Notes to Accounts of Munoth Capital Market Ltd.

Mar 31, 2024

9.2 Terms/Rights attached to equity shares:

The company has only one class of equity share having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one

During the year ended 31st March 2024, the amount of per share dividend recognized as distributions to equity shareholders was Rs. Nil (31st March 2023 Rs. Nil)

During the year company has issued equity shares of 1,75,000 @ Rs.5 per share and a premium of Rs. 70 per share.

19. Contingent Liabilities Not Provided For	(Rs. in ''00)
	31.03.2024	31.03.2023
a)Estimated amount of contracts remaining to be Executed on capital account	NIL	NIL
21. Claims against company not acknowledge as debts	NIL	NIL
22. Foreign Exchange earnings and out-go is Rs.	NIL	NIL

23. Operating Segment

Operating Segment Reporting as defined in IndAS108 is not applicable as the company is primarily engaged only in Broking services in capital market.

24. Disclosure requirements as per Ind AS 24 "Related Party Disclosures" issued by the Institute of Chartered Accountants of India

26. In the absence of confirmation from parties and pending reconciliation the debit and credit balances with regard to recoverable and payable have been taken as reflected in the books. In the opinion of the Directors, short term or long term Loans and Advances, Current or Non-current Assets, if realized in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

29. Financial Risk Management Objective & Policies

This section gives an overview of the significance of financial instruments for the Company and provides additional information on the balance sheet. Details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial assets and financial liabilities are disclosed.

The management has assessed that the fair value of Trade receivables, cash & cash equivalent, current loan and advances, other non-current and current asset, borrowings and trade payables approximate their carrying amounts largely due to the short term maturities of these instruments.

Fair Value Hierarchy

The different levels have been defined below:

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

Level 2: 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: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

Although, all Financial Asset and Financial Liabilities were valued at amortised cost and therefore there are no asset which are valued at Level III hierarchy.

30. Previous year figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2023

(vi) Provisions and Contingencies

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

(vii) Employee Benefits

The company has not provided for Gratuity and Leave encashment benefits till 31.03.2023. The retirement benefits will be debited as and when paid.

(viii) Foreign Currency Transactions

a) Transactions in Foreign Currency are accounted at the exchange rate prevailing on the date of Transactions. Exchange fluctuations between the transaction date and the settlement date in respect of Revenue Transactions are recognized in Profit & Loss Account.

b) All export proceeds not realised at the yearend are restated at the rate prevailing at the year end. The exchange difference arising there from has been recognised as income / expenses in the Current Year''s Profit & Loss A/c along with underlying transaction.

c) The premium or discount arising at the inception of forward exchange contract is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contracts is recognised as income or as expense for the year. None of the forward exchange contracts are taken for trading or speculation purpose.

(ix) Segment information

Operating Segment Reporting as defined in IndAS108 is not applicable as the company is primarily engaged only in Broking services in capital market.

(x) Borrowing Costs

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged to revenue.

(xi) Earnings Per Share(EPS)

Basic and diluted EPS is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

25. In the absence of confirmation from parties and pending reconciliation the debit and credit balances with regard to recoverable and payable have been taken as reflected in the books. In the opinion of the Directors, short term or long term Loans and Advances, Current or Non-current Assets, if realized in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

28. Financial Risk Management Objective & Policies

This section gives an overview of the significance of financial instruments for the Company and provides additional information on the balance sheet. Details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial assets and financial liabilities are disclosed.

The management has assessed that the fair value of Trade receivables, cash & cash equivalent, current loan and advances, other non-current and current asset, borrowings and trade payables approximate their carrying amounts largely due to the short term maturities of these instruments.

Fair Value Hierarchy

The different levels have been defined below:

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

Level 2: 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: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

Although, all Financial Asset and Financial Liabilities were valued at amortised cost and therefore there are no asset which are valued at Level III hierarchy.

29. Previous year figures have been regrouped / rearranged wherever necessary.

For and on behalf of

VIJAY R. TATER & CO.

Chartered Accountants Firm Regn No. 111426W

(SURESH G. KOTHARI) Siddharth S. Jain Shantilal M Jain

Partner (Director & CEO ) (Director & CFO)

(M.No:47625) DIN:00370650 DIN:00370624

UDIN: 23047625BGTACK6926 Place: Ahmedabad

Place: Camping at USA Date : May 30. 2023

Date: May 30, 2023

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Mar 31, 2016

1. BASIS OF ACCOUNTING:

The Financial Statements have been prepared under the historical cost convention, on accrual basis to comply in all material respects with all applicable accounting principles in India, the applicable Accounting Standards notified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.and the relevant provisions of the Companies Act, 2013.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Revised Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current -noncurrent classification of assets and liabilities

2. USE OF ESTIMATES:

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

3. FIXED ASSETS :

The fixed assets are stated at acquisition cost less accumulated depreciation.

4. DEPRECIATION :

- Depreciation on tangible Assets is provided on the written down value method over the useful life of assets in accordance with Schedule II of the Companies Act, 2013.

- Depreciation for assets purchased /sold during a period is proportionately charged.

- Assets are amortized over their respective individual estimated useful lives on a written down basis, commencing from the date the asset is available to the Company for its use.

The estimated useful lives for the fixed assets as per Schedule II of the Act are as follows:

- Servers and software : 6 years

- Computer : 3 years System & Peripherals

- Furniture & Fixtures : 10 years

- Air Conditioner : 15 years

- Motor Cycle : 10 years

The residual value of assets after its useful life is estimated at 5% of the cost of the assets in accordance with Schedule II of the Act

5. INVESTMENTS :

6. Investments, which are readily realizable and intended to the held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

7. Investments are classified as Quoted & Unquoted Investments.

8. Long term Investments are stated at cost less provision for permanent diminution in value of such investments.

9. Current Investments are stated at lower of cost and fair market value, determined by category of Investments.

10. RETIREMENT BENEFIT:

The leave encashment scheme of the company is not in the nature of retirement benefit and hence no provision is necessary for the same.

11. REVENUE RECOGNITION:

12. Brokerage income is recognized as per contracted rates at the execution of transactions on behalf of the customers on the trade date and is inclusive of service tax.

13. Transaction of dealing in shares & securities are booked in the accounts based on contract notes issued by the brokers and the account statements received. Transactions of derivatives are recognized under respective heads of accounts as and when the settlement takes place in accordance with the terms of respective contracts.

14. Income from arbitrage in securities comprises profit/loss on sale of securities held as stock-in-trade.

15. All incomes and expenditure are accounted for on accrual basis unless otherwise stated.

16. Interest income is recognized on accrual basis, while dividend on shares and securities is recognized when the right to receive the dividend is established.

17. BORROWING COST:

Interest and other costs incurred in connection with borrowing of the funds are charged to revenue on accrual basis except those borrowing cost which are directly attributable to the acquisition or construction of those fixed assets, which necessarily take a substantial period of time to get ready for their intended use. Such costs are capitalized with the fixed assets.

18. EARNINGS PER SHARE (EPS):

The earnings considered in ascertaining the Company’s EPS comprises the net profit after tax (after providing the post tax effect of any extra ordinary items). The number of shares used in computing Basic EPS is the weighted average number of equity shares outstanding during the year.

19. INCOME TAX:

20. Current Tax: A Provision for Current Income Tax / Minimum Alternate Tax is made on the Taxable Income using the applicable tax rates and tax laws respectively.

21. Deferred Tax: Deferred tax arising on account of timing differences and which are capable of reversal in one or more subsequent periods is recognized using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are not recognized unless there is a virtual certainty with respect to the reversal of the same in future.

22. IMPAIRMENT OF ASSETS:

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is higher of the asset’s fair value less costs to sell vis-a-vis value in use. For the purpose of impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows.

23. PROVISIONS AND CONTINGENCIES:

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

24. CONSOLIDATED FINANCIAL RESULTS

Consolidated Financial Statements forming part of accounts with the auditor’s report thereon are attached herewith.

25. SEGMENT REPORTING:

Segment Reporting as defined in Accounting Standard 17 is not applicable as the company is primarily engaged in Broking services in capital market.

26. Disclosure requirements as per Accounting Standard 18 (AS-18) “Related Party

Disclosure” issued by the Institute of Chartered Accountants of India

27. List of Related Parties with whom transaction have taken place during the year:

28. Wholly owned Subsidiary Company Munoth Retail Private Ltd.

29. Associate companies where director or relatives of director are interested

30. Munoth Investment & Finance & Co. Pvt. Ltd.

31. Munoth Finance & Leasing Ltd

32. Key management Personnel

33. Shantilal M Jain

34. Siddharth S Jain

35. Mukesh Patel

36. Affiliate of Subsidiary Company

37. Deepkala Collection

38. In the absence of confirmation from parties and pending reconciliation the debit and credit balances with regard to recoverable and payable have been taken as reflected in the books. In the opinion of the Directors, short term or long term Loans and Advances, Current or Noncurrent Assets, if realized in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

39. Previous year figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2015

1. Rights, preferences and restrictions attached to shares

Equity Shares: The company has one class of equity shares having a par value of Rs.5 per share. Each shareholder Is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2. Deferred tax arising on account of timing differences and which are capable of reversal in one or more subsequent periods is recognised

3. The disclosure under Section 22 of Micro, Small and Medium Enterprises Development Act, 2006 is not applicable to the company as it is neither a trading nor a manufacturing company and accordingly do not have any such suppliers

4. CONSOLIDATED FINANCIAL RESULTS

Consolidated Financial Statements forming part of accounts with the auditors report thereon are attached herewith.

5. CONTINGENT LIABILITIES NOT PROVIDED FOR (Rs.in Lacs)

31.03.2015 31.03.2014

a) Estimated amount of contracts remaining to be executed on capital account NIL NIL

b) Claims against company not acknowledge as debts NIL NIL

6. Foreign Exchange earnings and out-go is Rs. NIL NIL

7. SEGMENT REPORTING:

Segment Reporting as defined in Accounting Standard 17 is not applicable as the company is primarily engaged in Broking services in capital market.

8. Disclosure requirements as per Accounting Standard 18 (AS-18) "Related Party

Disclosure" issued by the Institute of Chartered Accountants of India

I. List of Related Parties with whom transaction have taken place during the year:

a) Wholly owned Subsidiary Company

Munoth Retail Private Ltd.

b) Associate companies where director or relatives of director are interested

(i) Munoth Investment & Finance & Co. Pvt. Ltd.

(ii) Munoth Finance & Leasing Ltd

c) Key management Personnel

(i) Shantilal M Jain

(ii) Siddharth S Jain

(iii) Mukesh Patel

d) Affiliate of Subsidiary Company

(i) Deepkala Collection

9. In the absence of confirmation from parties and pending reconciliation the debit and credit balances with regard to recoverable and payable have been taken as reflected in the books. In the opinion of the Directors, short term or long term Loans and Advances, Current or Non current Assets, if realized in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

10. Previous year figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2014

1 CONSOLIDATED FINANCIAL RESULTS

Consolidated Financial Statements forming part of accounts with the auditor’s report thereon are attached herewith.

2 CONTINGENT LIABILITIES NOT PROVIDED FOR :- (Rs.in Lacs)

31.03.2014 31.03.2013

a) Estimated amount of contracts remaining to be executed on capital account NIL NIL

b) Claims against company not acknowledge as debts NIL NIL

3 Foreign Exchange earnings and out-go is Rs NIL NIL

4 SEGMENT REPORTING:

Segment Reporting as defined in Accounting Standard 17 is not applicable as the company is primarily engaged in Broking services in capital market.

5 Disclosure requirements as per Accounting Standard 18 (AS-18) "Related Party Disclosure" issued by the Institute of Chartered Accountants of India

I. List of Related Parties with whom transaction have taken place during the year:

a) Wholly owned Subsidiary Company Munoth Retail Private Ltd.

b) Associate companies where director or relatives of director are interested

(i) Munoth Investment & Finance & Co. Pvt. Ltd

(ii) Munoth Finance & Leasing Ltd

c) Key management Personnel

(i) Shantilal M Jain

(ii) Siddharth S Jain

(iii) Mukesh Patel

d) Affiliate of Subsidiary Company Deepkala Collection

6 In the absence of confirmation from parties and pending reconciliation the debit and credit balances with regard to recoverable and payable have been taken as reflected in the books. In the opinion of the Directors, shod term or long term Loans and Advances. Current or Non current Assets, if realized in the ordinary course of business, have the value at which they are ''stated in the Balance Sheet.

7 Previous year figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2013

1 CONTINGENT LIABILITIES NOT PROVIDED FOR

(Rs.in Lacs)

31.03.2013 31.03.2012 a) Estimated amount of contracts remaining to be executed on capital account NIL NIL

b) Claims against company not acknowledge as debts NIL NIL

2 Foreign Exchange earnings and out-go is Rs. NIL NIL

3 SEGMENT REPORTING:

Segment Reporting as defined in Accounting Standard 17 is not applicable as the company is primarily engaged in Broking services in capital market.

4 Disclosure requirements as per Accounting Standard 18 (AS-18) "Related Party Disclosure" issued by the Institute of Chartered Accountants of India

I. List of Related Parties with whom transaction has been taken place during the year:

a) Key management Personnel (i) Shantilal M Jain

(ii) Siddharth S Jain

(iii) Mukesh Patel

b) Associate companies where director or relatives of director are director

(i) Munoth Investment & Finance & Co.Pvt. Ltd. (ii) Munoth Finance & Leasing Ltd (iii) Munoth Retail Private Ltd.

5 In the absence of confirmation from parties and pending reconciliation the debit and credit balances with regard to recoverable and payable have been taken as reflected in the books. In the opinion of the Directors, short term or long term Loans and Advances, Current or Non current Assets, if realized in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

6 Previous year figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2010

1. CONTINGENT LIABILITIES NOT PROVIDED FOR (Rs.in Lacs) 31.03.2010 31.03.2009

3) Estimated amount of contracts remaining to be executed on capital account Nil Nil

b) Claims against company not acknowledge as debts Nil Nil

2. Foreign Exchange earnings and out-go Is Rs Nil (P.Y Nil)

3. SEGMENT REPORTING:

Segment Reporting as defined In Accounting Standard 17 is not applicable as the company Is primarily engaged in Broking services in capital market

4. Disclosure requirements as per Accounting Standard 18 (AS-18) "Related Party Disclosure" issued by the Institute of Chartered Accountants of India

I. List of Related Parties:

a) Key management Personnel

(i) Shantilal M Jain

(ii) Siddharth S Jain

b) Associate Companies

(i) Anima Investment Ltd.

(ii) Munoth Finance & Leasing Ltd

(iii) Munoth Investment & Finance Co. Pvt. Ltd

(iv) Devang Estate & Finance Co Pvt Ltd

(V) Symphony Investment Pvt Ltd

(vi) Silvercrad Investment Pvt Ltd

5. In the absence of confirmation from parties and pending reconciliation the debit and credit balances with regard to recoverable and payable have been taken as reflected in the books In the opinion of the Directors, Loans and Advances and Current Assets, if realized in the ordinary course of business have the value at which they are stated in the Balance Sheet

6. The current tax liability is adjustable against earned forward MAT credit for earlier years u/s 115JB of the Income Tax Act, 1961, hence no provision for current tax liability is made in the bocks of accounts

7. Previous year figures have been regrouped / rearranged wherever necessary,