11. Provisions, Contingent liabilities and Contingent
assets

Provisions are recognised only when:

• an entity has a present obligation (legal or
constructive) 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

• a reliable estimate can be made of the amount of
the obligation

These are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.

Further, long term provisions are determined by
discounting the expected future cash flows specific
to the liability. The unwinding of the discount is
recognised as finance cost. A provision for onerous
contracts is measured at the present value of the
lower of the expected cost of terminating the
contract and the expected net cost of continuing
with the contract. Before a provision is established,
the Company recognises any impairment loss on the
assets associated with that contract.

Contingent liabilities are disclosed in case of:

• a present obligation arising from past events, when
it is not probable that an outflow of resources will
be required to settle the obligation; and

• a present obligation arising from past events, when
no reliable estimate is possible.

Contingent assets:

Contingent assets are assessed continually to ensure
that developments are appropriately reflected in the
financial statements. If it has become virtually certain
that an inflow of economic benefits will arise, the asset
and the related income are recognised in the financial

statements of the period in which the change occurs. If
an inflow of economic benefits has become probable,
an entity discloses the contingent asset.

12. Commitments:

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

• estimated amount of contracts remaining to be
executed on capital account and not provided for;

• uncalled liability on loan sanctioned and on
investments partly paid; and

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

13. Earnings Per Share

The Company presents basic and diluted Earnings Per
Share (“EPS”) data for its equity shares. Basic EPS is
calculated by dividing the profit or loss attributable to
equity shareholders of the Company by the weighted
average number of equity shares outstanding during
the year.

Diluted EPS is calculated by adjusting the profit or loss
attributable to equity shareholders and the weighted
average number of equity shares outstanding for the
effects of all dilutive potential equity shares, except
where the results would be anti-dilutive.

14. Cash and Cash Equivalents

Cash comprises cash in hand and demand deposits
with banks. Cash equivalents are short term balances
(with an original maturity of three months or less from
the date of acquisition), and highly liquid time deposits
that are readily convertible into known amounts of
cash and which are subject to insignificant risk of
changes in value.

15. Statement of Cash Flows

Statement of Cash Flows is prepared segregating the
cash flows into operating, investing and financing
activities. Cash flow from operating activities is
reported using indirect method adjusting the net profit
for the effects of:

i. changes during the period in inventories and
operating receivables and payables transactions
of a noncash nature;

ii. non-cash items such as depreciation, provisions,
deferred taxes, unrealised foreign currency gains
and losses, and undistributed profits of associates
and joint ventures; and

iii. all other items for which the cash effects are
investing or financing cash flows.

Cash and cash equivalents (including bank balances)
shown in the Statement of Cash Flows exclude items

which are not available for general use as on the date
of balance sheet.

16. Employee Benefits

Short term employee benefits

Employee benefits falling due wholly within twelve
months of rendering the service are classified as
short term employee benefits and are expensed in
the period in which the employee renders the related
service. Liabilities recognised in respect of short-term
employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in
exchange for the related service.

Long term employee benefits

Company’s net obligation in respect of long-term
employee benefits is the amount of future benefit that
employees have earned in return for their service in
the current and prior periods.

Post-employment benefits

a) Defined Contribution Plans

Provident Fund:Contributions as required under
the statute, made to the Provident Fund (Defined
Contribution Plan) are recognised immediately
in the Statement of Profit and Loss. There is no
obligation other than the monthly contribution
payable to the Regional Provident Fund
Commissioner.

ESIC and Labour Welfare Fund:The Company’s
contribution paid/payable during the year to
Employee state insurance scheme and Labour
welfare fund are recognised in the Statement of
Profit and Loss.

b) Defined Benefit Plans

Gratuity liability is defined benefit obligation and
is provided on the basis of an actuarial valuation
performed by an independent actuary based on
projected unit credit method, at the end of each
financial year.

Defined benefit costs are categorised as follows:

i) Service cost (including current service cost, past
service cost, as well as gains and losses on curtailments
and settlements)

ii) Net interest expense or income

iii) Re-measurement

Re-measurements of the net defined benefit liability,
which comprise actuarial gains and losses, the return
on plan assets (excluding interest) and the effect of the
asset ceiling (if any, excluding interest), are recognized
in OCI, net of taxes. The Company determines the net
interest expense/(income) on the net defined benefit

liability/(asset) for the period by applying the discount
rate used to measure the defined benefit obligation
at the beginning of the annual period to the net
defined benefit liability/(asset), taking into account
any changes in the net defined benefit liability/
(asset) during the period as a result of contributions
and benefit payments. Net interest expenses and
other expenses related to defined benefit plans are
recognized in Statement of Profit and Loss.

The Company’s net obligation in respect of gratuity
(defined benefit plan), is calculated by estimating the
amount of future benefit that the employees have
earned in the current and prior periods, discounting
that amount and deducting the fair value of any plan
assets. The retirement benefit obligation recognised
in the Balance Sheet represents the actual deficit or
surplus in the Company’s defined benefit plans. Any
surplus resulting from this calculation is recognised as
an asset to the extent of present value of any economic
benefits available in the form of refunds from the plans
or reductions in the future contribution to the plans.

Share based payment arrangements

The cost of equity settled transactions is determined
by the fair value at the grant date. The fair value of the
employee share options is based on the Black scholes
model.

The grant date fair value of equity settled share based
payment granted to employees is recognized as an
expense, with a corresponding increase in equity,
over the vesting period of the awards. The amount
recognized as an expense is adjusted to reflect the
number of awards for which the related service and

non-market performance conditions are expected to
be met, such that the amount ultimately recognized is
based on the number of awards that meet the related
service and non-market performance conditions at
the vesting date. For share based payment awards
with market performance conditions and non-vesting
conditions, the grant date fair value of the share based
payment is measured to reflect such conditions and
there is no true-up for differences between expected
and actual outcomes.

The Company grants options to eligible employees of
the Company under Choice Employee Stock Option
Scheme 2022. The options vest over a period of four
years. In case of Group equity settled share based
payment transactions, where the Company grants
stock options to the employees of its subsidiaries, the
transactions are accounted by increasing the cost of
investment in subsidiary with a corresponding credit in
the equity.

The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.

17. Investment in Subsidiaries

Subsidiaries are all entities over which the Company
has control. The Company controls an entity when
the Company is exposed to, or has rights to, variable
returns from its involvement with the entity and has
the ability to affect those returns through its power to
direct the relevant activities of the entity.

Investment in subsidiaries are measured at cost less
accumulated impairment, if any.

Investment in Subsidiary, Joint Venture and Associate
Companies

The Company has elected to recognise its investments in
subsidiary, Joint venture and associates companies at cost in
accordance with the option available in Ind AS 27 “Separate
Financial Statements”.

9(i) During the year ended March 31, 2026, the Company
invested in Choice AMC Private Limited by subscribing to
5,00,00,000 equity shares at Rs.10/- pershare, amounting
to Rs.5,000 lakhs, and by acquiring 61,10,000 lakhs equity
shares from Choice Equity Broking Private Limited at
Rs.10/- per share, amounting to Rs. 611 lakhs. Pursuant
to these transactions, Choice AMC Private Limited
became a wholly owned subsidiary of the Company.
Additionally, the Company also subscribed to an
additional 1,00,00,000 equity shares of Rs.10/- each,
amounting to Rs.1,000 lakh, in the said subsidiary,
thereby increasing the aggregate investment to Rs.6,611
lakhs.

9(ii) During the year ended March 31, 2026, the Company
has further invested in its subsidiary, Choice Finserv
Private Limited, by subscribing to 92,14,585 equity shares
at a price of Rs.108/- per share, amounting to a total
investment of approximately Rs. 9,951.75 lakhs.

9(iii) The Company has advanced a sum of Rs.6,250.20
lakhs towards the proposed acquisition of a 50%

equity stake in Choice Insurance Broking India Private
Limited, comprising 6,60,000 Equity share at a price of
Rs. 947/- per share. This transaction has been approved
by Insurance Regulatory and Development Authority of
India (IRDAI) on February 04, 2026.

9(iv) During the year ended March 31, 2026, the Company
acquired a 51% stake in Fintoo Wealth Private Limited
by subscribing to 520,408 equity shares at Rs.192.15 per
share, aggregating to Rs. 999.96 lakhs.

9(v) During the year ended March 31, 2026, the Company
has written off its investment in the share warrants of
FinMen Advisors and Consultants Private Limited, as the
negative net worth of the investee company indicated
that the warrants had no recoverable value and were
not expected to be exercised.

9(vi) During the year ended March 31, 2026, the Company has
made investment in 15,00,000 Share Warrants of Share
Samadhan Limited @ Rs. 78/- per warrants, and paid
25% application money. Subsequently, the Company
recognised a fair value loss of Rs. 200 lakhs on the
investment.

9(vii) During the year ended March 31, 2026, the Company
has issued 3,57,250 (March 31, 2025: Nil) Employees Stock
options to the employees of its subsidiaries (Refer Note
39(iii)). This includes related party transactions referred
in Note 40 (ii).

Terms / rights attached to Equity Shares:

1 The Company has only one class of equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. In the event of liquidation, the equity share holders are eligible to receive the remaining
assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

2 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders

3 Disclosure statement on buy back and Bonus issue of shares

The Company has not bought back any of its equity shares during the period of five years immediately preceding the
reporting date.

The Company issued 4,97,56,000 bonus equity shares in the ratio of 1:1 on September 15, 2022 and 9,96,89,500 bonus equity
shares in the ratio of 1:1 on February 12, 2024, without consideration in cash, in accordance with the applicable provisions of
the Companies Act, 2013.

4 Disclosure statement of Shares issued under ESOP Scheme

During the year ended March 31, 2026, the Company has issued Nil (March 31, 2025 : 2,76,500) Equity shares under ESOP
scheme @ Rs. 10/- per share.

(ii) Capital Commitments-

As at March 31, 2026, the Company had the following capital commitments:

Pursuant to a Memorandum of Understanding (MOU) entered into during the year ended March 31, 2024, for the acquisition of
leasehold property valued at Rs. 2,900 lakhs, the Company has commenced construction activities and incurred expenditure of
Rs. 407.65 lakhs as at March 31, 2026. Further expenditure of approximately Rs. 3,000.00 lakhs is expected to be incurred in the
subsequent financial year.

The Company has commenced construction of a property at Jaipur, which is classified as Capital Work-in-Progress. During the
financial year 2025-26, the Company incurred expenditure of Rs. 378.95 lakhs towards the construction. The Company expects to
incur additional expenditure of approximately Rs. 2,500.00 lakhs towards the completion of the project during the next financial
year.

These commitments represent the Company’s planned capital expenditure towards development projects.

(iii) The Company does not have any pending litigation and did not have any long-term contracts, including derivative contracts,
for which there were any material foreseeable losses.

39(ii) Defined benefit plans
Gratuity (post-employment benefits)

The Company provides for gratuity to employees in India as per the Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination
is the employee’s last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of
years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised/approved funds in
India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of
time based on estimations of expected gratuity payments.

39(iii) Employee Stock Option Plan

The Company has Choice Employee Stock Option Plan 2022, under which options have been granted to eligible employees to
be vested from time to time.

The Company has established share option plans that entitle the employees of the Company and its subsidiary companies to
purchase the shares of the Company. Under these plans, holders of the vested options are entitled to purchase shares at the
exercise price of the shares determined at the respective date of grant of options.

The key terms and conditions related to the vesting of grants under these plans are continued employment with the Company
from the date of grant of option till the date of vesting; all options are to be settled by the delivery of shares.

Measurement of fair values

The fair value of the employee share options has been measured using Black-Scholes Option pricing model.

Note 41 : Fair Value Disclosure

This section gives an overview of the significance of financial instruments for the Company and provides additional information
on balance sheet items that contain financial instruments. The details of material accounting policies, including the criteria for
recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of
financial asset, financial liability and equity instrument are disclosed in the financial statements:

41.2 Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are divided into three levels
of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as
follows:

a) Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

b) 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.

c) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The Company has assessed that the fair value of cash and cash equivalents, other bank balances, trade receivables, other
current financial assets, trade payables, approximate to their carrying amounts largely due to the short-term maturities of these
instruments.

(i) Borrowings are evaluated by the Company based on parameters such as interest rates and specific country risk factors.

(ii) The fair value of other financial liabilities, is estimated by discounting future cash flows using rates currently available for
debt on similar terms, credit risk and remaining maturities.

(iii) The fair values of the Company’s interest-bearing borrowings and loans are determined by using DCF method using discount
rate that reflects the issuer’s borrowing rate as at the end of the reporting period. No own non-performance risk as at March
31, 2026 was assessed.

Note 42 : Financial Risk Management Objectives and Policies

The Company’s principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these
financial liabilities is to finance the Company’s operations directly or indirectly. The Company’s principal financial assets include
investments, loans, trade and other receivables, cash and cash equivalents that derive directly from its operations.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including Fixed deposits with banks and financial institutions and other financial instruments.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s finance department in accordance
with the Company’s policy. Investments of surplus funds are made generally in the fixed deposits and for funding to subsidiary
company. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make
payments for vendors.

The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2026 and March 31, 2025
is the carrying amounts as stated in balance sheet except for balances of subsidiary company.

Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans
and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing
lenders. The Company believes that the working capital is sufficient to meet its current requirements.

Note 43 : Capital Management

For the purpose of the Company’s capital management, capital includes issued equity share capital, securities premium and all
other reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management
is to maximise the value of the share and to reduce the cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company can adjust the dividend
payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided
by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

Market Risk

The Company manages market risk through a corporate treasury department, which evaluates and exercises independent
control over the entire process of market risk management. The corporate treasury department recommends risk management
objectives and policies, which are approved by senior management and Audit Committee. The activities of this department
include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies,
and ensuring compliance with market risk limits and policies.

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 changes in
market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.
The Company’s policy is to keep balance between its borrowings at fixed rates of interest. The difference between fixed and
variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

Note 44 : Segment Information

Operating segments are defined as components of an enterprise for which discrete financial information is available that is
evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance.
The Group’s chief operating decision maker is the Chief Executive Officer and Managing Director. Pursuant to surrendering its
license, the main business of the Company is investing and financing to the Subsidiaries and providing support services to the
Group Companies. Further all activities are carried out within India. Accordingly, Segment Reporting in accordance with Ind AS
- 108 “Operating Segment” issued by the Institute of Chartered Accountants of India and adopted by Companies (Accounting
Standard) Rules, 2015 is not applicable to the Company.

Equity price risk

The Company’s investments in non listed equity securities are accounted at cost in the financial statements net of impairment .
The expected cash flows from these entities are regularly monitored internally and also independently, wherever necessary, to
identify impairment indicators.

(1) The increase in the Current Ratio is primarily attributable to higher cash and cash equivalents and an increase in loans

advanced during the current year, resulting in a higher level of current assets as compared to the previous year.

(2) The Debt-Equity Ratio has decreased during the year primarily due to an increase in shareholders’ equity, driven by the
conversion of warrants into equity shares, which resulted in an increase in share capital and other equity.

(3) The decrease in Return on Equity is mainly due to lower profitability during the year and an increase in shareholders’ equity,
leading to a reduction in the overall return generated on equity.

(4) The decrease in the Trade Payables Turnover Ratio is primarily attributable to a significant increase in purchases during the
year, while the corresponding increase in trade payables was not proportionate.

(5) The decline in the Net Capital Turnover Ratio is primarily on account of higher working capital employed during the year,
resulting from an increase in current assets.

(6) The decrease in the Net Profit Ratio is primarily attributable to a substantial increase in operating and other expenses during
the year, which resulted in a decline in profit despite growth in revenue.

(7) The decrease in Return on Capital Employed is primarily due to lower profit during the year and a higher capital employed
base resulting from an increase in share capital and other equity.

(8) The decrease in Return on Investment is primarily attributable to fair value losses recognised on investments during the
current year, resulting in lower investment returns.

* In the calculation of Weighted average cost of Investments, investments in subsidiaries are not considered.

Note 49 : Undisclosed Income

There have been no transactions which have not been
recorded in the books of accounts, that have been surrendered
or disclosed as income during the year ended March 31, 2026
and March 31, 2025, in the tax assessments under the Income
Tax Act, 1961. There have been no previously unrecorded income
and related assets which were to be properly recorded in the
books of account during the year ended March 31, 2026 and
March 31, 2025.

Note 50 : Utilisation of borrowings availed from banks and
financial institutions

The borrowings obtained by the Company from financial
institution has been applied for the purposes for which such
loans were taken.

Note 51 : Disclosure relating to Benami Property held

The Company does not have any benami property where
any proceedings have been initiated or pending against the
Company for holding any benami property under the Benami
Transaction (Prohibition) Act , 1988 (45 of 1988) and Rules made
thereunder.

Note 52 : Willful Defaulter

The Company has not been declared willful defaulter by any
bank or financial institutions or government or any government
authority.

Note 53 : Compliance with number of layers of Companies

The Company has complied with the number of layers
prescribed under section 186(1) of the Companies Act, 2013.

Note 54 : Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in crypto currency or
virtual currency during the current or previous year.

Note 55 : Relationship with Struck off Companies

The Company has not entered in any transactions with
companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956.

Note 56 : Registration of charges or satisfaction with
Registrar of Companies (ROC)

The Company has completed the process of creation and

satisfaction of the charges with Registrar of Companies (ROC)
in due course of time.

Note 57 : Title deeds of immovable properties not held in
name of the Company

There are no instances where the title deeds of immovable
property (other than properties where the Company is the
lessee and the lease agreements are duly executed in favor of
the lessee) are not held in the name of the Company.

Note 58 : Compliance with approved scheme(s) of
Arrangements

The Company has not entered in any transaction which
is required to be complied with approved scheme(s) of
arrangement.

Note 59 : The Social Security Code 2020

On November 21 2025, the Government of India notified
four Labor Codes- the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020 and
the Occupational Safety, Health and Working Conditions
Code, 2020, collectively referred to as the ‘New Labor Codes’
consolidating 29 existing labor laws. The Ministry of Labor &
Employment has published draft Central Rules and FAQs on
December 30, 2025 to facilitate assessment of the financial
impact arising from these regulatory changes. Accordingly, the
Company has recognised an estimated incremental impact of
Rs. 7.91 lakhs under ‘Employees cost’ in the Statement of Profit
and Loss during the quarter ended December 31, 2025 and year
ended March 31, 2026, considering best information available.
The Company continues to monitor the finalisation of Central
and State Rules and clarifications from the Government on the
New Labor Codes and would provide appropriate accounting
effect on the basis of such developments, as needed.

Note 60 : Subsequent Event

There have been no events after the reporting date that require
disclosure in these financial statements.

Note 61 : Approval of Financial Statements

The standalone financial statements of the Company were
approved for issue in accordance with a resolution of the
Board of Directors on April 23, 2026.

Note 48 : Utilisation of Borrowed Funds and share premium:

The Company has not advanced or loaned or invested funds
to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary
shall: a. directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of
the group (Ultimate Beneficiaries) or b. provide any guarantee,
security or the like to or on behalf of the ultimate beneficiaries

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

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

b. provide any guarantee, security or the like on behalf of the
ultimate beneficiaries

11. Provisions

Provisions are recognised only when:

• an entity has a present obligation (legal or constructive) as
a result of a past event and

• It *s probable that an outflow of resources embodying
economic benefits will be required to settle the obligation,
and

• a leiidbie estimate can oe made o» the amount o1 the
obligation

These are reviewed at each Balance Sheet date and adjusted
to reflect the current best estimates

Further, long term provisions me determined by discounting
the expected future cash flows specific to the liability The
unwinding of the discount 1$ recognised as finance cost A
provision for onerous conti acts is measured at the present
value of the lower of the expected cost of terminating the
contract and the expected net cost of continuing with the
contract Before a provision is established, the Company
recognises any Impairment loss on the assets associated with
that contract

Contingent liability is disclosed in case of
. a present oGhgation arising horn past events, when it is not
probaoie that an outflow of resources will be required to
settle the obligation, and

• « present obligation arising from past events, when no
reliable estimate is possible

Contingent Assets

Contingent assets an- assessed continually to ensure that
developments are aoorooilatelv reflected in the financial
statements. It it has become virtually certain that an Inflow
of economic benefits will anse. the asset and the related
Income are recognised in the financial statements ot the
period In which the change occurs. If an inflow of economic
benefits has become probable, an entity discloses the
contingent asset.

12. Commitments

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

• estimated amount of contracts remaining to be executed
on capital account and not provided for

• uncalled liability on loan sanctioned and on investments
partly paid; and

- oilier nou-cancellable commitments. ¦» my, to the extent
they are considered material ana relevant in the opinion
of management.

13 Earnings Per Share

Basic earrings per share are calculated by dividing the net
profit or loss for the year attributable to equity shareholders by
the weigmec! average number of equity shares outstanding
during the year.

Diluted ceminqs per share adjusts the figures used In the
determination of basic earnings per share to take into account

? The after income tax effect of interest and other financing
costs associated witn dilutive potential equity shares, and

• Weighted average number of eouity shates that would
have been outstanding assuming the conversion ot al< the
diiutive potential equity

14. Cash and Cash Equivalents

Cash comprises cash on hand and demand deposits with
banks Casn equivalents are short-term balances (wiih a- •
original matumy of three months o» less from the date of
acquisition), and highly liquid time deoosits that are readily
convertible Into known amounts of cash and which are subject
to insignificant risk of changes in value

15. Statement of Cash Flow

Statement of Cash Plows is prepared segregating the cash
flows Into operating, investing and financing activities. Cash
flow from operating activities is leported using indirect
method adjustinq the net profit for the effects of:

I. changes during the period in Inventories and operating
receivables and payables transactions of a noncash natute:
ii. non-cash items such as depreciation, provisions, deferred
taxes, unrealised foreign tuirency gains and losses, and
undistributed profits of associates and joint ventures, and
id ail other items for which the cash effects are investing or
financing cash flows

Cash and cash equivalents (Including bank balances) shown in
the Statement ot Cash F''ows exclude items which arc not
avaiiable for general use as on tne date of Balance Sheet

16. Employee Benefits
Short term employee benefits

Employee benefits falling due wholly within twelve months ot
rendering the service are classified as snort term employee
benefits and are expensed In the period in which the
employee renders the related service Liabilities recognised n
respect ot short-term employee benefits are measured at the
undtscounic-Q amount of tho benefits expected 1o be paid in
exchange for tho related service

Long term employee benefits

Company''s net obligation In respect of long-term employee
benefits Is the amount or future benefit that employees
have earned in return for then service m the current and
prior ixerlods

Post-employment benefits
a.) Defined contribution Plans

Provident fund: Contnbutions as required under the statute
made to the Provident fund (Defined Contribution Plan) are
recognised immediately in the Statement of Profit and Loss
There is no obligation other than the monthly contribution
payable to the Regional Provident Fund Commissioner.

ESIC and Labour welfare fund: The Company’s contribution
pald/payable during the year to Employee state insurance
scheme and Ln&ou> welfare fund are recognised In rh»
Statement of Profit and Loss.

b.) Defined benefit Plans

Gratuity liability is defined benefit obligation ana is provided
on the basis of an actuarial valuation pedormed by an
Independent actuary based on projected unit credit method
at the end of each financial year

Defined benefit costs are categorised as follows:
ll Service cost (Including current service cost, past service
cost, as wel as gams anti losses on curtailments and
settlements)

Ii) Net Interest expense or income
jii) Re-measuremcnt

Re-measurements of the net defined benefit liability, which
comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of tne asset celling (if any.
excluding interest), are recognized in OCI. net of taxes. The
Company determines the net interest expense (Income) on the
net defined benefit liability tassel) for the period by applying
the discount rate used to measure the defined benefit
obligation at the beginning of the annual period to the net
defined benefit liability (asset), taking into account any
changes In the net defined benefit liability (asset! during the
loerlod as a result ot contributions and benefit payments Net
Interest expense and other expenses related to defined
benefit plans are recognized in Statement of Profit and Loss

The Company s net obligation In respect of gratuity (defined
benefit plan), is calculated by estimating the amount of future
benefit that the employees have earned m the current and
prior periods, discounting that amount and deducting the* fair
value o'' any p''nn assets Tire retirement benefit obligation
recognised in the Balance Sheet represents the actual deficit
or surplus in the company''s defined benefit plans Any surplus
resulting from this calculation is recognised as an asset to the
extent cif present value at any economic benefits available frt
tne form of refunds from the plans or reductions in ttie ratine
contribution to the plans

Share based payment arrangements

The cost of eoully settled transactions is determined by the
fair value at the grant date. The fan value oi the employee
sh ire options is based on the Black 5choles mode

T he grant-date fair value of equity-settled share-based
payment granted to employees Is recognized as an expense,
with a corresponding Increase in equity, over the vesting
period of the awards The amount recognized as an expense
Is adjusted to reflect the number ot awards for which the
related service and nommarket performance conditions are
expected to be mot, such that the amount ultimately
recognized is based on the number of awards that meet the
related service and non-market performance conditions at the
vesting dare For share-basea payment awards with marxei
performance conditions and non-vesting conditions, the giant-
date fan value of the share-based payment Is measuied to

reflect such conditions and There* is no true up for differences
between expecteo and actual outcomes

Choice International Limited giants options lo eligible
employees of the Company under Cnoice Employee Stock
Ojttion Scheme 2022. The options vest over a period of foui
years In case of Group equity-settled share-oased payment
transactions, where ihe Company grants slock options to the
employees of its subsidiar ies, the transactions are accounted
by Increasing the cost ot investment in subsidiary With a
corresponding credit In Ihe equity

The dilutive effect of outstanding options is reflected as
additional share dilution m the computation of diluted earnings
per share

17. Investment In Subsidiaries

Subsidiaries are all entities over winch the Company has
control. The Company contro s an entity when the company
is exposed to. or nas rights to, variable returns from its
involvement with the erthty and has Ihe ability to atfecl those
returns through Its power to direct if ie relevant activities of
the entity

Investment In subsidiaries are measi ned at cost less
accumulated Impairment, ll any

Investment In Subsidiary, Joint Venture and Associate Companies

The Company has elected to recognise its investments in subsidiary, Joint venture and associates companies at cost in
accordance with the option available in IND AS 27 “Separate Financial Statement”.

’ During the previous year ended March 31. 2024. the Company has purchased 25.00.000 equity shares from one of its
subsidiary i.e. Choice Equity Broking Private Limited :8 Rs. 46.50 of Choice Fmserv Private Limited.

•''During the year ended March 31, 2025 , a new wholly owned subsidiary of ''Choice Trustees Services Private Limited'' was
Incorporated

*” During the previous year ended March 31, 2024, the Company has invested in share warrents of Finmen Advisors and
Consultants Private Limited which are fully convertible into equivalent numbers of equity shares.

""During the previous year ended March 31,2024 . the Company has purchased units of Alternative Investment funds from
Choice Strategic Advisors LLP of Rs. 997.25 lacs

""•During the year March 31. 2025 , the Company has issued Nil ( March 31. 2024:17,500) Employees Stock options to the
employees of its subsidiaries (Also refer Note 38 (3))

Terms / rights attached to Equity Shares:

1. The Company has only one class of eauity shares having a par value of Rs.10 per share. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. In the event of liquidation, the equity share holders are eligible to receive the remaining
assets of the Company after distribution of all preferential amounts In proportion to their share holding.

2. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be proportion to the number of equity shares
held by the shareholders.

3 Disclosure statement of Bonus issue of shares - During the previous year ended March 31. 2024. the Company Issued
9.96,89,500 equity shares of Rs. 10 each as a bonus issue In the ratio of 1:1 (i.e , one bonus share for every one share held)
The bonus shares were allotted by capitalizing a sum of Rs. 9,968 95 lakhs from the securities premium account, In
accordance with the applicable provisions of the Companies Act. 2013. However there Is not any bonus issue during the
year ended March 31, 2025.

2. Defined benefit plans
Gratuity (post-employment benefits)

The Company provides for gratuity to employees in India as per the Payment of Gratuity Act, 1972. Gratuity is
payable to all the eligible employees at the rate ol 15 days salary (Basic D. A.) for each completed year of service,
subject to a payment ceiling of Rs. 20.00 lakhs in line with Payment of Gratuity Act. 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity. In line with Gratuity Act, service more than 6
months is considered as 1 year, so past service Is calculated as rounded years of service.The amount of gratuity
payable on retirement/termination is the employees last drawn basic salary per month computed proportionately
for 15 days salary multiplied for the number of years of service. The gratuity plan Is a funded plan and the Company
makes contributions to recognised/approved funds in India. The Company does not fully fund the liability and
maintains a target level of funding to be maintained over a period of time based on estimations of expected
gratuity payments.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring
at the end of the reporting period, while holding all other assumptions constant The sensitivity analysis presented above may
not be representative of the actual change In the defined benefit obligation as it Is unlikely that the change in assumptions
would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore. In presenting the above sensitivity analysis, the present value of the defined benefit obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same- method as applied in
calculating the defined benefit obligation as recognised in the balance sheet

There is no change in the methods and assumptions used in preparing the sensitivity analysis from previous year.

Credit Risk

Credit risk is the nsk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to
a financial loss. The Company is exposed to credit nsk from its operating activities (primarily trade receivables) and from its
financing activities, including Fixed deposiE with banks and financial institutions and other financial instrumenE.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions Is managed oy the Company’s finance department In accordance
with the Company’s policy Investments of surplus funds are made generally In the fixed deposits and for funding to subsidiary
company. The Investment limrts are set to minimise the concentration of risks and therefore mitigate financial loss to make
payments for vendors.

The Company’s maximum exposure to credit nsk for the components of the balance sheet at March 31. 2025 and March 31.
2024 is the carrying amounte as stated in balance sheet except for balances of subsidiary company

Liquidity Risk

The Company monitors iE risk of a shortage of funds usinq a liquidity plannmg tool.

The Company’s objective is to maintain a balance between continuity of funding and fiexioility through the use o'' bank loans
and unsecured loans The Company has access to a sufficient variety of sources of funding which can be tolled over with
existing lenders The Company believes that the working capital is sufficient to meet Its current requirements.

Market Risk

The Company manages market risk through a corporate treasury department, which evaluates and exercises independent
control over tne entire process of market nsk management The corporate treasury department recommends risk management
objectives and policies, which arc approved by senior management and Audit Committee. The activities of this department
include management of cash icsources, implementing hedging strategies for foreign currency exposures, borrowing strategies,
and ensuring compliance with market risk UmiE and policies.

Interest rate risk

Interest rate risk Is the risk that the fair value or future cash flows of a financial instrument will fluctuate because ot changes in
market interest rates The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s
long-term debt obligations with floating interest rates.

The Company manages tE interest rate nsk by having a balanced portfolio of fixed and variable rate loans and borrowings
The Company''s poliey is to keep balance between its borrowings at fixed rates of interest, The difference between fixed and
variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

Note 50: Utilisation of Borrowed Funds and share premium

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

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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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

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

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries
Note 51: Undisclosed Income

There have been no transactions which have not been recorded In the books of accounts, that have been sunendered or
disclosed as income during the year ended March 31.2025 and March 31. 2024. in the tax assessments under the Income Tax
Act. 1961 There have been no previously unrecorded income and related assets which were to be properly recorded in the
books of account during the year ended March 31, 2025 and March 31. 2024

Note 52: Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the company from financial institution has been applied for the purposes for which such loans were
was taken.

Note 53: Disclosure relating to Benami Property held

The Company does not have any oenaml property where any proceedings have been (nitrated or pending against the Company
for holding any benami property under the Benanv Transaction Prohioition Act, 1988 (45 of 1988) and Rules made there under

Note 54: Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or llnanclai institutions or government or any
government authority

Note 55: Compliance with number of layers of Companies

The Company has compiled with the number of layers prescribed under section 186(1) ot the Companies Ad 2013.

Note 56: Details of Crypto Currency or Virtual Currency

The Company has not traded or invested In crypto currency or virtual currency dunng the current or previous year
Note 57: Relationship with Struck off Companies

The Company has not entered In any transactions with companies struck off under section 248 of the Companies Act .2013 or
sect''on 560 of Companies Act 1956

Note 58: Expenditure on Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, the Company Is not mandatory required to spend on corporate social
responsibility (CSR) activities

Note 59: Registration of charges or satisfaction with Registrar of Companies (ROC)

The Company has completed the process of creation and statisfaction the charges with Registrar ot Companies (ROC) in due
course of time.

Note 60: Title deeds of immovable properties not held in name of the Company

There are no instances wheie the title deeds of immovable property (other than properties where the Company is the lessee
and the lease agreements are duly executed in favoui of the lessee) are not held In the name of the Company.

Note 61: Compliance with approved scheme(s) of Arrangements

The Company has not entered in any transaction which is required to be complied with approved scheme(s) of arrangemen!
Note 62: Subsequent Event

There have oeen no events after the reporting date that require disclosure In these financial statements.

Note 63: Approval of Financial Statements

The Standalone Financial Statements of the company were approved for issue in accordance with a resolution of the Board of
Directors on April 22. 2025

As per our report of even date

For MSKAK Associates For and on behalf of the Boatd of Directors

Chartered Accountants Choice International Limited

ICAI Firm Registration Number 105047W C.IN-I.67190MH1993PLC071117

Sd/- Sd/- Sd/- Sd/-

Proteek Khandeiwal Kamal Poddar Arun Kumar Poddar Ajay Kejriwal

Partner Managing Director Executive Director & CEO Director

Membership Number. 139W4 DIN: 01518700 DIN 02819581 DIN: 03051841

Sd/- Sd/-

Manoj Singhania Karishma Shah

Chief Financial Office; Company Secretary

Mumbai I April 22 2025 Mumbai t April 22. 2025

Terms / rights attached to Equity Shares:

1 The Company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their share holding.

2 In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportion to the number of equity shares held by the shareholders.

3 Disclosure statement of Shares issued under ESOP Scheme

During the year ended March 31, 2024, the Company has issued 177,500 (March 31, 2023- Nil) Equity shares under ESOP scheme @ Rs. 10 per share.

4 Disclosure statement of Bonus issue of shares

During the year ended March 31, 2024, the Company has issued 9,96,89,500 (March 31, 2023- 4,97,56,000) equity shares @ Rs. 10 per share.

*Outstanding Loan amount Rs. 2,145.53 lakhs ( March 31, 2023 - Rs. 2,511.30 lakhs) has been taken from Axis Bank Limited .The said loan carries interest at Repo plus 3% which is 9.50% Currently. The Loan is repayable in 83 Eqauted monthly installments of Rs. 31.55 lakhs each. The security details are as given below-

1. Residential Properties of Promotors

2. Freehold land and building at Mumbai in the name of Choice International Limited

* Outstanding Loan Rs.1,437.32 lakhs ( March 31, 2023: Rs. 1,470.47 lakhs) has been taken from Standard Chartered Bank. The said loan carries interest at Repo plus 2.60% which is currently 8.85%. The Loan is repayable in 180 equated monthly installments of Rs. 14.77 lakhs. The loan is secured against Commercial Property in the name of Choice Consultancy Services Private Limited.

* The above represents corporate guarantee utilised for Choice Equity Broking Private Limited is Rs..13,003.43 lakhs (March 31, 2023: Rs.7,892.25 lakhs), for Choice Consultancy Services Private Limited is Rs.7,16.53 lakhs (March 31, 2023: Rs1,889.30 lakhs) and for Choice Finserv Private Limited is Rs.24,682.70 lakhs (March 31, 2023:.6,063.63 lakhs) However the overall sanction amount is Rs.53,990.00 lakhs (March 31, 2023 : Rs. 20,948.00 lakhs). The above bank guarantees have been issued to banks & fianancial institutions on behalf of subsidiaries for their general business purpose.

B Capital Commitments-

During the year March 31, 2024, the Company had entered into a MOU for purchases of lease hold property worth Rs. 2,900.00 lakhs. The Company has already paid Rs. 25.00 lakhs as capital advances in respect of this transaction.

Unrecognised Deferred Tax Assets

Deferred tax assets have not been recognised in respect of the following items, because it is not probable that future taxable profit will be available against which the Company can use the benefits therefrom. This is long term capital loss which can only be set-off against future long term capital gain, which cannot be predicted.

2. Defined benefit plans

Gratuity (post-employment benefits)

The Company provides for gratuity to employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised/approved funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

Maturity profile of gratuity liability and Employer contribution

Expected contributions to post-employment benefit plans for the year ending 31 March 2024 are Rs. Nil/- (as at March 31, 2023: Rs. Nil).

The weighted average duration (based on discounted cash flows) of the defined benefit obligation is 8 years (8 years 2022-23). The expected maturity analysis of undiscounted gratuity is as follows:

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

3. Employee Stock Option Plan

The Company has Choice Employee Stock Option Plan 2022, under which options have been granted to eligible employees to be vested from time to time.

The Company has established share option plans that entitle the employees of the Company and its subsidiary companies to purchase the shares of the Company. Under these plans, holders of the vested options are entitled to purchase shares at the exercise price of the shares determined at the respective date of grant of options.

The key terms and conditions related to the vesting of grants under these plans are continued employment with the company from the date of grant of option till the date of vesting; all options are to be settled by the delivery of shares.

Measurement of fair values

The fair value of the employee share options has been measured using Black-Scholes Option pricing model.

Note: The fair value of the above financial liabilities are approximately equivalent to carrying values as recognised above.

Note 39:- Financial Assets at Fair Value Through Profit or Loss

Note: There are no such financial assets.

Note 40 : Financial Risk Management Objectives and Policies

The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations directly or indirectly. The Company''s principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The below note explains the sources of risk which the entity is exposed to and how the entity manages the risk:

Market Risk

The Company manages market risk through a corporate treasury department, which evaluates and exercises independent control over the entire process of market risk management. The corporate treasury department recommends risk management objectives and policies, which are approved by senior management and Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

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 changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company''s policy is to keep balance between its borrowings at fixed rates of interest. The difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including Fixed deposits with banks and financial institutions and other financial instruments.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made generally in the fixed deposits and for funding to subsidiary company. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.

The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2024 and March 31, 2023 is the carrying amounts as stated in balance sheet except for balances of subsidiary company.

Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.

Note 41 : Capital Management ^{in Lakhs)}

For the purpose of the Company''s capital management, capital includes issued equity share capital, securities premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the value of the share and to reduce the cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company can adjust the dividend payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

Note 42 : Segment Information:

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance. The Group''s chief operating decision maker is the Chief Executive Officer and Managing Director. Pursuant to surrendering its license. the main Business of the Company is investing and financing to the Subsidiaries and providing support services to the Group Companies. Further all activities are carried out within India. Accordingly, Segment Reporting in accordance with Ind Accounting Standard - 108 “Operating Segment” issued by the Institute of Chartered Accountants of India and adopted by Companies (Accounting Standard) Rules, 2015 is not applicable to the Company.

Note 51 : Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

Note 52 : Relationship with Struck off Companies:

The Company has not entered in any transactions with companies struck off under section 248 of the Companies Act ,2013. or section 560 of Companies Act 1956.

Note 53 : Expenditure on Corporate Social Responsibility:

As per Section 135 of the Companies Act, 2013, the company is not mandatorily required to spend on corporate social responsibility (CSR) activities.

Note 54 : Registration of charges or satisfaction with Registrar of Companies (ROC)

The Company has completed the process of creation and statisfaction the charges with Registrar of Companies (ROC) in due course of time.

Note 55 : Title deeds of immovable properties not held in name of the Company

There are no instances where the title deeds of immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are not held in the name of the Company.

Note 56 : Compliance with approved scheme(s) of Arrangements

The Company has not entered in any transaction which is required to be complied with approved scheme(s) of arrangement.

Note 57 : The Social Security Code 2020

The Code on Social Security 2020 (‘the Code'') relating to employee benefits, during the employment and postemployment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued. The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

Note 58 : Subsequent Event

There have been no events after the reporting date that require disclosure in these financial statements.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations directly or indirectly. The Company''s principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents that derive directly from its operations.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including Fixed deposits with banks and financial institutions and other financial instruments.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made generally in the fixed deposits and for funding to subsidiary company The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.

The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2023 and March 31, 2022 is the carrying amounts as stated in balance sheet except for balances of subsidiary company.

Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.

Market Risk

The Company manages market risk through a corporate treasury department, which evaluates and exercises independent control over the entire process of market risk management. The corporate treasury department recommends risk management objectives and policies, which are approved by senior management and Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

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 changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company''s policy is to keep balance between its borrowings at fixed rates of interest. The difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

Equity price risk

The Company''s investments in non listed equity securities are accounted at cost in the financial statements net of impairment . The expected cash flows from these entities are regularly monitored internally and also independently , wherever necessary to identify impairment indicators.

NOTE 47 : UNDISCLOSED INCOME:

There have been no transactions which have not been recorded in the books of accounts, that have been surrendered or disclosed as income during the year ended March 31,2023 and March 31, 2022, in the tax assessments under the Income Tax Act, 1961. There have been no previously unrecorded income and related assets which were to be properly recorded in the books of account during the year ended March 31, 2023 and March 31, 2022.

NOTE 48 : UTILISATION OF BORROWINGS AVAILED FROM BANKS AND FINANCIAL INSTITUTIONS:

The borrowings obtained by the Company from financial institution has been applied for the purposes for which such loans were was taken.

NOTE 49 : DISCLOSURE RELATING TO BENAMI PROPERTY HELD:

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder

NOTE 50 : WILFUL DEFAULTER:

The Company has not been declared wilful defaulter by any bank or financial institutions or government or any government authority.

NOTE 51 : COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES:

The Company has complied with the number of layers prescribed under clause 87 of section 2 of the Companies Act, 2013 read with Companies (restriction on number of layers) Rules, 2017

NOTE 52 : DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

NOTE 53 : RELATIONSHIP WITH STRUCK OFF COMPANIES:

The Company has not entered in any transactions with companies struck off under section 248 of the Companies Act ,2013. or section 560 of Companies Act 1956.

NOTE 54 : EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY:

As per Section 135 of the Companies Act, 2013, the Company is not mandatorily required to spend on corporate social responsibility (CSR) activities.

NOTE 55 : REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

The Company has completed the process of creation and satisfaction the charges with Registrar of Companies (ROC) within the statutory timeline.

NOTE 56 : TITLE DEEDS OF IMMOVABLE PROPERTIES NOT HELD IN NAME OF THE COMPANY

There are no instances where the title deeds of immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are not held in the name of the Company.

NOTE 57 : COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

NOTE 58 : THE SOCIAL SECURITY CODE, 2020

The Code on Social Security 2020 (‘the Code'') relating to employee benefits, during the employment and postemployment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued. The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

NOTE 59:SUBSEQUENT EVENT

There have been no events after the reporting date that require disclosure in these financial statements.

1. Background

Choice International Limited ("Cl L"/ the "Company") is incorporated in India as a public limited company and registered with Reserve Bank of India as Non-Deposit Taking Non-Systemically Important Non-Banking Financial Services Company. The Company is engaged in financial services business comprising of lending, investments and advisory services.

Rights, preferences and restrictions attached to each class of shares -

The Company has only one class of share capital, i.e., equity shares having face value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share. The Shareholders are entitled to interim dividend if proposed by the Board of Directors. The Final dividend is subject to approval of theshareholders in theAnnual General Meeting.

2 MONEY RECEIVED AGAINSTSHARE WARRANTS

During the previous year the Company has received application money of Rs.10/- each against preferential issue of 10,000,000 share warrants. These warrants were converted into 10,000,000 Equity shares of Rs.1 0/- each face value with Rs.30/- per share as securities premium. The proceeds were utilised for the purpose it was raised other than temporary deployment.

*The Management has created a statutory reserve ofRs.4,603,000./-(PY- Rs.5,1 76,000/-) as per the provisions of section 45-IC of Reserve Bankof India Act, 1934.

**Pursuant to the Revised AS 1 0 "Accounting for Fixed Assets", the Company has revalued freehold lands at fair market value, under revaluation model. Pursuant to the foregoing, during the current year, property, plant & equipment increased by Rs.41 7,022,090/- and Reserves & Surplus increased by Rs.41 7,022,090/.

*The Company has sold its 1 00% holding in Choice E-Commerce Private Limited @ Rs.13.16 per equity share on March 26,2018

** The Company has purchased 1 00% holding in Choice Retail Solutions Private Limited @ Rs.0.001 per equity share on December06,2017.

*** During the yearthe Company has made investment in Kisan Mouldings Limited in 450,000 equity shares of Rs.118.90/- per share on October 17,201 7.

****The Company has purchased 604,960 equity shares of Jaatvedas Construction Co Private Limited on November 28, 201 7 @ Rs.248/-per share & subsequently sold 80,980 shares at the same price on March 27,201 8.

*****During the year the Company has made investment in Gini& Jony Limited in 400,000 equity shares @ Rs.11 6.40/- per share on August 07,2017.

3 Employee benefit plans:

The Company has classified the various benefits provided to employees as under:

1. Defined Contribution Plan

During the year, the Company has incurred and recognised the following amounts in the Statement of Profit and Loss:

*Provisioning norms shall be applicable as prescribed in these Directions.

**As peraccounting standard of ICAI.

*** Quoted Investment are disclosed at Market Value and unquoted investments are disclosed at Break-up Value & FairValue unless Fair Value of the investments are available

4. Choice Finserv Private Limited, a wholly owned subsidiary of the Company, received its Certificate of Registration (CoR) vide registration number N-13.0221 6 dated January 1 2, 201 8 from the Reserve Bank of India on January 1 5, 201 8 to carry on the activities as a Non-Deposit taking Non-Banking Finance Company. The Board of Directors'' of the Company at their meeting held on February 1 2, 201 8 have approved the proposal to conduct the NBFC business from Choice Finserv Private Limited and to surrender the company''s NBFC license within six months from date of the CoR. On March 30, 2018, the shareholders of the Company have approved the same vide postal ballot.

5. The main Business of the Company is Non-Banking Finance activities. All other activities revolve around the main business. Further all activities are carried out within India. As such there are no separate reportable segments as per Accounting Standard (AS)-17 on "Segment Reporting" prescribed underSection 133 of the CompaniesAct, 201 3.

6. The comparative financial information of the Company for the year ended March 31, 201 7 was audited by the M/s Gupta Shyam& Co. (previous auditors of the Company).

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

1. OTHER NOTES FORMING PART OF FINANCIAL STATEMENTS

2. Nature of business :

The company is a Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in investment, lending and allied activities. The company received the certificate of registration from the RBI on February 26,1998, enabling the company to carry on business as a Non-Banking Finance Company.

3. Statutory reserve:

The management has created a statutory reserve of X 3,321,000/-(PY- X 2,860,000/-) as per the provisions of section 45-IC of Reserve Bank of India Act, 1934.

4. In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

5. Balances of the trade receivables, trade payables, loans & advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements.

6. Effective from 01.04.2014, the company has charged depreciation based on the revised remaining useful life of assets as per the requirement of Schedule II of the Companies Act,2013. Due to this, depreciation charge is higher by Nil (PY- X 23,54,251/-) for the year ended on March 31, 2016.

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

8. Employee benefit plans :

Defined benefit plans

The Company offers the gratuity as employee benefit schemes to its employees:

The following table sets out the funded status of the Gratuity and the amount recognized in the financial statements:

9. Schedule as required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

1. SHARE CAPITAL

Rights, preferences and restrictions attached to each class of shares -

The company has only one class of share capital, i.e. equity shares having face value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.

2. OTHER NOTES FORMING PART OF FINANCIAL STATEMENTS A Nature of business :

A Nature of business

The company is a Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in investment, lending and allied activities. The company received the certificate of registration from the RBI on February 26,1998, enabling the company to carry on business as a Non-Banking Finance Company.

B Statutory reserve:

The management has created a statutory reserve of Rs. 2,860,000/- { PY-Rs. 2,750,000/-) as per the provisions of section 45-1C of Reserve Bank of India Act, 1934.

C Corporate social responsibility:

Although the company does not fall within the purview of Corporate Social Responsibility as per section 135 of the Companies Act 2013,but the company has contributed towards various corporate social responsibility Initiatives like supporting under-privileged In education, medical treatments, etc. and various other charitable and noble aids, voluntarily.

D In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

E Balances of the trade receivables, trade payables, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial statements.

F Effective from 01.04.2014, the company has charged depreciation based on the revised remaining useful life of assets as per the requirements of Schedule II of the Companies Act,2013. Due to this, depreciation charge is higher by Rs. 23,54,251/ for the year ended on March 31, 2015.

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

H Contingent liabilities not provided for: 31/Mar/15 31/Mar/14

Corporate guarantees to banks for subsidiaries -

Choice Equity Broking Pvt. Ltd. 1,815,600,000 1,820,000,000

Choice Merchandise Broking Pvt. Ltd. 50,000,000 20,000,000

I Employee benefit plans :

Defined benefit plans

The Company offers the gratuity as employee benefit schemes to its employees:

J (i) Related Party Disclosure :

Details of Related Parties -

Description of Relationship Names of Related Parties

a. Subsidiary Companies Choice Capital Advisors Pvt. Ltd.

Choice Corporate Services Pvt. Ltd.

Choice Equity Broking Pvt. Ltd.

Choice Merchandise Broking Pvt. Ltd

Choice Business Services Pvt. Ltd.

Choice Wealth Management Pvt. Ltd.

Choice Insurance Brokers Pvt. Ltd.

b. Associate Companies Aqua Pumps Infra Ventures Limited (APIVL)

Choice Realty Pvt. Ltd. (Subsidiary of APIVL)

c. Key Management Personnel Kamal Poddar (Managing Director) (KMP) and their relatives Hemlata Poddar (Non-executive Director)

Manoj Singhania (CFO)

Mahavir Toshniwal (Company Secretary)

Savita Singhania (Relative of KMP)

Arun Poddar (Relative of KMP)

Sonu Poddar (Relative of KMP)

d. Individuals owning directly Sunil Patodia indirectly interest in voting power that gives them control Vinita Patodia & their relatives Anil Patodia

Archana Patodia

e. Enterprises over which (c) S. K. Patodia & Associates & (d) are able to exercise significant influence The Byke Hospitality Ltd.

Hotel Relax Pvt. Ltd.

Manbhari Biofuel Pvt. Ltd.

S. K. Patodia Advisory Services Pvt. Ltd.

Upton Infrastructure Pvt. Ltd.

Aqua Pumps Pvt. Ltd.

M/s. Shree Shakambhari Exim

Anil Patodia HUF

Sunil Patodia HUF

Arun Poddar HUF

Kamal Poddar HUF

J (ii) Details of Related Parties with whom transaction entered during the year:-

Description of Relationship Names of Related Parties

a. Subsidiary Companies Choice Capital Advisors Pvt. Ltd.

Choice Corporate Services Pvt. Ltd.

Choice Equity Broking Pvt. Ltd.

Choice Merchandise Broking Pvt.Ltd.

Choice Business Services Pvt. Ltd.

Choice Wealth Management Pvt. Ltd.

b. Associate Companies Aqua Pumps Infra Ventures Limited (APIVL)

Choice Realty Pvt. Ltd. (Subsidiary of APIVL)

c. Key Management Personnel Kamal Poddar (Managing Director) (KMP) Manoj Singhania ( CFO)

Savita Singhania (Relative of KMP)

e. Enterprises over which (c) & S. K. Patodia & Associates (d) are able to exercise significant influence The Byke Hospitality Ltd.

Aqua Pumps Pvt. Ltd.

1. Rights, preferences and restrictions attached to each class of shares -

The company has only one class of share capital, i.e. equity shares having face value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.

2. Nature of business:

The company is a Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in investment, lending and allied activities. The company received the certificate of registration from the RBI on February 26, 1998, enabling the company to carry on business as a Non- Banking Finance Company.

3. Statutory reserve:

The management has created a statutory reserve of Rs. 2,750,000/- (PY - Rs. 2,250,000/-) as per the provisions of section 45-IC of Reserve Bank of India Act, 1934.

4. Corporate social responsibility:

Recognising the responsibilities towards society, as a part of ongoing activities, the company has contributed towards various corporate social responsibility initiatives like supporting under-privileged in education, medical treatments, etc. and various other charitable and noble aids.

5. In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

6. Balances of the trade receivables, trade payables, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements.

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

8. Contingent liabilities not provided for: 31/Mar/14 31/Mar/13

Corporate guarantees to banks for subsidiaries -

Choice Equity Broking Pvt. Ltd 1,820,000,000 590,000,000

Choice Merchandise Broking Pvt. Ltd. 20,000,000 20,000,000

H. Employee benefit plans:

Defined benefit plans

The Company offers the gratuity as employee benefit schemes to its employees:

A. Nature of business :

The company is a Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in investment, lending and allied activities. The company received the certificate of registration from the RBI on February 26, 1998, enabling the company to carry on business as a Non-Banking Finance Company.

B. Statutory reserve :

The management has created a statutory reserve of Rs 22,50,000/- (PY - Rs 20,00,000/-) as per the provisions of section 45-IC of Reserve Bank of India Act, 1934.

C. Corporate social responsibility :

Recognising the responsibilities towards society, as a part of ongoing activities, the company has contributed towards various corporate social responsibility initiatives like supporting under-privileged in education, medical treatments, etc. and various other charitable and noble aids.

In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value

D. on realisation in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

E. Balances of the trade receivables, trade payables, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements.

Previous year''s figures have been regrCouped / reclassified wherev r necessary to correspond with the current

F. hoice International Limited year''s classification / disclosure.

Choice International Limited Accompanying notes to the financial statements as at March 31, 2013

G. Employee benefit plans :

Defined benefit plans

The Company offers the gratuity as employee benefit schemes to its employees:

A. Monies received against Share Warrants

The Board of Directors of the Company at their meeting held on August 12, 2011 and as approved at its Annual General Meeting held on September 30, 2011 have resolved to create, offer, issue and allot up to 25,00,000 warrants, convertible into 25,00,000 equity shares of Rs.10/- each on a preferential allotment basis, pursuant to Section 81(1 A) of the Companies Act, 1956, at a conversion price of Rs.81/- per equity share of the Company, arrived at in accordance with the SEBI Guidelines in this regard and subsequently these warrants were allotted on December 21,2011 to the promoters and non-promoters, and the company has received the amount of Rs.6,02,47,500 as application money which is more than the minimum limit prescribed as per SEBI guidelines. The warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before June 20, 2013. In the event the warrants are not converted into shares within the said period, the Company is eligible to forfeit the amounts received towards the warrants.

B. In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The Provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

C. Balances of the trade receivables, trade payables, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial statements.

D. Segment Information

The Company has identified operating segments as its primary segment. Operating segments are primarily NBFC operations and Investment Banking services. Revenues and expenses directly attributable to segments are reported under each reportable segment. All other expenses which are not attributable or allocable to segments have been disclosed as unallowable expenses. Fixed assets used in the company's business or Liabilities have not been identified to any reportable segment, as the fixed assets are used interchangeably between segments. It is not possible to furnish segment disclosure relating to total assets and liabilities of the company.

E. Statutory Reserve

The management has created a Statutory Reserve of Rs.20,00,000/- (PY Rs.67,00,000/-) as per the provisions of Section 45-IC of Reserve Bank of India Act, 1934.

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

1) Previous year's figures have been regrouped / reclassified / rearranged / recast wherever necessary. Amounts and other disclosures for the preceeding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2) Balances of the Debtors, Creditors, Advances and balances of Deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial statements.

3) In the opinion of management, the Current Assets and Advances have the value as stated in the balance sheet, if realised in the ordinary course of business.

4) There is no outstanding dues of Micro and Small Enterprises suppliers as defined under The Micro, Small and Medium Enterprises Development Act, 2006.

5) Based on the guiding principles stated in Accounting Standard 17 "Segment Reporting", the management does not recognise any distinguishable component of the company that is engaged in providing an individual product or service or a group of related products or services. Hence the disclosure requirements of AS- 17 in this regard is not applicable.

6) Contingent Liabilities:

The company has given Corporate Guarantees of Rs. 3 crore to the Axis Bank for its subsidiary Choice Equity Broking Pvt. Ltd. and Rs.1 crore to the Axis Bank for its subsidiary Choice Merchandise Broking Pvt. Ltd. Since this is a contingent liability no provision has been made in the financial statements.

7) The Company has Unclaimed Dividend of Rs. 65,715/- as on 31st March 2011 (P.Y. Rs. 21,866/- representated by the demand drafts issued but not presented in bank.)

8) The management has created a Statutory Reserve of Rs. 6,700,000/-, (P.Y. Rs. 5,400,000/-) as per the provisions of Section 45-IC of Reserve Bank of India Act, 1934.

9) Related Party Disclosures:

List of Related Parties -

A. Key Management Personnel - Kamal Poddar (Managing Director) & their relatives Hemlata Poddar (Non-Executive Director)

Arun Poddar

B. Subsidiaries - Choice Equity Broking Private Limited

Choice Merchandise Broking Private Limited

Choice Insurance Brokers Private Limited

Choice Business Services Private Limited

Choice Capital Advisors Private Limited

Choice Wealth Management Private Limited Choice Realty Private Limited

C. Associates - Zenu Infotech Limited

D. Individuals owning Vinita Patodia directly or indirectly Sunil Patodia interest in voting power Anil Patodia that gives them control Archana Patodia & their relatives -

E. Enterprises over which Sunil C. Patodia HUF (A) & (D) are able to Anil C. Patodia HUF exercise Significant S. K. Patodia & Influence - Associates Hotel Relax Private Limited S. K. Patodia Advisory Services Pvt. Ltd. Manbhari Biofuel Private Limited Upton Infrastructure Private Limited M/s. Shree Shakambhari Exim Aqua Pumps Private Limited

V. Generic Names of Principle Products / Service of Company:

Name of the Product / Service Non-Banking Finance Company

1) Balances of the debtors, creditors, advances and balances of deposits are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material difference affecting the current years financial statements.

2) In the opinion of management, the current assets and advances have the value as stated in the balance sheet, if realised in the ordinary course of business.

3) The management has created a statutory reserve of RS. 5,400,000/- as per the provisions of section 45-IC of Reserve Bank of India Act, 1934.

4) Based on the guiding principles stated in accounting standard 17 "Segment reporting", the management does not recognise any distinguishable component of the company that is engaged in providing an individual product or service or a group of related products or services. Hence the disclosure requirements of AS-17 in this regard is not applicable.

5) In opinion of the management there is no contingent liabilities as on 31 st March 2010. (RY. Contingent liability not provided for in respect ofsebi compliances of Rs. 185,000/-)

6) The company has unclaimed dividend of Rs.22,478/- as on 31 st March 2010 and the same is represented by the demand drafts issued but not presented in bank. (RY. - NIL)

7) During the year the company has issued 2,500,000 preferential equity shares of Rs.10/- each at a premium of Rs.5/- vide special resolution passed at extra ordinary general meeting held on 18th May, 2009.

8) Related Party Disclosure List of Related Parties:-

A. Key Management Personnel & their relatives

Kamal Poddar (Managing Director) Hemlata Poddar (Non-Executive Director) Arun Poddar

B. Subsidiaries

Choice Equity Broking Private Limited Choice Merchandise Broking Private Limited Choice Insurance Brokers Private Limited Choice Business Services Private Limited Choice Capital Advisors Private Limited Choice Wealth Management Private Limited Choice Realty Private Limited

C. Associates Zenu Infotech Limited

D. Individuals owning directly or indirectly interest in voting power that gives them control & their relatives

Vinita Patodia Sunil Patodia Anil Patodia Archana Patodia

E. Enterprises over which (A) & (D) are able to exercise significant influence

Sunil C. Patodia HUF

Anil C. Patodia HUF

S. K. Patodia & Associates

Hotel Relax Private Limited

S. K. Patodia Advisory Services Private Limited

Manbhari Biofuel Private Limited

M/s. Shree Shakambhari Exim

Aqua Pumps Private Limited