(k) Provisions, contingent liabilities and contingent
assets

The Company recognizes provisions when a
present obligation (legal or constructive) as a
result of a past event exists and it is probable that
an outflow of resources embodying economic
benefits will be required to settle such obligation
and the amount of such obligation can be reliably
estimated.

If the effect of time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognized as a finance cost.

A disclosure for a contingent liability is made when
there is a possible obligation or a present obligation
that may, but probably will not require an outflow
of resources embodying economic benefits or the
amount of such obligation cannot be measured
reliably. When there is a possible obligation or a
present obligation in respect of which likelihood
of outflow of resources embodying economic
benefits is remote, no provision or disclosure is
made.

Contingent assets are not recognised in the
financial statements, however they are disclosed
where the inflow of economic benefits is probable.
When the realisation of income is virtually certain,
then the related asset is no longer a contingent
asset and is recognised as an asset.

(l) Revenue recognition

a) As per Ind AS 109, “Financial Instruments”,
Interest income from financial assets
is recognised on an accrual basis using
effective interest rate method (EIR). The
effective interest rate method is the rate
that exactly discounts estimated future cash
receipts (including all fees, transaction costs
and other premiums or discounts paid or
received if any) through the expected life
of the financial instrument to the carrying
amount on initial recognition

The Company calculates interest income
by applying the EIR to the gross carrying
amount of financial assets other than credit
impaired assets. In case of credit-impaired
financial assets (regarded as Stage 3), the
Company recognises interest income on the

amortised cost net of impairment loss of the
financial asset at EIR. If the financial asset
is no longer credit-impaired, the Company
reverts to calculating interest income on a
gross basis.

b) Dividend income is recognised when the
Company’s right to receive the payment
is established and 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. This is generally when the
shareholders approve the dividend.

(c) Any differences between the fair values on
the date of acquisition and balance sheet
date of the financial assets classified as fair
value through the profit or loss, held by
the Company on the balance sheet date is
recognized as an unrealized gain/loss in the
standalone statement of profit and loss. In
case, there is a net gain/ (loss) in aggregate,
the same is recognized in “Net gains/ (losses)
on fair value changes” under revenue from
operations, in the standalone statement
of profit and loss.

(d) The Company recognises income on
recoveries of financial assets written off on
realisation or when the right to receive the
same without any uncertainties of recovery
is established .

(e) Advisory fees is measured and recognised as
per the terms of the agreement.

(m) Retirement and other employee benefits

(i) The Company operates both defined benefit
and defined contribution schemes for its
employees.

For defined contribution schemes the
amount charged as expense is equal to
the contributions paid or payable when
employees have rendered services entitling
them to the contributions.

For defined benefit plans, actuarial
valuations are carried out at each balance
sheet date using the Projected Unit Credit
Method. All such plans are funded.

All expenses represented by current service
cost, past service cost, if any, and net interest
on the defined benefit liability/ (asset) are
recognized in the Statement of Profit and
Loss. Remeasurements of the net defined
benefit liability/ (asset) comprising actuarial

gains and losses (excluding interest on
the net defined benefit liability/ (asset))
are recognised in Other Comprehensive
Income (OCI). Such remeasurements are not
reclassified to the statement of profit and
loss, in the subsequent periods.

(ii) Short term employee benefits: All employee
benefits payable wholly within twelve
months of rendering the service are classified
as short term employee benefits and they
are recognized in the period in which the
employee renders the related service. The
Company recognizes the undiscounted
amount of short term employee benefits
expected to be paid in exchange for services
rendered as a liability.

(n) Accounting for taxes on income

Tax expense comprises of current and deferred
tax.

Current tax

Current tax is the amount of income taxes payable
in respect of taxable profit for a period. Current tax
is recognized at the amount expected to be paid to
or recovered from the tax authorities, using the
tax rates and tax laws that have been enacted or
substantively enacted at the balance sheet date.
Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject to
interpretation and establishes provisions where
appropriate.

Current tax is recognized in the statement of profit
and loss except to the extent that the tax relates to
items recognized directly in other comprehensive
income or directly in equity.

Deferred tax

Deferred tax assets and liabilities are recognized
for all temporary differences arising between the
tax bases of assets and liabilities and their carrying
amounts in the financial statements except when
the deferred tax arises from the initial recognition
of an asset or liability that effects neither
accounting nor taxable profit or loss at the time of
transition.

Deferred tax assets and liabilities are measured
using tax rates and tax laws that have been enacted
or substantively enacted at the balance sheet date
and are expected to apply to taxable income in the
years in which those temporary differences are
expected to be recovered or settled.

Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no
longer probable that the related tax benefit will be
realized.

Current and deferred tax are recognized as income
or an expense in the statement of profit and loss,
except to the extent they relate to items that are
recognized in other comprehensive income, in
which case, the current and deferred tax income
/ expense are recognised in other comprehensive
income.

(o) Earnings per share

Basic earnings per share is computed and disclosed
using the weighted average number of equity
shares outstanding during the period. Dilutive
earnings per share is computed and disclosed
using the weighted average number of equity
and dilutive equity equivalent shares outstanding
during the period, except when the results would
be anti-dilutive.

(p) Contributed equity

Equity shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net
of tax, from the proceeds.”

(q) Exceptional items

On certain occasions, the size, type or evidence
of the item of income or expenditure partaining
to ordinary activities of the Company as such that
its disclosures improves the understanding of
the performance of the Company , such income
or expenses is classified as an exceptional item
and accordingly disclosed in the financials
statement.

(r) Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the Chief Operating Decision Maker, who
regularly monitors and reviews the operating
result for following operating segments of the
Company.

(s) Critical accounting judgment and estimates

The preparation of financial statements requires
management to exercise judgment in applying the
Company’s accounting policies. It also requires
the use of estimates and assumptions that affect
the reported amounts of assets, liabilities,
income and expenses and the accompanying
disclosures including disclosures of contingent
liabilities. Actual results may differ from these
estimates. Estimates and underlying assumptions
are reviewed on an ongoing basis, with revisions

recognised in the period in which the estimates
are revised and in any future periods affected.

a Contingencies

In the normal course of business, contingent
liabilities may arise from litigation and
other claims against the Company. Potential
liabilities that have a low probability of
crystallising or are very difficult to quantify
reliably are treated as contingent liabilities.
Such liabilities are disclosed in the notes
but are not provided for in the financial
statements. There can be no assurance
regarding the final outcome of these legal
proceedings.

b Useful lives and residual values

The Company reviews the useful lives
and residual values of property, plant and
equipment at each financial year end.

c Fair value measurement of financial
instruments

“A number of Company’s accounting
policies and disclosures require the
measurement of fair values for both
financial and non- financial assets and
liabilities. When measuring the fair value
of an asset or a liability, the Company uses
observable market data as far as possible.
Fair values are categorized into different
levels in a fair value hierarchy based on
the inputs used in the valuation techniques
as follows:

-Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.

-Level 2: inputs other than quoted prices
included in Level 1 that are observable for the
asset or liability, either directly (i.e. prices)
or indirectly (i.e. derived from prices).

-Level 3: inputs for the asset or liability that
are not based on observable market data
(unobservable inputs).

If the inputs used to measure the fair value of
an asset or a liability fall into different levels
of a fair value hierarchy, then the fair value
measurement is categorized in its entirety in
the same level of the fair value hierarchy as
the lowest level input that is significant to the
entire measurement.

The Company recognizes transfers between
levels of the fair value hierarchy at the end of
reporting year during which the change has
occurred.”

d Impairment testing

Judgment is also required in evaluating
the likelihood of collection of customer
debt after revenue has been recognised.
This evaluation requires estimates to be
made, including the level of provision to be
made for amounts with uncertain recovery
profiles. Provisions are based on historical
trends in the percentage of debts which are
not recovered or on more detailed reviews of
individually significant balances.

Determining whether the carrying amount of
these assets has any indication of impairment
also requires judgment. If an indication of
impairment is identified, further judgment
is required to assess whether the carrying
amount can be supported by the net present
value of future cash flows forecast to be
derived from the asset. This forecast involves
cash flow projections and selecting the
appropriate discount rate.

e Tax

The Company’s tax charge is the sum of the total
current and deferred tax charges. The calculation
of the Company’s total tax charge necessarily
involves a degree of estimation and judgment
in respect of certain items whose tax treatment
cannot be finally determined until resolution has
been reached with the relevant tax authority or, as
appropriate, through a formal legal process.

Accruals for tax contingencie s require management
to make judgments and estimates in relation to tax
related issues and exposures.

The recognition of deferred tax assets is based
upon whether it is more likely than not that
sufficient and suitable taxable profits will be
available in the future against which the reversal
of temporary differences can be deducted. Where
the temporary differences are related to losses, the
availability of the losses to offset against forecast
taxable profits is also considered. Recognition
therefore involves judgment regarding the future
financial performance of the particular legal entity
or tax Company in which the deferred tax asset has
been recognized.

f Defined benefit obligation

The costs of providing pensions and other post¬
employment benefits are charged to the Statement

of Profit and Loss in accordance with Ind AS 19
‘Employee benefits’ over the period during which
benefit is derived from the employees’ services.
The costs are assessed on the basis of assumptions
selected by the management. These assumptions
include salary escalation rate, discount rates,
expected rate of return on assets and mortality
rates. The same is disclosed in Note 34, ‘Employee
benefits plan’.

g Leases

The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of Ind AS
116. Identification of a lease requires significant
judgement. The Company uses significant
judgement in assessing the lease term (including
anticipated renewals) and the applicable discount
rate. The Company revises the lease term if there
is a change in the non-cancellable period of a
lease. The discount rate is generally based on the
incremental borrowing rate specific to the lease
being evaluated or for a portfolio of leases with
similar characteristics.

• Determining whether an arrangement
contains a lease

‘In determining whether an arrangement is
or contains a lease is based on the substance
of the arrangement at the inception of the
lease. The arrangement is or contains a
lease date if fulfilment of the arrangement
is dependent on the use of a specific asset
or assets and the arrangement conveys a
right to use the asset, even if that right is not
explicitly specified in the arrangement.

h Recent 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. For the year
ended 31 March 2025, MCA has notified Ind AS -
117 Insurance Contracts and amendments to Ind
AS 116 - Leases, relating to sale and leaseback
transactions, applicable to the Company w.e.f. 1
April 2024. The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any significant
impact in its financial statements.

Note No.-

1 a) Overdraft from Yes Bank Limited of Rs. Nil lakhs (2024: Rs. 221.79) with sanction limit of Rs. 2,000 lakhs (2024: 2,000

lakhs) are secured against 110% pledge of fixed deposits with banks. The loan is repayable on demand. It carries
interest at weighted average underlying fixed deposit 50 bps and charge is yet to be registered with the Registrar of
Companies.

(b) Overdraft from Federal Bank Limited of Rs. Nil (2024: Rs. Nil) with sanction limit of Rs. 500 lakhs are secured against
110% pledge of fixed deposits with banks. The loan is repayable on demand. It carries interest at weighted average
underlying fixed deposit 50 bps. The loan has been repaid during the year.”

c) Cash Credit/ Overdraft from Bank of India of Rs. Nil lakhs (2024: Rs. 63.83) with sanction limit of Rs. 0.85 lakhs (2024
: 85.00 lakhs) are secured with 15% margin on fixed deposit with the bank. The loan carries interest at weighted
average underlying fixed deposit 100 bps and charge is yet to be registered with the Registrar of Companies.

d) Working Capital facility from Bank of India Rs.Nil lakhs (2024 : Rs. 1,608.79 lakhs) with sanction limit of Rs. Nil lakhs
(2024 : 10,000.00 lakhs) are secured against pledge of approved debt securities rated ‘A’ with 25% margin and debt
securities rated ‘AA’ and above, with 15% margin ,with the bank and personal guarantee of the Promoter. The loan is
repayable on demand and carries interest at one year MCLR BSS CRP. The loan has been repaid during the year.

e) Working Capital facility from Federal Bank Limited of Rs.Nil lakhs (2024: Rs. Nil lakhs) with sanction limit of Rs.
7,500.00 lakhs (Rs. 5,000 lakhs for intraday and Rs. 2,500 lakhs for overnight) are secured against pledge of Government
Securities in CGSL account with Federal Bank Limited. The loan is repayable on demand and carries interest at one
year MCLR plus 50 bps. The loan has been repaid during the year

2 Borrowings of Rs.3,596.65 lakhs (2024: 3,596.65 lakhs) is considered interest free and is repayable on demand in the

absence of term sheet and confirmation (refer note 29b).

3 The Company has not been declared as a wilful defaulter by any lender.

4 The Company has used the borrowings from banks for the purpose for which they were taken.

b) Terms/rights attached to equity shares

The Company has issued only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares
is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The final dividend proposed
by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.

c) Change in Management control

Pursuant to the Share Purchase Agreement dated 28 August, 2024, entered between the Promoters, the Company and the
Acquirers i.e. Hindon Mercantile Limited (“HML”) and Mr. Kapil Garg (“KG”), the Promoters agreed to sell 56,96,312 equity
shares, representing 45.32% of the issued and paid-up equity share capital of the Company, to the Acquirers.

The transaction, including the change in control and management, received the requisite approval from the Reserve Bank
of India (RBI) on 13 January, 2025, in terms of the Master Direction - RBI (Non-Banking Financial Company - Scale Based
Regulation) Directions, 2023.

Post approval from the RBI, the Acquirers made a Public Announcement on 24 January, 2025, for an Open Offer to acquire
up to 32,67,845 equity shares (representing 26.00% of the Voting Share Capital of the Company) from public shareholders,
in accordance with Regulations 3(1) and 4 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
and subsequent amendments.

As of 31 March, 2025, the Acquirers have collectively acquired 64,43,295 equity shares, constituting 51.26% of the Company’s
issued and paid-up equity share capital, as detailed below:

• 44,29,502 equity shares (35.24%) were transferred from the Promoters to HML;

• 16,725 equity shares (0.14%) were transferred from the Promoters to Mr. Kapil Garg;

• 19,97,068 equity shares were acquired by HML through the Open Offer;

Out of the 56,96,312 equity shares agreed to be sold under the Share Purchase Agreement, 12,50,085 equity shares are yet
to be transferred to HML.

(d) The Company does not have any unrecorded transactions that have been surrendered or disclosed as income during the
year in the tax assessment under Income Tax Act, 1961.

28 Leases

For short-term leases (lease term of twelve months or less) and leases of low-value assets, the Company has opted to
recognise a lease expense on a straight-line basis as permitted by In AS 116. This expense is presented within ‘other
expenses’ forming part of the Financial Statements. Lease rentals of Rs.6.98 lakhs (2024 : Rs.9.84 Lakhs) pertaining to short
term leases and low value asset has been charged to statement of profit and loss.

Right-of-use assets- Disclosures as per Ind AS 116 “Leases”

a) Right-of-use assets (ROU) comprises leased assets of office/branch premises that do not meet the definition of
investment property.

29 Contingent Liabilities , Litigations and Commitments

a) Against a penalty order Rs 180 lakhs (for 2024: Rs 180 lakhs) received from the Enforcement Directorate pertaining
to the erstwhile money changing division of the Company, the Company has preferred an appeal in the Hon’ble
Madras High Court. The Company has provided a bank guarantee in the form of fixed deposits with bank to cover the
demand.

b) State Bank of India obtained an Order from Debt Recovery Tribunal (DRT), Bangalore against Kingfisher Airlines
Limited, United Breweries (Holdings) Limited and Others for recovery of dues from them. In the earlier years, the
Company received a garnishee order from the Recovery Officer, DRT, Bangalore claiming Rs. 2,500 lakhs (plus
interest) as the financial statements of Kingfisher Finvest India Limited (lender) reflected the amount due from the
Company. The Company has contested the claim and deposited Rs.1,126.22 lakhs and investment in mutual fund of
Rs.595.12 lakhs ( 2024: 554.41 lakhs) was attached by the recovery officer. The matter is presently pending before the
Debt Recovery Appellate Tribunal, Chennai.

c) Corporate Guarantee given for securing non rated, unlisted, secured, redeemable, taxable, transferable, non¬
convertible debentures (NCD) issued by LKP Securities Limited not exceeding Rs. 3,000 lakhs (2024 : 3,000). NCD
outstanding as at 31 March 2025 is Rs. 1,355 lakhs (2024 : Rs.815 lakhs).

d) Claims against the Company, not acknowledged as debts in respect of disputed income tax matters is Rs. 29.65 lakhs
(2024 : Rs. Nil lakhs).

Other Litigations

e) A winding up petition filed by the Company against a borrower has been admitted by the Hon’ble High Court of
Mumbai. The recovery if any will be accounted for when the money is received from official Liquidator.

f) The Company has filed an arbitration case for Rs. 26.17 lakhs (2024 : Rs. 26.18 lakhs) against borrowers for which it
has received a favourable award from the arbitrators. The opposing parties have filed an appeal in the Hon’ble High
Court of Mumbai, which is pending.

g) The Company has filed various cases for recovery of dues and suits are pending in various courts/tribunals. The
Company has engaged advocates to protect the interests of the Company.

Capital Commitments- Rs. Nil (2024 : Rs. Nil lakhs).

32 Micro, small and medium enterprises

(a) The Company has Rs. 3.20 lakhs (31 March 2024 : Rs. 3.13 lakhs) outstanding dues to party related to Micro, Small
and Medium enterprises on the basis of information provided by the parties and available on record. Further, there
is no interest paid / payable to micro and small enterprises during the year.

Trade payables and other payables include amount payable to Micro, Small and Medium Enterprises. Under the
Micro, Small and Medium Enterprises Development Act, 2006, (MSMEDA) which came into force from 02 October,
2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of
the information and records available with the management, the following disclosures are made for the amounts due
to the Micro, Small and Medium enterprises, who have registered with the competent authorities.

The Company has compiled the relevant information from its suppliers about their coverage under the Micro, Small and

Medium Enterprises Development Act, 2006 (MSMED Act

(b) There are no trade payables as at 31 March 2025 and 31 March 2024.

3 Financial Instruments

i) The Company’s principal financial assets include investments, loans, other receivables, cash and cash equivalents and
other bank balances that derive directly from its operations. The Company’s principal financial liabilities, comprise
loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the
Company’s operation

a) Market risk:

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

1 Interest rate risk:

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk
is the risk of changes in fair value of fixed interest bearing investments because of fluctuations in the interest rates.
Cash flow interest rate risk is the risk that future cash flows of floating interest bearing investments will vary because
of fluctuations in interest rates.

The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s short-term
loan from banks.

2) Equity Price Risk :

The Company’s quoted equity investments carry a risk of change in prices. To manage its price risk arising from
investments in equity securities, the Company periodically monitors the sectors it has invested in, performance of the
investee companies, measures mark-to-market gains/losses. The fair value of some of the Company’s investments exposes
the Company to equity price risk.

3) Foreign currency risk:

The Company does not have any foreign currency risk. Hence no sensitivity analysis is required

4) Credit Risk:

Credit risk is the risk that the Company will incur a loss because its Loans and receivables fail to discharge their contractual
obligations. The Company has a framework for monitoring credit quality of its Loans and receivables based on days past
due monitoring at period end. Repayment by individual Loans and receivables are tracked regularly and required steps for
recovery are taken through follow ups and legal recourse. Credit risk arises from loans and advances, receivables, cash and
cash equivalents and deposits with banks.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company’s Loans and advances, receivables, cash and cash
equivalents, deposits with banks and investments .

The Company measures the expected credit loss of Loans and receivables based on historical trend, industry practices and
the business environment in which the entity operates. Expected Credit Loss is based on actual credit loss experienced and
past trends based on the historical data.

(i) Credit risk management

Company considers probability of default upon initial recognition of asset and whether there has been any significant
increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant
increase in credit risk Company compares the risk of default occurring on the asset as at the reporting date with the
risk of default as at the date of initial recognition. It considers available reasonable and supportive forward-looking
information.

Definition of Default

A default on a financial asset is when the counterparty fails to make contractual payments within 90 days of when
they fall due. This definition of default is determined by considering the business environment in which NBFC
operates and other macro-economic factors.

For Trade receivables, definition of default has been considered at 360 days past due after looking at the historical
trend of receiving the payments.

Provision for expected credit losses

Company provides for expected credit loss based on following:

The Company classifies its financial assets in three stages having the following characteristics :

Stage 1 :- Unimpaired and without significant increase in credit risk since initial recognition on which a twelve
months allowance for ECL is recognised ;

Stage 2 :- a significant increase in credit risk since initial recognition on which a lifetime ECL is recognised ; and

Stage 3 :-Objective evidence of impairment, and are therefore considered to be in default or otherwise credit impaired
on which lifetime ECL is recognised.

Unless identified at an earlier stage, all financial assets are deemed to have suffered a significant increase in credit
risk when they are thirty days past due (DPD) on the reporting date and are accordingly transferred from stage 1 to
stage 2. For Stage 1 an ECL allowance is calculated on a twelve months point in time probability weighted probability
of default. For stage 2 and 3 assets a life time ECL is calculated on a lifetime probability of default.

Fair Value Hierarchy :

a) Investments included in Level 1 of fair value hierarchy are based on prices quoted in stock exchange and/ or NAV
declared by the funds.

b) Investments included in Level 2 of fair value hierarchy have been valued based on inputs from banks and other
recognised institutions such as FIMMDA.

c) Investments included in Level 3 of fair value hierarchy have been valued using acceptable valuation techniques such
as Net Asset Value and/ or Discounted Cash Flow Method.

Note : All financial instruments for which fair value is recognised or disclosed are categorised within the Fair Value
Hierarchy described as above, based on the lowest level input that is significant to the fair value measurement as a
whole.

Foreign currency risk:

The Company does not have any foreign currency risk. Hence no sensitivity analysis is required.

34 Employee benefit plans

A Gratuity and other post employment benefit plans

The Company has a gratuity plan for its employee’s which is governed by the Payment of Gratuity Act, 1972. The
gratuity benefit payable to the employees of the Company is greater of the provisions of the Payment of Gratuity
Act, 1972 and the Company’s gratuity scheme. Employees who are in continuous service for a period of five years are
eligible for gratuity. The level of benefits provided depends on the employee’s length of service, managerial grade
and salary at retirement age. The gratuity plan is a funded plan and the Company makes contributions to approved
gratuity fund .

The disclosures of employee benefits as defined in the Ind AS 19 ’’Employee Benefits” are given below:
a Details of post retirement gratuity plan are as follows:

Notes:

(a) The current service cost recognized as an expense is included in the Note 24 ‘Employee benefits expense’ as gratuity.
The remeasurement of the net defined benefit liability is included in other comprehensive income.

(b) The estimate of future salary increases considered in the actuarial valuation takes into account the rate of inflation,
seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(c) Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary
increase and mortality. The sensitivity analysis above have been determined based on reasonably possible changes of
the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

B Provident fund

A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions and
where there is no legal or constructive obligation to pay further contributions. During the year, the Company recognised
expense of Rs. 2.68 Lakhs ( 2024: 2.78 lakhs ) towards contribution made to provident fund under defined contribution
plan.

35 Disclosure of transactions with related parties as require by Ind AS 24
(i) List of related parties
Holding Company

Hindon Mercantile Limited (w.e.f. 28 March 2025)

Subsidiary Company

Bond Street Capital Private Limited (ceased with effect from 26 March 2025)

Others fellow subsidiary/ associates/ entities controlled/ significant influenced by KMP/ relative of KMP/ Entity
controlled by *

Mufin Green Finance Limited

Mufin Technologies Private Limited (Wholly owned subsidiary)

Mufinpay Payment Solution Private Limited
Hedge Money Private Limited
Bimapay Finsure Private Limited
2nd Layer Subsidiaries*

Fintelligence Data Science Private Limited (Subsidiary of Mufin Technologies Private Limited)

Mufin Green infra Limited (Subsidiary of Mufin Green Finance Limited)

Mufin Green Leasing Private Limited (Subsidiary of Mufin Green Finance Limited)

*with effect from 28 March 2025

Other related parties with whom transactions have taken place during the year or balance outstanding ay year end.

LKP Securities Limited
Bhavana Holding Private Limited
Sea Glimpse Investments Private Limited
M/s. L.K Panday

Mapple Leaf Trading & Services Limited

Keynote Fincorp Limited

MKM Shares & Stock Brokers Limited

42 Struck of companies

There are neither transactions during the year nor balance outstanding as at 31 March 2025 with struck off companies.

43 The Company has not traded or invested in crypto currency or Virtual currency during the year.

44 No proceedings are initiated or pending against the Company for holding benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988).

45 During the year, the Company has not advanced or loaned or invested funds (either borrowed funds or share premium

or any other sources or kind of funds) to any other person or entity including foreign entities (intermediaries) with the

understanding (whether recorded in writing or otherwise) 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 Company (ultimate beneficiaries) or (ii)
provide any guarantee, security or the like to or behalf of the ultimate beneficiaries.

46 During the year, 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 any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or (ii)
provide any guarantee, security or the like to or on behalf of the funding party (ultimate beneficiaries) or (iii) provide any
guarantee, security or the like to or on behalf of the ultimate beneficiaries.

48 Exceptional Items

i) Pursuant to the approval of the Shareholders through postal ballot on 19 October 2024, the Company has divested its
investment in its wholly owned subsidiary viz. Bond Street Capital Private Limited (BSCPL) comprising of 995,000
equity shares, to LKP Securities Limited, Sea Glimpse Private Limited and LK Panday (partnership firm), Promoter
Group Entities of the Company, for an aggregate consideration of Rs. 4,012.43 lakhs. Accordingly, the Company has
ceased to be a holding company of BSCPL w.e.f. 26 March 2025. The gain of Rs. 926.44 lakhs on sale of such subsidiary
has been disclosed as an exceptional item.

* All loans and investments considered

(E) There were no unhedged foreign currency transactions for the year ended 31 March 2025 and 31 March 2024.

(F) For Related party disclosures refer note 35

(G) There are no complaints received by the Company from customers and from the offices of ombudsman.

51 Analysis of change in the gross carrying amount and corresponding ECL allowance in relation to Loans

The Table below shows the credit quality and the maximum exposure to credit risk based on the Company’s year end stage
classification. The amounts presented are gross of impairment allowances. Policies on ECL allowances are set out in Note 2 .

Reconciliation of changes in gross carrying amount and corresponding ECL allowances for loans and advances to corporate
and retail customers:

The following disclosures provides stage wise reconciliation of the Company’s gross carrying amount and ECL allowances for
loans and advances to corporate and retail customers. The transfer of financial assets represents the impact of stage transfers
upon the gross carrying amount and associated allowance for ECL. The net remeasurement of ECL arising from stage transfers
represents the increase or decrease due to these transfers.

The new assets originated/ repayments received (net) represents the gross carrying amount and associated allowance ECL
impact from transactions within the Company’s lending portfolio.

55 Events after reporting date

There have been no events after the reporting date that require adjustment/ disclosures in these financials statements.

56 Previous year’s figures have been regrouped / rearranged wherever necessary to correspond with the current year’s
regrouping / disclosures. Figures in brackets pertain to previous year.

In terms of our Report of even date attached

For and on behalf of the Board
LKP Finance Limited

For MGB & Co. LLP

Chartered Accountants Umesh Aggarwal Kapil Garg

Firm Registration Number: 101169W/W-100035 Whole Time director Director

DIN : 03109928 DIN : 01716987

Hitendra Bhandari

Partner Ruby Chauhan Mustak Ali

Membership Number: 107832 Company Secretary & Compliance officer Chief Financial Officer

A 69210

Place : Mumbai
Date : 22 May 2025