l) Contingent Liabilities:

All liabilities have been provided for in the accounts. There is no liability contingent in nature.

20. Significant Use of Estimates

The presentation of financial statements in accordance with the applicable Accounting Standards and Policies requires the
management to make estimates and assumption on future events that may affect the balances of assets and liabilities and the
reported amounts of income and expenditures during the year under audit. However, the actual results could differ from those
estimated which will be recognized prospectively.

Gratuity Assumption

The measurement of company's defined benefit obligation to its employees requires the use of certain assumption, including, among
others, estimate of discount rates and expected return on plan assets. Changes in these assumptions may affect the future funding
requirements of the plans and actuarial gain/loss recognized in the statement of comprehensive income.

b) Maintenance of Net Owned Funds and Principal Business Criteria:

The management had submitted a detailed action plan for revival of the Company to the RBI on 20.01.2023. Yet RBI vide
letter no CO.DoR.RG.No. S3544/23-27-014/2023-24 dated 22.09.2023 cancelled the NHB licence w.e.f 21.09.2023
and the Management surrendered the original Certificate of Registration (CoR) to RBI, Chennai Regional Office on
27.09.2023. Further the Board of Directors of the company in its board meeting held on 04.11.2023 had given in¬
principle approval for winding up of the company under section 271 of the Companies Act 2013 subject to the
Shareholders and other Regulatory approvals. Moreover As stated in the RBI's order dated 22.09.2023, “Cancellation
shall not prevent the company from recovering loans from the borrowers and the repayment of all the outstanding claims
against the company, if any, under applicable laws”. The company is making its sincere efforts to recover the dues from
loan outstanding (NPA Accounts). Further to that, your company is having sufficient cash to the tune of Rs.2.95Cr for
operation and to take care of the foreseeable future for next year. Considering the ongoing recovery process in the
company, the audited financial statements have been prepared on a going concern concept.

c) The Company continues to receive support from its promoter, Indian Bank. The company has suspended making fresh
lending since the year 2000 and is focusing on recovery of housing loans as per the terms of the agreement entered with
the borrowers and other loans which are under litigation. The Company was notified as a ‘financial institution' under the
SARFAESI Act in 2006 which is helping the company to speed up the recovery process.

d) The only business activity of the company is housing finance and hence no segment reporting has been done.

e) The unabsorbed depreciation and carry forward losses eligible for set-off against future taxable income have not been
considered for deferred tax asset due to lack of probability that there will be future taxable profit. Hence the deferred tax
assets are not created as a prudent measure.

g) The Term Loans from Indian Bank include interest accumulated thereon and outstanding as of 31.03.2017, Interest is
not charged in the Term loan since 2017 and debt freezed at Rs.129.00 Crore. Accordingly, no interest on the loan has
been accounted for the FY 2024-25 and the entire due of Rs. 129 crores has been maintained in the books of accounts as
at the balance sheet date.

h) Amounts received under SARFAESI actions to the tune of Rs.38.86 lakhs are kept in bank deposits of which Rs.25.00
lakhs is disputed SARFAESI action. For this Rs. 25.00 lakh the matters are sub judice and the relevant cases are pending
with the Hon'ble Madras High Court, these have not been adjusted against the loan outstanding while arriving at the
provisioning. The surplus recovered over and above the outstanding due, consequent to sale of property under
SARFASI, is retained under “the Amounts pending appropriation with receivable accounts”.

i) Contingent Liabilities -NIL (PY: NIL)

j) Defined Contribution Plans:

Contribution to Provident Fund Rs.NIL (PY: Rs. 17,339/-) is made to the Regional Provident Fund Commissioner and is
recognized as an expense. The liability is confined to the contribution made and no further obligation to pay any additional sums.

k) The Company has repaid all the deposit accepted from public except to the extent of Rs.6,33,090/-, which represent the
deposits matured but withheld as the Central Bureau of Investigation Anti-Corruption Branch, Madurai. has given
directions not to release the amount still the disposal of the pending cases. The Company has parked this amount in fixed
deposits with Indian bank, Nandanam Branch.

l) The details of financial assets - loan receivables and pending litigations

• Out of Rs.2.75crores (4 cases) dues from ICD, suit has been filed in 1 case.

• Out of Rs.6.71 crores (1 cases) dues from Project loans, suit has been filed for Rs.6.71 crores (1cases)

• Out of Rs.0.42crores (30 cases) dues from individual Loans suit has been filed for Rs.0.39 crores(24cases)

m) Managing Director of the company is on deputation from Indian Bank and is drawing remuneration from Indbank
Merchant Banking Services Ltd as President cum WTD of that company. Hence no remuneration has been paid by the
company.

n) The Income Tax Department has sent a demand notice for Rs.4.32 Crore for the assessment year 1999-2000 including
interest. The demand is raised by considering the income on non-performing assets on accrual basis which, as per the
NHB directives, could not be recognized as income. The Company has contested the demand before the Hon'ble
Madras High Court and the judgment is issued in favour of the company on 29.11.2021. Income Tax department has not
gone for any appeal. IBHL through their Tax consultant submitted a letter dated 17.04.2023 to Income Tax department for
giving effect order. Awaiting response from Income Tax Department. The Income Tax Department has passed revised
assessment order for the assessment year 2006-07, stating excess of Rs. 26.34 lakh claimed provision was withdrawn
which was found to be incorrect and raised a demand with interest. The income tax department started adjusting this
demand against the TDS refund. IBHL submitted reply to Income tax department on 05.08.2024 and 20.02.2025 for
passing fresh assessment order and restoring original returned loss filed by IBHL in the A Y year 2006-07 since the ITAT
order received by the department got barred by limitation on 31.03.2024. Awaiting response from Income Tax
Department.

o) Additional Regulatory Information:

(i) The Company does not own any Immovable properties or investment properties.

(ii) The Company has not revalued its Property, Plant and Equipment or intangible assets during the year.

(iii) The company has not granted any loans or advances in the nature of loans to promoters, Directors, KMPs and related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person, either repayable on
demand or without specifying any terms or period of repayment.

(iv) The Company does not have any Capital-Work-in Progress (CWIP).

(v) The Company does not have any Intangible Assets under Development.

(vi) There have been no proceedings initiated or are pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(vii) The Company does not have any borrowings from banks or financial institutions on the basis of security of current
assets.

(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

(ix) The company has not had any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.

(x) There are no charges yet to be registered with the Registrar of Companies beyond the statutory period. The following
are the details of the charges in respect of which satisfaction is yet to be registered with the RoC, beyond the statutory

nprinrl¹ .

(xiii) There has been no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of
the Companies Act, 2013.

(xiv) Utilization of Borrowed funds and share premium:

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend
or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received
any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or
indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(xv) There have been no transactions not recorded in the books of account which have been surrendered or disclosed as
income during the year. There has also not been any previously unrecorded income or related assets. Also, no tax
assessments under the Income Tax Act, 1961 (43 of 1961) have been received during the year.

q) The figures in this Balance Sheet and Statement of Profit and Loss have been rounded off to the nearest hundreds.

For and on behalf of the Board

As per our report of even date
For A.R.Krishnan & Associates

SHIV BAJRANG SINGH SUNIL JAIN V. HARIBABU Chartered Accountants

(Director - DIN No: 10597820) (Director- DIN No: 09665264) (Director- DIN No: 09523733) FRN: 009805S

^LA Ý ^HAr^RENE . , . Anandaramakrishnan

Chief Financial Officer „ _x

Partner

Place: Chennai Mem. No. 209122

^{Date: 23}.⁰⁴.²⁰²⁵ UDIN: 25209122BMKVLA7554