Notes to Accounts of India Finsec Ltd.

Mar 31, 2025

The management assessed that cash and cash equivalents, trade receivables, other receivables, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Contingent Liabilities:				NOTE 31 (linOOO''s)
	S.No.	Particular	For the year ended 31st March 2025	For the year ended 31st March 2024
		Contingent liabilities not provided for: -
	0)	Guarantees issued to Financial institutions/ Bankers for loans taken by IFL Housing Finance Limited	2,115,000	2,135,000
	00	Pending litigations by/ against the Company	-	-
		Total	2,115,090	2,135,000

Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables Loans and financial assets measured at amortised cost The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Credit risk managem ent Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions inputs and factors specific to the class of financial assets. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class offinancial assets.

A: Low B: Medium C: High

Life time expected credit loss is provided for trade receivables.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in statement of profit and loss.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset The Company''s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows The Company takes into account the liquidity of the market in which the entity operates.

Capital management

The Company’s objectives when managing capital are to:

- To ensure Company''s ability to continue as a going concern, and

- To provide adequate return to shareholders

Management assesses the capital requirements in order to maintain an efficient overall financing structure. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. The Company manages its capital requirements by overseeing the following ratios -

Additional Ui''i''iilatnrv Disclosures

(i) Details of Benami Property held

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

(ii) Wilful defaulter

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

(ill) Relationship with struck of! companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(iv) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(v) 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.

(vi) Utili/ationof borrowed funds and share premium

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:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (U1 limate Beneficiaries) or

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

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) thatthe Company shall:

a. 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

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

(vii) 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 account

fviii) 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.

(ix) Valuation of Property, Plant & Equipment, intangible asset and investment property

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

(x) Title deedsufiiniiiovable properties not held in name uf the company The Company does not have any immovable property.

(xi) 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. Corporate Guarantee given by the company to subsidiary company is not liable for charge registration.

On 15-04-2025 the company has intimated to stock exchange vide board resolution dated 15-04-2025 that the company has decided to surrender the NBFC-ICC certificate of Rcgistartion in order to facilitate the conversion of the I PL Finance Limited, subsidiary of India Finsec Limited from HFC to NBFC-ICC.The Company will act as an unregistered Core Investment Company (C1C) upon receipt of approval for cancellation of its Certificate of Registration (CoR)asa Non-Banking Financial Company -Investment and Credit Company (NBFC-ICC), as the Company meets the eligibility criteria to operate as a unregistered Core Investment Company (CIC).

NOTE 38

The financial statements were approved for issue by the Board of Directors on 19 May 2025

NOTE 39

The Company did not have any long-term contracts including derivative contracts for which there were any material foreseable losses.

NOTE 40

There has been no delay in transferring amounts, required to be transferred, to die Investor Education and Protection Fund by the Company.

NOTE 41

Previous Year''s Figures have been re- arranged or re- grouped wherever considered necessary.

NOTE 42

Figures in brackets indicate negative (-) figures.

NOTE 43

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

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Mar 31, 2024

3.(h) Provision, contingent liabilities and contingent assets

Provision: A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.

Contingent Liability: Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Contingent liabilities are disclosed on the basis of judgment of the management/independent experts. These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate.

4. Major Estimates and Judgments made in preparing Standalone Financial Statements:

The preparation of the Company''s Standalone Financial Statements requires management to make judgements and estimates that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. These include recognition and measurement of financial instruments, estimates of useful lives and residual value of Property, Plant and Equipment and Intangible Assets, valuation of inventories, measurement of recoverable amounts of cash-generating units, measurement of employee benefits, actuarial assumptions, provisions etc.

Uncertainty about these judgments and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The Company continually evaluates these estimates and assumptions based on the most recently available information. Revisions to accounting estimates are recognized prospectively in the Statement of Profit and Loss in the period in which the estimates are revised and in any future periods affected.

4.1 JUDGEMENTS

In the process of applying the company''s accounting policies, management has made the following judgements, which have the significant effect on the amounts recognized in the Standalone Financial Statements:

Materiality

Ind AS requires assessment of materiality by the Company for accounting and disclosure of various transactions in the Standalone Financial Statements. Accordingly, the Company assesses materiality limits for various items for accounting and disclosures and follows on a consistent basis. Overall materiality is also assessed based on various financial parameters such as Gross Block of assets, Net Block of Assets, Total Assets, Revenue and Profit Before Tax. The materiality limits are reviewed and approved by the Board.

Provisions and contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind AS 37, ''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events has required best judgment by management regarding the probability of exposure to potential loss. Should circumstances change following unforeseeable developments, this likelihood could alter. In the similar line, management also on the basis of best judgment and estimate determines the net realizable value of the Inventories to make necessary provision.

4.2 MAJOR ESTIMATES

The key assumptions concerning the future and other key sources of estimation at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.

Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the company. Such changes are reflected in the assumptions when they occur.

Useful life of property, plant and equipment and intangible assets

The estimated useful life of property, plant and equipment is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.

Useful life of the assets other than Plant and machinery are in accordance with Schedule II of the Companies Act, 2013.

The Company reviews at the end of each reporting date the useful life of property, plant and equipment, and are adjusted prospectively, if appropriate.

Income Taxes

The Company uses estimates and judgements based on the relevant facts, circumstances, present and past experience, rulings, and new pronouncements while determining the provision for income tax. A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised.

Additional Regulatory Disclosures

(i) Details of Benami Property held

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

(ii) Wilful defaulter

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

(iii) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(iv) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(vi) 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.

(vi) Utilization of borrowed funds and share premium

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:

a. 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

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

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:

a. 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

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

(vii) 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 account.

(viii) 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.

(ix) Valuation of Property, Plant & Equipment, intangible asset and investment property

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

(x) Title deeds of immovable properties not held in name of the company The Company does not have any immovable property.

(xi) 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. Corporate Guarantee given by the company to subsidiary company is not liable for charge registration.

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

For and on behalf of the Board of Directors of INDIA FINSEC LIMITED

Gopal Bansal Mukesh Sharma

Managing Director Director

DIN: 01246420 DIN: 00274217

Manoj Kumar Gupta Varsha Bharti

CFO Company Secretary

PAN: AEUPG8308R Membership No.: 37545

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Mar 31, 2018

1. Basis of preparation of Financial Statement

The Financial Statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these Financial Statements to comply in all material respect with the accounting standards notified under the Companies (Accounting standards) Rule, 2006, (as amended) and the relevant provision of the companies Act, 2013.The Financial Statements have been prepared on the accrual basis and under the historical cost convention.

a. Terms and rights attached to equity shares

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

In the event of liquidation of the company, the holders of equity shares will b e entitiled to receive remaining assets of the company, after distribution of all the preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholder.

2. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date.

The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company

3. Related party disclosures/ transactions

(a) Related Parties Covered: -

4. Segment Information:

(a) The Company has identified two reportable segments viz., trading in shares and securities and advancing of loans after taking into account the nature of product and services and the differing risk and returns on such products and services. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting: -

(i) Revenue and expenses have been identified to a segment on the basis of relation to operating activities of the segment. Revenue and Expenses relates to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Un-allocable”.

(ii) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Un-allocable”.

Primary Segment information: -

(b) The Reportable segment of “Trading in Share and Securities” includes trading in Quoted Equity Shares, Mutual Funds, Bonds, Futures and Options Contracts.

(c) Secondary Segment information: -

The Company does not have secondary segment division in respect of reportable segments.

5. In the opinion of the management, the current assets, loans and advances have a realizable value in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.

6. Balance shown under head Sundry Debtors, Creditors, Loans and Advances are subject to confirmation.

7. Break-up of Payments made to Directors is disclosed as under:-

8. Break-up of Payments made to Statutory Auditors (including Service Tax) is disclosed as under:-

9. Previous year’s Figures have been re- arranged or re- grouped wherever considered necessary.

10. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

11. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

12. The financial statements were approved for issue by the Board of Directors on 30th May, 2018.

13. Figures have been rounded off to the nearest rupees.

14. Figures in brackets indicate negative (-) figures.

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Mar 31, 2016

c.1,15,21,470 Equity Shares were allotted as Bonus Shares in the F.Y. 2012-13 by capitalization of Securities Premium and Reserves.

d.60,00,000 Equity Shares were allotted in F.Y. 2013- 14 pursuant to the scheme of Initial Public Offer (IPO).

e.55,00,000 Equity Shares were allotted during the year 2014- 15 under preferential allotment at a premium of Rs. 1.65 per share.

* Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II related to Depreciation on fixed assets. Accordingly the unamortized carrying value is being depreciated over the revised/ remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2015 have been adjusted net of tax, in the opening balance of Profit & Loss Account amounting to Rs. 94400.

1. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date.

The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company.

2. Related party disclosures/ transactions

3. Segment Information:

(a) The Company has identified two reportable segments viz., trading in shares and securities and advancing of loans after taking into account the nature of product and services and the differing risk and returns on such products and services. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting: -

(i) Revenue and expenses have been identified to a segment on the basis of relation to operating activities of the segment. Revenue and Expenses relates to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Un-allocable”.

(ii) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Un-allocable”.

(c) The Reportable segment of “Trading in Share and Securities” includes trading in Quoted Equity Shares, Mutual Funds, Bonds, Futures and Options Contracts.

(d) Secondary Segment information: -

The Company does not have secondary segment division in respect of reportable segments.

4. In the opinion of the management, the current assets, loans and advances have a realisable value in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.

5. Balance shown under head Sundry Debtors, Creditors, Loans and Advances are subject to confirmation.

6. Break-up of Payments made to Statutory Auditors (including Service Tax) is disclosed as under:-

7. Previous year’s Figures have been re- arranged or re- grouped wherever considered necessary.

8. Figures have been rounded off to the nearest rupees.

9. Figures in brackets indicate negative (-) figures.

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Mar 31, 2015

1. Basis of preparation of Financial Statement

The Financial Statements of the company have been prepared in accordance with generally accepted accounting principle s in India (Indian GAAP). The company has prepared these Financial Statements to comply in all material respect with the accounting standards notified under the Companies ( Accounting standards) Rule, 2006, (as amended) and the relevant provision of the companies Act, 2013. The Financial Statements have been prepared on the accrual basis and under the historical cost convention.

2. Terms and rights attached to equity shares

The company has is sued only one class of equity share having a par value of Rs . 10/- per s hare. Each holder of equity shares is entitled to vote per s hare. The company declare s and pays dividend if any, in Indian Rupee s . The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity s hares will be entitled to receive remaining assets of the company, after distribution of all the preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholder.

3. 1,15,21,470 Equity Shares were allotted as Bonus Shares in the F.Y. 2012-13 by capitalisation of Securities Premium and Reserves .

4. 60,00,000 Equity Share s were allotted in F.Y. 2013- 14 pursuant to the scheme of Initial Public Offer (IPO).

5. 55,00,000 Equity Shares were allotted during the year under preferential allotment at a premium of Rs . 1.65 per s hare.

6. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date.

The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company.

7. Provisions of Accounting Standard (AS) — 17 issued by the ICAI on 'Segment Reporting' are not been applicable to the Company.

8. In the opinion of the management, the current assets , loans and advance s have a realizable value in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.

9. Related party disclosures/ transactions

a) Related Parties Covered: -

(i) Key Management Personnel

Sh. Gopal Bansal- Managing Director Sh. Mukesh Goyal- Whole- time Director Sh. Basant Mittal- Director Ms . Charu Goyal- Director

(ii) Relative s of Key Management Personnel

Ms . Sunita Bansal Mrs . Ganga Devi Bansal

(iii) Enterprises owned or significantly

influenced by the Key Management

Personnel or their Relative s

M/s Gopal Bansal (HUF)

10. Balance shown under head Sundry Debtors , Creditors and Advance s are subject to confirmation.

11. Quantitative Information in respect of Opening Stock, Purchases , Sales and Closing Stock pursuant to Schedule III of the Companies Act, 2013 are as per list attached.

12. The company does not have any pending litigation s as on Balance Sheet Date.

Contingent Liability not provided for 34. Figure s in brackets indicate negative (-) figures.

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Mar 31, 2014

1. Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended from time to time) and the relevant provisions of the Companies Act, 1956,

The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies not specifically referred, are consistently applied from the past accounting periods.

2. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date.

The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company.

3. Provisions of Accounting Standard (AS) - 17 issued by the ICAI on ''Segment Reporting'' are not been applicable to the Company.

4. In view of present uncertainty regarding generation of sufficient future income, net deferred tax asset or liability has not been recognized in these accounts on prudent basis.

5. In the opinion of the management, the current assets, loans and advances have a relaisable value in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.

6. The management has not charged depreciation on office premises considering the present scenario of the Company. Due to this reason, there is an overstatement of profit in the books to the extent of Rs. 10,09,726 in the current financial year

7. Balance shown under head Sundry Debtors, Creditors and Advances are subject to confirmation.

8. Quantitive Information in respect of Opening Stock, Purchases, Sales and Closing Stock pursuant to Schedule VI of the Companies Act, 1956 are as per list attached.

9. Particulars Current Period Previous Year (Rs.) (Rs.)

Contingent Liability not provided for Nil Nil

10. Previous Year''s Figures have been re- arranged or re- grouped wherever considered necessary.

11. Figures have been rounded off to the nearest rupees.

12. Figures in brackets indicate negative (-) figures.

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Mar 31, 2013

1. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date.

The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company.

2. Provisions of Accounting Standard (AS) - 17 issued by the ICAI on 'Segment Reporting' are not been applicable to the Company.

3. In view of present uncertainty regarding generation of sufficient future income, net deferred tax asset or liability has not been recognized in these accounts on prudent basis.

4. In the opinion of the management, the current assets, loans and advances have a realizable value in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.

5. Related party disclosures/ transactions

There is no transaction entered with the related party covered by the Accounting Standard (AS) - 18 on 'Related Party Disclosure' during the period covered by these financial statements.

6. Previous Year's Figures have been re- arranged or re- grouped wherever considered necessary.

7. Figures have been rounded off to the nearest rupees.

8. Figures in brackets indicate negative (-) figures.