10. d) Carrying value of Investment Property pledged as collateral for liabilities as at 31st March 2024 is ' Nil (31st March 2023 is ' Nil)

10. e) Some of Investment Properties are leased out to tenants. Agreements provide for cancellation by either party or contain clause for escalation and renewal of agreements. The agreements are cancellable with mutual consent.

10. f) The Company has no contractual obligations to purchase, construct or develop investment property as at 31st March 2024 and 31st March 2023.

Terms/rights attached to RCPS

The RCPS do not have voting rights other than matters which directly affect them. In the event of any due and payable dividends remain unpaid for aggregate period of at least two years prior to the start of any general meeting of the equity shareholders, RCPS holders shall have voting rights in line with their voting rights of the equity shareholders. The RCPS will be redeemed at the end of three years from the date of allotment and the payment of dividend would be in accordance with the terms agreed at the time of issuance of RCPS.

On winding up or repayment of capital, RCPS holders enjoy preferential rights vis a vis equity shareholders, for repayment of paid-up capital and shall include any unpaid dividends.

For the year ended 31st March 2024, the Company declared and paid an interim dividend of ' 135.12 lakhs after deduction of tax deducted at source of ' 5.89 lakhs on RCPS of ' 100 each fully paid (31st March 2023 : ' 123.75 lakhs)

c) Rights, Preferences and Restrictions attached to equity shares

The Company has only one class of equity shares having a par value of ' 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend is subject to the approval of the Members at the ensuing annual general meeting. The Board of Directors have, at their meeting held on 25th May 2024 ,recommended a dividend of 8 per cent, ' 0.80 per share (31st March 2023 : ' 0.70 per share) on equity shares. The Company declares and pays dividend in Indian rupees.

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 members.

The proposed dividend for the Financial Year 2023-24 adheres to the ceiling limits on dividend payout ratios for NBFCs, as prescribed by the Reserve Bank of India in Notification RBI/2021-22/59 DOR.ACC.REC.No.23/21.02.067/2021-22 dated 24th June 2021.

Note : The dividends proposed by the Board of Directors for the financial year 31st March 2024 shall be paid to share holders subject to the approval of the members of the company at the ensuing Annual General Meeting.

d) For the years ended 31st March 2024 and 31st March 2023

i) There are no equity shares of the Company held by a holding Company or ultimate holding Company or by subsidiaries or associates of the holding Company or the ultimate holding Company.

ii) There are no shares reserved for issue under options and contracts / commitments for the sale of shares or divestment.

iii) There are no securities issued convertible into equity shares.

iv) There are no calls unpaid and further there are no forfeited shares to report.

e) For the period of five years immediately preceeding 31st March 2024 and 31st March 2023.

i) There are no equity shares allotted as fully paid up pursuant to contract without payment being received in cash.

ii) There are no equity shares allotted as fully paid up by way of bonus shares.

iii) There are no equity shares bought back.

Description of Nature and purpose of each reserves

Capital reserve: Capital reserve is the excess amount received on re-issue of forfeited equity shares in an earlier year. Securities Premium : The amount received in excess of face value of the equity shares is recognised as Securities premium. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act 2013.

General reserve : Under the Companies Act, 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the Companies Act 2013 ("the Act") the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of the Act.

Debenture redemption reserve:

Consequent to the amendment to the Companies (Share Capital and Debentures) Rules 2014,as amended the requirement to create Debenture Redemption Reserve ("DRR") is no longer required for listed NBFCs registered with Reserve Bank of India under Section 45-IA of the RBI Act 1934, for the value of outstanding both public issue of debentures and privately placed debentures.

The Company is required to deposit or invest before 30th day of April of each year, as the case may be, a sum which shall not be less than 15% of the amount of its debenture issued through public issue maturing within one year from the Balance sheet date. Accordingly, the Company before the year end / subsequent to the year end has invested a sum of ' 2,420 lakhs (Previous Year ' 1,748 lakhs) in the form of fixed deposits with scheduled banks, representing 15% of the debenture issued through public issue, which are due for redemption within one year from the balance sheet date.

Statutory reserve: Every year, the Company transfers a sum of not less than twenty per cent of net profit after tax of that year as disclosed in the statement of profit and loss to it's Statutory Reserve as per Section 45-IC of the Reserve Bank of India Act 1934.

The conditions and restrictions for distribution attached to statutory reserves as specified in Section 45-IC(1) of the Reserve Bank of India Act, 1934:

(1) Every non-banking financial company ("NBFC") shall create a reserve fund and transfer therein a sum not less than twenty per cent of its net profit every year as disclosed in the statement of Profit and Loss account and before any dividend is declared.

(2) No appropriation of any sum from the reserve fund shall be made by the NBFC except for the purpose as may be specified by the RBI from time to time and every such appropriation shall be reported to the RBI within twenty-one days from the date of such withdrawal:

Provided that the RBI may, in any particular case and for sufficient cause being shown, extend the period of twenty one days by such further period as it thinks fit or condone any delay in making such report.

(3) Notwithstanding anything contained in sub-section (1), the Central Government may, on the recommendation of the RBI and having regard to the adequacy of the paid-up capital and reserves of an NBFC in relation to its deposit liabilities, declare by order in writing that the provisions of sub-section (1) shall not be applicable to the NBFC for such period as may be specified in the order:

Provided that no such order shall be made unless the amount in the reserve fund under sub-section (1) together with the amount in the share premium account is not less than the paid-up capital of the NBFC Retained earnings: Retained earnings are the profits that the Company has earned till date less any transfers to statutory reserve, general reserve, dividends distributions paid to members and transfer from debenture redemption reserve.

Other Comprehensive income: Other Comprehensive Income comprises items of income and expenses that are not recognised in statement of profit and loss as required or permitted by other Ind AS. They comprise the following : (a) Cumulative gains/(losses) on account of remeasurement of post employment benefit obligations (b) Cumulative gains/ (losses) on remeasurement of equity instruments measured at fair value through Other Comprehensive Income. Such remeasurements are not reclassified to the statement of profit and loss in subsequent periods.

Proposed dividend : The Board of Directors of the Company have at their meeting held on 25th May 2024 recommended a dividend of 8% being ' 0.80 per share on the equity shares of the Company, for the year ended 31st March 2024 (' 0.70 per share - 31st March 2023) which is subject to the approval of members. Consequently, the proposed dividend amount has not been recognised as a liability in the books in accordance with Ind AS 10. (Also Refer Note 57)

The Company has disputed Income Tax Demand pertaining to the Assessment year 2012-13 for an amount of ' 9.83 Lakhs (31st March 2023 : ' 9.83 Lakhs) in relation to disallowance under Section 14A of the Income Tax Act. The matter is pending with Assessing Officer.

The Company has disputed Income Tax Demand pertaining to the Assessment year 2016-17 for an amount of ' 217.16 Lakhs (31st March 2023 : ' 217.16 Lakhs) in relation to certain disallowances under Income Tax Act. The matter is pending before Commissioner of Income Tax (Appeals). During the Financial year 2022-23 the Company has remitted an amount of ' 42.24 Lakhs under protest against the demand.

The Company has disputed Service Tax demands in respect of Service Tax liability on finance income for the period from 1st October 2014 to 30th June 2017. The total demand along with penalty but excluding non-determined interest amounts to ' 2,082.34 Lakhs (31st March 2023 : ' 2,082.34 Lakhs). The Company has been legally advised that such demands are not sustainable. The Company has filed an appeal before Central Excise and Service Tax Appellate Tribunal ("CESTAT"), Chennai and the matter is pending before CESTAT. The Company has pre-deposited an amount of ' 143.30 Lakhs (31st March 2023 : ' 143.30 Lakhs) under protest.

Future cash outflows in respect of above from (i) to (iii) are determinable only on receipt of judgements/decisions/ negotiations pending with various forums/authorities/parties. I t is not practicable for the Company to estimate the timings of the Cash Flows if any, Company does not expect any reimbursement in respect of the above contingent liabilities. The Company is of the opinions that above demands/claims are not sustainable and expects to succeed in appeals (wherever applicable). Hence no provision on account of same is made in the financial statements.

(ii) In respect of termination of contracts, wherever there is uncertainty in the performance obligations arising out of such contracts, the Company has not quantified or accounted any income for the reason that there is no certainty of economic benefits flowing to the Company.

36. Additional Regulatory Disclosures (for the year ended 31st March 2024 and 31st March 2023)

a. There are no Title deeds of Immovable Properties that were not held in name of the Company.

b. The Company measures investment property using cost based measurement.

c. There were loans and advances in the nature of loans, which are granted to promoters, directors, KMPs and other related parties (as defined under the Companies Act, 2013), either severally or jointly with any other persons that are repayable on demand or without specifying the terms or period of repayment.

d. There were no proceedings that have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.

e. In respect of borrowings from banks or financial institutions on the basis of security of current assets, the Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of account.

f. The Company has not been declared as a wilful defaulter by any bank or financial Institution or other lender.

g. The Company did not have any transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956 except the following :

During the Financial years ended March 31, 2024 and March 31, 2023, the Company did not have any transaction with above equity shareholders, being the companies whose names have been struck off under section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956. The shareholding data is as per the record of beneficiary position downloaded by the Registrar and Transfer Agent of the Company from the database maintained by the depositories and reported to the Company for the purpose of this disclosure.

h. The Company did not have any charges or satisfaction of charges under the Companies Act, 2013, which are yet to be registered with ROC beyond the statutory period.

i. The Company as a part of its normal business grants loans and advances, make investment, provides guarantees to its customer, other entitles and persons. These transactions are part of the Companies normal NBFC business, which is conducted ensuring adherence to all regualtory requirements. Other than the transactions described above. 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(s) or entity(ies), 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 the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

j. The Company as a part of its normal business accepts deposits and borrowings from its customer, other entitles and persons. These transactions are part of the Companies normal NBFC business, which is conducted ensuring adherence to all regulatory requirements. Other than the transactions described above. 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 other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

k. The Company has not entered into any Scheme of Arrangements that has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013. Therefore disclosures pertaining to it are not applicable.

l. The Company has no layers as per the provisions of clause (87) of Section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31, 2024 and March 31, 2023.

m. There are no transactions that are previously not recorded in the books of account which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

37. NOTE ON EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY

The following is the information regarding projects/programmes undertaken and expenses incurred on CSR activities during

the year ended 31st March 2024:

Components of Numerator

"Tier I Capital" means owned fund as reduced by investment in shares of other non-banking financial companies and in shares, debentures, bonds, outstanding loans and advances including hire purchase and lease finance made to and deposits with subsidiaries and companies in the same group exceeding, in aggregate, ten per cent of the owned fund.

"Owned fund" means paid up equity capital, preference shares which are compulsorily convertible into equity, free reserves, balance in share premium account and capital reserves representing surplus arising out of sale proceeds of asset, excluding reserves created by revaluation of asset, as reduced by accumulated loss balance, book value of intangible assets and deferred revenue expenditure, if any.

"Tier ii Capital" includes the following -

a. preference shares other than those which are compulsorily convertible into equity;

b. revaluation reserves at discounted rate of fifty five percent;

c. General provisions (including that for Standard Assets) and loss reserves to the extent these are not attributable to actual diminution in value or identifiable potential loss in any specific asset and are available to meet unexpected losses, to the extent of one and one fourth percent of risk weighted assets

d. hybrid debt capital instruments; and

e. Sub-Ordinated debt to the extent the aggregate does not exceed Tier I capital.

f. perpetual debt instruments issued by a non-deposit taking non-banking financial company which is in excess of what qualifies for Tier I Capital, to the extent the aggregate does not exceed Tier I capital.

components of Denominator Aggregate Risk Weighted Assets:

Under RBI Guidelines, degrees of credit risk expressed as percentage weightages have been assigned to each of the on-balance sheet assets and off-balance sheet assets. Hence, the value of each of the on-balance sheet assets and off-balance sheet assets requires to be multiplied by the relevant risk weights to arrive at risk adjusted value of assets. The aggregate shall be taken into account for reckoning the minimum capital ratio.

e. There is no tax expense charged directly to other equity.

f. Tax u/s 115 BAA of income Tax Act 1961

Pursuant to the Taxation Laws (Amendment) Ordinance 2019, Finance (No. 2) Act, 2019, the Company has exercised the option permitted Under Section 115BAA of the Income Tax Act 1961 to compute Income Tax at an effective rate (ie., 25.17 %) from the financial year 2019 -20.

42. DiSCLOSURE REOUiREMENTS UNDER iND AS 19 ("Employee Benefits")

a. Defined benefit obligation - Gratuity

The Gratuity scheme is a defined benefit plan, that provides for a lumpsum payment upon death while in employment or at the time of separation. Based on rules of the scheme, the benefits are calculated on basis of last drawn salary and the period of service rendered and paid as lumpsum. There is a vesting period of 5 years. The plan invloves the following risks that affect the liabilities and cash flows.

1. Interest rates risk:

The defined benefit obligation calculated using a discount rate based on government bonds. If bond yield falls, the defined benefit obligation will tend to increase.

2. Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

3. Demographic risks:

This is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effects of this decrement on the DBO depend upon the combination of salary increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short service employees will be less compared to long service employees.

4. Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption then the Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption then the Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date

5. Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

1. The Company expects to contribute ' 30.39 Lakhs to the fund in the next financial year.

2. The weighted average duration of the defined benefit obligation as at 31st March 2024 is 5.49 years (31st March 2023: 5.46 years).

3. The estimate of future salary increase takes into account inflation, promotions, productivity gains and other relevant factors.

4. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated term of the obligation.

5. The entire Plan Assets are invested in insurer managed funds with Life Insurance Corporation of India (LIC).

6. The above sensitivity analysis are based on change in an assumption which is holding all the other assumptions constant.

In practice, this is unlikely to occur, and changes in some assumptions may be correlated. When calculating the sensitivity of defined benefit obligation to significant actuarial assumptions the same method of present value of defined benefit obligations calculated with Projected unit credit method at the end of the reporting period has been applied while calculating defined benefit liability recognised in the balance sheet.

7. The method and type of assumptions used in preparing the sensitivity analysis does not change as compared to the prior period.

b. Other Long Term Benefits - Leave Encashment

The leave encashment is long term benefit plan, that provides for a lumpsum payment upon death of employee or at the time of separation. Based on scheme rules the benefits are calculated on the basis of last drawn salary and the leave count and paid as lumpsum.

The benefit involves the following risks that affect the liabilities and cash ffows.

1. Interest rates risk :

The defined benefit obligation calculated using a discount rate based on government bonds. If bond yield falls, the defined benefit obligation will tend to increase.

2. Salary inffation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

3. Demographic risks:

This is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effects of this decrement on the DBO depend upon the combination of salary increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short service employees will be less compared to long service employees.

1. The Company has not funded its Compensated Absences Liability and the same continues to remain as unfunded as at 31st March 2024 and 31st March 2023.

2. The estimate of future salary increase takes into account inflation, promotions, productivity gains and other relevant factors.

3. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated term of the obligation.

c. Defined Contribution Plan

A defined Contribution plan is a plan under which the Company pays fixed contributions and where there is no legal

or constructive obligation to pay further contributions.

Contribution by the Company to Statement of Profit and Loss on account of Defined Contribution Plans are as follows:

a) Provident Fund contribution (See Note 29) 106.05 101.32

b) Employees State Insurance Scheme (included in staff welfare expenses in Note 29) 6.92 9.49

Terms and conditions of transaction with related parties:

1. All transactions are in the ordinary course of business on terms equivalent to those that prevail in an arm's length transaction.

2. The Company has not granted loans or advances that is repayable on demand or without specifying any terms or period of repayment to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person, for the financial years ended 31st March 2024 and 31st March 2023.

3. There have been no guarantees provided or received to/from any related party on trade receivables or trade payables

4. For the year ended 31st March, 2024, and 31st March 2023 the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party.

5. During the year ended 31st March 2024, and 31st March 2023 the Company has not written off any receivables due from related parties.

6. There were no termination benefits and share based payment to any Key Management Personnel (KMP) during the year ended 31st March 2024 and 31st March 2023.

7. Outstanding balances as at the year ended are unsecured and settlement takes place in cash / transfer of assets.

8. For the year 31st March 2024 and 31st March 2023, there are no amounts incurred for provision of Key Management Personnel services that are provided by a separate entity.

9. The provisions relating to Post Employment Benefits (Gratuity) and Other Long Term Benefits (Leave encashment) are determined based on actuarial valuation for the Company as a whole. Accordingly such benefits provided to individual Key Management Personnel is not disclosed above.

44. Disclosure pursuant to ind AS ”33" - Earnings Per Share (Refer Note 3(u))

Basic EPS is calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS is calculated by dividing the net profit for the year attributable to equity holders of Company (after adjusting for interest on the convertible preference shares and interest on the convertible bond, in each case, net of tax) by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

45. FiNANCiAL risk MANAGEMENT FRAMEWORK

The company is engaged in finance business and like any other NBFC is exposed to risks such as credit risk, liquidity risk, market risk, operational risks etc. The company follows pro-active risk management practices to mitigate these risks. The risk management policies are periodically reviewed by the Risk Management Committee and Audit Committee.

Credit Risk

Credit risk is the risk that arises when the borrowers of the company are unable to meet the financial obligations.

The Company has a comprehensive and well-defined Credit policy, which encompasses a credit approval process for all businesses along with guidelines for mitigating the risks associated with them. The appraisal process includes a detailed risk assessment of the borrowers, physical verifications and field visits. The company has a robust post sanction monitoring process supervision and follow-up to identify portfolio trends and early warning signals. This enables the company to implement necessary changes to the credit policy, whenever the need arises. Also being in asset finance, the company's lending is secured by adequate collaterals from the borrowers. Repayment by individual customers and portfolio is tracked regularly and required steps for recovery are taken through follow ups and legal recourse.

In assessing the impairment of financial loans under Expected Credit Loss (ECL) Model, the assets have been segmented into three stages. The three stages reflect the general pattern of credit deterioration of a financial instrument. The difference in accounting between stages, relate to the recognition of expected credit losses and the measurement of interest income Expected Credit Loss ("ECL")

As a result of adoption of IndAs , the company has followed Ind As 109 for the calculation of expected credit loss. The measurement of ECL involves three main components Viz.

Exposure at default (EAD), Probability of Default (PD) and Loss Given Default (LGD) and weightages have been decided based on industry best practices and judgement. ECL is measured based on various stages of assets and by applying PD and LGD to arrive at impairment loss.

Exposure at Default ("EAD")

Exposure at Default (EAD) is defined as the sum of Principal outstanding and interest accrued at the reporting date. Probability of Default ("PD")

The Probability of Default is an estimate of the likelihood of an account getting into default over a given time horizon. The PD model reflects the probability of default, taking into consideration the residual tenor of each contract and it relies not only on historical information and the current economic environment, but also considers forward-looking information such as the forecasts on the macroeconomic factors like GDP , Inflation rate etc.

Loss Given Default ("LGD")

The Loss Given Default is an estimate of the loss arising in the case where a default occurs at a given time. 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 collateral. It is usually expressed as a percentage of the EAD.

Definition of Default

If the borrower is past due for more than 90 days on any material credit obligation to the Company; or the borrower is unlikely to pay his credit obligations to the Company in full, it is considered as default.

The Company categorises loan assets into stages primarily based on the Days of Past Due Status.

Stage 1 : 0-30 days past due Stage 2 : 31-90 days past due Stage 3 : More than 90 days past due Write-offs (Refer Note 3(c))

Financial assets are written off either partially or in their entirety only when the Company has no reasonable expectation of recovery. If the amount to be written off is greater than the accumulated loss allowance, the difference recorded as an expense in the period of write off. Any subsequent recoveries against such loans are credited to the statement of profit and loss.

Liquidity risk is the risk related to cash flows and the inability to meet the company's liabilities as and when they become due. It arises from the mismatches in the maturity pattern to cope with a decline in liabilities or increase in assets.

The Company monitors these risks through appropriate risk limits. Asset Liability Management Committee ("ALCO") reviews these risks and related trends and helps adopt various strategies related to assets and liabilities, in line with company's risk management framework.

Market Risk is the risk arising in financial instruments due to changes in market variables such as interest rates, liquidity etc. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while maximising the return.

Interest Rate Risk

Interest Rate Risk is the possibility of loss arising from changes in the value of financial instruments as result of changes in market variables such as interest rates and other asset prices. The company's exposure to market risk is a function of asset liability management activities. Except the borrowings from banks, the interest rates of which are linked to MCLR, other borrowings are fixed rate instruments. The Company has not availed any foreign currency borrowings. The major portion of lending is at fixed rates.

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people or systems or from external events.

The operational risks of the company are managed through comprehensive internal control systems and procedures and key back up processes.

Further submission of exceptional reports for procedural lapses at the branches level, risk-based audits on a regular basis across all business units/functions and IT disaster recovery plans are put in place for evaluating key operational risks the processes of which are meant to adequately mitigate them on an on-going basis.

46. Disclosures Pursuant To ind AS ”108" - Operating Segments

a. The Company is primarily engaged in the business of asset financing. All other activities are not significant and incidental to the main business. This, in the context of Ind AS 108 on "Operating Segments" notified by the Companies (Indian Accounting Standards) Rules 2016, is considered to constitute a single primary segment and there are no other seperate reportable segments identified.

i) Information about geographical areas

The Company operates within India. Therefore, it neither generates any revenue from outside India nor has any non current assets located outside India for the financial years ended 31st March 2024 and 31st March 2023.

ii) Information about major customers

No single external customer contributes 10% or more to the revenues of the Company for the financial years ended 31st March 2024 and 31st March 2023.

b. Disclosures pursuant to Ind As"23" - Borrowing Costs

There were no borrowing costs capitalized during the years ended 31st March 2024 and 31st March 2023 and hence disclosure of capitalization rate used to determine the amount of borrowing costs eligible for capitalization is not applicable.

c. The Company has no discontinuing operations during the financial years ended 31st March 2024 and 31st March 2023

c. Financial assets and Financial Liabilities measured at Fair Value through Profit or Loss as at 31st March 2024 and as at 31st March 2023

The Company did not measure any of its Financial Assets and Financial Liabilities at Fair Value through Profit or Loss.

Note:

The Management assessed that cash and cash equivalents, bank balances other than cash and cash equivalents, receivables, other financial assets, payables, and other financial liabilities approximates their carrying amount largely due to short term maturities of these instruments.

There were no transfers between level 1 and level 2 for any asset or liabilities during the year.

48. Disclosure pursuant to ind AS ”116" Leases

in cases of leases where the Company is a lessee (Operating Lease)

The Company's lease asset class primarily consist of land and buildings taken on lease for Corporate office and Branch office premises used for operating activities. Certain agreements provide for cancellation by either party or certain agreements contain clause for escalation or renewal of agreements. There were no non-cancellable operating lease agreements as at 31st March 2024 and 31st March 2023. There are no restrictions imposed by lease arrangements. (' Lakhs)

The Company does not face a significant liquidity risk with regard to its lease liabilities as the assets are sufficient to meet the obligations related to lease liabilities as and when they fall due. in cases of leases where the Company is a lessor (Operating Lease)

The Company has given buildings on operating lease for commercial purposes and recognises the income as per the contractual terms of lease. Income from operating lease in the statement of profit and loss is ' 18.37 lakhs (31st March 2023'20.51 lakhs). Agreements provide for cancellation by either party or contain clause for escalation and renewal of agreements. There were no non-cancellable operating lease agreements as at 31st March 2024 and 31st March 2023.

monitoring and review of various aspects and types of risks, including liquidity risk, faced by the Company. The meetings of RMC are presently held as may be necessary, Moreover, the Board of Directors have also constituted an Asset Liability Management Committee ("ALM"), for the management of the Company's short and long-term funding and meeting liquidity requirements. The Company manages liquidity risk by maintaining adequate reserves and surplus, accessing undrawn bank facilities and obtaining funding from various other sources, as may be feasible. ALM provides guidance and direction in terms of interest rate, liquidity, funding sources etc. ALM meetings are held as may be required, The minutes of ALM meetings are placed before the Board of Directors at their next meeting for their perusal / approval / ratification.

Definition of terms as used in the table above:

a) Significant counter party:

A "Significant counterparty" is defined as a single counterparty or group of connected or affiliated counterparties accounting in aggregate for more than 1% of the NBFC's total liabilities.

b) Significant instrument/product:

A "Significant instrument/product" is defined as a single instrument/product of group of similar instruments/products which in aggregate amount to more than 1% of the NBFC's total liabilities.

c) Total liabilities:

Total liabilities include all external liabilities (other than equity).

d) Public funds:

"Public funds" includes funds raised either directly or indirectly through public deposits, inter-corporate deposits, bank finance and all funds received from outside sources such as funds raised by issue of commercial papers, debentures etc. but excludes funds raised by issue of instruments compulsorily convertible into equity shares within a period not exceeding 5 years from the date of issue. It includes total borrowings outstanding under all types of instruments/ products.

e) Other short-term liabilities:

All short-term borrowings other than CPs and NCDs with original maturity less than 12 months.

Disclosure on liquidity coverage Ratio ("LcR")

The Company has implemented the guidelines on Liquidity Risk Management Framework prescribed by the Reserve Bank of India requiring maintenance of Liquidity Coverage Ratio ("LCR"), which aim to ensure that an NBFC maintains an adequate level of unencumbered ("HOLAs") which can be converted into cash to meet its liquidity needs for a 30 calendar day time horizon under a significantly severe liquidity stress scenario.

The LCR is computed as per the formula given below:

LCR = Stock of High-Quality Liquid Assets ("HOLAs") / Total Net Cash Outflows over the next 30 calendar days

HOLAs consist of Cash (would mean cash on hand and demand deposits with Scheduled Commercial Banks), Investment in Central and State Government Securities, and highly-rated Corporate Bonds and Commercial papers, including those of Public Sector Enterprises, as adjusted after assigning the haircuts as prescribed by RBI.

Total net cash outflows are arrived after taking into consideration total expected cash outflows minus total expected cash inflows for the subsequent 30 calendar days.

As prescribed by RBI, total net cash outflows over the next 30 days = Stressed Outflows [Min (stressed inflows; 75% of stressed outflows)]. Total expected cash outflows (stressed outflows) are calculated by multiplying the outstanding balances of various categories or types of liabilities and off-balance sheet commitments by 115% (15% being the rate at which they are expected to run off further or be drawn down). Total expected cash inflows (stressed inflows) are calculated by multiplying the outstanding balances of various categories of contractual receivables by 75% (25% being the rate at which they are expected to under-flow).

The Liquidity Risk Management framework of the Company is governed by its Liquidity Risk Management Policy and Procedures approved by the Board. The ALM oversee the implementation of liquidity risk management strategy of the Company and ensure adherence to the risk tolerance/limits set by the Board.

The Company maintains a robust funding profile with no undue concentration of funding sources. In order to ensure a diversified borrowing mix, concentration of borrowing through various sources is monitored. Further, the Company has prudential limits on investments in different instruments to maintain a healthy investment profile. Any potential collateral calls from the same forms a miniscule part of cash outflows. There is no currency mismatch in the LCR. The above is periodically monitored and reviewed by ALM.

Note : In terms of the requirement as per Master Direction-Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 (No. RBI/DOR/2023-24/106 DOR.FIN.REC.No.45/03.10.119/2023-24 dated 19th October 2023, as amended, Non-Banking Finance Companies (NBFCs) are required to create an impairment reserve for any shortfall in impairment allowances under Ind AS 109 and Income Recognition, Asset Classification and Provisioning (IRACP) norms (including provision on standard assets). The impairment allowances under Ind AS 109 made by the corporation exceeds the total provision required under IRACP (including standard asset provisioning), as at 31st March 2024 and accordingly, no amount is required to be transferred to impairment reserve. (' L_akhs)

Note : In terms of the requirement as per Master Direction-Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 (No. RBI/DOR/2023-24/106 DOR.FIN.REC.No.45/03.10.119/2023-24 dated 19th October 2023, as amended Non-Banking Finance Companies (NBFCs) are required to create an impairment reserve for any shortfall in impairment allowances under Ind AS 109 and Income Recognition, Asset Classification and Provisioning (IRACP) norms (including provision on standard assets). The impairment allowances under Ind AS 109 made by the corporation exceeds the total provision required under IRACP (including standard asset provisioning), as at 31st March 2023 and accordingly, no amount is required to be transferred to impairment reserve.

49.6 In terms of RBI Circular RBI/2021-22/125 DOR/STR/REC.68/21.04.048/2021-22 dated 12 November 2021, on "Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances - Clarifications", the Company has revised its process of NPA classification by flagging of the borrower accounts as overdue as part of the day-end process for the due date.

51. Disclosure under clause 53(e) of the Securities and Exchange Board of india (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Debentures are secured by way of a first and pari passu charge in favour of the Debenture Trustee, Catalyst Trusteeship Limited at 'GDA House', First FLoor, Plot No.85, Bhusari Colony (Right), Paud Road, Pune.

52. There are no items of income and expenditure of exceptional nature for the financial year ended 31st March 2024 and 31st March 2023.

53. disclosure under code on social security, 2020

The Code on Social Security, 2020 (the Code) has been enacted, which would impact contribution by the Company towards Provident Fund and Gratuity. The effective date from which changes are applicable is yet to be notified and the rules thereunder are yet to be announced. The actual impact on account of this change will be evaluated and accounted for when notification becomes effective.

54. The Company does not fall under the definition of large corporate as per SEBI Master Circular No. SEBI/HO/DDHS/PoDl/ CIR/2023-24 dated 22nd May 2024 and as such furnishing of necessary disclosures do not arise.

55. There were no whistle blower complaints received by the Company during the financial year ended March 31, 2024 and March 31, 2023. (Refer Note 21 of Board's Report and Refer Note 26(c) of Corporate Governance Report).

56. The Company has maintained proper books of accounts in electronic mode in servers physically located in India and further the Company has complied with the process of taking daily back-up of books of accounts as per Notification No. G.S.R. 624(E) dated 5th August 2023 issued by Ministry of Corporate Affairs.

57. There have been no events after the reporting date that require disclosure in these financial statements. The Board of Directors of the Company have recommended a dividend of 8% being ' 0.80 per share on the equity shares of the Company, for the year ended 31st March 2024 (' 0.70 per share - 31st March 2023) which is subject to approval of shareholders. Consequently, the proposed dividend has not been recognised as a liability in the books in accordance with IND AS 10.

58. Disclosure of penalties imposed by RBI and other regulators

During the year ended 31st March 2024, Reserve Bank of India (RBI) has imposed a monetary penalty of ' 6.00 lakhs on account of instances of non-compliance with the KYC-RBI-Master Directions - Know Your Customer Directions 2016, as amended for failure to Categorize customers as low, medium and high risk categories and to carry out periodic updation of KYC for high risk customers for the financial year 2021-22. The Company has paid the penalty amount of ' 6.00 lakhs to Reserve Bank of India on 29th January 2024.

59. No fraud by the Company or on the Company has been noticed or reported in relation to the Financial Year 2023-24 and 2022-23.

60. The Company has used the borrowings from banks, financial institutions and Debts securities for the specific purpose for which it was taken as at 31st March 2024 and 31st March 2023.

61. The Company has not raised any funds from green deposits during the financial years ended 31st March 2024 and 31st March 2023.

62. The Company has not sponsored any off-balance sheet SPV, which are required to be consolidated as per accounting norms.

63. Previous year figures have been regrouped, reclassified and rearranged, wherever necessary, to conform to current year presentation. There are no signif icant regroupings / reclassifications for the year under report.