14.3 Rights, preferences and restrictions attached to the equity shares

The Company has issued only one class of equity shares having a face value of Rs. 10 each all of which are fully paid up and are entitled to voting rights. The Company has not declared any dividend in the current year. The Company has not issued any shares for consideration other than cash during the period of fve year immediately preceding the

reporting date

Statutory Reserve pursuant to Section 45-IC of the RBI Act, 1934

In terms of Section 45-IC of the RBI Act, every non-banking financial company shall create a reserve fund to transfer therein a sum not less than twenty per cent of its net profit to a Reserve Fund, before declaring any dividend. Appropriation from this reserve fund is permitted only for the purposes specified by the RBI.

Note 22: Defined benefit plans

The Company does not recognise its liability for 'Gratuity' and 'Leave encashment' on the basis as prescribed in IND AS 19 Employee Benefits. The company provides for the actual liability (if any) or recognises as expense when such Gratuity or Leave encashment is paid to the employee.

Note 23: Segment information (IND AS 108)

Operating Segment :

The Company operates mainly in the business segment of fund based financing activity. All other activities revolve around the main business. Further, all activities are carried out within India. As such, there are no separate reportable segments as per the provisions of IND AS 108 on ‘Operating Segments’.

Note 27:

The Company is a Non Banking Finance Company and do not accept any public deposits. The management of the Company has confirmed the following:

1) The Board of Directors has passed a resolution for the non acceptance of any public deposit.

2) The Company has complied with the prudential norms relating to income recognition, accounting standards, assets, classification, and provisioning for bad debts as applicable.

3) The Board has transferred an amount of Rs. 600.463/- (in thousand) (PY Rs. 391.222/- (in thousand)) for current year towards “Special Reserve Account “ and the same has been shown under the head Special Reserve Account under Note No. 15 of Reserve and Surplus, as per the requirement under section 45-IC ofthe Reserve Bank of India Act, 1934. i.e. 20% of Profit after Tax.

4) As per the prudential norms on Income Recognition, Asset Classification with reference to Master Direction DNBR.PD.007/03.10.119/2016-17 dated September 01, 2016, the Board has provided 0.25 percentage ( last year 0.25 percentage) of standard assets towards “Contingent provision against Standard Assets”. Due to this account a provision written back of Rs. 131.022 (in thousand) has been made during the financial year (Previous Year provision made Rs. 6.938/- (in thousand)).

- Provisioning norms shall be applicable as prescribed in the Non-Banking Financial (Non-Deposit Accepting or holding) Companies Norms (Reserve Bank) Direction, 2007.

All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets acquired in satisfaction of debt.

However, market value in respect of quoted investments and break up/fair value/NAV in respect of Unquoted investments should be they are classified as long term or current (4) above.

Note 29 : Maturity analysis of assets and liabilities

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or settled. They have been classified to mature and/or be repaid within 12 months. With regards to loans and advances to customers, the Company uses the same basis of expected repayment as used for estimating the EIR.

Capital Management

The primary objectives of the Company’s capital management policy are to ensure that the Company complies with externally imposed capital requirements and maintains strong credit ratings and healthy capital ratios in order to support its business and to maximise shareholders value. The company has maintained the minimum capital as required to be maintained as per the RBI guidelines. The Company manages its capital structure and makes adjustments to it according to changes in economic conditions and the risk characteristics of its activities. Capital Management Policy, objectives and processes are under constant review by the Board.

Note 31

31.1 : Risk Disclosures

Company’s risk is managed through an integrated risk management framework, including ongoing identification, measurement and monitoring, subject to risk limits and other controls. This process of risk management is critical to the Company’s continuing profitability and each individual within the Company is accountable for the risk exposures relating to his or her responsibilities. The Company is exposed to credit

It is the Company’s policy to ensure that a robust risk awareness is embedded in its organisational risk culture.

31.2. Credit risk

Credit risk is the risk that the Company will incur a loss because its customers or counterparties fail to discharge their contractual obligations. The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties

31.2.1 Impairment assessment

All advances have been classified as Stage 1 since they have low credit risk and there are no overdue.

31.2.1.1 Exposure at Default

EAD is taken as the gross exposure under a facility upon default of an obligor.The amortized principal and the interest accrued is considered as EAD for the purpose of ECL computation

31.2.1.2 PD estimation process

In view of low credit risk, the Company has assessed the probability of default at 0.25% of the exposure of EAD which is also in line with the minimum provisioning requirement as per RBI guidelines. The Company does not expect a higher loss.

The probability of default is an estimate of the likelihood of default over a given time horizon. A default may only happen at a certain time over the assessed period, if the facility has not been previously derecognised and is still in the portfolio.Probability of Default is computed based on number of accounts that default during a year as a percentage of average number of accounts outstanding.

a) The Company has applied 12 months PD to stage 1 advances

b) The Lifetime PD is computed using basic exponentiation technique after considering the residual maturity of the respective loan

c) PD of 100% is considered for Stage 3 assets.

31.2.1.3 Loss given default

In view of the above, the LGD is estimated as Nil

The loss given default is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference between the contractual cash flows due and those that would be expected to receive, including from realisation of any prime/collateral security. LGD is computed based on discounted expected recoveries at an account level based on collateral valuation after applying appropriate hair cut and

31.3. Liquidity risk and funding management

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows.

31.4. Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financiainstruments.

b) Draw Down from Reserves

The Company has not made any draw down from reserves during the previous year.

c) Concentration of Public deposits, Advances, Exposures and NPAs

There are no Public Deposits during the year ended March 31, 2023. Hence Related Disclosures are not applicable.

d) Concentration ofAdvances

As the Company has less than 20 borrowers, percentage of advances to its largest borrowers to total advances of the Company is 100%.

e) Concentration of Exposures

As the Company has less than 20 borrowers, percentage of exposures to its largest borrowers /customers to total exposure of the NBFC on borrowers / custom:rs is 100%.

Note 38. There are no Restructured Accounts as per Appendix 4 of Master Direction - Non-Banking Financial Company -Svstemicallv Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions. 2016.

Note 39. The company has not reported any frauds during the current year (March 31, 2025: Rs. Nil) based on management reporting to risk committee and to the RBI through prescribed returns.

Note 40:

In the opinion of the Board the value of current assets, loans and advances, if realized in the ordinaiy courses of business, shall not be less than the amount at which the same are stated in the balance sheet. Confirmation of balances have not been received from debtors, creditors, loans and advances given through request was sent to major parties and therefore balances

Note 41:

i) t he Company do not have any Benami property, where any proceeding has oeen initiated or pending against tne Company for holding any Benami property.

ii) The Company do not have any transactions with companies struck off.

iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutoiy

iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

v) The Company have 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

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

vi) The Company have 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:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the

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

vii) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income durina the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or

Note 42: Grouping and classification

Figures of the previous year have been rearranged wherever necessary to them comparable with the current year's

classfic ation