Accounting Policies of Summit Securities Ltd. Company

Mar 31, 2025

2 (A). Material Accounting policies

(1) Basis of Preparation

These standalone financial statements of the
Company have been prepared in accordance with
Indian Accounting Standards (Ind AS) notified under
Section 133 of the Companies Act, 2013 (the ''Act'')
Companies (Indian Accounting Standards) Rules,
2015, (as amended from time to time) along with other
relevant provisions of the Act and the Master Direction-
Non-Banking Financial Company - Systematically
Important Non-Deposit taking Company and Deposit
taking Company (Reserve Bank) Directions, 2016
(the ''NBFC Master Directions'') issued by RBI and
the regulatory guidance on implementation of Ind AS
notified by the RBI vide notification dated 13th March
2020.

The Guidance Note on Division III of Schedule III to the
Act, issued by the Institute of Chartered Accountants
of India (“ICAI”) has been followed insofar as they are
not inconsistent with any of these Directions.

The Balance sheet, the Statement of profit and
loss and the Statement of changes in equity are
prepared and presented in the format prescribed in
the Division III of Schedule III to the Act applicable
for Non-Banking Finance Companies (''NBFC''). The
Statement of Cash Flows has been prepared and
presented as per the requirements of Ind AS 7,
Statement of Cash Flows.

The financial statements have been prepared on
a historical cost basis, except for certain financial
assets and financial liabilities that are measured at
fair value at the end of each reporting period.

The Company presents its balance sheet in order of
liquidity. An analysis regarding recovery or settlement
within 12 months after the reporting date (current)
and more than 12 months after the reporting date
(noncurrent) is presented in note 30.

All amounts disclosed in the standalone financial
statements and notes are presented in Rs. lakhs and
have been rounded off to two decimals as per the
requirement of Division III of Schedule III to the Act,
unless otherwise stated.

(2) Use of accounting judgements, estimates and
assumptions

The preparation of the standalone financial statements
requires management to make judgements,
estimates and assumptions that affect the reported
amount of revenues, expenses, assets and liabilities,
and the accompanying disclosures, as well as the
disclosure of contingent liabilities. Uncertainty about
these assumptions and estimates could result in
outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in
future periods. The Company continually evaluates
these estimates and assumptions based on the most
recently available information. The management
believes that the estimates used in preparation of the
financial statements are prudent and reasonable.

Business model assessment

Classification and measurement of financial assets
depends on the results of the solely payments
of principal and interest (SPPI) and the business
model test. The Company determines the business
model at a level that reflects how groups of financial
assets are managed together to achieve a business
objective. This assessment includes judgement
reflecting all relevant evidence including how the
performance of the assets is evaluated and their
performance measured, the risks that affect the
performance of the assets and how these are
managed and how the managers of the assets are
compensated. The Company monitors financial
assets measured at amortised cost or fair value
through other comprehensive income (FVTOCI) that
are derecognised prior to their maturity to understand
the reason for their disposal and whether the reasons
are consistent with the objective of the business for
which the asset was held. Monitoring is part of the
Company''s continuous assessment of whether the
business model for which the remaining financial
assets are held continues to be appropriate and if it is
not appropriate whether there has been a change in
business model and so a prospective change to the
classification of those assets.

Fair value of financial instruments

The fair value of financial instruments 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 another valuation technique.
When the fair values of financial assets and financial
liabilities recorded in the Balance Sheet cannot be

derived from active markets, they are determined
using a variety of valuation techniques that include
the use of valuation models. The inputs to these
models are taken from observable markets where
possible, but where this is not feasible, estimation
is required in establishing fair values. Judgements
and estimates include considerations of liquidity and
model inputs related to items such as credit risk (both
own and counterparty), funding value adjustments,
correlation and volatility.

Provisions and other contingent liabilities

The Company operates in a regulatory and legal
environment that, by nature, has a heightened
element of litigation risk inherent to its operations. As
a result, it is involved in various litigation, arbitration
and regulatory investigations and proceedings in the
ordinary course of the Company''s business. When
the Company can reliably measure the outflow of
economic benefits in relation to a specific case and
considers such outflows to be probable, the Company
records a provision against the case. Where the
probability of outflow is remote or probable, but
a reliable estimate cannot be made, a contingent
liability is disclosed. Given the subjectivity and
uncertainty of determining the probability and amount
of losses, the Company takes into account a number
of factors including legal advice, the stage of the
matter and historical evidence from similar incidents.
Significant judgement is required to conclude on
these estimates.

Commitments

Commitments are future liabilities for contractual
expenditure, classified and disclosed as follows:

a) Estimated amounts of contracts remaining to be
executed on capital account and not provided
for;

b) Uncalled liability on shares and other investments
partly paid;

c) Funding related commitment to other companies,
if any; and

d) Other non-cancellable commitments, if any,
to the extent they are considered material and
relevant in the opinion of management.

2 (B). Other Accounting Policies

(1) Revenue recognition

Revenue is recognized to the extent that it is probable
that the economic benefit will flow to the company
and the revenue can be reliably measured and there
exists reasonable certainty of its recovery. Revenue
is measured at the fair value of the consideration
received or receivable as reduced for estimated
customer credits and other similar allowances.

Interest income {Effective interest rate method
(EIR)}

Under Ind AS 109, Financial Instruments, interest
income is recorded using the EIR method for all
financial instruments measured at amortised cost,
debt instrument measured at Fair Value Through
Other Comprehensive Income (FVTOCI) and debt
instruments designated at Fair Value Through Profit
or Loss (FVTPL). The EIR is the rate that exactly
discounts estimated future cash receipts through
the expected life of the financial instrument or, when
appropriate, a shorter period, to the net carrying
amount of the financial asset. The EIR (and therefore,
the amortised cost of the asset) is calculated by taking
into account any discount or premium on acquisition,
fees and costs that are an integral part of the EIR.
The Company recognises interest income using a
rate of return that represents the best estimate of a
constant rate of return over the expected life of the
loan. Hence, it recognises the effect of potentially
different interest rates charged at various stages,
and other characteristics of the product life cycle
(including prepayments, penalty interest and
charges). If expectations regarding the cash flows on
the financial asset are revised for reasons other than
credit risk. The adjustment is booked as a positive
or negative adjustment to the carrying amount of
the asset in the Balance sheet with an increase or
reduction in interest income. The adjustment is
subsequently amortised through interest income in
the Statement of profit and loss.

The Company calculates interest income by applying
the EIR to the gross carrying amount of financial
assets other than credit-impaired assets net of
upfront processing fees. When a financial asset
becomes credit-impaired and is, therefore, regarded
as ''Stage 3'', the Company calculates interest income
by applying the effective interest rate to the net
amortised cost of the financial asset. If the financial
assets cures and is no longer credit-impaired, the
Company reverts to calculating interest income on
a gross basis. For purchased or originated credit-
impaired (POCI) financial assets, the Company
calculates interest income by calculating the credit-
adjusted EIR and applying that rate to the amortised
cost of the asset. The credit adjusted EIR is the
interest rate that, at original recognition, discounts the
estimated future cash flows (including credit losses)
to the amortised cost of the POCI assets. Interest
income on all trading assets and financial assets
mandatorily required to be measured at FVTPL is
recognised using the contractual interest rate in net
gain on fair value changes.

Dividend income

Dividend income (including from FVTOCI investments)
is recognised when the Company''s right to receive
the payment is established, it is probable that the
economic benefits associated with the dividend will

flow to the entity and the amount of the dividend can
be measured reliably. This is generally when the
shareholders approve the dividend.

Dividend Income on Financial Assets at FVTPL is
shown separately under Income and it is not forming
part of Fair value Changes.

Net gain on fair value changes

Any differences between the fair values of the
financial assets classified as fair value through the
profit or loss, held by the Company on the Balance
Sheet date is recognised as an unrealised gain/loss
in the statement of profit and loss. In cases there
is a net gain in aggregate, the same is recognised
in ''Net gains or fair value changes'' under revenue
from operations and if there is a net loss the same is
disclosed ''Expenses'', in the Statement of profit and
loss.

(2) Financial instruments
Point of recognition

Financial assets and liabilities, with the exception of
loans, debt securities, deposits and borrowings are
initially recognised on the trade date, i.e., the date
that the Company becomes a party to the contractual
provisions of the instrument. This includes regular
way trades: purchases or sales of financial assets
that require delivery of assets within the time frame
generally established by regulation or convention in
the marketplace. Loans are recognised when funds
are transferred to the customers'' account. The
Company recognises debt securities, deposits and
borrowings when funds reach the Company.

Initial recognition

The classification of financial instruments at initial
recognition depends on their contractual terms and
the business model for managing the instruments,
as per the principles of the Ind AS 109, Financial
instruments are initially measured at their fair value,
except in the case of financial assets and financial
liabilities recorded at FVTPL, transaction costs are
added to, or subtracted from, this amount. Trade
receivables are measured at the transaction price.
When the fair value of financial instruments at initial
recognition differs from the transaction price, the
Company accounts mentioned below:

When the transaction price of the instrument differs
from the fair value at origination and the fair value
is based on a valuation technique using only inputs
observable in market transactions, the Company
recognises the difference between the transaction
price and fair value in net gain on fair value changes.
In those cases where fair value is based on models
for which some of the inputs are not observable, the
difference between the transaction price and the fair
value is deferred and is only recognised in profit or
loss when the inputs become observable, or when

the instrument is derecognised.

Subsequent measurement of financial assets

For subsequent measurement, the Company
classifies a financial asset in accordance with the
below criteria:

i. The Company''s business model for managing
the financial asset; and

ii. The contractual cash flow characteristics of the
financial asset.

Based on the above criteria, the Company
classifies its financial assets into the following
categories:

(a) Financial assets measured at amortized cost:

A Financial asset is measured at the amortized cost if
both the following conditions are met:

(i) The Company''s business model objective for
managing the financial asset is to hold financial
assets in order to collect contractual cash flows;
and

(ii) 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.

This category applies to cash and bank balances,
trade receivables, loans and other financial assets of
the Company. Such financial assets are subsequently
measured at amortized cost using the effective
interest method. Under the effective interest method,
the future cash receipts are exactly discounted
to the initial recognition value using the effective
interest rate. The cumulative amortization using the
effective interest method of the difference between
the initial recognition amount and the maturity
amount is added to the initial recognition value (net
of principal repayments, if any) of the financial asset
over the relevant period of the financial asset to
arrive at the amortized cost at each reporting date.
The corresponding effect of the amortization under
effective interest method is recognized as interest
income over the relevant period of the financial asset.
The same is included under other income in the
Statement of profit and loss. The amortized cost of a
financial asset is also adjusted for loss allowance, if
any.

(b) Financial assets measured at FVTOCI:

A financial asset is measured at FVTOCI if both of the
following conditions are met:

(i) The Company''s business model objective for
managing the financial asset is achieved both by
collecting contractual cash flows and selling the
financial assets; and

(ii) 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.

This category applies to certain investments in
debt and equity instruments. Such financial assets
are subsequently measured at fair value at each
reporting date. Fair value changes are recognized
in the Statement of profit and loss under ''Other
Comprehensive Income (OCI)''. However, the
Company recognizes interest income and impairment
losses and its reversals in the Statement of Profit and
Loss. On de-recognition of such financial assets,
cumulative gain or loss previously recognized in
OCI is reclassified from equity to the Statement of
profit and loss, except for instruments which the
Company has irrevocably elected to be classified as
equity through OCI at initial recognition, when such
instruments meet the definition of Equity under Ind
AS 32, Financial Instruments: Presentation and they
are not held for trading. The Company has made
such election on instrument by instrument basis.

Gains and losses on these equity instruments
are never recycled to profit or loss. Dividends are
recognised in the Statement of Profit or Loss as
dividend income when the right of the payment
has been established, except when the Company
benefits from such proceeds as a recovery of part of
the cost of the instrument, in which case, such gains
are recorded in OCI. Equity instruments at FVTOCI
are not subject to an impairment assessment.

(c) Financial assets measured at FVTPL

A financial asset is measured at FVTPL unless it
is measured at amortized cost or at FVTOCI as
explained above. This is a residual category applied
to all other investments of the Company excluding
investments in subsidiary and associate companies.
Such financial assets are subsequently measured at
fair value at each reporting date. Fair value changes
are recognized in the Statement of Profit and Loss.

Financial assets or financial liabilities held for
trading

The Company classifies financial assets as held for
trading when they have been purchased or issued
primarily for short-term profit making through trading
activities or form part of a portfolio of financial
instruments that are managed together, for which
there is evidence of a recent pattern of short-term
profit taking. Held-For-Trading assets and liabilities
are recorded and measured in the Balance sheet at
fair value. Changes in fair value are recognised in net
gain on fair value changes.

Interest and dividend income or expense is recorded
in net gain on fair value changes according to the
terms of the contract, or when the right to payment
has been established. Included in this classification

are debt securities, equities, and customer loans that
have been acquired principally for the purpose of
selling or repurchasing in the near term.

De-recognition

(a) Financial asset

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is derecognized (i.e. removed from the
Company''s Balance sheet) when any of the following
occurs:

i. The contractual rights to receive cash flows from
the financial asset expires;

ii. The Company transfers its contractual rights to
receive cash flows of the financial asset and has
substantially transferred all the risks and rewards
of ownership of the financial asset. A regular way
purchase or sale of financial assets has been
derecognised, as applicable, using trade date
accounting.

iii. The Company retains the contractual rights to
receive cash flows but assumes a contractual
obligation to pay the cash flows without material
delay to one or more recipients under a ''pass¬
through'' arrangement (thereby substantially
transferring all the risks and rewards of ownership
of the financial asset).

iv. The Company neither transfers nor retains
substantially all risk and rewards of ownership
and does not retain control over the financial
asset.

In cases where Company has neither transferred
nor retained substantially all the risks and rewards
of the financial asset, but retains control of the
financial asset, the Company continues to recognize
such financial asset to the extent of its continuing
involvement in the financial asset. In that case, the
Company also recognizes an associated liability.
The financial asset and the associated liability are
measured on a basis that reflects the rights and
obligations that the Company has retained.

On de-recognition of a financial asset, (except as
mentioned in ii above for financial assets measured
at FVTOCI), the difference between the carrying
amount and the consideration received is recognized
in the Statement of profit and loss.

(b) Financial liability

A financial liability is derecognised when the obligation
under the liability is discharged, cancelled or expires.
Where an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as a de-recognition of the

original liability and the recognition of a new liability.
The difference between the carrying value of the
original financial liability and the consideration paid is
recognised in profit or loss.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies
expected credit loss (''ECL'') model for measurement
and recognition of impairment loss for financial
assets.

ECL is the weighted-average of difference between
all contractual cash flows that are due to the Company
in accordance with the contract and all the cash flows
that the Company expects to receive, discounted at
the original effective interest rate, with the respective
risks of default occurring as the weights. When
estimating the cash flows, the Company is required
to consider:

- All contractual terms of the financial assets
(including prepayment and extension) over the
expected life of the assets.

- Cash flows from the sale of collateral held or
other credit enhancements that are integral to
the contractual terms.

Trade receivables

In respect of trade receivables, the Company applies
the simplified approach of Ind AS 109, which requires
measurement of loss allowance at an amount equal
to lifetime expected credit losses. Lifetime expected
credit losses are the expected credit losses that result
from all possible default events over the expected life
of a financial instrument.

Other financial assets

In respect of its other financial assets, the Company
assesses if the credit risk on those financial assets
has increased significantly since initial recognition. If
the credit risk has not increased significantly since
initial recognition, the Company measures the loss
allowance at an amount equal to 12 month expected
credit losses, else at an amount equal to the lifetime
expected credit losses.

When making this assessment, the Company uses
the change in the risk of a default occurring over
the expected life of the financial asset. To make
that assessment, the Company compares the risk
of a default occurring on the financial asset as at
the Balance sheet date with the risk of a default
occurring on the financial asset as at the date of
initial recognition and considers reasonable and
supportable information, that is available without
undue cost or effort, that is indicative of significant
increases in credit risk since initial recognition. The
Company assumes that the credit risk on a financial
asset has not increased significantly since initial
recognition if the financial asset is determined to
have low credit risk at the Balance Sheet date.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and
the net amount is reported in the Balance Sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

(3) Fair value measurement

The Company measures its financial instruments at
fair value in accordance with the accounting policies
mentioned above. Fair value is the price that would
be received to sell an asset or paid to transfer a
liability in an orderly transaction between market
participants at the measurement date. The fair value
measurement is based on the presumption that the
transaction to sell the asset or transfer the liability
takes place either:

• In the principal market for the asset or liability, or

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

All assets and liabilities for which fair value is
measured or disclosed in the standalone financial
statements are categorized within the fair value
hierarchy that categorizes into three levels, described
as follows, the inputs to valuation techniques used
to measure value. The fair value hierarchy gives the
highest priority to quoted prices in active markets
for identical assets or liabilities (Level 1 input) and
the lowest priority to unobservable inputs (Level 3
inputs).

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

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

unobservable inputs which are significant to the
entire measurement, the Company will classify
the instruments as Level 3.

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

For assets and liabilities that are recognized in the
financial statements at fair value on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hierarchy by re¬
assessing categorization at the end of each reporting
period and discloses the same.

(4) Cash and Cash Equivalents (refer notes 3 & 4)

Cash and cash equivalents for the purpose of Cash
Flow Statement comprise cash and cheques in hand,
bank balances, demand deposits with banks where
the original maturity is three months or less and other
short term highly liquid investments.

(5) Investment in subsidiaries (refer note 5)

Investment in subsidiaries is recognised at cost and
are not adjusted to fair value at the end of each
reporting period. Cost of investment represents
amount paid for acquisition of the said investment.

The Company assesses at the end of each reporting
period, if there are any indications that the said
investment may be impaired. If so, the Company
estimates the recoverable value/amount of the
investment and provides for impairment, if any, i.e.,
the deficit in the recoverable value over cost.

(6) Property, plant and equipment (PPE) (refer note 7)
Measurement at recognition

An item of PPE that qualifies as an asset is
measured on initial recognition at cost. Following
initial recognition, items of PPE are carried at its cost
less accumulated depreciation and accumulated
impairment losses.

The cost of an item of PPE comprises of its
purchase price including import duties and other
non-refundable purchase taxes or levies, directly
attributable cost of bringing the asset to its working
condition for its intended use and the initial estimate
of decommissioning, restoration and similar liabilities,
if any. Any trade discounts and rebates are deducted
in arriving at the purchase price. Cost includes cost
of replacing a part of a plant and equipment if the
recognition criteria are met. Items such as, spare
parts, stand-by equipment and servicing equipment
that meet the definition of PPE are capitalized at cost
and depreciated over their useful life. Costs in nature
of repairs and maintenance are recognized in the
Statement of profit and loss as and when incurred.

The residual values, useful lives and methods of
depreciation of property, plant and equipment are

reviewed at each financial year end and adjusted
prospectively, if appropriate.

Capital work-in-progress and capital advances

Cost of assets not ready for intended use, as on
the Balance sheet date, is shown as capital work-
in-progress. Advances given towards acquisition of
PPE outstanding at each Balance sheet date are
disclosed as other non-financial assets.

Depreciation

Depreciation on each part of an item of property, plant
and equipment is provided using the written down
value method based on the useful life of the asset
as prescribed in Schedule II to the Act. Depreciation
is calculated on a pro-rata basis from the date of
installation till date the assets are sold or disposed.
Leasehold improvements are amortised over the
underlying lease term on a straight-line basis.

De-recognition

The carrying amount of an item of PPE is derecognized
on disposal or when no future economic benefits are
expected from its use or disposal. The gain or loss
arising from the de-recognition of an item of PPE is
measured as the difference between the net disposal
proceeds and the carrying amount of the item and is
recognized in the Statement of profit and loss when
the item is derecognized.

(7) Income Taxes (refer note 23 and 11)

Tax expense is the aggregate amount included in the
determination of profit or loss for the period in respect
of current tax and deferred tax.

Current tax

Current tax is the amount of income taxes payable
in respect of taxable profit for a period. Taxable
profit differs from ''profit before tax'' as reported in
the Statement of profit and loss because of items
of income or expense that are taxable or deductible
in other years and items that are never taxable
or deductible under the Income Tax Act, 1961.
Current tax is measured using tax rates that have
been enacted by the end of reporting period for the
amounts expected to be recovered from or paid to the
taxation authorities.

Current income tax relating to items recognised
outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).
Current tax items are recognised in correlation to
the underlying transaction either in OCI or directly in
equity. Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject to
interpretation and establishes provisions where
appropriate.

Deferred tax

Deferred tax is recognized on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax
bases used in the computation of taxable profit under
Income tax Act, 1961.

Deferred tax liabilities are generally recognized for all
taxable temporary differences. However, in case of
temporary differences that arise from initial recognition
of assets or liabilities in a transaction (other than
business combination) that affect neither the taxable
profit nor the accounting profit, deferred tax liabilities
are not recognized. Also, for temporary differences if
any that may arise from initial recognition of goodwill,
deferred tax liabilities are not recognized.

Deferred tax assets are generally recognized for all
deductible temporary differences to the extent it is
probable that taxable profits will be available against
which those deductible temporary difference can be
utilized. In case of temporary differences that arise
from initial recognition of assets or liabilities in a
transaction (other than business combination) that
affect neither the taxable profit nor the accounting
profit, deferred tax assets are not recognized. The
carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient
taxable profits will be available to allow the benefits of
part or all such deferred tax assets to be utilized.

Deferred tax assets and liabilities are measured at
the tax rates that have been enacted or substantively
enacted by the Balance Sheet date and are expected
to apply to taxable income in the years in which those
temporary differences are expected to be recovered
or settled.

The Company has not recognised a deferred
tax liability for all taxable temporary differences
associated with investments in subsidiaries, except
to the extent that both of the following conditions are
satisfied:

- the parent, investor, joint venture or joint operator
is able to control the timing of the reversal of the
temporary difference; and

- it is probable that the temporary difference will
not reverse in the foreseeable future.

Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity).
Deferred tax items are recognised in correlation to
the underlying transaction either in OCI or directly in
equity.

Deferred tax assets include Minimum Alternative Tax
(MAT) paid in accordance with the tax laws in India,
to the extent it would be available for set off against
future current income tax liability. Accordingly, MAT

is recognised as deferred tax asset in the Balance
Sheet when the asset can be measured reliably,
and it is probable that the future economic benefit
associated with the asset will be realised.

Presentation of current and deferred tax

Current and deferred tax are recognized as income
or an expense in the Statement of Profit and Loss,
except when they relate to items that are recognized
in Other Comprehensive Income, in which case,
the current and deferred tax income/expense are
recognized in Other Comprehensive Income. The
Company offsets current tax assets and current tax
liabilities, where it has a legally enforceable right to
set off the recognized amounts and where it intends
either to settle on a net basis, or to realize the asset and
settle the liability simultaneously. In case of deferred
tax assets and deferred tax liabilities, the same are
offset if the Company has a legally enforceable right
to set off corresponding current tax assets against
current tax liabilities and the deferred tax assets and
deferred tax liabilities relate to income taxes levied by
the same tax authority on the Company.

Minimum Alternate Tax (MAT) credit is recognised
as an asset only when and to the extent there is
convincing evidence that the Company will pay normal
income tax during the specified period. Such asset is
reviewed at each Balance Sheet date and the carrying
amount of the MAT credit asset is written down to the
extent there is no longer convincing evidence to the
effect that the company will pay normal income tax
during the specified period. Further, the MAT credit
is not set-off against the deferred tax liabilities, since
the Company does not have a legally enforceable
right to set-off.

---

Mar 31, 2024

2 (A). Material Accounting policies

(1) Basis of Preparation

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the ''Act'') Companies (Indian Accounting Standards) Rules, 2015, (as amended from time to time) along with other relevant provisions of the Act and the Master Direction- Non-Banking Financial Company - Systematically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 (the ''NBFC Master Directions'') issued by RBI and the regulatory guidance on implementation of Ind AS notified by the RBI vide notification dated 13th March 2020.

The Guidance Note on Division III of Schedule III to the Act, issued by the Institute of Chartered Accountants of India (“ICAI”) has been followed insofar as they are not inconsistent with any of these Directions.

The Balance sheet, the Statement of profit and loss and the Statement of changes in equity are prepared and presented in the format prescribed in the Division III of Schedule III to the Act applicable for Non-Banking Finance Companies (''NBFC''). The Statement of Cash Flows has been prepared and presented as per the requirements of Ind AS 7, Statement of Cash Flows.

The financial statements have been prepared on a historical cost basis, except for certain financial assets and financial liabilities that are measured at fair value at the end of each reporting period.

All amounts disclosed in the standalone financial statements and notes are presented in Rs. lakhs and have been rounded off to two decimals as per the requirement of Division III of Schedule III to the Act, unless otherwise stated.

(2) Use of accounting judgements, estimates and assumptions

The preparation of the standalone financial statements requires management to make Judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying disclosures, as well as the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adJustment to the carrying amount of assets or liabilities affected in future periods. The Company continually evaluates these estimates and assumptions based on the most recently available information. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

Business model assessment

Classification and measurement of financial assets depends on the results of the solely payments of principal and interest (SPPI) and the business model test. The Company determines the business model at a level that reflects how groups of financial assets are managed together to achieve a business obJective. This assessment includes Judgement reflecting all relevant evidence including how the performance of the assets is evaluated and their performance measured, the risks that affect the performance of the assets and how these are managed and how the managers of the assets are compensated. The Company monitors financial assets measured at amortised cost or fair value through other comprehensive income (FVTOCI) that are derecognised prior to their maturity to understand the reason for their disposal and whether the reasons are consistent with the obJective of the business for which the asset was held. Monitoring is part of the Company''s continuous assessment of whether the business model for which the remaining financial assets are held continues to be appropriate and if it is not appropriate whether there has been a change in business model and so a prospective change to the classification of those assets.

Fair value of financial instruments

The fair value of financial instruments 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 another valuation technique. When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be derived from active markets,

they are determined using a variety of valuation techniques that include the use of valuation models. The inputs to these models are taken from observable markets where possible, but where this is not feasible, estimation is required in establishing fair values. Judgements and estimates include considerations of liquidity and model inputs related to items such as credit risk (both own and counterparty), funding value adjustments, correlation and volatility.

Provisions and other contingent liabilities

The Company operates in a regulatory and legal environment that, by nature, has a heightened element of litigation risk inherent to its operations. As a result, it is involved in various litigation, arbitration and regulatory investigations and proceedings in the ordinary course of the Company''s business. When the Company can reliably measure the outflow of economic benefits in relation to a specific case and considers such outflows to be probable, the Company records a provision against the case. Where the probability of outflow is remote or probable, but a reliable estimate cannot be made, a contingent liability is disclosed. Given the subjectivity and uncertainty of determining the probability and amount of losses, the Company takes into account a number of factors including legal advice, the stage of the matter and historical evidence from similar incidents. Significant judgement is required to conclude on these estimates.

Commitments

Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

a) Estimated amounts of contracts remaining to be executed on capital account and not provided for;

b) Uncalled liability on shares and other investments partly paid;

c) Funding related commitment to other companies, if any; and

d) Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.

2(B).Other Accounting Policies

(1) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefit will flow to the company and the revenue can be reliably measured and there exists reasonable certainty of its recovery. Revenue is measured at the fair value of the consideration received or receivable as reduced for estimated customer credits and

other similar allowances.

Interest income {Effective interest rate method (EIR)}

Under Ind AS 109, Financial Instruments, interest income is recorded using the EIR method for all financial instruments measured at amortised cost, debt instrument measured at Fair Value Through Other Comprehensive Income (FVTOCI) and debt instruments designated at Fair Value Through Profit or Loss (FVTPL). The EIR is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset. The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any discount or premium on acquisition, fees and costs that are an integral part of the EIR. The Company recognises interest income using a rate of return that represents the best estimate of a constant rate of return over the expected life of the loan. Hence, it recognises the effect of potentially different interest rates charged at various stages, and other characteristics of the product life cycle (including prepayments, penalty interest and charges). If expectations regarding the cash flows on the financial asset are revised for reasons other than credit risk. The adjustment is booked as a positive or negative adjustment to the carrying amount of the asset in the Balance sheet with an increase or reduction in interest income. The adjustment is subsequently amortised through interest income in the Statement of profit and loss.

The Company calculates interest income by applying the EIR to the gross carrying amount of financial assets other than credit-impaired assets net of upfront processing fees. When a financial asset becomes credit-impaired and is, therefore, regarded as ''Stage 3'', the Company calculates interest income by applying the effective interest rate to the net amortised cost of the financial asset. If the financial assets cures and is no longer credit-impaired, the Company reverts to calculating interest income on a gross basis. For purchased or originated credit-impaired (POCI) financial assets, the Company calculates interest income by calculating the credit-adjusted EIR and applying that rate to the amortised cost of the asset. The credit adjusted EIR is the interest rate that, at original recognition, discounts the estimated future cash flows (including credit losses) to the amortised cost of the POCI assets. Interest income on all trading assets and financial assets mandatorily required to be measured at FVTPL is recognised using the contractual interest rate in net gain on fair value changes.

Dividend income

Dividend income (including from FVTOCI investments) is recognised when the Company''s right to receive the payment is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured reliably. This is generally when the shareholders approve the dividend.

Dividend Income on Financial Assets at FVTPL is shown separately under Income and it is not forming part of Fair value Changes.

Net gain on fair value changes

Any differences between the fair values of the financial assets classified as fair value through the profit or loss, held by the Company on the Balance Sheet date is recognised as an unrealised gain/loss in the statement of profit and loss. In cases there is a net gain in aggregate, the same is recognised in ''Net gains or fair value changes'' under revenue from operations and if there is a net loss the same is disclosed ''Expenses'', in the Statement of profit and loss.

(2) Financial instruments

Point of recognition

Financial assets and liabilities, with the exception of loans, debt securities, deposits and borrowings are initially recognised on the trade date, i.e., the date that the Company becomes a party to the contractual provisions of the instrument. This includes regular way trades: purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the marketplace. Loans are recognised when funds are transferred to the customers'' account. The Company recognises debt securities, deposits and borrowings when funds reach the Company.

Initial recognition

The classification of financial instruments at initial recognition depends on their contractual terms and the business model for managing the instruments, as per the principles of the Ind AS 109, Financial instruments are initially measured at their fair value, except in the case of financial assets and financial liabilities recorded at FVTPL, transaction costs are added to, or subtracted from, this amount. Trade receivables are measured at the transaction price. When the fair value of financial instruments at initial recognition differs from the transaction price, the Company accounts mentioned below:

When the transaction price of the instrument differs from the fair value at origination and the fair value is based on a valuation technique using

only inputs observable in market transactions, the Company recognises the difference between the transaction price and fair value in net gain on fair value changes. In those cases where fair value is based on models for which some of the inputs are not observable, the difference between the transaction price and the fair value is deferred and is only recognised in profit or loss when the inputs become observable, or when the instrument is derecognised.

Subsequent measurement of financial assets

For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:

i. The Company''s business model for managing the financial asset; and

ii. The contractual cash flow characteristics of the financial asset.

Based on the above criteria, the Company classifies its financial assets into the following categories:

(a) Financial assets measured at amortized cost:

A Financial asset is measured at the amortized cost if both the following conditions are met:

(i) The Company''s business model objective for managing the financial asset is to hold financial assets in order to collect contractual cash flows; and

(ii) 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.

This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Company. Such financial assets are subsequently measured at amortized cost using the effective interest method. Under the effective interest method, the future cash receipts are exactly discounted to the initial recognition value using the effective interest rate. The cumulative amortization using the effective interest method of the difference between the initial recognition amount and the maturity amount is added to the initial recognition value (net of principal repayments, if any) of the financial asset over the relevant period of the financial asset to arrive at the amortized cost at each reporting date. The corresponding effect of the amortization under effective interest

method is recognized as interest income over the relevant period of the financial asset. The same is included under other income in the Statement of profit and loss. The amortized cost of a financial asset is also adjusted for loss allowance, if any.

(b) Financial assets measured at FVTOCI

A financial asset is measured at FVTOCI if both of the following conditions are met:

(i) The Company''s business model objective for managing the financial asset is achieved both by collecting contractual cash flows and selling the financial assets; and

(ii) 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.

This category applies to certain investments in debt and equity instruments. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognized in the Statement of profit and loss under ''Other Comprehensive Income (OCI)''. However, the Company recognizes interest income and impairment losses and its reversals in the Statement of Profit and Loss. On de-recognition of such financial assets, cumulative gain or loss previously recognized in OCI is reclassified from equity to the Statement of profit and loss, except for instruments which the Company has irrevocably elected to be classified as equity through OCI at initial recognition, when such instruments meet the definition of Equity under Ind AS 32, Financial Instruments: Presentation and they are not held for trading. The Company has made such election on instrument by instrument basis.

Gains and losses on these equity instruments are never recycled to profit or loss. Dividends are recognised in the Statement of Profit or Loss as dividend income when the right of the payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the instrument, in which case, such gains are recorded in OCI. Equity instruments at FVTOCI are not subject to an impairment assessment.

(c) Financial assets measured at FVTPL

A financial asset is measured at FVTPL unless it is measured at amortized cost or at FVTOCI as explained above. This

is a residual category applied to all other investments of the Company excluding investments in subsidiary and associate companies. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognized in the Statement of Profit and Loss.

Financial assets or financial liabilities held for trading

The Company classifies financial assets as held for trading when they have been purchased or issued primarily for short-term profit making through trading activities or form part of a portfolio of financial instruments that are managed together, for which there is evidence of a recent pattern of short-term profit taking. Held-For-Trading assets and liabilities are recorded and measured in the Balance sheet at fair value. Changes in fair value are recognised in net gain on fair value changes.

Interest and dividend income or expense is recorded in net gain on fair value changes according to the terms of the contract, or when the right to payment has been established. Included in this classification are debt securities, equities, and customer loans that have been acquired principally for the purpose of selling or repurchasing in the near term.

De-recognition

(a) Financial asset

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized (i.e. removed from the Company''s Balance sheet) when any of the following occurs:

i. The contractual rights to receive cash flows from the financial asset expires;

ii. The Company transfers its contractual rights to receive cash flows of the financial asset and has substantially transferred all the risks and rewards of ownership of the financial asset. A regular way purchase or sale of financial assets has been derecognised, as applicable, using trade date accounting.

iii. The Company retains the contractual rights to receive cash flows but assumes a contractual obligation to pay the cash flows without material delay to one or more recipients under a ''pass-through'' arrangement (thereby substantially transferring all the risks and rewards of ownership of the financial asset).

iv. The Company neither transfers nor retains substantially all risk and rewards of ownership and does not retain control over the financial asset.

In cases where Company has neither transferred nor retained substantially all the risks and rewards of the financial asset, but retains control of the financial asset, the Company continues to recognize such financial asset to the extent of its continuing involvement in the financial asset. In that case, the Company also recognizes an associated liability. The financial asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

On de-recognition of a financial asset, (except as mentioned in ii above for financial assets measured at FVTOCI), the difference between the carrying amount and the consideration received is recognized in the Statement of profit and loss.

(b) Financial liability

A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-recognition of the original liability and the recognition of a new liability. The difference between the carrying value of the original financial liability and the consideration paid is recognised in profit or loss.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (‘ECL'') model for measurement and recognition of impairment loss for financial assets.

ECL is the weighted-average of difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider:

- All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.

- Cash flows from the sale of collateral held or other credit enhancements that

are integral to the contractual terms. Trade receivables

In respect of trade receivables, the Company applies the simplified approach of Ind AS 109, which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

Other financial assets

In respect of its other financial assets, the Company assesses if the credit risk on those financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to 12 month expected credit losses, else at an amount equal to the lifetime expected credit losses.

When making this assessment, the Company uses the change in the risk of a default occurring over the expected life of the financial asset. To make that assessment, the Company compares the risk of a default occurring on the financial asset as at the Balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. The Company assumes that the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the Balance Sheet date.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

(3) Fair value measurement

The Company measures its financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the

presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

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

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows, the inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 input) and the lowest priority to unobservable inputs (Level 3 inputs).

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

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

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

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting period and discloses the same.

(4) Cash and Cash Equivalents (refer notes 3 & 4)

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances, demand deposits with banks where the original maturity is three months or less and other short term highly liquid investments.

(5) Investment in subsidiaries (refer note 5)

Investment in subsidiaries is recognised at cost and are not adjusted to fair value at the end of each reporting period. Cost of investment represents amount paid for acquisition of the said investment.

The Company assesses at the end of each reporting period, if there are any indications that the said investment may be impaired. If so, the Company estimates the recoverable value/amount of the investment and provides for impairment, if any, i.e., the deficit in the recoverable value over cost.

(6) Property, plant and equipment (PPE) (refer note 7)

Measurement at recognition

An item of PPE that qualifies as an asset is measured on initial recognition at cost. Following initial recognition, items of PPE are carried at its cost less accumulated depreciation and accumulated impairment losses.

The cost of an item of PPE comprises of its purchase price including import duties and other non-refundable purchase taxes or levies, directly attributable cost of bringing the asset to its working condition for its intended use and the initial estimate of decommissioning, restoration and similar liabilities, if any. Any trade discounts and rebates are deducted in arriving at the purchase price. Cost includes cost of replacing a part of a plant and equipment if the recognition criteria are met. Items such as, spare parts, stand-by equipment and servicing equipment that meet the definition of PPE are capitalized at cost and depreciated over their useful life. Costs in nature of repairs and maintenance are recognized in the Statement of profit and loss as and when incurred.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Capital work-in-progress and capital advances

Cost of assets not ready for intended use, as on the Balance sheet date, is shown as capital work-in-progress. Advances given towards acquisition of PPE outstanding at each Balance sheet date are disclosed as other non-financial assets.

Depreciation

Depreciation on each part of an item of property, plant and equipment is provided using the written down value method based on the useful life of the asset as prescribed in Schedule II to the Act. Depreciation is calculated on a pro-rata basis from the date of installation till date the assets are sold or disposed. Leasehold improvements are amortised over the underlying lease term on a straight-line basis.

De-recognition

The carrying amount of an item of PPE is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item of PPE is measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognized in the Statement of profit and loss when the item is derecognized.

(7) Income Taxes (refer note 11)

Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current tax

Current tax is the amount of income taxes payable in respect of taxable profit for a period. Taxable profit differs from ''profit before tax'' as reported in the Statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible under the Income Tax Act, 1961. Current tax is measured using tax rates that have been enacted by the end of reporting period for the amounts expected to be recovered from or paid to the taxation authorities.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit under Income tax Act, 1961.

Deferred tax liabilities are generally recognized for all taxable temporary differences. However, in case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor the accounting profit, deferred tax liabilities are not recognized. Also, for temporary differences if any that may arise from initial recognition of goodwill, deferred tax liabilities are not recognized.

Deferred tax assets are generally recognized for all deductible temporary differences to the extent it is probable that taxable profits will be available against which those deductible temporary difference can be utilized. In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor the accounting profit, deferred tax assets are not recognized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefits of part or all such deferred tax assets to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

The Company has not recognised a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, except to the extent that both of the following conditions are satisfied:

- The parent, investor, joint venture or joint operator is able to control the timing of the reversal of the temporary difference; and

- It is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, to the extent it would be available for set off against future current income tax liability. Accordingly, MAT is recognised as deferred tax asset in the Balance Sheet when the asset can be measured reliably, and it is probable that the future economic benefit associated with the asset will be realised.

Presentation of current and deferred tax

Current and deferred tax are recognized as income or an expense in the Statement of Profit and Loss, except when they relate to items that are recognized in Other Comprehensive Income, in which case, the current and deferred tax income/expense are recognized in Other Comprehensive Income. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. In case of deferred tax assets and deferred tax liabilities, the same are offset if the Company has a legally enforceable right to set off corresponding current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on the Company.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer convincing evidence to the effect that the company will pay normal income tax during the specified period. Further, the MAT credit is not set-off against the deferred tax liabilities, since the Company does not have a legally enforceable right to set-off.

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Mar 31, 2023

1. Summit Securities Limited (the ''Company'') is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956 and its registered address is 213, Bezzola Complex, B Wing, 71, Sion-Trombay Road, Chembur Mumbai Maharashtra 400071. The Company is listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The Company is a NonDeposit taking Systemically Important Non-Banking Financial Company (''NBFC'') registered with the Reserve Bank of India (the ''RBI'') and is engaged in the business of making investments in shares and securities

The standalone financial statements were approved by Board of Directors on 23rd May 2023.

Basis of Preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the ''Act'') read with the Companies (Indian Accounting Standards) Rules, 2015, (as amended from time to time) along with other relevant provisions of the Act and the Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 (the ''NBFC Master Directions'') issued by RBI and the presentation requirements of Schedule III to the act, as amended by the Companies (Accounts) Amendment Rules, 2021 and made effective from 1st April, 2021. As stated in the above notification, the Company has made the disclosures specified in the Schedule III to the Act, to the extent those disclosures are applicable and reportable. The financial statements have been prepared on a going concern basis. The Company uses accrual basis of accounting except in case of significant uncertainties.

These financial statements have been prepared in accordance with the Accounting Standards notified under the Section 133 of the Act read together with paragraph 7 of the Companies (Accounts) Rules, 2014, along with other relevant provisions of the Act and the Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 (the ''NBFC Master Directions'') issued by RBI and the regulatory guidance on implementation of Ind AS notified by the RBI vide notification dated 13 March 2020.

The Balance sheet and the Statement of profit and loss are prepared and presented in the format prescribed in the Division III of Schedule III to the Act applicable for Non-Banking Finance Companies (''NBFC''). The Statement of Cash Flows has been prepared and presented as per the requirements of Ind AS 7, Statement of Cash Flows.

The financial statements have been prepared on a historical cost basis, except for certain financial assets and financial liabilities that are measured at fair value.

The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial statements along with the other notes required to be disclosed under the notified accounting standards and the SEBI (LODR) Regulations, 2015.

All amounts disclosed in the financial statements and notes are presented in Rs. lakhs and have been rounded off to two decimals as per the requirement of Division III of Schedule III to the Act, unless otherwise stated.

2. Significant Accounting Policies(A) Use of significant judgements, estimates and assumptions

The preparation of the standalone financial statements requires management to make judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying disclosures, as well as the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The Company continually evaluates these estimates and assumptions based on the most recently available information. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

Business model assessment

Classification and measurement of financial assets depends on the results of the solely payments of principal and interest (SPPI) and the business model test. The Company determines the business model at a level that reflects how groups of financial assets are managed together to achieve a business objective. This assessment includes judgement reflecting all relevant evidence including how the performance of the assets is evaluated and their performance measured, the risks that affect the performance of the assets and how these are managed and how the managers of the assets are compensated. The Company monitors financial assets measured at amortised cost or fair value through other comprehensive income (FVTOCI) that are derecognised prior to their maturity to understand the reason for their disposal and whether the reasons are consistent with the objective of the business for which the asset was held. Monitoring is part of the Company''s continuous assessment of whether the business model for which the remaining financial

assets are held continues to be appropriate and if it is not appropriate whether there has been a change in business model and so a prospective change to the classification of those assets.

Fair value of financial instruments

The fair value of financial instruments 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 another valuation technique. When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of valuation models. The inputs to these models are taken from observable markets where possible, but where this is not feasible, estimation is required in establishing fair values. Judgements and estimates include considerations of liquidity and model inputs related to items such as credit risk (both own and counterparty), funding value adjustments, correlation and volatility.

Provisions and other contingent liabilities

The Company operates in a regulatory and legal environment that, by nature, has a heightened element of litigation risk inherent to its operations. As a result, it is involved in various litigation, arbitration and regulatory investigations and proceedings in the ordinary course of the Company''s business. When the Company can reliably measure the outflow of economic benefits in relation to a specific case and considers such outflows to be probable, the Company records a provision against the case. Where the probability of outflow is remote or probable, but a reliable estimate cannot be made, a contingent liability is disclosed. Given the subjectivity and uncertainty of determining the probability and amount of losses, the Company takes into account a number of factors including legal advice, the stage of the matter and historical evidence from similar incidents. Significant judgement is required to conclude on these estimates.

Commitments

Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

a) estimated amounts of contracts remaining to be executed on capital account and not provided for;

b) uncalled liability on shares and other investments partly paid;

c) funding related commitment to other companies, if any; and

d) other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.

(B) Revenue recognition

Interest income {Effective interest rate method (EIR)}

Under Ind AS 109, Financial Instruments, interest income is recorded using the EIR method for all financial instruments measured at amortised cost, debt instrument measured at FVTOCI and debt instruments designated at FVTPL. The EIR is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset. The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any discount or premium on acquisition, fees and costs that are an integral part of the EIR. The Company recognises interest income using a rate of return that represents the best estimate of a constant rate of return over the expected life of the loan. Hence, it recognises the effect of potentially different interest rates charged at various stages, and other characteristics of the product life cycle (including prepayments, penalty interest and charges). If expectations regarding the cash flows on the financial asset are revised for reasons other than credit risk. The adjustment is booked as a positive or negative adjustment to the carrying amount of the asset in the Balance sheet with an increase or reduction in interest income. The adjustment is subsequently amortised through interest income in the Statement of profit and loss.

The Company calculates interest income by applying the EIR to the gross carrying amount of financial assets other than credit-impaired assets net of upfront processing fees. When a financial asset becomes credit-impaired and is, therefore, regarded as ''Stage 3'', the Company calculates interest income by applying the effective interest rate to the net amortised cost of the financial asset. If the financial assets cures and is no longer credit-impaired, the Company reverts to calculating interest income on a gross basis. For purchased or originated credit-impaired (POCI) financial assets, the Company calculates interest income by calculating the credit-adjusted EIR and applying that rate to the amortised cost of the asset. The credit adjusted EIR is the interest rate that, at original recognition, discounts the estimated future cash flows (including credit losses) to the amortised cost of the POCI assets. Interest income on all trading assets and financial assets mandatorily required to be measured at FVTPL is recognised using the contractual interest rate in net gain on fair value changes.

Dividend income

Dividend income (including from FVTOCI investments) is recognised when the Company''s right to receive the payment is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured reliably. This is generally when the shareholders approve the dividend.

Net Gain or Fair Value Changes

Any differences between the fair values of the financial assets classified as fair value through the profit or loss, held by the Company on the Balance Sheet date is recognised as an unrealised gain/loss in the statement of profit and loss. In cases there is a net gain in aggregate, the same is recognised in ''Net gains or fair value changes'' under revenue from operations and if there is a net loss the same is disclosed ''Expenses'', in the Statement of profit and loss.

(C) Financial instruments Point of recognition

Financial assets and liabilities, with the exception of loans, debt securities, deposits and borrowings are initially recognised on the trade date, i.e., the date that the Company becomes a party to the contractual provisions of the instrument. This includes regular way trades: purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the marketplace. Loans are recognised when funds are transferred to the customers'' account. The Company recognises debt securities, deposits and borrowings when funds reach the Company.

Initial recognition

The classification of financial instruments at initial recognition depends on their contractual terms and the business model for managing the instruments, as per the principles of the Ind AS. Financial instruments are initially measured at their fair value, except in the case of financial assets and financial liabilities recorded at FVTPL, transaction costs are added to, or subtracted from, this amount. Trade receivables are measured at the transaction price. When the fair value of financial instruments at initial recognition differs from the transaction price, the Company accounts mentioned below:

When the transaction price of the instrument differs from the fair value at origination and the fair value is based on a valuation technique using only inputs observable in market transactions, the Company recognises the difference between the transaction price and fair value in net gain on fair value changes. In those cases where fair value is based on models

for which some of the inputs are not observable, the difference between the transaction price and the fair value is deferred and is only recognised in profit or loss when the inputs become observable, or when the instrument is derecognised.

Subsequent measurement of financial assets

For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:

i. The Company''s business model for managing the financial asset; and

ii. The contractual cash flow characteristics of the financial asset.

Based on the above criteria, the Company classifies its financial assets into the following categories:

(a) Financial assets measured at amortized cost:

A Financial asset is measured at the amortized cost if both the following conditions are met:

(i) The Company''s business model objective for managing the financial asset is to hold financial assets in order to collect contractual cash flows; and

(ii) 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.

This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Company. Such financial assets are subsequently measured at amortized cost using the effective interest method. Under the effective interest method, the future cash receipts are exactly discounted to the initial recognition value using the effective interest rate. The cumulative amortization using the effective interest method of the difference between the initial recognition amount and the maturity amount is added to the initial recognition value (net of principal repayments, if any) of the financial asset over the relevant period of the financial asset to arrive at the amortized cost at each reporting date. The corresponding effect of the amortization under effective interest method is recognized as interest income over the relevant period of the financial asset. The same is included under other income in the Statement of profit and loss. The amortized cost of a financial asset is also adjusted for loss allowance, if any.

(b) Financial assets measured at FVTOCI:

A financial asset is measured at FVTOCI if both

of the following conditions are met:

(i) The Company''s business model objective for managing the financial asset is achieved both by collecting contractual cash flows and selling the financial assets; and

(ii) 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.

This category applies to certain investments in debt and equity instruments. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognized in the Statement of profit and loss under ''Other Comprehensive Income (OCI)''. However, the Company recognizes interest income and impairment losses and its reversals in the Statement of Profit and Loss. On derecognition of such financial assets, cumulative gain or loss previously recognized in OCI is reclassified from equity to the Statement of profit and loss, except for instruments which the Company has irrevocably elected to be classified as equity through OCI at initial recognition, when such instruments meet the definition of Equity under Ind AS 32, Financial Instruments: Presentation and they are not held for trading. The Company has made such election on instrument by instrument basis.

Gains and losses on these equity instruments are never recycled to profit or loss. Dividends are recognised in the Statement of Profit or Loss as dividend income when the right of the payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the instrument, in which case, such gains are recorded in OCI. Equity instruments at FVTOCI are not subject to an impairment assessment.

(c) Financial assets measured at FVTPL:

A financial asset is measured at FVTPL unless it is measured at amortized cost or at FVTOCI as explained above. This is a residual category applied to all other investments of the Company excluding investments in subsidiary and associate companies. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognized in the Statement of Profit and Loss.

Financial assets or financial liabilities held for trading:

The Company classifies financial assets as held for trading when they have been purchased or issued primarily for short-term profit making

through trading activities or form part of a portfolio of financial instruments that are managed together, for which there is evidence of a recent pattern of short-term profit taking. Held-For-Trading assets and liabilities are recorded and measured in the Balance sheet at fair value. Changes in fair value are recognised in net gain on fair value changes.

Interest and dividend income or expense is recorded in net gain on fair value changes according to the terms of the contract, or when the right to payment has been established. Included in this classification are debt securities, equities, and customer loans that have been acquired principally for the purpose of selling or repurchasing in the near term.

De-recognition:(a) Financial asset:

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized (i.e. removed from the Company''s Balance sheet) when any of the following occurs:

i. The contractual rights to receive cash flows from the financial asset expires;

ii. The Company transfers its contractual rights to receive cash flows of the financial asset and has substantially transferred all the risks and rewards of ownership of the financial asset. A regular way purchase or sale of financial assets has been derecognised, as applicable, using trade date accounting.

iii. The Company retains the contractual rights to receive cash flows but assumes a contractual obligation to pay the cash flows without material delay to one or more recipients under a ''pass-through'' arrangement (thereby substantially transferring all the risks and rewards of ownership of the financial asset).

iv. The Company neither transfers nor retains substantially all risk and rewards of ownership and does not retain control over the financial asset.

In cases where Company has neither transferred nor retained substantially all the risks and rewards of the financial asset, but retains control of the financial asset, the Company continues to recognize such financial asset to the extent of its continuing involvement in the financial asset. In that case, the Company also recognizes an associated liability. The financial asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

On de-recognition of a financial asset, (except as mentioned in ii above for financial assets measured at FVTOCI), the difference between the carrying amount and the consideration received is recognized in the Statement of profit and loss.

(b) Financial liability:

A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-recognition of the original liability and the recognition of a new liability. The difference between the carrying value of the original financial liability and the consideration paid is recognised in profit or loss.

impairment of financial assets:

In accordance with Ind AS 109, the Company applies expected credit loss (''ECL'') model for measurement and recognition of impairment loss for financial assets.

ECL is the weighted-average of difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider:

- All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.

- Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

Trade receivables:

In respect of trade receivables, the Company applies the simplified approach of Ind AS 109, which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

Other financial assets:

In respect of its other financial assets, the Company assesses if the credit risk on those financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to 12 month expected credit losses, else at an amount equal to the lifetime expected credit losses.

When making this assessment, the Company uses the change in the risk of a default occurring over the expected life of the financial asset. To make that assessment, the Company compares the risk of a default occurring on the financial asset as at the Balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. The Company assumes that the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the Balance Sheet date.

Offsetting of financial instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

I) Fair Value

The Company measures its financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

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

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows, the inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority to quoted prices in active markets

for identical assets or liabilities (Level 1 input) and the lowest priority to unobservable inputs (Level 3 inputs).

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

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

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

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization at the end of each reporting period and discloses the same.

(E) income Taxes

Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current tax:

Current tax is the amount of income taxes payable in respect of taxable profit for a period. Taxable profit differs from ''profit before tax'' as reported in the Statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible under the Income Tax Act, 1961. Current tax is measured using tax rates that have been enacted by the end of reporting period for the

amounts expected to be recovered from or paid to the taxation authorities.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax:

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit under Income tax Act, 1961.

Deferred tax liabilities are generally recognized for all taxable temporary differences. However, in case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor the accounting profit, deferred tax liabilities are not recognized. Also, for temporary differences if any that may arise from initial recognition of goodwill, deferred tax liabilities are not recognized.

Deferred tax assets are generally recognized for all deductible temporary differences to the extent it is probable that taxable profits will be available against which those deductible temporary difference can be utilized. In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect neither the taxable profit nor the accounting profit, deferred tax assets are not recognized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefits of part or all such deferred tax assets to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

The Company has not recognised a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, except to the extent that both of the following conditions are satisfied:

- the parent, investor, joint venture or joint operator is able to control the timing of the reversal of the temporary difference; and

- it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, to the extent it would be available for set off against future current income tax liability. Accordingly, MAT is recognised as deferred tax asset in the Balance Sheet when the asset can be measured reliably, and it is probable that the future economic benefit associated with the asset will be realised.

Presentation of current and deferred tax:

Current and deferred tax are recognized as income or an expense in the Statement of Profit and Loss, except when they relate to items that are recognized in Other Comprehensive Income, in which case, the current and deferred tax income/expense are recognized in Other Comprehensive Income. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. In case of deferred tax assets and deferred tax liabilities, the same are offset if the Company has a legally enforceable right to set off corresponding current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on the Company.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer convincing evidence to the effect that the company will pay normal income tax during the specified period. Further, the MAT credit is not set-off against the deferred tax liabilities, since the Company does not have a legally enforceable right to set-off.

(F) Provisions and contingencies

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated. If the effect of 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. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.

(G) investment in subsidiaries

Investment in subsidiaries is recognised at cost and are not adjusted to fair value at the end of each reporting period. Cost of investment represents amount paid for acquisition of the said investment.

The Company assesses at the end of each reporting period, if there are any indications that the said investment may be impaired. If so, the Company estimates the recoverable value/amount of the investment and provides for impairment, if any, i.e., the deficit in the recoverable value over cost.

(H) Cash and Cash Equivalents

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances, demand deposits with banks where the original maturity is three months or less and other short term highly liquid investments.

(i) Employee BenefitsShort-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as shortterm employee benefits and they are recognized in the period in which the employee renders the related service. The Company recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.

Post-employment benefits(i) Defined contribution plans

Defined contribution plans are employee state insurance scheme and Government administered pension fund scheme for all applicable employees.

Recognition and measurement of defined contribution plans:

The Company recognises contribution payable to a defined contribution plan as an expense in the Statement of profit and loss when the employees

render services to the Company during the reporting period. If the contributions payable for services received from employees before the reporting date exceeds the contributions already paid, the deficit payable is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the reporting date, the excess is recognized as an asset to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund.

(ii) Defined benefits plansGratuity scheme:

Gratuity is a post-employment benefit and is a defined benefit plan. The cost of providing defined benefits is determined using the Projected Unit Credit method with actuarial valuations being carried out at each reporting date. The defined benefit obligations recognized in the Balance sheet represent the present value of the defined benefit obligations as reduced by the fair value of plan assets, if any. Any defined benefit asset (negative defined benefit obligations resulting from this calculation) is recognized representing the present value of available refunds and reductions in future contributions to the plan.

Recognition and measurement of defined benefit plans:

All expenses represented by current service cost, past service cost, if any, and net interest on the defined benefit liability / (asset) are recognized in the Statement of profit and loss. Re-measurements of the net defined benefit liability / (asset) comprising actuarial gains and losses and the return on the plan assets (excluding amounts included in net interest on the net defined benefit liability/asset), are recognized in Other Comprehensive Income. Such re-measurements are not reclassified to the Statement of profit and loss in the subsequent periods.

The Company does not present the above liability/(asset) as current and non-current in the Balance sheet as per the principles of Division III of Schedule III to the Act as per MCA''s Notification dated 11^th October, 2018.

(J) Lease accounting

The Company, as a lessee, recognizes a Right-of-Use (RoU) asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has substantially

all the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the RoU asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The RoU asset is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The RoU asset is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of RoU asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.

For short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the lease term.

(K) Borrowing Costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs, if any, directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized, if any. All other borrowing costs are expensed in the period in which they occur.

(L) Events after reporting date

Where events occurring after the Balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance sheet date of material size or nature are only disclosed.

(M) Property, plant and equipment (PPE)Measurement at recognition

An item of PPE that qualifies as an asset is measured on initial recognition at cost. Following initial recognition, items of PPE are carried at its cost less accumulated depreciation and accumulated impairment losses.

The cost of an item of PPE comprises of its purchase price including import duties and other non-refundable purchase taxes or levies, directly

attributable cost of bringing the asset to its working condition for its intended use and the initial estimate of decommissioning, restoration and similar liabilities, if any. Any trade discounts and rebates are deducted in arriving at the purchase price. Cost includes cost of replacing a part of a plant and equipment if the recognition criteria are met. Items such as, spare parts, stand-by equipment and servicing equipment that meet the definition of PPE are capitalized at cost and depreciated over their useful life. Costs in nature of repairs and maintenance are recognized in the Statement of profit and loss as and when incurred.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Capital work-in-progress and capital advances:

Cost of assets not ready for intended use, as on the Balance sheet date, is shown as capital work-in-progress. Advances given towards acquisition of PPE outstanding at each Balance sheet date are disclosed as other non-financial assets.

Depreciation

Depreciation on each part of an item of property, plant and equipment is provided using the written down value method based on the useful life of the asset as prescribed in Schedule II to the Act. Depreciation is calculated on a pro-rata basis from the date of installation till date the assets are sold or disposed. Leasehold improvements are amortised over the underlying lease term on a straight-line basis.

De-recognition

The carrying amount of an item of PPE is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the de-recognition of an item of PPE is measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognized in the Statement of profit and loss when the item is derecognized.

(N) impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or Cash-Generating Unit''s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset''s or CGU''s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

(O) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted-average number of equity shares outstanding during the period. The weighted-average number of equity shares outstanding during the period is adjusted for events including a bonus issue.

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 period are adjusted for the effects of all dilutive potential equity shares.

(P) Accounting and reporting of information for Operating Segments

Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating decision making body in the Company to make decisions for performance assessment and resource allocation. The reporting of segment information is the same as provided to the management for the purpose of the performance

assessment and resource allocation to the segments. Segment accounting policies are in line with the accounting policies of the Company.

(Q) Recent Accounting Pronouncements

Ministry of Corporate Affairs (''MCA'') on 31^st March, 2023 notified amendments to the existing standards under the Companies (Indian Accounting Standards) Rules, 2015 by the Companies (Indian Accounting Standards) Amendment Rules, 2023. The effective date for adoption of these amendments is annual periods beginning on or after 1st April, 2023.

Ind AS 1, Presentation of Financial Statement:

This amendment requires the entities to disclose their ''material accounting policies'' rather than their significant accounting policies.

Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors: This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates.

Ind AS 12, Income Taxes: This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences.

The company has evaluated these amendments and there are no impacts on its financial statements.

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Mar 31, 2018

1. Summary of Significant Accounting Policies Corporate Information:

Summit Securities Limited ("the Company") is registered as Non-Banking Financial Company u/s 45IA of Reserve Bank of India Act, 1934. The Company is principally engaged in the Investing Activities.

1.1 Basis of Preparation

These financial statements have been prepared to comply with Generally Accepted Accounting Principles in India (Indian GAAP), the Accounting Standards notified under the relevant provisions of the Companies Act, 2013 and Reserve Bank of India Regulations in relation to Non Banking Finance Companies to the extend applicable to the Company.

The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees rounded off to the nearest rupees in Lakhs.

1.2 Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialized.

1.3 Fixed Assets Tangible

Fixed Assets are stated at Cost less accumulated depreciation and Impairment loss, if any. All Costs, including finance costs till the date asset is ready for use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Fixed Assets are capitalized.

Intangible

Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses if any.

1.4 Depreciation

Depreciation on tangible fixed assets is provided on straight-line method and based on useful life of the assets as prescribed in Schedule II to the

Companies Act 2013

1.5 Investments

Long Term Investments

Long term investments are stated at cost as per Accounting Standard (AS 13) on "Accounting for Investments". Provision for diminution is made to recognize a decline, other than temporary, in the value of such investments.

Current Investments

Current Investments are stated at the lower of cost or market value.

1.6 Revenue Recognition

Interest income is recognized in the Statement of Profit and Loss as it accrues except in the case of Non Performing Assets (NPA) where it is recognized, upon realization.

Dividend on investments is accounted when the right to receive payment is established.

Profit earned from sale of securities is recognized on a trade date basis. The cost of securities is computed based on a weighted average basis.

1.7 Provisions for Non Performing Assets (NPA) and Doubtful Debts

Sundry debtors, loans and advances and receivables are identified as bad/ doubtful based on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the management''s assessment of the degree of impairment and the level of provisioning meets the prudential norms prescribed by the Reserve Bank of India.

1.8 Taxes on Income

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual/reasonable certainty that the asset will be realized in future.

1.9 Employee Benefits

(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

(ii) Post employment and other long term benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.

1.10 Provisions, Contingent Liabilities And Contingent Assets

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but disclosed in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

1.11 Special Reserve

Company creates and maintains Special Reserve every year out of its profit in terms of Section 45 1C (1) of Reserve Bank of India Act 1934.

1.12 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.13 Earning Per Share

The earnings per share have been computed in accordance with Accounting Standards (AS - 20) on, "Earning per Share" and are also shown in the Statement of Profit and Loss.

		All amounts in Rs Lakhs
	As at March 31, 2018	As at arch 31, 2017
2. Share Capital
Authorised:
1 4,20,00,000 (Previous year 14,20,00,000) Equity Shares of Rs 10 each	14,200.00	14,200.00
25,00,000 (Previous year 25,00,000) Preference shares of Rs 100 each	2,500.00	2,500.00
1,50,00,000 (Previous year 1,50,00,000) Preference shares of Rs10 each	1,500.00	1,500.00
	18,200.00	18,200.00
Issued:
1,09,01,987 (Previous year 1,09,01, 987) Equity Shares of Rs. 10 each (includes 206 Equity Shares kept in abeyance)	1,090.20	1,090.20
	1 ,090.20	1,090.20
Subscribed And Paid Up:
1 ,09,01 ,781 (Previous year 1 ,09,01 ,781 ) Equity Shares of Rs. 10 each	1,090.18	1,090.18
	1,090.18	1,090.18

(a) Reconciliation of shares outstanding at the beginning and at the end of the reporting period

Equity Shares	As at March 31, 2018		As at March 31, 2017
	No.	Rs. Lakhs	No.	Rs. Lakhs
Shares outstanding at the beginning of the year	1,09,01,781	1,090.18	1,09,01,781	1,090.18
Shares Issued during the year	-	-	-	-
Shares bought back during the year	-	-	-	-
Shares outstanding at the end of the year	1,09,01,781	1,090.18	1,09,01,781	1,090.18

(b) Terms / rights attached to equity shares

Equity shares : The Company has issued one class of equity shares having face value of Rs. 10/- per share. Each share holder is eligible for one vote per share held.

The dividend recommended by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

The shareholders have all other rights as available to the Equity Shareholders as per the provisions of Companies Act, 2013 read together with the Memorandum of Association and Articles of Association of the Company, as applicable.

(c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company (as certified by the management).

	As at March	31,2018	As at March	131,2017
	No. of Shares held	% of Holding	No. of Shares held	% of Holding
Swallow Associates LLP	7,622,815	69.92	7,622,815	69.92

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Mar 31, 2016

1. Summary of Significant Accounting Policies Corporate Information:

Summit Securities Limited (“the Company”) is registered as Non Banking Financial Company u/s 45IA of Reserve Bank of India Act, 1934. The Company is principally engaged in Investing Activities.

1.1 Basis of Preparation

These financial statements have been prepared to comply with Generally Accepted Accounting Principles in India (Indian GAAP), the Accounting Standards notified under the relevant provisions of the Companies Act, 2013 and Reserve Bank of India Regulations in relation to Non Banking Finance Companies to the extend applicable to the Company.

The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees rounded off to the nearest rupees in Lakhs.

1.2 Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

1.3 Fixed Assets Tangible

Fixed Assets are stated at Cost less accumulated depreciation and Impairment loss, if any. All Costs, including financing costs till the date asset is ready for use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Fixed Assets are capitalized.

Intangible

Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses if any.

1.4 Depreciation

Depreciation on tangible fixed assets is provided on a straight-line basis at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013 over their useful life.

1.5 Investments

Long Term Investments

Long term investments are stated at cost as per Accounting Standard (AS 13) on “Accounting for Investments”. Provision for diminution is made to recognize a decline, other than temporary, in the value of such investments.

Current Investments

Current Investments are stated at the lower of cost or market value.

1.6 Revenue Recognition

Interest income is recognized in the Statement of Profit and Loss as it accrues except in the case of Non Performing Assets (NPA) where it is recognized, upon realization.

Dividend on investments is accounted when the right to receive payment is established.

Profit earned from sale of securities is recognized on a trade date basis. The cost of securities is computed based on a weighted average basis.

1.7 Provisions for Non Performing Assets (NPA) and Doubtful Debts

Sundry debtors, loans and advances and receivables are identified as bad/ doubtful based on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the management''s assessment of the degree of impairment and the level of provisioning meets the prudential norms prescribed by the Reserve Bank of India.

1.8 Taxes on Income

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from “timing difference” between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual/reasonable certainty that the asset will be realized in future.

1.9 Employee Benefits

(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit & Loss of the year in which the related service is rendered.

(ii) Post employment and other long term benefits are recognized as an expense in the Statement of Profit & Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit &Loss.

1.10 Provisions, Contingent Liabilities And Contingent Assets

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but disclosed in the financial statements. A contingent asset is neither recognized nor disclosed in the financial statements.

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Mar 31, 2015

1.1 Basis of Preparation

These financial statements have been prepared to comply with Generally Accepted Accounting Principles in India (Indian GAAP), the Accounting Standards notified under the relevant provisions of the Companies Act, 2013 and Reserve Bank of India Regulations in relation to Non Banking Finance Companies to the extend applicable to the Company.

The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees rounded off to the nearest rupees in Lakhs.

1.2 Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialized.

1.3 Fixed Assets Tangible

Fixed Assets are stated at Cost less accumulated depreciation and Impairment loss, if any. All Costs, including financing costs till the date asset is ready for use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Fixed Assets are capitalized.

Intangible

Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses if any.

1.4 Depreciation

Depreciation on tangible fixed assets is provided on a straight-line basis at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013 over their useful life.

1.5 Investments

Long Term Investments

Long term investments are stated at cost as per Accounting Standard (AS 13) on "Accounting for Investments". Provision for diminution is made to recognize a decline, other than temporary, in the value of such investments.

Current Investments

Current Investments are stated at the lower of cost or market value.

1.6 Revenue Recognition

Interest income is recognized in the Statement of Profit and Loss as it accrues except in the case of Non Performing Assets (NPA) where it is recognized, upon realization.

Dividend on investments is accounted when the right to receive payment is established.

Profit earned from sale of securities is recognized on a trade date basis. The cost of securities is computed based on a weighted average basis.

1.7 Provisions for Non Performing Assets (NPA) and Doubtful Debts

Sundry debtors, loans and advances and receivables are identified as bad/ doubtful based on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the management's assessment of the degree of impairment and the level of provisioning meets the prudential norms prescribed by the Reserve Bank of India.

1.8 Taxes on Income

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a virtual/reasonable certainty that the asset will be realized in future.

1.9 Employee Benefits

(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit & Loss of the year in which the related service is rendered.

(ii) Post employment and other long term benefits are recognized as an expense in the Statement of Profit & Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit &Loss.

1.10 Provisions, Contingent Liabilities And Contingent Assets

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised but disclosed in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

(b) Terms / rights attached to equity shares

The company has one class of equity shares having a par value of Rs. 10 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, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

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Mar 31, 2014

1.1 Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211 (3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 1956 and Reserve Bank of India Regulations in relation to Non Banking Finance Companies to the extent applicable to the Company.

1.2 Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities, revenues and expenses and disclosures relating to the contingent liabilities. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

1.3 Fixed Assets

Tangible

Fixed Assets are stated at Cost less accumulated depreciation and Impairment loss, if any. All Costs, including financing costs till the date asset is ready for use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Fixed Assets are capitalized.

Intangible

Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses if any.

1.4 Depreciation

Depreciation on tangible fixed assets is provided on a straight-line basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Intangible assets are amortised over a period of six years which is the useful life of the asset.

All capital assets with individual value less than Rs. 5,000 are depreciated fully in the month in which they are purchased.

1.5 Investments

Long Term Investments

Long term investments are stated at cost as per Accounting Standard (AS 13) on "Accounting for Investments". Provision for diminution is made to recognize a decline, other than temporary, in the value of such investments.

Current Investments

Current Investments are stated at the lower of cost or market value.

1.6 Revenue Recognition

Interest income is recognized in the Statement of Profit and Loss as it accrues except in the case of Non Performing Assets (NPA) where it is recognized, upon realization.

Dividend on investments is accounted when the right to receive payment is established.

Profit earned from sale of securities is recognized on a trade date basis. The cost of securities is computed based on a weighted average basis.

1.7 Provisions for Non Performing Assets (NPA) and Doubtful Debts

Sundry debtors, loans and advances and receivables are identified as bad/ doubtful based on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the management''s assessment of the degree of impairment and the level of provisioning meets the prudential norms prescribed by the Reserve Bank of India.

1.8 Taxes on Income

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions.

Deferred tax is recognized for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.9 Employee Benefits

(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit & Loss of the year in which the related service is rendered.

(ii) Post employment and other long term benefits are recognized as an expense in the Statement of Profit & Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit & Loss.

1.10 Provisions, Contingent Liabilities And Contingent Assets

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised but disclosed in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

(b) Terms / rights attached to equity shares

The company has one class of equity shares having a par value of Rs. 10 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, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

The Shareholders have all other rights as available to Equity Shareholders as per the provisions of the companies Act, 1956, read together with the Memorandum of Association and Articles of Association of the Company, as applicable.

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Mar 31, 2013

1.1 Basis of preparation

These fnancial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These fnancial statements have been prepared to comply in all material aspects with the accounting standards notifed under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 1956.

1.2 Tangible Assets

Tangible Assets are stated at acquisition cost, net of accumulated depreciation

Depreciation is provided on the Straight Line Method, at the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.3 Investments

Investments that are readily realisable and are intended to be held for not more than one year from the date, on which such investments are made, are classifed as current investments. All other investments are classifed as long term investments. Current investments are carried at cost or fair value, whichever is lower. Long-term investments are carried at cost plus brokerage and other relevant charges. Provision against diminution in the value of investments is made in case diminution is considered as other than temporary, as per criteria laid down by the Board of Directors after considering that such investments are strategic in nature.

1.4 Inventories

Traded Goods are valued at lower of Cost or Net Realisable value (NRV).

1.5 Revenue Recognition

Interest income is recognised in the Proft and Loss Account as it accrues except in the case of Non Performing Assets (NPA) where it is recognised, upon realisation.

Dividend on investments is accounted when the right to receive payment is established.

Proft earned from sale of securities is recognised on a trade date basis. The cost of securities is computed based on a weighted average basis.

1.6 Provisions for Non Performing Assets (NPA) and Doubtful Debts

Sundry debtors, loans and advances and receivables are identifed as bad/ doubtful based on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the management''s assessment of the degree of impairment and the level of provisioning meets the prudential norms prescribed by the Reserve Bank of India.

1.7 Taxes on Income

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net proft or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions.

Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that suffcient future taxable income will be available against which such deferred tax assets can be realised.

1.8 Employee Benefts

(i) Short-term employee benefts are recognized as an expense at the undiscounted amount in the Proft & Loss account of the year in which the related service is rendered.

(ii) Post employment and other long term benefts are recognized as an expense in the Proft & Loss Account for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefts are charged to Proft &Loss Account.

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Mar 31, 2012

1.1 Basis of preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 1956.

1.2 Tangible Assets

Tangible Assets are stated at acquisition cost, net of accumulated depreciation

Depreciation is provided on the Straight Line Method, at the rates prescribed in Schedule XIV of the Companies Act, 1956; Asset Rates: Office Equipment - 4.75%, Computer & Systems - 16.21%

1.3 Investments

Investments that are readily realisable and are intended to be 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. Current investments are carried at cost or fair value, whichever is lower. Long-term investments are carried at cost plus brokerage and other relevant charges. Provision against diminution in the value of investments is made in case diminution is considered as other than temporary, as per criteria laid down by the Board of Directors after considering that such investments are strategic in nature.

1.4 Revenue Recognition

Interest income is recognised in the Profit and Loss Account as it accrues except in the case of Non Performing Assets (NPA) where it is recognised, upon realisation.

Dividend on investments is accounted when the right to receive payment is established.

Profit earned from sale of securities is recognised on a trade date basis. The cost of securities is computed based on a weighted average basis.

1.5 Provisions for Non Performing Assets (NPA) and Doubtful Debts

Sundry debtors, loans and advances and receivables are identified as bad/ doubtful based on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the management's assessment of the degree of impairment and the level of provisioning meets the prudential norms prescribed by the Reserve Bank of India.

1.6 Taxes on Income

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions.

Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

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Mar 31, 2011

A) Basis of Accounting

The financial statements are prepared on the accrual basis of accounting and in accordance with the standard on accounting notifi ed by the Companies (Accounting Standards) Rules, 2006 and referred to in section 211 (3C) of the Companies Act, 1956.

b) Fixed Assets

Fixed assets are stated at cost. Cost comprises cost of acquisition, cost of improvements and any attributable cost of bringing the asset to the condition for its intended use.

c) Depreciation

Depreciation is provided on the Straight Line Method, at the rates prescribed in Schedule XIV of the Companies Act, 1956.

d) Revenue Recognition

Interest income is recognised in the Profit and Loss Account as it accrues except in the case of Non Performing Assets (NPA) where it is recognised, upon realisation.

Dividend on investments is accounted when the right to receive payment is established.

Profit earned from sale of securities is recognised on a trade date basis. The cost of securities is computed based on a weighted average basis.

e) Investments

i) Investments being long term are stated at cost plus brokerage and other relevant charges. Provision against diminution in the value of investments is made in case diminution is considered as other than temporary, as per criteria laid down by the Board of Directors after considering that such investments are strategic in nature.

ii) Current investments are stated at lower of cost or fair value.

f) Provisions for Non Performing Assets (NPA) and Doubtful Debts Sundry debtors, loans and advances and receivables are identified as bad/doubtful based on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the management's assessment of the degree of impairment and the level of provisioning meets the prudential norms prescribed by the Reserve Bank of India.

g) Taxes on Income

a. Current Tax: Provision for Income Tax is determined in accordance with the provision of Income Tax Act, 1961.

b. Deferred Tax: Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantifi ed using tax rates and laws enacted or substantively enacted on the Balance Sheet date.

Deferred tax assets are recognized and carried forward to the extent there is a reasonable certainty that suffi cient future taxable income will be available against which such deferred tax assets can be realized.

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Mar 31, 2010

A) Fixed Assets

Fixed assets are stated at cost. Cost comprises cost of acquisition, cost of improvements and any attributable cost of bringing the asset to the condition for its intended use.

b) Depreciation

Depreciation is provided on the Straight Line Method, at the rates prescribed in Schedule XIV of the Companies Act, 1956.

c) Revenue Recognition

Interest income is recognised in the Profit and Loss Account as it accrues except in the case of Non Performing Assets (NPA) where it is recognised, upon realisation.

Dividend on investments is accounted when the right to receive payment is established.

Profit earned from sale of securities is recognised on a trade date basis. The cost of securities is computed based on a weighted average basis.

d) Investments

i) Investments being long term are stated at cost. Provision against diminution in the value of investments is made in case diminution is considered as other than temporary, as per criteria laid down by the Board of Directors after considering that such investments are strategic in nature.

ii) Current investments are stated at lower of cost or fair value.

e) Provisions for Non Performing Assets (NPA) and Doubtful Debts

Sundry debtors, loans and advances and receivables are identified as bad /doubtful based on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the managements assessment of the degree of impairment and the level of provisioning meets the prudential norms prescribed by the Reserve Bank of India.

f) Lease Transactions

i) In respect of lease rentals, a matching annual charge is made to the Profit and Loss Account, representing recovery of net investment of leased during the year. The said charges is calculated by deducting finance income for the year (arrived at by applying the interest rate implicit in the lease to the net investment in the lease during the year) from the lease rental. This annual charge comprises of book depreciation (as per policy stated in paragraph

(b) above) and a lease equalization charge, where the annual lease charge is more than the book depreciation. Where the annual lease charge is less than the book depreciation, lease equalization is taken.

ii) The amount of lease equalisation charge for the year (whether in debit or credit) is adjusted against the amount of lease rentals.

g) Taxes on Income

a. Current Tax: Provision for Income Tax is determined in accordance with the provision of Income Tax Act, 1961.

b. Deferred Tax: Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using tax rates and laws enacted or substantively enacted on the Balance Sheet date.

Deferred tax assets are recognized and carried forward to the extent there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.