2.12 Provision, Contingent Liabilities and Contingent Assets:

A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to
settle the obligation, in respect of which reliable estimate can be made.

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. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent Assets and Contingent Liabilities are not recognized in the Ind AS financial statements.

14.2 Terms and 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 vote per share. The company declares and
pays dividend if any, in Indian Rupees. The dividend proposed by the Board of Directors is subject to 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 the preferential amount.
The distribution will be in proportion to the number of equity shares held by the shareholder.

Risk management framework

The Company’s activities expose it to a variety of financial risks, including market risk . The Company’s primary risk management focus is to minimize potential adverse effects of risks on its
financial performance. The Company’s risk management assessment policies and processes are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management of these policies and processes are reviewed regularly to reflect
changes in market conditions and the Company’s activities. The Board of Directors and the Audit Committee are responsible for overseeing these policies and processes.

(i) Market risk

Market risk is the risk of changes in the market prices on account of foreign exchange rates, interest rates and Commodity prices, which shall affect the Company's income or the value of its
holdings of its financial instruments . The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimising the returns.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to market risk
for changes in interest rates relates to borrowings from banks and others.

For details of the Company’s short-term and long term loans and borrowings refer Note No. 9
Interest rate sensitivity - variable rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased /(decreased) equity and profit or loss by amounts shown below. This analysis
assumes that all other variables, in particular, foreign currency exchange rates, remain constant. This calculation also assumes that the change occurs at the balance sheet date and has
been calculated based on risk exposures outstanding as at that date.

(ii) 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
receivables from customer. The Company establishes an allowance for doubtful debts, impairement and expected credit loss that represents it estimate an allowance for doubtful debts,
impairment and expected credit loss that represents its estimate on epected credit loss model.

(a) Cash and cash equivalents

The Company holds cash and cash equivalents with credit worthy banks of Rs. 993.82 thousands .The credit worthiness of such banks is evaluated by the management on an on-going basis and is
considered to be good.

(b) Investment

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counter-parties that have a good credit rating. The Company does not expect any losses
from non-performance by these counter-parties apart from those already given in financials, and does not have any significant concentration of exposures to specific industry sectors or specific
country risks.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due . The Company has been taking measures to ensure that the Company’s cash flow
from business borrowing is sufficient to meet the cash requirements for the Company’s operations. The Company managing its liquidity needs by monitoring forecasted cash inflows and out flows
in day today business. Liquidity needs are monitored on various time bands, on a day today and week to week basis, as well as on the basis of a rolling 30 day projections. Net cash requirements
are compared to available working capital facilities in order to determine head room or any shortfalls. Presently company’s objective is to maintain sufficient cash to meet its operational
liquidity requirements.

27 The company has only one class of segment i.e. Financial activities ,Hence no reporting required under Ind AS 108 For segment reporting

28 The Ind AS financial statementswere approved for issue by the Board of Directors on _24th_day of May, 2024.

29 The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

30 There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

31 Previous year’s figures have been re- arranged or re- grouped wherever considered necessary

32 Figures have been rounded off to the nearest thousands of rupees.

33 Figures in brackets indicate negative (-) figures.

Signed for the purpose of Identification

FOR V.N. PUROHIT & CO. For and on behalf of Board of Directors of

Chartered Accountants RITA FINANCE AND LEASING LIMITED

Firm reg. No.: 304040E

O.P. Pareek Pawan Kumar Kiran Mittal

Partner Director Director

Membership No. 014238 DIN: - 00749265 DIN: - 00749457

UDIN : 24120022BKAVAN8952