Notes to Accounts of CSL Finance Ltd.

Mar 31, 2025

3.14 Provision, contingent liabilities and
contingent assets

a. Provisions

Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result
of a past event, 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 obligation.
Provisions are measured at the best estimate of the
expenditure required to settle the present obligation,
at the balances sheet date.

If the effect of the time value of money is material,
provisions are discounted to reflect its present value
using a current pre-tax rate that reflects the current
market assessments of the time value of money and
the risks specific to the obligation. When discounting
is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

b. Contingent Liabilities

A disclosure for a contingent liability is made when
there is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation arising as a
result of past event that probably will not require an
outflow of resources or where a reliable estimate of
the obligation cannot be made.

c. Contingent Assets

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

3.15 Investment property

Properties, held to earn rentals and/or capital
appreciation are classified as investment property
and measured at cost, including transaction costs.

Depreciation is recognised using straight line method
so as to write off the cost of the investment property less
their residual values over their useful lives specified in
Schedule II to the Companies Act, 2013. Depreciation
method is reviewed at each financial year end to
reflect the expected pattern of consumption of the
future benefits embodied in the investment property.

An investment property is derecognised upon disposal
or when the investment property is permanently
withdrawn from use and no future economic benefits
are expected from the disposal. Any gain or loss
arising on derecognition of property is recognised
in the statement of profit and loss in the same period.

3.16 Taxes

a. Current tax

Current income tax, assets and liabilities are
measured at the amount expected to be paid
to or recovered from the taxation authorities in
accordance with the tax regime inserted by the
Taxation Laws (Amendment) Act, 2019 in the
Income Tax Act, 1961 and the Income Computation
and Disclosure Standards (ICDS) enacted in India by
using tax rates and the tax laws that are enacted at
the reporting date.

Current tax relating to items recognized outside profit
or loss is recognized in correlation to the underlying
transactions either in OCI or directly in other equity.
Management periodically evaluates positions taken in
the tax returns with respect to situations in which the
applicable tax regulations are subject to interpretation
and establishes provisions where applicable.

b. Deferred tax

Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date. Deferred tax
assets and liabilities are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable
that taxable profit will be available against which
the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses
can be utilised. The carrying amount of deferred tax
assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each reporting
date and are recognised to the extent that it has
become probable that future taxable profits will allow
the deferred tax asset to be recovered. Deferred tax
assets and liabilities are measured at the tax rates
that are expected to apply in the year when the asset
is realized or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively
enacted at the reporting date.

3.17 Earning per share

Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the period.
Earnings considered in ascertaining the Company’s
earnings per share is the net profit for the period after
tax. The weighted average number of equity shares
outstanding during the period and for all periods
presented is adjusted for events, such as bonus
shares, sub-division of shares etc. that have changed
the number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable
to equity shareholders is divided by the weighted

average number of equity shares outstanding during
the period, considered for deriving basic earnings per
share and weighted average number of equity shares
that could have been issued upon conversion of all
dilutive potential equity shares.

For the purpose of calculating basic EPS, shares
allotted to ESOP trust pursuant to the employee
share based payment plan are not included in the
shares outstanding as on the reporting date till the
employees have exercised their right to obtain shares,
after fulfilling the requisite vesting conditions. Till such
time, the shares so allotted are considered as dilutive
potential equity shares for the purpose of calculating
diluted EPS.

3.18 Assets held for sale

Assets acquired by the Company under settlement
with the borrrowers or repossesed as per the powers
conferred under SARFAESI Act are classified as Non
Current Assets Held for Sale, as their carrying amount
will be recovered principally through a sale transaction
rather than through its use and a sale is considered
highly probable. They are measured at the lower of
their carrying amount and fair value less costs to sell,
as estimated by the management. An impairment
loss is recognised for any initial or subsequent write¬
down of the asset to fair value less costs to sell. A
gain is recognised for any subsequent increases in
fair value less costs to sell, but not in excess of any
cumulative impairment loss previously recognised.
These assets are not depreciated or amortised while
they are classified as held for sale.

3.19 Significant accounting judgements,
estimates and assumptions

The preparation of standalone financial statements
in conformity with Ind AS requires the management
to make use of estimates and assumptions that
affect the reported amount of assets and liabilities
and disclosure of contingent liabilities at the date of
standalone financial statements, and the reported
amount of revenues and expenses during the
reporting period. In view of the inherent uncertainties
and a level of subjectivity involved in measurement
of items, it is possible that the outcomes in the
subsequent financial years could differ from those on
which the Management’s estimates are based.

The estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying
values of assets and liabilities within the next financial
year are given below.

Fair value of financial instruments

Fair value of financial instruments is required to
be estimated for financial reporting purposes. The
Company applies appropriate valuation techniques
and inputs for fair value measurements. In estimating
the fair value of an asset or a liability, the Company
uses quoted prices and market-observable data
to the extent it is available. When the fair value of
financial assets and financial liabilities recorded in the
balance sheet cannot be measured based on quoted

prices in active markets, their fair value is measured
using valuation techniques, based on the inputs to
these models taken from observable markets where
possible, but where this is not feasible, a degree of
judgement is required in establishing fair values.
Judgements include considerations of inputs such
as liquidity risk, credit risk and volatility. Changes in
assumptions about these factors could affect the
reported fair value of financial instruments.

Effective Interest Rate (EIR) method

The Company recognizes interest income/expense
using a rate of return that represents the best estimate
of a constant rate of return over the expected life of the
loans given/taken. This estimation, by nature, requires
an element of judgement regarding the expected
behaviour and life-cycle of the instruments, as well as
expected changes to other fee income/expense that
are integral parts of the instrument.

Impairment of financial assets - Expected
Credit Loss

The measurement of impairment loss allowance for
financial asset measured at amortised cost requires
use of statistical models, significant assumptions
about future economic conditions and credit behavior

(e.g. likelihood of borrowers defaulting and resulting
losses). In estimating the cash flows expected to be
recovered from credit impaired loans, the Company
makes judgements about the borrower''s financial
situation, current status of the project, net realisable
value of securities/collateral etc. As these estimates are
based on various assumptions, actual results may vary
leading to changes to the impairment loss allowance.
Further, judgement is also made in identifying the
default and significant increase in credit risk (SICR) on
financial assets as well as for homogeneous grouping
of similar financial assets. Impairment assessment also
takes into account the data from the loan portfolio,
levels of arrears and an analysis of historical defaults.

Useful life of property, plant and equipment

The Property, Plant and Equipment are depreciated
on straight line method over their respective useful
lives. Management estimates the useful lives of these
assets as detailed in Note 3.9 above. Changes in the
expected level of usage, technological developments,
level of wear and tear could impact the economic
useful lives and the residual values of these assets,
therefore, future depreciation charges could be
revised and could have an impact on the financial
position in future years.

(b) During the financial year 2021-22 the Company had allotted the following shares:

- 1,23,38,414 equity shares of '' 10/- each, fully paid up, as bonus shares in the ratio of 1:2.

- 18,25,000 equity shares of face value '' 10/- each fully paid up on prefrential basis.

(c) During the financial year 2023-24 the Company had converted 350,000 share warrants into 3,50,000
equity shares of '' 10/- each fully paid up.

(d) Terms/rights attached to equity shares

The Company has one class of equity shares having a par value of '' 10/- per share. Each Shareholder is eligible for
one vote per share held. The shares entitle the holder to participate in dividends and in the event of liquidation,
the equity Shareholders are eligible to receive the remaining assets of the Company in proportion to their
shareholding.

34. SEGMENT INFORMATION

In the opinion of the management, there is only business segment i.e. lending, which have similar risks and
return for the purpose of Ind AS 108 ''Operating segments'', prescribed under Section 133 of the Companies Act,
2013 (''Act'') read with the relevant rules issued thereunder. Accordingly, no separate disclosure for segmental
reporting is required to be made in the financial statements or the Company.

Secondary segmentation based on geography has not been presented as the Company operates primarily in
India and the Company perceives that there is no significant difference in its risk and returns in operating from
different geographic areas within India.

All the operating revenue of the Company is from the external customers with in India only. No revenue from
transactions with a single external customer or counterparty amounted to 10% or more of the Company''s total
revenue in year ended 31 March 2025 or 31 March 2024.

35. EMPLOYEE STOCK OPTION SCHEME
(ESOS)

The ESOS Scheme titled "CSL Employee Stock options
Scheme 2016” (CSL ESOS 2016) was approved by the
shareholders on 30.09.2016. 7,00,000 options are
covered under the CSL ESOS, 2016.

During the financial year 2016-17, the Compensation
Committee in its meeting held on 03.02.2016 and

11.02.2016 has granted 4,50,000 options (aggregate)
under ESOS to eligible employees of the Company.
Each option comprises one underlying equity share.
The terms regarding vesting and exercise of options
are governed by the grant letters issued to the eligible
employees to whom options are granted. The Exercise
price has been determined at ''226/- per share for the
grant of aforesaid 450000 options.

During the financial year 2017-18, the Compensation
Committee in its meeting held on 12.05.2017 and

07.07.2017 has granted 1,15,000 options (aggregate)
under ESOS to eligible employees of the Company.
Each option comprises one underlying equity share.
The terms regarding vesting and exercise of options
are governed by the grant letters issued to the eligible
employees to whom options are granted. The Exercise
price has been determined at ''240/- per share for the
grant of aforesaid 1,15,000 options.

During the financial year 2018-19, 69,350 options
were exercised and 1,65,000 equity shares were

allotted. However, 90,000 options were lapsed during
the financial year 2018-19 and no fresh options were
granted during the year.

During the financial year 2019-20, 24,891 options
were exercised and 90,000 equity shares were
allotted. However, 12,500 options were lapsed during
the financial year 2019-20 and no fresh options were
granted during the year.

During the financial year 2020-21, 34921 options
were exercised. and 120,838 options were lapsed
during the financial year 2020-21 and no fresh
options were granted during the year.

During the financial year 2021-22, 6625 options
were exercised. During the current financial year
400000 equity shares were allotted along with the
71676 bonus shares.

During the financial year 2022-23, 6625 options
were exercised. During the current financial year
481000 equity shares were granted.

During the financial year 2023-24, 147814 options
were exercised and 152250 shares were lapsed.

During the financial year 2024-25, 19375 options
were exercised and 61875 shares were lapsed. During
the current financial year 30000 equity shares were
allotted.

39.2 Valuation methodologies of financial
instruments not measured at fair value

Below are the methodologies and assumptions
used to determine fair values for the above financial
instruments which are not recorded and measured at
fair value in the Company’s financial statements. These
fair values were calculated for disclosure purposes only.

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 bank balances, balances
other than cash and cash equivalents. Such amounts
have been classified as Level 2/Level 3 on the basis
that no adjustments have been made to the balances
in the balance sheet.

Loans and advances to customers

For loans and advances, the fair value is calculated
for SME and Wholesale portfolios separately. The

weighted average rate of lending is computed for each
segment on reporting date and the portfolio is then
adjusted for changes in these rates.

Borrowings

The fair values of financial liability held-to-maturity are
estimated using effective interest rate model based on
contractual cash flows using weighted average rate of
borrowing of the Company.

40. CREDIT RISK MANAGEMENT
40.1 Credit Risk

Credit risk is the risk that the Company will incur a loss
because its customers fail to discharge their contractual
obligations.The Company has a comprehensive
framework for monitoring credit quality of its loans
primarily based on days past due monitoring at period
end. Repayment by individual customers and portfolio
is tracked regularly and required steps for recovery are
taken through follow ups and legal recourse.

40.3 ECL Methodology

In assessing the impairment of financial loans under
Expected Credit Loss (ECL) Model, the assets have
been segmented into three stages. The three stages
reflect the general pattern of credit deterioration of a
financial instrument.

Stage 1 (0-30 days) includes loan assets that have
not had a significant increase in credit risk since
initial recognition or that have low credit risk at the
reporting date.

Stage 2 (31-90 days) includes loan assets that have
had a significant increase in credit risk since initial
recognition but that do not have objective evidence
of impairment.

Stage 3 (more than 90 days) includes loan assets
that have objective evidence of impairment at the
reporting date.

The Expected Credit Loss (ECL) is measured at
12-month ECL for Stage 1 loan assets and at lifetime
ECL for Stage 2 and Stage 3 loan assets. ECL is the
product of the Probability of Default, Exposure at
Default and Loss Given Default

(i) Definition of default

The Company considers a financial asset to be in
"default” when a financial asset is 90 days past due
and therefore Stage 3 (credit impaired) for ECL
calculations when the borrower becomes 90 days
past due on its contractual payments.

(ii) Exposure at default

EAD is based on the amounts the Company expects
to be owed at the time of default. Forward-looking
economic information (including management
overlay) is included in determining the 12-month
and lifetime PD, EAD and LGD. The assumptions
underlying the expected credit loss are monitored
and reviewed on an ongoing basis. The EAD for Stage
3 assets is the gross principal outstanding at the date
of default.

(iii) Estimations and assumptions considered
in the ECL model

The probability of default (PD’) is the likelihood that
an obligor will default on its obligations in the future.
Ind AS 109 requires a separate PD for a 12-month
duration and lifetime duration depending on the
stage allocation of the obligor.

PD describes the probability of a loan to eventually
falling in default (>90 days past due) category. To
calculate the PD, loans are classified in three stages
based on risk profile of the loan products. PD %age
is calculated for each loan product separately and is
determined by using available historical observations.

PD for stage 3 derived as 100% considering that
the default occurs as soon as the loan
becomes overdue for 90 days that
matches the definition of stage 3.

(iv) Forward looking information

PDs has been converted into forward looking PD
which incorporates the forward-looking economic
outlook. For SME and Wholesale portfolio, Real GDP
(% change p.a.) is used as the macroeconomic variable.

(v) Assessment of significant increase in
credit risk

When determining whether the credit risk has
increased significantly since initial recognition, the
Company considers both quantitative and qualitative
information and analysis based on the Company’s
historical experience, including forward-looking
information. The Company considers reasonable and
supportable information that is relevant and available
without undue cost and effort.

(vi) Write Offs/Recoveries

The gross carrying amount of a financial asset is
written off when there is no realistic prospect of further
recovery. This is generally the case when the Company
determines that the debtor does not have assets or
sources of income that could generate sufficient cash
flows to repay the amounts subject to the write-off.
However, financial assets that are written off could
still be subject to enforcement activities under the
Company’s recovery procedures, taking into account
legal advice where appropriate. Any recoveries made
are recognised in profit or loss.

(vii) Undrawn commitments

These commitments pertain to the loans sanctioned
but amount remaining undrawn. The Company
can opt not to disburse the undrawn amount at its
discretion. Therefore, no provision has been created
on these commitments.

40.7 Collateral

i) Narrative description of collateral

The Company has business interests in Wholesale and SME Retail Lending. The Company risk is mitigated by
considering the collateral from the borrowers. Thereby the Company employs a range of policies and practices
to manage the credit risk in the business. The most common is to by accepting the collateral from the borrowers.
The Company deploys internal policies on the acceptabiltiy of the specific class of collateral or credit risk
mitigation. The principal collateral types for the loans and advances includes:

- Mortgage of Immovable Property

- Pledge of the Shareholding of Promoters

- Hypothecation of Immovable Property

- Pledge of instruments through which promoters contribution is infused in the project

41. 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.

The Company manages liquidity risk by measuring and managing net funding requirments by calculating the
cummulative surplus or deficit of funds at a selected maturity dates. The Company also maintains adequate
reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash
flows, and by matching the maturity profiles of financial assets and liabilities.

42. MARKET RISK

Market the risk that the fair value or future cash flows
of financial instruments will fluctuate due to changes
in market variables such as interest rates, Foreign
Currency.

The Company''s financial statements are not exposed
to currency and price 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 sensitivity of the statement of profit and loss is the
effect of the assumed changes in interest rates on the
profit or loss for a year, based on the floating rate non¬
trading financial assets and financial liabilities held at
31 March 2025.

43. TRANSFER OF FINANCIAL ASSETS

The Company has not transferred any assets that are
derecognised in their entirety where the Company
continues to have continuing involvement.

44. CAPITAL MANAGEMENT

"The Company’s capital management strategy
is to effectively determine, raise and deploy
capital so as to create value for its shareholders.
The same is done through a mix of either equity
and/or convertible and/or combination of short
term/long term debt as may be appropriate.
The Company determines the amount of capital
required on the basis of operations, capital expenditure
and strategic investment plans. The capital structure
is monitored on the basis of net debt to equity and
maturity profile of overall debt portfolio."

45. DIVIDEND

During the year ended 31 March 2025, the Board of
Directors have recommended a dividend @ 30% per
equity share of '' 10/- subject to approval of members
at the ensuing Annual General Meeting.

46. RELATED PARTY DISCLOSURES

(A) Names of related parties and description
of relationship as identified and certified
by the Company:

Key Management Personnel (KMP) and their
relatives

Mr. Rohit Gupta, Managing Director

Ms. Rachita Gupta, Whole Time Director

Ms. Preeti Gupta, Company Secretary

Mr. Naresh C. Varshney, Chief Financial Officer

Mr. Pramod Bindal, Independent Director

Mr. Chandra Subhash Kwatra, Independent Director

Mr. Ayush Mittal*

Ms. Alaktika Banerjee **

Mr. Anirudha Kumar **

Mr. Ashok Kathuria

*Ayush Mittal was independent director till 06-03¬
2025

** Both of these directors were appointed as director
from 18-03-2025

Enterprises over which key management
personnel and relatives of such personnel
exercise significant influence with whom
transactions has been undertaken:

rci .^1- - —.i ru h- i -f^i

(b) Others

The Company, as part of its normal business, grants
loans and advances. These transactions are part of
Company’s normal non-banking finance business,
which is conducted ensuring adherence to all
regulatory requirements.

No funds have been advanced or loaned (either
from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in
any other person(s) or entity(ies), including foreign
entities ("Intermediaries”) with the understanding,
whether recorded in writing or otherwise, that the
Intermediary shall lend or invest in party identified by

or on behalf of the Company (Ultimate Beneficiaries).
The Company has not received any fund from any
party(s) (Funding Party) with the understanding that
the Company shall whether, directly or indirectly lend
or invest in other persons or entities identified by or
on behalf of the Company ("Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

(c) Relationship with Struck off companies

During the year, Company has not undertaken any
transactions with the companies struck off under the
Companies Act, 2013/1956.

49.4 Risks associated with Defined benefit
obligation

Gratuity is a defined benefit plan and Company is
exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is
linked to the G.Sec. Rate will increase the present
value of the liability requiring higher provision. A fall
in the discount rate generally increases the mark to
market value of the assets depending on the duration
of asset.

Salary Risk: The present value of the defined benefit
plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary
of the members more than assumed level will increase
the plan''s liability.

Investment Risk: The present value of the defined
benefit plan liability is calculated using a discount rate
which is determined by reference to market yields
at the end of the reporting period on government
bonds. If the return on plan asset is below this rate,
it will create a plan deficit. Currently, for the plan in
India, it has a relatively balanced mix of investments in
government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM
risk as to the matching cash flow. Since the plan is
invested in lines of Rule 101 of Income Tax Rules,
1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not
payable for life time and payable till retirement age
only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration
risk as all the assets are invested with the insurance
Company and a default will wipe out all the assets.
Although probability of this is very less as insurance
companies have to follow regulatory guidelines.

Para 139 (c) Characteristics of defined benefit
plans

During the year there we no plan amendements,
curtailments & settlements.

Para 147 (a)

A separate trust fund is created to manage the
Gratuity plan and the contributions towards the trust
fund is done as guided by rule 103 of Income Tax
Rules, 1962.

(b) Intra-Group Exposure

The Company does not have any intra-group exposure
hence this disclosure is not applicable.

(c) Unhedged Foreign Currency Exposure

The Company does not have any unhedged foreign
currency exposure hence this disclosure is not
applicable.

66.

(a) There is no restructuring of loan during the year
and in the previous year accordingly as per Master
Direction - Reserve Bank of India (Non-Banking
Financial Company - Scale Based Regulation)
Directions, 2023, RBI circular RBI/2020-21/16
DOR.No.BP.BC/3/21.04.048/2020-21 dated
August 6, 2020 and RBI circular DOR.STR.
REC.11/21.04.048/2021-22 dated May 5, 2021
(Resolution framework - 2.0) there is no disclosure
made in the financial statements.

(b) Pursuant to RBI circular RBI/2019-20/88 DOR.
NBFC (PD) CC. No.102/03.10.001/2019-20
dated November 04, 2019, Liquidity Coverage

Ratio ("LCR") is not applicable as Company asset
size is lower than INR 10,000 crore.

(c) The Reserve Bank of India has issued Master
Direction - Reserve Bank of India (Non-Banking
Financial Company - Scale Based Regulation)
Directions, 2023 vide Circular No. RBI/DoR/2023-
24/106, DoR.FIN.REC.No.45/03.10.119/2023-
24 on 19 October 2023 (''Framework''). The
Framework categorizes NBFCs in Base Layer
(NBFC-BL), Middle Layer (NBFC-ML), Upper
Layer (NBFC-UL) and Top Layer (NBFC-TL). The
Company is classified under "Middle Layer"
pursuant to the said Framework.

(d) The Reserve Bank of India has issued Master
Direction - Reserve Bank of India (Non-Banking
Financial Company - Scale Based Regulation)
Directions, 2023 vide circular No. RBI/DoR/2023-
24/106, DoR.FIN.REC.No.45/03.10.119/2023-
24 in supersession of the Non-Banking Financial
Company-Non-Systemically Important Non¬
Deposit taking (Reserve Bank) Directions,
2016 and Non-Banking Financial Company-
Systemically Important Non-Deposit taking
Company and Deposit taking Company (Reserve
Bank) Directions, 2016.

73. The Company has not surrendered or disclosed
any transaction, which was not recorded in the books
of accounts, as income during the year in the tax
assessments under the Income Tax Act, 1961.

74. Revaluation of Plant, Property and Equipment
and Intangible Assets: No revaluation of Plant,
Property and Equipment andIntangible Assets has
been done during the year.

75. The Company has not been declared as willful
defaulter by any banks/Financial Institution.

76. The Company has neither approved any scheme
of arrangement nor has made any proposal for such
arrangement.

77. The Company uses accounting software for
maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same
has operated throughout the year for all relevant

transactions recorded in the software except in
certain components where the audit trail were not
operating due to system limitations. The audit trail has
been preserved by the Company as per the statutory
requirements for record retention. Further at no
instance the Audit Trail feature was tempered with.

78 . The Company has not traded or invested in Crypto
currency or Virtual Currency during the financial year.

79. The Company has utilised the funds raised
from banks and financial institutions for the specific
purpose for which they were borrowed.

80. There is no Securitization or assignment of loan
during the current year or previous financial year.

81. Previous year figures have been regrouped/
rearranged wherever necessary to render them
comparable with current year figures.

Notes 1 to 81 form an integral part of the Financial Statememnts
As per our Report of even date attached

For S. P. Chopra & Co. FOR & ON BEHALF OF THE BOARD

Chartered Accountants

Firm Registration No. 000346N

(Rohit Gupta) (Ashok Kumar Kathuria)

Managing Director Director

DIN: 00045077 DIN: 01010305

(Pawan K. Gupta) (Preeti Gupta) (Naresh C. Varshney)

Partner Company Secretary Chief Financial Officer

Membership No: 092529 M. No: FCS A43593

Date: 23 May, 2025
Place: Noida

---

Mar 31, 2024

3.14 Provision, contingent liabilities and contingent assets

a. Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, 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 obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation, at the balances sheet date.

If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

b. Contingent Liabilities

A disclosure for a contingent liability is made when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation arising as a result of past event that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

c. Contingent Assets

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

3.15 Investment Property

Properties, held to earn rentals and/or capital appreciation are classified as investment property and measured at cost, including transaction costs.

Depreciation is recognised using straight line method so as to write off the cost of the investment property less their residual values over their useful lives specified in Schedule II to the Companies Act, 2013. Depreciation method is reviewed at each financial year end to reflect the expected pattern of consumption of the future benefits embodied in the investment property.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of property is recognised in the statement of profit and loss in the same period.

3.16 Taxes

a. Current tax

Current income tax, assets and liabilities are measured at the amount expected to be paid to or recovered from the taxation authorities in accordance with the tax regime inserted by the Taxation Laws (Amendment) Act, 2019 in the Income Tax Act, 1961 and the Income Computation and Disclosure Standards (ICDS) enacted in India by using tax rates and the tax laws that are enacted at the reporting date.

Current tax relating to items recognized outside profit or loss is recognized in correlation to the underlying transactions either in OCI or directly in other equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which the applicable tax regulations are subject to interpretation and establishes provisions where applicable.

b. Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets and liabilities are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

3.17 Earning per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company’s earnings per share is the net profit for the period after tax. The

weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, sub-division of shares etc. that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders is divided by the weighted average number of equity shares outstanding during the period, considered for deriving basic earnings per share and weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

For the purpose of calculating basic EPS, shares allotted to ESOP trust pursuant to the employee share based payment plan are not included in the shares outstanding as on the reporting date till the employees have exercised their right to obtain shares, after fulfilling the requisite vesting conditions. Till such time, the shares so allotted are considered as dilutive potential equity shares for the purpose of calculating diluted EPS.

3.18 Significant accounting judgements, estimates and assumptions

The preparation of standalone financial statements in conformity with Ind AS requires the management to make use of estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of standalone financial statements, and the reported amount of revenues and expenses during the reporting period. In view of the inherent uncertainties and a level of subjectivity involved in measurement of items, it is possible that the outcomes in the subsequent financial years could differ from those on which the Management’s estimates are based.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying values of assets and liabilities within the next financial year are given below.

Fair value of financial instruments

Fair value of financial instruments is required to be estimated for financial reporting purposes. The Company applies appropriate valuation techniques and inputs for fair value measurements. In estimating the fair value of an asset or a liability, the Company uses quoted prices and market-observable data to the extent it is available. When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, based on the inputs to these models taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Effective Interest Rate (EIR) method

The Company recognizes interest income/expense using a rate of return that represents the best estimate of a constant rate of return over the expected life of the loans given/taken.

This estimation, by nature, requires an element of judgement regarding the expected behaviour and life-cycle of the instruments, as well as expected changes to other fee income/ expense that are integral parts of the instrument.

Impairment of financial assets - Expected Credit Loss

The measurement of impairment loss allowance for financial asset measured at amortised cost requires use of statistical models, significant assumptions about future economic conditions and credit behavior (e.g. likelihood of borrowers defaulting and resulting losses). In estimating the cash flows expected to be recovered from credit impaired loans, the Company makes judgements about the borrower’s financial situation, current status of the project, net realisable value of securities/collateral etc. As these estimates are based on various assumptions, actual results may vary leading to changes to the impairment loss allowance. Further, judgement is also made in identifying the default and significant increase in credit risk (SICR) on financial assets as well as for homogeneous grouping of similar financial assets. Impairment assessment also takes into account the data from the loan portfolio, levels of arrears and an analysis of historical defaults.

Useful life of property, plant and equipment

The Property, Plant and Equipment are depreciated on straight line method over their respective useful lives. Management estimates the useful lives of these assets as detailed in Note 3.9 above. Changes in the expected level of usage, technological developments, level of wear and tear could impact the economic useful lives and the residual values of these assets, therefore, future depreciation charges could be revised and could have an impact on the financial position in future years.

Assets Held for Sale

Assets acquired by the Company under settlement with the borrrowers, are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through its use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell. An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell, but not in excess of any cumulative impairment loss previously recognised. These assets are not depreciated or amortised while they are classified as held for sale.

35. SEGMENT INFORMATION

In the opinion of the management, there is only business segment i.e. lending, which have similar risks and return for the purpose of Ind AS 108 ‘Operating segments’, prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read with the relevant rules issued thereunder. Accordingly, no separate disclosure for segmental reporting is required to be made in the financial statements or the Company.

Secondary segmentation based on geography has not been presented as the Company operates primarily in India and the Company perceives that there is no significant difference in its risk and returns in operating from different geographic areas within India.

All the operating revenue of the Company is from the external customers with in India only. No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the Company’s total revenue in year ended 31^st March, 2024 or 31^st March, 2023.

36. EMPLOYEE STOCK OPTION SCHEME (ESOS)

The ESOS Scheme titled “CSL Employee Stock options Scheme 2016” (CSL ESOS 2016) was approved by the shareholders on 30^th September, 2016. 7,00,000 options are covered under the CSL ESOS, 2016.

During the financial year 2016-17, the Compensation Committee in its meeting held on 3^rd February, 2016 and 11^th February, 2016 has granted 4,50,000 options (aggregate) under ESOS to eligible employees of the Company. Each

option comprises one underlying equity share. The terms regarding vesting and exercise of options are governed by the grant letters issued to the eligible employees to whom options are granted. The Exercise price has been determined at '' 226/- per share for the grant of aforesaid 4,50,000 options.

During the financial year 2017-18, the Compensation Committee in its meeting held on 12^th May, 2017 and 7^th July, 2017 has granted 1,15,000 options (aggregate) under ESOS to eligible employees of the Company. Each option comprises one underlying equity share. The terms regarding vesting and exercise of options are governed by the grant letters issued to the eligible employees to whom options are granted. The Exercise price has been determined at '' 240/- per share for the grant of aforesaid 1,15,000 options.

During the financial year 2018-19, 69,350 options were exercised and 1,65,000 equity shares were allotted. However, 90,000 options were lapsed during the financial year 2018-19 and no fresh options were granted during the year.

During the financial year 2019-20, 24,891 options were exercised and 90,000 equity shares were allotted. However, 12,500 options were lapsed during the financial year 2019-20 and no fresh options were granted during the year.

During the financial year 2020-21, 34921 options were exercised. and 1,20,838 options were lapsed during the financial year 2020-21 and no fresh options were granted during the year.

During the financial year 2021-22, 6,625 options were exercised. During the current financial year 4,00,000 equity shares were allotted along with the 71,676 bonus shares

40.2 Valuation methodologies of financial instruments not measured at fair value

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the Company’s financial statements. These fair values were calculated for disclosure purposes only.

Short-term financial assets and liabilities

For financial assets and financial liabilities that have a shortterm 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 balances, balances other than cash and cash equivalents. Such amounts have been classified as Level 1 on the basis that no adjustments have been made to the balances in the balance sheet.

Loans and advances to customers

For loans and advances, the fair value is calculated for SME and Wholesale portfolios separately. The weighted

average rate of lending is computed for each segment on reporting date and the portfolio is then adjusted for changes in these rates.

Borrowings

The fair values of financial liability held-to-maturity are estimated using effective interest rate model based on contractual cash flows using weighted average rate of borrowing of the Company.

41. CREDIT RISK MANAGEMENT 41.1 Credit Risk

Credit risk is the risk that the Company will incur a loss because its customers fail to discharge their contractual obligations.The Company has a comprehensive framework for monitoring credit quality of its loans primarily based on days past due monitoring at period end. Repayment by individual customers and portfolio is tracked regularly and required steps for recovery are taken through follow ups and legal recourse.

41.3 ECL Methodology

In assessing the impairment of financial loans under Expected Credit Loss (ECL) Model, the assets have been segmented into three stages. The three stages reflect the general pattern of credit deterioration of a financial instrument.

Stage 1: 0-30 days past due Stage 2: 31-90 days past due Stage 3: More than 90 days past due

In assessing the impairment of other financial assets Company applies the simplified approach to providing for expected credit losses prescribed by Ind AS 109.

(i) Definition of default

The Company considers a financial asset to be in “default” and therefore Stage 3 (credit impaired) for ECL calculations when the borrower becomes 90 days past due on its contractual payments.

(ii) Exposure at default

“Exposure at Default” (EAD) represents the gross carrying amount of the assets subject to impairment calculations. “Loss given default” (LGD) is estimated and applied on stage III assets.

(iii) Estimations and assumptions considered in the ECL model

Probability of Default” (PD) is applied on Stage 1 and Stage 2 on portfolio basis and for Stage 3 PD at 20% for period of default from 4 to 15 months, at 30% for default from 16 to 27 months and at 50% for period exceeding 27 months. This is calculated based on the management’s best estimate, movement of default rates and future adjustment for macro-economic factor.

(iv) Forward looking information

PDs has been converted into forward looking PD which incorporates the forward looking economic outlook. For SME and Wholesale portfolio, Real GDP (% change p.a.) is used as the macroeconomic variable.

(v) Assessment of significant increase in credit risk

When determining whether the credit risk has increased significantly since initial recognition, the Company considers both quantitative and qualitative information and analysis based on the Company’s historical experience, including forward-looking information. The Company considers reasonable and supportable information that is relevant and available without undue cost and effort.

(vi) Write offs/Recoveries

The gross carrying amount of a financial asset is written off when there is no realistic prospect of further recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write off. However, financial assets that are written off could still be subject to enforcement activities under the Company’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in profit or loss.

(vii) Undrawn commitments

These commitments pertain to the loans sanctioned but amount remaining undrawn. The Company can opt not to disburse the undrawn amount at its discretion. Therefore, no provision has been created on these commitments.

42. 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.

The Company manages liquidity risk by measuring and managing net funding requirments by calculating the cummulative surplus or deficit of funds at a selected maturity dates. The Company also maintains adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

42.1 Maturity profile of Financial Liabilities

The disclosure is based upon the earliest date on which the Company can be required to pay. The table includes both interest and principal cash flows. The table below summarises the maturity profile of the undiscounted cash flows of the Company’s financial assets and liabilities as at 31^st March, 2024 and 31^st March, 2023.

43. MARKET RISK

Market the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates, Foreign Currency.

The Company’s financial statements are not exposed to currency and price 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 sensitivity of the statement of profit and loss is the effect of the assumed changes in interest rates on the profit or loss for a year, based on the floating rate non-trading financial assets and financial liabilities held at 31^th March, 2024.

44. TRANSFER OF FINANCIAL ASSETS

The Company has not transferred any assets that are derecognised in their entirety where the Company continues to have continuing involvement.

45. CAPITAL MANAGEMENT

The Company’s capital management strategy is to effectively determine, raise and deploy capital so as to create value for its shareholders. The same is done through a mix of either equity and/or convertible and/or combination of short term/long term debt as may be appropriate.

The Company determines the amount of capital required on the basis of operations, capital expenditure and strategic investment plans. The capital structure is monitored on the basis of net debt to equity and maturity profile of overall debt portfolio.

46. DIVIDEND

During the year ended 31^th March, 2024, the Board of Directors have recommneded a dividend @ 25% per equity share of '' 10/- subject to approval of members at the ensuing Annual General Meeting.

47. RELATED PARTY DISCLOSURES

(A) Names of related parties and description of relationship as identified and certified by the Company

Key Management Personnel (KMP) and their relatives

Mr. Rohit Gupta, Managing Director

Ms. Rachita Gupta, Whole-Time Director

Ms. Preeti Gupta, Company Secretary

Mr. Naresh C. Varshney, Chief Financial Officer

Mr. Pramod Bindal, Independent Director

Mr. Subhash Chand Kwatra, Independent Director

Mr. Ayussh Mittaal, Independent Director

Mr. Ashok Kumar Kathuria, Director

Enterprises over which key management personnel and relatives of such personnel exercise significant influence with whom transactions has been undertaken

CSL Capital Private Limited

Post employee benefit plans

CSL FINANCE LIMITED - Employees Group Gratuity Trust

Relatives of Key Management Personnel

Ms. Ridhima Gupta

(b) Others

Other than in the normal and ordinary course of business there are no funds that have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“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 (“Ultimate Beneficiaries”) by or on behalf of the Company; or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Other than in the normal and ordinary course of business there are no funds that have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“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 (“Ultimate Beneficiaries”) by or on behalf of the Company; or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

50.4 Risks associated with Defined benefit obligation

Gratuity is a defined benefit plan and Company is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset liability matching risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

Para 139 ©Characteristics of defined benefit plans

During the year there we no plan amendements, curtailments & settlements.

Para 147(a)

A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by rule 103 of Income Tax Rules, 1962.

53. No proceedings have been initiated or pending against the Company for holding any benami property which is the subject matter under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

54. During the year the Company has neither got registered nor satisfied any charge with ROC/MCA beyond the statutory period.

55. FOREIGN EXCHANGE EARNINGS: EARNINGS IN FOREIGN EXCHANGE CLASSIFIED UNDER THE FOLLOWING HEADS

56. The title deeds in respect of the buildings included in the financial statements under Property, plant and equipments and investment property (other than buildings where the Company is the lessee and the lease agreement is duly executed in its favour) are held in the name of the Company.

57. The Company has not surrendered or disclosed any transaction, which was not recorded in the books of accounts, as income during the year in the tax assessments under the Income Tax Act, 1961.

58. The Company has not been declared as willful defaulter by any banks/FI.

59. The Company has neither approved any scheme of arrangement nor has any proposal for such arrangement.

60. The Company uses accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except in certain components where the audit trail were not operating due to system limitations. Further at no instance the Audit Trail feature was tempered with.

61 . Previous year figures have been regrouped/rearranged wherever necessary to render them comparable with current year figures.

As per our Report of even date attached For & on behalf of the Board

For S. P. Chopra & Co. (Rohit Gupta) (Ashok Kumar Kathuria)

Chartered Accountants Managing Director Director

Firm Registration No.: 000346N DIN: 00045077 DIN: 01010305

(Pawan K. Gupta) (Preeti Gupta) (Naresh C. Varshney)

Partner Company Secretary Chief Financial Officer

Membership No.: 092529 M. No.: A43593

Place: New Delhi Date: 15^th May, 2024

---

Mar 31, 2023

Terms/rights attached to equity shares

The Company has one class of equity shares having a par value of ? 10/- per share. Each Shareholder is eligible for one vote per share held. The shares entitle the holder to participate in dividends and in the event of liquidation, the equity Shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholding.

34. Segment information

In the opinion of the management, there is only business segment i.e. lending, which have similar risks and return for the purpose of Ind AS 108 ''Operating segments'', prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with the relevant rules issued thereunder. Accordingly, no separate disclosure for segmental reporting is required to be made in the financial statements or the Company.

Secondary segmentation based on geography has not been presented as the Company operates primarily in India and the Company perceives that there is no significant difference in its risk and returns in operating from different geographic areas within India.

All the operating revenue of the Company is from the external customers with in India only. No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the Company''s total revenue in year ended 31 March, 2023/31 March, 2022.

35. Employee Stock Option Scheme (ESOS)

The ESOS Scheme titled "CSL Employee Stock options Scheme 2016" (CSL ESOS 2016) was approved by the shareholders on 30 September, 2016. 7,00,000 options are covered under the CSL ESOS, 2016.

During the financial year 2016-17, the Compensation Committee in its meeting held on 3 February, 2016 and 11 February, 2016 has granted 4,50,000 options (aggregate) under ESOS to eligible employees of the Company. Each option comprises one underlying equity share. The terms regarding vesting and exercise of options are governed by the grant letters issued to the eligible employees to whom options are granted. The Exercise price has been determined at ? 226/- per share for the grant of aforesaid 450000 options.

During the financial year 2017-18, the Compensation Committee in its meeting held on 12 May, 2017 and 07 July, 2017 has granted 1,15,000 options (aggregate) under ESOS to eligible employees of the Company. Each option comprises one underlying equity share. The terms regarding vesting and exercise of options are governed by the grant letters issued to the eligible employees to whom options are granted. The Exercise price has been determined at ? 240/- per share for the grant of aforesaid 1,15,000 options.

During the financial year 2018-19, 69,350 options were exercised and 1,65,000 equity shares were allotted. However, 90,000 options were lapsed during the financial year

2018- 19 and no fresh options were granted during the year.

During the financial year 2019-20, 24,891 options were exercised and 90,000 equity shares were allotted. However, 12,500 options were lapsed during the financial year

2019- 20 and no fresh options were granted during the year.

During the financial year 2020-21, 34921 options were exercised. and 120,838 options were lapsed during the financial year 2020-21 and no fresh options were granted during the year.

During the financial year 2021-22, 6625 options were exercised. During the current financial year 400000 equity shares were allotted along with the 71676 bonus shares

During the financial year 2022-23, 6625 options were exercised. During the current financial year 481000 equity shares were granted.

39.2 Valuation methodologies of financial instruments not measured at fair value:

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the Company''s financial statements. These fair values were calculated for disclosure purposes only.

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 balances, balances other than cash and cash equivalents. Such amounts have been classified as Level 2/Level 3 on the basis that no adjustments have been made to the balances in the balance sheet.

Loans and advances to customers

For loans and advances, the fair value is calculated for SME and Wholesale portfolios separately. The weighted average rate of lending is computed for each segment on reporting date and the portfolio is then adjusted for changes in these rates.

Borrowings

The fair values of financial liability held-to-maturity are estimated using effective interest rate model based on contractual cash flows using weighted average rate of borrowing of the Company.

40. Credit Risk Management

40.1 Credit Risk:

Credit risk is the risk that the Company will incur a loss because its customers fail to discharge their contractual obligations. The Company has a comprehensive framework for monitoring credit quality of its loans primarily based on days past due monitoring at period end. Repayment by individual customers and portfolio is tracked regularly and required steps for recovery are taken through follow ups and legal recourse.

40.2 Credit Quality of Loans:

The following table sets out information about credit quality of loans measured at amortised cost based on days past due information. The amount represents gross carrying amount.

Note: The Company is into Wholesale & SME lending business, there is no significant credit risk of any individual customer that may impact Company adversely. The Company has calculated its Expected Credit Loss allowances collectively for SME segment and customer wise for WSL segment.

40.3 ECL Methodology:

In assessing the impairment of financial loans under Expected Credit Loss (ECL) Model, the assets have been segmented into three stages. The three stages reflect the general pattern of credit deterioration of a financial instrument.

Stage 1: 0-30 days past due

Stage 2: 31-90 days past due

Stage 3: More than 90 days past due

In assessing the impairment of other financial assets Company applies the simplified approach to providing for expected credit losses prescribed by Ind AS 109.

(i) Definition of default

The Company considers a financial asset to be in "default" and therefore Stage 3 (credit impaired) for ECL calculations when the borrower becomes 90 days past due on its contractual payments.

(ii) Exposure at default

"Exposure at Default" (EAD) represents the gross carrying amount of the assets subject to impairment calculations. "Loss given default" (LGD) is estimated and applied on stage III assets.

(iii) Estimations and assumptions considered in the ECL model

"Probability of Default" (PD) is applied on Stage 1 and Stage 2 on portfolio basis and for Stage 3 PD at 20% for period of default from 4 to 12 months, at 30% for default from 13 to 21 months and at 50% for period exceeding 21 months. This is calculated based on the management''s best estimate, movement of default rates and future adjustment for macroeconomic factor.

(iv) Forward looking information

PDs has been converted into forward looking PD which incorporates the forward looking economic outlook. For SME and Wholesale portfolio, Real GDP (% change p.a.) is used as the macroeconomic variable.

(v) Assessment of significant increase in credit risk

When determining whether the credit risk has increased significantly since initial recognition, the Company considers both quantitative and qualitative information and analysis based on the Company''s historical experience, including forward-

looking information. The Company considers reasonable and supportable information that is relevant and available without undue cost and effort.

(vi) Write Offs/Recoveries

The gross carrying amount of a financial asset is written off when there is no realistic prospect of further recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the writeoff. However, financial assets that are written off could still be subject to enforcement activities under the Company''s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in profit or loss.

(vii) Undrawn commitments

These commitments pertain to the loans sanctioned but amount remaining undrawn. The Company can opt not to disburse the undrawn amount at its discretion. Therefore, no provision has been created on these commitments.

40.7 Collateral

i) Narrative description of collateral

The Company has business interests in Wholesale and SME Retail Lending. The Company risk is mitigated by considering the collateral from the borrowers. Thereby the Company employs a range of policies and practices to manage the credit risk in the business. The most common is to by accepting the collateal from the borrowers. The Company deploys internal policies on the acceptabiltiy of the specific class of collateral or credit risk mitigation. The principal collateral types for the loans and advances includes:

- Mortgage of Immovable Property;

- Pledge of the Shareholding of Promoters;

- Hypothetication of Immovable Property;

- Pledge of instruments through which promoters contribution is infused in the project.

41. 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.

The Company manages liquidity risk by measuring and managing net funding requirments by calculating the cummulative surplus or deficit of funds at a selected maturity dates. The Company also maintains adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

42. Market risk

Market the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates, Foreign Currency.

The Company''s financial statements are not exposed to currency and price 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 sensitivity of the statement of profit and loss is the effect of the assumed changes in interest rates on the profit or loss for a year, based on the floating rate non-trading financial assets and financial liabilities held at 31 March, 2023.

43. Transfer of financial assets

The Company has not transferred any assets that are derecognised in their entirety where the Company continues to have continuing involvement.

44. Capital Management

The Company''s capital management strategy is to effectively determine, raise and deploy capital so as to create value for its shareholders. The same is done through a mix of either equity and/or convertible and/or combination of short term/long term debt as may be appropriate.

The Company determines the amount of capital required on the basis of operations, capital expenditure and strategic investment plans. The capital structure is monitored on the basis of net debt to equity and maturity profile of overall debt portfolio.

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

(b) Others

Other than in the normal and ordinary course of business there are no funds that have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("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 ("Ultimate Beneficiaries") by or on behalf of the Company; or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Other than in the normal and ordinary course of business there are no funds that have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("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 ("Ultimate Beneficiaries") by or on behalf of the Company; or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

49.4 Risks associated with Defined benefit obligation:

Gratuity is a defined benefit plan and Company is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

Para 139 ©Characteristics of defined benefit plans

Company has introduced the benefit scheme for Mr. Rohit Gupta during the year. The impact of the introduction of the scheme is recognised as past service cost.

Para 147 (a)

A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by rule 103 of Income Tax Rules, 1962.

51. The Company did not have any transaction which had not been recorded in the books of accounts, that had beed surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

52. The Company has not advanced or loaned or invested any funds (either from borrowed funds or share premium or any other sources or 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, whether, 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 provided any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

53. The Company has not recieved any funds 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 provided any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

54. Previous year figures have been regrouped/rearranged wherever necessary to render them comparable with current year figures.

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Mar 31, 2018

NOTE-1 OTHER ADDITIONAL INFORMATION

a). A) Contingent Liabilities:

i) Claims against the company not acknowledged as debts- Nil; Previous Year- Nil

ii) Guarantees to Banks and Financial institutions against credit facilities extended to third parties-Nil; Previous Year- Nil

iii) Other money for which the company is contingently liable

b). In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

c). In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

d). CIF value of Imports-NIL; Previous Year-(Nil)

e). Earning & Expenditure in Foreign Currency- NIL; Previous Year- (Nil)

f). The activities of the company do not involve conservation of energy or absorption of technology.

Rs.37,68,815 deposited under protest is being shown as Income Tax deposit against appeal in Note no.14 i.e. Other Current assets.

g) The company has entered into loan agreement with various parties as per the terms of the agreement grants interest subject to condition precedent in the agreement. The liability, if any, in this account is known only on the completion of agreement.

B) Commitments:

i) Uncalled liability on partly paid up shares- Nil; Previous Year - (Nil)

ii) Estimated amount of contracts remaining to be executed on capital accounts- NIL; Previous Year- (Nil)

iii) Other Commitments-Nil; Previous Year-Nil

I) As per information available with the company, no amount is due to any Undertaking/Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

h) Since the Company is dealing in one segment, No separate Segment reporting is given,

i) Balances are subject to confirmation,

j) Borrowing costs attributable to the acquisition or construction of qualifying assets amounting to Rs. Nil (P. Year Nil).

k) The company has not purchased/sold non performing financial assets in the current and previous year.

l) The board of director at their meeting held on 29.05.2018 have recommended a final dividend of Rs.1.50 per equity share (on face value of Rs.10 per equity share), subject to approval of the members at the ensuing Annual General Meeting. In terms of Accounting Standard (AS) 4 ''Contingencies and Events occurring after the Balance Sheet date'' the company has not appropriated for the recommended final dividend (including tax) from the statement of Profit & Loss for the year ended 31^st March 2018.

m) As Per the AS-14 "Accounting for Amalgamation" issued by the institute of Chartered Accountant Of India the Following Disclosures is being made as:

a) Name Of The Transferee Company : CSL Finance Ltd.

b) Name Of The Transferor Company: CSL Holdings Pvt Ltd.

c) The appointed date of amalgamation is 01-04-2015.

d) Nature Of amalgamation as per AS-14 is : Pooling Of Interest Method"

e) The scheme of amalgamation of the company is approved by Hon''ble National Company Law Tribunal, Principal Bench New Delhi on dated 31^st May, 2017.

f) General Nature of the business: The Transferor companies was engaged in the business of "investment in Shares & securities"

g) Change in Shares Capital Structure "

I) Authorised Share Capital :

As per the scheme of Amalgamation as approved by the Hon''ble National Company Law Tribunal, Principal Bench New Delhi on dated 31^st May, 2017. The authorized share capital of the transferor company CSL Holdings Private Limited, amounting Rs.2,40,00,000 has been merged with the Authorised Share Capital of the company during the year.

II) Paid Up Share Capital

As per the Scheme of amalgamation as approved by the Hon''ble National Company Law Tribunal, Principal Bench New Delhi on dated 31^st May, 2017 which is effective from 01-04-2015. No fresh equity shares were allotted. Only the equity shares of the transferee company held by transferor company were transferred to the share holders of the transferor company in the share holding ratio of them in the transferor company.

n) Employee Stock option Scheme

The ESOS Scheme titled "CSL Employee Stock options Scheme 2016" (CSL ESOS 2016) was approved by the shareholders on 30.09.2016. 7,00,000 options are covered under the CSL ESOS, 2016.

During the financial year 2016-17, the Compensation Committee in its meeting held on 03.02.2016 and 11.02.2016 has granted 4,50,000 options (aggregate) under ESOS to eligible employees of the company. Each option comprises one underlying equity share. The terms regarding vesting and exercise of options are governed by the grant letters issued to the eligible employees to whom options are granted. The Exercise price has been determined at Rs.226 per share for the grant of aforesaid 4,50,000 options. During the financial year 2017-18, the Compensation Committee in its meeting held on 12.05.2017 and 07.07.2017 has granted 1,15,000 options (aggregate) under ESOS to eligible employees of the company. Each option comprises one underlying equity share. The terms regarding vesting and exercise of options are governed by the grant letters issued to the eligible employees to whom options are granted. The Exercise price has been determined at Rs.240 per share for the grant of aforesaid 1,15,000 options.

o) During the year 2015-16 the company had sold 11,07,600 shares of M/s Samrat Forgings Limited to Mr. Rakesh Mohan Kumar ("Purchaser"), vide agreement dated March 30, 2016 . The company received Rs.2.60 crore towards principle repayment till date and as per agreement, the full consideration along with interest @ 18% at balance outstanding from April 1, 2016 was to be paid by the purchaser . However till 31.03.2018 a part interest of Rs.3.21 Lakh has been received and balance principle Rs.44.14 Lakh is to be received. The company has given legal notice to the purchaser to clear the dues along with interest or otherwise the company shall enforce the agreement of forfeiture of money received till date and all the 11,07,600 shares will be in name of the company. Accordingly no provision has been made in books.

p). During the current financial year i.e 2017-18 the company has made preferential allotment of 12,22,000 equity shares of Rs.10 each at a premium of Rs.380 for each equity share. The company has also allotted 1,50,000 warrants at the price of Rs.390 each. Each warrant is to be convertible to equity shares of Rs.10 each at premium of Rs.380 each within 18 months from the date of allotment of warrants,

q) The company was creating provision for standard assets @0.25 percent of standard assets until financial year 2016-17 as per the provisioning requirements as per guidelines issued by Reserve Bank of India. During the current financial year i.e 2017-18 the company has changed provisioning for standard assets to 0.30 percent which will be increased to 0.35 percent in financial year 2018-19 and further to 0.40 percent in financial year 2019-20. This is in line so as to make the company compliant in terms of provisions relating to Systematic Important Companies of the RBI.

r) The figures of the previous years have been regrouped and rearranged wherever it is considered necessary.

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Mar 31, 2016

NOTE-1

a) A) Contingent Liabilities:

i) Claims against the company not acknowledged as debts- Nil; Previous Year- Nil

ii) Guarantees to Banks and Financial institutions against credit facilities extended to third parties- Nil;

Previous Year- Nil

iii) Other money for which the company is contingently liable

a) Income Tax liability for Assessment year 2006-07 & 2011-12 is Rs.5,95,782/- and Rs.12,82,942/-respectively (Previous Year Rs.5,95,782/- for assessment year 2006-07, Rs. 49,68,594/- for assessment year 2008-09 & Rs 10,24,631/- for assessment year 2011-12). The company has deposited Rs.5,95,782/-and Rs.12,82,942/- for Assessment year 2006-07 and 2011-12 under protest Rs.18,78,724/- deposited under protest is being shown as Income Tax deposit against appeal in Note no.14 i.e. Other Current.

b) The company has entered into loan agreement with various parties and in case the management deems fit in its sole discretion, then, depending upon the circumstances of the case, it grants interest rebate to certain party/parties. Liability, if any, on this account is known only on completion of agreement.

B) Commitments:

i) Uncalled liability on partly paid up shares- Nil; Previous Year- (Nil)

ii) Estimated amount of contracts remaining to be executed on capital accounts- NIL; Previous Year- (Nil)

iii) Other Commitments- Nil; Previous Year- Nil

b) In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

c) In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

d) CIF value of Imports- NIL; Previous Year- (Nil)

e) Earning & Expenditure in Foreign Currency- NIL; Previous Year- (Nil)

f) The activities of the company do not involve conservation of energy or absorption of technology.

i) Company is dealing in shares. So the closing stock of shares has been shown as Stock-in-Trade but some shares purchased during the year by the company for earning income by way of dividends and for long term purposes being strategic/ large investments are shown under investments and accordingly income from these investments have been shown as short term / long term profit.

j) Deferred Tax Liabilities/Assets have been provided in accordance with AS-22. The break up of the deferred tax assets & liabilities are as under :

n) As per information available with the company, no amount is due to any Undertaking/ Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

q) The figures of the previous years have been regrouped and rearranged wherever it is considered necessary.

Notes:

2. As defined in paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

3. Provisioning norms shall be applicable as prescribed in Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

4. All Accounting Standards and guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets required in satisfaction of debt. However, market value in respect of quoated investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in (4) above.

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Mar 31, 2015

Note 1.1 - Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in the Schedule-II. Accordingly the unamortised carrying value is being depreciated/amortised over the remaining useful lives. The above depreciation of Rs.11,73,640/- includes Rs 2,11,276/- i.e the written down value (after residual value) of fixed assets whose lives have expired as at 1st April, 2014 and have been adjusted net of tax in the opening balance of profit and loss.

a) A) Contingent Liabilities:

i) Claims against the company not acknowledged as debts- Nil; Previous Year- Nil

ii) Guarantees to Banks and Financial institutions against credit facilities extended to third parties- Nil; Previous Year- Nil

iii) Other money for which the company is contingently liable

a) Income Tax liability for Assessment year 2006-07, 2008-09 & 2011-12 is Rs.595,782/-, Rs.4,968,594/- and Rs.1,024,631/- respectively (Previous Year Rs.595,782/- for assessment year 2006-07). The company has deposited Rs.595,782/- and Rs.1,282,942/- for Assessment year 2006-07 and 2011-12 under protest. Rs.595,782/- deposited under protest is being shown as Income Tax deposit against appeal in Note no.15 i.e. Other Current Assets and Rs.1,282,942/- has been deposited after 31st March, 2015.

b) The company has entered into loan agreement with various parties and in case the management deems fit in its sole discretion, then, depending upon the circumstances of the case, it grants interest rebate to certain party/parties. Liability, if any, on this account is known only on completion of agreement.

B) Commitments :

i) Uncalled liability on partly paid up shares- Nil; Previous Year- (Nil)

ii) Estimated amount of contracts remaining to be executed on capital accounts- NIL; Previous Year- (Nil)

iii) Other Commitments- Nil; Previous Year- Nil b) In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

c) In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

d) CIF value of Imports- NIL; Previous Year- (Nil)

e) Earning & Expenditure in Foreign Currency- NIL; Previous Year- (Nil)

f) The activities of the company do not involve conservation of energy or absorption of technology.

i ) Company is dealing in shares. So the closing stock of shares has been shown as Stock-in-Trade but some shares purchased during the year by the company for earning income by way of dividends and for long term purposes being strategic/ large investments are shown under investments and accordingly income from these investments have been shown as short term / long term profit.

j) Salary Payable to Mr. Rohit Gupta, Managing Director of the company has been increased from Rs.500000/- to Rs.1000000/- per month w.e.f. 1st October, 2014. The company has filed necessary papers with Ministry of Corporate Affairs for approval. Approval for the same is yet to be received.

m) Related Party Disclosure:

As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the Company's related parties and transactions are disclosed below:

(A) Name of related parties and description of relationship:

(1) Holding Company:

a) CSL Holdings Pvt. Ltd

(2) Other related parties where the Directors / Relatives have significant influence

a) CSL Capital Pvt. Ltd.

(3) Key Management Personal:

a) Mr. Rohit Gupta

b) Mr. Akash Gupta, Company Secretary & Legal Head

(4) Relatives of Key Management Personnel.

a) Mrs. Ridhima Gupta

n) As per information available with the company, no amount is due to any Undertaking/ Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

o) Since the Company is dealing in one segment, No separate Segment reporting is given.

p) Information regarding Purchase and Sale of Stock in trade during the year.

q) The figures of the previous years have been regrouped and rearranged wherever it is considered necessary.

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Mar 31, 2014

NOTE-1

a. A) Contingent Liabilities:

1. Claims against the company not acknowledged as debts Nil Previous Year Nil

2. Guarantees to Banks and Financial institutions against credit facilities extended to third parties Nil Previous Year Nil

3. Other money for which the company is contingently liable

a) Income Tax liability for Assessment year 2006-07 and 2007-08 is Rs. 595782/- and Rs. 1089849/- respectively Previous Year Rs. 1089849/- for assessment year 2007-08

b) The Income tax assessment for the Assessment year 2008-09 & 2009-10 has been set aside by the Income Tax Appellate Tribunal and liability if any accrues, the same will be known only after completion of the assessment.

c) The company has entered into loan agreement with various parties and in case of certain agreements as per terms of agreement company will give interest rebate to certain party/parties in case interest/principal payment is regular. Liability, if any, on this account is known only on completion of agreement.

B) Commitments :

i) Uncalled liability on partly paid up shares- Nil Previous Year (Nil)

ii) Estimated amount of contracts remaining to be executed on capital accounts- NIL. Previous Year (Nil)

iii) Other Commitments Nil Previous Year Nil

2. In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

3. In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

4. CIF value of Imports: NIL Previous Year (Nil),

5. Earning & Expenditure in Foreign Currency: NIL Previous Year (Nil),

6. The activities of the company do not involve conservation of energy or absorption of technology.

7. Company is dealing in shares. So the closing stock of shares has been shown as Stock-in-Trade but some shares purchased during the year by the company for earning income by way of dividends and for long term purposes being strategic/ large investments are shown under investments and accordingly income from these investments have been shown as short term / long term profit.

8) . As per information available with the company, no amount is due to any Undertaking/Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

9). Since the Company is dealing in one segment, no separate Segment reporting is given.

10). The figures of the previous years have been regrouped and rearranged wherever it is considered necessary.

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Mar 31, 2013

1. A) Contingent Liabilities:

i) Claims against the company not acknowledged as debts Nil Previous Year Nil

ii) Guarantees to Banks and Financial institutions against credit facilities extended to third parties Nil Previous Year Nil

iii) Other money for which the company is contingently liable

a) Income Tax Assessment year 2007-08 Rs 1089849/- Previous Year Nil

b) The Income tax assessment for the Assessment year 2008-09 & 2009-10 has been set aside by the Income Tax Appellate Tribunal and liability if any accrues, the same will be known only after completion of the assessment.

c) The company has entered into loan agreement with various parties and as per terms of agreement company will give interest rebate to certain party/parties in case interest/principal payment is regular. Liability, if any, on this account is known only on completion of agreement.

B) Commitments :

i) Uncalled liability on partly paid up shares- Nil Previous Year (Nil)

ii) Estimated amount of contracts remaining to be executed on capital accounts- NIL. Previous Year (Nil)

iii) Other Commitments Nil Previous Year Nil

2. In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

3. In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

4. CIF value of Imports: NIL Previous Year (Nil)

5. Earning & Expenditure in Foreign Currency: NIL Previous Year (Nil)

6. The activities of the company do not involve conservation of energy or absorption of technology.

7. Director''s remuneration: 30,00,000.00 30,00,000.00

8. Company is dealing in shares. So the closing stock of shares has been shown as Stock-in-Trade but some shares purchased during the year by the company for earning income by way of dividends and for long term purposes being strategic/ large investments are shown under investments and accordingly income from these investments have been shown as short term / long term profit.

I). Related Party Disclosure:

As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the Company''s related parties and transactions are disclosed below:

(A) Name of related parties and description of relationship:

(1) Holding Company :

a) Mundra Credit & Investment Pvt. Ltd

(2) Other related parties where the Directors / Relatives have significant influence

a) Deep Deposits & Leasing Pvt. Ltd.

b) CSL Realtors Pvt. Ltd.

(3) Key Management Personnel:

a) Mr. Rohit Gupta

(4) Relatives of Key Management Personnel.

a) Mr. Satpaul Gupta

b) Mrs. Ridhima Gupta

l ). Indicate s figures of Previous year.

m). As per information available with the company, no amount is due to any Undertaking/Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

n). Since the Company is dealing in one segment, No separate Segment reporting is given.

o). Information regarding Purchase and Sale of Stock in trade during the year.

Note

1. As defined in paragraph 2(1) (xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007

3. All Accounting Standards and guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets required in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in (4) above.

---

Mar 31, 2012

A) A) Contingent Liabilities:

i) Claims against the company not acknowledged as debts - Nil Previous Year Nil

ii) Guarantees to Banks and Financial institutions against credit facilities extended to third parties - Nil Previous Year Nil

iii) Other money for which the company is contingently liable - Nil Previous Year Nil B) Commitments :

i) Uncalled liability on partly paid up shares- Nil Previous Year (Nil)

ii) Estimated amount of contracts remaining to be executed on capital accounts- Nil. Previous Year (Nil)

iii) Other Commitments Nil Previous Year Nil

b). In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

c). In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

d). CIF value of Imports: NIL Previous Year (Nil)

e). Earning & Expenditure in Foreign Currency: NIL Previous Year (Nil)

f). The activities of the company do not involve conservation of energy or absorption of technology.

i). Company is dealing in shares. So the closing stock of shares has been shown as Stock-in-Trade but some shares purchased during the year by the company for earning income by way of dividends and for long term purposes being strategic/ large investments are shown under investments and accordingly income from these investments have been shown as short term / long term profit.

l). Related Party Disclosure:

As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the Company's related parties and transactions are disclosed below:

(A) Name of related parties and description of relationship:

(1) Holding Company :

a) Mundra Credit & Investment (P) Ltd

(2) Other related parties where the Directors / Relatives have significant influence

a) Deep Deposits & Leasing (P) Ltd.

(3) Key Management Personnel:

a) Mr. Rohit Gupta

(4) Relatives of Key Management Personnel.

a) Mr. Satpaul Gupta

b) Mrs. Ridhima Gupta

m). As per information available with the company, no amount is due to any Undertaking/Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

n). Since the Company is dealing in one segment, No separate Segment reporting is given.

p). The figures of the previous years have been regrouped and rearranged wherever it is considered necessary.

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Mar 31, 2010

1. Contingent Liability:

a) Unpaid liability on partly paid up shares- Nil (Nil)

b) Estimated amount of contract remaining to be executed on capital accounts- Nil (Nil)

2. Claim againstthe company not acknowledged as debts- Nil (Nil)

3. In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

4. In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5. None of the employees was in receipt of annual remuneration as prescribed under the provision of section 217(2A) of the Companies Act, 1956.

6. The activities of the company do not involve conservation of energy or absorption of technology.

7. The figures of the previous years have been regrouped and rearranged wherever it considered necessary.

8. Directors remuneration: NIL (NIL)

9. Amount dueto/from the parties are subjectto confirmation.

10. Company is dealing in shares. So the closing stock of shares has been shown as Stock-in-Trade but some shares purchased during the year by the company for earning income by way of dividends and for long term purposes being strategic investments are shown under investments.

11. Provisions:

Provisions are recognized where the company has present legal or constructive obligation, as a result of past event, for which it is probable that an outflow of economic benefits will be required to settle the obligation and the reliable estimate can be made for the amount of the obligation.

12. Impairment of Assets:

The carrying amounts of assets are reviewed at the balance sheet date to determine whether there are any indications of impairment. If the carrying amount of the fixed assets exceeds the recoverable amount at the reporting, the carrying amount is reduced to the recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use, the value in use determined by the present value estimated future cash flows. Here carrying amounts of fixed assets are equal to recoverable amounts.

13. Related Party Disclosure:

As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the Companys related parties and transactions are disclosed below:

(A) Name of related parties and description of relationship:

(1) Holding Company:

a) Mundra Credit & Investment (P) Ltd

(2) Other related parties where the Directors/ Relatives have significant influence

a) Rajastan Global Securities Ltd.

b) Deep Deposits & Leasing (P) Ltd.

(3) Key Management Personal: a) Mr. Rohit Gupta

(4) Relatives of Key Management Personnel. a) Mr. Satpaul Gupta

14. As per information available with the company, no amount is due to any Undertaking/ Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

15. Since the Company is dealing in one segment, No separate Segment reporting is given.

16. The figure in the brackets pertains to the previous year.