Notes to Accounts of Munoth Financial Services Ltd.

Mar 31, 2024

1.15 Provisions , Contingent Liabilities and Contingent assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

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

Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets

Contingent assets are disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is probable

1.16 Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Post-employment obligations

The group operates the following post-employment schemes:

(a) Defined benefit plans such as gratuity, pension, post-employment medical plans; and

(b) Defined contribution plans such as provident fund.

Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit pension and gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. The benefits which are denominated in currency other than INR, the cash flows are discounted using market yields determined by reference to high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined contribution plans

The group pays provident fund contributions to publicly administered provident funds as per local regulations. The group has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

1.17 Financial Instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

(a) Financial Assets

(i) Classification

The company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

• those measured at amortised cost.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

(ii) Investment in Equity of Associates

The Company records the investments in Associates at cost less impairment loss, if any, as per Ind AS 27 - Separate Financial Statements. The Company on the date of transition to Ind AS has adopted the previous GAAP carrying amount at that date as the Deemed Cost in accordance with the exemptions provided under Ind AS 101 First-time Adoption of Indian Accounting Standards

(iii) Financial Assets - Other than investment in associates

Financial assets other than investment in associate comprise of investments in equity (including investments in equity oriented mutual funds) and, trade receivables, cash and cash equivalents and other financial assets

(iv) Initial recognition and Measurement

At initial recognition, the company measures a financial asset at its fair value and in the case of a financial asset not recorded at fair value through profit or loss, fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.

Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss

(v) Classification and subsequent measurement

The company classifies its financial assets in the following measurement categories:

• Financial assets measured at amortised cost and

• Financial assets measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

The classification depends on the entity''s business model for managing the financial assets and the contractual cash flow characteristics of the Financial Assets

• Financial assets measured at amortized cost:

Financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are measured at amortized cost using effective interest rate (EIR)method. The EIR amortization is recognized as finance income in the statement of profit and loss.

The Company while applying above criteria has classified the following at amortized cost

(a) Trade receivable

(b) Other financial assets

• Financial assets measured at Fair value through other comprehensive income (FVTOCI)

Financial assets that are held within a business model whose objective is achieved by both collecting contractual cash flow and selling financial asset and the contractual terms of financial assets give rise on specified dates to cash flow that are solely payments of principal and interest on the principal amount outstanding are subsequently measured at FVTOCI. Fair value movements in financial assets at FVTOCI are recognized in other comprehensive income.

• Financial asset at Fair value through Profit or Loss (FVTPL)

Financial assets are measured at fair value through Profit and loss if it does not meet the criteria for classification as measured at amortized cost or at fair value through other comprehensive income. All fair value changes are recognized in the Statement of Profit and loss.

(vi) Investments in Equities and Equity mutual funds

Fair Value through Other Comprehensive Income (FVOCI)

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.

For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument -by-instrument basis. The classification is made on initial recognition and is irrevocable.

Where the management has elected to present fair value changes (gains and losses) on equity investments in other comprehensive income, they are measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in the ''Fair value changes for equity instruments through other comprehensive income''.

There is no subsequent reclassification / recycling of fair value gains and losses to Statement of Profit or Loss even on derecognition / sale of the Investments. However, the Company may transfer the cumulative gain or loss within equity

Dividends from such investments are recognised in profit or loss as other income when the company''s right to receive payments is established.

Impairment losses (and reversal of impairment losses) on equity investments measured at FVTOCI are not reported separately from other changes in fair value.

Fair value through profit or loss (FVTPL)

Equity instruments held for trading are classified as FTVPL and are measured at fair value with all changes recognised in the Statement of Profit or Loss.

(vii) De-recognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset in its entirety (except for equity instruments designated as

(FVTOCI), the difference between the asset''s carrying amount and the sum of the consideration received and receivable is recognised in the Statement of Profit and Loss

(viii)Impairment of financial assets

Trade receivables under IND AS 109, investments in debt instruments that are carried at amortized cost, investments in debt instruments that are carried at FVTOCI are tested for impairment based on the expected credit losses for their respective financial asset

--> Trade Receivable

The Company applies the expected credit loss model for recognizing impairment loss on financial assets measured at amortised cost, trade receivables and other contractual rights to receive cash or another financial asset.

For trade receivables or any contractual right to receive cash or another financial asset that results from transactions that are within the scope of Ind AS 115, the Company follows ''simplified approach'' and measures the loss allowance at an amount equal to lifetime expected credit losses. This impairment allowance is computed based on historical credit loss experience and management assessment.

--> Other financial assets

Other financial assets are tested for impairment and expected credit losses are measured at an amount equal to 12 month expected credit loss. If the credit risk on the financial asset has increased significantly since initial recognition, then the expected credit losses are measured at an amount equal to life-time expected credit loss

(B) Financial liabilities and equity instruments

(i) Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

(ii) Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.

(iii) Financial Liabilities - Initial recognition and measurement

All financial liabilities are recognized initially at fair value plus any transaction cost that are attributable to the acquisition of financial liability except financial liabilities at fair value through profit and loss which are initially measured at fair value.

(iv) Subsequent measurement

The financial liabilities are classified for subsequent measurement into following categories

• at amortized cost

• at fair value through profit and loss Amortised Cost - Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. Gains and losses are recognized in the Statement of Profit and Loss when the liabilities are derecognised. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and Loss.

This category generally applies to interest-bearing loans and borrowings.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. The Company has not designated any financial liability as at fair value through profit and loss

De-recognition of financial liabilities

A financial liability is derecognized when and only when, it is extinguished i.e. when the obligation specified in the contract is discharged or cancelled or have expired

An exchange between with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.

Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.

The difference between the carrying amount of the financial liability derecognized and the consideration paid / payable is recognized in statement of profit and loss.

1.18 Equity and Reserves

Share Capital represents the nominal (par) value of shares that have been issued and fully paid-up. Retained earnings include all current and previous period retained profits

1.19 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and shortterm deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

1.20 Cash flow statement

"Cash Flow Statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Using indirect method, the net profit is adjusted for the effects of“(i) Transactions of non-cash nature.“(ii) Any deferrals or accruals of past or future operating cash receipts or payments and“(iii) Items of income or expense associated with investing or financing cash flows.“Cash and cash equivalents (including bank balances) are reflected as such in cash flow statement.“"

1.21 Earnings per Share

Basic earnings per share are calculated by dividing the net profit for the year by the weighted average number of equity shares outstanding during the year. As at the reporting date, the Company has not issued any potential equity shares, and accordingly, the basic earnings per share and diluted earnings per share are the same.

37 The Company is in the business of providing Stock Broking, DP Operations, Portfolio Advisory Services, Merchant Banking and does not have any physical inventories.

38 The previous year''s figures of Balance Sheet have been regrouped, reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year. Figures are rounded off to the nearest thousand. Figures in bracket represent negative figures.

39 Additional Disclosures :-

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

b. The Company does not have any balance or transactions with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

c. The Provisions of Companies Social Responsibility under Section 135 of the Companies Act, 2013 are not applicable to the Company for the year.

d. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

e. The company has not traded or invested in Crypto or virtual currency during the year(PY Nil).

f. The Company does not holds any Benami property and there are no proceedings against the company under the benami transactions (prohibition) Act 1988 (as amended from time to time).

g. The Company has not been declared as a willful defaulter (as per RBI circular) by any bank or financial institution or any other lender at any time during the financial year or after the end of the reporting period.

h. To the best of our knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), 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;

i. To the best of our knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company form any person)s) or entity(ies), 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;

j. There are no amounts due to be remitted to Investors Education and Protection Fund (PY Nil)

k. The company has carried out impairment exercise as required by AS- 28 and such exercise did not result in any adjustment in the books of accounts towards impairment loss as at the year end.

l. The company does not have any subsidiary and hence the reporting requirement with respect to Number of layerof companies is not applicable.

m. During the Financial Year Company has not revalued any of its Property Plant and Equipment and its intangible assets.

n. The Company does not have any investment properties as at March 31,2024 & March 31,2023 as defined in Ind AS 40

o. The Company has not granted any loans (or) advances in the nature of Loans to Promoters,Directors , Key Managerial Personnels(KMP) , and the related Parties, either severally or jointly with any other person.

p. The title deeds of Immovable property are held in the name of the Company.

1. Repayment of borrowings includes repayment of short-term borrowings

2. Net Profit after tax and before tax does not include other comprehensive income.

3. Working Capital is the difference betwenn Current Asset and Current Liabilities

4. Other Equity does not include other comprehensive income.

As per our report of even date attached

For Kumbhat & Co For and on behalf of the Board of Directors

Chartered Accountants

FRN NO: 001609S -sd- -sd-

LALCHAND MUNOTH JASWANT MUNOTH

Chairman Managing Director & CEO

(DIN : 01693640) (DIN : 00769545)

-sd- -sd- -sd- -sd-

[M.V. CHANDRAMOULEESWARAN] A. G. NANDINI BHARAT MUNOTH VIKAS MUNOTH

Partner Company Secretary Director & CFO Whole time Director

M.NO: 202629 (DIN :00769588) (DIN:00769366)

UDIN:24202629BKAHQE2344

PLACE : CHENNAI DATE : 29-05-2024

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Mar 31, 2015

1. CORPORATE INFORMATION

Munoth Financial Services Limited is a public limited company domiciled in India and incorporated during the year 1990, under the provisions of the Companies Act,1956. Its shares are listed on Bombay and Madras Stock Exchanges. The Company belongs to the reputed Munoth Group, Chennai. The company primarily focuses on Stock Broking, DP Operations, Portfolio Management Services, Merchant Banking and other Advisory Services.

2. Terms/Rights attached to Equity shares

The Company has only one class of Equity shares having a Par value of Rs.10/- Per share. Each Holder of Equity Share is entitled to one vote per share. No dividend has been recognised as distribution to Equity shareholders for the Year ended 31.03.2015 ( 31.03.2014 : Rs. NIL )

In the event of Liquidation of the Company, the holders of Equity shares will be entitled to receive any of the assets of the Company, only after the distribution of all preferential amounts. The distribution will be in proportion to the number of Equity shares held by the Shareholders.

(i) The Market Value of Aggregated Quoted investments amounts to Rs. 3327381/-

(ii) The company has not made provision for a sum of Rs. 23,138,833/-(Previous year Rs. 22,276,170) being fall in the market value of quoted investments. Such provision has not been made as the management perceives that the investments are of long term in nature and such diminution in value is temporary. The Current value of unquoted investments cannot be ascertained in the absence of availability of latest financial results.

(iii) The Company Munoth Neg Windfarm Pvt Ltd ceased to be associate company during financial year 2014-15

3. DISCLOSURE OF RELATED PARTIES/RELATED PARTY TRANSACTIONS

A. Name of the Related Parties with whom transactions were carried out during the year and description of relationship :

(I) Key Management personnel and their relatives:-

a) Lalchand Munoth

b) Jaswant Munoth

c) Bharat Munoth

(II) Enterprises owned or significantly influenced by Key management personnel or their relatives ( either individually or with others)

a) Munoth Communication Limited

4. EMPLOYEE BENEFITS ( AS - 15 )

Defined contribution plan :

The Company makes Recognized Provident Fund contributions and Employees State Insurance Contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 2,05,667 (Year ended 31 March, 2015) for Provident Fund contributions and Employees State Insurance Contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

5. CONTINGENT LIABILITIES NOT PROVIDED FOR

Particulars Current Year Previous Year

a) Guarantees issued by the company's banker -Guarantee given by HDFC Bank & Federal Bank to Stock Exchanges 13,850,000 13,850,000

b) Estimated Liability on account of certain taxes and duties not provided for - Income Tax Appeals pending before CIT(Appeals) 58,004 -

6. The company has received a letter from RBI exempting it from Registration as a Non Banking Financial Company as it is already registered as stock broker with SEBI.

7. Bangalore branch transactions are consolidated in respective heads in Head office account.

8. Previous year figures have been regrouped and rearranged wherever necessary to conform to this year classification.

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Mar 31, 2014

1 CORPORATE INFORMATION

Munoth Financial Services Limited is a public limited company domiciled in India and incorporated during the year 1990, under the provisions of the Copanies Act,1956. Its shares are listed on Bombay and Madras Stock Exchanges. The Company belongs to the reputed Munoth Group, Chennai. The company primarily focuses on Stock Broking, DP Operations, Portfolio Management Services and other Advisory Services.

2 Terms/Rights attached to Equity shares

The Company has only one class of Equity shares having a Par value of Rs.10/- Per share.

Each Holder of Equity Share is entitled to one vote per share. No dividend has been recognised as distribution to Equity shareholders for the Year ended 31.03.2014 ( 31.03.2013 : Rs. NIL )

In the event of Liquidation of the Company, the holders of Equity shares will be entitled to receive any of the assets of the Company, only after the distribution of all preferential amounts. The distribution will be in proportion to the number of Equity shares held by the Shareholders.

3 Name of the Related Parties with whom transactions were carried out during the year and description of relationship :

(I) Key Management personnel and their relatives:-

a) Lalchand Munoth

b) Jaswant Munoth

c) Bharat Munoth

(II) Enterprises owned or significantly influenced by Key management perrsonnel or their relatives ( either individually or with others )

a) Munoth Communication Limited

4 Employee Benefits ( AS - 15 )

Defined contribution plan :

The Company makes Recognized Provident Fund contributions and Employees State Insurance Contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 2,16,859 (Year ended 31 March, 2014) for Provident Fund contributions and Employees State Insurance Contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

5 Contingent Liabilities Not Provided For

Particulars Current Year Previous Year

Guarantee given by Federal Bank to Stock Exchanges 138,500,000 138,500,000

6. The company has received a letter from RBI exempting it from Registration as a Non Banking Financial Company as it is already registered as stock broker with SEBI.

7. Bangalore branch transactions are consolidated in respective heads in Head office account.

8. Previous year figures have been regrouped and rearranged wherever necessary to conform to this year classification.

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Mar 31, 2013

Note 1 Corporate Information

Munoth Financial Services Limited is a public limited company domiciled in India and incorporated during the year 1990, under the provisions of the Companies Act, 1956. Its shares are listed on Bombay and Madras Stock Exchanges. The Company belongs to the reputed Munoth Group, Chennai. The company primarily focuses on Stock Broking, DP Operations, Portfolio Management Services and other Advisory Services.

2. The company''s business activity falls within a single primary business segment i.e. stock broking & Capital Market. As such there is on separate reportable segment as per Accounting Standard 17.

3. We have been informed that Current Assets Loans and Advances other than doubtful have the value at which they are stated in the Balance sheet, if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

4. Balances of Sundry Debtors, Sundry Creditors and Loans & Advances are subject to confirmation.

5. Contingent Liability

Contingent liabilities comprise Bank Gurantees amounting to Rs. 138.50 Lacs provided to Stock Exchanges. (Previous year - Rs. 138.50 Lacs).

6. The company has not made provision for a sum of Rs 2,19,58,387/-(Prev yr Rs. 2,19,76,897) being fall in the market value of quoted investments. Such provision has not been made as the management perceives that the investments are of long term in nature and such diminution in value is temporary. The Current value of unquoted investments cannot be ascertained in the absence of availability of latest financial results.

7. The company has received a letter from RBI exempting it from Registration as a Non Banking Financial Company as it is already registered as stock broker with SEBI.

8. Bangalore branch transactions are consolidated in respective heads in Head office account

9. During the current year Freehold Land was revalued by an approved Valuer and updated as on 31.03.2013, on the basis of assessment about current value of the similar assets.resulting in an increase in its value by Rs. 3,59,76,570/- which has been transferred to Revaluation Reserve.

10. Previous year figures have been regrouped and rearranged wherever necessary to conform to this year classification.

11 Employee benefit plans

Defined contribution plans

The Company makes Recognized Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 2,43,078 (Year ended 31 March, 2013) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

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Mar 31, 2012

Note 1 Corporate Information

Munoth Financial Services Limited is a public limited company domiciled in India and incorporated during the year 1990, under the provisions of the Companies Act,1956. Its shares are listed on Bombay and Madras Stock Exchanges. The Company belongs to the reputed Munoth Group, Chennai. The company primarily focuses on Stock Broking, DP Operations, Portfolio Management Services and other Advisory Services.

2. The company's business activity falls within a single primary business segment i.e. stock broking & Capital Market. As such there is no separate reportable segment as per Accounting Standard 17.

3. We have been informed that Current Assets Loans and Advances other than doubtful have the value at which they are stated in the Balance sheet, if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

4. Balances of Sundry Debtors, Sundry Creditors and Loans & Advances are subject to confirmation.

5. Contingent Liability

Contingent liabilities comprise Bank Gurantees amounting to Rs. 138.50 Lacs provided to Stock Exchanges. (Previous year - Rs. 150.00 Lacs).

6. The company has not made provision for a sum of Rs 2,19,76,897/-(Prev yr Rs. 2,21,18,170) being fall in the market value of quoted investments. Such provision has not been made as the management perceives that the investments are of long term in nature and such diminution in value is temporary. The Current value of unquoted investments cannot be ascertained in the absence of availability of latest financial results.

7. The company has received a letter from RBI exempting it from Registration as a Non Banking Financial Company as it is already registered as stock broker with SEBI.

8. Bangalore branch transactions are consolidated in respective heads in Head office account

9. Previous year figures have been regrouped and rearranged wherever necessary to conform to this year classification.

Note 10 Employee benefit plans

Defined contribution plans

The Company makes Recognized Provident Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.

The Company recognised Rs. 2,23,646 (Year ended 31 March, 2012) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

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Mar 31, 2010

1. The Company has since refunded the Share Application money of Rs.1.5 Crs on 04.04.2010 due to pending completion of formalities with regards to issue of share on preferential allotment basis.

2. We have been informed that Current Assets Loans and Advances other than doubtful have the value at which they are stated in the Balance sheet, if realized in the ordinary course of busi- ness. The provision for all known liabilities is adequate and not in excess of the amount rea- sonably necessary.

3. Balances of Sundry Debtors, Sundry Creditors and Loans & Advances are subject to confirma- tion.

4. Contingent Liability

Contingent liabilities comprise Bank Gurantees amounting to Rs. 213.50 Lacs provided to Stock Exchanges. (Previous year - Rs. 213.50 Lacs).

5 a) Investment includes Rs. 1,75,56,107- being cost of shares not held in the name of the com- pany (Prev. Year Rs. 1,75,56,107/-).

b) The company has not made provision for a sum of Rs 2,24,11,007/- being fall in the mar- ket value of quoted investments. Such provision has not been made as the management per- ceives that the investments are of long term in nature and such diminution in value is tempo- rary. The Current value of unquoted investments cannot be ascertained in the absence of avail- ability of latest financial results.

6 The company has received a letter from RBI exempting it from Registration as a Non Banking Financial Company as it is already registered as stock broker with SEBI.

7 Bangalore branch transactions are consolidated in respective heads in Head office account.

8 Loans and Advances includes Rs. Nil (Prev. Year Rs.NIL ) due from the company under the same management.

9. Previous year figures have been regrouped and rearranged wherever necessary to conform to this year classification.