6.7 Contingent Liabilities and Provisions other than impairment on Loan Portfolio
Provisions and liabilities are recognized in the period when it becomes probable that there will be a
future outflow of funds resulting from past operations or events and the amount of cash outflow can
be reliably estimated. The timing of recognition and quantification of the liability requires the
application of judgement to existing facts and circumstances, which can be subject to change. The
carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of
changing facts and circumstances.
7. MATERIAL 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 recognized in the period in which the estimates are revised and future
periods are affected. 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:
7.1 Business Model Assessment
Classification and measurement of financial assets depends on the results of the Solely Payments of
Principal and Interests (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 redirecting 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.
7.2 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 periodically review its models at the end of each
reporting period in the context of actual loss experience, changes in macro economic variables etc.
and make necessary adjustments or incorporate overlays to its ECL model so as to be in line with its
estimate of the most likely loss allowance wherever considered necessary.
7.3 Effective Interest Rate (EIR) Method
The Company's EIR methodology, recognizes interest income/expense using a rate of return that
represents the best estimate of a constant rate of return over the expected behavioural life of loans
given/taken. This estimation, by nature, requires an element of judgement regarding the expected
behaviour and life-cycle of the instruments.
7.4 Other Estimates
These include current /deferred taxes etc. In respect of current tax and deferred taxes, judgments /
estimates are used for the purpose of ascertaining the respective current/deferred tax asset/liability
in accordance with the income tax laws and ICDS framework. A deferred tax asset is recognised to
the extent that it is probable that future taxable profit will be available against which the deductible
temporary differences and tax losses can be utilized.
19.3 All the secured non-convertible debentures of the Company including those issued during the year
ended 31 March 2025 are fully secured by pari-passu charge on present and/or future receivables
under Loan contracts/Hire Purchase/Lease, owned Assets and book debts. Further, the Company in
respect of secured listed nonconvertible debt securities maintains 100% security cover or higher
security cover as per the terms of Term Sheet/Offer document/Information Memorandum and/or
Debenture Trust Deed, sufficient to discharge the principal amount and the interest thereon. The
asset cover available as on 31st March 2025 in respect of listed secured debt securities is 1.38 (March
2024 - 1.41).
28.1 Nature and purpose of Reserves
i) Statutory reserve: Every year the Company transfers a sum of not less than twenty per cent of
net profit of that year as disclosed in the Statement of Profit and Loss to its Statutory Reserve
pursuant to Section 45-IC of the RBI Act, 1934.
The conditions and restrictions for distribution attached to statutory reserves as specified in
Section 45-IC(1) in The Reserve Bank of India Act, 1934
(1) Every non-banking financial company (NBFC) shall create a reserve fund and transfer
therein a sum of not less than twenty per cent of its net profit every year, as disclosed in the
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 a 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 (i) Together with the amount in the share premium account
is not less than the paid-up capital of the NBFC.
(ii) Securities Premium: The amount received in excess of face value of the equity shares on share
issue is recognized in Securities Premium Reserve. 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.
(iii) General Reserve: Under the erstwhile 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 introduction of Companies Act 2013, 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 Companies Act, 2013.
(iv) Retained Earnings: Retained earnings or accumulated surplus represent total of all the profits
retained since company's inception. Retained earnings are credited with current year profits,
reduced by losses if any, dividend pay-outs, transfers to General Reserve or any such other
appropriation to specific reserves. The company is entitled to declare dividends only to the extent
permitted under RBI guidelines
42. CHANGE IN ESTIMATE W.R.T ’EXPECTED CREDIT LOSS MODEL (ECL)’ DURING PREVIOUS YEAR:
Company has reviewed its Expected credit loss model and the same was adopted from 1st April 2023.
Key changes are as follows:
Probability of default ('PD')
For Stage 1 Accounts - the PD has been arrived at based on % of likely defaults in next 12 months.
For accounts with significant increase in credit risk - the PD is the % of loan becoming credit impaired
i.e. 90 days past due.
For credit impaired accounts - the PD considered is 100%.
Exposure at default ('EAD')
As per Ind AS 109, EAD is estimation of the extent to which the financial entity may be exposed to
counterparty in the event of default and at the time of counterparty's default.The EAD comprises of
principal component, accrued interest for the outstanding exposure.
Loss given default ('LCD')
Loss given default LGD is an estimate of the loss from a transaction given that a default occurs. Various
approaches are available to compute the LGD. The Company has considered the workout LGD approach
by considering historical losses and recoveries. The following steps are performed to calculate the LGD:
1) Analysis of historical accounts
2) The computation consists of following components, which are:
a) Outstanding balance on the day of default
b) Recovery amount (discounted yearly) by initial contractual rate.
The formula for the computation is as below:
Recovery rate % = (Discounted recovery amount / Total exposure on the day of default)
LGD % = 1 - recovery rate
The company reviewed the model in first quarter by roll forwarding the data for one more year . As a
result of improved collections, PD% and LGD% got reduced and an amount of 389.79 lakhs reversed
from the provision.
The company had created an additional provision in March 22 for the stressed assets to keep the NNPA
below 6% to comply with the PCA norms as prescribed by RBI. Since the majority of the stressed assets
have since been recovered or have been sold to Asset reconstruction companies and considering the
better asset quality of the current portfolio, in the Quarter 3 of the current financial year the company
has decided to bring down its Provision Coverage ratio from 75% to 60% and released an amount of
' 1,810 lakhs from the provision.
43. RETIREMENT BENEFIT PLAN
43.1 Defined Benefit Plan- Gratuity
"The Company has a Defined Benefit Gratuity Plan. The gratuity plan is governed by the Payment
of Gratuity Act, 1972. The Company has entered into an arrangement with the LIC of India to cover
the liability payable to the employees towards the gratuity under a Gratuity Trust Scheme based on
Group Gratuity Cum Assurance Scheme of the LIC of India which is a defined benefit scheme and
the company has to make contributions under such scheme".
The following tables summarises the components of net benefit expense recognized in the
Statement of Profit and loss and the funded status and amounts recognized in the Balance Sheet
for the gratuity plan."
48. CAPITAL
The Company maintains an actively managed capital base to cover risks inherent in the business which
includes issued equity capital, share premium and all other equity reserves attributable to equity holders
of the Company. As an NBFC, the RBI requires the company to maintain a minimum capital to risk
weighted assets ratio (“CRAR”) consisting of Tier 1 and Tier 2 capital of 15% of our aggregate risk weighted
assets. Further, the total of our Tier 2 capital cannot exceed 100% of our Tier 1 capital at any point of time.
The capital management process of the Company ensures to maintain a healthy CRAR at all the times.
Capital Management
The primary objectives of the Company's capital management policy is to ensure that the Company
complies with externally imposed capital requirements and maintains strong credit ratings and healthy
capital ratios in order to support its business and to maximize shareholder value
The Company manages its capital structure and makes adjustments to it according to changes in
economic conditions and the risk characteristics of its activities. In order to maintain or adjust the capital
structure, the Company may adjust the amount of dividend payment to shareholders, return capital to
shareholders or issue capital securities. No changes have been made to the objectives, policies and
processes from the previous years. However, they are under constant review by the Board.
Regulatory capital consists of Tier 1 capital, which comprises of share capital, statutory reserves, general
reserve, share premium and retained earnings including current year profit. The other component of
regulatory capital is Tier 2 Capital, which subject to statutory limit includes subordinated debt and
general provisions.
The Company is meeting the capital adequacy requirements of Reserve Bank of India (RBI)
49. FAIR VALUE MEASUREMENT
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction in the principal (or most advantageous) market at the measurement date under current
market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated
using a valuation technique. In order to show how fair values have been derived, financial instruments
are classified based on a hierarchy of valuation techniques.
ii. Fair value of debt funds/ alternate investment funds are derived based on the latest
available valuation report/ NAV/ statement communicated by the fund house and is
classified as Level 2.
49.2.2 Investments at Fair Value Through Other Comprehensive Income
For Investment at fair value through Other Comprehensive Income, valuation are done
using quoted price from active markets at the measurement date. The equity instruments
which are actively traded in public stock exchanges with readily available active prices on a
regular basis are classified as Level 1.
49.3 Fair value of Financial Instruments not measured at fair value
Set out below is a comparison, by class, of the carrying amounts and fair values of the Company's
financial instruments that are initially measured at fair value and subsequently carried at
amortised cost in the financial statements (Not measured at Fair value)
49.2 Fair Value Technique
49.2.1 Investments at Fair Value Through Profit or Loss
i. Investment in security receipts has been classified as Level 3. Since the investment value
approximates the net asset value as at March 31, 2025 as confirmed by the Asset
Reconstruction Company (ARC), disclosure of sensitivity of fair value measurement in
unobservable inputs is not considered relevant.
49.4 Valuation techniques
Below are the methodologies and assumptions used to determine fair values for the above
financial instruments which are not recorded and measured at fair value in the company's
financial statements. These fair values were calculated for disclosure purpose only.
49.4.1 Short-term financial assets and liabilities
For financial assets and financial liabilities that have a short-term maturity (less than twelve
months), the carrying amounts, which are net of impairment, are a reasonable
approximation of their fair value. Such instruments include cash and cash equivalents,
balances other than cash and cash equivalents and trade payables without a specific
maturity. Such amounts have been classified as Level 1/Level 3 on the basis that no
adjustments have been made to the balances in the Balance Sheet.
49.4.2 Loans and advances to customers
The fair value of loans and advances are calculated using a portfolio based approach,
grouping loans as far as possible into homogeneous groups based on similar
characteristics. The fair value is then extrapolated to the portfolio using discounted cash
flow models that incorporate interest rates estimates considering all significant
characteristics of the loan. The fair value is then reduced by impairment allowance which is
already calculated in computing probability of default and loss given default to arrive at fair
value net of risk.
49.4.3 Financial assets at amortised cost
The fair values of held-to-maturity investments are estimated using a discounted cash flow
model based on contractual cash flows using actual or estimated yields and discounting by
yields incorporating the counterparties credit risk.
49.4.4 Financial liability at amortised cost
The fair values of financial liability held-to-maturity are estimated using effective interest
rate model based on contractual cash flows using actual yields.
50. RISK MANAGEMENT
Risk is inherent to any Company, more so to a NBFC, and MCSL is no exception. At MCSL we have a
proper framework on Risk Management, in order to ensure that effective management of risks is an
integral part of every employee's job. The process is designed in such a way that the work of one is
effectively monitored by another and therefore ensures that any risk that the process can have is clearly
verified and nullified by the team member handling the next process.
The main objective is to create and protect shareholder value by minimizing threats or losses and
identifying and maximizing opportunities and thereby ensuring sustainable business growth with
stability. The Risk Management systems also promote a proactive approach in reporting, evaluating and
resolving risks associated with the business.
The Company is exposed to credit risk, liquidity risk and market risk. It is also subject to various operating
and business risks such as compliance risk, reputational risk and strategy risk.
Through continuous enhancement of risk controls and governance structures, the Company is
positioned to thrive amid challenges, ensuring long-term financial stability and resilience
50.1 Risk Management Framework
The Board of Directors are responsible for the overall risk management approach and for
approving the risk management strategies and principles. The Board has constituted the Risk
Management Committee (RMCB) which is responsible for monitoring the overall risk process
within the Company. The RMCB has the overall responsibility for the development of the risk
strategy and implementing principles, frameworks, policies and limits. It is responsible for
managing risk decisions and monitoring risk levels. The Chief Risk Officer is responsible for
implementing and maintaining risk related procedures to ensure an independent control process
is maintained. The risk owners are responsible for monitoring compliance with risk principles,
policies and limits across the Company. Each department has its risk owner who is responsible for
the control of risks, including monitoring the actual risk of exposures against authorised limits and
the assessment of risks. The Company's treasury is responsible for managing its assets and
liabilities and the overall financial structure. It is also primarily responsible for the funding and
liquidity risks of the Company. The Company's policy is that risk management processes
throughout the Company are audited annually by the internal audit function, which examines
both the adequacy of the procedures and the Company's compliance with the procedures. Internal
audit discusses the results of all assessments with management and reports its findings and
recommendations to ACB.
• Risk Identification: Conducting in-depth analyses to identify the root cause of potential risks and
assess their possible ramifications, thereby facilitating the development of precise and robust
mitigation strategies.
• Risk Assessment: Undertaking a thorough evaluation of risks across various contingencies,
ensuring a comprehensive understanding of their scope and potential consequences.
• Risk Response: Deploying tailored strategies to either mitigate, accept, transfer, or entirely
eliminate risks based on their assessed severity and probability of occurrence.
• Ongoing Monitoring: Continuously tracking the risk landscape to identify emerging threats and
ensure the prompt application of corrective measures.
• Process Evaluation & Improvement: Engaging in continuous review and refinement of risk
management methodologies to increase their effectiveness and responsiveness to dynamic
conditions.
50.2 Identification of Risk and Analysis
The Company has identified the following potential risks that could have an adverse impact on the
Company:
1. Credit Risk
2. Liquidity Risk
3. Operational Risk
4. Compliance Risk
5. Reputational Risk
6. Strategic Risk
7. Fraud risk
8. Cyber security risk
While each of the risk has significance, all except the Credit Risk can be managed and controlled
through internal processes. It is the Credit Risk management which needs both internal and
external factors in equal measure to be effective and controlled.
The scope of the Internal Audit shall cover risk management (including fraud risk) and control
monitoring review and advisory services, reviews of operational and financial processes and
controls, documentation of various important processes and events, information technology
reviews, governance and assurance reviews, operational compliance audits, verification on
adherence to regulatory requirements and other ad hoc advisory or consulting services. Internal
Auditors discusses the results of all assessments with management and reports its findings and
recommendations to Audit Committee.
50.2.1 Credit Risk
This is the major risk anticipated in connection with the nature of operations of the
company. While a lot would need to be done internally to monitor it and control it, the
external factors also plays its role in the final impact of the credit risk. Credit risk is the risk of
default or non-repayment of loan by a borrower, which involves monitory loss to the
company, both in terms of principal and interest. In the portfolio of an NBFC, the losses
stem from outright default due to the inability or unwillingness of a customer or
counterparty to meet commitments in relation to repayment, trading, settlement and
other financial transactions. Alternatively, losses result from reduction in portfolio value
arising from actual or perceived deterioration in due to any event affecting the borrower/ a
group of borrowers. The effective management and reporting of credit risk is a critical
component of comprehensive risk management and is essential for the long-term success
of any banking and financial services organization. It ensures that risks are identified in
advance and corrective action taken. Credit risk management encompasses identification,
measurement, monitoring, control and reporting of the credit risk exposures.
The major risk that the Company faces is the default and / or delay in payment of EMIs
(principal and interest) by the customers within the due time. To mitigate the said risk, the
Company measures the credit history, capacity to repay, loan amount and loan conditions
and associated collateral, if any, of the customer before sanctioning/ disbursing loan and
has an efficient post disbursal monitoring mechanism to take corrective and timely action
whenever required to minimise the probability of default/loss.
50.2.2 Methodology for assessment of Expected Credit loss on loan asset - Refer Note 6.1.(vii) of
Material accounting policies
50.2.3 Credit quality of financial asset based on Stage 1 (No significant increase in the credit risk),
Stage 2 (Significant increase in the credit risk but no impairment), and Stage 3 (Credit
impaired asset) - Refer Note 10.1 of Financial Statements.
50.2.4 Reconciliation of expected credit loss balance - Refer Note 10.3 of Financial Statement
50.2.5 RBI disclosures requirement for restructured assets - Refer Note 76 of Financial Statement
50.2.6 Concentration of Credit Risk - Retail and Corporate Loans
The Company's portfolio can be broadly classified as following:
50.2.6.1 Vehicle Loan (predominantly backed up by 2-wheeler and used 4-wheeler assets)
50.2.6.2 Vehicle Loan (Securitised)
50.2.6.3 Secured Loans
50.2.6.4 Unsecured Loans
50.2.7 Maximum Exposure to Credit Risk
The maximum exposure to credit risk of loans is their carrying amount after considering
effect of mitigation through collateral recovery and credit enhancements
50.2.8 Narrative Description of Collateral
Collateral primarily includes vehicles purchased by retail loan customers and in respect of
other secured loans they represent specific/pari-passu charge on the receivables of the
borrowers.
50.2.9 Quantitative Information of collateral
Gross Value of total secured loans to value of collateral (Before adjustment on account of
ECL and EIR).
The above is based on the asset cost of vehicle loans at origination as reduced by 20% p.a.
on straight line method. The derived value is for disclosure purpose only and may not be
representative of the recoverable value as the same is depended on the condition of the
vehicle at the point of repossession. However the company has assessed LGD for ECL
purpose based on actual loss incurred as per historical information on repossession/sale of
collateral asset.
50.2.10 Liquidity Risk
Liquidity Risk arises largely due to maturity mismatch associated with assets and liabilities
of the Company. Liquidity risk stems from the inability of the Company to fund increase in
assets, manage unplanned changes in funding sources and meet financial commitments
when required. The Asset Liability Committee (ALCO) meets regularly to review the
liquidity portion based on future cash flows. The company also maintain adequate liquid
assets and has access to funding the hedge against unexpected requirement.
50.2.10.1 Analysis of Financial Assets and Liabilities by Remaining Contractual Maturities
The below table shows as analysis of assets / liabilities and analysed accordingly to
when they are expected to be recovered or settled and considering contract
terms. For loans/ advances to customers maturity analysis is based on original
contractual terms.
50.2.11 Market Risk
Market Risk is the risk that the fair value or the future cash flows of a financial instrument
will fluctuate because of changes in market factor. Such changes in the values of financial
instruments may result from changes in the interest rates, credit, liquidity, and other
market changes. The objective of market risk management is to avoid excessive exposure
of our earnings and equity to loss and reduce our exposure to the volatility inherent in
financial instruments. The Company is primarily exposed to Interest rate risk as under:
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument
will fluctuate because of changes in market interest rates. The company is subject to
interest rate risk, primarily since it lends to customers at fixed rates and for maturity periods
different from the funding sources. Further, majority of company's borrowings are in the
form of WCDL/ Cash Credit, on which company is exposed to Interest rate risk either during
the tenure of the loan or at the time of renewal which is ordinarily within a period of 12
51. SEGMENT REPORTING
The Company is primarily engaged in the business of financing and there are no separate reportable
segments identified as per the Ind AS 108 - Segment Reporting.
52. TRANSFERRED FINANCIAL ASSETS THAT ARE NOT DERECOGNISED IN THEIR ENTIRETY
52.1 The Company has transferred certain pools of fixed rate loan receivables backed by underlying
assets by entering into securitisation transactions through Special Purpose Vehicle Trusts (“SPV
Trust”).
The Company, being Originator of these loan receivables, also acts as Servicer with a responsibility
of collection of receivables from its borrowers and depositing the same in Collection and Payout
Account maintained by the SPV Trust for making scheduled payouts to the investors in Pass
Though Certificates (PTCs) issued by the SPV Trust. These securitisation transactions also require
the Company to provide for first loss credit enhancement in various forms, such as corporate
guarantee, cash collateral, subscription to subordinated PTCs as credit support in the event of
shortfall in collections from underlying loan contracts. By virtue of existence of credit
enhancement, the Company is exposed to credit risk, being the expected losses that will be
incurred on the transferred loan receivables to the extent of the credit enhancement provided.
In view of the above, the Company has retained substantially all the risks and rewards of ownership
of the financial asset and thereby does not meet the derecognition criteria as set out in Ind AS 109.
The consideration received under this securitisation arrangements are accounted as Financial
Liability and the balance outstanding as at the end of the reporting date is disclosed as “Secured
term loan from securitisation transaction” under Note 19.
The following table provides a summary of financial assets that have been transferred in such a
way that part or all of the transferred financial assets do not qualify for derecognition, together
with the associated liabilities.
75.2 Qualitative Disclosure
The Reserve Bank of India has prescribed Guidelines on Maintenance of Liquidity Coverage Ratio (LCR).
All Non-Deposit taking NBFCs with asset size of Rs. 10,000 crore and above, and all deposit taking
NBFCs irrespective of their asset size, is required to maintain a liquidity buffer in terms of LCR which
will promote resilience of NBFCs to potential liquidity disruptions by ensuring that they have sufficient
High Quality Liquid Asset (HQLA) to survive any acute liquidity stress scenario lasting for 30 days. The
stock of HQLA to be maintained by the NBFCs shall be minimum of 100% of total net cash outflows
over the next 30 calendar days.
The LCR requirement was applicable from December 1, 2020 with the minimum HQLAs to be held
being 50% of the LCR, progressively reaching a level upto 60%, 70%, 85% and 100% by December 1, 2021,
December 1, 2022, December 1, 2023, December 1, 2024 respectively.
Liquidity Coverage Ratio (LCR) comprises of High Quality Liquid Assets (HQLAs) as numerator and net
cash outflows in 30 days as denominator. The average LCR is computed at as simple averages of daily
observations over the previous quarter.
Major source of borrowing for the Company are Non-Convertible Debentures, Working Capital and
Term loans from Banks, Commercial paper and Public deposits. Details of funding concentration from
Significant counter party are given above under public disclosure.
The company has maintained LCR well above the regulatory requirement for all the quarters. The
average LCR for the quarter ended 31st March 2025 is 177.61% (for the quarter ended 31st March 2024 -
191.74%), as against the regulatory requirement of 100% (85% for the corresponding period last year).
79. AUDIT TRAIL
The Company uses accounting software for maintaining its books of account which have a feature of
audit trail (edit log) facility at the application level for each change made in the books of account along
with such changes made. This feature of audit trail (edit log) facility was operated throughout the year
for all the transactions recorded in such software.
However, Company has not enabled audit trail for direct database layer changes as access to the
database of all accounting software is available only to database administrators for the limited purpose
of its maintenance for which access and monitoring controls are enabled. Also, no changes have been
made to any transaction recorded in the books of account, directly at the database level during the year.
The audit trail (edit log) feature has not been tampered with during the year.
80. OTHER STATUTORY INFORMATION
80.1 No Benami Property are held by the Company and or no proceedings have been initiated or are
pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
80.2 The company has searched transactions with Struck-off companies by comparing company's
counter parties with publicly available database of struck of companies through a manual name
search. Based on such a manual search, no party identified to be reported in the financial
statements.
80.3 There is no charges or satisfaction in relation to any debt / borrowings yet to be registered with
ROC beyond the statutory period.
80.4 The Company has complied with the number of layers prescribed under clause (87) of section 2 of
the Act read with Companies (Restriction on number of Layers) Rules, 2017.
80.5 Other than the transactions that are carried out as part of Company' normal lending business:
A) 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 -
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;
B) 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 -
(a) 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
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
80.6 The Company has not traded or invested in Crypto currency or Virtual Currency during the
financial year
80.7 There are no transactions which have not been recorded in the books of accounts and has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961. Also, there are no previously unrecorded income and related assets.
80.8 The Company has in respect of the investments made, complied with no of layers as defined
under section 2(87) of the Companies Act, 2013.
80.9 The Company has nothing to report on compliance with approved Scheme(s) of Arrangements.
80.10 There are no differences between the quarterly returns of assets given as security submitted to the
banks and the books of account.
81. EVENTS AFTER THE REPORTING DATE/ OTHER DEVELOPMENTS
81.1 Material events occurring after the balance sheet date are taken into cognizance and there are no
other events after the reporting date that require disclosure in the financial statements.
81.2 The Code on Social Security, 2020 (the Code) has been enacted, which would impact contribution
by the Company towards Provident Fund and Gratuity. The impact of changes if any arising on
enactment of the Code will be assessed by the company after the effective date of the same and
the rules thereunder are notified
82. Previous year figures, unless otherwise stated, are given within brackets and have been reworked,
regrouped, re-arranged and re-classified to conform to the current year presentation.
Note: The accompanying notes form an integral part of the financial statements (Note No: 1-82)
As per our separate report of even date attached
For M/s. Sundaram & Srinivasan For and on behalf of the Board of Directors of
Chartered Accountants Muthoot Capital Servcies Limited
FRN No.: 004207S
Sd/- Sd/- Sd/-
S. Usha Tina Suzanne George Ritu Elizabeth George
Partner Whole-Time Director Director
Membership No.: 211785 DIN: 09775050 DIN: 10766726
Sd/- Sd/- Sd/-
Place: Kochi Mathews Markose Ramandeep Singh Deepa Gopalakrishnan
Date: 14th May 2025 Chief Executive Officer Chief Financial Officer Company Secretary &
Compliance Officer
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