Notes to Accounts of Arihant Capital Markets Ltd.

Mar 31, 2024

2.12 Provisions and contingencies

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the reporting date.

Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost. Expected future operating losses are not provided for.

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

2.13 Employee benefits

(i) Short-term obligations

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss for the year in which the related services are rendered. The Company recognizes the costs of bonus payments when it has a present obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made.

(ii) Post-employment obligations Defined contribution plan:

Contribution paid / payable to the recognized provident fund, which is a defined contribution scheme, is charged to the Statement of Profit and Loss in the period in which they occur.

Defined benefits plan:

Gratuity is post-employment benefit and is in the nature of defined benefit plan. The liability recognized in the Balance Sheet in respect of gratuity is the present value of defined benefit obligation at the Balance Sheet date together with the adjustments for unrecognized actuarial gain or losses and the past service costs. The defined benefit obligation is calculated at or near the Balance Sheet date by an independent actuary using the projected unit credit method. Actuarial gains and losses comprise experience adjustment and the effects of changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

2.14 Dividend Distribution

Dividends paid is recognized in the period in which the interim dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.

2.15 Earnings per share

a) Basic earnings per share

Basic earnings per share is calculated by dividing the net profit for the period (excluding other comprehensive income) attributable to equity share holders of the Company by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus element in equity shares issued during the year.

b) Diluted earnings per share

Diluted earnings per share is computed by dividing the net profit for the period attributable to equity shareholders by the weighted average number of shares outstanding during the period as adjusted for the effects of all diluted potential equity shares except where the results are anti-dilutive.

2.16 Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirements.

2.17 Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.

2.18 Derivative financial instruments

Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value at the end of each reporting period. The resulting gain or loss is recognized in standalone statement of profit and loss immediately.

2.19 Foreign currency transaction Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Exchange differences

All exchange differences are accounted in the Statement of Profit and Loss.

2.20 Investment in subsidiaries and associates

Investment in subsidiaries are recognized at cost and is not adjusted to fair value at the end of each reporting period as allowed by Ind AS 27 ‘Separate financial statement’. Cost of investment represents amount paid for acquisition of the said investment and a proportionate recognition of the fair value of shares granted to employees of subsidiary under a group share based payment arrangement.

The Company assesses at the end of each reporting period, if there are any indications that the said investment may be impaired. If so, the Company estimates the recoverable value/amount of the investment and provides for impairment, if any i.e. the deficit in the recoverable value over cost.

NOTE 3: KEY ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on ongoing basis. Any changes to accounting estimates are recognized prospectively. Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect on the amounts recognised in the financial statements are included in the following notes:

(a) Provision and contingent liability: On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. For Contingencies losses that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the likelihood of which is remote are not disclosed in the financial statements. Gain contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.

(b) Allowance for impairment of financial asset: Judgements are required in assessing the recoverability of overdue and determining whether a provision against those is required. Factors considered include the aging of past dues, value of collateral and any possible actions that can be taken to mitigate the risk of non-payment.

(c) Recognition of deferred tax assets: Deferred tax assets are recognised for unused tax-loss carry forwards, deductible temporary differences and unused tax credit to the extent that realisation of the related tax benefit is probable. The assessment of the probability with regard to the realisation of the tax benefit involves assumptions based on the history of the entity and budgeted data for the future.

(d) Defined benefit plans: The cost of defined benefit plans and the present value of the defined benefit obligations are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions.

(e) Property, plant and equipment and Intangible Assets: Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation and amortization to be recorded during any reporting period. The useful lives and residual values as per schedule II of the Companies Act, 2013 or are based on the Company’s historical experience with similar assets and taking into account anticipated technological changes, whichever is more appropriate.

1. Broking Income - The Company provides trade execution and settlement services to the customers. There is only one performance obligation of execution of the trade and settlement of the transaction which is satisfied at a point in time. The brokerage charged is the transaction price and is recognised as revenue on settlement date basis.

2. Fees & Commission Income - Fees for subscription based services are received periodically but are recognised as earned on a pro-rata basis over the term of the contract. Commissions from distribution of financial products are recognised upon allotment of the securities to the applicant or as the case may be. Commissions and fees recognised as aforesaid are exclusive of goods and service tax, securities transaction tax, stamp duties and other levies by SEBI and stock exchanges.

3. Interest Income - Interest is earned on delayed payments from clients and amounts funded to them as well as on loans and term deposit with bank. Interest income is recognised on a time proportion basis taking into account the amount outstanding from customers or on the financial instrument and the rate applicable.

4. Depository Income - Income from services rendered on behalf of depository is recognised upon rendering of the services, in accordance with the terms of contract.

5. Fees From Merchant Banking - The Company provides underwriting the issuance of securities services to companies to raise capital through the IPO and FPO process, from initial planning to final listing on the stock exchange. Income is recognised as revenue upon rendering of the services, in accordance with the terms of agreement with customer.

43. Employee benefits

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

(i) Defined Contribution Plans:

The Company makes contributions towards Provident Fund and Employees State Insurance Fund to a defined contribution retirement benefit plan for qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Company recognised ''34.57 Lacs (Previous Year ''33.09 Lacs) for provident fund contributions in the Statement of Profit and Loss.

The Company recognised ''5.41 Lacs (Previous Year: ''4.93 Lacs) for Employees State Insurance Fund contribution in the Statement of Profit and Loss.

(ii) Defined Benefit Plan:

Gratuity

In accordance with Payment of Gratuity Act, the Company provides for gratuity, a defined benefit retirement plan covering all employees. The plan provides a lump sum payment to vested employees at retirement or termination of employment based on the respective employee’s salary and the years of employment with the Company subject to maximum of ''20 lacs. (Previous Year '' 20 lacs).

The gratuity benefit is provided through unfunded plan and annual contributions are charged to the statement of profit and loss. Under the scheme, the settlement obligation remains with the Company. Company accounts for the liability for future gratuity benefits based on an actuarial valuation. The net present value of the Company’s obligation towards the same is actuarially determined based on the projected unit credit method as at the Balance Sheet date.

48. Details of borrowings from banks or financial institutions on the basis of security of current assets

The quarterly returns or statements of current assets filed by the Company with banks or financial institutions for the working capital limit are in agreement with the books of accounts.

49. Registration of charges or satisfaction with Registrar of Companies

The company has filed all the registration of charges, modification or satisfaction with ROC within the statutory period as required by the Companies Act, 2013.

50. Additional Regulatory Information as per Companies Act, 2013

1. The company has not granted any Loans or Advances to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

2. The title deeds, comprising all the immovable properties are held in the name of company and no immovable property is jointly held with others.

3. There is no Intangible assets under development.

4. There is no tangible assets(Capital-work-in progress) under development.

5. The company has not revalued its Property, Plant and Equipment and Intangible Assets.

6. No proceeding have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

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

8. The company is not declared willful defaulter by any bank or financial Institution or other lender.

9. The company has not entered into transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

10. The company has not applied for any Scheme of Arrangements in terms of sections 230 to 237 of the Companies Act, 2013.

11. Utilization of Borrowed funds and share premium:

(a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(b) No funds have been received by the company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

12. The Company has not used the borrowings from banks and financial institutions for the purpose other than for which it was taken.

13. The Company has no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

51. Disclosure relating to various ratios

Additional regulatory information required under clause (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.

52. Fair value measurement

I. Accounting classification and fair values

The following table shows the carrying amount and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy:

53. Financial risk management

The company has a risk management framework, appropriate to the size of the Company and environment under which it operates. The objective of its risk management framework is to ensure that various risks are identified, measured and mitigated and also that policies, procedures and standards are established to address these risks and ensure a systematic response in the case of crystallization of such risks. The board of Directors reviews these policies and processes regularly and is periodically informed about the risk assessment, impact of risk on the business and mitigation plans. The Company is exposed to following risk -

A. Credit risk

Credit risk is the risk that the Company will incur a loss because its customers or counterparties fail to discharge their contractual obligation. The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties, and by monitoring exposures in relations to such limits.

The maximum exposure to credit risk for each class of financial instruments is the carrying amount of that class of financial instruments presented in the financial statements.

Deposits with banks are considered to have negligible risk or nil risk, as they are maintained with high rated banks / financial institutions as approved by the Board of directors.

The management has established accounts receivable policy under which customer accounts are regularly monitored. Expected Credit Loss (ECL):

The Company applies the Ind AS 109 Simplified approach for trade receivables which requires expected lifetime losses to be recognised .For other assets , the Company uses 12 month ECL approach to measuring expected credit losses (ECLs) where there is no significant increase in credit risk of borrower. If there is significant increase in credit risk full lifetime ECL approach is used.

Inputs considered in the ECL model

In assessing the impairment of financial assets under Expected Credit Loss (ECL) Model, the assets have been segmented into three stages. The three stages reflect the general pattern of credit deterioration of a financial instrument. The differences in accounting between stages, relate to the recognition of expected credit losses.

Stage 1 : Financial assets for which credit risk has not increased significantly and that are also not credit impaired Stage 2 : Financial assets for which credit risk has increased significantly but not credit impaired Stage 3 : Financial assets for which credit risk has increased significantly and are credit impaired

B. Liquidity risk

Liquidity risk is the risk that the entity will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The entity’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 due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the entity’s reputation.

Prudent liquidity risk management requires sufficient cash and marketable securities and availability of funds through adequate committed credit facilities to meet obligations when due and to close out market positions.

Ultimate responsibility for liquidity risk management rests with the board of directors, for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

C. Market risk

Market Risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates, foreign exchange rates, etc. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while maximizing the return.

(i) Currency risk

Currency Risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The company’s all transactions are denominated in Indian rupees only. Hence, the Company is not significantly exposed to currency rate risk.

(ii) Interest rate risk

Interest Rate Risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate as result of changes in market interest rates. The Company’s Loans are primarily in fixed interest rates. Hence, the Company is not significantly exposed to interest rate risk.

(iii) Market price risks

The Company is exposed to market price risk, which arises from FVTPL investments. The management monitors the proportion of these investments in its investment portfolio based on market indices. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the appropriate authority.

54. Capital Management

The company’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.

The company monitors its capital by using gearing ratio, which is net debt to total equity. Net debt includes borrowings net of cash and bank balances and total equity comprises of Equity share capital, general reserve and retained earnings.

57. Events after Reporting Date

There were no significant events after the end of the reporting period which require any adjustment or disclosure in the financial statements other than as stated below:

The Board of Directors have recommended a final dividend of '' 0.50 per equity share for the financial year ended March 31, 2024. Payment of the final dividend is subject to its approval by the shareholders, in the ensuing Annual General Meeting of the Company.

58. Previous year figures have been regrouped/reclassified wherever necessary.

59. Approval of Financial Statements

The financial statements are approved for issue by the Board of Directors in their meeting held on May 21,2024

For and on behalf of the Board

For Dinesh Ajmera & Associates Ashok Kumar Jain Arpit Jain Mahesh Pancholi Uttam Maheshwari

Chartered Accountants Managing Director Joint Managing Company Secretary Chief Financial Officer

Firm Reg No:011970C DIN-00184729 Director M.No. F7143 M.No. 419134

CA. Dinesh Ajmera DIN-06544441

Partner

Membership No. : 402629 UDIN : 24402629BKDHHA4400

Indore, May 21,2024

---

Mar 31, 2023

‘Details of Assets pledged as security

1. The Company availed overdraft facility from ICICI Bank amounting to '' 2,000 Lacs. Outstanding book balance of overdraft is '' 1,651.71 Lacs (March 31,2022: '' 1,993.71 Lacs).

The aforesaid overdraft is secured by way of first charge on trade receivables of the company.

2. The Company availed overdraft facility from Axis Bank amounting to '' 6,000 Lacs. Outstanding book balance of overdraft is '' 2,261.61 Lacs (March 31,2022: '' 4,646.60 Lacs).

The aforesaid overdraft is secured by way of first charge on trade receivables of the company.

3. The Company availed loan against property from ICICI Bank amounting to '' 500 Lacs. Outstanding book balance of loan is '' 495.33 Lacs (March 31,2022: '' 497.49 Lacs).

The aforesaid loan is secured by way of first charge by way of equitable mortgage of building situated at 1011, Solitaire Corporate Park, Building No.10, 1st Floor, Andheri Ghatkopar Link Road Chakala Andheri (EAST) Mumbai in the name of the company.

4. The Company availed loan against shares from Tata Capital Financial Services Limited amounting to '' 1,000 Lacs. Outstanding book balance of overdraft is '' Nil (March 31,2022: Nil).

The aforesaid loan is secured against equity securities of the company.

b. Terms/rights attached to equity shares

The company has one class of equity shares having a par value of '' 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

General Reserve

General reserve represents appropriation of surplus in the profit and loss account and is available for distribution to shareholders as dividend.

Retained Earnings

Surplus in profit or loss account (Retained Earnings) represents surplus/accumulated profit of the company and is available for distribution to shareholders as dividend.

The Company has sub-divided its 2,08,22,560 equity shares of face value of '' 5 each fully paid up into 10,41,12,800 equity shares of face value of '' 1 each fully paid up w.e.f. April 15, 2022 as recommended by board of directors and approved by the shareholders of the company in the Extra Ordinary General Meeting held on March 26, 2022. Earning per share have been calculated / restated, as applicable, for all the periods presented after considering the new number of equity shares post such split in line with the provisions of the applicable IND AS and to make the figures of EPS comparable with the previous periods.

42. Contingent Liability and Commitment (to the extent not provided for)
Particulars	For the year ended March 31, 2023	For the year ended March 31,2022
Contingent liabilities: Bank Guarantees given* Demand in respect of income tax matters for which appeal is pending Capital commitments: There are no Capital commitment as at the year end.	26,200.00 66.98	15,500.00 50.48
* Bank Guarantees details 1.ICCL Bombay Stock Exchange Ltd (under mandatory rules for membership) 148.75 2.ICCL Bombay Stock Exchange Ltd (towards additional margin) 25,976.25 3.National Securities Clearing Corporation Ltd (under mandatory rules for membership) 75.00		123.75 15,301.25 75.00

43. Segment Reporting

The Company publishes these standalone financial statements along with the consolidated financial statements. In accordance with Ind AS 108, Operating Segments, the Company has disclosed the segment information in the consolidated financial statements.

44. Due to Micro, Small, & Medium Enterprises

The Company has sent letters to vendors to confirm whether they are covered under Micro, Small and Medium Enterprise Development Act 2006 as well as they have filed required memorandum with prescribed authority. Based on and to the extent of the information received by the Company from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) the relevant particulars as at the year end are furnished below:

45. Revenue from Contract with customers

The Company derives revenue primarily from the broking business. Its other major revenue sources is Interest earned from margin funding and delayed payments from clients.

A. Disaggregate revenue information

The table below presents disaggregate revenues from contracts with customers for the year ended March 31,2023 and March 31, 2022. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by market and other economic factors.

B. Nature and timing of satisfaction of the performance obligation

1. Broking Income - The Company provides trade execution and settlement services to the customers. There is only one performance obligation of execution of the trade and settlement of the transaction which is satisfied at a point in time. The brokerage charged is the transaction price and is recognised as revenue on settlement date basis.

2. Fees & Commission Income - Fees for subscription based services are received periodically but are recognised as earned on a pro-rata basis over the term of the contract. Commissions from distribution of financial products are recognised upon allotment of the securities to the applicant or as the case may be. Commissions and fees recognised as aforesaid are exclusive of goods and service tax, securities transaction tax, stamp duties and other levies by SEBI and stock exchanges.

3. Interest Income - Interest is earned on delayed payments from clients and amounts funded to them as well as on loans and term deposit with bank. Interest income is recognised on a time proportion basis taking into account the amount outstanding from customers or on the financial instrument and the rate applicable.

4. Depository Income - Income from services rendered on behalf of depository is recognised upon rendering of the services, in accordance with the terms of contract.

46. Employee benefits

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

(i) Defined Contribution Plans:

The Company makes contributions towards Provident Fund and Employees State Insurance Fund to a defined contribution retirement benefit plan for qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Company recognised ''33.09 Lacs (Previous Year ''18.55 Lacs) for provident fund contributions in the Statement of Profit and Loss.

The Company recognised '' 4.93 Lacs (Previous Year: '' 4.67 Lacs) for Employees State Insurance Fund contribution in the Statement of Profit and Loss.

(ii) Defined Benefit Plan:

Gratuity

In accordance with Payment of Gratuity Act, the Company provides for gratuity, a defined benefit retirement plan covering all employees. The plan provides a lump sum payment to vested employees at retirement or termination of employment based on the respective employee’s salary and the years of employment with the Company subject to maximum of '' 20 lacs. (Previous Year '' 20 lacs).

The gratuity benefit is provided through unfunded plan and annual contributions are charged to the statement of profit and loss. Under the scheme, the settlement obligation remains with the Company. Company accounts for the liability for future gratuity benefits based on an actuarial valuation. The net present value of the Company’s obligation towards the same is actuarially determined based on the projected unit credit method as at the Balance Sheet date.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

51. Details of borrowings from banks or financial institutions on the basis of security of current assets

The quarterly returns or statements of current assets filed by the Company with banks or financial institutions for the working capital limit are in agreement with the books of accounts.

52. Registration of charges or satisfaction with Registrar of Companies

The company has filed all the registration of charges, modification or satisfaction with ROC within the statutory period as required by the Companies Act, 2013.

53. Additional Regulatory Information as per Companies Act, 2013

1. The company has not granted any Loans or Advances to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

2. The title deeds, comprising all the immovable properties are held in the name of company and no immovable property is jointly held with others.

3. There is no Intangible assets under development.

4. There is no tangible assets(Capital-work-in progress) under development.

5. The company has not revalued its Property, Plant and Equipment and Intangible Assets.

6. No proceeding have been initiated or are pending against the company for holding any benami property under the Benami T ransactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

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

8. The company is not declared willful defaulter by any bank or financial Institution or other lender.

9. The company has not entered into transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

10. The company has not applied for any Scheme of Arrangements in terms of sections 230 to 237 of the Companies Act, 2013.

11. Utilization of Borrowed funds and share premium:

(a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(b) No funds have been received by the company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

12. The Company has not used the borrowings from banks and financial institutions for the purpose other than for which it was taken.

54. Disclosure relating to various ratios

Additional regulatory information required under clause (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.

56. Financial risk management

The company has a risk management framework, appropriate to the size of the Company and environment under which it operates. The objective of its risk management framework is to ensure that various risks are identified, measured and mitigated and also that policies, procedures and standards are established to address these risks and ensure a systematic response in the case of crystallization of such risks. The board of Directors reviews these policies and processes regularly and is periodically informed about the risk assessment, impact of risk on the business and mitigation plans. The Company is exposed to following risk -

A. Credit risk

Credit risk is the risk that the Company will incur a loss because its customers or counterparties fail to discharge their contractual obligation. The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties, and by monitoring exposures in relations to such limits.

The maximum exposure to credit risk for each class of financial instruments is the carrying amount of that class of financial instruments presented in the financial statements.

Deposits with banks are considered to have negligible risk or nil risk, as they are maintained with high rated banks / financial institutions as approved by the Board of directors.

The management has established accounts receivable policy under which customer accounts are regularly monitored. Expected Credit Loss (ECL):

The Company applies the Ind AS 109 Simplified approach for trade receivables which requires expected lifetime losses to be recognised .For other assets , the Company uses 12 month ECL approach to measuring expected credit losses (ECLs) where there is no significant increase in credit risk of borrower. If there is significant increase in credit risk full lifetime ECL approach is used.

Inputs considered in the ECL model

In assessing the impairment of financial assets under Expected Credit Loss (ECL) Model, the assets have been segmented into three stages. The three stages reflect the general pattern of credit deterioration of a financial instrument. The differences in accounting between stages, relate to the recognition of expected credit losses.

Stage 1 : Financial assets for which credit risk has not increased significantly and that are also not credit impaired Stage 2 : Financial assets for which credit risk has increased significantly but not credit impaired Stage 3 : Financial assets for which credit risk has increased significantly and are credit impaired

B. Liquidity risk

Liquidity risk is the risk that the entity will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The entity’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 due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the entity’s reputation.

Prudent liquidity risk management requires sufficient cash and marketable securities and availability of funds through adequate committed credit facilities to meet obligations when due and to close out market positions.

Ultimate responsibility for liquidity risk management rests with the board of directors, for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

C. Market risk

Market Risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates, foreign exchange rates, etc. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while maximizing the return.

(i) Currency risk

Currency Risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The company’s all transactions are denominated in Indian rupees only. Hence, the Company is not significantly exposed to currency rate risk.

(ii) Interest rate risk

Interest Rate Risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate as result of changes in market interest rates. The Company’s Loans are primarily in fixed interest rates. Hence, the Company is not significantly exposed to interest rate risk.

(iii) Market price risks

The Company is exposed to market price risk, which arises from FVTPL investments. The management monitors the proportion of these investments in its investment portfolio based on market indices. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the appropriate authority.

57. Capital Management

The company’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.

The company monitors its capital by using gearing ratio, which is net debt to total equity. Net debt includes borrowings net of cash and bank balances and total equity comprises of Equity share capital, general reserve and retained earnings.

59. Corporate social responsibility

The Ministry of Corporate Affairs has notified Section 135 of the Companies Act, 2013 on Corporate Social Responsibility with effect from 1 April 2014. As per the provisions of the said section, the Company has undertaken the following CSR initiatives during the financial year 2022-23. CSR initiatives majorly includes supporting under privileged in education, medical treatments, etc. and various other charitable and noble aids.

60. Events after Reporting Date

There were no significant events after the end of the reporting period which require any adjustment or disclosure in the financial statements other than as stated below:

The Board of Directors have recommended a final dividend of '' 0.40 per equity share for the financial year ended March 31, 2023. Payment of the final dividend is subject to its approval by the shareholders, in the ensuing Annual General Meeting of the Company.

61. Previous year figures have been regrouped/reclassified wherever necessary.

---

Mar 31, 2019

b. Terms/rights attached to equity shares

The company has one class of equity shares having a par value of Rs. 5 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

*Payment to key management personnel for Salaries and Incentive includes to Ashok Kumar Jain Rs. 20693907 (Previous Year Rs.17384029 and Anita Gandhi Rs. 3849600 (Previous Year Rs.3236800) and to relatives of key management personal includes Shruti Jain Rs.2400000 (Previous Year Rs.2361290).

# Rent paid to Ashok Kumar JainRs.1465000 (Previous Year Rs.1440000), Kiran Jain Rs.3490000 (Previous Year Rs.3465000), Ashok Kumar Jain HUF Rs.412500 (Previous Year Rs.412500), Arpit Jain Rs.412500 (Previous Year Rs.412500) and Shyam Developers Rs.252000 (Previous Year Rs.252000).

% Sitting fees paid to Sunil Kumar Jain Rs.60000 (Previous Year Rs.80000),Shailesh Kumath Rs. Nil (Previous Year Rs.20000), Paragbhai Shah Rs.60000 (Previous Year Rs.40000),Pavan Ved Rs.40000 (Previous Year Rs.80000),Ashish Maheshwari Rs.60000 (Previous Year Rs.60000) and Akhilesh Rathi Rs. 80000 (Previous Year Rs.80000).

^A Rent Deposit given includes Ashok Kumar Jain Rs.350000 (Previous Year Rs.350000), Kiran Jain Rs.2037500 (Previous Year Rs.2037500), Ashok Kumar Jain HUF Rs.343750 (Previous Year Rs.343750),Arpit Jain Rs.343750 (Previous Year Rs.343750) and Shyam Developers Rs.13000000 (Previous Year Rs. 13000000).

$ Interest paid to Pavan KumarVed Rs.355492 (Previous Year Rs. Nil)

** S.N Gandhi & Co Rs. Nil (Previous Year Rs.300000)

Defined Benefit Plan

The gratuity paid by the company is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit 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 financial obligation. The company does not have any policy for leave encashment.

1. Income in foreign currency Rs.1386596 (previous year Rs. Nil). Expenditure in foreign currency Rs. Nil (previous year Rs. Nil).

2. Contingent Liability & Capital Commitments

(i) Bank Guarantees of Rs. 15875000 (Previous Year Rs. 10000000) extended to ICCL Bombay Stock Exchange Limited under the mandatory rules for membership and Rs. 60000000(Previous Year Rs.63500000) towards additional margin.

(ii) Bank Guarantees of Rs.7500000(Previous Year Rs.7500000) extended to National Securities Clearing Corporation Limited under the mandatory rules for membership and Rs. 129800000(Previous Year Rs.99800000) towards additional margin.

(iii) Bank Guarantees of Rs. 1500000 (Previous Year Rs. 1500000) extended to Metropolitan Stock Exchange India Limited under the mandatory rules for membership .

(iv) Bank Guarantees of Rs.482500000 (Previous Year Rs.380100000) extended to Axis Bank Ltd ( Clearing Member of Company in NSE FNO segment) towards margin requirement.

(v) Corporate guarantee of Rs.250000000 (Previous Year Rs.400000000) given to banks on behalf of subsidiary M/s Arihant Futures and Commodities Limited.

(vi) Claims against the Company not acknowledged as debts Rs. Nil (Previous Year Rs. Nil).

(vii) Income Tax Demand for various years Rs. Nil (Rs.32,79,854)

3. Fixed Deposits

Fixed deposits with scheduled banks include Rs.70200000 (Previous Year Rs. 158400000) which is under the lien of National Securities Clearing Corporation Limited,Rs.55600055 (Previous Year Rs. Nil) which is under the lien of National Stock Exchange of India Limited, Rs.447800000 (Previous Year Rs.2583000000) which is under the lien of Axis Bank Ltd for NSEFNO segment, Rs. Nil (Previous Year Rs.500000) which is under the lien of Axis Bank Ltd for MSEIL currency derivative segment and Rs.2000000 (Previous Year Rs. Nil) which is under the lien of Pension Fund Regulatory and Development Authotriy.

4. Disclosures under The Micro, Small, & Medium Enterprises Development Act,2006

Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises (SME). The Company is in the process of compiling relevant information from its suppliers about their coverage under the said act. Since the relevant information is not readily available, no disclosures have been made in the accounts. however, in view of the management, the amounts due to the suppliers are paid within the mutually agreed credit period and therefore, there will not be any interest that may be payable in accordance with the provisions of the Act.

5. Securities are normally held by the Company in its own name except securities pledged with exchange.

6. Securities received from clients as collateral for margins are held by the Company in its own name in a fiduciary capacity.

7. Segment Reporting

As per the definition of ‘Business Segment’ and ‘Geographical Segment’ contained in Accounting Standard 17 “Segment Reporting”, the management is of the opinion that the Company’s operation comprise of operating in Primary and Secondary market and incidental activities thereto, there is neither more than one reportable business segment nor more than one reportable geographical segment, and, therefore, segment information as per Accounting Standard 17 is not required to be disclosed.

8. Corporate Social Responsibility

The company has formed a CSR committee responsible to spend the required amount on CSR activities recognized by them and to monitor whether the same have been utilised for the intended purpose.

a) Gross amount required to be spent by the company during the year (Rs.)4035652

b) Amount spent during the year on:

9. Events occuring after Balance sheet date

The Board of Directors has recommended Equity dividend of Rs. 0.75 per share for the financial year 2018-19.

10. The Financial Statements were authorised for issue by the directors on 21st May, 2019.

11. Previous year figures

The previous year figures have been regrouped/ reclassified, wherever necessary to conform to current year presentation.

---

Mar 31, 2018

*Payment to key management personnel for Salaries and Incentive includes to Ashok Kumar Jain Rs.17384029 (Previous Year ‘I9377052 and Anita Gandhi Rs. 3236800 (Previous Year Rs. 3I92000) and to relatives of key management personal includes Shruti Jain Rs. 236I290 (PreviousYear Rs. 800000).

# Rent paid to Ashok Kumar Jain’I440000 (Previous Year Rs. 600000), Kiran Jain Rs. 3465000 (Previous Year Rs. 2625000), Ashok Kumar Jain HUF Rs. 4I2500 (Previous Year Rs. 4I2500), Arpit Jain Rs. 4I2500 (Previous Year Rs. 4I2500) and Shyam Developers Rs. 252000 (Previous Year Rs. 2522I0).

% Sitting fees paid to Sunil Kumar Jain Rs. 80000 (Previous Year Rs. 80000), Shailesh Kumath Rs. 20000 (Previous Year Rs. 40000), Paragbhai Shah Rs. 40000 (Previous Year Rs. 80000), Pavan Ved Rs. 80000 (Previous Year Rs. 40000), Ashish Maheshwari Rs. 60000 (Previous Year Rs.Nil) and Akhilesh Rathi Rs. 80000 (PreviousYear Rs. 20000).

A Rent Deposit given includes Ashok Kumar Jain Rs. 350000 (Previous Year Rs. 350000), Kiran Jain Rs. 2037500 (Previous Year Rs. 2037500), Ashok Kumar Jain HUF Rs. 343750 (Previous Year Rs. 343750), Arpit Jain Rs. 343750 (Previous Year Rs. 343750) and Shyam Developers ‘I3000000 (PreviousYear Rs.13000000).

$ Share of Arihant Financial Planners & Advisors Private Ltd. purchased from Ashok Kumar Jain Rs.Nil (Previous Year Rs. 609750) & Kiran Jain Rs.Nil (PreviousYear Rs. 609750)

Defined Benefit Plan

The gratuity paid by the company is a defined benefit plan.The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit 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 financial obligation. The company does not have any policy for leave encashment.

1. Income in foreign currency Rs.Nil (previous year Rs.Nil). Expenditure in foreign currency Rs.Nil (previous year Rs.Nil).

2. Contingent Liability & Capital Commitments

(i) Bank Guarantees of Rs.10000000 (Previous Year Rs.13500000) extended to ICCL Bombay Stock Exchange Limited under the mandatory rules for membership and Rs. 63500000(PreviousYear Rs. 50000000) towards additional margin.

(ii) Bank Guarantees of Rs. 7500000(Previous Year Rs. 7500000) extended to National Securities Clearing Corporation Limited under the mandatory rules for membership and Rs. 99800000(PreviousYear Rs. 2I0500000) towards additional margin.

(iii) Bank Guarantees of Rs.1500000 (Previous Year Rs.1500000) extended to Metropolitan Stock Exchange India Limited under the mandatory rules for membership .

(iv) Bank Guarantees of Rs. 380I00000 (PreviousYear Rs. 379500000) extended to Axis Bank Ltd ( Clearning Member of Company in NSE FNO segment) towards margin requirement.

(v) Corporate guarantee of Rs. 400000000 (Previous Year Rs. 400000000) given to banks on behalf of subsidiary M/s Arihant Futures and Commodities Limited.

(vi) Claims against the Company not acknowledged as debts Rs.Nil (PreviousYear Rs.Nil).

(vii) Income Tax Demand for various years Rs. 32,79,854 (Rs. 32,79,854)

3. Fixed Deposits

Fixed deposits with scheduled banks include Rs.158400000 (Previous Year Rs. 3732953) which is under the lien of National Securities Clearing Corporation Limited, Rs. 258300000 (Previous Year Rs. 800000) which is under the lien of Axis Bank Ltd for NSEFNO segment, Rs. 500000 (PreviousYear Rs. 500000) which is under the lien of Axis Bank Ltd for MSEIL currency derivative segment.

4. Disclosures underThe Micro, Small, & Medium Enterprises Development Act, 2006

Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises (SME). The Company is in the process of compiling relevant information from its suppliers about their coverage under the said act. Since the relevant information is not readily available, no disclosures have been made in the accounts. however, in view of the management, the amounts due to the suppliers are paid within the mutually agreed credit period and therefore, there will not be any interest that may be payable in accordance with the provisions of the Act.

5. Securities are normally held by the Company in its own name except securities pledged with exchange.

6. Securities received from clients as collateral for margins are held by the Company in its own name in a fiduciary capacity.

7. Segment Reporting

As per the definition of ‘Business Segment’ and ‘Geographical Segment’ contained in Accounting Standard I7 “Segment Reporting”, the management is of the opinion that the Company’s operation comprise of operating in Primary and Secondary market and incidental activities thereto, there is neither more than one reportable business segment nor more than one reportable geographical segment, and, therefore, segment information as per Accounting Standard I7 is not required to be disclosed.

8. In accordance with the General Circular No.2 and 3 dated 8th Feb 20II and 2Ist Feb 20II issued by The Ministry of Corporate Affairs, Government of India,The Balance sheet, the Statement of profit and loss and other documents of the subsidiary are not being attached with the Annual Accounts of the company, subject to fulfillment of conditions stipulated in the circular.The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

9. Corporate Social Responsibility

The company has formed a CSR committtee responsible to spend the required amount on CSR activities recognized by them and to monitor whether the same have been utilised for the intended purpose.

a) Gross amount required to be spent by the company during the year (Rs.)2793061

b) Amount spent during the year on:

10. Events occuring after Balance sheet date

The Board of Directors has recommended Equity dividend of Rs. 0.75 per share for the financial year 20I7-I8.

11. The Financial Statements were authorised for issue by the directors on 28th May, 20I8.

12. Previous year figures

The previous year figures have been regrouped/ reclassified, wherever necessary to conform to current year presentation.

---

Mar 31, 2016

1. Income in foreign currency Rs.11143 (previous year Rs.11809). Expenditure in foreign currency Rs.Nil (previous year Rs.Nil).

2. Contingent Liability & Capital Commitments

(i) Bank Guarantees of Rs.11000000 (Previous Year Rs.11000000) extended to Bombay Stock Exchange Limited under the mandatory rules for membership and Rs. 56000000(Previous Year Rs.66000000) towards additional margin.

(ii) Bank Guarantees of Rs. 7500000(Previous Year Rs.7500000) extended to National Securities Clearing Corporation Limited under the mandatory rules for membership and Rs. 450000000(Previous Year Rs.397000000) towards additional margin.

(iii) Bank Guarantees of Rs.1500000 (Previous Year Rs.1500000) extended to MCX-SX Clearing Corporation Limited under the mandatory rules for membership and Rs. Nil (Previous Year Rs.10000000) towards additional margin.

(iv) Corporate guarantee of Rs.400000000 (Previous Year Rs.250000000) given to banks on behalf of subsidiary M/s Arihant Futures and Commodities Limited.

(v) Claims against the Company not acknowledged as debts Rs. Nil (Previous Year Rs. Nil).

(vi) Income Tax Demand for various years Rs.62,27,187 (Rs.36,07,534)

3. Fixed Deposits

Fixed deposits with scheduled banks include Rs.5390743 (Previous Year Rs.4321522) which is under the lien of National Securities Clearing Corporation Limited, Rs.Nil (Previous Year Rs.14000000) which is under the lien of Bombay Stock Exchange Limited, Rs.3000000 (Previous Year Rs.5500000) which is under the lien of MCX-SX Clearing Corporation Limited.

4. Disclosures under The Micro, Small, & Medium Enterprises Development Act,2006

Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises (SME). The Company is in the process of compiling relevant information from its suppliers about their coverage under the said act. Since the relevant information is not readily available, no disclosures have been made in the accounts. however, in view of the management, the amounts due to the suppliers are paid within the mutually agreed credit period and therefore, there will not be any interest that may be payable in accordance with the provisions of the Act.

5. Securities are normally held by the Company in its own name except securities pledged with exchange. Securities, which are not registered in the name of the Company, are held by the Company with valid transfer documents.

6. Securities received from clients as collateral for margins are held by the Company in its own name in a fiduciary capacity.

7. Segment Reporting

As per the definition of'' Business Segment'' and'' Geographical Segment'' contained in Accounting Standard 17"Segment Reporting", the management is of the opinion that the Company''s operation comprise of operating in Primary and Secondary market and incidental activities thereto, there is neither more than one reportable business segment nor more than one reportable geographical segment, and, therefore, segment information as per Accounting Standard 17 is not required to be disclosed.

8. Previous year figures

The previous year figures have been regrouped/ reclassified, wherever necessary to conform to current year presentation.

9. In accordance with the General Circular No.2 and 3 dated 8^th Feb 2011 and 21^st Feb 2011 issued by The Ministry of Corporate Affairs, Government of India, The Balance sheet, the Statement of profit and loss and other documents of the subsidiary are not being attached with the Annual Accounts of the company, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

---

Mar 31, 2015

1. Related party transactions

Related party disclosures, as required by Accounting Standard 18, "Related Party Disclosures" issued by the Institute of Chartered Accountants of India for the year ended 31st March, 2015 are given below:

Relationships (During the year)

Key Management Personnel Mr. Ashok Kumar Jain, Chairman & Managing Director

Mr. Sunil Kumar Jain, Director

Mr. Akhilesh Rathi, Director

Mrs. Anita S Gandhi, Whole Time Director

Mr. Parag R. Shah, Director Mr. Pankaj Kumar Gupta, Director

Mr. Rakesh Jain, Director

Subsidiaries Arihant Futures & Commodities Limited

Arihant Financial Services Limited

Arihant Lifespace Infra Developers Limited (Formerly known as Arihant Finsec Limited)

Quest Global Technologies Limited (Formerly Known as Arihant Quality Educational Services And Trainings Limited) (Upto 31.03.2015 )

Arihant Insurance Broking Services Limited

Arihant Financial Planners & Advisors Private Limited

Ahinsa Lifespace Infraheight Limited Arihant Housing Finance Corporation Limited

Relatives of Key Management Personnel Arpit Jain

Ashok Kumar Jain HUF Kiran Jain Shruti Jain

Enterprises over which control M/s. Shyam Developers

Figure in italics represents previous year figures

*Payment to key management personnel for Salaries and Incentive includes to Ashok Kumar Jain Rs. 8305500 (Previous Year Rs.3674223) and Anita Gandhi Rs. 2996000 (Previous Year Rs.2956800) and to relatives of key management personal includes Shruti Jain Rs.619831(Previous Year Rs.612594).

# Rent paid to Kiran Jain Rs.2025000 (Previous Year Rs.2175000), Ashok Kumar Jain HUF Rs.412500 (Previous Year Rs.412500) and Arpit Jain Rs.412500 (Previous Year Rs.412500).

$ Professional fees paid to S.N. Gandhi Rs.Nil (Previous Year Rs.123596).

% Sitting fees paid to Sunil Kumar Jain Rs.60000 (Previous Year Rs.60000), Rakesh Jain Rs.80000 (Previous Year Rs.80000), Pankaj Kumar Gupta Rs.40000 (Previous Year Rs.60000), Paragbhai Shah Rs.60000 (Previous Year Rs.60000) and Akhilesh Rathi Rs. 80000 (Previous Year Rs.60000).

A Rent Deposit given includes Kiran Jain Rs.1687500 (Previous Year Rs.1837500), Ashok Kumar Jain HUF Rs. 343750 (Previous Year Rs.343750) and Arpit Jain Rs.343750 (Previous Year Rs.343750).

Defined Benefit Plan

The gratuity paid by the company is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit 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 financial obligation. The company does not has any policy for leave encashment.

2. Income in foreign currency Rs.11,809 (previous year Rs.51,763). Expenditure in foreign currency Rs.Nil(previous year Rs.Nil).

3. Contingent Liability & Capital Commitments

(i) Bank Guarantees of Rs.11000000 (Previous Year Rs.11000000) extended to Bombay Stock Exchange Limited under the mandatory rules for membership and Rs. 66000000(Previous Year Rs.48000000) towards additional margin.

(ii) Bank Guarantees of Rs.7500000(Previous Year Rs.7500000) extended to National Securities Clearing Corporation Limited under the mandatory rules for membership and Rs. 397000000(Previous Year Rs.269500000) towards additional margin.

(iii) Bank Guarantees of Rs.1500000 (Previous Year Rs.1500000) extended to MCX-SX Clearing Corporation Limited under the mandatory rules for membership and Rs.10000000 (Previous Year Rs.20000000) towards additional margin.

(iv) Corporate guarantee of Rs.250000000 (Previous Year Rs.200000000) given to banks on behalf of subsidiary M/s Arihant Futures and Commodities Limited.

(v) Claims against the Company not acknowledged as debts Rs.Nil (Previous Year Rs.Nil).

(vi) Income Tax Demand for various years Rs.3607534 (Rs.3571794)

4. Fixed Deposits

Fixed deposits with scheduled banks include Rs.4321522 (Previous Year Rs.72261000) which is under the lien of National Securities Clearing Corporation Limited, Rs.14000000 (Previous Year Rs.13000000) which is under the lien of Bombay Stock Exchange Limited, Rs.5500000 (Previous Year Rs.5500000) which is under the lien of MCX-SX Clearing Corporation Limited.

5. Disclosures under Micro, Small, & Enterprises Development Act,2006

Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises (SME). The Company is in the process of compiling relevant information from its suppliers about their coverage under the said act. Since the relevant information is not readily available, no disclosures have been made in the accounts. however, in view of the management, the amounts due to the suppliers are paid within the mutually agreed credit period and therefore, there will not be any interest that may be payable in accordance with the provisions of the Act.

6. Securities are normally held by the Company in its own name except securities pledged with exchange. Securities, which are not registered in the name of the Company, are held by the Company with valid transfer documents.

7. Securities received from clients as collateral for margins are held by the Company in its own name in a fiduciary capacity.

8. Segment Reporting

As per the definition of 'Business Segment' and 'Geographical Segment' contained in Accounting Standard 17 "Segment Reporting", the management is of the opinion that the Company's operation comprise of operating in Primary and Secondary market and incidental activities thereto, there is neither more than one reportable business segment nor more than one reportable geographical segment, and, therefore, segment information as per Accounting Standard 17 is not required to be disclosed.

9. Previous year figures

The previous year figures have been regrouped/ reclassified, wherever necessary to conform to current year presentation.

10. In accordance with the General Circular No.2 and 3 dated 8th Feb 2011 and 21st Feb 2011 issued by The Ministry of Corporate Affairs, Government of India, The Balance sheet, the Statement of profit and loss and other documents of the subsidiary are not being attached with the Annual Accounts of the company, subject to fulfillment of conditions stipulated in the circular.The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

---

Mar 31, 2014

1.The Company had exposure to National Spot Exchange Limited (NSEL) of Rs.2,96,55,693/- with respect to Proprietary positions. NSEL has not been able to adhere to its payment obligation over the past few months. The Company has perused legal action against NSEL through its broker and other by filing writ petition in Bombay High Court and criminal complaint in Economic Offences Wing (EOW) jointly with other victimized brokers and clients. Pending Final outcome which is uncertain , the company has written off the amount of Rs.2,86,51,143/- in respect of its Proprietary position which is disclosed under the head "Exceptional Items".

2. Related party transactions

"Related party disclosures, as required by Accounting Standard 18, "Related Party Disclosures" issued by the Institute of Chartered Accountants of India for the year ended 31st March, 2014 are given below:"

Relationships (During the year)

Key Management Personnel :

Ashok Kumar Jain, Chairman & Managing Director

Sunil Kumar Jain, Director

Akhilesh Rathi, Director

Anita Gandhi, Director

Parag R. Shah, Director

Pankaj Kumar Gupta, Director

Rakesh Jain, Director

Subsidiaries :

Arihant Futures & Commodities Limited

Arihant Financial Services Limited

Arihant Finsec Limited

Arihant Insurance Broking Services Limited

Arihant Financial Planners & Advisors Private Limited

Arihant Quality Educational Services And Trainings Ltd

Ahinsa Lifespace Infraheight Limited

Relatives of Key Management Personnel

Arpit Jain

Ashok Kumar Jain HUF

Kiran Jain

S.N. Gandhi & Co.

Shruti Jain

*Payment to key management personnel for Salaries and Incentive includes to Ashok Kumar Jain Rs.3674223 (Previous Year Rs.3638182) and Anita Gandhi Rs.2956800 (Previous Year Rs.2956800) and to relatives of key management personal includes Shruti Jain Rs.612594 (Previous Year Rs.523208).

# Rent paid to Kiran Jain Rs.2175000 (Previous Year Rs.2205000), Ashok Kumar Jain HUF Rs.412500 (Previous Year Rs.412500) and Arpit Jain Rs.412500 (Previous Year Rs.412500).

$ Professional fees paid to S.N. Gandhi Rs.123596 (Previous Year Rs.741576).

% Sitting fees paid to Sunil Kumar Jain Rs.60000 (Previous Year Rs.60000), Rakesh Jain Rs.80000 (Previous Year Rs.60000), Pankaj Kumar Gupta Rs.60000 (Previous Year Rs.30000), Paragbhai Shah Rs.60000 (Previous Year Rs.30000) and Akhilesh Rathi Rs.60000 (Previous Year Rs.60000).

A Rent Deposit given includes Kiran Jain Rs.1837500 (Previous Year Rs.1837500), Ashok Kumar Jain HUF Rs.343750 (Previous Year Rs.343750) and Arpit Jain Rs.343750 (Previous Year Rs.343750).

3. Income in foreign currency Rs.51763 (previous year Rs.30,625). Expenditure in foreign currency Rs.Nil(previous year Rs.Nil).

4. Contingent Liability & Capital Commitments

(i) Bank Guarantees of Rs.11000000 (Previous Year Rs.1000000) extended to Bombay Stock Exchange Limited under the mandatory rules for membership and Rs.48000000 (Previous Year Rs.62000000) towards additional margin.

(ii) Bank Guarantees of Rs.7500000 (Previous Year Rs.7500000) extended to National Securities Clearing Corporation Limited under the mandatory rules for membership and Rs.269500000 (Previous Year Rs.254500000) towards additional margin.

(iii) Bank Guarantees of Rs.1500000 (Previous Year Rs.Nil) extended to MCX-SX Clearing Corporation Limited under the mandatory rules for membership and Rs.20000000 (Previous Year Rs.85000000) towards additional margin.

(iv) Corporate guarantee of Rs.200000000 (Previous Year Rs.600000000) given to banks on behalf of subsidiary M/s Arihant Futures and Commodities Limited.

(v) Claims against the Company not acknowledged as debts Rs.Nil (Previous Year Rs.Nil).

(vi) Income Tax Demand for various years Rs.35,71,794 (Rs.26,28,451)

5. Fixed Deposits

Fixed deposits with scheduled banks include Rs.72261000 (Previous Year Rs.500000) which is under the lien of National Securities Clearing Corporation Limited, Rs.13000000 (Previous Year Rs.125000) which is under the lien of Bombay Stock Exchange Limited, Rs.5500000 (Previous Year Rs.26500000) which is under the lien of MCX-SX Clearing Corporation Limited.

6. Disclosures under Micro, Small, & Enterprises Development Act,2006

Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises (SME). The Company is in the process of compiling relevant information from its suppliers about their coverage under the said act. Since the relevant information is not readily available, no disclosures have been made in the accounts. however, in view of the management, the amounts due to the suppliers are paid within the mutually agreed credit period and therefore, there will not be any interest that may be payable in accordance with the provisions of the Act.

7. Securities are normally held by the Company in its own name except securities pledged with exchange. Securities, which are not registered in the name of the Company, are held by the Company with valid transfer documents.

8. Securities received from clients as collateral for margins are held by the Company in its own name in a fiduciary capacity.

9. Segment Reporting

As per the definition of ''Business Segment'' and ''Geographical Segment'' contained in Accounting Standard 17 "Segment Reporting", the management is of the opinion that the Company''s operation comprise of operating in Primary and Secondary market and incidental activities thereto, there is neither more than one reportable business segment nor more than one reportable geographical segment, and, therefore, segment information as per Accounting Standard 17 is not required to be disclosed.

10. Previous year figures

The previous year figures have been regrouped/ reclassified, wherever necessary to conform to current year presentation.

11. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th Feb, 2011 and 21st Feb, 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act,1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

---

Mar 31, 2013

1. Income in foreign currency Rs.30,625(previous year Rs.20,593). Expenditure in foreign currency Rs.Nil (previous year Rs.1,60,699).

2. Contingent Liability & Capital Commitments

(i) Bank Guarantees of Rs.10 Lacs (Previous Year Rs.10 Lacs) extended to Bombay Stock Exchange Limited under the mandatory rules for membership and Rs.620 Lacs (Previous Year Rs.840 Lacs) towards additional margin. (ii) Bank Guarantees of Rs.75 Lacs (Previous Year Rs.75 Lacs) extended to National Securities Clearing Corporation Limited under the mandatory rules for membership and Rs.2545 Lacs (Previous Year Rs.2625 Lacs) towards additional margin.

(iii) Bank Guarantees of Rs.850 Lacs (Previous Year Rs.550 Lacs) extended to MCX-SX Clearing Corporation Limited towards additional margin. (iv) Corporate guarantee of Rs.5000 Lacs (Previous Year Rs.3000 Lacs) given to banks on behalf of subsidiary M/s Arihant Futures and Commodities Limited.

(v) Claims against the Company not acknowledged as debts Rs. Nil (Previous Year Rs.Nil). 27. Fixed Deposits Fixed deposits with scheduled banks include Rs.5.00 Lacs (Previous Year Rs.601.50 Lacs) which is under the lien of National Securities Clearing Corporation Limited, Rs.1.25Lacs (Previous Year Rs.1.25 Lacs) which is under the lien of Bombay Stock Exchange Limited, Rs.265.00 Lacs (Previous Year Rs.351.00 Lacs) which is under the lien of MCX-SX Clearing Corporation Limited. 28. Disclosures under Micro, Small & Medium Enterprises Development Act,2006 Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises (SME). The Company is in the process of compiling relevant information from its suppliers about their coverage under the said act. Since the relevant information is not readily available, no disclosures have been made in the accounts. however, in view of the management, the amounts due to the suppliers are paid within the mutually agreed credit period and therefore, there will not be any interest that may be payable in accordance with the provisions of the Act.

3. Securities are normally held by the Company in its own name except securities pledged with exchange. Securities, which are not registered in the name of the Company, are held by the Company with valid transfer documents. 30. Securities received from clients as collateral for margins are held by the Company in its own name in a fiduciary capacity.

4. Segment Reporting

As per the definition of ''Business Segment'' and ''Geographical Segment'' contained in Accounting Standard 17 "Segment Reporting", the management is of the opinion that the Company''s operation comprise of operating in Primary and Secondary market and incidental activities thereto, there is neither more than one reportable business segment nor more than one reportable geographical segment, and, therefore, segment information as per Accounting Standard 17 is not required to be disclosed.

5. Previous year figures

The previous year figures have been regrouped/ reclassified, wherever necessary to conform to current year presentation.

6. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th Feb, 2011 and 21st Feb, 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act,1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

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Mar 31, 2012

*Payment to key management personnel for Salaries and Incentive includes to Ashok Kumar Jain (CMD) Rs 3643443 (Previous Year Rs 8135142) and Anita Gandhi (as Whole Time Director) Rs 2956800 (Previous Year Rs 3566905) and to relatives of key management personnel includes Shruti Jain Rs 557499 (Previous Year Rs 240000) and Kiran Jain Rs NIL (Previous Year Rs 60000).

#Rent paid to Kiran Jain Rs 2205000 (Previous Year Rs 1145000), Ashok Kumar Jain HUF Rs 412500 (Previous Year Rs 412500) and Arpit Jain Rs 412500 (Previous Year Rs 412500).

$Professional fees paid to S.N. Gandhi Rs 660000 (Previous Year Rs 1280000).

% Sitting fees paid to Sunil kumar Jain Rs 40000 (Previous Year Rs 40000), Rakesh Jain Rs 40000 (Previous Year Rs 40000) ,Pankaj Kumar Gupta Rs 20000 (Previous Year Rs 30000), Paragbhai Shah Rs 40000 (Previous Year Rs 30000) and Akhilesh Rathi Rs 30000 (Previous Year Rs 30000).

-Deposit given includes Kiran Jain Rs 1575000 (Previous Year Rs 1575000), Ashok Kumar Jain HUF Rs 300000 (Previous Year Rs 300000) and Arpit Jain Rs 300000 (Previous Year Rs 300000).

1. Income in foreign currency Rs 20,593 (previous year Rs Nil). Expenditure in foreign currency Rs 160699/- (previous year Rs Nil).

2. Contingent Liability & Capital Commitments

(i) Bank Guarantees of Rs 10 Lacs (Previous Year Rs 10 Lacs) extended to Bombay Stock Exchange Limited under the mandatory rules for membership and Rs 840 Lacs (Previous Year Rs 1190 Lacs) towards additional margin.

(ii) Bank Guarantees of Rs 75 Lacs (Previous Year Rs 75 Lacs) extended to National Securities Clearing Corporation Limited under the mandatory rules for membership and Rs 2625 Lacs (Previous Year Rs 2750 Lacs) towards additional margin.

(iii) Bank Guarantees of Rs 550 Lacs (Previous Year Rs 75 Lacs) extended to MCX-SX Clearing Corporation Limited towards additional margin.

(iv) Corporate guarantee of Rs 3000 Lacs (Previous Year Rs 1550 Lacs) given to banks on behalf of subsidiary M/s Arihant Futures and Commodities Limited.

(v) Claims against the Company not acknowledged as debts Rs Nil (Previous Year Rs 3.98 Lacs).

3. Fixed Deposits

Fixed deposits with scheduled banks include Rs 601.50 Lacs (Previous Year Rs 120.00 Lacs) which is under the lien of National Securities Clearing Corporation Limited, Rs 1.25 Lacs (Previous Year Rs 1.25 Lacs) which is under the lien of Bombay Stock Exchange Limited, Rs 351.00 Lacs (Previous Year Rs 105.00 Lacs) which is under the lien of MCX-SX Clearing Corporation Limited.

4. Disclosures under Micro, Small, & Enterprises Development Act,2006

Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises (SME). The Company is in the process of compiling relevant information from its suppliers about their coverage under the said act. Since the relevant information is not readily available, no disclosures have been made in the accounts. however, in view of the management, the amounts due to the suppliers are paid within the mutually agreed credit period and therefore, there will not be any interest that may be payable in accordance with the provisions of the Act.

5. Securities are normally held by the Company in its own name except securities pledged with exchange. Securities, which are not registered in the name of the Company, are held by the Company with valid transfer documents.

6. Securities received from clients as collateral for margins are held by the Company in its own name in a fiduciary capacity.

7. Segment Reporting

As per the definition of Business SegmentRs and Geographical Segment' contained in Accounting Standard 17 'Segment Reporting' the management is of the opinion that the Company's operation comprise of operating in Primary and Secondary market and incidental activities thereto, there is neither more than one reportable business segment nor more than one reportable geographical segment, and, therefore, segment information as per Accounting Standard 17 is not required to be disclosed.

8. Previous year figures

Till the year ended 31st March 2011, the company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification.

9. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th Feb 2011 and 21st Feb 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act,1956,subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidaries has been included in the Consolidated Financial Statements.

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Mar 31, 2011

1. Securities are normally held by the Company in its own name except securities pledged with exchange. Securities, which are not registered in the name of the Company, are held by the Company with valid transfer documents.

2. Securities received from clients as collateral for margins are held by the Company in its own name in a fiduciary capacity.

3. Contingent Liabilities not provided for:

(i) Bank Guarantees of Rs.10 Lacs (Previous Year Rs.10 Lacs) extended to Bombay Stock Exchange Limited under the mandatory rules for membership and 1190 Lacs (Previous Year Rs.1165 Lacs) towards additional margin.Rs.

(ii) Bank Guarantees of Rs.75 Lacs (Previous Year Rs.75 Lacs) extended to National Securities Clearing Corporation Limited under the mandatory rules for membership and Rs. 2750 Lacs (Previous Year Rs.2750 Lacs) towards additional margin.

(iii) Bank Guarantees of Rs.75 Lacs (Previous Year Rs.75 Lacs) extended to MCX-SX Clearing Corporation Limited towards additional margin.

(iv) Income Tax matters in respect of which appeal is pending - Rs. 52.80 Lacs (net of payments) (Previous year Rs.10.00 Lacs).

(v) Corporate guarantee of Rs.1550 Lacs (Previous Year Rs.1000 Lacs) given to banks on behalf of subsidiary M/s Arihant Futures and Commodities Limited.

(vi) Claims against the Company not acknowledged as debts Rs.3.98 Lacs (Previous Year Rs. 3.98 Lacs).

4. There is no income and expenditure in foreign currency.

5. Fixed deposits with scheduled banks include Rs. 120. 00 Lacs (Previous Year Rs. 275.00 Lacs) which is under the lien of National Securities Clearing Corporation Limited, Rs.1.25 Lacs (Previous Year Rs.1.25 Lacs) which is under the lien of Bombay Stock Exchange Limited, Rs.105.00 Lacs (Previous Year Rs.125.00 Lacs) which is under the lien of MCX-SX Clearing Corporation Limited.

6. Related party disclosures, as required by Accounting Standard 18, "Related Party Disclosures" issued by the Institute of Chartered Accountants of India for the year ended 31st March, 2011 are given below:

Relationships (During the year)

1. Key Management Mr. Ashok Kumar Jain, Chairman Personnel & Managing Director

Mr. Sunil Kumar Jain, Director

Mr. Akhilesh Rathi, Director

Mrs. Anita Gandhi, Whole-time Director

Mr. Rakesh Jain, Director

Mr. Parag Shah, Director

Mr. Pankaj Kumar Gupta, Director

2. Relatives of Key Management Personnel and other proprietary / partnership concerns Mrs. Kiran Jain

Ms. Shruti Jain Mr. Arpit Jain

Ms. Swati Jain

Ashok Jain HUF

Sunil Jain HUF

Mr. Kamal Kumar Jain

Mrs. Meena Jain

Mrs. Shanta Jain

S.N. Gandhi & Co.

3. Subsidiaries Arihant Financial Services Limited

Arihant Finsec Limited

Arihant Futures & Commodities Limited

Arihant Insurance Broking Services Limited

* Figures reported for the previous year in respect of Mrs. Anita S. Gandhi are after 01.02.10, the date on which she was appointed as Whole time Director.

7. Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises (SME). The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in the accounts. however, in view of the management, the amounts due to the suppliers are paid within the mutually agreed credit period and therefore, there will not be any interest that may be payable in accordance with the provisions of this Act.

8. As per the definition of 'Business Segment and 'Geographical Segment contained in Accounting Standard 17 "Segment Reporting", the management is of the opinion that the Company's operation comprise of operating in Primary and Secondary market and incidental activities thereto, there is neither more than one reportable business segment nor more than one reportable geographical segment, and, therefore, segment information as per Accounting Standard 17 is not required to be disclosed.

9. Figures for the previous year have been regrouped wherever necessary to conform to current years classifications.

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Mar 31, 2010

1. Securities are normally held by the Company in its own name except securities pledged with exchange. Securities, which are not registered in the name of the Company, are held by the Company with valid transfer documents.

2. Securities received from clients as collateral for margins are held by the Company in its own name in a fiduciary capacity.

3. Contingent Liabilities not provided for:

(i) Bank Guarantees of Rs.10 Lacs (previous year Rs. 10 lacs) extended to Bombay Stock Exchange Limited under the mandatory rules for membership and Rs. 1165 Lacs (previous year Rs. 770 lacs) towards additional margin.

(ii) Bank Guarantees of Rs.75 lacs (previous year Rs. 75 lacs) extended to National Securities Clearing Corporation Limited under the mandatory rules for membership and Rs. 2750 Lacs (Previous Year Rs. 2350 Lacs) towards additional margin. (iii) Bank Guarantees of Rs.75 lacs (previous year Rs. Nil) extended to MCX-SX Clearing Corporation Limited towards additional margin. (iv) Income Tax matters in respect of which appeal is pending - Rs.10.00 Lacs (net of payments)(previous year Rs. 10.00 lacs). (v) Corporate guarantee of Rs.1000 lacs (previous year Rs. 300 Lacs) given to banks on behalf of subsidiary M/s Arihant Futures and Commodities Limited.

(vi) Claims against the Company not acknowledged as debts Rs.3.98 lacs ( previous year Rs. Nil)

3. There is no expenditure in foreign currency.

4. Fixed deposits with scheduled banks include Rs.275.00 lacs (previous year Rs. 230.00 Lacs) which is under the lien of National Securities Clearing Corporation Limited, Rs. 1.25 lacs (previous year Rs. 51.25 Lacs) which is under the lien of Bombay Stock Exchange Limited, Rs.125.00 lacs (Previous Year Rs.150.00 lacs) which is under the lien of MCX-SX Clearing Corporation Limited.

5. Related party disclosures, as required by Accounting Standard 18, "Related Party Disclosures" issued by the Institute of Chartered Accountants of India for the year ended March 31, 2010 are given below:

Relationships (During the year)

1. Key Management Personnel

Mr. Ashok Kumar Jain, Chairman & Managing Director Mr. Sunil Kumar Jain, Director Mr. Akhilesh Rathi, Director Ms. Anita Gandhi, Director Mr. Rakesh Jain, Director

2. Relatives of Key Management Personnel and other proprietary/partnership concerns

Ms. Kiran Jain Ms. Shruti Jain Mr. Arpit Jain Ms. Swati Jain Ashok Jain HUF Sunil Jain HUF Mr. Kamal Kumar Jain Ms. Meena Jain Ms. Shanta Jain S.N. Gandhi & Co.

3. Subsidiaries

Arihant Financial Services Limited Arihant Finsec Limited Arihant Futures & Commodities Limited Arihant Insurance Broking Services Limited

6. Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises (SME). The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in view of the management, the amounts due to the suppliers are paid within the mutually agreed credit period and therefore, there will not be any interest that may be payable in accordance with the provisions of this Act.

7. As per the definition of Business Segment and Geographical Segment contained in Accounting Standard 17 “Segment Reporting”, the management is of the opinion that the Companys operation comprise of operating in Primary and Secondary market and incidental activities thereto, there is neither more than one reportable business segment nor more than one reportable geographical segment, and, therefore, segment information as per Accounting Standard 17 is not required to be disclosed.

8. Figures for the previous year have been regrouped wherever necessary to conform to current years classifications.]