J Provisions and contingent liabilities:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Standalone Statement of Profit and Loss net of any reimbursement. The unwinding of the discount is recognised as finance cost. Expected future operating losses are not provided for.

Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are not recognised but are disclosed in the notes where an inflow of economic benefits is probable.

K Leases: Right-of-use assets and Lease liabilities

i) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i) Right-of-use assets

The Company recognises right-of-use assets (“RoU Assets”) at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

If ownership of the leased asset transfers to the company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting policies in section 3 (C) Impairment of non-financial assets.

ii) Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

The Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are

P Cash flow statement

Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular operating, investing and financing activities of the Company are segregated based upon the available information.

Q Contract balances

Trade Receivables : A receivable represents the Company’s right to an amount of consideration that is unconditional i.e. only the passage of time is required before payment of consideration due.

Contract Liability : A contract liability is the obligation to transfer goods and services to the customer for which the Company has received the consideration (or an amount of consideration is due) from the customer. Contract liabilities are recognized as revenue when the Company performs obligations under the contract. The same is disclosed as “Advance from customers” under Other non-financial liabilities.

R Business Combination: Methods of Accounting for Common Control Business Combinations

A Common control business combination, involving entities or business in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination and where control is not transitory, is accounted for in accordance with Appendix C to Ind AS 103 “Business Combination” The company accounts for Business combinations involving entities or businesses under common control are accounted for using the pooling of interest method as follows:

• The assets and liabilities of the combining entities are reflected at their carrying amounts

• No adjustments are made to reflect fair values, or recognize new assets or liabilities. Adjustments are made only to harmonize material accounting policies.

• The financial information in the financial statements in respect of prior period are restated as if the business combination had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of the combination.

• The identity of the reserves are preserved and appear in the financial statements of the transferee in same form in which they appeared in the financial statements of the transferor.

34 Financial Risk Management, Objective and Policies

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, credit risk and market risk. Risk management policies have been established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review and reflect the changes in the policy accordingly.

The Company’s Management reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

(a) Credit Risk:

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit Risk arises principally from the Company’s cash and bank balances, trade receivables, investments, securities held for trade, loans, and security deposits.

The carrying amounts of financial assets represent the maximum credit risk exposure. Credit risk assessment on various components is described below:

(i) Trade receivables

The Company’s trade receivables primarily include receivables from asset management companies (AMCs) for services provided and receivable from stock exchanges (for trade executed on behalf of customers) as well as clients. The Company has not made any provision on ECL on account of receivables from AMCs, Stock exchanges. These carries limited credit risk based on the financial position of parties and Company’s historical experience of dealing with these parties.

The management has established accounts receivable policy under which customer accounts are regularly monitored. The Company has a dedicated risk management team, which monitors the positions, exposures, and margins on a continuous basis.

(ii) Cash and cash equivalents, bank deposits, investments and Securities held for trade

The Company maintains its cash and cash equivalents, bank deposits, investment, and securities held for trade with reputed banks, financial institutions, and corporates. The credit risk on these instruments is limited because the counterparties are banks and high credit rated financial institutions and corporates assigned by credit rating agencies.

(iii) Security Deposits and Loans

This consists of loans given to Employees and Security Deposits given to lessors as well as to utility providers like Electricity companies. These carries limited credit risk based on the financial position of parties and Company’s historical experience of dealing with these parties.

(iv) Expected Credit Loss (ECL):

The Company follows simplified ECL method in case of Trade Receivables and the Company recognises lifetime expected losses for all trade receivables that do not constitute a financing transaction. The Company assesses the provision for ECL on each reporting dates.

For the purpose of computation of ECL, the term default implies an event where amount due towards margin requirement and/or mark to market losses for which the client was unable to provide funds / collaterals, within 90 days of its due, to bridge the shortfall, the same is termed as margin call triggered.

The Company assesses allowance for expected credit losses for Loans and other financial assets. The ECL allowance is based upon 12 months expected credit losses. These carries very minimal credit risk based on the financial position of parties and Company’s historical experience of dealing with these parties. Credit Risk on Other Financial assets is considered insignificant considering the nature of such assets and absence of counterparty risk.

(b) Market Risk:

Market risk is the risk of changes in market prices due to foreign exchange rates, interest rates which will affect the Company’s income or the value of its financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Market risk exposures are measured using sensitivity analysis. There has been no change in the measurement and management of the Company’s exposure to market risks.

(i) Foreign currency risk

The functional currency of the Company is INR. The Company does not have material foreign currency exposure. Hence, currency risk is very limited.

(ii) Price Risk :

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investments, its issuer and market. The Company’s exposure to price risk arises from diversified investments in mutual funds and Bonds, and Securities held for trade, and classified in the balance sheet at fair value through profit or loss.

(iii) 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. Interest rate risk primarily arises from investments in debt oriented mutual funds and debt securities. The Company’s investments in debt oriented mutual funds and debt securities are primarily short-term, which do not expose it to significant interest rate risk. Additionally, since there are no external borrowings, the Company is not exposed to interest rate risk in with respect to borrowings.

(c) Liquidity risk:

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities that are settled by delivering cash or other financial assets. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities. In doing this, management considers both normal and stressed conditions. The Company also monitors the level of expected cash inflows on trade and other receivables together with expected cash outflows on trade and other payables.

The Company has established an appropriate liquidity risk management framework for the management of the Company’s shortterm, medium-term, and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves and by continuously monitoring cash flows, and by matching the maturity profiles of financial assets and liabilities.

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are promoting education, art and culture, healthcare, destitute care, women entrepreneurship & employability and rehabilitation, environment sustainability, disaster relief and Public health. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

As per notification issued by Ministry of Corporate Affairs dated January 22, 2021, where a company spends an amount in excess of requirement provided under sub-section (5) of section 135, such excess amount may be set off against the requirement to spend under sub-section (5) of section 135 up to immediate succeeding three financial years.

(i) Gross amount required to be spent during the year ' 156.78 lakhs (previous year ' 107.37 lakhs)

(ii) Excess amount to be set off against succeeding three financial years ' 3.37 lakhs (previous year ' 2.51 lakhs)

41 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the rules thereunder are yet to be framed. Accordingly, the actual impact of this change will be assessed and accounted for when the notification becomes effective.

42 Standards issued but not effective

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the company.

43 Events Occuring After Balance Sheet Date

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approved Standalone Financial Statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the Standalone Financial Statements as of August 08, 2024 there is no significant events occured, except disclosed.

The Board of Directors have recommended a final dividend of ' 2/- (face value of '5/- each) (40%) per equity share for the year ended March 31, 2024 on 4,14,06,680 equity shares, amounting '828.13/- lakhs subject to the approval of the shareholders at the ensuing Annual General Meeting and is not recognised as a liability.

43(A) Amalgamation of Prudent Broking Services Private Limited with the Company w.e.f April 01, 2023.

On July 25, 2023, the Board of Directors of Prudent Corporate Advisory Services Limited (“PCASL” or “the Company”) approved a Scheme of Amalgamation between Prudent Broking Services Private Limited (“PBSPL”), a wholly owned subsidiary, and PCASL and their respective shareholders and creditors, effective from the appointed date of April 01, 2023 (the “Amalgamation Scheme”). PBSPL is a Clearing member of National Stock Exchange of India (NSE), Bombay Stock Exchange Limited (BSE), Multi Commodity of India Limited (MCX), and Member of Metropolitan Stock Exchange of India Limited, (MSEI), National Commodities and Derivatives Exchange Limited (NCDEX) and a depository participant with Central Depository Services (India) Limited (CDSL). PBSPL is engaged in the business of stock, currency and commodity broking, providing margin trading facility, depository services and earns brokerage, fees, commission, research analysis, interest income and other investment related services to its clients.

The Company has received approval for the Scheme from the Office of the Regional Director (“RD”), North Western Region, Ministry of Corporate Affairs (“MCA”), Ahmedabad (Gujarat) vide confirmation order dated August 02, 2024. The Scheme has accordingly been given effect in these financial statements of the Company. The transaction being a common control transaction, as per the requirement of Appendix C of Ind AS 103 on Business Combination, the financial information in the financial statements in respect of prior periods has been restated as if the amalgamation has occurred from the beginning of the preceding period in the financial statements of PCASL. Accordingly, the equity of PCASL as at April 01, 2022, being the beginning date of the preceding period has been restated as under to reflect the impact of the merger of PBSPL.

Note-1.1 The Assessment Unit of Income Tax has issued an order under Section 147 of the Income Tax Act, 1961, confirming the income tax demand of ' 20.69 lakhs for the Assessment Year 2016-17 and ' 9.10 lakhs for Assessment Year 2018-19. In both the Assessment Year, tax demanded was based on the denial of exemption for a portion of dividend income. The company has paid ' 4.14 lakhs under protest for AY 2016-17. Further, the company has filed an appeal against these assessment orders during the current year, and both matters are currently pending with the National Faceless Appeal Centre (NFAC). Based on prior experience management is reasonably confident that during the current year, no material impact on the financial position or performance of the company is envisaged.”

Note-1.2 The PBSPL, has received an assessment order under Section 147 read with Section 144B of the Income Tax Act, 1961, passed by the Assessment Unit of the Income Tax Department on September 29, 2021. The order demands an additional tax liability of 7538.47 lakhs for the Assessment Year 2013-14. This demand arises from an addition made under Section 68 read with Section 115BBE of the Income Tax Act.PBSPL has contested the order by filing an appeal before the Commissioner of Income Tax (Appeals) on October 13, 2021. In connection with the appeal, PBSPL has deposited 750.00 lakhs under protest. The matter is currently pending before the National Faceless Appeal Centre (NFAC).

Note-1.3 The PBSPL has also received notices under Section 148 for the reopening of assessments under Section 147 read with Section 144B of the Income Tax Act, 1961 for the Assessment Years 2014-15, 2015-16, 2016-17, and 2017-18. These notices were issued on grounds similar to those in the Assessment Year 2013-14. PBSPL responded by filing writ petitions with the Gujarat High Court, which resulted in a stay on the proceedings. Subsequently, based on a Supreme Courtjudgment, the Income TaxDepartment was permittedto reissue notices under Section 148A(b). PBSPL received these notices for all the aforementioned years in June 2022 and filed its replies on June 27, 2022. Favorable orders have since been received by PBSPL, stating that these matters are not fit cases for the issuance of notices under Section 148 of the Income Tax Act. Consequently, the assessments for all these years have been dropped.

Note-2.1 The Company has received various assessment order from Assistant Commissioner/Deputy Commissioner of Central/State Tax in the state of Gujarat, Maharashtra, Telangana, and West Bengal for raising total demand of GST of ' 91.55 lakhs (including interest and penalty specified in orders) on various matters like Input Tax Credit (ITC) disallowance due to mismatch with GSTR-2A, non-short reversal of ITC on exempt supplies, ineligible/blocked ITC availed. The Company has paid ' 4.65 lakhs under protest during the current year.The Company has filed an appeal with Appellate Authority and the same is yet to be concluded as on the reporting date. 21

Note-2.2 The Company has received show cause notice in the state of Gujarat (FY 2019-20) for raising total demand of GST ' 17.06 lakhs (excludinginterest and penalty) onvarious matters like Input Tax Credit(ITC) disallowance due to mismatch with GSTR-2A, non-shortreversal ofITC on exempt supplies, ineligible/blocked ITC availed, short payment of tax but didn’t receive further demand order and the same is yet to be concluded as on the reporting date. Accordingly, the Company has disclosed such demand amount under as contingent liabilities. Most of the issues of litigation pertaining to the GST Act are based on the interpretation of the respective laws and rules thereunder. Management has been opined by its legal counsel that many of the issues raised by tax authorities will not be sustainable in the law as they are covered by judgements of respective judicial authorities, which supports its contention. During the current year, no material impact on the financial position or performance of the company is envisaged.

(b) Prudent Broking Services Private Limited (PBSPL) (“Trading member”) had entered into an agreement with IL&FS Securities Services Ltd (“ISSL” or “Clearing Member”) for appointing ISSL as Company’s Clearing Member for Derivative Segment. As a part of the agreement, the Trading Member had to place margins with Clearing Member for trading member’s client open positions. As at year end March 2019, this margin amount placed by PBSPL with ISSL amounted to ' 213.91 Lakhs. In July 2019, the National Stock Exchange(“NSE”) disabled the terminals of ISSL citing shortfalls in payments by ISSL which resulted in the trading members not being able to place trades for its clients. Considering the IL&FS crisis, PBSPL obtained NOC from ISSL and appointed Axis Bank Limited as its Clearing Member. Since the margin amount had not been released by ISSL, PBSPL and other trading members along with the Association of National Exchanges Members of India (ANMI) filed an Interlocutory Application in the Supreme Court of India on September 26, 2019 requesting the release of the funds by ISSL. The Supreme Court dismissed this interlocutory application in December 2020 and asked the parties to file case with lower authorities. Thereafter, PBSPL filed a complaint with NSE’s Grievence Redressal Committee (GRC) on December 28, 2020. GRC has accepted PBSPL’s claim of ' 204.67 Lakhs in the committee meeting held on July 15, 2021 . Further, ANMI has filed an interlocutory application under Rule 31 of National Company Law Appellate Tribunal Rules, 2016 on behalf of Trading Members, which was admitted on December 01, 2021 and the matter is still pending. Considering the facts of the case, the management of PBSPL has already provided Rs 213.91 Lakhs as impairment allowance in F.Y. 2020-21, The PBSPL has received the GRC order and directed ISSL to pay ' 204.67 Lakhs. The PBSPL has received ' 203.67 Lakhs against Derivative Segment on September 21, 2022 subsequently PBSPL has reversed the impairment provision amounting to '203.67 Lakhs. Balance ' 1 Lakhs against Debt Segment is still pending. (Refer Note 10 and 27(A)).

(c) Capital commitments and other commitments

Based on the information available with the company, there is no capital commitments and other commitments as on March 31, 2024.

45 On October 20, 2022 the Company acquired Mutual Fund Assets under Management (“AUM”) of iFAST Financial India Private Limited (iFAST). The Company has paid ' 226.23/- lakhs (excluding taxes) as consideration for the same. The said AUM has been transferred from iFAST ARN to the Company’s ARN in the same month . Based on the analysis performed by the management of the Company, the said transaction has been accounted for as an asset acquisition w.e.f. October 1, 2022. Based on the analysis performed by the management of the Company, it has concluded that the acquisition does not qualify as a “Business” as per the definition provided in Ind AS 103 “Business Combination” Consequently, the said acquisition is accounted for as an asset acquisition. As required under Ind-AS 38, the Company has considered various factors such as its ability to retain the customers and generate revenue over a sustainable period, technical and technological changes expected, the industry growth prospects and the leverage of its existing physical and digital infrastructure to serve these customers and concluded that the cost of acquiring the customer folios should be amortized over a 10 year period on a straight line basis.

46 Other statutory information

(a) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

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

(c) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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.

(d) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(e) 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).

(f) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(g) The Company does not have any transactions with companies which are struck off.

(h) The Company has not taken any loan from bank or financial institutions. Consequently filling of quarterly returns or statements of current assets with bank or financial institutions is not applicable to Company.

47 Additional regulatory information required under (WB)(xiv) of Division III of Schedule III amendment, disclosure of ratios, is not applicable to the Company as it is in Distribution of Mutual Fund, Stock broking and other Financial and Non Financial Product Distribution business and not an NBFC registered under Section 45-IA of Reserve Bank of India Act, 1934.

48 Disclosure for maintenance of books with audit trail

The Ministry of Corporate Affairs(MCA) has issued a notification dated 24th March 2021 (Companies(Accounts) Amendments Rules,2021) which is effective from April 01,2023, states that every Company which uses accounting software for maintaining its books of account shall use only such accounting software which has a feature of recording audit trail of each and every transaction, and further creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

In respect of primary accounting software used from April 01, 2023 to June 30, 2023, there was no feature of recording the audit trail (edit log). Thereafter, the Company has upgraded to advanced version of the accounting software having feature of recording audit trail for all transactions, and creating an edit log of each change made along with the date when such changes were made and also audit trail cannot be disabled.

In respect of software related to Mutual Fund Business which is internally developed software by the Company, the audit trail feature related to who has made the changes in the rate master was not enabled throughout the year at user name level but it is enabled at computer system level. W.e.f April 01, 2024, the same has been updated and now recording of audit trail feature at user name level is enabled. Further no audit trail was enabled for all relevant transactions at the database level to log any direct data changes.

Further, no instance of audit trail feature being tampered with was noted in respect of accounting software for which the audit trail feature was enabled and operating.

49 The standalone financial statements were authorized for issue in accordance with a resolution of the Board of Directors on August 08, 2024.

For Deloitte Haskins & Sells For and on behalf of the Board of Directors of

Chartered Accountants Prudent Corporate Advisory Services Limited

Hardik Sutaria Sanjay Shah Shirish Patel Chirag Shah

Partner Chairman and Managing Director Whole Time Director and CEO Whole Time Director

DIN : 00239810 DIN : 00239732 DIN : 01480310

Chirag Kothari Kunal Chauhan

Chief Financial Officer Company Secretary

Place : Ahmedabad Place : Ahmedabad

Date: August 08, 2024 Date: August 08, 2024