k. IND AS - 37 Provisions Contingent liabilities and contingent assets: -

The Company creates a provision when there is present obligation as a result of
a past event that probably requires an outflow of resources and a reliable
estimate can be made of the amount of the obligation.

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. The Company also discloses present obligations for which a reliable
estimate cannot be made. When there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources is remote,
no provision or disclosure is made.

l. IND AS - 108 Operating Segments

The Company is engaged in the business segment of Financing, whose operating
results are regularly reviewed by the entity’s chief operating decision maker to
make decisions about resources to be allocated and to assess its performance,
and for which discrete financial information is available. Further other business
segments do not exceed the quantitative thresholds as defined by the Ind AS 108
on "Operating Segment". Hence, there are no separate reportable segments, as
required by the Ind AS 108 on "Operating Segment".

m. Cash and Cash Equivalents

Cash and cash equivalents comprise of cash at banks and on hand and short¬
term deposits with an original maturity of three months or less, which are
subject to an insignificant risk of changes in value. For the purpose of the
statement of cash flows, cash and cash equivalents consist of cash and short¬
term deposits, as defined above, net of outstanding bank overdrafts if any, as they
are considered an integral part of the Company's cash management.

n. Employee Benefits

The Company operates the following post-employment schemes:

A. Defined benefit plans Gratuity; and

B. Defined contribution Plan - Provident Fund

Defined benefit plans - Gratuity Obligations

The liability or asset recognized in the balance sheet in respect of defined benefit
gratuity plans is the present value of the defined benefit obligation at the end of
the reporting period less the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries using the projected unit credit
method. The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows by reference to market yields at
the end of the reporting period on government bonds that have terms
approximating to the terms of the related obligation. The net interest cost is
calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee
benefit expense in the statement of profit and loss. Re-measurement gains and
losses arising from experience adjustments and changes in actuarial
assumptions are recognized in the period in which they occur, directly in other
comprehensive income. They are included in retained earnings in the statement
of changes in equity and in the balance sheet. Changes in the present value of the
defined benefit obligation resulting from plan amendments or curtailments are
recognized immediately in profit or loss as past service cost.

Defined Contribution Plans

Eligible employees of company receive benefits from a provident fund, which is a
defined benefit plan. Both the eligible employee and the Company make monthly
contributions to the provident fund plan equal to a specified percentage of the
covered employee's salary. The Company contributes a portion to Recognized
provident Fund set up by Employees Provident Fund Organization of India which
is deposited to government account within due date as set under Employees'
Provident Funds & Miscellaneous Provisions Act, 1952.The rate at which the
annual interest is payable to the beneficiaries by the trust is being administered
by the government.

o. 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 if the revision affects only that period or in
the period of the revision and future periods if the revision affects both current
and future periods. 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:

i) Business Model Assessment

Classification and measurement of financial assets depends on the results of
the SPPI and the business model test. The Company determines the business
model at a level that reflects how groups of financial assets are managed
together to achieve a particular business objective. This assessment includes
judgement reflecting all relevant evidence including how the performance of
the assets is evaluated and their performance measured, the risks that affect
the performance of the assets and how these are managed and how the
managers of the assets are compensated. The Company monitors financial
assets measured at amortised cost or fair value through other
comprehensive income that are derecognised prior to their maturity to
understand the reason for their disposal and whether the reasons are
consistent with the objective of the business for which the asset was held.
Monitoring is part of the Company’s continuous assessment of whether the
business model for which the remaining financial assets are held continues
to be appropriate and if it is not appropriate whether there has been a
change in business model and so a prospective change to the classification of
those assets.

ii) Effective Interest Rate (EIR) Method

The Company’s EIR methodology, recognises interest income using a rate of
return that represents the best estimate of a constant rate of return over the
expected behavioural life of loans given and recognises the effect of
potentially different interest rates at various stages and other characteristics
of the product life cycle (including prepayments and penalty interest and
charges).

This estimation, by nature, requires an element of judgement regarding the
expected behaviour and life cycle of the instruments, probable fluctuations in
collateral value as well as expected changes to India’s base rate and other fee
income/expense that are integral parts of the instrument.

iii) Impairment of loans portfolio

The measurement of impairment losses across all categories of financial
assets requires judgement, in particular, the estimation of the amount and
timing of future cash flows and collateral values when determining
impairment losses and the assessment of a significant increase in credit risk.
These estimates are driven by a number of factors, changes in which can
result in different levels of allowances.

It has been the Company’s policy to regularly review its models in the context

of actual loss experience and adjust when necessary.

iv) Defined employee benefit assets and liabilities

The cost of the defined benefit gratuity plan and the present value of the

gratuity obligation are determined using actuarial valuations. An actuarial
valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount
rate, future salary increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.