(a) Carrying value of trade receivables may be affected by the changes in credit risk of the counterparties as explained in Note 34.

(b) No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person. Trade Receivable due from Entities in which Director or Key Management personnel are Shareholder is '6.10 lakhs ( Previous year Rs Nil) (Refer Note-36)

(c) The Company has duly provided its services and fulfilled the performance obligations for the month of March 2025 in March 2025 and for March 2024 in March 2024 itself, but as a part of its routine procedure, the Company has raised the invoices subsequent to the month. Since, the company has an unconditional right to consideration and only the act of billing has been deferred, the same has been classified as Trade Receivable. This has been duly reflected as unbilled in the trade receivable ageing.

##The Board of Directors have recommended a final dividend of '2.5/- (face value of '5/- each) (50%) per equity share for the year ended March 31, 2025 on 4,14,06,680 equity shares, amounting '1035.17/- lakhs subject to the approval of the shareholders at the ensuing Annual General Meeting and are not recognised as a liability.

The description of the nature and purpose of each reserve within Other equity is as follows:

(i) Securities Premium

Securities premium is received by the Company on issue of shares at premium. This balance will be utilised in accordance with the provisions of Section 52 of the Act towards issuance of fully paid bonus shares, write-off of preliminary expenses, commission/ discount expenses on issue of shares/debentures, premium payable on redemption of redeemable preference shares/debentures and buy back of its own shares/securities under Section 68 of the Act.

(ii) General Reserves

General reserve is a free reserve, retained from the Company’s profits and can be utilized upon fulfilling certain conditions in accordance with statute of the relevant Act.

(iii) Retained Earnings

Retained earnings comprise balances of accumulated (undistributed) profit and loss at each year end and balances of remeasurement of net defined benefit plans, less any transfers to general reserve that can be distributed by the Company as dividend to its shareholders in compliance with the requirements of the Act.

33 Financial Instruments

(i) Capital Management

The Company’s objective for capital management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor and customer confidence, to ensure future development of its business and remain going concern. The Company is focused on keeping strong capital base to ensure independence and sustained growth in business. The Company determines the capital management requirement based on annual operating plans and long term and other strategic investment plans. The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented in the balance sheet. The funding requirements are predominately met through equity and out of cashflow generated from operations.

The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend paid to shareholders, return capital to shareholders, issue new shares or sell non-core assets to reduce the debt.

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.

(b) Defined Benefits Plans

The Company provides for retirement benefits in the form of Gratuity. The Company’s gratuity scheme (funded) provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service subject to a ceiling of '20 Lakhs. Vesting occurs upon completion of 5 years of service.The Company contributes gratuity liabilities to the Prudent Corporate Advisory Services Ltd Employee’s Group Gratuity Fund ( the Trust ). Trustees administer contributions made to the Trusts and contributions are invested in Insurer Managed Funds.

The present value of the defined benefits plan was measured using the projected unit credit method.

Estimates of future salary increase takes into account: inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The plan exposes the Company to significant actuarial risks such as interest rate risk and inflation risk:

Inflation risk - A significant proportion of the defined benefit liability is linked to inflation. An increase in the inflation rate will increase the Company’s liability.

Interest rate risk - The present value of the defined benefit liability is calculated using a discount rate prevailing market yields of Indian government securities. A decrease in discount rate will increase the Company’s defined benefit liability.

(d) Asset - Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year -on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year.The Insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year ( subject to sufficiency of funds under the policy ).The policy thus mitigates the liquidity risk.

However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liablities . Thus, the company is exposed to movement in interest rate ( in particular , the significant fall in interest rates , which should result in a increase in liablity without corresponding increase in the asset)

Sensitivities have been calculated to show the movement in Defined Benefit Obligation in isolation and assuming there are no other changes in market conditions at the accounting date. In presenting the above sensitivity analysis, the present value of the defined benefit obligations has been calculated using the Projected Unit Credit Method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet. This analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in the assumptions would occur in isolation of one another as some of the assumptions may be correlated.

(c) Compensated absence:

The employees are entitled for leave for each year of service and part thereof, subject to the limits specified, the unavailed portion of such leaves can be accumulated or encashed during/at the end of the service period up to a maximum of 100 days. Expenses recognised in the Statement of Profit and Loss amounts to '101.90 lakhs for the year ended March 31, 2025 (March 31, 2024: '49.78 lakhs)

The current and non-current classification of obligations under defined benefit plans and other long-term benefits is done bases on the actuarial valuation reports.

38 Operating Segment

The Company determines Operating Segments as components of an entity for which discrete financial information is available that is evaluated regularly by chief operating decision maker (CODM), in deciding how to allocate resources and assessing performance.

The Company’s activities revolve around distribution of Financial Products i.e. Mutual Funds, Bonds, Fixed Deposits, Insurance, Structured Products etc. Various financial products are aggregated into one reportable segment being agency nature of business under “Fees and Commission” in accordance with aggregation criteria. Aggregation is done due to the similarities of the products and services provided to the customers and similarities in method used to provide services and regulatory environment. Considering the nature of Company’s business, as well as based on reviews by CODM to make decisions about resource allocation and performance measurement, there is only one reportable segment in accordance with the requirements of Ind AS - 108 -‘‘Operating Segments’’, prescribed under Companies (Indian Accounting Standards) Rules, 2015.

Nature of CSR activities:

1. Educational infrastructure & systems strengthening

2. Nurture women entrepreneurship & employability

3. General community infrastructure support & welfare initiatives

4. Nurturing aquatic & terrestrial ecosystems for better environment & reduced emissions

5. Public health infrastructure, capacity building & support programs

6. Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare.

7. Training to promote rural sports, nationally recognised sports, paralympic sports and olympic sports

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 '225.24 lakhs (previous year '156.78 lakhs)

(ii) Excess amount to be set off against succeeding three financial years '3.73 lakhs (previous year '3.37 lakhs)

41 Recent accounting pronouncements

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, 2025, MCA has notified Ind AS 117 - Insurance Contracts and amendments to Ind As 116 - Leases , relating to sale and lease back transactions, applicable from April 1, 2024. The Company has assessed that there is no significant impact on its financial statements. On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign Exchange Rates. These amendments aim to provide clearer guidance on assessing currency exchangeability and estimating exchange rates when currencies are not readily exchangeable. The amendments are effective for annual periods beginning on or after April 1, 2025. The Company is currently assessing the probable impact of these amendments on its financial statements.

42 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 May 12, 2025 there is no significant events occured, except disclosed.

The Board of Directors have recommended a final dividend of '2.5/- (face value of '5/- each) (50%) per equity share for the year ended March 31, 2025 on 4,14,06,680 equity shares, amounting '1035.17/- lakhs subject to the approval of the shareholders at the ensuing Annual General Meeting and is not recognised as a liability.

42(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 the Company approved the scheme of amalgamation of Prudent Broking Services Private Limited (“PBSPL”), a wholly owned subsidiary, with Prudent Corporate Advisory Services Limited (“PCASL”), effective from the appointed date of April 01, 2023 (the “Amalgamation Scheme”).

The Company 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. This order approved the Scheme of Amalgamation between Prudent Broking Services Private Limited (Transferor Company) with Prudent Corporate Advisory Services Limited (Transferee Company) and their respective shareholders and creditors in terms of Section 233 of the Companies Act, 2013 read with Rule 25 of The Companies (Compromise, Arrangement and Amalgamation) Rules, 2016.

The Company has prepared the standalone financial statements for the year ended March 31, 2025, in accordance with the confirmation order received for the Amalgamation. Consequently, the standalone financial statements of PCASL now include equity broking business of erstwhile PBSPL for the year ended March 31, 2025 and March 31, 2024. Accordingly, the figures presented in the standalone financial statements are after giving effect to the said Scheme.

42(B) Compliance With Number Of Layers Of Companies:

The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies ( Restriction on number of Layers) Rules, 2017.

43 Contingent Liabilities and Commitments

(a) Contingent liabilities

Note-1.1 Under Income Tax Matters, the Company received assessment orders under Section 147 of the Income-tax Act, 1961 from the Assessment Unit, confirming the income tax demands of '20.69 lakhs for the Assessment Year 2016-17 and '9.10 lakhs for Assessment Year 2018-19 (interest thereon not ascertainable at present). In both the Assessment Year, tax demand was based on the denial of exemption for a portion of dividend income. The Company has filed appeals against these assessment orders before the Commissioner of Income Tax (Appeals) - NFAC, Delhi. As on the reporting date, both appeals remain pending adjudication. In respect of the demand raised for AY 2016-17, the Company has paid '4.14 lakhs (being 20% of the disputed tax demand) under protest. The balance amount of '16.55 lakhs has been adjusted by the Income Tax Department against the income tax refund due to the Company for AY 2022-23..

Note-1.2 Pursuant to a scheme of amalgamation sanctioned u/s 233 of the Companies Act 2013 for amalgamation of Prudent Broking Services Private Limited (“PBSPL”) (Transferor Company) with the company with effect from April 01,2023(appointment date). Accordingly, all contingent liabilities and legal obligations of the erstwhile PBSPL have been vested into the Company. Prior to amalgamation, PBSPL had received an assessment order under Section 147 read with Section 144B of the Income-tax Act, 1961, dated

September 29, 2021, from the Assessment Unit of the Income Tax Department, raising a demand of '538.47 lakhs for Assessment Year 2013-14. The demand pertains to addition of income made under Section 68 read with Section 115BBE of the Act. Against this order, PBSPL had filed an appeal on October 13, 2021, before the Commissioner of Income Tax (Appeals) NFAC, Delhi. PBSPL has deposited '50.00 lakhs under protest, and the matter remains pending adjudication as on the reporting date.

Further, PBSPL has also received penalty orders dated June 25, 2024, under section 271FAA of the Income-tax Act, 1961, for Assessment Years 2022-23 and 2023-24, each imposing a penalty of '0.50 Lakhs. These penalties were levied for alleged furnishing of inaccurate information under Section 285BA(1)(k) of the Act. The Company has preferred appeals against these penalty orders before the Commissioner of Income Tax (Appeals) - NFAC, Delhi, on August 20, 2024, and the outcome are awaited.

Note-2.1 Under Goods and Service Tax Laws, the Company has received various demand orders,passed by Assistant Commissioner/ Deputy Commissioner of Central/State Tax in the states 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 '5.49 lakhs pre-deposit and the Company has filed an appeal with Appellate Authority of respective states and the same is yet to be concluded as on the reporting date. One of the orders amounting to '40.78 lakhs has been confirmed by the Appellate Authority in West Bengal. However, the Company intends to pursue further appeal before the Appellate Tribunal.

Note-2.2 Company has received show cause notice in the state of Gujarat (FY 2019-20) for raising total demand of GST '17.06 lakhs (excluding interest and penalty) 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, short payment of tax.The company has responded to such notice and received the favourable order in current year and accordingly these proceedings have been dropped. Most of the issues of litigation pertaining to Income Tax and Goods and Service Tax are based on interpretation of the respective Laws & Rules thereunder. Management has been opined by its counsel that many of the issues raised by revenue will not be sustainable in the law as they are covered by judgements of respective judicial authorities which supports its contention. As such no material impact on the financial position and performance of the Company is envisaged. Therefore, no provision has been made in the financial statements, and the matters are being disclosed as contingent liabilities.

(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. 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 filed a complaint with NSE’s Grievence Redressal Committee (GRC) on December 28, 2020 and 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. 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).

(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, 2025.

44 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.

45 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.

46 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 software related to Mutual Fund Business which is internally developed software by the Company, No audit trail was enabled for all relevant transactions at the database level to log any direct data changes but the Company has taken necessary action to safeguards all its data at transactions level.

47 The standalone financial statements were authorized for issue in accordance with a resolution of the Board of Directors on May 12, 2025.