Notes to Accounts of Banas Finance Ltd.

Mar 31, 2024

b) Terms and rights attached to equity shares

The Company has only one class of equity share having value of Re. 10 each with an entitlement of one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the annual general meeting. In the event of liquidation of the Company, the holder 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.

(a) Risk Management Framework

In the ordinary course of business, the Company is exposed to a different extent to a variety of financial risks: foreign currency risk, interest rate risk, liquidity risk, price risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

(b) Credit Risk

Credit risk is the risk of financial loss arising out of a customer or counterparty failing to meet their repayment obligations to the Company. The Company assesses the credit quality of all financial instruments that are subject to credit risk.

Classification of financial assets under various stages

The Company classifies its finandal assets n three stages having the following characteristics Stage 1: unimpaired and without significant increase in credit risk since initial recognition;

Stage 2: a significant increase in credit risk since initial recognition on which a lifetime ECL is recognized;

Stage 3: objective evidence of impairment, and are therefore considered to be in default or otherwise credit impaired on which a lifetime ECL is recognized.

Unless identified at an earlier stage, all financial assets are deemed to have suffered a significant increase in credit risk.

The Company has calculated ECL using three main components: a probability of default (PO), a loss given default (LGO) and the exposure at default (EAO) along with an adjustment considering forward macro-economic conditions [for a detailed note for methodology of computation of ECL please refer to significant accounting policies note no 1(L) to the financial statements.

Investments are reviewed for any fair valuation bss on periodically basis and necessary provision/fair valuation adjustments has been made based on the valuation carried by the management to the extent available sources, the management does not expect any investment counterparty to fail to meet its obligations.

Trade Receivable, Trade Payable, Short Term Borrowings and Short-Term Loans and Advances balances are subject to confirmation and reconciliation

(C) Liquidity Risk management

Prudent liquidity risk management implies maintaining sufficient cash aid marketable securities and the availability of funding to meet obligations when due. Due to the dynamic nature of the underlying businesses, Company''s treasury maintains flexibility in funding by maintaining sufficient cash and bank balances available to meet the working capital requirements. Management monitors rolling forecasts of the Company''s liquidity position (comprising the unused cash and bank balances along with liquid investments) on the basis of expected cash flows. This is generally carried out at Company level in accordance with practice and limits set by the Company. These limits vary to take into account the liquidity of the market in which the Company operates.

Ultimate responsibility for liquidity risk management rests with the board of directors. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(A) This section explains the judgments and estimates made In deterring the fair values of the financial instruments. To provide an indication about the reliability of the inputs used in determining fair "Value. The Company has classified its financial instruments into the three levels prescribed under the accounting standard

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments. traded bonds and mutual funds 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.

Level2: The fair value of financial instruments that are not traded in an active market determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates It all significant Inputs required to fair value an instrument is observable, the instrument is included in level2.

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 unlisted equity securities.

(C) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments includes:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of forward foreign exchange contracts is determinate using forward exchange rate at the balance sheet date

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

All the resulting fair value estimates are included in level 2 or level 3, where the fair value have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk

(D) Fair value Estimations

Estimated fair value disclosures of financial instruments are made in accordance with the requirements of Ind AS 107 "Financial instruments Disclosure" Fair value is defined as the amount at which the instrument could be exchanged in a current transaction between knowledgeable willing parties in a arm''s length transaction other than in forced or liquidation sale. As no readily available market exists for a large part of the Company''s Financial instruments, judgement is necessary in arriving at fair value. Based on Current economic conditions and specific risk attributable to the instrument. The estimates presented herein are not necessarily indicative of the amount the Company could realise in a market exchange from the sale of its full holding or a particular instrument.

Dividend/interest-bearing Investments

Fair value is calculate based on discounted expected future principles and interest cash now''s. The carrying amount on the Company''s investment are valued at fair value on the basis of fair market rate with reference to the investment with similar credit risk level and maturity period at the reporting date.

Trade & other Receivable/Payables

The management assessed that Trade Receivables, Cash and Cash equivalents. Bank Balances, Deposits, other nonderivative current financial, assets. Short term borrowings, Trade payables, Nonderivative Current Financial Liabilities approximate their earring amount largely due to the short- tern maturities of these instruments.

There are no transfers between level1 and level 2 during the year

NOTE 27 RELATED PARTY TRANSACTIONS

a) List of related parties where control exists and with whom transactions have taken place and relationship

b) Transaction with related parties

NOTE 29 EMPLOYEE BENEFITS

Provision for retirement benefits to employees was not provided on accrual basis, which is not in conformity with Ind AS19 and the amount has not been quantified because actuarial valuation report is not available. However, in the opinion of the management the amount involved is negligible and has no material impact on the Profit & Loss Account.

NOTE 30 LOANS AND ADVANC ES

Majority of the loans given are demand loans, therefore in some cases the terms of repayment and loan agreement are not available. Non-Recoverable loans are appropriately written off as bad debts. Demand and other loans given are governed by the Board policies. Considering the close monitoring of Board no appraisal, renewal, Policies, Procedure, Committee or documents have been prescribed and executed.

NOTE 31SEGMENT REPORTING

The Company''s Managing director (MO) is identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. The CODM evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators, however the Company is primarily engaged in only one segment viz., ''Lending and Securities Trading'' and that most of the operations are in India. Hence the Company does not have any reportable Segments as per Indian Accounting Standard 108 "Operating Segments".

NOTE 32 MICRO, SMALL AND MEDIUM ENTERPRISES

The Company has not received any intimation from any of its suppliers regarding their Status as Micro, Small and Medium Enterprise under "The Micro, Small and Medium Enterprises Development Act, 2006". Hence Disclosures. if any. relating to amounts unpaid as at the end of the year along with interest paid/payable as required under the said act is not applicable in the case of the Company.

NOTE 36 Crypto Currency and Virtual Currency:

The company has not traded or invested in any Crypto currency or Virtual currency.

NOTE 37 Gratuity and Employment Benefit Plan:

No provision has been made for retirement and employee benefit as per ''AS 15'' regarding

NOTE 38 Capital Commitments:

The capital commitment as at March 31,2024 is NIL

NOTE 39 Unhedged Foreign Currency Exposures:

There is no foreign currency exposure outstanding as on31/0312024

NOTE 40 Income/ Expenditure in Foreign Currency:

There is no Income/ Expenditure In foreign currency as on31/03/2024

NOTE 41 Benami Property held;

There is no Benami Property held by company as on 31/03/2024

NOTE 42 Willful Defaulter:

The Company is not declared as willful defaulter by any Bank or Financial institution.

NOTE 43 Relationship with Struck off Companies;

The Company has not had any transactions with companies struck off under section 248 or the Companies Act,1956.

NOTE 44 Registration of charges or satisfaction with Register of Companies:

The company does not have any charge as on 31/0312024.

NOTE 45 Compliance with approved Scheme (s) of Arrangement;

The Company has not approved any Scheme of Arrangement in terms of sections 230 to 237 of the Companies Act,2013 NOTE 46 Utilisation of Borrowed funds and share premium;

The Company doesn''t have any advance, loan or invested (either from borrowed fund or share premium or any other sources or kind of funds) by the any company to or any other person or entity including foreign entity.

The Company not received any fund from any person or entity including foreign entities, that the company has directly or indirectly, end or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party \Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf or the Ultimate Beneficiaries.

NOTE 47 Corporate Social Responsibility (CSR):

The company is not required to fulfill any liability under the provisions of section 135 of the Companies Ac relating to Corporate Social Responsibility.

NOTE 48 SME Accounting Standard Compliance

In absence of adequate information relating to the suppliers under the Micro. Small and Medium Enterprises Development Act,2006, the Company is unable to Identify such suppliers, hence the Information required under the said Act, cannot be ascertained.

NOTE 49 Compliance with number of layers Companies:

Clause 87 of section 2 or the Act Companies (Restriction on number of Layers) Rules,2017 is not applicable to NBFC.

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Mar 31, 2015

1. CONTINGENT LIABILITY & CAPITAL COMMITMENT:

2014-2015 2013-2014 Amount in Amount in Rs. Rs.

Contingent Liabilities not provided for* 7,74,50,120 6,58,17,580

Capital Commitment not provided for NIL NIL

Others NIL NIL

*The demand was raised by the jurisdictional assessing officer of the Income Tax Authorities u/s 143(3) of the Income Tax Act, 1961 for the Assessment Year 2011-12. The management feels that demand raised is likely to be either deleted or substantially reduced. Also, the company has filed an appeal and deposited tax of Rs. 1,50,00,00 in response to the demand raised by the assessing officer and accordingly no provision is considered.

2. EARNING PER SHARE:

Earnings per Share, as required by the Accounting Standard 20- "Earning Per Share" issued by the Institute of Chartered Accountants of India, is given below:

Particulars 2014-15 2013-14 Amount in Rs. Amount in Rs.

Net profit for the period attributable to Equity Shareholders (Rs.) (1,91,04,588) 3,27,730

Weighted Average No of Equity 11.37.60.000 11,37,60,000 shares outstanding for Basic Earnings per share

Weighted Average No. of Equity 11.37.60.000 11,37,60,000 shares outstanding for Diluted earnings per share

Basic Earning Per Shares (0.168) 0.003 (face value of Rs. 1/-each ) (Rs)

Diluted earnings per share (face valued of Rs.1/-each) (Rs) (0.168) 0.003

3. RELATED PARTY TRANSACTION:

List of Related Parties:-

a) Key Management personnel :-

i) Giriraj Kishor Agrawal

b) Relatives of Key Management Personnel

i) Girraj Kishor Agarwal HUF

ii) Tanu Agarwal

iii) Saloni Agarwal

c) Related parties over which Key Management personnel have significant influence :-

i) Agrawal Bullion Limited (Formerly known as Kayaguru Health Solutions Limited)

ii) Axon Finance Limited (Formerly known as Axon Infotech Limited)

iii) Five X finance & Investment Ltd

iv) Handful Investrade Pvt Ltd

v) Kayaguru Capital Market Private Limited

vi) Rockon Capital Market Private Limited

vii) Rockon Fintech Limited

viii) Shree Nath Commercial & Finance Ltd

ix) Tilak Finance Limited (Formerly known as Out of City Travel Solutions Limited)

4. MAJOR COMPONENTS OF DEFERRED TAX LIABILITIES:

PARTICULARSI 2014-2015 2013-2014 Amount in Rs. Amount in Rs.

Deferred Tax Asset on Account of Carry Forward Losses NIL 4,03,365 Deferred Tax Asset / (Liability) on Account of Depreciation 1,22,315 (2,48,462)

Deferred Tax Assets 1,22,315 1,54,903

5. INCOME IN FOREIGN CURRENCY:

PAR.TICULARS 2014-2015 2013-2014 Amount in Rs. Amount in Rs.

Income in foreign currency NIL NIL

6. EXPENDITURE IN FOREIGN CURRENCY:

PARTICULARS 2014-2015 2013-2014 Amount in Rs. Amount in Rs.

Expenditure in Foreign Currency NIL NIL

7. PRUDENTIAL NORMS OF NBFC:

i. Majority of the loans given are demand loans, therefore in some cases the terms of repayment including interest and loan agreement including KYC documents etc are not available. Demand and other loans given are governed by the Board policies. Considering the close monitoring of Board no appraisal, renewal, Policies, Procedure, Committee or documents have been prescribed and executed.

ii. In view of the management all the loans outstanding are considered good and therefore provision on Non- Performing Assets not provided.

iii. Pre and post sanction generally accepted procedures are not in place.

iv. Provision on standard assets @ 0.25% is yet to be provided.

8. As per information available with the Company, none of the creditors has confirmed that they are registered under the Micro, Small and Medium enterprises Development Act, 2006.

9. As the intention is to hold the unquoted securities for sale in short term and in absence of flow of periodic data, absence of liquidity and market related data closing stock of unquoted shares are valued at cost.

10. The Full time Company Secretary of the Company has resigned on 7th February, 2015. However, no one has been appointed till the date of signing the Balance sheet.

11. The company does not have Internal Auditors for conduct of Internal Audit.

12. Trade Receivable, Trade Payable, Borrowings and Loans and Advances balances are subject to confirmation and reconciliation.

13. Segment Information: The Company is engaged in single segment and there are no separate reportable segments as defined in AS-17.

14. Previous year's figures have been regrouped, rearranged and reclassified wherever necessary to conform to the current's classification/ presentation.

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Mar 31, 2014

1. Employee benefits

Provision for retirement benefits to employees was not provided on accrual basis, which is not in conformity with Accounting Standard-15 issued by ICAI and the amount has not been quantified because actuarial valuation report is not available. However, in the opinion of the management the amount involved is negligible and has no material impact on the Profit & Loss Account

2. Income in Foreign Currency NIL

3. Expenditure in Foreign Currency NIL

4. As per information available with the Company, none of the creditors has confirmed that they are registered under the Micro, Small and Medium enterprises Development Act, 2006.

5. Trade Receivable, Trade Payable, Short Term Borrowings and Short Term Loans and Advances balances are subject to confirmation and reconciliation.

6. Segment Information: The Company is engaged in single segment and there are no separate reportable segments as defined in AS-17.

7. Previous year''s figures have been regrouped, rearranged and reclassified wherever necessary to conform to the current''s classification/ presentation.

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Mar 31, 2013

1. Employee benefits

Provision for retirement benefits to employees was not provided on accrual basis, which is not in conformity with Accounting Standard-15 issued by ICAI and the amount has not been quantified because actuarial valuation report is not available. However, in the opinion of the management the amount involved is negligible and has no material impact on the Profit & Loss Account.

2. CONTINGENT LIABILITY:

2012-2013 2011-2012 Amount in Rs. Amount in Rs.

Contingent Liabilities not provided for '' NIL NIL

Others NIL NIL



3. RELATED PARTY TRANSACTION:

List of Related Parties:-

a) Key Management person :-

i) Giriraj Kishor Agrawal ii) Tanu Agrawal iii) Saloni Agrawal

b) Related parties over which Key Management personnel have significant influence :-

i) Axon Infotech Ltd.

ii) Shree Nath Commercial & Finance Ltd

iii) Rockon Fintech Limited

iv) Out of City Travel Solutions Ltd

v) Five X finance & Investment Ltd

vi) Kayaguru Health Solutions Limited

vii) Handful Investrade Pvt Ltd

viii) Girraj Kishor Agrawal HUF

4. Income in Foreign Currency NIL [^"nilt|

5. Expenditure in Foreign Currency NIL

6. As per information available with the Company, none of the creditors has confirmed that they are registered under the Micro, Small and Medium.enterprises Development Act, 2006.

7. Trade Receivable, Trade Payable, Short Term Borrowings and Short Term Loans and Advances balances are subject to confirmation and reconciliation.

8. Segment Information: The Company is engaged in single segment and there are no separate reportable segments as defined in AS-17.

9. Previous year''s figures have been regrouped, rearranged and reclassified wherever necessary to conform to the current''s classification/ presentation.

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Mar 31, 2012

1 The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31st March,2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements except for accounting for dividend on investments in subsidiaries.

2. Contingent Liabilities not provided for:

Particulars : 2011-2012 2010-2011

[Rs] [Rs.]

Claims against the company not acknowledged as debts NIL NIL

Others NIL NIL

3. Balances of* Loans and Advances, Sundry Creditors are subject to confirmation and reconciliation and consequential adjustments, if any.

4. In the opinion of the Board & to the best of their knowledge & belief the value of realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet & the provisions for all the loans & determined liabilities is adequate and not in excess of the amount.

5. Related Party Transaction :

List of Related Parties:

(i) Kev Management person

- G.K. Agrawal

- Tanu Agrawal

(ii) Associates

- Five X Finance & Investment Ltd

- Out of City Travel Solutions Pvt Ltd

- Shree Nath Commercial & Finance Ltd.

- Rockon Fintech Ltd -

. Kayaguru Health Solutons Ltd.

- Handfu-l Investrade Pvt. Ltd

- Axon InfoTech Ltd

- Kayaguru Insurance Broker Pvt Ltd

- Kayaguru Wellness Pvt Ltd

As per information available with the Company, none of the creditors has confirmed that they are registered under the Micro, Small and Medium enterprises Development Act, 2006. The company has no dues to Micro, Small and Medium Enterprises during the year ended March 31st, 2012 and March 31st 2011.

6. Segment Information :

The Company is engaged in single segment and there are no separate reportable segments as defined in AS-17.

7. Previous year's figures have been regrouped, rearranged and reclassified wherever necessary to conform to the current's classification/ presentation.

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Mar 31, 2011

*Excluding Service Tax

1. Contingent Liabilities not provided for :

2010-2011 2009-2010 (Rs.) (Rs.)

Claims against the company not acknowledged as debts NIL NIL

Others NIL NIL

2. Balances of Loans and Advances, Sundry Creditors are subject to confirmation and reconciliation and consequential adjustments, if any.

3. In the opinion of the Board & to the best of their knowledge & belief the value of realisation of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet & the provisions for all the loans & determined liabilities is adequate and not in excess of the amount.

4. Related Party Transaction : List of Related Parties:

Key Management person

G.K. Agrawal Tanu Agrawal

Associate

Axon Infotech Ltd.

Tilak Finance Ltd.

Shree Nath Commercial & Finance Ltd.

Rockon Fintech Ltd.

Kayagu Health Solutons Pvt. Ltd.

Handful Investrade P. Ltd.

5. Balance Sheet Abstract & Company's general business profiles as required by part IV of Schedule VI to the Companies Act, 1956 are enclosed.

6. As per information available with the Company, none of the creditors has confirmed that they are registered under the Micro, Small and Medium enterprises Development Act, 2006.

The company has no dues to Micro, Small and Medium Enterprises during the year ended March 31st, 2011 and March 31st 2010.

7. Segment Information:

The Company is engaged in single segment and there are no separate reportable segments as defined in AS-17.

8. Previous year's figures have been regrouped, rearranged and reclassified wherever necessary to conform to the current's classification/ presentation.

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Mar 31, 2010

1. Balances under Unsecured Loans, Sundry Debtors, Sundry Creditors, Loans and Advances are subject to confirmation from the parties

2. Since the Company is not a manufacturing Company, the requirement under Clause 4-C of part II to Schooke VI to the Companies Act, 1956 does not apply.

3. Accounting Standard (AS-22) on Accounting of Taxes on Income issued by the Institute of Chartered Accountants of India (ICAI) :

The timing difference relating mainly to Unabsorbed Depreciation / Business Loss for the earlier years have resulted in net Deferred Tax Asset/Liability for the year which has not been recognised in the accounts as prudent policy-

4. As per Accounting Standard 18 (AS-18) on Related party disclosures issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related party as defined in the Accounting Standard are given below ;

5. Previous Year figures have been regrouped/rearranged wherever necessary