1. SHARE CAPITAL

1.1 The company has, at present, one class of issued, subscribed and paid up share referred to as equity share having a par value of Rs 10/- each. Each holder of equity share is entitled to one vote per share.

1.2 Company has increased its Authorised Share Capital Rs. 12 Crore to Rs.14 Crore during the year .

1.3 Reconciliation of the number of shares outstanding and the amount of share capital as at the beginning and at the end of the reporting period :

2. Reserves& Surplus

2.1 The Company has transferred a sum of Rs. 80.00 lacs (Rs. 42.08 lacs) during the year in the Special Reserve out of its profits in terms of Section 29C of the National Housing Bank Act, 1987. This amount includes the transfer of a sum of Rs.29.22 lacs (Rs.15.72 lacs) in the reserve created under Section 36(1) (viii) of the Income Tax Act, 1961. Breakups of transfer of funds in both the reserves are as under:-

3. Short Term provisions- Provision for Taxation includes Rs. 106.97 lacs (Rs. 67.25 lacs) as Tax provision for current year.

4. Housing Finance

4.1 As certified by the management, loans given by the company are secured by Equitable Mortgage/Registered Mortgage of the property and assets financed and/or assignment of Life Insurance Policies and /or personal Guarantees and are considered appropriate and good.

4.2 The Non-Performing Assets (NPA) as on March 31st 2018, consisting of principal loans outstanding where payments of EMI were in arrears for 90 days or more amounted to Rs. 59,54,494/- (Rs. 31,68,475/-). As per prudential norms prescribed by the NHB, the company is required to carry a contingency provision of Rs. 36,80,128/- (Rs. 21,43,994/-) in respect of Standard and Non Performing Housing loans assets. The company has made during the year, Provision of Rs. 15,36,134/- (Rs. 7,12,484/-) thereby total provisioning of Rs 36,80,128/- (Rs. 21,43,994/-) for contingencies against the requirement of Rs. 36,80,128/- of total provision. Company has sufficient provision as per the requirements of the guidelines on prudential norms issued by the National Housing Bank (NHB).

5.1 The Company has not written off any loan amount during the year ended 31.03.2018.

5.2 In terms of the requirement of the National Housing Bank (NHB) Directions 2010, further amended vide Circular no. NHB.HFC.Dir.3/CMD/2011 dtd August 5th 2011, the company has met the said requirements as under by providing Provisions for contingencies @ 0.25% on all standard assets in respect of all loans.

6. As per Accounting standard (AS-20) "Earnings per Share" is calculated for the Year as on 31.03.2018 is Rs. 2.43. EPS for the previous year as on 31.03.2017 was Rs.1.19.

d. The Company has given new loans during the year to parties who categories under the Related Parties as Normal Business of financing Transactions. As these transactions were done as normal business transactions, these have not been reported as per the disclosure under Related Party Transactions.

7. The main business of the company is to provide loans for the purchase or construction of residential houses and all other activities of the company revolve around the main business and as such there are no separate reportable segments as specified in Accounting Standard (AS-17) on "Segment Reporting", and under paragraph 29(2) of the Housing Finance Companies (NHB) Directions, 2010, which needs to be reported.

IV. During the year, Company has not entered into any (a) derivative transaction, (b) securitisation and assignment transaction, (c) financing of Parent Company product, and (e) finance of any unsecured advances against intangible securities such as rights, licenses, authority etc as collateral security.

V. The Company has not exceeded limit prescribed by National Housing Bank for Single Borrower Limit (SGL) and Group Borrower Limit (GBL).

VI. The Company has not obtained registration from any other financial sector regulator.

VII. During the year, a) no prior period items occurred which has impact on profit and loss account, b) no change in any accounting policy, c) there were no circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties, d) there is no withdrawal from Reserve fund, e) Company has not accepted public deposits, f) Company does not consists of any Overseas Assets and g) Company does not consists Off balance Sheet SPVs sponsored (which are required to be consolidated as per accounting Norms).

VIII. The Company has no subsidiary company. Hence, requirement of consolidated financial statements is not applicable to the company.

8. NHB, has not levied any penalty under HFC (NHB) Directions, 2010 on the company.

9. Provident Fund and ESIC.

In the current year, the company has paid all the statutory dues as per relevant law.

10. Investments in shares of Other companies:

11. 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 31-03-2018. 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.

12. Figures of the previous year have been regrouped, rearranged and reclassified wherever necessary.

13. Figures in brackets represent previous full year's figures i.e figures for Financial Year 2016-17.

14. Credit assigned by Credit Rating Agencies and Migration of Rating during the year.