Notes to Accounts of CFSL Ltd.

Mar 31, 2024

2.10 Provisions and contingent liabilities

The Company creates a provision when there is present obligation as a result of a past event that probably
requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that
may, but probably will not, require an outflow of resources. The Company also discloses present obligations
for which a reliable estimate cannot be made. When there is a possible obligation or a present obligation in
respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

2.11 Foreign currency translation

There is no foreign exchange transaction during the year.

2.12 Fair value measurement

The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.

Fair value is the price that would be received against sale of an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place in the
accessible principal market or the most advantageous accessible market as applicable.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximising the use of relevant observable inputs and minimising the
use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy into Level I, Level II and Level III based on the lowest level input
that is significant to the fair value measurement as a whole. For a detailed information on the fair value
hierarchy, refer note no. 22 and 48.

For assets and liabilities that are fair valued in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of
each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value
hierarchy.

2.13 Unless specifically stated to be otherwise, these policies are consistently followed.

All

financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is insignificant to the fair value measurements as a whole.

Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : valuation techniques for which the lowest level inputs that has a significant effect on the fair value measurement are
observable, either directly or indirectly.

Level 3 : valuation techniques for which the lowest level input which has a significant effect on fair value measurement is not
based on observable market data.

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities, other than those
whose fair values are close approximations of their carrying values.

For cash and cash equivalents, trade receivables, other receivables, short term borrowing, trade payables and other current
financial liabilities the management assessed that their fair value is approximate their carrying amounts largely due to the
short-term maturities of these instruments.

The fair values of the Company’s long-term interest free security deposits are determined by applying discounted cash flows
(‘DCF’) method, using discount rate that reflects the market borrowing rate as at the end of the reporting period. They are
classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty
credit risk.

28. In the opinion of the Board, all Current Assets, Loans & Advances (Except where indicated otherwise) collectively
have a value on realisation in the ordinary course of business at least equal to the amount at which they are
stated.

29. Balance confirmation certificates from parties, as appearing in the Balance Sheet under the heads ‘Current
Liabilities’ on the liabilities side and ‘Loans & Advances’ on the assets side of the Balance Sheet are subject
to confirmations of balances to the extent received have been reconciled/under reconciliation.

30. Provision regarding Provident fund and Gratuity Act, 1972 are not applicable to the company during the year
under reference.

31. The company is engaged in the business of non-banking financial activity. Since all the activities relate to main
activity, in the opinion of the management, there is only one business segment in terms of AS-108 on segment
issued by ICAI.

32. Related Party Disclosures:

In accordance with the AS-24 on Related Party Disclosure, where control exists and where key management
personnel are able to exercise significant influence and, where transactions have taken place during the year,
along with description of relationship as identified, are given below:-

In terms of our report of even date annexed

For STRG & ASSOCIATES For and on behalf of the Board

CHARTERED ACCOUNTANTS
FRN : 014826N

sd/- sd/- sd/-

Place : Delhi Rakesh Gupta Ashwani Kumar Gupta Ashish Bhala

Date: 24/05/2024 (Partner) (MG. Director) (Director)

UDIN : 24094040BKAOII1268 M.No. : 094040 DIN : 00348616 DIN : 00009996

sd/- sd/-

Prakash Chand Sharma Ruchi

(CFO) (Company Secretary)

PAN-AXHPS1665D PAN-DICPR4232N

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Mar 31, 2015

1. SHARE CAPITAL

a) The company has only one class of equity shares having a par value of Rs.2/-. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meetings of shareholders.

b) Following Shareholders hold equity shares more than 5% of the total equity shares of the company at the end of the period :

c) Bonus Shares issued during the last 5 Years:-

The company has not issued any bonus shares during the period of last 5 years

AS AT AS AT 31.03.2015 31.03.2014 (Rs.In Lacs) (Rs.In Lacs)

2. Contingent Liabilities not provided for (excluding matters separately dealt with in other notes)

a) Counter guarantees issued to Bankers in NIL NIL respect of guarantees issued by them

b) Guarantees issued on behalf of Ltd. Co's NIL NIL

3. In the opinion of the Board, all Current Assets, Loans & Advances (Except where indicated otherwise) collectively have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

4. Balance confirmation certificates from parties, as appearing in the Balance Sheet under the heads 'Current Liabilities' on the liabilities side and 'Loans & Advances' on the assets side of the Balance Sheet are subject to confirmations of balances to the extent received have been reconciled/under reconciliation.

5. Depreciation and Amortization on tangible and intangible fixed assets: the Company was hitherto charging depreciation on Written Down Value (WDV) at the rates provided in Schedule XIV of the Companies Act, 1956. In the current year, the Company has reassessed the useful life of assets, and adopted the useful life as provided in Schedule II of the Companies Act, 2013.

Consequent to change of useful life as above, an amount of Rs.5493/- representing WDV of those assets whose useful life had already expired as on 1 st April, 2014 has been adjusted against the Surplus / Deficit in Schedule 3, Reserves & Surplus.

Had there been no change, depreciation charge for the year would have been Higher by Rs.1853/- and Loss for the year would have been higher by the same amount.

6. Provision regarding Provident fund and Gratuity Act, 1972 are not applicable to the company during the year under reference.

7. The company is engaged in the business of non-banking financial activity. Since all the activities relate to main activity, in the opinion of the management, there is only one business segment in terms of AS-17 on segment reporting issued by ICAI.

8. Related Party Disclosures:

In accordance with the Accounting Standards (AS-18) on Related Party Disclosure, where control exists and where key management personnel are able to exercise significant influence and, where transactions have taken place during the year, along with description of relationship as identified, are given below:-

A. Relationships

Key Managerial Personnel : Sh. Ashwani K.Gupta

9. Tax Expense is the aggregate of current year tax and deferred tax charged to the Profit and Loss Account for the year.

a) Deferred Tax

The Company estimates the deferred tax asset using the applicable rate of taxation based on the impact of timing differences between financial statements and estimated taxable income for the current year. The movement of provision for deferred tax is given below:

10. Figures for the previous year have been regrouped or recasted wherever necessary.

11. Disclosure of details as required by revised para 13 of Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 2007, earlier para 9BB of Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.

Note 1. Companies in the same group means companies under the same Management as per section 370 (1B) of the Companies Act, 1956.

Note 2. In case of Investments in unquoted shares, it is assumed that market value is same as book value.

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Mar 31, 2014

AS AT 31.03.2014 AS AT 31.03.2013 (Rs. in Lacs)

1. Contingent Liabilities not provided for (excluding matters separately dealt with in other notes)

a) Counter guarantees issued to Bankers in NIL NIL respect of guarantees issued by them

b) Guarantees issued on behalf of Ltd. Co''s NIL NIL

2. Value of Imports on CIF Basis NIL NIL

3. Earning in Foreign Currency NIL NIL

4. Expenditure in Foreign Currency NIL NIL

5. Additional information pursuant to the provisions of para 3 and 4(c) of Part 11 ofSchedule VI of the Companies Act, 1956

6. In the opinion of the Board, all Current Assets, Loans & Advances (Except where indicated otherwise) collectively have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

7. Balance confirmation certificates from parties, as appearing in the Balance Sheet under the heads ''Current Liabilities'' on the liabilities side and ''Loans & Advances'' on the assets side of the Balance Sheet are subject to confirmations of balances to the extent received have been reconciled/under reconciliation.

8. Interest on Loans given to two parties have not been provided in the accounts as the parties are not responding accordingly. The same shall be accounted for as and when received.

9. Provision regarding Provident fund and Gratuity Act, 1972 are not applicable to the company during the year under reference.

10. The company is engaged in the business of non-banking financial activity. Since all the activities relate to main activity, in the opinion of the management, there is only one business segment in terms of AS-17 on segment reporting issued by ICAI.

11. Related Party Disclosures:

In accordance with the Accounting Standards (AS-18) on Related Party Disclosure, where control exists and where key management personnel are able to exercise significant influence and, where transactions have taken place during the year, along with description of relationship as identified, are given below:-

A. Relationships

Key Managerial Personnel : Sh. Ashwani K.Gupta a. The following transactions were carried out with related parties in the ordinary course of business:-

12. Tax Expense is the aggregate of current year tax and deferred tax charged to the Profit and Loss Account for the year.

a) Current Year Charge:

Income Tax provision of Rs. 2.12 Lacs has been made towards tax payable for the year.

13. Figures for the previous year have been regrouped or recasted wherever necessary.

14. The schedule as required in terms of paragraph 9BB of Non-Banking Financial Companies Prudential Norms (Reserve Bank) directions, 1998 as amended on 29th March, 2003 is appended as per Annexure-I to the balance sheet.

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Mar 31, 2013

1. In the opinion of the Board, all Current Assets, Loans & Advances (Except where indicated otherwise) collectively have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

2. Balance confirmation certificates from parties, as appearing in the Balance Sheet under the heads ''Current Liabilities'' on the liabilities side and ''Loans & Advances'' on the assets side of the Balance Sheet are subject to confirmations of balances to the extent received have been reconciled/under reconciliation.

3. Interest on Loans given to two parties have not been provided in the accounts as the parties are not responding accordingly. The same shall be accounted for as and when received.

4. Provision regarding Provident fund and Gratuity Act, 1972 are not applicable to thecompany during the year under reference.

5. The company is engaged in the business of non-banking financial activity. Since all the activities relate to main activity, in the opinion of the management, there is only one business segment in terms of AS-17 on segment reporting issued by ICAI.

6. RELATED PARTY DISCLOSURES

In accordance with the Accounting Standards (AS-18) on Related Party Disclosure, where control exists and where key management personnel are able to exercise significant influence and, where transactions have taken place during the year, along with description of relationship as identified, are given below:-

7. Tax Expense is the aggregate of current year tax and deferred tax charged to the Profit and Loss Account for the year.

a) Current Year Charge:

Income Tax provision of Rs. 3.00 Lacs has been made towards tax payable for the year.

b) Deferred Tax

No provision for deferred tax liability as required in AS-22 of "Taxes on Income" issued by ICAI, has been done as the taxable income and book profit have no material timing differences.

8. Figures for the previous year have been regrouped or recasted wherever necessary.

9. The schedule as required in terms of paragraph 9BB of Non-Banking Financial Companies Prudential Norms (Reserve Bank) directions, 1998 as amended on 29th March, 2003 is appended as per Annexure- I to the balance sheet.

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Mar 31, 2010

1. Contingent Liabilities—NIL

2. Estimated amount of contract remaining to be executed on Capital Account (net of advances) Rs. 22.91 lacs (previous year Rs. 22.91 lacs).

3. Receivables andpayables are in the process of confirmation.

4. In the opinion of Board of Directors the current assets, loans and advances have a realizable value equal to the amount at which they are stated.

5. Provision regarding Provident fund and Gratuity Act 1972 are not applicable to the company during the year under reference.

6. The company is engaged in the business of non-banking financial activity. Since all the activities relate to main activity, in the opinion of the management, there is only one business segment in terms of AS-17 on segment reporting issued by ICAI.

7. RELATED PARTY DISCLOSURES

Shri Ashwani K. Gupta, Managing Director of the company has been paid a remuneration of Rs.t,65,00O/-during the year.

8. The schedule as required in terms of paragraph 9BB of Non-Banking Financial Companies Pruden- tial Norms (Reserve Bank) directions, 1998 as amended on 29th March, 2003 is appended as per Annexure-I to the balance sheet.

9. Negative figures have been shown in brackets.

10. Previous years figures have been regrouped, rearranged & recast, wherever necessary.