Notes to Accounts of Mukesh Babu Financial Services Ltd.

Mar 31, 2025

n. Provisions, Contingent Liabilities and Contingent Assets

Contingent liabilities as defined in Ind AS 37 “Provisions, Contingent Liabilities and
Contingent Assets” are disclosed by way of notes to accounts. Provision is made if it
becomes probable that an outflow of future economic benefits will be required for an item
previously dealt with as a contingent liability.

o. Statement of Cash flow

Cash flows are reported using the indirect method, whereby the net profit before tax is
adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals
of the past or future cash receipts or payments. The cash flows from regular revenue
generating, investing & financing activities of the company are segregated.

p. Statutory Reserve and Provision of Standard Assets

A Statutory Reserve of 20% of the current profit after tax is made during the year in
pursuance of section 45-IC of the Reserve Bank of India Act, 1934.

Provision is made @ 0.40 % of Standard assets which includes secured and unsecured
loans granted to companies and other entities.

q. Prudential Norms

For the purpose of identifying the assets as non-performing assets in pursuance of Non¬
Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998, the
Company follows generally accepted accounting principles and industry practices.

r. Taxation

Current tax comprises amount of tax payable in respect of the taxable income or loss for
the year determined in accordance with Income Tax Act, 1961 and any adjustment to the
tax payable or receivable in respect of previous years. The Company’s current tax is
calculated using tax rates that have been enacted or substantively enacted by the end of the
reporting period.

Deferred tax assets and liabilities are recognized for the future tax consequences of
temporary differences between the carrying values of assets and liabilities and their
respective tax bases. Deferred tax liabilities and assets are measured at the tax rates that
are expected to apply in the period in which the liability is settled or the asset realised,
based on tax rates (and tax laws) that have been enacted or substantively enacted by the
end of the reporting period. The measurement of deferred tax liabilities and assets reflects
the tax consequence that would follow from the manner in which the Company expects, at
the end of the reporting period, to recover or settle the carrying amount of its assets and
liabilities.

Capital management

The Company has only equity capital. The Company operates as an Investment Company
and Loan Company and consequently is registered as a Non-Banking Financial Institution -
Investment and Credit Company (NBFC-ICC) with Reserve Bank of India (RBI). As per
RBI’s ‘Scale Based Regulations’ (SBR), the Company is classified as NBFC - Base Layer
(NBFC-BL).

The funds are currently invested in equity, debt, money market and other instruments or
given as loan depending on economic conditions in line with Investment Policy set by the
Management. Safety of capital is of prime importance to ensure availability of capital for
operations. Investment objective is to provide safety and adequate return on the surplus
funds.

Note 25 In the opinion of the Directors, balances in Loans and Advances & Current Assets,
Debtors and Creditors, borrowings have a value on realization of current assets in the
ordinary course of business and it would not be less than the amount at which they are
stated in the Balance sheet. According to the management, provisions for all the loans
and liabilities are adequate. Balances in Debtors, Creditors, Loans, and advances and
current assets are subject to confirmation & reconciliation.

Note 26 Auditors’ remuneration in accordance with paragraph 5A (j) of part II of Schedule III
to the Companies Act 2013 is as under:

Note 29 The Company is mainly engaged in the business of providing finance and dealing in
shares and securities. All other activities of the Company revolve around the main
business, and as such in the opinion of the management, there is no separate reportable
segment as per IND AS 108 on ‘Operating Segments’ in respect of the Company.

The Company operates in single segment only. There are no operations outside India
and hence there is no external revenue or assets which require disclosure.

Note 30 Loans and advances given to the employees and associates and for projects do not
carry any stipulation as to repayment of principal or payment of interest; and are being
repaid periodically. Accordingly, these are considered as good and not considered as
part of non-performing assets.

Note 39 The Company has a process whereby periodically all long-term contracts are assessed
for material foreseeable losses. At the year end, the Company has reviewed and
ensured that adequate provision as required under any law / accounting standards for
material foreseeable losses, including derivatives, on such long-term contracts has
been made in the books of account.

Note 40 The Company has reviewed its pending litigations and proceedings and has adequately
provided for where Provisions are required and disclosed the contingent liabilities
where applicable, in its financial statements. The Company does not expect the

Note 45 The Notes referred to in the Balance Sheet and Statement of Profit and Loss Account
form an integral part of the Accounts.

Note 46 Company do not have borrowings from Banks or financial institutions on the basis of
security of current assets, hence disclosure to that effect is not required.

Note 47 The Company does not have any benami property and no proceedings have been
initiated or are pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder.

Note 48 There have been no events after the reporting date that require disclosure in these
financial statements.

Note 49 Company do not have any transactions with companies struck off under section 248 of
Companies Act, 2013 or section 560 of Companies Act,1956, hence disclosure to that
effect is not required.

Note 50 There are no charges or satisfaction yet to be registered with Register of Companies
(ROC) beyond the statutory period.

Note 51 Company is not declared wilful defaulter by any bank, financial institution or other
lender, hence disclosure to that effect is not required.

Note 52 There is no such scheme of Arrangements has been approved by the Competent
Authority in terms of Section 230 to 237 of the Companies Act. 2013.

Note 53 Undisclosed Income

Note 54 Company has not traded or invested in Crypto Currency or Virtual Currency during the
financial year, has disclosure is not required to that effect.

Note 55 Disclosure of details as required in terms of paragraph 13 of Non-Banking Financial
(Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank)
Directions, 2007):

Note 59 Other information pursuant to General Instructions for preparation of Balance Sheet
and Profit & Loss Account of Schedule III to the Companies Act 2013 is not
applicable.

UDIN: 25035809BMK0HH7475
AS PER OUR REPORT OF EVEN DATE

FOR CHAITANYA C. DALAL & COMPANY FOR AND ON BEHALF OF THE BOARD OF
CHARTERED ACCOUNTANTS MUKESH BABU FINANCIAL SERVICES LIMITED

Chaitanya C. Dalal Mukesh Babu Meena Babu

P_art_ner Managing Director Director

Membership No.35809 DIN:00224300 DIN:00799732

FRN NO. 101632W

Mahesh Thakar Nupur Chaturvedi

Chief Financial Officer Company Secretary

ACS: A30139

Place : Mumbai Place : Mumbai

Date : 30/04/2025 Date : 30/04/2025

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Mar 31, 2024

n. Provisions, Contingent Liabilities and Contingent Assets

Contingent liabilities as defined in Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets” are disclosed by way of notes to accounts. Provision is made if it becomes probable that an outflow of future economic benefits will be required for an item previously dealt with as a contingent liability.

o. Statement of Cash flow

Cash flows are reported using the indirect method, whereby the net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of the past or future cash receipts or payments. The cash flows from regular revenue generating, investing & financing activities of the company are segregated.

p. Statutory Reserve and Provision of Standard Assets

A Statutory Reserve of 20% of the current profit after tax is made during the year in pursuance of section 45-IC of the Reserve Bank of India Act, 1934.

Provision is made @ 0.40 % of Standard assets which includes secured and unsecured loans granted to companies and other entities.

q. Prudential Norms

For the purpose of identifying the assets as Non-performing assets in pursuance of NonBanking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998, the Company follows generally accepted accounting principles and industry practices.

r. Taxation

Current tax comprises amount of tax payable in respect of the taxable income or loss for the year determined in accordance with Income Tax Act, 1961 and any adjustment to the tax payable or receivable in respect of previous years. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequence that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Capital management

The Company has only equity capital. The Company operates as an Investment Company and Loan Company and consequently is registered as a Non-Banking Financial Institution -Investment and Credit Company (NBFC-ICC) with Reserve Bank of India (RBI). As per RBI’s ‘Scale Based Regulations’ (SBR), the Company is classified as NBFC - Base Layer (NBFC-BL).

The funds are currently invested in equity, debt, money market and other instruments or given as loan depending on economic conditions in line with Investment Policy set by the Management. Safety of capital is of prime importance to ensure availability of capital for operations. Investment objective is to provide safety and adequate return on the surplus funds.

No changes were made in the objectives, policies and processes of capital management during the year.

Note 29 The Company is mainly engaged in the business of providing finance and dealing in shares and securities. All other activities of the Company revolve around the main business, and as such in the opinion of the management, there is no separate reportable segment as per IND AS 108 on ‘Operating Segments’ in respect of the Company.

The Company operates in single segment only. There are no operations outside India and hence there is no external revenue or assets which require disclosure.

Note 30 Loans and advances given to the employees and associates and for projects do not carry any stipulation as to repayment of principal or payment of interest; and are being repaid periodically. Accordingly, these are considered as good and not considered as part of nonperforming assets.

Note 31 The management has made full inquiries and is of the view that assets of the Company in form of fixed assets and Inventories are good in nature, and are stated at appropriate value of the respective assets; and there is no necessity as to impairment / write down provision in the accounts.

Note 45 The Notes referred to in the Balance Sheet and Statement of Profit and Loss Account form an integral part of the Accounts.

Note 46 Company do not have borrowings from Banks or financial institutions on the basis of security of current assets, hence disclosure to that effect is not required.

Note 47 The Company does not have any benami property and no proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

Note 48 There have been no events after the reporting date that require disclosure in these financial statements.

Note 49 Company do not have any transactions with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act,1956, hence disclosure to that effect is not required.

Note 50 There are no charges or satisfaction yet to be registered with Register of Companies (ROC) beyond the statutory period.

Note 51 Company is not declared willful defaulter by any bank, financial institution or other lender, hence disclosure to that effect is not required.

Note 52 There is no such scheme of Arrangements has been approved by the Competent Authority in terms of Section 230 to 237 of the Companies Act. 2013.

B. Where a company has received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the

i) 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

ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

Note 59 Other information pursuant to General Instructions for preparation of Balance Sheet and Profit & Loss Account of Schedule III to the Companies Act 2013 is not applicable.

UDIN: 24035809BKCQTG4384 AS PER OUR REPORT OF EVEN DATE

FOR CHAITANYA C. DALAL & COMPANY FOR AND ON BEHALF OF THE BOARD OF CHARTERED ACCOUNTANTS MUKESH BABU FINANCIAL SERVICES LIMITED

Chaitanya C. Dalal Mukesh Babu Meena Babu

Partner Managing Director Director

Membership No.35809 DIN:00224300 DIN:00799732

FRN NO. 101632W

Mahesh Thakar Nupur Chaturvedi

Chief Financial Officer Company Secretary

ACS: A30139

Place : Mumbai Place : Mumbai

Date : 23/05/2024 Date : 23/05/2024

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Mar 31, 2018

Note 1 DEFERRED TAX ASSET / LIABILITIES (NET)

The Company has accounted for taxes on income in accordance with AS-22 - Accounting for Taxes on Income issued by the Ministry of Corporate Affairs. Consequently, the net incremental deferred tax (liability) / asset is charged / credited to Profit and Loss Account. The year end position of taxes on income is as under:_

2 The value on realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. According to the management, provision for all the known liabilities is adequate.

3 The Balances of loans and advances, overdraft from bank are subject to confirmation and reconciliation. The necessary adjustment if any will be made in the accounts on receipt thereof.

4 Auditors’ remuneration in accordance with paragraph 5A (j) of part II of Schedule III to the Companies Act 2013 is as under:

5 The Company is mainly engaged in the business of providing commercial finance and dealing in shares and securities. All other activities of the Company revolve around the main business, and as such in the opinion of the management, there are no separate reportable segments as per Accounting Standard - AS - 17-“Segment Reporting” Issued by ICAI.

6 Loans and advances given to the employees and associates and for projects do not carry any stipulation as to repayment of principal or payment of interest; and are being repaid periodically. Accordingly, these are considered as good and not considered as part of non-performing assets.

7 The management has made full inquiries and is of the view that assets of the Company in form of fixed assets and Inventories are good in nature, and are stated at appropriate value of the respective assts; and there is no necessity as to impairment / write down provision in the accounts.

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

A. Relationships:

Category I: Subsidiary Company -- Mukesh Babu Securities Limited.

Category II: Key management Personnel -- Shri Mukesh Babu, Ms. Dipali Shah,Shri Pankaj Majithia and Shri Vijay Vora. Category III: Group and Associates Companies

Mukesh Babu Stock Broking P. Ltd, Mukesh Babu Management Consultants P. Ltd.

B. Transactions with related Parties:

9 Income and Expenses in Foreign Currency:

The Company has a process whereby periodically all long term contracts are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses, including derivatives, on such long term contracts has been made in the books of account.

10 The Company has reviewed its pending litigations and proceedings and has adequately provided for where Provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

11 The previous year’s figures are regrouped / rearranged / reclassified wherever considered necessary to correspond with the figures of current year.

12 Other information pursuant to General Instructions for preparation of Balance Sheet and Profit & Loss Account of Schedule III to the Companies Act 2013 is not applicable.

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Mar 31, 2014

1 The value on realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. According to the management, provision for all the known liabilities is adequate.

2 The Balances of loans and advances, overdraft from bank are subject to confirmation and reconciliation. The necessary adjustment if any will be made in the accounts on receipt thereof.

3 The Company is mainly engaged in the business of providing commercial finance and dealing in shares and securities. All other activities of the Company revolve around the main business, and as such in the opinion of the management, there are no separate reportable segments as per Accounting Standard - AS - 17-"Segment Reporting" Issued by ICAI.

4 Loans and advances given to the employees and associates and for projects do not carry any stipulation as to repayment of principal or payment of interest; and are being repaid periodically. Accordingly, these are considered as good and not considered as part of non-performing assets.

5 The management has made full inquiries and is of the view that assets of the Company in form of fixed assets and Inventories are good in nature, and are stated at appropriate value of the respective assts; and there is no necessity as to impairment / write down provision in the accounts.

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

A. Relationships:

Category I: Subsidiary Company -- Mukesh Babu Securities Limited.

Category II: Key management Personnel -- Shri Mukesh Babu, Shri Pankaj Majithia and Shri Vijay Vora. Category III: Others Associates -- Sagar Systech Ltd.

B. Transactions with related Parties:

(Purchases and sales include Bonus Shares and Splits and other adjustments, if any)

Consolidated transaction value (purchases and sales) on account of cash and derivative transactions amounts to Rs.4,872,414,907/- (Previous year Rs.3,602,707,435/-). In case of derivatives transactions, purchases and sales are accounted after netting off.

The previous year''s figures are regrouped / rearranged / reclassified wherever considered necessary to correspond with the figures of current year.

7 Other information pursuant to General Instructions for preparation of Balance Sheet and Profit & Loss Account of Schedule VI to the Companies Act, 1956 is not applicable.

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Mar 31, 2013

1 The value on realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. According to the management, provision for all the known liabilities is adequate.

2 The Balances of loans and advances, overdraft from bank are subject to confirmation and reconciliation. The necessary adjustment if any will be made in the accounts on receipt thereof.

3 The Company is mainly engaged in the business of providing commercial finance and dealing in shares and securities. All other activities of the Company revolve around the main business, and as such in the opinion of the management, there are no separate reportable segments as per Accounting Standard - AS - 17-"Segment Reporting" Issued by ICAI.

Loans and advances given to the employees and associates and for projects do not carry any stipulation as to repayment of principal or payment of interest; and are being repaid periodically. Accordingly, these are considered as good and not considered as part of non-performing assets.

The management has made full inquiries and is of the view that assets of the Company in form of fixed assets and Inventories are good in nature, and are stated at appropriate value of the respective assts; and there is no necessity as to impairment / write down provision in the accounts.

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

A. Relationships:

Category I: Subsidiary Company -- Mukesh Babu Securities Limited.

Category II: Key management Personnel -- Shri Mukesh Babu, Shri Pankaj Majithia and Shri Vijay Vora. Category III: Others Associates -- Sagar Systech Ltd.

5 Income and Expenses in Foreign Currency:

(Purchases and sales include Bonus Shares and Splits and other adjustments, if any)

Consolidated transaction value (purchases and sales) on account of cash and derivative transactions amounts to Rs. 3,60,27,07,435/- (Previous year Rs. 5,83,43,81,644/-). In case of derivatives transactions, purchases and sales are accounted after netting off.

6 The previous year''s figures are regrouped / rearranged / reclassified wherever considered necessary to correspond with the figures of current year.

7 Other information pursuant to General Instructions for preparation of Balance Sheet and Profit & Loss Account of Schedule VI to the Companies Act, 1956 is not applicable.

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Mar 31, 2012

1 The value on realization of current assets in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. According to the management, provision for all the known liabilities is adequate.

2 The Balances of loans and advances, overdraft from bank are subject to confirmation and reconciliation. The necessary adjustment if any will be made in the accounts on receipt thereof.

3 The Company is mainly engaged in the business of providing commercial finance and dealing in shares and securities. All other activities of the Company revolve around the main business, and as such in the opinion of the management, there are no separate reportable segments as per Accounting Standard - AS - 17-"Segment Reporting' Issued by ICAI.

4 Loans and advances given to the employees and associates and for projects do not carry any stipulation as to repayment of principal or payment of interest; and are being repaid periodically. Accordingly, these are considered as good and not considered as part of non-performing assets.

5 Fixed Assets of Company are treated as "Corporate Assets" and are not "Cash Generating Units" as defined by AS-28 issued by the Ministry of Corporate Affairs. In view of this, the Management is of Opinion that this Standard is not applicable to the Company.

6 No interest has been charged on loans and advances given to subsidiary and some associate companies and for projects in view of commercial considerations of the group.

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

A. Relationships:

Category I: Subsidiary Company - Mukesh Babu Securities Limited.

Category II: Key management Personnel - Shri Mukesh Babu, Shri Pankaj Majithia and Shri Vijay Vora.

Category III: Others Associates - Babu & Parekh Securities Private Limited, Sagar Systech Ltd,

Consolidated transaction value (purchases and sales) on account of cash and derivative transactions amounts to Rs. 5,834,381,644 (Previous year Rs. 3,333,609,695). In case of derivatives transactions, purchases and sales are accounted after netting off.

8 The previous year's figures are regrouped / rearranged / reclassified wherever considered necessary to correspond with the figures of current year.

9 Other information pursuant to General Instructions for preparation of Balance Sheet and Profit & Loss Account of Schedule VI to the Companies Act, 1956 is not applicable.

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Mar 31, 2010

1. The figures of the previous year are regrouped, rearranged and reclassified wherever necessary to correspond with those of the current year.

2. The balances of loans & advances, overdraft from bank are subject to confirmation & reconciliation. The necessary adjustment if any will be made in the accounts on receipt thereof.

3. The Company is mainly engaged in the business of providing commercial finance and dealing in shares and securities. All other activities of the Company revolve around the main business, and as such in the opinion of the management, there are no separate reportable segments as per Accounting Standard - AS - 17-"Segment Reporting" Issued by ICAI.

4. Loans and advances given to the employees and associates and for projects do not carry any stipulation as to repayment of principal or payment of interest; and are being repaid periodically. Accordingly, these are considered as good and not considered as part of non- performing assets.

5. Directors remuneration RS. 1,480,0007-(Previous year RS. 1,235,000/-) is within the limits of Schedule XIII to the Companies Act 1956.

6. Related Party Disclosures to comply with Accounting Standard - 18 - Related Party Disclosure by ICAI.

List of the related parties with whom transactions entered:.

(i)Subsidiary Company: Mukesh Babu Securities Limited.

(ii) Associates: Istaa Fashions Pvt. Ltd.,Babu & Parekh Securities Private Limited, IstaaInfotech Private Limited, Sagar Systech Limited,

(iii) Key ManagerialPersonnel: Shri Mukesh Babu, Shri Pankaj Majithia, Shri Vijay Vora.

7. Fixed Assets of company are treated as "Corporate Assets" and are not "Cash Generating Units" as defined by AS-28 issued by Institute of Chartered Accountants of India (ICAI), In view of this, the Management is of Opinion that this Standard is not applicable to the Company.

8. No interest has been charged on loans and advances given to subsidiary and some associate companies and for projects in view of commercial considerations of the group.

9. Other information pursuant to paragraph 3, 4A, 4C and 4D of part II of Schedule VI to the Companies Act, 1956 is not applicable.