Notes to Accounts of Nam Securities Ltd.

Mar 31, 2024

XIV. Provisions

Provision is recognized when an enterprise has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on management estimates required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions. These are reviewed at balance sheet date &adjusted to reflect the current management estimates.

XV. Contingent liabilities and assets

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 or a reliable estimate of the amount cannot be made, is termed as a contingent liability. The existence of a contingent liability is disclosed in the notes to the financial statements.

Contingent assets are neither recognized nor disclosed.

XVI. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity share outstanding during the year.

Diluted earnings per share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

XVII. Operating Cycle

Based on the nature of products/ activities of the Company & normal time between acquisition of assets and their realization in Cash or Cash equivalent, the company has determined its operating cycleas12 months for purpose of classification of its assets&liabilities as current & non- current.

XVIII. Sundry Debtors/Loans and Advances

Sundry Debtors and Loans and advances are stated after making adequate provisions for doubtful balances.

XIX. Expenditure

Expenses are accounted on accrual basis and provision is made for all known losses and liabilities.

XX. Events Occurring after Balance sheet date

Significant events occurring after the balance sheet date have been considered in the preparation of financial statements.

XXI. Cash Flow statement

The cash flow statement is prepared under Indirect method as set out in the accounting standard-3 on Cash flow statements, whereby Profit/Loss before Extraordinary items and Tax is adjusted for the effects of transactions of no-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash flows from operating, investing and financing activities of the company are segregated based on the available information.

XXII. Segment Reporting

The company is principally engaged in a single business segment viz: Stock Broking & Trading in Shares, & Depository Participant. Accordingly, there are no separate reportable segments as per IND AS 108 on "Segment reporting”.

Nature and purpose or reserve

(A) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilized only for limited purposes such as issuance of bonus shares, writing off the preliminary expenses in accordance with the provisions of the Companies Act, 2013.

(B) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilized only in accordance with the specific requirements of Companies Act, 2013.

(C) Equity-settled share-based payment reserve

This reserve is created by debiting the statement of profit and loss account with the value of share options granted to the employees by the Company. In case of share options granted by the

Fair value hierarchy:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique.

The investments included in level 1 of fair value hierarchy have been valued using quoted prices for instruments in an active market. The investments included in level 2 of fair value hierarchy have been valued using valuation techniques based on observable market data. The investments included in Level 3 of fair value hierarchy have been valued using the income approach and break-up value to arrive at their fair value. There is no movement from between Level 1,2,3. There is no change in Inputs use for measuring Level 3 fair value.

The following table summarizes financial instruments measured a fair value on recurring basis:

Financial risk management Risk management framework

The Company has established a comprehensive system for risk management and internal controls for all its businesses to manage the risks that it is exposed to. The objective of its risk management framework is to ensure that various risks are identified, measured and mitigated and also that policies, procedures and standards are established to address these risks and ensure a systematic response in the case of crystalisation of such risks.

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

a) Credit risk b) Liquidity risk c) Market risk

The Company has established various policies with respect to such risks which set forth limits, mitigation strategies and internal controls to be implemented by the three lines of defence approach provided below. The Board oversees the Company’s risk management and has constituted a Risk Management Committee (“RMC”), which frames and reviews risk management processes and controls. The risk management system features a “three lines of defense” approach:

1. The first line of defense comprises its operational departments, which assume primary responsibility for their own risks and operate within the limits stipulated in various policies approved by the Board or by committees constituted by the Board.

2. The second line of defense comprises specialised departments such as risk management and compliance. They employ specialised methods to identify and assess risks faced by the operational departments and provide them with specialised risk management tools and methods, facilitate and monitor the implementation of effective risk management practices, develop monitoring tools for risk management, internal control and compliance, report risk related information and promote the adoption of appropriate risk prevention measures.

3. The third line of defence comprises the internal audit department and external audit functions. They monitor and conduct periodic evaluations of the risk management, internal control and compliance activities to ensure the adequacy of risk controls and appropriate risk governance and provide the Board with comprehensive feedback.

a) Credit risk:

It is risk of financial loss that the Company will incur a loss because its customer or counterparty to financial instruments fails to meet its contractual obligation. The Company’s financial assets comprise of Cash and bank balance, Securities for trade, Trade receivables, Loans, Investments and Other financial assets which comprise mainly of deposits and unbilled revenues. The maximum exposure to credit risk at the reporting date is primarily from Co’s trade receivable and loans. Following provides exposure to credit risk for trade receivables & loans:

Trade Receivables:

The Company has followed simplified method of ECL in case of Trade receivables and the Company recognises lifetime expected losses for all trade receivables that do not constitute a financing transaction. At each reporting date, the Company assesses the impairment requirements. Based on the industry practices and business environment in which the entity operates, management considers that the trade receivables are in default if the payment is 90 days overdue. Out of the total trade receivables of Rs. 1.50 Lakh (previous year Rs. 1.76 Lacs) Rs. 0.lacs(previous year Rs. 0.19 lakhs) are overdue for a period in excess of 90 days. probability of default (PD) on balance is considered as nil.

Other financial assets considered to have a low credit risk:

Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks with high credit ratings assigned by international and domestic credit rating agencies. Investments comprise of Quoted

Equity instruments, Bonds, Mutual Funds and Commercial papers which are market tradeable. Other financial assets include deposits with qualified clearing counterparties and exchanges as prescribed statutory limits.

b) Liquidity risk

Liquidity represents the ability of the Company to generate sufficient cash flow to meet its financial obligations on time, both in normal and in stressed conditions, without having to liquidate assets or raise funds at un-favourable terms thus compromising its earnings and capital.

Liquidity risk is the risk that the Company may not be able to generate sufficient cash flow at reasonable cost to meet expected and / or unexpected claims. It arises in the funding of lending, trading and investment activities and in the management of trading positions.

The Company aims to maintain the level of its cash and cash equivalents and other highly marketable investments at an amount in excess of expected cash outflow on financial liabilities. This is sufficient to take care of short period requirements as well.

MATURITY ANALYSIS

The table below summarize the maturity profile of the undiscounted cash flow of the Company’s financial assets and liabilities as at 31.03.2024.

c) Market risk

Market risk arises when movements in market factors (foreign exchange rates, interest rates, credit spreads and equity prices) impact the Company’s income or the market value of its portfolios. The Company, in its course of business, is exposed to market risk due to change in equity prices, interest rates and foreign exchange rates. The objective of market risk management is to maintain an acceptable level of market risk exposure while aiming to maximize returns. The Company classifies exposures to market risk into either trading or non-trading portfolios. Both the portfolios are managed using the following sensitivity analyses: i) Equity Price Risk; ii)Interest Rate Risk ; iii)Currency Risk

i. Equity Price Risk

The Company’s exposure to equity price risk arises primarily on account of its proprietary positions and on account of margin-based positions of its clients in equity cash and derivative segments. The

Company’s equity price risk is managed in accordance with its Corporate Risk and Investment Policy (CRIP) approved by its Risk Management Committee. The CRIP specifies exposure limits and risk limits for the proprietary desk of the Company and stipulates risk-based margin requirements for margin-based trading in equity cash and derivative segment by its clients. The below sensitivity depicts a scenario where a 10% movement in equity prices, everything else remaining constant, would result in an exchange obligation for both Traded and Non-traded (client) positions and their impact on statement of profit and loss account considering that the entire shortfall would be made good by the Company.

ii. Interest Rate

The Company’s exposure to interest rate risk arises primarily on account of its proprietary positions and on account of marginbased positions of its clients in exchange traded interest rate derivatives on government securities. However, the company’s exposure to Interest segment is nil during the year under review.

The Company’s interest rate risk is managed in accordance with its CRIP approved by its Risk Management Committee. The CRIP specifies exposure limits and risk limits for the proprietary desk of the Company and stipulates risk-based margin requirements for margin based trading in interest rate derivatives by its clients.

The non-traded Financial Assets and liabilities are fixed rate instruments and are valued at amortised cost. Any shifts in yield curve will not impact their carrying amount and will therefore not have any impact on the Company’s statement of profit and loss.

iii. Foreign Exchange Risk/Currency Risk

The Company’s exposure to currency risk arises primarily on account of its proprietary positions and on account of margin positions of its clients in exchange traded currency derivatives. However, the Company’s exposure to exchange traded currency derivates is nil during the year under review.

Note 33: Additional Regulatory information as required per schedule III 1. Details of Benami property held:

No proceedings have been initiated on or are pending against the company for holding Benami property under the Benami transactions (prohibition ) act,1988 and rules made thereunder.

ii. Willful defaulter:

The company has not been declared willful defaulter by any Bank,FII, Government or government authority

iii. Relationship with struck off companies:

The company has no txns. with any company which has been struck off under Companies Act,2013 or 1956

iv. Compliance with number of layers of companies:

The company has complied with the number of layers prescribed under the companies act,2013

v. Compliance with approved scheme of arrangements:

The company has not entered into any scheme of arrangement which has an accounting impact in the current or previous financial year.

vi. Utilization of Borrowed funds and share premium:

(i) The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities(intermediaries) with the understanding that the intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(ii) The company has not received any fund from any other person(s) or entity(ies), including foreign entities(funding party) with the understanding that the company shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

vii. Undisclosed Income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the income tax act,1961, that has not been recorded in the books of accounts.

viii. Details of crypto currency or virtual currency :The company has not traded or invested in the crypto currency or virtual currency during the current of previous year.

ix. Valuation of property, plant&Equipment,right-of-use assets,investment properties & intangible assets:

The company has not revalued its property, plant and Equipment, right-of-use assets, investment properties and intangible assets during the current of previous year.

x. Others:

The company has not received any whistle blower complaints during the current of previous year. Note 34: Details of Micro,small and medium enterprises(MSME)

There have been no reported cases of delays in payment to Micro,small and medium enterprises(MSME) or of interest payments due to delays in such payments.

There is no supplier and buyer coverage under Micro,small and medium enterprises development Act,2006.

No enterprises have been identified as a "Supplier” under the Micro,small and medium enterprises(MSME) Development Act,2006. The aforesaid identification has been done on the basis of information, to the extent provided by the vendors to the company. This has been relied upon by the Auditors.

Note 35: Impact of Covid-19

The company is in the business of share broking and depository. The company has assessed the possible impact of Covid-19 on the financial statements and concluded that no adjustment is required in financial statements. The company continue to monitor the future economic conditions. Note36: Code of Social Security:

The Code of Social Security,2020(Code) relating to employee benefit during employment and post employment received Parliament approval and the Presidential assent in September 2020. The Code has been published in the gazette and subsequently on 13.11.2020, draft rules were published and invited for stakeholders’

suggestions. However, the date on which Code will come into effect has not been notified as on date. The company will assess the impact of the code as and when the same comes into effect and accordingly, record any related impact in the year the code becomes effective.

Note 37: CSR activities

Where the company covered under section 135 of the Companies act,the following shall be

disclosed with regard to CSR activities: Not applicable on the company

i. Amount required to be spent by the company:Nil, ii. amount of expenditure incurred: Nil

iii. Shortfall at end of the year: Nil iv. total of previous year shortfall: Nil

v. Reason for shortfall: NA, vi. nature of CSR activities: NA

vii. Details of related party transactions e.g. Contribution to the trust controlled by the co. Nil

viii. where provision is made w.r.t. liability incurred by entering into a contractual obligation, the movements in the provision during the financial year should be shown separately.

Note 38: As per Accounting standard(Ind.AS19),”Employee benefits”,

The disclosure of employee benefits as defined in the AS are given below:-

Both in respect to defined Contribution Plan and defined Benefit Plan are not applicable on the company during the current year or the previous year.The provisions of the Provident Act and the Gratuity Act are not applicable on the company during the current year or the previous year.

Note39: Additional information as required under Schedule III of the Companies Act,2013 The company is into the business of stock broking, investment & depository, hence there are nil amount of Raw materials,WIP , stores and spares, both indigenous or imported, during the current year or the previous year.

Note 40: Economic Assumptions

The principal assumptions are the discount rate and salary growth rate. The discount rate is generally based on the market yields available on the government bonds at the accounting date with a term that matches that of the liabilities & salary growth rate takes account of inflation, seniority, promotion & other factors on long term basis.

Note No. 41: Balances of Sundry Creditors and Debtors are subject to their confirmation.

Note No.42: The figures have been rounded off to the nearest rupee. The previous years’ figures have been re-grouped, re-arranged, re-classified wherever necessary to facilitate comparison with current years’ figures.

Note No. 43: There have been no events after reporting date that require disclosure in these financial statements.

Note No. 44: Disclosure under Regulation 34(3) of the SEBI (LODR), Regulation, 2015

There are no loans & advances in nature of loans given to subsidiaries, ,associates& firms/Cos.in which director are interested.

Notes 1 to 44 forming an integral part of the financial statements.

As per our report of even date attached.

For: Satya Prakash Garg &CO. For & On behalf of Board of Directors

CHARTERED ACCOUNTANTS Firm No. 017544N

Kiran Goyal Ashwani Goyal

Managing Director Director

(Satya Prakash Garg) DIN: 00503357 DIN: 00502989

Partner (M. No.083816)

Place:Delhi Pradeep Kumar

Date:30^thMay,2024 Chief Financial Officer

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Mar 31, 2015

1 Auditors Remuneration

Auditors remuneration comprises of fees to statutory auditors Rs30000 (Prev. year: Rs.30000), & for IT-44AB report & expenses reimbursement: Rs.20000 (pre. year: Rs.20000)

2 Foreign Currency Transactions

There is no foreign currency transaction made by the company during the current and the previous year.

2014-15 2013-14

i) Expenditure in foreign Currency NIL NIL

ii) CIF Value of Imports NIL NIL

3 Segment Reporting

The company is principally engaged in a single business segment viz: Broking & Trading in Shares, Mutual Funds & Depository services. Accordingly there are no separate reportable segments as per accounting standard 17 on "Segment reporting".

4 The figures have been rounded off to the nearest rupee. The previous years'' figures have been re-grouped, re-arranged, re-classified wherever necessary to facilitate comparison with the current years'' figures.

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Mar 31, 2014

Note no. 1 : SHARE CAPITAL

Rights of shareholders

The company has only one class of equity shareholders. Each holder of equity shares is entitled to one vote per share.

Note no. 2: Current liabilities

i) Current liabilities do not include any amount to be credited to Investor.

ii) No interest payments have been made during the year

Note no. 3: Fixed Assets

Note: There are no intangible assets accounted for in the balance sheet

Note no. 4: Related Party Disclosures

Name of the related Parties & Description of relationship:

a) Subsidiaries: Nil

b) Associates

i) Nikiya Exports P. Ltd.

ii) Nam Credit & Invt. Consultants Ltd

iii) Agile commodities P. Ltd.

c) Key Management Personnel: Kiran Goyal & Divya Goyal

d) Description of relationship between the parties

Presumption of significance influence

Note no. 5: Auditors Remuneration

Auditors remuneration comprises of fees to statutory auditors Rs. 30000 (previous year: Rs.30000), & for services & expenses reimbursement: Rs.20000 (previous year: Rs.20000)

Note no. 6: Foreign Currency Transactions

There is no foreign currency transaction made by the company during the current and the previous year.

Note No. 7:

The company is principally engaged in a single business segment viz: Broking & Trading in Shares, Mutual Funds & Depository services. Accordingly there are no separate reportable segments as per accounting standard 17 on "Segment reporting"

Note no. 8:

The figures have been rounded off to the nearest rupee. The previous'' years figures have been re-grouped, re-arranged, re-classified wherever necessary to facilitate comparison with the current years'' figures.