Note 13.4. Terms / rights attached to equity shares

The Company has one class of equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note 14.1. Nature and purpose of reserve

1. Special Reserve Fund u/s 45-IA Of the Reserve Bank of India Act, 1934 (the "RBI Act, 1934") Reserve u/s. 45-IA of RBI Act, 1934 is created in accordance with section 45 1C (1) of the RBI Act, 1934. As per Section 45 1C (2) of the RBI Act, 1934, no appropriation of any sum from this reserve fund shall be made by the NBFC except for the purpose as may be specified by RBI.

2. 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Act 2013, the requirement to mandatoriiy transfer a specified percentage of the net profit to general reserve has been withdrawn.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 utilized only in accordance with the specific requirements of Companies Act, 2013.

3. Surplus in the Statement of Profit and Loss

Surplus in the statement of profit and loss is the accumulated available profit of the Company carried forward from earlier years. These reserves are free reserves which can be utilized for any purpose as may be required.

4. FVQCI Equity Investments

The Company has elected to recognize changes in the fair value of investments in equity securities (other than investment in subsidiary) in other comprehensive income. These changes are accumulated within the FVOCI equity inv How estments reserve within equity.

Explanatory Note

As on 31st March 2024, the Company had a receivable of =£1,44,30,342, which was not recoverable. The company tried all possible measures before taking this decision and it is now being decided to write off this receivable balance in FY 2024-25.

Note 24, Corporate social responsibility ("CSR") expenses:

The company does not come within the preview of CSR as per section 135 of the act.

Note 25. Leasing arrangements

Operating lease commitments - as lessor - Nil

Note 26. Segment reporting:

The Company is engaged primarily on the business of "Financing" only, taking into account the risks and returns, the organization structure and the internal reporting systems. All the operations of the Company are in India. Accordingly, there are no separate reportable segments as per Ind AS 108 - "Operating segments".

Note 28. Under the Micro. Small and Medium Enterprises Development Act, 2006

Based on the intimation received by the Company, there are no Micro, Small & Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2025. This information as required to be disclosed under the Micro, Small and Medium Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the information available with the Company.

Note 29.3 Derivatives

The Company has not entered into any derivative transactions and hence the disclosure required has not been made. Note 29.4 Disclosures relating to securitization

The Company has not entered into any securitization / assignment transactions and hence the disclosure required has not been made.

Note 29.5 Details of financial assets sold to securitization L reconstruction Company for asset reconstruction

The Company has not sold financial assets to securitization / reconstruction Company for asset reconstruction during the year (previous year Nil)

Note 29.6 Details of assignment transactions undertaken by NBFCs

The Company has not undertaken any assignment transactions and hence the disclosure required has not been made. Note 29.7 Details of non-performance financial assets purchased/ sold.

The Company has not purchased or sold non-performing financial assets during the year (previous year Nil).

Note 29.13 Unsecured advances

a) Refer Note no. 6(B) to the financial statements.

b) The Company has not granted any advances against in taking securities (31st March 2024: Nil).

Note 29.14 Registration number obtained from RBI:

The registration no is - 13.00182 vide certificate dtd. 02.03.1998

Note 29.15 Disclosure of penalties imposed by RBI and other regulators

During the financial year ended 31 March 2025, no penalties have been imposed by RBI and oth regulators (31 March 2024: Nil).

Note 29.16 Ratings assigned bv credit rating agencies and migration of ratings during the year -The Company has not got its credit rating done by any rating agency.

Note 29.17 Remuneration of directors

The company has not paid any remuneration to its directors during the year

Note 29.26 Overseas assets (for those with joint ventures and subsidiaries abroad)

There is no overseas asset owned by the Company.

Note 29.27 Off-balance sheet SPVs sponsored (which required to be consolidated per accounting norms)

The company is now required to provide its financial statements under Ind AS, which require all securitization related SPV’s to be consolidated in the books of the originator (the Company). Accordingly, there are no SPV's sponsored during the year.

All Ind AS issued by MCA are applicable including for valuation of investments and other assets as also* assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up / fair value / NAV in respect of unquoted investments shall be disclosed irrespective of whether they are classified as long term or current in (5) above.

8. Measurement of fair values

i) Valuation techniques and significant unobservable inputs

The canying amounts of financial assets and liabilities which are at amortized cost are considered tobe the same as their fair values as there is no material differences in the carrying values presented.

ii) Financial instruments fair value

The fair value of financial instruments as referred to in note (A) above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurement).

The categories used are as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices;

Level 2: The fair value of financial instruments that are not traded in active market is determined using valuation technique which maximizes the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value on instrument are observable, the instrument is included in level 2; and

Level 3: If one or more of significant input is not based on observable market data, the instrument is included in level 3.

iii) Transfers between levels I and II

There has been no transfer in between level 1, level 2 and level 3 C. Capital

The Company maintains an actively managed capital base to cover risks inherent in the business and is meeting the capital adequacy requirements of the local banking supervisor, RBI. The adequacy of the Company's capital is monitored using, among other measures, the regulations issued by RBI.

The Company has complied in full with all its externally imposed capital requirements over the reported period. Equity share capital and other equity are consider the purpose of Company's capital management.

Financial assets measured on a collective

The company splits its exposure into smaller homogeneous portfolios, based on shared credit risk characteristics, as described below in the following order:

loans are Secured

if the loans are determined to be secured - Nature of loan i.e., based on the nature of loan

Significant increase in credit risk

The company considers an exposure to have significant increase in credit risk when the borrou crosses 30 DPD but is within 90 DPD.

Impairment assessment

The company considers a financial instrument defaulted and therefore stage 3 (credit impaired) for ECL calculations in all cases when the borrower crosses 90 days past due on its contractual payments.

Exposure at default

*^The exposure at default (HAD) represents the gross carrying amount of the financial instrument

subject to the impairment calculation.

•

Loss given default

The credit risk assessment is based on a standardized LGD assessment framework that incorporates the probability of default and subsequent recoveries, discounted.

Current economic data and forward-looking economic forecasts and scenarios are used in order to determine the Ind AS 109 LGD rate. The company uses data obtained from third party sources and combines such data with inputs to the Company's ECL models including determining the weights attributable to the multiple, scenarios.

Collateral and other credit enhancements

The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are in place covering the acceptability and valuation of each type of collate]

During the year the company has not advanced loan to any third party.

The company also obtains guarantees from parent companies for loans to then* subsidiaries. Management monitors the market value of collateral and will request additional collateral in accordance with the underlying agreement.

Liquidity risk arises because of the possibility that the Group might be unable to meet its payment obligations when they fall due as a result of mismatch in the timing of cash flows under both normal and stress circumstances. To limit this risk, management has devised for diversified funding sources, and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on daily basis.

Maturity profile of financial liabilities

Since the company no financial liabilities in the form of borrowing, the maturity profiles of the undiscounted cash flows are not applicable.

c) Market risk

Market risk represents the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates, foreign exchange rates and equity prices.

Note 35 Revenue from contracts with customers.

During the year the company did not earn revenue from Contracts with customers and hence reconciliation to profit and loss account is not applicable

Note 36 Events occurring after the balance sheet date

There have been no events after the reporting date that require disclosure in these financial statements.

Note 37 Standards issued but not vet effective

There are neither new standards nor amendments to existing standards which are effective for the annual period beginning from 1st April 2023.

Note 38 Previous year comparatives

Previous year's figures have been regrouped/reclassified wherever necessary, to conform to currei year's classification.