In order to undertake investment/trading positions in the cash/derivative segment, securities are kept as margin in the normal course of business by creating a pledge of securities in favour of the clearing member as per the applicable laws. The cost of these securities is ?Nil (March 31, 2023: ?Nil) having market value of ?Nil (March 31, 2023: ?Nil). There are no any open positions in the derivative segment.

The Company has only one class of equity shares having a par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend recommended by the Board of Directors and approved by the shareholders in the Annual General Meeting is paid in Indian Rupees. 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.

Basic EPS is calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares of the Company.

Fair value of instruments measured at amortised cost

The carrying amounts of cash and cash equivalents, trade receivables, trade payable and other financial liabilities are considered to be the same as their fair values, due to their short-term nature. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

(iii) Measurement of fair values

The fair value of financial instruments have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

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

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 rely as little as possible on entity specific estimates.

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

B Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk;

- Market risk - Price risk; and

- Market risk - Interest rate risk

Risk management framework

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The board of directors have authorised senior management to establish the processes, who ensures that executive management controls risks through the mechanism of properly defined framework.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risks limits and controls, to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(i) 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 obligations, and arises principally from the Company's receivables from customers and loans and advances. The maximum exposure to credit risks is represented by the total carrying amount of these financial assets in the balance sheet are as follows:

• Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables, etc.

• Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks having high credit ratings assigned by domestic credit rating agencies. Credit risk on investments is limited as the Company generally invests in mutual funds of Asset Management Companies that have high credit ratings assigned by domestic credit rating agencies.

• Trade receivables are measured at amortised cost and credit risk related to these are managed by monitoring the recoverability of such amounts continuously. As at the reporting dates of last two years, the trade receviables are Nil.

• Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparties to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss ("ECL") model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for financial assets. The provision matrix takes into account available external and internal credit risk factors such as Company's historical experience with customers. At the reporting dates of the last two financials years, the Company had Nil exposure to Loan assets.

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that the funds are available for use as per requirements. The Company consistently generated sufficient cash flows from operations to meet its financial obligations as and when they fall due.

(a) Maturities of financial liabilities

The tables below analyses the Company's financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices. The company is exposed to two types of market risks viz., price risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(a) Price risk

Equity price risk is the risk that the fair value of equities decreases as the result of changes in level of equity indices and individual stocks. The trading equity price risk exposure arises from equity securities classified at "FVTPL". A 10% increase/(decrease) in the equity price (traded) would have the impact as follows:

Note: The provision for gratuity and compensated absences is made on the basis of actuarial valuation for all the employees of the Company including for the managerial personnel. Proportionate amount of gratuity and compensated absences is not included in the above disclosure since the exact amount is not ascertainable.

30 Capital management

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company.

The Company's objective for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated. The Company is not subject to any externally imposed capital requirements.

31 Employee benefit plan 31 (a) Provident fund

Provident fund benefit is a defined contribution plan under which the Company pays fixed contributions into funds established under Employees Provident Fund and Miscellaneous Provisions Act, 1952. The Company has no legal or constructive obligations to pay further contributions after payment of the fixed contribution. The contributions recognised in respect of defined contribution plans are expensed as and when they accrue. Liabilities and assets may be recognised if underpayment or prepayment has occurred and are included in current liabilities or current assets, respectively, as they are normally of a short term nature.

31 (b) Compensated absence

The Company's obligation towards leave encashment is determined using the Project Unit Credit Method as per Ind AS 19, with actuarial valuations being carried out at the end of each annual reporting period by an independent agency. These obligations are recognised in the Statement of Profit and Loss.

31 (c) Gratuity

Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on Project Unit Credit Method as per Ind AS 19 made at the end of each financial year. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is unfunded.

32 Segment reporting

The Company operates in a single reportable segment i.e., investing. Since the nature of the investments are exposed to similar risk and return profiles hence they are collectively operating under a single segment. The Company operates in a single geographical segment i.e., domestic.

33 Transferred financial assets that are derecognised in their entirety but where the Company has continuing involvement

The Company has not transferred any assets that are derecognised in their entirety where the Company continues to have continuing involvement.

34 Contingent liabilities and commitments

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

35 New effective or amended standards

Ministry of Corporate Affairs ("MCA") notified new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

a) Ind AS 1 - Presentation of Financial Statements

This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 01, 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the financial statements.

b) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

This amendment has introduced a definition of 'accounting estimates' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 01, 2023. The Company has evaluated the amendment and there is no impact on its financial statements.

c) Ind AS 12 - Income Taxes

This amendment has narrowed the scope of the initial recognition exemption ("IRE") so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 01, 2023. The Company has evaluated the amendment and there is no impact on its financial statement.

36 Recent accounting pronouncements

As per Companies (Accounts) Second Amendment Rules, 2021 through MCA notification dated March 24, 2021, a new proviso has been added in Rules 3(1) of The Companies (Accounts) Rules, 2014, which states that:

"Provided that for the financial year commencing on or after the 01st day of April, 2021, every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of:

a. recording an audit trail of each and every transaction;

b. creating an edit log of each change made in books of account along with the date when such changes were made; and

c. ensuring that the audit trail cannot be disabled."

By MCA notification dated April 01, 2021, a substitution was made in proviso to sub-rule (1), for the figures, letters and words "01st day of April, 2021" the following has been substituted "01st day of April, 2022". Further by MCA notification dated March 31, 2022, another substitution was made in proviso to sub-rule (1), for the figures, letters and words "01st day of April, 2022" the following has been substituted "01st day of April, 2023.

By this notification(s) it has been made mandatory from April 01, 2023 for every company to add on the feature of audit trail in their accounting software in which it maintains its books of account. The feature of Audit trail should have an edit log which shall record each and every transaction along with modifications made at any point of time. The Company complies with this.

The Company has used accounting software with an audit trail (edit log) feature, except for the instances mentioned below, to maintain its books of accounts from August 1, 2023, to March 31, 2024:

i. The audit trail (edit log) feature was not enabled at the database level for logging direct data changes in the software used for maintaining the books of accounts related to payrolls, property, plant and equipment, and other intangible assets.

Further, from August 1, 2023 to March 31, 2024 where audit trail (edit log) facility was enabled and operated for the respective accounting software, there is no instance of the audit trail feature being tampered with.

There has been a change in management/promoter of the Company effective July 21, 2023.

Edit Log is reflecting rectifications by the management during the course of operations.

38 Additional Regulatory and Other Information

i) The Company does not hold any Immovable Property in the name of the Company.

ii) The Company has not done any revaluation of Immovable Property.

iii) The Company has not given any Loans or Advances in the nature of loans are granted to promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

iv) The Company does not have any Capital Work-in-Progress.

v) The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder and no proceeding have been initiated or pending the company under the said Act.

vi) Our Company is an NBFC-ND with asset size less than ^ 500 crore and pursuant to RBI circular dated November 04, 2014 RBI/2014-15/299 DNBR(PD) CC. No. 002/03.10.001/2014-15 the Company is exempted from the requirement of maintaining CRAR.

vii) Liquidity Coverage Ratio (LCR) is not applicable to the Company since the Company is Type 1 NBFC pursuant to circular dated November 04, 2019, RBI/2019-20/88 DOR.NBFC(PD) CC.No.102/03.10.001/2019-20.

viii) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) 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 company (Ultimate Beneficiaries), or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

ix) Unhedged foreign currency exposure of the Company as on March 31, 2024: Nil.

x) The Company has no transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

xi) The Company has not traded or invested in Crypto currency or Virtual currency during the year ended March 31, 2024.

xii) The Company did not have any transactions which had not been recorded in the books of accounts that had been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

xiii) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments). Also, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

xiv) There has been no fraud by the Company or against the Company during the year ended March 31, 2024. Also, no report under sub-section (12) of section 143 of the Companies Act has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.

xv) Transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.

xvi) The Company has not entered into non-cash transactions with Directors or persons connected with him as restricted in section 192 of Companies Act, 2013.

xvii) The Company has no pending litigations that would impact the financial position of the financial statements.

xviii) The accounts have been prepared on the assumption that the Company is a going concern.

xix) The Company does not have any subsidiaries and thus complies with the restriction on the number of layers as prescribed under clause (87) of section 2 of the Companies Act, 2013.

xx) The Company does not meet any of the criteria specified under Section 135(1) of the Companies Act, 2013, for the preceding financial year 2022-23. Hence, the provisions of Corporate Social Responsibility (CSR) are not applicable for the current financial year 2023-24.

39 Borrowings

a) The Company has not borrowed in any form (including term loans) from any banks or financial institutions during the year. There are no charges outstanding in Company's name with the Registrar of Companies. Additionally, it has not defaulted on the repayment of loans, other borrowings, or the payment of interest to any lender.

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

c) The Company has not taken any funds from any entity or person on account of or to meet the obligations of its associate companies.

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

e) 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 Company 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.

40 Authorisation of financial statements

The financial statements for the year ended March 31, 2024 were approved by the Board of Directors on May 29, 2024.

41 Previous year's figures have been regrouped/rearranged, wherever necessary to conform to current year's classifications/

disclosures.

42 Note on Change in the Managemenl/Promoter/Director during the year

a) The Company filed an application dated November 15, 2022 with the Reserve Bank of India ("RBI") seeking approval for the change in management and transfer of control from Mrs. Vijay Rathee and Mr. Kuldeep Singh Rathee ("Seller/ outgoing promoter") to Dr. Bhaskara Rao Bollineni and Mr. Bhavanam Ruthvik Reddy ("Acquirer/ New Promoter"). The Company received the RBI approval dated May 11, 2023 for the abovementioned change and transfer.

b) Pursuant to the Share Purchase Agreement ("SPA") dated November 09, 2022, executed between the Seller and Acquirer, a public announcement dated November 09, 2022, was made by the Acquirer in terms of (Substantial Acquisition of Shares and Takeover) Regulation 2011. The Acquirer has acquired 69,41,050 equity shares (representing 69.36% of the total equity capital of the Company) which includes 69,39,650 equity shares held by the Seller. The SPA was consummated at the Board Meeting held on July 21, 2023.

c) Further, according to the consummation of SPA, the Board at its meeting held on July 21, 2023, subject to the approval of shareholders had appointed Dr. Bhaskara Rao Bollineni (Non-Executive Chairperson), Mr. Bhavanam Ruthvik Reddy (Executive), and Mr. Subba Rao Veeravenkata Meka (Executive) as Additional Directors of the Company. Subsequently, at the Board Meeting held on September 12, 2023, Mr. Bhavanam Ruthvik Reddy was appointed as Chief Executive Officer and Whole Time Director for three years effective from September 12, 2023, Mr. Subba Rao Veeravenkata Meka was appointed as Managing Director for three years effective from September 12, 2023, and Ms. Jayanthi Talluri was appointed as Independent (Women) Director for two years effective from September 12, 2023. The said appointments were approved by the shareholders of the Company through postal ballot vide resolutions dated October 19, 2023.

d) The Company vide its letter dated September 23, 2023, had requested approval from the BSE Limited (the "Stock Exchange") for the reclassification of the Promoter/Promoter Group under Regulation 31A(10) of the SEBI (LODR) Regulations, 2015 i.e., to reclassify (i) "outgoing promoters" i.e., Mrs. Vijay Rathee and Mr. Kuldeep Singh Rathee as "Public" and (ii) Dr. Bhaskara Rao Bollineni and Mr. Bhavanam Ruthvik Reddy as the "Promoter" of the Company. The Stock Exchange approved these reclassifications of Promoter vide its letter dated March 28, 2024.

e) Pursuant to the No objection of RBI's letter dated January 25, 2024, and Special Resolution passed by the shareholder by way of postal ballot on March 14, 2024, through remote e-voting held from Wednesday, February 14, 2024 at 9.00 am (IST) to Thursday, March 14, 2024 at 5:00 p.m. (IST), results of which were declared on Friday, March 15, 2024, the Company has applied to Regional Director, Northern Region, Ministry of Corporate Affairs, New Delhi, for shifting of Registered office from 'National Capital Territory (NCT) of Delhi' to the 'State of Telangana'.