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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of LKP Finance Ltd.

Mar 31, 2025

(k) Provisions, contingent liabilities and contingent
assets

The Company recognizes provisions when a
present obligation (legal or constructive) as a
result of a past event exists and it is probable that
an outflow of resources embodying economic
benefits will be required to settle such obligation
and the amount of such obligation can be reliably
estimated.

If the effect of time value of money is material,
provisions are discounted using a current preÂ¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognized as a finance cost.

A disclosure for a contingent liability is made when
there is a possible obligation or a present obligation
that may, but probably will not require an outflow
of resources embodying economic benefits or the
amount of such obligation cannot be measured
reliably. When there is a possible obligation or a
present obligation in respect of which likelihood
of outflow of resources embodying economic
benefits is remote, no provision or disclosure is
made.

Contingent assets are not recognised in the
financial statements, however they are disclosed
where the inflow of economic benefits is probable.
When the realisation of income is virtually certain,
then the related asset is no longer a contingent
asset and is recognised as an asset.

(l) Revenue recognition

a) As per Ind AS 109, âFinancial Instrumentsâ,
Interest income from financial assets
is recognised on an accrual basis using
effective interest rate method (EIR). The
effective interest rate method is the rate
that exactly discounts estimated future cash
receipts (including all fees, transaction costs
and other premiums or discounts paid or
received if any) through the expected life
of the financial instrument to the carrying
amount on initial recognition

The Company calculates interest income
by applying the EIR to the gross carrying
amount of financial assets other than credit
impaired assets. In case of credit-impaired
financial assets (regarded as Stage 3), the
Company recognises interest income on the

amortised cost net of impairment loss of the
financial asset at EIR. If the financial asset
is no longer credit-impaired, the Company
reverts to calculating interest income on a
gross basis.

b) Dividend income is recognised when the
Companyâs right to receive the payment
is established and it is probable that the
economic benefits associated with the
dividend will flow to the Company and the
amount of the dividend can be measured
reliably. This is generally when the
shareholders approve the dividend.

(c) Any differences between the fair values on
the date of acquisition and balance sheet
date of the financial assets classified as fair
value through the profit or loss, held by
the Company on the balance sheet date is
recognized as an unrealized gain/loss in the
standalone statement of profit and loss. In
case, there is a net gain/ (loss) in aggregate,
the same is recognized in âNet gains/ (losses)
on fair value changesâ under revenue from
operations, in the standalone statement
of profit and loss.

(d) The Company recognises income on
recoveries of financial assets written off on
realisation or when the right to receive the
same without any uncertainties of recovery
is established .

(e) Advisory fees is measured and recognised as
per the terms of the agreement.

(m) Retirement and other employee benefits

(i) The Company operates both defined benefit
and defined contribution schemes for its
employees.

For defined contribution schemes the
amount charged as expense is equal to
the contributions paid or payable when
employees have rendered services entitling
them to the contributions.

For defined benefit plans, actuarial
valuations are carried out at each balance
sheet date using the Projected Unit Credit
Method. All such plans are funded.

All expenses represented by current service
cost, past service cost, if any, and net interest
on the defined benefit liability/ (asset) are
recognized in the Statement of Profit and
Loss. Remeasurements of the net defined
benefit liability/ (asset) comprising actuarial

gains and losses (excluding interest on
the net defined benefit liability/ (asset))
are recognised in Other Comprehensive
Income (OCI). Such remeasurements are not
reclassified to the statement of profit and
loss, in the subsequent periods.

(ii) Short term employee benefits: All employee
benefits payable wholly within twelve
months of rendering the service are classified
as short term employee benefits and they
are recognized in the period in which the
employee renders the related service. The
Company recognizes the undiscounted
amount of short term employee benefits
expected to be paid in exchange for services
rendered as a liability.

(n) Accounting for taxes on income

Tax expense comprises of current and deferred
tax.

Current tax

Current tax is the amount of income taxes payable
in respect of taxable profit for a period. Current tax
is recognized at the amount expected to be paid to
or recovered from the tax authorities, using the
tax rates and tax laws that have been enacted or
substantively enacted at the balance sheet date.
Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject to
interpretation and establishes provisions where
appropriate.

Current tax is recognized in the statement of profit
and loss except to the extent that the tax relates to
items recognized directly in other comprehensive
income or directly in equity.

Deferred tax

Deferred tax assets and liabilities are recognized
for all temporary differences arising between the
tax bases of assets and liabilities and their carrying
amounts in the financial statements except when
the deferred tax arises from the initial recognition
of an asset or liability that effects neither
accounting nor taxable profit or loss at the time of
transition.

Deferred tax assets and liabilities are measured
using tax rates and tax laws that have been enacted
or substantively enacted at the balance sheet date
and are expected to apply to taxable income in the
years in which those temporary differences are
expected to be recovered or settled.

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
realized.

Current and deferred tax are recognized as income
or an expense in the statement of profit and loss,
except to the extent they relate to items that are
recognized in other comprehensive income, in
which case, the current and deferred tax income
/ expense are recognised in other comprehensive
income.

(o) Earnings per share

Basic earnings per share is computed and disclosed
using the weighted average number of equity
shares outstanding during the period. Dilutive
earnings per share is computed and disclosed
using the weighted average number of equity
and dilutive equity equivalent shares outstanding
during the period, except when the results would
be anti-dilutive.

(p) Contributed equity

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

(q) Exceptional items

On certain occasions, the size, type or evidence
of the item of income or expenditure partaining
to ordinary activities of the Company as such that
its disclosures improves the understanding of
the performance of the Company , such income
or expenses is classified as an exceptional item
and accordingly disclosed in the financials
statement.

(r) Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the Chief Operating Decision Maker, who
regularly monitors and reviews the operating
result for following operating segments of the
Company.

(s) Critical accounting judgment and estimates

The preparation of financial statements requires
management to exercise judgment in applying the
Companyâs accounting policies. It also requires
the use of estimates and assumptions that affect
the reported amounts of assets, liabilities,
income and expenses and the accompanying
disclosures including disclosures of contingent
liabilities. Actual results may differ from these
estimates. Estimates and underlying assumptions
are reviewed on an ongoing basis, with revisions

recognised in the period in which the estimates
are revised and in any future periods affected.

a Contingencies

In the normal course of business, contingent
liabilities may arise from litigation and
other claims against the Company. Potential
liabilities that have a low probability of
crystallising or are very difficult to quantify
reliably are treated as contingent liabilities.
Such liabilities are disclosed in the notes
but are not provided for in the financial
statements. There can be no assurance
regarding the final outcome of these legal
proceedings.

b Useful lives and residual values

The Company reviews the useful lives
and residual values of property, plant and
equipment at each financial year end.

c Fair value measurement of financial
instruments

âA number of Companyâs accounting
policies and disclosures require the
measurement of fair values for both
financial and non- financial assets and
liabilities. When measuring the fair value
of an asset or a liability, the Company uses
observable market data as far as possible.
Fair values are categorized into different
levels in a fair value hierarchy based on
the inputs used in the valuation techniques
as follows:

-Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.

-Level 2: inputs other than quoted prices
included in Level 1 that are observable for the
asset or liability, either directly (i.e. prices)
or indirectly (i.e. derived from prices).

-Level 3: inputs for the asset or liability that
are not based on observable market data
(unobservable inputs).

If the inputs used to measure the fair value of
an asset or a liability fall into different levels
of a fair value hierarchy, then the fair value
measurement is categorized in its entirety in
the same level of the fair value hierarchy as
the lowest level input that is significant to the
entire measurement.

The Company recognizes transfers between
levels of the fair value hierarchy at the end of
reporting year during which the change has
occurred.â

d Impairment testing

Judgment is also required in evaluating
the likelihood of collection of customer
debt after revenue has been recognised.
This evaluation requires estimates to be
made, including the level of provision to be
made for amounts with uncertain recovery
profiles. Provisions are based on historical
trends in the percentage of debts which are
not recovered or on more detailed reviews of
individually significant balances.

Determining whether the carrying amount of
these assets has any indication of impairment
also requires judgment. If an indication of
impairment is identified, further judgment
is required to assess whether the carrying
amount can be supported by the net present
value of future cash flows forecast to be
derived from the asset. This forecast involves
cash flow projections and selecting the
appropriate discount rate.

e Tax

The Companyâs tax charge is the sum of the total
current and deferred tax charges. The calculation
of the Companyâs total tax charge necessarily
involves a degree of estimation and judgment
in respect of certain items whose tax treatment
cannot be finally determined until resolution has
been reached with the relevant tax authority or, as
appropriate, through a formal legal process.

Accruals for tax contingencie s require management
to make judgments and estimates in relation to tax
related issues and exposures.

The recognition of deferred tax assets is based
upon whether it is more likely than not that
sufficient and suitable taxable profits will be
available in the future against which the reversal
of temporary differences can be deducted. Where
the temporary differences are related to losses, the
availability of the losses to offset against forecast
taxable profits is also considered. Recognition
therefore involves judgment regarding the future
financial performance of the particular legal entity
or tax Company in which the deferred tax asset has
been recognized.

f Defined benefit obligation

The costs of providing pensions and other postÂ¬
employment benefits are charged to the Statement

of Profit and Loss in accordance with Ind AS 19
âEmployee benefitsâ over the period during which
benefit is derived from the employeesâ services.
The costs are assessed on the basis of assumptions
selected by the management. These assumptions
include salary escalation rate, discount rates,
expected rate of return on assets and mortality
rates. The same is disclosed in Note 34, âEmployee
benefits planâ.

g Leases

The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of Ind AS
116. Identification of a lease requires significant
judgement. The Company uses significant
judgement in assessing the lease term (including
anticipated renewals) and the applicable discount
rate. The Company revises the lease term if there
is a change in the non-cancellable period of a
lease. The discount rate is generally based on the
incremental borrowing rate specific to the lease
being evaluated or for a portfolio of leases with
similar characteristics.

â¢ Determining whether an arrangement
contains a lease

âIn determining whether an arrangement is
or contains a lease is based on the substance
of the arrangement at the inception of the
lease. The arrangement is or contains a
lease date if fulfilment of the arrangement
is dependent on the use of a specific asset
or assets and the arrangement conveys a
right to use the asset, even if that right is not
explicitly specified in the arrangement.

h Recent pronouncements

âMinistry of Corporate Affairs (âMCAâ) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year
ended 31 March 2025, MCA has notified Ind AS -
117 Insurance Contracts and amendments to Ind
AS 116 - Leases, relating to sale and leaseback
transactions, applicable to the Company w.e.f. 1
April 2024. The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any significant
impact in its financial statements.

Note No.-

1 a) Overdraft from Yes Bank Limited of Rs. Nil lakhs (2024: Rs. 221.79) with sanction limit of Rs. 2,000 lakhs (2024: 2,000

lakhs) are secured against 110% pledge of fixed deposits with banks. The loan is repayable on demand. It carries
interest at weighted average underlying fixed deposit 50 bps and charge is yet to be registered with the Registrar of
Companies.

(b) Overdraft from Federal Bank Limited of Rs. Nil (2024: Rs. Nil) with sanction limit of Rs. 500 lakhs are secured against
110% pledge of fixed deposits with banks. The loan is repayable on demand. It carries interest at weighted average
underlying fixed deposit 50 bps. The loan has been repaid during the year.â

c) Cash Credit/ Overdraft from Bank of India of Rs. Nil lakhs (2024: Rs. 63.83) with sanction limit of Rs. 0.85 lakhs (2024
: 85.00 lakhs) are secured with 15% margin on fixed deposit with the bank. The loan carries interest at weighted
average underlying fixed deposit 100 bps and charge is yet to be registered with the Registrar of Companies.

d) Working Capital facility from Bank of India Rs.Nil lakhs (2024 : Rs. 1,608.79 lakhs) with sanction limit of Rs. Nil lakhs
(2024 : 10,000.00 lakhs) are secured against pledge of approved debt securities rated âAâ with 25% margin and debt
securities rated âAAâ and above, with 15% margin ,with the bank and personal guarantee of the Promoter. The loan is
repayable on demand and carries interest at one year MCLR BSS CRP. The loan has been repaid during the year.

e) Working Capital facility from Federal Bank Limited of Rs.Nil lakhs (2024: Rs. Nil lakhs) with sanction limit of Rs.
7,500.00 lakhs (Rs. 5,000 lakhs for intraday and Rs. 2,500 lakhs for overnight) are secured against pledge of Government
Securities in CGSL account with Federal Bank Limited. The loan is repayable on demand and carries interest at one
year MCLR plus 50 bps. The loan has been repaid during the year

2 Borrowings of Rs.3,596.65 lakhs (2024: 3,596.65 lakhs) is considered interest free and is repayable on demand in the

absence of term sheet and confirmation (refer note 29b).

3 The Company has not been declared as a wilful defaulter by any lender.

4 The Company has used the borrowings from banks for the purpose for which they were taken.

b) Terms/rights attached to equity shares

The Company has issued only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares
is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The final dividend proposed
by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

c) Change in Management control

Pursuant to the Share Purchase Agreement dated 28 August, 2024, entered between the Promoters, the Company and the
Acquirers i.e. Hindon Mercantile Limited (âHMLâ) and Mr. Kapil Garg (âKGâ), the Promoters agreed to sell 56,96,312 equity
shares, representing 45.32% of the issued and paid-up equity share capital of the Company, to the Acquirers.

The transaction, including the change in control and management, received the requisite approval from the Reserve Bank
of India (RBI) on 13 January, 2025, in terms of the Master Direction - RBI (Non-Banking Financial Company - Scale Based
Regulation) Directions, 2023.

Post approval from the RBI, the Acquirers made a Public Announcement on 24 January, 2025, for an Open Offer to acquire
up to 32,67,845 equity shares (representing 26.00% of the Voting Share Capital of the Company) from public shareholders,
in accordance with Regulations 3(1) and 4 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
and subsequent amendments.

As of 31 March, 2025, the Acquirers have collectively acquired 64,43,295 equity shares, constituting 51.26% of the Companyâs
issued and paid-up equity share capital, as detailed below:

â¢ 44,29,502 equity shares (35.24%) were transferred from the Promoters to HML;

â¢ 16,725 equity shares (0.14%) were transferred from the Promoters to Mr. Kapil Garg;

â¢ 19,97,068 equity shares were acquired by HML through the Open Offer;

Out of the 56,96,312 equity shares agreed to be sold under the Share Purchase Agreement, 12,50,085 equity shares are yet
to be transferred to HML.

(d) The Company does not have any unrecorded transactions that have been surrendered or disclosed as income during the
year in the tax assessment under Income Tax Act, 1961.

28 Leases

For short-term leases (lease term of twelve months or less) and leases of low-value assets, the Company has opted to
recognise a lease expense on a straight-line basis as permitted by In AS 116. This expense is presented within âother
expensesâ forming part of the Financial Statements. Lease rentals of Rs.6.98 lakhs (2024 : Rs.9.84 Lakhs) pertaining to short
term leases and low value asset has been charged to statement of profit and loss.

Right-of-use assets- Disclosures as per Ind AS 116 âLeasesâ

a) Right-of-use assets (ROU) comprises leased assets of office/branch premises that do not meet the definition of
investment property.

29 Contingent Liabilities , Litigations and Commitments

a) Against a penalty order Rs 180 lakhs (for 2024: Rs 180 lakhs) received from the Enforcement Directorate pertaining
to the erstwhile money changing division of the Company, the Company has preferred an appeal in the Honâble
Madras High Court. The Company has provided a bank guarantee in the form of fixed deposits with bank to cover the
demand.

b) State Bank of India obtained an Order from Debt Recovery Tribunal (DRT), Bangalore against Kingfisher Airlines
Limited, United Breweries (Holdings) Limited and Others for recovery of dues from them. In the earlier years, the
Company received a garnishee order from the Recovery Officer, DRT, Bangalore claiming Rs. 2,500 lakhs (plus
interest) as the financial statements of Kingfisher Finvest India Limited (lender) reflected the amount due from the
Company. The Company has contested the claim and deposited Rs.1,126.22 lakhs and investment in mutual fund of
Rs.595.12 lakhs ( 2024: 554.41 lakhs) was attached by the recovery officer. The matter is presently pending before the
Debt Recovery Appellate Tribunal, Chennai.

c) Corporate Guarantee given for securing non rated, unlisted, secured, redeemable, taxable, transferable, nonÂ¬
convertible debentures (NCD) issued by LKP Securities Limited not exceeding Rs. 3,000 lakhs (2024 : 3,000). NCD
outstanding as at 31 March 2025 is Rs. 1,355 lakhs (2024 : Rs.815 lakhs).

d) Claims against the Company, not acknowledged as debts in respect of disputed income tax matters is Rs. 29.65 lakhs
(2024 : Rs. Nil lakhs).

Other Litigations

e) A winding up petition filed by the Company against a borrower has been admitted by the Honâble High Court of
Mumbai. The recovery if any will be accounted for when the money is received from official Liquidator.

f) The Company has filed an arbitration case for Rs. 26.17 lakhs (2024 : Rs. 26.18 lakhs) against borrowers for which it
has received a favourable award from the arbitrators. The opposing parties have filed an appeal in the Honâble High
Court of Mumbai, which is pending.

g) The Company has filed various cases for recovery of dues and suits are pending in various courts/tribunals. The
Company has engaged advocates to protect the interests of the Company.

Capital Commitments- Rs. Nil (2024 : Rs. Nil lakhs).

32 Micro, small and medium enterprises

(a) The Company has Rs. 3.20 lakhs (31 March 2024 : Rs. 3.13 lakhs) outstanding dues to party related to Micro, Small
and Medium enterprises on the basis of information provided by the parties and available on record. Further, there
is no interest paid / payable to micro and small enterprises during the year.

Trade payables and other payables include amount payable to Micro, Small and Medium Enterprises. Under the
Micro, Small and Medium Enterprises Development Act, 2006, (MSMEDA) which came into force from 02 October,
2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of
the information and records available with the management, the following disclosures are made for the amounts due
to the Micro, Small and Medium enterprises, who have registered with the competent authorities.

The Company has compiled the relevant information from its suppliers about their coverage under the Micro, Small and

Medium Enterprises Development Act, 2006 (MSMED Act

(b) There are no trade payables as at 31 March 2025 and 31 March 2024.

3 Financial Instruments

i) The Companyâs principal financial assets include investments, loans, other receivables, cash and cash equivalents and
other bank balances that derive directly from its operations. The Companyâs principal financial liabilities, comprise
loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the
Companyâs operation

a) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk and other
price risk such as equity price risk. Financial instruments affected by market risk include loans and borrowings,
deposits, other financial instruments.

1 Interest rate risk:

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk
is the risk of changes in fair value of fixed interest bearing investments because of fluctuations in the interest rates.
Cash flow interest rate risk is the risk that future cash flows of floating interest bearing investments will vary because
of fluctuations in interest rates.

The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs short-term
loan from banks.

2) Equity Price Risk :

The Companyâs quoted equity investments carry a risk of change in prices. To manage its price risk arising from
investments in equity securities, the Company periodically monitors the sectors it has invested in, performance of the
investee companies, measures mark-to-market gains/losses. The fair value of some of the Companyâs investments exposes
the Company to equity price risk.

3) Foreign currency risk:

The Company does not have any foreign currency risk. Hence no sensitivity analysis is required

4) Credit Risk:

Credit risk is the risk that the Company will incur a loss because its Loans and receivables fail to discharge their contractual
obligations. The Company has a framework for monitoring credit quality of its Loans and receivables based on days past
due monitoring at period end. Repayment by individual Loans and receivables are tracked regularly and required steps for
recovery are taken through follow ups and legal recourse. Credit risk arises from loans and advances, receivables, cash and
cash equivalents and deposits with banks.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Companyâs Loans and advances, receivables, cash and cash
equivalents, deposits with banks and investments .

The Company measures the expected credit loss of Loans and receivables based on historical trend, industry practices and
the business environment in which the entity operates. Expected Credit Loss is based on actual credit loss experienced and
past trends based on the historical data.

(i) Credit risk management

Company considers probability of default upon initial recognition of asset and whether there has been any significant
increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant
increase in credit risk Company compares the risk of default occurring on the asset as at the reporting date with the
risk of default as at the date of initial recognition. It considers available reasonable and supportive forward-looking
information.

Definition of Default

A default on a financial asset is when the counterparty fails to make contractual payments within 90 days of when
they fall due. This definition of default is determined by considering the business environment in which NBFC
operates and other macro-economic factors.

For Trade receivables, definition of default has been considered at 360 days past due after looking at the historical
trend of receiving the payments.

Provision for expected credit losses

Company provides for expected credit loss based on following:

The Company classifies its financial assets in three stages having the following characteristics :

Stage 1 :- Unimpaired and without significant increase in credit risk since initial recognition on which a twelve
months allowance for ECL is recognised ;

Stage 2 :- a significant increase in credit risk since initial recognition on which a lifetime ECL is recognised ; and

Stage 3 :-Objective evidence of impairment, and are therefore considered to be in default or otherwise credit impaired
on which lifetime ECL is recognised.

Unless identified at an earlier stage, all financial assets are deemed to have suffered a significant increase in credit
risk when they are thirty days past due (DPD) on the reporting date and are accordingly transferred from stage 1 to
stage 2. For Stage 1 an ECL allowance is calculated on a twelve months point in time probability weighted probability
of default. For stage 2 and 3 assets a life time ECL is calculated on a lifetime probability of default.

Fair Value Hierarchy :

a) Investments included in Level 1 of fair value hierarchy are based on prices quoted in stock exchange and/ or NAV
declared by the funds.

b) Investments included in Level 2 of fair value hierarchy have been valued based on inputs from banks and other
recognised institutions such as FIMMDA.

c) Investments included in Level 3 of fair value hierarchy have been valued using acceptable valuation techniques such
as Net Asset Value and/ or Discounted Cash Flow Method.

Note : All financial instruments for which fair value is recognised or disclosed are categorised within the Fair Value
Hierarchy described as above, based on the lowest level input that is significant to the fair value measurement as a
whole.

Foreign currency risk:

The Company does not have any foreign currency risk. Hence no sensitivity analysis is required.

34 Employee benefit plans

A Gratuity and other post employment benefit plans

The Company has a gratuity plan for its employeeâs which is governed by the Payment of Gratuity Act, 1972. The
gratuity benefit payable to the employees of the Company is greater of the provisions of the Payment of Gratuity
Act, 1972 and the Companyâs gratuity scheme. Employees who are in continuous service for a period of five years are
eligible for gratuity. The level of benefits provided depends on the employeeâs length of service, managerial grade
and salary at retirement age. The gratuity plan is a funded plan and the Company makes contributions to approved
gratuity fund .

The disclosures of employee benefits as defined in the Ind AS 19 ââEmployee Benefitsâ are given below:
a Details of post retirement gratuity plan are as follows:

Notes:

(a) The current service cost recognized as an expense is included in the Note 24 âEmployee benefits expenseâ as gratuity.
The remeasurement of the net defined benefit liability is included in other comprehensive income.

(b) The estimate of future salary increases considered in the actuarial valuation takes into account the rate of inflation,
seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(c) Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary
increase and mortality. The sensitivity analysis above have been determined based on reasonably possible changes of
the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

B Provident fund

A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions and
where there is no legal or constructive obligation to pay further contributions. During the year, the Company recognised
expense of Rs. 2.68 Lakhs ( 2024: 2.78 lakhs ) towards contribution made to provident fund under defined contribution
plan.

35 Disclosure of transactions with related parties as require by Ind AS 24
(i) List of related parties
Holding Company

Hindon Mercantile Limited (w.e.f. 28 March 2025)

Subsidiary Company

Bond Street Capital Private Limited (ceased with effect from 26 March 2025)

Others fellow subsidiary/ associates/ entities controlled/ significant influenced by KMP/ relative of KMP/ Entity
controlled by *

Mufin Green Finance Limited

Mufin Technologies Private Limited (Wholly owned subsidiary)

Mufinpay Payment Solution Private Limited
Hedge Money Private Limited
Bimapay Finsure Private Limited
2nd Layer Subsidiaries*

Fintelligence Data Science Private Limited (Subsidiary of Mufin Technologies Private Limited)

Mufin Green infra Limited (Subsidiary of Mufin Green Finance Limited)

Mufin Green Leasing Private Limited (Subsidiary of Mufin Green Finance Limited)

*with effect from 28 March 2025

Other related parties with whom transactions have taken place during the year or balance outstanding ay year end.

LKP Securities Limited
Bhavana Holding Private Limited
Sea Glimpse Investments Private Limited
M/s. L.K Panday

Mapple Leaf Trading & Services Limited

Keynote Fincorp Limited

MKM Shares & Stock Brokers Limited

42 Struck of companies

There are neither transactions during the year nor balance outstanding as at 31 March 2025 with struck off companies.

43 The Company has not traded or invested in crypto currency or Virtual currency during the year.

44 No proceedings are initiated or pending against the Company for holding benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988).

45 During the year, the Company has not advanced or loaned or invested funds (either borrowed funds or share premium

or any other sources or kind of funds) to any other person or entity including foreign entities (intermediaries) with the

understanding (whether recorded in writing or otherwise) that the intermediary shall (i) directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of Company (ultimate beneficiaries) or (ii)
provide any guarantee, security or the like to or behalf of the ultimate beneficiaries.

46 During the year, the Company has not received any fund from any person(s) or entity(ies) including foreign entities

(funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall (i) directly

or indirectly lend or invest in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or (ii)
provide any guarantee, security or the like to or on behalf of the funding party (ultimate beneficiaries) or (iii) provide any
guarantee, security or the like to or on behalf of the ultimate beneficiaries.

48 Exceptional Items

i) Pursuant to the approval of the Shareholders through postal ballot on 19 October 2024, the Company has divested its
investment in its wholly owned subsidiary viz. Bond Street Capital Private Limited (BSCPL) comprising of 995,000
equity shares, to LKP Securities Limited, Sea Glimpse Private Limited and LK Panday (partnership firm), Promoter
Group Entities of the Company, for an aggregate consideration of Rs. 4,012.43 lakhs. Accordingly, the Company has
ceased to be a holding company of BSCPL w.e.f. 26 March 2025. The gain of Rs. 926.44 lakhs on sale of such subsidiary
has been disclosed as an exceptional item.

* All loans and investments considered

(E) There were no unhedged foreign currency transactions for the year ended 31 March 2025 and 31 March 2024.

(F) For Related party disclosures refer note 35

(G) There are no complaints received by the Company from customers and from the offices of ombudsman.

51 Analysis of change in the gross carrying amount and corresponding ECL allowance in relation to Loans

The Table below shows the credit quality and the maximum exposure to credit risk based on the Companyâs year end stage
classification. The amounts presented are gross of impairment allowances. Policies on ECL allowances are set out in Note 2 .

Reconciliation of changes in gross carrying amount and corresponding ECL allowances for loans and advances to corporate
and retail customers:

The following disclosures provides stage wise reconciliation of the Companyâs gross carrying amount and ECL allowances for
loans and advances to corporate and retail customers. The transfer of financial assets represents the impact of stage transfers
upon the gross carrying amount and associated allowance for ECL. The net remeasurement of ECL arising from stage transfers
represents the increase or decrease due to these transfers.

The new assets originated/ repayments received (net) represents the gross carrying amount and associated allowance ECL
impact from transactions within the Companyâs lending portfolio.

55 Events after reporting date

There have been no events after the reporting date that require adjustment/ disclosures in these financials statements.

56 Previous yearâs figures have been regrouped / rearranged wherever necessary to correspond with the current yearâs
regrouping / disclosures. Figures in brackets pertain to previous year.

In terms of our Report of even date attached

For and on behalf of the Board
LKP Finance Limited

For MGB & Co. LLP

Chartered Accountants Umesh Aggarwal Kapil Garg

Firm Registration Number: 101169W/W-100035 Whole Time director Director

DIN : 03109928 DIN : 01716987

Hitendra Bhandari

Partner Ruby Chauhan Mustak Ali

Membership Number: 107832 Company Secretary & Compliance officer Chief Financial Officer

A 69210

Place : Mumbai
Date : 22 May 2025

Mar 31, 2024

1 Â Â Â a)Â Â Â Â Cash Credit/ Overdraft from Bank of India of Rs. 63.83 lakhs (2023: Rs. Nil) with sanction limit of Rs. 85.00 lakh are secured with 15% margin on

fixed deposit with the bank. The loan carries interest at weighted average underlying fixed deposit (FD) + 100 bps and charge is yet to be registered with the Registrar of Companies.

b) Â Â Â Working Capital facility from Bank of India Rs.1,608.79 lakhs (2023 : Rs. 3,754.05 lakhs) with sanction limit of Rs. 10,000.00 lakhs are securedÂ against pledge of approved debt securities rated âAâ with 25% margin and debt securities rated âAAâ and above, with 15% margin ,with the bankÂ and personal guarantee of the Promoter. The loan is repayable on demand and carries interest of 10.85% p.a. (2023 : 9.75Â %Â p.a.) viz. one yearÂ MCLR+ BSS+CRP

c) Â Â Â Working Capital facility from Federal Bank Limited of Rs. Nil (2023: Rs. 199.98 lakhs) with Sanction limit of Rs. 7,500.00 lakhs (Rs. 5,000 forÂ intraday and Rs. 2,500 for overnight) are secured against pledge of Government Securities in CGSL account with Federal Bank Limited. The loanÂ is repayable on demand and carries interest of 9.80% p.a (2023 : 9.95 % p.a.) viz. one year MCLR plus 50 bps.

d) Â Â Â Overdraft from Yes Bank Limited of Rs. 221.79 lakhs (2023: Rs. Nil) with sanction limit of Rs. 2,000 lakhs (2023: 630 lakhs) are secured againstÂ 110% pledge of fixed deposits with banks. The loan is repayable on demand. It carries interest at weighted average underlying fixed deposit + 50Â bps and charge is yet to be registered with the Registrar of Companies.

(e) Overdraft from Federal Bank Limited of Rs. Nil (2023: Rs. Nil) with sanction limit of Rs. 500 lakhs are secured against 110% pledge of fixed deposits with banks. The loan is repayable on demand. It carries interest at weighted average underlying fixed deposit + 50 bps and charge is yetÂ to be registered with the Registrar of Companies.

2 Â Â Â Working capital outstanding loan of Rs. Nil (2023: Rs. 375.10 lakhs) with sanction limit of Rs. Nil ( 2023 : Rs. 1,500.00 lakhs borrowed from TataÂ Capital Financial Services Limited are secured against securities amounting to Rs. Nil ( 2023 : Rs. 761.90 lakhs ) . Loan is repayable on demandÂ and carries interest of Nil (2023 :10.05) % p.a. floating. The loan has been repaid during the year. The charge is neither created nor satisfied withÂ Registrar of Companies.

3 Â Â Â Revolving Demand loan facility from Barclay Investment and Loan (India) Private Limited outstanding loan of Rs. Nil (2023: Rs. 800.00 lakhs ) with

sanction limit of Rs. Nil ( 2023 : Rs. 2,500.00 lakhs are secured against HDFC Liquid Mutual Fund. Loan is repayable on demand and carries interest of Nil (2023 : 9.00)% p.a. floating. The loan has been repaid during the year . The charge is yet to be satisfied withÂ Â Â Â Registrar of Companies.

4 Â Â Â Borrowings of Rs.3,596.65 lakhs (2023: Rs. 3,596.65 lakhs) is considered interest free and repayable on demand in theÂ Â Â Â absence of term sheet and

confirmation (refer note 30b).

5 Â Â Â The Company has not been declared as a wilful defaulter by any lender.

6 Â Â Â The Company has used the borrowings from banks and financial institution for the purpose for which it was taken.

b) Â Â Â Terms/rights attached to equity shares

a) Â Â Â The Company has issued only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to oneÂ vote per share. The Company declares and pays dividend in Indian rupees. The final dividend proposed by the Board of Directors is subject to theÂ approval of the shareholders in the ensuing Annual General Meeting.

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

c) Â Â Â Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five yearsÂ immediately preceding the reporting date: NIL

c) Â Â Â Details of shareholders holding more than 5% shares in the Company:

The applicable tax rate is the standard effective corporate income tax rate in India. The tax rate is 25.168 % for the year ended 31 March 2024 and 25.168Â %Â for the year ended 31 March 2023 .

Deferred tax assets and liabilities are offset where the Company has a legally enforceable right to do so. For analysis of the deferred tax balances (after offset) for financial reporting purposes refer note 16.

(d) The Company does not have any unrecorded transactions that have been surrendered or disclosed as income during the year in the tax assessment under Income Tax Act, 1961.

29 Leases

For short-term leases (lease term of twelve months or less) and leases of low-value assets , the Company has opted to recognise a lease expense on a straight-line basis as permitted by In AS 116. This expense is presented within âother expensesâ forming part of the Financial Statements. Lease rentalsÂ of Rs.9.84 lakhs (2023 : Rs.20.07 Lakhs) pertaining to short term leases and low value asset has been charged to statement of profit and loss.

30 Â Â Â Contingent Liabilities and Litigations

a) Â Â Â Against a penalty order Rs 180 Lakhs (for 2023: Rs 180 Lakhs) received from the Enforcement Directorate in respect of a matter which aroseÂ in 1996 pertaining to the erstwhile money changing division of the Company , the Company has preferred an appeal in the Honourable MadrasÂ High Court. The Company has provided a bank guarantee in the form of fixed deposit with bank to cover the demand. The matter is pending. TheÂ Management is of the opinion that a cash outflow is unlikely and therefore no provision is considered necessary.

b) Â Â Â State Bank of India obtained an Order from Debt Recovery Tribunal (DRT), Bangalore against Kingfisher Airlines Limited, United BreweriesÂ (Holdings) Limited and Others for recovery of dues from them. In the earlier years , the Company received a garnishee order from the RecoveryÂ Officer, DRT, Bangalore claiming Rs. 2,500 Lakhs (plus interest) as the financial statements of Kingfisher Finvest India Limited (lender) reflectedÂ the amount due from the Company. The Company has contested the claim and deposited Rs. 1,126.22 Lakhs and investment in mutual fund of Rs.Â 554.41 lakhs was attached by the recovery officer. The matter is presently pending before the Debt Recovery Appellate Tribunal, Chennai.

c) Â Â Â The Company has given Corporate Guarantee for securing non rated, unlisted, secured, redeemable, taxable, transferable, non-convertibleÂ debentures (NCD) issued by LKP Securities Limited not exceeding Rs. 3,000 lakhs (2023 : Nil). NCD outstanding as at 31 March 2024 is Rs. 815Â lakhs (2023 : Rs. Nil).

d) Â Â Â Claims against the Company, not acknowledged as debts in respect of income tax matters amounted to Rs. Nil (2023 : Rs. 3.11 lakhs)

Other Litigations

e) Â Â Â A winding up petition filed by the Company against a borrower has been admitted by the Honourable High court of Mumbai. The recovery if anyÂ will be accounted for when the money is received from official Liquidator.

f) Â Â Â The Company has filed an arbitration case Rs. 26.18 Lakhs (2023 : Rs. 26.18 Lakhs) against borrowers for which it has received a favourableÂ award from the arbitrators. The opposing parties have filed an appeal in the Honourable High court of Mumbai for which the matter is pending.

g) Â Â Â The Department of Company Affairs had filed a complaint in the Small Causes Court, Mumbai against, the Company, its Directors and the KMPsÂ for non filing of information in Form INV5 in respect of Unclaimed Dividend as on 31 March 2013 . Though the Company has already filed theÂ Form , The Company and Others have made an application for compounding with the Regional Director. During the year ended 31 March 2023Â the matter was compounded on payment of compounding fees and accordingly the case is as disposed off and proceeding is closed by the saidÂ court.

h) Â Â Â The Company has filed various cases for recovery of dues and suits are pending in various courts/tribunals. The Company has engaged advocatesÂ to protect the interest of the Company and expects favourable decision.

i) Â Â Â The Company has filed claim with the Official Liquidator of United Breweries (Holdings) Limited (under liquidation)for an amount recoverableÂ of Rs 3,181.20 lakhs. The Companyâs claim for enforcement of lien on 6,71,560 equity shares of United Spirits Limited pertaining to the saidÂ recovery is pending before DRT Bangalore.

(i)Â Capital Commitments

Uncalled capital contribution on investments is Rs. Nil (2023 : Rs. 168.75 lakhs).

31 Â Â Â Segment Informations

Disclosure under Indian Accounting Standard 108 - âOperating Segmentsâ is not given as, in the opinion of the management, the entire business activity

falls under one segment viz. Investment and financing activities . The Company conducts its business only in one Geographical Segment viz. India.

32 Payment to Auditors	Â	(Rs. in lakhs)
Â	31 March 2024	31 March 2023
Audit fees	10.00	10.00
Tax audit fees	1.00	1.00
Other matters & taxation	0.84	0.86
Total	11.84	11.86

33 Micro, small and medium enterprises

(a) The Company has Rs. 3.13 lakhs (31 March 2023 : Rs. 6.12 lakhs) outstanding dues to party related to Micro, Small and Medium enterprises on the basis of information provided by the parties and available on record. Further, there is no interest paid / payable to micro and small enterprisesÂ during the year.

Trade payables and other payables include amount payable to Micro, Small and Medium Enterprises. Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMEDA) which came into force from 02 October, 2006, certain disclosures are required to be madeÂ relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, the followingÂ disclosures are made for the amounts due to the Micro, Small and Medium enterprises, who have registered with the competent authorities.

34 Financial Instruments

i)Â The Companyâs principal financial assets include investments, loans, trade receivables, other receivables, cash and cash equivalents and other bank balances that derive directly from its operations. The Companyâs principal financial liabilities, comprise loans and borrowings, trade and other payables.Â The main purpose of these financial liabilities is to finance the Companyâs operations.

a) Â Â Â Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk and other price risk such as equity price risk. Financial instruments affected byÂ market risk include loans and borrowings, deposits, other financial instruments.

b) Â Â Â Interest rate risk:

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that future cash flows of floatingÂ interest bearing investments will vary because of fluctuations in interest rates.

The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs short-term loan from banks.

2) Â Â Â Equity Price Risk :

The Companyâs quoted equity investments carry a risk of change in prices. To manage its price risk arising from investments in equity securities, the Company periodically monitors the sectors it has invested in, performance of the investee companies, measures mark-to-market gains/losses. The fairÂ value of some of the Companyâs investments exposes the Company to equity price risk.

3) Â Â Â Foreign currency risk:

The Company does not have any foreign currency risk. Hence no sensitivity analysis is required

4) Â Â Â Credit Risk:

Credit risk is the risk that the Company will incur a loss because its Loans and receivable fail to discharge their contractual obligations. The Company has a framework for monitoring credit quality of its Loans and receivables based on days past due monitoring at period end. Repayment by individualÂ Loans and receivables are tracked regularly and required steps for recovery are taken through follow ups and legal recourse. Credit risk arises fromÂ loans and advances, receivables, cash and cash equivalents and deposits with banks .

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs Loans and advances, receivables, cash and cash equivalents, deposits with banks and investments .

The Company measures the expected credit loss of Loans and receivables based on historical trend, industry practices and the business environment in which the entity operates. Expected Credit Loss is based on actual credit loss experienced and past trends based on the historical data.

(i) Credit risk management

Company considers probability of default upon initial recognition of asset and whether there has been any significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk Company compares the risk of defaultÂ occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportiveÂ forward-looking information.

Definition of Default

A default on a financial asset is when the counterparty fails to make contractual payments within 90 days of when they fall due. This definition of default is determined by considering the business environment in which NBFC operates and other macro-economic factors.

For Trade receivables, definition of default has been considered at 360 days past due after looking at the historical trend of receiving the payments. Provision for expected credit losses

Company provides for expected credit loss based on following:

The Company classifies its financial assets in three stages having the following characteristics :

Stage 1 :- Unimpaired and without significant increase in credit risk since initial recognition on which a twelve months allowance for ECL is recognised; Stage 2 :- a significant increase in credit risk since initial recognition on which a lifetime ECL is recognised; and

Stage 3 :-Objective evidence of impairment, and are therefore considered to be in default or otherwise credit impaired on which lifetime ECL is recognised.

Unless identified at an earlier stage, all financial assets are deemed to have suffered a significant increase in credit risk when they are thirty days past due ( DPD ) on the reporting date and are accordingly transferred from stage 1 to stage 2 .For Stage 1 an ECL allowance is calculated on a twelve monthsÂ point in time probability weighted probability of default . For stage 2 and 3 assets a life time ECL is calculated on a lifetime probability of default

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks with high credit ratings assigned by credit rating agencies. Investments primarily include investment in Securities.

b) Liquidity Risk:

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The Companyâs principal source of liquidity are cash and cash equivalents and the cash flow i.e. generated from operations. The Company consistently generated strong cash flows from operations which togetherÂ with the available cash and cash equivalents and current investment provides adequate liquidity in short terms as well in the long term.

ii) Capital Management

For the purpose of Companyâs capital management, capital includes issued capital and other equity reserves. The primary objective of the Companyâs Capital Management is to maximize shareholder value. The Company manages its capital structure and makes adjustments in the light of changes inÂ economic environment and the requirements of the financial covenants.

The management assessed that cash and cash equivalents and bank balances, trade receivables, other financial assets, certain investments, trade payables and other current liabilities approximate their fair value largely due to the short-term maturities of these instruments. Difference between carryingÂ amount and fair value of bank deposits, other financial assets, other financial liabilities and borrowings subsequently measured at amortised cost is notÂ significant in each of the year presented.

iv Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Companyâs assets and liabilities.

Disclosures of fair value measurement hierarchy for assets and liabilities as at 31 March 2024

Fair Value Hierarchy :

a) Â Â Â Investments included in Level 1 of fair value hierarchy are based on prices quoted in stock exchange and/ or NAV declared by the funds.

b) Â Â Â Investments included in Level 2 of fair value hierarchy have been valued based on inputs from banks and other recognised institutions such asÂ FIMMDA/ FEDAI

c) Â Â Â Investments included in Level 3 of fair value hierarchy have been valued using acceptable valuation techniques such as Net Asset Value and/ orÂ Discounted Cash Flow Method.

Note : All financial instruments for which fair value is recognised or disclosed are categorised within the Fair Value Hierarchy described as above, based on the lowest level input that is significant to the fair value measurement as a whole.

Foreign currency risk:

The Company does not have any foreign currency risk. Hence No sensitivity analysis is required.

35 Employee benefit plans

A Gratuity and other post employment benefit plans

The Company has a gratuity plan for its employeeâs which is governed by the Payment of Gratuity Act, 1972. The gratuity benefit payable to the employees of the Company is greater of the provisions of the Payment of Gratuity Act, 1972 and the Companyâs gratuity scheme. Employees who areÂ in continuous service for a period of five years are eligible for gratuity. The level of benefits provided depends on the employeeâs length of service,Â managerial grade and salary at retirement age. The gratuity plan is a funded plan and the Company makes contributions to approved gratuity fund .

(a) Â Â Â The current service cost recognized as an expense is included in the Note 25 âEmployee benefits expenseâ as gratuity. The remeasurement of the netÂ defined benefit liability is included in other comprehensive income.

(b) Â Â Â The estimate of future salary increases considered in the actuarial valuation takes into account the rate of inflation, seniority, promotion and otherÂ relevant factors, such as supply and demand in the employment market.

(c) Â Â Â Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivityÂ analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period,Â while holding all other assumptions constant.

B Provident fund

A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions and where there is no legal or constructive obligation to pay further contributions. During the year, the Company recognised expense of Rs. 2.78 Lakhs ( 2023: 2.84 lakhs ) towardsÂ contribution made to provident fund under defined contribution plan

*Payment of the proposed dividend is subject to its approval by the shareholder, in the ongoing Annual General Meeting of the Company . The Company has not proposed dividend during the year.

There are no unclaimed dividend for a period of more than seven years. Further, there are no amounts due and outstanding to be credited to Investorâs Education and Protection Fund as on 31 March 2024.

43 Â Â Â Struck of companies

There are no transactions during the year with struck off companies as at 31 March 2024.

44 Â Â Â The Company has not traded or invested in crypto currency or Virtual currency during the year.

45 Â Â Â No proceedings are initiated or pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45Â of 1988).

46 Â Â Â During the year the Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind ofÂ funds) to any other person or entity including foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise) that theÂ intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of CompanyÂ (ultimate beneficiaries) or (ii) provide any guarantee, security or the like to or behalf of the ultimate beneficiaries.

47 Â Â Â During the year the Company has not received any fund from any person(s) or entity(ies) including foreign entities (funding party) with the understandingÂ (whether recorded in writing or otherwise) that the Company shall (i) directly or indirectly lend or invest in any manner whatsoever by or on behalf ofÂ the funding party (ultimate beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the funding party (ultimate beneficiaries)Â or (iii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

48 Â Â Â The Company has investments in unquoted securities of Rs 8,485.62 lakhs. The Company could not obtain valuation report for securities of Rs 2,110.00Â lakhs as at 31 March 2024. Further, in respect of securities of Rs 4,533.46 lakhs and Rs 210.16 lakhs, the Company has carried out valuation as on 15Â December 2023 and 8 February 2024 respectively. The management considers that the value of securities is not fluctuating and not easily marketableÂ and hence valuation is appropriate and no change is required in the carrying value of these investments.

51 Analysis of change in the gross carrying amount and corresponding ECL allowance in relation to Loans

The Table below shows the credit quality and the maximum exposure to credit risk based on the Companyâs year end stage classification. The amounts presented are gross of impairment allowances. Policies on ECL allowances are set out in Note 2 .

Reconciliation of changes in gross carrying amount and corresponding ECL allowances for loans and advances to corporate and retail customers:

The following disclosures provides stage wise reconciliation of the Companyâs gross carrying amount and ECL allowances for loans and advances to corporate and retail customers. The transfer of financial assets represents the impact of stage transfers upon the gross carrying amount and associatedÂ allowance for ECL. The net remeasurement of ECL arising from stage transfers represents the increase or decrease due to these transfers.

The new assets originated/ repayments received (net) represents the gross carrying amount and associated allowance ECL impact from transactions within the Companyâs lending portfolio.

55 Â Â Â Events after reporting date

There have been no events after the reporting date that require adjustment/ disclosures in these financials statements

56 Â Â Â Previous yearâs figures have been regrouped/reclassified/rearranged wherever necessary to correspond with the current yearâs classifications /Â disclosures. Figures in brackets pertain to previous year.

Mar 31, 2019

1 Corporate Information

LKP Finance Limited, incorporated in the State of Maharashtra is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank and is listed on Bombay Stock exchange (BSE) of India. The Company is engaged in the business of finance and trading in shares and securities, derivatives etc.

e) Employee Stock Option Scheme

(i) Employee Stock Option Scheme 2010

The Company had instituted an Employee Stock Option Plan (âESOP 2010 or âthe Schemeâ) as approved by Board of Directors and Shareholders of the Company. Under the scheme, 3,90,000 Stock Options were granted at a pricing of 5% discount on the average closing price of the Company;s shares on BSE during the last 15 days preceeding the date of grant of options to the employees of the Company and of its subsidiaries. The options vested would be exercisable at any time within a period of five years from the date of vesting and the equity shares arising on exercise of options shall not be subject to any lock in. The said Scheme is administered by the Nomination and Remuneration Committee of the Board. There are no option outstanding as at 31 March 2019.

During the year ended 31 March 2019, the Company did not grant any stock option. Out of the options granted 132,600 stock options had been excercised.

(ii) Employee Stock Option Scheme 2010

The Company had instituted a new Employee Stock Option Plan (âESOP 2010 or âthe Schemeâ) as approved by Board of Directors and Shareholders of the Company. Under the scheme, 447,000 Stock Options were granted at a price of Rs 80/- per option to the employees of the Company and of its subsidiaries. The options vested would be exercisable at any time within a period of five years from the date of vesting and the equity shares arising on exercise of options shall not be subject to any lock in. The said Scheme is administered by the Nomination and Remuneration Committee of the Board. There are no option outstanding as at 31 March 2019.

During the year ended 31 March 2019, the Company did not grant any stock option. Out of the options granted 14,500 stock options had been excercised.

c) There are no bonus shares issued, shares issued for consideration other than cash or shares bought back during 5 years preceeding 31 March 2019.

d) Terms/ rights attached to Equity shares

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

(iii) Employee Stock Option Scheme 2014

The Company has instituted an Employee Stock Option Plan (âESOP 2014â or âthe Schemeâ) as approved by Board of Directors and Shareholders of the Company, for issuance of 775,000 Stock Options Convertible in equivalent number of equity shares of Rs.10 each to the employees of the Company and of its subsidiaries. Out of 610,000, 610,000 options were granted and vested during 31 March 2015 at a price of Rs 80/per option. The options vested would be exercisable at any time within a period of three years from the date of vesting and the equity shares arising on exercise of options shall not be subject to any lock in. The said Scheme is administered by the Nomination and Remuneration Committee of the Board. There are no option outstanding as at 31 March 2019

(a) Cash Credit/ Overdraft from Bank of India of Rs Nil (Rs 71,629,349) are secured against pledge of approved debt securities rated âAâ and above with 15% margin, fixed deposit with the bank and personal guarantee of the Promoter. The loan is repayable on demand and carries interest of 12% p.a. (one year MCLR BSS CRP)

(b) Cash Credit from Federal Bank Limited of Rs Nil (Rs 123,294,076 ) are secured against pledge of bonds in CGSL account with Federal bank Limited. The loan is repayable on demand and carries interest of 10.95% (one year MCLR)

(c) Overdraft from Federal Bank Limited of Rs Nil (Rs 3,894,821) are secured against pledge of fixed deposit with banks. The loan is repayable on demand. It carries interest 7.25% - 7.80% at monthly rests

(d) Intercorporate borrowings of Rs 359,665,031 (Rs 359,665,031) is considered interest free and repayable on demand in the absence of term sheet and confirmation.

2. Contingent Liabilities and Litigations

(a) Contingent Liabilities

(i) Against a penalty order for Rs 18,000,000/- received from the Enforcement Directorate in respect of a matter which arose in 1996 pertaining to the erstwhile money changing division of the Company , the Company has preferred an appeal in the Honorable Madras High Court. The Company has provided a bank guarantee to cover the demand. The matter is pending. The Management is of the opinion that a cash outflow is unlikely and therefore no provision is considered necessary .

(b) Litigations

(i) A winding up petition filed by the Company against a borrower has been admitted by the Honourable High court of Mumbai. The recovery if any will be accounted for when the money is received from official Liquidator.

(ii) The Company has filed an arbitration case Rs. 2,510,744/against borrowers for which it has received a favourable award from the arbitrators. The opposing parties have filed an appeal in the Honourable High court of Mumbai for which the matter is pending.

3. As per Accounting Standard 15 âEmployee Benefitsâ, the disclosures of Employee benefits as defined in the Accounting Standard are given below:

The Employeesâ Gratuity Fund Scheme managed by LIC of India is a defined benefit plan. The present value of obligation is based on actuarial valuation using the projected unit credit method. The obligation for leave benefits (non-funded) is also recognized using the projected unit credit method.

Disclosure of Gratuity (funded) in terms of AS 15 is as under:

4. Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a CSR Committee has been formed by the Company. The Company is required to spend Rs.3,032,013/- against which Rs 3,500,000/- has been spent on activities specified in Schedule VII of the Companies Act, 2013.

Notes

i) Amounts recognized as an expense and included in Note 18 "Employee benefits expense" are Gratuity written back Rs. 268,990 (Rs 1,135,052)

ii) The estimates of future salary increases considered in the actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

iii) âContribution to provident and other fundsâ is recognized as an expense in Note 18 "Employee benefits expense" of the Statement of Profit and Loss.

5. Other Commitments

a) During the year, the Company has entered into an memorandum of understanding to purchase 2,900 Equity shares based on the valuation to be determined by the valuer after due diligence. The Company has given advance of Rs 78,650,000 towards purchase of 786,500 preference shares of Rs 100 each which would also be transferred after the agreement for sale has been entered.

b) Uncalled amount on investments is Rs Nil (Rs 43,250,000/-)

c) Minimum Alternate Tax (MAT) paid in accordance with tax laws, which give rise to future economic benefits in the form of adjustment of future tax liability, is recognised as an asset only when, based on convincing evidence, it is probable that the future taxable benefits associated with it will flow to the Company and the assets can be measured reliably. The Company has unrecognized MAT credit entitlement as on 31 March 2019 of Rs 198,049,929/

6. Other payables includes amount payable to Small Scale Industrial Undertakings and Micro, Small and Medium Enterprises. Under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMEDA),which came into force from 2 October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, the following disclosures are made for the amounts due to the Micro, Small and Medium enterprises, which have registered with the competent authorities.

7. a) Provision for current tax has been made as per the provisions of the Income Tax Act, 1961.

b) In accordance with AS - 22 on âAccounting for Taxes on Incomeâ issued by the ICAI, deferred tax assets and liability is recognized for all timing differences, in accordance with the said standard. However, deferred tax asset has not been created on tax losses of Rs 426,921,610/-. in absence of convincing evidence to generate sufficient future taxable profits in foreseeable future.

8. Segment reporting

The Company has only one business, i.e. engaged in investment and financing activities and hence âSegment Reportingâ as defined in Accounting Standard 17 is not applicable.

9. Previous yearâs figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classifications / disclosures. Figures in brackets pertain to previous year.

Mar 31, 2018

1 Corporate Information

LKP Finance Limited, incorporated in the State of Maharashtra is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India and is listed on Bombay Stock exchange (BSE) of India. The Company is engaged in the business of finance and trading in shares and securities, derivatives etc.

d) Terms/ rights attached to Equity shares

e) Employee Stock Option Scheme

(i) Employee Stock Option Scheme 2010

The Company had instituted an Employee Stock Option Plan (âESOP 2010 or âthe Schemeâ) as approved by Board of Directors and Shareholders of the Company. Under the scheme, 599,500 Stock Options were granted at a pricing of 5% discount on the average closing price of the Company;s shares on BSE during the last 15 days preceeding the date of grant of options to the employees of the Company and of its subsidiaries. The options vested would be exercisable at any time within a period of five years from the date of vesting and the equity shares arising on exercise of options shall not be subject to any lock in. The said Scheme is administered by the Nomination and Remuneration Committee of the Board.

(ii) Employee Stock Option Scheme 2010

During the year ended 31 March 2018, the Company did not grant any stock option. Out of the options granted 223,500 stock options had been excercised.

(iii) Employee Stock Option Scheme 2014

The Company has instituted an Employee Stock Option Plan (âESOP 2014â or âthe Schemeâ) as approved by Board of Directors and Shareholders of the Company, for issuance of 775,000 Stock Options Convertible in equivalent number of equity shares of Rs.10 each to the employees of the Company and of its subsidiaries. Out of 610,000, 610,000 options were granted and vested during 31 March 2015 at a price of Rs 80/- per option. The options vested would be exercisable at any time within a period of three years from the date of vesting and the equity shares arising on exercise of options shall not be subject to any lock in. The said Scheme is administered by the Nomination and Remuneration Committee of the Board. There are no option outstanding as at 31 March 2018

(a) Cash Credit/ Overdraft from Bank of India of Rs 71,629,349 (Rs 281,864,060) are secured against pledge of approved debt securities rated âAâ and above with 15% margin, fixed deposit with the bank and personal guarantee of the Promoter. The loan is repayable on demand and carries interest of 11.20%p.a. (one year MLCR BSS CRP)

(b) Cash Credit from Federal Bank Limited of Rs 123,294,076 (RsNil ) are secured against pledge of bonds in CGSL account with Federal bank Limited. The loan is repayable on demand and carries interest of 12%

(c) Overdraft from Federal Bank Limited of Rs 3,894,821 (Rs Nil) are secured against pledge of fixed deposit with banks. The loan is repayable on demand. It carries interest 7.25% - 7.80% at monthly rests

(d) Credit facility from IL & FS of RsNil (149,860,854) are secured against pledge of shares in pool account and carries interest @ 11.5% p.a. The loan has been repaid during the year

(e) Credit facility from Bajaj Finance Limited of RsNil (129,533,532) are secured against pledge of shares in pool account and carries interest @ 9.5% p.a. The loan has been repaid during the year

(f) Credit facility from ECL Finance Limited of RsNil (27,100,000) are secured against pledge of Bonds and carries interest @ 11.5% p.a. The loan has been repaid during the year

(g) Unsecured loan of Rs 359,665,031 (Rs 363,553,031) is repayable on demand.

2 Litigation Matters

(a) Claim against the Company not acknowledged as debt Rs. 227,500/- (Rs3,399,000 /-) , against which the company has deposited full amount in the Honorable High Court of Mumbai.

(b) Against a penalty order for Rs 18,000,000/- received from the Enforcement Directorate in respect of a matter which arose in 1996 pertaining to the erstwhile money changing division of the Company , the Company has preferred an appeal in the Honorable Madras High . The Company has provided a bank guarantee to cover the demand. The matter is pending The Management is of the opinion that a cash outflow is unlikely and therefore no provision is considered necessary .

(c) A winding up petition filed by the Company against a borrower has been admitted by the Honourable High court of Mumbai. The recovery if any will be accounted for when the money is received from official Liquidator.

(d) The Company has filed an arbitration case Rs. 9,27000/- against a borrower for which it has received a favourable award from the arbitrator. The opposing party has filed an appeal in the Honourable High court of Mumbai for which the matter is pending.

(e) The Company has filed recovery suits in the Mumbai High Court against three parties for an amount of Rs 33,38,00,635/- to whom loans/advances were given. The Company has received an order in its favour. The Defendants have moved the court opposing the Order. The matter is pending. Any recoveries will be accounted for in the year of recovery.

3 As per Accounting Standard 15 âEmployee Benefitsâ, the disclosures of Employee benefits as defined in the Accounting Standard are given below:

Notes

i) Amounts recognized as an expense and included in Note 19 "Employee benefits expense" are Gratuity written back Rs. 1,135,052/-

iii) âContribution to provident and other fundsâ is recognized as an expense in Note 19 "Employee benefits expense" of the Statement of Profit and Loss.

4 Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a CSR Committee has been formed by the Company. The Company is required to spend Rs.2,957,186/- against which Rs 3,500,000/- has been spent on activities specified in Schedule VII of the Companies Act, 2013.

5 other commitments

Uncalled amount on investments is Rs 43,250,000/- (Rs Nil)

6 a) Provision for current tax has been made as per the provisions ofthe Income Tax Act, 1961.

b) In accordance with AS - 22 on âAccounting for Taxes on Incomeâ issued by the ICAI, deferred tax assets and liability is recognized for all timing differences, in accordance with the said standard. However, deffered tax asset has not been created on brought forward loss of Rs 648,704,606/- including current year income tax loss on estimate basis.

c) Minimum Alternate Tax (MAT) paid in accordance with tax laws, which give rise to future economic benefits in the form of adjustment of future tax liability, is recognised as an asset only when, based on convincing evidence, it is probable that the future economic benefits associated with it will flow to the Company and the assets can be measured reliably. Accordingly , the Company has recognised MAT credit entitlement as on 31 March 2018 ofRs 66,319,781/- and unrecognized MAT credit entitlement as on 31 March 2018 of Rs160,319,410/-

7 The Company does not have any amounts due to suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED Act) as at 31 March,2018

8 Measurement and disclosure of the employee share-based payment plans is done in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the guidance note on Employee Share-based Payments, issued by ICAI. The Company measures the compensation cost relating to employee stock options using the intrinsic value method. Compensation expense is amortised over the vesting period of the option on a straight line basis 147,100 ESOPs are outstanding as on 31 March, 2018. 223,500 options have been excercised during the year

9 Segment reporting

The Company has only one business, i.e.engaged in investment and financing activities and hence âSegment Reportingâ as defined in Accounting Standard 17 is not applicable.

10 Scheme of Arrangement in the nature of demerger

During the previous year, a Scheme of Arrangement (âthe Schemeâ) under Sections 391 to 394 read with Section 78 and Sections 100 to 104 and other applicable provisions of the Companies Act 1956 / Companies Act 2013, between LKP Finance Limited (âTransferorâ or âthe Demerged Companyâ) and LKP Securities Limited (âTransferee Companyâ or âthe Resulting Companyâ) and their respective shareholders and creditors, was sanctioned by the Honâble High Court of Judicature at Mumbai on 8 July 2016. Pursuant to the Scheme, the subsidiary business is demerged and vested with the Resultimgcompany on appointed date i.e. 1 April 2015 on going concern basis. The share exchange ratio of 6 equity shares of the face value of Rs 2/each of the Transferee Company for every 1 equity share of the face value of Rs 10 each was issued.

11 Change in Accounting Policy

As per the requirements of pre-revised AS-4, the company used to create a liability for dividend proposed/ declared after the balance sheet date if dividend related to periods covered by the financial statements. Going forward, as per AS 4, the Company cannot create provision for the dividend proposed / declared after the balance sheet date unless a statute requires otherwise. Rather , company will need to disclose the same in notes to the financial statements

Accordingly, the company has disclosed dividend proposed by the board of directors after the balance sheet date in the notes.

Had the Company continued with creation of provision for proposed dividend, (declared @ Rs. 2 per share) its surplus in the statement of profit and loss account would have been lower by Rs 24,843,046/- and current provision would have been higher by Rs5,058,044/- being dividend distribution tax.

12 Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a CSR Committee has been formed by the Group. The Group is required to spend Rs.2,957,186/- against which Rs 3,500,000/- has been spent on activities specified in Schedule VII of the Companies Act, 2013.

13 Previous yearâs figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classifications / disclosures. Figures in brackets pertain to previous year.

Mar 31, 2017

1. Terms / Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholder in the ensuring Annual General Meeting. During the year ended 31st March,2017, the amount of per share dividend recommended and provided for distributions to equity shareholders is Rs.2/- per share.

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

2. Shares held by holding / ultimate holding company and /or their subsidiaries / associates : NIL

3. There is no movement in the share capital during the current and previous year.

4. Litigation Matter:

5. Claim against the Company not acknowledged as debt Rs. 33.99 Lacs , against which the company has deposited full amount in the Honâble High Court of Mumbai. The matter is pending since 2007

6. Against a penalty order for Rs 180 lakhs received from the Enforcement Directorate in respect of a matter which arose in 1996 pertaining to the erstwhile money changing division of the Company , the Company has preferred an appeal in the Honâble Madras High . The Company has provided a bank guarantee to cover the demand. The matter is pending The Management is of the opinion that a cash outflow is unlikely and therefore no provision is considered necessary .

7. A winding up petition filed by the Company against a borrower has been admitted by the Honâble High court of Mumbai. The recovery if any will be accounted for when the money is received from official Liquidator.

8. The Company has filed an arbitration case (Rs. 9.27 Lacs ) against a borrower for which it has received a favourable award from the arbitrator. The opposing party has filed an appeal in the Honâble High court of Mumbai for which the matter is pending.

9. The Company has filed recovery suits in the Mumbai High Court against three parties for an amount of Rs 33.38 crores to whom loans/advances were given. The matter is pending. Any recoveries will be accounted for in the year of recovery.

10. With a view to demerge its SEBI Registered Intermediaries business, the company filed a scheme of arrangement with the Honourable Bombay High Court for which approval was received during the year. As per the Scheme, the investment of the Company in LKP Securities Limited (erstwhile subsidiary) of equity shares and preference shares were cancelled. This has resulted in reduction of Investments in the books of the Company by Rs.39.79 Crores and corresponding reduction in the Reserves of the Company. As per the Scheme, LKP Securities Limited has on 8^th July,2o16 allotted 7,31,83,896 equity shares of Rs.2/- each fully paid up to the shareholders of LKP Finance Limited in the ratio of 6 shares of LKP Securities for every share held in LKP Finance Limited.

11. The company has contributed towards its gratuity liability for employees to Life Insurance Corporation of India - Group Gratuity Scheme based on the annual contribution as intimated by Life Insurance Corporation of India.

12. Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act , 2013, a CSR Committee has been formed by the company. The areas for CSR activities are as per Schedule VII of the Companies Act,2013. An amount of Rs. 27.60 Lakhs has been spent for the CSR activities during the year.

13. Income Tax assessments have been completed up to Asst. Year 2014- 2015. There are no demands outstanding.

14. Balances shown under the head of Current Assets, Loans and Advances are considered as good and recoverable by the management.

15. Prudential Norms of the Reserve bank of India (RBI):

The Prudential Norms of the RBI require the company to derecognize certain income and make provisions for nonperforming assets.

In compliance with Guidelines prescribed by Reserve Bank of India for NBFCs, the company has

16. provided 0.25% of Standard Assets amounting to Rs. NIL ( Previous year Rs NIL ). The Contingent Provision against Standard Assets as on 31.03.2017 is Rs 38.62 lacs ( Previous year Rs 38.62 lacs)

17. appropriated 20% of the Net Profits Rs 201.47 lacs ( Previous year Rs 177.45 lacs) to Special Reserve Fund.

18. Tax Deducted at Source on income: Rs. 112.19 lacs (Previous Year Rs. 129.82)

19. The company has no amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, [MSMED Act] as at 31^st March, 2017.

20. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31^st March, 2017

21. Measurement and disclosure of the employee share-based payment plans is done in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the Guidance Note on Accounting for Employee Share-based Payments, issued by ICAI. The company measures compensation cost relating to employee stock options using the intrinsic value method. Compensation expense is amortized over the vesting period of the option on a straight line basis. 5,01,800 ESOPs are outstanding as on 31^st March,2017. None of the options have been exercised so far.

22. During the year the company has entered into Futures & Options contracts on the National Stock Exchange in the Equity & Currency Segments and on the Multi Commodity Exchange in the commodity segment. The open position as on 31.03.2017 is Rs 1,311.39 lacs (Previous Year Rs 7,048.06 lacs).

23. Balance sheet of a non deposit taking non-banking financial company (As required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms {Reserve Bank} Directions, 2007)

24. At the closure of 08^th November, 2016 The Company was having cash balance of Rs.5,518/- which does not include any specified bank notes. (Circular no. G.S.R. as Per 308 (E) dated 30^th March,2017.

25. Previous Years Figures are regrouped / reclassified wherever necessary.

Mar 31, 2015

1. Contingent Liabilities:

(a) Guarantee given to a Bank on behalf of a Subsidiary - Rs 8 crores. (Previous Year Rs 8 crores)

(b) Claim against the Company not acknowledged as debt Rs. 33.99 Lacs , against which the company has deposited full amount in the Honorable High Court of Mumbai. The matter is pending.

2. The company has contributed towards its gratuity liability for employees to Life Insurance Corporation of India - Group Gratuity Scheme based on the annual contribution as intimated by Life Insurance Corporation of India.

3. Balances shown under the head of Current Assets, Loans and Advances are considered as good and recoverable by the management.

4. Prudential Norms of the Reserve bank of India (RBI):

The Prudential Norms of the RBI require the company to derecognize certain income and make provisions for non- performing assets.

In compliance with Guidelines prescribed by Reserve Bank of India for NBFCs, the company has

(a) provided 0.25% of Standard Assets amounting to Rs. NIL (Previous year Rs NIL). The Contingent Provision against Standard Assets as on 31.03.2015 is Rs 38.62 lacs (Previous year Rs 38.62 lacs)

(b) appropriated 20% of the Net Profits Rs 354.74 lacs ( Previous year Rs 149.53 lacs) to Special Reserve Fund.

5. Tax Deducted at Source on income: Rs. 106.34 lacs (Previous Year Rs. 178.24 lacs)

6. The company has provided Rs 146.16 lacs (Net) ( Previous year Rs 163.16 lacs) against NPAs

7. Short Term Loans and Advance include Rs NIL due from a Director ( Previous year Rs 6 lacs)

8. The company has no amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, [MSMED Act] as at 31st March, 2015.

9. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31st March, 2015

10. Measurement and disclosure of the employee share-based payment plans is done in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the Guidance Note on Accounting for Employee Share-based Payments, issued by ICAI. The company measures compensation cost relating to employee stock options using the intrinsic value method. Compensation expense is amortized over the vesting period of the option on a straight line basis. 15,23,000 ESOPs are outstanding as on 31st March,2015. None of the options have been exercised so far.

11. During the year the company has entered into Futures & Options contracts on the National Stock Exchange in the Equity Segment and on the Multi Commodity Exchange in the commodity segment. The open position as on 31.03.2015 is Rs 4,246.31 lacs (Previous Year Rs 128.42 lacs).

12. The Management has reviewed the loans against shares portfolio as at the year end. On such review and inspite of best efforts made to recover the amounts due, Rs 3325.42 lacs was found to be bad and irrecoverable, and the same have been written off in the accounts.

13. Balance sheet of a non deposit taking non-banking financial company

(As required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms {Reserve bANK} dIRECTIONS, 2007)

Mar 31, 2014

1. Contingent Liabilities:

(a) Guarantee given to a Bank on behalf of a Subsidiary - Rs 8 crores. (Previous Year Rs 8 crores)

(b) Claim against the Company not acknowledged as debt Rs. 33.99 Lacs , against which the company has deposited full amount in the Honorable High Court of Mumbai. The matter is pending.

2. The company has contributed towards its gratuity liability for employees to Life Insurance Corporation of India - Group Gratuity Scheme based on the annual contribution as intimated by Life Insurance Corporation of India.

3. Prudential Norms of the Reserve bank of India (RBI):

The Prudential Norms of the RBI require the company to derecognize certain income and make provisions for non- performing assets.

In compliance with Guidelines prescribed by Reserve Bank of India for NBFCs, the company has

(a) provided 0.25% of Standard Assets amounting to Rs. NIL ( Previous year Rs 21.25 lacs). The Contingent Provision against Standard Assets as on 31.03.2014 is Rs 38.62 lacs (Previous year Rs 53.01 lacs)

(b) appropriated 20% of the Net Profits Rs 149.53 lacs (Previous year Rs 134.97 lacs) to Special Reserve Fund.

(c) provided Rs 163.16 lacs ( Previous year Rs 103.23) against Sub Standard Assets under the guidelines.

4. Tax Deducted at Source on income: Rs. 178.24 lacs (Previous Year Rs. 183.30 lacs)

5. Short Term Loans and Advance include Rs 6 lacs due from a Director (Maximum balance Rs Rs 6 lacs) (Previous year Rs Nil)

6. The company has no amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, [MSMED Act] as at 31st March, 2014.

7. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31st March, 2014

8. Measurement and disclosure of the employee share-based payment plans is done in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the Guidance Note on Accounting for Employee Share-based Payments, issued by ICAI. The company measures compensation cost relating to employee stock options using the intrinsic value method. Compensation expense is amortized over the vesting period of the option on a straight line basis. The company has charged Rs 0.31 lacs to the statement of Profit and loss of the year. 8,12,625 ESOPs are outstanding as on 31st March,2014. None of the options have been exercised so far.

9. During the year the company has entered into Futures & Options contracts on the National Stock Exchange in the Equity Segment and on the Multi Commodity Exchange in the commodity segment. The open position as on 31.03.2014 is Rs 128.42 lacs (Previous Year Rs 459.25 lacs).

10. Balance sheet of a non deposit taking non-banking financial company (As required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms {Reserve Bank} Directions, 2007)

11. Previous Years Figures are regrouped / reclassified wherever necessary.

Mar 31, 2013

1. Contingent Liabilities:

(a) Guarantee given to a Bank on behalf of a Subsidiary - Rs 8.00 crores. (Previous Year Rs 8.00 crores)

(b) Claim against the Company not acknowledged as debt Rs. 33.99 Lacs , against which the company has deposited the money in the Honorable High Court of Mumbai.

2. The company has contributed towards its gratuity liability for employees to Life Insurance Corporation of India - Group Gratuity Scheme based on the annual contribution as intimated by Life Insurance Corporation of India.

3. Taxation :

A. The company has made adequate provision for Income Tax based on the current year''s taxable income. As the tax under Minimum Alternative Tax is higher than the tax computed under the normal provisions of the Income Tax Act, 1961 provision for current tax has been made as per Minimum Alternative Tax provisions of the Income Tax Act, 1961. The company has made adjustment of equivalent amount of tax provision for the year by availing MAT Credit of earlier years.

B. Tax expenses for the year comprises of :

i. Current Tax U/s 115JB of Income Tax Act, 1961 Rs 235.13 lacs

Less : MAT credit adjustment of earlier years Rs 235.13 lacs

ii. Deferred Tax Asset Written off Rs 358.81 lacs

iii. Excess provision of tax of earlier year Written back Rs 2.62 lacs Total Rs 356.19

C. Income Tax assessments have been completed upto Asst. Year 2011- 2012. There are no pending demands in respect of completed assessments.

4. Prudential Norms of the Reserve bank of India (RBI):

The Prudential Norms of the RBI require the company to derecognize certain income and make provisions for non- performing assets. The market value of the quoted shares as at 31.03.2013 was lower by Rs 389.26 lacs as compared to the carrying cost.The company is of the view that this fall in the market value of quoted investments is temporary and in line with the ICAI guidelines no provision need be made. However as an abundant caution the company has decided to make additional provision of Rs 24.19 lacs in addition to existing provision of Rs 14.73 lacs to make overall provision of Rs 38.93 lacs to cover 10% of the shortfall in the market value of investments.

5. In compliance with Guidelines prescribed by Reserve Bank of India for NBFCs, the company has

(a) provided 0.25% of Standard Assets amounting to Rs. 21.25 lacs ( Previous year Rs 31.76 lacs)

(b) appropriated 20% ofthe Net Profits Rs 134.97 lacs ( Previous year Rs 97.29 lacs) to Special Reserve Fund.

(c) provided Rs 103.23 lacs ( Previous year Rs Nil) under the guidlines

6. Tax Deducted at Source on income: Rs. 183.30 lacs (Previous Year Rs. 94.77 lacs)

7. The company has no amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, [MSMED Act] as at 31st March, 2013.

8. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31st March, 2013

9. Measurement and disclosure of the employee share-based payment plans is done in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the Guidance Note on Accounting for Employee Share-based Payments, issued by ICAI. The company measures compensation cost relating to employee stock options using the intrinsic value method. Compensation expense is amortized over the vesting period of the option on a straight line basis. The company had granted 8,25,000 ESOPs in the year 2010-11. Out of these 4,35,000 ESOPs were surrendered during the year. The company has further granted 4,47,000 ESOPs during the year. Consequent to the surrender of ESOPs Rs 19.60 lacs (net) ESOP Compensation Expenses has been reversed to the statement of profit and loss which was charged to the statement of profit and loss in earlier years. There is no charge to the Statement of profit and loss in respect of ESOPs granted during the year as the grant price was higher than the fair value on the date of grant. None of the options have been exercised so far.

10. During the year the company has entered into Futures & Options contracts on the National Stock Exchange in the Equity Segment and on the Multi Commodity Exchange in the commodity segment. The open position as on 31.03.2013 is Rs 459.25 lacs (Previous Year Rs 1774.15 lacs).

11. Balance sheet of a non deposit taking non-banking financial company (As required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms {Reserve Bank} Directions, 2007)

12. Previous Years Figures are regrouped / reclassified wherever necessary.

Mar 31, 2012

1. Contingent Liabilities:

(a) Guarantee given to a Bank on behalf of a Subsidiary - Rs 8.00 crores. (Previous Year Rs 5.00 crores)

(b) Claim against the Company not acknowledged as debt Rs. 33.99 Lacs, against which the company has deposited the money in the Honorable High Court of Mumbai.

2. The company has contributed towards its gratuity liability for employees to Life Insurance Corporation of India - Group Gratuity Scheme based on the annual contribution as intimated by Life Insurance Corporation of India.

3. Taxation:

a. The company has made adequate provision for Income Tax based on the current year's taxable income. As the tax under Minimum Alternative Tax is higher than the tax computed under the normal provisions of the Income Tax Act, 1961 provision for current tax has been made as per Minimum Alternative Tax provisions of the Income Tax Act, 1961.

c. Income Tax assessments have been completed upto Asst. Year 2009-2010. There are no pending demands in respect of completed assessments. .

4. Prudential Norms of the Reserve bank of India (RBI):

The Company has not changed its accounting policy for income recognition (which is on accrual basis). The Prudential Norms of the RBI require the company to derecognize certain income and make provisions for non-performing assets. As the market value of the quoted shares as at 31.03.2012 was lower as compared to the carrying cost, the Company has made full provision towards diminution in value of Non Current Quoted Investments Rs 14,73,053/-

5. In compliance with Guidelines prescribed by Reserve Bank of India for NBFCs, the company has

(a) provided 0.25% of Standard Assets amounting to Rs. 31.76 lacs

(b) appropriated 20% of the Net Profits Rs 97.29 lacs (Previous year Rs 522.34 lacs) to Special Reserve Fund.

6. Tax Deducted at Source on income: Rs. 94.77 lacs (Previous Year Rs. 61.21 lacs)

7. The company has no amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, [MSMED Act] as at 31st March, 2012.

8. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31st March, 2012

9. Measurement and disclosure of the employee share-based payment plans is done in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the Guidance Note on Accounting for Employee Share-based Payments, issued by ICAI. The Company measures compensation cost relating to employee stock options using the intrinsic value method. Compensation expense is amortized over the vesting period of the option on a straight line basis. During the year Rs 20,71,135/- (Previous year Rs 16,04,863/-) has been amortised on account of the Employees' Stock Option Scheme 2010. None of the options have been exercised so far.

10. During the year the company has entered into Futures & Options contracts on the National Stock Exchange in the Equity Segment and on the Multi Commodity Exchange in the commodity segment. The open position as on 31.03.2012 is Rs 1774.15 lacs (Previous Year Rs 557.57 lacs).

11. During the year the Company carried out a physical verification of Furniture & Fixtures and Office Equipments (including computers). The physical list included some very old items of furniture and office equipments(including computers) which were not in good condition and unserviceable and unusable. These assets have been depreciated over 95% of the original cost in the books of accounts. The Company has decided to continue with such assets which have some useful life and are in good condition and write off those assets which are unserviceable and have no salvage value. Accordingly the Company has written of FRs 7,10,321/- to the Statement of P&L Account

12. Till the year ended 31st March,2011, the company was using pre- revised Schedule VI to the Companies Act, 1956 for preparation and presentation of its financial statements. During the year ended 31st March,2012, the revised Schedule VI notified under the Companies Act, 1961 has become applicable to the company. The company has reclassified previous figures to conform to this years classification.

Mar 31, 2010

1. Contingent Liabilities:

a) Guarantee given to a Bank Ã Rs 5.00 crores.(Previous Year Rs 5.00 crores)

b) Claim against the Company not acknowledged as Debt Rs 33.99 lacs (full amount deposited in the Mumbai High Court) (Previous Year Rs 33.99 lacs)

2. On 25* February 2008 the Company had issued 10,00,000 Share Warrants to the Promoters at a price of Rs 194 per warrant and received 10% of the issue price (i.e Rs 19.40 per Warrant). The option of conversion of warrants into Equity Shares was to be exercised within a period of 18 months from the date of issue of these warrants. As the warrants holders have not exercised their option for conversion within 18 months period the amounts received towards these share warrants were forfeited during the year and transferred to Capital Reserve.

3. The company after obtaining shareholders approval announced buy back of its Equity Shares (pursuant to the provisions of the Companies Act, 1956 (Act) and in compliance of the Securities and Exchange Board of India (Buy back of Securities) Regulations, 1998) on 10* February, 2009. The shareholders approved a buy back for a maximum amount of Rs 945 lacs and a maximum price of Rs 90/- per equity share. The scheme was operative upto July 2009.The company bought back 3,61,263 Shares during April / July 2009 and the total shares purchased during the full period (i.e. February 2009 to July 2009) were 4,50,000 Equity Shares. These equity shares have been extinguished. The company expended Rs 301.63 lacs for purchase of 3,61,263 equity shares (at an average price of Rs 83.35 per share (previous year 88,737 shares at an average price of Rs 54.67 per share). The excess amount paid over the face value of equity shares has been drawn from Share Premium Account.

4. During the year the company nab issued 7,27,489 11% Compulsorily Convertible Debentures^ (CCDs) to a Corporate at a price of Rs 120/- convertible into equal number of equity shares to be converted between 5th March 2010 to 4th March 2011.The said CCDs have been converted into 7,27,489 equity shares on 31.03.2010 .The money received has been utilized for meeting the working capital requirements of the Company.

5. The company has contributed towards its gratuity liability for employees to Life Insurance Corporation of India - Group Gratuity Scheme based on the annual contribution as intimated by Life Insurance Corporation of India.

6 Taxation:

a. The company has made adequate provision for Income Tax based on the current years taxable income. As the tax under Minimum Alternative Tax is higher than the tax computed under the normal provisions of the Income Tax Act, 1961 provision for current tax has been made as per Minimum Alternative Tax provisions of the Income Tax Act, 1961.

b. Assessments have been completed upto Asst. Year 2007-2008. Appeal has been filed with CIT (A) for Assessment Year 2004- 2005, which is pending and the demand is NIL.

7. As per the Accounting Standard 18, disclosures of transactions with the related parties as defined in the Accounting Standards are given below:

8. Prudential Norms of the Reserve bank of India (RBI):

The Company has not changed its accounting policy for income recognition (which is on accrual basis). The Prudential Norms of the RBI require the company to derecognize certain income and make provisions for non-performing assets. As the market value of the quoted shares as at 31.03.2010 was higher as compared to the cost, no provision is required.

9. In compliance with Section 45IC of the Reserve Bank of India Act, the company has appropriated 20% of the Net Profit to Special Reserve Fund, (including for the financial year 2008-2009 Rs 1708.25 lacs)

10. Tax Deducted at Source on income: Rs. 110.77 lacs (Previous YearRs. 190.16 lacs)

11. The company has no amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, [MSMED Act] as at 31" March, 2010.

12. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 3 Is March, 2010

13. Previous Years Figures are regrouped / reclassified wherever necessary.

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