2.5 PROVISIONS, CONTINGENT LIABILITIES
AND CONTINGENT ASSETS

Provisions are recognized when there is 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 there is a
reliable estimate of the amount of the obligation.

When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of those
cash flows (when the effect of the time value
of money is material). The discount rate used
to determine the present value is a pre-tax rate
that reflects current market assessments of
the time value of money and the risks specific
to the liability.

Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or nonoccurrence of one or more
uncertain future events not wholly within the
control of the Company or a present obligation
that arises from past events where it is either
not probable that an outflow of resources will
be required to settle the obligation or a reliable
estimate of the amount cannot be made.

Contingent assets are not recognized in
the financial statements. Contingent assets
are disclosed where an inflow of economic
benefits is probable.

Provisions, contingent liabilities and contingent
assets are reviewed at each Balance Sheet date.

Commitments

Commitments are future contractual liabilities,
classified and disclosed as follows:

The estimated amount of contracts remaining
to be executed on capital account and
not provided for

• Uncalled liability on shares;

• Undisbursed commitment relating to
loans; and

• Other non-cancellable commitments, if any,
to the extent they are considered material
and relevant in the opinion of management.

• Pending Capital Commitment.

2.6 REVENUE RECOGNITION

Revenue is recognized to the extent that it is
probable that the economic benefits will flow
to the company and the revenue can be reliably
measured and there exists reasonable certainty
of its recovery.

a) Interest Income

The main source of revenue for the Company
is Income from Housing and Other property
loans. Repayment of housing and property
loan is generally by way of Equated Monthly
Installments (EMIs) comprising of principal and
interest. EMIs generally commence once the
entire loan is disbursed. Pending commencement
of EMIs, pre-EMI interest is payable

every month on the loan that has been disbursed.
Interest is calculated on monthly rest on the basis
of agreed terms with the borrowers.

I nterest income on housing and property loans
and other financial instruments carried at
amortized cost is recognized on a time proportion
basis taking into account the amount outstanding
and the effective interest rate (“EIR”) applicable.

The EIR is the rate that exactly discounts
estimated future cash flows of the financial
instrument through the expected life of the
financial instrument or, where appropriate, a
shorter period, to the net carrying amount of the
financial instrument. The future cash flows are
estimated taking into account all the contractual
terms of the instrument.

The calculation of the EIR includes all fees paid
or received between parties to the contract that
are incremental and directly attributable to the
specific lending arrangement, transaction costs,

and all other premiums or discounts. For financial
assets at Fair Value through Profit or Loss
(FVTPL), transaction costs are recognized in
profit or loss at initial recognition.

The interest income is calculated by applying the
EIR to the gross carrying amount of non-credit
impaired financial assets (i.e. at the amortized
cost of the financial asset before adjusting
for any expected credit loss allowance).
For credit-impaired financial assets the interest
income is calculated by applying the EIR to the
amortized cost of the credit-impaired financial
assets [i.e. the gross carrying amount less the
allowance for expected credit losses (ECLs)].

Delayed payment interest (penal interest)
levied on customers for delay in repayments/
nonpayment of contractual cash flows is
recognized on realization.

b) Fee and other charges

Processing fees and other loan related charges
are recognized when it is reasonable to expect
ultimate collection which is generally at the time of
Login/ disbursement of the loan. Fees on delayed
EMI/Pre-EMI Interest are recognized on receipt
basis, when the ultimate collection is made.

c) Investment Income

Income from interest on deposits and interest
bearing securities is recognized on the time
proportionate method taking into account the
amount outstanding and the rate applicable.
The gains/losses on sale of investments are
recognized in the Statement of Profit and
Loss on trade date.

d) Dividend Income

Dividend income from investments is recognized
when the Company's right to receive payment
has been established (provided that it is probable
that the economic benefits will flow to the
Company and the amount of dividend income
can be measured reliably).

e) Other Income

Other Income represents income earned from
the activities incidental to the business and is

recognised when the right to receive the income
is established as per the terms of the contract

f) Finance Cost

Finance expenses consist of interest expense
on loans and borrowings. Borrowing costs are
recognized in the statement of profit and loss
using the effective interest method (EIR).

g) Exceptional Items

When items of income and expense within profit
or loss from ordinary activities are of such size,
nature or incidence that their disclosure is relevant
to explain the performance of the enterprise for
the period, the nature and amount of such items
is disclosed separately as Exceptional items.

The company does not have any items of income
and expense which categorized as exceptional
items during the year 2024-25.

2.7 LEASES

With effect from 1 April 2019, the Company
has applied Ind AS 116 'Leases' for all long term
and material lease contracts covered by the
Ind AS. The Company has adopted modified
retrospective approach as stated in Ind AS 116
for all applicable leases on the date of adoption.

a) Measurement of Lease Liability

At the time of initial recognition, the Company
measures lease liability as present value of all
lease payment discounted using the Company's
incremental cost of borrowing rate and
directly attributable cost. Subsequently, the
lease liability is

(i) increased by interest on lease liability;

(ii) reduce by lease payment made; and

(iii) remeasured to reflect any reassessment
or lease modifications specified in Ind AS
116 'Leases', or to reflect revised fixed
lease payments.

b) Measurement of ROU

At the date of commencement of the lease, the
Company recognizes a right-of-use asset (ROU)

and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for
leases with a lease term of twelve months or less
(short-term leases) and low value assets.

For these short-term and low-value assets, the
Company recognises the lease payments as an
operating expense on a straight-line basis over
the term of the lease.

The ROU assets are initially recognised at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made
at or prior to the commencement date of the
lease plus any initial direct costs less any lease
incentives. They are subsequently measured
at cost less accumulated depreciation and
impairment losses.

ROU assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
underlying asset.

2.8 TAXES
a) Income Tax

Income tax expense represents the sum of the tax
currently payable and deferred tax. Income tax
expense comprises current and deferred taxes.
Income tax expense is recognized in the
Statement of Profit and Loss except when they
relate to items that are recognized outside profit
or loss (whether in other comprehensive income
or directly in equity), in which case tax is also
recognized outside profit or loss.

i. Current Tax

The tax currently payable is based on the
estimated taxable profit for the year for the
Company and is calculated using applicable
tax rates and tax laws that have been enacted
or substantively enacted. Taxable profit
differs from 'profit before tax' as reported in
the Statement of Profit and Loss because of
items of income or expense that are taxable or
deductible in other years and items that are
never taxable or deductible. The current tax
is calculated using applicable tax rates that

have been enacted or substantively enacted
by the end of the reporting period.

ii. Deferred Tax

Deferred tax assets and liabilities are
recognized for the future tax consequences of
temporary differences between the carrying
values of assets and liabilities and their
respective tax bases, and unutilized business
loss and depreciation carry-forwards and
tax credits. Such deferred tax assets and
liabilities are computed separately for each
taxable entity. Deferred tax assets are
recognized to the extent that it is probable
that future taxable income will be available
against which the deductible temporary
differences, unused tax losses, depreciation
carry-forwards and unused tax credits
could be utilized.

Deferred tax relating to items recognized
outside profit or loss is recognized outside
profit or loss (either in other comprehensive
income or in equity). Deferred tax items are
recognized in correlation to the underlying
transaction either in OCI or directly in equity.

b) Goods and Services Input Tax Credit

Goods and Services tax input credit is accounted
for in the books in the period in which the supply
of goods or service received is accounted
and when there is no uncertainty in availing/
utilizing the credits.

2.9 CASH AND CASH EQUIVALENTS

Cash and cash equivalents includes cash on
hand, balance in current account and Balances
with banks in deposits accounts with original
maturity of less than 3 months. Short term and
liquid investments being subject to more than
insignificant risk of change in value, are not
included as part of cash and cash equivalents.

2.10 SEGMENT REPORTING

The Company is engaged mainly in the business
of Housing finance. This in the context of Ind AS
108 - operating segments reporting is considered
to constitute one reportable segment.

2.11 EARNINGS PER SHARE

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders (after deducting attributable
taxes) by the weighted average number of equity
shares outstanding during the period.

For the purpose of calculating diluted earnings
per share, the net profit or loss for the period
attributable to equity shareholders and the
weighted average number of shares outstanding
during the period are adjusted for the effects of
all dilutive potential equity shares.

2.12 SECURITIES PREMIUM

Securities premium is credited when shares are
issued at premium. It can be used to issue bonus
shares, to provide for premium on redemption
of shares and issue expenses of securities which
qualify as equity instruments.

2.13 STATEMENT OF CASH FLOW

Statement of Cash Flows is prepared segregating
the cash flows into operating, investing and
financing activities. Cash flow from operating
activities is reported using indirect method.

Cash and cash equivalents (including bank
balances) shown in the Statement of Cash Flows
exclude items which are not available for general
use as on the date of Balance Sheet

2.14 STANDARD ISSUED BUT NOT YET
EFFECTIVE

No new standards as notified by Ministry of
Corporate Affairs (“MCA”), through Companies
(Indian Accounting Standards) Amendment
Rules, 2019 and Companies (Indian Accounting
Standards) Second Amendment Rules are
effective for the current year.

12. 1) NATURE OF SECURITY

i) Refinance from National Housing Bank (NHB) and other Term Loans from banks and Financial
Institutions are secured by first and exclusively charge on the specific book debts/receivables of
the company and irrevocable power of attorney given by the company in favour of Banks/FI's/NHB
for recovery of dues, Lien on specific FDR's and Personal Guarantee of specific Directors and Third
party guarantee.

ii) Redeemable Non convertible debentures are secured by first and exclusive charge on specific
assets by way of hypothecation of book debts in favour of debenture trustee.

iii) Car loans secured against hypothecation of Specific Motor Cars of Company and personal guarantee
of specified directors and third party guarantee

iv) The company has not made any default in repayment of instalments due over the reporting year.

v) The Repayment of the borrowing is done in monthly, quarterly, half yearly & annual Instalment as
per the sanctioned terms.

vi) All the borrowings are availed from India and not from outside India.

NOTE 15.2:

Terms/ Rights attached to equity shares

The company has only one class of Equity shares having par value of ' 10 each. Each holder of equity shares is
entitled to one vote per share.

The holders of equity shares are entitled to dividends,if any,proposed by the Board of Directors and approved
by Shareholders at the Annual General Meeting.

In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the
remaning assets of the company, after distribution of all preferential amounts.

However, no such preferential amounts exist currently. The distribution will be in proportion to the number of
equity shares held by the shareholders.

NOTE 16.1:

Nature and purpose of reserve

Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. 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.

Special Reserve

As per Section 29C of the National Housing Bank Act, 1987, the Company is required to transfer at least 20%
of its net profit every year to a reserve before any dividend is declared. For this purpose any Special Reserve
created by the Company under Section 36(1) (viii) of the Income Tax Act, 1961 is considered to be an eligible
transfer. The Company has transferred an amount of ' 490 Lakhs (Previous year '421.18 Lakhs) to Special
Reserve in terms of Section 36(1) (viii) of the Income Tax Act, 1961.

General reserve

It is a free reserve which is created by appropriation from profts of the current year and/or undistributed profts
of previous years, before declaration of dividend duly complying with any regulations in this regard.

Retained earnings

Retained earnings represents the amount of accumulated earnings of the Company

b. Defined Obligation Benefit:

The company provides gratuity to its employees which are defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation.

The details of post-retirement benefits for the employees (including Key Management Personnel) as
mentioned hereunder are based on the report as provided by Independent Actuary as mentioned above
and relied upon by the Auditors.

Sensitivity Analysis

The sensitivity analysis have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected
benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as
some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation
has been calculated using the projected unit credit method at the end of the reporting period, which is the
same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years

Notes-

• Gratuity is payable as per entity's scheme as detailed in the report.

• Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI).

• Salary escalation & attrition rate are considered as advised by the entity; they appear to be in line with
the industry practice considering promotion and demand & supply of the employees.

• Maturity Analysis of Benefit Payments is undiscounted cash flows considering future salary, attrition &
death in respective year for members as mentioned above.

• Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation.

• Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cash flow
timing, where weights are derived from the present value of each cash flow to the total present value.

• Any benefit payment and contribution to plan assets is considered to occur end of the year to depict
liability and fund movement in the disclosures.

• Value of asset provided by the entity is not audited by us and the same is considered as unaudited fair
value of plan asset as on the reporting date.

• In absence of specific communication as regards contribution by the entity, Expected Contribution in
the Next Year is considered as the sum of net liability/assets at the end of the current year and current
service cost for next year, subject to maximum allowable contribution to the Plan Assets over the next
year as per the Income Tax Rules.

Characteristics of defined benefit plan:

The entity has a defined benefit gratuity plan in India (funded). The entity's defined benefit gratuity plan
is a final salary plan for employees, which requires contributions to be made to a separately administered
fund. The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are
responsible for the administration of the plan assets and for the definition of the investment strategy

Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value
of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market
value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary of the members more than assumed level will increase
the plan's liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate
which is determined by reference to market yields at the end of the reporting period on government bonds.
If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has
a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is
invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age
only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance
company and a default will wipe out all the assets. Although probability of this is very less as insurance
companies have to follow regulatory guidelines which mitigate risk.

During the year, there were no plan amendments, curtailments and settlements.

A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is
done as guided by rule 103 of Income Tax Rules, 1962.

Notes-

• All the Related party transactions are in ordinary course of business and at arm's length basis.

• Expenses towards gratuity are determined actuarially on overall Company basis at the end of the year
and, accordingly have not been considered in the above information.

• The transactions disclosed above are excluding GST.

• During the Financial Year 2024-25, no payment is made to Non-Executive Directors and Independent
Directors except Rent to Mrs. Seema Jain & Sitting Fee Amount to Non-Executive Director/ Independent
Director as disclosed above.

NOTE 35: SEGMENT REPORTING:

35.1 Operating Segment: The Company's main business is to provide loans for purchase, construction, repairs
and renovation etc. of residential house. All other activities of the company revolve around the main business.
As such, there are no separate reportable segments, as per IND AS 108 “Operating Segment” specified under
section 133 of the Companies Act, 2013. Accordingly, the amounts appearing in the financial statements relate
to the Company's single business segment.

35.2 Entity Wide Disclosures: No revenue from transactions with a single external customer or counterparty
amounted to 10% or more of the Company's total revenue in the year ended March 31, 2025 and March 31, 2024.

The Company operates in single geography i.e. India and therefore geographical information is not required to
be disclosed separately.

NOTE 36: LEASE DISCLOSURE:

Where the Company is the lessee:

The Company has entered into agreements for taking its office premises under lease/rent agreements.
These agreements are for tenures between 11 months and 10 years and majority of the agreements are renewable
by mutual consent on mutually agreeable terms, lease rentals have an escalation upto 10%. Leases for which the
lease term is less than 12 months have been accounted as short term leases.

The Company had acquired equity instrument for the purpose of holding for a longer duration and not for the
purpose of selling in near term for short term profit. Such instruments have been categorized as FVTOCI.

a. Fair Value Hierarchy:

The fair values of the financial assets and liabilities are included at the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date.

This section explains the judgments and estimates made in determining the fair values of the financial
instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for
which fair values are disclosed in the financial statements. To provide an indication about the reliability of
the inputs used in determining fair value, the Company has classified its financial instruments into the three
levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

* Other financial liabilities exclude liability pertaining to lease liability covered under Indian accounting standard - 116
(March 31, 2025: ' 1,164.56 Lakhs ; March 31, 2024: ' 1,284.90 Lakhs).

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed
equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which
are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual
funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded
bonds) is determined using valuation techniques which maximize the use of observable market data
and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in level 2, , this level of hierarchy includes financial
assets, measured using inputs other than quoted prices included within Level 1 that are observable for the
asset, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3: This level of hierarchy includes financial instruments measured using inputs that are not based
on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a
valuation model based on assumptions that are neither supported by prices from observable current market
transactions in the same instrument nor are they based on available market data..

There were no transfers between levels 1, 2 and 3 during the year.

The Company's policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the
end of the reporting period.

b. Valuation technique used to determine fair value

The fair value of a financial instrument on initial recognition is normally the transaction price (fair value
of the consideration given or received). Subsequent to initial recognition, the Company determines the
fair value of financial instruments that are quoted in active markets using the quoted prices and using
valuation techniques for other instruments. Valuation techniques include discounted cash flow method,
market comparable method, recent transactions happened in the Company and other valuation models.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the
use of unobservable inputs.

The Fair Value of the financial assets and financial liabilities are considered at the amount, at which the
instrument could be exchanged in current transaction between willing parties, other than in forced or
liquidation sale.

Other Financial Assets and Liabilities

With respect to Bank Balances and Cash and Cash Equivalents (Refer Note 3 (a) and (b)), Other Financial
Assets (Refer Note 6), Trade Payables (Refer Note 11) and Other Financial Liabilities (Refer Note 13), the
carrying value approximates the fair value.

NOTE 38: FINACIAL RISK MANANGEMENT:

The Company is exposed to certain financial risks namely credit risk, liquidity risk and market risk i.e. interest risk,
foreign currency risk and price risk. The Company's primary focus is to achieve better predictability of financial
markets and minimise potential adverse effects on its financial performance by effectively managing the risks on
its financial assets and liabilities.

The principal objective in Company's risk management processes is to measure and monitor the various risks
associated with the Company and to follow policies and procedures to address such risks. The Company's risk
management framework is driven by its Board and its subcommittees including the Audit Committee, the Asset
Liability Management Committee and the Risk Management Committee. The Company gives due importance
to prudent lending practices and have implemented suitable measures for risk mitigation, which include
verification of credit history from credit information bureaus, personal verification of a customer's business and
residence, valuation of collateral, technical and legal verifications, conservative loan to value, and required term
cover for insurance

a. Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on
time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial
liabilities - borrowing, trade payables and other financial liabilities.

The Company's Asset Liability Committee (ALCO) monitors asset liability mismatches to ensure there are no
imbalances or excessive concentrations on either side of the balance sheet.

The Company continuously monitors liquidity in the market; and as a part of its ALCO strategy, it maintains
a liquidity buffer managed by an active treasury desk to reduce this risk.

Notes:

(i) Debt securities and borrowings (other than debt securities) carry adjustment of unamortized processing fee (EIR).

(ii) Other financial liabilities exclude liability pertaining to lease liability covered under Indian accounting standard - 116
(March 31, 2025: ' 1,164.56 Lakhs; March 31, 2024: ' 1,284.90 Lakhs).

(iii) Amounts repayable on demand are included in ‘within 1 year'

b. Market Risk

Market risk is the risk that the fair value of future cash flow of financial instruments will fluctuate due to
changes in the market variables such as interest rates, foreign exchange rates and equity prices. The Company
does not have any exposure to foreign exchange rate and equity price risk

(i) Foreign currency risk - Foreign currency risk is the risk that the fair value or future cash flows of an
exposure will fluctuate because of changes in foreign currency rates.

There was no foreign currency exposure as at March 31, 2025 and March 31, 2024.

(ii) Interest Rate Risk Exposure- The Company is subject to interest rate risk, since the rates of loans and
borrowings might fluctuate over the tenure of instrument. Interest rates are highly sensitive to many
factors beyond control, including the monetary policies of the Reserve Bank of India, deregulation of
the financial sector in India, domestic and international economic and political conditions, inflation and
other factors. In order to manage interest rate risk, the Company seeks to optimize borrowing profile
between short-term and long-term loans. The liabilities are categorized into various time buckets based
on their maturities and Asset Liability Management Committee supervise an interest rate sensitivity
report periodically for assessment of interest rate risks

(iii) Price Risk Exposure- The Company's exposure to price risk arises from investments held by the Company
and classified in the balance sheet at fair value through profit or loss. The Company's exposure to
Mutual Funds is not significant and hence the Company's exposure to price risk is insignificant.

c. Credit Risk Management

Credit risk is the risk that the Company will incur a loss because the counterparty might fail to discharge
their contractual obligations. The Company has a comprehensive framework for monitoring credit quality of
its retail and other loans primarily based on number of days past due.

The credit risk is governed by the Credit Policy approved by the Board of Directors. The Policy outlines the
type of products that can be offered, customer categories, the targeted customer profile and the credit
approval process and limits.

The Company measures, monitors and manages credit risk at an individual borrower level and at the
group exposure level for other borrowers. The credit risk for retail borrowers is being managed at portfolio
level for both Home loans and Mortgage Loans. The Company has a structured and standardized credit
approval process, which includes a well-established procedure of comprehensive credit appraisal. The Risk
Management Policy addresses the recognition, measurement, monitoring and reporting of the Credit risk.
The policy is amended periodically to ensure compliance with the guidelines of the RBI as well as other
regulatory bodies

Credit Risk Methodology
Housing and Other Property Loans:

Company's customers for retail loans are primarily low and middle income segment, salaried and
self-employed individuals.

The Company's credit officers evaluate credit proposals on the basis of active credit policies as on the date
of approval. The criteria typically include factors such as the borrower's income & obligations, the loan-to-
value ratio, fixed obligation to income ratio and demographic parameters subject to regulatory guidelines.
Any deviations need to be approved at the designated levels.

The various process controls such as KYC check, Credit Bureau Report analysis are undertaken. In addition
to due diligence process including visits to offices and homes in the case of loans made to retail borrowers
done by External agencies such as field investigation agencies, company's staff also performs comprehensive
due diligence process including visits to customer's business and residence premises.

Company analyses the portfolio performance of each product segment regularly, and use these as inputs
in revising the product programs, target market definitions and credit assessment criteria to meet the twin
objectives of combining volume growth and maintenance of asset quality.

The loans are secured by the mortgage of the borrowers' property and third party guarantee.

Portfolio quality, credit limits, collateral quality and credit exposure limits are regularly monitored at
various levels.

The Company considers a financial instrument as defaulted and considers it as Stage 3 (credit-impaired) for
expected credit loss (ECL) calculations, when the assets become equal to or more than 90 days past due
on its contractual payments. These assets continue to be classified as Stage 3 till they become standard, in
accordance with RBI guidelines and the Board approved ECL Policy.

The following table sets out information about credit quality of loans measured at amortized cost based on
days past due information. The amount represents gross carrying amount.

Risk Management and Portfolio Review

The Company ensures effective monitoring of credit facilities through a risk-based asset review framework
under which the frequency of asset review is determined depending on the risk associated with the product.

For both Housing and other borrowers, the company staff verifies adherence to the terms of the credit
approval prior to the commitment and disbursement of credit facilities.

It also reviews the completeness of documentation, creation of security and compliance with
regulatory guidelines.

The Company regularly reviews the credit quality of the portfolio. A summary of the reviews carried out is
submitted to the concern teams.

Collateral and other credit enhancements- The Company holds collateral and other credit enhancements
to cover its credit risk associated with its Loans, credit risk associated are mitigated because the same are
secured against the collateral.

Impairment assessment (Expected Credit Loss)

The reference below show where the Company's impairment assessment and measurement approach is set
out in these notes.

Definition of Default

The Company considers a financial instrument as defaulted and considers it as Stage 3 (credit-impaired) for
expected credit loss (ECL) calculations, when the assets become equal to or more than 90 days past due on
its contractual payments. These assets continue to be classified as Stage 3 till the assets become standard,
in accordance with RBI guidelines and the ECL Policy.

Exposure at Default (EAD) The exposure at default (EAD) represents the gross carrying amount of the
financial instruments subject to the impairment calculation, addressing both the client's ability to increase
its exposure while approaching default and potential early repayments too.

To calculate the EAD for a Stage 1 loan, the Company assesses the possible default events within 12 months
for the calculation of the 12 months ECL. For Stage 2 and Stage 3 financial assets, the exposure at default
is considered for events over the lifetime of the instruments.

Probability of Default (PD) represents the likelihood of default over a defined time horizon.

Loss Given Default (LGD) LGD has been calculated by taking into account the recovery experience across
the Company's loan accounts post default. The recoveries are tracked and discounted to the date of default
using the interest rate.

Delinquency buckets have been considered as the basis for the staging of all loans with for FY 24 & FY 25

• 0-30 days past due loans classified as Stage 1

• 31- 89 days past due loans classified as Stage 2

• 90 days or above past due loans classified as Stage 3.

Whereas delinquency buckets have been considered as the basis for the staging of all loans with for FY 23:

• 0-60 days past due loans classified as Stage 1

• 61- 89 days past due loans classified as Stage 2

• 90 days or above past due loans classified as Stage 3.

For individual and other loans vintage analysis has been used to create PD terms structure which incorporates
both 12 months PD for Stage 1 loans and life time PD for stage 2 and 3 loans. The vintage analysis captures
a vintage default experience across a particular portfolio by tracking the yearly slippages from advances
originating in a particular year. The vintage slippage experience/default rate is then used to build the PD
term structure. This methodology has been used to create the LGD vintage which takes into account the
recovery experience across accounts of a particular portfolio post default. The recoveries are tracked and
discounted to the date of default using the interest rate.

Significant increase in credit risk: The Company continuously monitors all assets subject to ECL. In order to
determine whether an instrument or a portfolio of instruments is subject to 12 months ECL or Lifetime ECL,
the Company assesses whether there has been a significant increase in credit risk since initial recognition.
The Company considers an exposure to have significantly increased in credit risk when contractual payments
are more than 30 days past due. When estimating ECLs on a collective basis for a group of similar assets, the
Company applies the same principles for assessing whether there has been a significant increase in credit
risk since initial recognition.

Grouping financial assets measured on a collective basis: As explained above, the Company calculates ECL
on a collective basis on the following asset classes:

- Housing Loan

- Property Loan

Risk assessment model

The Company has designed and operates its risk assessment model that factors in both quantitative as well
as qualitative information on the loans and the borrowers. The model uses historical empirical data to arrive
at factors that are indicative of future credit risk and segments the portfolio on the basis of combinations of
these parameters into smaller homogenous portfolios from the perspective of credit behaviour.

Collateral

The Company holds collateral to mitigate credit risk associated with financial assets. The main types of
collateral majorly include residential properties. The collateral presented relates to instruments that are
measured at amortised cost.

Assets possessed under Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002:

Loan Portfolio includes gross loans amounting to ' 161.40 lakhs (March 31, 2024: ' 116.62 Lakhs) against
which the Company has taken possession of the properties under Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002 and held such properties for disposal.
The value of assets possessed against these loans is ' 307.34 lakhs. (March 31, 2024: ' 167.70 Lakhs).

d. Regulatory Risk

The Company requires certain statutory and regulatory approvals for conducting business and failure to
obtain retain or renew these approvals in a timely manner, may adversely affect operations. Any change
in laws or regulations made by the government or a regulatory body that governs the business of the
Company may increase the costs of operating the business, reduce the attractiveness of investment and /
or change the competitive landscape.

NOTE 40: CAPITAL MANAGEMENT

The Company's capital management strategy is to effectively determine, raise and deploy capital to cover
risk inherent in business and meeting the capital adequacy requirements of the Reserve Bank of India (RBI).
The same is done through a mix of either equity and / or combination of short term / long term debt as may
be appropriate. The Company determines the amount of capital required on the basis of operations and capital
expenditure. The adequacy of the Company's capital is monitored using, among other measures, the regulations
issued by the RBI. The capital structure is monitored on the basis of net debt to equity and maturity profile of
overall debt portfolio. The Company's policy is in line with Master Direction - Non-Banking Financial Company
- Housing Finance Company (Reserve Bank) Directions, 2021 which currently permits HFCs to borrow up to 12
times of their net owned funds (“NOF”). Refer NOTE for Capital to risk-weighted assets ratio (CRAR).

The Company has complied in full with all its externally imposed capital requirements over the reported periods.

The Company has issued and allotted 5,00,000 share warrants on private placement basis to promoter and
non-promoter investor out of which 3,00,000 warrants were converted into equity shares of the Company in the
month of March 2024 and 2,00,000 warrants were converted into Equity Shares by May 24, 2024.

In Sep-24, 7,76,263 Equity shares were issued on preferential basis. In Oct-24 ,15,500 Shares while in Dec -24,
16,075 Shares were issued and alloted in ESOP Scheme. In March 2025 ,13,68,000 Shares were issued and alloted
on preferential basis.

a. Risk management

The Company's objectives when managing capital are to :

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders, and

• Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Consistent with
others in the industry, the Company monitors capital on the basis of the following gearing ratio: Net debt (total
borrowings net of cash and cash equivalents) divided by Total 'equity' (as shown in the balance sheet).

Loan covenants

Under the terms of the borrowing facilities, the Company has complied with the covenants throughout the
reporting period.

NOTE 41:

There are no indications which reflects that any of the assets of the company had got impaired from its potential
use and therefore no impairment loss was required to be accounted in the current year as per Indian Accounting
Standard on 'Impairment of Assets' (Ind AS 36).

NOTE 42:

The Company does not have any exposure in foreign currency at the year end.

NOTE 43:

The Indian Parliament has approved the Code on Social Security, 2020 which subsumes the Provident Fund and
the Gratuity Act and rules thereunder. The Ministry of Labour and Employment also released draft rules thereunder
on 13 November 2020 and has invited suggestions from stakeholders which are under active consideration by
the Ministry. The Company will evaluate the rules, assess the impact, if any, and account for the same, once the
rules are notified and become effective.

NOTE 44:

The Company has not invoked or implemented resolution plan under the “Resolution Framework for COVID-19
related Stress” as per RBI circular dated 6 August 2020 for any of its borrower accounts.

NOTE 45:

The Company has not invoked or implemented resolution plan under the “RBI Resolution Framework - 2.0:
Resolution of COVID-19 related stress of Individuals and Small Businesses dated 05 May 2021 with reference to
disclosures stated under Format-B prescribed in the Resolution Framework - 1.0.

Pursuant to the RBI circular dated 12 November 2 0 2 1 - “ Prudential norms on Income Recognition, Asset
Classification and Provisioning (IRACP) pertaining to Advances - Clarifications”, on 15 February 2022, the
RBI allowed deferment pertaining to the up gradation of Non Performing accounts till 30 September 2022.
Hence, the Company has opted for such deferment. There is no material impact on Financial Results for period
ended March 31, 2025 due to such revised classification.

NOTE 47:

All the lease agreements are duly executed in favour of the Company for properties where the Company is the lessee.
NOTE 48:

No proceedings have been initiated or pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 and rules made thereunder, as at March 31, 2025 and March 31, 2024.

NOTE 49:

The Company is not a declared wilful defaulter by any bank or financial Institution or other lender, in accordance
with the guidelines on wilful defaulters issued by the Reserve Bank of India, during the year ended March 31,
2025 and March 31, 2024.

NOTE 50:

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 during the year ended March 31, 2025 and March 31, 2024.

NOTE 51: REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES
(ROC)

No charges or satisfaction yet to be registered with ROC beyond the statutory period

The Company has borrowings from banks and financial institutions on the basis of security of current assets and
the quarterly returns filed by the Company with the banks and financial institutions are in accordance with the
books of accounts of the Company for the respective quarters.

NOTE 54:

The Company has taken borrowings from banks and financial institutions and utilized them for the specific
purpose for which they were taken as at the Balance sheet date. Unutilized funds as at March 31, 2025 are held
by the Company in the form of short term fund till the time the utilization is made subsequently.

NOTE 55:

There have been no transactions which have not been recorded in the books of accounts, that have been
surrendered or disclosed as income during the year ended March 31, 2025 and March 31, 2024, in the tax
assessments under the Income Tax Act, 1961. There have been no previously unrecorded income and related
assets which were to be properly recorded in the books of account during the year ended March 31, 2025 and
March 31, 2024.

NOTE 56:

As a part of normal lending business, the company grants loans and advances on the basis of security / guarantee
provided by the Borrower/ co-borrower. These transactions are conducted after exercising proper due diligence.
Other than the transactions described above-

a. No funds have been advanced or loaned or invested by the Company to or in any other person(s) or
entity(ies) including foreign entities (“Intermediaries”) with the understanding that the Intermediary shall
lend or invest in a party identified by or on behalf of the Company ( Ultimate Beneficiaries);

b. No funds have been received by the Company 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.

NOTE 57:

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31,
2025 and March 31, 2024.

NOTE 58:

The accounting software used by the Company to maintain its Books of account have a feature of recording
audit trail (edit log) facility and the same has been operated throughout the year for all transactions recorded in
the software as also in database maintained with respect thereto.

NOTE 59:

Disclosures required by the RBI circular on Implementation of Indian Accounting Standards dated 13 March 2020
including disclosures as required under RBI vide Scale Based Regulation (SBR): A Revised Regulatory Framework
for NBFCs dated 22 October 2021

The following disclosures are in accordance with Master Direction - Non-Banking Financial Company - Housing
Finance Company (Reserve Bank) Directions, 2021 dated February 17, 2021 issued by the Reserve Bank of India.

Regulatory ratios, limits and disclosures are based on Ind AS figures in accordance with RBI circular dated
October 22, 2020 read with RBI circular dated March 13, 2020 relating to Implementation of Ind AS.

(vi) Institutional set-up for liquidity risk management

The Board of Directors of the Company has an overall responsibility and oversight for the management
of all the risks, including liquidity risk, to which the Company is exposed to in the course of conducting
its business. The Board approves the governance structure, policies, strategy and the risk limits for the
management of liquidity risk.

The Board of Directors of the Company has constituted an Asset Liability Committee (ALCO). The main
objective of ALCO is to assist the Board and Risk Management Committee in effective discharge of the
responsibilities of asset-liability management, market risk management, liquidity and interest rate risk
management and also to ensure adherence to risk tolerance/limits set up by the Board. ALCO provides
guidance and directions in terms of interest rate, liquidity, funding sources, and investment of surplus funds.

The Risk Management Committee constituted by the Board of Directors is primarily responsible for the
effective supervision, evaluation, monitoring and review of various aspects and types of risks, including
liquidity risk, faced by the Company.

NOTE 62 DISCLOSURE IN TERMS OF IN ACCORDANCE WITH MASTER DIRECTION - NON¬
BANKING FINANCIAL COMPANY - HOUSING FINANCE COMPANY (RESERVE BANK)

DIRECTIONS, 2021 DATED FEBRUARY 17, 2021 ISSUED BY THE RESERVE BANK OF INDIA
READ WITH RBI CIRCULAR NO. RBI/DNBS/2016-17/49 MASTER DIRECTION DNBS.
PPD.01/66.15.001/2016- 17 ON MONITORING OF FRAUDS IN NBFCS
There were no cases of frauds reported during the Current year & Previous Year.

Note: Loan Portfolio includes gross loans amounting to ' 161.40 lakhs (March 31, 2024: ' 116.82 Lakhs) against which the
Company has taken possession of the properties under Securitisation and Reconstruction of Financial Assets and Enforcement
of Security Interest Act, 2002 and held such properties for disposal. The value of assets possessed against these loans is
' 307.34 lakhs. (March 31, 2024: ' 167.70 Lakhs).

"Current investment means an investment which is by its nature readily realizable and is intended to be held for not more than
one year from the date on which such investment is made.

NOTE 64:

There are no Micro, Small and Medium Enterprises (MSME) to whom the Company owes dues, which are
outstanding for more than 45 days as at 31-03-2025. This information as required to be disclosed under the
Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties
have been identified on the basis at information available with the Company. (Refer Note 11)

NOTE 65:

There are no amounts to be reflected under payable to Investor Protection Fund.

NOTE 66:

In the opinion of management the Financial Assets are approximately of the value as stated if realized in the
ordinary course of business unless otherwise stated. The provisions for all liabilities are adequate and not in
excess / shortage of the amount reasonably necessary.

NOTE 67:

During the year, there was one employee, Mr. Vinod K. Jain, Managing Director employed throughout the year
who was in receipt of remuneration of ' 339.29 lakhs (PY ' 319.49 lakhs) per annum.

NOTE 68:

Figures for the previous year have been regrouped/ re-arranged wherever considered necessary to confirm
to the figures presented in the current year. There have been no events after the reporting date that requires
disclosure in these financial statements.

NOTE 69:

The Company has complied with all the prudential norms prescribed by Reserve bank of India on income
recognition, accounting standards, assets classification, provisions for bad & doubtful debts, capital adequacy
and credit/investment concentration.

Notes on Financial statements 1 to 70 are annexed and forming part of the Balance Sheet and Statement
of Profit & Loss.

As per our report of even date attached For & on Behalf of the Board

For M/S Valawat & Associates,

Chartered Accountants Vinod K. Jain Seema Jain

FRN : 003623C Managing Director Director

(DIN:00248843) (DIN:00248706)

Place: Udaipur Place: Udaipur

Jinendra Jain Divya Kothari Ashok Kumar

Partner Company Secretary Chief Financial Officer

Membership No. 072995 (M.No. A57307) Place: Udaipur

Place : Udaipur
Date : 30-04-2025