1.11 Provisions, Contingent Liabilities and
Contingent Assets

Provisions

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that the Company will be
required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.

The amount recognised as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrou nding the obligation. If the effect of the time value
of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time
is recognised as a finance cost.

A provision for onerous contracts is recognised when
the expected benefits to be derived by the Company
from a contract are lower than the unavoidable cost

of meeting its obligations under the contract. The
provision is measured at the present value of the lower
of the expected cost of terminating the contract and the
expected net cost of continuing with the contract.

When some or all of the economic benefits required
to settle a provision are expected to be recovered
from a third party, a receivable is recognised as an
asset if it is virtually certain that reimbursement will
be received and the amount of the receivable can be
measured reliably.

In case of litigations, provision is recognised once it
has been established that the Company has a present
obligation based on information available up to the
date on which the Company's standalone financial
statements are finalised and may in some cases entail
seeking expert advice in making the determination on
whether there is a present obligation.

Contingent Liabilities

Contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
Company or a present obligation that is not recognised
because it is not probable that an outflow of resources
will be required to settle the obligation. Company does
not recognised contingent liability but discloses its
existence in the standalone financial statements.

Contingent Assets

Contingent assets are not recognised in the standalone
financial statements, but are disclosed where an inflow
of economic benefits is probable.

1.12 Cash and cash equivalents

Cash and cash equivalents comprise of cash on hand,
balances with banks, cheques on hand, remittances
in transit and short-term investments with an original
maturity of three months or less that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

1.13 Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
Chief Operating Decision-Maker (CODM). The CODM
assess the financial performance and position of the
Company and makes strategic decisions.

The Company is predominantly engaged in a single
reportable segment of 'Financial Services' as per the
Ind AS 108 - Segment Reporting.

1.14 Financial Instruments

Classification of financial instruments

The Company classifies its financial assets into the
following measurement categories:

1. Financial assets to be measured at amortised cost

2. Financial assets to be measured at fair value
through other comprehensive income

3. Financial assets to be measured at fair value
through profit or loss

The classification depends on the contractual terms
of the financial assets' cash flows and the Company's
business model for managing financial assets which
are explained below:

Business model assessment

The Company determines its business model at the
level that best reflects how it manages groups of
financial assets to achieve its business objective.

The Company's business model is not assessed on an
instrument-by-instrument basis, but at a higher level
of aggregated portfolios and is based on observable
factors such as:

♦ How the performance of the business model and
the financial assets held within that business
model are evaluated and reported to the entity's
key management personnel.

♦ The risks that affect the performance of the
business model (and the financial assets held
within that business model) and the way those risks
are managed.

♦ How managers of the business are compensated
(for example, whether the compensation is based
on the fair value of the assets managed or on the
contractual cash flows collected).

♦ The expected frequency, value and timing of sales
are also important aspects of the Company's
assessment. The business model assessment is
based on reasonably expected scenarios without
taking 'worst case' or 'stress case' scenarios into
account. If cash flows after initial recognition
are realised in a way that is different from the
Company's original expectations, the Company
does not change the classification of the remaining
financial assets held in that business model, but
incorporates such information when assessing
newly originated or newly purchased financial
assets going forward.

The Solely Payments of Principal and Interest
(SPPI) test

As a second step of its classification process the
Company assesses the contractual terms of financial
assets to identify whether they meet the SPPI test.

'Principal' for the purpose of this test is defined as the
fair value of the financial asset at initial recognition
and may change over the life of the financial asset
(for example, if there are repayments of principal or
amortisation of the premium/discount).

In making this assessment, the Company considers
whether the contractual cash flows are consistent with
a basic lending arrangement i.e. interest includes only
consideration for the time value of money, credit risk,
other basic lending risks and a profit margin that is
consistent with a basic lending arrangement. Where
the contractual terms introduce exposure to risk or
volatility that are inconsistent with a basic lending
arrangement, the related financial asset is classified
and measured at fair value through profit or loss.

The Company classifies its financial liabilities at
amortised costs unless it has designated liabilities
at fair value through the profit and loss account or is
required to measure liabilities at fair value through
profit or loss such as derivative liabilities.

1.14.1 Recognition of Financial Instruments:

Financial assets and financial liabilities are recognised
when entity becomes a party to the contractual
provisions of the instruments. Loans & advances and
all other regular way purchases or sales of financial
assets are recognised and de-recognised on the trade
date basis.

1.14.2 Initial Measurement of Financial Instruments:

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the
fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit
or loss are recognised immediately in the Statement of
Profit and Loss.

Investment in subsidiary is carried at cost as permissible
under Ind AS 27, 'Separate Financial Statements'.

(a) Financial Assets

Financial Assets carried at Amortised Cost:

These financial assets comprise Bank Balances,
Loans, Trade Receivables, Other Receivables,
Investments and Other financial assets.

A financial asset is measured at amortised cost, if
it is held within a business model whose objective
is to hold the asset in order to collect contractual
cash flows and the contractual terms of the
financial asset give rise on specified dates to cash
flows that are solely payments of principal and
interest on the principal amount outstanding.

Financial Assets at Fair Value through Other
Comprehensive Income (FVTOCI):

A financial asset is measured at FVTOCI, if it is
held within a business model whose objective
is achieved by both collecting contractual
cash flows and selling financial assets and the
contractual terms of the financial asset give rise
on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.

Financial Assets at Fair Value through Profit or
Loss (FVTPL):

A financial asset which is not classified as
Amortised Cost or FVTOCI is measured at FVTPL.
Financial assets at FVTPL include financial assets
held for trading and financial assets designated
upon initial recognition as at FVTPL. A financial
asset that meets the amortised cost criteria or
debt instruments that meet the FVTOCI criteria
may be designated as at FVTPL upon initial
recognition if such designation eliminates
or significantly reduces a measurement or
recognition inconsistency that would arise from
measuring assets or liabilities or recognising the
gains and losses on them on different bases. The
Company has not designated any debt instrument
as at FVTPL.

Any differences between the fair values of
financial assets classified as FVTPL and held by the
Company on the balance sheet date is recognised
in the Statement of Profit and Loss. In cases there is
a net gai n i n the aggregate, the same is recognised
in "Net gain on fair value changes" under Revenue
from Operations and if there is a net loss the same
is recognised in "Net loss on fair value changes"
under Expenses in the Statement of Profit and Loss.

Effective Interest Rate (EIR) Method:

The EIR is a method of calculating the amortised
cost of a financial instrument and of allocating
interest income or expense over the relevant
period. The EIR is the rate that exactly discounts
estimated future cash receipts or payments
through the expected life of the financial asset
or financial liability to the gross carrying amount
of a financial asset or to the amortised cost of a
financial liability on initial recognition

The EIR for financial assets or financial liability
is computed:

a) By considering all the contractual terms of
the financial instrument in estimating the
cash flows.

b) Including fees and transaction costs that are
integral part of EIR.

Impairment of Financial Assets:

Loss allowance for expected credit losses is
recognised for financial assets measured at
amortised cost and FVTOCI at each reporting date
based on evidence or information that is available
without undue cost or effort.

The Company measures the loss allowance for a
financial asset at an amount equal to the lifetime
expected credit losses if the credit risk on that
financial instrument has increased significantly
since initial recognition. If the credit risk on a
financial asset has not increased significantly
since initial recognition, the Company measures
the loss allowance for that financial asset at an
amount equal to 12-month expected credit losses.

Also refer Note No. 1.14.6 Overview of the Expected
Credit Loss (ECL) principles.

De-recognition of Financial Assets:

The Company de-recognises a financial asset
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of
ownership of the asset to another party.

On de-recognition of a financial asset accounted
under Ind AS 109 in its entirety:

a) For Financial Assets measured at Amortised
Cost, the gain or loss is recognised in the
Statement of Profit and Loss.

b) For Financial Assets measured at FVTOCI,
the cumulative fair value adjustments

previously taken to reserves are reclassified
to the Statement of Profit and Loss unless
the asset represents an equity investment
in which case the cumulative fair value
adjustments previously taken to reserves
may be reclassified within equity.

If the transferred asset is part of a larger financial
asset and the part transferred qualifies for de¬
recognition in its entirety, the previous carrying
amount of the larger financial asset shall be
allocated between the part that continues to be
recognised and the part that is de-recognised, on
the basis of the relative fair values of those parts
on the date of the transfer.

I f the Company neither transfers nor retains
substantially all the risks and rewards of ownership
and continues to control the transferred asset, it
recognises its retained interest in the assets and
an associated liability for amounts it may have
to pay.

I f the Company retains substantially all the
risks and rewards of ownership of a transferred
financial asset, it continues to recognise the
financial asset and also recognises a liability for
the proceeds received.

Modification/revision in estimates of cash flows
of financial assets:

When the contractual cash flows of a financial
asset are renegotiated or otherwise modified
and the renegotiation or modification does not
result in the de-recognition of that financial asset
in accordance with Ind AS 109, the Company
recalculates the gross carrying amount of the
financial asset and recognises a modification gain
or loss in the Statement of Profit and Loss.

(b) Financial Liabilities and Equity Instruments

Classification as debt or equity:

Financial liabilities and equity instruments
issued are classified according to the substance
of the contractual arrangements entered into
and the definitions of a financial liability and an
equity instrument.

Equity Instruments

An Equity Instrument is any contract that evidences
a residual interest in the assets of the Company
after deducting all of its liabilities. Repurchase of the
Company's own equity instruments is recognised
and deducted directly in equity. No gain or loss
is recognised in the Statement of Profit and Loss
on the purchase, sale, issue or cancellation of the
Company's own equity instruments.

Financial Liabilities

The Company classifies all financial liabilities as
subsequently measured at amortised cost, except
for financial liabilities at FVTPL. Such liabilities,
including derivatives that are liabilities, shall be
subsequently measured at fair value.

Financial Liabilities at FVTPL

Financial liabilities at FVTPL include financial
liabilities held for trading and financial liabilities
designated upon initial recognition as at FVTPL.
Financial liabilities are classified as held for
trading, if they are incurred for the purpose of
repurchasing in the near term. This category also
includes derivative financial instruments that are
not designated as hedging instruments in hedge
relationships as defined by Ind AS 109 - "Financial
Instruments".

Financial Liabilities measured at Amortised
Cost

After initial recognition, interest bearing loans
and borrowings are subsequently measured
at amortised cost using the EIR method
except for those designated in an effective
hedging relationship.

Amortised cost is calculated by taking into account
any discount or premium and fee or costs that are
an integral part of the EIR. The EIR amortisation is
included in finance costs in the Statement of Profit
and Loss. Any difference between the proceeds
(net of transaction costs) and the redemption
amount is recognised in profit or loss over the
period of the borrowings using the EIR method.

Trade and other payables

A payable is classified as 'trade payable' if it is in
respect of the amount due on account of goods
purchased or services received in the normal
course of business. These amounts represent
liabilities for goods and services provided to
the Company prior to the end of financial year,
which are unpaid. They are recognised initially
at their fair value and subsequently measured at
amortised cost.

Financial Guarantee Contracts

Financial guarantees issued by the Company are
those guarantees that require a payment to be
made to reimburse the holder of the guarantee for
a loss incurred by the holder because the specified
debtor fails to make a payment, when due, to the
holder in accordance with the terms of a debt
instrument. Financial guarantees are recognised
initially as a liability at fair value, adjusted for

transactions costs that are directly attributable to
the issuance of the guarantee. Subsequently, the
liability is measured at the higher of the amount
of loss allowance determined as per impairment
requirements of Ind AS 109 and the amount
recognised less cumulative amortisation.

De-recognition of financial liabilities

A financial liability is de-recognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the terms
of an existing liability are substantially modified,
such an exchange or modification is treated as
the de-recognition of the original liability and
the recognition of a new liability. The difference
between the carrying amount of the financial
liability de-recognised and the consideration
paid and payable is recognised in the Statement
of Profit and Loss.

1.14.4 Off-setting of financial instruments

Financial assets and liabilities are offset and the net
amount is reported in the Balance Sheet, when there
is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a
net basis, or realise the asset and settle the liability
simultaneously backed by past practice.

1.14.5 Fair value measurement

Fair value is the price 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. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most
advantageous market for the asset or liability

The Principal or the most advantageous market must
be accessible by the Company.

The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which

sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
into Level 1, 2, or 3 based on the degree to which the
inputs to the fair value measurements are observable
and the significance of the inputs to the fair value
measurement in its entirety, which are as follows:

Level 1 financial instruments: Those where the inputs
used in the valuation are unadjusted quoted prices
from active markets for identical assets or liabilities
that the Company has access to at the measurement
date. The Company considers markets as active only
if there are sufficient trading activities with regards
to the volume and liquidity of the identical assets or
liabilities and when there are binding and exercisable
price quotes available on the balance sheet date.

Level 2 financial instruments: Those where the
inputs that are used for valuation and are significant,
are derived from directly or indirectly observable
market data available over the entire period of the
instrument's life. Such inputs include quoted prices for
similar assets or liabilities in active markets, quoted
prices for identical instruments in inactive markets
and observable inputs other than quoted prices such
as interest rates and yield curves, implied volatilities,
and credit spreads. In addition, adjustments may be
required for the condition or location of the asset or the
extent to which it relates to items that are comparable
to the valued instrument. However, if such adjustments
are based on unobservable inputs which are significant
to the entire measurement, the Company will classify
the instruments as Level 3.

Level 3 financial instruments: Those that include one
or more unobservable input that is significant to the
measurement as whole.

1.14.6 Overview of the Expected Credit Loss (ECL)
principles

Expected credit loss (ECL) is the probability-weighted
estimate of credit losses (i.e., the present value of all
cash shortfalls) over the expected life of the financial
instrument. A cash shortfall is the difference between
scheduled or contractual cash flows and actual
expected cash flows. Consequently, ECL subsumes
both the amount and timing of payments. It also
incorporates available information which is relevant
to the assessment, including information about
past events, current conditions and reasonable and
supportable information about future events and
economic conditions at the reporting date.

For portfolio of exposures, ECL is modelled as the
product of the probability of default, the loss given
default and the exposure at default.

In case of assets identified to be significantly credit-
impaired to the extent that default has happened or
seems to be a certainty rather than probability, ECL
would be determined by directly estimating the receipt
of cash flows and timing thereof.

Staging:

The loan portfolio would be classified into three
stage-wise buckets - Stage 1, Stage 2 and Stage 3 -
corresponding to the contracts assessed as performing,
under-performing and non-performing, in accordance
with the Ind-AS guidelines. The key parameter used
for stage-wise classification would be days past due
(DPDs).

Stage 1:

All exposures where there has not been a significant
increase in credit risk since initial recognition or that
has low credit risk at the reporting date and that are
not credit impaired upon origination are classified
under this stage. The Company classifies all standard
advances and advances up to 30 days default under
this category. Stage 1 loans also include facilities where
the credit risk has improved and the loan has been
reclassified from Stage 2.

Stage 2:

All exposures where there has been a significant
increase in credit risk since initial recognition but are
not credit impaired are classified under this stage. 30
Days Past Due is considered as significant increase in
credit risk.

Stage 3:

All exposures assessed as credit impaired when one
or more events that have a detrimental impact on the
estimated future cash flows of that asset have occurred
are classified in this stage. For exposures that have
become credit impaired, a lifetime ECL is recognised
and interest revenue is calculated by applying the
effective interest rate to the amortised cost (net of
provision) rather than the gross carrying amount. 90
Days Past Due is considered as default for classifying
a financial instrument as credit impaired. If an event
(for eg. any natural calamity) warrants a provision
higher than as mandated under ECL methodology,
the Company may classify the financial asset in Stage
3 accordingly.

Methodology:

The basis of the ECL calculations are outlined below
which is intended to be more forward-looking. Key
elements of ECL are, as follows:

Probability of Default (PD) is an estimate of the
likelihood of default over a given time horizon. A default
may only happen at a certain time over the assessed

period, if the facility has not been previously de¬
recognised and is still in the portfolio.

Exposure at Default (EAD) is an estimate of the
exposure at a future default date, taking into account
expected changes in the exposure after the reporting
date, including repayments of principal and interest,
whether scheduled by contract or otherwise, expected
drawdown's on committed facilities, and accrued
interest from missed payments.

Loss Given Default (LGD) is an estimate of the loss
arising in the case where a default occurs at a given
time. It is based on the difference between the
contractual cash flows due and those that the lender
would expect to receive, including from the realisation
of any collateral. It is usually expressed as a percentage
of the EAD.

The key tenets of Company's methodology are as under:

Past performance as basis for ECL discovery:

Company's ECL methodology is based on discovery
of the relevant parameters - namely EAD, PD and
LGD - from the Company's actual performance of
past portfolios.

Life Cycle Determination: A significant portion of the
advances of the Company is short-term in nature.
Based on maturity pattern on the Company's advances
in past years, the average life cycle has been considered
as 1 year.

The management will continue to monitor the loan
cases on an ongoing basis, and have the discretion
to make higher provisions on the basis expected
recovery of the individual accounts, wherever
considered necessary.

1.14.7 Write-offs

The Company reduces the gross carrying amount of a
financial asset when the Company has no reasonable
expectations of recovering a financial asset in its
entirety or a portion thereof. This is generally the case
when the Company determines that the borrower
does not have assets or sources of income that could
generate sufficient cash flows to repay the amounts
subjected to write-offs. Any subsequent recoveries
against such loans are credited to the Statement of
profit and loss.

1.15 Earnings per Share ('EPS')

Basic EPS per share are calculated by dividing the
net profit or loss for the year attributable to equity
shareholders (after deducting preference dividend, if
any, and attributable taxes) by the weighted average
number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable to

equity shareholders and the weighted average number
of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted as of the
beginning of the period, unless they have been issued
at a later date. In computing the dilutive earnings per
share, only potential equity shares that are dilutive and
that either reduces the earnings per share or increases
loss per share are included.

1.16 Material accounting judgements, estimates
and assumptions

The preparation of standalone financial statements in
conformity with the Ind AS requires the management
to make judgements, estimates and assumptions that
affect the reported amounts of revenues, expenses,
assets and liabilities and the accompanying disclosure
and the disclosure of contingent liabilities, at the end
of the reporting period. Estimates and underlying
assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised
in the period in which the estimates are revised and
future periods are affected. Although these estimates
are based on the management's best knowledge
of current events and actions, uncertainty about
these assumptions and estimates could result in the
outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future periods.

I n particular, information about material areas of
estimation, uncertainty and critical judgements in
applying accounting policies that have the most
significant effect on the amounts recognised in the
standalone financial statements is included in the
following notes:

1.16.1 Impairment Charges on loans and advances

The measurement of impairment losses requires
judgement, in particular, the estimation of the
amount and timing of future cash flows and collateral
values when determining impairment losses and the
assessment of a significant increase in credit risk. These
are based on the assumptions which are driven by a
number of factors resulting in future changes to the
impairment allowance.

A collective assessment of impairment takes into
account data from the loan portfolio (such as credit
quality, nature of assets underlying assets financed,
levels of arrears, credit utilisation, loan to collateral
ratios etc.), and the concentration of risk and economic
data (including levels of unemployment, country risk
and performance of different individual groups). These
significant assumptions have been applied consistently
to all period presented.

The impairment loss on loans and advances is
disclosed in more detail in Note No. 1.14.6 Overview of
the ECL principles.

1.16.2 Business Model Assessment

Classification and measurement of financial assets
depends on the results of the SPPI and the business
model test. The Company determines the business
model at a level that reflects how groups of financial
assets are managed together to achieve a particular
business objective. The Company monitors financial
assets measured at amortised cost or fair value through
other comprehensive income that are de-recognised
prior to their maturity to understand the reason for their
disposal and whether the reasons are consistent with
the objective of the business for which the asset was
held. Monitoring is part of the Company's continuous
assessment of whether the business model for which
the remaining financial assets are held continues to
be appropriate and if it is not appropriate whether
there has been a change in business model, if so, then
it will be a prospective change to the classification of
those assets.

1.16.3 Provisions other than Loan Impairment

Provisions are held in respect of a range of future
obligations such as employee entitlements, litigation
provisions, etc. Some of the provisions involve
significant judgement about the likely outcome of
various events and estimated future cash flows. The
measurement of these provisions involves the exercise
of management judgements about the ultimate
outcomes of the transactions.

1.16.4 Fair Value Measurement

When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using various valuation
techniques. The inputs to these models are taken
from observable markets where possible, but where
this is not feasible, a degree of judgement is required
in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about
these factors could affect the reported fair value of
financial instruments.

1.16.5 Defined Employee Benefit Assets and Liabilities

The cost of the defined benefit gratuity plan/long-term
compensated absences and the present value of the
gratuity obligation/long-term compensated absences
are determined using actuarial valuations. An actuarial
valuation involves making various assumptions that
may differ from actual developments in the future.

These include the determination of the discount rate;
future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive
to changes in these assumptions. All assumptions are
reviewed annually.

1.16.6 EIR Method

The Company's EIR methodology recognises interest
income/expense using a rate of return that represents
the best estimate of a constant rate of return over the
expected behavioural life of loans given/taken and
recognises the effect of potentially different interest
rates at various stages and other characteristics of the
product life cycle (including prepayments and penalty
interest and charges).

This estimation, by nature, requires an element of
judgement regarding the expected behaviour and life¬
cycle of the instruments, as well expected changes to
India's base rate and other fee income/expense that
are integral parts of the instrument.

1.16.7 Other Estimates

These include contingent liabilities, useful lives of
tangible assets etc.

1.17 Foreign Currency Transactions and
Translations

Transactions in foreign currencies are translated
to the functional currency of the Company (i.e. INR)
at exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign
currencies at the reporting date are translated to the
functional currency at the exchange rate at that date
and the related foreign currency gains or losses are
recognised in the Statement of Profit and Loss.

1.18 Business Combination under Common Control

Business combination, involving entities or business
under Common Control are accounted for in
accordance with Appendix C to Ind AS 103 "Business
Combination" using the pooling of interest method.
Such combinations involve entities or businesses that
are ultimately controlled by the same party or parties
both before and after the business combination and
where such control is not transitory.

The Company accounts for such Business Combinations
using the pooling of interest method as follows:

(i) The assets and liabilities of the combining entities
are reflected at their carrying amounts.

(ii) No adjustments are made to reflect fair
values, or recognize new assets or liabilities.
Adjustments are made only to harmonise Material
accounting policies.

(iii) The financial information in the financial
statements in respect of prior period are restated
as if the business combination had occurred
from the beginning of the preceding period in the
financial statements, irrespective of the actual
date of the combination.

(iv) The identity of the reserves is preserved and
appear in the financial statements of the
transferee in same form in which they appeared
in the financial statements of the transferor.

The difference, if any, between the amounts recorded as
share capital issued plus any additional consideration
in the form of cash or other assets and the amount of
share capital of the transferor is transferred to capital
reserve and is presented separately from other capital
reserve with disclosure of its nature and purpose in
the notes.

1.19 Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time.

In May 2025, MCA notified amendments to:

(i) I nd AS 21 - The Effects of Changes in Foreign
Exchange Rates, applicable w.e.f. April 1, 2025.
The Company has reviewed the amendment and
based on its evaluation has determined that it does
not have any impact in its financial statements.

In August 2025, MCA d the following amendments to:

(ii) Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments: Disclosures, applicable
w.e.f. April 1, 2025 - the amendment in Ind AS 7
requires to inform users of financial statements
of the existence of supplier finance arrangements
and explain the nature of the arrangements, the
carrying amount of liabilities and the range of
payment due dates. Ind AS 107 has been amended
to add supplier finance arrangements as a factor
that may cause concentration of liquidity risk.
The Company has reviewed the amendment and
based on its evaluation has determined that it does
not have any impact in its financial statements.

(iii) I nd AS 12, International Tax Reform - Pillar Two
Model Rules applicable immediately - The
amendments provide a temporary mandatory
relief from deferred tax accounting for top-up tax
and disclose that they have applied the relief. This
relief is immediate and applies retrospectively.
The Company has reviewed the amendment and
based on its evaluation has determined that it does
not have any impact in its financial statements.

(ii) Brief description of the Investment Property

(a) Residential flat at "Mani Ratnam Apartment", Diamond Block, 4th floor, flat No.- 4DF, Kharibari Road, Duck Banglo
More, Rajarhat Chowmatha, under Rajarhat-Bishnupur-1 No. Gram Panchayet, P.O.-Rajarhat , P.S.- Rajarhat, Dist.-
North 24 Parganas, Pincode -700135, West Bengal.

(b) Office premises at "Mani Square", Block 8 IT, 8th floor, 164/1 Maniktala Main Road, Kolkata, Pincode -700054,
West Bengal.

(c) Office premises at Commercial Unit No. 601, A wing in the Estate Project the Business Hub, Andheri Kurla Road, 6th
Floor, Andheri (East), Mumbai-400069.

iii) Contractual obligations

The Company has no contractual obligations to purchase, construct or develop Investment Property. However, the
responsibility for its repairs, maintenance or enhancements is with the Company. Also, the property is not pledged.

iv) Leasing Arrangements

Investment property as described in point ii(b) above is leased out to tenant under cancellable operating lease.

vi) Brief description of the valuation technique and inputs used to value the Investment Property

The fair value of investment property is determined in accordance with the advice of independent, professionally qualified
registered valuer for properties mentioned in ii (a) & ii (b) above. The fair value was derived based on Government
Guideline price collected from government website and local enquiry considering the location, position, finishing and
age of the property. The property mentioned in point ii (c) above is a newly acquired property and the fair value of the
same is determined as per the Stamp Duty Value at the time of the acquisition.

b. 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
110/- each. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividend in Indian rupees. Refer note-51 for the dividend proposed.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

c. Aggregate number of Equity Shares allotted as fully paid-up without payment being received in cash

During the previous year ended 31st March, 2025, a Scheme of Amalgamation ("the Scheme") involving merger of
Yaduka Financial Services Limited (the "Transferor Company") with and into the Company was approved by the
Board of Directors of the respective companies at their meeting held on July 31, 2024. The Appointed Date for the
Scheme is October 01, 2024. The Scheme was approved by Hon'ble National Company Law Tribunal, Kolkata Bench,
vide their order dated November 4, 2025. The certified copy of the said order was received on November 17, 2025
and the same was subsequently intimated to the stock exchange. The Company and the Transferor Company
both have filed the certified true copy of the order of the Hon'ble National Company Law Tribunal sanctioning the
Scheme, along with the Scheme itself, with the Registrar of Companies, West Bengal, on November 18, 2025 and
accordingly, the Scheme has become effective from the November 18, 2025 ("Effective Date") and consequently
the Transferor Company stands amalgamated into the Company and stands dissolved without being wound up.
On December 01, 2025, the Company has allotted 65,34,507 fully paid up equity shares of face value ? 10
each, to the eligible shareholders of the Transferor Company as on the record date i.e. November 29, 2025
in the share exchange ratio of 1,445 fully paid-up equity shares of the Company having face value of ? 10
each for every 1,000 fully paid-up equity shares of the Transferor Company having face value of Rs 10 each.
The Company in its standalone financial statements for the year ended 31st March, 2026 has accounted for the Scheme

f. Refer Note 37 - Capital for the Company's objectives, policies and processes for managing capital.

20.1 Preferential Allotment of Equity Shares and Convertible Warrants

1) The Company, pursuant to special resolution passed at Extraordinary General Meeting held on October 17,
2024, has on October 28, 2024, made allotment of 95,31,000 Convertible Warrants on Preferential Basis for
cash to Promoter and Non-Promoter at a price of t 306 per Warrant each convertible into, or exchangeable
for, 1 (one) fully paid-up equity share of the Company having face value of 10 each at a premium of t 296
each aggregating to t 29,164.86 lakhs. During the year ended 31st March, 2025, 43,88,800 warrants (out
of total 95,31,000 warrants) were converted to equal number of equity shares of face value of t 10 each.
The Company, during the year ended 31st March, 2026, has received the balance 75% of the
consideration amount for 50,82,664 warrants (out of total 51,42,200 outstanding warrants as of
31st March, 2025). Accordingly, the aforesaid warrants were converted, on various dates during
the year ended 31st March, 2026, to equal number of equity shares of face value of t 10 each.
Further the Company has forfeited 25% of consideration, being the upfront payment aggregating to t 45.55 lakhs,
for 59,536 warrants due to non-receipt of balance 75% consideration within the stipulated exercise period of six
months from the date of allotment i.e. by April 27, 2025. These warrants were originally allotted on October 28, 2024.

2) During the previous year ended 31st March, 2025, pursuant to special resolution passed at Extraordinary General
Meeting held on December 12, 2024, the Company had, on December 26, 2024, made allotment of 18,00,000
Convertible Warrants on Preferential Basis for cash to Non-Promoter at a price of t 609 per Warrant each convertible
into, or exchangeable for, 1 (one) fully paid-up equity share of the Company having face value of t 10 each at a
premium of t 599 aggregating to t 10,962 lakhs. The Company had received 25% of the issue price per warrant i.e.
t 152.25 each as upfront payment aggregating to t 2,740.50 lakhs. Each warrant, so allotted, is convertible into an
equal number of equity shares of face value t 10 each of the Company, subject to receipt of balance consideration
of t 456.75 each (being 75% of the issue price per warrant) aggregating to t 8,221.50 lakhs from the allottees to
exercise conversion option against each such warrant. The said warrants are yet to be converted into Equity Shares
as on 31st March, 2026.

Nature and Purpose of Reserves

(i) Securities Premium Account:

This reserve represents the premium on issue of shares and can be utilised in accordance with the provisions of the
Companies Act, 2013.

(ii) Shares Pending Issuance

This represents shares pending issuance pursuant to scheme of amalgamation sanctioned by statutory authority.

(iii) Statutory Reserves U/s 45IC of the RBI Act, 1934:

Every year the Company transfers a sum of not less than twenty per cent of net profit after tax of that year as disclosed
in the statement of profit and loss to its Statutory Reserve pursuant to Section 45-IC of the RBI Act, 1934.

The conditions and restrictions for distribution attached to statutory reserves as specified in Section 45-IC(l) in the
Reserve Bank of India Act, 1934:

No appropriation of any sum from the reserve fund shall be made by the Company except for the purpose as may be
specified by the RBI from time to time and every such appropriation shall be reported to the RBI within twenty-one days
from the date of such withdrawal. RBI may, in any particular case and for sufficient cause being shown, extend the period
of twenty one days by such further period as it thinks fit or condone any delay in making such report.

(iv) Capital Reserve:

Capital reserve represents the reserve created on account of amalgamation.

(v) Capital Redemption Reserve:

Capital redemption reserve represents the amount equal to the nominal value of shares extinguished on buy-back
of company's own shares pursuant to Sec. 69 of the Companies Act, 2013. 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

(vi) Retained Earnings:

Retained earnings represent the undistributed profits of the Company accumulated as on the balance sheet date. This
can be utilised in accordance with the provisions of the Companies Act, 2013.

33 Business Combination And Acquisitions

A. The Board of Directors of the Company at the meeting held on July 31, 2024, has approved the Scheme of Amalgamation
("the Scheme") involving amalgamation of Yaduka Financial Services Limited (the "Transferor Company") with and into
the Company. The Appointed Date for the Scheme is October 1, 2024. The Scheme was approved by Hon'ble National
Company Law Tribunal, Kolkata Bench, vide their order dated November 4, 2025. The certified copy of the said order was
received on November 17, 2025 and the same was subsequently intimated to the stock exchange. The Company and the
Transferor Company both have filed the certified true copy of the order of the Hon'ble National Company Law Tribunal
sanctioning the Scheme, along with the Scheme itself, with the Registrar of Companies, West Bengal, on November 18,
2025 and accordingly, the Scheme has become effective from the November 18, 2025 (“Effective Date") and consequently
the Transferor Company stands amalgamated into and with the Company and dissolved without being wound up.

Pursuant to the scheme:

a) The Company has accounted for the Scheme using the pooling of interest method as specified by
Appendix C 'Business combinations of entities under common control' to Ind AS 103, 'Business Combination'.
As per Ind AS principles, the amalgamation has been recorded with effect from April 01, 2024 and comparative
balances for the year ended 31st March, 2025 have been restated in the standalone financial statements. The
accounting treatment followed by the Company is as follows:"

i. All assets, liabilities and reserves relating to the Transferor Company have been transferred and vested in the
Company and has been recorded at the book values.

ii. The amount of any intercompany balances between the Transferor Company and the Company have
been cancelled.

iii. The accounting policies followed by the Transferor Company have been adjusted for differences (if any)
between the accounting policies followed by the Company and the accounting policies followed by the
Company have prevailed.

iv. The difference of ? 201.25 lakhs arising out of: (i) the book values of assets over the values of liabilities and
reserves taken over on amalgamation; (ii) Face value of equity shares issued to the shareholders of the
Transferor Company as on the record date i.e. November 29, 2025; and (iii) after considering adjustments
for elimination of intercompany balances and differences in accounting policies followed by the Transferor
Company, is recorded as capital reserve.

b) The Company has allotted 65,34,507 fully paid up equity shares to the eligible shareholders of the Transferor
Company on December 01, 2025. The shares were allotted in the share exchange ratio of 1,445:1,000 i.e. 1,445 fully
paid-up equity shares of the Company having face value of ^ 10 each for every 1,000 fully paid-up equity shares of
the Transferor Company having face value of Rs 10 each.

c) Details of Carrying Value of the Assets & Liabilities as on 1st April 2024, acquired and working of Reserves & Surplus
are as under:

B. The Board of Directors of the Company at the meeting held on July 31, 2024 approved a Composite Scheme of
Amalgamation ("the Composite Scheme") of: (i) Ashika Commodities & Derivatives Private Limited (“ACDPL" or “Transferor
Company") Wholly Owned Subsidiary of Ashika Global Securities Private Limited ("AGSPL" or "Amalgamating Company"
or "Transferee Company"), with and into AGSPL and (ii) AGSPL with and into the Company. The Appointed Date for the
Scheme is April 1, 2025. The Scheme was approved by Hon'ble National Company Law Tribunal, Kolkata Bench, vide
their order dated May 08, 2026. The certified copy of the said order was received on May 15, 2026 and the same was
subsequently intimated to the stock exchange. The Company, the Transferor and the Transferee Company all have filed
the certified true copy of the order of the Hon'ble National Company Law Tribunal sanctioning the Composite Scheme,
along with the Composite Scheme itself, with the Registrar of Companies, West Bengal, on May 15, 2026 and accordingly,
the Composite Scheme has become effective from the May 15, 2026 (“Effective Date") and consequently AGSPL along
with ACDPL stands amalgamated into and with the Company and dissolved without being wound up.

Pursuant to the scheme:

a) The Company has accounted for the Scheme using the pooling of interest method as specified by
Appendix C 'Business combinations of entities under common control' to Ind AS 103, 'Business Combination'.
As per Ind AS principles, the amalgamation has been recorded with effect from April 01, 2024 and comparative
balances for the year ended 31st March, 2025 have been restated in the standalone financial statements. The
accounting treatment followed by the Company is as follows:"

i. All assets, liabilities and reserves relating to AGSPL and ACDPL have been transferred and vested in the Company
and has been recorded at the book values.

ii. The amount of any intercompany balances among AGSPL, ACDPL and the Company have been cancelled.

iii. The accounting policies followed by AGSPL and ACDPL have been adjusted for differences (if any) between
the accounting policies followed by the Company and the accounting policies followed by the Company
have prevailed.

b) The Company shall allot 4,03,52,586 fully paid up equity shares to the eligible shareholders of AGSPL. The shares
will be allotted in the share exchange ratio of 6,726:10,000 i.e. 6,726 fully paid-up equity shares of the Company
having face value of ^ 10 each for every 10,000 fully paid-up equity shares of AGSPL having face value of Rs 10 each.
Since, the effective date is May 15, 2026, the Company is in the process of allotting the equity shares to the eligible
shareholders of AGSPL and extinguishing 1,13,51,990 fully paid up equity shares having face value of ^ 10 each, held
by ACDPL and AGSPL as on effective date, in accordance with the terms of the Composite Scheme.

Accordingly, such equity shares which are pending allotment to the eligible shareholders of the AGSPL and such
equity shares pending extinguishment has been disclosed under "Other Equity" as at 1st April, 2024 and accordingly
EPS (both Basic and Diluted) has been calculated considering the same.

(c) The difference in the aggregate value of net assets of AGSPL and ACDPL taken over by ACCL duly adjusted for
purchase consideration amounts to ^ 2014.24 lakhs has been debited to 'Capital Reserves'.

Risk Management

The Defined Benefit Plans expose the Company to risk of actuarial deficit arising out of interest rate risk, salary inflation

risk and demographic risk.

(a) Interest Rate Risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If
bond yields fall, the defined benefit obligation will tend to increase.

(b) Salary Inflation Risk: Higher than expected increase in salary will increase the defined benefit obligation.

(c) Demographic Risk: This is the risk of variability of results due to unsystematic nature of decrements that include
mortality, withdrawal, disability and retirement. The effect of these on the defined benefit obligation is not straight
forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important
not to overstate withdrawals because in the financial analysis the retirement benefit of short career employee
typically costs less per year as compared to long service employee.

35 Segment Reporting

The Management of the Company has identified segments as defined under Ind AS 108 "Operating Segments". The
Company's operating segments are established in the manner consistent with the components of company that are
evaluated regularly by the Management. The Company is predominantly engaged in a single reportable Segment of
'Financial Services'.

The Company operates in one geographic segment namely "within India" and hence no separate information for
geographic segment wise disclosure is required.

36 Lease Disclosure

In the capacity of Lessee

The Company has cancellable short-term operating lease arrangements for office premises and therefore has not
recognised a right-of-use asset and a lease liability with regard to these lease arrangements in accordance with Ind AS
116 'Leases'. Lease payments recognised in the Statement of Profit and Loss with respect to such arrangements aggregate
to ^ 27.62 lakhs (Previous year: ^ 10.88 lakhs).

In the capacity of Lessor

The Company has entered into cancellable operating lease agreements for its Office Premises.

Maturity analysis of lease payments to be received are given below:

37 Capital Management

The Company maintains an actively managed capital base to cover risks inherent in the business which includes
issued equity capital, share premium and all other equity reserves attributable to equity holders of the Company.
The primary objective of the Company's capital management is to ensure that it complies with externally imposed
capital requirements and maintains strong credit ratings and 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. No changes have been made to the objectives, policies and processes from the previous
years except those incorporated on account of regulatory amendments. However, they are under constant review by
the Board of Directors.

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which
are not recorded and measured at fair value in the Company's financial statements. These fair values were calculated for
disclosure purposes only. The below methodologies and assumptions relate only to the instruments in the above tables.

Loans measured at Amortised Cost

Loans having short-term maturity (less than twelve months) are valued at carrying amounts, which are net of impairment
and are considered reasonable approximation of their fair value. Loans having long-term maturity (more than twelve
months) are valued using a discounted cash flow model based on observable future cash flows based on term,
discounted at the average lending rate of the Company.

Financial Assets (excluding loans) measured at Amortised Cost

Financial assets (excluding loans) generally have assets with short-term maturity (less than twelve months) as on
balance sheet date and therefore, the carrying amounts, which are net of impairment, are a reasonable approximation
of their fair value.

Such instrument majorly include: Cash and Cash Equivalents, other bank balances, Receivables and other financial assets.
Borrowing measured at Amortised Cost

The borrowing generally have liabilities with short-term maturity (less than twelve months) as on balance sheet date
and therefore, the carrying amounts, are a reasonable approximation of their fair value.

Other Financial Liabilities measured at Amortised Cost

Other financial liabilities have liability with short-term maturity (less than twelve months) as on balance sheet date and
therefore, the carrying amounts are a reasonable approximation of their fair value.

C) Fair Value Hierarchy

The following details provide 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): Level 1 hierarchy includes financial instruments measured using quoted
prices. This includes listed equity instruments 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.

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.

40 Financial Risk Management Objectives And Policies

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, minimise 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.

A. Market Risk

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

(i) Interest Rate Risk

The Company is exposed to interest rate sensitivity on fixed and floating rate liabilities. The Company raises funds
from financial institutions. In view of the financial nature of assets and liabilities, changes in market interest rates
can affect its financial condition. Fluctuations in interest rates can occur due to both internal and external factors.
Internal factors include composition of assets and liabilities, maturity profile, pricing of borrowings and fixed and
floating nature of assets and liabilities. External factors include macroeconomic developments, competitive
pressures, regulatory developments, and global factors.

(ii) Foreign Currency Risk

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

(iii) Equity Price Risk

The Company is exposed to equity price risk arising from its investments in equity instruments. Equity price risk is
related to the change in market reference price of the investment in equity securities.

B. Liquidity Risk

Liquidity risk is the risk that 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.

C. 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 Company has established a credit quality review process to provide early identification of
possible changes in the creditworthiness of counterparties. The credit quality review process aims to allow the Company
to assess the potential loss as a result of the risks to which it is exposed and take corrective actions.

D. Risk concentrations

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. The Company has lays down the credit evaluation and approval process in compliance with regulatory guidelines.
The Company uses the Expected Credit Loss (ECL) Methodology to assess the impairment on financial assets.
In case of loan assets, The Probability of Default (pd) and Loss Given Default (LGD) is derived based on historical
data on an unsegmented portfolio basis due to limitation of counts in past. The combination of the PD and LGD is
applied on the Exposure at Default to compute the ECL, which is further adjusted for forward looking information, if any.
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.

45 Other Statutory Information

(a) The Company has duly registered it's charges or satisfaction of charges with the Registrar of
Companies (ROC).

(b) There are no transactions not recorded in the books of accounts during the year ended 31st March, 2026 and
31st March, 2025 that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961.
There are no previously unrecorded income and related assets to be recorded in the books of account during the year
ended 31st March, 2026 and 31st March, 2025.

(c) There is no proceedings been initiated or pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the Rules made thereunder during the year ended 31st March,
2026 and 31st March,2025.

(d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(e) The Company does not have any transaction with companies struck off U/s 248 of the Companies Act, 2013 or Section
560 of Companies Act, 1956.

(f) The Company is not declared as wilful defaulter by any bank or financial Institution or other lender during the year ended
31st March, 2026 and 31st March, 2025.

(g) During the year ended and as at 31st March, 2026 and 31st March, 2025, the Company has not advanced or loaned or
invested funds (either borrowed funds or share premium or any other sources or kind of funds) 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.

(h) During the year ended and as at 31st March, 2026 and 31st March, 2025, 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.

(i) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act,
2013 read with Companies (Restriction on number of Layers) Rules, 2017 for the financial year ended 31st March, 2026 and
31st March, 2025.

(j) The Company has been sanctioned credit facilities by bank and financial institutions. Based on the terms of sanction,
the Company is not required to file any quarterly returns or statements with such bank and financial institutions.

46 Subsequent Events

For details of the material subsequent events occurred after the reporting period, refer Note-33.

47 Schedule to the Balance Sheet as required in terms of paragraph-20 of Reserve Bank of India (Non-Banking Financial
Companies - Financial Statements: Presentation and Disclosures) Directions, 2025 is furnished vide Annexure - B
attached herewith. This disclosures are prepared under Ind AS issued by MCA unless otherwise stated.

48 Disclosure as required in terms the Reserve Bank of India (Non-Banking Financial Companies - Financial Statements:
Presentation and Disclosures) Directions, 2025, as amended is furnished vide Annexure C attached herewith. This
disclosures are prepared under Ind AS issued by MCA unless otherwise stated.

49 Disclosure as per paragraph 21 (15) of Reserve Bank of India (Non-Banking Financial Companies - Financial Statements:
Presentation and Disclosures) Directions, 2025

A comparison between provisions required under Income Recognition, Asset Classification and Provisioning ('IRACP')
and impairment allowances made under Ind AS 109 is given below:

However total IND AS 109 impairment allowance is higher by ^ 207.25 lakhs as compare to IRACP, hence appropriation to
impairment reserve is not required during the financial year.

50 The Government of India, on November 21, 2025, notified four Labour Codes - the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions
Code, 2020 (collectively referred to as the 'The Labour Codes') consolidating 29 existing labour legislations. Whilst the
New Labour Codes are effective from November 21, 2025, the related Rules to respective Labour Codes are yet to be fully
notified. The Company has estimated the financial implications of these changes in respect of gratuity and necessary
accounting has been made in the books of accounts. Further, it is in the process of assessing financial implications of
other aspects of these codes and will account for the impact, if any, subsequent to promulgation of the related Rules.

51 The Board of Directors of the Company has recommended in its meeting held on May 17, 2026, subject to shareholders'
approval distribution of final dividend of Rs 0.50 per equity share of the face value of ? 10 each for the financial year
ended 2026.

52 The previous year figures have been regrouped/reclassified wherever necessary to conform to current year's presentation.

As per para 35 of Master Direction - Reserve Bank of India (Non-Banking Financial Companies - Income
Recognition, Asset Classification and Provisioning) Directions, 2025, issued by Reserve Bank of India vide
circular no. RBI/DOR/2025-26/356 DOR.STR.REC.No.275/21.04.048/2025-26 - November 28, 2025 as amended.,
Where impairment allowance under Ind AS 109 is lower than the provisioning required under Income
Recognition, Asset Classification and Provisioning (IRACP) (including standard asset provisioning), NBFCs
shall appropriate the difference from their net profit or loss after tax to a separate 'Impairment Reserve'.