Notes to Accounts of Capri Global Capital Ltd.

Mar 31, 2025

2.09 Provisions

Provisions are recognised when the enterprise has a
present obligation (legal or constructive) as a result of
past events and it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation, and a reliable estimate can be made of the
amount of the obligation.

When the effect of the time value of money is material, the
enterprise determines the level of provision by discounting
the expected cash flows at a pre-tax rate reflecting the
current rates specific to the liability. The expense relating
to any provision is presented in the Statement of Profit
and Loss net of any reimbursement.

2.10 Contingent Liabilities

A 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 recognized because it is not
probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in

extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably.
The Company does not recognize a contingent liability
but discloses its existence in the financial statements.

2.11 Earning Per Share

The Company reports basic and diluted earnings per share
in accordance with Ind AS 33 on Earnings per share. Basic
EPS is calculated by dividing the net profit or loss for the
year attributable to equity shareholders (after deducting
preference dividend 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.

2.12Significant accounting judgements, estimates and
assumptions

The preparation of financial statements in conformity with
the Ind AS requires the management to make judgments,
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 critical judgments in applying
accounting policies that have the most significant effect
on the amounts recognized in the financial statements is
included in the following notes:

A Defined employee benefit assets and
liabilities - Refer 2.04.B

B Impairment of loans portfolio - Refer 2.05.G

C Effective Interest Rate (EIR) method - Refer
2.03.A and 2.04.A

D Lease accounting - Refer 2.04.C

E Impairment test of non-financial assets - Refer 2.04.D

F Useful life of property, plant, equipment and
intangibles - Refer 2.07 and 2.08

G Provision for income taxes, including amount
expected to be paid/recovered for uncertain tax
positions - Refer 2.04.E

H Recognition and Measurement of Provision and
Contingencies - Refer 2.09 and 2.10

I Determination of the fair value of financial
instruments - Refer 2.05.I

J Business Model Assessment - Refer 2.05.A

2.13 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time. During the year ended March 31,2025,
MCA has not notified new standards or amendments to
the existing standards applicable to the Company for
current reporting period.

B Security and cost

a) Term loans from banks

First pari-passu charge by way of hypothecation of the company''s loan receivables / book debts, bank balance and
investments with asset cover in the range of 1.10 to 1.33 times.

Weighted average cost for FY 2024-25 is 9.68% p.a. and for FY 2023-24 is 9.33% p.a.

b) Term loans from others

Exclusive charge by way of hypothecation of Company''s loan receivables with minimum assets cover of 1.25 times in
favour of borrowing from NABARD of H 1200 million.

First pari-passu charge by way of hypothecation of the Company''s loan receivables / book debts, bank balance and
investments with asset cover in the range of 1.10 to 1.20 times.

Weighted average cost for FY 2024-25 is 9.37% p.a. and for FY 2023-24 is 8.77% p.a.

c) Other borrowings

First pari-passu charge by way of hypothecation of the Company''s loan receivables / book debts, bank balance and
investments with asset cover of 1.25 times.

Weighted average cost for FY 2024-25 is 9.12% p.a. and for FY 2023-24 is 9.69% p.a.

f) Dividend Payment

During the current year the Company has paid dividend of H 0.15 per share amounting to H 123.74 millions
During the previous year the Company has paid dividend of H 0.50 per share amounting to H 103.08 millions
Notes:

a) Statutory Reserve pursuant to Section 45-IC of the RBI Act, 1934

Every non-banking financial company is required to create a reserve fund and transfer therein a sum not less than twenty
per cent of its net profit every year as disclosed in the statement of profit and loss before any dividend is declared.

b) Securities Premium

Securities premium reserve is used to record the premium on issue of shares and used for allottment of bonus share in
accordance with the provisions of the Companies Act, 2013.

c) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a
dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total
dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies
Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been
withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the
specific requirements of Companies Act, 2013.

d) Employee stock option outstanding

This reserve is used to record the employee stock options which are outstanding. The said reserve will be utilised for
issuance of share to the eligible employees.

e) Proposed Dividend

The Board of Directors have recommended a final dividend of 20% i.e. H 0.20 per equity share on face value of H 1/-
each for the year 2024-25 (previous year H 0.15 per equity share) subject to the approval of the members at the ensuing
Annual General Meeting. In terms of Ind AS 10 - "Events after the Reporting Period" the Company has not appropriated
proposed dividend aggregating to H 165.02 million from the Statement of Profit and Loss Account for the year ended
March 31, 2025.

Note :

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions
may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as
applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

47. Leases

A. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration.

B. Company as a lessee

The Company''s lease asset classes primarily consist of leases for premises. The Company assesses whether a contract contains
a lease, at inception of a contract. To assess whether a contract conveys the right to control the use of an identified asset,
the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of
the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the
use of the asset.

Classification of assets and liabilities under the maturity buckets is based on the same estimates and assumptions as used by the
Company for compiling the return submitted to the RBI. The Above is based on the information available with the company which
has been relied upon by the auditors.

50. Capital Management

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short¬
term goals of the Company. The Company determines the amount of capital required on the basis of annual operating plans and
other strategic investment plans. The funding requirements if any will be met through bank borrowings and equity if the need arise.

The primary objectives of the Company''s capital management are 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
shareholders 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. Capital Management, objectives and processes are under constant
review by the Board.

For details of Capital to Risk Assets Ratio (CRAR) refer Note no. - 59.01

52. Fair value measurements

The fair value of a financial instrument on initial recognition is normally the transaction price (fair value of the consideration given
or received). Subsequent to initial recognition, the Company determines the fair value of financial instruments that are quoted in
active markets using the quoted bid prices (financial assets held) or quoted ask prices (financial liabilities held) and using valuation
techniques for other instruments. Valuation techniques include discounted cash flow method, market comparable method, recent
transactions happened in the Company and other valuation models.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or
most advantageous) market at the measurement date under current market conditions, regardless of whether that price is directly
observable or estimated using a valuation technique.

Ind AS 107, ''Financial Instrument - Disclosure'' requires classification of the valuation method of financial instruments measured
at fair value in the balance Sheet, using a three level fair-value-hierarchy (which reflects the significance of inputs used in the
measurements). The hierarchy gives the highest priority to un-adjusted quoted prices in active markets for identical assets or
liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair-
value-hierarchy under Ind AS 107 are described below:

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 (including
bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual
funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-
the- counter derivatives) is determined using valuation techniques which maximise the use of observable market data
and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.

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, contingent consideration and indemnification asset included in level 3.

Short-term financial assets and liabilities: For financial assets and financial liabilities that have a short-term maturity
(less than twelve months), the carrying amounts, which are net of impairment, are a reasonable approximation of their
fair value. Such instruments include cash and cash equivalents, trade receivables, balances other than cash and cash
equivalents and trade payables without a specific maturity

53. Risk Disclosures

Company''s risk 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 exposed to credit risk, liquidity risk and interest rate risk. It is the Company''s policy to ensure that a robust risk
awareness is embedded in its organisational risk culture.

A 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 manages and controls credit risk by setting limits on the amount of risk it is willing to accept for
individual counterparties.

1 Impairment assessment

a) Exposure at Default

The Exposure at Default is an estimate of the exposure at a future default date including the undrawn commitments.
EAD is taken as the gross exposure under a facility upon default of an obligor. The principal outstanding, overdue
principal, accrued interest, overdue interest is considered as EAD for the purpose of ECL computation.

The advances have been bifurcated into following three stages:

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 (past due for 0 to30 days) under this category. Stage 1 loans
also include facilities where the credit risk has reduced and the loan has been reclassified from Stage 2 or Stage 3

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. Financial assets past due for 31 to 90 days are classified under this
stage and lifetime ECL is recognised on such financial assets. Stage 2 loans also include facilities where the credit
risk has reduced, and the loan has been reclassified from Stage 3.

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, interest revenue is calculated by applying the effective interest rate to the amortised cost (net of
provision) rather than the gross carrying amount. More than 90 days Past Due is considered as default for classifying
a financial instrument as credit impaired.

b) Significant increase in credit risk

The Company continuously monitors all assets subject to ECLs. In order to determine whether an instrument or a
portfolio of instruments is subject to 12 months ECL or lifetime ECL, the Company assesses whether there has been
a significant increase in credit risk since initial recognition. The Company considers an exposure to have significantly
increased in credit risk if contractual payments are more than 30 days past due.

c) Definition of default and cure

The Company considers a financial instrument defaulted and therefore Stage 3 (credit impaired) for ECL calculations
in all cases when the borrower becomes more than 90 days past due on its contractual payments.

As a part of a qualitative assessment of whether a customer is in default, the Company also considers a variety of
instances that may indicate inability to pay. When such events occur, the Company carefully considers whether the
event should result in treating the customer as defaulted and therefore assessed as Stage 3 for ECL calculations or
whether Stage 2 is appropriate. Such events include:

a) Significant financial difficulty of the borrower or issuer;

b) A breach of contract such as a default or past due event;

c) The restructuring of a loan or advance by the company on terms that the company would not consider otherwise; or

d) It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation

It is the Company''s policy to consider a financial instrument as ''cured'' and therefore re-classified out of Stage 3
when the borrower makes necessary payments & the borrower''s days past due become "0" after such payments.
The decision whether to classify an asset as Stage 2 or Stage 1 once cured depends on the updated credit grade,
at the time of the cure, and whether this indicates there has been a significant increase in credit risk compared to
initial recognition.

d) Probability of Default ("PD") estimation process

Probability of default (PD) is defined as the likelihood of default over a particular time horizon. The PD of an
obligor is a fundamental risk parameter in credit risk analysis and depends on obligor specific as well as
macroeconomic risk factors.

a) The Company has applied 12 months PD to stage 1 advances

b) The Lifetime PD is computed using basic exponentiation technique after considering the residual maturity of
the respective loan.

c) PD of 100% is considered for Stage 3 assets.

Days past due are a primary input for the determination of the PD for exposures. The Company collects performance
and default information about its credit risk exposures analysed by portfolio. For some portfolios, rating based
published information is used.

The Company employs statistical models to analyse the data collected and generate estimates of the remaining
lifetime PD of exposures and how these are expected to change as a result of the passage of time. Such statistical
models are selected considering the availability of information related to the probability of default for each product.
This analysis includes the identification and calibration of relationships between changes in default rates and changes
in key macro-economic factors.

For the purpose of determination of impact of forward looking information, the Company applies various macro
economic (ME) variables as stated above to each portfolio and assess the trend of the historical probability of
defaults as compared to the forecasted probability of default. Based on the directional trend of output, management
applies an overlay if required. Overtime, new ME variable may emerge to have a better correlation and may replace
ME being used now.

The loans are segmented into homogenous product categories to determine the historical PD/LGD as per similar
risk profiles, this segmentation is subject to regular review For portfolios in respect of which the Company has
limited historical data, external benchmark information is used to supplement the internally available data.

The Company does not have any historic data of default in case of Gold Loan portfolio, so it has relied upon the
published data of competitors. In case of Unsecured business loan, it has relied upon the public data of partners
with their existing customers of the similar behavioral vintage

e) Loss Given Default (LGD)

Loss Given Default ("LGD") is defined as the loss rate on the exposure, given the borrower has defaulted. LGD is
being calculated for all financial instruments under risk parameter approach by way of evaluation of historical data
on defaults, recovery amounts, collateral liquidation, direct expenses, and opportunity cost for each default. LGD
has been computed using the volatility-based model in case of Gold Loan portfolio. LGD has been computed by
using the FIRB (Foundation Internal Rating Based) in case of Unsecured business loan

f) Forward looking information

In its ECL models, the Company relies on a broad range of forward looking information as economic inputs, such as.
GDP growth, Consumer Price Index, Unemployment rate, Lending Interest Rate etc. The inputs and models used
for calculating ECLs may not always capture all characteristics of the market at the date of the financial statements.
To reflect this, qualitative adjustments or overlays are occasionally made as temporary adjustments when such
differences are significantly material.

2 Analysis of risk concentration - Refer Note 59.15

3 Collateral and other credit enhancements

The Company holds collateral and other credit enhancements against certain of its credit exposures. The loans are
collateralized against equitable mortgage of property, pledge of shares, hypothecation of assets, physical gold jewellery,
undertaking to create security.

Management monitors the market value of collateral and will request additional collateral in accordance with the
underlying agreement. In case of defaults by customers, where the Company is unable to recover the dues, the Company
through a legal process enforces the security and recovers the dues.

B Liquidity risk and funding management

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the
Company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the
cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset
positions is not available to the Company on acceptable terms. To limit this risk, management has arranged for diversified
funding sources and adopted a policy of managing assets by monitoring future cash flows and liquidity on a daily basis.

Liquidity risk is managed in accordance with our Asset Liability Management Policy. This policy is framed as per the current
regulatory guidelines and is approved by the Board of Directors. The Asset Liability Management Policy is reviewed
periodically to incorporate changes as required by regulatory stipulation or to realign the policy with changes in the economic
landscape. The Asset Liability Committee (ALCO) of the Company formulates and reviews strategies and provides guidance
for management of liquidity risk within the framework laid out in the Asset Liability Management Policy.

C Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of
financial instruments. The core business of the company is providing loans to MSME, Construction Finance, Indirect Lending,
Gold Loan and Unsecured business loan. The company borrows through various financial instruments to finance its core
lending activity. These activities expose the company to interest rate risk.

Interest rate risk is measured through earnings at risk from an earnings perspective and through duration of equity from
an economic value perspective. Further, exposure to fluctuations in interest rates is also measured by way of gap analysis,
providing a static view of the maturity and re-pricing characteristic of Balance sheet positions. An interest rate sensitivity
gap report is prepared by classifying all rate sensitive assets and rate sensitive liabilities into various time period categories

D Operational Risk

Operational risk is the risk of loss arising from systems failure, human error, fraud or external events. When controls fail
to operate effectively, operational risks can cause damage to reputation, have legal or regulatory implications, or lead to
financial loss. The Company cannot expect to eliminate all operational risks, but it endeavors to manage these risks through
a control framework and by monitoring and responding to potential risks. Controls include maker-checker controls, effective
segregation of duties, access, authorisation and reconciliation procedures, staff education and assessment processes, such as
the use of internal audit.

E Capital Management :

Company''s capital management objective is primarily to safeguard business continuity. The Company''s capital raising policy
is aligned to macro economic situation and incidental risk factors. The Company''s cashflows are regularly monitored in sync
with annual operating plans and long-term and other strategic investment plans. The operational funding requirements are
met through debt and operating cash flows generated. The company believes this approach would create shareholder value
in long run. Also, the company has adopted a conservative approach for ALM management with primacy to adequate liquidity.
At present a large portion of the company''s resource base is equity. Therefore the company enjoys a low gearing.

The Company maintains its capital structure in line with economic conditions and the risk characteristics of its activities and the
board reviews the capital position on a regular basis.

Expected life of the options: Expected life of the options is the period for which the company expects the Options to be live. The
minimum life of a stock option is the minimum period before which the options cannot be exercised, and the maximum life is the
period after which the options cannot be exercised.

Expected volatility: The measure of volatility used in ESOP pricing model is the annualised standard deviation of the continuously
compounded rates of return (calculated by log function) on the share over a period prior to the date of grant corresponding to the
expected life of the option.

Expected dividend yield: Expected dividend yield has been calculated as an average of dividend yields of six financial years
preceding the date of grant. The dividend yield for the year is derived by dividing the dividend per share by the share price as on
dividend effective date.

Risk-free interest rate: The rate used to discount employee benefit obligations reflects the estimated timing of benefit payments
and the currency in which the benefits are to be paid. We have used the Discount Rate which relates to the par-yield rate available
on ZYC Government Securities (G. Sec.) for the tenure of the expected life of options. (Ref: G Sec. rates available through www.fbil.
org.in with prices/yields published by FBIL).

3.3 Disclosures on risk exposure in derivatives
Qualitative disclosure

The Company undertakes derivative transactions for hedging on-balance sheet liabilities, these derivative transactions
are in form of Forward Exchange Contracts.

The Asset Liability Management Committee and Risk Management Committee closely monitors such transactions and
reviews the risks involved. The Company has entered into these Forward Exchange Contract to mitigate the foreign
exchange risk pertaining to FCNR (B) Term Loan.

All derivative contracts including the Forward Exchange Contracts are recognised on the balance sheet and measured
at fair value. Hedge accounting is applied to all the derivative instruments including the Forward Exchange Contracts as

38 Disclosure On Liquidity Risk Management Framework Pursuant To Reserve Bank Of India Notification RBI /DNBR
/ 2016-17/45 Master Direction Dnbr.Pd.008/03.10.119/2016-17 Dated December 29, 2022.

A. Qualitative Disclosure on LCR

The Board of Directors are responsible for the overall risk management approach and for approving the risk management
strategies and principles. The Board has constituted the Risk Management Committee (RMC) which is responsible for
monitoring the overall risk process within the Company.

The meetings of RMC are held at quarterly interval. The Risk owners are responsible for monitoring compliance with risk
principles, policies and limits across the Company. RMC ensures that the credit and investment exposure to any party /
Company / group of parties or companies does not exceed the internally set limits as well as statutory limits as prescribed
by Reserve Bank of India from time to time. RMC Develops risk policies and procedures and verify adherence to various
risk parameters and prudential limits; review the risk monitoring system and ensure effective risk management.

The Company''s Treasury is responsible for managing its assets and liabilities and the overall financial structure. It is also
primarily responsible for the funding and liquidity risks of the Company.

The Board of Directors has constitution of Asset Liability Committee (ALCO). The Company''s ALCO monitors asset liability
mismatches to ensure that there are no imbalances or excessive concentrations on either side of the balance sheet. ALCO
conducts quarterly reviews relating to the liquidity position and stress test assuming various ''what if'' scenarios. The
ALCO is a decision-making unit responsible for balance sheet planning from risk-return perspective including strategic
management of interest rate and liquidity risks. The ALCO also evaluates the Borrowing Plan of subsequent quarters
based on previous borrowings of the Company.

In assessing the Company''s liquidity position, consideration is given to: (1) present and anticipated asset quality (2)
present and future earnings capacity (3) historical funding requirements (4) current liquidity position (5) anticipated future
funding needs, and (6) sources of funds. The Company maintains a portfolio of marketable assets that are assumed to
be easily liquidated and undrawn cash credit limits which can be used in the event of an unforeseen interruption in cash
flow. In accordance with the Company''s policy, the liquidity position is assessed under a variety of scenarios, giving due
consideration to stress factors relating to both the market in general and specifically to the Company. Net liquid assets
consist of cash, short-term bank deposits and investments in mutual fund available for immediate sale. Borrowings
from banks and financial institutions and issue of debentures are considered as important sources of funds to finance
lending to customers.

The minutes of ALCO meetings are placed before the RMC and the Board of Directors meeting for noting.

The Company exceeds the regulatory requirement of liquidity coverage ratio (LCR) introduced by the RBI in FY 2020.
This requirement stipulates that NBFCs with an asset size of H 5,000 crore and above are required to maintain 50% of its
expected net cash outflows in a stressed scenario in high quality liquid assets (HQLA) by December 2021; which has to
be increased to 100% by December 2024 in a phased manner.

62. Other Statutory Information:

1 The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related
parties (as defined under 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.

2 The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending
against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
Rules made thereunder.

3 The Company has not been declared willful defaulter by any bank or financial institution or other lender or government or any
government authority.

4 The Company did not have transactions with struck off companies under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956 during the year March 31,2034. Details of Struck off company as below-

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

6 The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities
(Intermediaries), with the understanding that the Intermediary shall, 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 provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.

7 The Company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

9 The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

10 The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87)
of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

11 The Company has not revalued other intangible assets during the year.

12 Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement
with the books of accounts.

13 Compliance with approved Scheme(s) of Arrangements: Not applicable

14 Borrowed funds have been utilised for the purpose they have been sanctioned and share premium has been utilised in
working capital.

15 The Company confirms that, the title deeds of immovable properties are held in the name of the Company.

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

17 The Company is registered with Insurance Regulatory and Development Authority of India (IRDAI) as Corporate agent vide
CA0881 dated December 07, 2023.

63. Accounting Software Used for maintenance of Books of Accounts

The Company has used certain accounting softwares (including new ERP implemented w.e.f. December 1, 2024) for maintaining
its books of account which has a feature of recording audit trail (edit log) facility except that no audit trail feature was enabled at
database level in respect of one accounting software (the old ERP discontinued on November 30, 2024) and was not enabled at the
database level from April 1,2024 to July 07, 2024 in respect of another accounting software. Further the audit trail feature was not
enabled at the application level in respect of one accounting software to log any direct data changes.

Further, to the extent enabled, audit trail feature has operated throughout the year for all relevant transactions recorded in the
accounting softwares. Also, we did not come across any instance of audit trail feature being tampered with. Additionally, the
audit trail has been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled
and recorded except for one application the audit trail is not preserved where audit trail feature was enabled on July 08, 2024 at
database level.

64. Fig ures for the previous years have been regrouped/rearranged wherever considered necessary to conform to the figures
presented in the current year.

As per our report of even date attached

For M S K A & Associates For and on behalf of the Board of Directors of

Chartered Accountants Capri Global Capital Limited

ICAI Firm Registration No.: 105047W CIN: L65921MH1994PLC173469

Prateek Khandelwal Rajesh Sharma Subramanian Ranganathan

Partner Managing Director Independent Director

Membership No. : 139144 DIN 00020037 DIN 00125493

Place : Mumbai Place : Mumbai Place : Mumbai

Date: May 05, 2025 Date: May 05, 2025 Date: May 05, 2025

Yashesh Bhatt Partha Chakraborti

Company Secretary Chief Financial Officer

ACS-20491

Place: Mumbai Place : Mumbai

Date: May 05, 2025 Date: May 05, 2025

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Mar 31, 2024

2.09 Provisions

Provisions are recognised when the enterprise has a present obligation (legal or constructive) as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

When the effect of the time value of money is material, the enterprise determines the level of provision by discounting the expected cash flows at a pre-tax rate reflecting the current rates specific to the liability. The expense relating to any provision is presented in the Statement of Profit and Loss net of any reimbursement.

2.10 Contingent Liabilities

A 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 recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize

a contingent liability but discloses its existence in the financial statements.

2.11 Earning Per Share

The Company reports basic and diluted earnings per share in accordance with Ind AS 33 on Earnings per share. Basic EPS is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividend 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.

2.12 Significant accounting judgements, estimates and assumptions

The preparation of financial statements in conformity with the Ind AS requires the management to make judgments, 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 critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes:

A Defined employee benefit assets and liabilities - Refer 2.04.B

B Impairment of loans portfolio - Refer 2.05.G

C Effective Interest Rate (EIR) method - Refer 2.03.A and 2.04.A

D Lease accounting - Refer 2.04.C E Impairment test of non-financial assets -Refer 2.04.D

F Useful life of property, plant, equipment and intangibles - Refer 2.07 and 2.08

G Provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions - Refer 2.04.E H Recognition and Measurement of Provision and Contingencies - Refer 2.09 and 2.10 I Determination of the fair value of financial instruments - Refer 2.05.I J Business Model Assessment - Refer 2.05.A 2.13 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31, 2024, MCA has not notified new standards or amendments to the existing standards applicable to the Company for current reporting period.

50. Capital Management

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company. The Company determines the amount of capital required on the basis of annual operating plans and other strategic investment plans. The funding requirements if any will be met through bank borrowings and equity if the need arise.

The primary objectives of the Company''s capital management are 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 shareholders 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. Capital Management, objectives and processes are under constant review by the Board.

52. Fair value measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions, regardless of whether that price is directly observable or estimated using a valuation technique.

Ind AS 107, ''Financial Instrument - Disclosure'' requires classification of the valuation method of financial instruments measured at fair value in the balance Sheet, using a three level fair-value-hierarchy (which reflects the significance of inputs used in the measurements). The hierarchy gives the highest priority to un-adjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair-value-hierarchy under Ind AS 107 are described below:

52.B Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. 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. An explanation of each level follows underneath the table.

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 (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

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, contingent consideration and indemnification asset included in level 3.

Short-term financial assets and liabilities: For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts, which are net of impairment, are a reasonable approximation of their fair value. Such instruments include cash and cash equivalents, trade receivables, balances other than cash and cash equivalents and trade payables without a specific maturity

53. Risk Disclosures

Company''s risk 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 exposed to credit risk, liquidity risk and interest rate risk. It is the Company''s policy to ensure that a robust risk awareness is embedded in its organisational risk culture.

A 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 manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties.

1 Impairment assessment

a) Exposure at Default

The Exposure at Default is an estimate of the exposure at a future default date including the undrawn commitments. EAD is taken as the gross exposure under a facility upon default of an obligor. The principal outstanding, overdue principal, accrued interest, overdue interest less excess received from the customers is considered as EAD for the purpose of ECL computation.

The advances have been bifurcated into following three stages:

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 (past due for 0 to30 days) under this category. Stage 1 loans also include facilities where the credit risk has reduced and the loan has been reclassified from Stage 2 or Stage 3

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. Financial assets past due for 31 to 90 days are classified under this stage and lifetime ECL is recognised on such financial assets. Stage 2 loans also include facilities where the credit risk has reduced, and the loan has been reclassified from Stage 3.

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, interest revenue is calculated by applying the effective interest rate to the amortised cost (net of provision) rather than the gross carrying amount. More than 90 days Past Due is considered as default for classifying a financial instrument as credit impaired.

b) Significant increase in credit risk

The Company continuously monitors all assets subject to ECLs. In order to determine whether an instrument or a portfolio of instruments is subject to 12 months ECL or lifetime ECL, the Company assesses whether there has been a significant

increase in credit risk since initial recognition. The Company considers an exposure to have significantly increased in credit risk if contractual payments are more than 30 days past due.

c) Definition of default and cure

The Company considers a financial instrument defaulted and therefore Stage 3 (credit impaired) for ECL calculations in all cases when the borrower becomes more than 90 days past due on its contractual payments.

As a part of a qualitative assessment of whether a customer is in default, the Company also considers a variety of instances that may indicate inability to pay. When such events occur, the Company carefully considers whether the event should result in treating the customer as defaulted and therefore assessed as Stage 3 for ECL calculations or whether Stage 2 is appropriate. Such events include:

a) Significant financial difficulty of the borrower or issuer;

b) A breach of contract such as a default or past due event

c) The restructuring of a loan or advance by the company on terms that the company would not consider otherwise; or

d) It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation

It is the Company''s policy to consider a financial instrument as ''cured'' and therefore re-classified out of Stage 3 when the borrower makes necessary payments & the borrower''s days past due become "0" after such payments. The decision whether to classify an asset as Stage 2 or Stage 1 once cured depends on the updated credit grade, at the time of the cure, and whether this indicates there has been a significant increase in credit risk compared to initial recognition.

d) Probability of Default ("PD") estimation process

Probability of default (PD) is defined as the likelihood of default over a particular time horizon. The PD of an obligor is a fundamental risk parameter in credit risk analysis and depends on obligor specific as well as macroeconomic risk factors.

a) The Company has applied 12 months PD to stage 1 advances

b) The Lifetime PD is computed using basic exponentiation technique after considering the residual maturity of the respective loan.

c) PD of 100% is considered for Stage 3 assets.

Days past due are a primary input for the determination of the PD for exposures. The Company collects performance and default information about its credit risk exposures analysed by portfolio. For some portfolios, rating based published information is used.

The Company employs statistical models to analyse the data collected and generate estimates of the remaining lifetime PD of exposures and how these are expected to change as a result of the passage of time. Such statistical models are selected considering the availability of information related to the probability of default for each product. This analysis includes the identification and calibration of relationships between changes in default rates and changes in key macro-economic factors.

For the purpose of determination of impact of forward looking information, the Company applies various macro economic (ME) variables as stated above to each portfolio and assess the trend of the historical probability of defaults as compared to the forecasted probability of default. Based on the directional trend of output, management applies an overlay if required. Overtime, new ME variable may emerge to have a better correlation and may replace ME being used now.

The loans are segmented into homogenous product categories to determine the historical PD/LGD as per similar risk profiles, this segmentation is subject to regular review For portfolios in respect of which the Company has limited historical data, external benchmark information is used to supplement the internally available data.

The Company does not have any historic data of default in case of Gold Loan portfolio, so it has relied upon the published data of competitors. In case of Unsecured business loan, it has relied upon the public data of partners with their existing customers of the similar behavioral vintage.

e) Loss Given Default (LGD)

Loss Given Default ("LGD") is defined as the loss rate on the exposure, given the borrower has defaulted. LGD is being calculated for all financial instruments under risk parameter approach by way of evaluation of historical data on defaults, recovery amounts, collateral liquidation, direct expenses, and opportunity cost for each default. LGD has been computed using the volatility-based model in case of Gold Loan portfolio. LGD has been computed by using the FIRB (Foundation Internal Rating Based) in case of Unsecured business loan

f) Forward looking information

I n its ECL models, the Company relies on a broad range of forward looking information as economic inputs, such as. GDP growth, Consumer Price Index, Unemployment rate, Lending Interest Rate etc. The inputs and models used for calculating ECLs may not always capture all characteristics of the market at the date of the financial statements. To reflect this, qualitative adjustments or overlays are occasionally made as temporary adjustments when such differences are significantly material.

2 Analysis of risk concentration - Refer Note 59.15

3 Collateral and other credit enhancements

The Company holds collateral and other credit enhancements against certain of its credit exposures. The loans are collateralized against equitable mortgage of property, pledge of shares, hypothecation of assets, physical gold jewellery, undertaking to create security.

Management monitors the market value of collateral and will request additional collateral in accordance with the underlying agreement. In case of defaults by customers, where the Company is unable to recover the dues, the Company through a legal process enforces the security and recovers the dues.

B Liquidity risk and funding management

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on acceptable terms. To limit this risk, management has arranged for diversified funding sources and adopted a policy of managing assets by monitoring future cash flows and liquidity on a daily basis.

Liquidity risk is managed in accordance with our Asset Liability Management Policy. This policy is framed as per the current regulatory guidelines and is approved by the Board of Directors. The Asset Liability Management Policy is reviewed periodically to incorporate changes as required by regulatory stipulation or to realign the policy with changes in the economic landscape. The Asset Liability Committee (ALCO) of the Company formulates and reviews strategies and provides guidance for management of liquidity risk within the framework laid out in the Asset Liability Management Policy.

C Interest rate risk

I nterest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments. The core business of the company is providing loans to MSME, Construction Finance, Indirect Lending, Gold Loan and Unsecured business loan. The company borrows through various financial instruments to finance its core lending activity. These activities expose the company to interest rate risk.

I nterest rate risk is measured through earnings at risk from an earnings perspective and through duration of equity from an economic value perspective. Further, exposure to fluctuations in interest rates is also measured by way of gap analysis, providing a static view of the maturity and re-pricing characteristic of Balance sheet positions. An interest rate sensitivity gap report is prepared by classifying all rate sensitive assets and rate sensitive liabilities into various time period categories according to contracted/behavioral maturities or anticipated re-pricing date. The difference in the amount of rate sensitive assets and rate sensitive liabilities maturing or being re-priced in any time period category, gives an indication of the extent of exposure to the risk of potential changes in the margins on new or re-priced assets and liabilities.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates (all other variables being considered as constant) of the Company''s statement of profit and loss and equity.

D Operational Risk

Operational risk is the risk of loss arising from systems failure, human error, fraud or external events. When controls fail to operate effectively, operational risks can cause damage to reputation, have legal or regulatory implications, or lead to financial loss. The Company cannot expect to eliminate all operational risks, but it endeavors to manage these risks through a control framework and by monitoring and responding to potential risks. Controls include maker-checker controls, effective segregation of duties, access, authorisation and reconciliation procedures, staff education and assessment processes, such as the use of internal audit.

E Capital Management :

Company''s capital management objective is primarily to safeguard business continuity. The Company''s capital raising policy is aligned to macro economic situation and incidental risk factors. The Company''s cashflows are regularly monitored in sync with annual operating plans and long-term and other strategic investment plans. The operational funding requirements are met through debt and operating cash flows generated. The company believes this approach would create shareholder value in long run. Also, the company has adopted a conservative approach for ALM management with primacy to adequate liquidity. At present a large portion of the company''s resource base is equity. Therefore the company enjoys a low gearing.

39 Disclosure On Liquidity Risk Management Framework Pursuant To Reserve Bank Of India

Notification RBI /DNBR / 2016-17/45 Master Direction Dnbr.Pd.008/03.10.119/2016-17 Dated December 29, 2022.

A. Qualitative Disclosure on LCR

The Board of Directors are responsible for the overall risk management approach and for approving the risk management strategies and principles. The Board has constituted the Risk Management Committee (RMC) which is responsible for monitoring the overall risk process within the Company.

The meetings of RMC are held at quarterly interval. The Risk owners are responsible for monitoring compliance with risk principles, policies and limits across the Company. RMC ensures that the credit and investment exposure to any party / Company / group of parties or companies does not exceed the internally set limits as well as statutory limits as prescribed by Reserve Bank of India from time to time. RMC Develops risk policies and procedures and verify adherence to various risk parameters and prudential limits; review the risk monitoring system and ensure effective risk management.

The Company''s Treasury is responsible for managing its assets and liabilities and the overall financial structure. It is also primarily responsible for the funding and liquidity risks of the Company.

The Board of Directors has constitution of Asset Liability Committee (ALCO). The Company''s ALCO monitors asset liability mismatches to ensure that there are no imbalances or excessive concentrations on either side of the balance sheet. ALCO conducts quarterly reviews relating to the liquidity position and stress test assuming various ''what if'' scenarios. The ALCO is a decision-making unit responsible for balance sheet planning from risk-return perspective including strategic management of interest rate and liquidity risks. The ALCO also evaluates the Borrowing Plan of subsequent quarters based on previous borrowings of the Company.

In assessing the Company''s liquidity position, consideration is given to: (1) present and anticipated asset quality (2) present and future earnings capacity (3) historical funding requirements (4) current liquidity position (5) anticipated future funding needs, and (6) sources of funds. The Company maintains a portfolio of marketable assets that are assumed to be easily liquidated and undrawn cash credit limits which can be used in the event of an unforeseen interruption in cash flow. In accordance with the Company''s policy, the liquidity position is assessed under a variety of scenarios, giving due consideration to stress factors relating to both the market in general and specifically to the Company. Net liquid assets consist of cash, short-term bank deposits and investments in mutual fund available for immediate sale. Borrowings from banks and financial institutions and issue of debentures are considered as important sources of funds to finance lending to customers.

The minutes of ALCO meetings are placed before the RMC and the Board of Directors meeting for noting.

The Company exceeds the regulatory requirement of liquidity coverage ratio (LCR) introduced by the RBI in FY 2020. This requirement stipulates that NBFCs with an asset size of '' 5,000 crore and above are required to maintain 50% of its expected net cash outflows in a stressed scenario in high quality liquid assets (HQLA) by December 2021; which has to be increased to 100% by December 2024 in a phased manner.

As of 31 March 2024, Company maintained LCR of 264.03% which is well above the stipulated norms.

62. Other Statutory Information:

1 The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under 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.

2 The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

3 The Company has not been declared willful defaulter by any bank or financial institution or other lender or government or any government authority.

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

6 The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities (Intermediaries), with the understanding that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

7 The Company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

9 The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

10 The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

11 The Company has not revalued Intangible assets during the year.

12 Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

13 Compliance with approved Scheme(s) of Arrangements: Not applicable

14 Borrowed funds have been utilised for the purpose they have been sanctioned and share premium has been utilised in working capital.

15 The Company confirms that, the title deeds of immovable properties are held in the name of the Company.

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

17 The Company is registered with Insurance Regulatory and Development Authority of India (IRDAI) as Corporate agent vide CA0881 dated December 07, 2023.

63. Accounting Software Used for maintenance of Books of Accounts

As per the requirements of rule 3(1) of the Companies (Accounts) Rules 2014, the company uses only such accounting software for maintaining its books of account that have a feature of recording audit trail of each and every transaction creating an edit log of each change made in the books of account along with the date when such changes were made within such accounting software. This feature of recording audit trail has operated throughout the year and was not disabled or tampered with during the year, except for the situations noted below wherein during the year the audit trail feature was not enabled for -

a) Customer masters in two accounting software;

b) Databases maintained in accounting software;

Further, in case of one accounting software, where though the audit trails are maintained by the Company, the Company could not generate audit log to substantiate that the audit trail feature has not been tempered anytime during the year.

Further, for two accounting software, which have been discontinued/sunset during the year, the Company could not extract the data to substantiate that the feature of recording audit trail was operated throughout the year.

64. Fig ures for the previous years have been regrouped/rearranged wherever considered necessary to conform to the figures presented in the current year.

In terms of our report attached For and on behalf of the Board of Directors of

For M M Nissim & Co LLP Capri Global Capital Limited

Chartered Accountants CIN: L65921MH1994PLC173469

(Firm''s Registration No. 107122W/W100672)

Sd/- Sd/- Sd/-

Manish Singhania Rajesh Sharma Subramanian Ranganathan

Partner Managing Director Independent Director

Membership No. - 155411 DIN 00020037 DIN 00125493

Place : Mumbai Place : Mumbai Place : Mumbai

May 08, 2024 May 08, 2024 May 08, 2024

Sd/- Sd/-

Yashesh Bhatt Partha Chakraborti

Company Secretary Chief Financial Officer

ACS-20491

Place: Mumbai Place : Mumbai

May 08, 2024 May 08, 2024

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Mar 31, 2023

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 (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

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, contingent consideration and indemnification asset included in level 3.

Short-term financial assets and liabilities For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts, which are net of impairment, are a reasonable approximation of their fair value. Such instruments include cash and cash equivalents, trade receivables, balances other than cash and cash equivalents and trade payables without a specific maturity

Note 39.1. Risk Disclosures

Company''s risk 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 exposed to credit risk, liquidity risk and interest rate risk.

It is the Company''s policy to ensure that a robust risk awareness is embedded in its organisational risk culture.

39.2. 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 manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties.

39.2.1 Impairment assessment

39.2.1.1 Exposure at Default

The Exposure at Default is an estimate of the exposure at a future default date including the undrawn commitments. EAD is taken as the gross exposure under a facility upon default of an obligor. The principal outstanding, overdue principal, accrued interest, overdue interest less excess received from the customers is considered as EAD for the purpose of ECL computation.

The advances have been bifurcated into following three stages:

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 up to 0-30 days default under this category. Stage 1 loans also include facilities where the credit risk has reduced 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. Financial assets past due for 31 to 90 days are classified under this stage. Stage 2 loans also include facilities where the credit risk has reduced, and the loan has been reclassified from Stage 3.

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. more than 90 days Past Due is considered as default for classifying a financial instrument as credit impaired."

39.2.1.2 Significant increase in credit risk

The Company continuously monitors all assets subject to ECLs. In order to determine whether an instrument or a portfolio of instruments is subject to 12 months ECL or lifetime ECL, the Company assesses whether there has been a significant increase in credit risk since initial recognition. The Company considers an exposure to have significantly increased in credit risk if contractual payments are more than 30 days past due.

39.2.1.3 Definition of default and cure

The Company considers a financial instrument defaulted and therefore Stage 3 (credit impaired) for ECL calculations in all cases when the borrower becomes more than 90 days past due on its contractual payments.

As a part of a qualitative assessment of whether a customer is in default, the Company also considers a variety of instances that may indicate inability to pay. When such events occur, the Company carefully considers whether the event should result in treating the customer as defaulted and therefore assessed as Stage 3 for ECL calculations or whether Stage 2 is appropriate. Such events include:

a) Significant financial difficulty of the borrower or issuer;

b) A breach of contract such as a default or past due event;

c) The restructuring of a loan or advance by the company on terms that the company would not consider otherwise; or

d) It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation

It is the Company''s policy to consider a financial instrument as ''cured'' and therefore re-classified out of Stage 3 when the borrower makes necessary payments & the borrower is not 90 days past due after such payments. The decision whether to classify an asset as Stage 2 or Stage 1 once cured depends on the updated credit grade, at the time of the cure, and whether this indicates there has been a significant increase in credit risk compared to initial recognition.

39.2.1.4 Probability of Default ("PD") estimation process

Probability of default ("PD") is defined as the likelihood of default over a particular time horizon. The PD of an obligor is a fundamental risk parameter in credit risk analysis and depends on obligor specific as well as macroeconomic risk factors.

a) The Company has applied 12 months PD to stage 1 advances

b) The Lifetime PD is computed using basic exponentiation technique after considering the residual maturity of the respective loan.

c) PD of 100% is considered for Stage 3 assets.

Days past due are a primary input for the determination of the PD for exposures. The Company collects performance and default information about its credit risk exposures analysed by portfolio. For some portfolios, rating based published information is used.

The Company employs statistical models to analyse the data collected and generate estimates of the remaining lifetime PD of exposures and how these are expected to change as a result of the passage of time. Such statistical models are selected considering the availability of information related to the probability of default for each product. This analysis includes the identification and calibration of relationships between changes in default rates and changes in key macro-economic factors.

For the purpose of determination of impact of forward looking information, the Company applies various macro economic (ME) variables as stated above to each portfolio and assess the trend of the historical probability of defaults as compared to the forecasted probability of default. Based on the directional trend of output, management applies an overlay if required. Overtime, new ME variable may emerge to have a better correlation and may replace ME being used now.

The loans are segmented into homogenous product categories to determine the historical PD/LGD as per similar risk profiles, this segmentation is subject to regular review For portfolios in respect of which the Company has limited historical data, external benchmark information is used to supplement the internally available data.

The Company does not have any historic data of default in case of Gold Loan portfolio, so it has relied upon the published data of competitors.

39.2.1.5 Loss Given Default ("LGD")

Loss Given Default ("LGD") is defined as the loss rate on the exposure, given the borrower has defaulted. LGD is being calculated for all financial instruments under risk parameter approach by way of evaluation of historical data on defaults, recovery amounts, collateral liquidation, direct expenses, and opportunity cost for each default. LGD has been computed using the volatility-based model in case of Gold Loan portfolio.

39.2.1.6 Forward looking information

in its EGL models, the Company relies on a broad range of forward looking information as economic inputs, such as. GDP growth, Consumer Price Index, Unemployment rate, Lending Interest Rate etc The inputs and models used for calculating ECLs may not always capture all characteristics of the market at the date of the financial statements. To reflect this, qualitative adjustments or overlays are occasionally made as temporary adjustments when such differences are significantly material

During the current year, the Company has made refinement in the ECL model and said changes have been updated in the ECL policy which is duly approved by the audit committee.

39.2.2 Analysis of risk concentration - Refer Note 56.11.3.2

39.2.3 Collateral and other credit enhancements

"The Company holds collateral and other credit enhancements against certain of its credit exposures. The loans are collateralized against equitable mortgage of property, pledge of shares, hypothecation of assets, physical gold jewellery, undertaking to create security.

Management monitors the market value of collateral and will request additional collateral in accordance with the underlying agreement. In case of defaults by customers, where the Company is unable to recover the dues, the Company through a legal process enforces the security and recovers the dues.

39.3. Liquidity risk and funding management

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on acceptable terms. To limit this risk, management has arranged for diversified funding sources and adopted a policy of managing assets by monitoring future cash flows and liquidity on a daily basis.

Liquidity risk is managed in accordance with our Asset Liability Management Policy. This policy is framed as per the current regulatory guidelines and is approved by the Board of Directors. The Asset Liability Management Policy is reviewed periodically to incorporate changes as required by regulatory stipulation or to realign the policy with changes in the economic landscape. The Asset Liability Committee (ALCO) of the Company formulates and reviews strategies and provides guidance for management of liquidity risk within the framework laid out in the Asset Liability Management Policy.

The table below summarises the maturity profile of the undiscounted cash flow of the Company''s financial liabilities:

Current Year
								('' in millions)
Particulars	upto	Over 1	Over 2	Over 3	Over 6	Over 1	Over 3	Over 5	Total
	30/31	month	months	monthsto	months to	year to 3	year to 5	years
	days	upto 2 months	upto 3 months	6 months	1 year	year	years
Debt Securities	-	2,386.16	581.99	230.14	77.31	306.94	306.86	1,768.27	5,657.67
Borrowings	1,117.83	916.46	2,415.74	4,583.01	8,833.94	24,573.71	13,631.72	4,695.85	60,768.26
Trade Payable	951.39	-	-	-	-	-	-	-	951.39
Lease liability	30.43	30.41	37.73	83.95	181.00	739.23	679.66	1,071.22	2,853.63
Other Financial Liability	2,260.88	-	-	-	-	-	-	-	2,260.88
Previous Year
								('' in millions)
Particulars	upto	Over 1	Over 2	Over 3	Over 6	Over 1	Over 3	Over 5	Total
	30/31	month	months	monthsto	months to	year to 3	year to 5	years
	days	upto 2 months	upto 3 months	6 months	1 year	year	years
Debt Securities	229.98	213.42	45.00	234.68	77.36	3,209.23	306.90	1,882.99	6,199.56
Borrowings	246.87	578.35	924.07	1,928.48	4,293.63	15,648.74	8,405.64	2,826.74	34,852.52
Trade Payable	334.24	-	-	-	-	-	-	-	334.24
Lease liability	4.69	4.70	4.69	14.24	28.81	107.00	74.11	8.23	246.47
Other Financial Liability	2,026.05	-	-	-	-	-	-	-	2,026.05

39.4. Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments. The core business of the company is providing loans to MSME, Construction Finance, Indirect lending and Gold loan. The company borrows through various financial instruments to finance its core lending activity. These activities expose the company to interest rate risk.

Interest rate risk is measured through earnings at risk from an earnings perspective and through duration of equity from an economic value perspective. Further, exposure to fluctuations in interest rates is also measured by way of gap analysis, providing a static view of the maturity and re-pricing characteristic of Balance sheet positions. An interest rate sensitivity gap report is prepared by classifying all rate sensitive assets and rate sensitive liabilities into various time period categories according to contracted/behavioural maturities or anticipated re-pricing date. The difference in the amount of rate sensitive assets and rate sensitive liabilities maturing or being re-priced in any time period category, gives an indication of the extent of exposure to the

risk of potential changes in the margins on new or re-priced assets and liabilities. The interest rate risk is monitored through above measures on a quarterly basis.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates (all other variables being considered as constant) of the Company''s statement of profit and loss and equity.

(? in millions)
Currency	Increase / (decrease) in basis points	Sensitivity of profit or loss		Sensitivity of equity
2022-23
Loans (?)	50 Basis point Up		299.44		223.71
	100 Basis point Up		598.88		447.42
	50 Basis point Down		(299.44)		(223.71)
	100 Basis point Down		(598.88)		(447.42)
Borrowings (?)	50 Basis point Up		(248.92)		(185.97)
	100 Basis point Up	r„ , r	(497.85)		(371.94)
	50 Basis point Down		248.92		185.97
	100 Basis point Down		497.85		371.94
2021-22
Loans (?)	25 Basis point Up		116.08		86.87
	50 Basis point Up		232.16		173.73
	25 Basis point Down		(116.08)		(86.87)
	50 Basis point Down		(232.16)		(173.73)
Borrowings (?)	25 Basis point Up		(84.09)		(62.92)
	50 Basis point Up	r„ , r	(168.18)		(125.85)
	25 Basis point Down		84.09		62.92
	50 Basis point Down		168.18		125.85

Operational Risk

Operational risk is the risk of loss arising from systems failure, human error, fraud or external events. When controls fail to operate effectively, operational risks can cause damage to reputation, have legal or regulatory implications, or lead to financial loss. The Company cannot expect to eliminate all operational risks, but it endeavours to manage these risks through a control framework and by monitoring and responding to potential risks. Controls include maker-checker controls, effective segregation of duties, access, authorisation and reconciliation procedures, staff education and assessment processes, such as the use of internal audit.

Capital Management :

Company''s capital management objective is primarily to safeguard business continuity. The Company''s capital raising policy is aligned to macro economic situation and incidental risk factors. The Company''s cashflows are regularly monitored in sync with annual operating plans and long-term and other strategic investment plans. The operational funding requirements are met through debt and operating cash flows generated. The company believes this approach would create shareholder value in long run. Also, the company has adopted a conservative approach for ALM management with primacy to adequate liquidity. At present a large portion of the company''s resource base is equity. Therefore the company enjoys a low gearing.

The Company maintains its capital structure in line with economic conditions and the risk characteristics of its activities and the board reviews the capital position on a regular basis.

Note 40B- Defined Benefit Plan

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for its employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation/retirement. The fund has the form of a trust and it is governed by the Board of Trustees, which consists of an equal number of employer and employee representatives. The Board of Trustees is responsible for the administration of the plan assets and for the definition of the investment strategy.

The following table sets out the status of the Defined Benefit Gratuity Plan as per the actuarial valuation by the independent Actuary appointed by the Company:-

- The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

- The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

- Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

- There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Note - 42 Segment Information (IND-AS 108)

Operating Segment:

The Company operates mainly in the business segment of fund based financing activity. All other activities revolve around the main business. Further, all activities are carried out within India. As such, there are no separate reportable segments as per the provisions of IND AS 108 on ''Operating Segments''.

Expected life of the options: Expected life of the options is the period for which the company expects the Options to be live. The minimum life of a stock option is the minimum period before which the options cannot be exercised, and the maximum life is the period after which the options cannot be exercised.

Expected volatility: The measure of volatility used in ESOP pricing model is the annualised standard deviation of the continuously compounded rates of return (calculated by log function) on the share over a period prior to the date of grant corresponding to the expected life of the option.

Dividend yield: Dividend Yield has been calculated as an average of dividend yields of six financial years preceding the date of grant. The dividend yield for the year is derived by dividing the dividend per share by the share price as on dividend effective date.

Risk-free interest rate: The rate used to discount employee benefit obligations reflects the estimated timing of benefit payments and the currency in which the benefits are to be paid. We have used the Discount Rate which relates to the par-yield rate available on ZYC Government Securities (G. Sec.) for the tenure of the expected life of options. (Ref: G Sec. rates available through www. fbil.org.in with prices/yields published by FBIL).

The Weighted average market price of the ESOPs exercised during the year is '' 722.35 Per share (previous Year '' 530.71 Per share)

ESOP cost recognised in the Statement of Profit and Loss for March 31, 2023''141.75 millions (March 31, 2022''50.10 millions)

As at March 31,2023 amount of '' 1.61 millions (as at March 31, 2022''16.75 millions) being the difference between the exercise price and fair value of the options is receivable from the subsidiary company with which employees are employed.

Note 46 - Expenditure in Foreign Currency

Software Expenses '' 5.15 millions (March 31,2022''1.47 millions)

Professional Expenses '' 9.24 millions (March 31,2022 '' Nil millions)

Note 47 - Contingent Liabilities

Income Tax matters under dispute: March 31, 2023''139.44 millions (March 31, 2022''114.27 millions)

Note 48 - Capital and Other Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for March 31,2023''213.15 millions (March 31, 2022''65.27 millions)

b) Amount payable towards acquisition of Property for March 31, 2023''53.15 millions (March 31,2022''39.82 millions)

c) Other Commitments- Pending disbursements of sanctioned loans for March 31,2023 '' 12,325.40 millions (March 31,2022 '' 10,513.73 millions)

Note 49 - Fraud Reporting

The company has reported frauds aggregating March 31, 2023 '' 11.18 millions (March 31, 2022 NIL) based on management reporting to risk committee and to the RBI through prescribed returns.

(vii) Details of Benami Property held:

No proceedings have been initiated or pending against the company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended from time to time) and the rules made thereunder.

(viii) Security of current assets against borrowings:

Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

(ix) Wilful Defaulter:

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

(x) Relationship with Struck off Companies: There are no transaction with Struck off companies during the year.

(xi) Registration of charges or satisfaction with Registrar of Companies (ROC):

During the year, there was no delay in registration of charge or satisfaction with ROC and no charge is pending for registration.

(xii) Compliance with number of layers of companies:

The Company has complied with the requirements of number of layers as per Section 186 of Companies Act, 2013.

(xiv) Compliance with approved Scheme(s) of Arrangements: Not applicable

(xv) Utilisation of Borrowed funds and share premium

Borrowed funds have been utilised for the purpose they have been sanctioned and share premium has been utilised in working

capital.

(xvi)

(a) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or other kind of funds) to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The Company has not received any funds (which are material either individually or in the aggregate) from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

56.3.3 Disclosures on Risk Exposure in Derivatives A. Qualitative Disclosure

The Company undertakes derivative transactions for hedging on-balance sheet liabilities, these derivative transactions are in form of Forward Exchange Contracts.

The Asset Liability Management Committee and Risk Management Committee closely monitors such transactions and reviews the risks involved. The Company has entered into these Forward Exchange Contract to mitigate the foreign exchange risk pertaining to FCNR (B) Term Loan.

All derivative contracts including the Forward Exchange Contracts are recognised on the balance sheet and measured at fair value. Hedge accounting is applied to all the derivative instruments including the Forward Exchange Contracts as per IND AS 109. Gain / loss arising on account of fair value changes are recognised in the Statement of Profit and Loss to the extent of ineffective portion of hedge instruments and hedged items. The gains / losses of effective portion of hedge instrument are offset against gain / losses of hedged items in Other Comprehensive Income.

Foreign exchange forward contracts outstanding at the Balance Sheet date, are recorded at fair value. The premium or discount arising at the inception of such forward exchange contract is amortised as expense or income over the life of the contract. The Company has entered into cashflow hedges to hedge currency risk on certain foreign currency loans and to cover future interest on foreign currency borrowings.

56.12.6 Institutional set-up for liquidity risk management

The Board of Directors are responsible for the overall risk management approach and for approving the risk management strategies and principles. The Board has constituted the Risk Management Committee (RMC) which is responsible for monitoring the overall risk process within the Company.

The meetings of RMC are held at quarterly interval. The Risk owners are responsible for monitoring compliance with risk principles, policies and limits across the Company. RMC ensures that the credit and investment exposure to any party / Company / group of parties or companies does not exceed the internally set limits as well as statutory limits as prescribed by Reserve Bank of India from time to time. RMC Develops risk policies and procedures and verify adherence to various risk parameters and prudential limits; review the risk monitoring system and ensure effective risk management.

The Company''s Treasury is responsible for managing its assets and liabilities and the overall financial structure. It is also primarily responsible for the funding and liquidity risks of the Company.

The Board of Directors has constitution of Asset Liability Committee (ALCO). The Company''s ALCO monitors asset liability mismatches to ensure that there are no imbalances or excessive concentrations on either side of the balance sheet. ALCO conducts quarterly reviews relating to the liquidity position and stress test assuming various ''what if'' scenarios. The ALCO is a decision-making unit responsible for balance sheet planning from risk-return perspective including strategic management of interest rate and liquidity risks. The ALCO also evaluates the Borrowing Plan of subsequent quarters based on previous borrowings of the Company.

In assessing the Company''s liquidity position, consideration is given to: (1) present and anticipated asset quality (2) present and future earnings capacity (3) historical funding requirements (4) current liquidity position (5) anticipated future funding needs, and (6) sources of funds. The Company maintains a portfolio of marketable assets that are assumed to be easily liquidated and undrawn cash credit limits which can be used in the event of an unforeseen interruption in cash flow. In accordance with the Company''s policy, the liquidity position is assessed under a variety of scenarios, giving due consideration to stress factors relating to both the market in general and specifically to the Company. Net liquid assets consist of cash, short-term bank deposits and investments in mutual fund available for immediate sale. Borrowings from banks and financial institutions and issue of debentures are considered as important sources of funds to finance lending to customers.

The minutes of ALCO meetings are placed before the RMC and the Board of Directors meeting for noting.

"The Company exceeds the regulatory requirement of liquidity coverage ratio (LCR) introduced by the RBI in FY 2020. This requirement stipulates that NBFCs with an asset size of '' 5,000 crore and above are required to maintain 50% of its expected net cash outflows in a stressed scenario in high quality liquid assets (HQLA) by December 2021; which has to be increased to 100% by December 2024 in a phased manner.

Note 58 Previous year figures

Previous year''s figures have been regrouped and reclassified wherever necessary to confirm to current year''s presentation.

---

Mar 31, 2022

Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days. The Company has assessed that, the impact of impairment of trade receivables is immaterial and hence no impairment loss has been provided.

No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

Disclosure under regulation 53(e) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015: Debenture Trustees:

Catalyst Trusteeship Limited 604, Windsor, Off CST Road,

Kalina, Santacruz East,

Mumbai - 400098.

Contact : 91 (022) 49220555

Disclosure under regulation 53(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015: Related party transaction - Refer Note 41

Disclosure under regulation 54(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015: Asset Cover

The above NCD''s are secured against first pari-passu charge by way of hypothecation on the immovable property, loan receivables/book debts, bank balances and investments of the company with asset cover range of 1.25 to 1.33 times.

Borrowings other than above: First pari-passu charge by way of hypothecation of the Company''s loan receivables / book debts, bank balance and investments with asset cover in the range of 1.15 to 1.33 times.

Weighted average cost for FY 21-22 is 8.27% p.a. and for FY 20-21 is 9.59% p.a.

Terms/Rights attached to equity shares:

1. The Company has only one class of equity share having a par value of ''2/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

2. 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 proportion to the number of equity shares held by the shareholders.

Shares reservation :

In FY 2021-22, 30,40,800 shares (FY 2020-21 15,80,45 shares) of ''2 each towards outstanding employee stock options granted (Refer Note 45)

Objective for managing capital:

The Company maintains an actively managed capital base to cover risks inherent in the business and is meeting the capital adequacy requirements of the regulator, Reserve Bank of India (RBI). The adequacy of the Company''s capital is monitored using, among other measures, the regulations issued by RBI.

Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

Statutory Reserve pursuant to Section 45-IC of the RBI Act, 1934

Every non-banking financial company is required to create a reserve fund and transfer therein a sum not less than twenty per cent of its net profit every year as disclosed in the statement of profit and loss before any dividend is declared.

Employee stock option outstanding reserves

This reserve is used to record the employee stock options which are outstanding. The said reserve will be utilised for issuance of share to the eligible employees.

3. Nature of CSR activities - Women Empower, Livelihood Initiative, Education Initiative, Health Initiative (including nutrition project), COVID-19 Relief support, Animal Welfare

4. Disclosure in relation to undisclosed income - There are no transactions which are not recorded in the books of account which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

5. Details of Crypto currency or Virtual currency - The Company has not traded or invested in crypto currency or virtual currency during the financial year

The extent to which any new wave of COVID-19 pandemic will impact the Company''s results will depend on ongoing as well as future developments, including, among other things, any new information concerning the severity of the COVID-19 pandemic, and any action to contain its spread or mitigate its impact whether government-mandated or elected by us.

The Company has assessed the potential impact of COVID-19 on the carrying value of its assets based on relevant internal and external factors / information available, upto the date of approval of these financial results. In order to cover the impact of COVID-19 on the future expected credit losses, the Company carries a management and macro economic variable outlay of ''340.25 millions as on March 31, 2022 (as on March 31, 2021 ''152.70 millions). The Company will continue to closely monitor the material changes in the macro-economic factors impacting the operations of the Company.

Capital Management

The primary objectives of the Company''s capital management policy are 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 shareholders 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. Capital Management Policy, objectives and processes are under constant review by the Board. For details of Capital to Risk Assets Ratio (CRAR) refer Note no. 56.1

Note 38. Fair value measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions , regardless of whether that price is directly observable or estimated using a valuation technique.

Ind AS 109, ''Financial Instrument - Disclosure'' requires classification of the valuation method of financial instruments measured at fair value in the balance Sheet, using a three level fair-value-hierarchy (which reflects the significance of inputs used in the measurements). The hierarchy gives the highest priority to un-adjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair-value-hierarchy under Ind AS 107 are described below:

38.2 Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. 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. An explanation of each level follows underneath the table.

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 (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

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, contingent consideration and indemnification asset included in level 3.

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature.

Note 39. Risk Management

39.1. Risk Disclosures

Company''s risk 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 exposed to credit risk, liquidity risk and interest rate risk. It is the Company''s policy to ensure that a robust risk awareness is embedded in its organisational risk culture.

39.2. 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 manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties.

39.2.1 Impairment assessment

39.2.1.1 Exposure at Default

EAD is taken as the gross exposure under a facility upon default of an obligor. The amortized principal and the interest accrued is considered as EAD for the purpose of ECL computation

The advances have been bifurcated into following three stages:

Stage 1 - Advances with low credit risk and where there is no significant increase in credit risk. Hence, the advances up to 0-30 days are classified as Stage 1

Stage 2 - Advances with significant increase in credit risk. Hence the advances from 31 to 90 days are classified as Stage 2

Stage 3 - Advances that have defaulted / Credit impaired advances. Hence the advances with more than 90 days past due or Restructured Advances are classified as Stage 3. Another loan of the same customer whether in Stage 1 or Stage 2 is also considered as Stage 3 loan.

39.2.1.2 Significant increase in credit risk

The Company continuously monitors all assets subject to ECLs. In order to determine whether an instrument or a portfolio of instruments is subject to 12 months ECL or lifetime ECL, the Company assesses whether there has been a significant increase in credit risk since initial recognition. The Company considers an exposure to have significantly increased in credit risk if contractual payments are more than 30 days past due.

39.2.1.3 Definition of default and cure

The Company considers a financial instrument defaulted and therefore Stage 3 (credit impaired) for ECL calculations in all cases when the borrower becomes 90 days past due on its contractual payments.

As a part of a qualitative assessment of whether a customer is in default, the Company also considers a variety of instances that may indicate inability to pay. When such events occur, the Company carefully considers whether the event should result in treating the customer as defaulted and therefore assessed as Stage 3 for ECL calculations or whether Stage 2 is appropriate. Such events include:

a) Significant financial difficulty of the borrower or issuer;

b) A breach of contract such as a default or past due event;

c) The restructuring of a loan or advance by the company on terms that the company would not consider otherwise; or

d) It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation

It is the Company''s policy to consider a financial instrument as ''cured'' and therefore re-classified out of Stage 3 when the borrower makes necessary payments & the borrower is not 90 days past due after such payments. The decision whether to classify an asset as Stage 2 or Stage 1 once cured depends on the updated credit grade, at the time of the cure, and whether this indicates there has been a significant increase in credit risk compared to initial recognition.

39.2.1.4 Probability of Default ("PD") estimation process

The Probability of Default 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 derecognised and is still in the portfolio. Probability of Default is computed based on number of accounts that default during a year as a percentage of average number of accounts outstanding (refer note 32).

a) The Company has applied 12 months PD to stage 1 advances

b) The Lifetime PD is computed using basic exponentiation technique after considering the residual maturity of the respective loan.

c) PD of 100% is considered for Stage 3 assets.

39.2.1.5 Loss Given Default ("LGD")

The Loss Given Default 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 would be expected to receive, including from realisation of any prime/collateral security. LGD is computed based discounted expected recoveries at an account level based on collateral valuation after applying appropriate hair cut and appropriate recovery time. Accordingly, an average LGD is derived at the portfolio level.

39.2.2 Analysis of risk concentration - Refer Note 56.10.3

39.2.3 Collateral and other credit enhancements

The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Company has guidelines in place covering the acceptability and valuation of each type of collateral.

1) The main type of collateral for construction finance is mortgage of project and hypothecation of Receivables.

2) In case of MSME loans, collaterals are Residential/Commercial/Industrial property.

Management monitors the market value of collateral and will request additional collateral in accordance with the underlying agreement.

In case of defaults by customers, where the Company is unable to recover the dues, the Company through a legal process enforces the security and recovers the dues.

39.2.4 In accordance with the instructions in the RBI circular dated April 07 2021 , all lending institutions shall refund / adjust ''interest on interest'' to all borrowers, irrespective of whether moratorium had been fully or partially availed, or not availed. Pursuant to these instructions, the Indian Banks Association (IBA) in consultation with other industry participants / bodies published the methodology for calculation of the amount of such ''interest on interest''. Accordingly. the Company has estimated the said amount and made provision for refund/adjustment.

39.2.5 The outbreak of Covid-19 pandemic across the globe & India has contributed to a significant volatility and decline in the global and Indian financial markets and slowdown in the economic activities. Pursuant to the guidelines issued by RBI dated, March 27, 2020, April 17, 2020 and May 23, 2020 relating to COVID-19 Regulatory Package, the Company has granted moratorium on the payment of instalments falling due between March 01, 2020 and August 31, 2020 to the eligible borrowers. For the purpose of asset classification on all such accounts, the number of days past due as on March 31, 2021 excludes the moratorium period to the respective borrower, as per the policy.

39.2.6 H on''able Supreme court vide order dated March 23, 2021, in the matter of Small Scale industrial Manufacturers Associations VS UOI & Ors. Has stated that interim relief granted vide an interim order dated September 03, 2020 stands vacated. Accordingly the company has classified non performing assets as per extant RBI guidelines.

39.3. Liquidity risk and funding management

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on acceptable terms. To limit this risk, management has arranged for diversified funding sources and adopted a policy of managing assets by monitoring future cash flows and liquidity on a daily basis.

Liquidity risk is managed in accordance with our Asset Liability Management Policy. This policy is framed as per the current regulatory guidelines and is approved by the Board of Directors. The Asset Liability Management Policy is reviewed periodically to incorporate changes as required by regulatory stipulation or to realign the policy with changes in the economic landscape. The Asset Liability Committee (ALCO) of the Company formulates and reviews strategies and provides guidance for management of liquidity risk within the framework laid out in the Asset Liability Management Policy.

39.4. Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments. The core business of the company is providing loans to MSME and Construction Finance. The company borrows through various financial instruments to finance its core lending activity. These activities expose the company to interest rate risk.

Interest rate risk is measured through earnings at risk from an earnings perspective and through duration of equity from an economic value perspective. Further, exposure to fluctuations in interest rates is also measured by way of gap analysis, providing a static view of the maturity and re-pricing characteristic of Balance sheet positions. An interest rate sensitivity gap report is prepared by classifying all rate sensitive assets and rate sensitive liabilities into various time period categories according to contracted/behavioural maturities or anticipated re-pricing date. The difference in the amount of rate sensitive assets and rate sensitive liabilities maturing or being re-priced in any time period category, gives an indication of the extent of exposure to the risk of potential changes in the margins on new or re-priced assets and liabilities. The interest rate risk is monitored through above measures on a quarterly basis.

Operational Risk

Operational risk is the risk of loss arising from systems failure, human error, fraud or external events. When controls fail to operate effectively, operational risks can cause damage to reputation, have legal or regulatory implications, or lead to financial loss. The Company cannot expect to eliminate all operational risks, but it endeavours to manage these risks through a control framework and by monitoring and responding to potential risks. Controls include maker-checker controls, effective segregation of duties, access, authorisation and reconciliation procedures, staffeducationand assessment processes, such as the use ofinternal audit. During the year, the Company has not come across any instances of fraud.

Capital Management:

Company''s capital management objective is primarily to safeguard business continuity. The Company''s capital raising policy is aligned to macro economic situation and incidental risk factors. The Company''s cashflows are regularly monitored in sync with annual operating plans and long-term and other strategic investment plans. The operational funding requirements are met through debt and operating cash flows generated. The company believes this approach would create shareholder value in long run. Also, the company has adopted a conservative approach for ALM management with primacy to adequate liquidity. At present a large portion of the company''s resource base is equity. Therefore the company enjoys a low gearing.

Note 40B. Defined Benefit Plan

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for its employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation/retirement. The fund has the form of a trust and it is governed by the Board of Trustees, which consists of an equal number of employer and employee representatives. The Board of Trustees is responsible for the administration of the plan assets and for the definition of the investment strategy.

- The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

- The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

- Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

- There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The entity has adequate liquidity for payment of lease liabilities. The Company regularly monitor and pays lease rentals on timely manner as per the terms of respective leave and license agreement.

The Company has right to extend lease term as per mutually agreed terms laid down in respective leave and license agreement. The Company takes into account effect of extended lease term while recording the lease assets and lease liabilities accordingly.

Note 45. Employee Stock Option

The Company has granted Employee Stock Options (ESOP) under the Employee Stock Option Scheme 2009 (ESOP 2009) to employees of the Company/Subsidiary spread over a period 1 to 4 years.

Fair Value Methodology:

The fair value of the shares are measured using Black-Scholes-Merton formula. Measurement inputs include share price on measurement date, exercise date of the instrument, exercise price, expected life, risk free interest rate, dividend yield, expected volatility.

Expected life of the options: Expected life of the options is the period for which the company expects the Options to be live. The minimum life of a stock option is the minimum period before which the options cannot be exercised, and the maximum life is the period after which the options cannot be exercised.

Expected volatility: The measure of volatility used in ESOP pricing model is the annualised standard deviation of the continuously compounded rates of return (calculated by log function) on the share over a period prior to the date of grant corresponding to the expected life of the option.

Dividend yield: Dividend Yield has been calculated as an average of dividend yields of six financial years preceding the date of grant. The dividend yield for the year is derived by dividing the dividend per share by the share price as on dividend effective date.

Risk-free interest rate: The rate used to discount employee benefit obligations reflects the estimated timing of benefit payments and the currency in which the benefits are to be paid. We have used the Discount Rate which relates to the par-yield rate available on ZYC Government Securities (G. Sec.) for the tenure of the expected life of options. (Ref: G Sec. rates available through www.fbil.org.in with prices/yields published by FBIL).

The Weighted average market price of the ESOPs exercised during the year is ''530.71 (previous Year ''269.37).

ESOP cost recognised in the Statement of Profit and Loss for March 31,2022 ''50.10 Millions (March 31,2021 ''26.59 Millions)

As at March 31, 2022 amount of ''16.75 Millions (as at March 31, 2021 ''12.07 Millions) being the difference between the exercise price and fair value of the options is receivable from the subsidiary company with which employees are employed.

Note 46. Expenditure in Foreign Currency

Software Expenses ''1.47 Millions (March 31, 2021 ''1.61 Millions)

Note 47. Details of dues to micro and small enterprises

The Company has sent confirmations to suppliers to confirm whether they are covered under The Micro, Small and Medium Enterprises Development Act 2006 (MSMED Act, 2006) as well as they have filled required memorandum with prescribed authorities. Out of the confirmations sent to the parties, some confirmation have been received till date of finalisation of Balance Sheet. Based on the confirmations received, outstanding amounts payable to vendors covered under The Micro, Small and Medium Enterprises Development Act 2006 has been disclosed under note no. 13.

Note 48. Contingent Liabilities

Income Tax matters under dispute: March 31, 2022 ''114.27 Millions (March 31, 2021 ''2.90 Millions)

Note 49. Capital and Other Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for March 31, 2022 ''65.27 Millions (March 31, 2021 ''13.88 Millions)

b) Amount payable towards acquisition of Property for March 31, 2022 ''39.82 Millions (March 31, 2021 ''48.10 Millions)

c) Other Commitments

Pending disbursements of sanctioned loans for March 31, 2022 ''10,513.75 Millions (March 31, 2021 ''7,032.06 Millions)

Note 50. Fraud Reporting

The company has reported frauds aggregating March 31,2022 '' NIL (March 31,2021 '' NIL) based on management reporting to risk committee and to the RBI through prescribed returns.

Note 53.

There are no Restructured Accounts as per Appendix 4 of Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.

Note 55. Additional regulatory information under division III to schedule III as per notification dated March 24, 2021

(i) Title deeds of Immovable Property:

Title deeds of all immovable properties are in the name of the Company itself.

(ii) Revaluation of Property, Plant and Equipment:

The Company has not revalued Property, Plant and Equipment during the year.

(iii) Revaluation of Intangible Assets:

The Company has not revalued Intangible assets during the year.

(iv) Loans or Advances:

During the year, the Company has not provided any loans or advances granted to promoters, directors and KMPs. However, the loan was provided to one of the subisidiary and the same was repaid as well.

(vi) Details of Benami Property held:

No proceedings have been initiated or pending against the company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended from time to time) and the rules made thereunder.

(vii) Security of current assets against borrowings:

Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

(viii) Wilful Defaulter:

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

(ix) Relationship with Struck off Companies:

During the year, the company has not entered into any transaction with struck off companies.

(x) Registration of charges or satisfaction with Registrar of Companies (ROC):

During the year, there was no delay in registration of charge or satisfaction with ROC and no charge is pending for registration.

(xi) Compliance with number of layers of companies:

The Company has complied with the requirements of number of layers as per Section 186 of Companies Act, 2013.

(xiii) Compliance with approved Scheme(s) of Arrangements:

The Company has not entered into any scheme of arrangement.

(xvi) Utilisation of Borrowed funds and share premium

Borrowed funds have been utilised for the purpose they have been sanctioned and share premium has been utilised in working capital.

(xvi) (a) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or other kind of funds) to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The Company has not received any funds (which are material either individually or in the aggregate) from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

56.3.3 Disclosures on Risk Exposure in Derivatives A. Qualitative Disclosure

The Company undertakes derivative transactions for hedging on-balance sheet liabilities, these derivative transactions are in form of Forward Exchange Contracts.

The Asset Liability Management Committee and Risk Management Committee closely monitors such transactions and reviews the risks involved. The Company has entered into these Forward Exchange Contract to mitigate the foreign exchange risk pertaining to FCNR (B) Term Loan.

All derivative contracts including the Forward Exchange Contracts are recognised on the balance sheet and measured at fair value. Hedge accounting is applied to all the derivative instruments including the Forward Exchange Contracts as per IND AS 109. Gain / loss arising on account of fair value changes are recognised in the Statement of Profit and Loss to the extent of ineffective portion of hedge instruments and hedged items. The gains / losses of effective portion of hedge instrument are offset against gain / losses of hedged items in Other Comprehensive Income.

Foreign exchange forward contracts outstanding at the Balance Sheet date, are recorded at fair value. The premium or discount arising at the inception of such forward exchange contract is amortised as expense or income over the life of the contract. The Company has entered into cashflow hedges to hedge currency risk on certain foreign currency loans and to cover future interest on foreign currency borrowings.

56.6 Details of financing of parent company products

Not applicable as the company is not financing products of parent company.

56.7 Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the NBFC

These details are not applicable to Company as the Company has not exceeded the SGL and GBL as prescribed by RBI during the financial year.

56.8 Unsecured Advances

The exposure to unsecured advances is ''0.94 Millions (March 31, 2021 ''1.39 Millions)

56.9 Miscellaneous

56.9.1 Registration number obtained from RBI

B-13.01882

56.9.2 Disclosure of penalties imposed by RBI and other regulators

During the year ended March 31, 2022 no penalties have been imposed by RBI and other regulators (March 31, 2021: Nil)

56.9.3 Related Party Transactions

Refer note 41 to the standalone financial statements

56.9.3 Remuneration of Directors

Refer note 41 to the standalone financial statements

56.9.4 Management

The annual report has a detailed chapter on Management Discussion and Analysis.

56.9.5 Net Profit or Loss for the period, prior period items and changes in accounting policies

There are no prior period items that have an impact on the current year''s profit

56.9.6 Revenue Recognition

Since the company does not have significant uncertainities pending resolution as at March 31, 2022, revenue recignition has not been postponed.

56.9.7 Consolidated Financial Statements (CFS)

The Company has prepared Consolidated Financial Statements in accordance with the requirements of Ind AS 110 - Consolidated Financial Statements.

56.9.8 Disclosure pursuant to RBI circular dated November 12, 2021 - "Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances - Clarifications" (RBI Circular - RBI/2021 -2022/125/ DOR.STR.REC.68/21.04.048/2021-22)

Pursuant to the RBI circular dated November 12, 2021 - "Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances - Clarifications" (RBI Circular - RBI/2021-2022/125/DOR. STR.REC.68/21.04.048/2021-22) the Company had aligned its definition of default from number of instalments outstanding approach to Days Past Due approach. Subsequently on February 15, 2022 vide circular RB 1/2021 -2022/158/DOR.STR.REC.85/21.04.048/2021-22 (RBI Clarification), RBI has deferred the implementation of Para 10 of circular till September 30, 2022. Accordingly, the Company, in accordance with the said RBI clarification, has decided to implement the change in Income Recognition, Asset Classification and Provisioning norms by September 30, 2022. The impact of the RBI circular, which was recognized in the results of nine months'' period ended December 31, 2021 has been reversed by derecognizing such assets as credit impaired.

56.10.2 Draw Down from Reserves

The Company has not made any draw down from reserves during the previous year.

56.10.3 Concentration of Public deposits, Advances, Exposures and NPAs 56.10.3.1 Concentration of Deposits

The disclosure of the concentration of deposit taken is not applicable since the company is not in the business of accepting deposits being a systematically Important Non Deposit accepting NBFC.

56.11.6 Institutional set-up for liquidity risk management

The Board of Directors are responsible for the overall risk management approach and for approving the risk management strategies and principles. The Board has constituted the Risk Management Committee (RMC) which is responsible for monitoring the overall risk process within the Company.

The meetings of RMC are held at quarterly interval. The Risk owners are responsible for monitoring compliance with risk principles, policies and limits across the Company. RMC ensures that the credit and investment exposure to any party / Company / group of parties or companies does not exceed the internally set limits as well as statutory limits as prescribed by Reserve Bank of India from time to time. RMC Develops risk policies and procedures and verify adherence to various risk parameters and prudential limits; review the risk monitoring system and ensure effective risk management.

The Company''s Treasury is responsible for managing its assets and liabilities and the overall financial structure. It is also primarily responsible for the funding and liquidity risks of the Company.

The Board of Directors has constitution of Asset Liability Committee (ALCO). The Company''s ALCO monitors asset liability mismatches to ensure that there are no imbalances or excessive concentrations on either side of the balance sheet. ALCO conducts quarterly reviews relating to the liquidity position and stress test assuming various ''what if'' scenarios. The ALCO is a decision-making unit responsible for balance sheet planning from risk-return perspective including strategic management of interest rate and liquidity risks. The ALCO also evaluates the Borrowing Plan of subsequent quarters based on previous borrowings of the Company.

In assessing the Company''s liquidity position, consideration is given to: (1) present and anticipated asset quality (2) present and future earnings capacity (3) historical funding requirements (4) current liquidity position (5) anticipated future funding needs, and (6) sources of funds. The Company maintains a portfolio of marketable assets that are assumed to be easily liquidated and undrawn cash credit limits which can be used in the event of an unforeseen interruption in cash flow. In accordance with the Company''s policy, the liquidity position is assessed under a variety of scenarios, giving due consideration to stress factors relating to both the market in general and specifically to the Company. Net liquid assets consist of cash, short-term bank deposits and investments in mutual fund available for immediate sale. Borrowings from banks and financial institutions and issue of debentures are considered as important sources of funds to finance lending to customers.

The minutes of ALCO meetings are placed before the RMC and the Board of Directors meeting for noting.

The Company exceeds the regulatory requirement of liquidity coverage ratio (LCR) introduced by the RBI in FY 2020. This requirement stipulates that NBFCs with an asset size of ''5,000 crore and above are required to maintain 50% of its

Note 57 Previous year figures

Previous year''s figures have been regrouped and reclassified wherever necessary to confirm to current year''s presentation.

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Mar 31, 2018

Note : The above NCDs are secured against the Pari Passu Charge on book debts and immovable property (Located in Chennai). *These Debentures have tenure of 3 years subject to call/put option with the lender/investor to be exercised at the end of 2 years from the date of issue.

**These Debentures have tenure of 1.5 years subject to put option with the lender/investor to be exercised at the end of 3 months from the date of allotment.

1. Segment Reporting (AS-17)

Primary Segment (Business Segment)

The Company operates mainly in the business segment of fund based financing activity. All other activities revolve around the main business. Further, all activities are carried out within India. As such, there are no separate reportable segments as per the provisions of AS 17 on ’Segment Reporting''.

Secondary Segment (Geographical Segment)

The Company operates only in domestic markets. As a result separate segment information for different geographical segments is also not disclosed.

2 . The company believes that no impairment of assets arises during the year as per Accounting Standard - 28 "Impairment of Assets".

3. Contingent Liability:

Income Tax matters under dispute * : Rs, 40.14 Lakh (31^st March 2017 Rs, 7.02 Lakh)

* Future cash outflows are determinable only on receipt of judgments/decisions pending with various forums/authorities

4. Capital and other commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs, NIL (31^st March 2017 Rs, 30.15 Lakh)

b) Amount payable towards acquisition of Property: Rs, 912.60 Lakh (31^st March 2017 Rs, 1,763.85 Lakh)

c) Other Commitments

Pending disbursements of sanctioned loans Rs, 77510.14 Lakh (31^st March 2017 Rs, 49,112.21 Lakh)

5. Expenditure in Foreign Currency

a) Foreign Travelling Expenses Rs, 42.26 Lakh (31^st March 2017 : Rs, 31.06 Lakh)

b) Staff Welfare Expenses Rs, Nil (31^st March 2017 : Rs, 14.49 Lakh)

c) Director Sitting Fees Rs, 1.50 Lakh (31^st March 2017 : Rs, 1.20 Lakh)

6. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro, Small and Medium Enterprises Development (’MSMED'') Act, 2006". Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid /payable are required to be furnished.

7 . The Master Direction- Non-Banking Financial Company- Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, require the Company to make provision for standard assets at 0.40 percent of the Standard Assets. However, as a prudent practice, the Company has adopted to make provision of 0.50 percent. Consequently, during the current quarter / year ended 31^st March, 2018, the profits of the company are lower by Rs, 21.18 Lakh and Rs, 78.54 Lakh respectively.

Further, in pursuance to the Company''s Board approved policy, the Company is making an additional Contingency Provision of 1.50 percent on Standard Assets which are subsequently earmarked towards specific accounts which become Non Performing Assets (NPA). The Contingency provision as at 31^st March, 2018 is Rs, 1,443.16 Lakh net off utilization of Rs, 619.07 Lakh for Non Performing Assets (including Write offs) during the year.

8. I n the opinion of the Board, the Current Assets, Loans & Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

9.Subsequent Event

The Board of Directors of the Company at its meeting held on 26^th May, 2018 has recommended Dividend of Rs, 0.30 per share for the Financial Year 2017-18 subject to the approval of the members at the ensuing Annual General Meeting. In terms of the revised Accounting Standards, AS-4 ’Contingencies and Events Occurring after the Balance Sheet Date'' as notified by the Ministry of Corporate Affairs through amendments to the Companies (Accounting Standards) Rules, 2016, the Company has not appropriated the proposed final dividend (including tax) from the Statement of Profit and Loss for the year ended March 31, 2018.

10. Previous year figures

Previous year’s figures have been regrouped and reclassified wherever necessary to confirm to current year''s presentation.

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Mar 31, 2017

1.1 Terms/Rights attached to equity shares:

The company has only one class of equity share having a par value of Rs. 2/- per share. Each holder of equity shares is entitled to 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 ensuing Annual General Meeting.

During the year ended 31^st March 2017, the Board of Directors at its meeting held on 13^th May, 2017 has recommended a dividend of Re. 0.30/- on face value of Rs. 2/- per share (31^st March, 2016 Rs.1.50/- on face value of Rs .10/- per share).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be proportional to the number of equity shares held by the shareholders.

2. Gratuity and other post employment benefit plans (AS - 15)

The Company has an funded defined benefit obligation plan for gratuity under the Group Gratuity scheme of Life Insurance Corporation of India. The company has created plan assets by contributing to the Gratuity Fund with LIC Of India & to HDFC Standard Life Insurance Company.

The following tables summarise the components of the net employee benefit expenses recognised in the Statement of profit and loss, and the fund status and amount recognised in the balance sheet for the gratuity benefit plan.

3. Segment Reporting (AS-17)

Primary Segment (Business Segment)

The Company operates mainly in the business segment of fund based financing activity. All other activities revolve around the main business. Further, all activities are carried out within India. As such, there are no separate reportable segments as per the provisions of AS 17 on ‘Segment Reporting’.

Secondary Segment (Geographical Segment)

The Company operates only in domestic markets. As a result separate segment information for different geographical segments is also not disclosed.

4. Leases (AS - 19)

Operating Leases :

The company has taken office premises & guest houses under operating lease and the leases are of cancellable/ non-cancellable in nature. The lease arrangement are normally renewable on expiry of the lease period at the option of the lessor/ lessee ranging from 3 to 10 years. Some of the lease agreements are having lock in period of six months to five years which are non-cancellable during that period. After the expiry of the lock in period, the lease agreement becomes cancellable in nature at the option of the lessor or the lessee by giving 1-3 months notice to the either party. There are no restrictions imposed by the lease agreement. There is no contingent rent in the lease agreement. There is escalation clause in some lease agreements. The future minimum lease payments in respect of the non cancellable lease are as follows :

The lease payments recognized in the Statement of Profit & Loss in respect of non-cancellable lease for the year are Rs. 141.40 Lacs (31 March 2016: Rs.98.20 Lacs).

The lease payments recognized in the Statement of Profit & Loss in respect of cancellable lease for the year are Rs. 346.64 Lacs (31 March 2016: Rs.232.62 Lacs).

The Company had sub-leased the office premises under operating lease for which lease income is recognized in the Statement of Profit & Loss for the year amounting to Rs. 7.33 Lacs (31 March 2016: Rs.16.29 Lacs).

5. The company believes that no impairment of assets arises during the year as per Accounting Standard - 28 “Impairment of Assets”.

6. Contingent Liability: Nil

7. Capital and other commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.30.15 Lacs (31^st March 2016 Rs. 2.92 Lacs)

b) Amount payable towards acquisition of Property: Rs. 1,763.85 Lacs (31^st March 2016 Rs. 5,350.97)

c) Other Commitments

Pending disbursements of sanctioned loans Rs. 49,112.21 Lacs (31 March 2016 Rs. 20,501.08 Lacs)

8. Expenditure in Foreign Currency

Foreign Travelling Expenses Rs. 31.06 Lacs (31 March 2016 : Rs. 24.77 Lacs)

Staff Welfare Expenses Rs. 14.59 Lacs (31 March 2016 : NIL)

Director Sitting Fees Rs. 1.20 Lacs (31 March 2016 : Rs. 1.50 Lacs)

9. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under “The Micro, Small and Medium Enterprises Development (‘MSMED’) Act, 2006”. Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid /payable are required to be furnished.

10. (a). Schedule to the Balance Sheet of a non-deposit taking Non-Banking Financial Company Annex I of Master Direction – Non Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016

10. (b) Schedule to the Balance Sheet of a Non-Banking Financial Company as required by Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016

11. Master Direction- Non-Banking Financial Company- Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016, require the Company to make provision for standard assets at 0.35 percent of the Standard Assets. However, as a prudent practice, the Company has adopted to make provision of 0.50 percent. Consequently, during the current financial year, the profits of the company are lower by Rs. 106.03 Lacs.

Further, in pursuance to the Company’s Board approved policy, the Company is making an additional Floating Provision on Standard Assets of 1.5 percent which will be available for adjustment towards provision for Non Performing Assets/Write offs. Accordingly an amount of Rs. 937.85 Lacs is provided as Additional Floating Provision, which has been partially utilised towards the Provision for Non Performing Assets and Write off to the extent of Rs. 122.47 Lacs and Rs.16.04 Lacs respectively.”

12. In the opinion of the Board, the Current Assets, Loans & Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

13. Subsequent Event : The Board of Directors at its meeting held on 13^th May 2017 has recommended a dividend of Re.0.30/- per share on face value of Rs.2/- per equity share.

14. Previous year figures

Previous year figures have been regrouped and reclassified wherever necessary to confirm to current year’s presentation.

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Mar 31, 2016

Contingent assets are not recognized in the financial statements.
However contingent assets are assessed continually and if it is
virtually certain that an economic benefit will rise, asset and related
income are recognized in the period in which the change occurs.

During the year ended 31st March 2016, the amount of per share dividend
recognized as distributions to equity shareholders was Rs, 1.50/-
(March 31, 2015 Rs, 1.50/-)

In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company. The
distribution will be proportional to the number of equity shares held
by the shareholders.

As per records of the company, including its register of
shareholders/members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents both
legal and beneficial ownerships of shares.

1. Gratuity and other post employment benefit plans (AS -15)

The Company has an funded defined benefit obligation plan for gratuity
under the Group Gratuity scheme of Life Insurance Corporation of India.
The company has created plan assets by contributing to the Gratuity
Fund with LIC Of India & to HDFC Standard Life Insurance Company.

The following tables summaries the components of the net employee
benefit expenses recognized in the Statement of profit and loss, and
the fund status and amount recognized in the balance sheet for the
gratuity benefit plan.

2. Disclosures as required by Accounting Standard (AS-18) ''Related
Party Disclosures'' in respect of transactions for the

year are as under:

A. List of Related Parties over which control exists:

Sr.

Name of the Related Party Relationship No

i) Subsidiaries Companies

1 Capri Global Housing Finance Private Limited Wholly owned Subsidiary

2 Capri Global Investment Advisors Private Limited Wholly owned
Subsidiary up to 31st March 2015

3 Capri Global Distribution Company Private Limited Wholly owned
Subsidiary up to 31st March 2015

4 Capri Global Finance Private Limited Wholly owned Subsidiary up to
31st March 2015

5 Capri Global Research Private Limited Wholly owned Subsidiary up to
31st March 2015

6 Capri Global Resources Private Limited Wholly owned Subsidiary

ii) Enterprises over which Management and/or their relatives have
control

1 Money Matters Infrastructure Private Limited

2 Parijat Properties Pvt. Ltd

3 Dreamwork Media & Entertainment Pvt. Ltd

4 Capri Global Holdings Pvt. Ltd

5 Ramesh Chandra Sharma - HUF

iii) Key Management Personnel

1 Mr. Sunil Kapoor Executive Director

2 Mr. Quinton E Primo III Non-Executive Chairman

3 Mr Harish Agrawal Company Secretar Chief Financial Officer (From
16-0ctober-2014 to

4 Mr. Anand Agarwa

29-December-2014)

3. The company believes that no impairment of assets arises during
the year as per Accounting Standard - 28 "Impairment of Assets".

4. Contingent Liabilities

On account of bank guarantee to the Central Bureau of Investigation
against release of cash Rs, Nil (31st March, 2015: Rs, 12.12 Lacs)

5. Capital and other commitments

a) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs, 2.92 Lacs (31st March, 2015 Rs, 2.92
Lacs)

b) Amount payable towards acquisition of Property: Rs, 5,350.97 Lacs
(31st March, 2015 Rs, Nil)

c) Other Commitments

Pending disbursements of sanctioned loans Rs, 20,501.08 Lacs (31st
March, 2015 Rs, 8,541.59 Lacs)

6. Expenditure in Foreign Currency

Foreign Travelling Expenses Rs, 24.77 Lacs (31st March, 2015 : Rs,
12.63 Lacs)

Staff Welfare Expenses Rs, Nil (31st March, 2015 : Rs, 1.60 Lacs)

Director Sitting Fees Rs, 1.50 Lacs (31st March, 2015 : Rs, 1.00 Lacs)

7. Details of dues to Micro and Small Enterprises as defined under
the MSMED Act, 2006

Based on the intimation received by the Company, none of the suppliers
have confirmed to be registered under "The Micro, Small and Medium
Enterprises Development (''MSMED'') Act, 2006". Accordingly, no
disclosures relating to amounts unpaid as at the yearend together with
interest paid /payable are required to be furnished.

8. The Hon''ble High Court of Judicature at Bombay on 11th September,
2015 approved the Scheme of Amalgamation of Capri Global Distribution
Company Private Limited and Capri Global Finance Private Limited and
Capri Global Investment Advisors Private Limited and Capri Global
Research Private Limited (''the Transferor Companies'') with Capri Global
Capital Limited and their respective shareholders and creditors (''the
Scheme''). The Scheme became effective on 19*1 October, 2015 upon
obtaining all sanctions and approvals as required under the Scheme. The
Appointed Date for the merger is 1st April 2015. As the Transferor
Companies were wholly owned subsidiaries of the Company, no shares of
the Company were issued and allotted pursuant to the Scheme.

Pursuant to the Scheme, the entire business including the assets,
liabilities, duties & obligations of the Transferor Companies have
become vested in the Company w.e.f. 1st April, 2015. Since the Scheme
got the requisite approvals in the financial year ended 31st March,
2016, the impact of the amalgamation has been given in the current
financial year itself.

In accordance with the provisions of the Scheme; -

a The investments held by the Company in the Transferor Companies /
Wholly Owned Subsidiaries were cancelled. a The amalgamation is
accounted under the Pooling of Interest Method as per Accounting
Standard 14 - Accounting for

Amalgamations as referred to in the Scheme of Amalgamation approved by
the Hon''ble Bombay High Court. a The value of investments of the
Transferor Companies in the books of the Transferee Company was
equivalent to the paid up value of the Transferor Companies, hence no
goodwill or capital reserve was created on the said amalgamation.

Note : Pursuant to the Scheme, the entire business including the
assets, liabilities, duties & obligations of the Transferor Companies
have become vested in the Transferee Company w.e.f. Is'' April, 2015.
The figures for the year ended 31st March, 2016 are not comparable with
the corresponding previous year to that extent.

9. The Non-Banking Financial (Non-Deposit Accepting or Holding)
Companies Prudential Norms (Reserve Bank) Directions, 2007, require the
Company to make provision for standard assets at 0.30 percent of the
Standard Assets. However, as a prudent practice, the Company has
adopted to make provision of 0.50 percent. Consequently, during the
current financial year, the profits of the company are lower by Rs,
34.24 Lacs.

Further, in pursuance to the Company''s Board approved policy, the
Company has started making an additional Floating Provision on Standard
Assets of 1.5 percent and the same has been fully utilized towards
Write off to the extent of Rs, 1,489.43 Lacs.

10. In the opinion of the Board, the Current Assets, Loans & Advances
are realizable in the ordinary course of business at least equal to the
amount at which they are stated in the Balance Sheet. The provision for
all known liabilities is adequate and not in excess of the amount
reasonably necessary.

12. Previous year figures

Previous year figures have been regrouped and reclassified wherever
necessary to confirm to current year''s presentation.

---

Mar 31, 2015

1.1 Terms/Rights attached to equity shares

The company has only one class of equity share having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended 31st March 2015, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 1.50/- (31 March 2014 Rs. 1.50/-)

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be proportional to the number of equity shares held by the shareholders.

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

2. Gratuity and oth er post employm ent benefit plans (AS - 15) The Company has an funded defined benefit obligation plan for gratuity under the Group Gratuity scheme of Life Insurance Corporation of India. The company has created plan assets by contributing to the Gratuity Fund with LIC Of India & to HDFC Standard Life Insurance Company. The following tables summarise the components of the net employee benefit expenses recongnised in the Statement of Profit and Loss, and the fund status and amount recognised in the Balance Sheet for the gratuity benefit plan.

3. Employee Stock Option Plan

During the year, the Company has alloted 21,600 Equity shares as a result of Excersising Employee Stock Options at the Excersise price of Rs. 10/- per share. Further, there are no Employee Stock Options Outstanding as on the Balance Sheet Date. 25. Segment Reporting (AS-17)

Primary Segment (Business Segment)

The Company operates mainly in the business segment of fund based financing activity. All other activities revolve around the main business. Further, all activities are carried out within India. As such, there are no separate reportable segments as per the provisions of AS 17 on ''Segment Reporting''.

Secondary Segment (Geographical Segment)

The Company operates only in domestic markets. As a result sepearate segment information for different geographical segments is also not disclosed.

4. Leases (AS - 19)

Operating Leases

The company has taken office premises & guest houses under operating lease and the leases are of cancellable/ noncancellable in nature. The lease arrangement are normally renewable on expiry of the lease period at the option of the lessor/ lessee ranging from 3 to 5 years. Some of the lease agreements are having lock in period of six months to three years which are non-cancellable during that period. After the expiry of the lock in period, the lease agreement becomes cancellable in nature at the option of the lessor or the lessee by giving 1-3 months notice to the either party. There are no restrictions imposed by the lease agreement. There is no contingent rent in the lease agreement. There is escalation clause in some lease agreements. The future minimum lease payments in respect of the non cancellable lease are as follows:

The lease payments recognized in the Statement of Profit & Loss in respect of non-cancellable lease for the year are Rs. 3.23 Lacs (31 March 2014: Rs. 102.71 Lacs).

The lease payments recognized in the Statement of Profit & Loss in respect of cancellable lease for the year are Rs. 325.16 Lacs (31 March 2014: Rs. 249.02 Lacs).

The Company had sub-leased the office premises under operating lease in the current year. The lease income recognized in the Statement of Profit & Loss for the year is Rs. 16.29 Lacs (31 March 2014: Rs. 8.87 Lacs).

5. The company believes that no impairment of assets arises during the year as per Accounting Standard - 28 "Impairment of Assets".

6. Contingent Liabilities

On account of bank guarantee to the Central Bureau of Investigation against release of cash Rs.12.12 Lacs (31 March 2014: Rs.12.12 Lacs)

7. Capital and oth er commitm ents

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 2.92 Lacs (31st March 2014 Rs. 20.42 Lacs)

b) Other Commitments

Pending disbursements of sanctioned loans Rs. 8,541.59 Lacs (31 March 2014 Rs. 5,776.56 Lacs)

8. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006 Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro, Small and Medium Enterprises Development (''MSMED'') Act, 2006". Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid /payable are required to be furnished.

9. The Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, require the Company to make provision for standard assets at 0.25 percent of the Standard Assets. However, as a prudent practice from FY 2012-13, the Company has adopted to make provision of 0.50 percent.

Consequently, during the current financial year 2014-15, the profits of the company are lower by Rs. 55.03 Lacs. Further, during the year, the Company has decided to make Additional Floating Provision on standard asset of 1.50 Percent which will be available for adjustment towards provision for Sub-standard Assets. Accordingly an amount of Rs. 1374.42 Lacs is provided as Additional Floating Provision, which has been partially utilised towards the Provision for Non Performing Assets to the extent of Rs. 92.68 Lacs.

10. The Board of Directors in their meeting held on December 17, 2014 have approved the Scheme of Amalgamation of Capri Global Distribution Company Private Limited, Capri Global Finance Private Limited, Capri Global Investment Advisors Private Limited and Capri Global Research Private Limited with Capri Global Capital Limited and their respective shareholders and creditors under sections 391 to 394. The Appointed Date for the merger is April 1, 2015. The Company has filed the Application with the Hon''ble Bombay High Court and awaiting further instructions from the Hon''ble Court. The Scheme is subject to various regulatory approvals including the Bombay High Court.

11. In the opinion of the Board, the Current Assets, Loans & Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

12. Previous year figures Previous year figures have been regrouped and reclassified wherever necessary to confirm to current year''s presentation.

---

Mar 31, 2014

1. Gratuity and other post employment benefit plans (AS - 15)

The Company has an funded defined benefit obligation plan for gratuity under the Group Gratuity scheme of Life Insurance Corporation of India. The company has created plan assets by contributing to the Gratuity Fund with LIC Of India.

The following tables summarise the components of the net employee benefit expenses recongnised in the Statement of profit and loss, and the fund status and amount recognised in the balance sheet for the gratuity benefit plan.

2. Segment Reporting (AS - 17) The Company operates mainly in the business segment of fund based financing activity. All other activities revolve around the main business. Further, all activities are carried out within India. As such, there are no separate reportable segments as per the provisions of AS - 17 on ''Segment Reporting''.

3. Disclosures as required by Accounting Standard (AS - 18) ''Related Party Disclosures'' in respect of transactions for the year are as under A) List of Related Parties over which control exists

Sr. No. Name of the Related Party Relationship

i SUBSIDIARIES

1 Capri Global Securities Private Limited Wholly owned Subsidiary

2 Capri Global Investment Advisors Private Limited Wholly owned Subsidiary

3 Capri Global Distribution Company Private Limited Wholly owned Subsidiary

4 Capri Global Finance Private Limited Wholly owned Subsidiary

5 Capri Global Research Private Limited Wholly owned Subsidiary

6 Capri Global Resources Private Limited Wholly owned Subsidiary

B) Enterprises over which Management and/or their relatives have control

1 Money Matters Infrastructure Private Limited

2 Parijat Properties Pvt Ltd

3 Dreamwork Media & Entertainment Pvt Ltd

C) Key Management Personnel

1 Mr. P. H. Ravikumar Managing Director (Upto 24-January-2014)

2 Mr. Rajesh Sharma Director (Chairman & Managing Director Upto 11-April-2013)

3 Mr. Quinton E Primo III Chairman (From 02-August-2013)

4 Mr. Sunil Kapoor Executive Director (From 24-January-2014)

4. Leases (AS - 19)

Operating Leases

The company has taken office premises & guest houses under operating lease and the leases are of cancellable/non-cancellable in nature. The lease arrangement are normally renewable on expiry of the lease period at the option of the lessor/lessee ranging from 3 to 5 years. Some of the lease agreements having lease period of five years have a lock in period of three years which are non-cancellable in nature. After the expiry of the lock in period, the lease agreement becomes cancellable in nature at the option of the lessor or the lessee by giving 1-3 months notice to the either party. There are no restrictions imposed by the lease agreement. There is no contingent rent in the lease agreement. There is escalation clause in some lease agreements. The future minimum lease payments in respect of the non cancellable lease are as follows :

5. Impairment of Assets (AS - 28)

The Company believes that no impairment of assets arises during the year as per Accounting Standards-28 "Impairment of Assets".

6. Contingent Liabilities

On account of bank guarantee to the Central Bureau of Investigation against release of cash Rs. 12.12 Lacs (31 March 2013 : Rs. 12.12 Lacs)

7. Capital and other commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 20.42 Lacs (31 March 2013 Rs. 126.05 Lacs)

b) Other Commitments

Pending disbursements of sanctioned loans Rs. 5776.56 Lacs (31 March 2013, Rs. 1,312.73 Lacs)

8. Expenditure in Foreign Currency

Foreign Travelling Expenses Rs. 14.86 Lacs (31 March 2013 : Rs. 18.38 Lacs)

Director Sitting Fees Rs. 0.60 Lacs (31 March 2013 : Rs. Nil)

Capital Expenditure (Royalty) Rs. 605.79 Lacs (31 March 2013 : Rs. Nil)

9. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006 Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro, Small and Medium Enterprises Development (''MSMED'') Act, 2006". Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid /payable are required to be furnished.

10. The Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, require the Company to make provision for standard assets at 0.25 percent of the Standard Assets. However, as a prudent practice from FY 2012-13, the Company has adopted to make provision of 0.50. Consequently, during the current financial year 2013-14, the profits of the company are lower by Rs. 67.54 Lacs.

During the year, the Company, has decided to provide an additional Floating provision on standard asset of 0.25 percent which will be available for adjustment towards provision for Substandard Assets. Accordingly an amount of Rs. 174.04 Lacs is provided as a Floating Provision, which has been adjusted towards the Provision for Substandard Assets, thereby having no impact on Profits for the year.

11. The 5th warrant conversion period in relation to 36,83,092 outstanding warrants of the Company commenced from 27th December, 2013 and ended on 26th March, 2014. Warrant Conversion price was fixed at Rs. 109.62 (including premium of Rs. 99.62). Warrantholders holding 27,408 warrants opted for conversion to equity shares and the Company received an amount of Rs. 30.04 Lacs from the warrantholders who have exercised their option to convert warrants into equity shares. The shares were alloted on 2nd April, 2014. The amount received has not been utilized for any purpose as at the end of the year. The balance 36,55,684 warrants have lapsed.

12. Utilization of money received on conversion of warrants

During the year ended 31 March, 2014 the company raised Rs. 30.04 Lacs towards conversion of 27,408 warrants into equity shares. As on 31 March 2014, the said proceeds were not utilized & were parked in a separate bank account.

13. In the opinion of the Board, the Current Assets, Loans & Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

14. Previous year figures

Previous year figures have been regrouped and reclassified wherever necessary to confirm to current year''s presentation.

---

Mar 31, 2013

1. Gratuity and other post employment benefit plans (AS - 15)

The Company has a funded defined benefit obligation plan for gratuity under the Group Gratuity scheme of Life Insurance Corporation of India. The Company has created plan assets by contributing to the Gratuity Fund with LIC Of India.

The following tables summarise the components of the net employee benefit expenses recognised in the Statement of Profit and Loss, and the fund status and amount recognised in the Balance Sheet for the gratuity benefit plan.

2. Segment Reporting (AS - 17)

The Company operates mainly in the business segment of fund based financing activity. All other activities revolve around the main business. Further, all activities are carried out within India. As such, there are no separate reportable segments as per the provisions of AS - 17 on ‘Segment Reporting''.

3. Leases (AS - 19) Operating Leases:

The company has taken office premises, guest houses & motor car under operating lease and the leases are of cancellable/ non-cancellable in nature. The lease arrangement are normally renewable on expiry of the lease period at the option of the lessor/lessee ranging from 3 to 5 years. Some of the lease agreements having lease period of five years have a lock in period of three years which are non-cancellable in nature. After the expiry of the lock in period, the lease agreement becomes cancellable in nature at the option of the lessor or the lessee by giving 1-3 months notice to the either party. There are no restrictions imposed by the lease agreement. There is no contingent rent in the lease agreement. There is escalation clause in some lease agreements. The future minimum lease payments in respect of the non cancellable leases are as follows:

4. Impairment of Assets (AS - 28)

The Company believes that no impairment of assets arises during the year as per Accounting Standards-28 "Impairment of Assets".

5. Contingent Liabilities

On account of bank guarantee to the Central Bureau of Investigation against release of cash Rs. 12.12 Lacs (31 March 2012 : Rs. 12.12 Lacs)

6. Capital and other commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 126.05 Lacs (31 March 2012 Rs. 77.32 Lacs)

b) Other Commitments

Pending disbursements of sanctioned loans Rs. 1,312.73 Lacs (31March 2012, Rs. 3,500 Lacs)

7. Expenditure in Foreign Currency

Foreign Travelling Expenses Rs. 18.38 Lacs (31 March 2012 : Rs. 0.25 Lacs)

8. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro, Small and Medium Enterprises Development (‘MSMED'') Act, 2006". Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid/payable are required to be furnished.

9. As per the Non - Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, the Company is required to make provision for standard assets at 0.25 percent of the Standard Assets. The Company has accordingly made provision of 0.25 percent on its standard assets as at 31st March, 2012. However, in light of the current market environment, considering credit and market risks, as a prudent practice, the Company has decided to adopt an additional provisioning whereby in addition to standard provisioning of 0.25 percent, the Company will make an additional provision of 0.25 percent. Consequently, the profits of the current year are lower by Rs. 106.50 Lacs.

10. The 4th warrant conversion period in relation to 3,726,086 outstanding warrants of the Company commenced from 27th December, 2012 and ended on 26th March, 2013. Warrant Conversion price was fixed at Rs. 106.07 (including premium of Rs. 96.07). Warrantholders holding 42,994 warrants opted for conversion to equity shares and the Company received an amount of Rs. 45.60 Lacs from the warrantholders who have exercised their option to convert warrants into equity shares. The shares were alloted on 5th April, 2013. The amount received has not been utilized for any purpose as at the end of the year. As on the end of the year 3,683,092 warrants are outstanding.

11. Utilization of money received on conversion of warrants

During the year ended 31st March, 2013 the company raised Rs. 45.60 Lacs towards conversion of 42,994 warrants into equity shares. As on 31st March, 2013, the said proceeds were not utilized & were parked in a separate bank account.

12. In the opinion of the Board, the Current Assets, Loans & Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

13. Previous year figures

Previous year figures have been regrouped and reclassified wherever necessary to confirm to current year''s presentation.

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Mar 31, 2012

1.1 Terms/Rights attached to equity shares:

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

During the year ended 31st March 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs 1.00/- (31 March 2011 Rs 1.25/-)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be proportional to the number of equity shares held by the shareholders.

There are 37,26,086 (31 March 2011: 37,34,487)warrants outstanding as at the end of the year. The warrant holders at their option can convert the warrants into equity shares in the ratio of 1:1 as per the Warrant Exercise Price. The 4th conversion period of warrants will begin from December 27, 2012 and will close on March 26, 2013 and 5th Conversion period of warrants will begin from December 27, 2013 and will close on March 26, 2014. Warrant Exercise Price shall be calculated as 20% discount to the Market Price subject to a minimum of Rs 10/- and the Market Price shall be the higher of the following:

(a) The average price of the Equity shares of the Company computed as the average of the weekly high and low of the closing prices of the shares of the Company during the six months immediately preceding the month in which the exercise price is announced; or

(b) Average of the weekly high and low of the closing prices of the related shares during the two weeks preceding the month in which the exercise price is announced.

Note:

2(i) Cash & foreign currency seized by Central Bureau of Investigation in the previous year has been released during the current year.

2(ii) Fixed Deposits of Rs 29.50 Lacs (31 March 2011: Rs NIL) have been pledged as security for overdraft facility from bank.

3. Retirement Benefit - Gratuity (AS -15)

From the current financial year, the Company has funded (upto previous year unfunded) Defined Benefit Obligation Plan for gratuity to its employees, who have completed five years or more of service, under the group gratuity scheme of Life Insurance Corporation (LIC) of India. The Company has created planned assets by contribution to the gratuity fund with LIC of India.

Consequent to the adoption of revised AS- 15 'Employee Benefits' issued under Companies (Accounting Standards) Amendment Rules, 2008, the following disclosures have been made as required by the standard.

Since the enterprise used the intrinsic value method the impact on the reported net profit and earnings per share by applying the fair value based method is as follows:

In March 2005, ICAI has issued a guidance note on "Accounting for Employees Share Based Payments" applicable to employee based share plan, the grant date in respect of which falls on or after April 1, 2005. The said guidance note requires that the preformed disclosures of the impact of the fair value method of accounting of employee stock compensation accounting in the financial statements applying the fair value based method defined in the said guidance note. The impact on the reported net profit and earnings per share would be as follows;

4. Segment Reporting (AS - 17)

Basis of Preparation

Information is given in accordance with the requirements of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India. Revenues and expenses directly attributable to the Segments are allocated to the respective segments. Those revenues and expenses which cannot be directly allocated to the Segments are apportioned on a reasonable basis. Segment Capital employed represents the net assets in that Segment. It excludes Capital reserve and tax related assets.

Business Segments

The Company's business is organized and management reviews the performance based on the business segments. The Company's business may be divided into three major Segments.

(A) Investment & Trading in Securities

(B) Financing Activity and

(C) Financial Advisory Services Geographical Segments

The Company's operations are solely in one Geographic segment namely 'Within India' and hence no separate information for Geographic segment wise disclosure is required.

5. Leases (AS - 19)

Operating Leases:

The Company has taken office premises, guest houses & motor car under operating lease and the leases are of cancellable/ non-cancellable in nature. The lease arrangement are normally renewable on expiry of the lease period at the option of the lessor/ lessee ranging from 3 to 5 years. Some of the lease agreements having lease period of five years have a lock-in period of three years which are non-cancellable in nature. After the expiry of the lock-in period, the lease agreement becomes cancellable in nature at the option of the lessor or the lessee by giving 1-3 months notice to the either party. There are no restrictions imposed by the lease agreement. There is no contingent rent in the lease agreement. There is escalation clause in some lease agreements. The future minimum lease payments in respect of the non cancellable lease are as follows :

The lease payments recognized in the Statement of Profit & Loss in respect of non-cancellable lease for the year are Rs 8.75 Lacs (31 March 2011: Rs 38.98 Lacs).

The lease payments recognized in the Statement of Profit & Loss in respect of cancellable lease for the year are Rs 293.67 Lacs (31 March 2011: Rs 269.78 Lacs).

The Company had sub-leased the office premises under operating lease in the previous year.

The lease income recognized in the Statement of Profit & Loss for the year is Rs Nil (31 March 2011: Rs 46.37 Lacs).

6. The Company believes that no impairment of assets arises during the year as per Accounting Standards - 28 "Impairment of Assets.

7. Contingent Liabilities

On account of bank guarantee to the Central Bureau of Investigation against release of cash Rs 12.12 Lacs (31 March 2011: Nil)

8. (a) Foreign Currency Earnings Rs Nil (31 March 2011: Nil)

(b) Foreign Currency Expenditure

Professional Fees Rs Nil (31 March 2011: Rs 70.78 Lacs)

Travelling Expenses Rs Nil (31 March 2011: Rs 5.38 Lacs)

9. Capital and other commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs 77.32 Lacs (31 March 2011 Rs 78.61 Lacs)

b) Other Commitments Rs NIL (31 March 2011 Rs NIL)

10. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

The Company has not transacted with any Micro and Small Enterprises as specified under MSMED Act, 2006. Hence, the disclosure requirement under Section 22 of the said act is not applicable.

11. (a) Additional Disclosures as required in terms of Paragraph 13 of Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 issued by Reserve Bank of India.

12. During the year, the Company has proposed dividend of Rs 1/- per share to Equity Shareholders.

13. The 3rd (third) warrant conversion period in relation to 37,34,487 outstanding warrants of the Company commenced from 27th December, 2011 and ended on 26th March, 2012. Warrant Conversion price was fixed at Rs 77.54 (including premium of Rs 67.54). Warrant holders holding 8401 warrants opted for conversion to equity shares and the Company received an amount of Rs 6.51 Lacs from the warrant holders who have exercised their option to convert warrants into equity shares. The shares were allotted on March 30, 2012. The said proceeds were not utilized & were parked in a separate bank account. As on the end of the year, 37,26,086 warrants are outstanding.

14. In the opinion of the Board of Directors, the Current Assets and the Non - Current Assets have a value on realization in the normal course of business at least equal to the value at which they are stated in the Balance Sheet.

15. Previous year figures

Till the year ended 31 March, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31 March, 2012 the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification. Except accounting for dividend on investments in subsidiaries, the adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.

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Mar 31, 2011

1. Contingent Liability not provided for Rs. Nil. (Previous year Rs. Nil.)

3. In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the normal course of business at least equal to the value at which they are stated in the Balance Sheet.

4. Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006". Accordingly, no disclosures relating to amounts unpaid asatthe yearend together with interest paid/payable are required to befurnished.

5. The Company had issued 18,000,400 equity sharesonright basisatthe rateofRs. 10/- each along with 18,000,400 Detachable Convertible Warrants on March 27,2009. Outofthese Warrants, 750,705 warrants have beenconvertedintoequityshares of Rs. 10/- each @ a premium of Rs. 97/47 on January 02, 2010. During the current year, the promoters and promoter group have surrendered their warrants numbering 13,515,208, hence only 3,734,487 warrants are outstanding for conversion as on March 31, 2011. During the year, the second conversion periodof warrants was opened during December 27, 2010 to March 26,2011.None of the warrant holders exercised the irright for conversion.

6. Equity Share Capital.

During the year, the Company has issued and allotted 7,117,153 equity shares of Rs. 10/- each fully paid-up at a premium of Rs. 615/25 per share to QIBs as defined in Regulation 2(1)(zd) of SEBI (ICDR) Regulations, 2009 pursuant to Chapter VIII on private placement basis. Out of the above 8,79,648 equity shares were issued and allotted to Domestic QIBs, aggregating to Rs. 549,999,912/- (Rupees Fifty Four Crores Ninety Nine Lacs Ninety Nine Thousand Nine Hundred and Twelve Only) and 6,237,505 equity shares of Rs. 10/- each fully paid-up were issued and allotted to Foreign Institutional Investors in QIP under Schedule 2 of Regulation 5(2) of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2,000 i.e; Purchase/sale of shares and/or convertible debentures of an Indian company by a registered Foreign Institutional Investor under Portfolio Investment Scheme, and received an amount aggregating to Rs. 3,900,000,001/25 (Rupees Three Hundred Ninety Crores and One and Paise Twenty Five Only). The total amount received from Domestic and Foreign QIBisRs. 4,449,999,913/25 (Rupees Four Hundred Forty Four Crores Ninety Nine Lacs Ninety Nine Thousands Nine Hundred Thirteen and Twenty Five Paise Only). All the above shares rank pari-pasu with the existing equity shares.

7. ShareIssue expenses.

Share Issue expenses of Rs. 157,750,879/- incurred for raising the above equity funds has been debited to Share Premium Account.

8. (a) Investigations by Central Bureau of Investigation (CBI) – EOW Wing, Mumbai.

During the year on November 22, 2010, the CBI conducted investigation and filed FIRs and one Charge-sheet under IPC and Prevention of Corruption Act against 3 officials of the Company/Subsidiary including the Director of the Company/Subsidiary and officials of Banks & financial institutions, etc. for alleged offences under section 120-B of the

IPC and other relevant Sections of Prevention of Corruption Act, alleging that the alleged Officials/Directors facilitated and/or mediatedingivinggratification moneytoOfficialsofbanks and financial institutions,etc.for obtaining pecuniary gain to themselves and to the business of the Company. Prima-facie, the Charge-sheet filed by CBI does not allege about any financial impropriety or any other financial irregularities being committed by the officials in the Company. The management does not perceive any adjustment is required to be made in the books of accounts of the Company pursuant to the investigations being carried out by the CBI.

(b) Documents seized by the Central Bureau of Investigation, Mumbai Pursuant to the investigations conducted by CBI some of the documents, records, computer hard disks, vouchers, cash currencies, etc in the possession of the Company were seized by the CBI. The Company has obtained duplicate records/documents wherever available to them, and is in the process of obtaining necessary evidences for the remaining unavailable records. In cases where the required evidences for the transactions recorded in the books of accounts were not available for verification, the Statutory Auditors have relied upon the representation and certification of theManagement. The Balances of such account sare subject to reconciliation and confirmation.

9. Termination of Joint Venture in Capstone Capital Services Private Ltd. The Company (MMFSL) had entered into shareholders agreement on December 16, 2009 with Milestone Capital Advisors Ltd. for Joint Venture in the shareholding ratio of 50:50 in Capstone Capital Services Private Ltd. As per the termination of the shareholders agreement dated March 01, 2011, the said joint venture in Capstone Capital Services Private Ltd. has been terminated mutually with effect from February 5, 2011 and the 50% shareholding (comprising of 499,999 equity shares of Rs. 10/- each fully paid) of MMFSL in the Joint Venture is bought back by Milestone Capital Advisors Ltd through its associate company at an agreed consideration of Rs. 5,000/-. On execution of the agreement with effect from termination date, each party for itself and each of its respective successors and assigns has hereby fully and unconditionally released and forever discharged the other parties and its successors and assigns of and from any and all actions, cause of actions, suits, debts, obligations, claims, liabilities and demands whatsoever that they had or may had under the terms of the shareholders agreement. The effect of the above agreement has been given in the books of account of the Company. Accordingly, an amount of Rs.2,236,111/- has been paid to the said company towards Companies share of loss upto the date of termination as perthetermination agreement.

10. Reimbursement of service tax has not been charged to Profit & Loss Account on account of Cenvat Credite ligibility.

11. Interest income on Fixed Deposit is shown net of Interest paid on Overdraft Facility.

12. The exchange difference amounting to Rs. 9,295/- (net loss) (Previous year – Rs. 32,404/- (net loss) arisingon account of foreign currency transactions has been accounted in the Profit and Loss account in accordance with Accounting Standard – AS 11 – "Accounting for the effects of changes inforeign exchange rates".

13. Retirement Benefit - Gratuity

The company has an unfundeddefined benefit gratuityplan. Every employee who hascompleted 5years or more of service is eligible for a gratuity on departure at 15 days salary (last drawn salary) per each completed year of service.

Consequent to the adoption of revised AS-15 "Employee Benefits" issued under Companies (Accounting Standards) Amendment Rules2008, the following disclosures have been made as required by the standard.

14. Segment Reporting Basis of Preparation:

Information is given in accordance with the requirements of Accounting Standard 17- "Segment Reporting" issued by the InstituteofChartered AccountantsofIndia. Revenues and expenses directlyattributabletothe Segments areallocatedtothe respectivesegments. Those revenues andexpenseswhich cannotbedirectly allocatedtothe Segments are apportionedona reasonable basis. Segment Capital employed represents the net assets in that Segment. It excludes Capital reserve and tax related assets.

Business Segments:

The Companys business is organized and management reviews the performance based on the business segments. The Companysbusinessmaybedividedinto three major Segments.

(A) Income from Financial Advisory Services

(B) Financing Activity And

(C) Income from Investment & Trading in Securities Geographical Segments: The Companys operations are solely in one Geographic segment namely "Within India" and hence no separate information for Geographics egmentwise disclosure is required.

15. Disclosures as required by Accounting Standard (AS-18) Related Party Disclosures in respect of transactions for the year are asunder:

A) List of Related Parties over which control exists:

Sr No. Nameofthe RelatedParty Relationship

i SUBSIDIARIES

1 Money Matters Securities Private Limited Wholly owned Sub sidiary

2 Money Matters Investment Advisors PrivateLimited Wholly owned Sub sidiary

3 Money Matters Distribution Company Private Limited Wholly owned Subsidiary

4 Money Matters Capital PrivateLimited Wholly owned Subsidiary

5 Money Matters Research Private Limited Wholly owned Subsidiary

6 Money Matters Resources PrivateLimited Wholly owned Subsidiary

ii STEP DOWN FOREIGN SUBSIDIARY (INDIRECT HOLDING)

1 Money Matters Advisory Pte Ltd, Singapore Wholly owned Subsidiary of

Money Matters Research Private Limited

B) Joint Ventures

1 Capstone Capital Services Private Limited (Upto February 05,2011)

C) Enterprisesover whichManagement and/or their relativeshave control

1 Money Matters Advisory Services Limited

2 Money Matters Infrastructure Private Limited

3 Parijat Properties Pvt Ltd

D) Key Management Personnel

1 Mr.Rajesh Sharma Chairman & Managing Director

2 Mr. Pramod Kasat Whole Time Director

(from April 16, 2010 to March 14, 2011)

21. The Company believes that no impairment of assets arises during the year as per the recommendations of Accounting Standard - 28 Impairment of Assets, issued by the Institute of Chartered Accountants of India.

25. Additional Information pursuant to the provisions of paragraphs 3, 4C & 4D of part II of Schedule VI to The Companies Act, 1956 (to the extent applicable) are as under:

(a) Earningin Foreign Currency

Advisory Fees : Rs.Nil/- (Previous YearRs.36,62,109/-)

(b) Expenditure in Foreign Currency

Professional Fees : Rs.70,77,965/-(Previous YearRs.NIL)

Travelling expenses : Rs.5,37,881/- (Previous YearRs.1,01,768/-)

26. Previous year figures have been regrouped and reclassified wherever necessary to confirm to current years presentation.

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Mar 31, 2010

1. Contingent Liability not provided for Nil. (Previous year Rs. Nil.)

2. In the opinion, of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the normal course of business at least equal to the value at which they are stated in the Balance Sheet.

3. Retirement Benefit - Gratuity

The company has an unfunded defned benefit gratuity plan. Every employee who has completed 5 years or more of service is eligible for a gratuity on departure at 15 days salary (last drawn salary) per each completed year of service.

Consequent to the adoption of revised AS- 15 Employee Benefits issued under Companies (Accounting Standards) Amendment Rules 2008, the following disclosures have been made as required by the standard.

The following tables summarise the componesnts of the net employee beneifit expenses reconginsed in the profit and loss account, and the fund status and amount recognised in the balance sheet for the gratuity benefit plan.

Profit and Loss Account

Note: The Company has introduced the Defned Beneft Plan for the first time during the Year. No Provisions for gratuity were recognized in the books in the Previous Years. Thus the Company has recognized the liability on account of Gratuity arising in the previous years as Past Service Cost and has included it in the net expense recognized during the year as these benefits have alreay vested in accordance with Para 94 to 99 of AS 15.Further the figures for the previous years could not be provided as the Plan was introduced for the first time during the year.

4.Segment Reporting

Basis of Preparation:

Information is given in accordance with the requirements of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India. Revenues and expenses directly attributable to the Segments are allocated to the respective segments. Those revenues and expenses which cannot be directly allocated to the Segments are apportioned on a reasonable basis. Segment Capital employed represents the net assets in that Segment. It excludes Capital reserve and tax related assets.

Business Segments:

The Company’s business is organized and management reviews the performance based on the business segments. The Companys business may be divided into three major Segments.

(A) Income from Financial Advisory Services

(B) Financing Activity. And

(C) Income from Investment & Trading in Securities

Geographical Segments: The Company’s operations are solely in one Geographic segment namely “Within India” and hence no separate information for Geographic segment wise disclosure is required.

5. Disclosures as required by Accounting Standard (AS-18) Related Party Disclosures in respect of transactions for the year are as under:

A. List of Related Parties over which control exists:

Sr No. Name of the Related Party Relationship

1 Money Matters Securities Private Limited Wholly owned Subsidiary

2 Money Matters Investment Advisors Private Limited Wholly owned Subsidiary

3 Money Matters Distribution Company Private Limited Wholly owned Subsidiary

4 Money Matters Capital Private Limited Wholly owned Subsidiary

5 Money Matters Research Private Limited Wholly owned Subsidiary (wef January 22, 2010)

6 Money Matters Resources Private Limited Wholly owned Subsidiary (wef March 12, 2010)

B. Other related parties with whom transactions have taken place during the year: A: Key Management Personnel

1 Mr. Rajesh Sharma Chairman & Managing Director

2 Mr. Suresh Gattani Whole Time Director (till August 21, 2009)

B: Joint Ventures

1 Capstone Capital Services Private Limited

C. Enterprises over which person described in (A) above along with his relatives has control

1 Money Matters Advisory Services Limited

2 Money Matters Infrastructure Private Limited

6 Deferred Tax Liabilities/(Assets)(Net)

7. Based on the intimation received by the Company, none of the suppliers have confrmed to be registered under “The Micro, Small and Medium Enterprises Development (‘MSMED’) Act, 2006”. Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid /payable are required to be furnished.

8. The exchange difference amounting to Rs. 32,404/- (net loss) (Previous year - Rs. Nil) arising on account of foreign currency transactions has been accounted in the Profit and Loss account in accordance with Accounting Standard - AS 11 - Accounting for the effects of changes in foreign exchange rates.

This being the frst period of Joint Venture previous years figures are not given.

Capstone Capital Services Private Limited is a Joint Venture Company of Money Matters Financial Services Limited and Milestone Capital Advisors Private Limited as per the shareholders agreement dated December 16, 2009 and amendment thereof executed by and amongst Money Matters Financial Services Limited and Milestone Capital Advisors Private Limited and Capstone Capital Services Private Limited.

Note: -

As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to the directors is not ascertainable and, therefore, not included above.

9. Information Pursuant to the Provisions of Paragraphs 3 of Part II of Schedule VI to the Companies Act,1956 is given below:-

10. Investments

11 (b) Disclosures in terms of Paragraph 10 of Non Banking Financial ( Non- Deposit Accepting or Holding) Companies Prudential Norms(Reserve Bank) Directions, 2007

12. The Company believes that no impairment of assets arises during the year as per the recommendations of Accounting Standard - 28 Impairment of Assets, issued by the Institute of Chartered Accountants of India.

13. Additional Information pursuant to the provisions of paragraphs 3, 4C & 4D of part II of Schedule VI to The Companies Act, 1956 (to the extent applicable) are as under:

(a) Earning in Foreign Currency : Rs. 3,662,109/- (Previous Year Rs. 4,054,765/-)

(b) Expenditure in Foreign Currency : Rs. 101,768/- (Previous Year Rs. Nil)

14. The Company had issued 18,000,400 equity shares on right basis @ Rs. 10 each along with 18,000,400 Detachable Convertible Warrants on March 27, 2009 in the previous year. Out of these Warrants, 750,705 warrants have been converted into equity shares of Rs. 10/- each @ a premium of 97.47 on January 02, 2010. As at the year end (as on March 31, 2010) 17,249,695 warrants are outstanding.

15. Prior period comparatives:

Previous year figures have been regrouped and reclassifed wherever necessary to confirm to current years presentation.

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Mar 31, 2009

1. Contingent Liability not provided for Rs. Nil.(Previous year Rs. Nil).

2. In the opinion, of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the normal course of business at least equal to the value at which they are stated in the Balance Sheet.

3. In accordance with section 45IC of Reserve Bank of India (Amendment) Act, 1997, amount not less than Twenty percent of the profit after taxation in the current year has been transferred to Statutory Reserve.

4. The gratuity provision has not been made, as the provisions of the Act, are not applicable to the Company for the Current year.

5. Deferred Tax

i) Deferred Tax Assets and Liabilities have been considered in accordance with Accounting Standard No.22, issued by the Institute of Chartered Accountants of India.

6. Segment Reporting

Information is given in accordance with the requirements of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India. The Companys business is organized and management reviews the performance based on the business segments as mentioned below:

The Companys business may be divided into three major Segments

A) Income from Trading in Debt Securities

B) Financing Activity. And

C) Income from Financial Advisory Services

The Companys business is primarily concentrated in India, so, the Company is considered to operate only in the domestic segment.

Revenues and expenses directly attributable to the Segments are allocated to the respective segments. Those revenues and expenses which cannot be directly allocated to the Segments are apportioned on a reasonable basis.

7. Related Party Transactions

The Company has promoted wholly owned subsidiaries Money Matters Investment Advisors Private Limited and Money Matters Distribution Company Private Limited during the year. The transactions with the other related parties are as under.

Disclosures as required by Accounting Standard (AS-18) Related Party Disclosures in respect of transactions for the year are as under:

A. List of Related Parties over which control exists:

Sl. No. Name of the Related Party Relationship

1. Money Matters Securities Private Limited Wholly owned Subsidiary wef 28/03/2008

2. Money Matters Investment Advisors Private Limited Wholly owned Subsidiary wef 15/04/2008

3. Money Matters Distribution Company Private Limited Wholly owned Subsidiary wef 18/11/2008

B. List of related parties with whom transactions were carried out during the year and description of relationship:

Subsidiaries:

1. Money Matters Securities Private Limited

2. Money Matters Investment Advisors Private Limited

3. Money Matters Distribution Company Private Limited

Key Management Personnel and their Relatives:

1. Mr.Rajesh Sharma Chairman & Managing Director w.e.f. 24/01/2009

2. Mr. Suresh Gattani Whole Time Director w.e.f. 08/09/2007

Other Related Parties

1. Money Matters Advisory Services Limited

2. Money Matters India Private Limited

3. Money Matters Properties Private Limited

4. Money Matters Infrastructure Private Limited

5. Dnyaneshwar Trading & Investments Private Limited

6. Shri Rangji Investments Private Limited

8. Change of Name

During the year, the name of the Company has been changed from Dover Securities Limited to Money Matters Financial Services Limited w.e.f October 6, 2008.

9. Earning Per Share

The basic earning per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting year. Diluted earnings per share are computed using the weighted average number of equity shares and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value.

10. Additional Information pursuant to the provisions of paragraphs 3, 4C & 4D of part II of Schedule VI to The Companies Act, 1956 (to the extent applicable) are as under:

a) Earning in Foreign Currency : Rs. 4,054,765 Previous Year (Nil)

b) Expenditure in Foreign Currency : Rs. Nil Previous Year (Nil)

11. Utilisation of Proceeds from Rights Issue:

During the year the Company has raised Rs. 1800.04 Lacs through issue of 1,80,00,400 equity shares of Rs. 10/- each alongwith detachable warrants for cash to the equity shareholders of Company on rights basis. The allottment of Right Shares along with Detachable warrants was completed on March 27, 2009- As at March 31, 2009 the entire proceeds of the Rights Issue was lying with the Bankers to the Issue and is unutilized.

12. Prior period comparatives:

Previous year figures have been regrouped and reclassified wherever necessary to confirm to current years presentation.