(i) Provisions and other contingent liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) 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 a reliable estimate can be made of the amount of the obligation.

If the effect of the 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.

A present obligation that arises from past events, where it is either not probable that an outflow of resources will
be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability.
Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company. Claims against the Company, where the possibility of any outflow of
resources in settlement is remote, are not disclosed as contingent liabilities.

Contingent assets are not recognized in the financial statements since this may result in the recognition of income
that may never be realized. However, when the realization of income is virtually certain, then the related asset is
not a contingent asset and is recognized.

(j) Taxes

(i) Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to
the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity. 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.

(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred
tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally
recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be utilised.

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.

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 consequences 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 and liabilities are offset where there is a legally enforceable right to offset current tax assets
and liabilities and they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets
and liabilities are realised simultaneously.

(iii) Current and deferred tax for the year:

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised
in other comprehensive income or directly in equity, in which case, the current and deferred tax are also
recognised in other comprehensive income or directly in equity respectively.

(k) Cash and cash equivalents

Cash and cash equivalents comprise the net amount of short-term, highly liquid investments that are readily
convertible to known amounts of cash (short-term deposits with an original maturity of three months or less) and
are subject to an insignificant risk of change in value, cheques on hand and balances with banks. They are held for
the purposes of meeting short-term cash commitments (rather than for investment or other purposes).

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short- term deposits,
as defined above.

(l) Borrowing Cost

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are treated
as direct cost and are considered as part of cost of such assets. A qualifying asset is an asset that necessarily requires
a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognized as
an expense in the period in which they are incurred. The capitalization of borrowing cost is suspended when the
activities necessary to prepare the qualifying asset are deferred / interrupted for significant period of time.

(m) Employee benefits

Employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is
provided. A liability is recognized for the amount expected to be paid e.g., under short-term cash bonus, 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 amount of obligation can be estimated reliably.

(n) Recent pronouncements

The Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, the MCA
amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, from April 1, 2023, as listed
below:

i. IND AS 101 - First time adoption of Indian Accounting Standards

The amendment relates to recognition of deferred tax assets and liabilities arising from single transactions,
deferred tax assets related to leases and decommissioning, restoration and similar liabilities for the transition

date falling after 1 April 2022. The amendment has no impact on the Company as IND AS has already been
implemented.

ii. IND AS 102 - Share Based Payment

The amendment relates to the footnote to Paragraph 24 which is darificatory in nature.

iii. IND AS 103 - Business Combination

The amendment relates to disclosure to Paragraph 13(2) which is darificatory in nature. The amendment has
no impact on the Company.

iv. IND AS 107 - Financial Instruments - Disclosures

The amendment to this Standard is consequential to the amendment made in Ind AS 1.

v. IND AS 109 - Financial Instruments

The amendment relates to non applicability of Paragraph B4.3.11 to embedded derivative contracts acquired
in business combination. The amendment has no impact on the Company.

vi. IND AS 115 - Revenue from Contracts with Customers

The amendment relates to realignment of Paragraph 51 and Appendix B. The amendment has no impact on the
Company.

vii. IND AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant
accounting policies. Accounting policy information, together with other information, is material when it can
reasonably be expected to influence decisions of primary users of general purpose financial statements. The
Company/Group does not expect this amendment to have any significant impact in its financial statements.

viii. IND AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

Accounting Policies, Changes in Accounting Estimates and Errors The amendments will help entities to
distinguish between accounting policies and accounting estimates. The definition of a change in accounting
estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting
estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities
develop accounting estimates if accounting policies require items in financial statements to be measured in a
way that involves measurement uncertainty. The Company/Group does not expect this amendment to have any
significant impact in its financial statements

ix. IND AS 12 - Income Taxes

Paragraph 15 and 24 relating to recognition of deferred tax liability and asset, has been amended to include
exemption for taxable temporary differences arising (i) at the time of transaction, that affects neither accounting
profit nor taxable profit (tax loss) and (ii) at the time of transaction, that does not give rise to equal taxable and
deductible temporary differences.

Paragraph 22A has been inserted to clarify that deferred tax assets and liabilities on Right of Use Assets and
Lease Liabilities to be recognized on gross basis.

This amendment is effective from 1 April 2022. The effect of above amendment for the period as of 1 April
2022 needs to be taken to OCI. Other amendments to this Standard are consequential to the above amendment.

x. IND AS 34 - Interim Financial Reporting

The amendment to this Standard is consequential to the amendment made in Ind AS 1 and is not applicable to the
Company.

3 Significant accounting judgements, estimates and assumptions

The preparation of financial statements in conformity with the Ind AS requires the management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the
accompanying disclosure and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and future periods are affected. Although these estimates are based on the
management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could
result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts recognized in the financial statements is included in the
following notes:

Critical judgements in applying accounting polices :

(i) Fair value of financial instruments

The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under
current market conditions (i.e., an exit price) regardless of whether that price is directly observable or estimated
using another valuation technique. When the fair values of financial assets and financial liabilities recorded in the
balance sheet cannot be derived from active markets, they are determined using a variety of valuation techniques
that include the use of valuation models. The inputs to these models are taken from observable markets where
possible, but where this is not feasible, estimation is required in establishing fair values. Judgements and estimates
include considerations of liquidity and model inputs related to items such as credit risk (both own and counterparty),
funding value adjustments, correlation and volatility.

(ii) Impairment of Non-Financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any
indication exists, the company estimates the asset’s recoverable amount. An asset’s recoverable amount is higher
of an asset’s fair value less cost of disposal and its value in use. Where the carrying amount exceeds its recoverable
amount, the asset is considered impaired and is written down to its recoverable amount.

(iii) Provision and contingent liabilities

The Company operates in a regulatory and legal environment that, by nature, has a heightened element of litigation
risk inherent to its operations. As a result, it is involved in various litigation, arbitration and regulatory investigations
and proceedings in the ordinary course of its business.

When the Company can reliably measure the outflow of economic benefits in relation to a specific case and
considers such outflows to be probable, the Company records a provision against the case. Where the probability
of outflow is considered to be remote, or probable, but a reliable estimate cannot be made, a contingent liability is
disclosed.

Given the subjectivity and uncertainty of determining the probability and amount of losses, the Company takes
into account a number of factors including legal advice, the stage of the matter and historical evidence from similar
incidents. Significant judgment is required to conclude on these estimates.

(iv) Provisions for Income Taxes

Significant judgements are involved in determining the provision for income taxes including judgement on whether
tax positions are probable of being sustained in tax assessments. A tax assessment can involve complex issues,
which can only be resolved over extended time periods.

Estimates and judgements are continually evaluated. They are based on historical experience and other factors,
including expectation of future events that may have a financial impact on the Company and that are believed to
be reasonable under the circumstances.

4 Capital Management

The Company maintains an actively managed capital base to cover risks inherent in the business which includes issued
equity capital, share premium and all other equity reserves attributable to equity holders of the Company.

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 shareholder value.

The Company manages its capital structure and makes adjustments to it according to changes in economic conditions
and the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Company may adjust
the amount of dividend payment to shareholders, return capital to shareholders or issue capital securities. No changes
have been made to the objectives, policies and processes from the previous years except those incorporated on account
of regulatory amendments. However, they are under constant review by the Board.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is
valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is the case for loan granted and securty deposits given included in level 3.

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered
to be the same as their fair values, due to their short-term nature.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

42 Financial instruments - Fair values and risk management
Credit risk

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 recovery of loan granted. Credit risk
is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of
customers to which the Company grants credit terms in the normal course of business. The Company establishes an
impairment that represents its estimate of incurred losses in respect of loans.

Loans

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the country in which the customer operates, also has an
influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers.

(ii) Definition of default

The Company considers a Financial instrument defaulted and therefore stage 3 (credit-impaired) for ECL
calculations in all cases when the borrower becomes 90 days past due on its contractual payments.

As a part of a qualitative assessment of whether a customer is in default, the Company also considers a variety of
instances that may indicate unlikeliness to pay. When such events occur, the Company carefully considers whether
the event should result in treating the customer as defaulted and therefore assessed as stage 3 for ECL calculations
or whether stage 2 is appropriate. Such events include:

- The borrower requesting emergency funding from the Company.

- A material decrease in the underlying collateral value where the recovery of the loan is expected from the sale
of the collateral.

- A covenant breach not waived by the Company.

- The debtor (or any legal entity within the debtor’s Company) filing for bankruptcy application/protection.

- All the facilities of a borrower are treated as stage 3 when one of his facility becomes 90 days past due i.e.
credit impaired.

- The restructuring of a loan or advance by the Company on terms that the Company would not consider
otherwise.

(iii) Exposure at Default (EAD)

The exposure at default (EAD) represents the gross carrying amount of the financial instruments subject to the
impairment calculation, addressing both the ability to increase its exposure while approaching default and potential
early repayments too.

To calculate the EAD for a Stage 1 loan, the Company assesses the possible default events within 12 months for
the calculation of the 12 months ECL.

For stage 2 and stage 3 financial assets, the exposure at default is considered for events over the lifetime of the
instruments.

In case of undrawn loan commitments, a credit conversion factor of 100% is applied for expected drawdown.

iv) Loss Given Default (LGD)

LGD is an estimate of the loss arising in case where a default occurs. It is based on the difference between the
contractual cash flows due and those that the Company would expect to receive, including from the realisation of
any security.

v) Significant increase in credit risk (SICR)

The Company continuously monitors all assets subject to ECLs in order to determine whether an instrument or a
portfolio of instruments is subject to 12-month ECL or lifetime ECL. The Company assesses whether there has
been an event which could cause a significant increase in the credit risk of the underlying asset or the customers’
ability to pay and accordingly change the 12-month ECL to a lifetime ECL.

In certain cases, the Company may also consider that events explained in note (ii) are a significant increase in credit
risk as opposed to a default. Regardless of the above, if contractual payments are more than 30 days past due, the
credit risk is deemed to have increased significantly since initial recognition.

When estimating ECLs on a collective basis for a Company of similar assets, the Company applies the same
principles for assessing whether there has been a significant increase in credit risk since initial recognition.

The impairment loss at March 31, 2024 related to some customers that have defaulted on their payments to the
Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances.

Financial instruments - Fair values and risk management
Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Company’s reputation.

The Company has not obtained fund and non-fund based working capital lines from any bank.

Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity
prices - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is
attributable to all market risk sensitive financial instruments. The Company is exposed to market risk primarily
related to investment in equity of other companies, which is very negligible amount. Market risk owing to interest
rate changes may affect the company’s operation but since it’s in the business of lending, higher interest cost can
be passed on to the ultimate borrower.

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 values of fixed interest-bearing investments because of fluctuations in the interest
rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest-bearing investments
will fluctuate because of fluctuations in the interest rates. Company has not invested in any interest rate bearing
instruments except bank fixed deposits.

46 Figure of previous year have been regrouped/rearranged wherever necessary.

For and on behalf of the Board of Directors
Indergiri Finance Limitied

For Sampat & Mehta Mohit Agarwal Shanker Wunnava

Chartered Accountants Director Director

Firm Registration no. 109031W (DIN: 08774184) (DIN: 08561822)

Sanjay Rambhia Ramjeet Yadav

Partner Company Secretary

Membership Number: 046265 (M. No. A50581)

Place : Mumbai Place : Mumbai

Date : 24^th May, 2024 Date : 24^th May, 2024