Notes to Accounts of V B Desai Financial Services Ltd.

Mar 31, 2024

L. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized, when there is a present legal or constructive obligation as a result of past events, where it is probable that
there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.
Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value
of those cash flows. Where the effect is material, the provision is discounted to net present value using an appropriate current market-
based pre-tax discount rate and the unwinding of the discount is included in fi nance costs. Contingent liabilities are recognised only
when there is a possible obligation arising from past events, due to occurrence or non-occurrence of one or more uncertain future
events, not wholly within the control of the Company, or where any present obligation cannot be measured in terms of future outfl
ow of resources, or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only
those having a largely probable outflow of resources are provided for. Contingent assets are not disclosed in the financial statements
unless an inflow of economic benefits is probable.

M. Significant accounting judgements, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions as
described below that affect the reported amounts and the accompanying disclosures. 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.

Assumptions

The cost of the defined benefit plans and the present value of the defined benefit obligations are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future.

Estimates

The estimates used by the company to present the amount in accordance with Ind AS reflect conditions as at the March 31, 2024.

29. Segment Reporting

The Company has only one segment i.e. Merchant Banking and financial services, therefore segment wise reporting has not been given as
required by Indian Accounting Standard (IND AS 108).

30. Adoption of New Income Tax Provision ie. Section 115BAA of Income Tax Act

The Company has elected an option of reduced income tax rate of 22% plus surcharge and cess available under section 115BAA which is
made effective vide Taxation Laws (Amendment) Ordinance 2019 from assessment year beginning on or after the April 1,2020.

31. Financial Risk Management
Financial risk factors

The Company''s principal financial liabilities, comprises of trade and other payables and other financial liabilities. The main purpose of these
financial liabilities is to finance the Company''s operations The Company''s principal financial assets include trade and other receivables, cash
and cash equivalent, investments and short-term deposits that derive directly from its operations. The Company''s activities expose it to a
variety of financial risks: market risk, credit risk and liquidity risk. The Company''s primary focus is to foresee the unpredictability of financial
markets and seek to minimize potential adverse effects on its financial performance.

The Company''s senior management overseas the management of these risks. Company''s financial risk activities are governed by
appropriate policies and procedures laid out by the senior management and financial risks are identified, measured and managed in
accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these
risks, which are summarised below.

Foreign currency risk

Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is
not a company''s functional currency. Impact of the rate fluctuation is accounted in profit and loss.

Credit risk analysis

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. The Company is exposed to credit risk arising from cash and cash equivalent deposits with banks, trade receivables, investments and
other financial assets. Credit risk has been managed by the company by establishing credit limits and creditworthiness of customers to
which the company grants credit terms in the normal course of business. For banks and financial institutions, only high rated banks/
institutions are accepted.

Customer credit risk is managed by each customer group subject to the Company''s established policy, procedures and control relating to
customer credit risk management. Trade Receivable has been managed by the Company by establishing credit limits and credit worthiness
of customers to which the Company grants credit terms in the normal course of business.

Provision on Trade receivable is calculated as per expected credit loss method (ECL) as per IND AS. ECL is calculated on the basis of
average bad debts on turnover of 3 years i.e from 2015-16 to 2017-18. Such average % is moderated to align with current and future
business, customers and risk profile. The provision determined as per policy for the year 2016-17 amounts to Rs.17,50,592/-. As there is
adequate provision pre-existing in the books, it is not required to make any additional provision for the year. Further, it is also proposed to
continue the same till the provision under IND AS exceeds the pre-existing provision in the books.

Liquidity risk analysis
Risk assessment

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate
amount of committed credit facilities to meet obligations when due and to close out market positions. The Company has assets which are expected
to be realised within 12 months Rs.110.00 lakhs as on March 2024 (as on March 2023 is Rs84.99 lakhs). The Company has liabilities which are
expected to mature within 12 months Rs.66.91 lakhs as on March 2024 (as on March 2023 is Rs.52.93 lakhs). Hence Company had a working
capital of Rs.43.09 lakhs as on March 2024 (as on March 2023 is Rs.32.06 lakhs).

Risk Management

Whenever working capital is required Company''s Executive Directors provides funding to the Company.

Fair value hierarchy

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds
and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is
valued using the closing price as at the reporting period.

Level 2 - The fair value of financial instruments that are not traded in active market (for example, counter derivatives) is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 - If one or more of the significant Inputs is not based on observable market data (unobservable inputs), the instrument is included in level
3. This is case of the unlisted equity instruments included in level 3.

Capital management policies

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves
attributable to the equity holders of the company. The primary objective of the Company''s capital management is to maximise the shareholder
value and maintain an optimal capital structure to reduce the cost of capital. The Company monitors capital on the basis of the gearing ratio; Net
debt (total borrowing net of cash and cash equivalents)/Total equity.

32. Transactions with Strike off companies

During the year, the Company does not have any transaction with the Strike off Companies, by the Ministry of Corporate Affairs.

33. Additional disclosure as required under schedule III of the Companies Act, 2013 is either NIL or Not Applicable. Accordingly, it is not reported.

---

Mar 31, 2015

1. Contingent Liabilities

There are no contingent liabilities.

2. Related Party Disclosures

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

Details of related parties:

Description of relationship Names of related parties

Enterprise in which KMP/ Relatives of KMP can exercise Arodyne Chemicals Ltd. significant influence Aum Financial Consultants

Avd hoot Finance & Investment Pvt. Ltd.

Bahl & Co. Pvt. Ltd.

Desai Industrial Finance Pvt. Ltd.

J R Shroff HUF

Som Holding & Trading Co. Pvt. Ltd.

Key Management Personnel (KMP) Mr. Pradeep R. Shroff

Mr. Manoj T. Shroff

3. In the opinion of Board of Directors all assets other than non-current investments, have a realizable value in the ordinary course of business which is not different from the amount at which it is stated and the provisions for all known liabilities are adequate and not in excess of the amounts reasonably necessary.

4. No personal expenses have been debited to Profit and Loss Account except those payable under contractual obligation or normal business practices.

5. Segment Reporting

The Company has only one segment i.e. Merchant Banking and financial services, therefore segment wise reporting has not been given as required by Accounting Standard 17.

6. Previous year's figures

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

---

Mar 31, 2014

CORPORATE INFORMATION

The Company is registered with Securities and Exchange Board of India as Category - I Merchant Banker to carry out merchant banking and related activities.

1. Contingent Liabilities

There are no contingent liabilities.

29. During the year, unquoted securities held as Inventories amounting to Rs. 477.47 lacs have been transferred at book value to Non-Current Investments.

2. In the opinion of Board of Directors all assets other than non-current investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated and the provisions for all known liabilities are adequate and not in excess of the amounts reasonably necessary.

3. No personal expenses have been debited to Profit and Loss Account except those payable under contractual obligation or normal business practices.

4. Segment Reporting

The Company has only one segment i.e. Merchant Banking and financial services, therefore segmentwise reporting has not been given as required by Accounting Standard 17.

5. Previous year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2013

CORPORATE INFORMATION

The Company is registered with Securities and Exchange Board of India as Category -1 Merchant Banker. The Company also renders other financial consultancy services.

1. Contingent Liabilities -

There are no contingent liabilities.

2. Related Party Disclosures

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

Details of related parties:

Description of relationship Names of related parties

Enterprise in which KMP / Relatives of Arodyne Chemicals Ltd.

KMP can exercise significant influence Aum Financial Consultants

Avdhoot Finance & Investments Pvt. Ltd.

Avdhoot Housing Finance Co. Pvt. Ltd.

Bahl & Co. Pvt. Ltd.

Desai Industrial Finance Pvt. Ltd.

J R Shroff HUF

Som Holding & Trading Co. Pvt. Ltd. Key Management Personnel (KMP) Mr. Pradeep R. Shroff

Mr. Manoj T. Shroff

3. Employee Benefit

The Company has not provided gratuity/leave encashment on the basis of actuarial valuation as required by Accounting Standard 15.

4. Sundry Debtors

The company has not provided for doubtful debts of Rs. 17.51 lac (Previous Year Rs.25.83 lac).

5. In the opinion of Board of Directors all assets other than fixed assets and non current investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated and the provisions for all known liabilities are adequate and not in excess of the amounts reasonably necessary.

6. No personal expenses have been debited to Statement of Profit and Loss except those payable under contractual obligation or normal business practices.

7. The balance due to / from parties are subject to confirmation.

8. Segment Reporting

The Company has only one segment i.e. Merchant Banking and related services, therefore segmantwise reporting has not been given as required by Accounting Standard 17.

9. Previous year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

---

Mar 31, 2012

CORPORATE INFORMATION

The Company is registered with Securities and Exchange Board of India as Category -1 Merchant Banker to carry out merchant banking and related activities.

1. Contingent Liabilities

There are no contingent liabilities.

2. Professional Fees

Professional fees are accounted on accrual basis. However, in one of the cases, the Company has accounted professional fees on the basis of bill raised for the future period resulting into over-statement of income by Rs. 32.50 lac. The same practice of accounting will be followed till the expiry of such agreement. .

3. Employee Benefit

The Company has not provided gratuity/leave encashment on the basis of actuarial valuation as required by Accounting Standard 15.

4. Sundry Debtors

The company has not provided for doubtful debts of Rs.26.03 lac (Previous Year Rs.25.83 lac).

5. In the opinion of the Board of Directors, Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

6. No personal expenses have been debited to Profit and Loss Account except those payable under contractual obligation or normal business practices.

7. Segment Reporting

The Company has only one segment i.e. Merchant Banking and related services, therefore segment wise reporting has not been given as required by Accounting Standard 17.

8. Previous year's figures

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

---

Mar 31, 2011

1. CONTINGENT LIABILITIES

We have been informed that there are no contingent liabilities

2. PROFESSIONAL FEES

Professional fees are accounted on accrual basis. However, in one of the cases, the Company has accounted professional fees on the basis of bill raised for the future period resulting into over-statement of income by Rs. 32.50 lac. The same practice of accounting will be followed till the expiry of such agreement.

3. EMPLOYEES BENEFIT

The Company has not provided gratuity on the basis of actuarial valuation as required by Accounting Standard 15 (revised). We are unable to quantify the effect on profits / loss, if any, had such gratuity been provided on the basis of actuarial valuation.

4. SUNDRY DEBTORS

Rs.25.83 lac (Previous Year Rs.25.83 lac) is considered doubtful of recovery. No provision is made for the same.

5. Confirmation letters are being obtained from some of the debtors, creditors, certain loans taken and for certain bank accounts and loans and advances given. Hence, the balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

6. WRITE-OFF OF ACCUMULATED LOSSES

During the year the Company has written off accumulated losses of Rs.480.25 lac against Share Premium Account as per the Order dated 18th March, 2011 passed by the Hon'ble Bombay High Court.

7. INVESTMENT HELD UNDER STOCK IN TRADE

The Investments are shown as Stock-in-Trade and valued at cost or market /realization value whichever is lower. The Book Value of quoted and un-quoted investments is Rs.6.88 lac, Rs.472.33 lac, respectively (previous year Rs.6.47 lac, Rs.456.20 lac). The Market/realisable value of quoted and un-quoted investments are Rs.8.85 lac and Rs.472.33 lac respectively. Loss of Rs.0.11 lac has been provided on account of fall in market price of quoted investments.

8. AMOUNT DUE TO SAME

The Company does not owe any sum payable to Creditors registered under Micro, Small and Medium Enterprises Development Act, 2006.

9. DEFERRED TAX ASSETS(NET)

Major components of deferred tax assets and liabilities arising on account of timing differences as on 31st March, 2011 are mentioned below:

10. In the opinion of the Board of Directors, Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

11. RELATED PARTY DISCLOSURE

Related party disclosure as required by Accounting Standard No. 18 is given below:

12. No personal expenses have been debited to Profit and Loss Account except those payable under contractual obligation or normal business practices.

---

Mar 31, 2010

1. CONTINGENT LIABILITIES IN RESPECT OF: As at 31/03/2010 As at 31/03/2009

Income Tax disputed in Appeal NIL Rs. 21.43 lac

2. PROFESSIONAL FEES

Professional fees are accounted on accrual basis. However, in one of the cases, the Company has accounted professional fees on the basis of bill raised for the future period resulting into over-statement of income by Rs. 32.50 lac. The same practice of accounting will be followed till the expiry of such agreement.

3. EMPLOYEES BENEFIT

The Company has not provided gratuity on the basis of actuarial valuation as required by Accounting Standard 15 (revised). We are unable to quantify the effect on profits / loss, if any, had such gratuity been provided on the basis of actuarial valuation.

4. LOANS AND ADVANCES

Rs. Nil {Previous Year Rs.15.54 lac) due from a Company where directors of the company are interested.

5. SUNDRY DEBTORS

Rs.25.331 lac (Previous Year Rs.25.83 lac) is considered doubtful of recovery. No provision is made for the same. Current year Nil (Previous year Rs. 9.86 Lacs is due from the private companies where the Directors are interested

6. Confirmation letters are being obtained from some of the debtors, creditors, certain loans taken and for certain bank accounts and loams and advances given. Hence, the balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

7. INVESTMENT HELD UNDER STOCK IN TRADE

The Investments ate shown as Stock-in-Trade and valued at cost or market /realization value whichever is lower. The Book Value of quoted and un-quoted investments is Rs.6.47 lac, Rs.456.20 lac, respectively (previous year Rs.12.64 lac, Rs.451.52 lac). The Market/realisable value of quoted and un-quoted investments are Rs. 11.44 lac and Rs.453.04 lac respectively. Loss of Rs.0.45 lac has been provided on account of fall in market price of quoted investments.

8. AMOUNT DUE TO SME

The Company does not owe any sum payable to Creditors registered under Micro, Small and Medium Enterprises Development Act, 2006.

9. In the opinion of the Board of Directors, Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

10. RELATED PARTY DISCLOSURE

Related party disclosure as required by Accounting Standard No.18 is given below :

List of related parties and the transactions taken place during the year:

11. No personal expenses have been debited to Profit and Loss Account except those payable under contractual obligation or normal business practices.

12. Previous years figures are regrouped/rearranged wherever found necessary.