b) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend, if any in Indian Rupees. The dividend proposed by the Board of Directors, if any is subject to approval of shareholders in the ensuing Annual General Meeting.

During the Year ended 31 March 2025, the amount of per share dividend recognised as distributions to Equity Shareholders was Nil (31 March 2024 Nil).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the shareholder.

Note: The Company received a disclosure from Plus Corporate Ventures Private Limited stating that it had sold shares on March 28, 2024, and a disclosure was received from Pranidhi Ventures Private Limited confirming the purchase of 392,974 shares, representing 6.25% of the total shareholding, on the same date. However, the change in shareholding was reflected in the Shareholding Pattern subsequent to March 31, 2024.

d) There is no shareholding held by the promoters or promoter group in the Company as at end of the current and previous year.

e) No Bonus shares have been issued during the year and in immediately preceding 5 years.

f) There has been no buy back of shares during the year and in immediately preceding 5 years.

g) Objectives of Capital Management

The Company maintains an actively managed capital base to cover risks inherent in the business and is meeting the capital adequacy requirements as prescribed by the Reserve Bank of India (RBI). The adequacy of the Company's capital is monitored using, among other measures, the regulations issued by RBI. Refer note 43 of Capital Management for the Company's objectives, policies and processes for managing capital.

Nature and purpose of the reserve Capital reserve

Capital reserve is the excess of net assets taken over cost of consideration paid during amalgamation. (Refer note 44)

Securities premium

Securities premium is used to record on the issue of shares. It can be utilised in accordance with the provisions of the Companies Act, 2013. Statutory reserves under Section 45-IC of The RBI Act, 1934

Statutory reserves is created as per the requirement of Reserve Bank of India (RBI) at the rate of 20% of the profit after tax for the year. Retained earnings

Retained earnings represents surplus of accumulated earnings of the Company and which are available for distributions to shareholders.

32 Earnings Per Share (EPS)

Basic EPS is calculated in accordance with Ind AS 33 'Earnings per share' by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders (after adjusting profit impact of dilutive potential equity shares, if any) by the aggregate of weighted average number of equity shares outstanding during the year and the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

The demand raised by the Assessing Officer during the course of assessment proceedings under section 147 for assessment year 2018-19 have been contested in appeal before jurisdictional CIT(A). The said appeal is pending before CIT(A). As per the management view, the Company has strong chances of success in this case, and hence no provision in respect thereof has been made in the books of account.

The demand pertains to Assessment Year 2012-13 and was assumed pursuant to a business combination. The status of the demand is yet to be updated on the Income Tax portal. Based on management's assessment, no provision is considered necessary to be recognized in the financial statements.

33.3 The Company is not involved in any disputes, lawsuits and claims, including commercial matters. The Company believes that there are no such pending matters that are expected to have any material adverse effect on its financial statements in any given accounting period.

37 Segment Reporting

The Company is primarily engaged in the business of providing loans and advances, investment in shares and other securities and other related activities. Based on the decisions related to allocation of resources to the segment and assess its performance, the Company has identified a single reportable segment in the context of Operating Segment as defined under Ind AS 108. All the operations of the Company are in India. All non-current assets of the Company are located in India. Accordingly, there are no separate reportable segments as per Ind AS 108, "Operating Segments".

42.2 Fair Value Hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation techniques: Level 1: Level 1 hierarchy includes financial instruments measured using unadjusted quoted prices in active markets that the Company has the ability to access for the identical assets or liabilities. A financial instrument is classified as a Level 1 measurement if it is listed on an exchange. Level 2: The fair value of financial instruments that are not traded in active markets is determined using valuation techniques which maximize the use of observable market data either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets, for substantially the full term of the financial instrument but do not qualify as Level 1 inputs.

Level 3: If one or more of the significant inputs is not based in observable market data, the instruments is included in level 3. The Company has measured contingent consideration based on Level 3.

42.3 Financial Instruments not measured at fair value

Financial assets not measured at fair value includes cash and cash equivalents, loans and other receivables. These are financial assets whose carrying amounts approximate fair value largely due to their short term nature.

Additionally, financial liabilities such as trade payables, borrowings and other financial liabilities are not measured at fair value, whose carrying amounts approximate fair value largely due to the nature of these liabilities.

Carrying values were assumed to be approximate fair values for these financial instruments as they are short-term in nature and their recorded amounts approximate fair values or are receivable or payable on demand.

42.4 Financial Risk Management

The Company's business activities expose it to a variety of financial risks, namely credit risk, liquidity risk and market risk. The Company's risk management assessment and policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company's activities.

This note explains the sources of risk which the Company is exposed to and how it manages the risk.

(a) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investments, derivative financial instruments, other balances with banks, loans and other receivables. The effective management of credit risk requires the establishment of appropriate credit risk policies and processes.

In regards to loans and advances of the Company, the credit risk is managed in accordance with the Expected Credit Losses ("ECL") policy by monitoring of credit risk basis the days past dues. The following staging criteria based on Days Past Dues (DPDs) fixed for Loan portfolio as per the Ind AS 109.

Stage 1 to Stage 2: More than 60 Days Past Due as criteria for Stage 2 classification.

Stage 2 to Stage 3: More than 120 Days Past Due as criteria for Stage 3 classification.

The Company has established a policy to perform an assessment, at the end of each reporting period, of whether a financial instrument's credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. The Company undertakes the classification of exposures within the aforesaid stages at borrower level.

Definition of default

A default on a financial asset is when the counterparty fails to make the contractual payments within 120 days of when they fall due. Accordingly, the financial assets shall be classified as Stage 3, if on the reporting date, it has been 120 days and above past due. Non-payment on another obligation of the same customer is also considered as a Stage 3.

The Calculation of ECL

ECL is a probability weighted credit losses (i.e. present value of all cash shortfalls) over the expected life of the financial instruments. Cash shortfalls are the difference between the cash flows that the entity is entitled to receive on account of contract and the cash flows that the entity expects to receive.

The mechanics of the ECL calculations are outlined below and the key elements are as follows:

(i) Portfolio Segmentation

The Company is engaged in the business of providing unsecured loans to SMEs and individuals with proprietary businesses, the borrower profiles are having similar risk characteristics across the loan book.

(ii) Exposure at default (EAD)

Exposure at Default gives an estimate of the amount outstanding when the borrower defaults. It is the total amount of an asset the entity is exposed to at the time of default. The exposure at default for the loan is outstanding principal and accrued interest.

(iii) Probability of default (PD)

Probability of Default is calculated based on historical default rate summary from previous financial periods using historical analysis.

(iv) Loss Given Default (LGD)

LGD for loan portfolio will be calculated at a portfolio level based upon the actual recovery data. In case of insufficient recovery information due to low/no defaults, a proxy LGD based on industry practice would be used.

(b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

(c) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk, such as equity price risk and commodity risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company is not exposed to any foreign currency risk as at the respective reporting dates.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. However, the Company is not significantly exposed to interest rate risk as at the respective reporting dates.

(ii) Price risk

Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. The Company is exposed to market price risk, which arises from FVTPL Investments, derivative financial instruments and Securities held for trade which are valued using quoted prices in active markets (level 1 investments). A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the prices existing as at the reporting date is given below:

43 Capital Management

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity shareholders of the Company. The primary objectives of the Company's capital management are to ensure that the Company complies with the externally imposed capital requirements and to maximise the 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. To maintain or adjust the capital structure, the entity may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors the return on capital, as well as debt to equity ratio, which is total debt divided by total equity. The Company's policy is to keep the optimum debt to equity ratio.

44 Business Combination

The Board of Directors ("Board") in their meeting held on December 24, 2024, had approved the Scheme of Arrangement for Amalgamation of Middle Path Trading Private Limited ("Transferor Company 1") and Shiraj Marketing Private Limited ("Transferor Company 2")

("Transferor Companies") with Purshottam Investofin Limited ("Transferee Company"/ "the Company") and their Respective Shareholders and Creditors ("Scheme") under the provisions of Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 ("Act") read with the Rules framed thereunder. The Hon'ble National Company Law Tribunal, New Delhi Bench ('NCLT'), vide its Order dated January 01, 2025, ("Order") (certified copy of which was received on January 30, 2025) has approved the scheme. The Appointed date of the Scheme is April 01, 2024. The Company had filed the certified copy of the order of NCLT sanctioning the scheme in form INC-28 with the Registrar of Companies on February 28, 2025 and accordingly, the scheme has become effective on February 28, 2025 ("Effective Date").

In terms of the Scheme, the Board of Directors of the company at its meeting held on March 24, 2025, has issued and allotted 23,37,303 fully-paid up equity shares of INR 10/- each to the eligible shareholders of the erstwhile Transferor Companies whose names appear in the their Register of Members as of the Effective Date, i.e., February 28, 2025. The said date has been considered as the Record Date for determining the eligible shareholders of the Transferor Companies entitled to receive the equity shares of the Company, as per the approved Scheme. The said equity shares as allotted to the shareholders of the Transferor Company 1 and Transferor Company 2 shall rank pari passu in all respects, with the existing equity shares of the Company. Further, the Board also noted the cancellation of 11,97,583 equity shares of INR 10/- each held by the Transferor Company 2 in the Company. Further, the Company was applied for the listing of these aforesaid allotted equity shares with BSE Ltd.

Consequent to the scheme become effective, the revised authorized share capital of the Company is Rs. 19,45,00,000/- (1,94,50,000 equity shares of Rs 10/- each) and Paid Up Share Capital is Rs. 7,42,32,950 (74,23,295 equity shares of Rs 10/- each).

The NCLT order effect had been considered for the year ended March 31, 2025 by transferring the carryings amount of all the assets and liabilities of the Transferor Company to the Transferee Company with effect from the Appointed date of April 1, 2024.

45 Transfer of Financial Assets

The Company has assigned some loans (earlier measured at amortised cost) by way of direct assignment. As per the terms of this deal, since substantial risk and rewards related to these assets were transferred to the extent of 90% of the assets transferred to the buyer the assets have been derecognised from the Company's books of account. The table below summarises the carrying amount of the derecognised financial assets:

49___Other Additional Information__

The disclosure on the following matters required under Schedule III as amended not being relevant or applicable in case of the Company, same are not covered

(a) The Company did not have any transaction which had not been recorded in the books of account that had been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(b) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(c) No proceedings have been initiated or are pending against the Company for holding any benami property under the Prohibition of Benami

Property Transactions Act, 1988 and rules made thereunder.

(d) The Company is not declared wilful defaulter by any bank or financial institutions or government

(e) The Company did not have any charges or satisfaction which were yet to be registered with ROC beyond the statutory period.

(f) The Company did not have any transactions with struck off companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(g) The Company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(h) The Compliance with number of layers prescribed under clause (87) of Section 2 of the Act read with Companies (Restriction on number of layers) Rule, 2017 is not applicable as the Company is registered as non banking financial Company with Reserve Bank India.

(i) 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.

50 These financial statements were authorised for issue by the Company's Board of Directors on May 30, 2025.

51 __The figures of the previous year have been re-grouped and re-arranged, wherever necessary, to confirm to current year classification.__