Notes to Accounts of Hasti Finance Ltd.

Mar 31, 2024

n) Provisions, contingent assets and contingent liabilities

Provisions are recognized only when there is a present obligation, as a result of past events, and
when a reliable estimate of the amount of obligation can be made at the reporting date. These
estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
Provisions are discounted to their present values, where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the
control of the Company or

• Present obligations arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount of the
obligation cannot be made.

Contingent assets are neither recognised nor disclosed except when realisation of income is
virtually certain, related asset is disclosed.

o) Earnings per share

Basic earnings per share is computed by dividing the profit after tax by the weighted average
number of equity shares outstanding during the year/ period.

Diluted earnings per share is computed by dividing the profit after tax as adjusted for
dividend, interest and other charges to expense or income relating to the dilutive potential
equity shares, by the weighted average number of equity shares considered for deriving basic

earnings per share and the weighted average number of equity shares which could have been
issued on the conversion of all dilutive potential equity shares.

p) Segment reporting

The Company identifies segment basis the internal organization and management structure.
The operating segments are the segments for which separate financial information is available
and for which operating profit/loss amounts are regularly reviewed by the CODM (''chief
operating decision maker'') in deciding how to allocate resources and in assessing performance.
The accounting policies adopted for segment reporting are in line with the accounting policies of
the Company. Segment revenue, segment expenses, segment assets and segment liabilities have
been identified to segments on the basis of their relationship with the operating activities of the
segment.

q) Investments in Associates

The Company records the investments in Associates at cost less impairment loss, if any.

After initial recognition, the Company determines whether there is any objective evidence of
impairment as a result of one or more events that occurred after the initial recognition of
investment in Associates and that event (or events) has an impact on the estimated future cash
flows of the Associates that can be reliably estimated. If there exists such an objective evidence of
impairment, then impairment loss is recognized with respect to the Company''s investment in
Associates.

2A. Significant management judgement in applying accounting policies and estimation uncertainty

The preparation of the Company''s financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities, and the related disclosures. Actual results may differ from these estimates.

Significant management judgements

i. Evaluation of indicators for impairment of loans - The evaluation of applicability of indicators
of impairment of assets requires management assessment of several external and internal
factors which could result in deterioration of recoverable amount of the assets.

ii. Expected credit loss model (''ECL'') - The measurement of expected credit loss allowance for
financial assets measured at amortised cost requires use of complex models and significant
assumptions about future economic conditions and credit behaviour (e.g. likelihood of
customers defaulting and resulting losses). The Company makes significant judgements with
regard to the following while assessing expected credit loss:

• Determining criteria for significant increase in credit risk;

• Establishing the number and relative weightings of forward-looking scenarios for each type of
product/market and the associated ECL; and

• Establishing groups of similar financial assets for the purposes of measuring ECL.

• Value of asset held as security

iii. Contingent liabilities - At each balance sheet date basis the management judgment, changes in
facts and legal aspects, the Company assesses the requirement of provisions against the
outstanding contingent liabilities. However, the actual future outcome may be different from
this judgement.

iv. Revenue recognition- Interest income on stressed loans involves management estimates and
assumptions in determining both timing and expected realisation from them.

v. Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is
based on an assessment of the probability of the future taxable income against which the deferred
tax assets can be utilized.

vi. Fair value measurements - Management applies valuation techniques to determine the fair
value of financial instruments (where active market quotes are not available). This involves
developing estimates and assumptions consistent with how market participants would price the
instrument.

vii. Business model assessment - The Company determines the business model at a level that
reflects how groups of financial assets are managed together to achieve a particular business
objective. This assessment includes judgement reflecting all relevant evidence including how
the performance of the assets is evaluated and their performance measured, the risks that affect
the performance of the assets and how these are managed and how the managers of the assets
are compensated. The Company monitors financial assets measured at amortised cost that are
derecognised prior to their maturity to understand the reason for their disposal and whether the
reasons are consistent with the objective of the business for which the asset was held.
Monitoring is part of the Company''s continuous assessment of whether the business model for
which the remaining financial assets are held continues to be appropriate and if it is not
appropriate whether there has been a change in business model and so a prospective change to
the classification of those assets.

There are certain non-compliances in respect of appointment of Internal Auditor, maintenance of Website and publishing of
notices/advertisements as required under Companies Act and SEBI (LODR) Regulations. Since the company is in process of
regularisation of these non-compliances and the penalties/late fees or any other outflow cannot be measured with sufficient reliability,
no provision/contintengies are recorded in financial statements.

27 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006*

. The Company has not received any intimation from Supplier (except statutory auditors) regarding their status under the Micro, Small
and Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to amount unpaid as at the yearend together
with interest paid / payable as required under the said act have not been given.

28 Capital Advances

The company has long due capital advances of Rs.2.72 Crores towards purchase of property as at the balance sheet date. The
documentary evidence for the current status of the said advances were not received. However, the amount of non-recovery is not
ascertainable. These are the advances made for the acquisition of property but the agreement is not yet executed as at the balance sheet
date hence the same is shown as capital advances.

29 Disclosures under Ind AS 19 (Employee benefits)

Defined benefit plans

The employee strength is less than 10, hence the provisions of the Payment of Gratuity Act are not applicable to the Company. Since the
Company is not having any defined benefit plan, disclosures under Ind AS 19 are not applicable to the Company.

30 Segment Reporting

The Company has single reportable segment "Financing Activity " for the purpose of Ind AS 108 on ''''Segment Reporting" as per
section 133 of the Companies Act, 2013.

The fair value of the financial assets and liabilities are included at the amount that would be received from selling an asset and paid to
transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to
estimate the fair values:-

Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments, as described below:

a) The fair values of loans and receivables are estimated by discounted cash flow models that incorporate assumptions for credit risks,
probability of default and loss given default estimates. Credit risk is derived from market observable data. Where such information is
not available, the Company uses historical experience and other information used in its collective impairment models.

b) The book value method using latest available audited financial statements of investee company is used to fair value investments in
unquoted equity instruments

c) Trade receivables, cash and cash equivalents, other bank balances, loans, other current financial assets, current borrowings, trade
payables and other current financial liabilities are valued at their carrying amounts largely due to the short-term maturities of these
instruments

Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in
any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not
necessarily indicative of all the amounts that the Company could have realized or paid in sale transactions as of respective dates. as
such, the fair value of the financial instruments subsequent to the respective reporting dates may be different from the amounts
reported at each year end.

34 Financial risk management

i) Risk Management

The Company''s activities expose it to credit risk. This note explains the sources of risk which the entity is exposed to and how the entity
manages the risk and the related impact in the financial statements.

A) Credit Risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company has not established adequate
internal risk management process to provide early identification of possible changes in the creditworthiness of counterparties,
including regular collateral revisions. Further, the credit quality review process is not effectively working. However the Company is in
process of establishing internal control system and implementing internal control poilicies for credit review and risk management.

Risk mitigation Strategies:

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying
bank deposits and accounts in different banks across the country

Trade receivables

Trade receivables measured at amortized cost and credit risk related to these are managed by monitoring the recoverability of such
amounts continuously.

Loans

Credit risk related to borrower''s are mitigated by considering profile and business prospect of the borrower''s. These processes include
a detailed appraisal methodology, identification of risks and suitable structuring and credit risk mitigation measures. The Company
assesses increase in credit risk on an ongoing basis for amounts loan receivables that become past due and default is considered to have
occurred when amounts receivable become one year past due.

b) Expected credit loss for loans
Credit risk measurement

The Company measures credit risk of its exposure using Internal ratings are based on board approved policy that guides credit analysis
to place borrowers in watch list based on specific risk factors such as project progress schedule etc.

Expected credit loss measurement

First step involved in ECL computation is staging of the assets into three categories. Staging of the financial assets depend on the
deterioration of the credit quality of the assets over its lifetime. Performing assets fall under Stage I, Underperforming assets fall under
Stage II and Impaired assets(non-performing) fall under Stage III.

The following points were considered for stage wise classification of credit exposures:

1. Stage III exposures were exposures where actual default events have occurred i.e. all credit exposures classified as Doubtful or Sub¬
Standard, or where significant deterioration in credit quality was envisaged.

2. Stage II exposure were exposures which were not considered impaired asset but were classified as ''Stressed Accounts'' or were
flagged as High-Risk Category.

3. All other accounts not meeting the first two criteria were classified as Stage 1 accounts.

Loss allowance

The loss allowance recognized in the period is impacted by a variety of factors, as described below:

* Transfers between Stage 1 and Stages 2 or 3 due to financial instruments experiencing significant increases (or decreases) of credit risk
or becoming credit impaired in the period, and the consequent "step up" (or "step down") between 12-month and Lifetime ECL.

* Additional allowances for new financial instruments recognised during the period, as well as releases for financial instruments de¬
recognised in the period

* Impact on the measurement of ECL due to changes arising from regular refreshing of inputs to models

* Financial assets derecognised during the period and write-offs of allowances related to assets that were written off during the period

Write off policy

Financial assets are written off either partially or in their entirety to the extent that there is no realistic prospect of recovery. Any
subsequent recoveries are credited to impairment on financial instrument on statement of profit and loss.

c) Expected credit losses for financial assets other than loans and derivative financial instruments

Company provides for expected credit losses on financial assets other than loans by assessing individual financial instruments for
losses:

* For cash and cash equivalents - Since the Company deals with only high-rated banks and financial institutions, credit risk in respect of
cash and cash equivalents is evaluated as very low.

* For other financial assets - credit risk is evaluated based on Company''s knowledge of the credit worthiness of those parties and loss
allowance is measured for 12 month expected credit losses upon initial recognition and provide for lifetime expected credit losses upon
significant increase in credit risk. The Company does not have any expected loss based impairment recognised on such assets
considering their low credit risk nature.

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without
incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and
collateral requirements. The Company closely monitors its liquidity position and deploys cash management system. It maintains
adequate sources of financing including debt at an optimised cost.

The Company measures risk by forecasting cash flows.

The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due without incurring unacceptable losses or risking damage to the Company''s reputation. The Company ensures that
it has sufficient fund to meet expected operational expenses, servicing of financial obligations. The table below summarises the
maturity profile of the Company''s financial liabilities based on contractual undiscounted value.

e) Interest Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The company has no interest rate risk in case of lending activities, as rates of interest on the same are fixed during their
tenure. Since Company doesnot have any borrowing, Company''s operations are not exposed to any interest rate risk.

37 Disclosures under Reserve Bank of India Act, Companies Act, 2013 and other regualtories

37.1 Wilful Defaulter :

The Company is not declared as wilful defaulter by any bank or financial Institution or government authorities

37.2 Transaction through Intermediaries :

a) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding that
the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate
Beneficiaries") or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

b) The Company has not received any fund from any person(s) or entity(ies), including foreign entities ("Funding Party") with the understanding that the company shall : (i)
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or (ii)
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

37.3 Loans to related parties

The Company has not granted any Loans or Advances in the nature of loans to Promoters, Directors, KMP''s and related parties which are repayable on demand or given
without specifying terms or period of repayment

37.4 Transaction under Benami Act

The Company does not hold any Benami Property under the Benami Transactions (Prohibition) Act, 1988

37.5 Investment Layers

The Company has not made any Investment in violation to the provisions related to number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013
read with the Companies (Restriction on number of Layers) Rules, 2017

37.6 Crypto Currency

The Company has not traded or invested in Crypto Currency or Virtual Currency

37.7 Liquidity Risk Management Disclosures

Company has not availed any borrowing in form of loans, debt securities, subordinated debts or deposits and hence disclosures related to Liquidity Risk Management
Pursuant to RBI Guidelines on Liquidity Risk Management Framework for Non-Banking Financial Companies dated November 4, 2019 are not applicable.

37.15 Restructuring related Disclosures

A Disclosure required as per Circular DOR.No.BP.BC.63/21.04.048/2019-20 - COVID19 Regulatory Package - Asset Classification and Provisioning are not applicable to the
Company as Company has not extended Moratorium to any borrower under said regulatory package.

B Disclosure required as per Reserve Bank of India Circular on Resolution Framework - 2.0 dated May 5, 2021 is not applicable to the Company as Company has not
implemented resolution plan as per resolution framework - 2.0

Company has not implemented resolution plan as per resolution framework for COVID-19 related Stress dated August 6, 2020 and hence additional disclosure required
under that framework are not applicable.

37.16 Other Exposure relared Disclosures

- The Company has no exposure to the real estate sector direcly or indirectly in the current and previous year.

- The company has not disbursed any loans against security of gold.

- The company has no exposure to capital market.

- The company has no intra-group exposure.

38 Events after reporting date

There have been no events after the reporting date that require disclosure in these financial statements.

39. Additional regulatory information required by Schedule III of the Act

a) Title deeds of immovable properties not held in name of the Company :

The Company does not have any immovable property.

b) Valuation of PP&E and Intangible Assets :

The Company has not revalued its property, plant and equipment or intangible assets or both during the
current or previous year.

c) Loans or Advances in the nature of Loans granted to Promoters, Directors, Key Managerial Personnel and
Related Parties :

The Company has given Loan to Related Party, details of such related party transaction are available in
the financial statement.

d) Details of benami property held:

No proceedings have been initiated on or are pending against the Company for holding benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

e) Borrowing secured against current assets:

The Company has no borrowings from banks.

f) Willful defaulter:

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

g) Relationship with struck off companies:

The Company has no transactions with the companies struck off under the Act or Companies Act, 1956.

h) Registration of charges or satisfaction with Registrar of Companies:

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies
beyond the statutory period.

i) Compliance with number of layers of companies:

This compliance is not applicable to the Company.

k) Compliance with approved scheme(s) of arrangements:

The Company has not entered into any scheme of arrangement which has an accounting impact on
current or previous financial year.

l) Utilization of borrowed funds and share premium:

(a) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Company (Ultimate Beneficiaries) or

ii. Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(b) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall :

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

m) Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of accounts of the
Company.

n) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or
previous year

As per our report of even date For and on behalf of the Board of Directors

For Vandana V Dodhia & Co For Hasti Finance Limited

Chartered Accountants
Firm''s Registration No: 117812W

(CA Vandana V Dodhia) (Nitin Prabhudas Somani) (Sonal Nitin Somani)

Partner Managing Director Director

Membership No : 104000 DIN: 00841378 DIN: 01216993

UDIN : 24104000BKFJGN2477

(Sunil Bansal) ^{(Raj Nitin Somani)}

Company secretary ^{Chief Financial} °^fficer

Place : Mumbai
Date : 30/05/2024

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Mar 31, 2015

1. There was no amount due as on March 31, 2015, as reported to us from/ to Micro, Small & Medium Enterprises as per MSMED Act, 2006.

2. Receivables and Loan & advances made to parties are taken as available from the books of account and are subject to confirmation.

3. Out of the amount receivable a few accounts are in moratorium period, as per Agreement with the borrowers these amounts are recognized as income for the current financial year though not received.

4. During the year advances of Rs. 54,02,174/- (Previous Year Rs. 36,18,061/-) were identified as loss assets and were written off . Except these all other advances, Receivables and investment made are recoverable and performing, therefore management has not made any provisions for bad or doubtful asset, however 0.25% of the Standard Assets is being provided as per the notification No. DNBS.222/CGM(US)-2011 dated 17-01-2011 issued by the Reserve Bank of India (RBI) vide its Directions to all NBFCs to make a general provision of 0.25% of the standard assets The company has made a provision of Rs 4,70,000/- (Previous Year Rs. 4,60,000/-) on the standard assets as on March 31, 2015. The amount of provision on Standard assets is shown separately as Contingent provision against Standard Assets under Long Term Provisions in the Balance Sheet.

Pursuant to section 45 IC of the Reserve Bank of India, 1934, during the year the company has transferred an amount of Rs. 4,70,000/- (Previous Year Rs. 4,60,000/-) to Statutory Reserve.

Note: Amount in bracket indicate previous year's figures

5. Estimated amount of contracts remaining to be executed on Capital account and not provided for Rs. 239.24 Lacs (Previous Year 239.24 Lacs).

6. The Company has taken premises on operating lease. Gross rental expenses for the year ended 31 March 2015 aggregated to Rs. 3,36,700/- (Previous Year: Rs. 4,43,600/-) which is shown under head 'Rent' of Note '18 'Other Administrative expenses' in the profit and loss account.

The company has entered into agreement in the nature of leave and license agreement with licensor. This is in the nature of leave and license and period of agreements is for one year or more and renewable / cancellable at the option of the lessee or lessor.

7. The Company has obtained the certificate of Registration from the RBI as a "Non Banking Financial Institution – Non Deposit Taking" on September 22, 1998 under Section 45-IA of the Reserve Bank of India Act, 1934

8. Financing activities are mostly in nature of loans repayable on demand and are unsecured. At the time of giving loan, there is no stipulation towards the period of principal repayment for which KYC norms and guidelines on Fair Practices Code are followed wherever necessary.

9. Directors Remuneration paid during the year Rs. 1,92,000/- to The Managing Director Mr. Nitin Somani. (Previous year Rs. 1,92,000/-)

10. Disclosure pursuant to Accounting Standard 15(Revised)-Employee benefits Defined contribution plan (Provident fund) :

Amount of Rs. 1,09,715/-(Previous year: 1,82,282) is recognized as expenses and included in "Employment Benefit Expenses" – Schedule 15 in the profit and loss account.

Defined benefit plan (Gratuity):

The following tables summarize the components of the net benefit expenses recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet for the Gratuity benefit plan.

Profit and loss account

Net employee benefit expenses (recognized in employee cost)

11. Previous year figures have been regrouped/reclassified wherever necessary.

Notes :

1. Cash flow statement has been prepared under indirect method as set out in the Accounting Standard (AS) 3 " Cash Flow Statement " .

2. Cash and cash equivalents represent cash and bank balances.

3. Previous year figures have been regrouped/ reclassified wherever applicable.

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Mar 31, 2014

1. Corporate Information

Hasti Finance Limited is a Non Banking Finance Company (Non Deposit accepting company) having Registered Office at Chennai. The Company is engaged in financing activities.

2. There was no amount due as on March 31, 2014, as reported to us from/ to Micro, Small & Medium Enterprises as per MSMED Act, 2006.

3. The interest on Self Assessment tax for AY 2012-2013 is not provided for in the books.

4. Receivables and Loan & advances made to parties are taken as available from the books of account and are subject to confirmation.

5. Out of the amount receivable a few accounts are in moratorium period, as per Agreement with the borrowers these amounts are recognised as income for the current financial year though not received.

6. During the year advances of Rs. 36,18,061(Previous Year Rs.61,86,457/-) were identified as loss assets and were written off . Except these all other advances, Receivables and investment made are recoverable and performing, therefore management has not made any provisions for bad or doubtful asset, however 0.25% of the Standard Assets is being provided as per the notification No. DNBS.222/CGM(US)-2011 dated 17-01-2011 issued by the Reserve Bank of India (RBI) vide its Directions to all NBFCs to make a general provision of 0.25% of the standard assets The company has made a provision of Rs 4,60,000/- (Previous Year Rs.4,70,000) on the standard assets as on March 31, 2014. The amount of provision on Standard assets is shown separately as Contingent provision against Standard Assets under Long Term Provisions in the Balance Sheet.

Pursuant to section 45 IC of the Reserve Bank of India, 1934, during the year the company has transferred an amount of Rs.4,90,000/- (Previous Year Rs.17,50,000)to Statutory Reserve.

7. Segment Reporting

The Company has single reportable segment "Financing Activity " for the purpose of accounting standard 17 on ''''Segment Reporting".

8. The Company has taken premises on operating lease. Gross rental expenses for the year ended 31 March 2014 aggregated to Rs. 4,43,600/- (Previous Year: Rs. 5,09,144/-) which is shown under head ''Rent'' of Note ''18 ''Other Administrative expenses'' in the profit and loss account.

The company has entered into agreement in the nature of leave and license agreement with licensor. This is in the nature of leave and license and period of agreements is for one year or more and renewable / cancellable at the option of the lessee or lessor, In view of above, there are no disclosures required as per Accounting Standard 19 ''Leases'' as prescribed by Companies (Accounting Standard) Rules, 2006.

9. Due to transfer of Shareholding in subsidiary companies, they ceased to be subsidiary and therefore standalone annual accounts are made during the year.

10. Financing activities are mostly in nature of loans repayable on demand and are unsecured. At the time of giving loan, there is no stipulation towards the period of principal repayment for which KYC norms and guidelines on Fair Practices Code are followed wherever necessary.

11. Disclosure pursuant to Accounting Standard 15(Revised)-Employee benefits Defined contribution plan (Provident fund):

Amount of Rs. 1,82,282/-(Previous year: 2,36,278) is recognised as expenses and included in "Employment Benefit Expenses" - Schedule 15 in the profit and loss account.

Defined benefit plan (Gratuity):

The following tables summarize the components of the net benefit expenses recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet for the Gratuity benefit plan.

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Mar 31, 2013

Corporate Information

Hasti Finance Limited is a Non Banking Finance Company (Non Deposit accepting company) having Registered Office at Chennai. The Company is engaged in financing activities. The company is having four subsidiaries which are engaged in the business of Printing of advertisement materials and Logistics.

1) There was no amount due as on March 31, 2013, as reported to us from/ to Micro, Small & Medium Enterprises as per MSMED Act, 2006.

2) Receivables and Loan & advances made to parties are taken as available from the books of account and are subject to confirmation.

3) During the year advances of Rs. 61,86,454 were identified as loss assets and were written off . Except these all other advances, Receivables and investment made are recoverable and performing, therefore management has not made any provisions for bad or doubtful asset, however 0.25% of the Standard Assets is being provided as per the notification issued by the Reserve Bank of India (RBI).

4) In accordance with the notification No. DNBS.222/CGM(US)-2011 dated 17-01-2011 issued by the Reserve Bank of India (RBI) vide its Directions to all NBFCs to make a general provision of 0.25% of the standard assets The company has made a provision of Rs. 4,70,000/- on the standard assets as on March 31, 2013. The amount of provision on Standard assets is shown separately as Contingent provision against Standard Assets under Long Term Provisions in the Balance Sheet.

5) Pursuant to section 45 IC of the Reserve Bank of India, 1934, during the year the company has transferred an amount of Rs. 17,50,000/- to Statutory Reserve.

6) Segment Reporting

The Company has single reportable segment "Financing Activity " for the purpose of accounting standard 17 on "Segment Reporting".

7) Estimated amount of contracts remaining to be executed on Capital account and not provided for Rs.52.80 Lacs (Previous Year 52.80 Lacs).

8) The Company has taken premises on operating lease. Gross rental expenses for the year ended 31 March 2013 aggregated to Rs. 5,09,144/- (Previous Year: Rs. 2,53,389/-) which is shown under head ''Rent'' of Note ''18 ''Other Administrative expenses'' in the profit and loss account.

9) The company has entered into agreement in the nature of leave and license agreement with licensor. This is in the nature of leave and license and period of agreements is for one year or more and renewable / cancellable at the option of the lessee or lessor, In view of above, there are no disclosures required as per Accounting Standard 19 ''Leases'' as prescribed by Companies (Accounting Standard) Rules, 2006.

10) Disclosure pursuant to Accounting Standard 15(Revised)-Employee benefits

A) Defined contribution plan (Provident fund):

Amount of Rs. 2,36,278/-(Previous year: 74,643) is recognised as expenses and included in "Employement Benefit Expenses" - Schedule 15 in the profit and loss account.

B) Defined benefit plan (Gratuity):

The following tables summarize the components of the net benefit expenses recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet for the Gratuity benefit plan.

11) Previous Year Figures:

Previous year figures have been reclassified to conform to this year''s classification. The reclassification of previous year figures does not impact recognition and measurement principles followed for preparation of Financial Statements.

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Mar 31, 2012

Corporate Information

Hasti Finance Limited is a Non Banking Finance Company (Non Deposit accepting company) having Registered Office at Chennai. The Company is engaged in financing activities. The company is having Four subsidiaries which are engaged in the business of Printing of advertisement materials and Logistics.

1) Change in method of Depreciation:

The company has changed the method of depreciation from Rates prescribed under Income Tax Act, 1961 on Written Down Value to Rates prescribed under Schedule XIV of the Companies Act, 1956 on Straight Line. The method of providing Depreciation is changed with retrospective effect from the period of providing depreciation and the amount of net difference of Rs. 15,890/- is written back to profit and Loss Account.

2) During the current year 52,31,700 Equity Warrants were converted at the price of Rs.27 in to fully paid Equity Shares of Rs. 10/- each at premium of Rs. 17/- in four tranches of the first quarter of the current year.

3) There was no amount due as on March 31, 2012, as reported to us from/ to Micro, Small & Medium Enterprises as per MSMED Act, 2006.

4) Receivables and Loan & advances made to parties are taken as available from the books of account and are subject to confirmation.

5) The management is of the opinion that the loans advanced, Receivables and investment made are recoverable and has not identified any Non- performing Assets, therefore management has not made any provisions for bad or doubtful asset, however 0.25% of the Standard Assets is being provided as per the notification issued by the Reserve Bank of India (RBI).

6) In accordance with the Notification No. DNBS.222/CGM(US)-2011 dated 17-01-2011 issued by the Reserve Bank of India (RBI) vide its Directions to all NBFCs to make a general provision of 0.25% of the standard assets The company has made a provision of Rs. 3,75,000/- on the standard assets as on March 31, 2012. The amount of provision on Standard assets is shown separately as Contingent provision against Standard Assets under Provisions in the Balance Sheet.

7) Pursuant to section 45 IC of the Reserve Bank of India, 1934, during the year the company has transferred an amount of Rs. 37,50,000/- to Statutory Reserve.

8) Segment Reporting

The Company has single reportable segment "Financing Activity " for the purpose of accounting standard 17 on ''Segment Reporting".

9) Related parties disclosures

Related Party Details:

Nature of Relationship Name

i) Key Management Person Mr. Nitin Prabhudas Somani

Mrs. Sonal Nitin Somani

Mr. Salim Ismail Shaikh

Mr. Nizamuddin Shaikh

Mr. Vilas Shankar Daware

Mr. Vishal Nanalal Budhdev

ii) Subsidiaries Finex Express Cargo Pvt. Ltd.

Shirish Express Logistics Pvt. Ltd.

Spider Prints Pvt. Ltd.

Spider Display Systems Pvt. Ltd.

ii) Associates Fast train Cargo Private Limited

Shree Fast Courier & Cargo Pvt. Ltd.

Fast Air Cargo Private Limited

Fast Transport & Cargo (Pune)

Fast Realty Private Limited

First International Hotels

10) Estimated amount of contracts remaining to be executed on Capital account and not provided for Rs. 52.80 Lacs (Previous Year 92.80 Lacs).

11) The Company has taken premises on operating lease. Gross rental expenses for the year ended 31 March 2012 aggregated to Rs. 2,53,389/- (Previous Year: Rs. 90,000/-) which is shown under head 'Rent' of Note '18 'Other Administrative expenses' in the profit and loss account.

The company has entered into agreement in the nature of leave and license agreement with licensor. This is in the nature of leave and license and period of agreements is for one year or more and renewable / cancellable at the option of the lessee or lessor, In view of above, there are no disclosures required as per Accounting Standard 19 'Leases' as prescribed by Companies (Accounting Standard) Rules, 2006.

12) Disclosure pursuant to Accounting Standard 15(Revised)-Employee benefits

A) Defined contribution plan (Provident fund):

Amount of Rs. 74,643/-(Previous year: Nil) is recognised as expenses and included in "Employement Benefit Expenses" - Schedule 15 in the profit and loss account.

B) Defined benefit plan (Gratuity):

The following tables summarize the components of the net benefit expenses recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet for the Gratuity benefit plan.

13) Previous Year Figures:

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

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Mar 31, 2011

1. The Board of Directors of the Company, at the meeting held on October 7, 2010 and pursuant to special resolution passed by the members on 10 th November 2010 had approved the increase in authorized capital of the company from Rs.5.00 crores to Rs. 12.01 crores.

Pursuant to the passing of the above resolution in accordance with chapter VII of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended the Company has issued 52,31,700 Equity warrants at a price of Rs.27/- including Premium of Rs. 17/- per warrant. Out of which Rs.3.53 Crore being 25% of the total amount of Rs. 14.13 Cr was received at the time of allotment of warrants on 12th January 2011. The warrants are converted into

Fully paid Equity Shares of Rs. 10/- each in 4 instalments during the first quarter of Fiscal Year 2011-2012. The funds were mainly deployed in providing business and personal loans.

2. There was no amount due as on March 31, 2011, as reported to us from/ to Micro, Small & Medium Enterprises as per MSMED Act, 2006.

3. Loan advance amounts are taken as available from the books of account and are subject to confirmation from some of the parties to whom the loans are advanced.

4. The management is of the opinion that the loans advanced and investment made are recoverable and has not identified any Non- performing Assets and the company has not accepted any deposits from the public, therefore management no provisions are made for bad or doubtful asset, however 0.25% of the Standard Assets is being provided for as General Reserve as per the notification issued by the Reserve Bank of Indoa (RBI).

5. In accordance with the notification No. DNBS.222/CGM(US)-2011 dated 17-01- 2011 issued by the Reserve Bank of India (RBI) vide its Directions to all NBFCs to make a general provision of 0.25% of the standard assets The company has made a provision of Rs. 3,16,000/- on the standard assets as on March 31, 2011. The amount of provision on Standard assets is shown separately as Contingent provision against Standard Assets under Provisions in the Balance Sheet.

6. During the year Rs. 13,40,000 was transferred to Statutory Reserve which represent the Reserve Fund created U/s 45-IC of the Reserve Bank of India Act, 1934.

7. Earning Per Share as per Accounting Standard 20: Calculation for Basic and Diluted Earnings per Share (EPS):

8. Segment Reporting

The Company has single reportable segment "Financial Services" for the purpose of accounting standard 17 on ''Segment Reporting'.

9. Estimated amount of contracts remaining to be executed on Capital account and not provided for Rs. 92.80 Lacs.

10. Rent payable for premises taken on lease as per agreement validity period upto one year and not provided for is Rs. 2.7 Lacs.

11. In view of the company's business, generally there is no specific physical measure or standard classification for its products / services.

Consequently, Additional information pursuant to part II of Schedule VI of the companies Act, 1956 are either Nil or not applicable.

12. Previous years figures have been re-grouped and re-arranged wherever considered necessary.

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Mar 31, 2010

1. There was no amount due as on March 31, 2010, as reported to us from/ to Micro, Small & Medium Enterprises as per MSMED Act, 2006.

2. Loan advance amounts are taken as available from the books of account and are subject to confirmation from the parties to whom the loans are advanced.

3. The management is of the opinion that the loans advanced and investment made are recoverable and has not identified any Non- performing Assets and the company has not accepted any deposits from the public, therefore management has not worked out the prudential norms for Income Recognition and provisioning for Non performing Assets as prescribed by The Reserve Bank of India for Non-Banking Financial Companies.

4. During the year the company earned profit from disposing off all its Fixed Assets ( movable property) .

5. During the year Rs. 1,32,000 was transferred to Statutory Reserve which represent the Reserve Fund created U/s 45-IC of the Reserve Bank of India Act, 1934.

6 Segment Reporting

As the company operates in only one business and operates only in one geographical segment i.e. domestic, the disclosure requirements under Accounting Standard 17 - "Segment Reporting" is not required.

7 Related parties disclosures

There are no transactions as reported with any key management persons and with any of the Enterprises owned and controlled by Key management persons.

Related Party Details:

Nature of Relationship Name

i) Key Management Person Mr. Nitin Prabhudas Somani

Mrs. Sonal Nitin Somani Mr. Salim Ismail Shaikh Mr. Chandrakant Baburao Tupe

ii) Associates Fast train Cargo Private Limited

Shree Fast Courier 8s Cargo Pvt. Ltd.

Fast Air Cargo Private Limited

Fast Realty Private Limited

NST Realty Private Limited

Shabd Brahma Developers Private Limited

Fast Transport 8s Cargo

8 In view of the companys business, generally there is no specific physical measure or standard classification for its products / services. Consequently, Additional information pursuant to part II of Schedule VI of the companies Act, 1956 are either Nil or not applicable.

9 Previous years figures have been re-grouped and re-arranged wherever considered necessary.