NOTE 1: SIGNIFICANT ACCOUTING POLICIES

[ A ] BASIS OF PREPERATION AND PRESENTATION OF FINANCIAL STATEMENT

the financial statements of the company have been prepared in accordance with the indian accouting standards (ind as) notified under the companies (indian accounting standards) rules, 2015 as amended by the companies (indian accounting standards) (amendmends) rules, 2016 notified under section 133 of the companies act , 2013. ( ' the 2013 act ) in terms of general circular 15/2013 dated 13 september, 2013 of the ministry of corporate affairs ) and the relevent provisions of the 1956 act / 2013 act, as applicable. the company as registered as investment banking company under rbi regulation as on 22.02.2024.

the financial statements have been prepared on accrual basis under the historical cost convention. the accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year subject to the changes applicable as per the companies act, 2013.

[ B ] PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

schedule iii notified under the companies act, 2013. has become applicable to the company, for preparation and presentation of its financial statements. the adoption of schedule iii does not impact recognition and measurement principles followed for preparation of financial statements. however, it has significant impact on presentation and disclosure made in the financial statements.

[ C ] USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles ('gaap') requires management to make estimates and assumptions that affect the reported amounts of assets & liabilities and the disclosure of contingent liabilities on the date of the financial statements. actual result could differ from those estimates. that effect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period.

Although these estimates are based on the management's best knowledge of current events and actions, the actual outcome may be different from the estimates. difference between actual results and estimates are recognised in the period in which the results are known or materialise. any revision of accounting estimates is recognized prospectively in current & future periods.

[ D ] REVENUE RECOGNITION

revenue from security is recognized as per agreements entered on accrual basis. Dividend income is accounted on when right to received is established. Interest income is accounted on accrual basis.

[ E ] INVENTORIES

Inventories are valued in accordance with the method of valuation prescribed by indian accouting standard at market value. Also the future and derivative instrumnets valued at mark to mark margin basis.

[ F ] FIXED ASSETS

Fixed assets are valued at cost of acquisition net of tax / duty credits availed, if any and finance cost during acquisition / construction period and other attributable costs to bring the assets to their working condition. and impairment losses.

[ G ] DEPRECIATION

Depreciation is charged over the estimated useful life of the fixed assets on a written down basis. the useful life of the fixed asset for the company is as prescribed in schedule ii of the companies act, 2013. Assets purchased / sold during the period are depreciated on a pro - rata basis for the actual number of days the asset has been put to use.

[ H ] CASH FLOW

Cash flow statement is prepared under "indirect method" and the same is annexed.

[ I ] IMPAIRMENT OF ASSETS

the company assesses at each balance sheet date whether there is any indication that an asset is impaired. if any such indication exists, the company estimates the recoverable amount of the asset. if such recoverable amount of the asset is less than the carrying amount then carrying amount is reduced to recoverable amount. the

reduction is treated as impairment and recognized in profit and loss account. if at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. during the year no such impairment has occurred.

[ J ] INVESTMENTS

current investment are carried at lower of cost or quoted / fair market value. long term investments are accounted at the cost of acquisition. Diminution in the value of long term investment is provided for only when there is a permanent diminution in the value of such investments.

[ K ] EMPLOYEE BENEFITS

Short term employee benefits and leave encashment is recognised as an expenses as per the scheme of the company.

[ M ] ACCOUNTING FOR TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

[ N ] PROVISIONS AND CONTINGENCIES

Provisions are recognised when the company has a legal and constrcutive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when the company has possible or present obligation where it is not probable that an outflow of resources will be required to settle it. The same are not provided for in the books of accoutns and are neither seperately disclosed in the notes forming part of accounts.