26. Segment reporting

The Chief Operating Decision Maker (CODM) has considered the business of providing loans as a single operating segment as defined in Ind AS 108- Operating Segments.

27. Capital Management

The Company’s capital management strategy is to ensure that it has sufficient capital for business operations, strategic investment, and regulatory requirements, to provide reasonable return to the shareholders. Equity share capital, other equity and subordinated debts are considered for Capital management.

The company monitors its Capital Adequacy ratio as stipulated by RBI. The Capital adequacy ratio as of March 31, 2025 is 80.13%

(March 31, 2024 - 84.38%) as against the regulatory requirement of 15%._ 29. Financial Risk Management

The Company’s board of directors have overall responsibility for the establishment and oversight of the risk management framework. The board of directors along with the top management are responsible for developing and monitoring the risk management policies.

The risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer fails to meet his contractual obligations and arises principally from the company's loan receivables.

The company has a credit policy which clearly defines the credit filters and the terms of acceptance of proposals for financing different categories of borrowers and asset classes. The credit appraisal process includes stratification of customers, compliance with know your customer (KYC) norms, field investigation, loan to value, loan tenure, etc.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposit to optimize the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

31. Additional Disclosures Under Schedule III Division III

i) The Company neither has any immovable property nor any title deeds of Immovable Property not held in the name of the Company

ii) All Property, Plant and Equipment (PPE) and Intangible Assets are stated in the Balance sheet at cost less accumulated depreciation/ammortization and accumulated impairment losses, if any. The company has not revalued any PPE and Intangible Assets during the financial year.

iii) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

iv) The Company has not been declared wilfid defaulter by any bank or financial institution or government or any government authority.

v) The company has not transacted with other companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

vi) The Company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period, as at the year ended 31 March 2025.

vii) The Company does not have Investments in other companies and hence compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 does not apply.

viii) The Company, as part of its normal business, grants loans and advances, borrows from Banks, financial institutions and others. These transactions are part of the Company’s authorised normal business, which is conducted ensuring adherence to regulatory requirements.

Other than the transactions described above:

a) 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.

ix) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year ended March 31, 2025.

x) There is no income surrendered/disclosed as income during the current/previous year in the tax assessments under Income Tax Act, 1961, that has not been recorded in the books of accounts.

xi) The Company has not entered into any scheme of arrangements which has an accounting impact on current/previous financial year.

xii) There are no loans or advances in the nature of loans granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are either repayable on demand or without specifying any terms or period of repayment.

xiii) The company is not required to file any quarterly statements or returns of current assets with banks / financial institutions.

32. Shares Issue

During the year 2024-25, the Company had issued 4,00,000 equity shares for Rs.25 each (comprising face value Rs. 10 each and a share premium of Rs.15). The shares were issued on preferential allotment on 04th October 2024 for cash consideration.

33. Corresponding figures for the previous years have been regrouped/rearranged where ever necessary to make them comparable with those of the current year.The figures are rounded to the nearest thousand rupee.