Notes to Accounts of Master Trust Ltd.

Mar 31, 2025

l. Provisions and contingent liabilities

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
the Company will be required to settle the
obligation, and a reliable estimate can be made
of the amount of the obligation.

The amount recognised as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the
reporting period, taking into account the risks
and uncertainties surrounding the obligation.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of those
cash flows (when the effect of the time value of
money is material).

When some or all of economic benefits
required to settle a provision are expected to
be recovered from a third party, a receivable is
recognised as on asset if it is virtually certain that
reimbursements will be received and amount of
the receivable can be measured reliably.

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. When there is a
possible obligation or a present obligation that
the likelihood of outflow of resources is remote,
no provision or disclosure is made.

m. Leases

Where the Company is the lessee

Leases where the lessor effectively retains
substantially all the risks and benefits of
ownership of the leased asset are classified as
operating leases. Operating lease payments are
recognisised as an expense in the Statement of
profit and loss.

Where the Company is the lessor

Lease income is recognised in the Statement of
profit and loss as per contractual rental unless
another systematic basis is more representative
of the time pattern in which the benefit derived
from the leased asset is diminished.

n. Cash and cash equivalents

Cash and cash equivalents in the balance sheet
comprise cash on hand, cheques and drafts on
hand, balance with banks in current accounts
and short-term deposits with an original maturity
of three months or less, which are subject to an
insignificant risk of change in value.

o. Earning 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. Exceptional items

In certain occasions, the size, type, or incidences
of the item of income or expenses pertaining to
the ordinary activities of the Company is such
that its disclosure improves the understanding of
the performance of the Company, Such income
or expenses are classified as an exceptional
item and accordingly, disclosed in the financial
statements.

q. Significant accounting judgements, estimates
and assumptions

In the application of the Company''s accounting
policies, which are described as stated above,
the Directors of the Company are required to
make judgements, estimates and assumptions
about the carrying amounts of assets and
liabilities that are not readily apparent from
other sources. The estimates and associated
assumptions are based on historical experience
and other factors that are considered to be
relevant. Actual results may differ from these
estimates.

The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the
period in which the estimate is revised if the
revision affects only the period of the revision
and future periods if the revision affects both
current and future periods.

Key sources of uncertainty

In the application of the Company accounting
policies, the management of the Company
is required to make judgements, estimates
and assumptions about the carrying amounts
of assets and liabilities that are not readily
apparent from other sources. The estimates
and associated assumptions are based on
historical experience and other factors that are
considered to be relevant. Actual results may
differ from these estimates.

The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the
period in which the estimate is revised if the
revision affects only that period or in the period
of the revision and future periods if the revision
affects both current and future periods.

The following are the areas of estimation
uncertainty and critical judgements that the
management has made in the process of
applying the Company''s accounting policies
and that have the most significant effect
on the amounts recognised in the financial
statements:

a. Useful lives of depreciable tangible assets

Management reviews the useful lives of
depreciable/amortisable assets at each
reporting date.

b. Fair Value measurements and valuation
processes

Some of the Company''s assets and liabilities
are measured at fair value for financial
reporting purposes.

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

i) In the principal market for the asset or
liability, or

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

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

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

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

The Company uses valuation techniques
that are appropriate in the circumstances
and for which sufficient data are available
to measure fair value, maximising the use of
relevant observable inputs and minimising
the use of unobservable inputs.

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

Level 1 financial instruments - Those
financial instruments where the inputs used
in the valuation are unadjusted quoted
prices from active markets for identical

assets or liabilities that the Company has
access to at the measurement date. The
Company considers markets as active only
if there are sufficient trading activities with
regards to the volume and liquidity of the
identical assets or liabilities and when there
are binding and exercisable price quotes
available on the balance sheet date.

Level 2 financial instruments - Those
financial instruments where the inputs that
are used for valuation and are significant,
are derived from directly or indirectly
observable market data available over the
entire period of the instrument''s life. Such
inputs include quoted prices for similar
assets or liabilities in active markets, quoted
prices for identical instruments in inactive
markets and observable inputs other than
quoted prices such as interest rates and
yield curves, implied volatilities, and credit
spreads. In addition, adjustments may be
required for the condition or location of
the asset or the extent to which it relates to
items that are comparable to the valued
instrument. However, if such adjustments
are based on unobservable inputs which
are significant to the entire measurement,
the Company will classify the instruments
as Level 3.

Level 3 financial instruments - Those
financial instruments that include one or
more unobservable input that is significant
to the measurement as whole.

The Company recognises transfers between
levels of the fair value hierarchy at the end
of the reporting period during which the
change has occurred. No such instances
of transfers between levels of the fair
value hierarchy were recorded during the
reporting period.

c. Contingent Liability

In ordinary course of business, the
Company faces claims by various parties.
The Company annually assesses such
claims and monitors the legal environment
on an ongoing basis, with the assistance of
external legal counsel, wherever necessary.
The Company records a liability for any
claims where a potential loss probable and

capable of being estimated and discloses
such matters in its financial statements,
if material. For potential losses that are
considered possible, but not probable,
the Company provides disclosures in the
financial statements but does not record a
liability in its financial statements unless the
loss becomes probable.

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.

Impairment of non-financial assets,
wherever applicable

The Company assesses at each balance
sheet date whether there is any indication
that non-financial asset may be impaired
due to events or changes in circumstances
indicating that their carrying amounts may
not be realised. If any such indication exists,
the Company estimates the recoverable
amount of the asset. If such recoverable
amount of the asset is less than its carrying

amount, the carrying amount is reduced
to its recoverable amount. The reduction
is treated as an impairment loss and is
recognised in the statement of profit and
loss. If at the balance sheet date there is
an indication that a previously assessed
impairment loss no longer exists, the
recoverable amount is reassessed and the
asset is reflected at the revised recoverable
amount, subject to maximum of the
depreciated historical cost.

e. Tax

The Company''s tax charge is the sum of
the total current and deferred tax charges.
The calculation of the Company''s 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 contingencies 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
recognised.

(f) Split of Shares

The Board of Directors of the Company at their meeting held on 7^th August, 2024 had considered and
approved sub-division/Split of each equity share having a face value of '' 5/- fully paid up into five equity
shares of the face value of '' l/- each and the same has been approved by the shareholders of the
Company at the Annual General Meeting held on 30^th September, 2024. Further, the Board of Directors of the
Company at their meeting held on 10^th October, 2024 has intimated the Record date i.e. 30^th October, 2024
from which equity shares of face value '' 5/- (Rupees Five only) each of the Company existing on the record
date shall stand sub-divided into five equity shares of face value '' 1/- (Rupees one only) each fully paid.

As a result of sub-division/Split, 2,24,53,200 equity shares of '' 5/- each have been sub-divided/split into
11,22,66,000 equity shares of Re. 1/- each.

(g) Conversion of Warrants

The Board of Directors of the Company at their meeting held on 26^th June, 2024 has considered and
approved the allotment of 3,12,500 Equity Shares of face value of '' 5/-. Further, the Board of Directors of
the Company at their meeting held on 20^th August, 2024 has considered and approved the allotment of
3,87,500 Equity Shares of face value of '' 5/-.

The management assessed that cash and cash equivalents and bank balances, loans and advances, 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 carrying amount and fair
value of bank deposits, other financial assets, other financial liabilities and borrowings subsequently measured
at amortised cost is not significant in each of the year presented.

39.2 Fair value hierarchy

The fair value of financial instruments have been classified into three categories depending on the inputs
used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets
for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3
measurements)

Level 1:

Quoted prices in an active market: This level of hierarchy includes financial instruments that are measured by
reference to quoted prices (unadjusted) in active markets for identical instruments.

Level 2:

Valuation techniques with observable inputs: This level of hierarchy includes financial assets and liabilities,
measured using inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3:

Valuation techniques with unobservable inputs: This level of hierarchy includes instruments measured using
inputs that are not based on observable market data (unobservable inputs). Fair value is determined in whole
or in part, using a valuation model based on assumptions that are neither supported by prices from observable
current market transactions in the same instruments nor based on available market data.

The following table provides an analysis of financial instruments that are measured at fair value and have been
grouped into Level 1, Level 2 and Level 3 below:

The following methods and assumptions were used to estimate the fair values:

Quoted equity investments: Fair value is derived from quoted market prices in active markets.

Unquoted equity investments: Fair value is derived on the basis of net asset value approach, in this approach
the net asset value is used to capture the fair value of these investments.

Quoted mutual funds: Fair value is determined by reference to quotes from the financial institutions, i.e. net
asset value (nav) for mutual fund declared by mutual fund house.

Unquoted debentures/other funds: Fair value is determined by reference to quotes from fund houses/portfolio
management services companies/on market basis.

39.3 Financial Risk Management

This note explains the risk which company is exposed to and policies and framework adopted by the Company
to manage these risks.

The Company''s activities expose it mainly to the market risk, credit risk and liquidity risk.

The monitoring and management of such risks is undertaken by the senior management of the Company. There
are appropriate policies and procedures in place through which such financial risks are identified, measured
and managed by the Company. The Audit Committee and the Board are regularly apprised of these risks and
measures used to mitigation these risks.

a. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of adverse changes in market rates and prices such as currency risk, interest rate risk, other price risk etc.

(i) Currency Risk

Currently company does not have transaction in foreign currencies and hence the Company is not
exposed to currency risk

(ii) Interest rate risk

Since the Company does not have any significant financial assets or financial liabilities bearing floating
interest rates, any change in interest rates would not have any significant impact on the financial
statements of the Company.

(iii) Price Risk

The Company is exposed to price risk arising from investments held by the Company and classified
in the balance sheet either as at fair value through profit or loss or at fair value through other
comprehensive income. To manage its price risk arising from investments, the Company diversifies its
portfolio in equity, debt, money market and other instruments (including through funds). The Company
also has strategic asset allocation benchmarks and risk limits.

Sensitivity analysis

The paragraph below summaries the impact of increase/decrease in the prices of investments held
at the end of the year on the Company''s profit and other comprehensive income for the year. The
analysis is based on the assumption that prices of investments are increased or decreased by 5% with
all other variables held constant:

(i) In respect of investments measured at fair value through other comprehensive income, other
comprehensive income for the year ended 31^st March, 2025 would have been increased/
decreased by '' 226.97 million (31^st March, 2024: 167.02 million) as a result of the changes in prices
of investments.

b. Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its
contractual obligations.

Financial instruments that are subject to concentrations of credit risk principally consist of receivables,
cash and cash equivalents, bank deposits, investments in debentures, mutual funds & other funds and
other financial assets.

The maximum exposure to credit risk was '' 2126.02 million and '' 1761.82 million, as at 31^st March, 2025 and 31^st
March, 2024 respectively, being the total carrying value of loans and advances, cash and cash equivalents,
balances with bank, investments (excluding equity investments) and other financial assets.

To manage the credit risk, the credit worthiness of the receivables is evaluated on an ongoing basis and
investment is made only after considering counterparty risks based on multiple criteria including Tier I
capital, Capital Adequacy Ratio, Credit Rating, Profitability, NPA levels and deposit base of banks and financial
institutions etc. These risks are monitored regularly as per its risk management programme.

As at the end of the reporting period, all the investments have been fair valued and receivables, bank
balances and other financial assets are considered to be good.

c. Liquidity Risk

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

The table below provides details regarding the contractual maturities of financial liabilities including
estimated interest payments as at:

NOTE 41 ADDITIONAL REGULATORY INFORMATION AS PER DIVISION III SCHEDULE III OF COMPANIES ACT, 2013

a) No funds have been advanced or loaned or invested by the Company to or in any other persons or
entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

c) The Company does not have any long-term contracts including derivative contracts for which there are
any material foreseeable losses.

d) There were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Company.

e) 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).

f) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.

g) During the year, the Company has not entered into any transactions with companies struck off under
section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

h) There are no transactions which have not been recorded in the books of accounts and which have been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961.

i) During the current year the Company has not traded or invested in Crypto currency or Virtual Currency
NOTE 42

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current
year''s classification/disclosure.

As per our Report of even date

For Bhushan Aggarwal & Co. For and on behalf of the Board

Chartered Accountants
FRN: 005362N

Sd/- Sd/- Sd/-

Shashi Bhushan Rajinder Kumar Singhania Harjeet Singh Arora

Proprietor Director Managing Director

Membership Number 084005 DIN-00077540 DIN-00063176

Sd/- Sd/-

Place: Ludhiana Sunil Kumar Vikas Gupta

Date: 29^th May, 2025 Chief Financial Officer Company Secretary

---

Mar 31, 2024

l. Provisions and contingent liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as on asset if it is virtually certain that reimbursements will be received and amount of the receivable can be measured reliably.

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. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

m. Leases

Where the Company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased asset are classified as operating leases. Operating lease payments are recognised as an expense in the Statement of profit and loss.

Where the Company is the lessor

Lease income is recognised in the Statement of profit and loss as per contractual rental unless another systematic basis is more representative of the time pattern in which the benefit derived from the leased asset is diminished.

n. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash on hand, cheques and drafts on hand, balance with banks in current accounts and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of change in value.

o. Earning 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. Exceptional items

In certain occasions, the size, type, or incidences of the item of income or expenses pertaining to the ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the Company, Such income or expenses are classified as an exceptional item and accordingly, disclosed in the financial statements.

q. Significant accounting judgements, estimates and assumptions

In the application of the Company''s accounting policies, which are described as stated above, the Directors of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only the period of the revision and future periods if the revision affects both current and future periods.

Key sources of uncertainty

I n the application of the Company accounting policies, the management of the Company is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the areas of estimation uncertainty and critical judgements that the management has made in the process of applying the Company''s accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

a. Useful lives of depreciable tangible assets

Management reviews the useful lives of depreciable/amortisable assets at each reporting date.

b. Fair Value measurements and valuation processes

Some of the Company''s assets and liabilities are measured at fair value for financial reporting purposes.

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

i) In the principal market for the asset or liability, or

ii) I n the absence of a principal market, in the most advantageous market for the asset or liability

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

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

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

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

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

Level 1 financial instruments - Those financial instruments where the inputs used in the valuation are unadjusted quoted prices from active markets for identical assets or liabilities that the Company has access to at the measurement date. The Company considers markets as active only if there are sufficient trading activities with regards to the volume and liquidity of the identical assets or liabilities and when there are binding and exercisable price quotes available on the balance sheet date.

Level 2 financial instruments - Those financial instruments where the inputs that are used for valuation and are significant, are derived from directly or indirectly observable market data available over the entire period of the instrument''s life. Such inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical instruments in inactive markets and observable inputs other than quoted prices such as interest rates and yield curves, implied volatilities, and credit spreads. In addition, adjustments may be required for the condition or location of the asset or the extent to which it relates to items that are comparable to the valued instrument. However, if such adjustments are based on unobservable inputs which are significant to the entire measurement, the Company will classify the instruments as Level 3.

Level 3 financial instruments - Those financial instruments that include one or more unobservable input that is significant to the measurement as whole.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. No such instances of transfers between levels of the fair value hierarchy were recorded during the reporting period.

c. Contingent Liability

In ordinary course of business, the

Company faces claims by various parties.

The Company annually assesses such

claims and monitors the legal environment

on an ongoing basis, with the assistance of external legal counsel, wherever necessary. The Company records a liability for any claims where a potential loss probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosures in the financial statements but does not record a liability in its financial statements unless the loss becomes probable.

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.

Impairment of non-financial assets, wherever applicable

The Company assesses at each balance sheet date whether there is any indication that non-financial asset may be impaired due to events or changes in circumstances indicating that their carrying amounts may not be realised. If any such indication exists, the Company estimates the recoverable

amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the revised recoverable amount, subject to maximum of the depreciated historical cost.

e. Tax

The Company''s tax charge is the sum of the total current and deferred tax charges. The calculation of the Company''s 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 contingencies require management to make judgments and estimates in relation to tax related issues and exposures.

T he 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 recognised.

NOTE 29 - CONTINGENT LIABILITIES

a. The Company has given Corporate Guarantee to Banks for securing the sanctioned Bank Guarantees limits of '' 5,700.00 million out of which availed '' 4,729.25 million (As at 31^st March, 2023: '' 4,850.00 million out of which availed '' 3,849.25 million) on behalf of Master Capital Services Limited a wholly owned subsidiary company.

b. The Company has other small litigations which have arisen in ordinary course of business with the clients. The Company has reviewed the impact of all such litigations on Financial Position. In view of the management and the legal advice sought, no provision is required to be made in case of litigation against/ by the Company . Therefore, provision for the same has not been provided in books of accounts.

c. Claims against the Company, not acknowledged as debts in respect of income tax matters amounted to '' 17.55 million (As at 31^st March, 2023: '' 17.55 million), out of which '' 17.55 million (As at 31^st March, 2023: '' 14.35 million) has been deposited/adjusted with the refunds by the income tax department.

NOTE 30 - DISCLOSURE AS PER INDIAN ACCOUNTING STANDARD (iND AS) 108 "OPERATING SEGMENTS"

a) Operating Segments

Management currently identifies the Company''s two service lines as its Operating Segments as follows:-

(i) Segment - Interest

(ii) Segment - Investment/Trading in Securities & others

b) Segment Revenue & Expenses

Revenue & Expenses directly attributable to the segment is considered as "Segment Revenue & "Segment Expenses"

c) Segment Assets & Liabilities

Segment Assets & Liabilities include the respective directly identifiable to each of the segments.

These Operating Segments are monitored by the Company''s chief operating decision maker and strategic decisions are made on the basis of segment Operating Results. Segment performance is evaluated based on the profit of each segment.

38.2 Fair value hierarchy

The fair value of financial instruments have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements)

Level 1:

Quoted prices in an active market: This level of hierarchy includes financial instruments that are measured by reference to quoted prices (unadjusted) in active markets for identical instruments.

Level 2:

Valuation techniques with observable inputs: This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)

Level 3:

Valuation techniques with unobservable inputs: This level of hierarchy includes instruments measured using inputs that are not based on observable market data (unobservable inputs). Fair value is determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data.

38.3 Financial Risk Management

This note explains the risk which company is exposed to and policies and framework adopted by the Company to manage these risks.

The Company''s activities expose it mainly to the market risk, credit risk and liquidity risk.

The monitoring and management of such risks is undertaken by the senior management of the Company. There are appropriate policies and procedures in place through which such financial risks are identified, measured and managed by the Company. The Audit Committee and the Board are regularly apprised of these risks and measures used to mitigation these risks.

a. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of adverse changes in market rates and prices such as currency risk, interest rate risk, other price risk etc.

(i) Currency Risk

Currently company does not have transaction in foreign currencies and hence the Company is not exposed to currency risk.

(ii) Interest rate risk

Since the Company does not have any significant financial assets or financial liabilities bearing floating interest rates, any change in interest rates would not have any significant impact on the

financial statements of the Company.

(iii) Price Risk

The Company is exposed to price risk arising from investments held by the Company and classified in the balance sheet either as at fair value through profit or loss or at fair value through other comprehensive income. To manage its price risk arising from investments, the Company diversifies its portfolio in equity, debt, money market and other instruments (including through funds). The Company also has strategic asset allocation benchmarks and risk limits.

Sensitivity analysis

The paragraph below summaries the impact of increase/decrease in the prices of investments held at the end of the year on the Company''s profit and other comprehensive income for the year. The analysis is based on the assumption that prices of investments are increased or decreased by 5% with all other variables held constant:

(i) In respect of investments measured at fair value through other comprehensive income, other comprehensive income for the year ended 31^st March, 2024 would have been increased/ decreased by '' 167.02 million (31^st March, 2023: 126.66 million) as a result of the changes in prices of investments.

b. Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.

Financial instruments that are subject to concentrations of credit risk principally consist of receivables, cash and cash equivalents, bank deposits, investments in debentures, mutual funds & other funds and other financial assets.

The maximum exposure to credit risk was '' 1,761.82 million and '' 1,063.45 million, as at 31^st March, 2024 and 31^st March, 2023 respectively, being the total carrying value of loans and advances, cash and cash equivalents, balances with bank, investments (excluding equity investments) and other financial assets.

To manage the credit risk, the credit worthiness of the receivables is evaluated on an ongoing basis and investment is made only after considering counterparty risks based on multiple criteria including Tier I capital, Capital Adequacy Ratio, Credit Rating, Profitability, NPA levels and deposit base of banks and financial institutions etc. These risks are monitored regularly as per its risk management program.

As at the end of the reporting period, all the investments have been fair valued and receivables, bank balances and other financial assets are considered to be good.

c. Liquidity Risk

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

NOTE 40 - ADDITIONAL REGULATORY INFORMATION AS PER DIVISION III SCHEDULE III OF COMPANIES ACT, 2013

a) No funds have been advanced or loaned or invested by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

c) The Company does not have any long-term contracts including derivative contracts for which there are any material foreseeable losses.

d) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

e) 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).

f) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.

g) During the year, the Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

h) There are no transactions which have not been recorded in the books of accounts and which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

i) During the current year the Company has not traded or invested in Crypto currency or Virtual Currency.

j) Section 135 of the Companies Act, 2013 pertaining to Corporate Social Responsibility is not applicable to the Company.

NOTE 41

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current

year''s classification / disclosure.

As per our Report of even date

For C.S. Arora & Associates For and on behalf of the Board

Chartered Accountants

FRN 015130N

Sd/- Sd/- Sd/-

Chanchal Singh Rajinder Kumar Singhania Harjeet Singh Arora

Partner Director Managing Director

Membership Number 090835 DIN-00077540 DIN-00063176

Sd/- Sd/-

Place: Ludhiana Sunil Kumar Vikas Gupta

Date: 30^th May, 2024 Chief Financial Officer Company Secretary

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Mar 31, 2023

(a) Terms/rights attached to equity shares

The company has one class of shares referred to as Equity Shares having a par value of Rs. 5/- each. Each holder of equity shares is entitled to one vote per share.

(b) Shares held by holding company or ultimate holding company or subsidiaries or associates of the holding company or the ultimate holding company.

There is no holding or ultimate holding company ofthe Company.

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources(if any). For the purpose of calculating the diluted earnings per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

Note 28

Disclosures, relating to amounts unpaid as at the year end together with interest required under the Micro, Small and Medium Enterprises Development Act, 2006 have been given to the extent company has received intimation from “Suppliers” regarding their status under the said Act.

Note 29 Disclosure as per Indian Accounting Standard (Ind AS) 108 "Operating Segments”

a) Operating Segments

Management currently identifies the Company’s two service lines as its Operating Segments as follows:-

(i) Segment-Interest

(ii) Segment- Investment/Trading in Securities & others

b) Segment Revenue & Expenses

Revenue & Expenses directly attributable to the segment is considered as “Segment Revenue & “Segment Expenses”

c) Segment Assets & Liabilities

Segment Assets & Liabilities include the respective directly identifiable to each ofthe segments.

These Operating Segments are monitored by the Company’s chief operating decision maker and strategic decisions are made on the basis of segment Operating Results. Segment performance is evaluated based on the profit of each segment.

a. The Company has given Corporate Guarantee to Banks for securing the sanctioned Bank Guarantees limits of ?4850.00 Million out of which availed ?3849.25 Million (As at 31st March, 2022: ?2000.00 Million out of which availed ^1995.50 Million) on behalf of Master Capital Services Limited a wholly owned subsidiary company.

b. The Company has other small litigations which have arisen in ordinary course of business with the clients. The Company has reviewed the impact of all such litigations on Financial Position. In view of the management and the legal advice sought, no provision is required to be made in case of litigation against/by the company. Therefore, provision for the same has not been provided in books of accounts.

Note 32 Employee Benefits

The Company provides for the gratuity, covering qualifying employees . The plan provides for lump sum payments to employees upon death while in employment or on separation from employment after serving for the stipulated period mentioned under The Payment of Gratuity Act, 1972.

Sensitivity Analysis: Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

T As defined In point xix of paragraph 3 of Chapter -2 ofthese Directions.

2. Provisioning norms shall be applicable as prescribed in these directions.

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up / fair value / NAV in respect of unquoted investments are disclosed irrespective of whether they are classified as long term or current in (5) above.

Note 34 ADDITIONAL REGULATORY INFORMATION AS PER DIVISION III SCHEDULE III OF COMPANIES ACT, 2013

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

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

c) The Company does not have any long-term contracts including derivative contracts for which there are any material forseeable losses.

d) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

e) No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act,1988 (45 ofl988).

f) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.

g) During the year, the company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

h) There are no transactions which have not been recorded in the books of accounts and which have been surrendered or disclosed as income during theyear in the tax assessments under the Income Tax Act, 1961.

Note 36

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2018

1. Corporate Information-

Master Trust Limited (''the Company'') is a public limited company domiciled in India and incorporated under the provision of the Companies Act, 1956. The Company was registered as a non-deposit accepting Non Banking Financial Company CNBFC-ND'') with the Reserve Bank of India (''RBI''). Its shares are listed on Bombay Stock Exchange (BSE) in India.

The company is mainly in the business of lending, sales/purchases of Securities and lands.

2.1 The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share.

3.1 Unclaimed dividends do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

a. The Company has given Corporate Guarantee to Banks for securing the sanctioned Bank Guarantees limits of Rs.500.00 Million out of which availed Rs.2.50 Million (As at 31 March, 2017: Rs. 720.00 Million out of which availed Rs. 185.00 Million) on behalf of Master Capital Services Limited a wholly owned subsidiary company and Rs.200.00 Million out of which availed Rs.7.00 Million (As at 31 March, 2017: Rs.210.00 Million out of which availed Rs.67.00 Million) on behalf of Master Commodity Services Limited a subsidiary company.

b. "As per an Ex-Parte Ad- Interim Order number WTM/RKA/ISD/162/2014 dated 19 December, 2014 by SEBI in the matter of First Financial Services Limited, Master Trust Limited amongst others, was restrained from accessing the securities market and buying, selling or dealing in securities, either directly or indirectly, in any manner, till farther directions. The Order had affected one of its activity i.e. trading/investment in securities till further directions.

The SEBI had further issued confirmatory Ad-interim order WTM/RKA/ISD/113/2016 dated 25 August 2016 confirming the aforesaid Ex-Parte Ad-Interim Order and had given interim/additional reliefs to the entities.

Subsequent to the interim orders, an investigation was carried out to look into the role of debarred entities in price manipulation the FFSL. Upon completion of investigation, violation of provisions of SEBI Act, 1992 (SEBI Act) and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (PFUTP Regulations) are not observed in respect of our company against which directions were issued vide the interim orders. As per the order number WTM/SR/SEBI/EFD-DRA3/ 71/09/2017 dated SEPTEMBER 06,2017 by SEBI the directions issued earlier vide interim orders need not be continued and hence revoked with immediate effect."

c. The Company has other small litigations which have arisen in ordinary course of business with the clients. The Company has reviewed the impact of all such litigations on Financial Position. In view of the management and the legal advice sought, no provision is required to be made in case of litigation against/by the company. Therefore, provision for the same has not been provided in books of accounts.

Note 4.

Disclosures, relating to amounts unpaid as at the year end together with interest required under the Micro, Small and Medium Enterprises Development Act, 2006 have been given to the extent company has received intimation from “Suppliers” regarding their status under the said Act.

Note 5.

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.

Note 6. Computation of Earnings Per Share (EPS)

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources(if any). For the purpose of calculating the diluted earnings per share, the net profit or loss for the period attributable to the equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

Notes:7.

1. As defined in paragraph 3(xv) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions 2016.

2. Provisioning norms shall be applicable as prescribed in Non-Banking Financial Company Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016.

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in (5) above.

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2016

Note 1 Contingent liabilities

(a) The Company has given Corporate Guarantee to Banks for securing the sanctioned Bank Guarantees limits of Rs,720.00 Million out of which availed Rs,293.88 Million (As at 31^st March, 2015: Rs, 720.00 Million out of which availed Rs,345.00 Million) on behalf of Master Capital Services Limited a wholly owned subsidiary company and Rs,210.00 Million out of which availed Rs,135.25 Million (As at 31^st March, 2015: Rs,350.00 Million out of which availed Rs,105.25 Million) on behalf of Master Commodity Services Limited a subsidiary company.

(b) As per an Ex-Parte Ad- Interim Order number WTM/RKA/ISD/162/2014 dated 19^th December, 2014 by SEBI in the matter of First Financial Services Limited, Master Trust Limited amongst others, has been restrained from accessing the securities market and buying, selling or dealing in securities, either directly or indirectly, in any manner, till further directions. The Order has affected one of its activity i.e. trading/investment in securities till further directions.

The order is being contested by the company and is sub-judice. However, no significant or material orders have been passed by the regulators or courts or tribunals during the year. In the view of the management and as per the legal advice, no liability is likely to arise. Even, the amount of liability, if any, is indeterminate. Accordingly, no liability has been provided for.

(c) The Company has other small litigations which have arisen in ordinary course of business with the clients. The Company has reviewed the impact of all such litigations on Financial Position. In view of the management and the legal advice sought, no provision is required to be made in case of litigation against/by the company .Therefore, provision for the same has not been provided in books of accounts.

Note 2

The Punjab State Industrial Development Corporation Limited (PSIDC) had contributed Rs,8.85 Million in 8,85,000 equity shares in the capital of Prime Industries Limited @ Rs,10/- per share, as Direct Equity Participation in 1993. The Company as an associate promoter of Prime Industries Limited, pledged 5,69,300 shares (As at 31^st March, 2015: 5,69,300 shares) of Prime Industries Limited of Rs,10/- each amounting to Rs,5.69 Million (As at 31^st March, 2015: Rs,5.69 Million) to PSIDC . The Company had also subscribed to the undertaking for buy back of the shares subscribed by PSIDC as referred above. The Government of Punjab had notified one time settlement scheme (OTS) vide notification number 15/03/09-AS-6/400 Dated 2^nd March, 2009. A sum of Rs,25.38 Million (As at 31^st March, 2015 Rs,25.10 Million) shown as loans and advances recoverable in cash and/or kind has already been paid as per the amount demanded by the PSIDC in this respect. The matter now has been settled vide Hon''ble Punjab & Haryana High Court''s Order dated 19.05.2015 with no further liability against the said shares. However, as the Company vide SEBI''s Order dated 19.12.2014 has been restrained to buy, sell or otherwise deal in Equity Shares therefore the Company had applied to SEBI to allow release of 5,69,300 shares pledged to PSIDC and also allow for transfer of 8,85,000 shares purchased by the Company under the buyback undertaking. Therefore, the shares so pledged shall be released to the Company by PSIDC on the adjudication of the matter by SEBI.

Note 3

Disclosures, relating to amounts unpaid as at the yearend together with interest required under the Micro, Small and Medium Enterprises Development Act, 2006 have been given to the extent company has received intimation from “Suppliers” regarding their status under the said Act.

Note 4

As per Accounting Standard (AS) 17 on "Segment Reporting”, segment information has been provided under the Notes to Consolidated Financial Statements.

Notes:

5. As defined in paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

6. Provisioning norms shall be applicable as prescribed in Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015.

7. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in (4) above.

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Mar 31, 2015

1. Corporate Information

Master Trust Limited ('the Company') is a public limited company domiciled in India and incorporated under the provision of the Companies Act, 1956. The Company was registered as a Non-Deposit Accepting Non Banking Financial Company ('NBFC-ND') with the Reserve Bank of India ('RBI'). Its shares are listed on Bombay Stock Exchange (BSE) in India.

The company is mainly in the business of lending, sales/purchases of Securities and lands.

Note 2 Contingent liabilities

(a) The Punjab State Industrial Development Corporation Limited (PSIDC) had contributed Rs.8.85 Million in the equity share capital of Prime Industries Ltd @ Rs.10/- per share, as Direct Equity Participation in 1993. The Company as an associate promoter of Prime Industries Ltd. , pledged 569300 shares (Previous year 569300 shares) of Prime Industries Ltd of Rs.10/- each amounting to Rs.5.69 Million (Previous Year Rs.5.69 Million) to PSIDC along with irrevocable power of attorney. The Company had also subscribed to the undertaking for buy back of the shares subscribed by PSIDC as referred above. As per the terms of undertaking for buy back of the shares, the promoters were to buy the said shares at the face value along with interest applicable to term financing before the expiring of seven years from the date of commencement of commercial production i.e.4th April, 1994. As per the terms of the above referred undertaking, in case the promoters/associates did not buy back the shares subscribed by PSIDC, then the PSIDC was entitled to sell the shares subscribed by it and also recovers the loss if any by sale of the above referred shares pledged to the PSIDC. The PSIDC had announced OTS Policy for equity disinvestment. The promoters / associates have applied for buy back of shares under OTS policy, subject to their rights under the law to adjudicate upon the amount due under the buy back agreement. However the government of Punjab has amended the one time settlement scheme whereby the profit making companies are not eligible for the OTS scheme as per industrial policy 2003. The PSIDC vide letter dated 29 April, 2009 had illegally withdrawn the OTS in case of Prime Industries Limited. The Government of Punjab has Further notified a new one time settlement scheme (OTS) vide notification number 15/03/09-AS-6/400 Dated 2ndMarch, 2009. The promoters/associates being eligible even under the new OTS policy also applied for buy back of shares. The request of promoters/associates was not accepted by PSIDC despite the fact that a sum of Rs.25.10 Million (previous year Rs.25.10 Million) shown as loans and advances recoverable in cash and/or kind has already been paid as per the amount demanded by the PSIDC in this respect. PSIDC has filled a case for further recovery of Rs.35.13 Million before Honorable Debts Recovery Tribunal.

Rejection of the PSIDC was challenged by the promoters/associates In the High Court of Punjab and Haryana at Chandigarh in Civil Writ Petiton No. 6436 of 2011 and The Hon'ble Hight Court has decided the case in favour of promoters/associates vide order dated 10th October, 2014 and has held that the rejection order dated 3rd December, 2010 issued by PSIDC is quashed and the Company is entitled to the benefit of new OTS Policy-2009 and if the amount paid already in excess, the amount held in excess is directed to be repaid with interest @ 12 % p.a.

However consequent to correspondence and discussions between the PSIDC and the promoters/associates of Prime Industries Ltd, in order to avoid long drawn litigation the promoters/associates have agreed that they will not claim the refund of excess amount paid already with interest @ 12 % p.a as per the order of the Honorable Punjab & Haryana High Court and the Board of Directors of PSIDC in its meeting held on 10th February, 2015 has decided that the amount already paid shall be treated as full and final payment of the dues. Further, the parties have arrived upon a Mutual Settlement before the Honorable Punjab & Haryana High Court vide its Order dated 19th May, 2015.

As per the terms of Mutual Settlement, the promoters of Prime Industries Ltd including Master Trust Ltd stand absolved of all their liabilities/obligations under the direct subscription agreement dated 14th September,1993 and undertaking for buy back of shares dated 14 September,1993 in respect of direct subscription of equity shares of Prime Industries Ltd. As per the terms of the mutual settlement, PSIDC has agreed to withdraw its OA No. 164/2009 filed before Debts Recovery Tribunal, Chandigarh. The shares pledged with PSIDC have also been agreed to be released and the shares subscribed by PSIDC shall be transferred as per the terms of the settlement/compromise as per the order of the Honorable Punjab & Haryana High Court.

(b) The Company has given Corporate Guarantee to Banks for securing the Bank Guarantees limits of Rs.720.00 Million (As at 31st March, 2014: Rs. 620.00 Million) on behalf of Master Capital Services Ltd. a wholly owned subsidiary company and Rs.350.00 Million (As at 31st March, 2014: Rs. 400.00 Million) on behalf of Master Commodity Services Ltd a subsidiary company.

(c) As per an Ex-Parte Ad- Interim Order number WTM/RKA/ISD/162/2014 dated 19th December, 2014 by SEBI in the matter of First Financial Services Limited, Master Trust Limited amongst others, has been restrained from accessing the securities market and buying, selling or dealing in securities, either directly or indirectly, in any manner, till further directions. The Order has affected one of its activity i.e. trading/investment in securities till further directions.

The order is being contested by the company and is sub- judice. In the view of the management and as per the legal advice, no liability is likely to arise. Even, the amount of liability, if any, is indeterminate. Accordingly, no liability has been provided for.

Note 3

Disclosures, relating to amounts unpaid as at the year end together with interest required under the Micro, Small and Medium Enterprises Development Act, 2006 have been given to the extent company has received intimation from "Suppliers" regarding their status under the said Act.

Note 24

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.

Note 4

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2014

Note 1 Contingent liabilities

(a) "The Punjab State Industrial Development Corporation Limited (PSIDC) had contributed Rs.8.85 mn in the equity share capital of Prime Industries Ltd @ Rs.10/- per share, as Direct Equity Participation in 1993. The Company as an associate promoter of Prime Industries Ltd. ,pledged 569300 shares (Previous year 569300 shares) of Prime Industries Ltd of Rs.10/- each amounting to Rs.5.69 mn (Previous Year Rs.5.69 mn) to PSIDC along with irrevocable power of attorney. The Company has also subscribed to the undertaking for buy back of the shares subscribed by PSIDC as referred above. As per the terms of undertaking for buy back of the shares, the promoters are to buy the said shares at the face value along with interest applicable to terms financing before the expiring of seven years from the date of commencement of commercial production i.e.4th April, 1994. As per the term of the above referred undertaking, in case the promoters/associates do not buy back the shares subscribed by PSIDC, then the PSIDC is entitled to sell the shares subscribed by it and also recovers the loss if any by sale of the above referred shares pledged to the PSIDC. The PSIDC had announced OTS Policy for equity disinvestment. The promoters / associates have applied for buy back of shares under OTS policy, subject to their rights under the law to adjudicate upon the amount due under the buy back agreement However the government of Punjab has amended the one time settlement scheme whereby the profit making companies are not eligible for the OTS scheme as per industrial policy 2003. The PSIDC vide letter dated 29th April, 2009 has illegally withdrawn the OTS in case of Prime Industries Limited and the matter is sub judice before Honorable Punjab & Haryana High Court. The Government of Punjab has Further notified a new one time settlement scheme (OTS) vide notification number 15/03/09-AS-6/400 Dated 2nd March, 2009. The promoters/associates being eligible even under the new OTS policy also, have apply for buy back of shares. The request of promoters/associates has not been accepted by PSIDC and the matter is sub judice before Honorable Punjab & Haryana High Court, a sum of Rs.25.10 mn (previous year Rs.25.10 mn) shown as loans and advances to others has been paid as per the amount demanded by the PSIDC in this respect. However PSIDC has filled a case for further recovery of Rs.35.13 mn before Honorable Debts Recovery Tribunal."

(b) The Company has given Corporate Guarantee to Banks for securing the Bank Guarantees limits of Rs.620.00 mn (As at 31st March, 2013: Rs. 620.00 mn) on behalf of Master Capital Services Ltd. a wholly owned subsidiary company and Rs.400.00 mn (As at 31st March, 2013: Rs.500.00mn) on behalf of Master Commodity Services Ltd a subsidiary company.

Note 2

Disclosures, relating to amounts unpaid as at the year end together with interest required under the Micro, Small and Medium Enterprises Development Act, 2006 have been given to the extent company has received intimation from "Suppliers" regarding their status under the said Act.

Note 3

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.

Note 4

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

Note 5 Related Party Disclosures

As required by AS-18, Related Party Disclosures, are given below:

Subsidiaries

Master Capital Services Ltd.

Master Infrastructure & Real Estate Developers Ltd.

Master Insurance Brokers Ltd

Master Commodity Services Ltd

Master Portfolio Services Ltd.

H.A. Share & Stock Brokers Ltd.

Associates/Enterprises owned or

significantly influenced by the

key Management Persons or

their Relatives

Prime Industries Ltd.

Master Share & Stock Brokers Ltd.

H.K Arora Real Estate Service Ltd

Sanawar Investments

PHDA Financial Services (P) Ltd.

Saintco India (P) Ltd.

Singhania Properties.

Partnership Firms

Key Management Personnel and their Relatives

Mr. Harjeet Singh Arora

Mr. R K Singhania

Mr. G S Chawla

Mr. Sanjay Sood

Mr. Pavan Chhabra

Mrs. Harneesh Kaur Arora

Mr. Ashwani Kumar

Mr. Anil Kumar Bhatiya

Mr. Sudhir Kumar

Mrs. Parveen Singhania

Mr. Puneet Singhania

Mr. Chirag Singhania

Mrs. Palka A Chopra

Mr. Jashanjyot Singh

Note 6

The Company''s domestic subsidiary Master Capital Services Limited has declared dividend of Rs. 5.90 mn (Previous Year Rs. 5.90 mn) is receivable by the Company in respect of which dividend distribution tax would be paid by the subsidiary. In terms of provision of sub section 1A of section 115 O of the Income Tax Act, 1961 dividend distribution tax is payable by the company on the amount being excess of dividend proposed by the company over the dividend receivable by the company from its subsidiary.

Note 7

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

Notes:

1. As defined in paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in (4) above.

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Mar 31, 2013

Note 1 Contingent liabilities

(a) The Punjab State Industrial Development Corporation Limited (PSIDC) had contributed Rs.8.85 mn in the equity share capital of Prime Industries Ltd @ Rs.10/- per share, as Direct Equity Participation in 1993. The Company as an associate promoter of Prime Industries Ltd., pledged 569300 shares (Previous year 569300 shares) of Prime Industries Ltd of Rs.10/- each amounting to Rs.5.69 mn (Previous Year Rs.5.69 mn) to PSIDC along with irrevocable power of attorney. The Company has also subscribed to the undertaking for buy back of the shares subscribed by PSIDC as referred above. As per the terms of undertaking for buy back of the shares, the promoters are to buy the said shares at the face value along with interest applicable to terms financing before the expiring of seven years from the date of commencement of commercial production i.e.4th April, 1994. As per the term of the above referred undertaking, in case the promoters/associates do not buy back the shares subscribed by PSIDC, then the PSIDC is entitled to sell the shares subscribed by it and also recovers the loss if any by sale of the above referred shares pledged to the PSIDC. The PSIDC had announced OTS Policy for equity disinvestment. The promoters / associates have applied for buy back of shares under OTS policy, subject to their rights under the law to adjudicate upon the amount due under the buy back agreement However the government of Punjab has amended the one time settlement scheme whereby the profit making companies are not eligible for the OTS scheme as per industrial policy 2003. The PSIDC vide letter dated 29th April, 2009 has illegally withdrawn the OTS in case of Prime Industries Limited and the matter is sub judice before Honorable Punjab & Haryana High Court. The Government of Punjab has Further notified a new one time settlement scheme (OTS) vide notification number 15/03/09-AS-6/400 Dated 2nd March, 2009. The promoters/associates being eligible even under the new OTS policy also, have apply for buy back of shares. The request of promoters/associates has not been accepted by PSIDC and the matter is sub judice before Honorable Punjab & Haryana High Court, a sum of Rs.25.10 mn (previous year Rs.25.10 mn) shown as loans and advances recoverable in cash and/or kind has been paid as per the amount demanded by the PSIDC in this respect. However PSIDC has filled a case for further recovery of Rs.35.13 mn before Honorable Debts Recovery Tribunal.

(b) Bank Guarantee of US$ Nil (previous year US$ 0.05 mn) in favor of American Express Travel Related Services Company Inc. U.S.A. for traveller cheques stock limit.

(c) The Company has given Corporate Guarantee to Banks for securing the Bank Guarantees limits of Rs.620.00 mn (As at 31st March, 2012: Rs.760.00 mn) on behalf of Master Capital Services Ltd. a wholly owned subsidiary company and Rs.500.00 mn (As at 31st March, 2012: Rs.410.00mn) on behalf of Master Commodity Services Ltd a subsidiary company.

Note 2

Disclosures, relating to amounts unpaid as at the year end together with interest required under the Micro, Small and Medium Enterprises Development Act, 2006 have been given to the extent company has received intimation from "Suppliers" regarding their status under the said Act.

Note 3

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.

Note 4

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

Notes:

1. As defined in paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in (4) above.

Note 5

The Company''s domestic subsidiary Master Capital Services Limited has declared dividend of Rs.5.90 mn (Previous Year Rs.8.85 mn) is receivable by the Company in respect of which dividend distribution tax would be paid by the subsidiary. In terms of provision of sub section 1A of section 115 O of the Income Tax Act, 1961 dividend distribution tax is payable by the company on the amount being excess of dividend proposed by the company over the dividend receivable by the company from its subsidiary.

Note 6

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

1.1 The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share.

1.2 Calls in Arrears by others Nil ( As at 31 March, 2011 Rs. 560,250)

1.3 The details of shareholders holding more than 5% shares:

1.4 In terms of the approval of the Board of Directors and Shareholders of the Company and as per statutory provisions including SEBI (Issue of Capital and Disclosure Requirements), Regulation 2009, the Company on August 28 , 2010 had issued and allotted 47,75,000 Convertible Warrants on preferential basis. Each warrant provided the holder with the option to subscribe to one fully paid-up equity share of the Company for every warrant at a price of Rs. 68/- per warrant (including a premium of Rs. 58/- per warrant) within 18 months from the date of allotment.

The Company has converted 41,35,000 Convertible Warrants into Equity Shares on 14 February, 2012 (As at 31 March, 2011 640000 Convertible Warrants into Equity Shares on 28 March, 2011)of Rs. 10/- each.

2.1 Loans from banks are secured against pledging of FDRs

2.2 Secured Other loans and advances are secured against proceeds from sale of Units of Mutual Funds.

3.1 Unclaimed dividends do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

* Deposit are pledged against overdraft facility

* Includes Gratuity amounting to Rs. 217,815 ( Year ended March 31, 2011 :212,359)

Note 4 Contingent Liabilities

(a) The Punjab State Industrial Development Corporation Limited {PSI DC) had contributed Rs. 8.85 mn in the equity share capital of Prime Industries Ltd @ Rs. 10/- per share, as Direct Equity Participation in 1993. The Company as an associate promoter of Prime Industries Ltd., pledged 569300 shares (Previous year 569300 shares) of Prime Industries Ltd of Rs. 10/- each amounting to Rs. 5.69 mn (Previous Year Rs. 5.69 mn) to PSIDC along with irrevocable power of attorney. The Company has also subscribed to the undertaking for buy back of the shares subscribed by PSIDC as referred above. As per the terms of undertaking for buy back of the shares, the promoters are to buy the said shares at the face value along with interest applicable to terms financing before the expiring of seven years from the date of commencement of commercial production i.e. 04.04.1994. As per the term of the above referred undertaking, in case the promoters/associates do not buy back the shares subscribed by PSIDC, then the PSIDC is entitled to sell the shares subscribed by it and also recovers the loss if any by sale of the above referred shares pledged to the PSIDC. The PSIDC had announced OTS Policy for equity disinvestment. The promoters / associates have applied for buy back of shares under OTS policy, subject to their rights under the law to adjudicate upon the amount due under the buy back agreement However the government of Punjab has amended the one time settlement scheme whereby the profit making companies are not eligible for the OTS scheme as per industrial policy 2003. The PSIDC vide letter dated 29th April 2009 has illegally withdrawn the OTS in case of Prime Industries Limited and the matter is sub judice before Honorable Punjab & Haryana High Court. The Government of Punjab has Further notified a new one time settlement scheme (OTS) vide notification number 15/03/09-AS-6/400 Dated 02.03.2009. The promoters/associates being eligible even under the new OTS policy also, have apply for buy back of shares. The request of promoters/associates has not been accepted by PSIDC and the matter is sub judice before Honorable Punjab & Haryana High Court, a sum of Rs. 25.10 mn (previous year Rs. 25.10 mn) shown as loans and advances has been paid as per the amount demanded by the PSIDC in this respect. However PSIDC has filled a case for further recovery of Rs. 35.13 mn before Honorable Debts Recovery Tribunal.

(b) Bank Guarantee of US$ 0.05 mn (previous year US$ 0.05 mn) in favour of American Express Travel Related Services Company Inc. U.S.A. for traveler cheques stock limit.

(c) The Company has given Corporate Guarantee to Banks for securing the Bank Guarantees limits of Rs. 760.00 mn (As at 31 March, 2011: Rs. 1000.00 mn) on behalf of Master Capital Services Ltd. a wholly owned subsidiary company and Rs. 410.00 mn (previous year 490.50mn) on behalf of Master Commodity Services Ltd a subsidiary company.

Note 5

Disclosures, relating to amounts unpaid as at the yearend together with interest required under the Micro, Small and Medium Enterprises Development Act, 2006 have been given to the extent company has received intimation from "Suppliers" regarding their status under the said Act.

Note 6

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.

Note 7

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

Notes:

1. As defined in paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms(Reserve Bank) Directions, 2007

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in (4) above.

Note 8

The Company's domestic subsidiary Master Capital Services Limited has declared dividend of Rs. 8.85 mn (Previous Year Rs. 6.12 mn) is receivable by the Company in respect of which dividend distribution tax would be paid by the subsidiary. In terms of provision of sub section 1A of section 115 O of the Income Tax Act, 1961 dividend distribution tax is payable by the company on the amount being excess of dividend proposed by the company over the dividend receivable by the company from its subsidiary.

Note 9

The Company has incurred foreign exchange out go is Rs. NIL (Previous Year Rs. 0.06 mn) during the year.

Note 10

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.