3.8 Provisions :

Provisions are recognised when there is a present obligation as a result
of a past event, and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and there is a
reliable estimate of the amount of the obligation. Provisions are reviewed
at each balance sheet date and adjusted to reflect the current best
estimate.

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
at a pre-tax rate that reflects current market assessments of the time value
of money and the risks specific to the liability.

When there is a possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made.

3.9 Revenue recognition

A) Recognition of interest income on loans

Interest income is recognised in Statement of profit and loss using
the effective interest method for all financial instruments measured
at amortised cost, debt instruments measured at FVOCI and debt
instruments designated at FVTPL. The ‘effective interest rate’ is
the rate that exactly discounts estimated future cash payments or
receipts through the expected life of the financial instrument.

The calculation of the effective interest rate includes transaction
costs and fees that are an integral part of the contract. Transaction
costs include incremental costs that are directly attributable to the
acquisition of financial asset.

If expectations regarding the cash flows on the financial asset are
revised for reasons other than credit risk, the adjustment is recorded
as a positive or negative adjustment to the carrying amount of the
asset in the balance sheet with an increase or reduction in interest
income. The adjustment is subsequently amortised through Interest
income in the Statement of profit and loss.

The Company calculates interest income by applying the EIR to the
gross carrying amount of financial assets other than credit-impaired
assets.

When a financial asset becomes credit-impaired, the Company
calculates interest income by applying the effective interest rate to
the net amortised cost of the financial asset. If the financial asset
cures and is no longer creditimpaired, the Company reverts to
calculating interest income on a gross basis.

Additional interest and interest on trade advances, are recognised
when they become measurable and when it is not unreasonable to
expect their ultimate collection.

Income from bill discounting is recognised over the tenure of the
instrument so as to provide a constant periodic rate of return.

B) Fees and commission income :

Fee based income are recognised when they become measurable
and when it is probable to expect their ultimate collection.

Commission and brokerage income earned for the services rendered
are recognised as and when they are due.

C) Dividend and interest income on investments :

- Dividends are recognised in Statement of profit and loss only
when the right to receive payment is established, it is probable
that the economic benefits associated with the dividend will
flow to the Company and the amount of the dividend can be
measured reliably.

- Interest income from investments is recognised when it is
certain that the economic benefits will flow to the Company
and the amount of income can be measured reliably. Interest
income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable.

3.10 Employee Benefits :

A) Short-term employee benefits

Short-term employee benefits are expensed as the related service is
provided. A liability is recognised for the amount expected to be paid
if the Company has a present legal or constructive obligation to pay
this amount as a result of past service provided by the employee and
the obligation can be estimated reliably.

B) Contribution to provident fund and ESIC

Company’s contribution paid/payable during the year to provident
fund and ESIC is recognised in the Statement of profit and loss.

C) Gratuity

The Company’s liability towards gratuity scheme is determined
by independent actuaries, using the projected unit credit method.
The present value of the defined benefit obligation is determined
by discounting the estimated future cash outflows by reference
to market yields at the end of the reporting period on government
bonds that have terms approximating to the terms of the related
obligation. Past services are recognised at the earlier of the plan
amendment / curtailment and recognition of related restructuring
costs/ termination benefits.

The net interest cost is calculated by applying the discount rate to
the net balance of the defined benefit obligation and the fair value of
plan assets. This cost is included in employee benefit expense in the
Statement of profit and loss.

Remeasurement gains/ losses-

Remeasurement of defined benefit plans, comprising of actuarial
gains / losses, return on plan assets excluding interest income are
recognised immediately in the balance sheet with corresponding debit
or credit to Other Comprehensive Income (OCI). Remeasurements
are not reclassified to Statement of profit and loss in the subsequent
period.

Remeasurement gains or losses on long-term compensated
absences that are classified as other long-term benefits are
recognised in Statement of profit and loss.

D) Superannuation fund

The Company makes contribution to the Superannuation scheme,
a defined contribution scheme, administered by Life Insurance
Corporation of India, which are charged to the Statement of profit
and loss. The Company has no obligation to the scheme beyond its
contributions.

E) Leave encashment / compensated absences / sick leave -

The Company provides for the encashment / availment of leave
with pay subject to certain rules. The employees are entitled to
accumulate leave subject to certain limits for future encashment
/ availment. The liability is provided based on the number of days
of unutilized leave at each balance sheet date on the basis of an
independent actuarial valuation.

3.11 Finance costs

Finance costs include interest expense computed by applying the effective
interest rate on respective financial instruments measured at Amortised
cost. Financial instruments include bank term loans, non-convertible
debentures, fixed deposits mobilised, commercial papers, subordinated
debts and exchange differences arising from foreign currency borrowings
to the extent they are regarded as an adjustment to the interest cost.
Finance costs are charged to the Statement of profit and loss.

3.12 Taxation - Current and deferred tax:

Income tax expense comprises of current tax and deferred tax. It is
recognised in Statement of profit and loss except to the extent that it
relates to an item recognised directly in equity or in other comprehensive
income.

A) Current tax :

Current tax comprises amount of tax payable in respect of the
taxable income or loss for the year determined in accordance with
Income Tax Act, 1961 and any adjustment to the tax payable or
receivable in respect of previous years. The Company’s current tax
is calculated using tax rates that have been enacted or substantively
enacted by the end of the reporting period.

B) Deferred tax :

Deferred tax assets and liabilities are recognized for the future tax
consequences of temporary differences between the carrying values
of assets and liabilities and their respective tax bases. Deferred
tax liabilities and assets are measured at the tax rates that are
expected to apply in the period in which the liability is settled or the
asset realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the
tax consequence that would follow from the manner in which the
Company expects, at the end of the reporting period, to recover or
settle the carrying amount of its assets and liabilities.

Deferred tax assets are recognized to the extent that it is probable
that future taxable income will be available against which the
deductible temporary difference could be utilized. Such deferred tax
assets and liabilities are not recognised if the temporary difference
arises from the initial recognition of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting
profit. The carrying amount of deferred tax assets is reviewed at
the end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.

3.13 Leases
Company as a lessee

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

At the date of commencement of the lease, the Company recognizes a
right-of-use asset (“ROU”) and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for leases with a term of twelve
months or less (short-term leases) and low value leases. For these short¬
term and low value leases, the Company recognizes the lease payments
as an operating expense on a straight-line basis over the term of the lease.

The right of-use asset is initially measured at cost, which comprises the
initial amount of lease liability adjusted for any lease payments made at
or before the commencement date, plus any initial direct cost incurred and
an estimate of costs to dismantle and remove the underlying asset or to
restore the underlying asset or the site on which it is located, less any
lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line
method from the commencement date to the earlier of the end of the useful
life of the right-to-use asset or the end of the lease term. The estimated
useful life of the right-to-use asset is determined on the same basis as
those of property, plant and equipment.

The Company measures the lease liability at the present value of the
lease payments that are not paid at the commencement date of the lease.
The lease payments are discounted using the interest rate implicit in the
lease, if that rate can be readily determined. If that rate cannot be readily
determined, the Company uses incremental borrowing rate. When the
lease liability is re-measured in this way, a corresponding adjustment is
made to the carrying amount of the right -of-use asset, or is recorded in the
Profit and Loss if the carrying amount of the right-of-use asset has been
reduced to zero

The lease liability is subsequently increased by the interest cost on the
lease liability and decreased by lease payment made. The carrying amount
of lease liability is remeasured to reflect any reassessment or lease
modifications or to reflect revised in-substance fixed lease payments.

3.14 Exceptional items

When items of income and expenses within profit or loss from ordinary
activities are of such size, nature or incidence that their disclosure is
relevant to explain the performance of the enterprise for the period, the
nature and amount of such items is disclosed separately as Exceptional
items.

3.15 Earning per share

The Company reports basic and diluted earnings per equity share. Basic
earnings per equity share have computed by dividing net profit/loss
attributable to the equity share holders for the year by the weighted average
number of equity shares outstanding during the year. Diluted earnings per
equity share have been computed by dividing the net profit attributable
to the equity share holders after giving impact of dilutive potential equity
shares for the year by the weighted average number of equity shares and
dilutive potential equity shares outstanding during the year, except where
the results are anti-dilutive.

3.16 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the
period is adjusted for the effects of transactions of a non-cash nature, any
deferrals or accruals of past or future operating cash receipts or payments
and items of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and financing
activities of the Company are segregated.

3.17 Recent accounting development

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. For the year ended March 31, 2024,
MCA has not notified any new standards or amendments to the existing
standards applicable to the Company.

h. Aggregate number of share issued in cash/ share issued pursuant to
contract without payment being received in cash during the period of five
years immedietaly preceedings the reporting date.

No share was issued in cash/ share issued pursuant to contract without payment
being received in cash during the period of five years immediately preceeding the
reporting date. No shares were alloted as fully paid up bonus shares during the
period of five years immediately preceeding the reporting date. There has been
no buy back of shares during the period of five years immediately preceeding the
reporting date.
i Dividend

Final dividend distribution to shareholder is recognised as a liability in the period
in which dividend is approved by the shareholders. Any interim dividend paid is
recognised on approval by board of directors. Dividend payable is recognised
directly in equity.

Companies are required to pay/ distribute dividend after deducting applicable
taxes. The remittance of dividend outside India is governed by indian law on foreign
exchange and is also subject to withholding tax at applicable rates.

Description of the nature and purpose of Other Equity:

Securities Premium

Securities premium represents amount received in excess of face value of the equity
shares. The Securities premium can be applied by the company for limited purposes such
as issuance of bonus shares, buy back of shares etc. in accordance with the provisions of
Section 52 of the Companies Act, 2013.

Stautory Reserve

Statutory reserve represents reserve fund created pursuant to Section 45-IC of the RBI
Act, 1934 through transfer of specified percentage (20%) of net profit every year before
any dividend is Marchlared. The reserve fund can be utilised only for limited purposes as
specified by RBI from time to time and every such utilisation shall be reported to the RBI
within specified period of time from the date of such utilisation.

Retained Earnings

Retained earnings or accumulated surplus represents total of all profits retained since
Company's inception. Retained earnings are credited with current year profits, reduced
by losses, if any, dividend payouts, transfers to General reserve or any such other
appropriations to specific reserves. Debit balance in retained earnings represents balance
of accumulated losses.

Other Comprehensive Income:

Equity Instruments through Other Comprehensive income.

The Company has elected to recognise changes in the fair value of certain investments
in equity securities in other comprehensive income. These changes are accumulated
within the FVTOCI equity investments reserve within equity. The Company transfers
amounts from this reserve to retained earnings when the relevant equity securities are
derecognised.

Remeasurement gain/ (losses) on defined benefit plan

The Company recognises change on account of remeasurement of the net defined benefit
liability/(asset) as part of other comprehensive income.

36. Capital Management

The Company's policy is to maintain a strong capital base so as to maintain investor,
creditor and market confidence and to sustain future development of the business.

The company has adequate cash and bank balances. The company monitors its capital
by careful scrutiny of the cash and bank balances, and a regular assessment of any debt
requirements. In the absence of any significant amount of debt, the maintenance of debt
equity ratio etc. may not be of any relevance to the Company.

37. Financial Risk Management
Financial risk factors

The Company's principal financial liabilities, comprise borrowings and other payables. The
main purpose of these financial liabilities is to purchase certain fixed assets and other
liabilities incurred during the ordianary course of Company's operations. The Company's
principal financial assets include Investments, inter corporate deposits, loans, cash and
cash equivalents and other receivables. The Company's activities expose it to a variety of
financial risks:

I. Market Risk

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

The company is exposed to market risk primarily related to the market value of its
investments.

Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of Financial
Instruments will fluctuate because of change in market interest rates.The company
does not have exposure to the risk of changes in market interest rate as it has debt
obligations with fixed interest rates which are measured at amortised cost.

Currency risk

Currently company does not have transaction in foreign currencies and hence the
company is not exposed to currency risk.

Equity Price Risk

(a) Exposure

The company is exposed to equity price risk arising from Investments held by
the company and classified in the balance sheet as fair value through P&L. To
manage its price risk arising from investment in equity securities, the company
diversifies its portfolio.

The majority of the company's equity instruments are listed on the Bombay
stock exchange (BSE) or the National stock exchange (NSE) in India.”

(b) Sensitivity analysis- Equity price risk

The table below sumarise the impact of increase/ decrease of the index on the
company's equity and the profit for the period. The analysis is based on the
assumption that the equity/ index had increased by 2% or decreased by 2% with
all other variable held constant, and that all the company's equity instruments
moved in line with the Index.

47. The Company holds 3840 equity shares in its name as trustee in its depository account.

These shares are a result of fractional entitlement under its Scheme of Arrangement.

48. Other statutory information

i The Company does not have any Benami property, where any proceeding has been
initiated or pending against the Group for holding any Benami property.

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

iii The Company has complied with the number of layers prescribed under clause (87)
of section 2 of the Act read with Companies (Restriction on number of Layers) Rules,
2017 for the financial years ended March 31, 2025 and March 31,2024.

iv ivThe company has performed an assesment to identify transactions with Struck off
Companies as at 31/03/2025 and the details of which are as under: -

Note: - In the absence of purchase price of share held by struck off companies face
value is considered for reporting purpose.

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

vi The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.

vii 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:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries

viii 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 Group shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries,

ix The Company has not 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.

d) Intra Group Exposures: -

The Company has given intra group (subsidiary company) loans & advances of Rs.Nil as at the year end (Previous Year Rs. 37.00 Lakhs) .

The Company has invested in group companies totalling to Rs. 3,535.36 Lakhs as at the year end (Previous Rs. 2272.37 Lakhs).

e) Unhedged foreign currency exposure

The Company does not have any unhedged foreign currency exposures as at March 31,2025 and March 31, 2024.

f) Disclosure of complaints

The Company does not have any customer interface and thus there are no complaints received by the NBFCs from customers and from the Offices of Ombudsman during the year ended
March 31, 2025 and March 31,2024.

g) Related Party Disclosure

For related party disclosures refer to Note 30 of the notes to standalone financial statements.

51. The Previous year figures have been regrouped/reclassified,wherever necessary to confirm to the Current Year's presentation.

As Per our Report of even date attached

FOR N. C. AGGARWAL & CO. FOR AND ON BEHALF OF THE

CHARTERED ACCOUNTANTS BOARD OF DIRECTORS OF

Firm Registration Number : 003273N HB STOCKHOLDINGS LIMITED

Sd/- Sd/- Sd/-

G.K. AGGARWAL LALIT BHASIN ANIL GOYAL

PARTNER (CHAIRMAN) (DIRECTOR)

MEMBERSHIP NO. : 086622 DIN: 00002114 DIN: 00001938

Sd/- Sd/-

MAHESH KUMAR GUPTA REEMA MIGLANI

PLACE: GURUGRAM (CHIEF FINANCIAL OFFICER) (COMPANY SECRETARY)

DATE: 7^TH MAY, 2025 (M NO: ACS45762)