) Government grants

Grants and subsidies from the government are recognised
when there is reasonable assurance that:

(i) the Company will comply with the conditions attached to
them, and

(ii) the grant/subsidy will be received.

Grant or subsidy relates to revenue, it is recognised as
income on a systematic basis in profit or loss over the periods
necessary to match them with the related costs, which they
are intended to compensate.

2.2 New standards or amendments to the existing standards
and other pronouncements:

Ministry of Corporate Affairs ("MCA") notifies new standard
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time
to time. As on 31st March 2025, there is no new standard
notified or amendment to any of the existing standards under
Companies (Indian Accounting Standards) Rules, 2015

D. Estimation of fair values

The Company obtains independent valuations for each of its investment property by external, independent property valuers, having
appropriate recognised professional qualifications and recent experience in the location and category of the property being valued.

Fair market value is the amount expressed in terms of money that may be reasonably be expected to be exchanged between a willing
buyer and a willing seller, with equity or both. The valuation by the valuer assumes that Company shall continue to operate and run the
assets to have economic utility.

Valuation technique:

Under the market comparable method (or market comparable approach), a property''s fair value is estimated based on comparable
transactions.The market comparable approach is based upon the principle of substitution under which a potential buyer will not pay more
for the property than it will cost to buy a comparable substitute property. In theory, the best comparable sale would be an exact duplicate
of the subject property and would indicate, by the known selling price of the duplicate, the price for which the subject property could be
sold. The unit of comparison applied by the Company is the price per square metre (sqm).

Footnotes:

(i) Details of vehicle loans

Vehicle loan from HDFC Bank - for Lexus Car is taken on 03.06.2022 amounting Rs. 69.50 lac- repayable in 60 equated monthly installment of
Rs. 1.38 lac from July 2023 and hypothecated against vehicle purchased. The last installment is due on 07-06-2027. The interest rate is 7.30 %
p.a.

Vehicle loan from Axis Bank - for Vitara Car is taken on 31.12.2023 amounting Rs. 15.00 lac- repayable in 39 equated monthly installment of
Rs. 0.45 lac from Jan 2024 and hypothecated against vehicle purchased. The last installment is due on 005-03-2027. The interest rate is 9.25%
p.a.

Vehicle loan from HDFC Bank - for Mercedes Car is taken on 12.12.2024 amounting Rs. 60.00 lac- repayable in 84 equated monthly installment
of Rs. 0.95 lac from Jan 2025 and hypothecated against vehicle purchased. The last installment is due on 05-12-2031. The interest rate is 8.60%
p.a.

(ii) Details of overdraft from banks

Overdraft limit of Rs. 316.86 lac (previous year Rs. Nil lacs) is secured by way of pledged securities with Bajaj Finance Ltd., the rate of interest
of which is 8.5% per annum.

Overdraft limit of Rs. 281.50 lac (previous year Rs. 281.60 lacs) is secured by way of pledged securities / fixed deposits with Axis Bank, the rate
of interest of which is 8.5% per annum.

(iii) Details of others

Unsecured loan from related parties from holding company Avonmore Capital and Management Services Limited Rs.1500.00 Lacs
(previous year Rs.Nil lac). The interest rate on loan is 7.00% p..a.

The company has not used the borrowings from banks and financial institutions for the purpose other than specific purpose for which it
was taken at the balance sheet date.

a) . Terms and rights attached to equity shares

Voting

Each equity holder has voting rights on a poll in proportion to his share in the paid up equity share capital.

On show of hands, every member present in person and being holders of equity shares shall have one vote.

Dividends

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the
shareholders in ensuing Annual General Meeting except in the case where interim dividend is distributed.

During the year ended March 31, 2025, the company has recorded per share dividend of Rs. Nil (previous year Nil) to its equity holders.
Liquidation

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

b) . Terms and rights attached to preference shares

7% Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) were non-convertible and hence being compound financial
instrument , equity component shown as other equity and liability component as borrowings in accordance with Ind AS 109 on Financial
Instruments.

12,00,000 ; 7% Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) of Rs. 100/- each, at par aggregating to Rs. 1200 Lac
to Avonmore Capital & Management Services Limited being one of Promoters of the Company with rights and privileges as per applicable law.
Preference shares redeemed pre-maturity on 31 December 2023.

Nature and purpose of other reseves:

a) . Securities premium

Securities premium is used to record the premium on issue of shares. It can only be utilisied for limited purposes in accordance with the
provisions of the Companies Act, 2013.

b) . NCPS Equity

The component parts of compound financial instruments issued by the Company are classified separately as financial liabilities and equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible
instruments. This amount is recognised as a liability on an amortised cost basis using the effective interest method until extinguished upon the
instrument''s maturity date.

c) . Capital reserve

The capital reserve was generated on account of forfeiture of share warrants.

d) . Amalgamation reserve

The amalgamation reserve was generated on account of merger of Almondz Capital Markets Private Limited with Almondz Global Securities
Limited in the year 2008.

e) . General reserve

General reserve includes amounts set aside from retained profits as a reserve to be utilised for permissable general purpose as per Law.

f) . Employee stock options outstanding

The Company has an equity-settled share-based payment plans for to eligible employeee of the Company, its subsidiaries and its holding
company . Refer Note 50 for further details on these plans.

g) . Retained earnings

Retained earnings represents the surplus in profit and loss account and appropriations.

h) . Other comprehensive income

Other comprehensive income consist of remeasurement gains/ losses on defined benefit plans carried through FVTOCI.

i) . Share Application Money

Share Application Money is received on account exercise of ESOPs - " Series G” ofwhich allotment of share were made in April 2023.

C Contingent assets

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

D Financial Guarantee contracts ( FGCs ) as per Ind AS 109

The Company has given corporate guarantees of Rs.1209.95 lac (previous year Rs.1727.70 lacs) to the lenders of AGICL, wholly
owned subsidiary of the Company(AGSL) and corporate guarantees of Rs.Nil lac (previouos year Rs.1.89 lacs) to the lenders of
Skiffle, wholly owned subsidiary of the Company(AGSL).

As per Ind As109, Financial Guarantee contracts are realised at fair value.The fair value of the guarantee will be the present value
of the difference between the net contractual cash flows required under the loan & the net contractual cash flows that would have
been required without the guarantee.

The corporate guarantee issued by the company was merely to fulfil the requirements of loan. It would not have resulted in savings
in the interest rates.

Therefore the fair value of guarantee which represents the difference in the PV of interest payment over the period is nil.

As per Ind AS 109, FGCs should be initially recognised at fair value. Normally the transaction price is usually the fair value unless
it is contrary to arm''s length price.In our case,it is not possible to reliably identify the market price for similar financial guarantee
identical to those its parent has given to its subsidiary.

Alternatively fair value can also be determined by estimating using a probability adjusted discounted cash flow analysis. However
in our case this method too would not be applicable as the management of AGSL (Parent co issuing corporate guarantee on behalf
of its subsidiary) intend that there is no probability of default by its subsidiaries due to its strong order book & cash flows in
the forseeable future.So making a small provisioning of loss would not have any material impact in the books of either parent or
subsidiary companies.

However management intend to review the position on every balance sheet date over the period of guarantee & make suitable
entries in the books of accounts if required,to comply with provisions of Ind as 109 on FGC. In lieu of the above explanations,no
financial entry has been made either in the books of parent or subsidiary co either at the date of inception or on balance sheet
date.

B. Defined benefit plan:

Gratuity

The Company operates a post-employment defined benefit plan for Gratuity. This plan entitles an employee to receive half month''s salary for each
year of completed service at the time of retirement/exit.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognize each period of
service as giving rise to additional employee benefit entitlement and measures each unit separately to build up the final obligation.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31
March 2025. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using
the Projected Unit Credit Method.

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 8.89 years (March 31, 2024: 8.08 years).
46 Operating segments
A Basis of segmentation

Segment information is presented in respect of the Company''s key operating segments. The operating segments are based on the Company''s
management and internal reporting structure. The chief operating decision maker identifies primary segments based on the dominant
source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments
for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly. All operating
segments'' operating results are reviewed regularly by the Board of Directors to make decisions about resources to be allocated to the
segments and assess their performance.

The ''Board of Directors'' have been identified as the Chief Operating Decision Maker (CODM), since they are responsible for all major
decision with respect to the preparation and execution of business plan, preparation of budget, planning, expansion, alliance, joint venture,
merger and acquisition, and expansion of any facility.

The Board of Directors examines the Company''s performance both from a product and geographic perspective and have identified the
following reportable segments of its business:

The following summary describes the operations in each of the Company''s reportable segments:

Level 1: It includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise
the use of observable market data 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. The fair value of
financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash
flow analysis using prices from observable current market transactions and dealer quotes of similar instruments.

The Company''s borrowings have been contracted at floating rates of interest. Accordingly, the carrying value of such borrowings (including
interest accrued but not due) which approximates fair value.

The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other financial assets and liabilities, approximates
the fair values, due to their short-term nature. Fair value of financial assets and security deposits is smiliar to the carrying value as there is no
significant differences between carrying value and fair value.

The fair value for security deposits were calculated based on discounted cash flows using a current lending rate. They are classified as level 3 fair
values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

Valuation processes

The Management performs the valuations of financial assets and liabilities required for financial reporting purposes on a periodic basis,
including level 3 fair values.

b). Financial risk management

The Company has exposure to the following risks arising from financial instruments:

¦ Credit risk

¦ Liquidity risk

¦ Interest rate risk

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management
framework. The Board of Directors have authorised senior management to establish the processes and ensure control over risks through
the mechanism of properly defined framework in line with the businesses of the company.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risks
limits and controls, to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in market
conditions and the Company''s activities.

The Company has policies covering specific areas, such as interest rate risk, foreign currency risk, other price risk, credit risk, liquidity
risk, and the use of derivative and non-derivative financial instruments. Compliance with policies and exposure limits is reviewed on a
continuous basis.

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 receivables from customers.

The Company''s credit risk is primarily to the amount due from customer and investments. The Company maintains a defined credit policy and
monitors the exposures to these credit risks on an ongoing basis. Credit risk on cash and cash equivalents is limited as the Company generally
invests in deposits with scheduled commercial banks with high credit ratings assigned by domestic credit rating agencies.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are unsecured and are derived
from revenue earned from customers primarily located in India. The Company does monitor the economic enviorment in which it operates. The
Company manages its Credit risk through credit approvals, establishing credit limits and continuosly monitoring credit worthiness of customers
to which the Company grants credit terms in the normal course of business.

On adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company establishes an
allowance for impairment that represents its expected credit losses in respect of trade receivable. The management uses a simplified approach
(i.e. based on lifetime ECL) for the purpose of impairment loss allowance, the company estimates amounts based on the business environment
in which the Company operates, and management considers that the trade receivables are in default (credit impaired) when counterparty seems
partly or fully doubtful to pay its obligations.

When a trade receivable is credit impaired, it is written off against trade receivables and the amount of the loss is recognised in the income
statement. Subsequent recoveries of amounts previously written off are credited to the income statement.

Trade receivables as at year end primarily relate to revenue generated from rendering of services.

Trade receivables are generally realised within the credit period.

This definition of default is determined by considering the business environment in which entity operates and othe macro-economic factors.
Further, the Company does not anticipate any material credit risk of any of its other receivables.

48 b). Financial risk management (continued)

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that
it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company''s reputation.

The Company believes that its liquidity position, including total cash (including bank deposits under lien and excluding interest accrued but
not due) of Rs.643.76 lac as at March 31, 2025 (March 31, 2024: Rs. 963.79 lac ) and the anticipated future internally generated funds from
operations will enable it to meet its future known obligations in the ordinary course of business.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an
adequate amount of credit facilities to meet obligations when due. The Company''s policy is to regularly monitor its liquidity requirements
to ensure that it maintains sufficient reserves of cash and funding from group companies to meet its liquidity requirements in the short and
long term.

The Company''s liquidity management process as monitored by management, includes the following:

- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.

- Maintaining rolling forecasts of the Company''s liquidity position on the basis of expected cash flows.

b). Financial risk management (continued)
iii). Market risk

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk
comprises three types of risk: interest rate risk, currency risk and other price risk, the Company mainly has exposure to one type of market
risk namely: interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.

Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The
Company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate
risk.

Exposure to interest rate risk

The Company''s interest rate risk arises majorly from the term loans from banks carrying floating rate of interest. These obligations exposes the
Company to cash flow interest rate risk. Since the Company has no variable borrowing rates in the current year, the Company is not exposed to
interest rate risk.

49 Capital Management

For the purpose of the Company''s capital management, capital includes issued equity share capital and all other equity reserves attributable
to the equity holders of the Company.

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure. The Company
manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the
underlying assets.

To maintain or adjust the capital structure, the Company may return capital to shareholders, raise new debt or issue new shares.

The Company monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debts divided by total capital
(equity attributable to owners of the parent plus interest-bearing debts).

The Almondz Global Securities Employees Stock Option Scheme 2007 ("ESOS” or “Scheme”) as approved by the Shareholders of the
Company, the Company after taking into effect of the split of shaes of

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Mar 31, 2024

(ii) Provisions, contingent liabilities and contingent assets

Provisions are recognised only when there is a present obligation, as a result of past events, and when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values, where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the control of the Company or

• Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are neither recognised nor disclosed except when realisation of income is virtually certain, related asset is disclosed.

(in) Property, plant and equipment

Recognition and initial measurement

Property, plant and equipment are stated at their cost of acquisition. The cost comprises purchase price, borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable

that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repair and maintenance costs are recognised in statement of profit and loss.

Subsequent measurement (depreciation method, useful lives and residual value)

Property, plant and equipment are subsequently measured at cost less accumulated depreciation and impairment losses. Depreciation on property, plant and equipment is provided on the written-down method over the useful life of the assets as prescribed under Part ''C'' of Schedule II of the Companies Act, 2013.

Asset clas Useful life

Building 60 years

Plant and machinery 5 years

Office equipment 5 years

Computer equipment 3 years

Furniture and fixtures 10 years

Vehicles 8-10 years

Depreciation is calculated on pro rata basis from the date on which the asset is ready for use or till the date the asset is sold or disposed.

The residual values, useful lives and method of depreciation are reviewed at the end of each financial year.

De-recognition

An item of property, plant and equipment and any significant part initially recognised is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognised in the statement of profit and loss, when the asset is de-recognised.

Capital work-in-progress

Capital work-in-progress are carried at cost, comprising direct cost and related incidental expenses to acquire property, plant and equipment. Assets which are not ready for intended use are also shown under capital work-in-progress.

(iv) Intangible assets

Recognition and initial measurement

Intangible assets are stated at their cost of acquisition. The cost comprises purchase price including license fees paid, import duties and other taxes (other than those subsequently recoverable from taxation authorities), borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use.

Subsequent measurement (amortisation method, useful lives and residual value)

Intangible assets are amortised over a period of 3 years from the date when the assets are available for use. The estimated useful life (amortisation period) of the intangible assets is arrived basis the expected pattern of consumption of economic benefits and is reviewed at the end of each financial year and the amortisation period is revised to reflect the changed pattern, if any.

Investment Property

Property that is held to earn rentals and for capital appreciation. Investment property is measured initially at its cost, including

related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognized. Subsequent to initial recognition, investment properties are measured in accordance with Ind AS 16''s requirements for cost model.

(v) Revenue from Operations

The company recognizes revenue in accordance with INDAS-115, revenue is to be recognized upon transfer of control of promised services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those services.

Revenue from fixed price, fixed time frame contracts where the performance obligation are satisfied over time and when there is no uncertainty as to measurement or collectivity of consideration is recognized as per percentage of completion method.

However, only for the purpose of matching expense with revenue, in some cases we provide consultancy services for preparing Detailed Project Report (DPR) -

• on a continuous basis to the authority,

• the duration of such services to be provided under the contract is more than three months and

• the same is against periodic payment of consultancy fee

Hence income on such incomplete DPR projects is recognized on percentage of completion method as unbilled revenue.

Revenue includes the following:

i) Brokerage fee income

Revenue from contract with customer is recognized point in time when performance obligation is satisfied (when the trade is executed i.e., trade date). These include brokerage fees which is charged per transaction executed on behalf of the clients.

ii) Fees & Commission Income

This includes:

a) Income from investment banking activities and other fees.

Income from investment banking activities and other fees is recognized as and when such services are completed / performed and as per terms of agreement with the client (i.e. when the performance obligation is completed).

b) Income from depository operations.

Income from depository operations is accounted when the performance obligation is completed.

c) Income from wealth management services

Commission (net of taxes and other statutory charges) income from distribution of financial products is recognized based on mobilization and intimation received from clients/ intermediaries or over the period of service after deducting claw back as per the agreed terms.

iii) Interest Income

Under Ind AS 109 interest income is recognized by applying the Effective Interest Rate (EIR) to the gross carrying amount of financial assets other than credit-impaired assets and financial assets classified as measured at FVTPL.

The EIR in case of a financial asset is computed:

a. As the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset.

b. By considering all the contractual terms of the financial instrument in estimating the cash flows.

c. Including all fees received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts.

Any subsequent changes in the estimation of the future cash flows is recognised in the Statement of profit and loss with the corresponding adjustment to the carrying amount of the assets.

Interest income on credit impaired assets is recognised by applying the effective interest rate to the net amortised cost (net of provision) of the financial asset.

iv) Dividend Income Dividend income is recognized

a. When the right to receive the payment is established,

b. it is probable that the economic benefits associated with the dividend will flow to the Company and

c. the amount of the dividend can be measured reliably

v) Net gain on Fair value changes

Any differences between the fair values of financial assets (including investments, derivatives and stock in trade) classified as fair value through the profit or loss (“FVTPL”) (refer Note 34), held by the Company on the balance sheet date is recognized as an unrealized gain / loss. In cases there is a net gain in the aggregate, the same is recognized in “Net gains on fair value changes” under Revenue from operations and if there is a net loss the same is disclosed under “Expenses” in the statement of profit and loss.

Similarly, any realized gain or loss on sale of financial instruments measured at FVTPL is recognized in net gain / loss on fair value changes.

However, net gain / loss on de-recognition of financial instruments classified as amortized cost is presented separately under the respective head in the statement of profit and loss.

vi) Trading shares & Securities:

Revenue on account of trading in shares is recognised on the basis of each trade executed at the stock exchange during the financial year.

In respect of non-delivery based transactions such as derivatives and intraday, the profit and loss is accounted for at the completion of each settlement, however in case of an open settlement the net result of transactions which are squared up on FIFO basis is recognised as profit/loss in the account.

vii) Other Revenue

In respect of other heads of income, the Company follows the practice of recognising income on accrual basis.

(vi)Expenses

Expenses are recognised on accrual basis and provisions are made for all known losses and liabilities. Expenses incurred on behalf of other companies, in India, for sharing personnel, common services and facilities like premises, telephones, etc. are allocated to them at cost and reduced from respective expenses.

Similarly, expenses allocation received from other companies is included within respective expense classifications.

(vii) Borrowing costs

Borrowing costs that are directly attributable to the acquisition and/ or construction of a qualifying asset, till the time such qualifying assets become ready for its intended use, are capitalised. Borrowing cots consists of interest and other cost that the Company incurred in connection with the borrowing of funds. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss as incurred basis the effective interest rate method.

(viii) Taxation

Tax expense recognised in Statement of Profit and Loss comprises the sum of deferred tax and current tax except to the extent it recognised in other comprehensive income or directly in equity.

Current tax comprises the tax payable or receivable on taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. Current tax is computed in accordance with relevant tax regulations. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received after considering uncertainty related to income taxes, if any. Current 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 assets and liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Minimum alternate tax (''MAT'') credit entitlement is recognised as an asset only when and to the extent there is convincing evidence that normal income tax will be paid during the specified period. In the year in which MAT credit becomes eligible to be recognised as an asset, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT credit entitlement. This is reviewed at each balance sheet date and the carrying amount of MAT credit entitlement is written down to the extent it is not reasonably certain that normal income tax will be paid during the specified period.

Deferred tax is recognised in respect of temporary differences between carrying amount of assets and liabilities for financial reporting purposes and corresponding amount used for taxation purposes. Deferred tax assets are recognised on unused tax loss, unused tax credits and deductible temporary differences to the extent it is probable that the future taxable profits will be available against which they can be used. This is assessed based on the Company''s forecast of future operating results, adjusted for significant nontaxable income and expenses and specific limits on the use of any unused tax loss. 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 and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the

reporting date to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously. Deferred tax relating to items recognised outside statement of profit and loss is recognised outside statement of profit or loss (either in other comprehensive income or in equity).

(ix) Employee benefits Short-term employee benefits

Short-term employee benefits including salaries, short term compensated absences (such as a paid annual leave) where the absences are expected to occur within twelve months after the end of the period in which the employees render the related service, profit sharing and bonuses payable within twelve months after the end of the period in which the employees render the related services and non-monetary benefits for current employees are estimated and measured on an undiscounted basis.

Post-employment benefit plans are classified into defined benefits plans and defined contribution plans as under:

Defined contribution plans

The Company has a defined contribution plans namely provident fund, pension fund and employees state insurance scheme. The contribution made by the Company in respect of these plans are charged to the Statement of Profit and Loss.

Defined benefit plans

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. Under the defined benefit plans, the amount that an employee will receive on retirement is defined by reference to the employee''s length of service and last drawn salary. The legal obligation for any benefits remains with the Company, even if plan assets for funding the defined benefit plan have been set aside. The liability recognised in the statement of financial position for defined benefit plans is the present value of the Defined Benefit Obligation (DBO) at the reporting date less the fair value of plan assets. Management estimates the DBO annually with the assistance of independent actuaries. Actuarial gains/losses resulting from re-measurements of the liability/asset are included in other comprehensive income.

Other long-term employee benefits

The Company also provides the benefit of compensated absences to its employees which are in the nature of long-term employee benefit plans. Liability in respect of compensated absences becoming due and expected to avail after one year from the Balance Sheet date is estimated in the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method as on the reporting date. Actuarial gains and losses arising from experience and changes in actuarial assumptions are charged to Statement of Profit and Loss in the year in which such gains or losses are determined.

(x) Leases Company as a lessee

The Company''s lease asset classes primarily consist of leases for land and buildings. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset,

the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all the economic benefits from use of the asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset

At the date of commencement of the lease, the Company recognises a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low value leases. For these short-term and low-value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

The ROU assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. ROU assets 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 (CGU) to which the asset belongs.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related ROU asset if the Company changes its assessment of whether it will exercise an extension or a termination option.

Lease liability and ROU assets have been separately presented in the Balance Sheet

The Company as a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the ROU asset arising from the head lease.

For operating leases, rental income is recognised on a straight-line basis over the term of the relevant lease.

(xii)Earnings per share

Basic earnings per share is 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. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net profit or loss (interest and other finance cost associated) 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.

(xii)Foreign currency

Transactions and balances

Foreign currency transactions are translated into the functional currency, by applying the exchange rates on the foreign currency amounts at the date of the transaction. Foreign currency monetary items outstanding at the balance sheet date are converted to functional currency using the closing rate. Non-monetary items denominated in a foreign currency which are carried at historical cost are reported using the exchange rate at the date of the transaction.

Exchange differences arising on monetary items on settlement, or restatement as at reporting date, at rates different from those at which they were initially recorded, are recognised in the Statement of Profit and Loss in the year in which they arise.

Transition to Ind AS

The Company has elected to exercise the option for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP.

(xiii)Impairment of assets

a) Impairment of non-financial assets

The company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset required, the company estimates the assets recoverable amount. An asset''s recoverable is the higher of an asset''s fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets.

If such assets are considered to be impaired, the impairment to be recognized in the statement of Profit and loss is measured by the amount by which the carrying amount value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) has no impairment loss been recognized for the asset in prior years.

b) Impairment of financial assets

The company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit and loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. The company applies a simplified approach in calculating Expected Credit Losses (ECLs) on trade receivables. Therefore, the company does not track changes in credit risk, but instead recognize a loss allowance based on lifetime ECLs at each reporting date. The

company established a provision matrix that is based on its historical credit loss experience, adjusted for forward looking factors specific to the debtors and the economic environment.

For all other financial assets, expected credit loss are measured at an amount equal to the 12 month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in the statement of profit and loss.

(xiv)Financial instruments

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

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs. Subsequent measurement of financial assets and financial liabilities is described below.

Non-derivative financial assets

Subsequent measurement

i. Financial assets carried at amortised cost - a financial asset is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• 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. Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in interest income in the Statement of Profit and Loss.

Investments in equity instruments - Investments in equity instruments which are held for trading are classified as at fair value through profit or loss (FVTPL). For all other equity instruments, the Company makes an irrevocable choice upon initial recognition, on an instrument by instrument basis, to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL). Amounts presented in other comprehensive income are not subsequently transferred to profit or loss. However, the Company transfers the cumulative gain or loss within equity. Dividends on such investments are recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.

De-recognition of financial assets

Financial assets (or where applicable, a part of financial asset or part of a group of similar financial assets) are de-recognised (i.e. removed from the Company''s balance sheet) when the contractual rights to receive the cash flows from the financial asset have expired, or when the financial asset and substantially all the risks and rewards are transferred. Further, if the Company has not retained control, it shall also de-recognise the financial asset and recognise separately as assets

or liabilities any rights and obligations created or retained in the transfer.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expired. 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 de-recognition 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.

First loss default guarantee

First loss default guarantee contracts are contracts that require the Company to make specified payments to reimburse the bank and financial institution for a loss it incurs because a specified debtor fails to make payments when due, in accordance with the terms of an agreement. Such financial guarantees are given to banks and financial institutions, for whom the Company acts as ''Business Correspondent''.

These contracts are initially measured at fair value and subsequently measure at higher of:

• The amount of loss allowance (calculated as described in policy for impairment of financial assets)

• Maximum amount payable as on the reporting date to the respective bank/financial institution which is based on the amount of loans overdue for more than 75-90 days in respect to agreements with banks and financial institutions.

Further, the maximum liability is restricted to the cash outflow agreed in the agreement.

Offsetting 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, to realise the assets and settle the liabilities simultaneously.

(xv) Operating segments

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Company), whose operating results are regularly reviewed by the Company''s management to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. Operating segments of the Company are reported in a manner consistent with the internal reporting provided to the company''s management.

(xvi) Share Based payment

The Employees Stock Option Scheme ("the Scheme”) provides for grant of equity shares of the Company to whole-time directors and employees of the Company. The fair value of options granted under Employee Stock Option Plan is recognised as an employee benefits expense with a corresponding increase in other equity. The total amount to be expensed is determined by reference to the fair value of the options. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the

impact of the revision to original estimates, if any, in Statement of Profit and Loss, with a corresponding adjustment to equity.

(xvii) Stock-in-trade

A financial instrument is classified as held for trading if it is acquired or incurred principally for selling or repurchasing in the near term, or forms part of a portfolio of financial instruments that are managed together and for which there is evidence of short-term profit taking, or it is a derivative not designated in a qualifying hedge relationship. Trading derivatives and trading securities are classified as held for trading and recognized at fair value.

(xviii) Equity investment in subsidiaries

Investments representing equity interest in subsidiaries are accounted for at cost in accordance with Ind AS 27 Separate Financial Statements.

(xix) Government grants

Grants and subsidies from the government are recognised when there is reasonable assurance that:

(i) the Group will comply with the conditions attached to them, and

(II) the grant/subsidy will be received.

Grant or subsidy relates to revenue, it is recognised as income on a systematic basis in profit or loss over the periods necessary to match them with the related costs, which they are intended to compensate.

2.2 Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time.

There is no such notification which would have been applicable from 1st April 2024.

D. Estimation of fair values

The Company obtains independent valuations for each of its investment property by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued.

Fair market value is the amount expressed in terms of money that may be reasonably be expected to be exchanged between a willing buyer and a willing seller, with equity or both. The valuation by the valuer assumes that Company shall continue to operate and run the assets to have economic utility.

Valuation technique:

Under the market comparable method (or market comparable approach), a property''s fair value is estimated based on comparable transactions.The market comparable approach is based upon the principle of substitution under which a potential buyer will not pay more for the property than it will cost to buy a comparable substitute property. In theory, the best comparable sale would be an exact duplicate of the subject property and would indicate, by the known selling price of the duplicate, the price for which the subject property could be sold. The unit of comparison applied by the Company is the price per square metre (sqm).

Footnotes:

(i) Details of vehicle loans

Vehicle loan from HDFC Bank - for Lexus Car is taken on 03.06.2022 amounting Rs. 69.50 lac- repayable in 60 equated monthly installment of Rs. 1.38 lac from July 2023 and hypothecated against vehicle purchased. The last installment is due on 07-06-2027. The interest rate is 7.30 % p.a.

Vehicle loan from Axix Bank - for Vitara Car is taken on 31.12.2023 amounting Rs. 15.00 lac- repayable in 39 equated monthly installment of Rs. 0.45 lac from Jan 2024 and hypothecated against vehicle purchased. The last installment is due on 005-03-2027. The interest rate is 9.25% p.a.

(ii) Details of overdraft from banks

Overdraft limit of Rs. 14.71 lac (previous year Rs.54.76 lac ) is secured by way of pledged fixed deposits with IDBI Bank Limited, the rate of interest of which is 8.15% per annum.

Overdraft limit of Rs. 4.72 lac (previous year Rs. Nil lacs) is secured by way of pledged fixed deposits with Vijaya Bank, the rate of interest of which is 8.5% per annum. Overdraft limit of Rs. 281.87 lac (previous year Rs. Nil lacs) is secured by way of pledged securities / fixed deposits with Axis Bank, the rate

of interest of which is 8.5% per annum.

(iii) Details of others

12,00,000 ; 7% Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) of Rs. 100/- each, at par aggregating to Rs. 1200 Lac to Avonmore Capital & Management Services Limited being one of Promoters of the Company with rights and privileges as per applicable law. Preference shares has been redeemed on 21st December 2023.

The company has not used the borrowings from banks and financial institutions for the purpose other than specific purpose for which it was taken at the balance sheet date.

a) . Terms and rights attached to equity shares

Voting

Each equity holder has voting rights on a poll in proportion to his share in the paid up equity share capital.

On show of hands, every member present in person and being holders of equity shares shall have one vote.

Dividends

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in ensuing Annual General Meeting except in the case where interim dividend is distributed.

During the year ended March 31, 2024, the company has recorded per share dividend of Rs. Nil (previous year Nil) to its equity holders.

Liquidation

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

b) . Terms and rights attached to preference shares

7% Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) were non-convertible and hence being compound financial instrument , equity component shown as other equity and liability component as borrowings in accordance with Ind AS 109 on Financial Instruments.

12,00,000 ; 7% Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) of Rs. 100/- each, at par aggregating to Rs. 1200 Lac to Avonmore Capital & Management Services Limited being one of Promoters of the Company with rights and privileges as per applicable law.

Preference shares redeemed pre-maturity on 31 December 2023.

C Contingent assets

The Company does not have any contingent assets as at March 31, 2024 and March 31, 2023.

D Financial Guarantee contracts ( FGCs ) as per Ind AS 109

The Company has given corporate guarantees of Rs.1725.70 lac (previous year Rs.1304.26 lacs) to the lenders of AGICL, wholly owned subsidiary of the Company(AGSL) and corporate guarantees of Rs.1.89 lac (previouos year Rs.23.34 lacs) to the lenders of Skiffle, wholly owned subsidiary of the Company(AGSL).

As per Ind As109, Financial Guarantee contracts are realised at fair value.The fair value of the guarantee will be the present value of the difference between the net contractual cash flows required under the loan & the net contractual cash flows that would have been required without the guarantee.

The corporate guarantee issued by the company was merely to fulfil the requirements of loan. It would not have resulted in savings in the interest rates.

Therefore the fair value of guarantee which represents the difference in the PV of interest payment over the period is nil.

As per Ind AS 109, FGCs should be initially recognised at fair value. Normally the transaction price is usually the fair value unless it is contrary to arm''s length price.In our case,it is not possible to reliably identify the market price for similar financial guarantee identical to those its parent has given to its subsidiary.

Alternatively fair value can also be determined by estimating using a probability adjusted discounted cash flow analysis. However in our case this method too would not be applicable as the management of AGSL (Parent co issuing corporate guarantee on behalf of its subsidiary) intend that there is no probability of default by its subsidiaries due to its strong order book & cash flows in the forseeable future.So making a small provisioning of loss would not have any material impact in the books of either parent or subsidiary companies.

However management intend to review the position on every balance sheet date over the period of guarantee & make suitable entries in the books of accounts if required,to comply with provisions of Ind as 109 on FGC. In lieu of the above explanations,no financial entry has been made either in the books of parent or subsidiary co either at the date of inception or on balance sheet date.

B. Defined benefit plan:

Gratuity

The Company operates a post-employment defined benefit plan for Gratuity. This plan entitles an employee to receive half month''s salary for each year of completed service at the time of retirement/exit.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognize each period of service as giving rise to additional employee benefit entitlement and measures each unit separately to build up the final obligation. The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31 March 2024. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

46 Operating segments A Basis of segmentation

Segment information is presented in respect of the Company''s key operating segments. The operating segments are based on the Company’s management and internal reporting structure. The chief operating decision maker identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly. All operating segments'' operating results are reviewed regularly by the Board of Directors to make decisions about resources to be allocated to the segments and assess their performance.

The ''Board of Directors'' have been identified as the Chief Operating Decision Maker (CODM), since they are responsible for all major decision with respect to the preparation and execution of business plan, preparation of budget, planning, expansion, alliance, joint venture, merger and acquisition, and expansion of any facility.

The Board of Directors examines the Company''s performance both from a product and geographic perspective and have identified the following reportable segments of its business:

The following summary describes the operations in each of the Company''s reportable segments:

Level 1: It includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data 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. The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar instruments.

The Company''s borrowings have been contracted at floating rates of interest. Accordingly, the carrying value of such borrowings (including interest accrued but not due) which approximates fair value.

The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other financial assets and liabilities, approximates the fair values, due to their short-term nature. Fair value of financial assets and security deposits is smiliar to the carrying value as there is no significant differences between carrying value and fair value.

The fair value for security deposits were calculated based on discounted cash flows using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

Valuation processes

The Management performs the valuations of financial assets and liabilities required for financial reporting purposes on a periodic basis, including level 3 fair values.

b). Financial risk management

The Group has exposure to the following risks arising from financial instruments:

¦ Credit risk

¦ Liquidity risk

¦ Interest rate risk

Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors have authorised senior management to establish the processes and ensure control over risks through the mechanism of properly defined framework in line with the businesses of the company.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risks limits and controls, to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company has policies covering specific areas, such as interest rate risk, foreign currency risk, other price risk, credit risk, liquidity risk, and the use of derivative and non-derivative financial instruments. Compliance with policies and exposure limits is reviewed on a continuous basis.

b). Financial risk management (continued)

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company believes that its liquidity position, including total cash (including bank deposits under lien and excluding interest accrued but not due) of Rs.963.79 lac as at March 31, 2024 (March 31, 2023: Rs. 1329.34 lac ) and the anticipated future internally generated funds from operations will enable it to meet its future known obligations in the ordinary course of business.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s policy is to regularly monitor its liquidity requirements to ensure that it maintains sufficient reserves of cash and funding from group companies to meet its liquidity requirements in the short and long term.

The Group''s liquidity management process as monitored by management, includes the following:

- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.

- Maintaining rolling forecasts of the Group''s liquidity position on the basis of expected cash flows.

The above amounts reflects the contractual undiscounted cash flows which may differ from the carrying value of the liabilities at the reporting date. b). Financial risk management

in). Market risk

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, the Company mainly has exposure to one type of market risk namely: interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk

Exposure to interest rate risk

The Company''s interest rate risk arises majorly from the term loans from banks carrying floating rate of interest. These obligations exposes the Company to cash flow interest rate risk. Since the Company has no variable borrowing rates in the current year, the Company is not exposed to interest rate risk.

49 Capital Management

For the purpose of the Company''s capital management, capital includes issued equity share capital and all other equity reserves attributable to the equity holders of the Company.

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

To maintain or adjust the capital structure, the Company may return capital to shareholders, raise new debt or issue new shares.

The Company monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debts divided by total capital (equity attributable to owners of the parent plus interest-bearing debts).

50 Disclosures required pursuant to IND AS 102 - Share Based Payment

Under Employee Stock Option Scheme ( ESOP) of the Company, share options of the Company are granted to senior executives .Vested period ranges from 1 to 3 years . Each option carries the right to the holder to apply for one equity share of the Company at exercise price . There has been no variation in the terms of options during the years. The share options are valued at the fair value of the options as on the date of grant using Black Scholes pricing model. There is no cash settlement alternative.

“The Almondz Global Securities Employees Stock Option Scheme 2007 (“ESOS” or “Scheme”) as approved by the Shareholders of the Company, the Company is entitled, as on the date of this meeting, to grant an aggregate of 1,50,00,000 or 50% of paid-up share capital of the Company, whichever is lower. The Company has granted a total of 10570000 options out of which 49,11,800 options got lapsed, a portion of which had been re-issued by the Company. Further, till date, an aggregate of 563200 options were exercised by the concerned employees of the Company.

52 There are no borrowing costs that have been capitalised during the year ended March 31, 2024 and March 31, 2023.

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

54 Previous year''s figures have been regrouped / reclassified as per the current year’s presentation for the purpose of comparability.

As Per our report of even date.

For Mohan Gupta & Co. For and on behalf of the Board of Directors of

Chartered Accountants Almondz Global Securities Limited

Firm registration No. 006519N

Mohan Gupta Navjeet Singh Sobti Manoj Arora

Partner Managing Director Whole-time Director

Membership No.: 0822466 DIN: 00008393 DIN : 06777177

UDIN - 24082466BKFWXT3127

Rajeev Kumar Ajay Pratap

Chief Financial Officer Company Secretary and

Place: Delhi PAN: ALPPK5252J Vice President of Corporate Affairs

Date: 29th May 2024 Membership No.: F8480

---

Mar 31, 2023

A. Estimation of fair values

The Company obtains independent valuations for each of its investment property by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued.

Fair market value is the amount expressed in terms of money that may be reasonably be expected to be exchanged between a willing buyer and a willing seller, with equity or both. The valuation by the valuer assumes that Company shall continue to operate and run the assets to have economic utility.

Valuation technique:

Under the market comparable method (or market comparable approach), a property''s fair value is estimated based on comparable transactions. The market comparable approach is based upon the principle of substitution under which a potential buyer will not pay more for the property than it will cost to buy a comparable substitute property. In theory, the best comparable sale would be an exact duplicate of the subject property and would indicate, by the known selling price of the duplicate, the price for which the subject property could be sold. The unit of comparison applied by the Company is the price per square metre (sqm).

Fair value hierarchy:

The fair value measurement for the investment property has been categorised as a Level 2 fair value based on the inputs to the valuation technique used.

The valuation techniques and the inputs used in the fair value measurement categorised within Level 2 of the fair value hierarchy is as follows:

Valuation technique Observable inputs

Market method Guideline rate (Per sq. m.)

Similar piece of land rate (Per sq.m.)

Investment property consists of commercial office spaces in Mumbai and Banglore. During financial year 2019-20, the company has revalued the investment property at fair value for disclosure purpose and is based on the valuation by a registered valuer as defined under Rule 2 of Companies ( Registered Valuers and Valuation) Rules , 2017. For FY 2022-23 same valuation has been taken for fair value purpose since there is no significant change in valuation.

Title Deeds of investment properties are in name of the Company.

(i) Details of term loans from banks

Property loan from banks amounting to Rs. Nil (previous year Rs.136.20 lac) is secured by way of equitable mortgage of property at Unit No. 501, Grande Palladium, Kalina, Santacruz East, Mumbai owned by the Company.

(ii) Term loan from HDFC Bank - for Lexus Car is taken on 03.06.2022 amounting Rs. 69.50 lac- repayable in 60 equated monthly installment of Rs. 1.38 lac from July 2023 and hypothecated against vehicle purchased. The last installment is due on 07-06-2027. The interest rate is 7.30 % p.a.

(iii) Details of overdraft from banks

Overdraft limit of Rs. 54.76 lac (previous year Rs.NIL ) is secured by way of pledged fixed deposits with IDBI Bank Limited, the rate of interest of which is 8.15% per annum.

Overdraft limit of Rs. Nil lac (previous year Rs. 0.18 lacs) is secured by way of pledged fixed deposits with Vijaya Bank, the rate of interest of which is 8.5% per annum.

(iv) At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar nonconvertible instruments. This amount is recognised as a liability on an amortised cost basis using the effective interest method until extinguished upon the instrument''s maturity date.

12,00,000; 7% Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) of Rs. 100/- each, at par aggregating to Rs. 1200 Lac to Avonmore Capital & Management Services Limited being one of Promoters of the Company with rights and privileges as per applicable law. Preference shares shall be redeemed in one or more trenches after twenty years from the date of issue.

^(v) The company has not used the borrowings from banks and financial institutions for the purpose other than specific purpose for which it was taken at the balance sheet date.

a) . Terms and rights attached to equity shares

Voting

"Each equity holder has voting rights on a poll in proportion to his share in the paid up equity share capital. On show of hands, every member present in person and being holders of equity shares shall have one vote."

Dividends

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in ensuing Annual General Meeting except in the case where interim dividend is distributed.

During the year ended March 31, 2023, the company has recorded per share dividend of Rs. Nil (previous year Nil) to its equity holders.

Liquidation

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

b) . Terms and rights attached to preference shares

7% Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) were non-convertible and hence being compound financial instrument , equity component shown as other equity and liability component as borrowings in accordance with Ind AS 109 on Financial Instruments.

12,00,000 ; 7% Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) of Rs. 100/- each, at par aggregating to Rs. 1200 Lac to Avonmore Capital & Management Services Limited being one of Promoters of the Company with rights and privileges as per applicable law.

Preference shares shall be redeemed in one or more trenches after twenty yearsfrom the date of issue.

c) . Reconciliation of number of shares outstanding at the beginning and end of the year :

Nature and purpose of other reserves:

a) Securities premium

Securities premium is used to record the premium on issue of shares. It can only be utilisied for limited purposes in accordance with the provisions of the Companies Act, 2013.

b) NCPS Equity

The component parts of compound financial instruments issued by the Company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recognised as a liability on an amortised cost basis using the effective interest method until extinguished upon the instrument''s maturity date.

c) Capital reserve

The capital reserve was generated on account of forfeiture of share warrants.

d) Amalgamation reserve

The amalgamation reserve was generated on account of merger of Almondz Capital Markets Private Limited with Almondz Global Securities Limited in the year 2008.

e) General reserve

General reserve includes amounts set aside from retained profits as a reserve to be utilised for permissable general purpose as per Law.

f) employee stock options outstanding

The Company has an equity-settled share-based payment plans for to eligible employee of the Company, its subsidiaries and its holding company. Refer Note 50 for further details on these plans.

g) Retained earnings

Retained earnings represents the surplus in profit and loss account and appropriations.

h) other comprehensive income

Other comprehensive income consist of remeasurement gains/ losses on defined benefit plans carried through FVTOCI.

i) Share Application Money

Share Application Money is received on account exercise of ESOPs - " Series G" of which allotment of share were made in April 2023.

C Contingent assets

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

D Financial Guarantee contracts ( FGCs ) as per Ind AS 109

The Company has given corporate guarantees of Rs.1191.66 lac (previous year Rs.1142.58 lacs) to the lenders of AGICL, wholly owned subsidiary of the Company (AGSL) and corporate guarantees of Rs.23.44 lac (previous year Rs.43.00 lacs) to the lenders of Skiffle, wholly owned subsidiary of the Company (AGSL).

As per Ind As109, Financial Guarantee contracts are realised at fair value. The fair value of the guarantee will be the present value of the difference between the net contractual cash flows required under the loan & the net contractual cash flows that would have been required without the guarantee.

The corporate guarantee issued by the company was merely to fulfil the requirements of loan. It would not have resulted in savings in the interest rates.

Therefore the fair value of guarantee which represents the difference in the PV of interest payment over the period is nil.

As per Ind AS 109, FGCs should be initially recognised at fair value. Normally the transaction price is usually the fair value unless it is contrary to arm''s length price. In our case, it is not possible to reliably identify the market price for similar financial guarantee identical to those its parent has given to its subsidiary.

Alternatively fair value can also be determined by estimating using a probability adjusted discounted cash flow analysis. However in our case this method too would not be applicable as the management of AGSL (Parent company issuing corporate guarantee on behalf of its subsidiary) intend that there is no probability of default by its subsidiaries due to its strong order book & cash flows in the for seeable future. So making a small provisioning of loss would not have any material impact in the books of either parent or subsidiary companies. However management intend to review the position on every balance sheet date over the period of guarantee & make suitable entries in the books of accounts if required, to comply with provisions of Ind as 109 on FGC. In lieu of the above explanations, no financial entry has been made either in the books of parent or subsidiary co either at the date of inception or on balance sheet date.

41 Leases

The Company is lessee under various operating leases for five properties in various places over India.

The lease terms of these premises range from 1 to 9 years and accordingly are long-term leases. These lease agreements have varying terms and are usually renewable on mutually agreeable terms.

Disclosure in respect of such operating leases is as given below:

42 Ratios

The ratios for the years ended March 31,2023 and March 31,2022 are as follows :

Regulatory information required under (WB) (xvi) of Division III of Schedule III amendment, disclosure of ratios, is not applicable to the Company as it is in broking business and not an NBFC registered under Section 45-IA of Reserve Bank of India Act, 1934.

43 The Company does not have any material transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31 March 2023 and 31 March 2022.

45 Employee benefits

The Company contributes to the following post-employment defined benefit plans in India.

A. Defined contribution plans:

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards provident fund and EDLI, which are defined contribution plans. The Company has no obligations other than to make the specified contributions. The contributions are charged to the statement of profit and loss as they accrue.

B. Defined benefit plan:

Gratuity

The Company operates a post-employment defined benefit plan for Gratuity. This plan entitles an employee to receive half month''s salary for each year of completed service at the time of retirement/exit.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognize each period of service as giving rise to additional employee benefit entitlement and measures each unit separately to build up the final obligation.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31 March 2023. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

On an annual basis, an asset-liability matching study is done by the Company whereby the Company contributes the net increase in the actuarial liability to the plan manager in order to manage the liability risk.

D. Actuarial assumptions a) Economic assumptions

The principal assumptions are the discount rate and salary growth rate. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of liabilities. Salary increase rate takes into account of inflation, seniority, promotion and other relevant factors on long term basis. Valuation assumptions are as follows which have been selected by the company.

The discount rate has been assumed at ‘March 31,2023: 7.29% (31 March 2022: 7.12% ) which is determined by reference to market yield at the balance sheet date on government securities. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

Senstivities due to mortality and withdrawals are not material and hence impact of change not calculated.

Senstivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement and life expectancy are not applicable being a lump sum benefit on retirement.

Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -

A) Salary Increases- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan''s liability.

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

Expected contributions to post-employment benefit plans for the year ending March 31,2023 is Rs.6,29,459.

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 8.05 years (March 31, 2022: 9.11 years).

46 Operating segments A Basis of segmentation

Segment information is presented in respect of the Company''s key operating segments. The operating segments are based on the Company''s management and internal reporting structure. The chief operating decision maker identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly. All operating segments'' operating results are reviewed regularly by the Board of Directors to make decisions about resources to be allocated to the segments and assess their performance.

The ‘Board of Directors'' have been identified as the Chief Operating Decision Maker (CODM), since they are responsible for all major decision with respect to the preparation and execution of business plan, preparation of budget, planning, expansion, alliance, joint venture, merger and acquisition, and expansion of any facility.

The Board of Directors examines the Company''s performance both from a product and geographic perspective and have identified the following reportable segments of its business:

B information about reportable segments

Segment assets, segment liabilities and Segment profit and loss are measured in the same way as in the financial statements.

Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit (before tax), as included in the internal management reports that are reviewed by the Group''s Board of Directors. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Inter-segment pricing, if any, is determined on an arm''s length basis.

D Geographic information

The Company operates from one geographical segment i.e. in India and accordingly there are no reportable geographical segments.

47 Related party disclosures

In accordance with the requirements of Ind AS 24 on Related Party Disclosures, the names of the related parties where control exists and/ or with whom transactions have taken place during the year and description of relationships, as identified and certified by the management are:

Terms and conditions of transactions with the related parties

i) The terms and conditions of the transactions with key management personnel were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to non-key management personnel related entities on an arm''s length basis.

ii) All outstanding balances with these related parties are priced on an arm''s length basis and are to be settled in cash. None of the balances are secured.

48 Fair value measurement and financial instruments a) Financial instruments - by category and fair values hierarchy

The following table shows the carrying amounts and fair value of financial assets and financial liabilties, including their levels in the fair value hierarchy.

Level 1: It includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data 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. The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar instruments.

The Company''s borrowings have been contracted at floating rates of interest. Accordingly, the carrying value of such borrowings (including interest accrued but not due) which approximates fair value.

The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other financial assets and liabilities, approximates the fair values, due to their short-term nature. Fair value of financial assets and security deposits is smiliar to the carrying value as there is no significant differences between carrying value and fair value.

The fair value for security deposits were calculated based on discounted cash flows using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

Valuation processes

The Management performs the valuations of financial assets and liabilities required for financial reporting purposes on a periodic basis, including level 3 fair values. b) Financial risk management

The Company has exposure to the following risks arising from financial instruments:

¦ Credit risk

¦ Liquidity risk

¦ Interest rate risk

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors have authorised senior management to establish the processes and ensure control over risks through the mechanism of properly defined framework in line with the businesses of the company.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risks limits and controls, to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company has policies covering specific areas, such as interest rate risk, foreign currency risk, other price risk, credit risk, liquidity risk, and the use of derivative and non-derivative financial instruments. Compliance with policies and exposure limits is reviewed on a continuous basis.

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 receivables from customers.

The Company''s credit risk is primarily to the amount due from customer and investments. The Company maintains a defined credit policy and monitors the exposures to these credit risks on an ongoing basis. Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with scheduled commercial banks with high credit ratings assigned by domestic credit rating agencies.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are unsecured and are derived from revenue earned from customers primarily located in India. The Company does monitor the economic enviorment in which it operates. The Company manages its Credit risk through credit approvals, establishing credit limits and continuosly monitoring credit worthiness of customers to which the Company grants credit terms in the normal course of business.

On adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade receivable. The management uses a simplified approach (i.e. based on lifetime ECL) for the purpose of impairment loss allowance, the company estimates amounts based on the business environment in which the Company operates, and management considers that the trade receivables are in default (credit impaired) when counterparty seems partly or fully doubtful to pay its obligations.

When a trade receivable is credit impaired, it is written off against trade receivables and the amount of the loss is recognised in the income statement. Subsequent recoveries of amounts previously written off are credited to the income statement.

“Trade receivables as at year end primarily relate to revenue generated from rendering of services. Trade receivables are generally realised within the credit period.”

This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors. Further, the Company does not anticipate any material credit risk of any of its other receivables.

b). Financial risk management (continued)

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company believes that its liquidity position, including total cash (including bank deposits under lien and excluding interest accrued but not due) of Rs.1457.56 lac as at March 31, 2023 (March 31, 2022: Rs. 1742.17 lac ) and the anticipated future internally generated funds from operations will enable it to meet its future known obligations in the ordinary course of business.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s policy is to regularly monitor its liquidity requirements to ensure that it maintains sufficient reserves of cash and funding from group companies to meet its liquidity requirements in the short and long term.

The Company''s liquidity management process as monitored by management, includes the following:

- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.

- Maintaining rolling forecasts of the Company''s liquidity position on the basis of expected cash flows.

b). Financial risk management (continued)

iii). Market risk

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, the Company mainly has exposure to one type of market risk namely: interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk.

Exposure to interest rate risk

The Company''s interest rate risk arises majorly from the term loans from banks carrying floating rate of interest. These obligations exposes the Company to cash flow interest rate risk. Since the Company has no variable borrowing rates in the current year, the Company is not exposed to interest rate risk.

49 Capital Management

For the purpose of the Company''s capital management, capital includes issued equity share capital and all other equity reserves attributable to the equity holders of the Company.

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

To maintain or adjust the capital structure, the Company may return capital to shareholders, raise new debt or issue new shares.

The Company monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debts divided by total capital (equity attributable to owners of the parent plus interest-bearing debts).

⁵⁰ Disclosures required pursuant to iND AS 102 - Share Based Payment

Under Employee Stock Option Scheme ( ESOP) of the Company, share options of the Company are granted to senior executives. Vested period ranges from 1 to 3 years . Each option carries the right to the holder to apply for one equity share of the Company at exercise price. There has been no variation in the terms of options during the years. The share options are valued at the fair value of the options as on the date of grant using Black Scholes pricing model. There is no cash settlement alternative.

The Almondz Global Securities Employees Stock Option Scheme 2007 (“ESOS” or “Scheme”) as approved by the Shareholders of the Company, the Company is entitled, as on the date of this meeting, to grant an aggregate of 1,50,00,000 or 50% of paid-up share capital of the Company, whichever is lower. The Company has granted a total of 10570000 options out of which 49,11,800 options got lapsed, a portion of which had been re-issued by the Company. Further, till date, an aggregate of 563200 options were exercised by the concerned employees of the Company.

The compensation committee in its meeting held on 26th August 2019 has alloted 44,00,000 options under series “G” to eligible employees of the company/its subsidiary company. However, options granted under series A to F are exercised or lapsed. Under Series G, 5,00,000 Options got lapsed.

The compensation committee in its meeting held on 14th September 2020 has alloted 3,00,000 options under series “H” to eligible employees of the company/its subsidiary company.

The compensation committee in its meeting held on 14th September 2020 has alloted 3,00,000 options under series “H” to eligible employees of the company/its subsidiary company.

The compensation committee in its meeting held on 14th March 2022 has alloted 12,10,000 options under series “I” to eligible employees of the company/its subsidiary company. Under Series I, 15,000 options got lapsed.

A compensation committee comprising independent members of the Board of Directors administers the scheme.

52 There are no borrowing costs that have been capitalised during the year ended March 31,2023 and March 31,2022.

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

54 Previous year''s figures have been regrouped / reclassified as per the current year''s presentation for the purpose of comparability.

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Mar 31, 2018

Rights, preferences and restrictions attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value Rs. 6 each. Each member of the Company has voting rights on a poll, in proportion to his share in the paid-up equity share capital. On show of hands every member present in person and being holders of equity shares shall have one vote.

Each shareholder is entitled to receive interim dividend when it is declared by the Board of Directors. The final dividend proposed by the Board of Directors are paid when approved by the shareholders at Annual General Meeting.

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

Employees Stock Option Scheme 2007

The Company has instituted an Employee Stock Option Scheme in the year 2007, known as ‘Employee Stock Option Scheme (‘ESOS’ or ‘Scheme’) 2007. This Scheme was adopted by the Board of Directors on 3 January 2008 and subsequently by shareholders of the Company on 4 March 2008, and is for issue of 4,500,000 options of the Company convertible into equal number of equity shares of the par value of Rs. 6 each. The scheme was further amended by the Board of Directors on 5 March 2010 and subsequently by shareholders of the Company on 13 April 2010 to increase number of options from 45,00,000 options to 15,000,000 options of the Company convertible into equal number of equity shares. A compensation committee comprising independent members of the Board of Directors administers the scheme. The Compensation Committee has framed various plan series under the scheme from time to time. All options had been granted at their intrinsic value defined under the SEBI guidelines.

a) As at 31 March 2018, the Company had 1,53,335 (previous year 3,44,468) number of shares reserved for issue under employee stock option plans. All of above 1,53,335 (previous year 3,44,468) employee stock options are vested and are exercisable at any point of time.

b) Since, no options were granted during the current financial year ended 31 March 2018 and previous year ended 31 March 2017, the disclosures relating to the weighted average fair value of the options granted, effect on compensation cost, performa loss after tax, basic and diluted earnings per share and key assumptions like risk fee interest rate, expected life and expected volatility are not applicable.

Nature of security

Term loan from a bank amounting to Rs.12,43,41,559 (previous year Rs. 15,00,37,869) are secured by way of equitable mortgage of property situated at unit no. 501, Grande Palladium, Kalina, Santacruz East , Mumbai owned by the Company. Further, the loan has also been guaranteed by Mr. Navjeet Singh Sobti, Vice Chairman and Managing Director of the Company.

Finance Lease obligation amounting to Rs. 11,12,154 (previous year Rs. 23,98,299) are secured against hypothecation of specific vehicles financed.

Terms of payment

Term loan taken from Bank and carries an interest rate of MCLR for 1 year tenure. The interest rate as at year end is 10.85% per annum (previous year 10.85% from financial institution). The last installment would fall due on 19 December 2021. The loan is repayable in 59 equal monthly installments along with the interest. Loan amounting to Rs. 2,74,64,445 (previous year Rs. 2,57,04,377) repayable in next 12 months has been shown as current maturities of secured long-term borrowings in Note 2.8.

Loans are repayable in 36 equal monthly installments along with the interest and carries fixed interest rate from 10.00% to 11.00% per annum specific to the respective banks. The last installment would fall due on 05 January 2020. Loan amounting to Rs. 7,96,308 (previous year Rs. 12,86,145) repayable in next 12 months has been shown as current maturities of secured longterm borrowings in Note 2.8..

a) Federal Bank Limited

Working capital limit of Rs. 2,500 lacs is secured by way of pledge of securities purchased and held in Demat Account with Axis Bank Limited, counter guarantee of the company and personal guarantee of Mr. Navjeet Singh Sobti (Vice-Chairman and Managing Director). The rate of interest is 10.95% p.a. The amount outstanding as on 31^st March 2018 is Rs.7,88,002.

b) IDBI Bank Limited

Overdraft limit of Rs. 200 lacs is secured by way of pledge of Fixed Deposit with IDBI Bank Limited. The rate of interest is 9.15% p.a. The amount outstanding as on 31^st March 2018 is Rs.50,79,209.

¹The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that Micro and Small Enterprises should mention in their correspondence with their customers, the Entrepreneurs Memorandum number as allocated after filing of the Memorandum. Based on information received and available with the Company, there are no trade payables and other current liabilities payable to Micro and Small Enterprises as at 31 March 2018 and 31 March 2017.

1.1 Earnings per share

Earnings per share (EPS) are computed in accordance with AS 20-Earnings per share by dividing the net profit after tax by the weighted average number of equity shares outstanding for the period.

1.2 Disclosures required under AS-15-Employee Benefits

The Company has a defined benefit gratuity plan. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

1.3 Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 61,05,680 (previous year Rs. 61,05,680).

1.4 Related Party Disclosures

(A) Names of related parties and description of relationship:

(i) Holding Company

Avonmore Capital and Management Services Limited (ACMS)

(ii) Subsidiaries (entities over which the Company exercises control)

Almondz Finanz Limited (AFL)

Almondz Commodities Private Limited (ACPL)

Almondz Wealth Advisors Limited (AWAL)

Almondz Debt Advisors Limited (ADAL)

Skiffle Healthcare Services Limited (SHSL)

North Square Projects Private Limited (NSPPL)

Almondz Global Infra-Consultant Limited (AGICL)

(iii) Associates

Almondz Insolvency Resolution Services Private Limited

(iv) Enterprises over which Key Managerial Personnel and relatives of such personnel exercise significant influence

Rinku Sobti Fashions (P) Limited (RSFPL)

Radha Madhav Centre for Social and Cultural Development

(v) Key Managerial Personnel

Mr. Navjeet Singh Sobti (Vice Chairman and Managing Director w.e.f.12 August 2014)

Mr. Jagdeep Singh (Whole Time Director)

Mr. Govind Prasad Agrawal (Chief Financial Officer upto 10 November 2016)

Mr. Rajeev Kumar (Chief Financial Officer w.e.f. 11 November 2016)

Mr. Ajay Pratap (Company Secretary and Vice President Corporate Affairs)

(vi) Relatives of Key Managerial Personnel

Mrs. Gurpreet N.S. Sobti Navjeet Singh Sobti (HUF)

Jagdeep Singh (HUF)

Mr. Surinderjeet Singh Mrs. Bimla Kaur Mr. Manpreet Singh Mrs. Parmeet Kaur

Notes:

(I) Business Segments: The Company’s business segments have been classified as above. This business segregation forms the basis for review of operating performance by the management. The following are the business segments identified by the management:

- Debt & equity market operations comprises dealing/trading in shares and bonds which involves exposure to market risk.

- Corporate finance & advisory fee comprises merchant banking, underwriting commission, corporate and loan syndication fees and arranger of debts/bonds, etc. These are mainly in the nature of services involving no or negligible risk.

- Wealth / Broking activities comprises Stock and Share broking on National Stock Exchange of India Limited and Bombay Stock Exchange Limited and other related ancillary services, broking and commission of mutual funds, equity initial public offerings, capital gain bonds, fixed deposits of government undertakings and RBI taxable bonds, etc. These are mainly in the nature of services involving no or negligible risk.

- Infrastructure advisory comprises advisory services in relation to infrastructure projects mainly in the nature of services involving no or negligible risk.

(II) The company operates in India and hence there are no reportable Geographical Segments.

(III) The Board of directors, at its meeting held on 31 March 2015, decided to dispose of the Company’s Retail Distribution division to one of its subsidiaries namely Almondz Wealth Advisors Limited. The said division is yet to be disposed off.

1.5 Operating lease obligations

The Company has taken various office premises on operating lease. The total of the future minimum lease payments under non-cancellable operating lease are as follows:

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Mar 31, 2016

Rights, preferences and restrictions attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value Rs. 6 each. Each member of the Company has voting rights on a poll, in proportion to his share in the paid-up equity share capital. On show of hands every member present in person and being holders of equity shares shall have one vote.

Each shareholder is entitled to receive interim dividend when it is declared by the Board of Directors. The final dividend proposed by the Board of Directors are paid when approved by the shareholders at Annual General Meeting.

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

Employees Stock Option Scheme 2007

The Company has instituted an Employee Stock Option Scheme in the year 2007, known as ‘Employee Stock Option Scheme (‘ESOS'' or ‘Scheme'') 2007. This Scheme was adopted by the Board of Directors on 3 January 2008 and subsequently by shareholders of the Company on 4 March 2008, and is for issue of 45,00,000 options of the Company convertible into equal number of equity shares of the par value of Rs. 6 each. The scheme was further amended by the Board of Directors on 5 March 2010 and subsequently by shareholders of the Company on 13 April 2010 to increase number of options from 45,00,000 options to 1,50,00,000 options of the Company convertible into equal number of equity shares. A compensation committee comprising independent members of the Board of Directors administers the scheme. The Compensation Committee has framed various plan series under the scheme from time to time. All options had been granted at their intrinsic value defined under the SEBI guidelines.

The weighted average share price of options exercised under the scheme during the year ended 31 March 2012 was Rs.26.65. No options were exercised during the year ended 31 March 2016 and 31 March 2015.

a) As at 31 March 2016, the Company had 4,29,000 (previous year 10,16,000) number of shares reserved for issue under employee stock option plans. All of above 4,29,000 (previous year 10,16,000) employee stock options are vested and are exercisable at any point of time.

b) Since, no options were granted during the current financial year ended 31 March 2016 and previous year ended 31 Mach 2015, the disclosures relating to the weighted average fair value of the options granted, effect on compensation cost, proforma loss after tax, basic and diluted earnings per share and key assumptions like risk fee interest rate, expected life and expected volatility are not applicable.

Nature of security and terms of repayment of secured borrowings:

Nature of security

Term loan from others amounting to Rs. 14,64,20,482 (previous year Rs. 16,82,40,621) are secured by way of equitable mortgage of one of building owned by the Company. Further, the loan has also been guaranteed by Mr. Navjeet Singh Sobti, Vice Chairman and Managing Director of the Company.

Term loans from banks amounting to Rs. 12,08,816 (previous year Rs. 16,77,702) are secured against hypothecation of specific vehicles financed.

Terms of payment

Term loan is taken from financial institution and carries an interest rate of LIBOR minus 100 bps. The interest rate as at year end is 12.70% per annum (previous year 13.00%).

The last installment would fall due on 10 July 2020. The loan is repayable in 120 equal monthly installments along with the interest. Loan amounting to Rs. 2,16,45,068 (previous year Rs. 1,85,54,566) repayable in next 12 months has been shown as current maturities of secured long-term borrowings in Note 2.8.

Loans are repayable in 36 equal monthly installments along with the interest and carries fixed interest rate from 10.00% to 11.00% per annum specific to the respective banks. The last installment would fall due on 05 December 2018. Loan amounting to Rs. 14,89,251 (previous year Rs. 10,37,052) repayable in next 12 months has been shown as current maturities of secured long- term borrowings in Note 2.8.

a) Axis Bank Limited

i) Working capital limit of Rs. 5,000 lacs from Axis Bank Limited is secured by way of pledge of securities purchased and held in Demat Account with Axis Bank Limited, counter guarantee of the company and personal guarantee of Mr. Navjeet Singh Sobti (Vice-Chairman and Managing Director). The rate of interest is 11.75% p.a. The amount outstanding as on 31st March 2016 is Rs.1,36,10,940.

ii) Overdraft limit of Rs. 250 lacs from Axis Bank Limited is secured by way of pledge of shares held in Demat account with Axis Bank Limited. The rate of interest is 12.50% p.a. The amount outstanding as on 31st March 2016 is Rs. 80,03,803.

b) IDBI Bank Limited

i) Overdraft limit of Rs. 200 lacs from IDBI Bank Limited is secured by way of pledge of Fixed Deposit with IDBI Bank Limited. The rate of interest is 11% p.a. The amount outstanding as on 31st March 2016 is Rs. 1,84,00,655.

c) Punjab National Bank Limited

i) Working capital limit of Rs. 5,000 lacs from Punjab National Bank is secured by way of pledge of securities purchased and held in SGL Account with PNB Gilts, counter guarantee of the company and personal guarantee of Mr. Navjeet Singh Sobti (Vice-Chairman and Managing Director). The rate of interest is 12.50% p.a. The amount outstanding as on 31st March 2016 is Rs. nil.

ii) Overdraft limit of Rs. 138.75 lacs from Punjab National Bank Limited is secured by way of pledge of Fixed Deposit with Punjab National Bank Limited. The rate of interest is 7% p.a. The amount outstanding as on 31st March 2016 is Rs. nil.

¹ The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that Micro and Small Enterprises should mention in their correspondence with their customers, the Entrepreneurs Memorandum number as allocated after filing of the Memorandum. Based on information received and available with the Company, there are no trade payables and other current liabilities payable to Micro and Small Enterprises as at 31 March 2016 and 31 March 2015.

¹ There are no amounts due for payment to the Investor Education and Protection Fund under Section 125(2) of the Companies Act, 2013 as at the year end.

² The balance includes salary payable amounting to Rs. 1,04,18,316 (previous year Rs. 1,23,64,762).

¹ The Company has carried out computation of deferred tax in accordance with Accounting Standard 22 - Accounting for Taxes on Income notified in the Companies (Accounting Standards) Rules, 2006.

2.32 Related Party Disclosures

(A) Names of related parties and description of relationship :

(i) Holding Company

Avonmore Capital and Management Services Limited (ACMS) (w.e.f. 1 April 2015)

(ii) Subsidiaries (entities over which the Company exercises control)

Almondz Finanz Limited (AFL) (w.e.f. 12 May 2006)

Almondz Commodities Private Limited (ACPL) (w.e.f. 1 April 2008)

Almondz Wealth Advisors Limited (AWAL) (w.e.f. 25 September 2008)

Skiffle Healthcare Services Limited (SHSL) (w.e.f. 15 February 2013)

North Square Projects Private Limited (NSPPL) (w.e.f. 01 June 2014)

Almondz Global Infra-Consultant Limited (AGICL) (w.e.f. 12 December 2013)

(iii) Fellow Subsidiaries

Almondz Infosystem Private Limited

Express Infra Financial Consultancy Private Limited

Red Solutions Private Limited

Latitude 23 Communications Limited

Almondz Insurance Brokers Private Limited

Glow Apparels Private Limited

Avonmore Developer Private Limited

Anemone Holdings Private Limited

Apricot Infosoft Private Limited

Shivsathi Niketan Limited

(iv) Investing parties in respect of which the company is an associate

Avonmore Capital and Management Services Limited (ACMS) (upto 31 March 2015)

Almondz Insurance Brokers Private Limited (AIBPL) (w.e.f. 1 January 2014)*

New Age Blocks Private Limited (NABPL)

Yug Infrastructures Private Limited (YIPL)

* Almondz Re-insurance Brokers Private Limited (ARBPL) which was a subsidiary of Almondz Insurance Brokers Private Limited (AIBPL) has been merged with holding company AIBPL w.e.f. 22 December 2015.

(v) Enterprises over which Key Managerial Personnel and relatives of such personnel exercise significant influence

Innovative Money Matters Private Limited (IMMPL)

Rinku Sobti Fashions (P) Limited (RSFPL)

Premier Alcobev Private Limited (PAPL)

Radha Madhav Centre for Social and Cultural Development

(vi) Key Managerial Personnel

Mr. Vinay Mehta (Managing Director upto 16 July 2014)

Mr. Navjeet Singh Sobti (Executive Vice Chairman and Managing Director w.e.f.12 August 2014)

Mr. Jagdeep Singh (Whole Time Director)

Mr. Govind Prasad Agrawal (Chief Financial Officer)

Mr. Ajay Pratap (Company Secretary)

(vii) Relatives of Key Managerial Personnel

Mrs. Bulbul Dhir Mehta Mrs. Gurpreet N.S. Sobti Navjeet Singh Sobti (HUF)

Jagdeep Singh (HUF)

Mr. Surinderjeet Singh Mrs. Bimla Kaur Mr. Manpreet Singh Mrs. Parmeet Kaur

Notes :

(I) Business Segments : The Company''s business segments have been classified as above. This business segregation forms the basis for review of operating performance by the management. The following are the business segments identified by the management:

- Debt & equity market operations comprises dealing/trading in shares and bonds which involves exposure to market risk.

- Corporate finance & advisory fee comprises merchant banking, underwriting commission, corporate and loan syndication fees and arranger of debts/bonds, etc. These are mainly in the nature of services involving no or negligible risk.

- Broking activities comprises Stock and Share broking on National Stock Exchange of India Limited and Bombay Stock Exchange Limited and other related ancillary services, broking and commission of mutual funds, equity initial public offerings, capital gain bonds, fixed deposits of government undertakings and RBI taxable bonds, etc. These are mainly in the nature of services involving no or negligible risk.

- Infrastructure advisory comprises advisory services in relation to infrastructure projects mainly in the nature of services involving no or negligible risk.

(II) The Board of directors, at its meeting held on 31 March 2015, decided to dispose of the Company''s Retail Distribution

division to one of its subsidiaries namely Almondz Wealth Advisors Limited. The said division is yet to be disposed off.

(III) Accounting policies for segment reporting

* Segments are identified by the management, keeping in view the dominant source and nature of risks and returns and the internal organization and management structure.

* Revenue and expenses have been identified to a segment on the basis of relationship to the operating activities of the segment.

* Revenue and expenses, which relate to the company as a whole and are not allocable to a segment on reasonable basis, have been disclosed as ‘unallowable''.

* Segment assets and liabilities represent assets and liabilities in respective segments. Tax related assets, and other assets and liabilities that are not reported or cannot be allocated to a segment on a reasonable basis, have been disclosed as ‘unallowable''.

---

Mar 31, 2015

1.1 Disclosures required under AS-15-Employee Benefits

The Company has a defined benefit gratuity plan. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

1.2 Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 61,05,680 (previous year Rs .61,05,680).

1.3 In relation to the two of the merchant banking assignments undertaken by the Company, the Securities Exchange Board of India ('SEBI') prohibited the company for five years from the date of interim order i.e. 28th December, 2011, from taking up any new assignments or involvement in any new issue of capital including an IPO, follow on issue etc. or involvement in buy back of securities under SEBI (Buy-Back of Securities) Regulations, 1998, open offers under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and delisting of securities under the SEBI (Delisting of Equity Shares) Regulations, 2009 and suspended the certificate of registration of the company with SEBI under Securities and Exchange Board of India (Merchant Bankers) Regulation, 1992 for a period of six months from 3 March, 2014 (Period of suspension of certificate of registration has since expired). The company has filed appeals with designated authorities.

1.4 Pursuant to enactment of the Companies Act, 2013, the Company has applied the useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depleted over the remaining useful lives. In respect of fixed assets whose lives have expired on 1st April, 2014, the carrying amount has been charged to retained earnings.

1.5 Related Party Disclosures

(A) Names of related parties and description of relationship :

(i) Investing parties in respect of which the company is an associate

Avonmore Capital and Management Services Limited (ACMS)

Almondz Insurance Brokers Private Limited (AIBPL) [with effect from 1 January 2014]

Almondz Re-insurance Brokers Private Limited (ARBPL)

(Subsidiary of Almondz Insurance Brokers Private Limited) [with effect from 1 January 2014]

Almondz Debt Advisors Limited (ADAL) [with effect from 19 August 2013

New Age Blocks Private Limited (NABPL)

Yug Infrastructures Private Limited (YIPL)

(ii) Subsidiaries (entities over which the Company exercises control) Almondz Finanz Limited (AFL)

Almondz Debt Advisors Limited (ADAL) (Subsidiary of Almondz Finanz Limited) [upto 18 August 2013] Almondz Commodities Private Limited (ACPL)

Almondz Wealth Advisors Limited (AWAL) [Formerly Almondz Retail Equity Limited] Almondz Insurance Brokers Private Limited (AIBPL) [Subsidiary upto 31 December 2013] Almondz Re-insurance Brokers Private Limited (ARBPL)

(Subsidiary of Almondz Insurance Brokers Private Limited) [upto 31 December 2013] Skiffle Healthcare Services Limited (SHSL) (Wholly owned subsidiary w.e.f 10 June 2014) North Square Projects Private Limited (NSPPL) (Wholly owned subsidiary w.e.f 01 June 2014) Almondz Global Infra-Consultant Limited (AGICL) [Wholly owned subsidiary w.e.f 12 December 2013]

(iii) Enterprises over which Key Managerial Personnel and relatives of such personnel exercise significant influence

Innovative Money Matters Private Limited (IMMPL)

Rinku Sobti Fashions (P) Limited (RSFPL)

Premier Alcobev Private Limited (PAPL)

Radha Madhav Centre for Social and Cultural Development

(iv) Key Managerial Personnel

Mr. Vinay Mehta (Managing Director upto 16 July 2014)

Mr. Navjeet Singh Sobti (Vice Chairman & Managing Director w.e.f.12 August 2014)

Mr. Jagdeep Singh (Whole Time Director)

Mr. Govind Prasad Agrawal (Chief Financial Officer)

Mr. Ajay Pratap (Company Secretary)

(v) Relatives of Key Managerial Personnel

Mrs. Bulbul Dhir Mehta Mrs. Gurpreet N.S. Sobti Navjeet Singh Sobti (HUF) Jagdeep Singh (HUF) Mr. Surinderjeet Singh Mrs. Bimla Kaur Mr. Manpreet Singh Mrs. Parmeet Kaur

Notes :

(I) Business Segments : The Company's business segments have been classified as above. This business segregation forms the basis for review of operating performance by the management. The following are the business segments identified by the management:

- Debt Market operations comprises dealing/trading in securities and bonds which involves exposure to market risk.

- Corporate finance comprises merchant banking, underwriting commission, corporate and infrastructure advisory and loan syndication fees and arranger of debts / bonds, etc. These are mainly in the nature of services involving no or negligible risk.

- Broking activities comprises Stock and Share broking on National Stock Exchange of India Limited and Bombay Stock Exchange Limited and other related ancillary services, broking and commission of mutual funds, equity initial public offerings, capital gain bonds, fixed deposits of government undertakings and RBI taxable bonds, etc. These are mainly in the nature of services involving no or negligible risk. During the previous financial year, segment Distribution activities and Equity division activities were merged to segment Broking activities.

- Infrastructure advisory comprises advisory services in relation to infrastructure projects mainly in the nature of services involving no or negligible risk.

(II) - The shareholders of the Company approved transfer or otherwise disposal of the Company's undertakings comprising debt arrangement operations, portfolio management services and wholesale debt market operations to Almondz Finanz Limited, a 100% subsidiary of the Company. However, the procedural formalities for implementing the approval granted by the shareholders have not yet been finalised. The Board has decided not to proceed further in the matter for the time being.

- The Board of directors, at its meeting held on 31 March 2015, decided to dispose of the Company's Retail Distribution division to one of its subsidiaries namely Almondz Wealth Advisors Limited. The said division is yet to be disposed off.

(III) Accounting policies for segment reporting

- Segments are identified by the management, keeping in view the dominant source and nature of risks and returns and the internal organization and management structure.

- Revenue and expenses have been identified to a segment on the basis of relationship to the operating activities of the segment.

- Revenue and expenses, which relate to the company as a whole and are not allocable to a segment on reasonable basis, have been disclosed as 'unallocable'.

- Segment assets and liabilities represent assets and liabilities in respective segments. Tax related assets, and other assets and liabilities that are not reported or cannot be allocated to a segment on a reasonable basis, have been disclosed as 'unallocable'

1.6 Operating lease obligations

The Company has taken various office premises on operating lease. The total of the future minimum lease payments under non-cancellable operating lease are as follows:

---

Mar 31, 2014

1.1 Disclosures required under AS-15-Employee Benefits

The Company has a defined benefit gratuity plan. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

Note: Liability in respect of compensated absences at the end of the current year amounts to Rs. 4,596,869 (previous year Rs. 4,560,855).

The estimates of future salary increase considered in actuarial valuation after taking into account the inflation, seniority, promotion and other relevant factors such as demand in the employment market and supply.

Particulars As at As at 31 March 2014 31 March 2013

1 Suit filed by clients on the Company for recovery on account of unauthorized trades on stock exchanges/deficiency in services. These matters are pending before various dispute resolution authorities. 152,547 2,008,206

2 Suit filed by previous employees on the Company for recovery of their dues from Company. These matters are pending before various courts. 596,544 446,544

3 Show cause notice for service tax demand in relation to the financial year ended 31 March 2007 and 31 March 2008. Appeal filed with Service Tax Tribunal R. K . Puram New Delhi. Hearing awaited. 6,444,100 3,221,550

4 Show cause notice for service tax demand in relation to the financial year ended 31 March 2006 till the financial year ended 31 March 2009. Reply filed with Assistant Commissioner of Service Tax, M G Road, New Delhi. Hearing awaited. 1,272,868 1,272,868

5 Corporate guarantee issued for Almondz Finanz Limited, a wholly owned subsidiary of the Company. 300,000,000 300,000,000

6 Corporate guarantee issued for Almondz Commodities Private Limited, a subsidiary of the Company. 50,000,000 50,000,000

7 Income-tax demand raised by Assessing Officer in respect of financial year ended 31 March 2006. Hearing pending at ITAT, Loknath Bhawan, Khan Market, New Delhi. 4,054,709 4,054,709

8 Income-tax demand raised by assessing officer in respect of financial year ended 31 March 2007. Hearing pending at ITAT, Loknath Bhawan, Khan Market, New Delhi. 2,723,937 2,723,937

9 TDS demand raised by Assessing Officer in respect of financial year ended 31 March 2008. Application for amendment filed with concerned department. Reply awaited. 4,410,300 4,410,300

10 Demand of service tax liability on account of short deposit of tax for the period May and June, 2003 vide their order no.50/2011 dated 28.02.2011 by Assistant Commissioner Service Tax, Range-1. Order received from the department in which demand deleted — 419,819

Total 369,655,005 368,557,933

1.2 Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs.6,105,680 (previous year Rs.6,105,680).

1.3 In relation to the two of the merchant banking assignments undertaken by the Company, the Securities Exchange Board of India (''SEBI'') has prohibited the Company for five years from the date of interim order from taking up any new assignments or involvement in any new issue of capital including an IPO, follow on issue etc.or involvement in buy back of securities under SEBI (Buy-Back of Securities) Regulations, 1998, open offers under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and delisting of securities under the SEBI (Delisting of Equity Shares) Regulations, 2009 and suspended the certificate of registration of the company with SEBI under Securities and Exchange Board of India (Merchant Bankers) Regulation, 1992 for a period of six months from 3 March, 2014. The company has filed/in process of filing appeals with designated authorities.

1.4 Related Party Disclosures

(A) Names of related parties and description of relationship:

(i) Investing parties in respect of which the company is an associate

Avonmore Capital and Management Services Limited (ACMS)

Almondz Insurance Brokers Private Limited (AIBPL) [with effect from 1 January 2014]

Almondz Re-insurance Brokers Private Limited (ARBPL)

(Subsidiary of Almondz Insurance Brokers Private Limited) [with effect from 1 January 2014]

Almondz Debt Advisors Limited (ADAL) [with effect from 19 August 2013]

(ii) Subsidiaries (entities over which the Company exercises control)

Almondz Finanz Limited (AFL)

Almondz Debt Advisors Limited (ADAL) (Subsidiary of Almondz Finanz Limited) [upto 18 August 2013]

Almondz Commodities Private Limited (ACPL)

Almondz Wealth Advisors Limited (AWAL) [Formerly Almondz Retail Equity Limited]

Almondz Insurance Brokers Private Limited (AIBPL) [upto 31 December 2013]

Almondz Re-insurance Brokers Private Limited (ARBPL)

(Subsidiary of Almondz Insurance Brokers Private Limited) [upto 31 December 2013]

Skiffle Healthcare Services Limited (SHSL)

Almondz Global Infra-Consultant Limited (AGICL) [with effect from 12 December 2013]

(iii) Enterprises over which Key Managerial Personnel and relatives of such personnel exercise significant influence

Innovative Money Matters Private Limited (IMMPL)

Rinku Sobti Fashions (P) Limited (RSFPL)

New Age Block Private Limited (NABPL)

(iv) Key Managerial Personnel

Mr. Vinay Mehta

Mr. Navjeet Singh Sobti

Mr. Jagdeep Singh

Mr. Govind Prasad Agrawal

(v) Relatives of Key Managerial Personnel

Mrs. Bulbul Dhir Mehta Mrs. Gurpreet N.S. Sobti Navjeet Singh Sobti (HUF)

Jagdeep Singh (HUF)

Mr. Surinderjeet Singh Mrs. Bimla Kaur Mr. Manpreet Singh Mrs. Parmeet Kaur

Radha Madhav Centre for Social and Cultural Development (Trust in which a Key Managerial Personnel is a Trustee)

Notes :

(I) Business Segments : The Company''s business segments have been classified as above. This business segregation forms the basis for reviewof operating performance by the management. The following are the business segments identified by the management :

- Debt Market operations comprises dealing/trading in securities and bonds which involves exposure to market risk.

- Corporate finance comprises merchant banking, underwriting commission, corporate and infrastructure advisory and loan syndication fees and arranger of debts/bonds, etc. These are mainly in the nature of services involving no or negligible risk.

- Broking activities comprises Stock and Share broking on National Stock Exchange of India Limited and Bombay Stock Exchange Limited and other related ancillary services, broking and commission of mutual funds, equity initial public offerings, capital gain bonds, fixed deposits of government undertakings and RBI taxable bonds, etc. These are mainly in the nature of services involving no or negligible risk. During the current financial year, segment Distribution activities and Equity division activities were merged to segment Broking activities. Previous year figures have accordingly been regrouped and/or re-arranged.

(II) The shareholders of the Company approved transfer or otherwise disposal of the Company''s undertakings comprising debt arrangement operations, portfolio management services and wholesale debt market operations to Almondz Finanz Limited, a 100% subsidiary of the Company. However, the procedural formalities for implementing the approval granted by the shareholders have not yet been finalised. The Board has decided not to proceed further in the matter for the time being.

(III) Accounting policies for segment reporting

- Segments are identified by the management, keeping in view the dominant source and nature of risks and returns and the internal organization and management structure.

- Revenue and expenses have been identified to a segment on the basis of relationship to the operating activities of the segment.

- Revenue and expenses, which relate to the company as a whole and are not allocable to a segment on reasonable basis, have been disclosed as ''unallocable''.

- Segment assets and liabilities represent assets and liabilities in respective segments. Tax related assets, and other assets and liabilities that are not reported or cannot be allocated to a segment on a reasonable basis, have been disclosed as ''unallocable.''

1.4 Operating lease obligations

The Company has taken various office premises on operating lease. The total of the future minimum lease payments under non-cancellable operating lease are as follows.

---

Mar 31, 2013

1.1 Disclosures required under AS-15-Employee Benefits

The Company has a defined benefit gratuity plan. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

1.2 Commitments

Estimate amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 6,105,680 (previous year Rs. NIL).

1.3 In relation to two of the merchant banking assignments executed by the Company, Securities Exchange Board of India (''SEBI'') had passed an ex parte ad-interim order prohibiting the Company from taking up any new merchant banking assignments or involvement in any new issue of capital including initial public offerings, follow-on issue and etcetera from the securities market. The ex parte ad interim order was later on confirmed by SEBI and show cause notices under regulations of SEBI (Intermediateries) Regulations, 2008 and under various sections of SEBI Act were issued. The Company has filed its response with the SEBI and the matter is under the SEBI''s consideration. In view of the uncertainty of the ultimate outcome, the impact, if any, cannot be presently ascertained and therefore, no provisions for any liability or any other adjustments that might be required has not been recognised in the financial statements.

1.4 Related Party Disclosures

(A) Names of related parties and description of relationship :

(i) Investing parties in respect of which the company is an associate

Almondz Capital and Management Services Limited (ACMS)

(ii) Subsidiaries (entities over which the Company exercises control) Almondz Finanz Limited (AFL)

Almondz Debt Advisors Limited (ADAL) (Subsidiary of Almondz Finanz Limited) Almondz Commodities Private Limited (ACPL) Almondz Retail Equity Limited (AREL) Almondz Insurance Brokers Private Limited (AIBPL)

Almondz Re-insurance Brokers Private Limited (ARBPL) (Subsidiary of Almondz Insurance Brokers Private Limited) Skiffle Healthcare Services Limited (SHSL) [with effect from 15 February 2013]

(iii) Enterprises over which Key Managerial Personnel and relatives of such personnel exercise significant influence

Innovative Money Matters Private Limited (IMMPL) Rinku Sobti Fashions (P) Limited (RSFPL)

(iv) Key Managerial Personnel

Mr. Vinay Mehta

Mr. Navjeet Singh Sobti

Mr. Jagdeep Singh

(v) Relatives of Key Managerial Personnel

Mrs. Bulbul Dhir Mehta Mrs. Gurpreet N. S. Sobti Navjeet Singh Sobti (HUF) Jagdeep Singh (HUF) Mr. Surinderjeet Singh Mrs. Bimla Kaur Mr. Manpreet Singh Mrs. Parmeet Kaur

1.5 Operating lease obligations

The Company has taken various office premises on operating lease. The total of the future minimum lease payments under non-cancellable operating lease are as follows :

---

Mar 31, 2012

Rights, preferences and restriction attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value Rs. 6 each. Each member of the Company has voting rights on a poll, in proportion to his share in the paid-up equity share capital. On show of hands every member present in person and being holder of equity share shall have one vote.

Each shareholder is entitled to receive interim dividend when it is declared by the Board of Directors. The final dividends proposed by the Board of Directors are paid when approved by the shareholders at annual general meeting.

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

Employees Stock Option Scheme 2007

The Company has instituted an Employee Stock Option Scheme in the year 2000, known as 'Employee Stock Option Scheme ('ESOS' or 'Scheme') 2007. This Scheme was adopted by the Board of Directors on 3 January 2008 and subsequently by shareholders of the Company on 4 March 2008, and is for issue of 4,500,000 options of the Company convertible into equal number of equity shares of the par value of Rs. 6 each. The scheme was further amended by the Board of Directors on 5 March 2010 and subsequently by shareholders of the Company on 13 April 2010 to increase number of options from 4,500,000 options to 15,000,000 options of the Company convertible into equal number of equity shares. A compensation committee comprising independent members of the Board of Directors administers the scheme. The Compensation Committee has framed various series under the scheme from time to time.

The weighted average share price of options exercised under the scheme during the year ended 31 March 2012 and 31 March 2011 was Rs. 26.65 and Rs. 52.14 respectively.

During the year ended 31 March 2012, the Company has revised the exercise price for the outstanding options as at date of revision. The revised exercise price for all the outstanding options of series A, B, C, D and E is Rs. 26.65 per option. The revision of exercise price was approved by Compensation Committee on 7 July 2011, being the closing price of the shares of the Company at Bombay Stock Exchange Ltd. (having higher trading volume) on 6 July 2011.

The following table summarise information about the series of options outstanding under as at 31 March 2012 and 31 March 2011 respectively.

As at 31 March 2012, the Company had 3,294,300 (previous year 3,446,800) number of shares reserved for issue under employee stock option plans. Out of above 2,560,631 (previous year 2,753,800) employee stock options are vested and are exercisable at any point of time.

The exercise prices of all the Company's stock options granted are equal to fair market price on the respective grant dates, accordingly there is no compensation cost to be recognised based on the intrinsic value of the options.

Had the Company used the fair value of options based on black scholes option pricing model, compensation cost for the year ended 31 March 2012 is Rs. 6,511,047 (previous year Rs. 18,936,909) and proforma loss after tax would have been Rs. 43,385,423 (previous year profit after tax of Rs. 46,687,964). On a proforma basis, basic and diluted earnings per share of the Company would have been Rs. 1.64 (previous year Rs. 1.84) respectively.

1Money received against warrants

The Company had allotted 4,510,000 share warrants during the year ended 31 March 2010 at a price of Rs. 57.26 per share warrant. These share warrants were convertible to equal numbers of equity shares at the option of the holder within 18 months from the date of the allotment. The Company had received Rs. 64,560,650 as an advance from the allottees. Since the holders of the warrants did not exercise option to convert the share warrants into equity shares, the advance of Rs. 64,560,650 has been forfeited and transferred to Capital reserve during the year ended 31 March 2012.

2Proposed dividends

Proposed dividend for the current year represents dividend in respect of 400,000 equity shares issued on exercise of employee stock options by certain employees of the Company before the book closure date for declaration of dividends for the financial year ended 31 March 2011. Since the financial statements for the year ended 31 March 2011 had been approved by the Board of Directors prior to the book closure date, the amount has been recorded as appropriation of profits for the year ended 31 March 2012. The Board of Directors has not proposed any dividend for the financial year ended 31 March 2012.

1 The Company has carried out computation of deferred tax in accordance with Accounting Standard 22 - Accounting for Taxes on Income notified in the Companies (Accounting Standards) Rules, 2006. Management is of the view that it is not virtually certain to realise the deferred tax assets arising on carried forward losses and unabsorbed depreciation. Accordingly, in the absence of virtual certainty deferred tax asset has been recognised to the extent of deferred tax liability.

1 The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that Micro and Small Enterprises should mention in their correspondence with their customers the Entrepreneurs Memorandum number as allocated after filing of the Memorandum. Based on information received and available with the Company, there are no trade payable and other current liabilities payable to Micro and Small Enterprises as at 31 March 2012 and 31 March 2011.

2 There are no amounts due for payment to the Investor Education and Protection Fund under Section 205C of the Companies Act, 1956 as at the year end.

3 The balance includes salary payable amounting to Rs. 16,403,887 (previous year Rs. 21,514,595).

1 During the previous year, remuneration paid by the Company to its executive directors exceeded the limits specified in Section 309 of the Companies Act, 1956. The excess remuneration amounted to Rs. 4,732,590. Payment of remuneration in excess of limits specified in Section 309 required prior approval of the Central Government. As at 31 March 2011, the Company's application for waiver of recovery of remuneration paid in excess of limits specified under section 309 was under consideration of the Central Government. Accordingly, pending approval of the waiver application made by the Company, the amount of Rs. 4,732,590 was held under trust by the executive directors of the Company.

During the current year, the Company has received approval of the Central Government. The amount has been recognised as personnel expenses in the Statement of Profit and Loss for the year ended 31 March 2012.

Long-term deposits with maturity of more than 12 months includes Rs. Nil (previous year Rs. 25,500,000) being deposit made with the banks as margin money for obtaining bank guarantees to be submitted with stock exchanges. Further, it also includes Rs. 2,800,000 (previous year Rs. 300,000) earmarked by the management for the settlement of certain liabilities.

1.1 Contingent Liabilities Particulars

As at As at 31 March 2012 31 March 2011

1 Suit filed by clients on the Company for recovery on account of unauthorized trades on stock exchanges/ deficiency in services.

These matters are pending before various dispute resolution authorities. 1,629,009 1,629,009

2 Suit filed by previous employees on the Company for recovery of their dues from Company. These matters are pending before various courts. 446,544 296,544

3 Show cause notice for service tax demand in relation to the financial year ended 31 March 2007 and 31 March 2008. 3,221,550 3,221,550

4 Show cause notice for service tax demand in relation to the financial year ended 31 March 2006 till the financial year ended 31 March 2009. 1,272,868 1,272,868

5 Show cause notice for service tax demand in relation to the financial year ended 31 March 2010. - 1,297,359

6 Corporate guarantee issued for Almondz Finanz Limited, a wholly owned subsidiary of the Company. 300,000,000 800,000,000

7 Corporate guarantee issued for Almondz Commodities Private Limited, a subsidiary of the Company. 50,000,000 -

8 Income-tax demand raised by assessing officer in respect of financial year ended 31 March 2006. 4,054,709 4,054,709

9 Income-tax demand raised by assessing officer in respect of financial year ended 31 March 2007. 2,723,937 2,723,937

10 Tax deducted at sources demand raised by assessing officer in respect of financial year ended 31 March 2008 for Salary and non salary return. 3,137,010 3,137,010

Total 366,485,627 817,632,986

1.2 In relation to two of the merchant banking assignments executed by the Company, Securities Exchange Board of India ('SEBI') had passed an ex parte ad-interim order prohibiting the Company from taking up any new merchant banking assignments or involvement in any new issue of capital including initial public offerings, follow-on issue and etcetera from the securities market. The Company has filed its response with the SEBI and the matter is under the SEBI's consideration. In view of the uncertainty of the ultimate outcome, the impact, if any, cannot be presently ascertained and therefore, no provisions for any liability or any other adjustments that might be required has not been recognised in the financial statements.

1 Amount of dividend net of tax of Rs. 215,653 for the year ended 31 March 2011 remitted during the year ending 31 March 2012.

2 Amount of dividend net of tax of Rs. 220,668 for the year ended 31 March 2010 remitted during the year ending 31 March 2011.

1.3 Related Party Disclosures

(A) Names of related parties and description of relationship:

(i) Holding company

Almondz Capital and Management Services Limited (ACMS) [till 11 June 2010]

(ii) Investing parties in respect of which the company is an associate

Almondz Capital and Management Services Limited (ACMS) [w.e.f. 12 June 2010]

(iii) Subsidiaries (entities over which the Company exercises control)

Almondz Finanz Limited (AFL)

Almondz Commodities Private Limited (ACPL)

Almondz Retail Equity Limited (AREL)

Almondz Insurance Brokers Private Limited (AIBPL) [with effect from 23 January 2010]

Almondz Re-insurance Brokers Private Limited (ARBPL) (Subsidiary of Almondz Insurance Brokers Private Limited) [with effect from 23 January 2010]

(iv) Associates

Almondz Insurance Brokers Private Limited (AIBPL) [till 22 January 2010]

Almondz Re-insurance Brokers Private Limited (ARBPL) (Subsidiary of Almondz Insurance Brokers Private Limited) [till 22 January 2010]

(v) Enterprises over which Key Managerial Personnel and relatives of such personnel exercise significant influence

Innovative Money Matters Private Limited (IMMPL)

Rinku Sobti Fashions (P) Limited (RSFPL)

(vi) Key Managerial Personnel

Mr. Vinay Mehta Mr. Navjeet Singh Sobti Mr. Jagdeep Singh

(vii) Relatives of Key Managerial Personnel

Mrs. Bulbul Dhir Mehta (transaction in previous year only)

Mrs. Gurpreet N.S. Sobti

Navjeet Singh Sobti (HUF)

Jagdeep Singh (HUF)

Mr. Surinderjeet Singh

Mrs. Bimla Kaur

Mr. Manpreet Singh

Mrs. Parmeet Kaur (transactions in previous year only)

Notes :

(I) Business Segments: The Company's business segments have been classified as above. This business segregation forms the basis for review of operating performance by the management. The following are the business segments identified by the management :

- Debt Market operations comprises dealing/trading in securities and bonds which involves exposure to market risk.

- Corporate finance comprises merchant banking, underwriting commission, corporate and infrastructure advisory and loan syndication fees and arranger of debts/bonds, etc. These are mainly in the nature of services involving no or negligible risk.

- Distribution activities comprises broking and commission of mutual funds, equity initial public offerings, capital gain bonds, fixed deposits of government undertakings and RBI taxable bonds, etc. These are mainly in the nature of services involving no or negligible risk.

- Equity division activity comprises Stock and Share broking on National Stock Exchange of India Limited and Bombay Stock Exchange Limited and other related ancillary services.

(II) The shareholders of the Company approved transfer or otherwise disposal of the Company's undertakings comprising debt arrangement operations, portfolio management services and wholesale debt market operations to Almondz Finanz Limited, a 100% subsidiary of the Company. However, the procedural formalities for implementing the approval granted by the shareholders have not yet been finalised. The Board has decided not to proceed further in the matter for the time being.

(III) Accounting policies for segment reporting

- Segments are identified by the management, keeping in view the dominant source and nature of risks and returns and the internal organization and management structure.

- Revenue and expenses have been identified to a segment on the basis of relationship to the operating activities of the segment.

- Revenue and expenses, which relate to the company as a whole and are not allocable to a segment on reasonable basis, have been disclosed as 'unallocable'.

- Segment assets and liabilities represent assets and liabilities in respective segments. Tax related assets, and other assets and liabilities that are not reported or cannot be allocated to a segment on a reasonable basis, have been disclosed as 'unallocable'

---

Mar 31, 2010

1. Forfeiture of amount received against share warrants :

The Company had allotted 1,004,500 share warrants during the year ended 31 March 2008 at a price of Rs. 85 per share warrant. These shares were convertible to equal numbers of equity shares at the option of the holder within 18 months from the date of the allotment. The Company had received Rs. 8,538,250 as an advance from the allottees. Since the holders of the warrants did not exercise option to convert the share warrants into equity shares, the advance of Rs. 8,538,250 has been forfeited and transferred to Capital reserve.

During the year, the Company has made a fresh issue of 4,510,000 share warrants at a price of Rs.57.26 per share warrant. These share warrants are convertible at the option of the holder into equal number of equity shares within 18 months from the date of allotment. The Company has received an amount of Rs. 64,560,650 as advance against share warrants issued.

2. Contingent Liabilities :

Amount (Rs.)

Particulars As at As at 31 March 2010 31 March 2009

1 Suit filed by clients on the Company for recovery on account of unauthorised trades on stock exchanges / deficiency in services. These matters are pending before various dispute resolution authorities. 135,845 1,676,464

2 Suits filed by previous employees on the Company for recovery of their dues from Company. These matters are pending before various courts. 296,544 -

3 Show cause notice for service tax demand in relation to the period from 10 September 2004 to 31 March 2006 - 1,896,182

4 Show cause notice for service tax demand in relation to the financial year ended 31 March 2007. - 1,964,904

5 Show cause notice for service tax demand in relation to the financial year ended 31 March 2006 and 31 March 2007 3,221,550 -

6 Corporate guarantee issued for Almondz Finanz Limited, a wholly owned subsidiary of the Company 500,000,000 -

7 Income-tax demand raised by assessing officer in respect of Financial year ended 31 March 2006. 5,379,709 5,379,709

8 Income Tax demand raised by assessing officer in respect of financial year ended 31 March 2007. 2,723,937 -

3. The estimated amount of contracts remaining to be executed on apital account and not provided for in these accounts amounting to Rs. Nil (Previous year. Rs. 8,368,080), net of capital advances of Rs. Nil (Previous year Rs. 12,328,505).

4. Shares held as investments amounting in aggregate of Rs. 350,000 (Previous year Rs. 400,000) at cost, carrying value Rs. Nil (Previous year Rs. Nil), are not held in the name of the Company / misplaced.

5. Disclosures required under AS-15-Employee Benefits

The Company has a defined benefit gratuity plan. The present value of obligation is determined based on actuarial valuation using the projected unit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

6. Related Party Disclosure

A) Names of related parties and description of relationship :

(i) Subsidiaries:

(Entities with which control relationship exists)

- Almondz Finanz Limited

- Almondz Commodities Private Limited

- Almondz Retail Equity Limited

- Almondz Insurance Brokers Private Limited (with effect from 23 January 2010)

- Almondz Re-insurance Brokers Private Limited (Subsidiary of M/s Almondz Insurance Brokers Private Limited)

(ii) Holding company:

- Almondz Capital and Management Services Limited

(w.e.f. 23 January 2010)

(iii) Investing parties in respect of which the company is an associate :

- Almondz Capital and Management Services Limited

(till 22 January 2010)

(iv) Associates :

- Almondz Insurance Brokers Private Limited (till 22 January 2010)

- Almondz Re-insurance Brokers Private Limited (Subsidiary of M/s Almondz Insurance Brokers Private Limited)

(v) Enterprises over which Key Managerial Personnel are able to exercise significant influence :

- Innovative Money Matters Private Limited (vi) Key Managerial Personnel:

- Mr. Vinay Mehta

- Mr. Navjeet Singh Sobti

- Mr. Jagdeep Singh

(vii) Relative of Key Managerial Personnel :

- Mrs. Bulbul Dhir Mehta

- Mrs. Gurpreet N.S. Sobti

- Mrs. Parmeet Kaur

- Navjeet Singh Sobti (HUF)

- Jagdeep Singh (HUF)

Notes :

(I) Business Segments : The Company’s business segments have been classified as above. This business segregation forms the basis for review of operating performance by the management. The following are the business segments identified by the management:

- Debt Market operations comprises dealing/trading in securities and bonds which involves exposure to market risk.

- Corporate finance comprises merchant banking, underwriting commission, corporate and infrastructure advisory and loan syndication fees and arranger of debts/bonds, etc. These are mainly in the nature of services involving no or negligible risk.

- Distribution activities comprises broking and commission of mutual funds, equity initial public offerings, capital gain bonds, fixed deposits of government undertakings and RBI taxable bonds, etc. These are mainly in the nature of services involving no or negligible risk.

- Equity Division activities comprises Stock and Share broking on National Stock Exchange of India Limited and Bombay Stock Exchange Limited and other related ancillary services.

(II) The Board of Directors (the Board) of the Company in their meeting held on 31 October 2008 had approved the sale, transfer or otherwise dispose off the Company’s undertaking comprising its Debt portfolio management division (DPM’) as a going concern to Almondz Finanz Limited, a 100% subsidiary of the Company. The members of the Company had also approved, through a postal ballot, a special resolution to this effect, the results of which were declared on 9 December 2008. The Company has got required approvals from the concerned authorities; however the Board is yet to formulate a detailed, formal plan as defined in Para 16 of AS 24 to execute this decision taken by the Company. The DPM division is a separate segment identified by the Company, by the name “Debt and equity market operations”, as part of its segment reporting.

(III) Accounting policies for segment reporting

- Segments are identified by the management, keeping in view the dominant source and nature of risks and returns and the internal organization and management structure.

- Revenue and expenses have been identified to a segment on the basis of relationship to the operating activities of the segment.

- Revenue and expenses, which relate to the company as a whole and are not allocable to a segment on reasonable basis, have been disclosed as unallocable’.

- Segment assets and liabilities represent assets and liabilities in respective segments. Tax related assets, and other assets and liabilities that are not reported or cannot be allocated to a segment on a reasonable basis, have been disclosed as unallocable’.

7. The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that Micro and Small Enterprises should mention in their correspondence with their customers the Entrepreneurs Memorandum number as allocated after filing of the Memorandum. Based on information received and available with the Company, there are no amounts payable to Micro and Small Enterprises as at 31 March 2010.

8. Previous year figures have been regrouped / reclassified, wherever necessary to conform to current year’s classification.