Nature and Purposes of Reserves:

i. Statutory Reserve: Statutory Reserve represents the Reserve Fund created under Section 4S-IC of the Reserve Bank

II. Amalgamation Reserve: Amalgamation Reserve represent surplus arising on Amalgamation which was General Reserve

iii. General Reserve: General reserve is a free reserve, retained from Company's profits and can be utilized upon fulfilling certain conditions in accordance with specific requirement of Companies Act, 2013.

iv. Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

V. Equity Instruments through Other Comprehensive Income: This represents the cumulative gains and losses arising on the revaluation of equity Instruments measured at fair value through other comprehensive Income, under an Irrevocable option.

vi. Impairment Reserve: Where impairment allowance under Ind AS 109 is lower than the provisioning required under IRACP {including standard asset

provisioning), NBFCs are required to appropriate the difference from their net profit or loss after tax to a separate 'Impairment Reserve'. The balance in the 'Impairment Reserve' is not reckoned for regulatory capital. Further, no withdrawals are permitted from this reserve without prior permission from the Department of Supervision, RBI.

(25) FINANCIAL INSTRUMENTS

ACCOUNTING CLASSIFICATIONS AND FAIR VALUES

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation The categories used are as follows:

• Level 1: Quoted prices for identical instruments in an active market;

« Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and

• Level 3: Inputs which are not based on observable market data.

(26) FINANCIAL RISK MANAGEMENT

The Company's activities expose it to market risk, interest risk, liquidity risk and credit risk. The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources of risk which the Company is exposed to and how the Company manages the risk and the related impact in the financial statements.

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 ail market risk sensitive financial instruments including foreign currency receivables and payables and long-term debt. The Company is exposed to market risk primarily related to interest rate risk and the market value of certain commodities. Thus, Company's exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities. The objective of market risk management is to avoid excessive exposure to these risks in Company's revenues and costs.

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.

Equity Price Risk

The Company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade in these investments.

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 loan given to corporate parties.

The Company has adopted a policy of only dealing with counterparties that have sufficient credit rating. The Company's exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties.

Liquidity Risk;

Liquidity Risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company's management and finance department is responsible for liquidity, funding as well as settlement management. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market In which it operates.

Regulatory Risk: ,

The Company is exposed to risk attached to various statutes, laws and regulations including the Competition Act The Company is mitigating these risks through regular review of legal compliances carried out through internal scrutiny as well as external compliance audits.

Capital Risk Management:

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company's capital management policy is to ensure that all times, it remains going concern and safeguard interest of its shareholders and stakeholders.

The Company does not have any outstanding dilutive potential equity shares.

Note:

During the year ended March 2025, pursuant to approval given by the shareholders in the Extraordinary General Meeting held on 9 January 2025, the Company has issued 3,72,90,200 fully paid up bonus equity shares of Rs. 10 each in the ratio of four equity shares of Rs. 10 each for every one existing equity share of Rs. 10 each. Earning per share of comparative year have been duly adjusted for the same.

(34) The Company, as part of its normal business, grants loans and advances, makes investment, provides guarantees to and accept deposits and borrowings fro other entities and persons. These transactions are part of Company's normal non-banking finance business, which is conducted ensuring adherence to all regulatory requirements.

a) Other than the transection prescribed above no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

b) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(35) there are no instances of transactions not recorded in the books of account of the Company, which have been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

(36) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

(37) The Company has not undertaken any transactions with companies struck off under section 248 of Companies Act, 2013 or section 560 of the Companies Act, 1956.

(38) The Company has not been declared as a wilful defaulter by any bank cr financial institution or other lender

(39) There is no charge form filed beyond the statutory period for registration of charges or satisfaction with Registrar of Companies by the Company

(40) Foreign Currency Transaction

_No Foreign currency transaction during the relevant financial year.

(42) Previous year figures

Previous Year’s figures have been regrouped/reclassified, wherever necessary, to correspond with the current year’s ciassification/disclosures.