Notes to Accounts of Margo Finance Ltd.

Mar 31, 2025

i) Provisions, contingent assets and contingent liabilities

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

Contingent liability is disclosed for:

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

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

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

j) Financial instruments

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

Initial recognition and measurement

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

Non-derivative financial assets

Subsequent measurement

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

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

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest
(SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest
rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included in interest income in the Statement of Profit and
Loss.

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

iii. Investments in mutual funds - Investments in mutual funds are measured at fair value through profit and loss (FVTPL).
De-recognition of financial assets

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

Non-derivative financial liabilities

Subsequent measurement

Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortised cost using the effective
interest method.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expired. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement
of Profit and Loss.

First loss default guarantee

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

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

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

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

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

Compound financial instruments

Optionally convertible instruments are separated into liability and equity components based on the terms of the contract. On
issuance of the said instruments, the liability component is arrived by discounting the gross sum (including redemption
premium, if any) at a market rate for an equivalent non-convertible instrument. This amount is classified as a financial liability
measured at amortised cost until it is extinguished on conversion or redemption. The remainder of the proceeds is recognised
as equity component of compound financial instrument. This is recognised and included in shareholders'' equity, net of income
tax effects, and not subsequently re-measured.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.

k) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted
average number of equity shares outstanding during the period is adjusted for events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net profit or loss (interest and other finance cost associated)
for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period
are adjusted for the effects of all dilutive potential equity shares.

l) Segment reporting

The Company identifies segment basis of the internal organization and management structure. The operating segments are
the segments for which separate financial information is available and for which operating profit/loss amounts are regularly
reviewed by the CODM (''chief operating decision maker'') and in assessing performance. The accounting policies adopted
for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses,
segment assets and segment liabilities have been identified to segments on the basis of their relationship with the operating
activities of the segment.

m) Foreign currency

Functional and presentation currency

Items included in the financial statement of the Company are measured using the currency of the primary economic
environment in which the entity operates (''the functional currency''). The financial statements have been prepared and
presented in Indian Rupees (?), which is the Company''s functional and presentation currency.

Transactions and balances

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

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

Transition to Ind AS

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

n) Significant management judgement in applying accounting policies and estimation uncertainty

The preparation of the Company''s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the related disclosures.
Actual results may differ from these estimates.

Significant management judgements

Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based on an assessment
of the probability of the future taxable income against which the deferred tax assets can be utilized.

Business model assessment - The Company determines the business model at a level that reflects how groups of financial
assets are managed together to achieve a particular business objective. This assessment includes judgement reflecting all
relevant evidence including how the performance of the assets is evaluated and their performance measured, the risks that
affect the performance of the assets and how these are managed and how the managers of the assets are compensated.
The Company monitors financial assets measured at amortised cost that are derecognised prior to their maturity to
understand the reason for their disposal and whether the reasons are consistent with the objective of the business for which
the asset was held. Monitoring is part of the Company''s continuous assessment of whether the business model for which the

remaining financial assets are held continues to be appropriate and if it is not appropriate whether there has been a change
in business model and accordingly prospective change to the classification of those assets are made.

Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of assets
requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the
assets.

Expected credit loss (‘ECL'') - The measurement of expected credit loss allowance for financial assets measured at
amortised cost requires use of complex models and significant assumptions about future economic conditions and credit
behaviour (e.g. likelihood of customers defaulting and resulting losses). The Company makes significant judgements with
regard to the following while assessing expected credit loss:

• Determining criteria for significant increase in credit risk;

• Establishing the number and relative weightings of forward-looking scenarios for each type of product/market and the
associated ECL; and

• Establishing groups of similar financial assets for the purposes of measuring ECL.

Provisions - At each balance sheet date basis of the management judgment, changes in facts and legal aspects, the
Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future
outcome may be different from this judgement.

Significant estimates

Useful lives of depreciable/ amortisable assets- Management reviews its estimate of the useful lives of
depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these
estimates relate to technical and economic obsolescence that may change the utility of assets.

Defined benefit obligation (DBO) - Management''s estimate of the DBO is based on a number of underlying assumptions
such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these
assumptions may significantly impact the dBo amount and the annual defined benefit expenses.

Fair value measurements - Management applies valuation techniques to determine the fair value of financial instruments
(where active market quotes are not available). This involves developing estimates and assumptions consistent with how
market participants would price the instrument.

C. Estimation of fair values

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

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

Valuation technique:

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

Fair value hierarchy:

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

a). Terms and rights attached to equity shares
Voting

Each holder of equity shares is entitled to one vote per share held.

Dividends

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

Liquidation

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

Nature and purpose of other reserves:

(i) General reserve

General reserve is created from time to time by way of transfer profits from retained earnings for appropriation
purposes.

General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income.

(ii) Special reserve

Special reserve is created at the rate of 20% of the profits for every year per the provisions of the RBI Act, 1934.

(iii) Share warrant option premium

The Company allotted 20,00,000 Option Warrants to the Promoter Group in pursuance of the approval given by the
shareholders in the Extra Ordinary General Meeting held on 12^th December, 1994. Each option warrant holder was entitled
to apply for one Equity Share at the premium of ?6.90 per share within a period of 18 months from the date of allotment of
warrants. A warrant option premium @ ?1.69 per warrant was payable on allotment to be adjusted against the issue price
of the equity shares. The Company received ?33.80 lacs on allotment of 20,00,000 Option warrants, being the warrant
option premium which had reflected in Schedule 2 of Balance Sheet 1994-95 as Share Warrant Option Premium.

The Promoter Group did not exercise to opt the same and hence the Board forfeited the option warrant premium of
?33.80 lacs in their Board Meeting held on 26^th November, 1996.

(iv) Retained earnings

Retained earnings are the accumulated profits earned by the Company till date, less transfer to general reserves, special
reserves, dividend (including dividend distribution tax) and other distributions made to the shareholders.

(v) Accumulated Other comprehensive income

The company recognises change on account of remeasurement of the net defined benefit liability as part of other
comprehensive income with separate disclosure, which comprises of:

• actuarial gains and losses;

• return on plan assets, excluding amounts included in net interest on the net defined benefit liability; and

• any change in the effect of the asset ceiling excluding amounts included in net interest on the net defined benefit
liability.

The Company has elected to recognise changes in the fair value of certain investments in equity securities and debt
instrument in other comprehensive income. These changes are accumulated in the FVOCI equity investments reserve. The
Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised
or sold. Any impairment loss on such instruments is reclassified to Profit or Loss.

31 Employee benefits

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

(i) Defined contribution plans:

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

(ii) Defined benefit plan:

Gratuity

The Company operates a post-employment defined benefit plan for Gratuity. This plan entitles an employee to receive half
month''s salary for each year of completed service at the time of retirement/exit. The gratuity liability is entirely unfunded.
The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method,
which recognize each period of service as giving rise to additional employee benefit entitlement and measures each unit
separately to build up the final obligation.

On an annual basis, an asset-liability matching study is done by the Company whereby the Company contributes the
net increase in the actuarial liability to the plan manager in order to manage the liability risk. The Company''s policy and
objective for plan assets management is to maximise return on plan assets to meet future benefit payment requirements
while at the same time accepting a low level of risk.

D. Actuarial assumptions

a) Economic assumptions

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

Description of risk exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed

to various risks as follow -

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

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

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

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

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

Terms and conditions of transactions with the related parties

i) . The terms and conditions of the transactions with key management personnel were no more favorable than those

available, or which might reasonably be expected to be available, on similar transactions to non-key management
personnel related entities on an arm''s length basis.

ii) . All outstanding balances with these related parties are priced on an arm''s length basis and are to be settled in

cash. None of the balances are secured.

33. Segment Reporting

The Company is engaged primarily in the business of Investment and Investment related financial services, accordingly
there are no separate reportable segments as per Ind AS 108 dealing with Operating Segment.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally
accepted pricing models based on discounted cash flow analysis using prices from observable current market
transactions and dealer quotes of similar instruments.

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

Valuation processes

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

b). Financial risk management

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

• Credit risk

• Liquidity risk

• Interest rate risk

Risk management framework

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

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

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

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations and arises principally from the Company''s receivables from customers.

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

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

On adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.
The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade
receivable. The management uses a simplified approach (i.e. based on lifetime ECL) for the purpose of impairment
loss allowance, the company estimates amounts based on the business environment in which the Company operates,
and management considers that the trade receivables are in default (credit impaired) when counterparty fails to make
payments for receivable more than 180 days past due. However, the Company based upon historical experience
determines an impairment allowance for loss on receivables.

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

# The Company believes that the unimpaired amounts that are past due by more than 180 days are still collectible
in full, based on historical payment behaviour and extensive analysis of customer credit risk.

There was no movement in the allowance for impairment in respect of trade receivables.

(ii) Liquidity risk

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

The Company believes that its liquidity position, including total cash (including bank deposits under lien and excluding
interest accrued but not due) of ?32.06 lacs as at March 31, 2025 (March 31, 2024: ?22.03 lacs) and the anticipated
future internally generated funds from operations will enable it to meet its future known obligations in the ordinary
course of business.

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

iii). Market risk

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

Interest rate risk

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

Exposure to interest rate risk

The Company''s interest rate risk arises majorly from the term loans from banks carrying floating rate of interest.
During the year ended March 31, 2024 & March 31, 2025 the Company does not have any borrowings hence no
exposure of interest rate risk.

35 Capital Management

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

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

37 There are no borrowing costs that have been capitalised during the year ended March 31, 2025 and March 31, 2024.

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

39 These financial statements were authorised for issue by Board of Directors on 30^th May, 2025.

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

41 The Company does not possess any immovable property (other than properties where the Company is the lessee and the
lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company
during the year ended March 31, 2025 and March 31,2024.

42 All charges or satisfaction are registered with ROC within the statutory period for the financial years ended March 31,
2025 and March 31, 2024. No charges or satisfactions are yet to be registered with ROC beyond the statutory period.

43 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31, 2025 and March 31,
2024.

44 There are no transactions not recorded in the books of accounts.

45 The Company has not traded or invested in Crypto currency or Virtual currency during the financial years ended March
31, 2025 and March 31, 2024.

46 No proceedings have been initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder in the financial years ended March 31, 2025
and March 31, 2024.

47 The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in the financial
years ended March 31, 2025 and March 31, 2024.

48 In the financial years ended March 31, 2025 and March 31, 2024, the Company did not have any transaction with the
companies whose names have been struck off under section 248 of Companies Act, 2013 or section 560 of Companies
Act, 1956.

For Pawan Shubham & Co. For and on behalf of the Board of Directors of

Chartered Accountants Margo Finance Limited

Firm registration No. 011573C

CA Krishna Kumar Anil Kumar Jain Shri Dass Maheshwari

Partner Chairman Whole-time Director and CFO

Membership No.: 523411 DIN: 00086106 DIN: 00181615

Place: Delhi Krishna Makwana

Date: 30^th May, 2025 Company Secretary

Membership No.: A72595

Place: Mumbai
Date: 30^th May, 2025

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Mar 31, 2024

A. Estimation of fair values

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

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

Valuation technique:

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

Fair value hierarchy:

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

a). Terms and rights attached to equity shares Voting

Each holder of equity shares is entitled to one vote per share held.

Dividends

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in ensuing Annual General Meeting except in the case where interim dividend is distributed. During the year ended March 31, 2024, the company has recorded per share dividend of ? Nil (previous year Nil) to its equity holders.

Liquidation

In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive all of the remaining assets of the Company, after distribution of all preferential amounts, if any.

Such distribution amounts will be in proportion to the number of equity shares held by the shareholders.

d) . There were no shares issued for consideration other than cash during the period of five years immediately preceding the

reporting date.

e) . No class of shares have been bought back by the Company during the period of five years immediately preceding the

reporting date.

Nature and purpose of other reserves:

(i) General reserve

General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes.

General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

(ii) Special reserve

Special reserve is created at the rate of 20% of the profits for every year per the provisions of the RBI Act, 1934.

(iii) Share warrant option premium

The Company allotted 20,00,000 Option Warrants to the Promoter Group in pursuance of the approval given by the shareholders in the Extra Ordinary General Meeting held on 12^th December, 1994. Each option warrant holder was entitled to apply for one Equity Share at the premium of ?6.90 per share within a period of 18 months from the date of allotment of warrants. A warrant option premium @ ?1.69 per warrant was payable on allotment to be adjusted against the issue price of the equity shares. The Company received ?33.80 lacs on allotment of 20,00,000 Option warrants, being the warrant option premium which had reflected in Schedule 2 of Balance Sheet 1994-95 as Share Warrant Option Premium.

The Promoter Group did not exercise to opt the same and hence the Board forfeited the option warrant premium of ?33.80 lacs in their Board Meeting held on 26^th November, 1996.

(iv) Retained earnings

Retained earnings are the accumulated profits earned by the Company till date, less transfer to general reserves, special reserves, dividend (including dividend distribution tax) and other distributions made to the shareholders.

(v) Accumulated Other comprehensive income

The company recognises change on account of remeasurement of the net defined benefit liability as part of other comprehensive income with separate disclosure, which comprises of:

• actuarial gains and losses;

• return on plan assets, excluding amounts included in net interest on the net defined benefit liability; and

• any change in the effect of the asset ceiling excluding amounts included in net interest on the net defined benefit liability.

The Company has elected to recognise changes in the fair value of certain investments in equity securities and debt instrument in other comprehensive income. These changes are accumulated in the FVOCI equity investments reserve. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised or sold. Any impairment loss on such instruments is reclassified to Profit or Loss.

29 During the year the company had used accounting software for maintaining its books of account having the feature of recording audit trail (edit log) facility. The accounting software was operated throughout the year for all relevant transactions recorded in the software except that the feature of recording audit trail was not enabled at the database level to log any direct changes in respect of accounting software till 7^th August 2023.

31 Employee benefits

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

(i) Defined contribution plans:

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

(ii) Defined benefit plan:Gratuity

The Company operates a post-employment defined benefit plan for Gratuity. This plan entitles an employee to receive half month''s salary for each year of completed service at the time of retirement/exit. The gratuity liability is entirely unfunded. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognize each period of service as giving rise to additional employee benefit entitlement and measures each unit separately to build up the final obligation.

The most recent actuarial valuation of present value of the defined benefit obligation for gratuity were carried out as at March 31, 2024. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

C. Plan assets

The plan assets of the Company are managed by Life Insurance Corporation of India through a trust managed by the Company in terms of an insurance policy taken to fund obligations of the Company with respect to its gratuity plan. The categories of plan assets as a percentage of total plan assets is based on information provided by Life Insurance Corporation of India with respect to its investment pattern for group gratuity fund for investments managed in total for several other companies.

On an annual basis, an asset-liability matching study is done by the Company whereby the Company contributes the net increase in the actuarial liability to the plan manager in order to manage the liability risk. The Company''s policy and objective for plan assets management is to maximise return on plan assets to meet future benefit payment requirements while at the same time accepting a low level of risk.

D. Actuarial assumptionsa) Economic assumptions

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

E. Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

Sensitivity due to mortality is not material and hence impact of change not calculated. Sensitivity as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable being a lump sum benefit on retirement.

Description of risk exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed

to various risks as follow -

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

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

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

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

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

32. Related party disclosures

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

Terms and conditions of transactions with the related parties

i) . The terms and conditions of the transactions with key management personnel were no more favorable than those

available, or which might reasonably be expected to be available, on similar transactions to non-key management personnel related entities on an arm''s length basis.

ii) . All outstanding balances with these related parties are priced on an arm''s length basis and are to be settled in

cash. None of the balances are secured.

33. Segment Reporting

The Company is engaged primarily in the business of Investment and Investment related financial services, accordingly there are no separate reportable segments as per Ind AS 108 dealing with Operating Segment.

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

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar instruments.

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

Valuation processes

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

b). Financial risk management

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

• Credit risk

• Liquidity risk

• Interest rate risk

Risk management framework

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

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

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

(i) Credit risk

The maximum exposure to credit risks is represented by the total carrying amount of these financial assets in the balance sheet:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers.

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

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

On adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade receivable. The management uses a simplified approach (i.e. based on lifetime ECL) for the purpose of impairment loss allowance, the company estimates amounts based on the business environment in which the Company operates, and management considers that the trade receivables are in default (credit impaired) when counterparty fails to make payments for receivable more than 180 days past due. However, the Company based upon historical experience determines an impairment allowance for loss on receivables.

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

# The Company believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.

There was no movement in the allowance for impairment in respect of trade receivables.

(ii) Liquidity risk

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

The Company believes that its liquidity position, including total cash (including bank deposits under lien and excluding interest accrued but not due) of ?22.03 lacs as at March 31, 2024 (March 31, 2023: ?21.87 lacs) and the anticipated future internally generated funds from operations will enable it to meet its future known obligations in the ordinary course of business.

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

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

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

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

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and includes interest accrued but not due on borrowings.

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

iii). Market risk

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

Interest rate risk

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

Exposure to interest rate risk

The Company''s interest rate risk arises majorly from the term loans from banks carrying floating rate of interest. During the year ended March 31, 2023 & March 31, 2024 the Company does not have any variable rate borrowings hence no exposure of interest rate risk.

35 Capital Management

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

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

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

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

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

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

39 These financial statements were authorised for issue by Board of Directors on 29^th May, 2024.

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

41 The Company does not possess any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company during the year ended March 31, 2024 and March 31,2023.

42 All charges or satisfaction are registered with ROC within the statutory period for the financial years ended March 31, 2024 and March 31, 2023. No charges or satisfactions are yet to be registered with ROC beyond the statutory period.

43 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31, 2024 and March 31, 2023.

44 There are no transactions not recorded in the books of accounts.

45 The Company has not traded or invested in Crypto currency or Virtual currency during the financial years ended March 31, 2024 and March 31, 2023.

46 No proceedings have been initiated or pending against the Company for holding any benami property under the Benami T ransactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder in the financial years ended March 31, 2024 and March 31, 2023.

47 The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in the financial years ended March 31, 2024 and March 31, 2023.

48 In the financial years ended March 31, 2024 and March 31, 2023, the Company did not have any transaction with the companies whose names have been struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

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Mar 31, 2015

1. CONTINGENT LIABILITIES & COMMITMENTS

Particulars As at As at 31 March 31 March 2015 2014

i) Contingent Liabilities — —

ii) Capital Commitments (Net of advances) 812,500 —

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Mar 31, 2014

NIL

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Mar 31, 2012

1.1 CONTINGENT LIABILITIES & COMMITMENTS

(Amount in Indian Rupees)

Particulars As at As at

31 March 2012 31 March 2011

I) Contingent liabilities :

a) Claims against the company not acknowledged as debts - -

b) Guarantees - -

c) Other Money to which the company - - is contingently liable

II) Capital Commitments

a) Estimated amount of contracts - - remaining to be executed

on capital account

b) Uncalled liability on shares & - - investments partly paid

c) other commitments - -

1.2 Segment information

As the company's business activities fall under a single business segment and geographical segment, there are no additional disclosure to be provided under Accounting Standard 17 segment reporting other than those already provided in the financial statements

1.3 Others

i) In the opinion of the management, the Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

ii) Paise have been rounded off to nearest rupee.

iii) Debit & Credit balances are subject to confirmation

iv) Previous Years figures have been regrouped and/or rearranged.

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Mar 31, 2011

Current Year Previous Year 31.03.2011 31.03.2010 (Rs.) (Rs.)

1. Contingent Liabilities not provided for Nil Nil

2. In the opinion of the management, the Current Assets, Loans and Advances are approximately of the value stated, if realized, in the ordinary course of business.

3. Related Party Disclosure

List of parties with whom transactions have taken place during the year:

1) Entities under Common Control 2) Key Managerial Personnel

a) Indo Count Industries Limited a) Shri Anil Kumar Jain

b) Rini Investment & Finance Private Limited b) Shri G. P. Agrawal

c) Indocount Securities Limited c) Shri Sushil Kumar Agarwal

d) Skyrise Properties Private Limited d) Shri Pradeep Kantilal Shah

4. Debit / Credit balances of parties are subject to confirmations.

5. Paise have been rounded off to the nearest rupee.

6. Previous year's figures have been regrouped and / or rearranged wherever considered necessary.

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Mar 31, 2010

Current Year Previous Year 31.032010 31.03.2009 (Rs.) (Rs.)

1. Contingent Liabilities not provided for Nil Nil

2. Earning per share computed in accordance with the mandatory requirements of Accounting Standard 20 issued by the Institute of Chartered Accountants of India is as under:

a) Net Profit after tax available for equity 1,672,727 847,696 shareholders

b) Weighted average number of Equity Shares 4,570,000 4,570,000 of Rs. 10/- each outstanding during the year

c) Basic / Diluted Earning per Share Rs. (a / b) 0.37 0.12

3. In the opinion of the management, the Current Assets, Loans and Advances are approximately of the value stated, if realized, in the ordinary course of business.

4. Related Party Disclosure

List of parties with whom transactions have taken place during the year:

1) Entities under Common Control

a) Indo Count Industries Limited

b) Rini Investment & Finance Private Limited

c) Indocount Securities Limited

d) Skyrise Properties Private Limited

2) Key Managerial Personnel

a) Shri Anil Kumar Jain

b) Shri GL P. Agrawal

c) Shri Sushil Kumar Agarwal

d) Shri Pradeep K. Shah

5. Debit / Credit balances of parties are subject to confirmations.

6. Paise have been rounded off to the nearest rupee.

7. Previous years figures have been regrouped and / or rearranged wherever considered necessary.