Cash flows from operating activites are
reported using the indirect method
where by the profit after tax is adjusted
for the effect of the transactions of a
non-cash nature, any deferrals or
accruals of past and future operating
cash receipts or payments and items of
income or expenses associated with
investing or financing cash flows. The
cash flows from operating, investing
and financing activities of the company
are segregated.

2.10 Standard Issued but not
Effective

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,
2025, MCA has not notified any new
standards or amendments to the
existing standards applicable to the
company. The standards or
amendments (wherever applicable)
issued till date have been complied by
the company.

Note:- As at the March'25 ? 895 lakhs from the Kotak Mahindra Investment Ltd. loan, earmarked for Capital Work-in-Progress (CWIP),
remains unutilised. This amount is held specifically for use in approved capital expenditure projects in accordance with the terms of the
loan agreement.

a) Term Loan from banks amounting ? 207.56 lakhs and ? 274.07 lakhs as of March 31, 2025 and March 31, 2024, respectively, are secured
by way of hypothecation of vehicles and are repayable over a period up to five years.

b) Term Loan from others amounting ? 7,310.07 lakhs and ? 7,256.56 lakhs as of March 31, 2025 and March 31, 2024, respectively, are
secured by way of hypothecation of freehold land, exclusive charge on collateral property situated at Pusa Road New Delhi and personal
guarantee of promoters directors are repayable in 60 instalments.

c) Term Loan from others amounting ? 15,120.84 lakhs and ? 9,900.00 lakhs as of March 31, 2025 and March 31, 2024 , respectively, are
secured by way of Margin trading facility and personal guarantee of promoter directors.

d) Term Loan from others amounting ? Nil and ? 20.34 lakhs as of March 31, 2025 and March 31, 2024 , respectively, are secured by way of
hypothecation of vehicles and are repayable over a period up to five years.

e) Loan from banks amounting ? 46,463.59 lakhs and ? 46,062.96 lakhs as of March 31, 2025 and March 31, 2024, respectively, are secured
against shares, receivables (including exchange balances), fixed deposits, certain office buildings and personal guarantee of promoter
directors.

f) Loan from others amounting ? 4,750 and ? 400.81 as of March 31, 2025 and March 31, 2024 , respectively, are secured by way of
hypothecation of shares, receivable and personal guarantee of promoter directors.

*In the period of five years immediately preceding March 31, 2025

During the financial year 2022-23, the company had purchased and extinguished a total of 84,34,450 fully paid-up equity shares of face
value ? 2 each from open market through the stock exchanges.

The Company has only one class of equity shares having a par value of ? 2 per share. Each holder of equity shares is entitled to one vote
per share. The Board has proposed final dividend for FY 2024-25 @60% i.e. ? 1.20 per equity shares of the face value of ?2/- each
amounting to ? 1,256.40 lakhs to its equity shareholders (subject to approval of the shareholders in the ensuing Annual General Meeting)
in addition to interim dividend @60% paid during the FY 2024-25, this makes the total dividend @120% i.e. ? 2.40 per equity share.

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 shareholder.

Nature and purpose of reserves :

(A) Securities premium

Securities premium is used to record the premium received on issue of shares. The reserve can be utilised only for limited purposes in
accordance with the provisions of the Companies Act, 2013.

(B) Retained earnings

Retained earnings are the profits that the company has earned till date, less any transfers to generate reserve, dividends or other
distributions paid to shareholders.

(c) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage
in accordance with applicable regulations however, the same is not required to be created under Companies Act, 2013. This reserve can be
utilised only in accordance with the specified requirements of Companies Act, 2013.

(D) Capital redemption reserve

The Companies Act, 2013 requires that when a Company purchases its own shares out of free reserves or securities premium account, a
sum equal to the nominal value of the shares so purchased shall be transferred to a capital redemption reserve. The reserve is utilised in
accordance with the provisions of Section 69 of the Companies Act, 2013.

(E) Capital reserve

Capital reserve is created out of capital profits and cannot be used for the distribution of profits and dividend.

Other litigations

1 Title of the property located at Office no 205, 2nd Floor, Plot no 4A, Community Centre, 21st Century Plaza, Sector 8, Rohini, New Delhi
having gross carrying value of ? 46.12 Lakhs is under dispute and sealed due to the allegation of acquisition of the said property by the
transferor from the funds of Ganga Yamuna Finvest Pvt. Ltd, which is under liquidation.

2 The company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The company’s management
does not reasonably expect that these legal actions, when ultimately concluded and determined, will have a material and adverse effect on
the company’s results of operations and financial condition.

Pending completion of the legal process the impact of liability, if any, cannot be ascertained at this stage, however, management believes
that, based on legal advice, the outcome of these contingencies will be favourable and that outflow of economic resources is not probable.

Financial risk factors

This note presents the information
about the Company’s exposure to
financial risks, the Company’s
objectives, policies and processes for
measuring and managing risk and the
Company’s management of capital.

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

• Credit risk;

• Liquidity risk and

• Market risk

Financial Risk management
framework

The Board of Directors has overall
responsibility for the establishment and
oversight of the Company’s risk
management framework. Financial risk
management within the Company is
governed by policies and guidelines
approved by the management. The
Board has established a Risk

Management Committee which is
responsible for developing and
monitoring the Company’s risk
management policies. Company policies
and guidelines cover areas such as cash
management, investment of excess
funds and raising of debt and are
managed by segregated functions
within the Company.

The Company’s risk management
policies and procedures are established
to identify and analyse the risks faced
by the Company, to set appropriate risk
limits and controls, and to monitor risks
and adherence to limits. Risk
management policies and systems 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
and stakeholders understand their roles
and obligations.

Different types of risks arising from
financial instruments as identified by
the Company above have been
explained below:

(I) Credit risk

The 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 receivable from clients and
exchange and trading members, loan
and advances, investments other than
the quoted securities given. Credit risk
in respect of quoted securities is
expected to have a direct correlation
with the quoted market prices and risk.

The Company is exposed to the risk
that third parties that owe money or
securities will not perform their
obligations. Such third parties include
clients, trading members, exchanges,
clearing houses, and other financial
intermediaries. These parties may

default on their obligations owed to the
Company due to insolvency, lack of
liquidity, operational failure,
government or other regulatory
intervention or other reasons. In these
circumstances, the Company is exposed
to risks arising, for example, from
holding securities of third parties;
executing securities trades that fail to
settle at the required time due to non¬
delivery by the counterparty trading
members, exchanges, clearing houses
or other financial intermediaries.
Significant failures by third parties to
timely perform their obligations owed
could materially and adversely affect
the Company’s financial position, and
ability to borrow in the credit markets
and ability to operate the business.

For the risk management purposes, the
Company considers and consolidates all
elements of credit risk exposures such
as individual obligator default risk,
country and sector risk.

Management / mitigation of credit
risk

The Company operates in a highly
regulated environment which limits its
credit risk against exchanges and
clearing houses. The Company collects
upfront margins in form of funds and/or
securities/commodities from clients and
trading members against their trading
positions. The Company monitors
positions, margins, mark to market
losses and risks on real time basis
through risk management systems and

that exposure to single client does
not cross the laid down threshold
limits. Collateral securities are also
collected from clients to cover the
exposure.

(v) Limiting concentrations of
exposure to counterparties,
geographies and industries (for
loans and advances and similar
exposures), and by issuer, credit
rating bond, market liquidity and
country (for investment securities
and trading assets).

(vi) Reviewing compliance of business
units with agreed exposure limits,
including those for selected
industries, country risk and
product types. Regular reports on
the credit quality of local
portfolios are provided to the
management, which may require
appropriate corrective action to be
taken.

The Board of Directors has also
constituted Audit Committee, which is
responsible for evaluation of internal
financial controls and risk management
systems. The company conducts regular
internal audits of various business units
to identify scope of
improvement/enhancement of the
Company's processes, quality control,
fraud prevention and legal compliance.
The internal audit reports are reviewed
by audit committee and also placed
with the Board.

capital needs, which are typically towards
margin maintenance at various
exchanges. The principal portion of the
working capital requirement is utilized by:

(a) depositing funds with banks to
obtain term deposits and guarantees
towards margins payable to the
exchanges/clearing houses;

(b) payments to stock
exchanges/clearing houses towards
settlement obligations;

(c) payment towards purchase of
various trading assets; and

(d) meeting expenses incurred for

operations.

Management of liquidity risk

Working capital requirements fluctuate
on a regular basis depending on the
business requirements. The Company's
approach to managing liquidity is to
ensure, as far as possible to have
sufficient funds to meet its liabilities
when due, under both normal and
stressed conditions, without incurring
unacceptable losses or risking damage
to the Company's reputation.

To fund the working capital
requirements, the Company currently
relies principally on internal accruals
and short term credit facilities from
banks and financial institutions against

pledge of derivative assets, term
deposits, receivables from clients and
investments carried at fair value
through profit and loss. By maintaining
sufficient liquid funds and drawing
facilities with banks, the Company
comfortably meets the foreseeable
liabilities in the present and immediate

future, as well as unforeseeable
contingencies.

Central treasury receives information
from business units regarding the
liquidity profile of their financial assets
and liabilities and projected cash flows.
Central treasury maintains surplus
funds in cash and cash equivalents

including term deposits with banks and
in investment securities for which there
is an active and liquid market. These
assets can be readily sold to meet
liquidity requirements. Hence, the
Company believes that the above
monetary mechanism adequately
addresses the liquidity risk.

(iii) Market risk

The Company participates in trading
and investing in various asset classes
such as equity, debt securities,
commodities, foreign currency and
derivatives. These assets classes
experience volatility due to economic
growth levels, inflation, prices, interest
rates, foreign exchange rates and other
macro-economic factors. Any changes in
market prices of these asset classes will
affect the Company’s income or the
value of its holdings of financial
instruments.

The Company segregates its exposure
to market risks between price risk,
interest rate risk and currency risk.
Management of market risks:

The objective of market risk
management is to manage and
minimize market risk exposures within
acceptable parameters, while optimizing
the return on risk. The Company's
exposure to market risk is determined

by a number of factors, including size,
composition and diversification of
positions held and market volatility.

(a) Price risk

Trading and investment portfolios
include proprietary positions taken in
equities, fixed income securities,
commodities, foreign currency and their
derivatives mainly for availing arbitrage
opportunities. All financial assets and
liabilities are accounted on fair value
basis. Management actively monitors its
market risk by reviewing the
effectiveness of arbitrage and setting
outstanding position limits. The
Company manages market risk with
central oversight, analysis and
formation of risk policy, specific
maximum risk levels to which the
individual trader must adhere to and
real time continuous monitoring by the
senior management.

In respect of the proprietary positions,
the Company is exposed to volatility in

the price of the underlying securities.

(b) Interest rate risk

Interest rate risk arises from
movements in interest rates which
could have effects on the Company’s
net income or financial position.
Changes in interest rates may cause
variations in interest income and
expenses resulting from interest-bearing
assets and liabilities. Interest rate risk is
the risk that the fair value or the future
cash flows of a financial instrument will
fluctuate because of changes in market
interest rates.

The Company’s exposure to interest
rate risk relates to the loans taken
from banks, investment in term
deposits placed with banks,
investment in debt securities and
investments of its excess funds in
liquid instruments. A majority of the
financing of the Company has come
from overdraft facility with banks. The
business of the Company is exposed to
fluctuation in interest rate for the
following activities:

(I) Term deposits placed with banks
are generally for short term on
fixed interest rates;

(ii) Facilities availed from banks and
other financial institutions
generally include short term
working capital loans on floating
interest rates;

(iii) Interest paid by Company on
clients’ funds earmarked as fixed
margin are generally for short
term on fixed interest rates.

Management of Interest Rate Risk

Interest rate risk is managed
principally through monitoring interest
rate gaps and by having pre-approved
limits for re-pricing bands. However
the Company does not use derivative
financial instruments to hedge its
interest rate risk.

The Company’s investments in majority
of term deposits with banks are for
both short and long duration, and
therefore do not expose the Company
to significant interest rate risk. Further
significant portion of exposure on term
deposits with banks is offset with
clients’ funds earmarked as margins on
fixed rate basis. The interest rates on
the overdraft facility availed are
marginally higher than the interest rates
on term deposits with the banks and
generally linked to the term deposit
rates with the bank. Accordingly, there
is limited interest rate risk exposure on
the company.

The Company’s exposure to the risk of
changes in market interest rates relates
primarily to the Company’s short-term
and long-term debt obligations with
floating / fixed interest rates, which are
included in loans and borrowings. The
loans and borrowings represent loans

and borrowing taken both fixed and
floating interest rate.

(c) Currency risk

The Company is not significantly
exposed to currency risk as there is no
mismatch between the currencies in
which sales of services, purchase of
goods/services and borrowings are
dominated and the respective
functional currencies of Company .
Further, the functional currency of the
Company is primarily the Indian Rupee
and do not expose the Company to
significant currency risk. The Company
considers the valuation changes in
foreign currency derivatives it trades in
as part of investment/price risk as those
derivatives are exchange traded,
managed and monitored based on
exchange price and are settled in near
term in Indian Rupees.

NOTE NO. 44

Disclosure under The Micro, Small and Medium Enterprises Development Act, 2006

The Company has sent letters to vendors to confirm whether they are covered under micro, small and medium enterprise development
act 2006 as well as they have filed required memorandum with prescribed authority. Out of the letter sent to the party, based on the
confirmation received till the date of finalisation of balance sheet. Based on and to the extent of the information received by the
Company from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act)
and relied upon by the auditors, the relevant particulars as at the year end are furnished below:

NOTE NO. 45

Segment reporting

Ind AS 108 establishes standards for the way
that public business enterprises report
information about operating segments and
related disclosures about products and
services, geographic areas, and major
customers. Based on the "management
approach" as defined in Ind AS 108, the
Chief Operating Decision Maker (CODM)
evaluates the Company's performance and
allocates resources based on analysis of
various performance indicators by business
segments and geographic segments.
Accordingly, information has been presented
both along industry classes and geographic
segmentation of customers, industry being
the primary segment. Secondary segmental

reporting is performed on the basis of the
geographical location of customers. The
accounting principles used in the
preparation of the financial statements are
consistently applied to record revenue and
expenditure in individual segments, and are
as set out in the note on significant
accounting policies.

a. Business Segment

The Company’s primary business comprises
of dealing in shares, securities, commodities,
derivatives and portfolio management
services either on its own or on behalf of its
constituents and other related ancillary
services.

Accordingly the primary business segment
has been identified as below:

Broking, Distribution & Trading : Comprises
of brokerage income earned on secondary
market transactions done on behalf of
clients, services rendered as depository
participant, clearing services, research
support services, proprietary trading in
securities, commodities, derivatives portfolio
and fund management services.

b. Geographical Segment

The Company operates in one Geographical
Segment namely “within India” and hence
no separate information for geographic
segment wise disclosure is required.

(Non-Ind AS Information)

NOTE NO. 46

Additonal Regulatory disclosures

I. Title Deeds of all Immovable properties are held in the name of the company

ii. The company does not have any investment property, hence disclosure relating to its valuation are not applicable.

iii. During the year the company has not revalued its property, plant and Equipment.

iv. During the year the company has not revalued its intangible assets.

v. During the year no Scheme of Arrangements related to the company has been approved by the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013.

vi. Capital work-in-progress comprises of property, plant and equipment that are not ready for their intended use at the end of reporting
period and are carried at cost comprising direct costs, related incidental expenses, other directly attributable costs and borrowing costs.

xii. There are no charges or satisfactions
pending for registration with the ROC
beyond the statutory period except in
case of Bank guarantee (sanctioned
amount ? 15,500 lakhs and
outstanding amount ? 15,500 lakhs)
and overdraft facility (sanctioned
amount ? 17,500 lakhs and
outstanding amount ? 1572 lakhs)
from HDFC Bank, where the creation
of charge was inadvertently ommitted.

xiii. The company has complied with the
number of layers prescribed under
clause (87) of section 2 of the act read
with companies (Restriction on
number of layers) rule 2017.

xiv. Additional regulatory information
required under (WB) (xiv) of Division III
of Schedule III amendment, disclosure
of ratios, is not applicable to the

Company as it is in broking business
and not an NBFC registered under
Section 45-IA of Reserve Bank of India
Act, 1934.

xv. Utilisation of Borrowed funds and
share premium:-:-

A) 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:

(I) 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

(ii) provide any guarantee, security
or the like to or on behalf of the
Ultimate Beneficiaries;

(B) 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:

(I) 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

(ii) provide any guarantee, security
or the like on behalf of the
Ultimate Beneficiaries

NOTE NO. 48

Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold , needs to spend atleast 2% of its average net
profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. A CSR committee has been formed by
the company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified
in Schedule VII of the Companies Act, 2013:

NOTE NO. 50

Subsequent Event- Public Issue

The Company has also has filed Prospectus dated March, 19 2025 for public issue of secured, rated, listed, redeemable, non-convertible
debentures of face value of ?1,000 each ("NCD") for an amount up to ?7,500 lakhs ("Base issue size") with an option to retain
oversubscription up to ?7,500 lakhs ("Green shoe option"), aggregating up to 15,00,000 NCDs for an aggregate amount of up to ?15,000
lakhs ("issue size" or "issue limit") ("Issue"). The Issue opened for subscription on April, 02 2025 ("Issue Opening date") and closed on
April, 17 2025 ("Issue Closing date"). 12,03,042 NCDs with face value of Rs 1000 each were allotted on April 24, 2025 and same has been
listed on BSE Limited for trading on April 28, 2025.

NOTE NO. 52

The figures for the previous year have been re-grouped to conform with the current year’s presentation. This reclassification does not
affect the overall financial position, results of operations, or cash flows of the company. The changes were made to improve the
comparability of financial information.

In terms of our report of even date attached

For P.C. Bindal & Co. For and on behalf of the Board of SMC Global Securities Limited

Chartered Accountants
Firm Registration No. : 003824N

sd/- sd/- sd/- sd/-

Manushree Bindal S.C. Aggarwal Mahesh C. Gupta Ajay Garg

Partner Chairman & Vice-Chairman & Director & CEO

Membership No. : 517316 Managing Director Managing Director DIN: 00003166

DIN: 00003267 DIN: 00003082

sd/- sd/-

Place: New Delhi Vinod Kumar Jamar Suman Kumar

Date: May 11, 2025 President & Group CFO Company Secretary