Terms / rights attached to Equity Shares:

1 The Company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The 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, the equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their share holding.

2 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 proportion to the number of equity shares held by the shareholders.

3 Disclosure statement of Shares issued under ESOP Scheme

During the year ended March 31, 2024, the Company has issued 177,500 (March 31, 2023- Nil) Equity shares under ESOP scheme @ Rs. 10 per share.

4 Disclosure statement of Bonus issue of shares

During the year ended March 31, 2024, the Company has issued 9,96,89,500 (March 31, 2023- 4,97,56,000) equity shares @ Rs. 10 per share.

*Outstanding Loan amount Rs. 2,145.53 lakhs ( March 31, 2023 - Rs. 2,511.30 lakhs) has been taken from Axis Bank Limited .The said loan carries interest at Repo plus 3% which is 9.50% Currently. The Loan is repayable in 83 Eqauted monthly installments of Rs. 31.55 lakhs each. The security details are as given below-

1. Residential Properties of Promotors

2. Freehold land and building at Mumbai in the name of Choice International Limited

* Outstanding Loan Rs.1,437.32 lakhs ( March 31, 2023: Rs. 1,470.47 lakhs) has been taken from Standard Chartered Bank. The said loan carries interest at Repo plus 2.60% which is currently 8.85%. The Loan is repayable in 180 equated monthly installments of Rs. 14.77 lakhs. The loan is secured against Commercial Property in the name of Choice Consultancy Services Private Limited.

* The above represents corporate guarantee utilised for Choice Equity Broking Private Limited is Rs..13,003.43 lakhs (March 31, 2023: Rs.7,892.25 lakhs), for Choice Consultancy Services Private Limited is Rs.7,16.53 lakhs (March 31, 2023: Rs1,889.30 lakhs) and for Choice Finserv Private Limited is Rs.24,682.70 lakhs (March 31, 2023:.6,063.63 lakhs) However the overall sanction amount is Rs.53,990.00 lakhs (March 31, 2023 : Rs. 20,948.00 lakhs). The above bank guarantees have been issued to banks & fianancial institutions on behalf of subsidiaries for their general business purpose.

B Capital Commitments-

During the year March 31, 2024, the Company had entered into a MOU for purchases of lease hold property worth Rs. 2,900.00 lakhs. The Company has already paid Rs. 25.00 lakhs as capital advances in respect of this transaction.

Unrecognised Deferred Tax Assets

Deferred tax assets have not been recognised in respect of the following items, because it is not probable that future taxable profit will be available against which the Company can use the benefits therefrom. This is long term capital loss which can only be set-off against future long term capital gain, which cannot be predicted.

2. Defined benefit plans

Gratuity (post-employment benefits)

The Company provides for gratuity to employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised/approved funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

Maturity profile of gratuity liability and Employer contribution

Expected contributions to post-employment benefit plans for the year ending 31 March 2024 are Rs. Nil/- (as at March 31, 2023: Rs. Nil).

The weighted average duration (based on discounted cash flows) of the defined benefit obligation is 8 years (8 years 2022-23). The expected maturity analysis of undiscounted gratuity is as follows:

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

3. Employee Stock Option Plan

The Company has Choice Employee Stock Option Plan 2022, under which options have been granted to eligible employees to be vested from time to time.

The Company has established share option plans that entitle the employees of the Company and its subsidiary companies to purchase the shares of the Company. Under these plans, holders of the vested options are entitled to purchase shares at the exercise price of the shares determined at the respective date of grant of options.

The key terms and conditions related to the vesting of grants under these plans are continued employment with the company from the date of grant of option till the date of vesting; all options are to be settled by the delivery of shares.

Measurement of fair values

The fair value of the employee share options has been measured using Black-Scholes Option pricing model.

Note: The fair value of the above financial liabilities are approximately equivalent to carrying values as recognised above.

Note 39:- Financial Assets at Fair Value Through Profit or Loss

Note: There are no such financial assets.

Note 40 : Financial Risk Management Objectives and Policies

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

The Company is exposed to market risk, credit risk and liquidity risk. The below note explains the sources of risk which the entity is exposed to and how the entity manages the risk:

Market Risk

The Company manages market risk through a corporate treasury department, which evaluates and exercises independent control over the entire process of market risk management. The corporate treasury department recommends risk management objectives and policies, which are approved by senior management and Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company's policy is to keep balance between its borrowings at fixed rates of interest. The difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including Fixed deposits with banks and financial institutions and other financial instruments.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company's finance department in accordance with the Company's policy. Investments of surplus funds are made generally in the fixed deposits and for funding to subsidiary company. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.

The Company's maximum exposure to credit risk for the components of the balance sheet at March 31, 2024 and March 31, 2023 is the carrying amounts as stated in balance sheet except for balances of subsidiary company.

Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.

Note 41 : Capital Management ^{in Lakhs)}

For the purpose of the Company's capital management, capital includes issued equity share capital, securities premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to maximise the value of the share and to reduce the cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company can adjust the dividend payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

Note 42 : Segment Information:

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance. The Group's chief operating decision maker is the Chief Executive Officer and Managing Director. Pursuant to surrendering its license. the main Business of the Company is investing and financing to the Subsidiaries and providing support services to the Group Companies. Further all activities are carried out within India. Accordingly, Segment Reporting in accordance with Ind Accounting Standard - 108 “Operating Segment” issued by the Institute of Chartered Accountants of India and adopted by Companies (Accounting Standard) Rules, 2015 is not applicable to the Company.

Note 51 : Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

Note 52 : Relationship with Struck off Companies:

The Company has not entered in any transactions with companies struck off under section 248 of the Companies Act ,2013. or section 560 of Companies Act 1956.

Note 53 : Expenditure on Corporate Social Responsibility:

As per Section 135 of the Companies Act, 2013, the company is not mandatorily required to spend on corporate social responsibility (CSR) activities.

Note 54 : Registration of charges or satisfaction with Registrar of Companies (ROC)

The Company has completed the process of creation and statisfaction the charges with Registrar of Companies (ROC) in due course of time.

Note 55 : Title deeds of immovable properties not held in name of the Company

There are no instances where the title deeds of immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are not held in the name of the Company.

Note 56 : Compliance with approved scheme(s) of Arrangements

The Company has not entered in any transaction which is required to be complied with approved scheme(s) of arrangement.

Note 57 : The Social Security Code 2020

The Code on Social Security 2020 (‘the Code') relating to employee benefits, during the employment and postemployment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued. The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

Note 58 : Subsequent Event

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