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LKP Securities Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

b. Rs. 3,021.16 Lakhs (Rs. Nil) taken from Piramal Enterprises Limited @ 11% interest p.a. and repayable in 12 months from the date of first disbursement and is secured by hypothecation of all current assets of the company, both present and future.

c. Fund based overdraft facility from Axis Bank Limited of Rs. NIL (Rs. 1.18 Lakhs) [Sanctioned Rs. 2,000.00 Lakhs] is secured by pledge of fixed deposits with bank, also Fund based facility of Rs.Nil (Rs.4.87 Lakhs) [Sanctioned 1,750.00 Lakhs] is secured by hypothecation of receivables of T 6 days with 50% margin and corporate guarantee given by LKP Wealth Advisory Limited (subsidiary company) - of Rs.500.00 lakhs (Rs. 500.00 lakhs) and pledge of mutual funds Rs.171.00 lakhs (Rs.171.00 Lakhs) and for intraday facilities of Rs. Nil [Sanctioned Rs.1,000 Lakhs] is secured with minimum 50% security in the form of pledge/lein on fixed deposits, mutual funds or listed shares or mortgage of property.

d. Non - Fund based facility from Axis Bank Limited sanctioned of Rs. 3,750.00 Lakhs (Rs.4,000.00 Lakhs) is secured by pledge of fixed deposits and personal guarantee from directors.

e. Fund based working capital loan and overdraft facility from Federal Bank Limited of Rs. 0.66 Lakhs (Rs. Nil) [Sanctioned Rs. 5,500.00 Lakhs] is secured by pledge of fixed deposits with bank and carries interest at weighted average underlying Fixed deposits plus 60 bps.

f. Fund based overdraft facility from South Indian Bank Limited of Rs. Nil [Sanctioned Rs. 45.00 Lakhs] is secured by lien of fixed deposits with bank.

b) Terms/rights attached to equity shares

The Company has issued only one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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.

f) Employees Stock Option Scheme (ESOP)

The Company had instituted an Employee Stock Option Plan (âESOP - 2017 or âthe Schemeâ) as approved by Board of Directors and Shareholders of the Company. Under the Scheme, 38,85,000 Stock Options were granted (Phase I: 37,00,000 & Phase II: 1,85,000) at a price of Rs. 7/- per option to the employees of the Company. As per the scheme, 33%, 33% and 34% of the total grant vested at the end of every year from the original grant dates. The options vested were exercisable at any time within a period of one year from the date of vesting and the equity shares arising on exercise of options were not subject to any lock in. The scheme has been discontinued during 2021. The Members of the Company had modified and amended the above ESOP - 2017 and subsequently the Company has granted

4.67.000 options and 11,75,580 options under Phase III and Phase IV respectively to its employees under the modified LKPS ESOP -2017, from the lapsed/balance options at a price of Rs. 7/- per option. As per the grant, 50% of the option vested after the expiry of 12 months and 50% of the option vested after the expiry of 24 months from the original date of grant. The options are exercisable at any time within a period of three years from the date of vesting and the equity shares arising on exercise of options were not subject to any lock in. There are no Options outstanding under Phase III as on 31 March, 2024. In Phase IV, 12,500 Options were exercised, 12,310 Options were lapsed during the year and 45,375 options are outstanding as at 31 March 2025.

Further, the Company has granted 3,50,000 options under Phase V & 1,50,000 options under Phase VI to its employees under the modified LKPS ESOP - 2017, at a price of Rs. 12/- per option. As per the grant, 50% of the option shall vest after the expiry of 12 months and 50% of the option shall vest after the expiry of 24 months from the original date of grant. The options vested would be exercisable at any time within a period of three years from the date of vesting and the equity shares arising on exercise of options shall not be subject to any lock in. In Phase V, 2,65,000 Options were exercised and 12,500 options lapsed during the year. As at 31 March, 2025, there are

35.000 Options outstanding in Phase V and 1,50,000 Options outstanding in Phase VI.

During the year, the Company has granted 8,28,000 options under Phase VII to its employees under the modified LKPS ESOP - 2017, at a price of Rs. 12/- per option. As per the grant, 50% of the option shall vest after the expiry of 12 months and 50% of the option shall vest after the expiry of 24 months from the original date of grant. The options vested would be exercisable at any time within a period of three years from the date of vesting and the equity shares arising on exercise of options shall not be subject to any lock in. No options have been exercised during the year. As at 31 March 2025 there are 8,28,000 Options outstanding in Phase VII.

The applicable tax rate is the standard effective corporate income tax rate in India. The tax rate is 25.168% and 29.12% for the year ended 31 March 2025 and 31 March 2024.

Deferred tax assets and liabilities are offset where the Company has a legally enforceable right to do so. For analysis of the deferred tax balances (after offset) for financial reporting purposes refer note 9.

The Company does not have any temporary differences in respect of unutilized tax losses as at 31 March 2025.

(d) The Company does not have any unrecorded transactions that have been surrenderred or disclosed as income during the year in the tax assessment under Income Tax Act, 1961.

31 Leases-short term

For short-term leases (lease term of 12 months or less) and leases of low-value assets , the Company has opted to recognise a lease expense on a straight-line basis as permitted by Ind AS 116. This expense is presented within âother expenses'' forming part of the Financial Statements. Lease rentals of Rs.41.58 lakhs (2024- Rs.45.91 Lakhs) pertaining to short term leases and low value asset has been charged to statement of profit and loss.

# The amount represents the best possible estimates arrived at on the basis of available information. The Company has engaged reputed advocates to protect its interests and has been advised that it has strong legal positions against such disputes.''

(ii) Litigation

The Company has filed various cases for recovery of dues and suits are pending in various courts. The Company has engaged advocates to protect the interest of the Company and expects favourable decision.

(iii) Capital commitments

There are no capital commitments in current year as well as previous year.

(iv) No proceedings are initiated or pending against the Company for holding Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

NOIES FORMING PARI UF I HE SIANUALONE FINANCIAL SIAIEMENIS

34 Segment Informations

Disclosure under Indian Accounting Standard 108 - âOperating Segments'' is not given as, in the opinion of the management, the entire business activity falls under one segment, viz., primarily engaged in equity,currency and commodity broking and its related activities. The Company conducts its business only in one Geographical Segment, viz., India.

36 Micro, small and medium enterprises

Trade payables and other payables includes amount payable to Micro, Small and Medium Enterprises. Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMEDA) which came into force from 02 October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, the following disclosures are made for the amounts due to the Micro, Small and Medium enterprises, who have registered with the competent authorities

The Company has compiled the relevent information from its suppliers about their coverage under the Micro, Small and Medium Enterperises Development Act, 2006 (MSMED Act).

37 Financial Instruments

i) Financial risk management objective and policies

The Company''s principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments, loans, trade receivables, other receivables, and cash and bank balances that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s management oversees the management of these risks.

a) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk and other price risk such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, other financial instruments.

1) Interest rate risk:

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that future cash flows of floating interest bearing investments will vary because of fluctuations in interest rates.

The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s loans from banks and Nonconvertible debentures, hence is not considered for calculation of interest rate sensitivity of the Company.

2) Foreign currency risk:

The Company enters into transactions in currency other than its functional currency and is therefore exposed to foreign currency risk. The Company analyses currency risk as to which balances outstanding in currency other than the functional currency of that Company. The management has taken a position not to hedge this currency risk.

The Company undertakes transactions denominated in foreign currencies, consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are not hedged considering the insignificant impact and period involved on such exposure.

The Company does not have any foreign currency risk. Hence no sensitivity analysis is required

3) 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, deposits and loans given, investments and balances at bank.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Expected Credit Loss is based on actual credit loss experienced and past trends based on the historical data.

Receivables from brokerage (clients)

Trade receivables of the Company are of short duration. The Company has computed expected credit loss where there is significant delay in collection by grouping under various ageing categories and based on historical data of probability of default is applied to arrive at ECL. For unsecured receivables aged over 90 days, probability of default is 100% and 100% ECL provision is made.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by credit rating agencies. Investments primarily include investment in equity shares, mutual funds and bonds.

b) Liquidity Risk:

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The Company''s principal source of liquidity are cash and cash equivalents and the cash flow i.e. generated from operations. The Company consistently generated strong cash flows from operations which together with the available cash and cash equivalents and current investment provides adequate liquidity in short terms as well in the long term.

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at :

ii) Capital Management

For the purpose of Company''s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company''s Capital Management is to maximize shareholder value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The management assessed that cash and cash equivalents and bank balances, trade receivables, other financial assets, certain investments, trade payables and other current liabilities approximate their fair value largely due to the short-term maturities of these instruments. Difference between carrying amount and fair value of bank deposits, other financial assets, other financial liabilities and borrowings subsequently measured at amortised cost is not significant in each of the year presented.

38 Fair Value Hierarchy :

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. prices) or

indirectly (i.e. derived from prices).

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of a fair value hierarchy, then the fair value

measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Following table provides the fair value measurement hierarchy of the Company''s assets and liabilities. Quantitative disclosures of fair value measurement hierarchy for assets and liabilities as at 31 March 2025

Financial assets not measured at fair value includes 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 trade payables and other financial liabilities are not measured at FVTPL, whose carrying amounts approximate fair value, because of their short-term nature.

39 Gratuity and other post employment benefit plans

The disclosures of employee benefits as defined in the Ind AS 19 ââEmployee Benefitsâ are given below:

The gratuity plan is a funded plan and the Company makes contributions to recognised funds in India. The details of post retirement gratuity plan are as follows:

44 There are no unclaimed dividend for a period of more than seven years. Further, there are no amounts due and outstanding to be credited to Investor''s Education and Protection Fund as on 31 March 2025.

45 The Company, has no long-term contracts including derivative contracts having material foreseeable losses as at 31 March 2025.

46 Disclosure as required by schedule V (A) (2) of the SEBI (Listing Obligation and Disclosure Requirements)

The Company has not given any Loans and advances in the nature of loans to firms/companies in which director is interested.

47 The Company has spent Rs. 22.50 lakhs towards corporate social responsibility (CSR) for the financial year 31 March, 2025. During the financial year 31 March, 2024, the Company was not required to spent towards corporate social responsibility (CSR) as per the provisions of section 135 of the Companies Act, 2013.

49 Information required under Section 186(4) of the Companies Act, 2013

a) There are no loans given, guarantee given and securities provided during the year except loans to staff and margin trading funding as disclosed in notes.

b) There are no investments made other than disclosed in Note 6.

50 During the year, the Company sold its immovable property, which was classified as Non-Current Assets (NCA) held for sale in accordance with Ind AS 105 âNon-Current Assets Held for Sale and Discontinued Operations.â The sale is made to a related party, based on valuation report by an independent valuer, and approved by the shareholders through a postal ballot resolution. Net gain of Rs. 422.96 lakhs on sale of NCA has been recognised in note 23 âOther incomeâ in the Statement of profit and loss.

51 Struck of companies

There are no transactions during the year with struck off companies except balances outstanding as at 31 March 2025

52 The Company has not traded or invested in crypto currency or Virtual currency during the year.

53 During the year 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 or entity 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 person or entities identified in any manner whatsoever by or on behalf of Company (ultimate beneficiaries) or (ii) provide any guarantee, security or the like to or behalf of the ultimate beneficiaries.

54 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 lender invest in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or (ii) provide any guarantee, security or the to or behalf of the (ultimate beneficiaries) or (iii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

55 Additional regulatory information required under (WB) (xvi) 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.

57 Prior Year Comparatives

Previous year''s figures have been regrouped / reclassified/rearranged wherever necessary to correspond with the current year''s classifications / disclosures. Figures in brackets pertain to previous year.

Mar 31, 2024

a. Â Â Â The Company has issued 815 (Nil) 10.5% Secured Unlisted Redeemable Non Convertible debentures of Rs.1 Lakh each which isÂ repayable in 3 years and is secured by corporate guarantee given by LKP Finance Limited (related party). The first interest payment isÂ due on 31 March, 2025.

b. Â Â Â Overdraft facility from Bank of India Limited of Rs.Nil (Rs.700 Lakhs) [Sanctioned Rs.1,016.00 Lakhs] is secured by hypothecationÂ of receivables of T+3 days with 50% margin and first pari passu charge on book debts of the Company, both present and future. TheÂ overdraft facility is further secured by a collateral security of 50% in form of TDR, equitable mortgage of property and personal guaranteeÂ from directors. The loan is repayable on demand and carries interest @ 11.90%. The loan has been repaid during the year and chargeÂ has been satisfied with the Registrar of Companies.

c. Â Â Â Fund based overdraft facility from Axis Bank Limited of Rs. 1.18 Lakhs (Rs. Nil) [Sanctioned Rs. 2,000.00 Lakhs] is secured by pledgeÂ of fixed deposits with bank, also Fund based facility of Rs.4.87 Lakhs (Rs.Nil) [Sanctioned 1,000.00 Lakhs] is secured by hypothecationÂ of receivable of T+6 days with 50% margin and corporate guarantee by subsidiary Company of Rs.500.00 lakhs (Rs.Nil) and pledge ofÂ mutual fund from current investment Rs.171.00 lakhs and for intraday facilities of Rs. Nil [Sanctioned Rs.1,500 Lakhs] with minimum 50%Â security in the form of pledge/lein/mortgage of property.

d. Â Â Â Fund based overdraft facility from Federal Bank Limited of Rs. Nil (Rs. 28.42 Lakhs) [Sanctioned Rs. 500.00 Lakhs] is secured by pledgeÂ of fixed deposits with bank and carries interest at weighted average underlying Fixed deposits plus 100 bps.

e. Â Â Â Fund based overdraft facility from Yes Bank Limited of Rs. Nil (Rs. Nil) [Sanctioned Rs.Nil (Rs. 94.50 Lakhs)] is secured by pledge of fixedÂ deposits with bank. The loan has been repaid during the year. The charge is neither created nor satisfied with Registrar of Companies.

f. Â Â Â Non - Fund based facility from Axis Bank Limited sanctioned of Rs. 4,000 Lakhs [Sanctioned Rs. 4,000 Lakhs] is secured by pledge ofÂ fixed deposits and personal guarantee from directors.

g. Â Â Â Non - Fund based facility from ICICI Bank Limited sanctioned of Rs. 2,000 Lakhs [Sanctioned Rs. 2,000 Lakhs] is secured by pledge ofÂ term deposits and personal guarantee from directors.

h. Â Â Â Fund based overdraft facility from ICICI Bank Limited of Rs. Nil (Rs. Nil) [Sanctioned Rs. 1,000.00 Lakhs] is secured by approved bondsÂ and government securities.

i. Â Â Â Fund based overdraft facility from South Indian Bank Limited of Rs. Nil [Sanctioned Rs. 45.00 Lakhs] is secured by lien of fixed depositsÂ with bank.

j. Â Â Â The details of quarterly returns filled by the company against security provided is as under

b) Terms/rights attached to equity shares

The Company has issued only one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The final dividend proposed by the Board of Directors isÂ subject to the approval of the shareholders in the ensuing Annual General Meeting.

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.

f) Employees Stock Option Scheme (ESOP)

The Company had instituted an Employee Stock Option Plan (âESOP - 2017 or âthe Schemeâ) as approved by Board of Directors and Shareholders of the Company. Under the scheme, 38,85,000 Stock Options were granted (Phase I: 37,00,000 & Phase II: 1,85,000) at aÂ price of Rs. 7/- per option to the employees of the Company. As per the scheme, 33%, 33% and 34% of the total grant vested at the endÂ of every year from the original grant dates. The options vested were exercisable at any time within a period of one year from the date

of vesting and the equity shares arising on exercise of options not subject to any lock in. The scheme has been discontinued during the 2021. Further, the Members of the Company had modified and amended the above ESOP - 2017 and subsequently the Company hasÂ granted 4,67,000 options and 11,75,580 options under phase III and phase IV respectively to its employees under the modified LKPSÂ ESOP - 2017, from the lapsed/balance options at a price of Rs. 7/- per option. As per the grant, 50% of the option vested after the expiryÂ of 12 months and 50% of the option vested after the expiry of 24 months from the original date of grant. The options are exercisable atÂ any time within a period of three years from the date of vesting and the equity shares arising on exercise of options were not be subjectÂ to any lock in. There are no Options outstanding under Phase III as on 31 March, 2024. 2,79,175 Options were exercised during the yearÂ under Phase IV and 70,185 Options are outstanding as at 31 March, 2024.

Further, the Company has granted 3,50,000 options under Phase V & 1,50,000 options under Phase VI to its employees under the modified LKPS ESOP - 2017, at a price of Rs. 12/- per option. As per the grant, 50% of the option shall vest after the expiry of 12 monthsÂ and 50% of the option shall vest after the expiry of 24 months from the original date of grant. The options vested would be exercisable atÂ any time within a period of three years from the date of vesting and the equity shares arising on exercise of options shall not be subjectÂ to any lock in. 12,500 Options were exercised during the year and 25,000 options lapsed under Phase V. As at 31 March, 2024, there areÂ 3,12,500 Options outstanding under Phase V and 1,50,000 Option outstanding under Phase VI.

The applicable tax rate is the standard effective corporate income tax rate in India. The tax rate is 29.12% for the year ended 31 March 2024.

The Company does not have any temporary differences in respect of unutilized tax losses as at 31 March 2024.

(d ) The Company does not have any unrecorded transactions that have been surrenderred or disclosed as income during the year in the tax assessment under Income Tax Act, 1961.

31 Leases-short term

For short-term leases (lease term of 12 months or less) and leases of low-value assets , the Company has opted to recognise a lease expense on a straight-line basis as permitted by Ind AS 116. This expense is presented within âother expenses' forming part of theÂ Financial Statements. Lease rentals of Rs.45.91 lakhs (2023- Rs.53.56 Lakhs) pertaining to short term leases and low value asset hasÂ been charged to statement of profit and loss.

(ii)Â Litigation

(iii) Â Â Â Capital commitments

There are no capital commitments in current year as well as previous year.

(iv) Â Â Â No proceedings are initiated or pending against the Company for holding benami property under the Benami Transactions (Prohibition)Â Act, 1988 (45 of 1988).

34 Segment Informations

Disclosure under Indian Accounting Standard 108 - âOperating Segments' is not given as, in the opinion of the management, the entire business activity falls under one segment, viz. ,primarily engaged in equity,currency and commodity broking and its related activities. TheÂ Company conducts its business only in one Geographical Segment, viz., India.

The Company has compiled the relevent information from its suppliers about their coverage under the Mico, Small and Medium Enterperises Development Act, 2006 (MSMED Act).

37 Financial Instruments

i) Financial risk management objective and policies

The Company's principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include investments, loans, tradeÂ receivables, other receivables, and cash and bank balances that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's management oversees the management of these risks.

a) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk and other price risk such as equity price risk. FinancialÂ instruments affected by market risk include loans and borrowings, deposits, other financial instruments.

1) Interest rate risk:

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk thatÂ future cash flows of floating interest bearing investments will vary because of fluctuations in interest rates.

2) Â Â Â Foreign currency risk:

The Company enters into transactions in currency other than its functional currency and is therefore exposed to foreign currency risk. The Company analyses currency risk as to which balances outstanding in currency other than the functional currency of that Company. TheÂ management has taken a position not to hedge this currency risk.

The Company enters into transactions in currency other than its functional currency and is therefore exposed to foreign currency risk. The Company analysis currency risk as to which balances outstanding in currency other than the functional currency of that Company. TheÂ management has taken a position not to hedge this currency risk.

The Company does not have any foreign currency risk. Hence no sensitivity analysis is required

3) Â Â Â 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, deposits and loans given, investments and balancesÂ at bank.

b)Â Liquidity Risk:

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The Company's principal source of liquidity are cash and cash equivalents and the cash flow i.e. generated from operations. The Company consistently generated strong cash flows fromÂ operations which together with the available cash and cash equivalents and current investment provides adequate liquidity in short termsÂ as well in the long term.

ii) Capital Management

For the purpose of Company's capital management, capital includes issued capital and other equity reserves. The primary objective of the Company's Capital Management is to maximize shareholder value. The Company manages its capital structure and makes adjustmentsÂ in the light of changes in economic environment and the requirements of the financial covenants.

The management assessed that cash and cash equivalents and bank balances, trade receivables, other financial assets, certain investments, trade payables and other current liabilities approximate their fair value largely due to the short-term maturities of theseÂ instruments. Difference between carrying amount and fair value of bank deposits, other financial assets, other financial liabilities andÂ borrowings subsequently measured at amortised cost is not significant in each of the year presented.

38 Fair Value Hierarchy :

-Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

-Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices).

-Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of a fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to theÂ entire measurement.

The Following table provides the fair value measurement hierarchy of the Company's assets and liabilities.

Quantitative disclosures of fair value measurement hierarchy for assets and liabilities as at 31 March 2024

39 Gratuity and other post employment benefit plans

The disclosures of employee benefits as defined in the Ind AS 19 ââEmployee Benefitsâ are given below:

The gratuity plan is a funded plan and the Company makes contributions to recognised funds in India. The details of post retirement gratuity plan are as follows:

(a) Â Â Â The estimate of future salary increases considered in the actuarial valuation takes into account the rate of inflation, seniority,Â promotion and other relevant factors, such as supply and demand in the employment market.

(b) Â Â Â The Company provided for gratuity for employees in India as per the payment of Gratuity Act, 1972. employees who are in continuesÂ service for period of 5 years are eligible for gratuity. The gratuity plan is funded and the Company make contribution to recognisedÂ funds in India.

44Â Â Â Â There are no unclaimed dividend for a period of more than seven years. Further, there are no amounts due and outstanding to be creditedÂ to Investor's Education and Protection Fund as on 31 March 2024

45Â Â Â Â The Company, has no long-term contracts including derivative contracts having material foreseeable losses as at 31 March 2024

46Â Â Â Â Disclosure as required by schedule V (A) (2) of the SEBI (Listing Obligation and Disclosure Requirements)

The Company has not given any Loans and advances in the nature of loans to firms/companies in which director is interested .

47Â Â Â Â The Company is not required to spend corporate social responsibility (CSR) for the financial year ending 31 March, 2024. During theÂ financial year 31 March, 2023, the Company has spent Rs.16.60 Lakhs as per the provision of section 135 of the Companies Act, 2013.

49 Â Â Â Information required under Section 186(4) of the Companies Act, 2013

a) There are no loans given, guarantee given and securities provided during the year except loan to staff

b) There are no investments made other than disclosed in Note 6.

50Â Â Â Â The Board of Directors of the Company had decided to sell an Immovable property acquired pursuant to settlement for Rs. 672.04 Lakhs.Â The Company has classified the land as per Ind AS 105 â Non-current Assets Held for Sale and Discontinued Operations â. During theÂ finacial year the company has passed members resolution to sale the land to the promoter of the Company viz Mr.Mahendra V Doshi atÂ arms length price based on the valuation of independent valuer.

51Â During the previous year ended 31 March 2023 the Company has allotted:

On 25 July 2022, post approval from the regulators, the Company has allotted 59,88,023 warrants to Promoter and Promoter Group Entities at an issue price of Rs.16.70/- per warrant aggregating up to Rs. 1,000.00 Lakhs. Allotted Warrants were convertible into oneÂ equity share of face value of Rs. 2/- each within a period of 18 months from the date of allotment. The Company has alloted during theÂ year ended 31 March 2024, 29,94,012 equity shares (2023: 29,94,011 equity shares) against these warrants. Expenses amounting to Rs.Â 5.00 lakhs related to issue of warrants are charged directly to other equity during the previous year.

54 Â Â Â The Company has not traded or invested in crypto currency or Virtual currency during the year

55 Â Â Â During the year the Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any otherÂ sources or kind of funds) to any other person or entity including foreign entities (intermediaries) with the understanding (whether recordedÂ in writing or otherwise) that the intermediary shall (i) directly or indirectly lend or invest in other person or entities identified in any mannerÂ whatsoever by or on behalf of Company (ultimate beneficiaries) or (ii) provide any guarantee, security or the like to or behalf of the ultimateÂ beneficiaries.

56 Â Â Â The Company has not received any fund from any person(s) or entity(ies) including foreign entities (funding party) with the understandingÂ (ehether recorded in writing or otherwise) that the Company shall (i) directly or indirectly lender invest in any manner whatsoever by or onÂ behalf of the funding party (ultimate beneficiaries) or (ii) provide any guarantee, security or the to or behalf of the (ultimate beneficiaries)Â or (iii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

57 Â Â Â Additional regulatory information required under (WB) (xvi) of Division III of Schedule III amendment, disclosure of ratios, is not applicableÂ 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.

58 Â Â Â Prior Year Comparatives

Previous year's figures have been regrouped / reclassified/rearranged wherever necessary to correspond with the current year's classifications / disclosures. Figures in brackets pertain to previous year

Mar 31, 2019

1 Company information

LKP Securities Limited (âthe Company'') is domiciled and incorporated in India and its shares are publicly traded on the Bombay Stock Exchange(BSE) in India. The Company''s registered office is located at 203, Embassy centre, Nariman point, Mumbai 400021, Maharashtra, India. The Company is engaged as a stock and securities broker and providing other financial service with nationwide network across assets classes equities, debt, structured products, Portfolio Management services and Third party distribution.

The seperate financial statement (hereinafter referred to as âFinancial Statementsâ) of the Company for the year ended 31 March 2019 were authorised for issue by the Board of Directors at the meeting held on 2 May 2019.

Trade payables and other payables are non-interest bearing and are normally settled as per payment terms mentioned in the contract. In the opinion of the management, the balances of Payables are stated at book value and are payable.

For transactions relating to related party payables refer note 39.

* Secured against hypothecation of vehicles. The aforesaid borrowing carry interest rates @ 9.50% and are repayable in monthly installments by October 2019.

** Interest free, repayable on demand

Loans from Banks

Loan of Rs 494.39 Lakhs from Bank of India secured by first pari passu charge on book debts both present and future. The facility carries interest @ 12.40% presently (8.30 MCLR 0.30% BSS 3.80% CRP)

Loan of Rs 1,596.65 Lakhs from Yes Bank is secured by first pari passu charge on on all current assets of the company and personal guarantee of Promoters. The facility carries interest @11.95 % presently (1 year MCLR 300 bps)

Loan of Rs 431.04 Lakhs from South Indian Bank is secured against fixed deposit of the company. The loan carries interest rates which ranges from @ 7.75 % to 8.60% ( FD Rate 1 %)

Loans from Financial Institutions

Loan from Financial Institution IL&FS is secured by shares in pool account. The Loan carries interest @ 10.25%. The loan is repaid during the year.

b) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

c) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: NIL

e) Employees Stock Option Scheme (ESOP)

The Company had instituted an Employee Stock Option Plan (âESOP 2017 or âthe Schemeâ) as approved by Board of Directors and Shareholders of the Company. Under the scheme, 37,00,000 Stock Options were granted at a price of Rs. 7/- per option to the employees of the Company. As per the scheme, 33%, 33% and 34% of the total grant shall be vested at the end of every year from the original grant date. The options vested would be exercisable at any time within a period of one years from the date of vesting and the equity shares arising on exercise of options shall not be subject to any lock in. The said Scheme is administered by the Nomination and Remuneration Committee of the Board.

During the year ended 31 March 2019, the Company did not grant any stock option. Out of the options granted 7,13,440 stock options had been exercised. There are 25,96,200 Options outstanding as at 31 March 2019.

The applicable tax rate is the standard effective corporate income tax rate in India. The tax rate is 27.82% for the year ended 31 March 2019.

The Company does not have any temporary differences in respect of unutilized tax losses as at 31 March 2019.

2. Operating Leases

The Company has taken offices under leave and license agreements under cancellable/non-cancellable lease agreements that are renewable on periodic basis at the option of both the lessor and the lessee.

- The initial tenure of the lease is generally ranging from 12 months to 84 months.

3. (i) Contingent Liabilities

(ii) Litigation

The Company has filed various cases for recovery of dues and suits are pending in various courts. The company has engaged advocates to protect the interest of the company and expects favourable decision.

(iii) Capital Commitments

Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances) is Rs. 8 lakhs (2018 : 16.06 lakhs )

4. Segment Informationâs

Disclosure under Indian Accounting Standard 108 - âOperating Segments'' is not given as, in the opinion of the management, the entire business activity falls under one segment, viz. ,primarily engaged as stock and securities broker and providing the financial services. The Company conducts its business only in one Geographical Segment, viz., India.

5. Micro, small and medium enterprises

Trade payables and other payables include amount payable to Micro, Small and Medium Enterprises. Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMEDA) which came into force from 02 October , 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, the following disclosures are made for the amounts due to the Micro, Small and Medium enterprises, who have registered with the competent authorities.

6. Financial Instruments

i) Financial risk management objective and policies

The Company''s principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments, loans, trade receivables, other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s management oversees the management of these risks.

a) Market risk:

1) Interest rate risk:

The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term loan from banks. Redeemable preference shares carries fixed coupon rate and hence is not considered for calculation of interest rate sensitivity of the company.

2) Foreign currency risk:

The Company does not have any foreign currency risk. Hence no sensitivity analysis is required

3) Credit Risk:

b) Liquidity Risk:

ii) Capital Management

For the purpose of Company''s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company''s Capital Management is to maximize shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The company monitors capital using gearing ratio, which is Net debt divided by total capital.

7. Fair Value Hierarchy :

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices).

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Following table provides the fair value measurement hierarchy of the Company''s assets and liabilities.

Quantitative disclosures of fair value measurement hierarchy for assets and liabilities as at 31 March 2019

Investments measured at fair value are tabulated above. All other financial assets and liabilities at amortised cost are in Level 3 of fair value hierarchy and have been considered at carrying amount .

The fair values of the financial assets and financial liabilities included in the level 3 categories above have been determined in accordance with generally accepted pricing models like networth criteria.

8. Gratuity and other post employment benefit plans

The disclosures of employee benefits as defined in the Ind AS 19 ââEmployee Benefitsâ are given below:

a. Leave encashment is a non-funded defined benefit scheme. The obligation for leave encashment is recognized in the same manner as gratuity.

b. Details of post retirement gratuity plan are as follows:

Notes:

(a) The current service cost recognized as an expense is included in the Note 27 âEmployee benefits expense'' as gratuity. The remeasurement of the net defined benefit liability is included in other comprehensive income.

(b) The estimate of future salary increases considered in the actuarial valuation takes into account the rate of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

9. Disclosures as required by Ind AS 115

The Companies (Indian Accounting Standards) Amendment Rules, 2018 issued by the Ministry of Corporate Affairs (MCA) notified Ind AS 115 âRevenue from Contracts with Customers. The Company has adopted Ind AS 115 w.e.f. 1 April 2018 using the full retrospective approach. Impact on the financial statements upon adoption of Ind AS 115 is not material.

10 . There are no unclaimed dividend for a period of more than seven years. Further, there are no amounts due and outstanding to be credited to Investor''s Education and Protection Fund as on 31 March 2019

11. The Company, has no long-term contracts including derivative contracts having material foreseeable losses as at 31 March 2019.

12. Securities received from Clients as collateral for margin are held by the Company in its own name in fiduciary capacity.

13. As per section 135 of the Companies Act, 2013, amount required to be spent by the company during the year ended March 31, 2019 is Rs. 7.94 lakhs, computed at 2% of its average net profit for the immediately preceding three financial years, on Corporate Social Responsibility (CSR). The Company incurred an amount of 8.50 lakhs during the year ended 31 March, 2019 towards CSR expenditure for purposes other than construction / acquisition of any asset.

* Loan is repayable on demand and carries interest @ 13% (13%) and balance does not include interest

b) There are no investments made other than disclosed in Note 6.

c) There are no corporate guarantee given on behalf of others

d) There are no securities provided during the year.

14. Prior Year Comparatives

Mar 31, 2018

1 Company information

LKP Securities Limited (âthe Companyâ) is domiciled and incorporated in India and its shares are publicly traded on the Bombay Stock Exchange(BSE) in India. The Company registered office is located at 203, Embassy centre, Nariman point, Mumbai 400021, Maharashtra, India. The company is engaged as a stock and securities broker and providing other financial service with nationwide network across assets classes equities, debt, structured products, Portfolio Management services and Third party distribution.

The seperate financial statement (hereinafter referred to as âFinancial Statementsâ) of the Company for the year ended 31 March 2018 were authorised for issue by the Board of Directors at the meeting held on 16 May 2018.

b) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 2 each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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 preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

c) The Company has not issued any bonus shares or bought back equity shares during the five years preceding 31 March 2018. Details of aggregate number of shares issued for consideration other than cash during the five years preceding 31 March 2018 is as under:

Equity Shares allotted as fully paid for consideration other than cash, pursuant to Scheme(s) of Amalgamation / Arrangement

d) Details of Equity Shareholders holding more than 5 % of the aggregate Equity shares

As per the records of the Company, including its register of shareholders / members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

e) Employees Stock Option Scheme (ESOP)

The Company had instituted an Employee Stock Option Plan (âESOP 2017â or âthe Schemeâ) as approved by the Board of Directors and Shareholders of the Company. Under the Scheme, 3,700,000 Stock Options were granted at a price of Rs. 7/- per option to the employees of the Company. The options vested would be exercisable at any time within a period of one year from the date of vesting and the equity shares arising on exercise of options shall not be subject to any lock in. The said Scheme is administered by the Nomination and Remuneration Committee of the Board.

1) Preference shares redemption reserve is created on cancellation of redeemable preference shares under scheme of demerger.

2) Share Based Payment Reserve is related to share options granted by the Company to its employee under its employee share option plan.

3) Retained earnings represent the accumulated earnings net of losses if any made by the Company over the years.

4) Other comprehensive income includes fair value gain on equity instruments measured at fair value through other comprehensive income

(i) Short-term Borrowings from Banks

The facility from Bank of India secured by first pari passu charge on book debts both present and future. The facility carries interest @ 12.40% presently (8.30 MCLR 0.30% BSS 3.80% CRP)

The facility from Yes Bank is secured by first pari passu charge on on all current assets of the company and personal guarantee of Promoter. The facility carries interest @11.95% presently (1 year MCLR 300 bps)

The facility from South Indian Bank is secured against fixed deposit of the company. The loan carries interest rates which ranges from @7.75% to @8.60% (FD rate 1%)

(ii) Short-term Borrowings from Financial Institution

Loan from Financial institution IL&FS is secured by shares in pool account. The loan carries interest @10.25%

2 Tax Expense

(a) The major components of income tax for the year are as under:

i) Income tax realted to items recognised in the statement of profit and loss during the year

# A reconciliation of income tax expense applicable to profit before income tax at statutory rate to the income tax expense at Companyâs effective income tax rate for the year ended 31 March 2018. However for the financial year ended 31 March 2017 the company incurred loss hence effective tax rate is considered "0%" (Zero percent).

ii) Deferred tax related to items recognised in the other comprehensive income (OCI) during the year

*The tax rate used for reconciliation above is the corporate tax rate of 34.608% (31 March 2017 - 30.90% ) payable by parent entity in india on taxable profits under Indian tax law.

(c ) Deferred tax relates to the following:

(d) Unrecognised deferred tax assets on unused tax losses:

The Company has no unused tax losses as at 31 March 2018. However, the company has unrecognised MAT Credit entitlement of Rs. 68.98 lakhs as at 31 March 2018

3 Leases

Operating Leases:

The Company has taken offices under leave and license agreements under cancellable/non-cancellable lease agreements that are renewable on perodic basis at the option of both the lessor and the lessee.

-The intial tenure of the lease is generally ranging from 22 months to 84 months.

4 (i) Contingent Liabilities

(ii) Litigation

(iii) Capital Commitment

Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances) of Rs. 16.06 lakhs (2017 : 16.06 lakhs )(2016 : 568.51 lakhs)

5 Segment Informations

Disclosure under Indian Accounting Standard 108 - âOperating Segmentsâ is not given as, in the opinion of the management, the entire business activity falls under one segment, viz ,primarily enagaged as stock and securities broker and providing the financial services. The Company conducts its business only in one Geographical Segment, viz., India.

6 Information Under Section 186 (4) Of The Companies Act, 2013

a) Loans given

b) Investments made

There are no investments by the Company other than those stated under Note 5 and Note 10 in the Financial Statements.

c) Guarantees given

There are no corporate guarantee given on behalf of others.

d) Securities provided

There are no securities provided during the year.

7 Dividend

Dividend on equity shares is approved by the Board of Directors in their meeting held on 16 May 2018, and is subject to approval of shareholders at the annual general meeting and hence not recognised as a liability (including DDT thereon). Appropriation of dividend is done in the financial statements post approval by the shareholders. Final dividend on equity shares for the year ended on 2018: Rs 0.10 per equity share (2017 : Nil) which aggregates to Rs 88.13 lakhs (2017 : Nil)

8 Related Party Disclosure

Subsidiary Company : LKP Wealth Advisory Private Limited

Key Management Personnel : Mr. Pratik Doshi, Mr.Dinesh Waghela (Resigned w.e.f. 07 July 2016)

Other Related parties with whom transactions have taken place during the year :

LKP Finance Limited, Bhavna Holdings Limited, MKM Share & Stock Brokers Limited, Peak Plastonics Private Limited, Sea Glimpse Investments Private Limited, SolarEx P V Solutions Private Limited, Alpha commodity Private Limited, M/s L.K.Panday

* Closing balance of trade payable and trade receivable includes transaction pertaining to purchase and sale of securities as broker on behalf of related parties in the ordinary course of business.

9 Micro Small & Medium Enterprises Development

The Company has no dues to Micro, Small and Medium enterprise as at 31 March, 2018, on the basis of information provided by the parties and available on record.Further, there is no interest paid/payable to micro and small enterprise during the year.

10 There are no unclaimed dividend for a period of more than seven years. Further, there are no amounts due and outstanding to be credited to investorâs Education and protection fund as on 31 March 2018.

11 The company, has no long-term contracts including derivative contracts having material foreseeable losses as at 31 March 2018.

12 Scheme of Arrangement

The company was a subsidiary of LKP Finance Limited (âerstwhile holding companyâ) till 7 July, 2016. With a view to demerge its SEBI registered intermediaries business, erstwhile holding company filed a scheme of arrangement with the honourable Bombay High Court for demerger and the same was approved on 4 May 2016. As a part of the scheme, 2,62,03,600 equity shares of Rs. 2/- each and 29,00,000/preference shares of Rs. 100/- each held by the erstwhile holding company were cancelled. The company issued 7,31,83,896 fresh equity shares of Rs. 2/- each fully paid up on 8 July, 2016 to the shareholders of LKP Finance Limited by utilising the preference shares redemption reserve account created out of cancellation of preference shares under the scheme of Demerger. The balance unutilised amount of Rs. 19,60,39,408 is carried forward under preference shares Redemption Reserve Account - on cancellation of preference shares.

The company in the Extra Ordinary General meeting held on 5 July, 2016 passed a special resolution to reclassify its authorised capital of Rs. 3500 lakhs consists of 12,50,00,000 equity shares of Rs. 2/- each amount of Rs. 2500 lakhs and 1,00,00,000 shares of Rs. 10/- each (unclassified) amount of Rs. 1000 lakhs.

13 Securities received from Clients as collateral for margin are held by the Company in its own name in a fiduciary capacity.

14 Gratuity and other post employment benefit plans

The disclosures of employee benefits as defined in the Ind AS 19 ââEmployee Benefitsâ are given below:

a. Leave encashment is a non-funded defined benefit scheme. The obligation for leave encashment is recognized in the same manner as gratuity.

b. Details of post retirement gratuity plan are as follows:-

i. Expenses recognised during the year in the statement of profit and loss

Notes:

1 The current service cost recognised as an expense included in the note 23 âEmployee Benefits expenseâ as a gratuity. The remeasurement of the net defined benefit liability is included in other comprehensive income.

2 The estimate of future salary increases considered in the actuarial valuation takes into account the rate of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

15 Financial Instruments

i) Financial risk management objective and policies

The Companyâs principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations. The Companyâs principal financial assets include investments, loans, trade receivables, other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs management oversees the management of these risks.

a) Market risk

1) Interest rate risk

The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs short-term loan from banks. Redeemable preference shares carries fixed coupon rate and hence is not considered for calculation of interest rate sensitivity of the company.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Companyâs profit before tax is affected through the impact of change in interest rate of borrowings, as follows:

2) Foreign Currency risk

The Company does not any foreign currency risk. Hence no sensitivity analysis is required.

3) 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 Companyâs receivables from customers, deposits and loans given, investments and balances at bank.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business enviornment in which the entity operates. Expected Credit Loss is based on actual credit loss experienced and past trends based on the historical data.

b) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The Companyâs principal source of liquidity are cash and cash equivalents and the cash flow i.e. generated from operations. The Company consistently generated strong cash flows from operations which together with the available cash and cash equivalents and current investment provides adequate liquidity in short terms as well in the long term.

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at :

* pertains to deposits received from sub-broker as per contract till the continuation of the service.

ii) Capital Management

For the purpose of Companyâs capital management, capital includes issued capital and other equity reserves. The primary objective of the Companyâs Capital Management is to maximize shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The company monitors capital using gearing ratio, which is Net debt divided by total capital.

16 First time adoption of Ind AS

These financial statements, for the year ended 31 March 2018, are the first, the Company has prepared in accordance with Ind AS. For the period up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP).

Accordingly, the Company has prepared its financial statements to comply with Ind AS for the year ended 31 March 2018, together with comparative data as at and for the year ended 31 March, 2017, as described in the summary of significant accounting policies. In preparing there financial statements, the Companyâs opening balance sheet was prepared as at 1 April 2016, the Companyâs date of transition. There notes explains the principal adjustments made by the Company in restating its Previous GAAP financial statements, including the balance sheet as at 1 April, 2016 and the financial statements as at and for the year ended 31 March 2017.

A. Exemptions:

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

a) Deemed cost option

The Company has opted to continue with the carrying value for all of its Property, plant and equipment as recognised in its previous GAAP financial statements as deemed cost at the transition date.

b) Business Combination

The Company has elected to apply Ind AS 103 Business Combinations prospectively from 1 April, 2016.

c) Investments in equity instruments:

An entity may make an irrevocable election at initial recognition of a financial asset to present subsequent changes in the fair value of an investment in an equity instrument in profit and loss or other comprehensive income. Ind AS 101 allows such designation of previously recognized financial assets, as âFair value through profit and loss or other comprehensive incomeâ.

The Company has accordingly designated certain equity instruments as at 1 April 2016 as fair value through profit and loss or other comprehensive income.

B. Exceptions:

The following are the mandatory exceptions have been applied in accordance with Ind AS 101 in preparing financial statements:

a) Estimates

The estimates at 1 April, 2016 and at 31 March, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences, if any, in accounting policies) apart from the following items where application of Previous GAAP did not require estimation: i. Impairment of financial assets based on expected credit loss model

The estimates used by the Company to present amounts in accordance with Ind AS reflects conditions as at the transition date and as on 31 March 2016.

b) Derecognition of financial assets and financial liabilities

The Company has elected to apply the derecognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occuring on or after the date of transition to Ind AS.

c) Classification and measurement of financial assets

The Company has classified financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

C. Reconciliations between Previous GAAP and Ind AS

The following reconciliations provides the effect of transition to Ind AS from IGAAP in accordance with Ind AS 101 a Balance Sheet and equity Reconciliation b Profit and Loss and Other comprehensive income reconciliation c Adjustment to Statement of Cash Flows d Total equity reconciliation e Total comprehensive income reconciliation

I Investments

Investments are recorded at amortised cost compared to being at cost under Previous GAAP.

As per Ind AS such investments are recorded at fair value through profit and loss (FVTPL) or fair value through other comprehensive income (FVTOCI).

II Deposits

Under Previous GAAP, the Company accounted for deposits received / given at transaction value.

As Per Ind AS, the company has discounted the lease deposit to consider wherever the fair value is different from the the market.

III 9% Redeemable Preference Shares

Under previous GAAP, 9% Redeemable Preference Shares were classified as a part of total equity. These have been reclassified as debt.

IV Remeasurements of defined benefit plans

Under the Previous GAAP, remeasurements i.e. actuarial gains and losses on the net defined benefit liability were recognised in the statement of profit and loss. Under Ind AS-19 Employee Benefits, acturial gains and losses are recognised in other comprehensive income and not reclassified to statement of profit and loss.

V Expected credit loss / Doubtful Debt

As per Ind AS 109, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts. As a result, the Company has recognised, difference between receivables balance (net of ECL loss) and present value of recoverable amount of receivable, into retained earnings as at April 2016.

VI Amortisation of Goodwill

Under the Previous GAAP, the goodwill is amortised at straight lining. Under Ind AS, Goodwill is taken at deemed cost and no amortisation is charged on the goodwill. The intangible asset recoverable amount is greater than the carrying value hence impairment is not required as per Ind AS 36 âImpairment of Assetâ.

VII Tax Adjustments

Tax adjustments include deferred tax impact on account of differences between Previous GAAP and Ind AS.

17 Prior Year Comparatives

Previous yearâs figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classifications / disclosures.

Mar 31, 2017

C. General Notes to the Accounts

1) The company was a subsidiary of LKP Finance Limited (âerstwhile holding companyâ) till 7th July, 2016. With a view to demerge its SEBI registered intermediaries business, erstwhile holding company filed a scheme of arrangement with the Honourable Bombay High Court for demerger and the same was approved on 4th May 2016. As a part of the scheme, 2,62,03,600 equity shares of Rs. 2/- each and 29,00,000 preference shares of Rs. 100/- each held by the erstwhile holding company were cancelled. The company issued 7,31,83,896 fresh equity shares of Rs. 2/each fully paid up on 8th July, 2016 to the shareholders of LKP Finance Limited by utilising the Preference Shares Redemption Reserve Account created out of cancellation of preference shares under the Scheme of Demerger. The balance unutilised amount of Rs. 19,60,39,408 is carried forward under Preference Shares Redemption Reserve Account - on cancellation of preference shares

The company in the EGM held on 5th July, 2016 passed a special resolution to reclassify its authorised capital of Rs. 35 Crores as under :

As on 31st March, 2017, the equity paid up share capital of the company, after issuance of fresh equity shares (fully paid up) stood at Rs. 14,64,42,592 (As at 31st March, 2016 : 5,24,82,000).

2) Contingent Liabilities

a) Total Bank Guarantee issued on behalf of company as at 31st March 2017 is Rs.35,10,00,000/- (Previous Year Rs.28,85,00,000/-) partially secured against pledge of FDR.

b) There are two cases filed against the company totalling Rs.31,17,200/- which company has disputed.

The company on disposal of the cases, by the courts expects no impact on the statement of profit & loss.

c) The Company has filed 26 cases for recovery of dues amounting to Rs.78,89,029/-, the recovery suits are pending in various courts. The company expects favarouble decisions and no provisioning is considered necessary at this stage.

d) Claims not acknowledged as debts in respect of disputed income tax demands - Rs. 13,74,474.

3) Gratuity

The Company''s gratuity liability as at 31st March 2017 was determined actuarially at Rs.1,34,27,239/- During the year the Company has made an provision of Rs.40,33,237/-towards Gratuity Liability to employees. In addition to this provision, the company has paid / settled gratuity liability totalling Rs.33,95,873/- and the same has been debited to the statement of profit and loss for the year.

* includes Rs.272400/- for one Whole time Director for part of the year

4) The amounts shown against Long term receivable Long term loans and advances is considered as good and recoverable by the management.

5) Bad debts is net of provision for doubtful debts written back and made in earlier years.

6) As per the Accounting Standard 18, disclosures regarding related parties are given below:

i) List of Related Parties along with the nature of related party relationships.

Name of the Related Party Relationship

LKP Wealth Advisory Private Limited Subsidiary Company

LKP Finance Limited Director Interested

Bhavna Holdings Limited Director Interested

MKM Share & Stock Brokers Ltd. Director Interested

Peak Plastonics Private Limited Director Interested

Sea Glimpse Investments Pvt Ltd Director Interested

SolarEx P V Solutions Pvt. Ltd. Director Interested

Alpha Commodity Pvt. Ltd. Director Interested

M/s L.K.Panday__Director Interested

Mr. M.V. Doshi Father of Pratik Doshi

Mr. Pratik Doshi Key Management

Personnel

7) (a) The Company has taken offices under leave and license

agreements. These are generally cancellable in nature and range between 11 months to 108 months.

(b) Rent payments are recognised in the Statement of Profit and Loss under the head '' Rent, Rates and Taxes'' in Schedule B20

(c) The future minimum licence payments under leave & licence agreements - not later than one year is Rs.1,08,02,459/- (Previous Year Rs.89,17,520/-) and later than one year but not later than five years is Rs.2,21,83,314 (Previous Year Rs.2,24,56,301)

8) Securities received from Clients as collateral for margin are held by the Company in its own name in a fiduciary capacity.

9) Tax Deducted at Source on Income upto 31st March 2017 : Rs.98,99,775/- (Previous Year Rs.1,12,19,812/-)

10) As per the information available with the Company as at 31st March 2017, the data in respect of Micro Small & Medium Enterprises that are covered under the Micro Small & Medium Enterprises Development Act, 2006 are not available. Hence, details regarding principal amount and interest paid/due thereon is not given.

11) There are no dues to Small Scale Industries and Investor Education and Protection Fund as at 31st March 2017 (Previous Year: Nil)

12) The company, has no long-term contracts including derivative contracts having material foreseeable losses as at 31st March, 2017.

13) Previous year figures are regrouped/rearranged wherever necessary.

14) At the closure of 08th November, 2016 The Company was having cash balance of Rs.2,500/- which include specified bank notes. (Circular No.G.S.R.as per 308 ( E ) dated 30th March, 2017.)

Mar 31, 2010

1) CONTINGENT LIABILITIES :

a) Total Bank Guarantee issued on behalf of company as at 31st March 2010 is Rs. 2135 lacs (Previous year - Rs 1735 lacs)

b) Claims Not Acknowledged as Debts Rs. 28.46 Lakh (Previous Year - Rs. 17 lakhs)

2) SHARE CAPITAL:

Paid Up Capital

During the year the Company has issued 8,50,000 Preference Shares of Rs. 100/ each to the Holding Company M/s LKP Finance Limited

3) gratuity

During the year the company has adopted Accounting Standard 15 (AS-15 Revised). The Company has contributed its gratuity liability to Life Insurance Corporation of India - Group Gratuity Scheme based on annual contribution as worked out by Life Insurance Corporation of India.

4) Provision for Taxation :

Provision for Minimum Alternate Tax has been made in view of set off of Current years income against Brought Forward Losses as per Income Tax Act, 1961.

The said provision for MAT is also recognised as an asset and is refected under Loans and Advances. Assesments have been completed upto A.Y. 2007-2008. Appeal has been fled with Tribunal for A.Y. 2004-05 & A.Y. 2006 - 2007, which is pending the demand for the same is Rs. 28.45 Lakh. However no provision for the said is made in view of the appeal fled.

5) As per the Accounting Standards 18, issued by the Institute of Chartered Accountants of India,disclosures of transaction with the related parties as defined in the Accouting Standards are given below:

i) List of Related Parties alongwith the nature of related party relationships.

Name of the Related Party Relationship

LKP Finance Limited Holding Company

Sea Glimpse Investments Pvt Associate Company Ltd

Bhavna Holdings Limited Associate Company

M/s L.K.Panday Associate Company

Mr M.V. Doshi Key Management Personnel

Mr Hitesh P Doshi Key Management Personnel

Mr Dinesh Waghela Key Management Personnel

Mr Pratik Doshi Relative

6) As per the information available with the Company as at 31st March 2010, the data in respect of Micro Small & Medium Enterprises that are covered under the Micro Small & Medium Enterprises Development Act, 2006 are not available. Hence, details regarding principal amount and interest paid/due thereon is not given.

7) There are no dues to Small Scale Industries and Investor Education and Protection Fund as at 31st March 2010 (Previous Year: Nil)

8) Previous years figures have been regrouped wherever necessary.

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