1 Corporate overview

NDA Securities Limited (" the company") is a public limited company domiciled in India and incorporated under the provisions of companies Act,1956 vide Registration No. L74899DL1992PLC050366 Dated 21.09.1992.

The address of its corporate office is situated at E-157, 2nd Floor, Kalka Ji, New Delhi-110019. Its shares are listed on Bombay Stock Exchange Limited as Scrip code No. 511535 and ISIN INE026C01013. the company is engaged in brokerage of financial products e.g. Stock Brokerage, Mutual Funds depository Services and investment related activities such as investment in subsidiary and investment in Mutual Funds. Company has trading membership in National Stock Exchange since 1994, and also has trading membership of Bombay Stock Exchange and it is also a Depository Participant of National Securities Depositories Ltd.

2 _Significant Accounting Policies_

A Basis for preparation of Financial Statements

In accordance with the notification issued by Ministry of corporate Affairs, the company has adopted Indian Accounting Standards ( referred to as "Ind AS" notified under the companies (Indian accounting standards) Rules, 2015 with effect from April 1, 2019. Previous figures have been restated to Ind AS. In accordance with Ind AS 101 First time adoption of Indian accounting standards, the company has presented a reconciliation from the preparation of financial statements Accounting Standards notified by Companies (Accounting Standards) Rules 2016("previous GAAP) to Ind AS of shareholders equity as at March 31, 2019 and April 1, 2018 and for the comprehensive net income for the year ended March 31, 2019.

The financial statements are prepared in accordance with Indian Accounting Standards(Ind AS) notified under section 133 of companies act 2013 ("ACT") read with Companies(Indian Accounting Standards) Rules 2015; and the other provisions of the act and rules thereafter.

The financial statements have been prepared on a going concern basis under historical cost convention on the accrual basis except for certain financial instruments like Non current Investment in Share and Mutual Fund and Inventory of Share measured at fair value.

The company financial statements are presented in Indian Rupees (^) All figures appearing in the financial statement are rounded to the nearest Indian Rupees (^), except where otherwise indicated.

The preparation of the Financial Statements in conformity with the Ind AS requires Management to make estimates and assumption. These estimates and assumptions affect the reported amount of assets and liabilities as on the data of the Financial Statements and the reported amount if revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

All Assets and Liabilities have been classified as Current or Non-Current as per the Company's normal operation cycle (Twelve month) and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of product & activities of the Company and their realisation in cash and cash equivalent, the Company has determined its operating cycle as twelve months for the purpose of Current and Non-Current classification of assets and liabilities. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

B Use of Judgements

The preparation of financial statements requires the Management to make estimates and assumptions to be made that affect the reported amount of assets \and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the result are known / materialised.

C Revenue Recognition

Revenue is being accounting for on accrual basis. Revenue is recognized to the extent that is probable that the economic benefits will flow to the company and revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at fair value of the consideration received or receivable. The revenue is recognized net of GST(if any)

Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

Dividend income from investments purchased is recognised when the shareholder's right to receive payment has been established.

Revenue from services is recognised in the accounting period in which the services are rendered

D Property ,Plant and Equipment

Property, plant and equipment are stated at cost net of accumulated depreciation and accumulated impairment losses if any.

The initial cost of an Fixed Assets are stated at cost, including freight, installation, duties and taxes, finance charges and other incidental expenses incurred during construction or installation to bring the assets to their state of intended use.

The Carrying cost of Property, plant and equipment as on 1st April 2019 has been treated as deemed cost under IND AS as one time measurement as per previous GAAP and use that as its deemed cost on date of transition (1st April 2019).

Depreciation on property, plant and equipment is provided on the Straight Line Method by considering the revised useful life of the assets in the manner prescribed under schedule II to the Companies Act, 2013.

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are amortised over their respective individual estimated useful life's on straight line method. The company has elected to continue with the carrying value for all its intangible assets as recognised in its Indian GAAP financials as deemed cost as at the transition date (1st April 2019.

The Company depreciates PPE over their estimated useful lives as per the provisions of the Schedule II of the

E Impairment of Non financial Assets

Impairment loss is provided; if any, to the extent, the carrying amount of assets exceed their recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses recognised no longer exist or have decreased. .Such reversals are recognised as an increase in carrying amount of assets to the extent that it does not exceed the carrying amounts that would been determined (net of amortisation or depreciation) had no impairment loss been recognised in previous years.

F Valuation of Investment

Long-term/ Non Current investments in Quoted Share and Mutual Fund are carried at Fair Market Value. And Unquoted Share will be carried at Fair Market Value.

Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is carried out separately in respect of each investment category.

Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of investment.

G Investment Property

Investment property is property (land or a building- or part of a building-or both) held either to earn rental income or for capital appreciation or for both, but not for sale in ordinary course of business. Investment properties are stated at cost net of accumulated depreciation and accumulated impairment losses, if any.

The carrying amount of assets are reviewed each Balance Sheet date to determine if then any indication of impairment based on internal or external factors. An impairment loss is recognised whenever the carrying amount of an assets exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. The impairment loss recognized in the prior accounting years is reversed if there has been a change in the estimate of recoverable amount.

The Company recognize assets for sales of those assets which are not in use and identified for sale / disposable. The same is valued at net carrying amount or realizable value whichever is lower.

The Carrying cost of Property as on 1st April 2019 has bee treated as deemed cost under IND AS per previous GAAP and use that as its deemed cost on date of transition (1st April 2019).

H Investment in Subsidiaries and Joint ventures and Associates

Cost of Investment in equity shares of subsidiaries, joint ventures and associates are classified as Non-Current investment and the same is accounted for at cost.

I Inventories

Stocks of quoted share /debentures and other securities are valued at fair price, but where the fair value is not available, we consider the last value provided.

Stocks of unquoted shares/ Physical shares and other securities valued at Cost value to the extent possible.

The difference between the fair value of inventory and the cost price or market price whichever is lower recognised in Other comprehensive income/Loss.

J Financial Instruments

A financial instrument is any contract that gives rise to financial assets to one entity and financial liability to another

entity.

Financial Assets

Financial assets at amortised cost/ Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost.

These are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as noncurrent assets. Financial assets are measured initially at fair value.

Financial assets at amortised cost are represented by trade receivable, security deposits, cash and cash equivalent, employee and other advances.

Financial assets at fair value through other comprehensive Income(FVTOCI) :

All equity investments are measured at fair values. Investments which are held for trading purpose/ Investment purpose and where the company has exercised the option to classify the investments as fair value through other comprehensive income (FVTOCI), all fair value changes on the investments are recognised in OCI. The accumulated gain or losses recognised in OCI are classified to retained earnings on sale of such investments.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and in case of loan and borrowings net of directly attributable costs.

Financial liabilities are subsequently measured at amortised cost. For trade and other payable maturity within one year from the balance sheet date, the carrying value approximates fair value due to short maturity of these instruments.

K Cash and cash equivalents

Cash and cash equivalents in the cash flow statement comprises cash in hand and balance in bank in current accounts, Bank overdraft.

_Other Bank Balance includes Interest Receivable on Fixed Deposit and Bank Fixed Deposits Receipts_

L Tax Expenses

Provision for Income tax for current period if made if applicable on the basis established tax liability as per applicable provision of Income Tax Act, 1961, deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably / virtually certain, as the case may be, to be realized. The Carrying amount of Deferred Tax liabilities or Deferred Tax Assets are reviewed at the end of each reporting period.

M Foreign Currency Transaction

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the time of transaction.

Monetary items denominated in foreign currencies at the year-end are translated at the year end rate, the resultant gain or loss will be recognized in the statement of profit and loss account.

Any gain or loss arising on account of exchange difference on settlement of transaction is recognized in the statement of profit and loss account.

N Provision and contingencies

The company creates a provision when there exists a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount to settle the obligation. Provisions are not recognised for future operation losses. Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will depend on the occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

O Research and Development

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is/will capitalised and depreciation is provided on such assets as applicable.

P Earnings per share

The Basic earning per share is computed by dividing profit or loss attributable to equity shareholders of the company by weighted average number of equity shares outstanding during the year. The company did not have any potential dilutive securities in any of the years presented.

Q Employees Benefits

Salaries Liabilities for wages and Salaries and incentives, including non monetary benefits that are expected to be settled wholly with in 12 months after the end of the period in which the employees render the related services, are recognised up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. and long term provision for gratuity payable to employees , has been made as per actuarial Certificate.

Provident Fund : Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is recognized as an expense and debited to Statement of Profit and Loss on Accrual Basis.

Bonus and Leave Encashment "Bonus and leave encashment payment are accounted for on accrual basis and paid every year to the employees and charged to Statement of Profit and Loss.

Retirement Gratuity :-Retirement Gratuity Liability is assessed every year as at 31st March, as per actuarial valuation certificate and Provision made for the same and charged to Statement of Profit and Loss.

R Borrowing Cost

Borrowing Cost that are attributable to the acquisition or construction of qualifying assets up to the date when they are ready for their intended use are capitalised and other borrowing costs are charged to Profit and loss Account.

S Trade Receivable

A Receivable is classified as a 'trade receivable' if it is in respect to the amount due from customers on account of goods sold or services rendered in the ordinary course of business. Trade receivables are recognised at transaction value and subsequently measured at transaction value less provision for impairment. For some trade receivables the Company may have or have obtain security in the form of Shares deposit or Fixed Deposit, which can be called upon if the counterparty is in default under the terms of the agreement.

T Trade Payables

A payable is classified as 'trade payable' if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. Trade Payable Includes Advances given by Clients for purchase of shares and Margin Deposit for trading in Future and option Segment of Stock Exchange.