3.9 Provisions, Contingent Liabilities and Contingent
Assets

A provision is recognised if as a result of a past event, the
Company has a present obligation (legal or constructive)
that can be estimated reliably and it is probable that an
outflow of economic benefits will be required to settle the
obligation. Provisions are recognised at the best estimate of
the expenditure required to settle the present obligation at
the balance sheet date. If the effect of time value of money
is material, provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risk specific to
the liability.

A contingent liability exists when there is a possible but
not probable obligation, or a present obligation that may,
but probably will not, require an outflow of resources, or
a present obligation whose amount cannot be estimated
reliably. Contingent liabilities do not warrant provisions but
are disclosed unless the possibility of outflow of resources
is remote. Contingent assets are neither recognised nor
disclosed in the financial statements. However, when the
realisation of income is virtually certain, then the related
asset is not a contingent asset and its recognition is
appropriate.

3.10 Earning Per Share

The Company reports basic and diluted earnings per share
in accordance with Ind AS 33 on Earnings per share. Basic
EPS is calculated by dividing the net profit or loss for the
year attributable to equity shareholders (after deducting
preference dividend and attributable taxes) by the weighted
average number of equity shares outstanding during the
year.

For the purpose of calculating diluted earnings per share,
the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares
outstanding during the year are adjusted for the effects of
all dilutive potential equity shares. Dilutive potential equity
shares are deemed converted as of the beginning of the
period, unless they have been issued at a later date. In
computing the dilutive earnings per share, only potential
equity shares that are dilutive and that either reduces the
earnings per share or increases loss per share are included.

3.11 Dividend on ordinary shares

The Company recognises a liability to make cash
distributions to its equity holders when the distribution
is authorised and the distribution is no longer at the
discretion of the Company. As per the corporate laws in
India, a distribution is authorised when it is approved by

the shareholders. A corresponding amount is recognised
directly in equity.

3.12 Contingencies and events after reporting date

Where events occurring after the balance sheet date
provide evidence of conditions that existed at the end of
the reporting period, the impact of such events is adjusted
within the financial statements. Otherwise, events after
the balance sheet date of material size or nature are only
disclosed.

3.13 Recent Indian Accounting Standards (Ind AS)

Ministry of Corporate Affairs (“MCA”) has notified the
Companies (Indian Accounting Standards) Amendment
Rules, 2023 dated 31 March 2023 to amend the following
Ind As which are effective from 01 April 2023. However,
these amendments does not have an impact on Financial
Statements and material accounting policy information.

Ind AS 1 : Presentation of financial Statements - This
amendment required the entities to disclose their material
accounting policies rather than their significant accounting
policies. The effective dates for adoption of this amendment
is annual periods beginning on or after 01 April 2023. The
Company has evaluated the amendment, and the impact of
the amendment is insignificant in the Company's financial
statements.

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 01
April 2023. The Company has evaluated the amendment,
and the impact of the amendment is insignificant in the
Company's financial statements.

Ind AS 12 : Income Taxes - This amendment has
narrowed the scope of the initial recognition exemption 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 01 April 2023. The Company has evaluated
the amendment, and the impact of the amendment is
insignificant in the Company's financial statements.

Standards notified but not yet effective.

The Ministry of Corporate Affairs notified amendments to
Ind AS 21 The Effects of Changes in Foreign Exchange

Rates to specify how an entity should assess whether a
currency is exchangeable and how it should determine a
spot exchange rate when exchangeability is lacking. The
amendments also require disclosure of information that
enables users of its financial statements to understand
how the currency not being exchangeable into the other
currency affects, or is expected to affect, the entity's
financial performance, financial position and cash flows.
The amendments are effective for annual reporting
periods beginning on or after 1 April 2025. When applying
the amendments, an entity cannot restate comparative
information.

The amendments are not expected to have a material
impact on the Company's financial statements.

4. Significant accounting judgments, estimates and
assumptions

The preparation of financial statements in conformity with
Ind AS requires management to make estimates, judgments
and assumptions that affect the application of accounting
policies and the reported amounts of assets and liabilities
(including contingent liabilities) and disclosures as of the
date of the financial statements and the reported amounts
of revenue and expenses for the reporting period. Actual
results could differ from these estimates. Accounting
estimates and underlying assumptions are reviewed
on an ongoing basis and could change from period to
period. Appropriate changes in estimates are recognised
in the period in which the Company becomes aware of
the changes in circumstances surrounding the estimates.
Any revisions to accounting estimates are recognised
prospectively in the period in which the estimate is
revised and future periods. Following are estimates and
judgements that have significant impact on the carrying
amount of assets and liabilities at each balance sheet:

4.1 Business Model Assessment

Classification and measurement of financial assets
depends on the results of the SPPI (Solely Payments of
Principal and Interest) and the business model test. The
Company determines the business model at a level that
reflects how groups of financial assets are managed
together to achieve a particular business objective. This
assessment includes judgment reflecting all relevant
evidence including how the performance of the assets
is evaluated and their performance measured, the risks
that affect the performance of the assets and how these
are managed. The Company monitors financial assets
measured at amortised cost or fair value through other
comprehensive income that are derecognised prior to their

maturity to understand the reason for their disposal and
whether the reasons are consistent with the objective of the
business for which the asset was held. Fair value through
profit or loss (FVTPL), where the assets are managed
in accordance with an approved investment strategy
that triggers purchase and sale decisions based on the
fair value of such assets. Such assets are subsequently
measured at fair value, with unrealised gains and losses
arising from changes in the fair value being recognised in
the standalone statement of profit and loss in the period in
which they arise.

4.2 Defined employee benefit assets and liabilities

The cost of the defined benefit gratuity plan and the
present value of the gratuity obligation are determined
using actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from actual
developments in the future. These include the determination
of the discount rate; future salary increases and mortality
rates. Due to the complexities involved in the valuation and
its long-term nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All assumptions
are reviewed annually.

4.3 Fair value measurement

When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value
is measured using various valuation techniques. The
inputs to these models are taken from observable markets
where possible, but where this is not feasible, a degree of
judgment is required in establishing fair values. Judgments
include considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about these
factors could affect the reported fair value of financial
instruments.

4.4 Impairment of financial asset

The measurement of impairment losses across all
categories of financial assets requires judgement, in
particular, the estimation of the amount and timing of
future cash flows and collateral values when determining
impairment losses and the assessment of significant
increase in credit risk. These estimates are driven by a
number of factors, changes in which can result in different
levels of allowances.

It has been the Company's policy to regularly review its
models in the context of actual loss experience and adjust
when necessary.

The impairment loss on loans and advances is disclosed in
more details in Note 3.2 (iii)(h) overview of ECL principles.

4.5 Effective Interest Rate (EIR) method

The Company's EIR methodology, recognises interest
income / expense using a rate of return that represents the
best estimate of a constant rate of return over the expected
behavioral life of loans given / taken and recognises the
effect of potentially different interest rates at various stages
and other characteristics of the product life cycle (including
prepayments and penalty interest and charges).

This estimation, by nature, requires an element of judgment
regarding the expected behavior and life-cycle of the
instruments, as well expected changes to India's base rate
and other fee income/expense that are integral parts of the
instrument

4.6 Contingent liabilities and provisions other than
impairment on loan portfolio

The Company operates in a regulatory and legal
environment that, by nature, has a heightened element
of litigation risk inherent to its operations. As a result, it is
involved in various litigation and arbitration in the ordinary
course of the Company's business.

When the Company can reliably measure the outflow
of economic benefits in relation to a specific case and
considers such outflows to be probable, the Company
records a provision against the case. Where the probability
of outflow is considered to be remote, or probable, but a
reliable estimate cannot be made, contingent liability is
disclosed.

Given the subjectivity and uncertainty of determining the
probability and amount of losses, the Company takes into
account a number of factors including legal advice, the
stage of the matter and historical evidence from similar
incidents. Significant judgment is required to conclude on
these estimates.

4.7 Share based payments

Estimating fair value for share based payment requires
determination of the most appropriate valuation model.
The estimate also requires determination of the most
appropriate inputs to the valuation model including the
expected life of the option, volatility and dividend yield
and making assumptions about them. The assumption
and models used for estimating fair value for share based
payments transactions are disclosed in Note 47 Employee
stock option plan (ESOP).

4.8 Expected credit loss

When determining whether the risk of default on a
financial instrument has increased significantly since
initial recognition, the company considers reasonable
and supportable information that is relevant and available
without undue cost or effort. This includes both quantitative
and qualitative information and analysis, based on the
company's historical experience and credit assessment
and including forward-looking information.

4.9 Deferred tax

Deferred tax is recorded on temporary differences
between the tax bases of assets and liabilities and their
carrying amounts, at the rates that have been enacted or
substantively enacted at the reporting date. The ultimate
realization of deferred tax assets is dependent upon the
generation of future taxable profits during the periods in
which those temporary differences become deductible.
The Company considers the expected reversal of deferred
tax liabilities and projected future taxable income in making
this assessment. The amount of the deferred tax assets

considered realizable, however, could be reduced in the
near term if estimates of the future taxable income during
the carry-forward period are reduced.

4.10 Leases

Ind AS 116 defines a lease term as the non-cancellable
period for which the lessee has the right to use an
underlying asset including optional period, when an entity
is reasonably certain to exercise an option to extend (or not
to terminate) a lease. The Company considers all relevant
facts and circumstances that create an economic incentive
for the lessee to exercise the option when determining
the lease term. The option to extend the lease term are
included in the lease term, if it is reasonably certain that the
lessee will exercise the option. The Company reassess the
option when significant events or changes in circumstances
occur that are within the control of the lessee.

4.11 Other estimates

These include contingent liabilities, useful lives of tangible
and intangible assets etc.

( B ) Terms / rights / restrictions attached to equity shares

The Company has only one class of equity shares having par value of ' 10/- each share. Each holder of equity share is
entitled to one vote per share. The Company declares and pay dividends in Indian Rupees. The dividend proposed if any,
by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting except in case of
interim dividend.

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.

During the year ended 31 March 2025 dividend recognized as distribution to equity shareholders was ' 1.50 per share being
final dividend year ended 31 March 2024. The total dividend appropriated amounts to ' 371.85 Lacs (Previous year ' 246.40
Lacs).

( G ) Capital management

The Company's objective for capital management is to maximize 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, operating cash flows
generated and need based borrowings for short term debt.

In addition to above the Company is required to maintain a minimum networth as prescribed from time to time by the
Securities and Exchange Board of India (Stock brokers and sub-brokers) Regulations 1992. The management ensures
that this is complied at all times.

Nature and purpose of reserve

a) Securities premium

Securities Premium reserves is used to record the premium on issue of shares. The reserve can be utilised only for limited
purposes such as issuance of bonus shares, writing off the preliminary expenses 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 general reserve, dividends
or other distributions paid to shareholders. It also includes remeasurements gains and losses on defined benefit plans
recognised in other comprehensive income (net of taxes).

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. Consequent to introduction of Companies Act, 2013,
the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn.
However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific
requirements of Companies Act, 2013. This also includes transfer within equity i.e. transfer from Equity-Settled
share-based payment reserve towards the amount recognised for services received from an employee, if the vested
equity settled share based payments instruments are later forfeited or not exercised.

d) Equity-settled share-based payment reserve

This reserve is created by debiting the statement of profit and loss account with value of share options granted to the
employees. Once shares are issued by the Company, the amount in this reserve will be transferred to share capital,
securities premium or retained earnings.

4l| SEGMENT INFORMATION

Primary Segment - The Chief Operating Decision Maker (CODM) monitors the operating results of the business segment
separately for the purpose of making decision about resource allocation and performance assessment. Segment performance
is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. The operating
segment has been identified considering the nature of services, the differing risks and returns, the organization structure
and internal financial reporting system. The business segment has been considered as the primary segment for disclosure.
The primary business of the Company relates to one business segment namely “Advisory and Transactional Services”
comprising of broking and distribution of securities, investment banking and other related financial intermediation services
therefore primary business segment reporting as required by Ind AS “Segment Reporting” is not applicable.

(D) Terms and conditions of transactions with related parties

i. Salary and other benefits

The amounts disclosed are the amount recognised as an expense during the year which includes short-term
benefits. The amounts do not include expense, if any, recognised towards employee stock option expenses, post¬
employment benefits and other long-term benefits as such expenses are recognised for the Company as a whole
and the amounts attributable to related parties are not separately determined.

ii. Advisory fees paid

The Company pays advisory fees to its wholly owned subsidiary incorporated in Singapore at cost plus markup of
9%.

iii. Sitting fees and Commission paid to non-executive directors

All the non-executive directors were paid sitting fees for attending the board and committee constituted
by the Board. Apart from the above, there are no other pecuniary relationships or transactions between any
non-executive directors and the Company during the year under review. Commission to the non-executive directors
is the amount recognised as an expense during the financial year. No share option has been granted to the non¬
executive directors under the scheme.

iv. Donation given to Emkay Charitable Foundation

These transactions are in the ordinary course of business.

v. Gratuity Contribution

Gratuity contribution expense is recognized basis actuary valuation report obtained from actuary appointed for the
purpose and relied upon by the auditors.

vi. Purchase gift and stationery items

These transactions are in the ordinary course of business.

vii. Dividend paid

Final Dividend is paid to all the shareholders whose name/s appear in the register of members as on the record
date including related parties of the companies which is approved by the Board of Directors/shareholders.

viii. Income from broking and allied activities

The Company collects various charges which include but are not limited to brokerage, account maintenance
charges, depository charges, interest on margin trading funding, delayed payment charges, facility fees etc. on the
same terms as applicable to the third parties in an arm's length transaction and in the ordinary course of business.

ix. Rent recovery Income

Company has leased premises at Worli, Mumbai which is shared with subsidiaries. The Company recovers the
rent from subsidiaries based on actual rent paid and areas utilized by them.

Company also owns property at Dadar, Mumbai which is shared with subsidiaries. The Company recovers the rent
from subsidiaries based on available market rent of the said premises and areas utilized by them.

x. Dividend Received

Final Dividend was received from one of the wholly owned subsidiaries of the company. Dividend was issued
compliant with relevant law and regulation applicable to the company.

xi. Share of Profit in Associates

Profit is on account of exit of the Company as a partner from associate.

xii. ESOP granted to employees

The Company has granted stock options to employees of one of its subsidiaries. The Company has obtained
a valuation report determining value as on the grant date. The excess of options over the exercise price is
recognised as a deemed investment in the books of the Company.

xiii. Loans taken from related parties

The Company has taken loans from related parties for working capital requirements. The loan is unsecured and
for the short term. The loans carry interest at 10% p.a. and is repayable on demand.

xiv. Reimbursement of expenses recovered

In case the Company made the payment on behalf of related parties then the same is recovered as reimbursement.
Also, few expenses spent are recovered basis agreed terms.

xv. Margin deposit received and repayment for securities trading

These transactions are in the ordinary course of business.

xvi. Receipt of capital contribution in associate

Same on account of exit of the Company as a partner from associate.

xvii. Issue of non-convertible debenture

The NCDs are unsecured, issued to eligible investors including related parties on a private placement basis in
accordance with the applicable financial reporting framework.

xviii. Investment in subsidiary

The company has invested in Equity shares of Emkay Global Financial Services IFSC private limited at face value
of ' 10.00 per share amounting to ' 5.00 crores. The Company is a wholly owned subsidiary.

xix. Trade payable and payable to subsidiary companies

Trade payable outstanding balances and payable to subsidiary companies are unsecured, interest free and require
settlement in cash. No guarantee or other security has been given against these payables.

xx. Trade receivable

Trade receivables outstanding balances are unsecured, interest free and require settlement in cash. No guarantee
or other security has been received against the receivable.

ESOP-2007

The exercise price shall be equal to the latest available closing market price on the date prior to the date on which the
Nomination, Remuneration and Compensation Committee finalizes the specific number of Options to be granted to the
employees.

ESOP-2010

The exercise price shall be calculated on the basis of latest closing price of the Company's equity shares quoted on the
Stock Exchange prior to the date of the grant of Options, which for this purpose shall be date on which the Nomination,
Remuneration and Compensation Committee meets to make its recommendations for grant of Options.

ESOP-2018

The exercise price shall be the closing price of the Company's equity shares quoted on the Stock Exchange immediately
prior to the date of grant of the Options, which for this purpose shall be the date on which the Nomination, Remuneration
and Compensation Committee meets to make its recommendations for the grant of the Options. The Stock Exchange to be
selected for determining the closing price shall be in accordance with the SEBI ESOP Regulations. The Committee may, at its
sole discretion, consider a discount to such closing price.

b) Defined benefit plan

The Company has defined benefit gratuity plan governed by the Payment of Gratuity Act, 1972. Every employee who
has completed five years or more of service is entitled to gratuity on departure at 15 days last drawn salary for each
competed year of service or part thereof in excess of six months.

The plan is funded with insurance companies in the form of qualifying insurance policy. The following table summarize
the components of net benefit expense recognized in the statement of profit and loss, other comprehensive income and

amount recognized in balance sheet which has been determined by an Actuary appointed for the purpose and relied
upon by the Auditors.

Discount rate

The discount rate for this valuation is based on government bonds having similar terms to duration of liabilities. Due to
lack of deep and secondary bond market in India, government bond yields are used to arrive at the discount rate.

Mortality rate

If the actual mortality rate in the future turns out to be more or less than expected, then it may result in an increase /
decrease in the liability.

Employee turnover/withdrawal rate

If the actual withdrawal rate in the future turns out to be more or less than expected, then it may result in an increase /
decrease in the liability.

Salary escalation rate

More / less than expected increase in the future salary levels may result in an increase / decrease in the liability.

52 Trade payables include ' 8.60 Lacs (P.Y. ' 41.77 Lacs) and other liabilities under other financial liabilities include
' 9.60 Lacs (P.Y. ' 0.50 Lacs) being an aggregate amount of deposits in the Company's bank accounts made directly
by clients whose details are awaited. Appropriate accounting treatment is given on a regular basis on receipt of required
information as and when received.

53 Income includes ' 20.32 Lacs (P.Y. ' 0.74 Lacs) and expense includes ' 30.95 Lacs (P.Y. ' 45.01 Lacs) pertaining to
earlier year.

~| FINANCIAL RISK MANAGEMENT

The Company has established a comprehensive system for risk management and internal controls for all its businesses
to manage the risks that it is exposed. The objective of its risk management framework is to ensure that various risks are
identified, measured and mitigated and also that policies, procedures and standards are established to address these
risks and ensure a systematic response in the case of crystallization of such risks.

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

a) Credit risk

b) Liquidity risk

c) Market risk

The risk management system features three lines of defence approach.

1. The first line of defence comprises its operational departments, which assume primary responsibility for their own
risks and operate within the limits stipulated in various policies approved by the Board or by committees constituted
by the Board.

2. The second line of defence comprises specialized departments such as risk management and compliance. They
employ specialized methods to identify and assess risks faced by the operational departments and provide them
with specialized risk management tools and methods, facilitate and monitor the implementation of effective risk
management practices, develop monitoring tools for risk management, internal controls and compliances, report
risk related information and promote the adoption of appropriate risk prevention measures.

3. The third line of defence comprises the internal audit and external audit functions. They monitor and conduct
periodic evaluations of the risk management, internal controls, and compliance activities to ensure the adequacy
of risk controls and appropriate risk governance and provide the Board with comprehensive feedback.

a) Credit risk

It is risk of financial loss that the Company will incur a loss because its customers or counterparties to financial
instruments fail to meet its contractual obligation.

The Company's financial assets comprise cash and bank balances, trade receivables, loans, investments, and other
financial assets which comprise mainly of income, deposits, advances and other receivables.

The maximum exposure to credit risk at the reporting date is primarily from Company's trade receivable and loans.
Details of exposure to credit risks for trade receivables and loans:

Trade receivable:

The Company applies the Ind AS 109 simplified approach to measure expected credit losses (ECLs) for trade receivables
at an amount equal to lifetime ECLs. The ECLs on trade receivables are calculated based on actual historic credit loss
experience over the preceding three to five years on the total balance of non-credit impaired trade receivables. The
Company considers a trade receivable to be credit impaired when one or more detrimental events have occurred, such
as significant financial difficulty of the client or it is becoming probable that the client will enter bankruptcy or other
financial reorganization. When a trade receivable is credit impaired, it is written off against trade receivables and the
amount of the loss is recognized in the income statement. Subsequent recoveries of amounts previously written off are
credited to the income statement.

Loans:

Loans comprise of margin trading funding (MTF) for which staged approach is followed for determination of ECL.

Stage 1 : All standard loans in MTF loan book not due or upto 30 days past due (DPD) are considered as Stage 1 assets
for computation of expected credit loss.

Stage 2 : Exposure under stage 2 includes under-performing loans having 31 to 90 days past due (DPD).

Stage 3 : Exposures under stage 3 include non-performing loans with overdue more than 90 days past due (DPD).
Based on historical data, the company assigns Probability of Default (PD) to stage 1 and stage 2 and applies it to the
Exposure at Default (EAD) to compute the ECL. For Stage 3 assets PD is considered as 100%.

The company does not have any loan book which may fall under stage 2 or stage 3.

The following table provides information about exposure to credit risk and ECL on Loans

Other financial assets considered to have a low credit risk:

Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks with high credit ratings
assigned by international and domestic credit rating agencies. Investments comprise of quoted equity instruments,
mutual funds which are market tradable. Other financial assets include deposits for assets acquired on lease and with
qualified clearing counterparties and exchanges as per the prescribed statutory limits.

Liquidity risk is the risk that the entity will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The entity's approach to managing liquidity is to ensure, as far as
possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the entity's reputation.

Prudent liquidity risk management requires sufficient cash and marketable securities and availability of funds through adequate
committed credit facilities to meet obligations when due and close out market positions.

The Company has a view of maintaining liquidity with minimal risks while making investments. The Company invests its
surplus funds in short term liquid assets in bank deposits. The Company monitors its cash and bank balances periodically in
view of its short term obligations associated with its financial liabilities.

Market risk arises when movements in market factors (foreign exchange rates, interest rates, credit spreads and equity prices)
impact the Company's income or market value of its portfolios. The Company, in its course of business, is exposed to market
risk due to changes in equity prices, interest rates and foreign exchange rates. The objective of market risk management is
to maintain an acceptable level of market risk exposure while aiming to maximize returns.

(i) Equity Price

The Company's exposure to equity price risk arises primarily on account of its proprietary positions and on account of
margin bases positions of its clients in equity cash and derivative segments.

The Company's equity price risk is managed in accordance with its Risk Policy approved by the Board.

(ii) Interest rate risk

The Company is exposed to Interest rate risk if the fair value or future cash flows of its financial instruments will fluctuate
as a result of changes in market interest rates. Fair value interest rate risk is the risk of changes in fair values of fixed
interest bearing investments because of fluctuations in the interest rates.

The Company's interest rate risk arises from interest bearing deposits with bank and loan given to customers. Such
instrument exposes the Company to fair value interest rate risk. Management believes that the interest rate risk attached
to these financial assets is not significant due to the nature of these financial assets

(iii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates.

Foreign currency risk management

In respect of foreign currency transactions, the Company does not hedge the exposures since the management believes
that the same is insignificant in nature and will not have a material impact on the Company.

The Company's exposure to foreign currency risk at the end of the reporting period is as shown as under: -

III. Fair value hierarchy:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the
principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price),
regardless of whether that price is directly observable or estimates using a valuation technique.

The investments included in level 1 of fair value hierarchy have been valued using quoted prices for instruments in an
active market. The investments included in Level 2 of fair value hierarchy have been valued using valuation techniques
based on observable market data. There were no transfers between level 1 and level 2.

IV. Valuation techniques used to determine fair value:-

• Quoted equity instruments - Quoted closing price on stock exchange.

• Alternative investment funds - Net asset value of the respective schemes.

V. Financial instruments not measured at fair value

Financial assets not measured at fair value include cash and cash equivalents, bank balance other than cash and
cash equivalents, trade receivables, loans and other financial assets. These are financial assets whose carrying
amounts approximate fair value, due to their short term nature.

Additionally, financial liabilities such as borrowings, trade payables and other financial liabilities are not measured
at FVTPL, whose carrying amounts approximate fair value, because of their short-term nature.

At 31 March 2025 and 31 March 2024 the Company did not held any financial assets or financial liabilities which
could have been categorized as level 3.

¹ Debt Equity Ratio = Debt (Borrowings (other than debt securities) Debt securities Accrued interest)/Equity (Equity share
capital Other Equity)

² Debt Service Coverage Ratio = Profit/Loss before exceptional items, interest and tax (excludes unrealized gains/losses and
interest costs on leases as per IND AS 116 on Leases) / (Interest expenses (excludes interest costs on leases as per IND AS
116 on Leases) Current maturity of Long term loans)

³ Interest Service Coverage Ratio = Profit/Loss before exceptional items, interest and tax (excludes unrealized gains/losses
and interest costs on leases as per IND AS 116 on Leases)/Interest expenses (excludes interest costs on leases as per IND
AS 116 on Leases)

⁴ Net Worth = Equity shares capital Other equity

⁵ Current Ratio = Current Assets/Current Liabilities

⁶ Long Term Debt to Working Capital Ratio = Long Term Borrowing/Working Capital

⁷ Bad debt includes provision made on doubtful debts. Accounts receivable includes average trade receivables

⁸ Current Liability Ratio= Current Liabilities/Total Liabilities

⁹ Total Debts to Total Assets= Total Debts (Borrowings Debt Securities)/Total Assets

¹⁰ Debtors Turnover Ratio = Fee and Commission Income/Average Trade Receivables

¹¹ Operating Margin = Profit before tax/Total Revenue from operations

¹² Net Profit Margin= Profit after tax/Total Revenue from operations

61 The Board of Directors at their meeting held on 21 May, 2025, have recommended a dividend of ' 4 per share (on
face value of ' 10/- per equity share) for the year ended 31 March, 2025, subject to the approval of the members at
the ensuing annual general meeting. In terms of Ind AS 10 “Events after the Reporting Period”, the Company has not
recognized dividend as a liability at the end of the reporting period.

63 The Company's financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest
lac, except when otherwise indicated.

64 Disclosure of Capital to risk-weighted assets (CRAR),Tier I CRAR, Tier II CRAR and Liquidity coverage ratios required
under para (WB)(xvi) of Division III of Schedule III to the Act are 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.

65 During the year ended 31 March 2024, the Company has paid Advisory and other fees of ' 202.36 lacs under Fees
and Commission expenses to parties which are related to stock broking and wealth management business verticals.
However, based on commonly prevailing practices and to align with the presentations made by the peer companies, the
management considers it more relevant if such payments are disclosed in Brokerage sharing with intermediaries and
others under Fees and Commission expenses. Hence prior year comparatives for the year ended 31 March 2024 have
been restated by reclassifying ' 202.36 lacs from Advisory and other fees to Brokerage sharing with intermediaries and
others both under Fees and Commission expenses. The management believes that this reclassification does not have
any material impact on information presented in statement of profit and loss.

The Company has Interest Income on deposits (against overdraft and corporate credit card facilities) placed with banks.
The Company was previously disclosing the same as interest Income under Other Income. However, based on review
of legal provisions envisaged under the Companies Act, 2013 and also to align with the presentations used by the
peer group companies, the management considers it to be more relevant if such interest income is presented as
interest Income under Revenue from Operations. Prior year comparatives for the year ended 31 March 2024 have been
restated by reclassifying ' 115.64 lacs from Interest Income under Other Income to Interest Income under Revenue
from Operations. The management believes that this reclassification does not have any material impact on information
presented in statement of profit and loss.

~| OTHER STATUTORY INFORMATION

a) The Company is holding immovable property as disclosed in note no.13. Title deeds of the property are held in the
name of the Company.

b) The Company has complied with the requirements of the number of layers prescribed under Section 2(87) of the
Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

c) No proceeding has been initiated during the year or pending against the Company for holding any Benami property
under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

d) The Company has taken borrowings from Banks on the basis of security of current financial assets and all the
quarterly returns filed by the Company with the Banks are in agreement with the financial statements.

e) The Company is not declared a willful defaulter by any bank or financial institution or any other lender.

f) There are no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560
of Companies Act, 1956.

g) The Company does not have any charges or satisfaction which are yet to be registered with ROC beyond the
statutory period.

h) The Company has not entered into any scheme or arrangement which has an accounting impact on the current or
previous financial year.

i) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign
entities (Intermediaries) with the understanding 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

j) The Company has not received any fund from any persons or entities, 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,

k) The Company does not have any such transaction which is not recorded in the books of accounts that has 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).

l) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

~| EVENTS AFTER REPORTING DATE

There have been no events after the reporting date that require disclosure in these financial statements.

~| APPROVAL OF FINANCIAL STATEMENTS

The financial statements of the Company for the year ended 31 March 2025 were approved for issue by the Board of
Directors at their meeting held on 21 May 2025.

As per our report of even date For and on behalf of the Board of Directors of Emkay Global Financial Services Limited

For S. R. Batliboi & Co. LLP

Chartered Accountants Krishna Kumar Karwa Prakash Kacholia

ICAI Firm registration number : Managing Director Managing Director

301003E/E300005 DIN : 00181055 DIN : 00002626

Rutushtra Patell Saket Agrawal Bhalchandra Raul

Partner Chief Financial Officer Company Secretary

Membership No.123596 Membership No.FCS1800

Place : Mumbai Place : Mumbai

Date : 21 May 2025 Date : 21 May 2025