Notes to Accounts of Nalin Lease Finance Ltd.

Mar 31, 2025

3.10 : Provisions and contingent liabilities:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. The Company also discloses present obligations for which a reliable
estimate cannot be made. When there is a possible obligation or a present obligation in respect of which the likelihood of
outflow of resources is remote, no provision or disclosure is made.

3.11 : Foreign currency translation:

The Company’s financial statements are presented in Indian Rupee, which is also the Company’s functional currency.

Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are re-translated using the exchange rate prevailing at the reporting date. Nonmonetary
items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange
rate at the date of the transaction.

Exchange differences

All exchange differences are accounted in the Statement of Profit and Loss.

3.12 : Retirement and other employee benefits:

(i) Short term employee benefits: Employee benefits falling due wholly within twelve months of rendering the service are
classified as short term employee benefits and are expensed in the period in which the employee renders the related
service. Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the
benefits expected to be paid in exchange for the related service.

(ii) Post-employment benefits: (a) Defined contribution plans: The Company’s superannuation scheme, state governed
provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans.
The contribution paid/ payable under the schemes is recognised during the period in which the employee renders the
related service.

The Company has adopted the policy of accounting for retirement & other employee benefits on actual payment basis. As
explained by the Company, PF & ESIC is not applicable to the Company.

3.13: Leases:

With effect from 1 April 2019, the Company has applied Ind AS 116 ''Leases'' for all long term and material lease contracts
covered by the Ind AS. The Company has adopted modified retrospective approach as stated in Ind AS 116 for all
applicable leases on the date of adoption.

Measurement of Lease Liability

At the time of initial recognition, the Company measures lease liability as present value of all lease payments discounted
using the Company’s incremental cost of borrowing and directly attributable costs. Subsequently, the lease liability is -

(i) increased by interest on lease liability;

(ii) reduced by lease payments made; and

(iii) remeasured to reflect any reassessment or lease modifications specified in Ind AS 116 ''Leases'', or to reflect revised
fixed lease payments.

Measurement of Riaht-of-use assets

At the time of initial recognition, the Company measures ''Right-of-use assets'' as present value of all lease payments
discounted using the Company’s incremental cost of borrowing w.r.t said lease contract. Subsequently, ''Right-of-use assets''
is measured using cost model i.e. at cost less any accumulated depreciation and any accumulated impairment losses
adjusted for any remeasurement of the lease liability specified in Ind AS 116 ''Leases''.

Depreciation on ''Right-of-use assets'' is provided on straight line basis over the lease period.

3.14 : 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, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised 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 a detailed information on the fair value hierarchy, refer note no. 28.

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 categorisation (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.

3.15 : Statement of cash flows:

Statement of cash flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow
from operating activities is reported using indirect method adjusting the net profit for the effects of:

(i) changes during the period in operating receivables and payables transactions of a non-cash nature

(ii) non-cash items such as depreciation, provisions, deferred taxes, unrealised gains and losses; and

(iii) all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not
available for general use as on the date of Balance Sheet.

3.16 : Earnings per share:

The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is
calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average
number of ordinary shares outstanding during the year. Diluted earnings per share is determined by adjusting the profit or
loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for
own shares held, for the effects of all dilutive Dotential ordinarv shares.

3.17 : Operating cycle for current and non-current classification:

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their
realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of
classification of its assets and liabilities as current and non-current.

3.18: Segments:

The Company is engaged primarily on the business of "Financing” only, taking into account the risks and returns, the
organization structure and the internal reporting systems, in India. All other activities of the Company revolve around the
main business. This in the context of Ind AS 108 - Operating Segments reporting is considered to constitute one reportable
seament.

3.19: Recent pronouncements:

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules from time to time.For the year ended March 31,2025, MCA has notified Ind AS - 117
Insurance Contracts and amendments to existing Ind AS 116 - Leases, relating to sale and leaseback transactions, w.e.f.
April 1, 2024. The Company has determined, based on its evaluation, that it does not have any significant impact in its
financial statements.

18.2 Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of'' 10/- per share. All these shares have the same
rights and preferences with respect to the payment of dividend, repayment of capital and voting. The Company declares
and pays dividends in Indian rupees. The interim dividend is declared and approved by Board of Directors. The final
dividend proposed by the Board of Directors and is subject to the approval of the shareholders in the ensuing Annual
General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of
the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.

19.1 Nature and purpose of reserve
Securities 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.

Statutory Reserve (u/s 45 1C of RBI Act)

The Company created a reserve pursuant to section 45 1C the Reserve Bank of India Act, 1934 by transferring amount
not less than twenty per cent of its net profit every year as disclosed in the Statement of Profit and Loss and before any
dividend is declared.

General Reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of profit for the period
at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013,
the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn.
However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific
requirements of Companies Act, 2013.

Retained earnings

This Reserve represents the cumulative profits of the Company. This Reserve can be utilized in accordance with the
provisions of the Companies Act, 2013.

Note 27 : Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: Financial risk management

The Company’s principal financial liabilities comprise borrowings and other financial liabilities . The main purpose of these financial liabilities is to finance
the Company''s operations and to support its operations. The Company''s financial assets include loan and advances, cash and cash equivalents that
derive directlv from its ooerations.

The Company is exposed to credit risk, liquidity risk and market risk. The Company’s board of directors has an overall responsibility for the establishment
and oversight of the Company’s risk management framework. The board of directors has established the risk management committee, which is
responsible for developing and monitoring the Company’s risk management policies. The committee reports regularly to the board of directors on its

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and
controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the Company''s activities. The Company’s risk management committee oversees how management monitors compliance with the
Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the
Company The major risks are summarised below:

1- Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party to financial instrument fails to meet its contractual obligations and
arises principally from the Company’s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk
exposure. The Company''s major income generating activity is gold loan, vehicle loan, business loans and others. Therefore credit risk is a principal risk.
Credit risk mainly arises from loans and advances to customers that are an asset position. The Company considers all elements of credit risk exposure

such as counterparty default risk, risk of not taking collateral against loans, geographical risk and sector risk for risk management purposes.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the
factors that may influence the credit risk of its customer base, including the default risk associated with the industry. The risk management committee has
established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and
delivery terms and conditions are offered. The Company''s review includes external ratings, if they are available, financial statements, credit agency
information, industry information etc.

Policies and procedure for credit risk for different products

The Company addresses credit risk bv following different processes for different product:

Gold Loan

a) Credit risk on Gold loan is considerably reduced as collateral is in the form of Gold ornaments which can be easily liquidated and there is only a distant
possibility of losses due to adequate margin of 25% or more retained while disbursing the loan. Credit risk is further reduced through a quick but careful

collateral appraisal and loan approval process. Hence overall, the Credit risk is normally low.

b) Sanctioning powers for Gold Loans is delegated to Manager of the company. Sanctioning powers is used only for granting loans for legally permitted
purposes. The maximum Loan to Value stipulated bv the Reserve Bank of India does not exceed under any circumstances.

c) Gold ornaments brought for pledge is the primary responsibility of Manager. Extra care is taken if the gold jewellery brought for pledge by any customer
at any one time or cumulatively is more than 20 gm. Manager records the questions asked to the customer for ascertaining the ownership of the gold
jewellery and also the responses given bv the customer In a register for future reference.

d) Auctions are conducted as per the Auction Policy of the Company and the guidelines Issued by Reserve Bank of India. Auction Is generally conducted
before loan amount plus Interest exceeds realizable value of gold. After reasonable time Is given to the customers for release after loan becomes overdue
and exhausting all efforts for persuasive recovery, auction Is resorted to as the last measure In unavoidable cases. Company has the right to recover dues
remaining even after set off of amount received on auctions from the customer. Any excess amount received on auctions over and above the dues are
refunded to the customer.

Vehicle Loan

The credit risk management policy of the Group seeks to have following controls and key metrics that allows credit risks to be identified, assessed,
monitored and reported in a timely and efficient manner in compliance with regulatory requirements:

i) Standardize the process of identifying new risks and designing appropriate controls for these risks

ii) Minimize losses due to defaults or untimely payments by borrowers

iii) Maintain an appropriate credit administration and loan review system

iv) Design appropriate credit risk mitigation techniques

An impairment analysis is performed at each reporting date based on the facts and circumstances existing on that date to identify expected losses on
account of time value of money and credit risk. For the purposes of this analysis, the loan receivables are categorised into Company''s based on days past
due. Each Company is then assessed for impairment using the ECL model as per the provisions of Ind AS 109 - financial instruments. The Company
recognises loss allowance for ECLs on Loans and advances to customers as per Income recognition, Asset Classification and Provisioning (IRACP)
norms notified by RBI.

Staging:

As per the provision of Ind AS 109 general approach all financial instruments are allocated to stage 1 on initial recognition. However, if a significant
increase in credit risk is identified at the reporting date compared with the initial recognition, then an instrument is transferred to stage 2. If there is

objective evidence of impairment, then the asset is credit impaired and transferred to stage 3.

The Company considers a financial instrument defaulted and therefore Stage 3 (credit-impaired) for ECL calculations in all cases when the borrower
becomes 90 days oast due on its contractual payments. A

3- Market rate risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. In the case of the
Company, market risk primarily impacts financial instruments measured at fair value through profit or loss. Market risk includes interest rate risk and
foreign currency risk.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The
Company does not have exposure to the risk of changes in market interest rate as it has debt obligations with fixed interest rates which are measured at
amortised cost.

b) Foreign currency risk

The Company does not have any instrument denominated or traded in foreign currency. Hence, such risk does not affect the Company.

4- Price risk
For Gold Loan

Sudden fall in the gold price and fall in the value of the pledged gold ornaments can result in some of the customers to default if the loan amount and
interest exceeds the market value of gold. This risk is in part mitigated by a minimum 25% margin retained on the value of jewellery for the purpose of
calculation of the loan amount. Further, we appraise the jewellery collateral solely based on the weight of its gold content, excluding weight and value of
the stone studded in the jewellery. In addition, the sentimental value of the gold jewellery to the customers may induce repayment and redemption of the
collateral even if the value of gold ornaments falls below the value of the repayment amount. An occasional decrease in gold prices will increase price risk
significantly on account of our adequate collateral security margins. However, a sustained decrease in the market price of gold can additionally cause a
decrease in the size of our loan portfolio and our interest income. a

Measurement of fair values

i) Valuation techniques and significant unobservable inputs

The carrying amounts of financial assets and liabilities which are at amortised cost are considered to be the same as their fair values as there is no
material differences in the carrying values presented.

ii) Financial instruments - fair value

The fair value of financial instruments have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy
gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable
inputs (Level 3 measurement).

The categories used are as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices;

Level 2: The fair value of financial instruments that are not traded in active market is determined using valuation technique which maximizes the use of
observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value on instrument are observable,
the instrument is included in level 2; and

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

6- lntra-group exposures: Not Applicable. The Company does not have any holding, subsidiary or associate company.

7- Unhedged foreign currency exposure: Nil. The Company does not have any unhedged foreign currency exposure.

8- Disclosure of complaints: Nil complaints were received during the current financial year and the previous financial year.

Note 31 : Capital Management:

The objective of the Company’s Capital Management is to maximise shareholder value, safeguard business continuity and support the growth of its
subsidiaries. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The
funding requirements are met through loans and operating cash flows generated. The debt equity ratio is 0.07 as at March 31, 2025 (as at March 31, 2024
is0 1 fit

Note 32 : Segment Reporting:

The Company is engaged primarily on the business of “Financing” only, taking into account the risks and returns, the organization structure and the
internal reporting systems. All the operations of the Company are in India. All non-current assets of the Company are located in India Accordingly, there
are no separate reportable segments as per Ind AS 108 - “Operating segments”.

Note 33 : Under the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act”) which came into force from October 2, 2006, certain
disclosures are required to be made relating to micro, small and medium enterprises. There have been no reported cases of delays in payments to micro
and small enterorises or of interest Davments due to delavs in such Davments.

The disclosure as required by section 22 of MSMED Act has been qiven below:

Note 39 : Events after the reporting period:

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

Note 40 : In the opinion of the Board of Directors, 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 foregoing Balance Sheet and adequate provision for all known liabilities on the Company has been
made.

Note 41 : The Company does not hold any immovable property as on 31 March 2025. All the lease agreements are duly executed in favour of the Company
for properties where the Company is the lessee.

Note 42 : Derivatives: There are no derivative instruments in the Company for the year ended 31 March 2025.

Note 43 : No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition)
Act, 1988 and rules made thereunder, as at 31 March 2025.

Note 44 : The Company is not a declared wilful defaulter by any bank or financial Institution or other lender, in accordance with the guidelines on wilful
defaulters issued by the Reserve Bank of India, during the year ended 31 March 2025.

Note 45 : The Company does not have any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of
Companies Act, 1956 during the year ended 31 March 2025.

Note 47 : The Company has borrowings from banks and financial institutions on the basis of security of current assets and the quarterly returns filed by the
Company with the banks and financial institutions are in accordance with the books of accounts of the Company for the respective quarters.

Note 48 : The Company has taken borrowings from banks and financial institutions and utilised them for the specific purpose for which they were taken as at
the Balance sheet date.

Note 49 : There have been no transactions which have not been recorded in the books of accounts, that have been surrendered or disclosed as income
during the year ended 31 March 2025, in the tax assessments under the Income Tax Act, 1961. There have been no previously unrecorded income and
related assets which were to be properly recorded in the books of account during the year ended 31 March 2025.

Note 50 : As a part of normal lending business, the company grants loans and advances on the basis of security / guarantee provided by the Borrower/ co¬
borrower. These transactions are conducted after exercising proper due diligence. .

Note 51 : The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2025.

Note 52 : Registration of charges or satisfaction with Registrar of Companies (ROC): All charges or satisfaction are registered with ROC within the
statutory period for the financial years ended March 31, 2025. No charges or satisfactions are yet to be registered with ROC beyond the statutory period.

Note 53 : Compliance with number of Layers of companies: The Company has not violated with the number of layers prescribed under clause (87) of
section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31,2025.

Note 54: Miscellaneous

Registration obtained from other financial sector regulators

The Company is registered with RBI and has all its operations in India, it has not obtained registration from any other financial sector regulators during
the year.

Group structure: Not Applicable. The Company does not have any holding, subsidiary or associate company.

Net Profit or Loss for the period, prior period items and changes in accounting policies: The Company does not have any prior period items /
chanae in accountina policies durina the current vear other than disclosed in financials.

Revenue Recognition: There have been no circumstances in which revenue recognition has been postponed pending the resolution of significant
uncertainties.

Consolidated Financial Statements (CFS): The Company does not have any subsidiary, associate or joint venture accordingly CFS is not applicable.

Note 55 : There were no instances of fraud reported during the year ended 31 March 2025.

Note 56 : Figures of previous year have been reworked/regrouped/reclassified wherever necessary.

In terms of our report of even date attached For and on behalf of the Board of Directors of

For Paresh Thothawala & Co. Nalin Lease Finance Ltd.

Chartered Accountants
Firm Registration No: 114777W

Dilip N Gandhi Pallavi D Gandhi

Managing Director Wholetime Director

Paresh K Thothawala DIN- 00339595 _D|_N_ 00339639

Partner

Membership No. 048435

^{Swati A Shah} Nikulkumar K Patel Harsh D Gandhi

Company Secretary Chief Financial Officer Wh₀|_eti_me Di_rect_or

DIN- 03120638

Date: 07-05-2025 Date: 07-05-2025

Place: Ahmedabad Place: Himatnagar

---

Mar 31, 2024

* Note: Over draft facility from Bajaj Finance Ltd are secured by Mutual fund investment of the Company. The Tenure of the Loan is 36 Months. Bajaj Finance Ltd shall review the Facility account at the end of every 12 months from date of first disbursement and shall be entitled to revise any of the terms of sanction. In the event, Borrower is not acceptable to the revised sanction terms, Borrower shall have the right to prepay the Facility without any Prepayment Charges. * Note: Vehicle Term loan from BMW Financial Services Pvt Ltd is secured by hypothecation of vehicle as collateral security. Co-borrower of the vehicle term loan is Mr. Harsh Dilipkumar Gandhi (director). The duration of Loan is 36 Months. The Company has not defaulted in repayment of principal and interest to its lenders.

18.2 Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10/- per share. All these shares have the same rights and preferences with respect to the payment of dividend, repayment of capital and voting. The Company declares and pays dividends in Indian rupees. The interim dividend is declared and approved by Board of Directors. The final dividend proposed by the Board of Directors and is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

19.1 Nature and purpose of reserve Securities 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.

Statutory Reserve (u/s 45 IC of RBI Act)

The Company created a reserve pursuant to section 45 IC the Reserve Bank of India Act, 1934 by transferring amount not less than twenty per cent of its net profit every year as disclosed in the Statement of Profit and Loss and before any dividend is declared.

General Reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of profit for the period at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

Retained earnings

This Reserve represents the cumulative profits of the Company. This Reserve can be utilized in accordance with the provisions of the Companies Act, 2013.

Note 27 : Disclosure pursuant to Ind AS 107 "Financial Instruments: Disclosures":

Financial risk management The Company''s principal financial liabilities comprise borrowings and other financial liabilities. The main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s financial assets include loan and advances, cash and cash equivalents that derive directly from its operations. The Company is exposed to credit risk, liquidity risk and market risk. The Company''s board of directors has an overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established the risk management committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the board of directors on its activities. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company''s risk management committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The major risks are summarised below:

1- Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party to financial instrument fails to meet its contractual obligations and arises principally from the Company''s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure. The Company''s major income generating activity is gold loan, vehicle loan, business loans and others. Therefore credit risk is a principal risk. Credit risk mainly arises from loans and advances to customers that are an asset position. The Company considers all elements of credit risk exposure such as counterparty default risk, risk of not taking collateral against loans, geographical risk and sector risk for risk management purposes.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry. The risk management committee has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes external ratings, if they are available, financial statements, credit agency information, industry information etc.

Policies and procedure for credit risk for different products

The Company addresses credit risk by following different processes for different product:

Gold Loan

a) Credit risk on Gold loan is considerably reduced as collateral is in the form of Gold ornaments which can be easily liquidated and there is only a distant possibility of losses due to adequate margin of 25% or more retained while disbursing the loan. Credit risk is further reduced through a quick but careful collateral appraisal and loan approval process. Hence overall, the Credit risk is normally low.

b) Sanctioning powers for Gold Loans is delegated to Manager of the company. Sanctioning powers is used only for granting loans for legally permitted purposes. The maximum Loan to Value stipulated by the Reserve Bank of India does not exceed under any circumstances.

c) Gold ornaments brought for pledge is the primary responsibility of Manager. Extra care is taken if the gold jewellery brought for pledge by any customer at any one time or cumulatively is more than 20 gm. Manager records the questions asked to the customer for ascertaining the ownership of the gold jewellery and also the responses given by the customer in a register for future reference.

d) Auctions are conducted as per the Auction Policy of the Company and the guidelines issued by Reserve Bank of India. Auction is generally conducted before loan amount plus interest exceeds

realizable value of gold. After reasonable time is given to the customers for release after loan becomes overdue and exhausting all efforts for persuasive recovery, auction is resorted to as the last measure in unavoidable cases. Loss on account of auctions are recovered from the customer. Any excess received on auctions are refunded to the customer.

Vehicle Loan

The credit risk management policy of the Group seeks to have following controls and key metrics that allows credit risks to be identified, assessed, monitored and reported in a timely and efficient manner in compliance with regulatory requirements:

i) Standardize the process of identifying new risks and designing appropriate controls for these risks

ii) Minimize losses due to defaults or untimely payments by borrowers

iii) Maintain an appropriate credit administration and loan review system

iv) Design appropriate credit risk mitigation techniques

An impairment analysis is performed at each reporting date based on the facts and circumstances existing on that date to identify expected losses on account of time value of money and credit risk. For the purposes of this analysis, the loan receivables are categorised into Company''s based on days past due. Each Company is then assessed for impairment using the ECL model as per the provisions of Ind AS 109 - financial instruments. The Company recognises loss allowance for ECLs on Loans and advances to customers as per Income recognition, Asset Classification and Provisioning (IRACP) norms notified by RBI.

Staging:

As per the provision of Ind AS 109 general approach all financial instruments are allocated to stage 1 on initial recognition. However, if a significant increase in credit risk is identified at the reporting date compared with the initial recognition, then an instrument is transferred to stage 2. If there is objective evidence of impairment, then the asset is credit impaired and transferred to stage 3.

The Company considers a financial instrument defaulted and therefore Stage 3 (credit-impaired) for ECL calculations in all cases when the borrower becomes 180 days past due on its contractual payments.

2- Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due. The Company''s objective is to provide financial resources to meet its business objectives in a timely, cost effective and reliable manner and to manage its capital structure. A balance between continuity of funding and flexibility is maintained through the use of various types of borrowings.

The company''s principal sources of liability are cash and cash equivalents, cash flow from operations and available unutilized credit limit sanctioned by bank and nbfc. The company believes that cash flow from operations and the working capital is sufficient to meet its current requirements and accordingly no liquidity risk is perceived.

3- Market rate risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. In the case of the Company, market risk primarily impacts financial instruments measured at fair value through profit or loss. Market risk includes interest rate risk and foreign currency risk.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have exposure to the risk of changes in market interest rate as it has debt obligations with fixed interest rates which are measured at amortised cost.

b) Foreign currency risk

The Company does not have any instrument denominated or traded in foreign currency. Hence, such risk does not affect the Company.

4- Price risk

For Gold Loan

Sudden fall in the gold price and fall in the value of the pledged gold ornaments can result in some of the customers to default if the loan amount and interest exceeds the market value of gold. This risk is in part mitigated by a minimum 25% margin retained on the value of jewellery for the purpose of calculation of the loan amount. Further, we appraise the jewellery collateral solely based on the weight of its gold content, excluding weight and value of the stone studded in the jewellery. In addition, the sentimental value of the gold jewellery to the customers may induce repayment and redemption of the collateral even if the value of gold ornaments falls below the value of the repayment amount. An occasional decrease in gold prices will increase price risk significantly on account of our adequate collateral security margins. However, a sustained decrease in the market price of gold can additionally cause a decrease in the size of our loan portfolio and our interest income.

For Market Listed Investments measured at fair value through P&L

The Company''s quoted equity, Mutual fund and other market link investment carry a risk of change in prices. To manage its price risk arising from investments in equity, Mutual fund and other market link securities, the Company periodically monitors the sectors it has invested in, performance of the investee companies and measures mark- to- market gains / (losses).

5- Prepayment risk

Prepayment risk is the risk that the Company will incur a financial loss because its customers and counterparties repay or request repayment earlier or later than expected, such as fixed rate loans like ours when interest rates fall.

Note: Carrying amounts of cash and cash equivalents, borrowings and other financial liabilities as at March 31, 2023 and March 31, 2022 approximate the fair value because of their short term nature. The carrying amounts of loans given and borrowings taken for short term are considered to be close to the fair value.

* In the absence of unobservable market for these loan assets, the fair value have been determined from the perspective of the Company''s asset considering the changes in performance and risk indicators (including delinquencies and interest rate)

Measurement of fair values

i) Valuation techniques and significant unobservable inputs

The carrying amounts of financial assets and liabilities which are at amortised cost are considered to be the same as their fair values as there is no material differences in the carrying values presented.

ii) Financial instruments - fair value

The fair value of financial instruments have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurement).

The categories used are as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices;

Level 2: The fair value of financial instruments that are not traded in active market is determined using valuation technique which maximizes the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value on instrument are observable, the instrument is included in level 2; and

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

iii) Transfers between levels I and II

There has been no transfer in between level I and level II.

Note 32 : Capital Management:

The objective of the Company''s Capital Management is to maximise shareholder value, safeguard business continuity and support the growth of its subsidiaries. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through loans and operating cash flows generated. The debt equity ratio is 0.18 as at March 31, 2024 (as at March 31, 2023 is 0.10)

Note 33 : Segment Reporting:

"The Company is engaged primarily on the business of "Financing" only, taking into account the risks and returns, the organization structure and the internal reporting systems. All the operations of the Company are in India. All non-current assets of the Company are located in India Accordingly, there are no separate reportable segments as per Ind AS 108 - "Operating segments".

Note 34 : Under the Micro, Small and Medium Enterprises Development Act, 2006 ("MSMED Act") which came into force from October 2, 2006, certain disclosures are required to be made relating to micro, small and medium enterprises. There have been no reported cases of delays in payments to micro and small enterprises or of interest payments due to delays in such payments.

Note 37 : Contribution to political parties during the year 2023-24 is Rs. NIL

Note 38 : Protection Fund as at March 31, 2024 There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2024

Note 39 : Related Party Disclosure:

Related party disclosures as required by Ind AS 24 - Related Party Disclosures.

A) Name of the related party and description of the relationship with whom tran saction taken place:

Note 40 : Events after the reporting period:

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

Note 41 : In the opinion of the Board of Directors, 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 foregoing Balance Sheet and adequate provision for all known liabilities on the Company has been made.

Note 42 : The Company does not hold any immovable property as on 31 March 2024. All the lease agreements are duly executed in favour of the Company for properties where the Company is the lessee.

Note 43 : No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder, as at 31 March 2024.

Note 44 : The Company is not a declared wilful defaulter by any bank or financial Institution or other lender, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India, during the year ended 31 March 2024.

Note 45 : The Company does not have any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31 March 2024.

Tier-II CRAR* ratio is not applicable to the company because the company does not have supplementary capital.

Variance in Liquidity Coverage Ratio (%) ** is more than 25% due to reason that in the current year company has obtained additional overdraft facility from financial institution.

Note 47 : The Company has borrowings from banks and financial institutions on the basis of security of current assets and the quarterly returns filed by the Company with the banks and financial institutions are in accordance with the books of accounts of the Company for the respective quarters.

Note 48 : The Company has taken borrowings from banks and financial institutions and utilised them for the specific purpose for which they were taken as at the Balance sheet date.

Note 49 : There have been no transactions which have not been recorded in the books of accounts, that have been surrendered or disclosed as income during the year ended 31 March 2024, in the tax assessments under the Income Tax Act, 1961. There have been no previously unrecorded income and related assets which were to be properly recorded in the books of account during the year ended 31 March 2024.

Note 50 : As a part of normal lending business, the company grants loans and advances on the basis of security / guarantee provided by the Borrower/ co-borrower. These transactions are conducted after exercising proper due diligence.

Note 51 : The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2024.

Note 52 : Derivatives: There are no derivative instruments in the Company for the year ended 31 March 2024.

Note 53 : Registration of charges or satisfaction with Registrar of Companies (ROC): All charges or satisfaction are registered with ROC within the statutory period for the financial years ended March 31, 2024. No charges or satisfactions are yet to be registered with ROC beyond the statutory period.

Note 54 : Compliance with number of Layers of companies: The Company has not violated with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31, 2024.

Note 55 : Miscellaneous

Registration obtained from other financial sector regulators

The Company is registered with RBI and has all its operations in India, it has not obtained registration from any other financial sector regulators during the year.

Group structure: Not Applicable. The Company does not have any holding, subsidiary or associate company.

Net Profit or Loss for the period, prior period items and changes in accounting policies:

The Company does not have any prior period items / change in accounting policies during the current year other than disclosed in financials.

Revenue Recognition: There have been no circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties.

Consolidated Financial Statements (CFS): The Company does not have any subsidiary, associate or joint venture accordingly CFS is not applicable.

Note 56 : There were no instances of fraud reported during the year ended 31 March 2024.

Note 57 : Figures of previous year have been reworked/regrouped/reclassified wherever necessary.

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Mar 31, 2015

1.Related Party Disclosures

A List of Related Parties where control exists and related parties with whom transactions have taken place and relationship

Sr. Name of the Related Party Relationship No.

1 Dilipkumar Nalinkant Gandhi Key Management Personnel

2 Pallaviben Dilipkumar Gandhi Key Management Personnel

3 Harsh Dilipkumar Gandhi Key Management Personnel

4 Nipurnaben Nalinkant Gandhi Relative

2. In the opinion of the board the current assets, loans and advances are having value at least equal to the amount at which they are stated if realized in the ordinary course of business. Further provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary and no personal expenses have been charged to revenue accounts.

3. Outstanding Debit Credit Balances are Subject to Confirmations from the Parties.

4. We have verified the vouchers and documentary evidences wherever made available. Where no documentary evidences were available, we relied on the information/authentication given by the management.

5. Company is registered as NBFC with RBI and mainly engaged in the business of financing against two wheelers. The said advance is generally recoverable in 36 monthly install- ments. As the advance is realizable in 36 months, the operating cycle, is considered of 36 months (3 years) for classification of current / non current assets and liabilities as required under Revised Schedule VI for the Balance sheet as at 31.03.2015.

6. Previous year''s figures have been regrouped and/or rearranged wherever considered nec- essary.

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Mar 31, 2013

1. In the opinion of the board the current assets, loans and advances are having value at least equal to the amount at which they are stated if realized in the ordinary course of business. Further provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary and no personal expenses have been charged to revenue accounts.

2. Outstanding Debit Credit Balances are Subject to Confirmations from the Parties.

3. We have verified the vouchers and documentary evidences wherever made available. Where no documentary evidences were available, we relied on the information/authentication given by the management.

4. Company is registered as NBFC with RBI and mainly engaged in the business of financing against two wheelers. The said advance is generally recoverable in 36 monthly installments. As the advance is realizable in 36 months, the operating cycle, is considered of 36 months (3 years) for classification of current / non current assets and liabilities as required under Re- vised Schedule VI for the Balance sheet as at 31.03.2013.

5. Previous year''s figures have been regrouped and/or rearranged wherever considered neces- sary.

Additional information pursuant to para 3, 4C, and 4D, of part II of schedule VI of Companies Act, 1956 are not applicable in the case of the Company.

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Mar 31, 2012

Not Available

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Mar 31, 2011

1 Deferred tax provision as required by AS 22

The depreciation difference on the assets being negligible, no provision is made as required by AS 22.

2 The Company has been advised that the payment of bonus Act, 1965 and the pay ment of gratuity Act, 1972 are not applicable.

3 Provision for Income Tax is made after considering deductions and exemptions available at the rates applicable under the income tax Act, 1961.

4 In the opinion of the board the current assets, loans and advances are having value at least equal to the amount at which they are stated if realised in the ordinary course of business. Further provision for all known liabilities are adequate and not in excess of the amount reasonably necessary and no personal expenses have been charged to revenue accounts..

5. Outstanding Debit Credit Balances are Subject to Confirmations from the Parties.

6. As required by Section 45 - IC of Reserve Bank Of India Act , 1934, Company has appropriated 20% of its profits to Special Reserve Account.

7 During the year under audit, company has seized/repossessed the assets of the borrowers in default. The entries of profit (if any) is made on sale which is credited to other income and the entries of loss (if any) is made on sale which is debited to Bad Debts / Loss on sale of repossessed assets. Further the assets which are not sold they are shown as repossessed assets at outstanding balance of respective borower's account.

8. We have verified the vouchers and documentary evidences wherever made available. Where no documentary evidences were available , we relied on the information/ authentication given by the management.

9. Earning per Share : (AS-20)

(i) The amount used as numerator in calculating basic earning per share is the profit after depreciation and taxes i.e. Rs. 44,46,826/-

10. Segment Reporting : (AS-17)

Based on the guiding principle given in Accounting standard on 'Segment Reporting' (AS-17) issued by the ICAI, the Company's primary business is of providing finance mainly for auto vehicles which mainly have similar risk and returns, hence , in our opinion , there is no separateble segment.

11. Related Party Disclosures : (AS-18)

(a) Relationships: Associates

Nalin Consultancy Services Ltd.

Nalin Services Ltd.

Key Management Personnel

Dilipbhai N. Gandhi

Nipurnaben N. Gandhi Pallaviben D. Gandhi

Harsh D. Gandhi

12. Previous year's figures have been regrouped and/or rearranged wherever considered necessary.

13. Information required in terms of part IV of schedule VI of the Companies Act, 1956 is attached.

14. Additional information pursuant to para 3,4C, and 4D, of part II of schedule VI of Companies Act, 1956 are not applicable in the case of the Company.

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Mar 31, 2010

1 Deferred tax provision as required by AS 22

The depreciation difference on the assets being negligible, no provision is made as required by AS 22.

2 The Company has been advised that the payment of bonus Act, 1965 and the pay ment of gratuity Act, 1972 are not applicable.

3 Provision for Income Tax is made after considering deductions and exemptions available at the rates applicable under the income tax Act, 1961.

4 In the opinion of the board the current assets, loans and advances are having value at least equal to the amount at which they are stated if realised in the ordinary course of business. Further provision for all known liabilities are adequate and not in excess of the amount reasonably necessary and no personal expenses have been charged to revenue accounts..

5 Bank balances include balances of following non scheduled Banks. The details of which is given hereunder.

6 Remuneration to Auditors:

7 Remuneration to the directors:

8 The details of Investments held by the Company as on 31.03.2010 is given here under.

9. Outstanding Debit Credit Balances are Subject to Confirmations from the Parties.

10. As required by Section 45-IC of Reserve Bank Of India Act , 1934, Company has appropriated 20% of its profits to Special Reserve Account.

11 During the year under audit, company has seized / repossessed the assets of the borrowers in default. The entries of profit (if any) is made on sale which is credited to other income and the entries of loss (if any) is made on sale which is debited to Bad Debts / Loss on sale of repossessed assets. Further the assets which are not sold they are shown as repossessed assets at outstanding balance of respective borowers account.

12. We have verified the vouchers and documentary evidences wherever made available. Where no documentary evidences were available, we relied on the information/ authentication given by the management.

13. Earning per Share : (AS-20)

(i) The amount used as numerator in calculating basic earning per share is the profit after depreciation and taxes i.e. Rs. 3579000/-

(ii) The number of ordinary shares used as the denominator in calculating the basic earning per share is 3262000/-

14. Segment Reporting : (AS-17)

Based on the guiding principle given in Accounting standard on Segment Reporting (AS-17) issued by the ICAI, the Companys primary business is of providing finance mainly for auto vehicles which mainly have similar risk and returns, hence, in our opinion , there is no separateble segment.

15. Related Party Disclosures : (AS-18)

(a) Relationships: Associates

Nalin Housing Finance Ltd. Nalin Services Ltd. (Pre.-Nalin Orchared Ltd.) Amee Finance Ltd. Key Management Personnel Mahendrakumar P. Shah Dilipbhai N. Gandhi Nipurnaben N. Gandhi Pallaviben D. Gandhi The following transaction were carried out with the related parties in the ordinary course of business as under:

16. Previous years figures have been regrouped and/or rearranged wherever considered necessary.

17. Information required in terms of part IV of schedule VI of the Companies Act, 1956 is attached.

18. Additional information pursuant to para 3,4C, and 4D, of part II of schedule VI of Companies Act, 1956 are not applicable in the case of the Company.