Capital Management

The Company maintains an actively managed capital base to cover risks inherent in the business which includes issued equity capital and all other equity reserves attributable to equity holders of the Company. The primary objectives of the Company's capital management is to ensure that the Company complies with externally imposed capital requirements and maintains healthy capital ratios in order to support its business and to maximise 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.

All the financial assets and liabilities have short-term maturity (less than twelve months) and thus their carrying amounts are a reasonable approximation of their fair value.

Fair Value Hierarchy

The following provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an active market (Level 1): Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Valuation techniques with observable inputs (Level 2): Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). It includes fair value of the financial instruments that are not traded in an active market and are determined by using valuation techniques.

These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on the company specific estimated. If all significant inputs required to fair value an instrument are observable, then the instrument is included in level 2.

Valuation techniques with significant unobservable inputs (Level 3): If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

24 Risk Management

Whilst risk is inherent in the Company's activities, it is managed through an integrated risk management framework including ongoing identification, measurement and monitoring, subject to risk limits and other controls. This process of risk management is critical to the Company's continuing profitability and each individual within the Company is accountable for the risk exposures relating to his or her responsibilities. The Company is mainly exposed to market risk, liquidity risk and credit risk. It is also subject to various operating and business risks.

The Board of Directors are responsible for the overall risk management approach and for approving the risk management strategies and principles.

The Company has a robust Risk management framework to identify, evaluate business risk and opportunities. This framework seeks to create transparency, minimize adverse impact on the business objectives and enhance the competitive advantage.

The framework has a different risk model which helps in identifying risk trends, exposure and potential impact analysis at a company level.

i Market Risk

The Company's Financial Instruments are exposed to market changes as are summarised below:

Foreign currency risk : The Company does not have any exposure to foreign currency. Hence, any fluctuations on account of foreign currency has not arisen.

Equity price risk: The Company does not have any investments in equity instruments. Hence, there are no Equity price risk Interest rate risk: The Company is not exposed to interest rate risk as it has borrowings at fixed rate of interest.

ii Liquidity Risk

Liquidity risk is the riskthat the Company does not have sufficient financial resources to meet its obligations as they fall due, or will have to do so at an excessive cost. This risk arises from mismatches in the timing of cash flows which is inherent in all finance driven organisations and can be affected by a range of Company-specific and market-wide events.

iii Credit risk

Credit risk is the risk that the Company will incur a loss because its customers or counterparties fail to discharge their contractual obligations.

The principal business of the Company is to provide financing in the form of loans to its clients. Credit Risk is the risk of default of the counterparty to repay its obligations in a timely manner resulting in financial loss.Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.

In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific guidelines to focus on maintaining a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

25 The Company does not hold any Benami Property, nor there are any proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.

26 The Company has no borrowings from banks or financial institutions on the basis of security of current assets, there is no requirement of filing of quarterly returns or statements.

27 The Company is not declared to be a wilful defaulter by any bank or financial institution or other lender.

28 Relationship with Struck off Companies:

To the best of knowledge and information of the Management, the Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

29 There are no charges or satisfaction pending to be registered with Registrar of Companies.

30 Since the Company is NBFC - Base Layer (NBFC-BL) not availing public funds, financial ratios (CRAR and liquidity coverage ratio) are not applicable and these ratios have not been prescribed by RBI for such NBFC. Hence, the same is not being disclosed.

31 The Company has complied with permitted number of layers of companies.

32 The Company is not party to any approved Scheme(s) of Arrangements.

33 Utilisation of Borrowed funds and share premium:

(A) The company has not advanced or loaned or invested funds (obtained from any source) 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

(i) 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

(ii) 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

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

34 There are no contingent liabilities in knowledge of management of the company

35 There are no outstanding commitments.

36 There are no foreign currency transactions entered into by the company

37 As at 31st March, 2025 and as at 31st March, 2024, there are no loans or advances in the nature of loans granted to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of repayment.

38 The business of the Company falls within a single primary segment vis.,'Financial Services' and hence, the disclosure requirement of the Ind AS 108 - "Operating Segments” is not applicable.

39 Figures of previous period have been regrouped/reclassified, wherever necessary, to make them comparable and to conform with current period classification.