2.15 Provisions:

Provisions are recognized when there is a present obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. The amount recognized 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 surrounding the obligation.

Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

2.16 Leases:

Where the Company is the lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased asset are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of profit and loss. Since the lease period are of 11 months only without certainty to extend hence no additional adjustment are made as per Accounting standards.

2.17 Cash and cash equivalents:

Cash and cash equivalents in the balance sheet comprise cash on hand, cheques and drafts on hand, balance with banks in current accounts and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of change in value.

2.18 Earnings per Share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company’s earnings per share is the net profit for the period after deducting preference dividends, if any and any attributable tax thereto for the period.

The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, sub-division of shares etc. that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders is divided by the weighted average number of equity shares outstanding during the period, considered for deriving basic earnings per share and weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year

2.19 New standards or amendments to the existing standards and other pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. As on 31 March 2024, there is no new standard notified or amendment to any of the existing standards under Companies (Indian Accounting Standards) Rules, 2015.

Other Equity

Description of the nature and purpose of Other Equity:

Retained earnings

Retained earnings or accumulated surplus represents total of all profits retained since Company’s inception. Retained earnings are credited with current year profits, reduced by losses, if any, dividend payouts, transfers to General reserve or any such other appropriations to specific reserves.

Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilized only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 201 3.

Statutory reserve

Statutory reserve represents reserve fund created pursuant to Section 45-IC of the RBI Act, 1 934 through transfer of specified percentage of net profit every year before any dividend is declared. The Company created a reserve fund pursuant to section 45-IC of the Reserve Bank of India Act, 1 934 by transferring amount not less than 20% of its net profit every year as disclosed in the Statement of Profit and Loss and before any dividend declared. Withdrawal from this reserve is allowed only after obtaining permission from the RBI.

26. FINANCIAL RISK MANAGEMENT FRAMEWORK

In the course of its business, the Company is exposed to certain financial risks namely credit risk, interest risk & liquidity risk .The Company's primary focus is to achieve better predictability of financial markets and seek to minimize potential adverse effects on its financial performance. The financial risks are managed in accordance with the risk management framework as approved by the Board of Directors of the Company. The credit risk is managed through credit norms established based on historical experience.

26.1 Market Risk

Market Risk is 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, etc. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while maximizing the return.

a) Pricing Risk

The Company's Investment in Equity is exposed to pricing risk

29. DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED ACT, 2006)

Management has determined that there were no balances outstanding as at the beginning of the year and no transactions were entered with micro, small and medium enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, during the year, based on the information available with the company as at March 31, 2024.

30. OTHER DISCLOSURES:

a) No proceedings have been initiated during the year or are pending against the Company as at March 31,2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1 988 (as amended in 201 6) and rules made thereunder.

b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

d) The company does not have any investments through more than two layers of investment companies as per section 2 (87) and section 1 86 of Companies Act, 201 3

e) The Company has not borrowed any funds from Banks/FI.

f) The Company does not have any immovable properties hence question of title deeds in company name does not arise.

g) The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or intangible assets during the year ended March

31,2024.

h) The company has not made any Transactions with Struck off Companies.

i) The company doesn’t have any scheme of arrangements to disclose during the year 2023-24.

j) Utilisation of Borrowed funds and share premium:

A. 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;

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.

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

l) There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1 961 (43 of 1 961) during the year.

31. PRESENTATIONS OF PREVIOUS YEAR’S FIGURES

Previous year’s figures have been regrouped / reclassified / rearranged wherever necessary to bring them in conformity with the current year's figures.

Signatures to Notes 1 to 31 As per our Report of even date

For Darpan & Associates For and on behalf of the Board of Directors of Srestha Finvest Limited

Chartered Accountants Firm Reg. No. 016156S

Sd/- Sd/- Sd/- Sd/-

Darpan Kumar Sunil Bhandari Mayurdwajsinh Sahadevsinh Rana Jitendra Kumar A Bafna

Partner Wholetime Director /CFO Director Company Secretary

M. No. 235817 DIN: 03120545 DIN: 09234993

Date: May 30, 2024