Notes to Accounts of Sumedha Fiscal Services Ltd.

Mar 31, 2025

1.14 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when there is a present obligation as a result of a past event and it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the
amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. The Company also discloses present obligations for which a reliable
estimate cannot be made as a contingent liability. When there is a possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets are not recognised but are disclosed when an inflow of economic benefits is probable.

1.15 Employee Benefits

1.15.1 Short-term Employee Benefits

These are recognised at the undiscounted amount as expense for the year in which the related service is rendered.

1.15.2 Other Long-term Employee Benefits (Unfunded)

The cost of providing long-term employee benefits is determined using Projected Unit Credit Method with
actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost
are recognised immediately in the Statement of Profit and Loss for the period in which they occur. Long term
employee benefit obligation recognised in the Balance Sheet represents the present value of related obligation.

1.15.3 Post-employment Benefit & Plans

Contributions under Defined Contribution Plans payable in keeping with the related schemes are recognised as
expenditure for the year.

In case of Defined Benefit Plans, the cost of providing the benefit is determined using the Projected Unit Credit
Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses are

recognised in full in the Other Comprehensive Income for the period in which they occur. Past service cost is
recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a
straight-line basis over the average period until the benefits become vested. The retirement benefit obligation
recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for
unrecognised past service cost, if any, and as reduced by the fair value of plan assets, where funded. Any asset
resulting from this calculation is limited to the present value of any economic benefit available in the form of
refunds from the plan or reductions in future contributions to the plan.

1.16 Impairment of Non-Financial Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher on an asset’s fair value less costs of disposal and value in use.
For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash flows which are largely independent of the cash flows from other assets or group of assets (cash-generating units).
Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each
reporting period.

1.17 Segment Reporting

1.17.1 Identification of segment

The Company has identified that its operating segments are the primary segments. The Company’s operating
businesses are organized and managed separately according to the nature of products, with each segment
representing a strategic business unit and offering different products and serving different markets.

1.18 Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are
charged to the Statement of Profit and Loss.

1.19 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and
settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be
enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the
counterparty.

1.20 Revenue Recognition

Revenue is recognised when control of the goods or services are transferred to the customer at an amount that reflects the
consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is measured
based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties.

The specific recognition criteria followed by the Company are described below:

1.20.1 Sale of Services

Timing of recognition: Revenue is recognised when no significant uncertainty as to its determination exists. The
primary business of the Company is financial consultancy as Merchant banker and brokerage at NSE and BSE.
The revenue in consultancy is recognised in terms of mandate and on completion of the assignment. The
brokerage income is recognised when contract of sale/purchase of equity is completed.

Goods and Services Tax (GST) is not received by the Company on its own account. Rather it is tax collected on
the value added to the product by the seller on behalf of the Government. Accordingly, it is excluded from
revenue.

Measurement of revenue: Estimates of revenues, costs or extent of progress towards completion are revised if
circumstances change. Any resultant increases or decreases in estimated revenues or costs are reflected in the
Statement of Profit and Loss in the period in which the circumstances that give rise to the revision become known
by management.

1.20.2 Sale of Goods

Revenue is recognised when control of the goods are transferred to the customer at an amount that reflects the
consideration to which the Company expects to be entitled in exchange for those goods.

1.20.3 Insurance and other Claims / refunds

Insurance and Other claims are recognized when there is a reasonable certainty of recovery.

1.20.4 Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate
applicable.

1.20.5 Dividend

Dividend is recognised when the right to receive the payment is established.

1.21 Accounting for Taxes on Income

Provision for current tax is made as per the provisions of the Income Tax Act, 1961.

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at
the reporting date. Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Management periodically evaluates positions taken in the tax returns
with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements at the reporting date. Deferred income tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period
and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is
settled.

Deferred Tax Liabilities are recognised for all temporary taxable differences. Deferred tax assets are recognised for all
deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available
to utilize those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are
offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.

1.22 Recent pronouncements

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Third Amendment Rules 2024,
dated 28th September 2024, to amend the following Ind AS which is effective from 30th September 2024.

Amendment to Ind AS 104

An insurer or insurance company may provide its financial statement as per Ind AS 104 for the purposes of consolidated
financial statements by its parent or investor or venturer till the Insurance Regulatory and Development Authority notifies
the Ind AS 117 and for this purpose, Ind AS 104 shall, as specified in the Schedule to these rules, continue to apply.

The said amendment is not applicable to the Company and accordingly, has no impact on the Company’s financial
statements.

17.2 Rights, preferences and restrictions attached to shares

The Company has only one class of issued shares i.e. Equity Shares having face value of Rs. 10 per share. Each holder of Equity
Shares is entitled to one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

The shareholders have the right to declare and approve dividend, as proposed by the Board of Directors for any financial year, to
be paid to the members according to their rights and interest in the profits. However, no larger dividend shall be declared than is
recommended by the Board of Directors.

35) DUES TO MICRO ENTERPRISES AND SMALL ENTERPRISES

The Company has no dues to micro enterprises and small enterprises as at 31st March, 2025 and 31st March, 2024 in the
Standalone Financial Statements based on the information received and available with the Company.

36) BALANCE CONFIRMATION

Outstanding balances of Trade Receivables, Advances are subject to confirmation from the respective parties and consequential
adjustments arising from reconciliation if any. The management, however, is of the view that there will be no material
discrepancies in this regard.

37) EMPLOYEE BENEFITS

A. Defined Benefit Plans

Defined Benefit Plans expose the Company to actuarial risk such as: Interest Rate Risk, Liquidity Risk, Salary Escalation
Risk, Demographic Risk and Regulatory Risk.

i. Interest Rate Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result
in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the
liability (as shown in the Standalone Financial Statements).

ii. Liquidity Risk: This is the risk that the Company is not able to meet the short-term benefit payouts. This may arise due
to non-availability of enough cash/ cash equivalents to meet the liabilities or holding of illiquid assets not being sold in
time.

iii. Salary Escalation Risk: The Present Value of the defined benefit plan is calculated with the assumption of salary
increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from
the rate of increase in salary in future for plan participants from the rate of increase in salary used to determine present
value of obligation will have a bearing on the plan’s liability.

iv. Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The
Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

v. Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972(as
amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in
the maximum limit on gratuity of Rs. 20,00,000).

Gratuity Plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled
to gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The above Scheme is funded.

Level 2 hierarchy includes financial instruments that are not traded in active market. This includes instruments valued using
observable market data such as yield etc. of similar instruments traded in active market.

Level 3 if one or more significant inputs are not based on observable market data, the instrument is included in level 3. This is
the case for unlisted equity instruments and certain debt instruments which are valued using assumptions from market
participants.

(iii) Valuation techniques used for valuation of instruments categorized as level 3

For valuation of investments in equity shares of associates which are unquoted, peer comparison has been performed
wherever available. Valuation has been primarily done based on the cost approach wherein the net worth of the Company
is considered and the price to book multiple is used to arrive at the fair value. In cases where income approach was
feasible valuation has been arrived using the earnings capitalization method. For inputs that are not observable for these
instruments, certain assumptions are made based on available information. The most significant of these assumptions are
the discount rate and credit spreads used in the valuation process. For valuation of investments in debt securities
categorized as level 3, market polls which represent indicative yields are used as assumptions by market participants
when pricing the asset.

(iv) Financial Instrument- Financial Risk Management

The Company’s activity exposes it to various risks such as market risk, liquidity risk and credit risks. This section explains
the risks which the Company is exposed to and how it manages the risks.

A. Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange risk rates, interest rates and equity prices
which will affect the Company’s income or the value of its holdings of financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while optimising the
return. The Company’s main business activity, financial consulting, has no or limited entry barrier. Entry of Banks and
large consulting firms has increased competition.

(i) 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 is exposed to interest rate risk on financial liabilities such as
long-term borrowings.

The Company is also exposed to interest rate risk on its financial assets that include fixed deposits.

(ii) Price Risk

The Company’s exposure to equity securities price risk arises from investments held by the Company and
classified in the Balance Sheet as fair value through Profit or Loss. The majority of the Company’s equity
investments are publicly traded.

(iii) Sensitivity analysis- Equity price risk

The table below summarises the impact of increase/decrease of the market price of the listed instruments on the
Company’s equity and profit for the period. The analysis is based on the assumption that market price had
increased by 2% or decreased by 2 %.

B. Liquidity Risk

The Company determines its liquidity requirements in the short, medium and long term. This is done by drawing up cash
forecast for short and medium term requirements and strategic financing plans for long term needs.

The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant
delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining
adequate cash and cash equivalent position. This is generally carried out in accordance with practice and limits set by the
Group.

(i) Maturity Analysis

The Company’s financial liabilities into relevant maturity groupings based on their contractual maturities as
disclosed in the table are the contractual undiscounted cash flows. The impact of discounting is not significant.

C. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligation, and arises principally from the Company’s receivables from customers, stock
exchanges and clearing members. The carrying amount of financial assets represents the maximum credit
exposure. Security deposit with stock exchanges and clearing members mainly represents the margin money to
cover the regular trading exposure in stock exchanges backed by margin collected from clients and has very
insignificant credit risk.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each client.
However, management also considers the factors that may influence the credit risk of its customer base, including
the default risk associated with the industry.

Financial assets are written off when there is no expectation of recovery such as debtors failing to engage in a
repayment plan with the Company. Where loans and receivables have been written off, the Company continues to
engage in enforcement activity to attempt to recover the receivable due. Where necessary, the Company has
adopted the policy of creating expected credit loss where recoveries are not made, these are organised as expense
in the Statement of Profit and Loss.

43) Segment Reporting

The Company is primarily engaged in the business of “Investment Banking” which constitutes a single reporting segment and
the Management does not monitor the operating results of its business units as a whole for the purpose of making decisions
about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss in the
standalone financial statements, thus, there are no additional disclosures to be provided under Ind AS 108- “Operating
Segments.”

44) Capital Advances

Capital Advances represent an amount of Rs. 62,560.00 (in hundreds) towards the booking of two flats at Mumbai against
total consideration of Rs. 84,500.00 (in hundreds) in the Financial Year 2008. The Company is yet to receive the possession
and therefore due to abnormal delay, the Company had filed the case at the RERA court, Mumbai against builder in Financial
Year 2019-20. In the Financial Year 2024-25, the RERA court has ordered the Builder to refund the entire amount paid by the
Company. In the opinion of the management, no provision is required in this regard.

45) The Board of Directors have recommended a dividend at the rate of Re. 1 per share (face value Rs. 10) (previous year Re.
1.00) for the year ended 31st March, 2025, subject to approval of the shareholders at the ensuing Annual General Meeting.

As per requirements of Ind AS, the Company is not required to provide for proposed dividend declared after the Balance Sheet
date. Consequently, no provision has been made in respect of the aforesaid dividend proposed by the Board of Directors for
the year ended 31st March, 2025. Had the company continued with the creation of the provision of the proposed dividend as
at the Balance Sheet date, its surplus in the Statement of Profit and Loss would have been lower by Rs. 79,844.24 (in
Hundreds) (Previous Year Rs. 79,844.24 (in Hundreds)) on account of dividend and the short term provision would have been
higher by the said amount of Rs. 79,844.24 (in Hundreds) (Previous Year Rs. 79,844.24 (in Hundreds)).

46) During the year, Unclaimed Dividend amounting to Rs 2,248.63 (Hundreds) relating to financial
year 2016-17 has been transferred to Investor Education and Protection Fund (IEPF) Account as per Section 124(5) of the
Companies Act, 2013.

47) Additional Regulatory Information:

• The Company does not have any transactions with companies struck off.

• The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

• The Company has complied with the number of layers prescribed under the Companies Act, 2013.

• The Company does not hold any Benami Property by its name.

• The Company has not been declared wilful defaulter by any bank or financial institution or any other lender.

48) Figures have been rounded off to nearest Hundreds.

Signature to Notes 1 to 48

For V. SINGHI & ASSOCIATES For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No.:311017E

(Naveen Taparia) Bhawani Shankar Rathi Bijay Murmuria

Partner Wholetime Director Director

Membership No. 058433 DIN : 00028499 DIN: 00216534

_{Place : Kolkata} Dhwani Fatehpuria Girdhari Lal Dadhich

_{Date : 16}th _{May, 2025} Company Secretary Chief Financial Officer

Membership No. FCS12817

---

Mar 31, 2024

1.14 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. The Company also discloses present obligations for which a reliable estimate cannot be made as a contingent liability. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets are not recognised but are disclosed when an inflow of economic benefits is probable.

1.15 Employee Benefits

1.15.1 Short-term Employee Benefits

These are recognised at the undiscounted amount as expense for the year in which the related service is rendered.

1.15.2 Other Long-term Employee Benefits (Unfunded)

The cost of providing long-term employee benefits is determined using Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Statement of Profit and Loss for the period in which they occur. Long term employee benefit obligation recognised in the Balance Sheet represents the present value of related obligation.

1.15.3 Post-employment Benefit & Plans

Contributions under Defined Contribution Plans payable in keeping with the related schemes are recognised as expenditure for the year.

In case of Defined Benefit Plans, the cost of providing the benefit is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in full in the Other Comprehensive Income for the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, if any, and as reduced by the fair value of plan assets, where funded. Any asset resulting from this calculation is limited to the present value of any economic benefit available in the form of refunds from the plan or reductions in future contributions to the plan.

1.16 Impairment of Non-Financial Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not

be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher on an asset’s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash flows from other assets or group of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

1.17 Segment Reporting

1.17.1 Identification of segment

The Company has identified that its operating segments are the primary segments. The Company’s operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit and offering different products and serving different markets.

1.18 Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to the Statement of Profit and Loss.

1.19 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

1.20 Revenue Recognition

Revenue is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties.

The specific recognition criteria followed by the Company are described below:

1.20.1 Sale of Services

Timing of recognition: Revenue is recognised when no significant uncertainty as to its determination exists. The primary business of the Company is financial consultancy as Merchant banker and brokerage at NSE and BSE. The revenue in consultancy is recognised in terms of mandate and on completion of the assignment. The brokerage income is recognised when contract of sale/purchase of equity is completed.

Goods and Services Tax (GST) is not received by the Company on its own account. Rather it is tax collected on the value added to the product by the seller on behalf of the Government. Accordingly, it is excluded from revenue.

Measurement of revenue: Estimates of revenues, costs or extent of progress towards completion are revised if circumstances change. Any resultant increases or decreases in estimated revenues or costs are reflected in the Statement of Profit and Loss in the period in which the circumstances that give rise to the revision become known by management.

1.20.2 Sale of Goods

Revenue is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods.

1.20.3 Insurance and other Claims / refunds

Insurance and Other claims are recognized when there is a reasonable certainty of recovery.

1.20.4 Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

1.20.5 Dividend

Dividend is recognised when the right to receive the payment is established.

1.21 Accounting for Taxes on Income

Provision for current tax is made as per the provisions of the Income Tax Act, 1961.

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements at the reporting date. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred Tax Liabilities are recognised for all temporary taxable differences. Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

1.22 Recent pronouncements

The Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

31) CORPORATE SOCIAL RESPONSIBILITY (CSR)

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. In accordance with the provisions of the Companies Act, 2013 read with Rules made thereunder, the Company was not required to make any CSR contribution for the Financial Year 2023-24 and 2022-23.

As required, the Company had formed the CSR committee in the earlier years.

32) OPEN INTEREST IN EQUITY INDEX/STOCK FUTURES AS AT 31ST MARCH, 2024

The Company has not entered into any equity index/ stock futures contracts for the year ended 31st March, 2024 and 31st March, 2023.

33) CONTINGENT LIABILITIES AND COMMITMENTS

The Company has Commitments of Rs. 8,809.81 (Hundreds) towards partly-paid up shares and does not have any Contingent Liabilities as on the balance sheet date i.e. 31st March, 2024.

34) INCOME TAX EXPENSE

Reconciliation of tax expense and the accounting profit multiplied by India’s domestic rate:

36) DUES TO MICRO ENTERPRISES AND SMALL ENTERPRISES

The Company has no dues to micro enterprises and small enterprises as at 31st March, 2024 and 31st March, 2023 in the Financial Statements based on the information received and available with the Company.

37) BALANCE CONFIRMATION

Outstanding balances of Trade Receivables, Loans and Advances are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation if any. The management, however, is of the view that there will be no material discrepancies in this regard.

38) EMPLOYEE BENEFITS

A. Defined Benefit Plans

Defined Benefit Plans expose the Company to actuarial risk such as: Interest Rate Risk, Liquidity Risk, Salary Escalation

Risk and Demographic Risk.

i. Interest Rate Risk: The Plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liquidity (as shown in financial statements)

ii. Liquidity Risk: This is the risk that the Company is not able to meet the short-term benefit payouts. This may arise due to non-availability of enough cash/ cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.

iii. Salary Escalation Risk: The Present Value of the above benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary in future for plan participants from the rate of increase in salary used to determine present value of obligation will have a bearing on the plan’s liability.

iv. Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Gratuity Plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is

entitled to gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The above

Scheme is funded.

40) CAPITAL RISK MANAGEMENT

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to the shareholders.

The capital structure of the Company is based on management’s judgment by maintaining balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors’, creditors’ and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain or if necessary adjust its capital structure.

Level 1- hierarchy includes financial instruments valued using quoted market prices. Listed equity instruments and traded debt instruments which are traded in the stock exchanges are valued using the closing price at the reporting date. Mutual funds are valued using the closing NAV.

Level 2- hierarchy includes financial instruments that are not traded in active market. This includes instruments valued using observable market data such as yield etc. of similar instruments traded in active market.

Level 3- if one or more significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity instruments and certain debt instruments which are valued using assumptions from market participants.

(iii) Valuation techniques used for valuation of instruments categorized as level 3.

For valuation of investments in equity shares of associates which are unquoted, peer comparison has been performed wherever available. Valuation has been primarily done based on the cost approach wherein the net worth of the Company is considered and price to book multiple is used to arrive at the fair value. In cases where income approach was feasible valuation has been arrived using the earnings capitalization method. For inputs that are not observable for these instruments, certain assumptions are made based on available information. The most significant of these assumptions are the discount rate and credit spreads used in the valuation process. For valuation of investments in debt securities categorized as level 3, market polls which represent indicative yields are used as assumptions by market participants when pricing the asset.

(iv) Financial Instrument- Financial Risk Management.

The Company’s activity exposes it to various risks such as market risk, liquidity risk and credit risks. This section explains the risks which the Company is exposed to and how it manages the risks.

A. Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange risk rates, interest rates and equity prices which will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company’s main business activity, financial consulting, has no or limited entry barrier. Entry of Banks and large consulting firms has increased competition.

⁽ⁱ⁾ 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 is exposed to interest rate risk on financial liabilities such as long-term borrowings.

The Company is also exposed to interest rate risk on its financial assets that include fixed deposits.

(ii) Price Risk

The Company’s exposure to equity securities price risk arises from investments held by the Company and classified in the Balance Sheet as fair value through Profit or Loss. The majority of the Company’s equity investments are publicly traded.

⁽ⁱⁱⁱ⁾ Sensitivity analysis- Equity price risk

The table below summarises the impact of increase/decrease of the market price of the listed instruments on the Company’s equity and profit for the period. The analysis is based on the assumption that market price had increased by 2% or decreased by 2 %.

B. Liquidity Risk

The Company determines its liquidity requirements in the short, medium and long term. This is done by drawing up cash forecast for short and medium-term requirements and strategic financing plans for long term needs.

The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalents position. This is generally carried out in accordance with practice and limits set by the Company.

(i) Maturity Analysis

The Company’s financial liabilities into relevant maturity groupings based on their contractual maturities as disclosed in the table are the contractual undiscounted cash flows. The impact of discounting is not significant.

C. Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligation, and arises principally from the Company’s receivables from customers, stock exchanges and clearing members. The carrying amount of financial assets represents the maximum credit exposure. Security deposit with stock exchanges and clearing members mainly represents the margin money to cover the regular trading exposure in stock exchanges backed by margin collected from clients and has very insignificant credit risk.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each client. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry.

Financial assets are written off when there is no expectation of recovery such as debtors failing to engage in a repayment plan with the Company. Where loans and receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where necessary, the Company has adopted the policy of creating expected credit loss where recoveries are not made, these are organised as expense in the Statement of Profit and Loss.

44) SEGMENT REPORTING

The Company is primarily engaged in the business of “Investment Banking” which constitutes a single reporting segment and the management monitors the operating results of its business units as a whole for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss in the financial statements, thus, there are no additional disclosures to be provided under Ind AS 108 - “Operating Segments.”

45) CAPITAL ADVANCES

Capital Advances represent an amount of Rs. 62,560.00 (in hundreds) towards booking of two flats at Mumbai against total consideration of Rs. 84,500.00 (in hundreds) in the Financial Year 2008. The Company is yet to receive the possession and therefore due to abnormal delay, the company has filed the case at RERA court, Mumbai against builder in Financial Year 2019-20. In the opinion of the management, no provision is required against the same.

46) The Board of Directors have recommended a dividend at the rate of Re.1 per share (face value Rs. 10) (previous year Re.1.00) for the year ended 31st March, 2024, subject to approval of the shareholders at the ensuing Annual General Meeting.

As per requirements of Ind AS, the Company is not required to provide for proposed dividend declared after the Balance Sheet date. Consequently, no provision has been made in respect of the aforesaid dividend proposed by the Board of Directors for the year ended 31st March, 2024. Had the company continued with the creation of the provision of the proposed dividend as at the Balance Sheet date, its surplus in the Statement of Profit and Loss would have been lower by Rs. 79,844.24 (in Hundreds) (Previous Year Rs. 79,844.24 (in Hundreds)) on account of dividend and the short-term provision would have been higher by the said amount of Rs. 79,844.24 (in Hundreds) (Previous Year Rs. 79,844.24 (in Hundreds)).

47) During the year, Unclaimed Dividend amounting to Rs.1,170.10 (Hundreds) relating to financial year 2015-16 has been transferred to Investor Education and Protection Fund Account as per section 124(5) of the Companies Act, 2013.

48) Additional Regulatory Information:

• The Company does not have any transactions with companies struck off.

• The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

• The Company has complied with the number of layers prescribed under the Companies Act, 2013.

• The Company does not hold any Benami Property by its name.

• The company has not been declared wilful defaulter by any bank or financial institution or any other lender.

49) Figures have been rounded off to nearest Hundreds.

Signature to notes 1 to 49

For V. SINGHI & ASSOCIATES

Chartered Accountants Firm Registration No.: 311017E

For and on behalf of the Board of Directors

(V K. SINGHI) Bhawani Shankar Rathi Bijay Murmuria

_Partner Whole-time Director Director

Membership No. 050051 ^{DIN: 00028499 DIN}: ^00216534

^Dhwam ^Fatehp^uria Girdhari Lal Dadhich

Place: Kolkata ^Comp^any ^Secretary Chief Financial Officer

_{Date : 14}^th _{May, 2024} Membership No. FCS12817

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Mar 31, 2014

(Amount in Rs.)

As at 31st March

Particular 2014 2013

1 CONTINGENT LIABILITY

a) Contingent liabilities not provided for in respect of Guarantee given by 1,30,00,000 1,30,00,000 Canara bank to National Securities Clearing Corporation limited ( Rs. 80 lacs) and Stock Holding Corporation of India Limited (Rs. 50 lacs) #

b) Estimated amount of contracts remaining to be executed on capital 20,01,085 26,84,687 account and not provided for (net of advances)

# : The above bank guarantees extended by Canara Bank is secured by pledge of fixed deposits and also secured by way of equitable mortgage of a company''s Immovable Property. The said facilities are further secured by personal guarantees of three directors of the Company.

2 Revaluation of Office Premises was carried out as on 31.03.96 by an approved Valuer. The revaluation resulted in an increase of Rs. 13,11,255/- in the value of the assets over its net book value as on 31.03.96 which has been credited to Revaluation Reserve. Depreciation for the year ended 31.03.2014 of Rs. 21,373/- on revalued portion has been adjusted with Revaluation Reserve.

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

4 Figures have been rounded off to nearest rupee.

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Mar 31, 2013

1.1 Rights, preferences and restrictions attached to shares

The Company has only one class of issued shares i.e. Equity Shares having par value of Rs.10/- per share. Each holder of Equity Shares is entitled to one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

2 GRATUITY AND POST-EMPLOYMENT BENEFITS PLANS

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than ''The provisions of Gratuity Act, 1972''. The above said scheme is funded.

The following table summarises the components of net benefits / expense recognised in the profit and loss account and the balance sheet for the respective plans.

3 DISCLOSURES OF RELATED PARTY TRANSACTIONS (AS IDENTIFIED & CERTIFIED BY THE MANAGEMENT):

a As per Accounting Standard-18- '' Related Party Disclosures'' issued by the Institute of Chartered Accountants of India, the names of the related parties are given below :

b List of related parties with whom the Company has transacted during the year

i Subsidiary Company SFSL Commodity Trading (P) Ltd.

ii Associate /Joint Venture Concerns SFSL Insurance Advisory Services (P) Ltd.

SFSL Risk Management Services (P) Ltd.

Capita Finance Services Ltd.

U.S. Infotech (P) Ltd.

iii Key Management Personnel Mr. Bhawani Sankar Rathi (Wholetime Director)

Mr. Rajesh Kumar Gupta (Wholetime Director)

Mr. Vijay Maheshwari ( Director)

Mr. Bijay Murmuria ( Director)

iv Enterprise owned or significantly influenced by Superb Estate Services Pvt. Ltd.

Key Management Personnel and their relatives

4 Balances of some of the trade receivables, trade payable, loans and advances incorporated in the books as per balances appearing in the relevant subsidiary records, are subject to confirmation from the respective parties and consequential adjustments arising from reconciliation, if any. The management, however, is of the view that there will be no material discrepancies in this regard.

5 During the year unpaid dividend amounting to Rs. 95,225/- relating to financial year 2004-05 has been transferred to the Investor Education and Protection Fund as per Section 205C of the Companies Act, 1956

6 Historically, the company''s investment in unquoted shares has been done with a view to hold them for long term and thereby earn capital gains, since dividend payout on such investments has generally been irregular. The aforesaid policy has been taken into consideration while computing the provision for income-tax as applicable.

(Amount in Rs.)

As at 31st March

Particular 2013 2012

7 CONTINGENT LIABILITY

a Contingent liabilities not provided for in respect of Guarantee given by 1,30,00,000 1,30,00,000 Canara bank to National Securities Clearing Corporation limited (Rs 80 Lakhs) and Stock Holding Corporation of India Ltd ( Rs 50 Lakhs) #

# The above bank guarantees extended by Canara Bank is secured by pledge of fixed deposits and also secured by way of equitable mortgage of a company''s Immovable Property. The said facilities are further secured by personal guarantees of three directors of the Company.

8 Revaluation of Office Premises was carried out as on 31.03.96 by an approved Valuer. The revaluation resulted in an increase of Rs. 13,11,255/- in the value of the assets over its net book value as on 31.03.96 which has been credited to Revaluation Reserve. Depreciation for the year ended 31.03.2013 of Rs. 21,373/- on revalued portion has been adjusted with Revaluation Reserve.

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

10 Figures have been rounded off to nearest rupee.

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Mar 31, 2012

A) The Company has reserved issuance of 3,42,447 Options under ESOP 2011 which are yet to be granted.

b) During the year the Company has issued 2,00,000 Equity Share of Rs. 10/- each at a Premium of Rs. 21/- per share, against 2,00,000 fully paid convertible share warant of Rs. 31/- each as per terms of allotment.

c) During the year the Company has issued 9,35,484 Equity Shares of Rs. 10/- each at a premium of Rs. 21/- per share to the Brand Equity Treaties Ltd. against one 0% Convertible Debenture of Rs. 2,90,00,000/- as per terms of allotment.

1 GRATUITY AND POST-EMPLOYMENT BENEFITS PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favorable than 'The Payment of Gratuity Act, 1972'. The above said scheme is funded.

The following table summarizes the components of net benefits / expense recognized in the Profit and Loss Account and the Balance Sheet for the respective plans.

Notes :

1 The Company is operating in three main service segments mainly.

a Capital Market Operations comprising of Stock Broking, Investment, Mutual Funds & other products distribution.

b Investment Banking comprising of Loan Syndication, Merchant Banking, Restructuring & Other related advisory services.

c Other comprising of other services area.

Segments have been identified and reported taking into account the nature of services, different risk & return and internal reporting system.

2 Segment Revenue, Results, Assets and Liabilities include the respective amounts identified to each of the segment and amounts allocated on a reasonable basis. Whereas un- allocable Revenue, Results, Assets and Liabilities have been included in "others".

3 Segment liabilities excludes Deferred Tax Liabilities of Rs. 10,476,399/- (Previous year Rs. 7,396,548/- )

B There are no reportable geographical segment.

a) Disclosure in Respect of Material Related Party Transactions during the year

i Mangerial Remuneration paid to Mr. Bhawani Sankar Rathi Rs. 1,158,200/- ( Rs. 1,136,200/-)

ii Rent paid to SFSL Commodity Trading (P) Limited Rs. 900,000/- (Rs. 900,000/-), Superb Estate Services Private Limited Rs. 168,000/- (Rs. 120,000/-), and Mr. Vijay Maheshwari Rs.600,000/- (Rs.600,000/-)

iii Guarantee Commission paid to Mr. Vijay Maheshwari Rs. 125,000/- (Rs. 125,000/-), Mr. Bijay Murmuria Rs. 125,000/- (Rs. 125,000/-).

iv Balance receivable from SFSL Commodity Trading (P) Limited Rs. 1,000,000/- ( Rs. Nil )

v Equity Share Allotted to Capita Finance Services Limited Rs. 3,100,000/- (Rs. Nil), SFSL Risk Management Services Pvt. Limited Rs. 1,550,000/- (Rs. Nil), SFSL Insurance Advisory Services Pvt. Limited Rs. 1,550,000/- (Rs. Nil)

vi Dividend paid to Mr. Vijay Maheshwari Rs. 1,249,776/- (Rs. 1,249,776/-)

(Amount in Rs.) 2 CONTINGENT LIABILITY

Contingent liabilities not provided for in respect of:

a Guarantee given by Canara Bank to National Securities Clearing 13,000,000 13,000,000

Corporation Limited ( Rs. 80 lacs) and Stock Holding Corporation of India Ltd ( Rs. 50 lacs)

b Estimated amount of contracts remaining to be executed on capital 1,349,995 1,349,995 account and not provided for (net of advances)

3 Revaluation of Office Premises was carried out as on 31.03.96 by an approved Valuer. The revaluation resulted in an increase of Rs. 1,311,255/- in the value of the assets over its net book value as on 31.03.96 which has been credited to Revaluation Reserve. Depreciation for the year ended 31.03.2012 of Rs. 21,373/- on revalued portion has been adjusted with Revaluation Reserve.

4 Since the Company is predominantly engaged in broking business, the deposits made with NSE and OTCEI towards acquiring membership of these exchanges, are considered as deposits.

5 Previous year's figures have been regrouped/rearranged, to conform to the classification of the current year, wherever considered necessary and to conform to the requirements of Revised Schedule VI under the Companies Act, 1956.

6 Figures have been rounded off to nearest rupee.

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Mar 31, 2010

As at As at 31.03.2010 31.03.2009

(Rupees) (Rupees)

1 Contingent liabilities not provided for in respect of: Guarantee given by Canara Bank to National Securities 13,000,000 13,000,000

Clearing Corporation limited (Rs 80 lacs) and Stock Holding Corporation of India Ltd (Rs 50 lacs)

2 Estimated amount of contracts remaining to be executed on capital 2,053,125 3,037,500 account and not provided for (net of advances)

3 As per information available with the Company there are no amounts payable or paid during the period which are required to be disclosed as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006.

4 Secured loans

a Term loans (Vehicle Loans) from banks and bodies corporate are secured by hypothecation of respective vehicles.

b Working capital facilities and Bank Guarantees extended by Canara Bank is secured by pledge of fixed deposits and also secured by way of equitable mortgage of an Immovable Property. The said facilities is further secured by personal guarantees extended by three directors of the Company.

c Working capital facilities extended by State Bank of Indore is secured by way of equitable mortgage of an Immovable Property and by Personal Guarantee extended by a Director.

5 Revaluation of Office Premises was carried out as on 31.03.96 by an approved Valuer. The revaluation resulted in an increase of Rs. 1,311,255/- in the value of the assets over its net book value as on 31.03.96 which has been credited to Revaluation Reserve. Depreciation for the year ended 31.03.2010 of Rs. 21,373/- on revalued portion has been adjusted with Revaluation Reserve.

6 Since the Company is predominantly engaged in broking business, the deposits made with NSE and OTCEI towards acquiring membership of these exchanges, are considered as Fixed Assets and no depreciation has been provided on the same.

7 Disclosures of related party transactions:

a List of related parties with whom the Company has transacted during the year i Subsidiary Company SFSL Commodity Trading (P) Ltd.

ii Associate /Joint Venture Concerns SFSL Insurance Advisory Services (P) Ltd.

SFSL Risk Management Services (P) Ltd.

Capita Finance Services Ltd.

U.S. Infotech (P) Ltd.

Seasoft Solutions Pvt. Ltd.

iii Key Management Personnel Mr. Bhawani Shankar Rathi (Wholetime Director)

Mr. Vijay Maheshwari (Director)

Mr. Bijay Murmuria (Director)

iv Relatives of Key Management Personnel Mr. Kartick Maheshwari

Mrs. Garima Maheshwari

v Enterprise owned or significantly Superb Estate Services Pvt. Ltd. influenced by Key Management Personnel and their relative

8 Gratuity and post-employment benefits plans

The Accounting Standard- 15 (Revised 2005) on "Employees Benefits" issued by the Institute of Chartered Accountants of India has been adopted by the Company and Defined Benefit Plans / Long Term Compensated Absences - as per Acturial Valuations as on March 31, 2010 and recognised in the financial statements in respect of Employee Benefit Scheme:

9 Previous years figures have been regrouped/rearranged, wherever necessary.

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Mar 31, 2009

As at 31.03.2009 As at 31.03.2008 (Rupees) (Rupees)

1 Contingent liabilities not provided for in respect of: Guarantee given by Canara Bank to National Securities 13,000,000 13,000,000 Clearing Corporation limited ( Rs 80 lacs) and Stock Holding Corporation of India Ltd ( Rs 50 lacs)

2 Estimated amount of contracts remaining to be executed on capital 3,037,500 5,625,000 account and not provided for (net of advances)

3 As per information available with the Company there are no amounts payable or paid during the period which are required to be disclosed as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006.

4 Secured Loans

a Term loans (Vehicle Loans) from banks and bodies coporates are secured by hypothecation of respective vehicles.

b Working capital facilities and Bank Guarantees extended by Canara Bank is secured by pledge of fixed deposits and also secured by way of equitable mortgage of an Immovable Property. The said facilities are further secured by personal guarantees extended by three Directors of the Company.

c Working capital facilities extended by State Bank of Indore are secured by way of equitable mortgage of an Immovable Property and by Personal Guarantee extended by a Director.

5 Disclosures of related party transactions:

a List of related parties with whom the Company has transacted during the year

i Subsidiary Company SFSL Commodity Trading Pvt. Ltd.

ii Associate /Joint Venture Concerns

SFSL Insurance Advisory Services Pvt. Ltd. SFSL Risk Management Services Pvt. Ltd. Capita Finance Services Ltd. U.S. Infotech Pvt. Ltd. Seasoft Solutions Pvt. Ltd.

iii Key Management Personnel

Mr. Bhawani Shankar Rathi (Whole time Director) Mr. Vijay Maheshwari (Director) Mr. Bijay Murmuria (Director)

iv Relatives of Key Management Personnel

Kartick Maheshwari Garima Maheshwari

6 Revaluation of Office Premises was carried out as on 31.03.96 by an approved Valuer. The revaluation resulted in an increase of Rs 1,311,255/- in the value of the assets over its net book value as on 31.03.96 which has been credited to Revaluation Reserve. Depreciation for the year ended 31.03.2009 of Rs 21,373/- on revalued portion has been adjusted with Revaluation Reserve Account.

7 Since the Company is predominantly engaged in broking business, the deposits made with NSE and OTCEI towards acquiring menbership of these exchanges, are considered as Fixed Assets and no depreciation has been provided on the same.

8 Gratuity and post-employment benefits plans

The Accounting Standard- 15 (Revised 2005) on "Employees Benefits" issued by the Institute of Chartered Accountants of India has been adopted by the Company effective from April 1, 2007. In accordance with the above Standard the additional obligations of the Company, on account of employee benefits, based on independent acturial valuation amounting to Rs 1 7,903/- have been accounted by debiting the opening balance of the Profit/Loss Account as on April 1, 2007 as per the transitional provisions of AS 15 (Revised 2005).

9 Previous years figures have been regrouped/rearranged, wherever necessary.