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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of GIC Housing Finance Ltd.

Mar 31, 2025

g. Provisions, Contingent Liabilities and contingent assets

Provisions are recognised when there is 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 there is a
reliable estimate of the amount of the obligation.

When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the
present value of those cash flows (when the effect of the time value of money is material). The discount rate used to
determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent liabilities are disclosed 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 that arises from past events where it is either not probable that an outflow
of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements. Contingent
assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent assets
are reviewed at each Balance Sheet date.

When there is a possible obligation or a present obligation, in respect of which the likelihood of outflow of resources is
remote no provision or disclosure is made.

h. Commitments

Commitments are future liabilities for contractual expenditure. The commitments are classified and disclosed as follows:

i. The estimated amount of contracts remaining to be executed on capital account and not provided for; and

ii. Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of
the Management.

i. Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured and there exists reasonable certainty of its recovery.

(i) Income on loans

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time proportion basis,
by reference to the principal outstanding and applicable effective interest rate (EIR).

EIR is the rate that discounts estimated future cash receipts through the expected life of the financial instrument or,
when appropriate, a shorter period, to the net carrying amount of the financial asset. EMI commences once when the
entire loan is disbursed. Pending Commencement of EMIs, Pre-EMI interest is payable every month.

The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any discount or premium
on acquisition, fees and costs that are an integral part of the asset. The Company recognises interest income using a
rate of return that represents the best estimate of a constant rate of return over the expected life of the loan.

Interest income is calculated by applying the EIR to the gross carrying amount of non-credit impaired financial assets
(i.e. at the amortised cost of the financial asset before adjusting for any expected credit loss allowance). For credit-
impaired financial assets, interest income is calculated by applying the EIR to the gross carrying amount less the
allowance for expected credit losses. However, no interest has been recognised on credit-impaired loans as a matter
of prudence.

Overdue Interest in respect of credit-impaired loans, Penal Interest and other related charges are recognised as income
only when revenue is virtually certain which generally coincides with receipts.

(ii) Fees and Commission Income

Fee and commission income include fee other than those that are an integral part of EIR. The fee included in this
part of the Companyâs Statement of Profit and Loss include, among other things, fee charged for servicing a loan.
The Company recognises the fee and commission income in accordance with the terms of the relevant contract /
agreement and when it is probable that the Company will collect the consideration.

Fee and commission expenses in respect of services availed are recognised as the services are received.

(iii) Investment Income

Gains/ losses on the sale of investments are recognized in the Statement of Profit and Loss on the trade date. Gain or
loss on the sale of investments is determined after consideration of cost on a first in first out (FIFO) basis.

Income from interest on bank deposits and other interest bearing securities is recognized on the time proportion basis
taking into account the amount outstanding and the rate applicable.

(iv) Dividend Income

Dividend income from investments is recognised when the Companyâs right to receive payment has been established
(provided that it is probable that the economic benefits will flow to the Company and the amount of dividend income
can be measured reliably).

(v) Other Income

Other Income represents income earned from the activities incidental to the business and is recognised when the right
to receive the income is established as per the terms of the contract.

j. Leases

The Company assesses whether a contract contains a lease, at the inception of the contract. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the Company considers whether (i)
the contract involves the use of identified asset; (ii) the Company has substantially all of the economic benefits from the use
of the asset through the period of lease and (iii) the Company has right to direct the use of the asset.

(i) As a lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use
asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs
to dismantle and remove the underlying asset or to restore the site on which it is located, less any lease incentives
received.

Certain lease arrangements include the option to extend or terminate the lease before the end of the lease term.
The right-of-use assets and lease liabilities include these options when it is reasonably certain that the option will be
exercised.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the
earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives
of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the
right-of use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the
lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Companyâs
incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprises of fixed payments, including in-substance
fixed payments, amounts expected to be payable under a residual value guarantee and the exercise price under a
purchase option that the Company is reasonably certain to exercise & lease payments in an optional renewal period,
if the Company is reasonably certain to exercise an extension option.

The lease liability is subsequently measured at amortised cost using the effective interest method.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the
right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to
zero.

Lease liability and the right of use asset have been separately presented in the balance sheet and lease payments have
been classified as financing activities.

The Company has elected not to recognise right-of use assets and lease liabilities for short term leases that have a
lease term of less than or equal to 12 months with no purchase option and assets with low value leases. The Company
recognises the lease payments associated with these leases as an expense in statement of profit and loss over the lease
term. The related cash flows are classified as operating activities.

k. Taxes

(i) Current Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the
applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

(ii) Deferred Taxes

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities
are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary difference can be utilised.

Such deferred tax assets and liabilities are not recognised if the temporary differences arise from the initial recognition
of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition,
deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting year 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 recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realised, or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting year.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.

(iii) Current and Deferred Tax for the year

Current and Deferred tax are recognised in statement of profit and loss, except when they are relating to items that
are recognised in the other comprehensive income or directly in equity, in which case, the current and deferred tax
are also recognised in other comprehensive income or directly in equity respectively. Deferred tax assets and liabilities
are offset when they relate to income taxes levied by the same taxation authority and the relevant entity intends to
settle its current tax assets and liabilities on a net basis.

l. Investments in Subsidiaries, Joint Ventures and Associates

Investments in Subsidiaries and Associates are measured at cost as per Ind AS 27 - Separate Financial Statements.

m. Borrowing costs

Borrowing costs include interest expense calculated using the EIR on respective financial instruments measured at amortised
cost.

n. Foreign currencies

In preparing the financial statements, transactions in currencies other than the entityâs functional currency (foreign
currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. Foreign exchange gains
and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities
denominated in foreign currencies at year end exchange rates are generally recognised in the Statement of Profit and Loss.

Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at
the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign
currency are not retranslated.

Exchange differences on monetary items are recognised in the Statement of Profit and Loss in the period in which they arise.

o. Cash and cash equivalents

Cash and cash equivalent in Balance Sheet comprise of cash at bank, cash and cheques on hand and short-term deposits with
an original maturity of three months or less which are subject to insignificant risk of changes in value.

p. Statement of Cash Flow

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions
of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating,
investing and financing activities are segregated based on the activities of the Company.

q. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (CODM).

The Managing Director & CEO is identified as the Chief Operating Decision Maker (CODM) by the management of the Company.
CODM has identified only one operating segment of providing loans for purchase, construction, repairs renovation etc. and
has its operations entirely within India.

r. Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders
by the weighted average number of equity shares outstanding during the year. The weighted average numbers of equity
shares outstanding during the year are adjusted for events including a bonus issue, bonus element in right issue to existing
shareholders, share split, and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss after tax as adjusted for dividend, interest
and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares
divided by weighted average nos. of equity shares year which are adjusted for the effects of all dilutive potential equity
shares.

s. Exceptional Items

When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that
their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of such items
is disclosed separately as Exceptional items.

t. Dividend

Final dividend on equity shares are recorded as a liability on the date of the approval by the shareholders and interim
dividend are recorded as liability on the date of declaration by the Companyâs Board of Directors.

Mar 31, 2024

Note 18.1: As at March 31, 2024 : Secured, Redeemable Non-Convertible Debentures (NCDs) are secured by way of charge on identified receivables of the company, with an asset cover of at least 1 time.

As at March 31, 2023 : Secured, Redeemable Non-Convertible Debentures (NCDs) are secured by way of charge on identified receivables of the company, with an asset cover of at least 1 time.

The Company endeavours to diversify its borrowing mix by borrowing through Bank Loans, Commercial Paper, refinance from NHB & Non-Convertible Debenture (NCDs).

The Company was in preparedness for issuance of NCDs during FY 2023-2024. Considering the hike in interest rates during the year, the effective rate for borrowing through NCDs was substantially higher as compared to other sources of funding available to the Company and hence the Company has decided to defer NCD isuuance to the next Financial Year.

Note 18.2 Terms of repayment & rate of interest in case of Debt Securities.

Note 24.2 : Terms/ Rights attached to equity shares

The company has only one class of Equity shares having par value of ^ 10 each. Each holder of equity shares is entitled to one vote per share.

The holders of equity shares are entitled to dividends, if any, proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting.

In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts.

However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 24.4 : The Company has forfeited 53,800 Equity Shares on which amount originally paid up is ^ 2,69,000

Note 24.5 : During the period of five years immediately preceding the Balance Sheet date, the Company has not issued any equity shares without payment being received in cash or by way of bonus shares or shares bought back.

Note 37 : Financial Instruments Note 37.1 : Capital Management

The Companyâs objective, when managing Capital, is to safeguard the ability of the Company to continue as a going concern, maintain strong credit ratings and healthy capital ratios in order to support its business and to maximise shareholderâs value.

The capital of the Company comprises of Equity Share Capital, Share Premium, other equity reserves, a mix of debt securities and borrowings (other than debt securities). No changes have been made to the objectives, policies and processes from the previous year. However, they are under constant review by the Board.

The Management of the Company monitors the Regulatory capital by overviewing Debt Equity Ratio and makes use of the same for framing the business strategies.

Note 37.3 : Fair Value Measurement

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

The Company evaluates the significance of financial instruments and material accuracy of the valuations incorporated in the financial statements as they involve a high degree of judgment and estimation uncertainty in determining the carrying values of financial assets and liabilities at the balance sheet date. Fair value of financial instruments is determined using valuation techniques and estimates which, to the extent possible, use market observable inputs, but in some cases use non-market observable inputs. Changes in the observability of significant valuation inputs can materially affect the fair values of financial instruments. In determining the valuation of financial instruments, the Company makes judgments on the amounts reserved to cater for model and valuation risks, which cover both Level 2 and Level 3 instruments, and the significant valuation judgments in respect of Level 3 instruments.

Fair Value Hierarchy

In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained below.

Assets and liabilities carried at fair value or for which fair values are disclosed have been classified into three levels according to the observability of the significant inputs used to determine the fair values. Changes in the observability of significant valuation inputs during the reporting period may result in a transfer of assets and liabilities within the fair value hierarchy. The Company recognises transfers between levels of the fair value hierarchy when there is a significant change in either its principal market or the level of observability of the inputs to the valuation techniques as at the end of the reporting period.

Level 1 : inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

Level 2 : inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 : inputs are unobservable inputs for the asset or liability.

There were no transfers between Level 1, Level 2 and Level 3 during the year Valuation technique used to determine fair value Equity instruments

Equity instruments in non-listed entities are initially recognised at transaction price and re-measured (to the extent information is available) and valued on a case-by-case basis and classified as Level 3.

Valuation adjustments and other inputs and considerations

A one percentage point change in the unobservable inputs used in fair valuation of Level 3 financial assets does not have a significant impact in its value.

No valuation adjustments have been made to the prices/yields provided for valuation.

Financial Instruments not measured using Fair Value, i.e. measured using Amortized Cost/Cost

The following table is a comparison, by class, of the carrying amounts and fair values of the Companyâs financial instruments that are not carried at fair value in the financial statements. This table does not include the fair value of non-financial assets and nonfinancial liabilities.

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 Companyâs financial statements. These fair values were calculated for disclosure purposes only.

Government Securities

Government debt securities are financial instruments issued by sovereign governments and include long term bonds with fixed rate interest payments. These instruments are generally highly liquid and traded in active markets resulting in a Level 1 classification. When active market prices are not available, the Company uses discounted cash flow models with observable market inputs of similar instruments and bond prices to estimate future index levels and extrapolating yields outside the range of active market trading, in which instances the Company classifies those securities as Level 2. The Company does not have Level 3 government securities where valuation inputs would be unobservable.

Investment in Subsidiary

In the opinion of the Company, in case of subsidiary, the carrying value approximates the fair value.

Other Financial Assets and Liabilities

With respect to Bank Balances and Cash and Cash Equivalents, Loans, Other Financial Assets, Trade Payables and Other Financial Liabilities, the carrying value approximates the fair value.

Note 38 : Financial Instruments

Note 38 A : Financial Risk Management

Introduction

The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Companyâs financial risk management policy is set by the Board. While the Company is exposed to various types of risks, the most important among them are liquidity risk, interest rate risk, credit risk, regulatory risk and operational risk. The measurement, monitoring and management of risks remain a key focus area for the Company.

Risk Management Framework

In order to mitigate/transfer the risks, the Company has adopted a Risk Management Policy which provides a framework for identification, assessment, mitigation and reporting of risks.

Board level Risk Management Committee of the Company identifies, reviews and controls key risk areas, across the entire organization.

The role of the Risk Management Committee shall be:

1. review the risk management policies and system periodically and report to the Board.

2. ensure that the risk management system is established, implemented and maintained in accordance with this Policy.

3. assign the responsibilities to Chief Risk Officer of the Company in relation to risk identification and its management.

The Board shall be the ultimate Authority to approve the strategic plans and objectives for Risk Management and Risk Philosophy. The Company has exposure to following risks arising from the financial instruments:

Note 38.A.1 Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as loans, investments, balances with banks and other financials assets.

The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties. The Company ensures effective monitoring of credit facilities through a portfolio quality review framework.

The Company monitors and manages credit risk on loans at an individual borrower level. The credit risk for individual borrowers is being managed at portfolio level for Housing Loans. The Company has a structured and standardized credit approval process, which includes a well-established procedure of comprehensive credit appraisal. The Risk Management Policy addresses the recognition, monitoring and reporting of the Credit risk.

Companyâs customers for housing loans are primarily salaried and self-employed individuals. All retail loans are also subjected to risk based pricing wherein the individual cases are graded on a credit score linked to multiple parameters of appraisal.

The Companyâs credit officers evaluate credit proposals, basis factors such as the borrowerâs income & obligations, the loan-to-value ratio, Fixed obligation to income ratio and demographic parameters subject to regulatory guidelines.

Various process controls such as KYC Check, CERSAI database scrubbing, Credit Bureau Report analysis are undertaken prior to approval of a loan. In addition External agencies such as field investigation agencies facilitate a comprehensive due diligence process including visits to offices and homes, Panel Advocates confirmed that the title to the property to be mortgaged with GICHF are clear and marketable and free from all encumbrances, charges etc and Panel valuers are entrusted with the job of ascertaining the genuineness of market value of property as it is an important factor in determining the loan amount.

The loans are fully secured and have full recourse against the borrower. The Company has a equitable mortgage over the borrowers property. Wherever the state laws provide, the memorandum of deposit of title deeds are also registered.

Note 38.A.1 (I) Concentrations of credit risk

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions.

70% (Previous year 70%) of the Companyâs loan outstanding is from borrowerâs residing across 5 various states of India. The Company has taken a special contingency insurance policy to insured Borrowerâs collateral security.

Note 38.A.1 (II) Credit Risk Grading of loans and loss allowances

For effective risk Management, the company monitors its portfolio, based on product, underlying security and credit risk characteristics. The credit quality review process aims to allow the Company to assess the potential loss as a result of the risks to which it is exposed and take corrective actions.

The Company applies general approach to provide for credit losses prescribed by Ind AS 109, which provides to recognise 12-months expected credit losses where credit risk has not increased significantly since initial recognition and to recognise lifetime expected credit losses for financial instruments for which there has been significant increase in credit risk since initial recognition, considering all reasonable present and forward looking information, including that of forward looking.

Additionally, the Company evaluates risk based on staging as defined below:

The company categorises loan assets into stages based on the Days Past Due status:

- Stage 1: [0-31 days Past Due] It represents exposures where there has not been a significant increase in credit risk since initial recognition and that were not credit impaired upon origination.

- Stage 2: [32-90 days Past Due] The Company collectively assesses ECL on exposures where there has been a significant increase in credit risk since initial recognition but are not credit impaired. For these exposures, the Company recognises as a collective provision, a lifetime ECL (i.e. reflecting the remaining lifetime of the financial asset)

- Stage 3: [More than 90 days Past Due] The Company identifies, both collectively and individually, ECL on those exposures that are assessed as credit impaired based on whether one or more events, that have a detrimental impact on the estimated future cash flows of that asset have occurred.

The Company follows âsimplified approachâ for recognition of impairment loss allowance on Cash and Cash Equivalents, Bank Balances, Trade Receivables, and Other Financial Assets. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

The Management of the Company expects no defaults in the above mentioned financial assets and insignificant history of defaults has been observed by the Management in the previous years on such Financial Assets. Hence no ECL has been recognised on the above mentioned Financial assets as at the reporting date except other financials assets.

Note 38.A.1 (IV) Collateral and other credit enhancements

The Company is in the business of extending secured loans backed by mortgage of property (residential or commercial). The Company assesses and monitors value of the collaterals periodically on the basis of the internal policy. In case required, the Company also requests for additional collateral(s).

The Company after exploring all the possible measures, initiates action under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) against the mortgaged properties as a last resort to recover.

Housing Loans include loans amounting to ^ 30,341 Lakh (Previous Year ^ 34,452 Lakh) against which the company has taken possession (including symbolic possession) of the property under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and held such properties for disposal.

Note 38.A.2 Liquidity Risk

Liquidity risk is the risk resulting from an Organizationâs inability to meet its obligations as they become due, because of difficulty in liquidating assets (market liquidity risk) or in obtaining adequate funding. The assessment includes analysis of sources and uses of funds, an understanding of the funding markets in which the entity operates and an assessment of the efficacy of a contingency funding plan for events that could arise. Measuring and managing liquidity needs are vital for effective operations of Housing Finance Company. The Company has also constituted Board Level Asset Liability Management (ALM) Committee which measures not only the liquidity positions of Company on on-going basis but also examines how liquidity requirements are likely to revive under different scenarios.

Maturities of Financial Liabilities

The Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities for essential for an understanding of the timing of the cash flows.

(a) Contractual maturities of lease liabilities are on undiscounted basis.

Note 38.A.3 Market risk

Market risk is the risk that the fair value of future cash flow of financial instruments will fluctuate due to changes in the market variables such as interest rates, foreign exchange rates, equity prices resulting in a loss to earnings and capital.

The Companyâs exposure to market risk is primarily on account of interest rate risk, price risk and competitions risk. The Company do not have any exposure to foreign exchange rate.

Note 38.A.3 (I) Interest Rate Risk

Interest rate risk is the risk where changes in market interest rates might adversely affect the entityâs financial condition. The immediate impact of changes in interest rate is on the Net Interest Income (NII) i.e. Net Spread, which would be based on rising interest rate of borrowings and falling interest rate of loans.

The Company is also exposed to interest rate risk as it is into funding of Home Loans which are based on floating interest rates. The Company has Board Level Asset Liability Management (ALM) Committee which meets periodically to review the interest rate risk, asset profile and to identify short term liquidity gaps, if any and to take immediate corrective actions to bridge the same.

Note 38.A.3 (III) Competitions Risk

Competition Risk is the risk to the market share and profitability arising due to competition. It is present across all the businesses and across all the economic cycle with the intensity of competition risk varying due to several factors, like, barriers to entry, industry growth potential, degree of competition, etc.

The Companyâs business environment is characterized by increased youth population, growing economy, increased urbanization, Government incentives, acceptability of credit in society and rise in nuclear families. Due to all these reasons, the Housing Finance industry has seen a higher growth rate than overall economy and several other industries since past several years. This has led to increase in competition and in turn increased pressure on the existing Companies to maintain/grow market share and profitability. In order to mitigate the risk arising due to competition, the Company has customer centric approach coupled with state of art infrastructure including IT interface.

Note 40 : Employee Benefits :-

In compliance with the Indian Accounting Standard on âEmployee Benefitsâ (Ind AS 19), following disclosures have been made : Defined Contribution Plan:

(i) Pension Scheme

The Company makes contribution to Employeesâ Pension Scheme, 1995 for all employees and Employee State Insurance Scheme for all eligible employees. The Company has recognized ^ 28 Lakh (Previous year ^ 29 Lakh) for Employeesâ Pension Scheme in the Statement of Profit and Loss. The contributions payable by the Company are at rates specified in the rules of the schemes.

(ii) Provident Fund

An amount of ^ 475 Lakh (Previous year ^ 480 Lakh) has been charged to Statement of Profit and Loss on account of this defined benefit scheme.

Defined Benefit Plans:

(i) Gratuity Plan

Gratuity is payable to all the members at the rate of 15 days salary for each completed year of Service.

The Indian Parliament has approved the Code on Social Security, 2020, which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in the standalone financial statements in the period in which the code becomes effective and related rules are published.

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

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

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

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

Note 41 Commitments and Contingent Liabilities :

a) Commitments :

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is ^ 235 lakh (Previous year ^ 312 lakh)

ii) As at the balance sheet date there were undrawn credit commitments of ^ 9,501 lakh & ^ 6,765 Lakh (Previous Year ^ 8,045 lakh & ^ Nil) representing the loan amounts sanctioned but partly un-disbursed and sanctioned but completely un-disbursed respectively.

b) Contingent Liabilities :

i) Contingent Liabilities : With respect to pending Income Tax disputes of ^ 212 lakh (Previous Year ^ 212 lakh). The Company has preferred appeal/s against the same and has made payments under protest.

ii) Bank Guarantees:

- ^ 150 lakh given in favour of Kotak Mahindra Life Insurance Company Ltd. in lieu of premium deposit for âKotak Term Group Planâ Policy contract to avail Term Group Plan cover for borrowers. (Previous Year -^ 150 lakh).

- ^ 50 lakh given in favour of Aditya Birla Sun Life Insurance Company Ltd. in lieu of premium deposit for âAditya Birla Sun Life Insurance Group Asset Assure Planâ policy contract to avail Credit Life Group Plan Cover for borrowers (Previous Year - ^ 50 lakh)

iii) Claim against the Company not acknowledged as debt:

Total 247 Cases (Previous Year 236 Cases) have been filed against the Company in various courts during earlier years, however, the amount is not ascertainable.

Note 43 Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM regularly monitors and reviews the operating result of the whole Company as one segment of âFinancingâ. Thus, as defined in Ind AS 108 âOperating Segmentsâ, the Companyâs entire business falls under this one operational segment.

Further, the Company operates in a single business segment ie. financing, which has similar risks and returns taking into account the organisational structure and the internal reporting systems. No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the companyâs total revenue in year ended March 31, 2024 or March 31, 2023. The Company operates in single geography i.e. India and therefore geographical information is not required to be disclosed separately.

Note: Due to the voluminous nature of transactions and sensitivity of the information, individual borrower wise details, in whose name the title deeds are held are not disclosed.

(ii) Details of benami property held

There are no proceedings which have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(iii) Borrowing secured against current assets

The company has borrowings (including debt securities) from banks on the basis of security of book debts.

(iv) Wilful defaulter

The Company has not been declared as Wilful Defaulter by any Bank or Financial Institution or other Lender.

Note: LCR computation is based on Management estimation of future inflows and outflows and not subjected to audit by auditors.

(ix) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement

(x) Utilisation of borrowed funds and share premium

During the financial year ended March 31, 2024 and March 31, 2023, other than the transactions undertaken in the normal course of business and in accordance with extant regulatory guidelines as applicable.

(i) . No funds (which are material either individually or in the aggregate) 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 person or entity, including foreign entity (âIntermediariesâ), 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 (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(ii) . No funds (which are material either individually or in the aggregate) have been received by the Company from any

person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(xi) Undisclosed Income

The Company does not have any transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). Also, there are nil previously unrecorded income and related assets.

(xii) Details of crypto currency or virtual currency

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

Note 46 There are no loans transferred / acquired during the quarter and year ended March 31, 2024 and March 31, 2023 under the RBI Master direction on Transfer of Loan Exposure dated September 24, 2021.

** Refer Circular issued by Reserve Bank of India, no. RBI/2021-2022/125 DOR.STR.REC.68/21.04.048/2021-22 dated November 12, 2021.

* represents loan amounts sanctioned but un-disbursed.

In terms of the requirement as per RBI notification no. RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020 on Implementation of Indian Accounting Standards, Housing Finance Companies (HFCs) are required to create an impairment reserve for any shortfall in impairment allowances under Ind AS 109 and Income Recognition, Asset Classification and Provisioning (IRACP) norms (including provision on standard assets). The impairment allowances under Ind AS 109 made by the company exceeds the total provision required under IRACP (including standard asset provisioning), as at March 31,2024 and March 31, 2023 and accordingly, no amount is required to be transferred to impairment reserve.

Note 48 Disclosure as required under RBI Circular No. RBI/2020-21/16 DOR.No.BP.BC/3/21.04.048/2020-21 dated August 6, 2020 in relation of the Resolution Framework for COVID-19-related Stress:

Note 49

Disclosure in terms of in accordance with Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 dated February 17, 2021 issued by the Reserve Bank of India read with RBI Circular No. RBI/DNBS/2016-17/49 Master Direction DNBS. PPD.01/66.15.001/2016-17 on Monitoring of frauds in NBFCs.

There were 98 cases (Previous Year 59 cases) of frauds reported during the year where amount involved was ^ 1,567 Lakh (Previous Year ^ 1,055 Lakh).

Note 50

Disclosures as per the Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021: The following additional disclosures have been given in terms of the Notification RBI/2020-21/73 DOR.FIN.HFC.CC.No.120/03.10.136/2020-21 dated February 17, 2021.

The below mentioned notes have been prepared as per Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (âthe Actâ) read with Companies (Indian Accounting Standards) Rules, 2015 (âIND ASâ).

Note 50.1. Public disclosure on liquidity risk in terms of Guidelines on Liquidity Risk Management Framework.

VI Institutional set-up for Liquidity Risk Management

The Board of Directors of the Company has an overall responsibility and oversight for the management of all the risks, including liquidity risk, to which the Company is exposed to in the course of conducting its business. The Board constituted Risk Management Committee (RMC) oversee the effective supervision, evaluation, monitoring and review of various aspects and types of risks, including liquidity risk, faced by the Company. Further, the Board constituted Asset Liability Committee (ALCO) acts as a strategic decision-making body for the asset-liability management of the Company from risk return perspective and within the risk appetite and guard-rails approved by the Board. The ALCO, which measures not only the liquidity positions of Company on on-going basis but also examines how liquidity requirements are likely to revive under different scenarios.

Note 51 Disclosures as per the Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021: The following additional disclosures have been given in terms of the Notification RBI/2020-21/73 DOR.FIN.HFC.CC.No.120/03.10.136/2020-21 dated February 17, 2021 and Annex II referred in para 15A of the Master Direction - Non-banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.

Qualitative Disclosure

Liquidity Coverage Ratio (LCR) aims to ensure that NBFCâs maintains an adequate level of unencumbered High Quality Liquidity Asset (HQLAs) that can be converted into cash to meet liquidity needs for a 30 calendar day time horizon under a significantly severe liquidity stress scenario.

HQLA comprises of unencumbered Bank Balances and Fixed Deposit, Cash in Hand, Liquid Investments after appropriate haircut. The Company maintains sufficient balance of Cash and Bank Balance and liquid Investments which can be easily liquidated in times of stress.

Liquidity Coverage Ratio results drive by inflow of next 30 days receivable on loans and advances and corresponding outflow over the next 30 days towards borrowings and other liabilities.

Note : 1) Unweighted values must be calculated as outstanding balances maturing or callable within 30 days (for inflows

and outflows).

2) Weighted values must be calculated after the application of respective haircuts (for HQLA) and stress factors on inflow and outflow.

Note 52: Other Disclosure as per the Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021

c Details of financing of parent company products: The Company does not have any exposure in financing of parent company products.

d Details of Single Borrower Limit ( SGL) / Group Borrower Limit (GBL ) exceeded by the HFC : The Company has not lent / invested / lent and invested in any borrower / group of borrower in excess of limits prescribed by the RBI.

e Unsecured Advances: The Company has not given any unsecured advances against intangible securities such as rights, licenses, authority etc. as collateral security. Unsecured advances reflecting in Note 6 represent amounts where the property against which advances have been granted are subject to property fraud by the borrowers, which was detected post disbursement of such advances or diminution in value of property identified subsequently.

Note 52.2 Miscellaneous:

Details of registration obtained from other financial sector regulators: The Company was incorporated under the Companies Act, 1956 on December 12, 1989 and is governed by Companies Act, 2013. It is regulated by NHB/RBI and registered under section 29A of the NHB Act, 1987. Company obtained registration (Corporate Agency License) from Insurance Regulatory and Development Authority of India. Renewal of registration of the Company as LEI (Legal Entity Identifier) as required by RBI.

D There is no breach of covenant of loan availed or debt securities issued.

E Divergence in Asset Classification and Provisioning

In terms of the RBI circular no. DOR.ACC.REC. No.20/21.04.018/2022-23 dated April 19, 2022, NBFCs are required to disclose the divergences in asset classification and provisioning consequent to NHBâs (in case of HFCs) annual supervisory process in their notes to accounts to the financial statements, wherever either (a) the additional provisioning requirements assessed by NHB exceed 5% of the reported net profits before tax and impairment loss on financial instruments or (b) the additional gross NPAs identified by NHB exceed 5% of the published reported gross NPAs for the reference period, or both. Based on the conditions relating to applicable limits mentioned in RBI circular, no disclosure on divergence in asset classification and provisioning for NPAs is required with respect to NHBâs supervisory process for the year ended March 31, 2023.

Note 55 Risk Based Internal Audit

Disclosure in terms of RBI Circular No. DoS.CO.PPG./SEC/05/11.01.005/2020-21 dated February 03, 2021 on Risk-Based Internal Audit (RBIA)

In accordance with the aforesaid circular and Guidelines on Risk Based Internal Audit System for NBFC, the internal audit function shall not be outsourced, except in those cases where necessary expertise does not exist within the Audit Department. The Company has an in-house Internal Audit Department (IAD). However, due to scarcity of manpower and as suggested by the guidelines, the Company is hiring experts / consultants, where required, on a contractual basis to conduct internal audit of various branches, however the ownership of audit reports in all cases rest with regular functionaries of the internal audit function.

Note 56 The previous year figures have been reclassified / regrouped / restated to conform to current yearâs classification. Amounts of current/previous year have been rounded off to nearest Rupees in lakh, wherever required.

Mar 31, 2023

g. Provisions, Contingent Liabilities and contingent assets

Provisions are recognised when there is 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 there is a reliable estimate of the amount of the obligation.

When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent liabilities are disclosed 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 that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements. Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

When there is a possible obligation or a present obligation, in respect of which the likelihood of outflow of resources is remote no provision or disclosure is made.

h. Commitments

Commitments are future liabilities for contractual expenditure. The commitments are classified and disclosed as follows:

i. The estimated amount of contracts remaining to be executed on capital account and not provided for; and

ii. Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of the Management.

i. Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured and there exists reasonable certainty of its recovery.

(i) Income on loans

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time proportion basis, by reference to the principal outstanding and applicable effective interest rate (EIR).

EIR is the rate that discounts estimated future cash receipts through the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset. EMI commences once when the entire loan is disbursed. Pending Commencement of EMIs, Pre-EMI interest is payable every month.

The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any discount or premium on acquisition, fees and costs that are an integral part of the asset. The Company recognises interest income using a rate of return that represents the best estimate of a constant rate of return over the expected life of the loan.

Interest income is calculated by applying the EIR to the gross carrying amount of non-credit impaired financial assets (i.e. at the amortised cost of the financial asset before adjusting for any expected credit loss allowance). For credit-impaired financial assets, interest income is calculated by applying the EIR to the gross carrying amount less the allowance for expected credit losses.

Penal Interest and other related charges are recognised as income only when revenue is virtually certain which generally coincides with receipts.

(ii) Fees and Commission Income

Fee and commission income include fee other than those that are an integral part of EIR. The fee included in this part of the Companyâs Statement of Profit and Loss include, among other things, fee charged for servicing a loan. The Company recognises the fee and commission income in accordance with the terms of the relevant contract / agreement and when it is probable that the Company will collect the consideration.

Fee and commission expenses in respect of services availed are recognised as the services are received.

(iii) Investment Income

Gains/ losses on the sale of investments are recognized in the Statement of Profit and Loss on the trade date. Gain or loss on the sale of investments is determined after consideration of cost on a first in first out (FIFO) basis.

Income from interest on bank deposits and other interest bearing securities is recognized on the time proportion basis taking into account the amount outstanding and the rate applicable.

(iv) Dividend Income

Dividend income from investments is recognised when the Companyâs right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of dividend income can be measured reliably).

(v) Other Income

Other Income represents income earned from the activities incidental to the business and is recognised when the right to receive the income is established as per the terms of the contract.

Leases

The Company assesses whether a contract contains a lease, at the inception of the contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company considers whether (i) the contract involves the use of identified asset; (ii) the Company has substantially all of the economic benefits from the use of the asset through the period of lease and (iii) the Company has right to direct the use of the asset.

(i) As a lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the site on which it is located, less any lease incentives received.

Certain lease arrangements include the option to extend or terminate the lease before the end of the lease term. The right-of-use assets and lease liabilities include these options when it is reasonably certain that the option will be exercised.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Companyâs incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprises of fixed payments, including in-substance fixed payments, amounts expected to be payable under a residual value guarantee and the exercise price under a purchase option that the Company is reasonably certain to exercise & lease payments in an optional renewal period, if the Company is reasonably certain to exercise an extension option.

The lease liability is subsequently measured at amortised cost using the effective interest method.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Lease liability and the right of use asset have been separately presented in the balance sheet and lease payments have been classified as financing activities.

The Company has elected not to recognise right-of use assets and lease liabilities for short term leases that have a lease term of less than or equal to 12 months with no purchase option and assets with low value leases. The Company recognises the lease payments associated with these leases as an expense in statement of profit and loss over the lease term. The related cash flows are classified as operating activities.

k. Taxes

(i) Current Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

(ii) Deferred Taxes

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary difference can be utilised.

Such deferred tax assets and liabilities are not recognised if the temporary differences arise from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting year 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 recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised, or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting year.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

(iii) Current and Deferred Tax for the year

Current and Deferred tax are recognised in statement of profit and loss, except when they are relating to items that are recognised in the other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

l. Investments in Subsidiaries, Joint Ventures and Associates

Investments in Subsidiaries and Associates are measured at cost as per Ind AS 27 - Separate Financial Statements.

m. Borrowing costs

Borrowing costs include interest expense calculated using the EIR on respective financial instruments measured at amortised cost.

n. Foreign currencies

In preparing the financial statements, transactions in currencies other than the entityâs functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in the Statement of Profit and Loss.

Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in the Statement of Profit and Loss in the period in which they arise.

o. Cash and cash equivalents

Cash and cash equivalent in Balance Sheet comprise of cash at bank, cash and cheques on hand and short-term deposits with an original maturity of three months or less which are subject to insignificant risk of changes in value.

p. Statement of Cash Flow

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities are segregated based on the activities of the Company.

q. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM).

The Managing Director & CEO is identified as the Chief Operating Decision Maker (CODM) by the management of the Company. CODM has identified only one operating segment of providing loans for purchase, construction, repairs renovation etc. and has its operations entirely within India.

r. Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average numbers of equity shares outstanding during the year are adjusted for events including a bonus issue, bonus element in right issue to existing shareholders, share split, and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares divided by weighted average nos. of equity shares year which are adjusted for the effects of all dilutive potential equity shares.

s. Exceptional Items

When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of such items is disclosed separately as Exceptional items.

t. Dividend

Final dividend on equity shares are recorded as a liability on the date of the approval by the shareholders and interim dividend are recorded as liability on the date of declaration by the Companyâs Board of Directors.

2.3 Recent Pronouncements

Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

Ind AS 1 - Presentation of Financial Statements

This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

This amendment has introduced a definition of âaccounting estimatesâ and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023.

Ind AS 12 - Income Taxes

This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023.

Note 36.3 : Fair Value Measurement

Fair Value Hierarchy

In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained below.

Level 1 : inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

Level 2 : inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and

Valuation methodologies of financial instruments not measured at fair value

Government Securities

Investment in Subsidiary

In the opinion of the Company, in case of subsidiary, the carrying value approximates the fair value.

Other Financial Assets and Liabilities

With respect to Bank Balances and Cash and Cash Equivalents, Loans, Other Financial Assets, Trade Payables and Other Financial Liabilities, the carrying value approximates the fair value.

Note 37 : Financial Instruments

Note 37 A : Financial Risk Management

Introduction

Risk Management Framework

In order to mitigate/transfer the risks, the Company has adopted a Risk Management Policy which provides a framework for identification, assessment, mitigation and reporting of risks.

Board level Risk Management Committee of the Company identifies, reviews and controls key risk areas, across the entire organization.

The role of the Risk Management Committee shall be:

1. review the risk management policies and system periodically and report to the Board.

2. ensure that the risk management system is established, implemented and maintained in accordance with this Policy.

3. assign the responsibilities to Chief Risk Officer of the Company in relation to risk identification and its management.

Note 37.A.1 Credit Risk

The retail loans are fully secured and have full recourse against the borrower. The Company has a equitable mortgage over the borrowers property. Wherever the state laws provide, the memorandum of deposit of title deeds are also registered.

Note 37.A.1 (I) Concentrations of credit risk

70% (Previous year 71%) of the Companyâs loan outstanding is from borrowerâs residing across 5 various states of India. The Company has taken a special contingency insurance policy to insured Borrowerâs collateral security.

Note 37.A.1 (II) Credit Risk Grading of loans and loss allowances

Additionally, the Company evaluates risk based on staging as defined below:

The company categorises loan assets into stages based on the Days Past Due status:

- Stage 1: [0-31 days Past Due] It represents exposures where there has not been a significant increase in credit risk since initial recognition and that were not credit impaired upon origination.

Housing Loans include loans amounting to ^ 34,452 Lakh (Previous Year ^ 43,731 Lakh) against which the company has taken possession (including symbolic possession) of the property under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and held such properties for disposal

Note 37.A.2 Liquidity Risk

The Companyâs exposure to market risk is primarily on account of interest rate risk, price risk and competitions risk. The Company do not have any exposure to foreign exchange rate

Note 37.A.3 (I) Interest Rate Risk

Note 38 : Related Party Disclosures

As per the Indian Accounting Standard on âRelated Party Disclosuresâ (Ind AS 24), details of related parties, nature of the relationship, with whom company has entered transactions. All these transactions with related parties were carried out in ordinary course of business and on armâs length basis.

Note 39 : Employee Benefits :-

In compliance with the Indian Accounting Standard on âEmployee Benefitsâ (Ind AS 19), following disclosures have been made : Defined Contribution Plan:

(i) Pension Scheme

The Company makes contribution to Employeesâ Pension Scheme, 1995 for all employees and Employee State Insurance Scheme for all eligible employees. The Company has recognized ^ 29 Lakh (Previous year ^ 29 Lakh) for Employeesâ Pension Scheme in the Statement of Profit and Loss. The contributions payable by the Company are at rates specified in the rules of the schemes.

(ii) Provident Fund

An amount of ^ 480 Lakh (Previous year ^ 390 Lakh) has been charged to Statement of Profit and Loss on account of this defined benefit scheme.

Defined Benefit Plans:

(i) Gratuity Plan

Gratuity is payable to all the members at the rate of 15 days salary for each completed year of Service.

Note 40 Commitments and Contingent Liabilities :

a) Commitments :

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is ^ 312 lakh (Previous year ^ 536 lakh)

ii) As at the balance sheet date there were undrawn credit commitments of ^ 8,045 lakh (Previous Year ^ 9,278 lakh) representing the loan amounts sanctioned but partly un-disbursed.

b) Contingent Liabilities :

i) Contingent Liabilities : With respect to pending Income Tax disputes of ^ 212 lakh (Previous Year ^ 195 lakh). The Company has preferred appeal/s against the same and has made payments under protest.

ii) Bank Guarantees:

- ^ Nil given in favour of Future Generali India Life Insurance Company Ltd. in lieu of premium deposit for âFuture Generali Loan Suraksha Planâ policy contract to avail Credit Life Group Plan Cover for borrowers (Previous Year - ^ 100 lakh).

iii) Claim against the Company not acknowledged as debt:

Total 236 Cases have been filed against the Company in various courts during earlier years, however, the amount is not ascertainable.

Note 42 Segment Reporting:

Further, the Company operates in a single business segment ie. financing, which has similar risks and returns taking into account the organisational structure and the internal reporting systems. No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the companyâs total revenue in year ended March 31, 2023 or March 31, 2022. The Company operates in single geography i.e. India and therefore geographical information is not required to be disclosed separately.

(ix) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement

(x) Utilisation of borrowed funds and share premium

During the financial year ended March 31, 2023 and March 31, 2022, other than the transactions undertaken in the normal course of business and in accordance with extant regulatory guidelines as applicable.

(i) . No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either

(ii) . No funds (which are material either individually or in the aggregate) have been received by the Company from any

(xi) Undisclosed Income

(xii) Details of crypto currency or virtual currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2023 and March 31, 2022.

Note 45

There are no loans transferred / acquired during the quarter and year ended March 31, 2023 and March 31, 2022 under the RBI Master direction on Transfer of Loan Exposure dated September 24, 2021.

Note 48

Disclosure in terms of in accordance with Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 dated February 17, 2021 issued by the Reserve Bank of India read with RBI Circular No. RBI/ DNBS/2016-17/49 Master Direction DNBS. PPD.01/66.15.001/2016-17 on Monitoring of frauds in NBFCs.

There were 59 cases (Previous Year 36 cases) of frauds reported during the year where amount involved was ^ 1,055 Lakh (Previous Year ^ 1,874 Lakh).

Note 49

Pursuant to the RBI circular dated November 12, 2021 âPrudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances - Clarificationsâ, the Company has implemented the requirements and aligned its definition of default accordingly during the quarter ended December 31, 2021 . On February 15, 2022, RBI allowed deferment till September 30, 2022 of para 10 of the above circular pertaining to upgrade of non-performing assets. However, the Company has not opted for this deferment.

Note 50

Note 55

i) Risk Based Internal Audit

Disclosure in terms of RBI Circular No. DoS.CO.PPG./SEC/05/11.01.005/2020-21 dated February 03, 2021 on Risk-Based Internal Audit (RBIA)

ii) Scale Based Regulation

Disclosure in terms of RBI Circular No. RBI/2021-22/112/DOR.CRE.REC.No.60/03.10.001/2021-22 dated October 22, 2021on Scale Based Regulation (SBR).

In accordance with the aforesaid circular, all NBFCs in the category of middle layer are required to make a thorough internal assessment of the need for capital, commensurate with the risks in their business i.e. Internal Capital Adequacy Assessment Process (ICAAP), which should be on similar lines as ICAAP prescribed for commercial banks under Pillar 2. The Company is in the process of appointing a consultant for designing the Enterprise Risk Management (ERM) framework including the assessment of ICAAP to comply with the aforesaid RBI Circular.

Note 56

The COVID-19 pandemic has impacted economic activity during the last two fiscal years. Currently, while the number of new COVID-19 cases have reduced significantly and the Government of India has withdrawn COVID-19 related restrictions, the future trajectory of the pandemic may have an impact on the results of the Company.

Note 57

The previous year figures have been reclassified / regrouped / restated to conform to current yearâs classification. Amounts of current/previous year have been rounded off to nearest Rupees in lakh, wherever required.

As per our report attached of even date

For Chandabhoy & Jassoobhoy For and on behalf of the Board of Directors

Chartered Accountants

Ambesh Dave Devesh Srivastava Paul Lobo

Partner Chairman Managing Director & CEO

DIN: 08646006 DIN: 09787223

Varsha Godbole Nutan Singh

SVP & Chief Financial Officer Company Secretary

ACS No. : 27436

Place : Mumbai

Date : May 17, 2023 Date : May 17, 2023

Mar 31, 2018

Note 1.1:

Terms/ Rights attached to equity shares

The company has only one class of Equity shares having par value of Rs.10 each.

Each holder of equity shares is entitled to one vote per share.

The holders of equity shares are entitled to dividends,if any,proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting.

In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaning assets of the company, after distribution of all preferential amounts.

However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

a) As per Section 29C(1) of National Housing Bank Act 1987, the Company is required to transfer atleast 20% of its Net profit every year to a reserve before any dividend is declared.For this purpose any Special Reserve created by the Company under Section 36(1)(viii) of the Income Tax Act,1961 is considered to be an eligible transfer.

b) The Company has transferred an amount of Rs.5,190 Lakhs(Previous Year Rs.4,205 Lakhs) to Special Reserve in terms of Section 36(1)(viii) of the Income TaxAct,1961.

The NCD are redeemable at par.The NCD are secured by way of first charge on book-debts equivalent to loan outstanding and mortgage on immovable property.The NCD are reedeemable on April 23,2018.

For Non Current portion of Secured Long Term Borrowings Refer Note 4 Note 8.2 :

The Company has transferred Rs.12.66 Lakhs(Previous YearRs.10.88 Lakhs) to Investor Education and Protection Fund during the year.

Note 2.1 :

According to the amended Companies (Accounting Standard) Rules, 2016, the proposed dividend of Rs.2,962 Lakhs (Previous Year Rs.2,693 Lakhs) and dividend distribution tax thereon of Rs.609 Lakhs (Previous Year Rs.548 Lakhs) are not recognised as liability as at March 31, 2018. However, the same will be recognised as liability on approval of shareholders at ensuing Annual General Meeting. Due to such change, Current liability is lower by Rs.3,571 Lakhs (Previous Year Rs.3,241 Lakhs) and Reserves & Surplus is higher to that extent.

Note 3.1 :

The Company has pledged one of its residential flat located at Mumbai, as collateral security against the Non convertible Debentures aggregating to Rs.4,500 Lakhs.

NOTE 4 NOTES FORMING PART OF THE ACCOUNTS:

1. Housing Loans are secured by:

a) Equitable mortgage of property and / or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:

a) With respect to pending Income Tax disputes of Rs.275 Lakhs (Previous Year - Rs.277 Lakhs). The company has preferred appeal/s against the same and also has made payments under protest.

b) Bank Guarantees:

i) Rs.150 Lakhs given in favor of Kotak Mahindra Life Insurance Company Ltd. in lieu of premium deposit for âKotak Term Group Planâ Policy contract to avail Term Group Plan cover for borrowers. (Previous Year - Rs.75 Lakhs).

ii) Rs.100 Lakhs given in favor of Future Generali India Life Insurance Company Ltd. in lieu of premium deposit for âFuture Generali Loan Suraksha Planâ policy contract to avail Credit Life Group Plan Cover for borrowers (Previous Year - Rs.50 Lakhs).

iii) Rs.50 Lakhs given in favor of Aditya Birla Sun Life Insurance Company Ltd. in lieu of premium deposit for âAditya Birla Sun Life Insurance Group Asset Assure Planâ policy contract to avail Credit Life Group Plan Cover for borrowers (Previous Year - Rs.50 Lakhs)

3. Housing Loans include loans amounting toRs. 12,444 Lakhs (Previous YearRs.8,553 Lakhs) against which the company has taken possession (including symbolic possession) of the property under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and held such properties for disposal.

4. Employee Benefits: Defined Contribution Plan:

The Company makes contribution to Employeesâ Pension Scheme, 1995 for all employees and Employee State Insurance Scheme for all eligible employees. The Company has recognized Rs.74 Lakhs (Previous yearRs. 21 Lakhs) for Employeesâ Pension Scheme and '' NIL (Previous yearRs.1 Lakhs) for Employee State Insurance Scheme in the Statement of Profit and Loss. The contributions payable by the Company are at rates specified in the rules of the schemes.

Defined Benefit Plans:

Provident Fund

An amount of Rs.130 Lakhs (Previous year Rs.167 Lakhs) has been charged to Statement of Profit and Loss on account of this defined benefit scheme.

Leave Encashment

An amount of Rs.1 Lakhs (Previous year Rs.24 Lakhs) has been charged to Statement of Profit and Loss for this benefit scheme during the year.

Gratuity Plan

Gratuity is payable to all the members at the rate of 15 days salary for each completed year of Service.

The estimate of future salary increase considered in actuarial valuation, takes into account inflation, seniority, promotions and other relevant factors such as demand and supply in the employment market.

Expected contribution to Gratuity Fund in next year aggregates to Rs.263 Lakhs. (Previous YearRs.87 Lakhs)

6. Segment Reporting:

The companyâs main business is to provide loans for the purchase or construction of residential units. Hence, there are no separate reportable segments as per Accounting Standard - 17 on Segment Reporting as specified under Sec. 133 of the Companies Act, 2013.

7. Leases:

Company has entered into agreements for taking on lease basis certain office premises. Lease payments recognized in the Statement of Profit and Loss for the year is Rs.710 Lakhs (Previous YearRs.662 Lakhs).

Future lease rental obligation under non-cancellable leases:

a) Not later than one year: Rs.201 Lakhs (P.Y. Rs.136 Lakhs)

b) Later than one year and not later than five years. : Rs.536 Lakhs (P.Y. Rs.440 Lakhs)

c) Later than five years. : Rs.280 Lakhs (P.Y. Rs.141 Lakhs)

In compliance with the Accounting Standard - 22 relating to âAccounting for Taxes on Incomeâ as specified under Sec. 133 of the Companies Act, 2013, the Company has released Rs.710 Lakhs (Previous year charged Rs.302 Lakhs) in the Statement of Profit and Loss during the current financial year.

Outflow in respect of above provisions; both timing & certainty would depend on developments/ Outcome of these events.

11. The Classification ofAssets and Liabilities into Current and Non-Current is carried out based on their residual maturity profile as per the requirement of Schedule III to the Companies Act, 2013.

The following disclosures have been given in terms of NHBâS Notification No.NHB.HFC.CG- DIR.1/MD&CEO/2016, dated 9th February, 2017 and in terms of the circular no. NHB/ND/DRS/Pol-No.35/2010-11 dated October 11, 2010:

** According to the accounting standards specified under Sec. 133 of Companies Act, 2013, the proposed dividend of Rs.2,962 Lakhs and dividend distribution tax thereon of Rs.609 Lakhs are not recognized as liability as at 31st March, 2018 in the Financial Statements. However, the Company has reduced such proposed dividend and dividend distribution tax thereon, for determining capital funds for computing capital adequacy ratio as on 31st March, 2018.

a) Derivative transaction,

b) Securitization and assignment transaction,

c) Transaction of purchase and / or sale of non-performing financial assets,

d) Financing of parent company product, and

e) Finance of any unsecured advances against intangible securities such as rights, licenses, authority etc. as collateral security.

Accordingly, disclosures required under para no 3.5. as per NHB Notification No.NHB.HFC.CG- DIR.1/ MD&CEO/2016, dated 9th February, 2017 are not applicable.

VIII. The Company has not exceeded limit prescribed by NHB for Single Borrower Limit (SGL) and Group Borrower Limit (GBL).

IX. The Company has not obtained registration from any other financial sector regulators.

X. NHB has not raised any stricture or direction in their inspection carried out during the year. Further, NHB has not imposed any penalty on the Company during the year.

i) Names of Related Parties and description of relationship Key Management Personnel:

a. Shri. S. Gopakumar - Managing Director & CEO

b. Shri. S. Sridharan - Sr. Vice President, Company Secretary & CFO

ii) Details of transactions and balance at the year end with related parties: a. Shri S. Gopakumar - Managing Director & CEO:

There are no transactions other than sitting fees paid to Non-Executive Directors. During the year, Rs.12 Lakhs (Previous YearRs.9.40 Lakhs) were paid to Non-Executive Directors towards Sitting Fees. Details are as under:

XIV. During the year,

a) No prior period items occurred which has impact on Statement of Profit & Loss,

b) No change in any accounting policy, and

c) There were no circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties.

XV. The Company has no subsidiary. Hence, requirement of consolidated financial statement is not applicable to the Company.

XVII. Concentration of Public Deposits: The Company has not accepted any public deposits.

*Pursuant to the communication received from National Housing Bank (NHB), the additional provision made by the Company in the previous financial years towards the Standard assets and Non-Performing Assets are reclassified to provisions for Non-Performing Assets.

XXIII. The Company does not have any overseas assets and any off balance sheet Special

Purpose Vehicle (SPV), which requires to be consolidated as per accounting norms.

5. Underthe Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management and confirmation sought from suppliers on registration with specified authority under MSMED, principal amount, interest accrued and remaining unpaid and interest paid during the year to such enterprise is as follows;

6. Figures for previous year have been regrouped / reclassified wherever necessary.

7. Figures have been rounded off to the nearest Rupees in Lakhs.

Mar 31, 2017

Note 1.

Terms/Rights attached to equity shares

The Company has only one class of Equity shares having par value of Rs. 10 each.

Each holder of equity shares is entitled to one vote per share.

The holders of equity shares are entitled to dividends, if any, proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts.

However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 2. The Company has forfeited 53,800 Equity Shares on which amount originally paid up is Rs. 2,69,000

a) As per Section 29C(1) of National Housing Bank Act, 1987, the Company is required to transfer atleast 20% of its Net profit every year to a reserve before any dividend is declared. For this purpose any Special Reserve created by the Company under Section 36(1)(viii) of the Income Tax Act,1961 is considered to be an eligible transfer.

b) The Company has transferred an amount of Rs. 4,205 Lacs (Previous Year Rs. 3,372 Lacs) to Special Reserve in terms of Section 36(1) (viii) of the Income Tax Act, 1961.

The NCD are redeemable at par. The NCD are secured by way of first charge on book-debts equivalent to loan outstanding and mortgage on immovable property.

Note 3.

Security for term loans

i) Term loans are secured by way of first charge on book-debts equivalent to outstanding loan balance.

ii) Unless otherwise stated, loans are linked to MCLR rate of the respective bank.

There is no outstanding amount payable/overdue to Micro, Small and Medium Enterprises.

During the year no interest has been paid to such parties. This information has been determined to the extent, such parties have been identified on the basis of information available with the Company.

Note 4.

Non Current portion of Secured Long-Term Borrowings Refer Note 4 Note 8.2 :

The Company has transferred Rs. 10.88 Lacs (Previous Year Rs. 9.81 Lacs) to Investor Education and Protection Fund during the year.

Note 5.

According to the amended Companies (Accounting Standard) Rules, 2016, the proposed dividend of Rs. 2,693 Lacs and dividend distribution tax thereon of Rs. 548 Lacs are not recognized as liability as at March 31, 2017. However, the same will be recognized as liability on approval of shareholders at ensuing Annual General Meeting.

Due to such change, Current liability is lower by Rs. 3241 Lacs and Reserves & Surplus is higher to that extent.

Note 6.

The Company has pledged one of its residential flat located at Mumbai, as collateral security against the Non convertible Debentures aggregating to Rs. 4,500 Lacs.

(d) The Company is carrying aggregate provision for diminution in the value of investments of Rs. 979 lacs (Previous year Rs. 979 Lacs) (Refer Point No. 12 (III) of Note No. 24 (Notes forming part of Accounts)).

Note 7.

Loans due from Directors and their relatives aggregates to Rs. NIL (P.Y. Rs. 73.90 Lacs).

Note 8.

During the year Company has received Dividend amounting to Rs. 0.075 Lacs (Previous Year Rs. 0.10 lacs).

NOTE 9: NOTES FORMING PART OF THE ACCOUNTS:

10. Housing loans are secured by:

a) Equitable mortgage of property and / or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

11. Contingent Liabilities:

a) The Company has pending Income Tax disputes of Rs. 277 Lacs (Previous Year - Rs. 276 Lacs). It has preferred appeal/s against the same and also has made payments under protest.

b) Bank Guarantees:

i) Rs. 75 Lacs given in favor of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Group Plan" Policy contract to avail Term Group Plan cover for borrowers. (Previous Year - Rs. 75 Lacs).

ii) Rs. 50 Lacs given in favor of Future Generali India Life Insurance Company Ltd. in lieu of premium deposit for "Future Generali Loan Suraksha Plan" policy contract to avail Credit Life Group Plan Cover for borrowers (Previous Year - Rs. 50 Lacs).

iii) Rs. 50 Lacs given in favor of Birla Sun Life Insurance Company Ltd. in lieu of premium deposit for "Birla Sun Life Insurance Group Asset Assure Plan" policy contract to avail Credit Life Group Plan Cover for borrowers (Previous Year - Rs. NIL).

12. Housing Loans include loans amounting to Rs. 8,553 Lacs (Previous Year Rs. 5,166 Lacs) against which the Company has taken possession of the property (including symbolic possession) under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and held such properties for disposal.

13. Employee Benefits:

Defined Contribution plan:

The Company makes contribution to Employees'' Pension Scheme, 1995 for all employees and Employee State Insurance Scheme for all eligible employees. The Company has recognized Rs. 21 Lacs (Previous year Rs. 17 Lacs) for Employees'' Pension Scheme and Rs. 1 Lacs (Previous year Rs. 1 Lacs) for Employee State Insurance Scheme in the Statement of Profit and Loss. The contributions payable by the Company are at rates specified in the rules of the schemes.

Defined Benefit plans:

Provident Fund

An amount of Rs. 167 Lacs (Previous year Rs. 140 Lacs) has been charged to Statement of Profit and Loss on account of this defined benefit scheme.

Leave Encashment

An amount of Rs. 24 Lacs (Previous year Rs. 72 Lacs) has been charged to Statement of Profit and Loss for this benefit scheme during the year.

Gratuity Plan

Gratuity is payable to all the members at the rate of 15 days salary for each completed year of Service.

Expected contribution to Gratuity Fund in next year aggregates to Rs. 87 Lacs. (Previous Year Rs. 96 Lacs)

14. Segment Reporting:

The Company''s main business is to provide loans for the purchase or construction of residential units. Hence, there are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India and notified under the Companies (Accounting Standards) Amendment Rules, 2016.

15. Leases:

Company has entered into agreements for taking on lease basis certain office premises. Lease payments recognized in the Statement of Profit and Loss for the year is Rs. 662 Lacs (Previous Year Rs. 576 Lacs).

Future lease rental obligation under non-cancellable leases:

a) Not later than one year: Rs. 136 Lacs (Previous Year Rs. 94 Lacs)

b) Later than one year and not later than five years. : Rs. 440 Lacs (Previous Year Rs. 270 Lacs)

c) Later than five years. : Rs. 141 Lacs (Previous Year Rs. 28 Lacs)

9. Deferred tax Assets:

In compliance with the Accounting Standard relating to "Accounting for Taxes on Income" (AS-22) notified under the Companies (Accounting Standards) Amendment Rules, 2014, the Company has charged Rs. 302 Lacs (Previous year Rs. 551 Lacs) in the Statement of Profit and Loss during the current financial year.

Pursuant to National Housing Bank (NHB) Circular No. NHB/ (ND)/DRS/Policy Circular 65/2014-15 dated 22nd August 2014, the Company has opted to create Deferred Tax Liability (DTL) on the balance in Special Reserve under section 36(1) (viii) of Income-tax Act, 1961 as at March 31, 2014, over the period of 3 years starting from the financial year 2014-15, in a phased manner in the ratio of 25:25:50. Accordingly, expenditure, due to the creation of DTL on Special Reserve, amounting to Rs. 4,131 Lacs, being last tranche of 50%, not previously charged to the Statement of Profit and Loss, has now been adjusted directly from the General Reserves (Previous year Rs. 2,066 Lacs). Had this amount been charged to the Statement of Profit and Loss in accordance with the generally accepted accounting principles in India, the amount of Profit for the year had been lower by such amount.

Outflow in respect of above provisions; both timing & certainty would depend on developments/Outcome of these events.

16. The Classification of Assets and Liabilities into Current and Non-Current is carried out based on their residual maturity profile as per the requirement of Schedule III to the Companies Act, 2013.

17. Disclosure as required by National Housing Bank:

The following disclosures have been given in terms of NHB''s Notification No. NHB.HFC.CG-DIR.1/MD&CEO/2016, dated 9th February, 2017 and in terms of the circular no. NHB/ND/DRS/Pol-No.35/2010-11 dated October 11, 2010:

** According to the amended Companies (Accounting Standard) Rules, 2016, the proposed dividend of Rs. 2,693 Lacs and dividend distribution tax thereon of Rs. 548 Lacs are not recognized as liability as at 31st March, 2017 in the Financial Statements. However, the Company has reduced proposed dividend and dividend distribution tax thereon for determining capital funds for computing capital adequacy ratio as on 31st March, 2017.

IV. During the year the Company has not entered into any;

a) Derivative transaction,

b) Securitization and assignment transaction,

c) Financing of parent company product, and

d) Finance of any unsecured advances against intangible securities such as rights, licenses, authority etc. as collateral security.

V. Asset Liability Management:

Assets & Liabilities are classified & disclosed as per the guidelines issued by the NHB. Maturity pattern of certain items of assets and liabilities as at March 31, 2017

VIII. The Company has not exceeded limit prescribed by NHB for Single Borrower Limit (SGL) and Group Borrower Limit (GBL).

IX. The Company has not obtained registration from any other financial sector regulators.

X. NHB has not raised any stricture or direction in their inspection carried out during the year. Further, NHB has not imposed any penalty on the Company during the year.

XI. Related party Transactions: ( As per AS 18 - Related party disclosures)

(i) Names of Related Parties and description of relationship Key Management Personnel:

(a) Shri. Warendra Sinha - Managing Director & CEO (up to 07.11.2016)

(b) Shri. S. Gopakumar - Managing Director & CEO (from 08.11.2016)

XIV. During the year,

(a) no prior period items occurred which has impact on Statement of Profit & Loss,

(b) no change in any accounting policy,

(c) there were no circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties.

XV. The Company has no subsidiary Company. Hence, requirement of consolidated financial statement is not applicable to the Company.

XVII. Draw Down from Reserves:

Pursuant to NHB Circular No. NHB/ (ND)/DRS/Policy Circular 65/2014-15 dated 22nd August 2014, the Company has opted to create Deferred Tax Liability (DTL) on the balance in Special Reserve under section 36(1) (viii) of Income-tax Act, 1961 as at March 31, 2014, over the period of 3 years starting from the financial year 2014-15, in a phased manner in the ratio of 25:25:50.

Accordingly, during the year the Company has created DTL on such Special Reserve amounting to Rs. 4,131 Lacs, being last tranche of 50% by directly adjusting from the General Reserves (Previous year Rs. 2,066 Lacs).

XVIII. Concentration of public Deposits:

The Company has not accepted any public deposits.

*Pursuant to the communication received from National Housing Bank (NHB), the additional Provision made by the Company in the previous financial years towards the Standard assets and Non-Performing Assets are reclassified to provisions for Non-Performing Assets.

XXIV. The Company does not have any overseas assets and any off balance sheet special purpose vehicle (SPV) which requires to be consolidated as per accounting norms.

Disclosure made above is only for the complaints filed by customers directly on "Grievance Registration and Information Database System (GRIDS)" NHB online website having the following URL:http://grids.nhbonline.org.in

18. Disclosure on Specified Bank Notes:

During the year, the Company had specified Bank Notes or other denomination notes as defined in the MCA notification G.S.R 308 (E) dated March 31, 2017 on the details of specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December 30, 2016, the denomination wise SBNs and other notes as per the notification is given below.

*For the purposes of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number SO 3407 (E) dated the 8th November 2016.

19. Figures for previous year have been regrouped / reclassified wherever necessary.

20. Figures have been rounded off to the nearest Rupees in Lacs wherever necessary.

Mar 31, 2016

Note .1.

a) As per Section 29C(1) of National Housing Bank Act 1987, the Company is required to transfer at least 20% of its Net Profit every year to a reserve before any dividend is declared. For this purpose any Special Reserve created by the Company under Section 36(1)(viii) of the Income Tax Act, 1961 is considered to be an eligible transfer.

b) The Company has transferred an amount of Rs, 3,372 Lacs (Previous Year Rs, 2,856 Lacs) to Special Reserve in terms of Section 36(1)(viii) of the Income Tax Act, 1961.

Note 2.

For the year ended 31st March 2016, the Board of Directors has proposed a dividend of Rs, 5 per equity share (previous year Rs, 5 per equity share) on approval in consequent Annual General Meeting, the total dividend appropriation would be Rs, 3,241 lacs inclusive of Corporate Dividend Distribution Tax. (Previous year Rs, 3,241 Lacs inclusive of Corporate Dividend Distribution Tax.)

Note:

There is no outstanding amount payable/overdue to Micro and Small Enterprises.

During the year no interest has been paid to such partes. This information has been determined to the extent, such partes have been identified on the basis of information available with the Company.

1. Housing loans are secured by:

a) Equitable mortgage of property and/or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral Securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:

a) The Company has pending Income Tax disputes of Rs, 276 Lacs (Previous Year Â Rs, 326 Lacs). It has preferred appeal/s against the same and also has made payments under protest.

b) Bank Guarantees:

i) Rs, 75 Lacs given in favour of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Group Plan" Policy contract to avail Term Group Plan cover for borrowers. (Previous Year Â Rs, 75 Lacs).

ii) Rs, 50 Lacs given in favour of Future Generali India Life Insurance Company Ltd. in lieu of premium deposit for "Future Generali Loan Suraksha Plan" policy contract to avail Credit Life Group Plan Cover for borrowers (Previous Year - Rs, NIL).

3. During the year the Company has incurred expenditure on foreign travel amounting to Rs, NIL (Previous Year Rs, NIL).

4. Housing Loans include loans against which the company has commenced action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 including possession of properties and part recovery of auction proceeds aggregating to Rs, 5,166 Lacs (Previous Year Rs, 3,781 Lacs).

5. Employee Benefits:

Defined Contribution Plan:

The Company makes contribution to Employees'' Pension Scheme, 1995 for all employees and Employee State Insurance Scheme for all eligible employees to Defined contribution plans. The Company recognized Rs, 17 Lacs (Previous year Rs, 15 Lacs) for Employees'' Pension Scheme and Rs, 1 Lacs (Previous year Rs, 1 Lacs) for Employee State Insurance Scheme in the Statement of Profit and Loss. The contributions payable by the Company are at rates specified in the rules of the schemes.

Defined Benefit Plans:

Provident Fund

An amount of Rs, 140 Lacs (Previous year Rs, 102 Lacs) has been charged to Statement of Profit and Loss on account of this Defined benefit scheme.

Leave Encashment

An amount of Rs, 72 Lacs (Previous year Rs, 105 Lacs) has been charged to Statement of Profit and Loss for this benefit scheme during the year.

Gratuity Plan

Gratuity is payable to all the members at the rate of 15 days salary for each completed year of Service.

The estimate of future salary increase considered in actuarial valuation, takes into account inflation, seniority, promotions and other relevant factors such as demand and supply in the employment market.

6. Segment Reporting:

The Company''s main business is to provide loans for the purchase or construction of residential units. Hence, there are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) issued by the Instate of Chartered Accountants of India and notified under the Companies (Accounting Standards) Amendment Rules, 2014.

7. Deferred tax Assets:

In compliance with the Accounting Standard relating to "Accounting for Taxes on Income" (AS-22) notified under the Companies (Accounting Standards)Amendment Rules, 2014,the Company has charged Rs, 551 Lacs (Previous year has taken credit of Rs, 214 Lacs) in the Statement of Profit and Loss during the current financial year.

Pursuant to National Housing Bank (NHB) Circular No. NHB/(ND)/DRS/Policy Circular 65/2014-15 dated 22nd August, 2014, the Company has opted to create Deferred Tax Liability (DTL) on the balance in Special Reserve under Section 36(1)(viii) of Income-tax Act, 1961 as at 31st March, 2014, over the period of 3 years starting from the financial year 2014-15, in a phased manner in the rato of 25:25:50. Accordingly, expenditure, due to the creation of DTL on Special Reserve, amounting to Rs, 2,066 Lacs, not previously charged to the Statement of Profit and Loss, has now been adjusted directly from the General Reserves (Previous year Rs, 2,066 Lacs). Had this amount been charged to the Statement of Profit and Loss in accordance with the generally accepted Accounting principles in India, the amount of Profit for the year had been lower by such amount.

The estimated amount of expenditure to be adjusted directly from Reserve, due to non-creation of DTL on Special Reserve up to 31st March, 2014, for the financial year 2016-17 would be Rs, 4,131 Lacs.

Outlow in respect of above provisions; both tming & certainty would depend on developments/Outcome of these events.

8. Disclosure regarding provisions made for sub-standard, doubtul and loss assets and depreciation in investments as per the Prudential Norms (revised) contained in the National Housing Bank Guidelines.

9. The Classification of Assets and Liabilities into Current and Non-Current is carried out based on their residual maturity profile as per the requirement of Schedule III to the Companies Act, 2013.

10. Disclosure regarding penalty or adverse comments as per Housing Finance Companies (NHB) Directions, 2010. During the current financial year:

a) No penalty has been imposed by National Housing Bank on the Company.

b) NHB during their annual inspection had observed that the Company had overstated NOF & CRAR by Rs, 251 Lacs & 0.05%, respectively for the financial year 2013-14 due to negative amortization cases amounting to Rs, 1,828 Lacs not considered as NPA. This has no impact for the current financial year.

11. Disclosure in the Balance Sheet as per NHB Guidelines on Asset Liability Management (ALM) System for HFCs Â Guidelines (NHB/ND/DRS/Pol-No. 35/2010-11) dated 11th October, 2010.

Mar 31, 2015

Terms/ Rights attached to equity shares

The company has only one class of Equity shares having par value of Rs. 10 each. Each holder of equity shares is entitled to one vote per share.

The holders of equity shares are entitled to dividends,if any, proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting.

In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 1.1 :

Note 1.2 : The Company has forfeited 53,800 Equity Shares on which amount originally paid up is Rs. 2,69,000

a) As per Section 29C(1) of National Housing Bank Act 1987, the Company is required to transfer atleast 20% of its Net profit every year to a reserve before any dividend is declared. For this purpose any Special Reserve created by the Company under Section 36(1)(viii) of the Income Tax Act,1961 is considered to be an eligible transfer.

b) The Company has transferred an amount of Rs. 2856 Lacs (Previous Year Rs. 2860 Lacs) to Special Reserve in terms of Section 36(1)(viii) of the Income Tax Act,1961.

Note 1.3 :

For the year ended 31st March 2015, the Board of Directors has proposed a dividend of Rs. 5 per equity share (previous year Rs. 6 per equity share including one time Silver Jubilee dividend of Rs. 1 per equity share). On approval in consequent Annual General Meeting, the total dividend appropriation would be Rs. 3241 lacs (previous year Rs. 3780 lacs), inclusive of Corporate Dividend Distribtion Tax of Rs. 548 lacs (Previous year Rs. 549 lacs)

The NCD are redeemable at par. The NCD are secured by way of first charge on book-debts equivalent to loan outstanding and mortgage on immovable property.

The details of Non Convertible Redeemable Debentures (NCD''s) are as under:

There is no outstanding amount payable/overdue to Micro,Small and Medium Enterprises. During the year no interest has been paid to such parties.This information has been determined to the extent, such parties have been identified on the basis of information available with the Company.

Note 2.1 :

Non Current portion of Long Term Borrowings Refer Note 4 Note 8.2 :

a) The Company has transferred Rs. 6.91 Lacs (Previous Year Rs. 4.19 Lacs) to Investor Education and Protection Fund during the year.

b) The Interest Subsidy is payable to eligible borrowers on receipt from Government of India under 1% Interest Subvention scheme.

c) Application money received for allotment of securities and due for refund and interest accured thereon Rs. Nil (Previous year Rs. 0.06 Lacs)

NOTE:

In terms of the order of Honorable High Court, Bombay, the face value of equity shares of GIC Asset Management Company Ltd.has been reduced to Rs. 1.50 from Rs. 2 Consequently the Company has received a sum of Rs. 10.50 Lacs towards the reduction in face value of its investments.

(d) The Company is carrying aggregate provision for dimunition in the value of investments of Rs. 982 lacs (Previous year Rs. 992 Lacs) (Refer Point no.14 of Note no. 26 (Notes forming part of Accounts))

Note 3.1:

Interest Subsidy Receivable from Government of India under 1% Interest Subvention scheme.

Note 4.1 :

During the year Company has received Dividend amounting to Rs. 0.075 Lacs (Previous Year Rs. 0.125 Lacs)

1. Housing loans are secured bv:

a) Equitable mortgage of property and / or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:

a) The Company has pending Income Tax disputes of Rs. 326 Lacs (Previous Year - Rs. 472 Lacs). It has preferred appeal/s against the same and also has made payments under protest.

b) Bank Guarantee of Rs. 75 Lacs given in favour of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Group Plan" Policy contract to avail Term Group Plan cover for borrowers. (Previous Year - Rs. 75 Lacs)

3. Debts due from:

Company Secretary: Rs. NIL on account of Housing Loan. (Previous Year - Rs. 0.30 Lacs)

(Maximum balance due during the year Rs. 0.30 Lacs & Previous Year - Rs. 5 Lacs)

4. During the year the Company has incurred expenditure on foreign travel amounting to Rs. NIL (Previous Year Rs. 0.55 Lacs)

5. Housing Loans include loans against which the company has commenced action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 including possession of properties and part recovery of auction proceeds aggregating to Rs. 3,198 Lacs (Previous Year Rs. 2,394 Lacs)

6. Employee Benefits:

Defined Contribution Plan:

The Company makes contribution to Employees'' Pension Scheme, 1995 for all employees and Employee State Insurance Scheme for all eligible employees to defined contribution plans. The Company recognized Rs. 15 Lacs (Previous year Rs. 13 Lacs) for Employees'' Pension Scheme and Rs. 1 Lacs (Previous year Rs. 2 Lacs) for Employee State Insurance Scheme in the Statement of Profit and Loss. The contributions payable by the Company are at rates specified in the rules of the schemes.

Defined Benefit Plans:

Provident Fund

An amount of Rs. 102 Lacs (Previous year Rs. 95 Lacs) has been charged to Statement of Profit and Loss on account of this defined benefit scheme.

Leave Encashment

An amount of Rs. 105 Lacs (Previous year Rs. 24 Lacs) has been charged to Statement of Profit and Loss for this benefit scheme during the year.

Gratuity Plan

Gratuity is payable to all the members at the rate of 15 days salary for each completed year of Service.

The estimate of future salary increase considered in actuarial valuation, takes into account inflation, seniority, promotions and other relevant factors such as demand and supply in the employment market.

Expected contribution to Gratuity Fund in next year aggregates to Rs. 4 Lacs. (Previous Year Rs. 15 Lacs)

8. Segment Reporting:

The company''s main business is to provide loans for the purchase or construction of residential units. Hence, there are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India and notified under the Companies (Accounting Standards) Amendment Rules, 2011.

9. Related Party Transactions:

Names of Related Parties and description of relationship Key Management Personnel:

Managing Director & CEO - Shri Warendra Sinha (on deputation from GIC Re.)

10. Leases:

Company has entered into agreements for taking on lease basis certain office premises. Lease payments recognized in the Statement of Profit and Loss for the year is Rs. 475 Lacs (Previous Year Rs.382 Lacs)

Future lease rental obligation under these leases:

a) Not later than one year: Rs. 410 Lacs (PY. Rs. 274 Lacs)

b) Later than one year and not later than five years. : Rs. 1353 Lacs (PY. Rs. 800 Lacs)

c) Later than five years. : Rs. 146 Lacs (PY. Rs. 247 Lacs)

12. Deferred tax Assets:

In compliance with the Accounting Standard relating to "Accounting for Taxes on Income" (AS-22) notified under the Companies (Accounting Standards) Amendment Rules, 2011, the Company has charged Rs. 214 Lacs (Previous year has taken credit of Rs. 879 Lacs) in the Statement of Profit and Loss during the current financial year.

Pursuant to National Housing Bank (NHB) Circular No. NHB/(ND)/DRS/Policy Circular 65/2014-15 dated 22nd August 2014, the Company has opted to create 25% of Deferred Tax Liability (DTL) on the balance in Special Reserve under Section 36(1)(viii) of Income-tax Act, 1961 as at March 31, 2014, over the period of 3 years starting from the financial year 2014- 15, in a phased manner in the ratio of 25:25:50. Accordingly, expenditure, due to the creation of DTL on Special Reserve, amounting to Rs. 2,066 Lacs, not previously charged to the Statement of Profit and Loss, has now been adjusted directly from the Reserves. Had this amount been charged to the Statement of Profit and Loss in accordance with the generally accepted accounting principles in India, the amount of Profit for year had been lower by such amount.

The estimated amount of expenditure to be adjusted directly from Reserve, due to non creation of DTL on Special Reserve upto March 31,2014, forthe financial year2015-16 and 2016-17 would be Rs. 2,066 Lacs and Rs. 4,131 Lacs, respectively.

Major components of deferred tax assets and liabilities are as follows:

''Including Floating Provision

Outflow in respect of above provisions; both timing & certainty would depend on developments/Outcome of these events.

14. Disclosure regarding provisions made for substandard, doubtful and loss assets and depreciation in investments as per the Prudential Norms (revised) contained in the National Housing Bank Guidelines.

15. The Classification of Assets and Liabilities into Current and Non-Current is carried out based on their residual maturity profile as per the requirement of Schedule III to the Companies Act, 2013.

16. Disclosure regarding penalty or adverse comments as per Housing Finance Companies (NHB) Directions, 2010. During the current financial year:

a) No penalty has been imposed by National Housing Bank on the Company.

b) The Company has not received any adverse comments on regulatory compliances required to be disclosed.

17. Disclosure in the Balance Sheet as per NHB Guidelines on Asset Liability Management (ALM) System for HFCs - Guidelines (NHB/ND/DRS/Pol-No. 35/2010-11) dated October 11,2010.

Note: Advances and Investments under the head ''Assets'', are shown net off provisions as per the NHB Guidelines on Asset Liability Management (ALM) System for HFCs.

18. Disclosure in the Balance Sheet as per NHB Guidelines on Reserve Fund under Section 29C of the NHB Act, 1987 - Guidelines (NHB(ND)/DRS/Pol.Circular.61/2013-14) dated April 7, 2014.

19. For the year ended March 31,2015, the company has reworked the useful life on various fixed assets as prescribed in Part C of Schedule II of the Companies Act 2013. In respect of those assets whose remaining useful life as on April 01, 2014 is NIL, the same has been charged to the Statement of Profit & Loss. Due to above, depreciation charge for the year ended March 31, 2015 is higher by Rs. 196 Lacs.

20. Figures for previous year have been regrouped / reclassified wherever necessary.

21. Figures have been rounded off to the nearest Rupees in Lacs wherever necessary.

Mar 31, 2013

1. Housing loans are secured by :- a) Equitable mortgage of property and / or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:- a) The Company has pending Income Tax disputes of Rs.322 Lacs (Previous Year Â Rs.270 Lacs). It has preferred appeal/s against the same and also has made payments under protest.

b) Bank Guarantee of Rs.75 Lacs given in favour of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Group PlanÂ Policy contract to avail Term Group Plan cover for borrowers. (Previous Year Â Rs.75 Lacs)

c) In accordance with "Share transfer agreementÂ with ''Nomura Asset Management Strategic Investments Pte. Ltd.'' for sale of shares of LIC Mutual Fund Asset Management Company Ltd and LIC Mutual Fund Trustee Company Pvt. Ltd, the maximum contingent liability is Rs.1344 Lacs (Previous Year Rs.1344 Lacs).

3. Debts due from:

Directors : Rs.NIL on account of Housing Loan.

(Maximum balance due during the year Rs.24 Lacs)

Company Secretary : Rs.5 Lacs on account of Housing Loan.

(Maximum balance due during the year Rs.6 Lacs )

4. During the year the Company has incurred expenditure on foreign travel amounting to Rs.2 Lacs (Previous Year. Â Rs.3 Lacs).

5. Housing Loans include loans against which the company has commenced action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 including possession of properties and part recovery of auction proceeds aggregating to Rs.2236 Lacs. (Previous Year Rs.3175 Lacs)

6. EMPLOYEE BENEFITS (AS-15) :

Short Term employee benefi ts:

All employee benefi ts payable wholly within twelve months of rendering the service are classifi ed as short term employee benefi ts. These benefi ts are recognized as expense in statement of Profi t and Loss in the year in which the expense is incurred.

Long Term employee benefi ts:

Defi ned Contribution Plan:

Defi ned Contribution plans are Employees'' Pension Scheme, 1995 for all employees and Employee State Insurance Scheme and EDLI for eligible employees. An amount of Rs.15 Lacs has been charged to Statement of Profi t and Loss of these defi ned Contribution Plan.

Defi ned Benefi t Plans:

Provident Fund

The Company has formed a Provident Fund Trust for its employees. Contributions are made to the Trust, which is administered by the Trustees. Trust makes investments and also settles claims of members. Interest payable to the members shall not be at a rate lower than the statutory rate.

Contribution to Provident Fund is charged to accounts on accrual basis.

For this Scheme, contributions are made by the company, based on current salaries, to recognized Fund maintained by the company. In case of Provident fund scheme, contributions are also made by the employees.

An amount of Rs.75 Lacs (Previous Year Rs.58 Lacs) has been charged to Statement of Profi t and Loss account, on account of this defi ned benefi t scheme.

Gratuity Plan

The Company''s gratuity benefi t scheme is a defi ned benefi t plan. The Company''s net obligation in respect of the gratuity benefi t scheme is calculated by estimating the amount of future benefi t that employees have earned in return for their service in current and prior periods. For this purpose the Company has obtained qualifying group gratuity insurance policy from Life Insurance Corporation of India.

Leave Encashment

The Company provides benefi ts to its employees under the Leave Encashment pay plan which is a non-contributory defi ned benefi t plan. The employees of the Company are entitled to receive certain benefi ts in lieu of the annual leave not availed of during service, at the time of leaving the services of the Company. The benefi ts payable takes into account the Salary and the leave balance to the credit of the employees on the date of exit. An amount of Rs.12 Lacs (Previous Year Rs.12 Lacs) has been charged to Statement of Profi t and Loss for this benefi t scheme.

7. Segment Reporting (AS-17)

The company''s main business is to provide loans for the purchase or construction of residential units. Hence, there are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India and notifi ed under the Companies (Accounting Standards) Amendment Rules, 2011.

8. Related Party Transactions (AS -18)

Names of related parties and description of relationship:

Key Management Personnel : Managing Director - Shri. M Sivaraman,(on deputation from United India Insurance Company Ltd.)(For the period 01.04.2012 to 31.10.2012)

9. Leases (AS-19)

Company has entered into agreements for taking on leave and license basis certain Offi ce premises. Lease payments recognized in the statement of profi t and loss for the year is Rs.316 Lacs (Previous Year Rs.292 Lacs)

Future lease rental obligation under these leases:

i) Not later than one year: Rs.223 Lacs

ii) Later than one year and not later than fi ve years : Rs.707 Lacs

iii) Later than fi ve years : Rs.192 Lacs

10. Deferred Tax Assets (AS-22)

In compliance with the Accounting Standard relating to "Accounting for Taxes on IncomeÂ (AS-22) issued by the Institute of Chartered Accountants of India and notifi ed under the Companies (Accounting Standards) Amendment Rules, 2011, the Company has taken credit of Rs.909 Lacs in Statement of Profi t and Loss during the current fi nancial year.

11. Disclosure regarding provisions made for substandard, doubtful and loss assets and depreciation in investments as per the Prudential Norms (revised) contained in the National Housing Bank Guidelines. (Figures in brackets are for the previous year).

12. The Classifi cation of Assets and Liabilities into Current and Non-Current is carried out based on their residual maturity profi le as per the requirement of Revised Schedule VI to Companies Act, 1956.

13. Disclosure regarding penalty or adverse comments as per Housing Finance Companies (NHB) Directions, 2010. During the current fi nancial year the company has:-

a) neither been imposed any penalty by National Housing Bank.

b) nor received any adverse comments in writing from National Housing Bank on regulatory compliances.

c) observations during regular inspection have been replied.

14. Figures for previous year have been regrouped / reclassifi ed wherever necessary.

Mar 31, 2012

1. Housing loans are secured by :-

a) Equitable mortgage of property and / or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or anyother acceptable collateral securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:-

a) The Company has pending Income Tax disputes of Rs. 270 Lacs (Previous Year - Rs. 170 Lacs). It has preferred appeal/s against the same and also has made payments under protest.

b) Bank Guarantee of Rs. 75 Lacs given in favour of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Group Plan" Policy contract to avail Term Group Plan cover for borrowers. (Previous Year - Rs. 75 Lacs).

c) In accordance with "Share transfer agreement" with 'Nomura Asset Management Strategic Investments Pte. Ltd.' for sale of shares of LIC Mutual Fund Asset Management Company Ltd. and LIC Mutual Fund Trustee Company Pvt. Ltd., the maximum contingent liability is Rs. 1,344 Lacs.

3. Debts due from:

Directors Rs. 24 Lacs on account of Housing Loan.

(Maximum balance due during the year Rs. 25 Lacs)

Company Secretary : Rs. 6 Lacs on account of Housing Loan.

(Maximum balance due during the year Rs. 7 Lacs)

4. During the year the Company has incurred expenditure on foreign travel amounting to Rs.3 Lacs (Previous Year. - Rs. 1 Lac)

5. Housing Loans include loans against which the company has commenced action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 including possession of properties and part recovery of auction proceeds aggregating to Rs.3,175 Lacs.(Previous Year Rs. 3,843 Lacs)

6. The Company has requested its Suppliers to confirm the status as to whether they are covered under the Micro, Small & Medium Enterprises Development Act, 2006. In absence of confirmations from the suppliers, disclosures, if any, relating to unpaid amount as at the year end together with interest paid / payable as required under the said Act have not been given.

7. EMPLOYEE BENEFITS (AS-15 ):

Short Term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. These benefits are recognized as expense in Profit and Loss account in the year in which the expense is incurred.

Long Term employee benefits:

Defined Contribution Plan:

The Company does not provide any long term employee benefit which can be categorised under Defined Contribution Plan.

Defined Benefit Plans:

Provident Fund

The Company has formed a Provident Fund Trust for its employees. Contributions are made to the Trust, which is administered by the Trustees. Trust makes investments and also settles claims of members. Interest payable to the members shall not be at a rate lower than the statutory rate.

Contribution to Provident Fund is charged to accounts on accrual basis. The Company operates a defined contribution scheme with recognized provident fund.

For this Scheme, contributions are made by the company, based on current salaries, to recognized Fund maintained by the company. In case of Provident fund scheme, contributions are also made by the employees. An amount of Rs.58 Lacs has been charged to the Profit & Loss Account on account of this defined benefit scheme.

Gratuity Plan

The Company's gratuity benefit scheme is a defined benefit plan. The Company's net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in current and prior periods. For this purpose the Company has obtained qualifying group gratuity insurance policy from Life Insurance Corporation of India.

Leave Encashment

The Company provides benefits to its employees under the Leave Encashment pay plan which is a non-contributory defined benefit plan. The employees of the Company are entitled to receive certain benefits in lieu of the annual leave not availed of during service, at the time of leaving the services of the Company. The benefits payable takes into account the Salary and the leave balance to the credit of the employees on the date of exit.

8. Segment Reporting (AS-17)

The company's main business is to provide loans for the purchase or construction of residential units. Hence, there are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India and notified under the Companies (Accounting Standards) Rules, 2006.

9. Leases - (AS-19)

Company has entered into agreements for taking on leave and license basis certain Office premises. Lease payments recognized in the profit and loss account for the year is Rs. 292 Lacs (Previous Year Rs. 211 Lacs)

Future lease rental obligation under these leases:

i) Not later than one year: Rs.218 Lacs

ii) Later than one year and not later than five years. : Rs. 613 Lacs

iii) Later than five years. : Rs. 296 Lacs

10. Deferred Tax Assets: (AS - 22)

In compliance with the Accounting Standard relating to "Accounting for Taxes on Income" (AS-22) issued by the Institute of Chartered Accountants of India, the Company has taken credit of Rs. 628 Lacs in Profit and Loss Account during the current financial year.

11. The Classification of Assets and Liabilities into Current and Non-Current is carried out based on their residual maturity profile as per the requirement of Revised Schedule VI to Companies Act, 1956.

12. Disclosure regarding penalty or adverse comments as per Housing Finance Companies (NHB) Directions, 2010. During the current financial year the company has:

a) neither been imposed any penalty by National Housing Bank.

b) nor received any adverse comments in writing from National Housing Bank on regulatory compliances.

c) observations during regular inspection have been replied.

13. Till the year ended 31 March 2011, the Company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act, 1956, has reclassified previous year figures to conform to this year's classification.

Mar 31, 2011

1. Housing loans are secured by :-

a) Equitable mortgage of property and / or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:-

a) The Company has pending Income Tax disputes of Rs. 1,69,99,155/- (Previous Year - Rs. 33,82,627/-). It has preferred appeal/s against the same and also has made payments under protest.

b) Bank Guarantee of Rs. 75,00,000/- given in favour of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Groupplan" Policy contract to avail Term Group Plan cover for borrowers. (Previous Year - Rs. 75,00,000/-)

c) In accordance with "Share transfer agreement" with Nomura Asset Management Strategic Investments Pte. Ltd. for sale of shares of LIC Mutual Fund Asset Management Company Ltd and LIC Mutual Fund Trustee Company Pvt. Ltd, the maximum contingent liability is Rs. 13,44,02,072/-

3. In terms of the order of Honorable High Court, Bombay, the face value of equity shares of GIC Asset Management Company Ltd. has been reduced to Rs. 4/- from Rs. 10/-. Consequently the Company has received a sum of Rs. 1,25,99,976/- towards the reduction in face value of its investments.

4. Debts due from:

Directors : Rs. 15,00,000/-on account of Housing Loan.

(Maximum balance due during the year Rs. 15,00,000)

Company Secretary : Rs. 6,74,025.64 on account of Housing Loan.

(Maximum balance due during the year Rs. 7,31,462.23)

5. During the year the Company has incurred expenditure on foreign travel amounting to Rs.62,102 /- (Previous Year. - Rs.NIL)

6. Housing Loans include loans against which the company has commenced action under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 including possession of properties and part recovery of auction proceeds aggregating to Rs.3,842.80 lakhs. (Previous Year Rs. 3,209.12 lakhs).

7. EMPLOYEE BENEFITS (AS-15 ) :

Short Term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. These benefits are recognized as expense in Profit and Loss account in the year in which the expense is incurred.

Long Term employee benefits:

Defined Contribution Plan:

The Company does not provide any long term employee benefit which can be categorised under Defined Contribution Plan.

Defined Benefit Plans:

Provident Fund

The Company has formed a Provident Fund Trust for its employees. Contributions are made to the Trust, which is administered by the Trustees. Trust makes investments and also settles claims of members. Interest payable to the members shall not be at a rate lower than the statutory rate.

Contribution to Provident Fund is charged to accounts on accrual basis. The Company operates a defined contribution scheme with recognized provident fund.

For this Scheme, contributions are made by the company, based on current salaries, to recognized Fund maintained by the company. In case of Provident fund scheme, contributions are also made by the employees. An amount of Rs.56,42,920/- has been charged to the Profit & Loss Account on account of this defined benefit scheme.

Gratuity Plan

The Companys gratuity benefit scheme is a defined benefit plan. The Companys net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in current and prior periods. For this purpose the Company has obtained qualifying group gratuity insurance policy from Life Insurance Corporation of India.

Leave Encashment

The Company provides benefits to its employees under the Leave Encashment pay plan which is a non-contributory defined benefit plan. The employees of the Company are entitled to receive certain benefits in lieu of the annual leave not availed of during service, at the time of leaving the services of the Company. The benefits payable takes into account the Salary and the leave balance to the credit of the employees on the date of exit.

8. Leases - (AS-19)

Company has entered into agreements for taking on leave and license basis certain Office premises. Lease payments recognized in the profit and loss account for the year is Rs. 2,11,05,237/- (Previous Year Rs. 1,83,34,880/-)

Future lease rental obligation under these leases:

i) Not later than one year: Rs.2,23,92,985/-

ii) Later than one year and not later than five years. : Rs. 6,30,33,757/-

iii) Later than five years. : Rs. 3,51,71,455/-

9. Deferred Tax Assets: (AS-22)

In compliance with the Accounting Standard relating to "Accounting for Taxes on Income" (AS-22) issued by the Institute of Chartered Accountants of India, the Company has taken credit of Rs. 13,19,08,646/- in Profit and Loss Account during the current financial year.

10. Suppliers/Service providers covered under Micro, Small Medium Enterprises Development Act, 2006 have not furnished the information regarding filing of necessary memorandum with the appropriate authority. In view of this, information required to be disclosed u/s 22 of the said Act is not given.

11. Figures for previous year have been regrouped wherever necessary.

Mar 31, 2010

1. Housing loans are secured by :-

a) Equitable mortgage of property and/or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:-

a) Tax disputes in appeal Rs.33,82,627/- (Previous Year - Rs.28,09,707/-)

b) Bank Guarantee Rs.75,00,000/- given in favour of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Groupplan" Policy contract to avail Term Group Plan cover for borrowers. (Previous Year - Rs.75,00,000/-)

c) Claims against the Company not acknowledged as debts Rs. NIL (Previous Year-Rs. NIL)

3. Leases - (AS-19)

Company has entered into agreements for taking on leave and license basis certain Office premises. Lease payments recognized in the profit and loss account for the year is Rs. 1,83,34,880/- (Previous Year- Rs. 1,37,30,900/-)

Future lease rental obligation under these leases:

i) Not later than one year: Rs. 1,72,12,140/-

ii) Later than one year and not later than five years : Rs. 5,60,21,927/-

iii) Later than five years : Rs. 2,56,88,531/-

4. Deferred Tax Assets: (AS - 22)

In compliance with the Accounting Standard relating to "Accounting for Taxes on Income" (AS-22) issued by the Institute of Chartered Accountants of India, the Company has taken credit of Rs. 3,46,39,926/- in Profit and Loss Account during the current financial year.

5. Debts due from:

Directors

Rs. 15,00,000/- on account of Housing Loan. (Maximum balance due during the year Rs. 15,00,000)

Company Secretary

Rs.7,31,462.23 on account of Housing Loan. (Maximum balance due during the year Rs.7,86,103.39)

6. EMPLOYEE BENEFITS (AS-15 ) :

Short Term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. These benefits are recognized as expense in Profit and Loss account in the year in which the expense is incurred.

Long Term employee benefits:

Defined Contribution Plan:

The Company does not provide any long term employee benefit which can be categorised under Defined Contribution Plan.

Defined Benefit Plans:

Provident Fund

The Company has formed a Provident Fund Trust for its employees. Contributions are made to the Trust, which is administered by the Trustees. Trust makes investments and also settles claims of members. Interest payable to the members shall not be at a rate lower than the statutory rate.

Contribution to Provident Fund is charged to accounts on accrual basis. The Company operates a defined contribution scheme with recognized provident fund. For this Scheme, contributions are made by the company, based on current salaries, to recognized Fund maintained by the company. In case of Provident fund scheme, contributions are also made by the employees. An amount of Rs.29,48,106/- has been charged to the Profit & Loss Account on account of this defined benefit scheme.

Gratuity Plan

The Companys gratuity benefit scheme is a defined benefit plan. The Companys net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in current and prior periods. For this purpose the Company has obtained qualifying group gratuity insurance policy from Life Insurance Corporation of India.

Leave Encashment

The Company provides benefits to its employees under the Leave Encashment pay plan which is a non-contributory defined benefit plan. The employees of the Company are entitled to receive certain benefits in lieu of the annual leave not availed of during service, at the time of leaving the services of the Company. The benefits payable takes into account the Salary and the leave balance to the credit of the employees on the date of exit.

7. Housing Loans include loans against which the company has commenced action under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 including possession of properties and part recovery of auction proceeds aggregating to lakhs. (Previous Year-Rs.2,024.80 lakhs.)

8. Figures for previous year have been regrouped wherever necessary.

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