1(a) Corporate Information

Ashika Credit Capital Limited (the 'Company') is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The shares of the Company are listed on The Calcutta Stock Exchange Limited and Metropolitan Stock Exchange of India Limited. The Company received a Certificate of Registration from the Reserve Bank of India ('RBI') on 07th September, 1998 to commence/carry on the business of Non Banking Financial Institution ("NBFI").

2.1 Rights, preferences and restrictions in respect of Equity Shares

The Company's authorised capital consists of one class of shares, referred to as Equity Shares having par value of RS.10/- each. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.2 Shares allotted as fully paid-up without payment being received in cash/by way of bonus shares (during 5 years preceding 31st March, 2018) -

The Company has not issued any shares without payment being received in cash/ by way of bonus shares since 2012-13.

2.3 The Company had issued and allotted 38,05,174 Equity Shares of the face value of RS.10 each at a premium of RS.26 per share on preferential basis to some of the Promoter and Non-Promoter Group Entities on 27th March, 2018.

2.4 MONEY RECEIVED AGAINST SHARE WARRANTS

The Company had issued and allotted 10,80,000 Fully Convertible Warrants to one of the Promoter Group Entities on a preferential basis on 27th March, 2018 on receipt of 25% of the issue price amounting to RS.97.20 Lakh, entitling it to obtain equivalent number of equity shares of RS.10 each fully paid-up (including premium of RS.26 per share).

3.1 Nature of certain provisions and their movement

Provision for Bad Debts is made in the financial statements according to the Prudential Norms prescribed by RBI for NBFCs.

The Company creates a general provision at 0.25% of the standard assets outstanding on the balance sheet date, as per the RBI Prudential Norms.

4. DEFERRED TAX ASSETS (Net)

In terms of Accounting Standard 22, the net Deferred Tax Asset (DTA) reversed during the year is RS.97.38 lakhs (Previous year: RS.78.29 lakhs). Consequently, the net DTA as at year-end stands at RS.119.10 lakhs (Previous Year: RS.216.48 lakhs). The break-up of deferred tax is as follows:

¹ Secured by way of maintaining a margin of such percentage as stipulated in the Loan Agreement relevant to the loan facility or as varied by the Company consisting of securities acceptable to the Company.

² Includes Non-Performing Assets of RS.150 lakhs (Previous year RS.845 lakhs).

5. LEASES

In the capacity of Lessee

(i) The Company has cancellable operating lease arrangement for office premises, which is of 3 years and is usually renewable by mutual consent, on mutually agreeable terms. Lease payments charged to the Statement of Profit and Loss with respect to such leasing arrangement aggregate to RS.0.90 lakhs (Previous year Nil).

(ii) Further, the Company has a non-cancellable operating lease arrangements for office premises, which is of 3 years and is usually renewable by mutual consent on mutually agreeable terms. In respect of such arrangements, lease payments for the year aggregating to RS.1.20 lakhs (Previous year RS.1.20 lakhs) have been recognised in the Statement of Profit and Loss.

6. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD 18 - RELATED PARTY DISCLOSURES Key Management Personnel (KMP) :

Pawan Jain - Executive Chairman and Whole time Director Daulat Jain - Managing Director & Chief Executive Officer

Anju Mundhra - Company Secretary (Resigned from post of Director w.e.f. 20.11.2017)

Amit Jain - Chief Financial Officer

Enterprises over which KMP and/or relative of such KMP is able to exercise significant influence (with whom transactions have taken place during the year):

Ashika Global Securities Pvt. Ltd.

Ashika Stock Broking Ltd.

Ashika Hedge Fund Pvt. Ltd.

Ashika Share Trading Pvt. Ltd.

Ashika Business Pvt. Ltd.

Puja Sales Promotion Pvt. Ltd.

Shishir Exports Pvt. Ltd.

Pawan Jain (HUF)

7. CIF Value of Imports : Nil (Previous Year: Nil)

8. Expenditure in Foreign Currency : Nil (Previous Year: Nil)

9. Earnings in Foreign Currency : Nil (Previous Year: Nil)

10. Information as required in terms of paragraph 18 of Master Direction - Non-Banking Financial Company -Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 is furnished vide Annexure - I attached herewith.

11. Previous year's financial statements have been audited by PK.Sah & Associates, Chartered Accountants.

12. Figures pertaining to previous year have been rearranged/ regrouped, wherever necessary, to make them comparable with those of current year.