Notes to Accounts of Swastika Investmart Ltd.

Mar 31, 2025

During the current financial year, the paid up equity share capital of the Company has increased from '' 295.97 Lakhs divided into 1,47,98,500 equity shares of face value of '' 2/- each to '' 346.27 Lakhs divided into 1,73,13,500 equity shares of face value of '' 2/- each on account of allotment of 25,15,000 equity shares of the Company of face value of '' 2/- each (pursuant to conversion of Warrants) at an issue price of '' 62.20 per share (before split price was '' 311.00 per share and face value was '' 10 each)

Note: The Company has only one class of shares i.e. Equity Shares with equal rights for dividend and repayment. Each holder of shares is entitled to one vote per share. Dividend on Equity Shares whenever proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting.

Term of Share Warrants convertible into Equity

During the financial year 2023-24, the Company had issued and allotted 10,60,000 convertible share warrants, each convertible into one equity share of '' 10 each, on preferential allotment basis at an issue price of '' 311 per warrant, to the promoter/ Promoter Group of the company and certain identified non-promoter entity, upon receipt of 25% of issue price (i.e. '' 77.75 per warrant) as warrant subscription money. During the FY 2024-25, Two of the Warrant holders have paid the balance 75% amount of issues price (i.e. '' 233.25 per warrant) for conversion of 5,03,000 warrants in to 25,15,000 equity shares of the company of '' 2 each (post effect of split) and accordingly 25,15,000 equity shares of the Company have been allotted to them on 12^th March, 2025. As on 31^st March 2025, there shall be 5,57,000 warrants which are pending for conversion into equity shares of the Company within 18 months from the date of allotment i.e. 20th December, 2023.

(A) General reserve

General Reserve reflects amount transferred from Current Year''s Profit in accordance with regulations of the Companies Act, 2013.

(B) Securities Premium

Securities premium is used to record the premium received on issue of shares. The reserve can be utilised only for limited purposes in accordance with the provisions of the Companies Act, 2013.

(C) Capital Reserve

Capital Reserve are created on account of merger of Swastika Commodities Private Limited with Swastika Investmart Limited. Capital reserve is utilised in accordance with provision of the Act.

(D) Retained Earnings

Retained Earnings are created from the profit/ loss of the Company, as adjusted for distributions to owners, transfers to other reserves, etc.

(F) Money Received Against Share warrants

Money received against share warrants is the amount received by the Company which is converted into shares at a specified rate. These warrants are carrying a right to subscribe one equity share per warrant. The price of the warrants have been determined in accordance with the ICDR Regulations.

37. Contingent Liabilities		'' in lakhs
Particulars	For the year ended	For the year ended
	March 31, 2025	March 31, 2024
Guarantees
(i) Bank guarantee issued in favour of NSE/BSE/MCX/NCDEX	6,000.00	5,000.00
Others
(i) Claims against the Company not acknowledged as debts
Disputed arear rent	64.23	64.23
SEBI Inspection penalty	15.00	15.00
Deposit against IGRP/ARB Award (NSE)	9.50	24.85
(ii) Disputed Income Tax & GST Demands not provided for:-
Income Tax Demands
F.Y. 2017-18 (on account of Penalty as per 270A)	55.14	55.14
F.Y. 2017-18 (on account of addition to total income as per 143(3))	24.40	-
F.Y. 2016-17	1.10	1.10
F.Y. 2014-15	78.15	16.71
F.Y. 2013-14 *	-	177.03
F.Y. 2012-13	5.23	5.23
F.Y. 2006-07 **	-	0.93
F.Y. 2022-23 ***	-	3.53
GST Demand
F.Y. 2017-18	44.37	44.37
F.Y. 2018-19	58.16	58.16
F.Y. 2019-20	37.03	37.03
F.Y. 2020-21	29.46	29.46
Service Tax Demand
F.Y. 2007-08 to F.Y. 2009-10	5.43	-
Total	6,427.20	5,532.77

* F.Y. 2013-14 - As per rectification order dated 21.05.2024 and 28.04.2025, the demand is no more outstanding ** For F.Y. 2006-07, order received dated 11.06.2024 which is in company''s favour.

*** For F.Y. 2022-23, As per order dated 06.09.2024, refund was confirmed

38. Lease

The Company has recognised '' 272.92 Lakhs ( March 31, 2024 : '' 230.56 Lakhs) as rent expenses during the year which pertains to short term which was not recognised as part of asset.

The management assessed that carrying amount of Cash and Cash Equivalents, Loans, Other Balances with Banks, Trade Receivables, other financial assets and financial liabilities such as trade payables considered to be the same as their fair values due to the short-term maturities of these instruments.

All assets and liabilities for which fair value is measured or disclosed in the Financial Statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active market for identical assets or liabilities.

• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement.

There have been no transfers between Level 1, Level 2 and Level 3 for the year ended 31st March 2025.

40. Financial Risk Management

The Board provides guiding principles for overall risk management, as well as policies covering specific areas such as credit risk, liquidity risk, price risk, investment of surplus liquidity and other business risks effecting business operation. The Company''s risk management is carried out by the management as per guidelines and policies approved by the Board of Directors.

(A) Market Risk

Market risk is the risk that the fair value of future cash flows of the company will fluctuate because of movement in stock market. The company''s nature of business and operations exposed to the market risks namely stock market movement risks, competition risks and technology risks. These risks may affect the company''s income and expenses or the value equity investments. Nevertheless, the company believes that it has competitive advantage in terms of high quality services and by continuously upgrading its technology for front and back office Softwares to meet the needs of its customers.

Sensitivity Analysis on Rate Borrowings

The Company is exposed to various types of borrowings as stated in Note No. 14, respectively. The sensitivity analysis demonstrates a reasonably possible change in the interest rates, with all other variables held constant. For the year ended March 31, 2025 since there are no borrowings, sensitivity analysis could not be estimated and for March 31, 2024, every 0.25% increase in the interest rate would decrease the companies profit approximately by '' 2.49 Lakhs respectively. A 0.25% decrease in the interest rate would lead to an equal but opposite effect

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value for future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. As at each reporting date, the Company does not have exposure in foreign currency, therefore it is not exposed to currency risk.

(iii) Equity Price Risk

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

The Company''s equity price risk is managed in accordance with the guidelines and directions issued by the management and board of directors of the company. The directions specifies exposure limits and risk limits for the proprietary desk of the Company and stipulates risk-based margin requirements for margin-based trading in equity cash and derivative segment by its clients.

(B) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses the direct risk of default, risk of deterioration of creditworthiness as well as concentration risks. The Company is exposed to credit risk from its operating activities (primarily trade receivables), deposits with banks and loans given.

Credit Risk Management

For financial assets the Company has an investment policy which allows the Company to invest only with counterparties having high credit ratings or with higher credentials. The Company reviews the creditworthiness of these counterparties on an ongoing basis. Another source of credit risk at the reporting date is from trade receivables as the company having collateral against the receivables in normal course. This credit risk has always been managed through credit approvals, establishing credit limits and continuous monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The Company estimates the expected credit loss based on past data, available information on public domain and experience. Expected credit losses of financial assets receivable are estimated based on historical data of the Company. The Company has provisioning policy for expected credit losses. There is no credit risk in bank deposits which are demand deposits.

Loan-Margin Trading Facilities

Margin trading facilities are secured by collaterals. As per policy of the Company, margin trading facilities to the extent covered by collateral and servicing interest on a regular basis is not considered as due/default. As per policy any account become due/default will be fully written off as bad debt against respective receivables and the amount of loss will be recognised in the Statement of Profit and Loss. Subsequent recoveries of amounts previously written off will be credited to the Statement of Profit and Loss as bad debts recovered. However there is no account of margin trading facility written off or recovered during the year.

As per Ind AS 109, the maximum period to consider when measuring expected credit losses is the maximum contractual period (including extension options) over which the company is exposed to credit risk and not a longer period, even if that longer period is consistent with business practice. Therefore, the maximum period to consider when measuring expected credit losses for these margin trading facilities is the maximum contractual period (i.e. on demand/one day). For the computation of ECL, the margin trading facilities are classified into three stages as follows:

(C) Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash, other bank balances and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The company''s treasury team is responsible for liquidity, funding

as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the company''s liquidity position through rolling forecasts on the basis of expected cash flows.

Refer Note no. 41 for analysis of maturities of financial assets and financial liabilities.

41. Maturity Analysis of Assets and Liabilities

The table below shows Assets and Liabilities analysed according to when they are expected to be recovered or settled

(ii) Defined Benefit Plan Gratuity:

In respect of Gratuity, a defined benefit plan, contributions are made to LIC''s Recognised Group Gratuity Fund Scheme.

It is governed by the Payment of Gratuity Act, 1972.

Under the Gratuity Act, employees are entitled to specific benefit at the time of retirement or termination of the employment on completion of five years or death while in employment.

The level of benefit provided depends on the member''s length of service and salary at the time of retirement/termination age.

Provision for gratuity is based on actuarial valuation done by an independent actuary as at the year end.

Each year, the Company reviews the level of funding in gratuity fund and decides its contribution.

The Company aims to keep annual contributions relatively stable at a level such that the fund assets meets the requirements of gratuity payments in short to medium term.

Risks

These plans typically expose the Group to actuarial risks such as: Adverse Salary Growth Experience, Investment Risk, Liquidity Risk, Market Risk and Legislative Risk.

Adverse Salary Growth Experience

Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected. Investment Risk

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

Liquidity Risk

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cashflows.

Market Risk

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

Legislative Risk

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

Terms and Conditions of transactions with Related Parties:

The sales to and purchases from related parties are made in the normal course of business and on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2025, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

45. Additional regulatory information required under (WB) (xiv) of Division III of Schedule III amendment, disclosure of ratios, is not applicable to the Company as it is in broking business and not an NBFC registered under Section 45-IA of Reserve Bank of India Act, 1934.

46. Segment Reporting

The Company''s operations predominantly relate to equity, currency and commodity broking and its related business activity and the Company''s business is organised into two segments as mentioned below:-

a. Broking and related services

b. Merchant Banking & Investment Banking Services

The Company operates in one geographic segment namely "within India" and hence no separate information for geographic segment wise disclosure is required. The Company is presenting consolidated financial statements and hence in accordance with "IND AS 108 Segment Reporting", segment information is disclosed in consolidated financial statements.

48. Disclosure as per the requirements of Section 186(4) of the Companies Act 2013:

1 The loan given by Company to its wholly owned subsidiary, Swastika Fin-Mart Private Limited has utilised for meeting its principle business

activities only.

2 The details of investments made are given in Note No.6

49. Additional Regulatory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has no transaction with Companies which are struck off under section 248 of the Companies Act, 2013 or under section 560 of Companies Act,1956.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

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

(viii) The Company has not made any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

(ix) The Company has 4 subsidiaries which are wholly owned subsidiaries. The clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on Number of Layers) Rules, 2017 is complied with.

(xi) The quarterly returns or statements filed by the company for working capital limits with the banks are in agreement with the books of account of the company.

(xii) During the year no Scheme of Arrangement has been formulated by the Company/pending with competent authority.

(xiii) The Company does not have any immovable property as at the balance sheet date.

(xiv) There are no investment in properties and capital work in progress.

(xv) The Company has not revalued its Property, Plant and Equipment and intangible assets during the year.

(xvi) There are no intangible assets under development

(xvii) During the year, the Company has issued 25,15,000 equity share capital of '' 2 each upon conversion of 5,03,000 Share warrants.

(xviii) The amount borrowed from Banks and Financial Institution have been used for the specific purpose it was taken.

50. The Company has used accounting software i.e. Tally, Techexcel, for maintaining its books of account and masters. The aforesaid accounting software have a feature of recording audit trail (edit log) facility and the audit trail was enabled and operated throughout the year for relevant transactions recorded therein. Further, there were no instance of tampering of such audit trail noted in above software.

51. Subsequent Events:- Proposed Dividend

During the year ended March 31, 2025 on account of the final dividend for 2023-2024 the Company has incurred net cash outflow of '' 59.19 Lakhs. The Board of Directors in their meeting on April 30,2025 recommend a final dividend of '' 0.6 per equity share for the financial year ended March 31, 2025. This pay-out is subject to the approval of shareholders in the Annual General Meeting (AGM) of the Company and if approved would result in a net cash outflow during the year ended March 31, 2026 of '' 103.88 Lakhs. The Management expects that all share warrants issued and due for conversion as on balance sheet date will be converted into equity shares before the date of ensuing Annual General Meeting and their may be an additional outflow of '' 16.71 Lakhs.

There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2025.

52. These Financial Statements have been approved by the Company''s Board of Directors at their meeting held on April 30, 2025.The Board of Directors do not have the power to amend the financial statements.

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Mar 31, 2024

(xiii) Provisions

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

(xiv) Contingent liabilities and assets

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is termed as a contingent liability. The existence of a contingent liability is disclosed in note 38 to the financial statements. Contingent assets are neither recognised nor disclosed.

(xiv) Financial Instruments

A Financial Instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial Assets

1. Initial Recognition and Measurement

At initial recognition, all financial assets are measured at fair value. Such financial assets are subsequently classified under following three categories according to the purpose for which they are held. The classification is reviewed at the end of each reporting period.

(a) Financial Assets at Amortised Cost

At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates. These financial assets are intended to be held until maturity. Therefore, they are subsequently measured at amortized cost by applying the Effective Interest Rate (EIR) Method to the gross carrying amount of the financial asset. The EIR amortization is included as interest income in the profit or loss. The losses arising from impairment are recognized in the profit or loss.

(b) Financial Assets at Fair value through Other Comprehensive Income

At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates, as well as held for selling. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognized in Other Comprehensive Income (OCI). Interest income calculated using the effective interest rate (EIR) method, impairment gain or loss and foreign exchange gain or loss, if any, are recognized in the Statement of Profit and Loss. On de-recognition of the asset, cumulative gain or loss previously recognized in Other Comprehensive Income is reclassified from the OCI to Statement of Profit and Loss.

(c) Financial Assets at Fair value through Profit or Loss

At the date of initial recognition, financial assets are held for trading, or which are measured neither at Amortized Cost nor at Fair Value through OCI. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognized in the Statement of Profit and Loss.

2. Trade Receivables

A Receivable is classified as a ''Trade Receivable'' if it is in respect to the amount due from customers in the ordinary course of business. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.

Impairment is made on the expected credit losses, which are the present value of the cash shortfalls over the expected life of financial assets. The estimated impairment losses are recognized in a separate provision for impairment and the impairment losses are recognized in the Statement of Profit and Loss within other expenses.

Subsequent changes in assessment of impairment are recognized in provision for impairment and the change in impairment losses are recognized in the Statement of Profit and Loss within other expenses.

3. Investment in Equity Shares

Investments in Equity Securities are initially measured at cost. Any subsequent fair value gain or loss is recognized through Other Comprehensive Income.

4. Investment in Subsidiaries

The Company has accounted for its investment in subsidiaries at cost.

5. Investments in Mutual Funds

Investments in Mutual Funds are accounted for at cost. Any subsequent fair value gain or loss is recognized through Profit or Loss Account.

6. Impairment of Financial Assets

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at Fair value through Profit and Loss (FVTPL).

7. Expected Credit Losses are measured through a loss allowance at an amount equal to:

(a) The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

(b) Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).

For Trade Receivables Company applies ''Simplified Approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

8. De-recognition of Financial Asset

Financial Asset is primarily derecognized when:

(i) The right to receive cash flows from asset has expired, or

(ii) The Company has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “ Pass-Through" arrangement and either:

a) The Company has transferred substantially all the risks and rewards of the asset, or

b) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its right to receive cash flows from an asset or has entered into a pass through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Financial Liabilities

1. Initial Recognition and Measurement

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative financial instruments.

2. Subsequent Measurement

Financial Liabilities are classified as either Financial Liabilities at FVTPL or ''Other Financial Liabilities'':

(a) Financial Liabilities at FVTPL:

Financial Liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition as FVTPL. Financial Liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

(b) Other Financial Liabilities:

Other Financial Liabilities (including borrowings and trade and other payables) are subsequently measured at amortized cost using the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

3. De-Recognition of Financial Liability

A Financial Liability is derecognized when the obligation under the liability is discharged or cancelled or expires. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any noncash assets transferred or liabilities assumed, is recognized in profit or loss as other income or finance costs.

4. 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 recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

5. Derivative Financial Instruments

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss immediately.

(xv) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

(xvi) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Outstanding bank overdrafts are not considered integral part of the Company''s cash management.

(xvii) Business Combination under Common Control

A common control business combination, involving entities or businesses in which all of the combining entities or businesses are ultimately

controlled by the same party or parties both before and after the business combination and where the control is not transitory, is accounted for in accordance with Appendix C to Ind AS 103 ''Business Combinations''.

Business combinations involving entities or businesses under common control are accounted for using the pooling of interest method as follows:

• The assets and liabilities of the combining entities are reflected at their carrying amounts.

• No adjustments are made to reflect fair values, or recognize new assets or liabilities. Adjustments are made only to harmonize significant accounting policies.

• The financial information in the financial statements in respect of prior periods are restated as if the business combination had occurred from the beginning of the preceding period in the financial statements.

• The identity of the reserves are preserved and appear in the financial statements of the transferee in the same form in which they appeared in the financial statements of the transferor."

The difference, if any, between the amounts recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor is transferred to capital reserve and is presented separately from other capital reserves with disclosure of its nature and purpose in the notes.

(xviii) Significant Accounting Judgments, Estimates and Assumptions

The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on ongoing basis. Any changes to accounting estimates are recognized prospectively.

Information about critical judgments in applying accounting policies, as well as estimates and assumptionsthat have the most significant effect on the amounts recognised in the financial statements are included in the following notes:

a. Recognition of deferred tax assets liabilities

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences could be utilized.Further details are disclosed in note 39.

b. Provision and contingent liability :

On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the likelihood of which is remote are not disclosed in the financial statements. Gain contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.

c. Allowance for impairment of financial asset :

The Company recognizes loss allowances for expected credit losses on its financial assets measured at amortized cost. At each reporting date, the Company assesses whether financial assets carried at amortized cost are credit impaired. A financial asset is ''credit impaired'' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

d. Defined Benefit Plans :

The present value of the cost of the defined benefit plan and other post-employment benefits are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in future. These Includes the determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its longterm nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

e. Property, Plant and Equipment and Intangible Assets:

Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded during any reporting period. The useful lives and residual values as per schedule II of the Companies Act, 2013 or are based on the Company''s historical experience with similar assets and taking into account anticipated technological changes, whichever is more appropriate.

(xix) New and amended standards

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated March 31, 2023 to amend the following Ind AS which are effective for annual periods beginning on or after April 01, 2023. The Company applied these amendments for the first-time during the year.

i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Company''s standalone financial statements.

ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s financial statements.

iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The amendments had no impact on the Company''s standalone financial statements.

iv) Apart from these, consequential amendments and editorials have been made to other Ind AS like Ind AS 101, Ind AS 102, Ind AS 103, Ind AS 107, Ind AS 109, Ind AS 115 and Ind AS 34.

40. Segment Reporting

The Company''s operations predominantly relate to equity, currency and commodity broking and its related activities business and is the only operating segment of the Company. The Chief Operating Decision Maker (CODM) reviews the operations of the Company as one operating segment. Hence no separate segment information has been furnished herewith.

The Company operates in one geographic segment namely "within India'''' and hence no separate information for geographic segment wise disclosure is required.

The Company is presenting consolidated financial statements and hence in accordance with "IND AS 108 Segment Reporting'''' segment information is disclosed in consolidated financial statements.

41. Capital Management

Risk management

The Company''s objectives when managing capital are to safeguard their ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

42. Subsequent Events:- Proposed Dividend

During the year ended March 31, 2024 on account of the final dividend for 2022-2023 the company has incurred net cash outflow of '' 59.19 lakhs . The Board of Directors in their meeting on May 3, 2024 recommend a final dividend of '' 2 per equity share for the financial year ended March 31, 2024. This pay-out is subject to the approval of shareholders in the Annual General Meeting (AGM) of the Company and if approved would result in a net cash outflow during the year ended March 31, 2025 of approximately '' 59.19 lakhs

43. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2024.

44. Lease

The Company has obtained premises for its business operations under lease. Such leases are generally have a lease term of 12 months or less with the option of premature cancellation of agreement on mutual consent of both the parties without having any purchase option. Lease payments are recognized in the Statement of Profit and Loss under "Rent" in Note no. 34.

45. Financial Risk Management

The Board provides guiding principles for overall risk management, as well as policies covering specific areas such as credit risk, liquidity risk, price risk, investment of surplus liquidity and other business risks effecting business operation. The Company''s risk management is carried out by the management as per guidelines and policies approved by the Board of Directors.

(A) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses the direct risk of default, risk of deterioration of creditworthiness as well as concentration risks. The Company is exposed to credit risk from its operating activities (primarily trade receivables), deposits with banks and loans given.

Credit Risk Management

For financial assets the Company has an investment policy which allows the Company to invest only with counterparties having high credit ratings or with higher credentials. The Company reviews the creditworthiness of these counterparties on an ongoing basis. Another source of credit risk at the reporting date is from trade receivables as the company having collateral against the receivables in normal course. This credit risk has always been managed through credit approval, establishing credit limits and continuous monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The Company estimates the expected credit loss based on past data, available information on public domain and experience. Expected credit losses of financial assets receivable are estimated based on historical data of the

Loan-Margin Trading Facilities

Margin trading facilities are secured by collaterals. As per policy of the Company, margin trading facilities to the extent covered by collateral and servicing interest on a regular basis is not considered as due/default. As per policy any account become due/default will be fully written off as bad debt against respective receivables and the amount of loss will be recognised in the Statement of Profit and Loss. Subsequent recoveries of amounts previously written off will be credited to the Statement of Profit and Loss as bad debts recovered. However there is no account of margin trading facility written off or recovered during the year.

As per Ind AS 109, the maximum period to consider when measuring expected credit losses is the maximum contractual period (including extension options) over which the Comapny is exposed to credit risk and not a longer period, even if that longer period is consistent with business practice. Therefore, the maximum period to consider when measuring expected credit losses for these margin trading facilities is the maximum contractual period (i.e. on demand/one day). For the computation of ECL, the margin trading facilities are classified into three stages as follows:

(B) Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash, other bank balances and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The company''s treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the company''s liquidity position through rolling forecasts on the basis of expected cash flows.

Refer Note no. 47 for analysis of maturities of financial assets and financial liabilities.

(D) Market Risk

Market risk is the risk that the fair value of future cash flows of the company will fluctuate because of movement in stock market. The company''s nature of business and operations exposed to the market risks namely stock market movement risks, competition risks and technology risks. These risks may affect the company''s income and expenses or the value equity investments. Nevertheless, the company believes that it has competitive advantage in terms of high quality services and by continuously upgrading its technology for front and back office Softwares to meet the needs of its customers.

(i) Equity Price Risk

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

The Company''s equity price risk is managed in accordance with the guidelines and directions issued by management and board of directors of the company. The directions specifies exposure limits and risk limits for the proprietary desk of the Company and stipulates risk-based margin requirements for margin-based trading in equity cash and derivative segment by its clients.

52. Disclosure as per the rquirements of Section 186(4) of the Companies Act 2013:

1 The loan given by company to its wholly owned subsidiary, Swastika Finmart Private Limited has utilised for meeting its principle business

activities only.

2 The details of investments made are given in Note No.6

53. Additional Regulatory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company has no transaction with Companies which are struck off under section 248 of the Companies Act,2013 or under section 560 of Companies Act,1956.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall.

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

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

(viii) The Company has not made any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

(ix) The Company has 3 subsidiaries which are wholly owned subsidiaries. The clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on Number of Layers) Rules, 2017 is complied with.

(xi) The quarterly returns or statements filed by the company for working capital limits with the banks are in agreement with the books of account of the company.

(xii) During the year no Scheme of Arrangement has been formulated by the Company/pending with competent authority.

(xiii) The company dose not have any immovable property as at the balance sheet date.

(xiv) There are no investment in properties and capital work in progress.

(xv) The Company has not revalued its Property, Plant and Equipment and intangible assets during the year.

(xvi) There are no intangible assets under development.

(xvii) During the year, the Company has not issued any securities. However company has issued 10,60,000 convertible share warrants.

(xviii) The amount borrowed from Banks and Financial Institution have been used for the specific purpose it was taken.

54. These Financial Statements have been approved by the Company''s Board of Directors at their meeting held on May 03, 2024.The Board of Directors do not have the power to amend the financial statements.

As per our Report of even date Attached For & on behalf of the Board of Directors

For Fadnis & Gupte LLP Swastika Investmart Limited

Chartered Accountants FRN : 006600C/ C400324

Sunil Nyati Anita Nyati

(Chairman & Managing Director) (Whole Time Director)

CA Yash Nagar DIN : 00015963 DIN : 01454595

Partner

M. No. 440288

Place: Indore Mahendra Kumar Sharma Shikha Bansal

Date : May 03, 2024 (Chief Financial Officer) (Company Secretary)

Membership No.: A36520

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Mar 31, 2015

1. Contingent Liabilities:

a) Contingent liabilities for Bank Guarantee issued in favour of NSE / BSE is Rs. 4,50,00,000/- (Previous year was Rs. 3,00,00,000/-).

b) Contingent liabilities in respect of demand raised by the concerned departments against which company has preferred appeal before the higher authorities, details of which are as under -

c) Ademand of Rs. 2,42,260/- has been raised by the Income Tax Department for A.Y. 2010-11. The demand is due to the reason that the assessing officer has made certain additions for which the Company has not preferred any appeal. The department has also not allowed credit of certain TDS claimed by the Company. As the exact calculation for amount of tax and interest is not available with the Company, the Company has provided Rs. 67, 700/-on prudent basis in the F.Y.2012-13, out of the above demand and the same has been adjusted against the refund receivable.

d) A provision of Rs. 3, 94,000/- for the similar reasons on prudent basis for the A.Y. 2008-09 and A.Y. 2009-10 has been made during F.Y.2011-12, the same has not been paid by the Company as no calculation for the bifurcation of the amount for tax and interest has been made available to the Company by the income tax department.

2. In the opinion of Management the current assets, loans and advances have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated and provisions for all known liabilities have been made. Balance of Sundry Debtors and Sundry Creditors are subject to confirmations.

3. There are no amounts payable to any micro, small and medium (SMEs) scale industrial undertaking as identified by the management from the information available with the company and relied upon by the Auditors.

4. Shares and Securities received from or on behalf of clients, held by the Company as collateral in its own name in a fiduciary capacity, and/or are lodged with the exchanges/F 6t 0 Clearing Member towards additional base capital / exposure and / or pledged to bank against overdraft facility.

5. In the current year, various expenses like advertisement, salary, rent and other expenses has been allocated and accounted for in respective expenses head on proportionate basis to the Subsidiary Company Swastika Commodities Private Limited and Swastika Fin-Mart Private Limited and the payment from Subsidiary Company has been received against the same.

6. Interest expenses is netted off by the amount of Rs. 44,15,096/- (Previous year Rs.52,45,505/-) allocated to the Swastika Commodities Private Limited (a 100% Subsidiary Company) on account of utilization of the funds on behalf of the common clients of the Company and Swastika Commodities Private Limited.

7. During the current year, the company has implemented Schedule II of the Companies Act, 2013 and accordingly computed the depreciation based on revised useful life of the fixed assets as prescribed under Schedule II of the Act. The carrying value of the fixed assets which have completed their useful life as on 1st April,2014 have been charged off against the Statement of Profit and Loss at Rs. 20.62 lacs.

Had there not been any change in useful life of the fixed assets, the depreciation would have been lower by Rs. 43.35 lacs and therefore the profit would have been higher by Rs. 43.35 lacs.

8. In the opinion of the management, fixed assets are not found to be impaired and therefore, no provision for impairment loss is made for the year.

9. The management is of the view that the diminution in the value of Long-term Investment is temporary in nature and therefore, no provision for the same has been made in the books of accounts for the year.

10. Short term borrowing includes amount received from Sub-brokers / Business Associates as security deposit for business purpose amounting to Rs. 14,345,199/- (F.Y. Rs. 19,248,198/-)

11. Previous year figures have been reclassified wherever necessary to confirm to the Classification for the year.

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Mar 31, 2014

1. a) Contingent liabilities for Bank Guarantee issued in favour of NSE / BSE is Rs. 3,00,00,000/- (Previous year was Rs. 3,00,00,000/-).

b) Demand in respect of the following matters is as follows:

(Figuresin Rs.)

Income Tax (A. Y. 2011-12) Rs.69,62,560/-

IncomeTax (A. Y. 2007-08) : Rs.93,375/-

ServiceTax : Rs.30,89,019/-

SEBI Penalty : Rs.7,00,000/-

Total: Rs. 1,08,44,954/-

c) Ademand of Rs. 2,42,260/- has been raised by the Income Tax Department for A.Y. 2010-11. The demand is due to the reason that the assessing officer has made certain additions for which the Company has not preferred any appeal. The department has also not allowed credit of certain TDS claimed by the Company. As the exact calculation for amount of tax and interest is not available with the Company, the Company has provided Rs. 67,700/-on prudent basis in the F.Y.2012-13, out of the above demand.

d) A provision of Rs. 3, 94,000/- for the similar reasons on prudent basis has been made during FY. 2011 -12, the same has not been paid by the Company as no calculation for the bifurcation of the amount for tax and interest has been made available to the Company by the income tax department.

2. In the opinion of Management the current assets, loans and advances have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated and provisions for all known liabilities have been made. Balance of Sundry Debtors and Sundry Creditors are subject to confirmations.

Note: Figures in brackets represent previous year balances.

C. Related Parties are identified by the management and relied upon by the Auditor.

D. No Balances in respect of Related Parties have been written off.

3. There are no amounts payable to any micro, small and medium (SMEs) scale industrial undertaking as identified by the management from the information available with the company and relied upon by the Auditors.

4. Shares and Securities received from or on behalf of clients, held by the Company as collateral in its own name in a fiduciary capacity, and/or are lodged with the exchanges/F 6t 0 Clearing Member towards additional base capital / exposure and / or pledged to bank against overdraft facility

5. In the current year, various expenses like advertisement, salary, rent and other expenses has been allocated and accounted for in respective expenses head on proportionate basis to the Subsidiary Company Swastika Commodities Private Ltd and the payment from Subsidiary Company has been received against the same.

6. Interest expenses is netted off by the amount of Rs. 52,45,505/- (Previous year Rs.73,80,049/-) allocated to the Swastika Commodities Pvt. Ltd. (a 100% Subsidiary Company) on account of utilization of the funds on behalf of the common clients of the Company and Swastika Commodities Pvt. Ltd.

7. In the opinion of the management, fixed assets are not found to be impaired and therefore, no provision for impairment loss is made for the year.

8. Exceptional items represents the reversal of excess depreciation charged in earlier years of Rs. 30,76,694 (Previous year Rs. 36,84,227/-) and other expenses of Rs. 24,437(Previous year related to gratuity of Rs. 17,295/-)

9. Previous year figures have been reclassified wherever necessary to confirm to the Classification for the year.

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Mar 31, 2013

1. i) Contingent liabilities for Bank Guarantee issued in favour of NSE / BSE is Rs. 300 Lacs. (Previous year was 300 Lacs).

ii) During the year,a demand of 2,42,260/-has been raised by the Income Tax Department for A.Y.2010-11. The demand is due to the reason that the assessing officer has made certain additions for which the Company has not preferred any appeal. The department has also not allowed credit of certain TDS claimed by the Company. As the exact calculation for amount of tax and interest is not available with the Company, the Company has provided Rs.67,700/- on prudent basis, out of the above demand.

iii) A provision of Rs. 3,94,000/-for the similar reasons on prudent basis has been made during F.Y.2011-12,the same has not been paid by the Company as no calculation for the bifurcation of the amount for tax and interest has been made available to the Company by the income taxdepartment. 2. In the opinion of Management the current assets, loans and advances have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated and provisions for all known liabilities have been made. Balanceof Sundry Debtors and Sundry Creditors are subject to confirmations.

Note: Figures in brackets represent previous year balances.

C) Related Parties are identified by the management and relied upon by the Auditors.

D) No Balances in respect of Related Parties have been written off.

2. The details of the group''s post retirement benefit plan for gratuity for its employees in conformity with the principlessetoutinAS 15which has been determined by anActuary appointed forthe purpose and relied upon bytheAuditorsaregiven below:

3. There are no amounts payable to any micro, small and medium (SMEs) scale industrial undertaking as identified by the management from the information available with the company and relied upon by the Auditors.

4. Shares and Securities received from or on behalf of clients, held by the Company as collateral in its own name in a fiduciary capacity, and/or are lodged with the exchanges/F & O Clearing Member towards additional base capital/exposure and/or pledged to bank against over draft facility

5. In the current year, various expenses like advertisement, salary, rent and other expenses has been allocated and accounted for in respective expenses head on proportionate basis to the Subsidiary Company Swastika Commodities Private Ltd and the payment from Subsidiary Company has been received against the same.

6. Interest expenses is netted off by the amount of Rs.73,80,049/- allocated to the Swastika Commodities Pvt. Ltd. (a 100% Subsidiary Company) on account of utilization of the funds on behalf of the common clients of the Company and Swastika Commodities Pvt. Ltd.

7. In the opinion of the management, fixed assets are not found to be impaired and therefore, no provision for impairment loss is made for the year.

8. Exceptional items represents the reversal of excess depreciation charged in earlier years of Rs.36, 84,227/- and gratuity of Rs. 17,295/-.

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Mar 31, 2012

1. i) Contingent liabilities for Bank Guarantee issued in favour of NSE / BSE is Rs. 300 Lacs. (Previous year was Rs. 300 Lacs).

ii) Demand in respect of the following matters is as follows:

(In Rs.)

Income Tax 1,610,175/-

Service Tax 3,834,419/-

SEBI Penalty 700,000/-

Total 6,144,594/-

2. In the opinion of Management the current assets, loans and advances have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated and provisions for all known liabilities have been made. Balance of Sundry Debtors and Sundry Creditors are subject to confirmations.

3. Statutory auditor's remuneration :

Note: Figures in brackets represent previous year balances.

C) Related Parties are identified by the management and relied upon by the Auditors.

D) No Balances in respect of Related Parties have been written off.

4. The details of the group's post retirement benefit plan for gratuity for its employees in conformity with the principles set out in AS 15 which has been determined by an Actuary appointed for the purpose and relied upon by the Auditors are given below:

5. There are no amounts payable to any micro, small and medium (SMEs) scale industrial undertaking as identified by the management from the information available with the company and relied upon by the Auditors.

6. Shares and Securities received from or on behalf of clients, held by the Company as collateral in its own name in a fiduciary capacity, and/or are lodged with the exchanges/F & O Clearing Member towards additional base capital / exposure and / or pledged to bank against overdraft facility

7. Other Operational Income of Rs. 1.45 Crores shown under the head Other Income during the Previous Year 2010- 11, represents reimbursement of various expenses like advertisement, salary and rent expenses from the Subsidiary Company Swastika Commodities Private Ltd. In the current year, such expenses has been allocated and accounted for in respective expenses head on proportionate basis and the payment from Subsidiary Company has been received against the same

8. In the opinion of the management, fixed assets are not found to be impaired and therefore, no provision for impairment loss is made for the year.

9. Previous year figures have been reclassified wherever necessary to confirm to the Classification for the year.

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Mar 31, 2010

1. a) Contingent liabilities for Bank Guarantee issued in favour of NSE / BSE is Rs. 300 Lacs.(Previous year was Rs 215 Lacs)

b) Demand in respect of Income Tax Matter for which appeal is pending Rs. 9,25,484/-

2. In the opinion of Management the current assets, loans and advances have a value on realization in the ordinary course of the business at least equal to the amount at which they are stated and provisions for all known liabilities have been made. Balance of Sundry Debtors and Sundry Creditors are subject to confirmations.

3. Market value of shares shown as stock in trade is Rs. 1,51,64,529/- (Previous year Rs. 33,97,013/-).

4. Remuneration Paid to the Directors of the Company:

The remuneration of the promoter directors and other directors are decided on the recommendation of the Remuneration Committee and approved by the Board of Directors and Shareholders. Any change in remuneration is also effected in the same manner and / or in line with the applicable statutory approvals.

5. a) Fixed Deposits lodged with Exchanges towards security deposit/base minimum capital/Additional base capital.

b) Securities received from clients as collateral for margins are held by the Company in its own name in a fiduciary capacity and / or lodged with the exchanges towards additional base capital / exposure and / or pledged to bank against overdraft facility.

6. The company in compliance with Accounting Standards (AS) 15- "Employee Benefits" has, for the third time, provided for long term compensated absences.

An amount of Rs 59,356/- as contribution towards defined contribution plans is recognized as expenses in the profit & loss account.

7. There are no amounts payable to any micro, small and medium (SMEs) scale industrial undertaking as identified by the management from the information available with the company and relied upon by the Auditors.

8. Fixed Deposits with Banks of Rs. 1,65,00,000/- (P.Y. Rs. 2,07,50,000/-) have been pledged with Banks against Overdraft (Rs 1,48,50,000/-) and Bank Guarantee (1,50,00,000/-) facilities.

9. In the opinion of the management, fixed assets is not found to be impaired and therefore, no provision for impairment loss is made for the year.

10. Previous year figures have been reclassified wherever necessary to confirm to the Classification for the year.