Notes to Accounts of Shri Niwas Leasing and Finance Ltd.

Mar 31, 2025

3.21. Provisions, Contingent Liabilities and Contingent Assets

3.21.1. Provisions

Provisions are recognized when there is 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 the
obligation. Provisions are determined by discounting the expected future cash flows (representing
the best estimate of the expenditure required to settle the present obligation at the balance sheet
date) at a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. The unwinding of the discount is recognized as finance cost.

3.21.2. Contingent Liabilities

Contingent liability is a possible obligation arising from past events and 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 that arises from past
events but is not recognized because it is not possible that an outflow of resources embodying
economic benefit will be required to settle the obligations or reliable estimate of the amount of the
obligations cannot be made. The Company discloses the existence of contingent liabilities in
Other Notes to Financial Statements.

3.21.3. Contingent Assets

Contingent assets usually arise from unplanned or other unexpected events that give rise to the
possibility of an inflow of economic benefits. Contingent Assets are not recognized though are
disclosed, where an inflow of economic benefits is probable.

3.21.4. Intangible Assets

3.21.4.1. Recognition and Measurement

Intangible assets are stated at cost on initial recognition and subsequently measured at cost
less accumulated amortization and accumulated impairment loss, if any.

3.22. Amortization

3.22.1. Software’s are amortized over a period of three years.

3.22.2. The amortization period and the amortization method are reviewed at least at the end of
each financial year. If the expected useful life of the assets is significantly different from
previous estimates, the amortization period is changed accordingly.

3.23. Operating Segment

Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision maker. The chief operating decision maker of the Company is
responsible for allocating resources and assessing performance of the operating segments and
accordingly is identified as the chief operating decision maker. The Company has identified
one reportable segment only based on the information reviewed by the CODM.

3.24. Revenue Recognition:

Revenue is recognized based to the extent it is probable that the economic benefit will flow to
the company and revenue can be reliably measured regardless of when the payment is being
made. Revenue is measured at the fair value of the consideration received or receivable, taking
into account contractually defined terms of payment, and excludes taxes & duties collected on
behalf of the Government and is reduced for estimated customer returns, rebates and other
similar allowances.

In respect of loan agreements, the income is accrued by applying the impact rate in the
transaction on declining balance on the amount financed for the period of the agreement.

Dividend income on investments is recognized when the right to receive the same is established.

No income is recognized in respect of Non- performing assets, if any, as per the prudential norms
for income recognition introduced for Non-Banking Financial Corporation by Reserve Bank of
India vide its notification o.DFC.NO.119/DG/ (SPT)-98 date 31-01-1998 and revised notification
no. DNBS.192/DG (VL)-2007 dated 22-02-2007.

3.25. Provisions of Assets

The company makes provisions for standard and Non-performing Assets as per the Non-Banking
Financial (Non-Deposit Accepting of Holding Companies prudential Norms Reserve Bank)
Directions, 2007, as amended from time to time. The company also makes additional provisions
towards loan assets, to the extent considered necessary, based on the management’s best estimate.

Loan assets which as per the management are not likely to be recovered are considered as bad
debts and written off.

Provisions on standards assets are made as per the notification DNBS.PD.CC.No.
002/03.10.001/2014-15 DATED NOV 10, 2014 issued by Reserve Bank of India.

3.26. Provision for Standard & Nonperforming Assets:

The company has made provision towards its Loan and Advance Assets, based on the management''s best
estimates. During the year company has not created any Provision for standard Assets. Although the
company has followed the requirement of provision creation for standard Assets , Substandard Assets,
Doubtful Assets and Loss Assets. asper prescribed by the RBI Guidelines. During the year company has
made provision on its Loan Assets based on the Expected Credit Loss. Accordingly, the company has
classified its Loan Asset and made the Provision accordingly as below:

4. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING

ACCOUNTING POLICIES

4.1. Estimates and judgments are continually evaluated. They are based on historical experience and
other factors, including expectations of future events that may have a financial impact on the
Company and that are believed to be reasonable under the circumstances. Information about
Significant judgments and Key sources of estimation made in applying accounting policies that
have the most significant effects on the amounts recognized in the financial statements is
included in the following notes:

4.2. Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized
is based on an assessment of the probability of the Company’s future taxable income against
which the deferred tax assets can be utilized. In addition, significant judgment is required in
assessing the impact of any legal or economic limits.

4.3. Classification of Leases: The Company enters into leasing arrangements for various assets. The
classification of the leasing arrangement as a finance lease or operating lease is based on an
assessment of several factors, including, but not limited to, transfer of ownership of leased asset
at end of lease term, lessee’s option to purchase and estimated certainty of exercise of such
option, proportion of lease term to the asset’s economic life, proportion of present value of
minimum lease payments to fair value of leased asset and extent of specialized nature of the
leased asset.

4.4. Where the rate implicit in the lease is not readily available, an incremental borrowing rate is
applied. This incremental borrowing rate reflects the rate of interest that the lessee would have
to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an

asset of a similar nature and value to the right of-use asset in a similar economic environment.
Determination of the incremental borrowing rate requires estimation.

4.5. Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of
actuarial assumptions which include mortality and withdrawal rates as well as assumptions
concerning future developments in discount rates, medical cost trends, anticipation of future
salary increases and the inflation rate. The Company considers that the assumptions used to
measure its obligations are appropriate. However, any changes in these assumptions may have
a material impact on the resulting calculations.

4.6. Provisions and Contingencies: The assessments undertaken in recognising provisions and
contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37,
‘Provisions, Contingent Liabilities and Contingent Assets’. The evaluation of the likelihood of
the contingent events is applied best judgment by management regarding the probability of
exposure to potential loss.

4.7. Impairment of Financial Assets: The Company reviews it carrying value of investments carried
at amortized cost annually, or more frequently when there is indication of impairment. If
recoverable amount is less than its carrying amount, the impairment loss is accounted for.

4.8. Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through
appropriate estimations of irrecoverable amount. The identification of doubtful debts requires
use of judgment and estimates. Where the expectation is different from the original estimate,
such difference will impact the carrying value of the trade and other receivables and doubtful
debts expenses in the period in which such estimate has been changed.

4.9. Fair value measurement of financial Instruments: When the fair values of financial assets and
financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in
active markets, their fair value is measured using valuation techniques including the
Discounted Cash Flow model. The input to these models are taken from observable markets
where possible, but where this not feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility.

Other Notes

4.10. Information as required by Non-Banking Financial (Non Deposit Accepting or Holding)
Companies Prudential Norms (Reserve Bank) Direction, 2007 is Furnished vide Annexure -1
Attached Herewith.

4.11. Information as required by Non-Banking Financial Companies -Corporate Governance
(Reserve Bank) Direction, 2015 is Furnished vide Annexure -II Attached Herewith.

4.12. Details of Crypto / Virtual Currency

There were no Transaction and Financial Dealing in Crypto / Virtual Currency during the
Financial Year 2024-25.

4.13. There are no micro, Small and Medium Enterprises, to whom the Company owes dues which
outstanding for more than 45 days as at 31^st March 2025. 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 company.

The Note Referred to above form as an integral part of Balance Sheet.

For VRSK & Associates FOR SHRI NIWAS LEASING AND FINANCE LIMITED

Chartered Accountants

_RAj_{NI TANWAR} SURENDRA KUMAR JAI N

(MANAGING DIRECTOR) (Di^rect°^r)

DIN- 8201251 DIN No- 00530035

Add: WZ-25 B, Naraina Add: 555, Double Storey, New

Village, Dist. South West Rajendra Nagar, Delhi-110060

(CA ANKUSH GUPTA) Delhi- 110028 Date: 30/05/2025

Partner ^Date: 30/05/2025

Membership No. 086499
FRN:011199N

RAVI KUMAR DH AKER MONI

Place : New Delhi

(Company Secretary) _(CFO)

^Dated : ^30/05/2025 M.NO- A49038 PAN: AZHPM8164H

UDIN: 25086499BMLIJA1752 ^{Add: 127, Dhaker} ^g^ Add: 100, Gali Mandir

Jhandi Wali Koti, Hindaun Wali, Sarai Pipal Thala,

City, Karauli, Rajasthan-322230 Adarsh Nagar. Dist: North

Dated : 30/05/2025 West Delhi -110033

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Mar 31, 2024

(i) A Provision is recognized when the company has present obligation as a result of past event
and it is probable that outflow of resources will be required to settle the obligation and in respect
of which a reliable estimate can be made. Provisions are not discounted to their present value
are determined based on best estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(ii) Contingent Liabilities are disclosed separately by way of note to financial statements after
careful evaluation by the managements of the facts and legal aspects of the matter involved in
case of:

(a) A present obligation arising from the past event, when it is not probable that an
outflow of resources will be required to settle the obligation.

(b) A possible obligation, unless the probability of outflow of resources is remote.

(iii) Contingent Assets are neither recognized, nor disclosed in the financial statements.

(o) Income Taxes:

Income tax expense for the year comprises of current tax and deferred tax. It is recognised in
the Statement of Profit and Loss except to the extent it relates to a business combination or to
an item which is recognised directly in equity or in other comprehensive income.

Current tax is the expected tax payable/receivable on the taxable income/loss for the year using
applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous
years. Interest expenses and penalties, if any, related to income tax are included in finance cost
and other expenses respectively. Interest Income, if any, related to Income tax is included in
current tax expense.

Deferred tax is recognised in respect of temporary differences between the carrying amount of
assets and liabilities for financial reporting purposes and the corresponding amounts used for
taxation purposes.

A deferred tax liability is recognised based on the expected manner of realisation or settlement
of the carrying amount of assets and liabilities, using tax rates enacted, or substantively enacted,
by the end of the reporting period. Deferred tax assets are recognised only to the extent that it
is probable that future taxable profits will be available against which the asset can be utilised.
Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no
longer probable that the related tax benefit will be realised. Current tax assets and current tax
liabilities are offset when there is a legally enforceable right to set off the recognised amounts
and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets
and deferred tax liabilities are offset when there is a legally enforceable right to set off current
tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities
relate to income taxes levied by the same taxation authority.

(p) Employee Benefits

No provision of retirement benefits of employees such as leave encashment, gratuity has been
made during the year by the company. The same shall be accounted for as and when arises.

22. Previous year’s figures have been reworked, regrouped, & reclassified wherever necessary to
confirm to the current year presentation.

23. 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.

24. Statutory Reserve represents the Reserve Fund created u/s 45-IC of the Reserve Bank of India
Act, 1934. An amount of NIL (Previous Year Rs. 2,48,618/-) representing 20% of net Profit is
transferred to the fund for the year.

The company has made provision towards loan Assets, based on the management’s best
estimates. Provision of 0.40% (previous Year 0.40%) on Standard Assets has been made during
the year, as per stipulation of RBI on standard assets. Company has made provision for standard
Assets as per table below:

26. The company’s business activity falls within single primary/ secondary business segment viz.
Finance Activity. The disclosure requirement of IND AS-108 “Segment Reporting “issued by
the Institute of chartered Accountants of India, therefore is not applicable.

27. There is no any pending tax demand on company as on date 31.03.2024.

28. Related Party Disclosure:

As per IND AS-24, on related Party disclosure issued by the Institute of chartered Accountants
of India, The details of Such Related party transaction recognized during the year is as under:

30. Information as required by Non-Banking Financial (Non Deposit Accepting or Holding)
Companies Prudential Norms (Reserve Bank) Direction, 2007 is Furnished vide Annexure -1
Attached Herewith.

31. The Company has Outstanding Loan to the Best Realty (LLP) '' 14,45,630/-as on 31-03-2024,
the borrower company are involved in the business of Real estate. The company also given a loan
to Paragon Knits Ltd amounting of Rs. 1,07,59,773/- for which the company has not executed
loan agreement.

32. The Company estimates the deferred tax created / (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.

35. Details of Policy Developed and Implemented by the Company on its Corporate Social
Responsibility Initiatives

The Company has not developed and implemented any Corporate Social Responsibility
initiatives as the said provisions are not applicable.

36. Details of Crypto / Virtual Currency

There were no Transaction and Financial Dealing in Crypto / Virtual Currency during the Financial
Year 2023-24.

37. There are no micro, Small and Medium Enterprises, to whom the Company owes dues which
outstanding for more than 45 days as at 31^st March 2024. 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 company.

38. With respect to the proviso to rule 3 sub section 1 of companies (Accounts) rules 2014, the company
did not maintain the accounting software which has a feature of recording of audit trail of each and
every transaction, creating and edit log of each change made in the books of accounts along with the
date when such changes were made and ensuring that the audit trail cannot be disabled.

IN TERMS OF OUR REPORT OF EVEN DATE ANNEXED.

FOR GSA & ASSOCIATES LLP FOR AND ON BEHALF OF

CHARTERED ACCOUNTANT SHRI NIWAS LEASING & FINANCE LTD.

FRN: 000257N/N500339

CA. MANINDRA K TIWARI RAJNI TANWAR SURENDRA KUMAR JAIN

(PARTNER) (MANAGING DIRECTOR) (DIRECTOR)

M.NO: 501419 DIN: 08201251 DIN: 00530035

RAVI KUMAR DHAKER MONI

PLACE: NEW DELHI (COMPANY SECRETARY) (CFO)

DATE: 10.05.2024 M.NO: A49038

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Mar 31, 2015

1. The company has only one class of equity Shares having Par Value of Rs. 10 per Share. All these Shares have Same right & preferences with respect to payment of dividend, repayment of Capital & Voting.

2. Previous years figures have been reworked, regrouped, & reclassified wherever necessary to confirm to the current year presentation.

3. 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.

4. There is no employee drawing remuneration in excess of RS. 60, 00,000 during the year ending 31st March, 2015 or RS. 5, 00,000 per month. (Previous Year Nil).

5. Any provision no longer required written back.

23. Statutory Reserve represents the Reserve Fund created u/s 45-IC of the Reserve Bank of India Act, 1934. An amount of RS. 690. (Previous Year RS. 297,910] representing 20% of net Profit is transferred to the fund for the year.

6. Provision for Standard & Nonperforming Assets:

The company has made provision towards loan Assets, based on the management's best estimates. Provision of 0.25% on Standard Assets has been made during the year, as per stipulation of RBI on standard assets. Company has made provision for standard Assets as per table

7. The company's business activity falls within single primary/ Secondary business segment viz.. Finance Activity. The disclosure requirement of Accounting standard (AS] -17 " Segment Reporting " issued by the Institute of chartered Accountants of India, therefore is not applicable.

8. There is a pending Tax demand of RS. 10,10,977/- against the company. The above demand was raised by Department during the course of assessment proceeding in A.Y. 2006-07. The appeal against above assessment order is pending before CIT (A) till date. The Company is hopeful to get relieved from CIT (A), New Delhi.

9. Related Party disclosure:

As per Accounting Standard 18 on related Party disclosure issued by the Institute of chartered Accountants of India, the nature and volume of transaction of the company during the year with the related parties were as follows:

10. Information as required by Non Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Direction, 2007 is Furnished vide Annexure -1 Attached Herewith.

11. The Company has Outstanding Loan to the Suncity Projects Pvt. Ltd. of Rs. 38,000,000 as on 31-03-2015, the borrower company is involved in the business of Real estate.

12. The Company estimates the deffered tax created / (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.

13. 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 2015. 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 company.

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Mar 31, 2014

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

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) There is no employee drawing remuneration in excess of Rs. 60,00,000 during the year ending 31st march , 2013 or Rs. 5,00,000 per month.(previous Year Nil).

d) Any provision no longer required written back.

e) Statutory Reserve represents the Reserve Fund created u/s 45-IC of the Reserve Bank of India Act, 1934. An amount of Rs. 297910. (previous Year Nil) representing 20% of net Profit is transferred to the fund for the year.

f) Provision for Standard & Nonperforming Assets:

The company has made provision towards loan Assets , based on the management''s best estimates. Provision of 0.25% on Standard Assets has been made during the year, as per stipulation of RBI on standard assets. Company has made provision for standard Assets as per table below:

g) The company''s business activity falls within single primary/ Secondary business segment viz.. Finance Activity. The disclosure requirement of Accounting standard (AS) -17 " Segment Reporting " issued by the Institute of chartered Accountants of India, therefore is not applicable.

h) Related Party disclosure:

As per Accounting Standard 18 on related Party disclosure issued by the Institute of chartered Accountants of India, the nature and volume of transaction of the company during the year with the related parties were as follows:

i) Earning per Share "AS-20" issued by the Institute of chartered Accountants of India:

j) Information as required by Non Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Direction, 2007 is Furnished vide Annexure -1 Attached Herewith.

k) The Company has Outstanding Loan to the Suncity Projects Pvt. Ltd. of Rs. 38,000,000 as on 31-03-2014, the borrower company is involved in the business of Real estate .

l) The Company estimates the deffered tax created /( credit) using the applicable rate of Taxation based on the impact of timing Difference s between financial Statements and Estimated taxable income for the current Year.

m) 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 2014. 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 company.

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Mar 31, 2013

1. The figures for the previous year have been regrouped or rearranged wherever necessary , so to make them comparable with those of the current year.

2. Revenue Recognition: Income & Expenditure is accounted for on accrual basis

3. Expenditure & Earning in foreign currency : Nil Previous Year : Nil

4. The Company has not paid any managerial remneration and the remuneration paid to employee is not exceeding the limit prescribed under the Companies Act, during the financial year 2012-13.

5. Details of Opening Stock, Purchase, Sales, Closing Stock during the year.

6. Notes form an integral part of the Balance Sheet and Profit & Loss Account.

7. Company has not provided for deferred Taxation as per AS-22.

8. The company has followed Income Tax Method for writing off its Preliminary Expenses i.e. It has write off its preliminary expenses in 5 years.

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Mar 31, 2012

1. The figures for the previous year have been regrouped or rearranged wherever necessary, so to make them comparable with those of the current year.

2. Revenue Recognition: Income & Expenditure is accounted for on accrual basis.

3. Expenditure & Earning in foreign currency : Nil Previous Year: Nil

4. The Company has not paid any managerial remuneration and the remuneration paid to employee is not exceeding the limit prescribed under the Companies Act, during the financial year 2011-12.

5. Details of Opening Stock, Purchase, Sales, Closing Stock during the year,

6. None of shareholders holds more than 5% share capital of the company.

7. Notes form an integral part of the Balance Sheet and Profit & Loss Account.

8. Company has not provided for deferred Taxation as per AS-22.

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Mar 31, 2011

1. The figures for the previous year have been regrouped or rearranged wherever necessary, so to make them comparable with those of the current year.

2. Revenue Recognition: Income & Expenditure is accounted for on accrual basis.

3. Expenditure & Earning in foreign currency : Nil

Previous fear: Nil

4. The Company has not paid any managerial remuneration and the remuneration paid to employee is not exceeding the limit prescribed under the Companies Act, during the financial year 2010 -11.

5. Details of Opening Stock, Purchase Sales, Closing Stock during the year.

6. Schedule 1 to 6 is the form an integral part of the Balance Sheet and Profit & Loss Account

7. Company has not provided for deferred Taxation as per AS-22.