Accounting Policies of Indo Thai Securities Ltd. Company

Mar 31, 2025

1. Material Accounting Policies

a) Basis of Accounting and Preparation of Financial Statements

The financial statement for the year ended March 31, 2025 has been prepared in accordance with Indian
Accounting Standard (''Ind AS''). The Company is covered under the definition of NBFC and the Ind AS is applicable
under Phase II as defined in notification dated March 30, 2016 issued by Ministry of Corporate Affairs (MCA), since
the company is a listed company.

These financial statements are prepared in accordance with Indian Accounting Standards (lnd AS) prescribed
under Sec 133 of the Companies Act ("the Act'''') read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015.

These Financial Statements of the Company are presented as per Schedule III (Division III) of the Companies Act,
2013 applicable to NBFCs, as notified by the Ministry of Corporate Affairs (MCA). These Financial Statements of the
Company are presented in Indian Rupees ("INR"), which is also the Company''s functional currency and all values
are rounded to nearest Lacs upto two decimal places, except otherwise indicated.

The Standalone financial statements for the year ended March 31, 2025 are being authorised for issue in
accordance with a resolution of the directors on May 30th, 2025.

b) Use of Estimates

The preparation of the financial statements in conformity with Ind AS requires that management make
judgments, estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities and disclosures of contingent assets and liabilities as of the date of the financial
statements and the income and expense for the reporting period. The actual results could differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised and in any future periods affected.

The Company makes certain judgments and estimates for valuation and impairment of financial instruments,
fair valuation of employee stock options, useful life of property, plant and equipment, deferred tax assets and
retirement benefit obligations. Management believes that the estimates used in the preparation of the financial
statements are prudent and reasonable.

c) Revenue Recognition

i. Revenue from brokerage activities is accounted for on the exchange settlement date of the transaction.

ii. Revenue from issue management, debt syndication, financial advisory services etc., is recognized based on
the stage of completion of assignments and terms of agreement with the client.

iii. Gains / losses on dealing in securities are recognized on the exchange settlement date of the transaction.

iv. Interest income is recognized using the effective interest rate method.

v. Revenue from dividend is recognized when the right to receive the dividend is established.

d) Property, Plant and Equipment (PPE)

Measurement at recognition:

i. Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if
any. Subsequent costs are included in the asset''s carrying amount.

ii. All property, plant and equipment are initially recorded at cost. Cost comprises acquisition cost, borrowing cost if
capitalization criteria are met, and directly attributable cost of bringing the asset to its working condition for the intended
use.

iii. Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable that future
economic benefit associated with these will flow with the Company and the cost of the item can be measured reliably.

iv. Any gain or loss on disposal of an ite m of property, plant and equipment is recognized in statement of profit and loss.
Depreciation:

i. Depreciation provided on property, plant and equipment is calculated on a Written-Down-Value (WDV) basis using the
rates arrived at based on the useful lives estimated by management.

ii. Depreciation on assets is provided on a Written Down Method as per the rates prescribed in Schedule II to the Companies
Act, 2013. Depreciation on additions to fixed assets is provided on a pro-rata basis from the date the asset is available for use.
Depreciation on sale / deduction from fixed assets is provided for up to the date of sale / deduction / scrapping, as the case
may be.

iii. The residual values, estimated useful lives and methods of depreciation of property, plant and equipment are reviewed at
the end of each financial year and changes if any, are accounted for on a prospective basis.

Capital Work in Progress:

i. Cost of the assets not ready for intended use, as on reporting date, is shown as capital work in progress. Advances given
towards acquisition of fixed assets outstanding at each reporting date are shown as other non-financial assets.

ii. Depreciation is not recorded on capital work- in-progress until construction and installation is completed and assets are
ready for its intended use.

Derecognition:

The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item of property, plant and
equipment is measured as the difference between the net disposal proceeds and the carrying amount of the item and is
recognized in the Statement of profit and Loss when the item is derecognized.

e) Intangible Assets:

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization.

Amortisation

Amortisation is calculated using the straight- line method to write down the cost of intangible assets to their residual values over
their estimated useful lives and is included in the depreciation and amortization in the statement of profit and loss.

f) Financial instruments

The Company recognizes all the financial assets and liabilities at its fair value on initial recognition; In the case of financial assets
not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial
asset are added to the fair value on initial recognition. The financial assets are accounted on a trade date basis.

For subsequent measurement, financial assets are categorised into:

Amortised cost: The Company classifies the financial assets at amortised cost if the contractual cash flows represent
solely payments of principal and interest on the principal amount outstanding and the assets are held under a business
model to collect contractual cash flows. The gains and losses resulting from fluctuations in fair value are not recognised
for financial assets classified in amortised cost measurement category.

Fair value through other comprehensive income (FVOCI): The Company classifies the financial assets as FVOCI if the
contractual cash flows represent solely payments of principal and interest on the principal amount outstanding and the
Company''s business model is achieved by both collecting contractual cash flow and selling financial assets. In case of
debt instruments measured at FVOCI, changes in fair value are recognised in other comprehensive income. The
impairment gains or losses, foreign exchange gains or losses and interest calculated using the effective interest method
are recognised in profit or loss. On de-recognition, the cumulative gain or loss previously recognised in other
comprehensive income is re- classified from equity to profit or loss as a reclassification adjustment. In case of equity
instruments irrevocably designated at FVOCI, gains / losses including relating to foreign exchange, are recognised
through other comprehensive income. Further, cumulative gains or losses previously recognised in other
comprehensive income remain permanently in equity and are not subsequently transferred to profit or loss on
derecognition.

Fair value through profit or loss (FVTPL): The financial assets are classified as FVTPL if these do not meet the criteria for
classifying at amortised cost or FVOCI. Further, in certain cases to eliminate or significantly reduce a measurement or
recognition inconsistency (accounting mismatch), the Company irrevocably designates certain financial instruments at
FVTPL at initial recognition. In case of financial assets measured at FVTPL, changes in fair value are recognised in profit or
loss.

Profit or Loss on sale of investments is determined on the basis of first-in-first-out (FIFO) basis.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

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

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

The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non- financial asset takes into account a market participant''s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.

In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation
techniques, as summarized below:

Level 1 - The fair value hierarchy have been valued using quoted prices for instruments in an active market.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or
indirectly (i.e. derived from prices).

Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes
inputs that are not observable and the unobservable inputs have a significant effect on the instrument''s valuation.

Impairment of financial assets: In accordance with Ind AS 109, the Company applies Expected Credit Loss model (ECL)
for measurement and recognition of impairment loss. The Company recognizes lifetime expected losses for all contract
assets and / or all trade receivables that do not constitute a financing transaction. At each reporting date, the Company
assesses whether the loans have been impaired. The Company is exposed to credit risk when the customer defaults on
his contractual obligations. For the computation of ECL, the loan receivables are classified into three stages based on the
default and the aging of the outstanding.

If the amount of an impairment loss decreases in a subsequent period, and the decrease can be related objectively to an
event occurring after the impairment was recognised, the excess is written back by reducing the loan impairment
allowance account accordingly. The write-back is recognised in the statement of profit and loss.

For subsequent measurement, financial liability are categorised into:

All financial liabilities are initially recognised at fair value net of transaction cost that are attributable to the separate
liabilities. All financial liabilities are subsequently measured at amortised cost using the effective interest method or at
FVTPL.

Financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognised by
the Company as an acquirer in a business combination to which lnd AS 103 applies or is held for trading or it is designated
as at FVTPL.

Financial liabilities that are not held-for- trading and are not designated as at FVTPL are measured at amortised cost. The
carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the
effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future
cash payments (including all fees paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a
shorter period, to the amortised cost of a financial liability.

Equity instruments:

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.

Derecognition:

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. 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 derecognition of the
original liability and the recognition of a new liability. The difference between the carrying amount of the financial liability
derecognised and the consideration paid is recognised in the Statement of Profit and Loss.

g) Employee Benefits

Gratuity

The Company pays gratuity, a defined benefit plan, to its employees who retire or resign after a minimum period of five
years of continuous service. The Company makes contributions to the LIC Employees Gratuity Fund which is managed
by Life Insurance Company Limited (LIC) for the settlement of gratuity liability.

A defined benefit plan is a post- employment benefit plan other than a defined contribution plan. The Company''s net
obligation in respect of the defined benefit plan is calculated by estimating the amount of future benefit that employee
has earned in exchange of their service in the current and prior periods and discounted back to the current valuation
date to arrive at the present value of the defined benefit obligation. The defined benefit obligation is deducted from the
fair value of plan assets, to arrive at the net asset / (liability), which need to be provided for in the books of accounts of the
Company.

As required by the Ind AS19, the discount rate used to arrive at the present value of the defined benefit obligations is
based on the Indian Government security yields prevailing as at the balance sheet date that have maturity date
equivalent to the tenure of the obligation.

The calculation is performed by a qualified actuary using the projected unit credit method. When the calculation results
in a net asset position, the recognized asset is limited to the present value of economic benefits available in form of
reductions in future contributions.

Remeasurements arising from defined benefit plans comprises of actuarial gains and losses on benefit obligations, the
return on plan assets in excess of what has been estimated and the effect of asset ceiling, if any, in case of over funded
plans. The Company recognizes these items of remeasurements in other comprehensive income and all the other
expenses related to defined benefit plans as employee benefit expenses in their profit and loss account.

When the benefits of the plan are changed, or when a plan is curtailed or settlement occurs, the portion of the changed
benefit related to past service by employees, or the gain or loss on curtailment or settlement, is recognized immediately
in the profit or loss account when the plan amendment or when a curtailment or settlement occurs.

Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company is statutorily required
to contribute a specified portion of the basic salary of an employee to a provident fund as part of retirement benefits to its
employees. The contributions during the year are charged to the statement of profit and loss.

h) Borrowing costs

Borrowing costs include interest expense as per the effective interest rate (EIR) and other costs incurred by the Company
in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of those
tangible fixed assets which necessarily take a substantial period of time to get ready for their intended use are
capitalized. Other borrowing costs are recognized as an expense in the year in which they are incurred.

i) Foreign exchange transactions

The functional currency and the presentation currency of the Company is Indian Rupees. Transactions in foreign
currency are recorded on initial recognition using the exchange rate at the transaction date. Monetary assets and
liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the
reporting date. Exchange differences arising on the settlement or translation of monetary items are recognized in the
statement of profit and loss in the period in which they arise.

Assets and liabilities of foreign operations are translated at the closing rate at each reporting period. Income and
expenses of foreign operations are translated at monthly average rates. The resultant exchange differences are
recognized in other comprehensive income in case of foreign operation whose functional currency is different from the
presentation currency and in the statement of profit and loss for other foreign operations. Non-monetary items which
are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the
transaction.

j) Income tax

The income tax expense comprises current and deferred tax incurred by the Company. Income tax expense is recognised
in the income statement except to the extent that it relates to items recognised directly in equity or OCI, in which case
the tax effect is recognised in equity or OCI. Income tax payable on profits is based on the applicable tax laws in each tax
jurisdiction and is recognised as an expense in the period in which profit arises. Current tax is the expected tax
payable/receivable on the taxable income or loss for the period, using tax rates enacted for the reporting period and any
adjustment to tax payable/receivable in respect of previous years.

Current tax assets and liabilities are offset only if, the Company:

a) The entity has legally enforceable right to set off the recognized amounts; and

b) Intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purpose and the amounts for tax purposes.

Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are
recognised, for all deductible temporary differences, to the extent it is probable that future taxable profits will be
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Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based
on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Deferred tax assets and liabilities are offset only if:

c) The entity has legally enforceable right to set off current tax assets against current tax liabilities; and

d) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the same
taxable entity.

The tax effects of income tax losses, available for carry forward, are recognised as deferred tax asset, when it is probable that future
taxable profits will be available against which these losses can be set-off.

Additional taxes that arise from the distribution of dividends by the Company are recognised directly in equity at the same time as
the liability to pay the related dividend is recognised.

k) Cash and Cash Equivalents

Cash and cash equivalents for the purpose of cash flow statement include cash in hand, balances with the banks and short-term
investments with an original maturity of three months or less, and accrued interest thereon.

l) Impairment of non-financial assets

The Company assesses at the 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 is required, the Company estimates the asset''s recoverable amount. An asset''s
recoverable amount is the higher of an asset''s or cash- generating unit''s (“CGU”) fair value less costs of disposal and its value in use.
The 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 or groups of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent
market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model
is used. Impairment losses are recognised in statement of profit and loss.

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Mar 31, 2024

1. Mail''d jl Accounting Pol i deni

a) Basis of Accounting .a net Pro pa rat fort of Financ ial Statements

The financial statement fur the year ended Marc''- 31, 2024 has been prepared in accordd-ce with Indian Accounting Standard j ind AS''j. Thq-Ccjmp-ainy scovered under the definition of N RFC and the Inb AS s Applicable under Phase il as defined in notificatioi i dated March 30, 2010 issued by Ministry of Corporate Affairs :mCAj since the company is a listed company.

These f i nano a I statements. afp prepared in accordance w;t.h Indian Accounting Standards find ASJ prescribed under See ''33 of theComojr.icsAcl ("the Act ) read with IlLfe 3 of the Companies (Inc-an Accounting Standards) Rules, 2015,

These financial Statements of the Company are presented asper Schedule 111 [p vision ill) of the Companies Act, 2013 applicable? to NRFCs, as notified by the Ministry of Corporate Altai rs (MCA). Those RnanoaJ Statements ot the Company are presented in Indian Rupees flNf-r). which is also the Company''s functional currency and all values a re rou nded to nea rest L acs u pto two d edm a 1 pi aces, except othe rwse i nd ida ted.

The Standalone financial statements tor the year ended March 31 2G24 are being authorised for issue in accordance w th 3 resolution of the- d rectors on May ''O'' ,2024.

b} U se of Esti mates

The preparation of the financial ststomom^ in conformity with md AS requires that management ma*.e judgment.-;, estimate; and assumptions that affect the appheaton of account ng po''icics and the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities as of the date-of the financial Staternagts end The income and expense for the reporting porpd. The Actual results c.guld differ from these estimates. estimates and underlying .assumptions are reviewed on an ongoing basis. Revisions to account! "g psti mates are recognised in the period in which the estimate js revf$etj a no many tutu re periods effected

The Company makes certain judgments and estimates for valuation and impairment of financial instruments; fair valuation of employee stock options useful life of property, plant and equipment, deferred ta>; assets ana retirement benefit obligations Management believes that the estimates used in the preparation of the financial sta te me nts a ro p ru o o nt a n d reason a b lo

c) Revenue Recognition

i. Revenue from brokerage activities s accounted for on the exchange settlement date of the transact ion.

i . Revo n uc r r om issue- management, debt syn d : a t- on, f i n a n c i a I ad vso ry se ryi c c-s e Lc.. i s r ecog r, i z cd nosed bln t h e st ag e of coni p I et i o n of assig n me nts a nd te r m s of eg r ee me nt With the d ie rij

i ii C at ns / losses ur i dea li ng i h s^urities iir& re.tb.g njieb on the exc fi a ¦ ige sett :e i r -e n t d a te o^r the t ¦ s risac tiorl iv, Interest is recognized us¹ r-g the effective interest rate met hod.

V. Revenue from dividend is recogrnied when the nyht to receive the dividend is established.

d) Property, Plant and Equipment (PPE)

Measurement at recognition:

. Property, plant and equipment arc- stated at cost less accumulated depreciation and accumulated impairment losses it aiffy £u osec uent costs are i niltided i n th e asset''s ca rryi ri y a tnoti" t

¦ All property, plant and ec uiphnent are hiUally recorded aL cost. Cost Comprises acquisition Cost bon owing tost, if capitaazafion cri^ria are phet eng director attributable cost of bringing the assei to its working condition ‘or the intended usp.

i. Subsequent expenditure relating to property, plant ano equipment is capitalized only when it is probable that future ecu nor t 1 i c ben e f i c assoc i a ted w i t h t he se wf 11 f I o w w it h t he Co m ue ny a ri d t h e c ust of t he i te m ea r ¦ oe m easu: to reliably,

i v. Any gain or loss o n dlspcsakrf a© i te rrtof property, plant at*d equ ipm^nt is recog n izesf in sfeatess&antsflf-p rofit and loss Depreciation:

i Depreciation provided on property, plant and equipment is calculated cn a Written-Down Value (WDV) basis using the ra res a rr ived at based on ¦ h e u se Tu 11 i ves e s 11 nr eted by ma n a y ern en L

i. Depreciation on assets is provided on a Written Down Method as per the rates prescribed in Schedule i! to the Com Dames Act. 201?-. Depreciation on add it ions to fixed assets is provided on a pro-rata basis from the-date the asset is available for use. Depreciation on sale / deduction from frxed assets is provided for up to the date of sale/ deduction./ sera oping, as the case may be.

:.i.Ths lesidunl values. estimated useful lives and met hod so''dep^ciat ion of property, plant and eqdi£rf&rrt are'' reviewed at the on-d c> eg c h f: n a nda I yea r a n d c h a n g d s rf a ny. a re a coo u nto d for 9 h a p ros pec: i ve bias is

Capital Work in Pro gross:

i. Cost of iho assets not ready for ntonded us-: as on reporting date. ^:s shown as caoital work in orogress. Advances given towards acquisition off iked assets outsfand ing at each repoc ino date are shoWh as oilier non-fifiijjncial assets

i Depreciation S ri&t recorded on Capital wy-k- in-progress unlT tdflStiaction end nst^atfap is completed and assets are ready for its intended use.

Derecognition:

1 fie Carrying amount of an item of property, plant anc equipment ;s derecognized on disposal or when no future economic ben ef its a re expected f r am i ts u se or d i spo sal Th e gs i n o i loss a ri si ng from t h e dere cogn it. i on of an i te m of p ro petty, plant sod equipment ts measured as the difference between the not disposal Dtoceeds -and the carrying amount of the item and is recognized ^ttheStatfemenrof profit and IjJsswhenthd'' item is derecognized

e> Intangible Assets:

Intangible assets acquired separately a^e measured on initial leccgnition at cost. Flowing in tial recognition, intangible assets are carried at cost less accumulated amortization.

Amortisation

Am o rtisation is ca lc u I a tod usi ng ih e st ra i g ht-1 i h e method to write down the cost of i nta ng i ble a ssets to the i r resi d ua! va lues over their estimated usefu ivesand is included in the oepreciation and amortization in the statement of prof it and loss

f) Financial instruments

“he Company recognizes a''I me financial assets and liabi''ities at it''s fair value on initial recognition, sn the case oft nancial assets noLatfair value through profit or loss, transaction costs th3t are directly attributable to the acquisition or issue of the financial assert are added to the fair value on initial recognition. The financial assets a re a^OLif^sdonatradedate basis

F o r su bscq uen i mcas u rc me nt, f i na nc ia I assets a re ca tego rise d i n to:

Amortised cost: Thc Company classifies the finijihcial assets at am or Used cost If''tlhe contractual cash flows represent solely pay merits of principal and interest on the principal amount outstanding and the assets are held under a business, modc-i to collect Contractual cash flows. I he gems anc .osses resulting from ^uctuatic-ns m fair value are not recognised forrinanonal assets ciossified in amort isedcost ifneasu r^ment category.

Fair value thro ugh other comprehensive income {FVGCI): Tns CompanyclassficstlTefinar.cial assets as FVOCI it the contractu a I cash flows represent solely payments of principal and interest on the principal amount outstanding and the Company''ll business model is achieved by both ocdcctinci contractual cash flow and se ling financin assets. In case- of debt instruments measured at FVOCI, changes in fair value are recognised in other comprehensive income. The impairment gains or losses, foreign exchange gains or losses and hteT&st calculated using the effective interest method are recognised in proM or loss On do-it. so go tan. me cumulative gain qr loss previously mcogniseci in other comprehensive income is re- c''asslfied frorn equity to profit or loss as a - ed a ssif; cation adjustment. In case of equity instruments irrevocably designated at FVOCI, gains / losses includ ng relating to foreign exchange, are recognised thmugh other comprehensive income Further, cumulative gains or losses previously recoghfeed in other comprehensive income remai^r permanently in eg-.,ity and are not subsequently transferred to profit or oss on derecognition.

Fair value through profit or loss (FVTPL): the financial assets ar classified as FVT PL if these cc net meet the criteria "or classifying st amortised cost or FVOCI. Furthei. in certain cases to eliminate or significantly reduce a measurement or recognition inconsistency (accounting rni£m|&th}, t fie Co moony rrevocebty designates certain financial nstrumenLsat FVTP, at nitial recognition In case ofdnano.al assets measured at FVTP. changes :n fair value are recognised in profit or loss,

Profit or Loss on saie of investments is determined on the basis of first-in-first-out (FIFO) basis

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market oartid pants at the mea sure men-, date The if&ir value measurement is based on ''.he presumption fiat the t ra n sa c ti o n to sc 11 r h o a ss.pt o r tra nstc f the I i a bil ity t a kes pi a c o c t he r:

¦ In t.hep''i''icipal markc-t for the-asset or liabiBty, or

- In the absence of a principal market, nt.he most advantageous market foi the asset O'' l ability.

Th e pr i n ci pa t o r t he most adva nta ge.on s m a r ket m ust bo acce ss i 11 e by the C.om. p a ny

¦-fj-t

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market panic! pants act in their economic best imprest.

A fa i rvalue nacosuremcnt otanan.¹ nano; a I asset rakes into account a market parncipants a bi | tyro generate e cpnomic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use

In order to show flow fa-rvalues have been derived, financial instruments are clarified based on a hierarchy ofva.uaLion techniques, ss summarized below

Lave 11 The fa i r va I u e h ic ra re hy la ave be cn va kje d u sin g c. uotod pri c c5. for 1 nst ru n t c n t.s i n a n a c t ive m a rkot.

Level if - i"iouis other than quoted prices ir eluded within Leve; ^: that am observable either directly (i.e. as orices) or ind:mcrly (i.t? derived rrom prices;

Level 3: inputs mat arc unociservabio. This category includes all nstrumo^tsfor Wh cn the va''..ration technique- includes i ri put& t h a: a r e not o b se rvao la a n d ih e u no bse - va b I a'' n p u ts have a a ig n 1 f ica nt Effect on the n^tru merit''sy^''Ju ati o n

Impairment of financial assets: in accordance-with nd AS 103, the Company npoiies Expected Cred''t Loss model (E CL) for meas u re me nt and recogn it ion of i mpai rnn ent I oss, The Com pa ny recog n izes I ifetinn e expected losses fo r a 11 co ntract assets and / or all trade receivables that do not constitute a financing transaction. At each reporting date, the Company assesses whether the loans have been impaired. The Company is exposed to credit risk when die customer defaults on hts contractual obligations. For the computation of ECL.the loan receive dies a re classified into throe stages based on the default and the aging of the outstanding.

1‘.he amount of an- impairment loss decreases m 5 subsequent period, and tho decrease ca^- be related objectively to fcn event occurring affor the impairment was recognised, excess is written back by redoing the loan impairment a iowance account accordingly, “he write Pack is recognised n I -he statement of profit and 01s

For subseq uentm easure mont, f i n a n ci all fa bi I ity are cat og o rlsed into:

All hnancial liabilities am initially rocogo sod at fair valve net of transaction cost that are attributable to the separate ¦¦¦abil-Lies. Al^{; r} rv.in trial I abikl es are subsequently measured at amortised c-ost using the effective interest method or at FVTPL

Financial liabilities are classified asst FVTPL whenthefinancial liability iseither contingent consideration recogn''Sed by the Company assn acquirer m a business combination to which |pd ASlOiSapoiiesorjs held for trading or t is designated as at FVTPL

Frnanatel liabilities that are not held-fur - trading a ndflre not designated as at FVTPL are measured at amortised cost. The carrying amounts of financial liabilities that are subsequently measured at amortised cost a re deter mi nod based on tho effective interest method.

The eft&ctiy$ interest method is ? method of calculating the amortised cost of a financial iabiLty and of allocating interest expense over the relevant period The effective interest rate is the rate tost exactly discounts est''mated future cash payments (including ai! foes paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts'') through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a tinanci.V iinbi- ity.

Equity instruments:

An equity instrument isany contract that evidences a residual interest n the assets of an entity after deducting alt of its I ia b i I it ies. E q it^;ty i nst ru m e nts isSUed by t h e Com p a ny a re recog n i sed at t he proceeds recei wed, net of d > rect i sst 1 e costs

Derecognition:

A financ al lability isdcrecogniscd when the obligation under tho lability is discharged or cancelled orexpiros. When an easting financial liability is replaced byanojHj''j|r from the same lender on subsist elly different term?, oj f''etei ms''pf an existing iability .ire substantially mc-eifiod. such an exchange or modification is treated os tho cerc-cognt on of The or.: liny iiab^: ity and the recognition of a new liability. 1 ire di''Ve rente between me ts vying amount ofthefinanc altfofcrtiity derecognised and the consideration par I is recognised in the Statement of Prcdt a no Loss

g) Employee Benefits

Gratuity

I he Company pays gratuity, a defined benefit plan, to its employees who retire or resign after a m.inimunri pcrioc of five years of continuous service. The Company makes contributions to the LIC Employees Gratuity Fund which is managed by l. ife I ns u ra nee Co m pa ny U m 11 ed {UC) fio r the sott le me n t of grat u 1 ty I ra b i I i ty.

A defined befijfefit plan is a post, employment benefit plan other than a defined contribution plan. The Company''s net obligation in respect of the defined benefit plan is calculated by estimating the amount of future benefit that employee has earned in exchange of their service in the current and prior periods end discounted beck to the current valuation datepp arrive att ho p rose n t va i uc of L he d of i n ed bo nef i t o bt gatifin i ho de fin od bo no f i: c bi ig a t i o n i s d od -u 01 od from, t h e fair value of plan assets to arrive at the net asset / (liability), which need to be provided tor mthe books of accounts of the Company.

As required by the Leri A5I9. the discount rate used to arrive at the present value of the defined benefit obi gations is based on the Indian Government security yields prevailing as at the balance sheet date that have maturity date equivalent to the tenu re of the obligation.

The calculation is performed by a qualified actuary using the n rejected unit credit method-When the calculation results in a net asset position, the recognized asset is limited to the present value oF economic benefits available in form of reductions i n fut tire coot ri but ions.

Renriaasurerirfeirts arising from defined benefit plans compri^fs ot aciuaria gain; and losses on benefit ob igations the return on plan sssets in excess of what has been cstinr.rjted and the- effect of asset ce. .ng, if any, in case of over funded plans. Th| Company recognises these items of remeasure merits in other comprehensive ''ncorne and ell the ethe¹ expenses related to defined benefit plans as employee ocnefii expenses in their! orofitand loss account

When the benefits of the plan are changed, or when a plan i$ curtailed or settlement occurs, the portion of the Charged b sn ef i t re I a ted to pa St se rvi ce by e m p lo.yees, or me gain or I oss on tu La- i I men t Orsett] e-men t, i s recoy n i zed m med iate|y ij^t h£ profitqif''fess accQU ht when the pJ an amendlttie nt or when a cyj ta i I nqentpr sett lement pqcu rs

Provident Fund

Retirement benefit in the form of provident fond is a defined contribution scheme. The Company isstatuton ^;y required tocon tribute s specified portion of the oasic salary of sn employee to a provident fund as part of retirement benefitstO''ts e m p Ioyees. I he £c n tr i b ut i o ns during the yes r a t o c h a rge d to th e sf.ateme n t of p rof it a n d I oss.

h) Borrowing costs

Borrowing fccstsihdude Interest expert&e as per ‘.he effective interest rafe (El R) and other costs incurred by the Company in connection With the borrowing of funds Borrowing costs directly attcbutableto acquisition or construction of those tangible fixed assets Which necessarily faxe a substantial period o^r Lime to get ready for then intended use are capitalized Other borrow- ng costs a re recognized as an expensefo theyear iff which they grffe incurred

E) Foreign exchange transactions

The functional currency and the presentation currency of the Company is Indian Rupees. Transactions in foreign currency are recorded on initial recognition using the exchange rate at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date. Exchange differences arising on me set Lie men t or translation of monetary items are recognized in Lhe statement of profit and loss in the period in which they arise

Assets and liabilities of foreign operations are translated at the dosing rate at each reporting period Income and expenses of fotergn operations ate translated at. monthly average rates, “be resultant exchange Differences ate recognized in other comprehensive i-come in case of foreign operation whose functional currency is d''fferent from the presentation currency and in the stntomont ibf orofit and ''oss for other foreign operations. Won monetary items which are carried at h''x.toriCa- cost dS&OiYifnated in a foreign currency are reported using the exchange rate at the date of the transaction

j) income tax

i lie Income tax expense comprises re ht Li n d deferred tax meurroo oythc Company neems tax expense, s ''ecognised

in the income statement except to the extent that it relates to items recognised directly in equity or OG, n which case the tax effect is recognised in equity or GCI. ncometax oayable on profits is based on the applicable tax laws in each tax jurisdiction and is recognised as an expense in the period in which profit arises. Current tax is the expected tax payab-o/receivable on the taxable income or loss for the perrod, using tax rates cm acted for the ro porting period and any adj u stme n t to ta x pays b I eAece^:va bi e i n res pec t of previou s years.

Current tax assets and liabilities a re offset Ohly if, LheComnany:

a) The entity has ^;egaliy enforce? die right to setoff the recognized amounts; and

b; Intends either to sot Lie cm a rot basis, or to realise the asset and settle thc-Labil ty simultaneous^

Deferred tax is recognised m respect of temporary differences between the carrying amounts of assets and liabilities to'' financia reporting Purpose and the amounts for tax pur poses

Deterred Lax liabilities are general iy recognised for all taxable temporary differences and deferred lax assets are recogmsec for ell deductible temporary differences, to the extent it is probable that future taxable profits wD be avai.able against which decsuctible temporary di fferencesean be utilised.

D-d furred ta->: is measured at the tjfj® rates trot arc expected to be aoqliea to the temporary differences wt.^n they reverse, eased on the laws tha* liave been enacted or substantively enacted by the reporting date. Deterred tax. assets are reviewed at each re port rng date a nd a re red u cad to t he extent thatitisnolonaerproba bio t hat t no re I a ted tax bench t vyi 11 be r ea I tsed

Def er red tax a ssets a n ri 11 ah i I i des a re offset on iy i f.

c) I tie entity has legally enforceable right to Set off cur rent tax assets against Current tax liabilities; and

d) The defer rad tax assets and the deferred tax liabii.fles relate to in come taxes levied by the same taxation authority on the same tax able entity.

The tax effects of income tax losses, ava able for carry forward, arc rccogn: sod as deferred taxassci, wnen it isprobaolc that future taxable pro fits will be available agai-st which these losses can be set-off

Ad cf it i ona I ta xes t h a t a r i sc f rc m t he d i st ri b u t i o n of d ivi o e n d s by T.h e C om pa ny a re rer.og n i sen d^: roct^?y i n op u i ty a t1 h c s,a me 11 me a s the liability to pay the related dividend is recognised.

k) Cash and Cash Equivalents

Cash and cash equivalents forthe purpose of cash How state ment include cash .n hand. balances with the banks and short-term invest merits with a n or i g: n a I m at u r ity of th ? ee m o n L hs c r I ess, a nd ace r u ed r’, teres; thereon ¹

1

Impairment of norvfinanciat assets

The Company assesses at the re porting date whether the re i&an indication that an asset maybe impaired. if any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset’s recoverable a mount is the higher of an asset''s or cash- generating lira''s ("CGU”) fair valueless costs of disposal ahd itsva ue in use. The recoverable amount is determined for an individual asset, unless the asset docs not generate cash inflows chat are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset Or CCd exceeds I s recoverable a mount, the asset is considered impaired and is written down to its recoverable amount In assessing value rh use, the estimated future cash flows are discounted to their present value using a ore-tax discount rate tha: reflects current market assessments of the time value of money and the risks soecific to the asset, In determining fair value fess costs of disposal, recent market transactions arc taKor into account, r avai able, i no such transactions car. bo identified, an appropriate valuation model it used, Impairment losses a re recognised in statement of prof it and loss.

---

Mar 31, 2023

1. Significant Accounting Policies

a) Basis of Accounting and Preparation of Financial Statements

The financial statement for tee year ended March 31, 2023 has been prepared ^:n accordance with Indian Accounting Standard find AS'') The Company is covered under the cefinihon of KBFC and the Ind AS is applicable uncer Phase II as defined in notification dated March 30_r 2016 issued by Ministry qf Corporate Affairs (MCA),sinoe the company is a listed company.

These financial statements are oreparec in acccrcance with pdian Account ng Standards [ire AS) prescribed under Sec 133 cf the Companies Act ("the Act '' read with Rule3o~^rthe Companies (:nd^:an Account'' ng Stands res) Rules, 2015.

These Financial State merits of the Company a re presented as per Schedule n [Division 111) of the Companies Act, 2013applic3oletoM6FCs,asnotified by the Mi nistryof Corporate Adairs (MCA). These =inancia^: Statements of the Company are presentee in Indian Rupees {"I NR ), which is a Iso the Company''s functional currency and all values a re rou n ded to ne a rest Lacs upto two d eci m al p laces, except ot herw ise i n d tested.

The Standalone financial statements for the year ended March 31, 2023 are being authorised for issue in accorda nee with a reso I uti o n of the 0 i rectors o n M ay 23,2023.

b) U s* of Esti mates

The preparation of the financial statements in conformity with ind AS requires that management make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and osclosures of contingent assets and iablities as of the date of the financial statements and the ^:ncome ano expense for the reporting perioc. The actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised nthe period in which the estimate is revised and n any hj tune pededs affected.

The Company makes certain judgments and estimates for valuation and impairment of financial instruments, fair valuation of employee stock options, useful lire of property, p:ant and equipment, aeferred tax assets and reti rente nt benef it o b I i g at ions. M a nag emen: be I i fewest h a t th e est i mates used in t he prepar a ticn of the f'' n a n c i a I state me nts are pru d e nt a nd reason able.

c) Revenue Recognition

i. Revenue from brokerage activities is accounted for on the exchange settlement date of the transactior

fi. Revenue from ^Jssue management, oebt syndication, financial aevisory services etc._r is recogn.zed basec or the stage of completion of assign mentsanc terms of agreement with the client

ri .Ca ns/losses on dealing -nsec unties a re recognized on the exchange settlement date of the transaction.

iv. Interest in come is recognizee using the elective interest rate method.

v. Reve n ue f rom d ivi d e nd is reccg n ized whe n t he r ig ht to rece ive the d ividen d ss estab I is h ed.

d) Property, Plant and Equipment (PPE)

Measurement at recognition:

i. Property, plant and equipment are stated at cost less accumulated deprecation and accumulated impairment losses, if eny. Suboeq uent costsare included in the asset''s carrying amount.

i Al property, plant a no equipment are initially recorded at cost. Cost comprise^ acquisition cost borrowing cost if capita zation criteria are met. and directly attributable cost of bring ng she asset to its working condition for the intended use.

iii Subsequent expenditure relating to property, plant and equipment is capita ized only when it is probabe that future eco norm i c b e nef it assc c i ated w it h t hese w ill fT ow w ith the.Company and the coat oft It e i term ca n be me as u red re I i a b^!y.

iv. Anygain or lossoncisposalofan item of property, plant and equipment is recognizee in statement of profit ano loss. Depredation:

i. Deprec atior provided on p ropery, plant and equipment is calculated on a Written-Down-Value (WDV) basis us^:ng the rates arrived at based on the useful ves estimated by management

ii Depreciation on assets is provided on a Written Down Method as per the rates prescribed in Schedule II to the Companies Act, 2013. Depreciation on additions to fixed assets is provided on a pro-rata basis ^;rom the date tee asset is available for use. Depreciation on sale/deduction from fixed assets is provided for up to the cate of sale/ deduction/scrapping, as the case may be.

i i^he ^resicual values, estimated useful lives and met hod sot depreciation of property, plant and equipment ere reviewed at th e end o''⁷ ea c h f in sncia I yea it a n d ch a n g es if a nv, 3 ^re a ccou nieti fo r c n a prospect: ve ba si s.

Capital Work in Progress:

i. Cost of the assets not ready for ntended use, as on report ng cate, -.s shown as capital work in progress. Advances given towa rd s a cq u i si t’c n of f ixed assets o u tsta n c^: n g a: ea c h re porti ng d ate a re s -.ow n as ct her n on -f! n 5 nc i a I a ssets.

ii. Dep^recist on is net recorded on capital work- irf-progress until construction and nstaiadon is completes and assets are ready for its intendeo jse.

Derecognition:

The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or less arising from the derecognition of an item of property, plant and equip mentis measured as ihe difference between the net disposal proceeds and the carrying amount of the item and is recognized in the Statement of profit and Loss when the item is oerecognized.

e} Intangible Assets:

l’''ta^r’gible assets acquired separately are measured or. r-itial recognition at cost. Rd owing in t al recognition, mtangiole assets are ca rried at cost less accumulated amortization

Amortisation

Amortisation Is calculated using the straight-line method to write down the cost of intang idle assets to their resioual values over their estimated useful ivesand is included in the deprecation and amortization in tne statement of prof it and loss.

fj Financial instruments

The Compary recognizes all the financial assets and liabilities at ts fair value or. rritiai reccgn tidn; In the case offinancial assets not at fair value through profit or loss, transaction costs that are d keenly attributable to the acqu s''t on or issue of the financial asset a re added to th e fa: r va I ue 0 n i n i tia! recog n iti c n. The financial assets a re a ccourited bn a trade cate has is.

For subsequent measurement." -ancial assets a re categorised iritot

Amortised cost; The Company classifies the fioanc''al assets at amortised cost Ttne contraciua'' cash flows represent so:ely payments of principal and interest on the principal amount outstanding and the assets are held under a business model to collect contractu a I cash flews. The gains and losses resulting from fluctuations in fair value are not recognised for financial assets classified in amortised cost measurement category.

Fair value through other comprehensive income [FVOCI]: The Company classifies the financial assets as FVGCI if the contractual cashflows re o resent solely payments &f principal anc interest or. the principal amount outstanding and the Company''s business model is achieved by both collecting contractual cash flow and selling financial assets. In case of debt instruments measured at FVOCI, changes in fair value are recognised in other comprehensive income. The impairment gains or losses, fo re gn exchange gains or losses and interest calculated using the effective interest method are ''ecocnised in profit or loss On de-re cognition, the cumulative gam or loss previously recognised in other com. p re hen sive ncome is re- classified from equity to pro^''t or loss as a reclassification adjustment, n case of equity instruments irrevocably designated at FVOCI, gains / losses including renting to foreign exchange, are recognised through other comprehensive income. Further, cumulative gains or osses previously recognised in ether comprehensive income remain permanently in equity anc are not subsequently transferred to profit or loss on derecognition.

Fair value through profit or loss [FVTPL): The financ''a: assets areclassnec as FVTPL if these do not meet the criteria for classifying at amortised cost or FVOCI. Further, in certain cases to eliminate or significantly reduce a measurement or reccg nitron inconsistency {accounting mismatch), the Company irrevocably designates certain f''nancial instruments at FVTPL at initial recognition, in esse of financial assetsmeasureo at FVTPL, changes I" fair value are recognised n profit or loss.

Prof ^Lt o r Loss on sa I e of i nvest m e nts is c et e rm ined on Th e has is of f ir st- in-f irst-out (FIFG) has is.

Fair value is t"e price tnat would be receved to sell an asset or paid to transfer a liabi >ty in an orderly transact: on between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to se!! the asset ertransfenhe'' iabi ity takes piece either:

-In the principal marketfor the asset or liability, or

- ¦ n t he a bsen ce of a pr i nc i p a¹ m arket,i n t he most ad va nt age o us m arketforcheassetor iabiiity.

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

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricingthea sset o r'' ia bi I ity, ass u m i n g th a t ma r ket pa rt ic'' pa n ts act'' n the i r e con o mic Des t i nte rest

A fa i r va I u e m easu rem en t of a n o n - f i na nc i a I asset ta kes i nto a coo u nt a rin a rket p a rtici pa nt''s a b i I i ty to g ene rate econo m .''c benef^:ts by using the asset in its ft chest and best use or by selling it to another market pa rife cant t^at would use the asset m its highest and best use.

In order to s how how fair values have beer, derived, financia instrumentsareclassIFed based or, a hierarchy of valuation techniques,assummarized below:

Level 1- The fair value hierarchy have beenvaluec us ngquotec prices for ''instruments''nan active marker.

Level 2 - inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes i n puts t h at a re not o bse rva b. e a n d the u n o bservab le i nputs heve a s i g n 1 f ica nt effect on th e i nstru mem''s va I u ati on.

Impairment of financial assets: tp accordance wich Ind AS 109, the Company applies Expected Credit Loss mode -.t''C LJ fo r me a s u re me nt a bd recog h it ion of i m pa i r m eftt I oss. The Com p a ny recog h ize s i fe t i die e xpected I osses for all con tr act assets and/ or all trade receivables that do not constitute ? financing transaction At each reporting date, the Company assesses whether the loans have been impaired The Company is exposed to credit risk when the customer defaults on hifi contractual obiigstiQ ns. For t he com pu tat ion of EC L. the I oen recewa bies a re ciassit ied i nto t h re* sE ag es be sed on th e d efa u It a n d t h e a gi ng of the ou 1st a nd rng.

if the amount of an impairnaenl loss decreases in a subsequent per;od, and the decrease can be related objectively to an event occuTing after the impairment was ''^cognised, the excess is written back by reducing the loan impairment a lowancc account, accordingly. T no write-back is recognised in the statement of prof tond loss.

For subsequent measurement, financial liability are categorised into:

All financial liabilities are init-ally recognised tit fair value not of transaction cos: that are atfrib''Jtabre to the separate Debilities,. All financial liabilities are subsequently measured at amortised cost using the effectives interest method or at FVTPL.

F i n a n c i a H i a b 11 i t i es a re classif i ed as at F VT PL wh ent he f i na ncia 11 i a b i lity i s e it her corti ngen i co ns id era t i o n recog nised by the Company as an acquirer in a business combination to which :nd AS 103 applies or is hold for trading or it is designated 35 at FVTPL.

Financial liabilities that are not held-for- trading and are not designated as at FvTPi are measured at amortised cost. The carrying amounts of financial liabilities t.nat. are subsequently measured at amortised costare determined based or. lh e effec t ive i n te r est me th od.

The effective interest method is a meLhod of calcu''ating Lhe amortised cost of a financial ''iabi:ity and of allocating interest expense over the relevant period The effective interest rate is the rate that exactly discounts estimated future cash payments [including ail fees paid or received that form an integral part of Lhe effective interest rate, transaction costs and other premiums or discounts} through the expected ^:ife of the financial liability, or (where appropriate) a shorter per iod, tot he amortised cost of a financial liability

Equity instruments:

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting ail of its I i a b i I ities. E q u ity i BSt r u me nts issued by t h e Com pa ny a re recog n ised at the proceeds received, n et of d i rect issu e costs.

Derecognition:

Afinancial liability is derecognised when the obligation underthe liability''s discharged orcancollc-d or expires. When an existing financial liability is replaced by another I''romthesame lender on substantially different terms.or the terms of an. existing liability arc substantially modified, such an exchange or modification is treated as the derecognition of -he original liability and the recognition of a new liability. The difference between the carrying amount of the financie^: nabil tyderecognised and the consideration paid is recognised in the Statement of Profit and Loss.

g) Employee Seref its

Gratuity

The Company pays gratuity, a defined benefit pian. to its employees who retire or resign after a mtninrtum period of five years of continuous service. The Company makes contributions to the HC Employees Gratuity Fund which is managed by L ife t nsu runce Com pa ny L i nr. ited (LI C) for t h e sett I

A defined benefit plan s a post employment benefit plan other than a defined contribution p an The Company''s net obligation ih respect of the defined benefit plan is calculated by estimating thy amount o''future benefit that employee has earned in exchange of their service in the current and prior periods and discounted beck to the current valuation date to arnveaL Lhe present value of the defined benefit obligation I he def nod benefit ob.igation Is deducted from the ^faii value of plan assets to arrive at the net asset / (liability}, which need to be provided form, the books of accounts of the Company.

As required by the nd ASI9, the discount rate used to arnvc at the present value c^f the definea benefit obligations is based on the Indian Government security yields prevailing as at the balance sheet date that have maturity date equivalent to the tenure of the obligation,

The calculation is performed by a qualified actuary using the projected unit credit method. When the calculation results in a net asset position, the recognised asset is limited to the ? resent Value of economic benefits available in form of reductions i n future contri but ions.

Re measurements arising from defined benefit plans comprises of actuarial gains and losses on benefit obiigaf.ions, the return on pior, assets ifl excess of what has been estimated and the effect of asset coi mg, if any, in case of over funded plans. The Company recognizes these items of remeasurements in other comprehensive income and all the other expenses related to defined benefit plans as employee benefit expenses in their profit and loss accou nt

when the benefits of the plan are changed, or When a plan is curtailed qr settlement occurs, 1 he portion of the changed benefit related Lo past service by employees, or the gain or loss on curtailment or settlement, rs recognised immediately intheprofit or loss account whan the plan amendment orwhen a curtailment or settlement occurs,

Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company is statutorily required tocontribute a specified portion of the basic sal ary of an employee to a provident fund as part of retirement benefits to its employees. The contributions during theycararo charged to tho statement ct prof it and oss.

h) Borrowing costs

Borrowing costs include interest expense as per the effective interest rate (ElR) and Othe^r costs incurred by the Company in connection with, the borrowing of funds Borrowing costs directly aft ri but able to acquisition or construction of those tangible fixed assets which necessarily take a substantial period of tune to get ready for their intended use are ca p ita I ized Othe r bor rowing costs a re recog n i zed as a n ex pen se in the yea r i n wh i c h t hey are incu r re d.

i) Foreign exchange transactions

The functional currency and tho presentation currency of tho Company is Indian Rupees. Transactions in foreign currency are recorded on initial recognition using the exchange rate at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date. Exchange differences arising on the settlement or translation of monetary items are recognized in the st ate m e nt of p r of i t a nd loss i n t h e pe riod i n wh i ch t h ey arise

Assets and liabilities of foreign operations are translated at the dosing rate at each reporting period Income and expenses of foreign operations are translated at monthly average rates. I''hc resultant exchange differences are recognized in other comprehensive income In case of foreign operation whose functional currency is different from the presentation currency and in the statement of profit and loss for other foreign operations, Wen monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

j) Leases

A cor-tract is, or contains, a loase if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration

As per the requirements of ind AS 116 the company evaluates whether an arrangement qualifies to be a lease In identifying a lease the company uses significantjudgement in assessing the lease term (including anticipated renewals) and theapplicablediscount rate.

I he Company determines the- iease (ermasthenon-cancellable period of a lease, together with both periods covered by an option to extent the lease if the company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if ''.he Company is reason a by certain not Lo exercise thaL option, i ho Company revises the lease term tf there is a change in the non-cancellable period of a lease

Company as a lessee

The Com, p tiny accounts for each lease component within the contract as a lease separately from non lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative st a nd - a lone p nee of the I esse co m pon $ nt a r.d t he a g gr egate st a n d a Iqn e pri ce of t be n orv I ease cq m non e nts

Right of Use Assets

The Company recognises hght-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the nghc of use asset measu red at inception shall comprise off he amount of the initial measurement of the lease lability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to he incurred by the lessee in dismantling and removi ngthe underlying asseL or restoring the underlying asset or si Leon Which it is located.

l he right of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurerr.ent of the lease liability. The right-ot''-use assets is depreciated os ngthe written down value method from the commencement dote over the lease term Pightof-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable and impairment loss, if any, is recognised in the statement of profit and toss.

Company has recognised leasehold land as right of use asset and depreciated over its term Lease Liability

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate ca n be read 11 y detc r m i ned. If that r ate ca n n ot bo read i ly dote r m ;ncd, the Co mpa ny u ses i nc re mental bor rcw( ng ra te. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the increments! borrowing rate specific to the :easo or the incremental borrow ng rote for the portfolio as a whole.

The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying a mount to reflect Lⁿe lease payments made and remeasuring the carrying amount to reflect any reassessm en t or I ea se mod fffcjStion s. Th e com pa ny recog n i ses 111 e a m o lj nt of t he re - m.e asm reme nt of lease I i a bi I ity d ue to modification as an adjustment to the rignL-of-use asset and statement of profit and loss depending upon the nature ohmodification Where the carrying amount of the right-of-use asset is reduced to zero and there isafurther reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re measurement in statement of profit and loss.

i he Company has elected riot toapply the requirements oflnd AS 116 Leases to short-term leases oT all assetsthat have a I ea se ter m of \?. m o nt hp o r less and leases to r wh ich t h e u n d e rlyi ng asset i s of I ow va i ue. Th e lease ptiyme n 15 assoc i a ted wrth these leases are recog n^ed as an expense on a straight line basis over the ease term.

Operating leases

The Company has also used the practical expedient provided by the standard when applying ind AS 116 to leases previously classified as ooerat ng leases under |nd AS 17 and therefore, has not reassessed whether a contract, is or contains a lease, at the date of nitial application, relied on its assessment of whether leases are onerous, apply''ng md AS in i nr. m od i ate I y before fhc date of nrial application as an alternative to p-ertorming an impairment review, excluded initial direct costs from measuring the right-of-use asset at the date of initial application and used hindsight when determining the lease term if the contract contains options to extend or terminate the lease The Company has used a singiedisccunlrate Lo a porlfoliocf leases with similartharacLenstics..

Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an operating lease or a fi nance tease The Company recognises lease payments received under operating leases as income on a straight Imc basis over the lease term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor''s nei nvestment in the lease. If an arrangement contains lease and non-lea se com po nen is, the Com patty a ppl ies I nci AS US Reven u e Tro m cont ra c t s with eu stem er s to a I toe ate t he con si d e ra tio n in the contract

Short-term leases and leases of low-value assets

1 he Croup has elected by class of underlying asset to not recognise right of use assets and lease liabilities for short term leasesthat have * lease term of 12 months of less and Ifeases fcrwhich the underlying asset is of low value.

k) Income tax

The income tax expense comprises current and deferred tax incurred by the Company, income tax expense is recognised in the income statement except to the extent that it relates to items recognised d^:rectly in equity or OCI, in which case theta* effect is recognised inequity orOCI. Income tax payabieon profits is based onthe applicable tax laws in each Taxjurisdictionand is recognised as an expense in the period in which profit arises. Current tax is the expected tax payabie/receivableon the taxable income Or loss for the period, using tax rates enacted for the reporting period and any adj u st ment to tax pays bl e/rece iva ble i n res pe ct of previou s yea rs.

0 j r re nt tax a sset s a n d I ia b i I i ties a re off set on ly if, t h e Co m. pa ny.

a) The entity has leg ally enforceable rig|it to set %ff thefjeGptfj^zecI a msu nts; Sind b; Intcndseithertoscrtlc or.a net basis.ort.o roa ire fhc-asset and sctdorho liability simultaneously.

Deferred rax is recognised in respect nf temporary differences between the carrying amounts of assets and lia Lilli ties for financial reporting purposeandthe amounts for tax purposes.

Deferred tax liabilities are generally recognised for all taxable temporary d fferences and deferred tax assets are recognised, for all deductible temporary differences, to the extent it is probable that future taxable profits will be aval.able againstwhich deductible temporary differences can be utilised. Deferred tax is measured at the tax rates that a re expected to be a ppl i ed to th e te m pora ry d ifferen ce & w hen th ey revet se, based on the I a ws that h ave been e na cted or substantively eri acted oy the reporting date. Doforired tax assets arc reviewed at each reporting date and are reduced to theextent thatitisno longer probable that the related tax behefitwill be realised

Deferred tax assets and liabilities are offset only if

c) i he entity has legally enforceable right to set off current tax assets against current tax I iabi'' ties; and

dJThc deferred tax assets and the deferred lax liabilities rojatc to income taxes levied by the same taxation authority on t he sa me taxa ble enti ty.

The taj* effects of income tax tosses, available for carry forward, are recognised as deferred tax asset, when It is probable t h at f ut u re taxa b| e p rof its will fee ava hI a bl e aga i nst which these losses c a n be set-otf.

Additional taxes that arise from the distribution of dividends by the Company are recognised directly in equity at the same time as the liability to pay the related dividend is recognised.

l) Cash and Cash Equivalents

Cash and cash equivalents for the purpose of cash flow statement include cash in hand, balances with the banks and short-term i n vest ments with an ongina. maturity oft.hroe months or loss, and accrued interest thereon

m} Impairment of non-f inane!a] assets

1 he Company assesses at the reporting date whether Lhere s an indication that an asset may be impaired. IT any indication exists, or when annual impairment testing for an asset is required, The Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset s or cash- generating unit s (‘‘CGLi '') fair value less costs of disposal and its value in use The recoverable amount is determined for art individual asset, unless the asset does not generate cash inflows that are largely independent of those from, other assets or gray os of assets. Where t he ca r ry i n g a mou nt of a n asset o r CG U exceed s its recove rable a m o u nt, t h e a sset is conside red i m pa i red a nd i s wri tten down to i ts recovers ble a mou nt. I n assessi ng va I u e i n use, the est i mated f utu re cash flows a re d isc ou nted tot hei r presen t value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset In determining fair value less costs of disposal, recent market transactions are taken into account, if available. If no such transactions Can be identified, an appropriate valuation model is Used. Impairment losses arc recognised in statement of profit and loss,

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Mar 31, 2018

1. Significant Accounting Policies

a) Basis of Accounting and Preparation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 (“the 1956 Act”) (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 (“the 2013 Act”) in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the 1956 Act/ 2013 Act, as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b) Use of Estimates:

The preparation of the financial statements in conformity with Indian GAAP requires Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. Example of such estimates include provision for doubtful debts, future obligation under employee retirement benefits plans, income taxes, and the useful lives of fixed tangible assets and intangible assets.

The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/materialize.

c) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

d) Revenue Recognition:

- Revenue from brokerage activities is accounted for on the exchange settlement date of the transaction.

- Revenue from interest charged to customers on margin funding is recognized on a daily/monthly basis upto the last day of accounting period.

- Depository income is accounted on an accrual basis as and when the right to receive the income is established.

- Revenue from interest on fixed deposits is recognized on an accrual basis.

- Dividend income on units of mutual funds is recognized when the right to receive the dividend is unconditional as at the Balance Sheet date. Any gains/losses on sale / redemption of units are recognized on the date of sale /redemption.

- Commission from Mutual Fund Distribution business is recognized on cash basis.

e) Stock-in-trade:

Stock-in-trade comprising of securities held for the purposes of trading is valued at lower of cost and net realizable value. Profit or loss on sale of such securities is determined using First-in-first-out (FIFO) cost method.

f) Fixed Assets:

- Tangible Assets:

Tangible fixed assets are stated at cost.net of tax/ duty credits availed, if any, less accumulated depreciation/ impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation.

- Intangible Assets:

Intangible assets are stated at cost, net of tax / duty credits availed, if any, less accumulated amortization/ impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation.

- Capital Work in Progress:

Capital work in progress represents expenditure incurred on capital asset that are under construction or are pending for capitalization.

g) Depreciation and Amortization:

Depreciation on tangible fixed assets is provided on a Written Down Method as per the rates prescribed in Schedule II to the Companies Act, 2013. Depreciation on additions to fixed assets is provided on a pro-rata basis from the date the asset is available for use. Depreciation on sale / deduction from fixed assets is provided for up to the date of sale / deduction / scrapping, as the case may be.

Intangible assets are amortized using the straight line method over a period of three years.

h) Impairment of Assets:

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount.The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss,except in case of revalued assets.

i) Investments:

Investments are classified as long-term and current. Long term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Costs of investments include acquisition charges such as brokerage,fees and duties, j) Leases:

Operating Leases: Rentals are expensed on a straight line basis with reference to the lease terms and other considerations.

k) Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the period in which they are incurred.

I) Employees Benefits:

Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.

Post-Employment Benefits Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified contributions towards Provident Fund and Pension Scheme. The Company’s contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.

Defined Benefit Plans: Gratuity

The Company provides for Gratuity, a defined benefits retirement plan (The Gratuity Plan) covering eligible employee. The gratuity plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment’s salary and the tenure of employment with the Company.

Liabilities with regard to the Gratuity Plan determined by actuarial valuation, performed by the independent actuary, at each Balance Sheet date using the projected unit credit method. The contributions are invested in a scheme with Life Insurance Corporation of India as permitted by the law of India.The company recognized the net obligation of the Gratuity Plan in the Balance Sheet as an assets or liabilities, respectively in accordance with Accounting Standard (AS) 15,”Employee Benefits”. Actuarial gains and losses arising from the experience adjustment and changes in actuarial assumption are recognized in the statement of profit and loss in the period in which they arise.

The liability in respect of defined benefit plans and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees’ services.

Actuarial gains and losses in respect of post-employment and other long term benefits are charged to the Profit and Loss Statement.

Leave Encashment

Unutilized leave of staff lapses as at the year end and is note cashable.

m) Equity Index/Stock - Futures:

Equity Index/Stock Futures are marked-to-market on a daily basis. Debit or credit balance disclosed under Loans and advances or Current liabilities, respectively, in the “Mark-to-Market Margin - Equity Index/Stock Futures Account”, represents the net amount paid or received on the basis of movement in the prices of Index/Stock Futures till the balance sheet date. As on the Balance Sheet date, the profit/ loss on open position in Index/Stock futures are accounted for as follows:

- Credit balance in the “Mark-to-Market Margin-Equity Index/Stock Futures Account”, being anticipated profit, is ignored and no credit is taken in the profit & loss statement.

- Debit balance in the “Mark-to-Market Margin-Equity Index/Stock Futures Account”, being anticipated loss, is recognized in the profit & loss statement.

On final settlement or squaring up of contracts for equity index/stock futures, the profit or loss is calculated as difference between settlement/squaring up price and contract price. Accordingly, debit or credit balance pertaining to the settlement/squared up contract in “Mark-to-Market Margin Equity Index/Stock Futures Account” is recognized in the profit & loss statement upon expiry of the contracts.”lnitial Margin - Equity Index/Stock Futures Account”, representing initial margin paid, for entering into contracts for Equity Index/Stock Futures, which are released on final settlement/squaring-up of underlying contracts, is disclosed as under Loans and advances.

n) Taxes on Income:

Current tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws,which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. However, if there is unabsorbed depreciation and carry forward of losses, deferred tax assets are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their reliability,

o) Provisions and Contingencies:

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognized in the financial statements,

p) Earnings per Share:

Earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

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Mar 31, 2015

1. Corporate Information

Indo Thai Securities Limited (“ITSL” or “the Company”) carries on the business as stock and share brokers on the National Stock Exchange of India Limited (“NSE”) and the BSE Limited (“BSE”); depository participants and other related ancillary services. On September 14, 1995 ITSL received a certificate of registration from the Securities and Exchange Board of India (“SEBI”) under sub-section 1 of section 12 of the Securities and Exchange Board of India Act, 1992 to carry on the business as a stock broker. Accordingly, all provisions of the Securities and Exchange Board of India Act, 1992, and Rules and Regulations relating thereto are applicable to the Company. On November 2, 2011 the Equity shares of the Company were listed on the NSE and the BSE.

2 Significant Accounting Policies

a) Basis of Accounting and Preparation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 (“the 1956 Act”) (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 (“the 2013 Act”) in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the 1956 Act/ 2013 Act, as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b) Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year.

The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

c) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

d) Revenue Recognition:

-Revenue from brokerage activities is accounted for on the trade date of the transaction.

-Revenue from interest charged to customers on margin funding is recognized on a daily/monthly basis up to the last day of accounting period. Depository income is accounted on an accrual basis as and when the right to receive the income is established.

-Revenue from interest on fixed deposits is recognized on an accrual basis.

-Dividend income on Equity shares is recognized when the right to receive the dividend is unconditional as at the Balance Sheet date.

-Dividend income on units of mutual funds is recognized when the right to receive the dividend is unconditional as at the Balance Sheet date. Any gains/losses on sale / redemption of units are recognized on the date of sale / redemption.

e) Stock-in-trade :

Stock-in-trade comprising of securities held for the purposes of trading is valued at lower of cost and net realizable value. Profit or loss on sale of such securities is determined using First-in-first-out (FIFO) cost method.

f) Fixed Assets:

-Tangible Assets:

Tangible fixed assets are stated at cost, net of tax / duty credits availed, if any, less accumulated depreciation/ impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation.

-Intangible Assets:

Intangible assets are stated at cost, net of tax / duty credits availed, if any, less accumulated amortization/ impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation.

-Capital Work in Progress :

Capital Work in Progress represent expenditure incurred on capital assets that are under construction or are pending for capitalization.

g) Depreciation and Amortization:

Depreciation on tangible fixed assets is provided on a Written Down method as per the rates prescribed in Schedule II to the Companies Act, 2013. Depreciation on additions to fixed assets is provided on a pro-rata basis from the date the asset is available for use. Depreciation on sale / deduction from fixed assets is provided for up to the date of sale / deduction / scrapping, as the case may be.

Intangible assets are amortized on a straight line method over a period of three years.

h) Impairment of Assets:

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

i) Investments:

Investments are classified as long-term and current. Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Costs of investments include acquisition charges such as brokerage, fees and duties.

j) Leases

Operating Leases: Rentals are expensed on a straight line basis with reference to the lease terms and other considerations.

k) Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the period in which they are incurred.

l) Employees Benefits Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.

Post-Employment Benefits Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified contributions towards Provident Fund and Pension Scheme. The Company''s contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service. Defined Benefit Plans

The liability in respect of defined benefit plans and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees'' services.

Actuarial gains and losses in respect of post-employment and other long term benefits are charged to the Profit and Loss Statement.

Leave Encashment

Unutilized leave of staff lapses as at the year end and is not encashable.

m) Equity Index/Stock - Futures :

Equity Index/Stock Futures are marked-to-market on a daily basis. Debit or credit balance disclosed under Loans and advances or Current liabilities, respectively, in the “Mark-to-Market Margin — Equity Index/Stock Futures Account”, represents the net amount paid or received on the basis of movement in the prices of Index/Stock Futures till the balance sheet date. As on the Balance Sheet date, the profit/ loss on open position in Index/Stock futures are accounted for as follows:

-Credit balance in the “Mark-to-Market Margin-Equity Index/Stock Futures Account”, being anticipated profit, is ignored and no credit is taken in the profit & loss account.

-Debit balance in the “Mark-to-Market Margin-Equity Index/Stock Futures Account”, being anticipated loss, is recognized in the profit & loss account.

On final settlement or squaring up of contracts for equity index/stock futures, the profit or loss is calculated as difference between settlement/squaring up price and contract price. Accordingly, debit or credit balance pertaining to the settlement/squared up contract in “Mark-to-Market Margin Equity Index/Stock Futures Account” is recognized in the profit & loss account upon expiry of the contracts. “Initial Margin — Equity Index/Stock Futures Account”, representing initial margin paid, for entering into contracts for Equity Index/Stock Futures, which are released on final settlement/squaring-up of underlying contracts, is disclosed as under Loans and advances.

n) Taxes on Income:

Current tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. However, if there is unabsorbed depreciation and carry forward of losses, deferred tax assets are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their reliability.

o) Provisions and Contingencies:

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognized in the financial statements.

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Mar 31, 2014

1.1 System of Accounting

The financial statements have been prepared on a going concern and on accrual basis, under the historical cost convention and in accordance with the generally accepted accounting principles, the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government and relevant provisions of the Companies Act, 1956, to the extent applicable.

1.2 Use of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumption that affect the reported amount of assets, liabilities, revenues & expenses and disclosure of contingent assets & liabilities. The estimates & assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the Financial Statements. Actual results may defer from the estimates & assumptions used in preparing the accompanying Financial Statements. Any differences of actual results to such estimates are recognized in the period in which the results are known / materialized.

1.3 Revenue recognition

a. Income from brokerage activities is recognized as income on the trade date of the transaction.

b. Income from arbitrage operations is stated net of commission expenses, if any, incurred against it and without deduction of Securities Transaction Tax.

c. Profit / Loss on sale of investments are recognized on the trade date of the transaction and are stated net of Securities Transaction Tax incurred.

d. Other Income is accounted for on accrual basis.

1.4 Fixed Assets

Fixed assets are stated at cost less depreciation /amortization. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

1.5 Depreciation / Amortization

a. Tangible fixed assets including computer software are depreciated on Written Down Value (WDV) in accordance with the rates prescribed under Schedule XIV of the Companies Act, 1956, except for the following assets:

Sr No Assets Rate of Depreciation

1. Battery for UPS 20%

2. UPS System 20%

b. Intangible assets except computer software are amortized on a straight line basis over a period having regard to their useful economic life and estimated residual value in accordance with Accounting Standard (AS) 26 "Intangible Assets".

1.6 Stock - in - trade

Shares and Securities acquired for sale in the ordinary course of business are considered as stock in trade, and are valued at lower of cost or market value as at the year/period end.

1.7 Investments

Investments of long term nature are valued at cost. Provision is made to recognize a Marline, other than temporary, in the value of such investments.

1.8 Keyman Insurance

Keyman Insurance premium paid during the financial year is written off as expenditure in the profit and loss account.

1.9 Employees Retirement Benefits * Provident Fund

The Company contributes to a recognized provident fund which is a defined contribution scheme. The contributions are accounted for on an accrual basis and recognized in the profit and loss account.

* Gratuity

Gratuity is accounted for on the basis of actuarial valuation as per the requirement of Accounting Standard -15 Employees Benefits.

* Leave Encashment

Unutilized leave of staff lapses as at the year end and is not encashable.

1.10 Equity Index/Stock - Futures :

Equity Index/Stock Futures are marked-to-market on a daily basis. Debit or credit balance disclosed under Loans and advances or Current liabilities, respectively, in the "Mark-to-Market Margin - Equity Index/Stock Futures Account", represents the net amount paid or received on the basis of movement in the prices of Index/Stock Futures till the balance sheet date. As on the Balance Sheet date, the profit/ loss on open position in Index/Stock futures are accounted for as follows:

a. Credit balance in the "Mark-to-Market Margin-Equity Index/Stock Futures Account", being anticipated profit, is ignored and no credit is taken in the profit & loss account.

b. Debit balance in the "Mark-to-Market Margin-Equity Index/Stock Futures Account", being anticipated loss, is recognized in the profit & loss account.

On final settlement or squaring up of contracts for equity index/stock futures, the profit or loss is calculated as difference between settlement/squaring up price and contract price. Accordingly, debit or credit balance pertaining to the settlement/squared up contract in "Mark-to-Market Margin Equity Index/Stock Futures Account" is recognized in the profit & loss account upon expiry of the contracts. "Initial Margin - Equity Index/Stock Futures Account", representing initial margin paid, for entering into contracts for Equity Index/Stock Futures, which are released on final settlement/squaring-up of underlying contracts, is disclosed as under Loans and Advances.

1.11 Taxation

Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law), deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the period) and fringe benefit tax.

Deferred taxation

The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognized for the year ended March 31, 2014 using the tax rates that have been enacted or substantially enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable/virtually certain (as the case may be) to be realized.

1.12 Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired based on internal/external factors. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generated unit to which the asset belongs, is less than its carrying amount, the carrying amount is reduced to its recoverable amount.

1.13 Provisions, Contingent Liabilities & Contingent Assets

Contingent liabilities, if material, are disclosed by way of notes, contingent assets are not recognized or disclosed in the financial statements. A provision is recognized when an enterprise has a present obligation as a result of past event(s) and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation(s), in respect of which a reliable estimate can be made for the amount of obligation.

1.14 Preliminary expenses

Preliminary expenses are written off in the financial year in which it is incurred.

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Mar 31, 2013

1.1 System of Accounting

The financial statements have been prepared on a going concern and on accrual basis, under the historical cost convention and in accordance with the generally accepted accounting principles, the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government and relevant provisions of the Companies Act 1956, to the extent applicable.

1.2 Use of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumption that affect the reported amount of assets, liabilities, revenues & expenses and disclosure of contingent assets & liabilities. The estimates & assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the Financial Statements. Actual results may defer from the estimates & assumptions used in preparing the accompanying Financial Statements. Any differences of actual results to such estimates are recognized in the period in which the results are known / materialized.

1.3 Revenue recognition

a. Income from brokerage activities is recognized as income on the trade date of the transaction.

b. Income from arbitrage operations is stated net of commission expenses, if any, incurred against it and without deduction of Securities Transaction Tax.

c. Profit / Loss on sale of investments are recognized on the trade date of the transaction and are stated net of Securities Transaction Tax incurred.

d. Other Income is accounted for on accrual basis.

1.4 Fixed Assets

Fixed assets are stated at cost less depreciation /amortization. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

1.5 Depreciation / Amortization

a. Tangible fixed assets including computer software are depreciated on Written Down Value (WDV) in accordance with the rates prescribed under Schedule XIV of the Companies Act, 1956, except for the following assets:

b. Intangible assets except computer software are amortized on a straight line basis over a period having regard to their useful economic life and estimated residual value in accordance with Accounting Standard (AS) 26"Intangible Assets".

1.6 Stock - in - trade

Shares and Securities acquired for sale in the ordinary course of business are considered as stock in trade, and are valued at lower of cost or market value as at the year/period end.

1.7 Investments

Investments of long term nature are valued at cost. Provision is made to recognize a Marline, other than temporary, in the value of such investments.

1.8 Keyman Insurance

Keyman Insurance premium paid during the financial year is written off as expenditure in the profit and loss account.

1.9 Employees Retirement Benefits

- Provident Fund

The Company contributes to a recognized provident fund which is a defined contribution scheme. The contributions are accounted for on an accrual basis and recognized in the profit and loss account.

- Gratuity

Gratuity is accounted for on the basis of actuarial valuation as per the requirement of Accounting Standard -15 Employees Benefits.

- Leave Encashment

Unutilized leave of staff lapses as at the year end and is not encashable.

1.10 Equity Index/Stock - Futures :

Equity Index/Stock Futures are marked-to-market on a daily basis. Debit or credit balance disclosed under Loans and advances or Current liabilities, respectively, in the"Mark-to-Market Margin — Equity Index/Stock Futures Account", represents the net amount paid or received on the basis of movement in the prices of Index/Stock Futures till the balance sheet date. As on the Balance Sheet date, the profit/ loss on open position in Index/Stock futures are accounted for as follows:

a. Credit balance in the"Mark-to-Market Margin- Equity Index/Stock Futures Account", being anticipated profit, is ignored and no credit is taken in the profit & loss account.

b. Debit balance in the"Mark-to-Market Margin- Equity Index/Stock Futures Account", being anticipated loss, is recognized in the profit & loss account.

On final settlement or squaring up of contracts for equity index/stock futures, the profit or loss is calculated as difference between settlement/squaring up price and contract price. Accordingly, debit or credit balance pertaining to the settlement/squared up contract in "Mark-to-Market Margin Equity Index/Stock Futures Account" is recognized in the profit & loss account upon expiry of the contracts. "Initial Margin — Equity Index/Stock Futures Account", representing initial margin paid, for entering into contracts for Equity Index/Stock Futures, which are released on final settlement/squaring-up of underlying contracts, is disclosed as under Loans and advances.

1.11 Taxation

Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law), deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the period) and fringe benefit tax.

Deferred taxation

The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantially enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable/virtually certain (as the case may be) to be realized.

1.12 Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired based on internal/external factors. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generated unit to which the asset belongs, is less than its carrying amount, the carrying amount is reduced to its recoverable amount.

1.13 Provisions, Contingent Liabilities & Contingent Assets

Contingent liabilities, if material, are disclosed by way of notes, contingent assets are not recognized or disclosed in the financial statements. A provision is recognized when an enterprise has a present obligation as a result of past event(s) and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation(s), in respect of which a reliable estimate can be made for the amount of obligation.

1.14 Preliminary expenses

Preliminary expenses are written off in the financial year in which it is incurred.

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Mar 31, 2012

1. System of Accounting

The financial statements have been prepared on a going concern and on accrual basis, under the historical cost convention and in accordance with the generally accepted accounting principles, the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government and relevant provisions of the Companies Act 1956, to the extent applicable.

2. Use of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumption that affect the reported amount of assets, liabilities, revenues & expenses and disclosure of contingent assets & liabilities. The estimates & assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the Financial Statements. Actual results may defer from the estimates & assumptions used in preparing the accompanying Financial Statements. Any differences of actual results to such estimates are recognized in the period in which the results are known/materialized.

3. Revenue recognition

a. Income from brokerage activities is recognized as income on the trade date of the transaction.

b. Income from arbitrage operations is stated net of commission expenses, if any, incurred against it and without deduction of Securities Transaction Tax.

c. Profit/Loss on sale of investments are recognized on the trade date of the transaction and are stated net of Securities Transaction Tax incurred.

d. Other Income is accounted for on accrual basis.

4. Fixed Assets

Fixed assets are stated at cost less depreciation /amortization. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

5. Depreciation/Amortization

b. Intangible assets except computer software are amortized on a straight line basis over a period having regard to their useful economic life and estimated residual value in accordance with Accounting Standard (AS) 26 "Intangible Assets".

6. Stock - in - trade

Shares and Securities acquired for sale in the ordinary course of business are considered as stock in trade, and are valued at lower of cost or market value as at the year/period end.

7. Investments

Investments of long term nature are valued at cost. Provision is made to recognize a Marline, other than temporary, in the value of such investments.

8. Keyman Insurance

Keyman Insurance premium paid during the financial year is written off as expenditure in the profit and loss account.

9. Employees Retirement Benefits

Provident Fund

The Company contributes to a recognized provident fund which is a defined contribution scheme. The contributions are accounted for on an accrual basis and recognized in the profit and loss account.

Gratuity

Gratuity is accounted for on the basis of actuarial valuation as per the requirement of Accounting Standard -15 Employees Benefits.

Leave Encashment

Unutilized leave of staff lapses as at the year end and is not encashable.

10. Equity Index/Stock - Futures :

Equity Index/Stock Futures are marked-to-market on a daily basis. Debit or credit balance disclosed under Loans and advances or Current liabilities, respectively, in the "Mark-to-Market Margin - Equity Index/Stock Futures Account", represents the net amount paid or received on the basis of movement in the prices of Index/Stock Futures till the balance sheet date. As on the Balance Sheet date, the profit/loss on open position in Index/Stock futures are accounted for as follows:

a. Credit balance in the "Mark-to-Market Margin- Equity Index/Stock Futures Account", being anticipated profit, is ignored and no credit is taken in the profit & loss account.

b. Debit balance in the "Mark-to-Market Margin- Equity Index/Stock Futures Account", being anticipated loss, is recognized in the profit & loss account.

On final settlement or squaring up of contracts for equity index/stock futures, the profit or loss is calculated as difference between settlement/squaring up price and contract price. Accordingly, debit or credit balance pertaining to the settlement/squared up contract in "Mark-to-Market Margin Equity Index/Stock Futures Account" is recognized in the profit & loss account upon expiry of the contracts. "Initial Margin - Equity Index/Stock Futures Account", representing initial margin paid, for entering into contracts for Equity Index/Stock Futures, which are released on final settlement/squaring-up of underlying contracts, is disclosed as under Loans and advances.

11. Taxation

Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law), deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the period) and fringe benefit tax.

Deferred taxation

The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantially enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable/virtually certain (as the case may be) to be realized.

12. Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired based on internal/external factors. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generated unit to which the asset belongs, is less than its carrying amount, the carrying amount is reduced to its recoverable amount.

13. Provisions, Contingent Liabilities & Contingent Assets

Contingent liabilities, if material, are disclosed by way of notes, contingent assets are not recognized or disclosed in the financial statements. A provision is recognized when an enterprise has a present obligation as a result of past event(s) and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation(s), in respect of which a reliable estimate can be made for the amount of obligation.