o. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, 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. When discounting is
used, the increase in the provision due to the passage of time is recognized as a finance cost. When the unavoidable costs of
meeting obligations under a contract exceed the economic benefits expected to be received under such contract (onerous
contract), the present obligation under the contract is recognized and measured as a provision.

Contingent liability is disclosed in the notes to accounts when in case of a present obligation arising from past events, it is not
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate of the same is not possible.

Contingent assets are disclosed in the notes to accounts when an inflow of economic benefits is probable.

p. Impairment of Assets
Financial Assets

In accordance with Ind AS 109, the Company applies the Expected Credit Loss (ECL) model for measurement and recognition
of impairment loss on financial assets and credit risk exposures. The Company follows ‘simplified approach’ for recognition of
impairment loss allowance on trade receivables. Simplified approach does not require the Company to track changes in credit
risk. Rather, it recognizes impairment loss allowance based on lifetime ECL at each reporting date, right from its initial
recognition. For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether
there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-
month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If
in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit
risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all
the cash flows that the entity expects to receive (i.e. all cash shortfalls), discounted at the original EIR. Lifetime ECL are the
expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month
ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting
date. ECL impairment loss allowance (or reversal) during the period if any, is recognized as expense/income in the Statement
of Profit and Loss.

Non-Financial Assets Property, Plant and Equipment and Investment Property

As at each Balance Sheet date, the Company assesses whether there is an indication that a non-financial asset may be impaired
based on external and internal factors and also whether there is an indication of reversal of impairment loss recognized in the
previous periods. If any indication exists or when annual impairment testing for an asset is required, the Company determines
the recoverable amount and impairment loss is recognized when the carrying amount of an asset exceeds its recoverable
amount.

Recoverable amount is determined, at the higher of the assets’ fair value less cost to sell and value in use; and
- In case of cash generating unit if any, (a group of assets that generates identified, independent cash flows), at the higher of
cash generating unit’s fair value less cost to sell and value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that
reflects current market assessments of the time value of money and risk specified to the asset. In determining fair value less
cost to sell, recent market transaction are taken into account. If no such transactions can be identified, an appropriate valuation
model is used.

Impairment losses of continuing operations are recognized in the Statement of Profit and Loss, except for properties previously
revalued with the revaluation taken to OCI if any. For such properties, the impairment is recognized in OCI up to the amount
of any previous revaluation.

When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off.
If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after
the impairment was recognized, then the previously recognized impairment loss is reversed through the Statement of Profit
and Loss.

q. Earnings per Share

Basic earnings per equity share is calculated by dividing the net profit or loss after tax (before considering other
comprehensive income) for the year attributable to equity shareholders of the Company by the weighted average number of
equity shares outstanding during the year. Diluted earnings per equity share, if any, is computed by dividing the net profit or
loss for the year as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential
equity shares, by the weighted average number of equity shares and dilutive potential equity share outstanding during the
period except when the results would be anti-dilutive.

r. Statement of Cash Flows

Cash flows are reported using the indirect method in accordance with Ind AS 7 'Statement of Cash Flows', whereby profit after
tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows are
segregated into operating, investing and financing activities.

s. Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand and at bank and term deposits maturing within 3 months from the date of
deposit. Term deposits maturing beyond 3 months, earmarked balances with banks and deposits held as margin money or
security against borrowings etc. have not been considered as Cash and cash equivalents.

t. Other Matters

Recent Accounting Pronouncements - Application of new and revised Ind ASs

All the Indian Accounting Standards ("Ind AS") issued and notified by the Ministry of Corporate Affairs are effective and
considered for the significant accounting policies to the extent relevant and applicable for the Company.Ministry of Corporate
Affairs (“MCA”) notifies new standard or amendments to the existing standards. No such notifications issued during the year.

Reclassification/Regrouping/Reworking of Previous Year's Figures

Under Ind AS the Company is required to prepare the financial statements as per Division III of Schedule III to Companies
Act 2013. Previous year's figures have been reworked, regrouped and reclassified wherever necessary.

[Liquidity Risk |

Liquidity Risk refers to the risk that the Company cannot meet its financial obligations on time. The objective of the liquidity risk management is to maintain sufficient liquidity and ensure that
funds are available for timely settlement of the obligations.

The Company’s treasury department monitors the liquidity, funding as well as settlements ofthese obligations, in addition to settlement of all other external liabilities. The treasury department
monitors its risk of shortage of funds on a regular basis to ensure continuity of funding. In addition, the management monitors the Company’s net liquidity position through rolling forecasts
on the basis of expected cash flows.

The Companystopped accepting/renewing deposits, debentures and subordinateddebts witheffect from July01, 2002. Public deposits accepted bythe Companyare fullymatured. As detailed
in Note 14.01, the Company has fully settled unclaimed debentures, unclaimed subordinated debts and deposits except for disputed at appropriate legal forums. The unclaimed amounts
pertaining to debentures and subordinated debts with interest upto maturity have been transferred to Investor Education & Protection Fund on 29th March 2022. Accordingly, there is no
liability outstanding in the books of the Company as on 31st March 2024 except the disputed amounts at legal forums amounting to INR 3.82 lakhs. For further information on Trade
Receivables, Loans, Borrowings and Subordinated liabilities refer Note 3, Note 4, Note 12, Note 13 and Note 14 read with subnotes thereon.

The Company as a Lessee:

Depreciation charge for right of use assets by class of underlying asset: Nil, since there are no Right to Use Assets. However depreciation in respect of Building Lease hold, disclosed vide
Note 9 read with note 25.

Interest expense on lease liabilities : Nil, since there are no such liabilities.

Expense relating to short term leases accounted for applying recognition exemptions: Refer Note 26 under the head "Office Rent"

Expenses relating to leases of low value assets accounting for applying recognition exemptions: There are no such leases.

Expenses relating variable lease payments not included in the measurement of lease liabilities: There are no such cases.

Income from subleasing of right to use assets: There are no such cases.

Total cash outlow for leases: Not applicable, since there are no Right to Use Assets.

Cash outflows in respect of short term leases, if any covered under Note 26 of financial statement, as stated above. Cash outflow in respect of such leases within next 12 months Rs. NIL (PY
Rs Nil)

Addition to Right to use assets and Carrying amount right of use assets at the end of the reporting period by class of underlying asset : There are no such additions.

Maturity Analysis of Lease Liabilities applying Ind AS 107: Not applicable, since there are no lease liabilities.

Y ear wise break up of Lease Rent Payables (covered under Ind AS 116) : Not Applicable, since there are no such leases.

Nature of leasing activities: The Company has taken the Building on lease on a short term basis, which has been used in the ordinary course of business.

Other disclosures are required under Ind AS 116 not applicable to the Company.

The Company as a Lessor:

The Company has given the commercial premises under operating leases. The lease rent receivable there on credited to statement of profit and loss account vide Note 21.

The nature of leasing activity carried on by the Company is the giving of commercial premises on operating lease. The management does not foresee any risk associated with any rights in
reataining the underlying asset. The lease is supported by lease agreement/MOU and lessee is required to hand over the possession of the property back to the Company on expiry of the lease
term. There are no other risk management strategy with regard to the lease.

28.10Disclosure_Bursuant_to_IndAS_37_"Provisions^Contingent_Liabilitiesand_ContingentAssets" 1

A. Liability in respect of damages and others in respect of suits against the Company before various Courts, Consumer Courts etc (in respect of repayment of deposits/debentures/debts with interest & other

costs) amounts to INR 382 thousands (PY INR 476 thousands) as stated in Note 14.01. There are no further amounts payable by the company, therefore the question of creating provision does not arise.

B. No provision made for disputed income tax liability for various years wherever department has preferred an appeal before the Honorable Tribunal, Honorable High Court and Honorable Supreme Court. The
question of quantification of liability thereon, does not arise, for the reason that the cases were allowed in favor of the Company, by the lower appellate authorities.

C. The Company, during the FY 2019-20 had received show-cause notice from Registrar of Companies, Karnataka (ROC) with regard to non compliance of appointing a whole time Company Secretary i.e
violation of section 383A of the Companes Act, 1956 and section 203 of he Companies Act,2013. The management of the Company has filed an application for seeking composition of offence and office of
Regional Director has compounded the offence and ordered the company to pay Penalty and accordingly the company has discharged the liability of penalties under Companies Act, 2013. The show cause
notice as aforesaid also refers to certain other matters, including proposal of action for unpaid matured deposits with interest thereon. The Company has made the representation before the Registrar of
Companies Karnataka to drop the proposals since in the opinion of the Company, either there are no non compliance or the Company has taken sufficient steps to comply with the observations.

28.11 The Management of the Company is of the opinion that the directors of the Company are not disqualified u/s 164(2) of Companies Act 2013, [in spite of the fact that the Company has stopped repaying matured
debentures/debts/deposits and interest thereon as detailed in Note no. 14.01], for the reasonthat the Companyhas fully settled undisputed andunclaimed debentures and undisputed and unclaimed subordinated
debts along with interest upto maturity by transferring it the Investor Education and Protection Fund on 29th March 2022. Accordingly, there are no new failures to repay liabilities after the commencement of
Companies Act 2013 as contemplated under Section 164(2)(b) of the Companies Act 2013 and therefore the directors of the Company are not disqualified as on 31st March 2024.

28.12|lmBajrment_ofAssets ]

|Non financial Assets including Property, Plant and Equipment & Investment Property ~|

The management of the company is of the opinion that carrying value of assets does not exceed its recoverable value. Further the Company does not have any information whether internal or external, that
indicate that impairment loss may have occurred. Considering all these aspects, the company has not impaired any of the non financial assets. This note is to be read along with Note 8.07 to Financial
Statements.

I Financial Assets ~|

Investments :

The management of the company is of the opinion that Financial Assets held as Equity Instruments and Preference Shares have not been impaired. The details of amount invested in equity instruments and
preference shares are disclosed vide Note no. 5 to Financial statements.

Trade Receivables:

The companyhas alreadyprovided for impairment loss in full towards these Financial assets as per the RBI Prudential norms. The Companyis ofthe opinionthat the amount so impaired is appropriate as onthe
date of the Balance Sheet and accordingly there is no requirement to consider any further impairment towards these financial assets. Trade receivables are impaired under Life Time Expected Credit Loss
Method and the details are given vide note. Note 3 and 28.03 to the Financial statements.

Loans:

As per RBI prudential norms company has already provided in full towards loans. Therefore the question of framing further policy in this connection does not arise. Loans are impaired under Life Time
Expected Credit Loss Method and the details are given vide note. Note 4 and 28.03 to the Financial statements.

Other Financial Assets:

Other financial assets (other than covered above) consists mainly of and Cash & Bank balances and deposits with consumer courts. The Company does not have any information whether internal or external,
that indicate that impairment loss may have occurred. Accordingly the company has not impaired any of those financial assets.

28.14 The Company has not verified the Property, Plant and Equipment under lease falling under the head “Leased Machineries and Equipment” & “Leased Vehicles and Furniture”, considering the fact that the
present value of such assets are not material and also considering the cost involved in the aforesaid verification.

28.15 The Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 st
March 2024, subject to the Note 28.14 of financial statement.

28.16 The Company does not possess any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held
in the name of the Company during the financial year ended March 31, 2024 and March 31, 2023 except the following:

28.17 The Company has not granted loans or advances in the nature of loans are granted to promoters, directors, KMPs and the related parties.

28.18 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

28.19 The Company has not traded or invested in Crypto currency or Virtual currency during the financial years ended March 31, 2024 and March 31, 2023.

28.20 Undisclosed Income

There are no transactions not recorded in the books of accounts.

28.21 The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in the financial years ended March 31, 2024 and March 31, 2023.

28.22 The Company does not have any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956

28.23 Analytical Ratio

We draw attention to Note 28.01 and Note 14.01. The Company has been incurring substantial losses over the last few years and major portion of its funds are blocked in non-performing assets. The present
activity of the Company is restricted to recovery of dues and settling its liabilities. Accordingly,

i. Capital to risk weighted assets ratio (CRAR)

ii. Tier 1 CRAR

iii. Tier II CRAR are negative and therefore restricted to zero.

Further, the Company has fully repaid public deposits during the year and therefore computing the Liquidity Coverage Ratio is not applicable to the Company.

28.24 All charges or satisfaction are registered with ROC within the statutory period for the financial years ended March 31, 2024 and March 31, 2023. No charges or satisfactions are yet to be registered with ROC
beyond the statutory period.

28.25 a. The management hereby state that, to the best of its knowledge and belief, 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 persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

• directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or

• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

b.The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the
understanding, whether recorded in writing or otherwise, that the Company shall:

• directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding Party or

• provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries

28.26

The Ministry of Corporate Affairs (MCA) has issued a notification (Companies (Accounts) Amendment Rules 2021) which is effective from April 01, 2023, states that every company which uses accounting
software for maintaining its books of account shall use only the accounting software where there is feature of recording audit trail of each and every transaction, and further creating an edit log of each change
made to books of account along with the date when such changes were made and ensuring that audit trail can not be disabled. The Company uses MAGIC software for maintaing books of account , which does
not have a feature of recording audit trail (edit log) facility.

28.27 The nature of pending litigations has been disclosed in Note 28.10. However the impact on the financial position of the Company is not ascertainable for
the present, for the reasons as mentioned therein

28.28 The Company does not have any long term contracts including derivatives contracts for which there were any material forseeable losses.

As per our report of even date
For M/s Sriramulu Naidu & Co

Chartered Accountants

Firm Registration No. : 008975S

Sd/- Sd/-

Sd/- T. Narayan M Pai Vinoda Sherigar

CA Sriramulu Naidu Managing Director Director

Partner DIN: 00101633 DIN: 07224755

Membership No. : 018244
UDIN: 24018244BKATCS5767
Manipal

30-May-24 Sd/- Sd/-

Srikara Mallya Hari Shankar Shukla

Chief Finance Officer Company Secretary

M. No. : A67963

Manipal Manipal

30-May-24 30-May-24