The company is engaged in the business of trading in shares and securities, for the which level I valuation technique is useful for fair value measurement. The company does not require the hierarchy of level II and level III valuation technique for measurement of financial assets and liabilities.

C. Financial Risk management- Objectives and policies

The Company’s financial liabilities comprise mainly of borrowings, payable to clearing house and other payables. The Company’s financial assets comprise mainly of investments, bank deposits with more than 12 months of maturities, cash and cash equivalents, other balances with bank, balance with clearing house and other receivables.

The Company is exposed to Credit risk and Liquidity risk. The board of directors oversees the management of these financial risks.

a) 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. Any adverse effect on the interest rate on bank deposit will fluctuate the future cash flow on bank deposits.

The company does have fixed interest bearing borrowings from the related parties during the year as and when required for the business purpose. The company is not exposed to significant interest rate risk at the respective reporting dates.

b) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The company is not exposed to changes in any foreign currency as the company operates mainly in India.

c) Other Price Risk

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. As the company is into the hedging business of trading in equity futures and options, the other price risk arising from financial assets such as trading in equity instruments and underlying commodities is minimal.

d) Credit Risk

Credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as investment in mutual funds, bank deposits with more than 12 months of maturities, other balances with banks, and other receivables.

The company is member of NSE and is doing trading in equity futures and options on its own account The settlement of trade is done in a day or two, the credit risk arising from the trade receivable is minimal.

Credit risk arising from investment in mutual funds, derivative financial instruments, bank deposits and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the international credit rating agencies.

e) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company's exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents.

D. Capital Management

For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. As at 31st March, 2023, the Company has only one class of equity shares and has no long term debt. Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for the re-investment into business based on its long term financial plans.

a. During the year current liabilities has reduced disproportionately than the current assets leading to increase in current ratio.

b. Reduction in short term borrowing by around 20% coupled with increase in total equity by around 21% has led to decrease in debt equity ratio.

c. Reduction in profit after tax by around 31% during the year has led to fall in return on equity.

d. Reduction in revenue from operation by around 34% during the year has led to fall in net capital turnover ratio.

e. Reduction in earnings before interest and tax by around 32% during the year has led to fall in return on capital employed.

f. The return on mutual funds are functions of market dynamics.

g. Since the company is member of National Stock Exchange and doing trades in shares and securities in its own account, inventory turnover ratio, trade receivable turnover ratio and trade payables turnover ratio is not given.

28. Ageing of trade receivable and trade payable

Trade receivable and trade payable ageing schedule as required as per schedule III to the Companies Act 2013 as amended is not given as the company is the member of National Stock Exchange of India Ltd and trades in shares and securities in its own accounts and have no retails clients. The amount receivable and/ or payable to clearing house on account of any trade is settled under T 1 and T 2 settlement basis and shown under other current financial assets or other current financial liabilities as the case may be.

30. Accounting policy related to employee's benefits of gratuity and other benefits is accounted in accordance with Ind AS 19-“Employees Benefit”. No provision for leave encashment is made during the year in view of company’s policy of not allowing encashment and accumulation of eligible leave.

31. The non-current equity investment being unquoted has been valued at cost only. Had the investment been valued at fair value, the amount of gain or loss would not have been material.

33. Segment Reporting:

The company is engaged primarily in the business of trading in shares and securities and there are no separate reportable segments as per Indian Accounting Standards (Ind AS) - 108 dealing with segment reporting.

36. Taxation:

a) Provision for current tax for the current year has been made, taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

b) In accordance with Ind AS - 12 “Taxes on Income” issued by Ministry of Corporate Affairs, net deferred tax liabilities on account of timing difference for current year of '5.42 million is charged to the Statement of Profit & Loss and net deferred tax assets of '0.08 million is credited to other comprehensive income.

37. As at March 31, 2023, the company has reviewed the future earnings of all the cash generating units in accordance with the Ind AS 36 “Impairment of Assets. As the carrying amount of assets does not exceed the future recoverable amount, consequently, no adjustment to carrying amount of assets is considered necessary by the Management.

38. In the Opinion of the Management, the current Assets and Loans and Advances as shown in the books are expected to realize at their Book Values in the normal course of business and adequate provision have been made in respect of all known liabilities.

39. Based on the information available with the Company, there are no suppliers who are registered as micro, small or medium enterprises under The Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2023.

40. Disclosures of transactions with the struck off companies

The Company did not have any transactions with companies struck off under Section 248 of the Companies Act,2013 or Section 560 of Companies Act, 1956 during the financial year.

41. No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule III:

(a) Crypto Currency or Virtual Currency

(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder

(c) Registration of charges or satisfaction with Registrar of Companies

(d) Relating to borrowed funds:

i. Wilful defaulter

ii. Utilisation of borrowed funds & share premium

iii. Borrowings obtained on the basis of security of current assets

iv. Discrepancy in utilisation of borrowings

(e) Borrowings obtained on the basis of security of current assets.

(f) Foreign Currency Exposure

40. Previous year’s figures have been regrouped wherever necessary to confirm with this year's classification.