Notes to Accounts of Ashika Credit Capital Ltd.

Mar 31, 2025

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 surrounding 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.

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

1.14.3 Subsequent Measurement:

(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 gain in 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.

No Expected credit losses are recognised on
equity investments.

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.

If 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) I n 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,
maximizing the use of relevant observable inputs
and minimizing 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.

1.14.6Overview 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 upto 60 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. 60 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. 120 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.

While the presumption for inter-stage threshold
for Stage 1 is 30 days, the company has rebutted
the presumption and has considered 60 days
as the threshold. As per current market practice,
NBFCs typically tend to be paid later than banks
by borrowers since banks control their working
capital financing.

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.

In 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 utilization, 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 Recent pronouncements

The Ministry of Corporate Affairs vide notification
dated 9 September 2024 and 28 September
2024 notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024 and
Companies (Indian Accounting Standards) Third
Amendment Rules, 2024, respectively, which
amended/notified certain accounting standards
(see below), and are effective for annual reporting
periods beginning on or after 1 April 2024:

♦ Insurance contracts - Ind AS 117; and

♦ Lease Liability in Sale and Leaseback -
Amendments to Ind AS 116

The Company has reviewed the new
pronouncements and based on its evaluation
has determined that it is not likely to have any
material impact in its financial statements.

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

Investment property includes and represents a flat located 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
held for capital appreciation. The fair value of investment property is determined in accordance with
the advice of independent, professionally qualified registered valuer. 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.

(iv) 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.

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
face value of g 10/- each. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividend in Indian rupees. The dividend, if any, proposed by the Board
of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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/by way of bonus shares (during 5 years preceding 31st March, 2025)

The Company has not issued any Equity shares during the 5 year preceding 31st March, 2025 without
payment being received in cash/by way of bonus shares.

f. Refer Note No. 35- "Capital Management" for the Company''s objectives, policies and
processes for managing capital.

20.1 Preferential Allotment of Equity Shares and Convertible Warrants

1) During the year ended 31st March, 2025, pursuant to special resolution passed at Extraordinary General
Meeting held on 30th August, 2024, the Company has, on September 06, 2024, made allotment of
95,40,000 Equity shares of face value g 10 each on preferential basis for cash to promoters group and
certain identified non- promoters person/entity at a price of g 118 each (including a premium of g 108
each) aggregating to g 11,257.20 Lakhs.

Further the Company pursuant to aforesaid special resolution has, on 06th September, 2024, also
made allotment of 60,30,000 Convertible Warrants on Preferential Basis for cash to Promoter and
Non-Promoter at a price of g 118 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 g 108 each
aggregating to g 7,115.40 Lakhs. The Company has received 25% of the issue price per warrant i.e.
g 29.50 each as upfront payment aggregating to g 1,778.85 Lakhs. Each warrant, so allotted, is
convertible into an equal number of equity shares of face value g 10 each of the Company on receipt
of balance consideration.

Further the Company has received balance 75% of consideration amount for 25,00,000 warrants and
accordingly the said warrants are converted to equal number of Equity shares of face value of g 10
each on 09th November, 2024.

Further the Company has received balance 75% of consideration amount for 35,30,000 warrants and
accordingly, the said warrants are converted to equal number of equity shares of face value of g 10
each on 7th February, 2025.

2) During the year ended 31st March, 2025, pursuant to special resolution passed at Extraordinary General
Meeting held on 17th October, 2024, The Company has, on 28th October, 2024, made allotment of
12,69,000 Equity shares of face value g 10 each on preferential basis for cash to certain identified non¬
promoters person/entity at a price of g 306 each (including a premium of g 296 each) aggregating
to g 3,883.14 Lakhs.

Further the Company pursuant to aforesaid special resolution has, on 28th October, 2024, also
made allotment of 95,31,000 Convertible Warrants on Preferential Basis for cash to Promoter and
Non-Promoter at a price of g 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 g 296
each aggregating to g 29,164.86 Lakhs. The Company has received 25% of the issue price per warrant
i.e. g 76.50 each as upfront payment aggregating to g 7,291.22 Lakhs. Each warrant, so allotted, is
convertible into an equal number of equity shares of face value g 10 each of the Company, subject
to receipt of balance consideration of g 229.50 each (being 75% of the issue price per warrant)
aggregating to g 21,873.65 Lakhs from the allottees to exercise conversion option against each
such warrant.

Further the Company has received balance 75% of consideration amount for 43,88,800 warrants and
accordingly, the said warrants are converted to equal number of equity shares of face value of g 10
each on 07th February, 2025.

Further the Company has received balance 75% of consideration amount for 32,27,700 warrants and
accordingly, the said warrants are converted to equal number of equity shares of face value of g 10
each on 10th April, 2025.

Further the company has received balance 75% of consideration amount for 14,11,500 and 4,43,464
warrants and accordingly, the said warrants are converted to equal number of equity shares of face
value of g 10 each on 30th April, 2025 and 02nd May, 2025 respectively.

Further the Company has forfeited 25% of consideration, being the upfront payment aggregating
to g 45.55 Lakhs, for 59,536 warrants due to non-receipt of balance 75% consideration within the
warrants exercise period i.e. within 6 months from the date of allotment i.e. 28th October, 2024.

3) During the year ended 31st March, 2025, pursuant to special resolution passed at Extraordinary
General Meeting held on December 12, 2024, the Company has, on 26th December, 2024, made
allotment of 18,00,000 Convertible Warrants on Preferential Basis for cash to Non-Promoter at a price
of g 609 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 g 599 aggregating to g 10,962.00 Lakhs.
The Company has received 25% of the issue price per warrant i.e. g 152.25 each as upfront payment
aggregating to g 2,740.50 Lakhs. Each warrant, so allotted, is convertible into an equal number of
equity shares of face value g 10 each of the Company, subject to receipt of balance consideration
of g 456.75 each (being 75% of the issue price per warrant) aggregating to g 8,221.50 Lakhs from the
allottees to exercise conversion option against each such warrant.

Nature and Purpose of Reserves

(i) Statutory Reserve (pursuant to Section 45-IC of The Reserve Bank of India 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(1) 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.

(ii) Securities Premium:

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

(iii) Retained Earnings:

This reserve represents the cumulative profits of the Company. This can be utilised in accordance with the
provisions of the Companies Act, 2013.

32. Disclosure pursuant to Ind AS 19 - Employee Benefits

Defined Contribution Plans

The employees of the Company are entitled to receive benefits under the Provident Fund and Employees State
Insurance scheme in which both the employee and the Company contribute monthly at a stipulated rate. The
Company has recognised an amount of g7.70 Lakhs (Previous year: g 7.53 Lakhs) for the year ended 31st March,
2025 as an expense in the Statement of Profit and Loss.

Defined Benefit Plans

The Company provides for gratuity, a defined benefit plans (unfunded) covering all employees. Under the
Gratuity plan, every employee is entitled to gratuity as laid down under the Payment of Gratuity Act, 1972.
Gratuity is payable on death/retirement/termination and the benefit vests after 5 year of continuous service.
The present value of the obligation under such defined benefit plans is determined based on actuarial
valuation, carried out by an independent actuary at each Balance Sheet date, using the Projected Unit Credit
Method, which recognises each period of service as giving rise to an additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation.

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.

35. 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 objectives of the Company''s capital management is to ensure that the Company 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. The
Company has complied with Paragraph 10 of Master direction - Reserve Bank of India (Non Banking Financial
company -Scale Based Regulation) Direction, 2023.

36. Financial Instruments and Related Disclosures

This section gives an overview of the significance of financial instruments for the Company and provides
additional information on balance sheet items that contain financial instruments.

The details of material accounting policies, including the criteria for recognition, the basis of measurement
and the basis on which income and expenses are recognised in respect of each class of Financial Asset,
Financial Liability and Equity Instrument are disclosed in Note No. 1.14 to the Standalone financial statements.

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.

B) 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.

Valuation techniques with significant unobservable inputs (Level 3): If one or more of the significant inputs
is not based on observable market data, the instrument is included in level 3. This is the case for investment in
unlisted equity instruments carried at FVTPL included in level 3.

Valuation technique and Key inputs

(i) Equity Instruments: The listed equity instruments are actively traded on stock exchanges with readily
available active prices on a regular basis. Such instruments are classified as Level 1. Unlisted equity
instruments are classified as Level 3.

(ii) Investment in Mutual funds and Alternative investment funds: Units held in the funds of Mutual funds
and AIF are measured based on their net asset value (NAV), taking into account redemption and/or other
restrictions. Such instruments are generally Level 2. NAV represents the price at which the issuer will issue
further units of funds and the price at which the issuers will redeem such units from the investors.

(iii) Derivatives financial instruments: Equity linked future and option contracts are measured on the basis
of active market price of underlying equity instruments. Such instruments are classified as Level 2.

Sensitivity of fair value measurements to changes in unobservable market data

Since there are no assets and liabilities measured at fair value where significant unobservable inputs are
used, hence the disclosure are not applicable.

37. Risk Management

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 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, minimize 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.

---

Mar 31, 2024

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 surrounding 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 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 financial statements.

Contingent Assets

Contingent assets are not recognised in the 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 derecognised 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.

1.14.3 Subsequent Measurement:

(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 gain in 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.

No Expected credit losses are recognised on equity investments.

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.

If 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.

If 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 derecognition 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, maximizing the use of relevant observable inputs and minimizing 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 upto 60 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. 60 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. 150 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.

While the presumption for inter-stage threshold for Stage 1 is 30 days, the company has rebutted the presumption and has considered 60 days as the threshold. As per current market practice, NBFCs typically tend to be paid later than banks by borrowers since banks control their working capital financing.

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 Accounting judgements, estimates and assumptions

The preparation of 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.

In particular, information about significant areas of estimation, uncertainty and judgements in applying accounting policies that have the most significant effect on the amounts recognised in the 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 utilization, 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 Recent 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. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards.

Defined Contribution Plans

The employees of the Company are entitled to receive benefits under the Provident Fund and Employees State Insurance scheme in which both the employee and the Company contribute monthly at a stipulated rate. The Company has recognised an amount of '' 7.53 Lakhs (Previous year: '' 7.57 Lakhs) for the year ended 31st March, 2024 as an expense in the Statement of Profit and Loss.

Defined Benefit Plans

The Company provides for gratuity, a defined benefit plans (unfunded) covering all employees. Under the Gratuity plan, every employee is entitled to gratuity as laid down under the Payment of Gratuity Act, 1972. Gratuity is payable on death / retirement / termination and the benefit vests after 5 year of continuous service. The present value of the obligation under such defined benefit plans is determined based on actuarial valuation, carried out by an independent actuary at each Balance Sheet date, using the Projected Unit Credit Method, which recognises each period of service as giving rise to an additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

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.

Sensitivity Analysis

The Sensitivity Analysis below has been determined based on reasonably possible change of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation. While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation and the asset value changes may offset the impact to some extent. For presenting the sensitivities, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the Defined Benefit Obligation presented above.

35. 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 objectives of the Company''s capital management is to ensure that the Company 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. The Company has complied with Paragraph 10 of Master direction - Reserve Bank of India (Non Banking Financial company -Scale Based Regulation ) Direction, 2023.

36. Financial Instruments and Related Disclosures

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of Financial Asset, Financial Liability and Equity Instrument are disclosed in Note No. 1.14 to the financial statements.

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.

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.

B) 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.

Valuation techniques with significant unobservable inputs (Level 3): If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for investment in unlisted equity instruments and investments in AIF carried at FVTPL included in level 3.

(i) Equity Instruments: The listed equity instruments are actively traded on stock exchanges with readily available active prices on a regular basis. Such instruments are classified as Level 1. Unlisted equity instruments are classified as Level 3.

(ii) Investment in Mutual funds and Alternative investment funds: Units held in the funds of Mutual funds and AIF are measured based on their net asset value (NAV), taking into account redemption and/or other restrictions. Such instruments are generally Level 2. NAV represents the price at which the issuer will issue further units of funds and the price at which the issuers will redeem such units from the investors.

(iii) Derivatives financial instruments: Equity linked future and option contracts are measured on the basis of active market price of underlying equity instruments. Such instruments are classified as Level 2.

Sensitivity of fair value measurements to changes in unobservable market data

Since there are no assets and liabilities measured at fair value where significant unobservable inputs are used, hence the disclosure are not applicable.

37. Risk Management

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, minimize 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) Foreign Currency Risk

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

(ii) 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.

(iii) Interest Rate Risk

The Company is not exposed to interest rate risk as it has borrowings at fixed rate of interest. There are no long term borrowings at floating interest rate which would affect the profitability of the Company due to fluctuation in interest rate.

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 finacial 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.

41. 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 31sth March, 2024 and 31st March,2023.

42. 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.

43. As at 31st March, 2024 and as at 31st March, 2023, there are no loans or advances in the nature of loans granted to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of repayment.

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

45. There are no transactions not recorded in the books of accounts during the year ended 31st March, 2024 and 31st March,2023 that has been surrendred 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, 2024 and 31st March, 2023.

46. The Company is not declared as wilful defaulter by any bank or financial Institution or other lender during the year ended 31st March, 2024 and 31st March, 2023.

47. Utilisation of Borrowed Funds and Share Premium

(A) During the year ended and as at 31st March, 2024 and 31st March, 2023, 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) During the year ended and as at 31st March, 2024 and 31st March, 2023, 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.

48. The Company has not traded or invested in any Crypto Currency or Virtual Currency during the year during the year ended 31st March, 2024 and 31st March, 2023.

49. Information as required in terms of Master Direction - Reserve Bank of India( Non Banking Financial Company-Scale Based regulation) Directions,2023 is furnished vide Annexure - I attached herewith. These disclosures are prepared under Ind AS issued by MCA unless otherwise stated.

50. The Company''s operating segments is established in the manner consistent with the components of the company that are evaluated regularly by the Chief Operating Decision Maker as defined in Ind AS 108, "Operating Segments”. The business of the Company falls within a single operating reportable segment viz., ''Financial services'' and hence, there are no separate reporting segments as per Ind AS 108, "Operating Segments”.

51. There is no Loan receivable as on March 31, 2024, Hence, Disclosure,”A comparison between provisions required under Income Recognition, Asset Classification and Provisioning (''IRACP'') and impairment allowances made under Ind AS 109”, as per paragraph 10 of Master Direction - Reserve Bank of India( Non Banking Financial Company-Scale Based Regulation) Directions,2023 is not being disclosed.

52. The Company does not have any subsidiary as at 31st March, 2024 and 31st March, 2023 and accordingly clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.

53. Figures pertaining to previous year have been rearranged/ regrouped, wherever necessary, to make them comparable with those of current year.

SIGNATURE TO NOTES 1 TO 53

As per our report of even date attached.

For DMKH & Co. For and on behalf of the Board of Directors

Chartered Accountants

ICAI Firm Registration No. 0116886W

Manish Kankani Pawan Jain Daulat Jain

Partner Executive Chairman Managing Director & Chief Executive Officer

Membership No. 158020 (DIN: 00038076) (DIN: 00040088)

Place: Kolkata Place: Kolkata

Anju Mundhra Gaurav Jain

Company Secretary Chief Financial Officer

Place: Kolkata (F6686) Place: Kolkata

Date: May 13, 2024 Place: Kolkata

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Mar 31, 2018

1(a) Corporate Information

Ashika Credit Capital Limited (the ''Company'') is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The shares of the Company are listed on The Calcutta Stock Exchange Limited and Metropolitan Stock Exchange of India Limited. The Company received a Certificate of Registration from the Reserve Bank of India (''RBI'') on 07th September, 1998 to commence/carry on the business of Non Banking Financial Institution ("NBFI").

2.1 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 RS.10/- each. Each holder of equity shares is entitled to one vote per share.

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. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.2 Shares allotted as fully paid-up without payment being received in cash/by way of bonus shares (during 5 years preceding 31st March, 2018) -

The Company has not issued any shares without payment being received in cash/ by way of bonus shares since 2012-13.

2.3 The Company had issued and allotted 38,05,174 Equity Shares of the face value of RS.10 each at a premium of RS.26 per share on preferential basis to some of the Promoter and Non-Promoter Group Entities on 27th March, 2018.

2.4 MONEY RECEIVED AGAINST SHARE WARRANTS

The Company had issued and allotted 10,80,000 Fully Convertible Warrants to one of the Promoter Group Entities on a preferential basis on 27th March, 2018 on receipt of 25% of the issue price amounting to RS.97.20 Lakh, entitling it to obtain equivalent number of equity shares of RS.10 each fully paid-up (including premium of RS.26 per share).

3.1 Nature of certain provisions and their movement

Provision for Bad Debts is made in the financial statements according to the Prudential Norms prescribed by RBI for NBFCs.

The Company creates a general provision at 0.25% of the standard assets outstanding on the balance sheet date, as per the RBI Prudential Norms.

4. DEFERRED TAX ASSETS (Net)

In terms of Accounting Standard 22, the net Deferred Tax Asset (DTA) reversed during the year is RS.97.38 lakhs (Previous year: RS.78.29 lakhs). Consequently, the net DTA as at year-end stands at RS.119.10 lakhs (Previous Year: RS.216.48 lakhs). The break-up of deferred tax is as follows:

¹ Secured by way of maintaining a margin of such percentage as stipulated in the Loan Agreement relevant to the loan facility or as varied by the Company consisting of securities acceptable to the Company.

² Includes Non-Performing Assets of RS.150 lakhs (Previous year RS.845 lakhs).

5. LEASES

In the capacity of Lessee

(i) The Company has cancellable operating lease arrangement for office premises, which is of 3 years and is usually renewable by mutual consent, on mutually agreeable terms. Lease payments charged to the Statement of Profit and Loss with respect to such leasing arrangement aggregate to RS.0.90 lakhs (Previous year Nil).

(ii) Further, the Company has a non-cancellable operating lease arrangements for office premises, which is of 3 years and is usually renewable by mutual consent on mutually agreeable terms. In respect of such arrangements, lease payments for the year aggregating to RS.1.20 lakhs (Previous year RS.1.20 lakhs) have been recognised in the Statement of Profit and Loss.

6. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD 18 - RELATED PARTY DISCLOSURES Key Management Personnel (KMP) :

Pawan Jain - Executive Chairman and Whole time Director Daulat Jain - Managing Director & Chief Executive Officer

Anju Mundhra - Company Secretary (Resigned from post of Director w.e.f. 20.11.2017)

Amit Jain - Chief Financial Officer

Enterprises over which KMP and/or relative of such KMP is able to exercise significant influence (with whom transactions have taken place during the year):

Ashika Global Securities Pvt. Ltd.

Ashika Stock Broking Ltd.

Ashika Hedge Fund Pvt. Ltd.

Ashika Share Trading Pvt. Ltd.

Ashika Business Pvt. Ltd.

Puja Sales Promotion Pvt. Ltd.

Shishir Exports Pvt. Ltd.

Pawan Jain (HUF)

7. CIF Value of Imports : Nil (Previous Year: Nil)

8. Expenditure in Foreign Currency : Nil (Previous Year: Nil)

9. Earnings in Foreign Currency : Nil (Previous Year: Nil)

10. Information as required in terms of paragraph 18 of Master Direction - Non-Banking Financial Company -Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 is furnished vide Annexure - I attached herewith.

11. Previous year''s financial statements have been audited by PK.Sah & Associates, Chartered Accountants.

12. Figures pertaining to previous year have been rearranged/ regrouped, wherever necessary, to make them comparable with those of current year.

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Mar 31, 2015

1. Company Information

Ashika Credit Capital Limited (the Company) is a public limited company domiciled in India and incorporated under the Companies Act, 1956. It''s shares are listed on The Calcutta Stock Exchange Limited since 20th September 2000 and MCX Stock Exchange Ltd. w.e.f 3rd November, 2014 & also traded under the "permitted securities" category at the nationwide platform of BSE Ltd. since 11th November, 2011. The Company is a RBI registered Non-Deposit taking Non Banking Financial Company, carrying on NBFI activities. It is mainly engaged in the business of financing, providing loans and advances, ICD and investment & trading in shares and securities.

2 : Share Capital

b) Terms / rights attached to Equity Shares

The Company has only one class of equity shares having par value of Rs.10/- per share. All these shares have the same right with respect to payment of dividend, repayment of capital and voting. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company the holders of equity shares will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by them.

Nature of certain provisions and their movement

Provision for non-performing assets (NPAs) is made in the financial statements according to the Prudential Norms prescribed by RBI for NBFCs. The Company creates a general provision at 0.25% of the standard assets outstanding on the balance sheet date, as per the RBI Prudential Norms.

3. Contingent Liabilities :

Income Tax dispute under Appeal (net of payment) Rs. 314,820/- (P.Y. 442,030/-).

4. There are no outstanding derivatives contracts as on the balance sheet date (P.Y. Nil).

5. Pursuant to the Companies Act, 2013 becoming effective from 1st April, 2014, the Company has recomputed the depreciation based on the useful life of the assets as prescribed in Schedule II of the Act. As per the transitional provision, the carrying value of the assets as on 1st April, 2014 is reduced by Rs. 1,26,997/- and the amount (net of deferred tax of Rs. 39,242/-) is adjusted in the opening balance of retained earnings. Had the Company continued with the previously adopted policy the depreciation for the year ended on 31st March, 2015 would have been higher by Rs. 57,290/-

6. Employee Benefits

(b) Defined Benefit Plan

The Company has provided for gratuity & privilege leave benefits liability based on actuarial valuation done as per the projected unit credit method. The scheme is unfunded.

The following tables summarize the components of net benefit expenses recognized in the Statement of Profit and Loss and amounts recognized in the balance sheet for the respective plan.

7. Related Parties Disclosures

Related parties disclosures, as stipulated by Accounting Standard-18 ''Related Party Disclosures'', issued by ICAI, are given below:

a) List of Related Parties:

i) Key Management Personnel:

Pawan Jain, Managing Director & CEO.

Amit Jain, Chief Financial Officer

Anju Mundhra, Executive Director-Legal & Company Secretary (Director w.e.f 1st February 2015)

ii) Relatives of Key Management Personnel

Kanchan Devi Jain

iii) Enterprises in which Key Management Personnel & their Relatives having Significant Influence:

Ashika Stock Broking Ltd.

Ashika Global Securities Pvt. Ltd. (formerly, Ashika Global Securities Ltd)

Ashika Capital Ltd.

Ashika Commodities & Derivatives Pvt. Ltd.

Ashika Global Finance Pvt. Ltd.

Ashika Logistics Pvt. Ltd.

Ashika Venture Capital Pvt. Ltd.

Ashika Business Pvt. Ltd.

Ashika Share Trading Pvt. Ltd.

Ashika Hedge Fund Pvt. Ltd.

Ashika Properties Pvt. Ltd.

Ashika Technology Pvt. Ltd.

Ashika Minerals India Pvt. Ltd.

Puja Sales Promotion Pvt. Ltd.

Pawan Jain (HUF)

Daulat Jain (HUF)

Puranmal Jain & Sons (HUF)

b) Transactions with Related Parties:

Aggregate Related Party Transactions as at and for the year ended on 31st March, 2015 (Transactions have been taken place on arm''s length basis.)

8. Foreign Currency Transactions : Nil (P.Y. Nil)

9. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

10. Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2014

1. There are no contingent Lianbilities as on the Balance Sheet Date

(a) Defined benefit plan

The Company has provided for gratuity, privilege /sick leave befts liability based on actuarial valuation done as per the projected unit method. The scheme is unfunded.

The following tables summarise the components of net benefit expenses recognised in the Statement of profit and Loss and amounts recognised in the balance sheet for the respective plan.

*Adjusted for Rs. 1,136/- being the opening sick leave obligation no longer required as there is no outstanding sick leave as on the balance sheet date.

2 related parties Disclosures

Related parties disclosures, as stipulated by Accounting Standard – 18- Related Party Disclosures, issued by ICAI, are given below:

a) list of related parties: i) Key management personnel:

Mr. Pawan Jain, Managing Director

Mr. Daulat Jain (Director upto 30th April, 2013)

ii) relatives of Key management personnel

Kanchan Devi Jain

iii) enterprises in which Key management personnel & their relatives having significant infuence:

Ashika Stock Broking Ltd.

Ashika Global Securities Pvt. Ltd. (formerly Ashika Global Securities Ltd.)

Ashika Capital Ltd.

Ashika Commodities & Derivatives Pvt. Ltd.

Ashika Global Finance Pvt. Ltd.

Ashika Logistics Pvt. Ltd. (formerly Ashika Insurance Broking & Risk Management Pvt. Ltd.)

Ashika Venture Capital Pvt. Ltd.

Ashika Business Pvt. Ltd. (formerly Ashika Forex Services Pvt. Ltd.)

Ashika Share Trading Pvt. Ltd.

Ashika Hedge Fund Pvt. Ltd.

Ashika Properties Pvt. Ltd.

Ashika Technology Pvt. Ltd.

Ashika Minerals India Pvt. Ltd. (formerly Ashika Wealth Management Pvt. Ltd)

Puja Sales Promotion Pvt. Ltd.

Kanchan Devi Puranmal Patni Charitable Trust

Pawan Jain (HUF)

Daulat Jain (HUF)

Puranmal Jain & Sons (HUF)

b) transactions with related parties:

Aggregate Related Party Transactions as at and for the year ended on 31st March, 2014 (Transactions have been taken place on arm''s length basis.)

3. Foreign Currency Transactions : Nil (P.Y. Nil)

4. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non - Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

5. Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

Ashika Credit Capital Limited (the Company) is a public limited company domiciled in India and incorporated under the Companies Act, 1956. It’s shares are listed and traded on The Calcutta Stock Exchange Limited since 20th September, 2000 and also traded under the “Permitted Securities” category at the nationwide platform of BSE Ltd. since 11th November, 2011. The Company is a RBI registered non-deposit taking Non Banking Financial Company, carrying on NBFI activities. It is mainly engaged in the business of financing, providing loans and advances and investment & trading in shares and securities.

Note 1

RELATED PARTIES DISCLOSURES

Related parties disclosures, as stipulated by Accounting Standard – 18- Related Party Disclosures, issued by ICAI, are given below:

a) List of Related Parties:

i) Key Management Personnel:

Mr. Pawan Jain, Managing Director

Mr. Daulat Jain, Director

ii) Enterprises owned by Key Management Personnel or their Relatives: Ashika Stock Broking Ltd. Ashika Global Securities Ltd. Ashika Capital Ltd.

Ashika Commodities & Derivatives Pvt. Ltd. Ashika Global Finance Pvt. Ltd.

Ashika Logistics Pvt. Ltd. (formerly Ashika Insurance Broking& Risk Management Pvt. Ltd.) Ashika Venture Capital Pvt. Ltd.

Ashika Business Pvt. Ltd. (formerly Ashika Forex Services Pvt Ltd) Ashika Share Trading Pvt. Ltd. Ashika Hedge Fund Pvt. Ltd. Ashika Properties Pvt. Ltd. Ashika Technology Pvt. Ltd.

Ashika Minerals India Pvt. Ltd. (formerly Ashika Wealth Management Pvt. Ltd) Puja Sales Promotion Pvt. Ltd. Kanchan Devi Puranmal Patni Charitable Trust

2. Foreign Currency Transactions : Nil (P.Y. Nil)

3. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non - Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

4. Previous years’ figures have been regrouped/ reclassified wherever necessary to correspond with the current years’ classification / disclosure.

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Mar 31, 2012

Note 01 COMPANY INFORMATION

Ashika Credit Capital Limited (the Company) is a public limited Company domiciled in India and incorporated under the Companies Act'1956. Its shares are listed and traded on The Calcutta Stock Exchange Limited since 20th September, 2000 and also traded under the "permitted securities" category at the nationwide platform of BSE Ltd. since 11th November, 2011. The Company is RBI Registered non-deposit taking Non-Banking Financial Company carrying on NBFI activities. It is mainly engaged in the business of financing, providing loans and advances and investment and trading in shares and securities.

Note 02 Change IN ACCOUNTING POLICIES

Presentation and disclosure of financial statements

During the year ended 31st March 2012, the revised Schedule VI under the Companies Act 1956 has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

Leave Benefits Employees

Till previous year the Company followed the policy to pay sick leave and privilege leave benefit to employees on year to year basis. From 1st April, 2011 the Company has changed its policy not to pay on year to year basis and instead accumulate the same to be paid at the time retirement or termination, as the case may be. The above change in policy does not have any material impact to the profit and loss position vis-a-vis state of affairs of the Company.

a) Terms / rights attached to Equity Shares

The Company has only one class of equity shares having par value of Rs.10/- per share. All these shares have the same right with respect to payment of dividend , repayment of capital and voting.

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.

(Amount in Rupees) Year ended Year ended

31 March, 2012 31 March, 2011

Note 3 CONTINGENT LIABlLITIES NOT PROVIDED FOR IN RESPECT OF:

Bank Guarantee (jointly with two other guarantors) in favour of M/s Ashika Stock - 10,00,00,000/-

Broking Limited, Company in which two of the directors are interested. Aggregate value.

Note:

a) The Company operates in only one geographic segment i.e. 'within India' and hence no separate information for geographic segment vide disclosure is required.

b) Segment revenue, results, assets and liabilities include amounts identifiable to each segment and amounts allocated on a reasonable basis.

c) The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information as disclosed in note no. 1.1

NOTE 4 EMPLOYEE BENEFITS:

(a) Defined Contribution Plans

Contribution to Regional Provident Fund Authority charged to Profit and Loss Account during the year is Rs.160,658/- (P.Y. Rs. 47,619/-).

(b) Defined Benefit Plans (i) Gratuity :

The Company has provided for gratuity liability based on actuarial valuation done as per the projected unit method. The scheme is unfunded.

The following tables summarise the components of net benefit expenses recognised in the Profit and Loss Account and amounts recognised in the balance sheet for the respective plan.

iii) Sick Leave to Employees:

The Company has provided for Leave benefits liability based on actuarial valuation done as per the projected unit method. The scheme is unfunded.

The following tables summarise the components of net benefit expenses recognised in the Profit and Loss Account and amounts recognised in the balance sheet for the respective plan:

5. None of the Fixed Assets of the Company are considered impaired as on the Balance Sheet date.

6. Foreign Currency Transactions : Nil (P.Y. Nil)

7. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

8. The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous years' figures have been regrouped/ reclassified wherever necessary to correspond with the current years' classification / disclosure.

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Mar 31, 2011

1. Contingent Liabilities not provided for in respect of :

(Amount in Rs.)

Particulars As at As at 31st March, 2011 31st March, 2010

Bank Guarantee (jointly with two other guarantors) in favour of M/s Ashika Stock 10,00,00,000/- 7,50,00,000/- Broking Limited, Company in which two of the directors are interested. Aggregate value

2. Sundry Debtors (Schedule - 6) includes

a) Rs.27,59,118 (P.Y. 7,50,61,893) receivable from M/s. Ashika Stock Broking Ltd., a Company in which two of the directors are interested.

b) Rs.97,56,989 (P.Y. Nil) receivable from M/s. Ashika Commodities & Derivatives Pvt. Ltd. a Company in which two of the directors are interested.

3. Other Current Assets (Schedule -8) Includes Interest accrued on Securities Margin Rs. 43,36,833/- (P.Y. Nil) receivable from M/s. Ashika Commodities & Derivatives Pvt. Ltd, a Company in which two of the directors are interested.

4. The Company has not received any memorandum (as required to be filled by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March, 2011 as micro, small or medium enterprise. Consequently the amount paid/payable to these parties during the year is Nil. (P.Y. Nil).

Note: - Deferred Tax Assets on carried forward capital loss is not recognised in view of uncertainty of it's recovery.

Note: (i) Remuneration paid to Managerial Personnel is within the limit specified in Part II to Schedule XIII to the Companies Act, 1956.

(ii) Provision for gratuity in respect of above Managerial Personnel is not included above, as actuarial valuation is done on an overall basis.

5. Since the Board had deferred the matter in relating to the proposed Further Public Offer (FPO) by the Company, expenses relating to such issue incurred so far has been kept as such under the head' Miscellaneous Expenditure' and will be written off or adjusted in the year of Issue of shares.

6. Segment Reporting :

Segment information for the year ended 31st March, 2011. Primary Segment information (by business segment)

Note:

a) The Company operates in only one geographic segment i.e. 'within India' and hence no separate information for geographic segment vide disclosure is required.

b) Segment revenue, results, assets and liabilities include amounts identifiable to each segment and amounts allocated on a reasonable basis.

c) The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial information as disclosed in (A) above.

Note: The above figures are exclusive of Rs. 2,20,600/- (P.Y. Rs. 29,781/- (the figure are inclusive of service tax), being the certification fees paid and included under the 'Share Issue Expenses'.

Note : The entire Closing Stocks are held at a nominated warehouse of National Spot Exchange Limited.

7. Employee Benefits :

The Company has provided for gratuity liability based on actuarial valuation done as per the projected unit method. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is unfunded.

The following tables summarize the components of net benefit expenses recognized in the Profit & Loss Account and amounts recognized in the balance sheet for the respective plan.

8. Related Parties Disclosures :

Related parties disclosures, as stipulated by Accounting Standard - 18- Related Party Disclosures, issued by ICAI, are given below:

a) List of Related Parties :

i) Key Management Personnel:

Mr. Pawan Jain, Managing Director.

Mr. Daulat Jain, Director. ii) Enterprises owned by Key Management Personnel or their Relatives:

Ashika Stock Broking Ltd.

Ashika Global Securities Ltd.

Ashika Capital Ltd.

Ashika Commodities & Derivatives Pvt. Ltd.

Ashika Global Finance Pvt. Ltd.

Ashika Insurance Broking & Risk Management Pvt. Ltd.

Ashika Venture Capital Pvt. Ltd.

Ashika Forex Services Pvt. Ltd.

Ashika Share Trading Pvt. Ltd.

Ashika Hedge Fund Pvt. Ltd.

Ashika Properties Pvt. Ltd.

Ashika Technology Pvt. Ltd.

Ashika Wealth Management Pvt. Ltd.

b) Transactions with Related Parties :

Aggregate Related Party Transactions as at 31st March, 2011 (Transactions have been taken place on arm's length basis.)

Notes : Figures in brackets represent figures of previous year.

9. None of the Fixed Assets of the Company are considered impaired as on the Balance Sheet date.

10. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

11. Previous year's figures have been rearranged or regrouped wherever deemed necessary to conform to current year presentation.

12. Current Year Business Profile and Balance Sheet Abstract are annexed hereto.

* represents the investments in unquoted equity shares which are taken at their respective bookvalue in absence of availability of break-up zvalue as on 31st March, 2011 of the invested companies.

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Mar 31, 2009

1. The Company has given guarantee (jointly with two other guarantors) to a bank in favour of M/s Ashika Stock Broking Limited, a Company in which two of the directors are interested. Amount outstanding as on 31st March, 2009 is Rs.7.50 Crores,

2. Loans and Other Credit Facilities (Schedule – 9) includes –

a) Rs.142,172/- (P.Y. Rs.36,59,733/-) to M/s Ashika Forex Services Pvt Ltd , a Company in which two of the directors are interested. Maximum amount outstanding at a point of time is Rs.34,59,733/- (P.Y. Rs. 50,00,000/-)

b) Rs.57,85,323/- (P.Y. Rs.1,79,69,202/-) to M/s Ashika Global Securities Ltd, a Company in which two of the directors are interested. Maximum amount outstanding at a point of time is Rs.13, 81,69,202/- (P.Y Rs. 5,01,00,000/-).

c) Rs.406,243/- (P.Y. Nil) to M/s Ashika Insurance Broking & Risk Management Pvt. Ltd, a Company in which two of the directors are interested. Maximum amount outstanding at a point of time Rs.11, 50,000/- (P.Y Nil)

3. Based on the information given by the Company, no creditor is covered under Micro, Small and Medium Enterprise Development Act, 2006. As a result, no interest provisions / payments have been made by the company to such creditors, if any and no disclosures thereof are made in these accounts.

Note: (i) Remuneration paid to Manager is within the limit specified U/s Part II to Schedule XIII to the Companies Act, 1956.

(ii) As the future liability for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to the Manager is not ascertainable and, thereof, not included above.

# Includes Rs. 36,609.39 being Impact of deferred tax assets as on 1st April, 2008 as per revised As- 15. Note: - Deferred Ta x Assets on carried forward capital loss is not recognised in view of uncertainty of it's recovery.

4. The Company is mainly engaged in only one Business Segment i.e. the business of Investing and Financing related Activities and its operation is confined to only one Geographical Segment i.e. India. All other activities of the Company revolve around the main business. As such, no further disclosure under Accounting Standard 17 – Segment Reporting issued by the Institute of Chartered Accountants of India is required.

5. Employee Benefits

In the current year the Company has adapted accounting Standard 15 (revised) employee benefit which is mandatory from accounting period commencing on or after Dec., 2006, Accordingly, the company has provided for gratuity liability based on actuarial valuation done as per the projected unit credit method. This change does not have any material impact on the profit for the year. Further, in accordance with the translation provision allowed in AS – 15, a sum of Rs.81,867.61/- (net of Deferred tax assets Rs.36,609.39) being the impact of such change on the respective liabilities upto 31st March, 2008 has been adjusted against the opening credit balance of Profit & Loss Account. The scheme is unfunded.

The following tables summarize the components of net benefit expenses recognized in the Profit & Loss Account and funded status and amounts recognized in the balance sheet for Gratuity.

(vi) The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factor, such as supply and demand in the employment market.

(vii) The Company as on the balance sheet date does not have any employee who has completed five years of service. Therefore, although the provision for gratuity has been made as at year end, the Company has not contributed any amount to the gratuity fund. The Company expects to contribute Rs.48,372/- to Gratuity fund in 2009-2010.

Note : The current year being the first year of adoption of As – 15 (revised) by the Company, the previous year's comparative information have not been furnished.

6. Related Parties Disclosures

Related parties disclosures, as stipulated by Accounting Standard – 18- Related Party Disclosures, issued by ICAI, are given below:

a) List of Related Parties:

i) Subsidiary Company upto 3rd November, 2008:

Ashika Capital Limited. (upto 3rd November, 2008) Ashika Insurance Broking & Risk Management Pvt. Ltd. (fellow subsidiary upto 3rd November, 2008)

ii) Key Management Personnel:

Mr. Pawan Jain

Mr. Daulat Jain.

iii) Enterprises owned by Key Management Personnel or their Relatives:

Ashika Stock Broking Ltd.

Ashika Global Finance Pvt. Ltd.

Ashika Venture Capital Pvt. Ltd.

Ashika Forex Services Ltd.

Ashika Global Securities Ltd.

Ashika Properties Pvt. Ltd.

Ashika Technologies Pvt. Ltd.

Ashika Commodities & Derivatives Pvt. Ltd.

b) Transactions with Related Parties

Aggregate Related Party Transactions as at and for the year ended 31st March, 2009 (Transactions have been taken place on arm's length basis.)

7. None of the Fixed Assets of the Company are considered impaired as on the Balance Sheet date.

8. Transactions in Foreign Currency – Nil (Previous year Nil).

9. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

10. Previous year's figures have been rearranged or regrouped wherever deemed necessary to conform to current year presentation.

11. Current Year Business Profile and Balance Sheet Abstract are annexed hereto.

* represents the investments in unquoted equity shares which are taken at their respective book value in absence of availability of break-up value of the invested company.

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Mar 31, 2008

1. In the opinion of the Board and to the best of their knowledge and belief the realisable value of Current Assets in the ordinary course of business, would not be less than the amount at which they are stated at the Balance Sheet. Provisions for all known liabilities are provided for in full in the book of accounts and the same are adequate and not in excess of the amount reasonably necessary.

2. The Company has no contingent liabilities as on the Balance Sheet date.

3. Loans and Other Credit Facilities (Schedule – 9) includes –

a) Rs.36,59,733/- to M/s Ashika Forex Services Pvt Ltd , a Company in which two of the directors are interested . Maximum outstanding amount at a point of time is Rs.50,00,000/-

b) Rs.1,79,69,202/- to M/s Ashika Global Securities Ltd , in which two of directors are interested. Maximum amount outstanding at a time is Rs.5,01,00,000/-.

c) Rs.2,13,335/- to M/s Ashika Properties (P) Ltd, in which two of directors are interested. Maximum outstanding Rs.2,00,000/-.

4. Interest Accrued on Margin Money Deposits Rs. 9,10,963/- (Refer Schedule – 9) is due from M/s. Ashika Stock Broking Ltd., a Company in which two of the Directors are interested.

5. Secured loans given to customers amounting to Rs. 1,11,31,400/- (Refer Schedule – 9) is secured against margin of tradable shares having market value as on 31st March, 2008 of Rs. 3,43,91,500/-. The same shares are further being transferred to the account of Company's Broker as margin.

6. Sundry Debtors (Schedule – 7) represents Rs. 12,11,973.71 to M/s. Ashika Stock Broking Ltd., a Company in which two of the Directors are interested.

7. There are no Micro and Small Enterprises to whom the company owes which are outstanding for more than 45 days as at 31st March, 2008. This Information has been provided to the extent such parties have been identified by the company based on information available with it and has been relied upon by the auditors.

8. Transactions in Foreign Currency – Nil (Previous year Nil)

Note: Deferred Tax Assets on carried forward capital loss is not recognised in view of uncertainty of its recovery.

9. Additional Information as required under Schedule VI to the Companies Act, 1956 :

Note : Figures are rounded off to the nearest ruppee

10. None of the Fixed Assets of the Company are considered impaired as on the Balance Sheet date.

11. In the opinion of the management, during the year the company is mainly engaged in the business of Investing and Financing related Activities. All other activities of the Company revolve around the main business. As such, there are no separate reportable segments.

12. Schedule in terms of Paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed hereto separately.

13. Previous year's figures have been rearranged or regrouped wherever deemed necessary to conform with current year presentation.

* represents the investments in unquoted equity shares which are taken at their respective book value in absence of availability of break-up value of the invested company.

Note : Previous year's figures have been regrouped wherever necessary to conform to the current year's classification.