Notes to Accounts of India Home Loan Ltd.

Mar 31, 2025

4.1 There are no loans measured at FVOCI or FVTPL or designated at FVTPL.

4.2 Loans granted by IHLL are secured by one or combination of following securities:

a) Equitable/Registered mortgage of property and / or

b) Hypothecation of assets and / or

c) Company guarantee or personal guarantee and/or

d) Undertaking to create a security

4.3 In its normal course of business, the company does not physically repossess properties or other assets except properties repossessed under SARFAESI. Property acquisition is a last recourse which company exercise in case recovery become very diffcult. Any surplus funds after settlement of outstanding loans are returned to the customers. As a result of this practice, the residential properties under legal repossession processes are not treated as non-current assets held for sale.

4.4 In accordance with the RBI Resolution Framework 2.0 - Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs), the Company granted moratorium of nine months on payments of all instalments and/or interest falling due on or after July 1, 2021 till March 31,2022 to eligible borrowers who have requested for moratorium.

In previous year “In accordance with the RBI guidelines relating to COVID - 19 Regulatory Package dated March 27, 2020 and April 17, 2020, the Company granted moratorium of three months on payments of all instalments and/or interest falling due on or after March 1, 2020 till May 31, 2020 (further extended as per RBI guidelines for another 3 months falling due on or after June 1,2020 till August 31,2020) to eligible borrowers who have requested for moratorium”.

4.5 On June 4,2021 the RBI has announced resolution framework -2.0: Resolution of Covid-19 related stress of MSMEs. The extent to which COVID - 19 pandemic will impact the company''s provision on financial assets will depend on future developments, which are highly uncertain. The impact of COVID - 19 pandemic may be different from that estimated as at the date of approval of these financial statements and the Company will continue to closely monitor any material changes to future economic conditions.

4.6 The Company has used the principles of prudence in applying judgments, estimates and possible forward looking scenarios to assess and provide for the impact of the COVID-19 pandemic on the Financial Statements specifically while assessing the expected credit loss on financial assets by applying the customer profiling within salaried and self-employed portfolio and management overlays. The Company has performed an estimation of portfolio stress through analysing its portfolio in respect of various risk classification, using the available historical and current data and based on current indicators of future economic conditions.

4.7 There was non of the transaction on Derecognition of Financial Instruments under Amortised Cost Category held during this year.

4.8 Impairment loss allowance also includes special provisioning for RBI regulatory package of '' 3776.92 thousands (Previous Year '' 4242.99)

4.9 Loans given to staff '' 356.38 thousands (Previous year '' 476.81 thousands) has not considered as loans and are included in Other Financial Assets.

4.10 Provision of Non-performing assets is required to be maintained as per effective credit loss model developed by the company is to the extent of '' 4614.94 thousands (Previous year '' 6130.28 thousands) against which the company, by way of prudence and abundant caution has maintained cumulative provision of '' 4614.94 thousands (Previous year '' 6130.28 thousands). The Management has decided to maintain NIL additional provision (Previous Year NIL Thousand). General provision required to be maintained in respect of accounts in default but standard and asset classification benefit extended, as per RBI circular on COVID 19 regulatory package the company holds a provision of '' 3776.92 thousands (Previous year '' 4242.99 thousands).

4.11 On May 22, 2020, the RBI has announced extension of the moratorium period by further three months. The extent to which COVID - 19 pandemic will impact the company''s provision on financial assets will depend on future developments, which are highly uncertain. The impact of COVID - 19 pandemic may be different from that estimated as at the date of approval of these financial statements and the Company will continue to closely monitor any material changes to future economic conditions.

4.12 During the year ended March 31,2025 loans against which we have taken possession of properties of '' 50952.43 thousands has been transferred to assets held for sale. This assets has been recorded at carring value or fair value which ever is lower.

10.(A).4: LIQUIDITY RISK

The Company does not face a significant liquidity risk with regard to its lease liabilities as the assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

10.(B): THIS NOTE PROVIDES INFORMATION FOR LEASES WHERE THE COMPANY IS A LESSOR.

Company has not entered any lease agreement as lessor.

Trade payables include '' 402.51 thousands (Previous Year '' 791.49 thousands) payable to “Suppliers” registered under The Micro, Small & Medium Enterprises Development Act 2006. No interest has been paid by the company during the year to the “suppliers” covered under The Micro, Small & Medium Enterprises Development Act, 2006. The above information takes into account only those suppliers who have responded to enquiries made by the company for this purpose. The amount of principal and interest outstanding during the year is given below.

During the financial year ended March 31, 2021, the Company has, on June 26, 2020, issued 200 Rated, Listed, 11% Secured Non-convertible Debentures having face value of '' 10,00,000 each aggregating to '' 200000 thousands (Rupees Twenty Crore only) and the same have been allotted on June 30, 2020 for a tenor of 36 months. Redeemable non-convertible debentures are secured by book debts to the extent of 1.05 times of outstanding amount. The proceeds of the NCDs were used for the objects that were stated in the offer document(s).

On 30^th March, 2019 the company had issued 16,00,000 Convertible share warrants to promoters and non-promoters at a price of '' 76.75 per share warrant with an option to convert each warrant with one equity share of face value of '' 10 per equity shares on or before 29^th September, 2020. The Company had already received 25% of the issue price from the Allottees upto 29^th March, 2019. Allottees needed to pay balance 75% of issue price on or before 29^th September, 2020. The Company, on request of all warrant holders, has made an application to SEBI for extension of due date of warrants on 4^th September, 2020. The SEBI has given extension till 13^th November, 2020. However allottees were unable to pay balance 75% of issue price till extended time allowed by SEBI and hence company has forfeited the paid 25% amount of issue price ('' 3,07,00 thousands) and transferred the same to Capital Reserve.

Note: As per RBI Notification DOR (NBFC).CC.PD.No.109/22.10.106/2019-20, when the impairment allowance as per IND AS 109 is lower than provisioning requirements of IRACP (including standard assets provisioning), the differential amount has to be transferred to a separate “Impairment Reserve”. During the year, the company has transferred NIL (previous year Nil) to such Impairment reserve.

NOTE 3232.1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

Contingent liabilities

(a) Claims against the Company not acknowledged as debt -NIL Commitments

a) Sanctions done but not Disbursed '' 450.00 thousands (Previous Year '' 15679.00 thousands)

32.2 PENALTY IMPOSED BY THE REGULATORY AUTHORITIES

NIL

32.3 DISCLOSURES REQUIRED UNDER SECTION 22 OF THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

(i) Principal amount remaining unpaid to any supplier as at the end of the accounting year is '' 221.53 thousands.

(ii) Interest due thereon remaining unpaid to any supplier as at the end of the accounting year

(iii) The amount of interest paid along with the amounts of the payment made to the supplier beyond the appointed day

(iv) The amount of interest due and payable for the year

(v) The amount of interest accrued and remaining unpaid at the end of the accounting year

(vi) The amount of further interest due and payable even in the succeeding year, until such date when the interest dues

as above are actually paid

The above dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

32.4 LOANS GRANTED BY IHLL ARE SECURED BY ONE OR COMBINATION OF FOLLOWING SECURITIES:

(a) Equitable / Registered mortgage of property and / or

(b) Hypothecation of assets and / or

c) Company guarantee or personal guarantee and/or

d) Undertaking to create a security

32.5 COVID - 19 REGULATORY PACKAGE 32.5.1 COVID - 19 RESOLUTION FRAMEWORK 2.0

The Company invoked resolution plans to relieve COVID-19 pandemic related stress to eligible borrowers. The resolution plans are based on the parameters laid down in the guidelines issued by the RBI May 5, 2021. The staging of accounts and provisioning for the eligible accounts where the resolution plans are invoked and implemented is in accordance with the Board Approved Policy in this regard.

Disclosure on Resolution Framework 2.0 implemented in terms of RBI notification no. RBl/2021-22/31/DOR.STR.REC.11 /21.04.048/2021-22 dated May 05, 2021.

32.5.2 COVID - 19 REGULATORY PACKAGE

In accordance with the RBI guidelines relating to COVID - 19 Regulatory Package dated March 27, 2020 and April 17, 2020, the Company granted moratorium of three months on payments of all instalments and/or interest falling due on or after March 1, 2020 till May 31, 2020 (further extended as per RBI guidelines for another 3 months falling due on or after June 1,2020 till August 31,2020) to eligible borrowers who have requested for moratorium. The Company has used the principles of prudence in applying judgments, estimates and possible forward looking scenarios to assess and provide for the impact of the COVID-19 pandemic on the Financial Statements specifically while assessing the expected credit loss on financial assets by applying the customer profiling within salaried and self-employed portfolio and management overlays. The Company has performed an estimation of portfolio stress through analysing its portfolio in respect of various risk classification, using the available historical and current data and based on current indicators of future economic conditions. On May 22, 2020, the RBI has announced extension of the moratorium period by further three months. The extent to which COVID - 19 pandemic will impact the company''s provision on financial assets will depend on future developments, which are highly uncertain. The impact of COVID - 19 pandemic may be different from that estimated as at the date of approval of these financial statements and the Company will continue to closely monitor any material changes to future economic conditions. Post outbreak of COVID-19, virus continues to spread across the country, resulting in significant volatility in financial markets and a significant decrease in economic activities. On March11, 2020, this outbreak was declared a global pandemic by the World Health Organisation and consequent lockdowns were imposed across. The situation was improving upto Jan - Feb 2021 but due to the onset of the ''second wave'', things have deteriorated since March 2021. Increase in COVID 19 cases necessitated imposition of restrictions which may once again impact economic activity and markets. In preparing the accompanying financial statements, the Company''s management has assessed the impact of the pandemic on its operations and its assets as at March 31, 2021. The management does not, at this juncture, believe that the impact on the value of the Company''s assets and underline security is likely to be material. The extent to which the second wave of COVID 19 pandemic will impact the Company''s results will depend on ongoing as well as future developments, which at this juncture are highly uncertain.

32.6 The company has complied with the norms prescribed under Housing Finance Companies (NHB) Directions, 2010 for recognising Non-Performing Assets (NPAs) in preparation of account. As per the prudential norms prescribed by the National Housing Bank, in respect of credit exposures, the total provisioning made (AS per ECL) for NPA and standard assets and towards COVID till 31^st March, 2025 is '' 27833.52 thousands (Previous Year '' 25919.97 thousands). Details of which is as follows:

32.9.6 Company has not entered into any transactions for below mentioned items

a. Derivatives

b. Securitisation

c. NPA purchases /Sold

d. Transactions / Exposures relating to capital market

32.9.7 There is no parent company and hence there is no financing of parent company products. Also there are no group companies and hence there are also no group structure .

32.9.8 Company has not exceeded the norms of NHB relating to single borrower limit /Group borrower limit.

32.9.9 As on the date of this report, the Company had received a letter on July 14, 2022 from Informatics Rating (“Credit Rating Agency”), in relation to the revision in the Credit Rating assigned to the Long term fund based bank facility -term loan from IVR D - to IVR D (Reaffirmed) and for Non-Convertible Debentures from IVR C - to IVR C (Reaffirmed).

32.9.10 There is no drawdown from reserves. The Company has not decleared any interim and / or final dividend during the year.

32.9.11 There are no overseas assets and no overseas subsidiaries and any joint ventures partners

32.9.12 There are no off-balance sheet SPVs sponsored.

32.9.19 Indian Accounting Standard 110- Consolidated Financial Statements are not applicable for the Company

32.9.20 Revenue Recognition: No revenue recognition has been postponed pending the resolution of significant uncertainties

32.9.21 During the year, no transaction was accounted which was related to prior period (Previous year : Nil)

32.9.22 There is no change in the accounting policies except as required by the applicable statute

32.9.23 Disclosure under paragraph 29 of the Housing Finance Companies (NHB) Directions, 2010.

The Company has complied with requirements as per Para 29 of the Housing Finance Companies (NHB) Directions 2010 except for the netting off the provisions (Impairment Loss Allowance) made as per Para 28 against the value of assets as per the requirement of Indian Accounting Standards.

32.9.24 There are no group company so exposures to real estate business does not arises.

32.10 The company didn''t enter into any import transactions during the year.

32.11 Expenditure in foreign currency - NIL

32.12 Earnings in foreign exchange - NIL

32.13 The balances appearing under unsecured loans, sundry creditors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.

32.14 The company has appropriated a sum of '' 545.51 (Previous Year '' 0.00 thousands) to reserve fund which is in compliance with the requirement of section 36(1)(viii) of the Income Tax Act, 1962.

32.15 There are no loans granted against collateral of Gold and Jewellery.

NOTE 32.16 Statement for Disclosure on Statutory / Special Reserves, as prescribed RBI ‘s Master Directions Relating to Non -Banking Financial Company -Housing Finance Company (Reserve Bank ) Directions,2021NOTE 35 FAIR VALUE MEASUREMENT

Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities if the carrying amount is a reasonable approximation of fair value.

The management assessed that carrying values of financial assets i.e. trade receivable, cash and cash equivalents, loans, trade payables and other Financial assets and liabilities are reasonable approximations of their fair values.

(B) FAIR VALUE HEIRARCHY

Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable willing parties in an arm''s length transaction. The Company has made certain judgements and estimates in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified the financial instruments into three levels prescribed under the accounting standard. An explanation of each level is as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. This includes mutual funds and listed equity instruments that have quoted price. The mutual funds are valued using the closing NAV.

Level 2: Level 2 hierarchy includes financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.

Level 3: If one or more of the significant inputs is not based on the observable market data, the instrument is included in Level 3 hierarchy.

(C) VALUATION TECHNIQUES

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices for mutual funds

- the use of quoted market prices for equity instruments

The carrying amounts of cash and cash equivalents, other bank balances, trade payables and other financial liabilities are considered to be the same as their fair values, due to their short-term nature.

The fair values for loans and other financial assets were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of borrowings other than debt securities are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

NOTE 36 FINANCIAL RISK MANAGEMENTA. CREDIT RISK

Credit risk is the risk of loss that may occur from the failure of any party to abide by the terms and conditions of any contract, principally the failure to make required payments of amounts due to company. In lending operations, the Company is principally exposed to credit risk.

The credit risk is governed by various Product Policies. The Product Policy outlines the type of products that can be offered, customer categories, the targeted customer profile and the credit approval process and limits.

The credit risk for retail borrowers is being managed at portfolio level for both Home loans and Non Home 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, measurement, monitoring and reporting of the Credit risk. The Company has additionally taken the following measures : -

- Borrower exposure limits as per applicable regulations.

- Establishment of a team to enhance focus on monitoring of process implementation at the branches and to facilitate proactive action wherever required.

- Enhanced monitoring of retail product portfolios through periodic review.

CREDIT APPROVAL AUTHORITIES

The Board of Directors has approved delegation of loan sanctioning powers to Managing Director and member of the management team on a graded level of the loan amount.

CREDIT RISK ASSESSMENT METHODOLOGYi) Retail Loans

Company''s customers for retail loans are primarily low, middle and high-income, salaried and self-employed individuals.

The Company''s credit officers evaluate credit proposals on the basis of active credit policies as on the date of approval. The criteria typically include factors such as the borrower''s income & obligations, the loan-to-value ratio, Fixed obligation to income ratio and demographic parameters subject to regulatory guidelines. Any deviations need to be approved at the designated levels.

The various process controls such as KYC check, Credit Bureau Report analysis are undertaken. Company''s staff performs comprehensive due diligence process including visits to customer''s business and residence premises.

Company analyses the portfolio performance of each product segment regularly, and use these as inputs in revising the product programs, target market definitions and credit assessment criteria to meet the twin objectives of combining volume growth and maintenance of asset quality. The retail loans are fully secured and have full recourse against the borrower. The Company has a equitable mortgage over the collateral Immovable Properties. Wherever the state laws provide, the memorandum of deposit of title deeds are also registered.

ii) Other Loans

The Company has a framework for the appraisal and execution of project finance transactions and it believes that such framework enables optimal risk identification, allocation and mitigation and helps minimize risk in the transaction.

The project finance approval process undertakes detailed evaluation of credit, technical, commercial and financial besides capacity and capability of developer/promoter. A credit scan by obtaining CIBIL and legal litigation reports of key developer/promoter further strengthens credit evaluation. As part of the appraisal process, a risk matrix is prepared to assess project risks in terms of its viability and implementation of projects and other risks associated with the project.

Project finance loans are fully secured by equitable mortgage with registered MOD (Memorandum of deposit of titles) of the prime property being land on which project is to be executed besides lien on constructed units. The Company creates lien on the receivables arising from sale of constructed units. Cash flows are being escrowed in favour of the company besides setting up the escrowing of sale proceeds as per the RERA Act. The Company also obtains personal guarantees of the developer/key promoters. Besides, monthly reports on progress of work, sales booking and sales proceeds are being collected from borrowers which are being monitored until loans are fully repaid.

RISK MANAGEMENT AND PORTFOLIO REVIEW

The Company ensures effective monitoring of credit facilities through a risk-based asset review framework under which the frequency of asset review is determined depending on the risk associated with the product.

For both Retail and other borrowers, the company staff verifies adherence to the terms of the credit approval prior to the commitment and disbursement of credit facilities.

The Company monitors compliance with the terms and conditions for credit facilities prior to disbursement. It also reviews the completeness of documentation, creation of security and compliance with regulatory guidelines.

The provision estimated as per ECL (Expected Credit Loss) model on an aggregate basis is lower than the overall provision required under IRAC (Income Recognition and Asset Classification ) norms of the RBI. The Management on a conservative approach has decided to create Impairment reserve.

As at balance sheet date, the Company does not have significant concentration of credit risk

B. 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, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

To limit this risk, management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on a daily basis. The Company has developed internal control processes for managing liquidity risk.

Housing Finance being core business, maintaining the liquidity for meeting the growth perspective in the business as also to honour our committed repayments is the fundamental objective of the Asset Liability Management (ALM) framework.

Maturities of financial liabilities

The table below provides details regarding the contractual maturities of significant financial liabilities as at March 31, 2025, March 31, 2024.

C. Market Risk

The Company''s core business is borrowing and lending as permitted by the National Housing Bank. These activities expose the Company to interest rate risk.

Interest Rate Risk refers to the risk associated with the adverse movement in the interest rates. Adverse movement would imply rising interest rates on liabilities and falling interest yields on the assets. This is the biggest risk which the company faces. It arises because of maturity and re-pricing mismatches of assets and liabilities.

NOTE 37 CAPITAL MANAGEMENT

The Company maintains an actively managed capital base to cover risks inherent in the business and is meeting the capital adequacy requirements of Reserve Bank of India .

The Company has complied with the applicable capital requirements over the reported period. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return on capital to shareholders, issue new shares or sell assets to reduce debt.

“The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

NOTE 40 - SEGMENT REPORTING

The main business of the Company is to provide loans for purchase or construction of residential houses, all other activities of the Company revolve around the main business and accordingly there are no separate reportable segments, as per the Ind AS 108 “Operating Segments” specified under section 133 of the Companies Act, 2013.

The tax rate used for the reconciliations above is the corporate tax rate of 25.17% for the year 2022-23 payable by the Company in India on taxable profit under tax law in Indian jurisdiction.

NOTE 42 OTHER DISCLOSURES

(i) There is no income which is required to be 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.

(ii) The Company has not been declared willful defaulter by any Banks/Financial Institutions.

(iii) The Company has not traded or invested in Crypto currency or Virtual currency during the year.

(iv) 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 (45 of 1988) and the rules made thereunder.

(v) There are no transaction with struck off companies during the current and previous year.

NOTE 43

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosures.

NOTE 44

The following disclosures have been given in terms of Notification no. RBI/2019-20/170 DOR (NBFC).CC.PD. No.109/22. 10.106/2019-20 dated March 13, 2020 issued by the RBI on Implementation of Indian Accounting Standards.

Note: As per RBI Notification DOR (NBFC).CC.PD.No.109/22.10.106/2019-20, when the impairment allowance as per IND AS 109 is lower than provisioning requirements of IRACP (including standard assets provisioning), the differential amount has to be transferred to a separate “Impairment Reserve”, details of which is available in a separate column in the Statement of Changes in Equity for the year. During the year, the company has transferred NIL (previous year RS. NIL) to such Impairment reserve.

NOTE 46: DIRECT ASSIGNMENT OF LOANS:-

Disclosures pursuant to RBI Notification - RBI/DOR/2021-22/86 DOR.SRTREC.51/12 .04.048/2021-22 dated 24 September 2021.

(A) Details of loans not in default transferred through assignment during the year ended 31 March 2025.

(A) 1 Company has not entered with direct assignment .

(B) Company has not entered Through sale .

(C) The Company has not acquired any loan not in default through assignment during the year ended 31 March 2025.

(D) The Company has not transferred or acquired any stressed loan during the year ended 31 March 2025.

NOTES:

1. As defined in Paragraph 4.1.30 of these Directions.

2. Provisioning norms shall be applicable as prescribed in these Directions.

3. All notified Indian Accounting Standards are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and breakup / fair value / NAV in respect of unquoted investments shall be disclosed irrespective of whether they are classified as long term or current in (5) above.

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Mar 31, 2024

Note 2.1:

The Company has entered into a Deed of Assignment dated 26th April 2019 for the assignment of its rights in the property held as stock in trade at Kandivali (East) for an agreed consideration The assignee has committed various defaults from time to time The Company has served a notice to the assignee to comply with the contractual obligations oy paying all the dues immediately Since, significant uncertainties and disputes relating to the completion of the transaction are continued during the year, the Company will recognise revenue under Ind AS 115 on fulfilment of specific performance obligation and resolution of significant uncertainties

Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of fmanciat position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant Inputs to the measurement, as follows:

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

Level 2: The fair value of financial instruments that ere not traded m an active market is determined ustng valualton techniques wh*h maxinnse the use of observable market data and rely as little as possible on entity specific estimates

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

No assets or Liabilities are valued at fair value in current year and in previous year

The carrying value of cash and cash equivalents and other financial assets recorded at amortised cost, is considered to be a reasonable approximation of fair value.

The carrying value of short term borrowings, trade payables and other financial liabilities recorded at amortised cost Is considered to be a reasonable approximation of fair value

ii) Risk management:

The Company''s activities expose it to market risk, liquidity risk and 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:

The Company''s risk management is carried out by a central treasury department of the Company under policies approved by the 8oard of Directors. The Board of Directors provide written principles for overall risk management, as well as policies covenng specific areas, such as foreign exchange risk, interest rate risk, market risk and credit risk

A) Credit Risk

Credit nsk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Company causing financial loss. It arises from cash and cash equivalents, deposits with banks and financial institutions, secunty deposits, loans given and pnncipally from credit exposures to customers relating to outstanding receivables. The Company''s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting date

The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and Incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties are obtained and used. The Company''s policy is to deal only witn creditworthy counterparties

In respect of trade and other receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any company of counterparties having similar charactenstics. The Company has very limited history of customer default, and considers tho credit quality of trade receivables that are not past due or impaired to be good.

££?«£ns“ ^dePOSrtS’^{10805 8nd de0V8,}''^V'' “ ^k’^$“* ^C0~ — •» counterparties are

Company provides for expected credrt losses on finandal assets by assessing individual financial instruments for expectation of any credit losses Since the assets have ow credit nsk. and are for varied natures and purpose, there is no trend that (he company can draws to appty consistently to entire population For such financial ,h ^ ^P°^I,Cy''? ^prov’^d(f^s t0T 12 month expected credlt losses uP°n initial recognition and provides for lifetime expected credii tosses upon significant increase in credit

^ ~ their km credit rtsir naturo.

B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of fundinn th™,^ _a« ^

facitiiies ,0 meet oMIgaLlorn when due. Due ,o me nature o, the bua,ne_S, me Company r^ntams be*,* In fund.ng by ^^avar^^cpt^Ss⁸™*

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Contractual maturities of financial liabilities

The Company" s capital management objectives are

- to ensure the Company''s ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.

^C?7^a"*''^{s capi,al} ^''IL.iremems in Orta to maintain an effic.nl overall finances structure wh.le avoid,ng excessive leverage This takes Into th^^^iTr^?^{at?0n teV}£^{S 0f}ri^C°~ ^Va"^{0US dasses 0f deb}‘ ^{1716 Company mana}9^es the capital structure and makes ad_fustmems to it m the l.ght of changes in the economic conditions ana the nsk charactenstics of the underlying assets In order to maintain or adjust the capital structure, the Company may adjust the amount of ⁹ dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt

Note 19 SEGMENT REPORTING

The Company determines Operating Segments as components of an entity for which discrete finance information is available that is evaluated regularly by Chief Operatmq

" ***** ^htT!° ^{a,k>Ca,e reSOurCCS and assessin}9 performance, a, The Company operates mainly In project hvoMn^SI^ lB Building. All ether activities are incidental thereto and integrated, which have similar risk and return.

Considering the nature of Compan/s business, as well as based on reviews by COOM to make decisions about resource allocation and performance measurement

""° ^£eparal!_i^r!^POft!^{ble SeQme}"‘^{as far as} Segment is concerned In accordance with the requirements of Ind AS -108 - "Operating Segments"'' presenbed under the Companies (Indian Accounting Standards) Rules. 2015. ^ ⁰⁰*^,m*''^ru& •

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Note 21 DISCLOSURES SPECIFIED BY THE MSMED ACT

As per the informal™ available win me company there are no Micro, Small and Meawm Enterprises as defined u-iUer the Micro. Small and Medium Enterprises Development Act, 2006“ and hence not reoortoo

Note 22 Other Statutory Information

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(ii) The Company does not have any transaction with companies struck off

(in) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during me financial year

auhiority^^ ** "* *"*** "‘^M ***''"* ^by *"^{y 0ank 0f f}''^na"^ca'' <* Government or any government

^(v,) ^

2S§:i3SSSr ^P*^re0°^{8 0}''^<’"^t''*^{s in} ^ ^manf1ef whatsoever by or on a***

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Benefioaries

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2SSS51ST^{per5WS or} ““^{es ,oem,te) ,n 8ny manw} ^ ^{w oy 1}- ¦- *—»^oi

(b) provide any guarantee, searity or the like on benatf of the Ultimate Beneficanes.

(vm) The Company does not have any transaction whch is not recorded In the books of accounts that has been surrendered or disoosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as search or survey or any olher relevant provisions of the income Tax Act, 1961 ^{ '' ^{search 0f}

2017 ^{M Mln} the

(X) The company has not Altered into any scheme of arrangement mi terms of sections 230 to 237 of the Companies Act

S ** ‘**" ^sanCtK>nea ^^9 “P^-1^ the form of term loans and overdraft facilities

(XM) There is no immovable property in me books of the company whose title deed is not held in the name of the company

Note 23 There are no matenal events after the reporting dale that require disclosure in these financial statements

^NOt° ²⁴ Ej ^an*f°^{Un,in9 6oRware ,or} ^.ntainmg its books of account which has a feature of recording audit

U-a.1 tedit log) facdity ano tne same has operated throughout the year for all relevant transactions recorded in th? ac^unbng software, except tnat audit trail feature is no: enabled for certain d.rect changes to tiTafe£££with the

^"9^h*<° ^the preparaton software. Further no instant of au<»t trail feature £hg

tampered witn was noted in respect of the accounting software ⁹

^r''^as^^{en aclJvated at} application and the privileged access to database continues to be restricted to kmited set of users who necessanly roqulre tn.s access for maintenance and administration of the database

Note 28 No dividend paid during the current year and previous year

^Nct* ²⁷tT^{nave bM}" ^r''^8raupe‘^{1 ,n0 where,er} nK6Mari *^mate«»"¦*««

---

Mar 31, 2018

Company Overview

India Home Loan Ltd. (IHLL) is a housing finance company incorporated under the Companies Act, 1956 and registered with National Housing Bank (NHB) for carrying out the business of housing finance.

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

There is no dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

1.2 Loans granted by the Company are secured by

(a) Equitable / Registered mortgage of property and / or

(b) Assignments of life insurance policies and / or

(c) Hypothication of assets and / or

(d) Personal guarantees and / or

(e) Undertaking to create a security

1.3 The Company has complied with the norms prescibed under Housing Finance Companies (NHB) Directions, 2010 for recognising Non-Performing Assets (NPAs) in preparation of accounts. As per the prudential norms prescribed by the National Housing Bank, in respect of credit exposures, the total provisioning made for NPA and standard assets till 31st March, 2018 is Rs.1,28,43,058/-(Previous Year ‘ 58,30,000/-). Details of which is as follows:

1.4 Value of imports calculated on CIF basis Nil

1.5 Expenditure in foreign currency Nil

1.6 Earnings in foreign exchange Nil

1.7 The balances appearing under unsecured loans, sundry creditors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.

1.08 The Company has appropriated a sum of Rs.94,32,173 /- (Previous Year Rs.24,97,935) to reserve fund which is in compliance with the requirement of section 29C of the National Housing Bank Act, 1987.

1.09 The Company leases office under cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs.22,52,426/-(Previous Year Rs.15,84,804/-) during the year.

1.10 Anciliary cost of INR 186.87 Lakhs incurred on borrowings is amortised over tenure of Loans. Year to date amortisation is INR 21.56 Lakhs.

1.11 There are no loans granted against collateral gold and jewellery

1.12 The board of Directors has recommended final dividend to be paid out of current year profits @ Rs 0.20 per equity share (FV of Rs 10/ each ) to the equity shareholders resulting in outflow of INR 34,37,837 (including dividend distribution tax ) .The dividend proposed by the board of Directors is subject to the approval of the shareholders in the ensuing Annnual General Meeting

NOTE 1.13 The following additional disclosures have been given in terms of the circular no. NHB/ND/DRS/Pol-No.35/2010-11 dated October 11,2010 issued by National Housing Bank:

NOTE 2- SEGMENT

The main business of the Company is to provide loans for purchase or construction of residential houses, all other activities of the Company revolve around the main business and accordingly there are no separate reportable segments, as per the Accounting Standard on ‘Segment Reporting’ (AS 17) issued by the Institute of Chartered Accountants of India / notified under the Companies act 2013.

NOTE 3

Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosures.

---

Mar 31, 2017

Company Overview

India Home Loan Ltd. (IHLL) is a housing finance company incorporated under the Companies Act, 1956 and registered with National Housing Bank (NHB) for carrying out the business of housing finance.

1 Property Loans consists of Non - Housing Loans such as mortgage Loans, Project Loans, commercial Loans, Plot Loans, Lease rental finance and other loans which are all against real estate properties.

2 As certified by the management, loans given by the Company are secured by equitable mortgage/ registered mortgage of the Property and assets financed and / or assignment of Life Insurance policies and / or personal guarantees and / or personal guarantees and / or undertaking to create a security and / or hypothecation of assets and are considered appropriate and good.

3 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Claims against the Company not acknowledged as debt Nil

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

There is no dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

5 Loans granted by the Company are secured by

(a) Equitable / Registered mortgage of property and / or

(b) Assignments of life insurance policies and / or

(c) Hypothication of assets and / or

(d) Personal guarantees and / or

(e) Undertaking to create a security

6 The company has complied with the norms prescibed under Housing Finance Companies (NHB) Directions, 2010 for recognising Non-Performing Assets (NPAs) in preparation of account. As per the prudential norms prescribed by the National Housing Bank, in respect of credit exposures, the total provisioning made till 31st March, 2017 is Rs.58,30,000/- (Previous Year Rs.40,50,000/-). Details of which is as follows:

The company has made a provision of Rs 5,830,000 against Rs 5,301,734 provisioning required to be made during the year ended 31.03.2017

7 Value of imports calculated on CIF basis Nil

8 Expenditure in foreign currency Nil

9 Earnings in foreign exchange Nil

10 The balances appearing under unsecured loans, sundry creditors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.

11 The company has appropriated a sum of Rs.24,97,935/- (Previous Year Rs.18,70,740) to reserve fund which is in compliance with the requirement of section 29C of the National Housing Bank Act, 1987.

12 The Company leases office under cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs.15,84,804/- (Previous Year Rs.13,00,334/-) during the year.

13. Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosures.

14 The board of Directors has recommended final dividend to be paid out of current year profits @ Rs 0.10 per equity share (FV of Rs 10/ each ) to the equity shareholders resulting in outflow of Rs 17.19 lakhs(including dividend distribution tax ) .The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annnual General Meeting

NOTE 15. The following additional disclosures have been given in terms of the circular no. NHB/ND/DRS/Pol-No.35/2010-11 dated October 11,2010 issued by National Housing Bank:

NOTE 16.- SEGMENT

The main business of the Company is to provide loans for purchase or construction of residential houses, all other activities of the Company revolve around the main business and accordingly there are no separate reportable segments, as per the Accounting Standard on ‘Segment Reporting’ (AS 17) issued by the Institute of Chartered Accountants of India / notified under the Companies act 2013.

---

Mar 31, 2016

1. Property Loans consists of Non - Housing Loans such as mortgage Loans, Project Loans, commercial Loans, Plot Loans, Lease rental finance and other loans which are all against real estate properties and which are not covered under the housing Loan criteria of National Housing Bank.

2. As certified by the management, loans given by the Company are secured by equitable mortgage/ registered mortgage of the Property and assets financed and / or assignment of Life Insurance policies and / or personal guarantees and / or personal guarantees and / or undertaking to create a security and / or hypothecation of assets and are considered appropriate and good.

3. Housing an a other property loans (current and Non current ) includes INR 129,14,662/- (outstanding balance) (PY outstanding balance - 1,54,66,597 /- ) given to the company in which key managerial persons exercise significant influence under normal course of business

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

There is no dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

5. Loans granted by the Company are secured by

(a) Equitable / Registered mortgage of property and / or

(b) Assignments of life insurance policies and / or

(c) Hypothication of assets and / or

(d) Personal guarantees and / or

(e) Undertaking to create a security

The Company has made a provision of Rs 40,50,000 as against Rs 37,54,482 provisioning required to be made during the year ended 31.3.2016

6. Value of imports calculated on CIF basis Nil

7. Expenditure in foreign currency Nil

8. Earnings in foreign exchange Nil

^9. The balances appearing under unsecured loans, sundry creditors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.

^10. In the opinion of the Board, assets other than fixed assets do have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

11. The company has appropriated a sum of Rs.18,70,740/- (Previous Year Rs.15,05,597) to reserve fund which is in compliance with the requirement of section 29C of the National Housing Bank Act, 1987.

12. The Company leases office under cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs.13,00,334/-(Previous Year Rs.11,52,216/-) during the year.

13. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosures.

14. NHB has imposed a penalty on the company amounting to Rs. 10,000 for delay in submission of Quarterly Return on 10 major exposures to corporates/companies/builders/other entities etc.

15. The following additional disclosures have been given in terms of the circular no. NHB/ND/DRS/Pol-No.35/2010-11 dated October 11,2010 issued by National Housing Bank:

NOTE 16- SEGMENT

The main business of the Company is to provide loans for purchase or construction of residential houses, all other activities of the Company revolve around the main business and accordingly there are no separate reportable segments, as per the Accounting Standard on ''Segment Reporting'' (AS 17) issued by the Institute of Chartered Accountants of India / notified under the Companies act 2013

---

Mar 31, 2014

1. Property Loans consists of Non - Housing Loans such as mortgage Loans, Project Loans, commercial Loans, Plot Loans, Lease rental finance and other loans which are all against real estate properties and which are not covered under the housing Loan criteria of National Housing Bank.

1.1 As certified by the management, loans given by the Company are secured by equitable mortgage/ registered mortgage of the Property and assets financed and / or assignment of Life Insurance policies and / or personal guarantees and / or personal guarantees and / or undertaking to create a security and / or hypothecation of assets and are considered appropriate and good

1.2 Housing and other property loans ( current and Non current ) includes Rs. 75,00,000/- given to the company in which key managerial persons excise significant influence under normal course of business

NOTE 2. ADDITIONAL INFORMATION TO FINANCIAL STATEMENTS

Note Particulars Current Year Previous Year (Rs.) (Rs.)

2.1 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Claims against the Company not acknowledged as debt Nil Nil

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

There is no dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

2.3 Loans granted by the Company are secured or partly secured by

(a) Equitable mortgage of property and / or

(b) Pledge of shares, units, other securities, assignments of life insurance policies and / or

(c) Hypothecation of assets and / or

(d) Bank guarantees, Company guarantees or Personal guarantees and / or

(e) Undertaking to create a security

2.4 In the opinion of the company, there is only one reportable business segment i.e. Housing Finance Business Segment geographically only located in India for the purpose of Accounting Standard on "Segment Reporting (AS-17)

notified by the Companies (Accounting Standards) Rules, 2006

2.5 The balances appearing under unsecured loans, sundry creditors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.

2.6 In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

2.7 The company has appropriated a sum of Rs. 12,00,000/- (Previous Year Rs.12,76,780 ) to reserve fund which is in compliance with the requirement of section 29C of the National Housing Bank Act, 1987.

2.8 The Company leases office under cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs. 14,09,624/- (Previous Year Rs. 11,10,000/-) during the year.

2.9 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosures.

---

Mar 31, 2013

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

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

1.2 Loans granted by the Company are secured or partly secured by

(a) Equitable mortgage of property and / or

(b) Pledge of shares, units, other securities, assignments of life insurance policies and / or

(c) Hypothication of assets and / or

(d) Bank guarantees, Company guarantees or Personal guarantees and / or

(e) Undertaking to create a security

1.3 The company has complied with the norms prescibed under Housing Finance Companies (NH6) Directions, 2010 for recognising Non-Performing Assets (NPAs) in preparation of accounts. The NPA consisting of the principal loans outstanding where payments of EMI were in arrears for over 90 days amounted to 765,35,761/- (Previous Year 787,48,942/-). As per the prudential norms prescribed by the National Housing Bank, in respect of credit exposures, the total provisioning made till 31st March, 2013 is 7 563,98,576/- (Previous Year 7 53,98,576/-). Details of which is as follows:

1.4 In the opinion of the company, there is only one reportable business segment i.e Housing Finance Business Segment geographically only located in India for the purpose of Accounting Standard on "Segment Reporting (AS-17) notified by the Companies (Accounting Standards) Rules, 2006

1.5 The balances appearing under unsecured loans, sundry creditors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.

1.6 In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

1.7 The company has appropriated a sum of 7 12,76,780/- (Previous Year 7 NIL ) to reserve fund which is in compliance with the requirement of section 29C of the National Housing Bank Act 1987.

1.8 The Company leases office under cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are 711,10,000/- (Previous Year 79,00,000/-) during the year.

1.9 previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosures.

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Mar 31, 2012

Note Particulars 31st March. 2012 31st March. 2011 (Rs.) (Rs.)

1.1 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Claims against the Company not acknowledged as debt Nil Nil

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

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditor

1.3 Loans granted by the Company are secured or partly secured by

(a) Equitable mortgage of property and / or

(b) Pledge of shares, units, other securities, assignments of life insurance policies and / or

(c) Hypothecation of assets and / or

(d) Bank guarantees, Company guarantees or Personal guarantees and / or

(e) Undertaking to create a security

Note: Figures in bracket indicates previous year figures

The company has charged/(reversed) excess provision of Rs. 10,52,525/- (Previous Year Rs. 8,14,634/-) during the current year to make up the total provisioning of Rs. 53,98,576/- (Previous Year Rs. 43,46,051/-).

1.4 In the opinion of the company, there is only one reportable business segment i.e Housing Finance Business Segment geographically only located in India for the purpose of Accounting Standard on "Segment Reporting (AS-17) notified by the Companies (Accounting Standards) Rules, 2006

1.5 The following additional disclosures have been given in terms of the circular no. NHB/ND/DRS/Pol-No.35/2010- 11 dated October 11,2010 issued by National Housing Bank:

1.6 The balances appearing under unsecured loans, sundry creditors, loans and advances, and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.

1.7 In the opinion of the Board, assets other than fixed assets do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

1.8 The company has appropriated a sum of Rs. 8,75,961/- (Previous Year Rs. 4,35,400/-) to reserve fund which is in compliance with the requirement of section 29C of the National Housing Bank Act, 1987.

1.9 The Company leases office under cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs. 9,00,000/- (Previous Year Rs. 8,20,000/-) during the year.

1.10 Since the Company recognises gratuity and leave salary expense on payment basis no liability for the same has been ascertained and provided in the accounts. Hence, the company has not complied with the provisions of AS- 15 "Accounting for Retirement Benefit".

1.11 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosures.

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Mar 31, 2011

1. Contingent Liabilities

Nature Amount (Rs)

Claims against company not acknowledged as debts : Nil

2. During the year under audit, the Company has received the balance 75% of the total consideration aggregating to Rs 5,94,25,000/- from the proposed allottees. Accordingly, the Board approved the conversion of 59,42,500 Convertible Warrant of Rs 10/- each aggregating to Rs 5,94,25,000/- into 59,42,500 equity shares of Rs 10/- each aggregating to Rs 5,94,25,000/- in the Board Meeting held on 17th December, 2010, in accordance with the provisions of the Companies Act, 1956 and Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation, 2009 to promoters & non-promoters. Further the company has also obtained the listing and trading permission for the said 59,42,500 equity shares of Rs 10/- each from the Mumbai Stock Exchange.

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

4. The balances appearing under sundry creditors, loans advanced, deposits and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confir- mation and/or reconciliation.

5. Housing loans are secured or partly secured by:

Equitable Mortgage/Registered Simple Mortgage of Property and/or

Assignment of LIC Polices and/or

Personal Guarantees, Promissory Notes and/or

Undertaking to create a security wherever applicable

8. The company provides for all employee benefits on payment basis and hence liability towards gratuity and leave salary as required under AS-15 on Retirement Benefits is not ascertained and accordingly not provided by the company as on the balance sheet date.

9. Micro, Small and Medium Enterprises in terms of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by the auditors. The Company has not received any instruction from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, disclosures if any, relating to amounts unpaid as at the year end together with interest payable as required under the said Act have not been given.

10. Additional information pursuant to the provisions of Paragraph 3 and 4 of Part II of Schedule VI to the Companies Act, 1956:

11. The company operates in a single segment of Housing Finance in India and hence the segment-wise reporting as per Accounting Standard -17 on "Segment Reporting" is not applicable.

12. The Non Performing Assets (NPA) consisting of the principal loans outstanding where payments of EMI were in arrears for over 90 days amounted to Rs 1,36,25,233/- (Previous Year Rs 1,71,43,796/-). As per the prudential norms prescribed by the National Housing Bank, in respect of credit exposures, the total provisioning required till 31st March, 2011 is Rs 43,46,051/- (Previous Year Rs 51,60,685/-). Details of which is as follows:

The company has reversed excess provision of Rs 8,14,634/- (Previous Year Rs 23,20,200/-) during the current year to make up the total provisioning of Rs 43,46,051/- (Previous Year Rs 51,60,685/-).

15. The company has appropriated a sum of Rs 4,35,400/- (Previous Year Rs 5,41,000/-) to reserve fund which is in compliance with the requirement of section 29C of the National Housing Bank Act, 1987.

16. National Housing Bank has levied a penalty of Rs. 1,000/- on the Company for late submission of the Annual Return as on 31st March 2010. Accordingly, the Company has paid the penalty.

17. The Company leases office under cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs 8,20,000/- (Previous Year Rs 4,50,000/-) during the year.

18. Deferred Tax

In accordance with Accounting Standard 22 (AS-22), "Accounting for taxes on Income", issued by the Institute of Chartered Accountants of India, the company has provided for deferred tax for year under audit. The net deferred tax asset of Rs 50,06,536/- as at the balance sheet date has been carried forward. The net deferred tax asset consists of the following components:

(*) The management is of the opinion that in relation to brought forward assessed loss deferred tax assets on the same is to be recognized in presence of virtual certainty as to absorption of the loss in the foreseeable future based on the current level of operation of the company and effective application of the fresh funds received by the company, during the year as explained in note 2 above, in business in the form of disbursements of new loans. Hence, deferred tax asset on brought forward loss has been recognised.

19. Previous year figures have been regrouped and recast to the extent practicable, wherever necessary to conform to current year classification.

---

Mar 31, 2010

1. Contingent Liabilities

Nature Amount (Rs.)

Claims against company not acknowledged as debts: Nil

Reference to the High Court by the Income tax department for 2,36,29,079/-

assessment years 1996-97, 1997-98 and 2001-02 against the company (Refer Note 15 below)

2. The Company in the Annual General Meeting (AGM) held on 22nd August 2009, approved the issue & allotment of 59,42,500/- Convertible Warrant of Rs. 10/- each aggregating to Rs. 5,94,25,000/- in accordance with the provisions of the Companies Act, 1956 and Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation, 2009 to promoters & non-promoters. Accordingly, 25% of the total consideration of Rs. 5,94,25,000 i.e Rs. 1,48,56,250/- has been received by the company and in-principle approval of the Mumbai Stock Exchange (BSE) for the same is also obtained

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

4. The balances appearing under sundry creditors, loans advanced, deposits and certain banks are subject to confirmation and reconciliation and consequential adjustment, if any, will be accounted for in the year of confirmation and/or reconciliation.

5. Housing loans are secured or partly secured by:

- Equitable Mortgage of Property and/or

- Assignment of LIC Polices and/or

- Personal Guarantees, Promissory Notes and/or

- Undertaking to create a security

6. The company provides for all employee benefits on cash basis and hence liability towards the same as required under AS-15 on Retirement Benefits is not ascertained by the company as on the balance sheet date.

7. Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provision of this Act is not expected to be material.

8. The company operates from a single segment of Housing Finance in India and hence the segment-wise reporting as per Accounting Standard -17 on "Segment Reporting" is not applicable.

9. The Non Performing Assets (NPA) consisting of the principal loans outstanding where payments of EMI were in arrears for over 90 days amounted to Rs. 1,71,43,796/- (Previous Year Rs. 1,07,34,277/-). As per the prudential norms prescribed by the National Housing Bank, in respect of credit exposures, the total provisioning required till 31st March, 2010 is Rs. 51,60,685/- (Previous Year Rs. 28,40,485/-). Details of which is as follows:

10. Disclosure as per Accounting Standard -18

(a) List of Related Parties

Key Managerial Personnel

- Mr Mahesh Pujara

- Mr Rishabh Siroya

- Mr Ashok Patel

- Mr Subhash Patel - Mr Anant Bhalotia

- Mr Mitesh Pujara

Relatives of Key Managerial Personnel : Nil

Associated Concerns : Nil

11. The company has appropriated a sum of Rs. 5,41,0007- to a special reserve in terms of section 36 (1)(viii) of the Income Tax Act, 1961 which is in compliance with the requirement of section 29C of the National Housing Bank Act, 1987.

12. The Company leases office under cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are Rs. 4,50,0007- (Previous Year Rs. 2,55,000/-) during the year.

13. The disputed demand in respect of Income Tax outstanding for the Assessment Year 1996-97, 1997-98 and 2001- 02 is Rs. 2,36,29,079/-, for which the income tax department has referred the matter to the Bombay High Court and the same is pending. Based on the decision of the appellate authorities and the interpretations of the other relevant provisions, the company has been legally advised that the demand is likely to be deleted and accordingly no provision has been made.

14. Deferred Tax

In accordance with Accounting Standard 22 (AS-22), "Accounting for taxes on Income", issued by the Institute of Chartered Accountants of India, the company has provided for deferred tax for year under audit. The net deferred tax asset of Rs. 55,83,031/- as at the balance sheet date has been carried forward. The net deferred tax asset consists of the following components:

(*) The management is of the opinion that in relation to brought forward assessed loss as per the Appellate Tribunals order and as upheld by the Bombay High Court, deferred tax assets on the same is to be recognized in presence of virtual certainty as to absorption of the loss in the foreseeable future based on the current level of operation of the company and effective application of the fresh funds received by the company, during the year as explained in note 2 above, in business in the form of disbursements of new loans. Hence, deferred tax asset on brought forward loss has been recognised.

15. Previous year figures have been regrouped and recast to the extent practicable, wherever necessary to conform to current year classification.

16. Balance Sheet and General Business Profile (in terms of Part IV of Schedule VI to the Companies Act, 1956) is annexed herewith.