Notes to Accounts of Intec Capital Ltd.

Mar 31, 2024

4.9 Provision, contingent liabilities and

contingent assets

a) Provisions

Provisions are recognized when the
Company has a present obligation (legal
or constructive) as a result of a past
event, and it is probable that an outflow of
resources embodying economic benefits
will be required to settle the obligation
and a reliable estimate can be made of
the amount of obligation. Provisions are
measured at the best estimate of the
expenditure required to settle the present
obligation, at the balances sheet date.

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

b) Contingent Liabilities

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

c) Contingent Assets

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

4.10 Earnings per share

Basic earnings per equity share is computed
by dividing net profit/ loss attributable to the
equity shareholders of the company by the
weighted average number of equity shares
outstanding during the financial year.

For the purpose of calculating diluted
earnings per share, the net profit or loss for
the year attributable to equity shareholders
and the weighted average number of shares
outstanding during the year are adjusted
for the effects of all dilutive potential equity
shares.

4.11 Leases

The determination of whether an arrangement
is, or contains, a lease is based on the
substance of the arrangement at the inception
of the lease. The arrangement is, or contains,
a lease if fulfilment of the arrangement is
dependent on the use of a specific asset or
assets and the arrangement conveys a right to
use the asset or assets, even if that right is not
explicitly specified in an arrangement.

The Company has taken certain assets
on Operating Lease. Operating Lease is a
contract, which conveys the right to Lessee,
to control the use of an identified asset for a
period of time, the lease term, in exchange
for consideration. The Company assesses
whether a contract is, or contains, a lease on
inception.

The lease term is either the non-cancellable
period of the lease and any additional periods
when there is an enforceable option to extend
the lease and it is reasonably certain that the
Company will extend the term, or a lease
period in which it is reasonably certain that the
Company will not exercise a right to terminate.
The lease term is reassessed if there is a
significant change in circumstances.

At commencement, or on the modification, of
a contract that contains a lease component,
the Company allocates the consideration in
the contract to each lease component on the
basis of its relative stand-alone prices.

The Company recognizes a right-of-use
asset and a lease liability at the lease
commencement date. The right-of-use asset
is initially measured at cost, which comprises
the initial amount of the lease liability adjusted
for any lease payments made at or before the

commencement date, plus any initial direct
costs incurred and an estimate of costs to
dismantle and remove the underlying asset or
to restore the underlying asset or the site on
which it is located, less any lease incentives
received.

The right-of-use asset is amortized /
depreciated using straight-line method from the
commencement date to the end of the lease
term. If the lessor transfers ownership of the
underlying asset to the Company by the end
of the lease term or if the Company expects
to exercise a purchase option, the right-of-use
asset will be depreciated over the useful life
of the underlying asset, which is determined
on the same basis as the Company''s other
property, plant and equipment. Right-of-use
assets are reduced by impairment losses, if
any, and adjusted for certain re-measurements
of the lease liability.

The lease liability is initially measured at the
present value of the total lease payments
due on the commencement date, discounted
using either the interest rate implicit in the
lease, if readily determinable, or more usually,
an estimate of the Company''s incremental
borrowing rate on the inception date for a loan
with similar terms to the lease. The incremental
borrowing rate is estimated by obtaining
interest rates from various external financing
sources.

The lease liability is measured at amortized
cost using the effective interest method. It is
re-measured when there is a change in future
lease payments arising from a change in
an index or rate, if there is a change in the
Company''s estimate of the amount expected to
be payable under a residual value guarantee,
if the Company changes its assessment of
whether it will exercise a purchase, extension
or termination option or if there is a revised
in-substance fixed lease payment. When
the lease liability is re-measured in this way,
a corresponding adjustment is made to the
carrying amount of the right-of-use asset, or is
recorded in the statement of profit or loss if the
carrying amount of the right-of-use asset has
been reduced to zero.

In accordance with Ind AS 116, the Company
does not recognize right-of-use assets and
lease liabilities for leases of low-value assets
and short-term leases i.e. leases with a lease

term of 12 months or less and containing no
purchase options. Payments associated with
these leases are recognized as an expense on
a straight-line basis over the lease term.

4.12 Statement of Cash flows:

For the purpose of Standalone Statement
of Cash Flows, cash and cash equivalents
comprise cash on hand, cash at banks,
short-term deposits with an original maturity
of three months or less and other short term
investments, that are readily convertible to
known amounts of cash and which are subject
to an insignificant risk of changes in value.

4.13 Impairment of Non-Financial Assets

The Company assesses, at each reporting
date, using external and internal sources,
whether there is an indication that a non¬
financial asset may be impaired and also
whether there is an indication of reversal of
impairment loss recognized in the previous
period/s. If any indication exists, or when annual
impairment testing for an asset is required,
the Company determines the recoverable
amount and impairment loss is recognized
when the carrying value of an asset exceeds
its recoverable amount.

The recoverable amount is determined:

- in the case of an individual asset, at the higher
of the asset''s fair value less cost of sell and
value in use; and

- in the case of cash generating unit (a group of
assets that generates identified, independent
cash flows) at the higher of the cash generating
unit''s fair value less cost to sell and value in
use.

In assessing value in use, estimated future
cash flows are discounted to their present
value using a pre-tax discount rate that effects
current market assessments of the time
value of money and the risks specific to that
asset. In determining fair value less costs of
disposal, recent market transactions are taken
into account. If no such transactions can be
identified, an appropriate valuation model is
used. These calculations are corroborated by
valuation multiples, quoted share prices for
publicly traded companies or other available
fair value indicators.

An impairment loss for an asset is reversed,
if and only if, the reversal can be related

objectively to an event occurring after the
impairment loss was recognized, the carrying
amount of an asset is increased to its revised
recoverable amount, provided that this
amount does not exceed the carrying amount
that would have been determined (net of any
accumulated amortization or depreciation)
had no impairment loss being recognized for
the asset in prior year/s.

4.14 Fair value measurement

The Company measures its qualifying financial
instruments at fair value on each Balance
Sheet date.

Fair value is the price that would be received
against sale of an asset or paid to transfer
a liability in an orderly transaction between
market participants at the measurement
date. The fair value measurement is based
on the presumption that the transaction to
sell the asset or transfer the liability takes
place in the accessible principal market or
the most advantageous accessible market as
applicable.

The Company uses valuation techniques that
are appropriate in the circumstances and for
which sufficient data is available to measure
fair value, maximizing the use of relevant
observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value
is measured or disclosed in the financial
statements are categorized within the fair
value hierarchy into Level I, Level II and
Level III based on the lowest level input that
is significant to the fair value measurement as
a whole. For detailed information on the fair
value hierarchy, refer note no. 32.14.

For assets and liabilities that are fair valued in
the financial statements on a recurring basis,
the Company determines whether transfers
have occurred between levels in the hierarchy
by re-assessing categorization (based on the
lowest level input that is significant to the fair
value measurement as a whole) at the end of
each reporting period.

For the purpose of fair value disclosures, the
Company has determined classes of assets
and liabilities on the basis of the nature,
characteristics and risks of the asset or liability
and the level of the fair value hierarchy.

17.4 The Company has availed term loans and working capital facilities from various banks, however, slow down of
its lending business and increased level of non-performing / impaired loan portfolio, has impacted its cash flow /
liquidity, and the Company is un-able to service term loans and working capital facilities including interest thereon
to certain banks as detailed in para 17.3 above. As the proposals for restructuring / settlement submitted by the
Company was not accepted by the banks, and as in view of the Company the same was not justifiable considering
the present financial and business compulsions of the Company, it is in talks with the banks for reconsideration of
their decision and has also approached the Hon''ble Delhi High Court for necessary relief in the regard. The matter is
sub-judice. As the Company is reasonably hopeful that its proposals for restructuring / settlement which include the
waiver / reduction of interest will be finally approved / accepted, interest of Rs. 5,018.76 lakhs i.e. Rs. 1,459.32 lakhs
for the current year and Rs. 3,559.44 lakhs for the period upto 31 March, 2023, though accrued on these loans, has
not been provided in these financial statements.

22.1 Nature and purpose of other equity:

i Security Premium

Securities premium is used to record the premium on issue of shares. It can be utilised only for limited purposes in
accordance with the provisions of the Companies Act, 2013

ii Statutory Reserve as per Section 45-IC(1) of RBI Act, 1934

Reserve fund is created as per the terms of section 45-IC(1) of the Reserve Bank of India Act, 1934 as a statutory
reserve.

iii Impairment Reserve

Reserve Bank of India (RBI) issued Notification No. DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated 13
March, 2020 in respect of ''Implementation of Indian Accounting Standards'' by NBFCs. In terms of the said circular,
in case where the impairment allowance under Ind AS 109 is lower than the provisioning required under Income
Recognition, Asset Classification and Provisioning (IRACP) Norms (including standard asset provisioning) issued by
RBI, the Company is required to appropriate the difference from their net profit after tax to “Impairment Reserve”. No
withdrawals are permitted from this reserve without prior permission from the Department of Supervision, RBI. Refer
Note. 32.17 in respect of the disclosure in respect of comparison between impairment allowance and provisioning
under IRACP Norms.

iv Retained Earnings

The profit / loss earned till date, less any transfers/appropriations to any other reserve, dividends or other distribution
paid to shareholders.

v Other Comprehensive Income / (Loss)

The other comprehensive income / (loss) till date, which is available for set off or adjustable only against such
income/loss in future.

The above information regarding dues to Micro, Small and Medium Enterprises has been determined to the extent
such parties have been identified on the basis of information collected with the Company.

32.3 Employee Benefits (Ind AS-19)

(a) Defined Benefit plans:

Gratuity : Payable on separation as per the Payment of Gratuity Act, 1972, as amended @ 15 days pay, for
each completed year of service to eligible employees who render continuous service of 5 years or more. The
Company''s liability towards Gratuity is funded / managed by Life Insurance Corporation of India (LIC).

(b) Other Long-Term Benefit:

Compensated Absences : Employees of the Company are entitled to accumulate their earned/privilege leave
up to a maximum of 30 days which can be availed / utilized in coming year/s, while in service. During the
current year the amount of Rs. 0.61 lakhs has been credited (previous year: Rs. 0.49 lakhs has been debited)
in the Statement of Profit and Loss towards reversal of the excess provision based on actuarial valuation.

Notes:

• Transaction values are excluding taxes and duties.

• Related parties as defined under Ind AS 24 ''Related Party Disclosures'' have been identified based on
representations made by key managerial personnel and information available with the Company. All above
transactions are in the ordinary course of business and on arm''s length basis

• Provisions for gratuity, compensated absences and other long-term service benefits are made for the Company
as a whole and the amounts pertaining to the Key Managerial Personnel are not specifically identified and
hence are not included above.

32.6 Leases.

Company''s significant leasing arrangements are in respect of the premises (commercial premises, offices etc.) which

contain extension option after the initial contract period, the amounts recognized on account of leases are as under:

32.8 Corporate Social Responsibility (CSR):

The Company has constituted a CSR committee as required under Section 135 of the Companies Act, 2013, together
with relevant rules as prescribed in Companies (Corporate Social Responsibility Policy) Rules, 2014 (''CSR rules'').
The CSR Committee had approved the CSR Policy and also identified the broad areas of CSR activities which it
propose to carry out viz. Child Education and Women Empowerment. The Company has made serious deliberations
and chosen the CSR programs which would be undertaken on a long term and continuous basis. Such programs will
benefit communities where the Company operates or likely to operate and create goodwill for the Company. As the
Company has incurred average net losses during the last three years, no amount is required to be spent on account
of CSR during the year ended 31st March, 2024 / 31st March, 2023.

32.9 Going Concern:

Accumulated losses of the earlier years and the substantial losses during the current year which are mainly due to non
carrying out the lending activities and substantial reduction in the recoveries from the borrowers / customers, have
resulted in erosion of substantial net worth and significant financial crunch being faced by the Company, and there are
defaults in the repayments of its borrowings, delays in payments of other liabilities/commitments including employees
and statutory dues etc. Also, Company''s Net Owned Fund and Leverage Ratio are not in compliance of the Master
Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023

as amended from time to time issued vide notification no. RBI/DoR/2023-24/106 DoR.FIN.REC.No.45/03.10.119 /
2023-24 dated October 19, 2023, as updated / amended from time to time (“RBI Master Directions”). These events
/ conditions indicate the existence of uncertainty on the Company''s ability to continue as a going concern. However,
the financial statements have been prepared on a going concern basis on the strength of continued support from
the promoters and considering the ongoing discussions / efforts for One Time Settlements (OTS) of borrowings and
Company''s ability to generate adequate resources for the foreseeable future.

32.10 Disclosures as required under Master Direction-Reserve Bank of India (Non-Banking Financial Company - Scale
Based Regulation) Directions, 2023 as amended from time to time and other applicable directions/circulars are
enclosed vide Annexure - I.

32.11 Capital

The Company maintains an actively managed capital base to cover risks inherent in the business which includes
issued equity capital and other reserves attributable to equity holders of the Company. As an NBFC, the RBI requires
the Company to maintain a minimum capital to risk weighted assets ratio (“CRAR”) consisting of Tier 1 and Tier 2
capital of 15% of the aggregate risk weighted assets. Further, the total of the Tier 2 capital cannot exceed 100% of
the Tier 1 capital at any point of time. The capital management process of the Company ensures to maintain a healthy
CRAR at all the times.

Capital Management

The primary objectives of the Company''s capital management policy is to maintain appropriate levels of capital
to support its business strategy taking into account the regulatory, economic and commercial environment. The
Company aims to maintain a strong capital base to support the risks inherent to its business and growth strategies.
The Company endeavors to maintain a higher capital base than the mandated regulatory capital at all times.
Planning

The Company''s assessment of capital requirement is aligned to its planned growth which forms part of an annual
operating plan which is approved by the ALCO and also a long-range strategy. These growth plans are aligned to
assessment of risks- which include credit, liquidity and interest rate.

The Company monitors its capital to risk-weighted assets ratio (CRAR) on a yearly basis through its Assets Liability
Management Committee (ALCO).

The Company endeavors to maintain its CRAR higher than the mandated regulatory norm. Accordingly, increase in
capital is planned well in advance to ensure adequate funding for its growth.

The Company is also the provider of equity capital to its wholly owned subsidiary and associates and also provides
them with non-equity capital where necessary. These investments are funded by the Company through its equity
share capital and other equity which inter alia includes securities premium and retained earnings.

Regulatory capital

32.13 Fair Values

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

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

This note describes the fair value measurement of both financial and non-financial instruments.

Valuation framework

The Company has an internal fair value assessment team which assesses the fair values for assets qualifying for fair
valuation.

The Company''s valuation framework includes:

• Benchmarking prices against observable market prices or other independent sources;

• Development and validation of fair valuation models using model logic, inputs, outputs and adjustments.
These valuation models are subject to a process of due diligence and validation before they become operational and
are continuously calibrated. These models are subject to approvals by various functions of the Company. Finance
function is responsible for establishing procedures, governing valuation and ensuring fair values are in compliance
with Indian accounting standards.

Valuation methodologies adopted

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. The following
methods and assumptions were used to estimate the fair values:

a. Fair values of strategic investments in equity instruments designated under FVOCI have been measured
under level 3.

b. Fair value of loans held under a business model that is achieved by both collecting contractual cash flows and
partially selling the loans through partial assignment to willing buyers and which contain contractual terms that
give rise on specified dates to cash flows that are solely payments of principal and interest are measured at
FVOCI. The fair value of these loans has been determined under level 3.

c. The Company has disclosed financial instruments such as cash and cash equivalents, other bank balances,
other financial assets and liabilities at carrying value because their carrying amounts are a reasonable
approximation of the fair values due to their short-term nature.

32.14 Fair Values Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:

Level 1: Valuation based on quoted market price: financial instruments with quoted prices for identical instruments in
active markets that the Company can access at the measurement date.

Level 2: Valuation based on using observable inputs: financial instruments with quoted prices for similar instruments
in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments
valued using models where all significant inputs are observable.

Level 3: Valuation technique with significant unobservable inputs: - financial instruments valued using valuation
techniques where one or more significant inputs are unobservable.

Disclosures of fair value measurement hierarchy for financial instruments are given below:

Credit risk

Credit risk is the risk of financial loss arising out of a customer or counterparty failing to meet their repayment
obligations to the Company. It has a diversified lending model and focuses on broad categories viz: business,
mortgages, and commercial lending. The Company assesses the credit quality of all financial instruments that are
subject to credit risk.

Classification of financial assets under various stages

The Company classifies its financial assets in three stages having the following characteristics:

Stage1: unimpaired and without significant increase in credit risk since initial recognition on which a 12-month
allowance for ECL is recognised;

Stage 2: a significant increase in credit risk since initial recognition on which a lifetime ECL is recognised;

Stage 3: objective evidence of impairment, and are therefore considered to be in default or otherwise credit impaired
on which a lifetime ECL is recognised.

Unless identified at an earlier stage, all financial assets are deemed to have suffered a significant increase in credit
risk when they are 90 days past due (DPD) and are accordingly transferred from stage 1 to stage 2. For stage 1 an
ECL allowance is calculated based on a 12-month Point in Time (PIT) probability weighted probability of default (PD).
For stage 2 and 3 assets a life time ECL is calculated based on a lifetime PD.

The Company has calculated ECL using three main components: a probability of default (PD), a loss given default
(LGD) and the exposure at default (EAD) along with an adjustment considering forward macro-economic conditions
[for a detailed note for methodology of computation of ECL please refer to significant accounting policies note no
4.3(i) to the financial statements].

Financial instruments other than loans were subjected to simplified ECL approach under Ind AS 109 ''Financial
Instruments'' and accordingly were not subject to sensitivity of future economic conditions.

The table below summarises the approach adopted by the Company for various components of ECL viz. PD, EAD
and LGD across product lines using empirical data where relevant

32.20 The Ministry of Corporate Affairs (MCA) has issued a notification Companies (Accounts) Amendment Rules, 2021,
which is effective from 1st April, 2023, states that every Company which uses accounting software for maintaining
its books of account shall use only the accounting software where there is a feature of recording audit trail of each
and every transaction, and further creating an edit log of each change made to books of account along with the
date when such changes were made and ensuring that the audit trail cannot be disabled. The Company has used
accounting software for maintaining its books of account which has feature of recording audit trail (edit log) facility
and the same has operated throughout the year for all relevant transactions recorded in the software, except in
certain components where the audit trail were not recorded / operating due to system limitations. Further, it was not
tempered at any time during the year.

32.21 During the previous year ended 31 March, 2023, Company had written off loans having gross amount (including
interest accrued thereon) of Rs. 5,080.47 lakhs and also reversed impairment loss allowance of Rs. 4,026.86 lakhs
held on these loans, as in view of the management, there was very low probability of recovery of these loans, however,
the litigation / recovery process are continued in the normal course. The reversal of impairment loss allowance on
these loans after their write off had also resulted in reversal of deferred tax assets of Rs. 1,013.48 lakhs during the
previous year. Further, during the year, an impairment loss allowance of Rs. 811.01 lakhs had been booked on the
investment and loan given to the Subsidiary Company, based on the latest assessment of its recoverability.

32.22 In absence of virtual uncertainty regarding availability of the sufficient taxable income in future, the deferred tax
assets has not been recognised on accumulated brought forwarded and current tax losses, however, has created
Deferred tax assets (net) of Rs. 322.57 lakhs during the current year mainly on impairment on loan and investment
in Subsidiary (as detailed in note 32.21 above) and had reversed the Deferred tax assets (net) of Rs. 863.52 lakhs
during the previous year, i.e. net of reversal of deferred tax assets of Rs. 1,013.48 lakhs on impairment loss on the
loans (as detailed in note 32.21 above) and creation of deferred tax liabilities of Rs. 149.96 lakhs on other temporary
differences.

32.23 Wilful Defaulter:

The Company has not been declared wilful defaulter by any bank or financial institution or other lender company, as
such the declaration as wilful defaulter is not applicable.

32.24 Relationship with Struck off Companies

The Company has the transactions with the company struck off under Section 248 of Companies Act, 2013 or Section
560 of Companies Act, 1956, as under:

32.26 The company did not have any transaction which had not been recorded in the books of accounts, which had been
surrendered or disclosed as income during the year in the tax assessments under the Income TaxAct, 1961.

32.27 The Company has not traded or invested in crupto currency or virtual currency during the year.

32.28 The company has not advanced or loaned or invested any funds (either from borrowed funds or share premium or
any other sources or kind of funds) to or in any other person or entity, including foreign entity (“Intermediaries”), with
the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company
(“Ultimate Beneficiaries”) or provided any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

32.29 The Company has not received any funds from any person or entity, including foreign entity (“Funding Parties”), with
the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate
Beneficiaries”) or provided any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

32.30 Previous year''s figures have been reclassified / regrouped wherever necessary to conform to current year
classification.

As per our report of even date

For S. P. Chopra & Co. For and on behalf of the Board of Directors of

Chartered Accountants Intec Capital Limited

Firm Registration No. 000346N

(Gautam Bhutani) (Sanjeev Goel) (S. K. Goel)

Partner Managing Director Director

Membership No.: 524485 DIN: 00028702 DIN: 00963735

Place: New Delhi (Vinod Kumar) (Radhika Garg)

Date: 21 June, 2024 Chief Financial Officer Company Secretary

M. No. ACS - 36587

---

Mar 31, 2018

1. Corporate Information

Intec Capital Limited (‘the Company’) incorporated in India on February 15, 1994, was registered with

the Reserve Bank of India (‘RBI’) as a Non-Banking Financial Company (‘NBFC’) vide Certificate No.

B-14.00731dated May4, 1998 in the name of Intec Securities Limited. Subsequently, due to change in

name of the Company, the Company received a revised Certificate of Registration (‘CoR’) in the name

of Intec Capital Limited on November 4, 2009 under Section 45-1A of the Reserve Bank of India Act,

1934. It is a Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-ND-SI).

The Company is primarily engaged in the business of providing machinery loans to Small and Medium Enterprises (‘SME’) customers.

2.1 Rights, preferences and restrictions attached to each class of shares

The Company has only one class of Equity Share having par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. All Equity Shares are entitled to receive dividend as declared from time to time. The voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company in proportion of their shareholding.

3.1 As per Section 45-IC of the Reserve Bank of India Act, 1934 (‘RBI Act’), every NBFC is required to transfer a sum not less than twenty percent of its net profit for the year to the ‘Statutory Reserve as per Section 45-IC of RBI Act’. As during the year there is no profit, there is no transfer to the said reserve, (previous year Rs. 7.26 lakhs being 20% of the net profit was transfered to the said reserve).

- repayable on equitable monthly and quarterly installments

## repayable at the time of maturity along with interest accrued

4.1 Loans also guaranteed by directors and other parties

- loans of Rs. 6,119.99 lakhs secured by personal guarantee of managing director and lien on Fixed deposits of Rs. 89.67 lakhs

- loan of Rs. 83.33 lakhs secured by personal guarantees of managing director and relative of managing director and corporate guarantee of Bubble Infosolutions Private Limited (company in which managing director of the Company is a director)

- loan of Rs. 663.70 lakhs secured by personal guarantee of managing director and corporate guarantee of Bubble Infosolutions Private Limited (company in which managing director of the Company is a director) and Amulet Technologies Limited (Subsidiary of the Company)

4.1 Rate of interest (range):

4.1.1 Interest rates on above secured loans range between 11.25%- 13.55% per annum

4.1.2 Interest rates on above unsecured loans range between 7%- 8.37% per annum

- repayable on equitable monthly and quarterly installments

## repayable at the time of maturity along with interest accured

4.3 Loans also guaranteed by directors and other parties

- loan of Rs. 12,641.34 lakhs secured by personal guarantee of managing director and lien on Fixed deposits of Rs. 48.24 lakhs

- loan of Rs. 333.33 lakhs secured by personal guarantees of managing director and relative of managing director and corporate guarantee of Bubble Infosolutions Private Limited (company in which managing director of the Company is a director)

- loan of Rs. 1,495.69 lakhs secured by personal guarantee of managing director and corporate guarantee of Bubble Infosolutions Private Limited (company in which managing director of the Company is a director) and Amulet Technologies Limited (Subsidiary of the Company)

4.4 Rate of interest :

4.4.1 Interest rates on above secured loans range between 11.45%- 12.30% per annum

4.4.2 Interest rates on above unsecured loans range between 7%- 8.37% per annum

5.1 Working Capital loans from banks are secured by :

(a) Primary Security- first pari passu charge on present and future receivables of the Company

(b) Collateral Security-Fixed deposits of Rs. 1098.44 lakhs (previous year : Rs. 1,337.51 lakhs) lien marked to banks and Immovable properties belonging to promoter & others

(c) Personal guarantees of managing director and relative of managing director

(d) Corporate guarantee of Bubble Infosolutions Private Limited (company in which managing director of the Company is a director and Amulet Technologies Limited Subsidary of the Company)

5.2 Interest rates on above loans range between 10.60% - 13.55% per annum (previous year : 10.60% -13.45% per annum).

6.1 Other liabilities comprise of payables towards miscellaneuos and expenses etc.

6.2 There is no amount due and outstanding to be credited to Investor Education & Protection Fund.

6.3 There is no amount outstanding to suppliers under Micro, Small and Medium Enterprises Development Act, 2006 based on available information with the Company.

7.1 Secured by hypothecation of specific assets

7.2 The Company makes provision for standard and non-performing assets (sub-standard and doubtful assets) in accordance with the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016. Further, in accordance with these Directions, the Company has separately shown the said provision under Short Term and Long term Provisions (as applicable) without netting off from loans.

8.1 Subject to first charge as security against the working capital facilities availed from the Banks.

9.1 Fixed deposits of Rs. 726.60 lakhs (Previous year: Rs. 1,055.12 lakhs) are subject to first charge as security against the working capital facilities, of Rs. 89.67 lakhs (Previous year: Rs. 48.24 lakhs) are subject to first charge as security against the Term Loan facilities and of Rs. 31.05 lakhs (Previous year: Rs. 60.53 lakhs) are liened with Small Industries Development Bank of India under Credit Delivery Arrangement.

10. Contingent liabilities

(a) Few customers / borrowers of the Company have filed legal cases for various claims against the Company. The management has reviewed these pending litigations and proceedings and does not expect any material outflow / reimbursement.

(b) Corporate Guarantee

Issued to Small Industries Development Bank of India under Credit Delivery Arrangement: Rs. 48.08 lakhs

11. Commitment

Loan approved but pending disbursement: Rs 38.54 Lakhs (Previous Year: Rs. 54.44 Lakhs).

12. Corporate Social Responsibility (CSR):

The Company has constituted a CSR committee as required under Section 135 of the Companies Act, 2013, together with relevant rules as prescribed in Companies (Corporate Social Responsibility Policy) Rules, 2014 (‘CSR rules’).The CSR Committee had approved the CSR Policy and also identified the broad areas of CSR activities which it propose to carry out viz. Child Education and Women Empowerment. During the year, the Company made serious deliberations and choose the CSR programs which would be undertaken on a long term and continuous basis. Such programs will benefit communities where the Company operates or likely to operate and create goodwill for the Company. The detail of the amount spent during the period is as under:

13. Accounting Standards Disclosures

13.1 Accounting Standard 15 (Revised) - Employee Benefits

(a) Defined Benefit plans:

Gratuity : Payable on separation as per the Payment of Gratuity Act, 1972 as amended @ 15 days pay, for each completed year of service to eligible employees who render continuous service of 5 years or more. The Company’s liability towards Gratuity is funded / managed by a trust, which invests the funds with Life Insurance Corporation of India (LIC).

(b) Other Long Term Benefit:

Compensated Absences : Employees of the Company are entitled to accumulate their earned/privilege leave up to a maximum of 30 days which can be availed / utilized in coming year/s, while in service. During the year the amount of Rs. 9.42 lakhs (previous year : Rs. 5.46 lakhs) has been credited in the Statement of Profit and Loss towards reversal of the excess provisions based on actuarial valuation.

(c) Defined Contribution plan:

Company’s employees are covered by Provident Fund and Employees State Insurance Scheme/Fund, to which the Company makes a defined contribution measured as a fixed percentage of salary. During the year, amount of Rs. 29.33 lakhs (Previous Year: Rs. 47.14 lakhs) has been charged to the Statement of Profit and Loss towards employer’s contribution to these schemes/funds as under:

Investment details of the plan assets

100% of the plan assets are maintained with the LIC Managed funds, and in the absence of the complete details from LIC, the requisite detail of funds are not furnished.

Actuarial Assumptions:

The principal assumptions are the discount rate and salary increase. The discount rate is based upon the market yields available on Government bonds at the accounting date with a term that matches that of the Liabilities and the salary increase takes account of inflation, seniority, promotion and other relevant factors on long term basis. Principal assumptions used for actuarial valuation are:

13.2 Accounting Standard 17 - Segment Reporting:

The Company is primarily engaged only in the business of providing loans to Small and Medium Enterprises (‘SME’) customers and has no overseas operations/units and as such, no segment reporting is required under Accounting Standard 17 - Segment Reporting.

13.3 Accounting Standard 18 - Related Parties A. List of Related Parties and relationships, having transactions during the year

a) Subsidiary Company

Amulet Technologies Limited

b) Key Management Personnel

Sanjeev Goel, Managing Director

c) Relative of Key Management personal

Pranav Goel, Son of Sanjeev Goel, Managing Director

Ritika Goel, Wife of Sanjeev Goel, Managing Director, and Director (upto November 08, 2017)

d) Enterprises over which key Management Personnel exercises significant influence

Bubble Info Solutions Private Limited

e) Enterprises over which relative of key management exercises significant influence

Intec Infonet Private Limited

f) Investing party in respect of which the reporting enterprise is an associate

Pantec Devices Private Limited

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

13.1 Accounting Standard 19 - Operating Leases

The Company’s significant leasing arrangements are in respect of operating leases for premises (commercial premises, offices etc.). The leasing arrangements include non-cancellable leases ranging from 0-1 year and are usually renewable by mutual consent on mutually terms. There are no sub leases.

The aggregate lease rentals payable are charged to Statement of Profit and Loss.

14. Disclosures required as per Reserve Bank of India ‘Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’, to the extent as applicable to the Company.

Notes: l.The Sector wise NPA detail has been given for the sector/category, based on the categorization and the required information available in the loan records maintained by the Company.

2. For calculating above percentages, restructured assets which are less than 90 days overdue and not recognized as NPA (as per RBI guidelines), have been included as they are reported under Substandard assets.

Note:-NPA includes restructuring amounting to Rs 434.46 lakhs (Previous year Rs. 521.88 lakhs) and provision thereon Rs. 130.34 lakhs (Previous year Rs. 156.56 lakhs).

14.1 Customer Complaints

(a) No. of complaints pending at the beginning of the year 01

(b) No. of complaints received during the year 07

(c) No. of complaints redressed during the year 08

(d) No. of complaints pending at the end of the year 00

15.1 Miscellaneous

(i) Details of Single Borrower Limit (SBL) / Group Borrower Limit (GBL) exceeded

During the year, the Company has not exceeded SBL & GBL limits as prescribed under NBFC Regulation.

(ii) The Company does not deal with advances for which intangible securities such as charge over the rights, licence ,authority etc. have been taken.

(iii) Registration obtained from other financial sector regulators

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

(iv) Disclosure of Penalties imposed by RBI and other regulators

No penalty has been imposed by the RBI or any other regulator during the year.

(vii) The following disclosures are not required / applicable, as no such transaction / activity was conducted by the Company during the year.

(a) Long-term contracts including derivative contracts, for which there were any material foreseeable losses.

(b) Securitization/Reconstruction / Assignments deal.

(c) Sale / Purchase of financial assets to Securitization / Reconstruction Company for Assets Reconstruction.

(d) Hedged foreign currency exposure, Forward Rate Agreement / Interest Rate Swap.

(viii) Schedule to the Balance Sheet of a Non-Deposit taking Non-Banking Financial Company, as required in terms of paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007) : Refer Annexure - 1

16.1 Figures for previous year have been regrouped and/or reclassified wherever considered necessary, to conform to current year’s classification.

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Mar 31, 2016

(b) Nature of guarantees for loans taken :

Loans guaranted by directors, other parties for note (a) (i) & (ii) above

- loan of Rs.21,006.90 lakhs secured by personal guarantee of managing director.

- loan of Rs.566.81 lakhs secured by personal guarantees of managing director and relative of managing director.

- loan of Rs.746.77 lakhs secured by personal guarantee of managing director and corporate guarantee of Bubble Info solutions Private Limited (company in which managing director of the Company is a director) and Amulet Technologies Limited (Subsidiary of the Company) .

(c) Rate of interest (range):

Interest rates applicable on above secured loans are ranges between 8.75%- 13.80% per annum Interest rates applicable on above unsecured loans are ranges between 6.25%- 10% per annum

# repayable on equitable monthly and quarterly installments

# repayable at the time of maturity along with interest accrued

(b) Nature of guarantees for loans taken :

Loans guaranteed by directors, other parties for note (a) (i) & (ii) above

- loan of Rs.17,825.54lakhs secured by personal guarantee of managing director.

- loan of Rs.1,112.49 lakhs secured by personal guarantees of managing director and relative of managing director.

- loan of Rs.1,049.40 lakhs secured by personal guarantee of managing director and corporate guarantee of Bubble Infosoluti Private Limited (company in which managing director of the Company is a director) and Amulet Technologies Limited (Subsid^: of the Company) .

- loan of Rs.683.33 lakhs secured by personal guarantees of managing director, relative of managing director and corpoi guarantee of Bubble Infosolutions Private Limited (company in which managing director of the Company is a director).

(c) Rate of interest (range):

Interest rates applicable on above secured loans are ranges between 10.25%- 12.30% per annum Interest rates applicable on above unsecured loans are ranges between 6.25%- 10% per annum

(a) Nature of security

Working Capital facility from banks are secured by

(i) Primary Security- first pari passu charge on present and future receivables of the Company,

(ii) Collateral Security-Fixed deposits lien marked to banks and Immovable properties - Belonging to promoter & others.

(iii) Personal guarantees of managing director and relative of managing director.

(iv) Corporate guarantee of Bubble infosolution Private Limited (company in which managing director of the Company is a director) and Amulet Technologies Limited (subsidary of the Company)

(b) Rate of interest (range)

Interest rates applicable on above loans ranges between 10.80%- 11.80% per annum (previous year 9.25%- 12.75% per annum).

(c) Commercial papers

These are issued for a period of 349 days and will be repaid on December 05, 2016 (rate of interest -10% per annum)

1. Operating leases

The Company’s significant leasing arrangements are in respect of operating leases for premises (commercial premises, offices etc.). The leasing arrangements include non-cancellable leases ranging from 2-4 years and are usually renewable by mutual consent on mutually terms. There are no sub leases.

The aggregate lease rentals payable are charged to Statement of Profit and Loss.

2. Disclosure with respect to Accounting Standard (AS)-15 (Revised) Employee Benefits Defined benefit plan (Gratuity):

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days (for a month of 26 days) of total basic salary last drawn for each completed year of service. Gratuity is payable to all eligible employees of the Company on retirement, separation, death or permanent disablement, in terms of the provisions of the Payment of Gratuity Act, 1972, except that there is no limit on payment of gratuity.

The Company had carried out an actuarial valuation in accordance with AS-15(Revised) “Employee Benefits” during the year ended March 31,2016. Disclosures with respect to changes in defined benefit obligation, funded status, expense for the year with respect to year ended March 31, 2016 are made based on the report received from LIC.

The following table sets out the status of the gratuity plan as required under AS-15 (Revised):

3. Contingent liabilities

(i) Bank Guarantee: The Company has liened Fixed Deposits of Rs.1,574.06 lakhs (Previous Year : Rs.1,576.49 lakhs) to various banks for availing term loans, Credit Delivery Arrangement and working capital loans.

(ii) Bank Guarantee to Sales Tax: The Company has given bank guarantee of Nil (Previous Year : Rs.2.00 lakhs) to Sales Tax Department.

(iii) Collateral given for assignment/ securitization transactions: The cash collateral as at March 31, 2016 amounts to Rs.326.96 lakhs (Previous Year: H326.96 lakhs, equivalent to 8% of pool provided) given by the Company for covering shortfalls in the recovery of instalments in the pool. The deal was executed with IDBI Bank Ltd. for an amount of Rs.4,086.99 lakhs.

(iv) The Company’s pending litigations comprise of claims against the Company primarily by the customers. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial statements of the Company as at March 31, 2016.

(v) Loan pending disbursement amounting to Rs.809.12 Lakhs (Previous Year: Rs.2,337.82 Lakhs).

4. Segment Reporting:

Since the Company’s business activity falls within single primary/ secondary business segment viz., loan and financing in India, no disclosure is required to be given as per Accounting Standard (AS) - 17 “Segment Reporting” as notified under Section 133 of the Companies Act, 2013 (‘the Act’) read together with paragraph 7 of the Companies (Accounts) Rules, 2014.

5. Related Parties under AS-18 with whom transactions have taken place during the year.

a) Subsidiary company

Amulet Technologies Limited

b) Key Management Personnel Sanjeev Goel (Managing Director)

Ritika Goel (Director)

Y.L. Madan (Director)

Dhruv Prakash (Director)

c) Relative of Key Mangement personal PranavGoel

d) Enterprises over which key Management Personnel exercises significant influence

Bubble Infosolutions Private Limited

e) Enterprises over which relative of key management exercises significant influence Intec Infonet Private Limited

AG8 venture limited (w.e.f. August 18, 2015)

Infrastructure Advisors Private Limited

Lakshmi Precision Screws Limited (upto March 31, 2015)

f) Investing party in respect of which the reporting enterprise is an associate Pantec Devices Private Limited

6. Customer Complaints

(a) No. of complaints pending at the beginning of the year 01

(b) No. of complaints received during the year 136

(c) No. of complaints redressed during the year 135

(d) No. of complaints pending at the end of the year 02

7. Miscellaneous

(i). Details of Single Borrower Limit (SBL) / Group Borrower Limit (GBL) exceeded by the NBFC

During the year, the Company has not exceeded SBL & GBL limits as prescribed under NBFC Regulation

(ii). Registration obtained from other financial sector regulators

The company has not obtained any registration from other financial sector regulators

(iii). Disclosure of Penalties imposed by RBI and other regulators

No penalty has been imposed by the RBI or any other regulator during the year.

8.

The Company has constituted a CSR committee as required under Section 135 of the Act, together with relevant rules as prescribed in Companies (Corporate Social Responsibility Policy) Rules, 2014 (‘CSR rules’). The CSR Committee of the Board of Directors had approved the CSR Policy and also identified the broad areas of CSR activities which it propose to carry out viz. Child Education and Women Empowerment. During the year under review, the Company made serious deliberations and chose the CSR programs which would be undertaken on a long term and continuous basis. Such programs will benefit communities where the Company operates or likely to operate and create goodwill for the Company.

Details of CSR Expenditure:

(i) Gross amount required to be spent by the Company during the year is Rs.37.82 lakhs (Previous year: Rs.40.82 lakhs)

(ii) Amount spent during the year on

9

Schedule to the Balance Sheet of a of a non-deposit taking Non-Banking Financial Company (as required in terms of paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007) (Refer Annexure - 1)

10

At the year end, the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

11

There is no unhedged foreign currency exposure during the year.

12

Figures for previous year have been regrouped and/or reclassified wherever considered necessary, to conform to current year’s classification

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Mar 31, 2015

1. Operating leases

The Company's significant leasing arrangements are in respect of operating leases for premises (commercial premises, offices etc.). The leasing arrangements include non-cancellable leases generally ranging from 3-6 years and are usually renewable by mutual consent on mutually terms. There are no sub leases.

2. Disclosure with respect to Accounting Standard (AS)-15 (Revised) Employee Benefits Defined benefit plan (Gratuity):

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days (for a month of 26 days) of total basic salary last drawn for each completed year of service. Gratuity is payable to all eligible employees of the Company on retirement, separation, death or permanent disablement, in terms of the provisions of the Payment of Gratuity Act, 1972, except that there is no limit on payment of gratuity.

The Company had carried out an actuarial valuation in accordance with AS-15 (Revised) "Employee Benefits" during the year ended March 31, 2015. Disclosures with respect to changes in defined benefit obligation, funded status, expense for the year with respect to year ended March 31, 2015 are made based on the report received from LIC.

3. Contingent liabilities

(i) Bank Guarantee: The Company has liened Fixed Deposits of H1,576.49 lakhs (Previous Year : H2,058.92 lakhs) to various banks for availing term loans, CDA and working capital loans.

(ii) Bank Guarantee to Sales Tax: The Company has given bank guarantee of H2.00 lakhs (Previous Year : H2.00 lakhs) to Sales Tax Department.

(iii) Collateral given for assignment/ securitisation transactions: The cash collateral as at March 31, 2015 amounts to H326.96 lakhs (Previous Year: H326.96 lakhs, equivalent to 8% of pool provided) given by the Company for covering shortfalls in the recovery of installments in the pool. The deal was executed with IDBI Bank Ltd. for an amount of H4,086.99 lakhs.

(iv) The Company's pending litigations comprise of claims against the Company primarily by the customers. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial statements of the Company as at March 31, 2015.

(v) Loan pending disbursement amounting to H2,337.82 Lakhs (Previous Year : H966.58 Lakhs).

4. Segment Reporting:

Since the Company's business activity falls within single primary/ secondary business segment viz., loan and financing in India,no disclosure is required to be given as per Accounting Standard (AS) – 17 "Segment Reporting" as notified under Section 133 of the Companies Act, 2013 ('the Act') read together with paragraph 7 of the Companies (Accounts) Rules, 2014.

5. Related Parties under AS-18 with whom transactions have taken place during the year.

a) Subsidiary company Amulet Technologies Limited

b) Key Management Personnel Sanjeev Goel (Managing Director) RitikaGoel (Director) Y.L. Madan (Director) Dhruv Prakash (Director)

c) Enterprises over which key Management Personnel exercises significant influence Bubble Infosolutions Private Limited

d) Enterprises over which relative of key management exercises significant influence Intec Infonet Private Limited Lakshmi Precision Screws Limited Infrastructure Advisors Private Limited

e) Investing party in respect of which the reporting enterprise is an associate Pantec Devices Private Limited

6. Additional information as per guidelines issued by the Reserve Bank of India is respect of Non-Banking Financial (Non-deposit accepting or holding) Systemically Important (NBFC-ND-SI):

7. Customer Complaints

(a) No. of complaints pending at the beginning of the year NIL

(b) No. of complaints received during the year 111

(c) No. of complaints redressed during the year 110

(d) No. of complaints pending at the end of the year 01

8. Miscellaneous

1. Details of Single Borrower Limit (SBL) / Group Borrower Limit (GBL) exceeded by the NBFC

During the year, the Company has not exceeded SBL & GBL limits as prescribed under NBFC Regulation

2. Registration obtained from other financial sector regulators

The company has not obtained any registration from other financial sector regulators

3. Disclosure of Penalties imposed by RBI and other regulators

No penalty has been imposed by the RBI or any other regulator during the year.

9. The Company has constituted a CSR committee as required under Section 135 of the Act, together with relevant rules as prescribed in Companies (Corporate Social Responsibility Policy) Rules, 2014 ('CSR rules').Basis on these rules the amount was to be spent for CSR activities was H40.28 lakhs whereas the Company has paid an amount of H2.35 Lakhs to "Chhatravas Chandra Arya VidyaMandir" towards Corporate Social Responsibility.

10. Schedule to the Balance Sheet of a of a non-deposit taking Non-Banking Financial Company (as required in terms of paragraph 13 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007) (Refer Annexure – 1)

11. At the year end, the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

12. The previous year numbers for the year ended March 31, 2014 were audited by an Independent firm of Chartered Accountants other than S.R. BATLIBOI & ASSOCIATES LLP.

13. The Board of Directors has recommended, subject to the approval of shareholders, dividend of H0.50 per share (5%).

14. There is no unhedged foreign currency exposure during the year.

15. Figures for previous year have been regrouped and/or reclassified wherever considered necessary, to conform to current year's classification

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Mar 31, 2013

NOTE 1. CORPORATE INFORMATION

Intec Capital Limited is a Non- Banking Financial Company registered with the Reserve Bank of India (-RBI'') under section 45-1A of the Reserve Bank of India Act, 1934 and primarily engaged in asset finance by way of providing SME Loans through its pan India branch network. The Company received the Certificate of Registration from the RBI enabling the company to carry on business as a Non- Banking Finance Company. The company is a systematically important non deposit taking Non-Banking Financial Company (NBFC) as defined under Section 45-IAof the Reserve Bank of India (RBI) Act,1934.

a) The Previous year''s figures have been reworked, regrouped, rearranged & reclassified wherever necessary to confirm to the current year presentation.

b) Balance standing to debit & credit of parties are subject to confirmation.

c) In the opinion of Board of Director, the current assets, loans & advances have a value on realization in the ordinary course of business at least equal to the amount at which these are stated.

d) Mr. Sanjeev Goel (Managing Director) drawing remuneration of Rs.6, 600.00 thousands during the year ending 31st March 2013 (Previous Year 3,000.00 thousands).

e) Any provisions no longer required to be written back.

f) Statutory Reserve represents the reserve fund created u/s 45-1C of the Reserve Bank of India Act, 1934. An amount of Rs.26,245.78 thousands (Previous Year Rs.18,935.83 thousands) representing 20% of net profit is transferred to the fund for the year.

g) Provision for Standard and Non-Performing Assets:

Provision for non performing assets (NPAs) is made in the financial statements according to the Prudential Norms prescribed by RBI for NBFCs. The Company also makes additional provision towards loan assets, based on the management''s best estimate. Additional provision of 0.25% on Standard assets has also been made during the year, as per stipulation of RBI on Standard assets. Company has made provisions for Standard Assets as well as Non-Performing Assets as per the table below:

h) Contingent liability not provided for:

1. Corporate guarantee on assignment of loans assets: Rs.12,490.02 thousands to HDFC Bank.

i) Segment Reporting:

The Company''s business activity falls within single primary/secondary business segment viz., loan & financing in India. The disclosure requirement of Accounting Standard (AS) – 17 ''Segment Reporting'' issued by the Institute of Chartered Accountant of India, therefore is not applicable.

j) Related Party Disclosures

As per Accounting standard 18 on Related Party disclosures issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related parties as defined in the Accounting Standard are given below:

1. Entities where control exist: Amulet Technologies Ltd

2. Key Management Personnel: Mr. Sanjeev Goel

3. Enterprises under significant influence of the relative of key management personnel with whom there were transaction during the year

Intec Infonet Private Ltd MKG Informations Pvt Ltd FIMA Consultants Ltd.

k) Information as required by Non- Banking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions,2007 is furnished vide Annexure – I & II attached herewith.

l) During F/Y2012-13, the company enjoyed rating of BBB (Triple B) assigned by CARE Ltd. & ICRA Ltd. to its Long- term Bank Facilities.

m) During the current financial year 2012-13, the development of software was completed and the company has capitalizes the amounts standing in Capital Work-in-Progress.

The Company has capitalized the development of software with effect from 30th September, 2012 amounting to Rs.5,180.00 thousands.

n) Micro and Medium Scale Business Entities:

There are no Micro, Small and Medium Enterprises, to whom the company owes dues which outstanding for more than 45 days as at 31st March, 2013. This information as required to be disclosed under the Micro, Small and Medium Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

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Mar 31, 2012

A) Previous year's figures have been reworked, regrouped, rearranged & reclassified wherever necessary to confirm to the current year presentation.

b) Balance standing to debit & credit of parties are subject to confirmation.

c) In the opinion of Board of Director, the current assets, loans & advances have a value on realization in the ordinary course of business at least equal to the amount at which these are stated.

d) There is no employee drawing remuneration in excess of Rs. 60,00,000/- during the year ending 31st March 2012 or Rs. 5,00,000/- per month (Previous Year Nil).

e) Any provisions no longer required to be written back.

f) Statutory Reserve represents the reserve fund created u/s 45-1C of the Reserve Bank of India Act, 1934. An amount of Rs. 18,935,833/- (Previous Year Rs. 9,51 6,347/-) representing 20% of net profit is transferred to the fund for the year.

g) Provision for Standard and Non-Performing Assets:

Provision for non performing assets (NPAs) is made in the financial statements according to the Prudential Norms prescribed by RBI for NBFCs. The Company also makes additional provision towards loan assets, based on the management's best estimate. Additional provision of 0.25% on Standard assets has also been made during the year, as per stipulation of RBI on Standard assets. Company has made provisions for Standard Assets as well as Non-Performing Assets as per the table below:

i) Contingent liability not provided for:

Corporate guarantee on assignment of loans assets: Rs. 125,87,128 to HDFC Bank.

b) Segment Reporting:

The Company's business activity falls within single primary/secondary business segment viz., loan & financing in India. The disclosure requirement of Accounting Standard (AS) - 17 "Segment Reporting" issued by the Institute of Chartered Accountant of India, therefore is not applicable.

m) Information as required by Non- Banking Financial (Non- Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions,2007 is furnished vide Annexure - I & II attached herewith.

p) Micro and Medium Scale Business Entities:

There are no Micro, Small and Medium Enterprises, to whom the company owes dues which outstanding for more than 45 days as at 31st March, 2012. This information as required to be disclosed under the Micro, Small and Medium Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

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Mar 31, 2010

(a) Balance standing to debit & credit of parties are subject to confirmation.

(b) In the opinion of Board of Director, the current assets, loans & advances have a value on realization in the ordinary course of business at least equal to the amount at which these are stated.

(c) The Previousyears figures have been reworked, regrouped, rearranged & reclassified wherever necessary.

(d) There is no employee drawing remuneration in excess of Rs. 24,00,000/- during the year ending 31st March 2010 or Rs. 2,00,000/- per month (Previous Year Nil).

(e) (I) Additional information pursuant to provision of paragraph 3 of Part - II of Schedule VI to the CompaniesAct, 1956- NotApplicable to Finance Company

(ii) Additional information pursuant to provision of paragraph 4 of Part - II of Schedule VI to the Companies Act, 1956 is:

(iii) Additional information pursuant to provision of paragraph 4B of Part - II of Schedule VI to the Companies Act, 1956 is:

(g) Secured Loan:

(a) Working Capital facility sanctioned from Indian Overseas Bank, Nehru Place, Delhi-110019 is secured by (a) Primary Security- first pari passu charge of hypothecation of Receivable & Assets financed by the Company, and (b) Collateral Securities - Immovable properties of Mr. Sanjeev Goel (MD)&Mrs. Ritika Goel, and Fixed Deposit of the company.

(b) Working Capital facility from Bank of Maharashtra, South Ext Part-1, New Delhi is secured by (a) Primary Security- first pari passu charge of hypothecation of Receivable & Assets financed by the Company, and (b) Collateral Securities - Immovable properties & Quoted share of Mr. Sanjeev Goel (MD), and Fixed Deposit of the company.

(c) Working Capital facility from Bank of India, Cannaught Placel, New Delhi is secured by a) Primary Security- first pari passu charge of hypothecation of Receivable & Assets financed by the Company, and (b) Collateral Securities - Immovable properties & personal guarantees of Mr. Sanjeev Goel (MD) & Mrs. Ritika Goe.

(d) Working Capital facility from Punjab National Bank, Nehru Enclave, Opp. Nehru Place, New Delhi is secured by a) Primary Security- first pari passu charge of hypothecation of Receivable & Assets financed by the Company, and (b) Collateral Securities - Immovable properties & personal guarantees of Mr. Sanjeev Goel (MD) & Mrs. Ritika Goel.

(e) Term Loan from Reliance Capital Ltd is secured by a) Primary Security -First pari passu charge of hypothecation of Receivable FOR THE Assets financed by the Company, and (b) Collateral Securities- FD with a lien mark to RCL in Kotak Mahindra Bank Ltd.

(f) Vehicle Loans are secured by first charge on vehicle acquired from the proceeds of respective loans.

(h) Segment Reporting:

The Companys business activity falls within single primary/secondary business segment viz., loan & financing in India, The disclosure requirement of Accounting Standard (AS) - 17 "Segment Reporting" issued by the Institute of Chartered Accountant of India, therefore is not applicable.

(i) Related Party Disclosures

As per Accounting standard 18 on Related Party disclosures issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related parties as defined in the Accounting Standard are given below:

List of related parties with whom transactions have taken place and relationships:

Key Management Relative of Key Enterprise in which Key Management Personnel and

Personnel Management Personnel their relatives and company are able to exercise significant influence in the Enterprises.

Mr. Sanjeev Goel Rajeev Goel Ritika Goel Intec Infonet (P) Ltd.lntec Share & Stock Broker Limited



(l) Micro and Medium Scale Business Entities:

There are no Micro, Small and Medium Enterprises, to whom the company owes dues which outstanding for more than 45 days as at 31st March, 2010. This information as required to be disclosed under the Micro, Small and Medium Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

(m) The Company is a Small and Medium Sized Company (SMC) as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 1956. Accordingly, the company has complied with the accounting Standards as applicable to a Small and Medium Sized Company."

(n) Schedule 1 to 14 form integral part of the Balance Sheet & Profit & Loss A/c.

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Mar 31, 2009

(a) Balance standing to debit & credit of parties are subject to confirmation.

(b) In the opinion of Board of Director, the current assets, loans & advances have a value on realization in the ordinary course of business at least equal to the amount at which these are stated.

(c) The Previous years figures have been reworked, regrouped, rearranged & reclassified wherever necessary.

(d) There is no employee drawing remuneration in excess of Rs. 24,00,000/- during the year ending 31s1 March 2009 or Rs. 2,00,000/- per month (Previous Year Nil).

(e) (i) Additional information pursuant to provision of paragraph 3 of Part II of Schedule VI to the Companies Act, 1956 - Not Applicable to Finance Company

(ii) Additional information pursuant to provision of paragraph 4 of Part II of Schedule VI to the Companies Act, 1956 is:

The Company has been advised that the computation of the net profit of the current year for the purpose of remuneration to Directors under section 349 of the Companies Act, 1956, need not be enumerated since no commission has been paid to the Directors. Only fixed monthly remuneration has been paid to the Managing Director as per Schedule XIII of the Companies act, 1956.

(iii) Additional information pursuant to provision of paragraph 4B of Part II of Schedule VI to the Companies Act, 1956 is:

(b) Secured Loan:

(i) Working Capital facility sanctioned from Indian Overseas Bank, Nehru Place, Delhi-110019 is secured by

(a) Primary Security- first pari passu charge of hypothecation of Receivable & Assets financed by the Company, and (b) Collateral Securities Immovable properties of Mr. Sanjeev Goel (MD) & Mrs. Ritika Goel, and Fixed Deposit of the company.

(ii) Working Capital facility from Bank of Maharashtra, South Ext Part-1, New Delhi is secured by (a) Primary Security-first pari passu charge of hypothecation of Receivables Assets financed by the Company, and

(b) Collateral Securities Immovable properties & Quoted share of Mr. Sanjeev Goel (MD), and Fixed Deposit of the company.

(iii) Working Capital facility from Bank of India, Cannaught Placel, New Delhi is secured by a) Primary Security-first pari passu charge of hypothecation of Receivables Assets financed by the Company, and (b) Collateral Securities Immovable properties & personal guarantees of Mr. Sanjeev Goel (MD) & Mrs. Ritika Goel.

(iv) Vehicle Loans are secured by first charge on vehicle acquired from the proceeds of respective loans.

(v) Other loan from ICICI Bank has been secured against personal guarantee of director.

(c) Segment Reporting:

The Companys business activity falls within single primary/secondary business segment viz., leasing, loan & investment in India. The disclosure requirement of Accounting Standard (AS) 17 "Segment Reporting" issued by the Institute of Chartered Accountant of India, therefore is not applicable.

(d) Related Party Disclosures

As per Accounting standard 18 on Related Party disclosures issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related parties as defined in the Accounting Standard are given below:

The nature and volume of transactions of the Company during the year with the above-mentioned related parties were as follows:

Note: Related party relationship is as identified by the Company and relied upon by the auditor.

(e) Earning per Share as per "Accounting Standard 20" issued by the Institute of Chartered Accountants of India:

(f) The company estimates the deferred tax charted/(credit) using the applicable rate of taxation based on the impact of timing differences between financial statements and estimated taxable income for the current year. Details of Deferred tax Assets/ (Liabilities) are as follows;

(g) The company did not have any dues outstanding to Micro Small and Medium Enterprises.