Accounting Policies of Vertex Securities Ltd. Company

Mar 31, 2025

2 SUMMARY OF MATERIAL ACCOUNTING POLICIES

2.1 STATEMENT OF COMPLIANCE AND BASIS FOR PREPARATION AND PRESENTATION OF FINANCIAL
STATEMENTS

a) These Standalone Financial Statements of the Company have been prepared in accordance with the 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, and other relevant
provisions of the Act. The financial statements have also been prepared in conformity with the accounting principles
generally accepted in India.

b) The standalone financial statements were approved and authorized for issue by the Board of Directors of the
Company at its meeting held on April 30, 2025.

c) The accounting policies have been consistently applied to all periods presented in the standalone financial
statements except where a newly issued Ind AS is applied for the first time or where a change in accounting policy
is required due to amendment to existing standards.

d) The standalone balance sheet, the standalone statement of profit and loss, the standalone statement of changes in
equity, and disclosures have been prepared in accordance with the format prescribed under Division III of Schedule
III to the Companies Act, 2013, as amended, applicable to Non-Banking Financial Companies (NBFCs) that are
required to comply with Ind AS. The standalone statement of cash flows has been prepared in accordance with Ind
AS 7, Statement of Cash Flows.

2.2 FUNCTIONAL & MEASUREMENT CURRENCY

These standalone financial statements are presented in Indian Rupees (INR or Rs.), which is the Company’s functional
and presentation currency. All financial information presented in INR has been rounded to the nearest lakhs with two
decimal places unless otherwise stated. Amounts stated as “0.00” represent values that are below the rounding off
threshold.

2.3 BASIS OF MEASUREMENT

The standalone financial statements have been prepared on the historical cost basis except for certain financial
instruments which are measured at fair values:

i. Financial instruments measured at fair value through profit or loss (FVTPL)

ii. Financial assets classified as fair value through other comprehensive income (FVOCI)

iii. Derivative financial instruments

iv. other financial assets held for trading

2.4 KEY ACCOUNTING ESTIMATES & JUDGEMENTS

a) The preparation of these financial statements in accordance with Indian Accounting Standards (IND AS) requires
management to make estimates, judgements, and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities (including contingent liabilities), income, expenses, and related
disclosures at the reporting date.

b) These estimates and assumptions are based on historical experience, current and expected future events, and
various other factors that are considered reasonable under the circumstances.

c) The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised prospectively in the period of revision and, where applicable, in future periods. If such revisions are material,
they are disclosed in the relevant notes to the financial statements.

d) Significant areas involving a higher degree of judgement or complexity, or areas where estimates have a significant
impact on the financial statements, include but not limited to:

(i) Valuation of financial instruments

(ii) Assessment of impairment of assets

(iii) Useful lives of property, plant and equipment and intangibles

(iv) Recognition of revenue and contract assets

(v) Deferred tax assets

(vi) Provisions and contingencies

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

(i) Business Model Assessment:

Classification and measurement of financial assets depends on the results of the SPPI (Solely Payments of
Principal and Interest) 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 particular 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. The Company monitors financial assets measured at amortised cost or fair value through other
comprehensive income 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.

Fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved
investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets
are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value
being recognised in the standalone statement of profit and loss in the period in which they arise.

(ii) Measurement of Fair Values

The preparation of the financial statements requires the Company to measure certain financial and non-financial
assets and liabilities at fair value, both at initial recognition and at subsequent reporting dates.

Fair values are determined based on 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 under current market conditions,
regardless of whether that price is directly observable or estimated using a valuation technique.

The Company classifies fair value measurements using a fair value hierarchy, which reflects the significance of
inputs used in making the measurements. The fair value hierarchy has the following levels:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can
access at the measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly,
such as quoted prices for similar assets or liabilities in active markets, or inputs derived from observable market
data.

Level 3: Inputs that are unobservable for the asset or liability, based on the Company''s own assumptions about the
assumptions market participants would use in pricing the asset or liability.

For items that are recognised in the financial statements on a recurring basis at fair value, the Company determines
whether transfers between levels in the hierarchy have occurred by reassessing the categorisation (based on the
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

Valuation techniques used to determine fair value include the market approach, income approach, and cost
approach, as appropriate. When applicable, the Company calibrates valuation models using observable data and
reviews the models periodically for consistency and reliability.

(iii) Effective Interest Rate (EIR) Method

The Company’s EIR methodology, recognises interest income / expense using a rate of return that represents the
best estimate of a constant rate of return over the expected behavioural life of loans given / taken and recognises
the effect of potentially different interest rates at various stages and other characteristics of the financial instruments.
This estimation, by nature, requires an element of judgement regarding the expected behaviour and life-cycle of the
instruments, as well expected changes to India’s base rate and other fee income/expense that are integral parts of
the instrument.

(iv) Provision & Contingent Liability:

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 considered to be 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.

(v) Expected Credit Loss:

When determining whether the risk of default on a financial instruments has increased significantly since initial
recognition, the company considers reasonable and supportable information that is relevant and available without
undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the company’s
historical experience and credit assessment and including forward-looking information.

The inputs used and process followed by the company in determining the ECL have been detailed in note 31.

(vi) Defined Benefit Plans

The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial
valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that
may differ from actual developments in the future. These include the determination of the discount rate, future
salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each
reporting date.

(vii) Leases

With effect from 1 April 2019, the Company has applied Ind AS 116 ''Leases'' for all long term and material lease
contracts covered by the Ind AS. The Company has adopted modified retrospective approach as stated in Ind AS
116 for all applicable leases on the date of adoption.

Measurement of Lease Liability

At the time of initial recognition, the Company measures lease liability as present value of all lease payments
discounted using the Company’s incremental cost of borrowing and directly attributable costs. Subsequently, the
lease liability is -

(a) increased by interest on lease liability;

(b) reduced by lease payments made; and

(c) remeasured to reflect any reassessment or lease modifications specified in Ind AS 116 ''Leases'', or to reflect
revised fixed lease payments.

Measurement of Right-of-use assets

At the time of initial recognition, the Company measures ''Right-of-use assets'' as present value of all lease payments
discounted using the Company’s incremental cost of borrowing w.r.t said lease contract. Subsequently, ''Right-of-
use assets'' is measured using cost model i.e. at cost less any accumulated depreciation and any accumulated
impairment losses adjusted for any remeasurement of the lease liability specified in Ind AS 116 ''Leases''.

Depreciation on ''Right-of-use assets'' is provided on straight line basis over the lease period.

The exception permitted in Ind AS 116 for low value assets and short term leases has been adopted by Company.

2.5 PROPERTY, PLANT & EQUIPMENT (PPE)

a) Recognition & Measurement

Property, plant and equipment are stated at cost less accumulated depreciation and impairment, if any. The cost of
property, plant and equipment comprise purchase price and any attributable cost of bringing the asset to its working
condition for its intended use. Advances paid towards the acquisition of property, plant and equipment outstanding
at each balance sheet date is classified as capital advances under other non-financial assets and the cost of assets
not put to use before such date is disclosed under ‘Capital work-in-progress’.

Assets held for sale or disposals are stated at the lower of their net book value and net realisable value.

b) Subsequent Measurement

Subsequent expenditure related to the asset are added to its carrying amount or recognised as a separate asset
only if it increases the future benefits of the existing asset, beyond its previously assessed standards of performance
and cost can be measured reliably. Other repairs and maintenance costs are expensed off as and when incurred.

c) Depreciation, estimated useful life & residual values

Depreciation on PPE is provided on straight-line basis in accordance with the useful lives specified in Schedule II
to the Companies Act, 2013 on a pro-rata basis.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at the end
of each financial year and adjusted prospectively, if appropriate. Changes in the expected useful life are accounted for
by modifying the depreciation period or methodology, as appropriate, and treated as change in accounting estimates.

The carrying amount of an item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. The date of disposal of an item of property, plant and equipment
is the date when the recipient gains control of the item, in accordance with the requirements for determining when
a performance obligation is satisfied under Ind AS 115. The gain or loss arising from the derecognition of an item of
property, plant and equipment is measured as the difference between the net disposal proceeds and the carrying amount
of the item, and it is recognised in the Statement of Profit and Loss.

2.6 INTANGIBLE ASSETS

a) An intangible asset is recognised only when its cost can be measured reliably, and it is probable that the expected
future economic benefits that are attributable to it will flow to the Company.

b) Intangible assets are stated at cost less accumulated amortization and accumulated impairment loss, if any.

c) Intangible assets comprises of Membership rights of Stock Exchanges, Computer software and Software
licences which is amortized over the estimated useful life. The amortization period of Stock exchange license and
membership right is 10 years and computer software is 3 years which is based on management’s estimates of
useful life. Amortisation is calcualted using the straight line method to write down the cost of intangible assets over
their estimated useful lives.

d) Subsequent expenditure related to the asset is added to its carrying amount or recognised as a separate asset only
if it increases the future benefits of the existing asset, beyond its previously assessed standards of performance
and cost can be measured reliably.

(e) Gains or losses from derecognition of intangible assets are measured as the difference between the net disposal
proceeds and the carrying amount of the asset are recognised in the Statement of Profit or Loss when the asset is
derecognised.

2.7 INVESTMENT IN SUBSIDIARIES AND ASSOCIATES

Investments in subsidiaries, joint ventures and associates are recognised at cost as per Ind AS 27. Except where
investments accounted for at cost shall be accounted for in accordance with Ind AS 105, Non-current Assets Held for
Sale and Discontinued Operations, when they are classified as held for sale.

2.8 FOREIGN EXCHANGE

The Company’s financial statements are presented in Indian Rupee, which is also the Company’s functional currency.

a) Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount
the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

b) Conversion

Foreign currency monetary items are re-translated using the exchange rate prevailing at the reporting date. Non¬
monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported
using the exchange rate at the date of the transaction.

c) Exchange difference

All exchange differences are accounted in the Statement of Profit and Loss.

2.9 FINANCIAL INSTRUMENTS

a) Date of recognition

Financial assets and financial liabilities are recognised in the Company''s Standalone Balance sheet, when the
Company becomes a party to the contractual provisions of the instrument.

b) Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through
other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow
characteristics and the Company’s business model for managing them. With the exception of trade receivables
are measured at transaction price determined under Ind AS 115 since it do not contain a significant financing
component and the Company has applied the practical expedient as well.

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.
Recognised financial instruments are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities are added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition
of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

c) Classification and Subsequent measurement of financial assets

Based on the business model, the contractual characteristics of the financial assets, the Company classifies and
measures financial assets in the following categories:

(i) Amortised cost

(ii) Fair value through other comprehensive income (''FVOCI'')

(iii) Fair value through profit or loss (''FVTPL'')

(i) Amortised cost -

The Company’s business model is not assessed on an instrument-by-instrument basis, but at a higher level of
aggregated portfolios being the level at which they are managed. The financial asset is held with the objective to
hold financial asset in order to collect contractual cash flows as per the contractual terms that give rise on specified
dates to cash flows that are solely payment of principal and interest (SPPI) on the principal amount outstanding.
Accordingly, the Company measures Cash and Bank balances, Loans, investment in subsidiaries, trade receivables
at amortised cost.

(ii) Fair value through other comprehensive income

The Company measures all equity investments at fair value through profit or loss, unless the Company’s
management has elected to classify irrevocably some of its equity instruments at FVOCI, when such instruments
meet the definition of Equity under Ind AS 32 Financial Instruments and are not held for trading.

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company
changes its business model for managing financial assets.

Movements in the carrying amount of such financial assets are recognised in Other Comprehensive Income (‘OCI’),
except interest/dividend income which is recognised in profit and loss. Amounts recorded in OCI are subsequently
transferred to the statement of profit and loss in case of debt instruments however, in case of equity instruments it
will be directly transferred to reserves. Equity instruments at FVOCI are not subject to an impairment assessment.

(iii) Financial assets at fair value through profit and loss

Financial assets which do not meet the criteria for categorisation as at amortised cost or as FVOCI or either
designated, are measured at FVTPL. Subsequent changes in fair value are recognised in profit or loss. The
Company records investments in equity instruments and mutual funds at FVTPL.

d) Financial liabilities and equity instruments:

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

Classification as debt or equity-

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

(i) Equity instruments -

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all
of its liabilities. Equity instruments issued by Company are recognised at the proceeds received. Transaction costs
of an equity transaction are recognised as a deduction from equity.

(ii) Financial liabilities -

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at
FVTPL if it is classified as held-for trading or it is a derivative or it is designated as such on initial recognition.
Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest
expense and foreign exchange gains and losses are recognised in Statement of profit and loss. Any gain or loss on
derecognition is also recognised in Statement of profit and loss.

e) Reclassification

Financial assets are not reclassified subsequent to their initial recognition, apart from the exceptional circumstances
in which the Company acquires, disposes of, or terminates a business line or in the period the Company changes
its business model for managing financial assets. Financial liabilities are not reclassified.

f) Derecognition

(i) Financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially
all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither
transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the
financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but
retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets
are not derecognised.

(ii) Financial liabilities

A financial liability is derecognised when the obligation in respect of the liability is discharged, cancelled
or expires. The difference between the carrying value of the financial liability and the consideration paid is
recognised in Statement of profit and loss.

g) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and
only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle
them on a net basis or to realise the asset and settle the liability simultaneously.

h) Impairment of financial assets

(i) Trade Receivables

• The Company applies the Ind AS 109 simplified approach for measuring expected credit losses which
uses a lifetime expected loss allowance (ECL) for all trade receivables.

• The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right
from its initial recognition.

• To measure the expected credit losses, trade receivables have been grouped based on shared credit
risk characteristics and the days past due. The expected loss rates are based on average of historical
loss rate adjusted to reflect current and available forward-looking information affecting the ability of
the customers to settle the receivables. The Company has also computed expected credit loss due to
significant delay in collection.

(ii) Other financial assets

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

The Company recognises lifetime ECL for trade and other receivables and lease receivables. The expected
credit losses on these financial assets are estimated using a provision matrix based on the Company’s historical
credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions
and an assessment of both the current as well as the forecast direction of conditions at the reporting date,
including time value of money where appropriate. Lifetime ECL represents the expected credit losses that
may result from all possible default events over the expected life of a financial assets. (refer Schedule on
Receivables Note No 5)

For all other financial assets, the Company recognizes lifetime expected credit losses (ECL) based on the months
past due when there has been a significant increase in credit risk since initial recognition and when the financial asset
is credit impaired. Financial assets where no significant increase in credit risk has been observed are considered
to be in ‘stage 1’ and for which no ECL is recognized. Financial assets where there has been significant increase in
credit risk are considered to be in ‘stage 2’ and those which are in default or for which there is an objective evidence
of impairment are considered to be in ‘stage 3’. Lifetime ECL is recognized for stage 2 and stage 3 financial assets.

In the event of a significant increase in credit risk, allowance (or provision) is required for ECL towards all possible
default events over the expected life of the financial instrument (‘lifetime ECL’).

Financial assets (and the related impairment loss allowances) are written off either partially or in their entirety,
when there is no realistic prospect of recovery and the company has stopped pursuing the recovery. If the amount
to be written off is greater than the accumulated loss allowance, the difference is first treated as an addition to
the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are credited to
impairment on financial instruments in statement of profit and loss.

Without significant increase in credit risk since initial recognition (stage 1)

No ECL allowance is recognized for stage 1 financial asset as based on company’s assessment there is no
significant increase in credit risk. The Company has ascertained default possibilities on past behavioral trends and
other performance indicators.

Significant increase in credit risk (stage 2)

An assessment of whether credit risk has increased significantly since initial recognition is performed at each
reporting period by considering the change in the risk of default of the loan exposure. However, unless identified
at an earlier stage 90 days past due is considered as an indication of financial assets to have suffered a significant
increase in credit risk.

Credit impaired (stage 3)

The Company recognises a financial asset to be credit impaired and in stage 3 by considering relevant objective
evidence, primarily whether:

Contractual payments of either principal or interest are past due for more than 365 days;

The loan is otherwise considered to be in default.

Measurement of ECL

The assessment of credit risk and estimation of ECL are unbiased and probability weighted. It incorporates all
information that is relevant including information about past events, current conditions and reasonable forecasts
of future events and economic conditions at the reporting date. The Company has calculated ECL using three
components: a probability of default (PD), a loss given default (LGD) and the exposure at default (EAD). ECL is
calculated by multiplying the PD, LGD and EAD and adjusted for time value of money as necessary.

* Determination of PD is covered above for each stages of ECL.

* EAD represents the expected balance at default, taking into account the repayment of principal and interest from
the Balance Sheet date to the date of default together with any expected drawdowns of committed facilities.

* LGD represents expected losses on the EAD given the event of default, taking into account, among other attributes,
the mitigating effect of collateral value, if any,at the time it is expected to be realised.

2.10 IMPAIRMENT OF ASSETS OTHER THAN FINANCIAL ASSETS

a) The Company reviews the carrying amounts of its tangible and intangible assets at the end of each reporting
period, to determine whether there is any indication that those assets have impaired. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is determined for an individual asset, unless the asset does not generate cash flows that are
largely independent of those from other assets or group of assets.

b) Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of future
cash flows have not been adjusted.

c) If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount.

d) When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit)
is increased to the revised estimate of its recoverable amount such that the increased carrying amount does not
exceed the carrying amount that would have been determined if no impairment loss had been recognised for the
asset (or cash-generating unit) in prior years. The reversal of an impairment loss is recognised in Statement of
profit and loss.

2.11 CASH & CASH EQUIVALENTS

Cash and cash equivalents in the balance sheet comprise cash on hand, cheques and drafts on hand, balance with
banks in current accounts and short-term deposits with an original maturity of three months or less, which are subject to
an insignificant risk of change in value. For the purpose of the statement of cash flows, cash and cash equivalents, and
short-term deposits are considered integral part of the Company’s cash management. Outstanding bank overdrafts are
not considered as an integral part of the Company’s cash management.

2.12 REVENUE RECOGNITION

Revenue (other than for those items to which Ind AS 109, Financial Instruments, are applicable) is measured at the
transaction price, which includes but is not limited to estimating variable consideration, adjusting the consideration for
the effects of the time value of money, and measuring non-cash consideration as applicable. Ind AS 115, Revenue from
Contracts with Customers, outlines a single comprehensive model of accounting for revenue arising from contracts with
customers. Revenue from contracts with customers is recognised when control of the goods or services are transferred
to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange
for those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements,
except for the agency services below, because it typically controls the goods or services before transferring them to the
customer.

The Company recognises revenue from contracts with customers based on a five step model as set out in Ind
AS 115:

Step 1: Identify contract(s) with a customer: A contract is defined as an agreement between two or more parties that
creates enforceable rights and obligations and sets out the criteria for every contract that must be met.

Step 2: Identify performance obligations in the contract: A performance obligation is a promise in a contract with a
customer to transfer a good or service to the customer.

Step 3: Determine the transaction price: The transaction price is the amount of consideration to which the Company
expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected
on behalf of third parties.

Step 4: Allocate the transaction price to the performance obligations in the contract: For a contract that has more
than one performance obligation, the Company allocates the transaction price to each performance obligation in an
amount that depicts the amount of consideration to which the Company expects to be entitled in exchange for satisfying
each performance obligation.

Step 5: Recognise revenue when (or as) the Company satisfies a performance obligation.

Specific policies for the Company''s different sources of revenue are explained below:

a) Fee and commission income

Fee based income are recognised when they become measurable and when it is probable to expect their ultimate
collection. Commission and brokerage income earned for the services rendered are recognised as and when they
are due.

b) Interest Income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying
amount on initial recognition.

c) Dividend Income

Dividends are recognised in the statement of profit and loss only when the right to receive payment is established,
it is probable that the economic benefits associated with the dividend will flow to the Company and the amount of
the dividend can be measured reliably.

d) Depository Service Income

Revenue from depository services on account of annual maintenance charges is accounted for over the period of
the performance obligation. Revenue from depository services on account of transaction charges is recognised at
the point in time when the performance obligation is satisfied.

Contract Asset & Contract Liability

Revenue on time-and-material contracts are recognized as the related services are performed and revenue from the end
of the last invoicing to the reporting date is recognized as unbilled revenue.

Revenues in excess of invoicing are classified as contract assets (which we refer as unbilled revenue) while invoicing in
excess of revenues are classified as contract liabilities (which we refer to as unearned revenues).

2.13 EMPLOYEE BENEFITS

a) Short-term employee benefits

Short-term employee benefits are recognised as an expense as the related service is provided. A liability is
recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay
this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

b) Contribution to provident fund

Retirement benefit in the form of provident fund, is a defined contribution scheme. The Company has no obligation,
other than the contribution payable to the provident fund. The Company recognises contribution payable to the
provident fund scheme as an expense, when an employee renders the related service.

c) Gratuity

The Company’s liability towards gratuity scheme is determined by independent actuaries, using the projected unit
credit method. The present value of the defined benefit obligation is determined by discounting the estimated future
cash outflows by reference to market yields at the end of the reporting period on government bonds that have
terms approximating to the terms of the related obligation. Past services are recognised at the earlier of the plan
amendment / curtailment and recognition of related restructuring costs/ termination benefits.

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

Remeasurement gains/losses

Remeasurement of defined benefit plans, comprising of actuarial gains / losses, return on plan assets excluding
interest income are recognised immediately in the balance sheet with corresponding debit or credit to Other
Comprehensive Income (OCI). Remeasurements are not reclassified to Statement of profit and loss in the
subsequent period.

Remeasurement gains or losses on long-term compensated absences that are classified as other long-term
benefits are recognised in Statement of profit and loss.

d) Leave encashment / compensated absences

The employees of the Company are entitled to compensated absences as per the policy of the Company. The
Company recognises the charge to the Statement of profit and loss and corresponding liability on account of such
non-vesting accumulated leave entitlement based on a valuation by an independent actuary. The cost of providing
compensated absences are determined using the projected unit credit method. Remeasurements as a result of
experience adjustments and changes in actuarial assumptions are recognised in statement of Profit and Loss

e) Employee shared based payments

Equity-settled share-based payments to employees are recognised as an expense at the fair value of stock options
at the grant date. The fair value determined at the grant date of the Equity-settled share-based payments is
expensed on a straightline basis over the vesting period, based on the Company’s estimate of equity instruments
that will eventually vest, with a corresponding increase in equity.

2.14 FINANCE COSTS

Finance costs include interest expense computed by applying the effective interest rate on respective financial instruments
measured at Amortised cost.

Financial instruments include bank term loans and overdraft facility. Borrowing costs directly attributable to the acquisition
or construction of a qualifying asset are capitalised as part of the cost of that asset, as per Ind AS 23. Other borrowing
costs are recognised as an expense in the period in which they are incurred.

Finance costs are charged to the Statement of profit and loss.

2.15 INCOME TAX

Income tax expense comprises of current tax and deferred tax. It is recognised in Statement of profit and loss except to
the extent that it relates to an item recognised directly in equity or in other comprehensive income.

a) Current tax

Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance
with the Income Tax Act, 1961. Current tax comprises the expected tax payable or receivable on the taxable income
or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. It is measured
using tax rates and tax laws enacted or substantively enacted at the reporting date.

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.

Current tax assets and current tax liabilities are offset only if the Company has a legally enforceable right to set off
the recognised amounts, and it intends to realise the asset and settle the liability on a net basis or simultaneously.

b) Deferred tax

(i) Deferred tax is provided using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements.

(ii) Deferred tax assets arising mainly on account of carry forward losses and unabsorbed depreciation under tax
laws are recognised only if there is reasonable certainty of its realisation.

(iii) Deferred tax assets on account of other temporary differences are recognised only to the extent that there
is reasonable certainty that sufficient future taxable income will be available against which such deferred tax
assets can be realised.

(iv) Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or
substantively enacted at the Balance Sheet date.Changes in deferred tax assets / liabilities on account of
changes in enacted tax rates are given effect to in the standalone statement of profit and loss in the period of
the change. The carrying amount of deferred tax assets are reviewed at each Balance Sheet date.

(v) Deferred tax assets and deferred tax liabilities are off set when there is a legally enforceable right to setoff
assets against liabilities representing current tax and where the deferred tax assets and deferred tax liabilities
relate to taxes on income levied by the same governing taxation laws.

2.16 EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the
Company’s earnings per share is the net profit for the period after deducting preference dividends and any attributable
tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, sub-division of shares etc. that have changed the number of
equity shares outstanding, without a corresponding change in resources. Diluted earnings per equity share have been
computed by dividing the net profit attributable to the equity share holders after giving impact of dilutive potential equity
shares for the year by the weighted average number of equity shares and dilutive potential equity shares outstanding
during the year, except where the results are anti-dilutive.

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Mar 31, 2024

1 CORPORATE INFORMATION

VERTEX, is a premier brokerage house in India on the fast growth track. In the last one-decade, we have emerged as a powerhouse in the financial services industry. We started functioning in the stock market in 1993.

The Company’s registered office is at 2nd Floor ,Thottathil Towers , Market Road Cochin - 682014.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Statement of compliance and basis for preparation and presentation of financial statements

These standalone or separate financial statements of the Company have been prepared in accordance with the Indian Accounting Standards as per the Companies (Indian Accounting Standards) Rules 2015 as amended and notified under Section 133 of the Companies Act, 2013 (“the Act”), in conformity with the accounting principles generally accepted in India and other relevant provisions of the Act.

These standalone or separate financial statements were approved by the Company’s Board of Directors and authorised for issue on 30 April 2024

2.2 Functional and presentation currency

These financial statements are presented in Indian Rupees (‘INR’ or ‘Rs.’) which is also the Company’s functional currency.

2.3 Basis of measurement

The financial statements have been prepared on the historical cost basis except for certain financial instruments which are measured at fair values:

“i) fair value through other comprehensive income

(FVOCI) instruments,”

ii) derivative financial instruments,

iii) other financial assets held for trading,

iv) financial assets and liabilities designated at fair value through profit or loss (FVTPL)

2.4 Measurement of fair values

A number of Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Company has established policies and procedures with respect to the measurement of fair values. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

2.5 Use of estimates and judgements and Estimation uncertainity

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the Company’s accounting policies and the reported amounts of assets, liabilities, income, expenses and the disclosures of contingent assets and liabilities. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively and, if material, their effects are disclosed in the notes to the financial statements.

2.6 Estimation of impairment allowance on financial assets

Estimates and associated assumptions, especially for determining the impairment allowance for Company’s financial assets, are based on historical experience and other emerging factors on account of the pandemic which may also have

an effect on the expected credit loss. The Company believes that the factors considered are reasonable under the current circumstances. The Company has used early indicators of delayed repayment metrics observed along with an estimation of potential stress on probability of default and exposure at default due to COVID-19 situation in developing the estimates and assumptions to assess the expected credit losses on trade receivables. Given the dynamic nature of the pandemic situation, these estimates are subject to uncertainty and may be affected by the severity and duration of the pandemic.

2.7 Property, Plant and Equipments (PPE)

PPE are stated at cost of acquisition (including incidental expenses), less accumulated depreciation and accumulated impairment loss, if any.

Assets held for sale or disposals are stated at the lower of their net book value and net realisable value.

Advances paid towards the acquisition of PPE outstanding at each balance sheet date are disclosed separately under other non-financial assets. Capital work in progress comprises the cost of PPE that are not ready for its intended use at the reporting date.

Subsequent expenditure related to the asset are added to its carrying amount or recognised as a separate asset only if it increases the future benefits of the existing asset, beyond its previously assessed standards of performance and cost can be measured reliably. Other repairs and maintenance costs are expensed off as and when incurred.

Depreciation on PPE is provided on straight-line basis in accordance with the useful lives specified in Schedule II to the Companies Act, 2013 on a pro-rata basis.

The estimated useful lives used for computation of depreciation are as follows:

Assets	Useful Life
Computers and Data processing units	3 to 6 years
Furniture and fixtures	10 years
Plant & Machinery	15 years
Office equipments	5 years
Vehicles	8 to 10 years

PPE is derecognised on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (caculated as the differnce between the net disposal proceeds and the net carrying amount of the asset) is recognised in other income / netted off from any loss on disposal in the Statement of profit and loss in the year the asset is derecognised.

2.8 Intangible assets

Intangible assets are stated at cost less accumulated amortization and accumulated impairment loss, if any.

Intangible assets comprises of Membership rights of Stock Exchanges, Computer software and Software licences which is amortized over the estimated useful life. The amortization period of Stock exchange license and membership right is 10 years and computer software is 3 years which is based on management’s estimates of useful life. Amortisation is calcualted using the straight line method to write down the cost of intangible assets over their estimated useful lives.

Subsequent expenditure related to the asset is added to its carrying amount or recognised as a separate asset only if it increases the future benefits of the existing asset, beyond its previously assessed standards of performance and cost can be measured reliably.

Gains or losses from derecognition of intangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognised in the Statement of Profit or Loss when the asset is derecognised.

2.9 Investments in subsidiaries and associates

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.

2.10 Foreign exchange transactions and translations

The Company’s financial statements are presented in Indian Rupee, which is also the Company’s functional currency.

a) Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

b) Conversion

Foreign currency monetary items are re-translated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.

c) Exchange difference

All exchange differences are accounted in the Statement of Profit and Loss.

2.11 Financial instruments

a) Recognition and initial measurement

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognised immediately in Statement of profit and loss.

b) Classification and Subsequent measurement of financial assets

On initial recognition, a financial asset is classified as measured at

- Amortised cost;

- FVOCI - debt instruments;

- FVOCI - equity instruments;

-FVTPL

Amortised cost -

The Company’s business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios being the level at which they are managed. The financial asset is held with the objective to hold financial asset in order to collect contractual cash flows as per the contractual terms that give rise on specified dates to cash flows that are solely payment of principal and interest (SPPI) on the principal amount outstanding. Accordingly, the Company measures Cash and Bank balances, Loans, investment in subsidiaries, trade receivables at amortised cost.

FVOCI - equity instruments -

The Company measures all equity investments at fair value through profit or loss, unless the Company’s management has elected to classify irrevocably some of its equity instruments at FVOCI, when such instruments meet the definition of Equity under Ind AS 32 Financial Instruments and are not held for trading.

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

All financial assets not classified as measured at amortised cost or FVOCI are measured at FVTPL. This includes all derivative financial assets.

Financial assets at amortised cost are subsequently measured at amortised cost using effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in Statement of profit and loss. Any gain and loss on derecognition is recognised in Statement of profit and loss.

Debt investment at FVOCI are subsequently measured at fair value. Interest income under effective interest method, foreign exchange gains and losses and impairment are recognised in Statement of profit and loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to Statement of profit and loss.

For equity investments, the Company makes an election on an instrument-by-instrument basis to designate equity investments as measured at FVOCI. These elected investments are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the reserves. The cumulative gain or loss is not reclassified to Statement of profit and loss on disposal of the investments. These investments in equity are not held for trading. Instead, they are held for strategic purpose. Dividend income received on such equity investments are recognised in Statement of profit and loss.

Equity investments that are not designated as measured at FVOCI are designated as measured at FVTPL and subsequent changes in fair value are recognised in Statement of profit and loss.

Financial assets at FVTPL are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in Statement of profit and loss.

c) Financial liabilities and equity instruments:

Classification as debt or equity -

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

Equity instruments -

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by Company are recognised at the proceeds received. Transaction costs of an equity transaction are recognised as a deduction from equity.

Financial liabilities -

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for trading or it is a derivative or it is designated as such on initial recognition. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in Statement of profit and loss. Any gain or loss on derecognition is also recognised in Statement of profit and loss.

d) Derecognition Financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

A financial liability is derecognised when the obligation in respect of the liability is discharged, cancelled or expires. The difference between the carrying value of the financial liability and the consideration paid is recognised in Statement of profit and loss.

e) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

f) Impairment of financial instruments

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

The Company recognises lifetime ECL for trade and other receivables and lease receivables. The expected credit losses on these financial assets are estimated using a provision matrix based on the Company’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that may result from all possible default events over the expected life of a financial assets.( refer Schedule on Receivables Note No 6 )

For all other financial assets, the Company recognizes lifetime expected credit losses (ECL) based on the months past due when there has been a significant increase in credit risk since initial recognition and when the financial asset is credit impaired. Financial assets where no significant increase in credit risk has been observed are considered to be in ‘stage 1’ and for which no ECL is recognized. Financial assets where there has been significant increase in credit risk are considered to be in ‘stage 2’ and those which are in default or for which there is an objective evidence of impairment are considered to be in ‘stage 3’. Lifetime ECL is recognized for stage 2 and stage 3 financial assets.

At initial recognition, allowance (or provision) is required for ECL towards default events that are possible in the next 12 months, or less, where the remaining life is less than 12 months.

In the event of a significant increase in credit risk, allowance (or provision) is required for ECL towards all possible default events over the expected life of the financial instrument (‘lifetime ECL’).

Financial assets (and the related impairment loss allowances) are written off either partially or in their entirety, when there is no realistic prospect of recovery and the company has stopped pursuing the recovery. If the amount to be written off is greater than the accumulated loss allowance, the difference is first treated as an addition to the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are credited to impairment on financial instruments in statement of profit and loss.

Without significant increase in credit risk since initial recognition (stage 1)

No ECL allowance is recognized for stage 1 financial asset as based on company’s assessment there is no significant increase in credit risk. The Company has ascertained default possibilities on past behavioral trendsand other performance indicators.

Significant increase in credit risk (stage 2)

An assessment of whether credit risk has increased significantly since initial recognition is performed at each reporting period by considering the change in the risk of default of the loan exposure. However, unless identified at an earlier stage 90 days past due is considered as an indication of financial assets to have suffered a significant increase in credit risk.

Credit impaired (stage 3)

The Company recognises a financial asset to be credit impaired and in stage 3 by considering relevant objective evidence, primarily whether:

Contractual payments of either principal or interest are past due for more than 365 days;

The loan is otherwise considered to be in default.

Measurement of ECL

The assessment of credit risk and estimation of ECL are unbiased and probability weighted. It incorporates all information that is relevant including information about past events, current conditions and reasonable forecasts of future events and economic conditions at the reporting date. The Company has calculated ECL using three components: a probability of default (PD), a loss given default (LGD) and the exposure at default (EAD). ECL is calculated by multiplying the PD, LGD and EAD and adjusted for time value of money as necessary.

* Determination of PD is covered above for each stages of ECL.

* EAD represents the expected balance at default, taking into account the repayment of principal and interest from the Balance Sheet date to the date of default together with any expected drawdowns of committed facilities.

* LGD represents expected losses on the EAD given the event of default, taking into account, among other attributes, the mitigating effect of collateral value, if any,at the time it is expected to be realised.

2.12 Impairment of assets other than financial assets

The Company reviews the carrying amounts of its tangible and intangible assets at the end of each reporting period, to determine whether there is any indication that those assets have impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Recoverable amount is determined for an individual asset, unless the asset does not generate cash flows that are largely independent of those from other assets or group of assets.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount such that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised for the asset (or cash-generating unit) in prior years. The reversal of an impairment loss is recognised in Statement of profit and loss.

2.13 Provisions

Provisions are recognised when there is a present obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

2.14 Leases

With effect from 1 April 2019, the Company has applied Ind AS 116 ‘Leases’ for all long term and material lease contracts covered by the Ind AS. The Company has adopted modified retrospective approach as stated in Ind AS 116 for all applicable leases on the date of adoption.

Measurement of Lease Liability

At the time of initial recognition, the Company measures lease liability as present value of all lease payments discounted using the Company’s incremental cost of borrowing and directly attributable costs. Subsequently, the lease liability is -

1) increased by interest on lease liability;

2) reduced by lease payments made; and

3) remeasured to reflect any reassessment or lease modifications specified in Ind AS 116 ‘Leases’, or to reflect revised fixed lease payments.

Measurement of Right-of-use assets

At the time of initial recognition, the Company measures ‘Right-of-use assets’ as present value of all lease payments discounted using the Company’s incremental cost of borrowing w.r.t said lease contract. Subsequently, ‘Right-of-use assets’ is measured using cost model i.e. at cost less any accumulated depreciation and any accumulated impairment losses adjusted for any remeasurement of the lease liability specified in Ind AS 116 ‘Leases’.

Depreciation on ‘Right-of-use assets’ is provided on straight line basis over the lease period.

The exception permitted in Ind AS 116 for low value assets and short term leases has been adopted by Company.

2.15 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash on hand, cheques and drafts on hand, balance with banks in current accounts and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of change in value.

2.16 Revenue recognition :

a) Fee and commission income

Fee based income are recognised when they become measurable and when it is probable to expect their ultimate collection. Commission and brokerage income earned for the services rendered are recognised as and when they are due.

b) Recognition of interest income Interest Income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

c) Dividend Income

Dividends are recognised in the statement of profit and loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

The Company is currently assessing the impact of application of this amendment on the Company’s financial statements.

“Revenue on time-and-material contracts are recognized as the related services are performed and revenue from the end of the last invoicing to the reporting date is recognized as unbilled revenue.

Revenues in excess of invoicing are classified as contract assets (which we refer as unbilled revenue) while invoicing in excess of revenues are classified as contract liabilities (which we refer to as unearned revenues). “

2.17 Employee benefits

a) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

b) Contribution to provident fund and ESIC

Company’s contribution paid/payable during the year to provident fund and ESIC is recognised in the Statement of profit and loss.

c) Gratuity

The Company’s liability towards gratuity scheme is determined by independent actuaries, using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. Past services are recognised at the earlier of the plan amendment / curtailment and recognition of related restructuring costs/ termination benefits.

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

Remeasurement gains/losses

Remeasurement of defined benefit plans, comprising of actuarial gains / losses, return on plan assets excluding interest income are recognised immediately in the balance sheet with corresponding debit or credit to Other Comprehensive Income (OCI). Remeasurements are not reclassified to Statement of profit and loss in the subsequent period.

Remeasurement gains or losses on long-term compensated absences that are classified as other long-term benefits are recognised in Statement of profit and loss.

d) Leave encashment / compensated absences / sick leave

The Company provides for the encashment / availment of leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits for future encashment / availment. The liability is provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial valuation.

e) Employee shared based payments

Equity-settled share-based payments to employees are recognised as an expense at the fair value of stock options at the grant date. The fair value determined at the grant date of the Equity-settled share-based payments is expensed on a straightline basis over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity.

2.18 Finance costs

Finance costs include interest expense computed by applying the effective interest rate on respective financial instruments measured at Amortised cost. Financial instruments include bank term loans and overdraft facility. Finance costs are charged to the Statement of profit and loss.

2.19 Taxation - Current and deferred tax

Income tax expense comprises of current tax and deferred tax. It is recognised in Statement of profit and loss except to the extent that it relates to an item recognised directly in equity or in other comprehensive income.

a) Current tax

Current tax comprises amount of tax payable in respect of the taxable income or loss for the year determined in accordance with Income Tax Act, 1961 and any adjustment to the tax payable or receivable in respect of previous years. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

b) Deferred tax

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 liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequence that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets are generally recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary difference could be utilized. Deferred tax liabilities are generally recognised for all taxable temporary differences. However, deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. 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 all or part of the asset to be recovered.

2.20 Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company’s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, sub-division of shares etc. that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders is divided by the weighted average number of equity shares outstanding during the period, considered for deriving basic earnings per share and weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

2.21 Contingent Liabilities and assets

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it can not be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. The company does not have any contingent assets in the financial statements.

2.22 Cash Flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

2.23 Borrowing Cost

Borrowing cost includes interest, amoritsation 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 capitalised, if any. All other borrowing costs are expensed in the period in which they occur.that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised, if any. All other borrowing costs are expensed in the period in which they occur.

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Mar 31, 2015

A) Basis of Presentation of Financial Statements:

These Financial Statements are prepared in accordance with Indian Generally Accepted Accounting Principles under the historical cost convention, on an accrual basis of accounting. Generally Accepted Accounting Principles comprises of mandatory Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts Rules), 2014 and provisions of the Act to the extent notified.

b) Use of estimates

The preparation of financial statements in conformity with the Indian Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Fixed Assets and Depreciation:

i) Fixed assets are stated at cost less accumulated depreciation and adjusted for impairment, if any.

ii) The Company provides depreciation on straight-line method (SLM) on useful life of assets as prescribed under Part C of Schedule II of the Companies Act, 2013.

iii) Depreciation on additions and deletions to fixed assets is provided on pro-rata basis from the date of addition or till deletion respectively.

d) Intangible Assets:

Intangible assets comprise of Membership rights of Stock Exchanges, Computer software and Software licences. The Stock Exchange rights and Software Licenses are amortized over a period of 10 years. Computer software is amortized over a period of 3 years on Straight Line basis.

e) Inventories - Shares:

The shares are valued at lower of cost or net realizable value.

f) Income:

Brokerage income is recognized on the date of the transaction, upon confirmation of the trade by client. Interest on Suit filed debtors are accounted on receipt basis since there is significant uncertainty in collection. Dividend income is recognised when right to receive the same is established.

g) Employee Benefits:

Long Term Employee Benefits

i. Defined Contribution plan

The company has defined contribution plans for employees comprising of Provident Fund and Employees State Insurance. The contributions paid/payable to these plans are charged to Statement of Profit and Loss for the period to which they are related.

ii. Defined Benefit Plan

The company makes contributions to Employees' Group Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits as determined on actuarial valuation, conducted annually using the Projected Unit Credit Method, as adjusted for unrecognized past service cost if any and as reduced by fair value of plan assets, is recognized in the accounts. Actuarial gains and losses are recognized in full in the Statement of Profit and Loss for the period in which they occur.

iii. Other Long term Employee Benefits

The company has a scheme of Leave Encashment for eligible employees. Company's liability as at the Balance Sheet date for such benefits is provided for on the basis of actuarial valuation under Projected Unit Credit Method, done by an independent actuary. Actuarial gains and losses comprise experience adjustments and effects of changes in actuarial assumptions and are recognized in the Statement of Profit and Loss as income or expense.

iv. Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

h) Income tax

Income tax is accounted in accordance with Accounting Standard on Accounting for Taxes on Income (AS 22), which includes current taxes and deferred taxes. Deferred tax assets/liabilities representing timing differences between accounting income and taxable income are recognised to the extent considered capable of being reversed in subsequent years. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available, except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is a virtual certainty that sufficient future taxable income will be available to realise the same.

i) Investments

Long term investments are stated at cost less provision for permanent diminution in their values, if any. Current investments are stated at lower of cost and net realisable value.

j) Provisions and Contingent liabilities

Provisions are recognised when the company has a present obligation as a result of past events, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of obligation. Provisions are not discounted to their 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 current management estimates.

k) Earnings Per Share

Basic and diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

l) Leases

Disclosures as required by Accounting Standard 19, "Leases" issued by the Institute of Chartered Accountants of India, are given below:

Leases are accounted for and disclosure made as per the requirements of Accounting Standard 19 - Leases, issued by the Institute of Chartered Accountants of India.

---

Mar 31, 2014

A) Basis of Presentation of Financial Statements:

The Financial Statements are prepared under historical cost convention, on an accrual basis of accounting in conformity with the accounting principles generally accepted in India and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956

b) Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Fixed Assets and Depreciation:

i) Fixed assets are stated at cost less accumulated depreciation and adjusted for impairment if any.

ii) The company provides Depreciation on straight line method (SLM) at the rate specified in Schedule XIV of the Companies Act, 1956.

iii) Depreciation on additions to fixed assets is provided on pro-rata basis from the date of addition.

d) Intangible Assets:

Intangible assets comprise of Membership rights of Stock Exchanges, Computer software and Software licenses. The Stock Exchange rights and Software Licenses are amortized over a period of 10 years and the Computer software is amortized over a period of 5 years on Straight Line basis.

e) Inventories - Shares:

The shares are valued at lower of cost or net realizable value.

f) Income:

Brokerage income is recognized on the date of the transaction, upon confirmation of the trade by client. Interest on Suit filed debtors are accounted on receipt basis since there is significant uncertainty in collection. Dividend income is recognised when right to receive the same is established. Service income is recognised as per the terms of the contract/ agreement entered into with the customers when the related services are performed.

g) Employee Benefits:

Long Term Employee Benefits

i. Defined Contribution plan

The company has defined contribution plans for employees comprising of Provident Fund and Employees State Insurance. The contributions paid/payable to these plans are charged to Statement of Profit & Loss for the period to which they are related.

ii. Defined Benefit Plan

The company makes contributions to "Employees'' Group Gratuity-cum-Life Assurance Scheme" of Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits as determined on actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past service cost if any and as reduced by fair value of plan assets, is recognized in the accounts. Actuarial gains and losses are recognized in full in the Statement of Profit & Loss for the period in which they occur.

iii. Other Long term Employee Benefits

The company has a scheme of Leave Encashment for eligible employees. Company''s liability as at the balance sheet date for such benefits is provided for on the basis of actuarial valuation under Projected Unit Cost Method, done

by an independent actuary. Actuarial gains and losses comprise experience adjustments and effects of changes in actuarial assumptions and are recognized in the Statement of Profit & Loss as income or expense.

iv. Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

h) Income tax

Income tax is accounted in accordance with Accounting Standard on Accounting for Taxes on Income (AS 22), which includes current taxes and deferred taxes. Deferred tax assets/liabilities representing timing differences between accounting income and taxable income are recognised to the extent considered capable of being reversed in subsequent years. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available, except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is a virtual certainty that sufficient future taxable income will be available to realise the same.

i) Investments

Long term investments are stated at cost less provision for permanent diminution in their values, if any. Current investments are stated at lower of cost and net realisable value.

j) Provisions and Contingent liabilities

Provisions are recognised when the company has a present obligation as a result of past events, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of obligation. Provisions are not discounted to their 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 current management estimates.

k) Earnings Per Share

Basic and diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

l) Leases

Disclosures as required by Accounting Standard 19, "Leases" issued by the Institute of Chartered Accountants of India, are given below:

(i) The Company has taken various offices under leave and license agreements. These are generally non-cancelable and range between 11 months and 5 years and are renewable by mutual consent on mutually agreeable terms.

(ii) Lease payments are recognized in the Statement of Profit & Loss under ''Rent''.

---

Mar 31, 2013

A) Basis of Presentation of Financial Statements:

The Financial Statements are prepared under historical cost convention, on an accrual basis of accounting in conformity with the accounting principles generally accepted in India and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956

b) Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Fixed Assets and Depreciation:

i) Fixed assets are stated at cost less accumulated depreciation and adjusted for impairment if any.

ii) The company provides Depreciation on straight line method (SLM) at the rate specified in Schedule XIV of the Companies Act, 1956.

iii) Depreciation on additions to fixed assets is provided on pro-rata basis from the date of addition.

d) Intangible Assets:

Intangible assets comprise of Membership rights of Stock Exchanges, Computer software and Software licenses. The Stock Exchange rights and Software Licenses are amortized over a period of 10 years and the Computer software is amortized over a period of 5 years on Straight Line basis.

e) Inventories - Shares:

The shares are valued at lower of cost or net realizable value.

f) Income:

Brokerage income is recognized on the date of the transaction, upon confirmation of the trade by client. Interest on Suit filed debtors are accounted on receipt basis since there is significant uncertainty in collection. Dividend income is recognised when right to receive the same is established. Service income is recognised as per the terms of the contract/ agreement entered into with the customers when the related services are performed.

g) Employee Benefits:

Long Term Employee Benefits

i. Defined Contribution plan

The company has defined contribution plans for employees comprising of Provident Fund and Employees State Insurance. The contributions paid/payable to these plans are charged to Statement of Profit & Loss for the period to which they are related.

ii. Defined Benefit Plan

The company makes contributions to Employees'' Group Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits as determined on actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past service cost if any and as reduced by fair value of plan assets, is recognized in the accounts. Actuarial gains and losses are recognized in full in the Statement of Profit & Loss for the period in which they occur.

iii. Other Long term Employee Benefits

The company has a scheme of Leave Encashment for eligible employees. Company''s liability as at the balance sheet date for such benefits is provided for on the basis of actuarial valuation under Projected Unit Cost Method, done by an independent actuary. Actuarial gains and losses comprise experience adjustments and effects of changes in actuarial assumptions and are recognized in the Statement of Profit & Loss as income or expense.

iv. Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

h) Income Tax

Income tax is accounted in accordance with Accounting Standard on Accounting for Taxes on Income (AS 22), which includes current taxes and deferred taxes. Deferred tax assets/liabilities representing timing differences between accounting income and taxable income are recognised to the extent considered capable of being reversed in subsequent years. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available, except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is a virtual certainty that sufficient future taxable income will be available to realise the same.

i) Investments

Long term investments are stated at cost less provision for permanent diminution in their values, if any. Current investments are stated at lower of cost and net realisable value.

j) Provisions and Contingent liabilities

Provisions are recognised when the company has a present obligation as a result of past events, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of obligation. Provisions are not discounted to their 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 current management estimates

k) Earnings Per Share

Basic and diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

i) Leases

Disclosures as required by Accounting Standard 19, "Leases" issued by the Institute of Chartered Accountants of India, are given below:

(i) The Company has taken various offices under leave and license agreements. These are generally non- cancelable and range between 11 months and 5 years and are renewable by mutual consent on mutually agreeable terms.

(ii) Lease payments are recognized in the Statement of Profit & Loss under "Rent".

---

Mar 31, 2012

A) Basis of Presentation of Financial Statements:

The Financial Statements are prepared under historical cost convention, on an accrual basis of accounting in conformity with the accounting principles generally accepted in India and comply with the Accounting Standards referred to in section 211 (3C) of the Companies Act, 1956.

b) Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Fixed Assets and Depreciation:

i) Fixed assets are stated at cost less accumulated depreciation and adjusted for impairment if any.

ii) The company provides Depreciation on straight line method (SLM) at the rate specified in schedule XIV of the Companies Act, 1956.

iii) Depreciation on additions to fixed assets is provided on pro-rata basis from the date of addition.

d) Intangible Assets:

Intangible assets comprise of Membership rights of Stock Exchanges, Computer software and Software licenses. The Stock Exchange rights and Software Licenses are amortized over a period of 10 years and the Computer software is amortized over a period of 5 years on Straight Line basis.

e) Inventories - Shares:

The shares are valued at lower of cost or net realizable value.

f) Income:

Brokerage income is recognized on the date of the transaction, upon confirmation of the trade by client. Interest on Suit filed debtors are accounted on receipt basis since there is significant uncertainty in collection. Dividend income is recognised when right to receive the same is established. Service income is recognised as per the terms of the contract/agreement entered into with the customers when the related services are performed.

g) Employee Benefits:

Long Term Employee Benefits

i. Defined Contribution plan -

The company has defined contribution plans for employees comprising of Provident Fund and Employees State Insurance. The contributions paid/payable to these plans are charged to Profit & Loss Account for the period to which they are related.

ii. Defined Benefit Plan

The company makes contributions to Employees' Group Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits as determined on actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past service cost if any and as reduced by fair value of plan assets, is recognized in the accounts. Actuarial gains and losses are recognized in full in the Profit & Loss Account for the period in which they occur.

iii. Other Long term Employee Benefits

The company has a scheme of Leave Encashment for eligible employees. Company's liability as at the balance sheet date for such benefits is provided for on the basis of actuarial valuation under Projected Unit Cost Method, done by an independent actuary. Actuarial gains and losses comprise experience adjustments and effects of changes in actuarial assumptions and are recognized in the profit & loss account as income or expense.

iv. Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

h) Income tax

Income tax is accounted in accordance with Accounting Standard on Accounting for Taxes on Income (AS 22), which includes current taxes and deferred taxes. Deferred tax assets/liabilities representing timing differences between accounting income and taxable income are recognised to the extent considered capable of being reversed in subsequent years. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available, except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is a virtual certainty that sufficient future taxable income will be available to realise the same.

i) Investments

Long term investments are stated at cost less provision for permanent diminution in their values, if any. Current investments are stated at lower of cost and net realisable value.

j) Provisions and Contingent liabilities

Provisions are recognised when the company has a present obligation as a result of past events, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of obligation. Provisions are not discounted to their 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 current management estimates.

k) Earnings Per Share

Basic and diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

1) Leases

Disclosures as required by Accounting Standard 19, "Leases" issued by the Institute of Chartered Accountants of India, are given below:

(i) The Company has taken various offices under leave and license agreements. These are generally non- cancelable and range between 11 months and 5 years and are renewable by mutual consent on mutually agreeable terms. -

(ii) Lease payments are recognized in the Profit & Loss account under "Rent".

---

Mar 31, 2011

A) Basis of Presentation of Financial Statements:

The Financial Statements are prepared under historical cost convention, on accrual basis of accounting in conformity with the accounting principles generally accepted in India and comply with the Accounting Standards referred to in section 211 (3C) of the Companies Act, 1956.

b) Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Fixed Assets and Depreciation:

i) Fixed assets are stated at cost less accumulated depreciation and adjusted for impairment if any.

ii) The Company provides depreciation on straight-line method (SLM) at the rate specified in Schedule XIV of the Companies Act, 1956.

iii) Depreciation on additions to fixed assets is provided on pro-rata basis from the date of addition.

d) Intangible Assets:

Intangible assets comprise of Membership rights of Stock Exchanges, Computer software and Software licences. The Stock Exchange rights and Software Licenses are amortized over a period of 10 years and the Computer software is amortized over a period of 5 years on Straight Line basis.

e) Inventories - Shares:

The shares are valued at lower of cost or net realizable value.

f) Income:

Brokerage income is recognized on the date of the transaction, upon confirmation of the trade by client. Interest on Suit filed debtors are accounted on receipt basis since there is significant uncertainty in collection. Dividend income is recognised when right to receive the same is established. Service income is recognised as per the terms of the contract/agreement entered into with the customers when the related services are performed.

g) Employee Benefits:

i. Long Term Employee Benefits

a. Defined Contribution plan

The company has defined contribution plans for employees comprising of Provident Fund and Employees State Insurance. The contributions paid/payable to these plans are charged to Profit & Loss Account for the period to which they are related.

b. Defined Benefit Plan

The company makes contributions to Employees Group Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits as determined on actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past service cost if any and as reduced by fair value of plan assets, is recognized in the accounts. Actuarial gains and losses are recognized in full in the Profit & Loss Account for the period in which they occur.

c. Other Long term Employee Benefits

The company has a scheme of Leave Encashment for eligible employees. Companys liability as at the balance sheet date for such benefits is provided for on the basis of actuarial valuation under Projected Unit Cost Method, done by an independent actuary. Actuarial gains and losses comprise experience adjustments and effects of changes in actuarial assumptions and are recognized in the profit & loss account as income or expense.

d. Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

h) Income tax

Income tax is accounted in accordance with Accounting Standard on Accounting for Taxes on Income (AS 22), which includes current taxes and deferred taxes. Deferred tax assets/liabilities representing timing differences between accounting income and taxable income are recognised to the extent considered capable of being reversed in subsequent years. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available, except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is a virtual certainty that sufficient future taxable income will be available to realise the same.

i) Investments

Long term investments are stated at cost less provision for permanent diminution in their values, if any. Current investments are stated at lower of cost and net realisable value.

j) Provisions and Contingent liabilities

Provisions are recognised when the company has a present obligation as a result of past events, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of obligation. Provisions are not discounted to their 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 current management estimates.

k) Earnings Per Share

Basic and diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

l) Leases

Disclosures as required by Accounting Standard 19, "Leases" issued by the Institute of Chartered Accountants of India, are given below:

(i) The Company has taken various offices under leave and license agreements. These are generally non- cancelable and range between 11 months and 5 years and are renewable by mutual consent on mutually agreeable terms.

(ii) Lease payments are recognized in the Profit & Loss account under "Rent".

---

Mar 31, 2010

A) Basis of Presentation of Financial Statements:

The Financial Statements are prepared under historical cost convention, on accrual basis of accounting in conformity with the accounting principles generally accepted in India and comply with the Accounting Standards referred to in section 211 (3C) of the Companies Act, 1956.

b) Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Fixed Assets and Depreciation:

i) Fixed assets are stated at cost less accumulated depreciation and adjusted for impairment if any.

ii) The Company provides depreciation on straight-line method (SLM) at the rate specified in Schedule XIV of the Companies Act, 1956.

iii) Depreciation on additions to fixed assets is provided on pro-rata basis from the date of addition.

d) Intangible Assets:

Intangible assets comprise of Membership rights of stock exchanges, Computer software and Software licences. The Stock Exchange rights and Software Licenses are amortized over a period of 10 years and the Computer software are amortized over a period of 5 years on Straight Line basis.

e) Inventories - Shares:

The shares are valued at lower of cost or net realizable value.

f) Income:

Brokerage income is recognized on the date of the transaction, upon confirmation of the trade by client. Interest on Suit filed debtors are accounted on receipt basis since there is significant uncertainty in collection. Dividend income is recognised when right to receive the same is established. Service income is recognised as per the terms of the contract/agreement entered into with the customers when the related services are performed.

g) Employee Benefits:

i. Long Term Employee Benefits

a. Defined Contribution plan

The company has defined contribution plans for employees comprising of Provident Fund and Employees State Insurance. The contributions paid/payable to these plans are charged to Profit & Loss Account for the period to which they are related.

b. Defined Benefit Plan

The company makes contributions to Employees Group Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits as determined on actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past service cost if any and as reduced by fair value of plan assets, is recognized in the accounts. Actuarial gains and losses are recognized in full in the Profit & Loss Account for the period in which they occur.

c. Other Long term Employee Benefits

The company has a scheme of Leave Encashment for eligible employees. Companys liability as at the balance sheet date for such benefits is provided for on the basis of actuarial valuation under Projected Unit Cost Method, done by an independent actuary. Actuarial gains and losses comprise experience adjustments and effects of changes in actuarial assumptions and are recognized in the profit & loss account as income or expense.

d. Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

h) Income tax:

Income tax is accounted in accordance with Accounting Standard on Accounting for taxes on Income (AS 22), which includes current taxes and deferred taxes. Deferred tax assets/liabilities representing timing differences between accounting income and taxable income are recognised to the extent considered capable of being reversed in subsequent years. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available, except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is a virtual certainty that sufficient future taxable income will be available to realise the same.

i) Investments:

Long term investments are stated at cost less provision for permanent diminution in their values, if any. Current investments are stated at lower of cost and net realisable value.

j) Provisions and Contingent liabilities

Provisions are recognised when the company has a present obligation as a result of past events, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of obligation. Provisions are not discounted to their 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 current management estimates.

k) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period .The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to the existing shareholders; share split; and reverse share split (consolidation of shares).

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