Notes to Accounts of Wallfort Financial Services Ltd.

Mar 31, 2024

(g) Provisions and Contingent Liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the reporting date.

Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost. Expected future operating losses are not provided for.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

(h) Employee benefits

(i) Short-term obligations

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.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave are encashed as at the end of the year in which the employees render the related service.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity, and

(b) defined contribution plans such as provident fund.

Defined Obligation obligations

The following post - employment benefit plans are covered under the defined benefit plans: Gratuity :

The Company''s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan.

Defined contribution plans

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due.

(j ) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

(j) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short term deposits.

(k) Earnings per share

i) Basic earnings per share

Basic earnings per share is calculated by dividing the net profit for the period (excluding other comprehensive income) attributable to equity share holders of the Company by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus element in equity shares issued during the year.

ii) Diluted earnings per share

Diluted earnings per share is computed by dividing the net profit for the period attributable to equity shareholders by the weighted average number of shares outstanding during the period as adjusted for the effects of all diluted potential equity shares except where the results are anti dilutive

(l) Statement of Cash flow

Statement of Cash flow is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net surplus is adjusted for the effects of changes during the period in inventories, operating receivables and payables transactions of a non-cash nature.

I. Non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses, and undistributed profits of associates; and

ii. All other items for which the cash effects are investing or financing cash flows.

(m) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest in thousands as per the requirement of Schedule III, unless otherwise stated.

Note 3: Key accounting estimates and judgements

The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on ongoing basis. Any changes to accounting estimates are recognized prospectively. Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect on the amounts recognised in the financial statements are included in the following notes:

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

b) Allowance for impairment of financial asset: Judgements are required in assessing the recoverability of overdue loans and determining whether a provision against those loans is required. Factors considered include the aging of past dues, value of collateral and any possible actions that can be taken to mitigate the risk of non-payment.

c) Recognition of deferred tax assets: Deferred tax assets are recognised for unused tax-loss carry forwards and unused tax credits to the extent that realisation of the related tax benefit is probable. The assessment of the probability with regard to the realisation of the tax benefit involves assumptions based on the history of the entity and budgeted data for the future.

d) Defined benefit plans: The cost of defined benefit plans and the present value of the defined benefit obligations 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.

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

b) Terms / Right attached to shares

i) The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of directors is subject to the approval of the shareholders in the ensuing AGM, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all prefrential amounts, in proportion to their shareholding.

ii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

c) In the period of five years immediately preceding 31st March, 2024:

i. The Company has not allotted any bonus shares.

ii. The Company has not allotted any equity shares as fully paid up without payment being received in cash.

Note 34 : Lease

The Company claim exemption from recognizing impact of Ind AS 116 ''Leases''. The exempion can be availed only when the lessee has entered into:

i) Short-term lease and

ii) Lease for which underlying asset is of low value

For above exemption, short term lease means a lease having lease term of 12 months or less and does not include an option to purchase the underlying asset. The Company have entered into lease agreements that have lease term of less than 12 months.The Company has also given refundable interest free security deposits under certain agreements.Lease Payments are recognised as per lessee''s policy in the statement of Profit and Loss under ''Other Expenses'' in Note no. 28. Rent expenses of Rs.70,84,500/- (Previous year- Rs. 70,84,500/-) in respect of obligation under operating leases.

b) Compensation of key management personnel of the Company

Key management personnel are those individuals who have the authority and responsibility for planning and exercising power to directly or indirectly control the activities of the Company and its employees. The Company includes the members of the Board of Directors which include independent directors (and its sub-committees) and Executive Committee to be key management personnel for the purposes of Ind AS 24 Related Party Disclosures.

c) Transactions with key management personnel of the Company

The Company enters into transactions, arrangements and agreements involving directors, senior management and their business associates, or close family members, in the ordinary course of business under the same commercial and market terms, interest and commission rates that apply to non-related parties.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk such as equity price risk and commodity/real estate risk.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.

Foreign currrency Risk Management

In respect of the foreign currency transactions, the company does not hedge the exposures since the management believes that the same is insignificant in nature and will not have a material impact on the Company.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The management is responsible for the monitoring of the Company'' interest rate position. Various variables are considered by the management in structuring the Company''s borrowings to achieve a reasonable and competitive cost of funding.In respect of fluctuating interest rate, the company does not have any borrowings from banks and financial institution and therefore the company is not significantly exposed to interest rate risk

(iii) Market price risk

The Company is exposed to market price risk, which arises from FVTPL and FVOCI investments. The management monitors the proportion of these investments in its investment portfolio based on market indices. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the appropriate authority.

(B) Credit risk

Credit risk is the risk that the Company will incurr a loss because its customers or counterparties fail to discharge their contractual obligation. The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties, and by monitoring exposures in relations to such limits.Other financial assets like security deposits, loans and bank deposits are mostly with exchange, lease rent and banks and hence, there is negligible credit risk with respect to them.

The carrying amount of financial assets represents the maximum credit exposure.

C) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s finance team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows.The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. In the table below, borrowings include both interest and principal cash flows.

The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. In the table below, borrowings include both interest and principal cash flows.

The management assessed that the fair value of cash and cash equivalent, and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for investment in private equity funds, real estate funds.

ii. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of unquoted equity instruments has been measured on the basis of their networth and valuation of their shares.

- the fair value of equity shares of group companies are measured at cost.

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

iii. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values.

Note 42 : Capital Management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximizing the return to stakeholder through the optimization of the debt and equity balance.

For the purpose of the Company''s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company''s capital management is to maximize shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

Note 43 : Other Statutory Information

i) Details of Crypto Currency

The Company has neither traded or nor invested in crypto currency or virtual currency during the current financial year or previous financial year.

ii) Compliance with the number of layer of companies

The Company has complied with the number of layer of companies prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

iii) Details of Benami Property

No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

iv) Declaration regarding Wilful Defaulter

The company is not declared as wilful defaulter by any bank or financial Institution or other lender during the current financial year or previous financial year.

v) Details regarding Loans and Advances

a) The company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), which are either repayable on demand or without specifying any terms or period of repayment during the current financial year or previous financial year.

b) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entity, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (‘Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

c) No funds have been received by the company from any person or entity, including foreign entities (‘Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

vi) Declaration regarding Borrowed funds

a) The company has not taken any borrowings from banks and thus there is no use for the funds being used for the specific purpose for which it was taken at the balance sheet date.

b) The company has not taken any borrowings from banks on the basis of security of Current assets during the current financial year or previous financial year.

c) The company has not taken any secured borrowings during the current financial year or previous financial year accordingly there is no requirement for charge or satisfaction of charges is to be registered withl ROC.

vii) Compliance with Approved scheme of Arrangements

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

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Mar 31, 2023

(g) Provisions and Contingent Liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the reporting date.

Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost. Expected future operating losses are not provided for.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

(h) Employee benefits

(I)Short-term obligations

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.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave are encashed as at the end of the year in which the employees render the related service.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity, and

(b) defined contribution plans such as provident fund.

Defined Obligation obligations

The following post - employment benefit plans are covered under the defined benefit plans: Gratuity :

The Company''s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan.

Defined contribution plans

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due.

(I) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

(j) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short term deposits.

(k) Earnings per share

i) Basic earnings per share

Basic earnings per share is calculated by dividing the net profit for the period (excluding other comprehensive income) attributable to equity share holders of the Company by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus element in equity shares issued during the year.

ii) Diluted earnings per share

Diluted earnings per share is computed by dividing the net profit for the period attributable to equity shareholders by the weighted average number of shares outstanding during the period as adjusted for the effects of all diluted potential equity shares except where the results are anti dilutive

(l) Statement of Cash flow

Statement of Cash flow is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net surplus is adjusted for the effects of changes during the period in inventories, operating receivables and payables transactions of a non-cash nature

I. Non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses, and undistributed profits of associates; and

ii. All other items for which the cash effects are investing or financing cash flows.

(m) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest in thousands as per the requirement of Schedule III, unless otherwise stated.

Note 3: Key accounting estimates and judgements

The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on ongoing basis. Any changes to accounting estimates are recognized prospectively. Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect on the amounts recognised in the financial statements are included in the following notes:

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

b) Allowance for impairment of financial asset: Judgements are required in assessing the recoverability of overdue loans and determining whether a provision against those loans is required. Factors considered include the aging of past dues, value of collateral and any possible actions that can be taken to mitigate the risk of non-payment.

c) Recognition of deferred tax assets: Deferred tax assets are recognised for unused tax-loss carry forwards and unused tax credits to the extent that realisation of the related tax benefit is probable. The assessment of the probability with regard to the realisation of the tax benefit involves assumptions based on the history of the entity and budgeted data for the future.

d) Defined benefit plans: The cost of defined benefit plans and the present value of the defined benefit obligations 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.

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

Note 40 : Financial Risk Management

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk such as equity price risk and commodity/real estate risk.

(I) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.

Foreign currrency Risk Management

In respect of the foreign currency transactions, the company does not hedge the exposures since the management believes that the same is insignificant in nature and will not have a material impact on the Company.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The management is responsible for the monitoring of the Company'' interest rate position. Various variables are considered by the management in structuring the Company''s borrowings to achieve a reasonable and competitive cost of funding.In respect of fluctuating interest rate, the company does not have any borrowings from banks and financial institution and therefore the company is not significantly exposed to interest rate risk

(iii) Market price risk

The Company is exposed to market price risk, which arises from FVTPL and FVOCI investments. The management monitors the proportion of these investments in its investment portfolio based on market indices. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the appropriate authority.

(B) Credit risk

Credit risk is the risk that the Company will incurr a loss because its customers or counterparties fail to discharge their contractual obligation. The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties, and by monitoring exposures in relations to such limits.

Other financial assets like security deposits, loans and bank deposits are mostly with exchange, lease rent and banks and hence, there is negligible credit risk with respect to them.

The carrying amount of financial assets represents the maximum credit exposure.

C) Liquidity risk

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

The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. In the table below, borrowings include both interest and principal cash flows.

The management assessed that the fair value of cash and cash equivalent, and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for investment in private equity funds, real estate funds.

ii. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of unquoted equity instruments has been measured on the basis of their networth and valuation of their shares.

- the fair value of equity shares of group companies are measured at cost.

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

iii. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values.

Note 42 : Capital Management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximizing the return to stakeholder through the optimization of the debt and equity balance.

For the purpose of the Company’s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company’s capital management is to maximize shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

Note 43 : Other Statutory Information I) Details of Crypto Currency

The Company has neither traded or nor invested in crypto currency or virtual currency during the current financial year or previous financial year.

ii) Compliance with the number of layer of companies

The Company has complied with the number of layer of companies prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

iii) Details of Benami Property

No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

iv) Declaration regarding Wilful Defaulter

The company is not declared as wilful defaulter by any bank or financial Institution or other lender during the current financial year or previous financial year.

v) Details regarding Loans and Advances

a) The company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), which are either repayable on demand or without specifying any terms or period of repayment during the current financial year or previous financial year.

b) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entity, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (‘Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

c) No funds have been received by the company from any person or entity, including foreign entities (‘Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vi) Declaration regarding Borrowed funds

a) The company has not taken any borrowings from banks and thus there is no use for the funds being used for the specific purpose for which it was taken at the balance sheet date.

b) The company has not taken any borrowings from banks on the basis of security of Current assets during the current financial year or previous financial year.

c) The company has not taken any secured borrowings during the current financial year or previous financial year accordingly there is no requirement for charge or satisfaction of charges is to be registered with ROC.

vii) Compliance with Approved scheme of Arrangements

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

ix) Ratios

Additional regulatory requirement under (WB) (xvi) of Division III of Schedule III amendment disclosure of ratios, is not applicable to company as it is in broking business and not an NBFC registered under section 45-IA of Reserve Bank of India Act, 1934.

Note 44 : Other Notes

I) There are no material prior period errors which can impact the financial position of the company as per IND AS 8.

ii) Previous year''s figures have been regrouped, reclassified & rearranged to correspond with the current year figures / presentation wherever necessary.

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Mar 31, 2018

(B) NOTES FORMING PART OF THE ACCOUNTS

1. Deferred Tax

For the current year, a sum of Rs. 52,51,376/-(Previous year - Rs. 10,93,770/-) has been recognized as a deferred tax in the Profit & Loss Account and the same has been credited to the Deferred Tax Asset a/c in the Balance Sheet.

As on March 31, 2018, deferred tax on account of timing difference on depreciation of fixed assets . and provision for gratuity was Rs. 2,95,99,473/- (Previous year-Asset Rs. 3,48,50,849/-).

2.’ As of March 31,2018, the Company had no outstanding dues to small-scale industrial undertakings (Previous Year Rs. Nil).

3. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the yearend together with interest paid/payable under this Act have not been given.

4. In the opinion of the Board, Current Assets, Loans & advances have the value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5. The company pledges Investments towards margin requirement for trading in equity / derivatives.

6. Bank Overdraft represents Credit facility for Pay in, pay out and margin requirements

7. The National Stock Exchange and Bombay Stock Exchange have a lien on Fixed Deposits which have been kept for Margin and Base Capital Requirements.

8. Expenditure in foreign currency

(a) Current Year-Travelling - Rs. 1.80 Lakhs (Previous year-6.93 Lakhs)

9. Employee Benefits

Defined Benefit Plans as per Actuarial Valuation as at March 31,2018

10. Related party disclosure has been made as per Accounting Standard 18 issued by the Institute of Chartered Accountants of India, asunder:

Related Party Relationship

Associate Enterprises

Wallfort Properties Pvt. Ltd.

Wallfort Commodities Pvt. Ltd.

Wallfort Share & Stock brokers Pvt. Ltd.

‘ B & S Silver LLP

Key Management personnel

.Ashok Bharadia Deepak Lahoti ''Manoj Bharadia

Relatives of key management personnel

Abhishek Maheshwari Radhakishan Bharadia

Aditya Maheshwari Radhakishan Bharadia HUF

Aditi Bharadia Ramdevi Lahoti

Aniket Bharadia Ramkumar Bharadia

Ashok Bharadia HUF Ramkumar Bharadia HUF

Damoderi Bharadia Rashmi Lahoti

Deepa Bharadia Ritika Bharadia

Deepak Lahoti HUF Sangeeta Bharadia

Kamladevi Bharadia Sarita Maheshwari

Manoj Bharadia HUF Shrivallabh Bharadia

Megha Bharadia Shrivallabh Bharadia HUF

Moolchand Lahoti Shyamsunder Bharadia

Moolchand Lahoti HUF Shyamsunder Bharadia HUF

Neha Bharadia Sunil Bharadia

Pankaj Lahoti . Sunil Bharadia HUF

Pankaj Lahoti HUF Tulsiram Bharadia HUF

Poonam Lahoti Vandana Bharadia

Pratik Bharadia Vijay Bharadia

15. Segment Reporting

The company is engaged in single segment and there are no separate reportable segments as defined in AS -17.

17. The figures have been rounded off to the nearest rupee.

18. The previous year''s figures have been recast / restated, wherever necessary, to conform to the current year''s classification.

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Mar 31, 2016

1. Deferred Tax

For the current year, a sum of Rs. 20_;52_r278/-{Previous year - Rs. 43,56,091/-) has been recognized as a deferred tax in the Profit & Loss Account and the same has been credited (P Y, debited) to the Deferred Tax Asset a/c in the Balance Sheet.

As on March 31. 2016, deferred ;ax on account of timing difference on depredation of fixed assets and provision for gratuity was Rs. 3,59,44,619/* (Previous year - Asset Rs. 3.79.96,897/-),

2. As of March 31,2016, the Company had no outstanding dues to small-scale; industrial undertakings {Previous year Rs, Nil),

3. The company has not received information from vendors regarding their status under the Micro, Small and Medium. Enterprises Development Act, 2DC6 and hence disclosures relating to amounts unpaid as at the year end together with interest pa id/payable under this Act have not been given.

4. In the opinion of the Board, Current Assets, Loans & advances have :he value on realization in the ordinary course of business at least equal to the amount at which they are stated,

5. The company pledges Investments towards margin retirement for trading in equity / derivatives

6. Bank Overdraft represents Credit facility for Pay in, pay out and margin requirements

7. The National Stock Exchange and Bombay Stock Exchange -lave a lien on Fixed Deposits which have been kept for Margin and Base Capital Requirements,

8. Expenditure in foreign currency

9. Current Year-Travelling-(INR) 4,84 Lakhs (Previous year-NIL)

10. Employee Benefits

Defined Benefit Plans as per Actuaries Valuation as at March 31,2016

11. Related party disclosure has been made as per Accounting Standard 18 issued by the Institute of Chartered Accountants of India, asunder:

Related Party Relationship

Associate Enterprises

Bir.odini Vyapar Pvt, Lid. Wallfort Share & Slock brokers Pvt. Ltd.

Knockta Dealcomm Pvt. Ltd, Bajrang Marbles Private Limited

Wallfort Properties Pvt. Ltd. Soditi Developers Pvt. Limited

Wallfort Commodities Pvt. Ltd. Wallfort Steel and Power Private Limited

Mohur Invest. & Consul, Pvt. Ltd. Wallfort Investments & Trading Co. Ltd.

Key Management personnel

Asnok Bharadia Deepak Lahoti Manoj Bharadia

Relatives of key management personnel

Abhlshek Maheshwari Sunil Bharadia

Aditya Maheshwari Sunil Bharadia HUF

Aniket Bharadia Tulsiram Bharadia HUF

Anil Jain Vandana Bharadia

Ashok Bharadia HUF Vijay Bharadia

D a m o deri B h arad ia Yas hku ma r Gote ch ha

Deepa Bharadia

Deepak Lahoti HUF

Kamladevi Bharadia

Kishnidevi Bharatfia

Manidevi Bharadia

Manoj Bharadia HUF

Megha Bharadia

Moolchand Lahoti

Moolchand Lahoti H,UF

Pankaj Lahoti

Pankaj Lahoti HUF

Pponam Lahoti

Pratik Bharadia

Pusphadevi J. Jain

Puspha P. Jam

Radhakishan Bharadia^:

Note:

Related Party relationships are as identified by the company and relied upon by the Auditors

-Transactions carried out with related parties referred to above are in the ordinary course of business

12. Corporate Social Responsibility (CSR)

The Company has constituted the CSR Committee as required under the provisions of the Companies Act, 2013. Based on the recommendations of the CSR Committee, the Board of Directors oi Wallfort Financial Services Lid. approved the CSR policy of the Company and expenditure-e of Rs. 18.83 lakhs for FY 2015-16 towards CSR activities.

13. Gross amount required to be spent by the company during the year is Rs.18.83 Lakhs

14. Amount spent during the year:

15. Contingent liabilities

16. Unexpired Bank Guarantees - NIL

17. Earnings per share

Earnings per Share has been calculated as per Accounting Standard 2U issued by the Institute of Chartered Accountants of India, as under:

18. Segment Reporting

The company is engaged in single segment and there are no separate reportable segments as defined in AS -17.

19. The figures have been rounded off to the nearest rupee.

20. The previous year’s figures have been recast / restated, wherever necessary, to con form to t he current year''s classification.

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Mar 31, 2015

1. Deferred Tax

For the current year, a sum of Rs. 43,56,091/-(Previous year- Rs. 32,36,472/-) has been recognized as a deferred tax in the Profit & Loss Account and the same has been debited to the Deferred Tax Asset a/c in the Balance Sheet.

As on March 31, 2015, deferred tax on account of timing difference on depreciation of fixed assets and provision for gratuity was Rs. 3,79,96,897/- (Previous year - Asset Rs. 3,36,40,805/-).

2. As of March 31,2015, the Company had no outstanding dues to small-scale industrial undertakings (Previous Year Rs. Nil).

3. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the yearend together with interest paid/payable under this Act have not been given.

4. In the opinion of the Board, Current Assets, Loans & advances have the value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5. The company pledges Investments towards margin requirement for trading in equity / derivatives.

6. Bank Overdraft represents Credit facility for Pay in, pay out and margin requirements

7. The National Stock Exchange and Bombay Stock Exchange have a lien on Fixed Deposits which have been kept for Margin and Base Capital Requirements.

8. Segment Reporting

The company is engaged in single segment and there are no separate reportable segments as defined inAS-17.

9. The figures have been rounded off to the nearest rupee.

10. The previous year's figures have been recast / restated, wherever necessary, to conform to the current year's classification.

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Mar 31, 2014

1. Deferred Tax

For the current year, a sum of Rs. 32,36,472/- (Previous year - Rs. 1,84,54,008/- has been recognized as a deferred tax in the Profit & Loss Account and the same has been debited to the Deferred Tax Asset a/c in the Balance Sheet.

As on March 31, 2014, deferred tax on account of timing difference on depreciation of fixed assets and provision for gratuity was Rs. 3,36,40,805/- (Previous year - Asset Rs. 3,04,04,333/-).

2. As of March 31, 2014, the Company had no outstanding dues to small-scale industrial undertakings (Previous Year Rs. Nil).

3. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

4. In the opinion of the Board, Current Assets, Loans & advances have the value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5. The company pledges Investments towards margin requirement for trading in equity/ derivatives.

6. Bank Overdraft represents Credit facility for Pay in, pay out and margin requirements.

7. The National Stock Exchange and Bombay Stock Exchange have a lien on Fixed Deposits which have been kept for Margin and Base Capital Requirements.

8. Expenditure in foreign currency

(a) Current Year NIL (Previous year - NIL)

9. Employee Benefits

Defined Benefit Plans as per Actuarial Valuation as at March 31,2014.

10. Related party disclosure has been made as per Accounting Standard 18 issued by the Institute of Chartered Accountants of India, as under:

Related Party Relationship

Associate Enterprises

Bajrang Marbles Pvt.Ltd. Wallfort Investment And Trading Company Pvt Ltd.

Binodini Vyapaar Pvt.Ltd. Wallfort Properties Pvt. Ltd.

Kanockta Dealcomm Pvt.Ltd. Wallfort Share & Stock brokers Pvt. Ltd.

Mohur Investments Consultancy Pvt.Ltd. Wallfort Steel And Power Private Ltd.

Suditi Developers Pvt. Ltd. Wallfort Developers Pvt. Ltd.

Key Management personnel

Anil Jain Ashok Bharadia Deepak Lahoti

Manoj Bharadia Yash Golechha

Relatives of key management personnel

Anjali Jain

Radhakishan Bharadia Annapurna Bharadia Raj Golechha Damoderi Bharadia Ramkumar Bharadia Daxa Golechha Rashmi Lahoti Deepa Bharadia Shobha Golechha Kamladevi Bharadia Sangeeta Bharadia Kishnidevi Bharadia Shrivallabh Bharadia Manidevi Bharadia Shyamsunder Bharadia Megraj Golechha Taradevi Jain Pradeep Jain Puspha P. Jain Vandana Bharadia Priya Jain Vijay Bharadia Pankaj Lahoti

12. Contingent liabilities

a. Unexpired Bank Guarantees - NIL

13. Earnings per share

Earnings per Share has been calculated as per Accounting Standard 20 issued by the Institute of Chartered Accountants of India, as under:

14. Segment Reporting

The company is engaged in single segment and there are no separate reportable segments as defined in AS - 17.

16. The figures have been rounded off to the nearest rupee.

17. The previous year''s figures have been recast / restated, wherever necessary, to conform to the c urrent year''s classification.

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Mar 31, 2013

1. Deferred Tax

For the current year, a sum of Rs. 1,84,54,008/- (Previous year - Rs. 1,30,88,128/-) has been recognized as a deferred tax in the Profit & Loss Account and the same has been debited to the Deferred Tax Asset a/c in the Balance Sheet.

As on March 31, 2013, deferred tax on account of timing difference on depreciation of fixed assets and provision for gratuity was Rs. 3,04,04,333/- (Previous year - Asset Rs. 1,19,50,325/-).

2. As of March 31, 2013, the Company had no outstanding dues to small-scale industrial undertakings (Previous Year Rs. Nil).

3. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

4. In the opinion of the Board, Current Assets, Loans & advances have the value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5. The company pledges Investments towards margin requirement for trading in equity/ derivatives.

6. Bank Overdraft represents Credit facility for Pay in, pay out and margin requirements.

7. The National Stock Exchange and Bombay Stock Exchange have a lien on Fixed Deposits which have been kept for Margin and Base Capital Requirements.

8. Expenditure in foreign currency

(a) Current Year NIL (Previous year - Data Subscription - Rs.67,499/-)

9. Related party disclosure has been made as per Accounting Standard 18 issued by the Institute of Chartered Accountants of India, asunder:

Related Party Relationship

Associate Enterprises

Binodini Vyapar Pvt. Ltd. Mohur Invest. & Consul. Pvt. Ltd.

Knockta Dealcomm Pvt. Ltd. Vijaydeep Properties Pvt. Ltd.

Wallfort Properties Pvt. Ltd. Wallfort Investments & Trading Co. Ltd.

Wallfort Exim Pvt. Ltd. Wallfort Share & Stock brokers Pvt. Ltd. Wallfort Commodities Pvt. Ltd.

Key Management personnel

Anil Jain Manoj Bharadia

Ashok Bharadia Yash Golechha

Deepak Lahoti

Relatives of key management personnel

Anjali Jain

Radhakishan Bharadia Annapurna Bharadia Raj Golechha Damoderi Bharadia Ramkumar Bharadia Daxa Golechha Rashmi Lahoti Deepa Bharadia Shobha Golechha Kamladevi Bharadia Sangeeta Bharadia Kishnidevi Bharadia Shrivallabh Bharadia Manidevi Bharadia Shyamsunder Bharadia Megraj Golechha Taradevi Jain Pradeep Jain Puspha P. Jain Vandana Bharadia Priya Jain Vijay Bharadia Pankaj Lahoti

10. Segment Reporting

The company is engaged in single segment and there are no separate reportable segments as defined in AS-17.

11. The figures have been rounded off to the nearest rupee.

12. The previous year''s figures have been recast / restated, wherever necessary, to conform to the current year''s classification.

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Mar 31, 2012

1. Deferred Tax

For the current year, a sum of Rs. 1,30,88,128/- (Previous year - Rs. 15,46,923/-) has been recognized as a deferred tax in the Profit & Loss Account and the same has been debited to the Deferred Tax Asset a/c in the Balance Sheet.

As on March 31,2012, deferred tax on account of timing difference on depreciation of fixed assets and provision for gratuity was Rs. 1,19,50,325/-(Previous year-Liability Rs. 11,37,802/-).

2. As of March 31,2012, the Company had no outstanding dues to smal 1-scale industrial undertakings (Previous Year Rs. Nil).

3. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

4. In the opinion of the Board, Current Assets, Loans & advances have the value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5. The company pledges Investments towards margin requirement for trading in equity /derivatives.

6. Bank Overdraft represents Credit facility for Pay in, pay out and margin requirements

7. The National Stock Exchange and Bombay Stock Exchange have a lien on Fixed Deposits which have been kept for Margin and Base Capital Requirements.

8. Expenditure in foreign currency

(a) Data Subscription- Rs.67,499/-(Previous year-2,32,763/-)

10. Related party disclosure has been made as per Accounting Standard 18 issued by the Institute of Chartered Accountants of India, as under:

Related Party Relationship

Associate Enterprises

Binodini Vyapar Pvt. Ltd. Mohur Invest. & Consul. Pvt. Ltd.

Knockta Dealcomm Pvt. Ltd. Vijaydeep Properties Pvt. Ltd.

Wallfort Properties Pvt. Ltd. Wallfort Investments & Trading Co. Ltd.

Wallfort Exim Pvt. Ltd. Wallfort Share & Stock brokers Pvt. Ltd.

Wallfort Commodities Pvt. Ltd.

Kev Management personnel

Anil Jain Manoj Bharadia

Ashok Bharadia Yash Golechha Deepak Lahoti

Relatives of key management personnel

Anjali Jain Shyamsunder Bharadia

Radhakishan Bharadia Megraj Golechha

Annapurna Bharadia Taradevi Jain

Raj Golechha Pradeep Jain

Damoderi Bharadia Puspha P. Jain

Ramkumar Bharadia Vandana Bharadia

Relatives of kev management personnel

Daxa Golechha Kishnidevi Bharadia

Rashmi Lahoti Shrivallabh Bharadia

Deepa Bharadia Manidevi Bharadia

Shobha Golechha Priya Jain

Kamladevi Bharadia Vijay Bharadia

Sangeeta Bharadia Pankaj Lahoti

Note : 1) Related party relationships are as identified by the company and relied upon by the Auditors

2) Transaction carried out with related parties referred to above are in ordinary course of business.

9. Contingent liabilities

a. Unexpired Bank Guarantees - 17.5 Crores against Fixed Deposits 8 crores approx

10. The figures have been rounded off to the nearest rupee.

11. The previous year's figures have been recast / restated, wherever necessary, to conform to the current year's classification.

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Mar 31, 2010

1. Deferred Tax

For the current year, a sum of Rs.20, 61,176/- (Previous year - Rs. 116476/-) has been recognized as a deferred tax in the Profit & Loss Account and the same has been debited to die Deferred Tax Asset a/c in the Balance Sheet.

As on March 31,2010, deferred tax asset on account of timing difference on depreciation of fixed assets and provision for gratuity was Rs.4,09,121/- (Previous year-Liability Rs. 16,52,055/-).

2. As of March 31, 2010, the Company had no outstanding dues to small-scale industrial undertakings (Previous Year Rs. Nil).

3. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

4. In the opinion of the Board, Current Assets, Loans & advances have the value on realization in the ordinary course of business at least equal to the amount at which mey are stated.

5. The company pledges Investments towards margin requirement for trading in equity / derivatives.

6. Bank Overdraft represents Credit facility for Pay in, pay out and margin requirements

7. The National Stock Exchange and Bombay Stock Exchange have a lien on Fixed Deposits which have been kept for Margin and Base Capital Requirements.

8. Expenditure in foreign currency

(a) Traveling - Rs. 96, 700/- (Previous year - NIL)

(b) Data Subscription - Rs.4, 55,438/- (Previous year - NIL)

9. Related party disclosure has been made as per Accounting Standard 18 issued by the Institute of Chartered Accountants of India, as under:

Related Party Relationship

Associate Enterprises

Binodini Vyapar Pvt. Ltd. Vijaydeep Properties Pvt. Ltd.

Knockta Dealcomm Pvt. Ltd. Wallfort Investments & Trading Co. Ltd.

Wallfort Properties Pvt. Ltd. Wallfort Share & Stock brokers Pvt. Ltd.

Wallfort Exim Pvt. Ltd.

Wallfort Commodities Pvt. Ltd. Mohur Invest. & consultancy Pvt. Ltd.

Key Management personnel

Anil Jain Manoj Bharadia

Ashok Bharadia Yash Golechha

Deepak Lahoti

Relatives of key management personnel

Anjali Jain

Radhakishan Bharadia

Annapuma Bharadia

Raj Golechha

Damoderi Bharadia

Ramkumar Bharadia

Daxa Golechha

Rashmi Lahoti

Deepa Bharadia

Shobha Golechha

Kamladevi Bharadia

Sangeeta Bharadia

Kishnidevi Bharadia

Shrivallabh Bharadia

Manidevi Bharadia

Shyamsunder Bharadia

Megraj Golechha

Taradevi Jain

Pradeep Jain

Vandana Bharadia

Priya Jain

Vijay Bharadia

Pankaj Lahoti

Note : 1) Related party relationships are as identified by the company and relied upon by the Auditors

2) Transaction carried out with related parties referred to above are in ordinary course of business.

10. Contingent liabilities

a. Unexpired Bank Guarantees - 23.26 Crores against Fixed Deposits 11.63 crores approx

11. Segment Reporting

The company is engaged in single segment and there are no separate reportable segments as defined in AS -17.

12. The figures have been rounded off to the nearest rupee.

13. The previous years figures have been recast / restated, wherever necessary, to conform to the current years classification.