Notes to Accounts of SRG Housing Finance Ltd.

Mar 31, 2025

2.5 PROVISIONS, CONTINGENT LIABILITIES
AND CONTINGENT ASSETS

Provisions are recognized when there is a present
obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of
resources embodying economic benefits will be
required to settle the obligation and there is a
reliable estimate of the amount of the obligation.

When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of those
cash flows (when the effect of the time value
of money is material). The discount rate used
to determine the present value is a pre-tax rate
that reflects current market assessments of
the time value of money and the risks specific
to the liability.

Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or nonoccurrence of one or more
uncertain future events not wholly within the
control of the Company or a present obligation
that arises from past events where it is either
not probable that an outflow of resources will
be required to settle the obligation or a reliable
estimate of the amount cannot be made.

Contingent assets are not recognized in
the financial statements. Contingent assets
are disclosed where an inflow of economic
benefits is probable.

Provisions, contingent liabilities and contingent
assets are reviewed at each Balance Sheet date.

Commitments

Commitments are future contractual liabilities,
classified and disclosed as follows:

The estimated amount of contracts remaining
to be executed on capital account and
not provided for

• Uncalled liability on shares;

• Undisbursed commitment relating to
loans; and

• Other non-cancellable commitments, if any,
to the extent they are considered material
and relevant in the opinion of management.

• Pending Capital Commitment.

2.6 REVENUE RECOGNITION

Revenue is recognized to the extent that it is
probable that the economic benefits will flow
to the company and the revenue can be reliably
measured and there exists reasonable certainty
of its recovery.

a) Interest Income

The main source of revenue for the Company
is Income from Housing and Other property
loans. Repayment of housing and property
loan is generally by way of Equated Monthly
Installments (EMIs) comprising of principal and
interest. EMIs generally commence once the
entire loan is disbursed. Pending commencement
of EMIs, pre-EMI interest is payable

every month on the loan that has been disbursed.
Interest is calculated on monthly rest on the basis
of agreed terms with the borrowers.

I nterest income on housing and property loans
and other financial instruments carried at
amortized cost is recognized on a time proportion
basis taking into account the amount outstanding
and the effective interest rate (“EIR”) applicable.

The EIR is the rate that exactly discounts
estimated future cash flows of the financial
instrument through the expected life of the
financial instrument or, where appropriate, a
shorter period, to the net carrying amount of the
financial instrument. The future cash flows are
estimated taking into account all the contractual
terms of the instrument.

The calculation of the EIR includes all fees paid
or received between parties to the contract that
are incremental and directly attributable to the
specific lending arrangement, transaction costs,

and all other premiums or discounts. For financial
assets at Fair Value through Profit or Loss
(FVTPL), transaction costs are recognized in
profit or loss at initial recognition.

The interest income is calculated by applying the
EIR to the gross carrying amount of non-credit
impaired financial assets (i.e. at the amortized
cost of the financial asset before adjusting
for any expected credit loss allowance).
For credit-impaired financial assets the interest
income is calculated by applying the EIR to the
amortized cost of the credit-impaired financial
assets [i.e. the gross carrying amount less the
allowance for expected credit losses (ECLs)].

Delayed payment interest (penal interest)
levied on customers for delay in repayments/
nonpayment of contractual cash flows is
recognized on realization.

b) Fee and other charges

Processing fees and other loan related charges
are recognized when it is reasonable to expect
ultimate collection which is generally at the time of
Login/ disbursement of the loan. Fees on delayed
EMI/Pre-EMI Interest are recognized on receipt
basis, when the ultimate collection is made.

c) Investment Income

Income from interest on deposits and interest
bearing securities is recognized on the time
proportionate method taking into account the
amount outstanding and the rate applicable.
The gains/losses on sale of investments are
recognized in the Statement of Profit and
Loss on trade date.

d) Dividend Income

Dividend income from investments is recognized
when the Company''s right to receive payment
has been established (provided that it is probable
that the economic benefits will flow to the
Company and the amount of dividend income
can be measured reliably).

e) Other Income

Other Income represents income earned from
the activities incidental to the business and is

recognised when the right to receive the income
is established as per the terms of the contract

f) Finance Cost

Finance expenses consist of interest expense
on loans and borrowings. Borrowing costs are
recognized in the statement of profit and loss
using the effective interest method (EIR).

g) Exceptional Items

When items of income and expense within profit
or loss from ordinary activities are of such size,
nature or incidence that their disclosure is relevant
to explain the performance of the enterprise for
the period, the nature and amount of such items
is disclosed separately as Exceptional items.

The company does not have any items of income
and expense which categorized as exceptional
items during the year 2024-25.

2.7 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.

a) Measurement of Lease Liability

At the time of initial recognition, the Company
measures lease liability as present value of all
lease payment discounted using the Company''s
incremental cost of borrowing rate and
directly attributable cost. Subsequently, the
lease liability is

(i) increased by interest on lease liability;

(ii) reduce by lease payment made; and

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

b) Measurement of ROU

At the date of commencement of the lease, the
Company recognizes a right-of-use asset (ROU)

and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for
leases with a lease term of twelve months or less
(short-term leases) and low value assets.

For these short-term and low-value assets, the
Company recognises the lease payments as an
operating expense on a straight-line basis over
the term of the lease.

The ROU assets are initially recognised at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made
at or prior to the commencement date of the
lease plus any initial direct costs less any lease
incentives. They are subsequently measured
at cost less accumulated depreciation and
impairment losses.

ROU assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
underlying asset.

2.8 TAXES
a) Income Tax

Income tax expense represents the sum of the tax
currently payable and deferred tax. Income tax
expense comprises current and deferred taxes.
Income tax expense is recognized in the
Statement of Profit and Loss except when they
relate to items that are recognized outside profit
or loss (whether in other comprehensive income
or directly in equity), in which case tax is also
recognized outside profit or loss.

i. Current Tax

The tax currently payable is based on the
estimated taxable profit for the year for the
Company and is calculated using applicable
tax rates and tax laws that have been enacted
or substantively enacted. Taxable profit
differs from ''profit before tax'' as reported in
the Statement of Profit and Loss because of
items of income or expense that are taxable or
deductible in other years and items that are
never taxable or deductible. The current tax
is calculated using applicable tax rates that

have been enacted or substantively enacted
by the end of the reporting period.

ii. Deferred Tax

Deferred tax assets and liabilities are
recognized for the future tax consequences of
temporary differences between the carrying
values of assets and liabilities and their
respective tax bases, and unutilized business
loss and depreciation carry-forwards and
tax credits. Such deferred tax assets and
liabilities are computed separately for each
taxable entity. Deferred tax assets are
recognized to the extent that it is probable
that future taxable income will be available
against which the deductible temporary
differences, unused tax losses, depreciation
carry-forwards and unused tax credits
could be utilized.

Deferred tax relating to items recognized
outside profit or loss is recognized outside
profit or loss (either in other comprehensive
income or in equity). Deferred tax items are
recognized in correlation to the underlying
transaction either in OCI or directly in equity.

b) Goods and Services Input Tax Credit

Goods and Services tax input credit is accounted
for in the books in the period in which the supply
of goods or service received is accounted
and when there is no uncertainty in availing/
utilizing the credits.

2.9 CASH AND CASH EQUIVALENTS

Cash and cash equivalents includes cash on
hand, balance in current account and Balances
with banks in deposits accounts with original
maturity of less than 3 months. Short term and
liquid investments being subject to more than
insignificant risk of change in value, are not
included as part of cash and cash equivalents.

2.10 SEGMENT REPORTING

The Company is engaged mainly in the business
of Housing finance. This in the context of Ind AS
108 - operating segments reporting is considered
to constitute one reportable segment.

2.11 EARNINGS PER SHARE

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders (after deducting attributable
taxes) by the weighted average number of equity
shares outstanding during the period.

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

2.12 SECURITIES PREMIUM

Securities premium is credited when shares are
issued at premium. It can be used to issue bonus
shares, to provide for premium on redemption
of shares and issue expenses of securities which
qualify as equity instruments.

2.13 STATEMENT OF CASH FLOW

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.

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

2.14 STANDARD ISSUED BUT NOT YET
EFFECTIVE

No new standards as notified by Ministry of
Corporate Affairs (“MCA”), through Companies
(Indian Accounting Standards) Amendment
Rules, 2019 and Companies (Indian Accounting
Standards) Second Amendment Rules are
effective for the current year.

12. 1) NATURE OF SECURITY

i) Refinance from National Housing Bank (NHB) and other Term Loans from banks and Financial
Institutions are secured by first and exclusively charge on the specific book debts/receivables of
the company and irrevocable power of attorney given by the company in favour of Banks/FI''s/NHB
for recovery of dues, Lien on specific FDR''s and Personal Guarantee of specific Directors and Third
party guarantee.

ii) Redeemable Non convertible debentures are secured by first and exclusive charge on specific
assets by way of hypothecation of book debts in favour of debenture trustee.

iii) Car loans secured against hypothecation of Specific Motor Cars of Company and personal guarantee
of specified directors and third party guarantee

iv) The company has not made any default in repayment of instalments due over the reporting year.

v) The Repayment of the borrowing is done in monthly, quarterly, half yearly & annual Instalment as
per the sanctioned terms.

vi) All the borrowings are availed from India and not from outside India.

NOTE 15.2:

Terms/ Rights attached to equity shares

The company has only one class of Equity shares having par value of '' 10 each. Each holder of equity shares is
entitled to one vote per share.

The holders of equity shares are entitled to dividends,if any,proposed by the Board of Directors and approved
by Shareholders at the Annual General Meeting.

In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the
remaning assets of the company, after distribution of all preferential amounts.

However, no such preferential amounts exist currently. The distribution will be in proportion to the number of
equity shares held by the shareholders.

NOTE 16.1:

Nature and purpose of reserve

Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for
limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

Special Reserve

As per Section 29C of the National Housing Bank Act, 1987, the Company is required to transfer at least 20%
of its net profit every year to a reserve before any dividend is declared. For this purpose any Special Reserve
created by the Company under Section 36(1) (viii) of the Income Tax Act, 1961 is considered to be an eligible
transfer. The Company has transferred an amount of '' 490 Lakhs (Previous year ''421.18 Lakhs) to Special
Reserve in terms of Section 36(1) (viii) of the Income Tax Act, 1961.

General reserve

It is a free reserve which is created by appropriation from profts of the current year and/or undistributed profts
of previous years, before declaration of dividend duly complying with any regulations in this regard.

Retained earnings

Retained earnings represents the amount of accumulated earnings of the Company

b. Defined Obligation Benefit:

The company provides gratuity to its employees which are defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation.

The details of post-retirement benefits for the employees (including Key Management Personnel) as
mentioned hereunder are based on the report as provided by Independent Actuary as mentioned above
and relied upon by the Auditors.

Sensitivity Analysis

The sensitivity analysis have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected
benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as
some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation
has been calculated using the projected unit credit method at the end of the reporting period, which is the
same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years

Notes-

• Gratuity is payable as per entity''s scheme as detailed in the report.

• Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI).

• Salary escalation & attrition rate are considered as advised by the entity; they appear to be in line with
the industry practice considering promotion and demand & supply of the employees.

• Maturity Analysis of Benefit Payments is undiscounted cash flows considering future salary, attrition &
death in respective year for members as mentioned above.

• Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation.

• Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cash flow
timing, where weights are derived from the present value of each cash flow to the total present value.

• Any benefit payment and contribution to plan assets is considered to occur end of the year to depict
liability and fund movement in the disclosures.

• Value of asset provided by the entity is not audited by us and the same is considered as unaudited fair
value of plan asset as on the reporting date.

• In absence of specific communication as regards contribution by the entity, Expected Contribution in
the Next Year is considered as the sum of net liability/assets at the end of the current year and current
service cost for next year, subject to maximum allowable contribution to the Plan Assets over the next
year as per the Income Tax Rules.

Characteristics of defined benefit plan:

The entity has a defined benefit gratuity plan in India (funded). The entity''s defined benefit gratuity plan
is a final salary plan for employees, which requires contributions to be made to a separately administered
fund. The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are
responsible for the administration of the plan assets and for the definition of the investment strategy

Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value
of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market
value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary of the members more than assumed level will increase
the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate
which is determined by reference to market yields at the end of the reporting period on government bonds.
If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has
a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is
invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age
only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance
company and a default will wipe out all the assets. Although probability of this is very less as insurance
companies have to follow regulatory guidelines which mitigate risk.

During the year, there were no plan amendments, curtailments and settlements.

A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is
done as guided by rule 103 of Income Tax Rules, 1962.

Notes-

• All the Related party transactions are in ordinary course of business and at arm''s length basis.

• Expenses towards gratuity are determined actuarially on overall Company basis at the end of the year
and, accordingly have not been considered in the above information.

• The transactions disclosed above are excluding GST.

• During the Financial Year 2024-25, no payment is made to Non-Executive Directors and Independent
Directors except Rent to Mrs. Seema Jain & Sitting Fee Amount to Non-Executive Director/ Independent
Director as disclosed above.

NOTE 35: SEGMENT REPORTING:

35.1 Operating Segment: The Company''s main business is to provide loans for purchase, construction, repairs
and renovation etc. of residential house. All other activities of the company revolve around the main business.
As such, there are no separate reportable segments, as per IND AS 108 “Operating Segment” specified under
section 133 of the Companies Act, 2013. Accordingly, the amounts appearing in the financial statements relate
to the Company''s single business segment.

35.2 Entity Wide Disclosures: No revenue from transactions with a single external customer or counterparty
amounted to 10% or more of the Company''s total revenue in the year ended March 31, 2025 and March 31, 2024.

The Company operates in single geography i.e. India and therefore geographical information is not required to
be disclosed separately.

NOTE 36: LEASE DISCLOSURE:

Where the Company is the lessee:

The Company has entered into agreements for taking its office premises under lease/rent agreements.
These agreements are for tenures between 11 months and 10 years and majority of the agreements are renewable
by mutual consent on mutually agreeable terms, lease rentals have an escalation upto 10%. Leases for which the
lease term is less than 12 months have been accounted as short term leases.

The Company had acquired equity instrument for the purpose of holding for a longer duration and not for the
purpose of selling in near term for short term profit. Such instruments have been categorized as FVTOCI.

a. Fair Value Hierarchy:

The fair values of the financial assets and liabilities are included at the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date.

This section explains the judgments and estimates made in determining the fair values of the financial
instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for
which fair values are disclosed in the financial statements. To provide an indication about the reliability of
the inputs used in determining fair value, the Company has classified its financial instruments into the three
levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

* Other financial liabilities exclude liability pertaining to lease liability covered under Indian accounting standard - 116
(March 31, 2025: '' 1,164.56 Lakhs ; March 31, 2024: '' 1,284.90 Lakhs).

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed
equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which
are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual
funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded
bonds) is determined using valuation techniques which maximize the use of observable market data
and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in level 2, , this level of hierarchy includes financial
assets, measured using inputs other than quoted prices included within Level 1 that are observable for the
asset, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3: This level of hierarchy includes financial instruments measured using inputs that are not based
on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a
valuation model based on assumptions that are neither supported by prices from observable current market
transactions in the same instrument nor are they based on available market data..

There were no transfers between levels 1, 2 and 3 during the year.

The Company''s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the
end of the reporting period.

b. Valuation technique used to determine fair value

The fair value of a financial instrument on initial recognition is normally the transaction price (fair value
of the consideration given or received). Subsequent to initial recognition, the Company determines the
fair value of financial instruments that are quoted in active markets using the quoted prices and using
valuation techniques for other instruments. Valuation techniques include discounted cash flow method,
market comparable method, recent transactions happened in the Company and other valuation models.
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.

The Fair Value of the financial assets and financial liabilities are considered at the amount, at which the
instrument could be exchanged in current transaction between willing parties, other than in forced or
liquidation sale.

Other Financial Assets and Liabilities

With respect to Bank Balances and Cash and Cash Equivalents (Refer Note 3 (a) and (b)), Other Financial
Assets (Refer Note 6), Trade Payables (Refer Note 11) and Other Financial Liabilities (Refer Note 13), the
carrying value approximates the fair value.

NOTE 38: FINACIAL RISK MANANGEMENT:

The Company is exposed to certain financial risks namely credit risk, liquidity risk and market risk i.e. interest risk,
foreign currency risk and price risk. The Company''s primary focus is to achieve better predictability of financial
markets and minimise potential adverse effects on its financial performance by effectively managing the risks on
its financial assets and liabilities.

The principal objective in Company''s risk management processes is to measure and monitor the various risks
associated with the Company and to follow policies and procedures to address such risks. The Company''s risk
management framework is driven by its Board and its subcommittees including the Audit Committee, the Asset
Liability Management Committee and the Risk Management Committee. The Company gives due importance
to prudent lending practices and have implemented suitable measures for risk mitigation, which include
verification of credit history from credit information bureaus, personal verification of a customer''s business and
residence, valuation of collateral, technical and legal verifications, conservative loan to value, and required term
cover for insurance

a. Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on
time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial
liabilities - borrowing, trade payables and other financial liabilities.

The Company''s Asset Liability Committee (ALCO) monitors asset liability mismatches to ensure there are no
imbalances or excessive concentrations on either side of the balance sheet.

The Company continuously monitors liquidity in the market; and as a part of its ALCO strategy, it maintains
a liquidity buffer managed by an active treasury desk to reduce this risk.

Notes:

(i) Debt securities and borrowings (other than debt securities) carry adjustment of unamortized processing fee (EIR).

(ii) Other financial liabilities exclude liability pertaining to lease liability covered under Indian accounting standard - 116
(March 31, 2025: '' 1,164.56 Lakhs; March 31, 2024: '' 1,284.90 Lakhs).

(iii) Amounts repayable on demand are included in ‘within 1 year''

b. Market Risk

Market risk is the risk that the fair value of future cash flow of financial instruments will fluctuate due to
changes in the market variables such as interest rates, foreign exchange rates and equity prices. The Company
does not have any exposure to foreign exchange rate and equity price risk

(i) Foreign currency risk - Foreign currency risk is the risk that the fair value or future cash flows of an
exposure will fluctuate because of changes in foreign currency rates.

There was no foreign currency exposure as at March 31, 2025 and March 31, 2024.

(ii) Interest Rate Risk Exposure- The Company is subject to interest rate risk, since the rates of loans and
borrowings might fluctuate over the tenure of instrument. Interest rates are highly sensitive to many
factors beyond control, including the monetary policies of the Reserve Bank of India, deregulation of
the financial sector in India, domestic and international economic and political conditions, inflation and
other factors. In order to manage interest rate risk, the Company seeks to optimize borrowing profile
between short-term and long-term loans. The liabilities are categorized into various time buckets based
on their maturities and Asset Liability Management Committee supervise an interest rate sensitivity
report periodically for assessment of interest rate risks

(iii) Price Risk Exposure- The Company''s exposure to price risk arises from investments held by the Company
and classified in the balance sheet at fair value through profit or loss. The Company''s exposure to
Mutual Funds is not significant and hence the Company''s exposure to price risk is insignificant.

c. Credit Risk Management

Credit risk is the risk that the Company will incur a loss because the counterparty might fail to discharge
their contractual obligations. The Company has a comprehensive framework for monitoring credit quality of
its retail and other loans primarily based on number of days past due.

The credit risk is governed by the Credit Policy approved by the Board of Directors. The Policy outlines the
type of products that can be offered, customer categories, the targeted customer profile and the credit
approval process and limits.

The Company measures, monitors and manages credit risk at an individual borrower level and at the
group exposure level for other borrowers. The credit risk for retail borrowers is being managed at portfolio
level for both Home loans and Mortgage Loans. The Company has a structured and standardized credit
approval process, which includes a well-established procedure of comprehensive credit appraisal. The Risk
Management Policy addresses the recognition, measurement, monitoring and reporting of the Credit risk.
The policy is amended periodically to ensure compliance with the guidelines of the RBI as well as other
regulatory bodies

Credit Risk Methodology
Housing and Other Property Loans:

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

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

The various process controls such as KYC check, Credit Bureau Report analysis are undertaken. In addition
to due diligence process including visits to offices and homes in the case of loans made to retail borrowers
done by External agencies such as field investigation agencies, company''s staff also performs comprehensive
due diligence process including visits to customer''s business and residence premises.

Company analyses the portfolio performance of each product segment regularly, and use these as inputs
in revising the product programs, target market definitions and credit assessment criteria to meet the twin
objectives of combining volume growth and maintenance of asset quality.

The loans are secured by the mortgage of the borrowers'' property and third party guarantee.

Portfolio quality, credit limits, collateral quality and credit exposure limits are regularly monitored at
various levels.

The Company considers a financial instrument as defaulted and considers it as Stage 3 (credit-impaired) for
expected credit loss (ECL) calculations, when the assets become equal to or more than 90 days past due
on its contractual payments. These assets continue to be classified as Stage 3 till they become standard, in
accordance with RBI guidelines and the Board approved ECL Policy.

The following table sets out information about credit quality of loans measured at amortized cost based on
days past due information. The amount represents gross carrying amount.

Risk Management and Portfolio Review

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

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

It also reviews the completeness of documentation, creation of security and compliance with
regulatory guidelines.

The Company regularly reviews the credit quality of the portfolio. A summary of the reviews carried out is
submitted to the concern teams.

Collateral and other credit enhancements- The Company holds collateral and other credit enhancements
to cover its credit risk associated with its Loans, credit risk associated are mitigated because the same are
secured against the collateral.

Impairment assessment (Expected Credit Loss)

The reference below show where the Company''s impairment assessment and measurement approach is set
out in these notes.

Definition of Default

The Company considers a financial instrument as defaulted and considers it as Stage 3 (credit-impaired) for
expected credit loss (ECL) calculations, when the assets become equal to or more than 90 days past due on
its contractual payments. These assets continue to be classified as Stage 3 till the assets become standard,
in accordance with RBI guidelines and the ECL Policy.

Exposure at Default (EAD) The exposure at default (EAD) represents the gross carrying amount of the
financial instruments subject to the impairment calculation, addressing both the client''s ability to increase
its exposure while approaching default and potential early repayments too.

To calculate the EAD for a Stage 1 loan, the Company assesses the possible default events within 12 months
for the calculation of the 12 months ECL. For Stage 2 and Stage 3 financial assets, the exposure at default
is considered for events over the lifetime of the instruments.

Probability of Default (PD) represents the likelihood of default over a defined time horizon.

Loss Given Default (LGD) LGD has been calculated by taking into account the recovery experience across
the Company''s loan accounts post default. The recoveries are tracked and discounted to the date of default
using the interest rate.

Delinquency buckets have been considered as the basis for the staging of all loans with for FY 24 & FY 25

• 0-30 days past due loans classified as Stage 1

• 31- 89 days past due loans classified as Stage 2

• 90 days or above past due loans classified as Stage 3.

Whereas delinquency buckets have been considered as the basis for the staging of all loans with for FY 23:

• 0-60 days past due loans classified as Stage 1

• 61- 89 days past due loans classified as Stage 2

• 90 days or above past due loans classified as Stage 3.

For individual and other loans vintage analysis has been used to create PD terms structure which incorporates
both 12 months PD for Stage 1 loans and life time PD for stage 2 and 3 loans. The vintage analysis captures
a vintage default experience across a particular portfolio by tracking the yearly slippages from advances
originating in a particular year. The vintage slippage experience/default rate is then used to build the PD
term structure. This methodology has been used to create the LGD vintage which takes into account the
recovery experience across accounts of a particular portfolio post default. The recoveries are tracked and
discounted to the date of default using the interest rate.

Significant increase in credit risk: The Company continuously monitors all assets subject to ECL. In order to
determine whether an instrument or a portfolio of instruments is subject to 12 months ECL or Lifetime ECL,
the Company assesses whether there has been a significant increase in credit risk since initial recognition.
The Company considers an exposure to have significantly increased in credit risk when contractual payments
are more than 30 days past due. When estimating ECLs on a collective basis for a group of similar assets, the
Company applies the same principles for assessing whether there has been a significant increase in credit
risk since initial recognition.

Grouping financial assets measured on a collective basis: As explained above, the Company calculates ECL
on a collective basis on the following asset classes:

- Housing Loan

- Property Loan

Risk assessment model

The Company has designed and operates its risk assessment model that factors in both quantitative as well
as qualitative information on the loans and the borrowers. The model uses historical empirical data to arrive
at factors that are indicative of future credit risk and segments the portfolio on the basis of combinations of
these parameters into smaller homogenous portfolios from the perspective of credit behaviour.

Collateral

The Company holds collateral to mitigate credit risk associated with financial assets. The main types of
collateral majorly include residential properties. The collateral presented relates to instruments that are
measured at amortised cost.

Assets possessed under Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002:

Loan Portfolio includes gross loans amounting to '' 161.40 lakhs (March 31, 2024: '' 116.62 Lakhs) against
which the Company has taken possession of the properties under Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002 and held such properties for disposal.
The value of assets possessed against these loans is '' 307.34 lakhs. (March 31, 2024: '' 167.70 Lakhs).

d. Regulatory Risk

The Company requires certain statutory and regulatory approvals for conducting business and failure to
obtain retain or renew these approvals in a timely manner, may adversely affect operations. Any change
in laws or regulations made by the government or a regulatory body that governs the business of the
Company may increase the costs of operating the business, reduce the attractiveness of investment and /
or change the competitive landscape.

NOTE 40: CAPITAL MANAGEMENT

The Company''s capital management strategy is to effectively determine, raise and deploy capital to cover
risk inherent in business and meeting the capital adequacy requirements of the Reserve Bank of India (RBI).
The same is done through a mix of either equity and / or combination of short term / long term debt as may
be appropriate. The Company determines the amount of capital required on the basis of operations and capital
expenditure. The adequacy of the Company''s capital is monitored using, among other measures, the regulations
issued by the RBI. The capital structure is monitored on the basis of net debt to equity and maturity profile of
overall debt portfolio. The Company''s policy is in line with Master Direction - Non-Banking Financial Company
- Housing Finance Company (Reserve Bank) Directions, 2021 which currently permits HFCs to borrow up to 12
times of their net owned funds (“NOF”). Refer NOTE for Capital to risk-weighted assets ratio (CRAR).

The Company has complied in full with all its externally imposed capital requirements over the reported periods.

The Company has issued and allotted 5,00,000 share warrants on private placement basis to promoter and
non-promoter investor out of which 3,00,000 warrants were converted into equity shares of the Company in the
month of March 2024 and 2,00,000 warrants were converted into Equity Shares by May 24, 2024.

In Sep-24, 7,76,263 Equity shares were issued on preferential basis. In Oct-24 ,15,500 Shares while in Dec -24,
16,075 Shares were issued and alloted in ESOP Scheme. In March 2025 ,13,68,000 Shares were issued and alloted
on preferential basis.

a. Risk management

The Company''s objectives when managing capital are to :

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders, and

• Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Consistent with
others in the industry, the Company monitors capital on the basis of the following gearing ratio: Net debt (total
borrowings net of cash and cash equivalents) divided by Total ''equity'' (as shown in the balance sheet).

Loan covenants

Under the terms of the borrowing facilities, the Company has complied with the covenants throughout the
reporting period.

NOTE 41:

There are no indications which reflects that any of the assets of the company had got impaired from its potential
use and therefore no impairment loss was required to be accounted in the current year as per Indian Accounting
Standard on ''Impairment of Assets'' (Ind AS 36).

NOTE 42:

The Company does not have any exposure in foreign currency at the year end.

NOTE 43:

The Indian Parliament has approved the Code on Social Security, 2020 which subsumes the Provident Fund and
the Gratuity Act and rules thereunder. The Ministry of Labour and Employment also released draft rules thereunder
on 13 November 2020 and has invited suggestions from stakeholders which are under active consideration by
the Ministry. The Company will evaluate the rules, assess the impact, if any, and account for the same, once the
rules are notified and become effective.

NOTE 44:

The Company has not invoked or implemented resolution plan under the “Resolution Framework for COVID-19
related Stress” as per RBI circular dated 6 August 2020 for any of its borrower accounts.

NOTE 45:

The Company has not invoked or implemented resolution plan under the “RBI Resolution Framework - 2.0:
Resolution of COVID-19 related stress of Individuals and Small Businesses dated 05 May 2021 with reference to
disclosures stated under Format-B prescribed in the Resolution Framework - 1.0.

Pursuant to the RBI circular dated 12 November 2 0 2 1 - “ Prudential norms on Income Recognition, Asset
Classification and Provisioning (IRACP) pertaining to Advances - Clarifications”, on 15 February 2022, the
RBI allowed deferment pertaining to the up gradation of Non Performing accounts till 30 September 2022.
Hence, the Company has opted for such deferment. There is no material impact on Financial Results for period
ended March 31, 2025 due to such revised classification.

NOTE 47:

All the lease agreements are duly executed in favour of the Company for properties where the Company is the lessee.
NOTE 48:

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 March 31, 2025 and March 31, 2024.

NOTE 49:

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 March 31,
2025 and March 31, 2024.

NOTE 50:

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 March 31, 2025 and March 31, 2024.

NOTE 51: REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES
(ROC)

No charges or satisfaction yet to be registered with ROC beyond the statutory period

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 54:

The Company has taken borrowings from banks and financial institutions and utilized them for the specific
purpose for which they were taken as at the Balance sheet date. Unutilized funds as at March 31, 2025 are held
by the Company in the form of short term fund till the time the utilization is made subsequently.

NOTE 55:

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 March 31, 2025 and March 31, 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 March 31, 2025 and
March 31, 2024.

NOTE 56:

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.
Other than the transactions described above-

a. No funds have been advanced or loaned or invested by the Company to or in any other person(s) or
entity(ies) including foreign entities (“Intermediaries”) with the understanding that the Intermediary shall
lend or invest in a party identified by or on behalf of the Company ( Ultimate Beneficiaries);

b. No funds have been received by the Company from any party(s) (Funding Party) with the understanding
that the Company shall whether, directly or indirectly, lend or invest in other persons or entities identified
by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

NOTE 57:

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31,
2025 and March 31, 2024.

NOTE 58:

The accounting software used by the Company to maintain its Books of account have a feature of recording
audit trail (edit log) facility and the same has been operated throughout the year for all transactions recorded in
the software as also in database maintained with respect thereto.

NOTE 59:

Disclosures required by the RBI circular on Implementation of Indian Accounting Standards dated 13 March 2020
including disclosures as required under RBI vide Scale Based Regulation (SBR): A Revised Regulatory Framework
for NBFCs dated 22 October 2021

The following disclosures are in accordance with Master Direction - Non-Banking Financial Company - Housing
Finance Company (Reserve Bank) Directions, 2021 dated February 17, 2021 issued by the Reserve Bank of India.

Regulatory ratios, limits and disclosures are based on Ind AS figures in accordance with RBI circular dated
October 22, 2020 read with RBI circular dated March 13, 2020 relating to Implementation of Ind AS.

(vi) Institutional set-up for liquidity risk management

The Board of Directors of the Company has an overall responsibility and oversight for the management
of all the risks, including liquidity risk, to which the Company is exposed to in the course of conducting
its business. The Board approves the governance structure, policies, strategy and the risk limits for the
management of liquidity risk.

The Board of Directors of the Company has constituted an Asset Liability Committee (ALCO). The main
objective of ALCO is to assist the Board and Risk Management Committee in effective discharge of the
responsibilities of asset-liability management, market risk management, liquidity and interest rate risk
management and also to ensure adherence to risk tolerance/limits set up by the Board. ALCO provides
guidance and directions in terms of interest rate, liquidity, funding sources, and investment of surplus funds.

The Risk Management Committee constituted by the Board of Directors is primarily responsible for the
effective supervision, evaluation, monitoring and review of various aspects and types of risks, including
liquidity risk, faced by the Company.

NOTE 62 DISCLOSURE IN TERMS OF IN ACCORDANCE WITH MASTER DIRECTION - NON¬
BANKING FINANCIAL COMPANY - HOUSING FINANCE COMPANY (RESERVE BANK)

DIRECTIONS, 2021 DATED FEBRUARY 17, 2021 ISSUED BY THE RESERVE BANK OF INDIA
READ WITH RBI CIRCULAR NO. RBI/DNBS/2016-17/49 MASTER DIRECTION DNBS.
PPD.01/66.15.001/2016- 17 ON MONITORING OF FRAUDS IN NBFCS
There were no cases of frauds reported during the Current year & Previous Year.

Note: Loan Portfolio includes gross loans amounting to '' 161.40 lakhs (March 31, 2024: '' 116.82 Lakhs) against which the
Company has taken possession of the properties under Securitisation and Reconstruction of Financial Assets and Enforcement
of Security Interest Act, 2002 and held such properties for disposal. The value of assets possessed against these loans is
'' 307.34 lakhs. (March 31, 2024: '' 167.70 Lakhs).

"Current investment means an investment which is by its nature readily realizable and is intended to be held for not more than
one year from the date on which such investment is made.

NOTE 64:

There are no Micro, Small and Medium Enterprises (MSME) to whom the Company owes dues, which are
outstanding for more than 45 days as at 31-03-2025. This information as required to be disclosed under the
Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties
have been identified on the basis at information available with the Company.

---

Mar 31, 2024

2.5 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation.

When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of

the time value of money and the risks specific to the liability.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets are not recognized in the financial statements. Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Commitments

Commitments are future contractual liabilities, classified and disclosed as follows:

The estimated amount of contracts remaining to be executed on capital account and not provided for

• Uncalled liability on shares;

• Undisbursed commitment relating to loans; and

• Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.

• Pending Capital Commitment.

2.6 REVENUE RECOGNITION

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured and there exists reasonable certainty of its recovery.

a) Interest Income

The main source of revenue for the Company is Income from Housing and Other property

loans. Repayment of housing and property loan is generally by way of Equated Monthly Installments (EMIs) comprising of principal and interest. EMIs generally commence once the entire loan is disbursed. Pending commencement of EMIs, pre-EMI interest is payable every month on the loan that has been disbursed. Interest is calculated on monthly rest on the basis of agreed terms with the borrowers.

I nterest income on housing and property loans and other financial instruments carried at amortized cost is recognized on a time proportion basis taking into account the amount outstanding and the effective interest rate (“EIR”) applicable.

The EIR is the rate that exactly discounts estimated future cash flows of the financial instrument through the expected life of the financial instrument or, where appropriate, a shorter period, to the net carrying amount of the financial instrument. The future cash flows are estimated taking into account all the contractual terms of the instrument.

The calculation of the EIR includes all fees paid or received between parties to the contract that are incremental and directly attributable to the specific lending arrangement, transaction costs, and all other premiums or discounts. For financial assets at Fair Value through Profit or Loss (FVTPL), transaction costs are recognized in profit or loss at initial recognition.

The interest income is calculated by applying the EIR to the gross carrying amount of non-credit impaired financial assets (i.e. at the amortized cost of the financial asset before adjusting for any expected credit loss allowance). For credit-impaired financial assets the interest income is calculated by applying the EIR to the amortized cost of the credit-impaired financial assets [i.e. the gross carrying amount less the allowance for expected credit losses (ECLs)].

Delayed payment interest (penal interest) levied on customers for delay in repayments/ nonpayment of contractual cash flows is recognized on realization.

b) Fee and other charges

Processing fees and other loan related charges are recognized when it is reasonable to expect ultimate collection which is generally at the time of Login/ disbursement of the loan. Fees on delayed EMI/Pre-EMI Interest are recognized on receipt basis, when the ultimate collection is made.

c) Investment Income

Income from interest on deposits and interest bearing securities is recognized on the time proportionate method taking into account the amount outstanding and the rate applicable. The gains/losses on sale of investments are recognized in the Statement of Profit and Loss on trade date.

d) Dividend Income

Dividend income from investments is recognized when the Company''s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of dividend income can be measured reliably).

e) Other Income

Other Income represents income earned from the activities incidental to the business and is recognised when the right to receive the income is established as per the terms of the contract

f) Finance Cost

Finance expenses consist of interest expense on loans and borrowings. Borrowing costs are recognized in the statement of profit and loss using the effective interest method (EIR).

g) Exceptional Items

When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of such items is disclosed separately as Exceptional items.

The company does not have any items of income and expense which categorized as exceptional items during the year 2023-24.

2.7 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.

a) Measurement of Lease Liability

At the time of initial recognition, the Company measures lease liability as present value of all lease payment discounted using the Company''s incremental cost of borrowing rate and directly attributable cost. Subsequently, the lease liability is

(i) increased by interest on lease liability;

(ii) reduce by lease payment made; and

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

b) Measurement of ROU

At the date of commencement of the lease, the Company recognizes a right-of-use asset (ROU) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a lease term of twelve months or less (short-term leases) and low value assets.

For these short-term and low-value assets, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

The ROU assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

2.8 TAXES a) Income Tax

Income tax expense represents the sum of the tax currently payable and deferred tax. Income tax expense comprises current and deferred taxes. Income tax expense is recognized in the Statement of Profit and Loss except when they relate to items that are recognized outside profit or loss (whether in other comprehensive income or directly in equity), in which case tax is also recognized outside profit or loss.

i. Current Tax

The tax currently payable is based on the estimated taxable profit for the year for the Company and is calculated using applicable tax rates and tax laws that have been enacted or substantively enacted. Taxable profit differs from ''profit before tax'' as reported in the Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The current tax is calculated using applicable tax rates that have been enacted or substantively enacted by the end of the reporting period.

ii. Deferred Tax

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss and depreciation carry-forwards and tax credits. Such deferred tax assets and liabilities are computed separately for each taxable entity. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carry-forwards and unused tax credits could be utilized.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

b) Goods and Services Input Tax Credit

Goods and Services tax input credit is accounted for in the books in the period in which the supply of goods or service received is accounted and when there is no uncertainty in availing/ utilizing the credits.

2.9 CASH AND CASH EQUIVALENTS

Cash and cash equivalents includes cash on hand, balance in current account and Balances with banks in deposits accounts with original maturity of less than 3 months. Short term and liquid investments being subject to more than insignificant risk of change in value, are not included as part of cash and cash equivalents.

2.10 SEGMENT REPORTING

The Company is engaged mainly in the business of Housing finance. This in the context of Ind AS 108 - operating segments reporting is considered to constitute one reportable segment.

2.11 EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.

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

2.12 SECURITIES PREMIUM

Securities premium is credited when shares are issued at premium. It can be used to issue bonus shares, to provide for premium on redemption of shares and issue expenses of securities which qualify as equity instruments.

2.13 STATEMENT OF CASH FLOW

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.

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

2.14 STANDARD ISSUED BUT NOT YET EFFECTIVE

No new standards as notified by Ministry of Corporate Affairs ("MCA"), through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules are effective for the current year.

12.1) NATURE OF SECURITY

i) Refinance from National Housing Bank (NHB) and other Term Loans from banks and Financial Institutions are secured by first and exclusively charge on the specific book debts/receivables of the company and irrevocable power of attorney given by the company in favour of Banks/FI''s/NHB for recovery of dues, Lien on specific FDR''s and Personal Guarantee of specific Directors and Third party guarantee.

ii) Redeemable Non convertible debentures were secured by first and exclusive charge on specific assets by way of hypothecation of book debts in favour of debenture trustee (All are redeemed as on March 31, 2024)

iii) Car loans secured against hypothecation of Specific Motor Cars of Company and personal guarantee of specified directors and third party guarantee

iv) The company has not made any default in repayment of instalments due over the reporting year.

v) The Repayment of the borrowing is done in monthly, quarterly, half yearly & annual Instalment as per the sanctioned terms.

vi) All the borrowings are availed from India and not from outside India.

NOTE 15.2 :

Terms/ Rights attached to equity shares

The company has only one class of Equity shares having par value of H10 each. Each holder of equity shares is entitled to one vote per share.

The holders of equity shares are entitled to dividends,if any,proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting.

In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaning assets of the company, after distribution of all preferential amounts.

However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

NOTE 15.4 :

For the period of five years immediately preceding the FY 2023-24

(A) Aggregate number and class of shares allotted as fully paid-up pursuant to contract(s) without payment being received in cash is NIL

(B) During the year 2014-15, pursuant to approval of shareholders at the Extra-Ordinary General Meeting (EOGM) of SRG Housing Finance Limited held on May 12, 2014, the Company allotted 3,232,200 Bonus Equity Shares of H10/- each fully paid up shares in the proportion of 2:5 i.e. two shares for every five shares held.

(C) Aggregate number and class of shares bought back is NIL”

NOTE 15.5 :

The Company has not:

A) issued any securities convertible into equity/preference shares, except 5,00,000 Share Warrants convertible into Equity Shares each carrying a right to subscribe to 1 (one) equity share at an issue price of '' 200/- per equity share (face value of '' 10/- each at a premium of '' 190/-), which may be exercised in one or more tranches during the period commencing from the date of allotment of the warrants i.e. 24.11.2022 until expiry of 18 months from the date of allotment of the warrants out of which 3, 00,000 share warrants were exercised by the allottee and 3,00,000 Equity shares alloted to him pursuant to the covnersion in the month of March 2024.

B) Issued any shares where calls are unpaid.

C) Forfeited any shares.

D) Issued any shares reserved for issue under options and contracts or commitments for sale of shares or divestment.

NOTE 16.1 :

Nature and purpose of reserve

Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

Special Reserve

As per Section 29C of the National Housing Bank Act, 1987, the Company is required to transfer at least 20% of its net profit every year to a reserve before any dividend is declared. For this purpose any Special Reserve created by the Company under Section 36(1) (viii) of the Income Tax Act, 1961 is considered to be an eligible transfer. The Company has transferred an amount of H421.18 Lakhs (Previous year H342 Crores) to Special Reserve in terms of Section 36(1) (viii) of the Income Tax Act, 1961.

General reserve

It is a free reserve which is created by appropriation from profts of the current year and/or undistributed profts of previous years, before declaration of dividend duly complying with any regulations in this regard.

Retained earnings

Retained earnings represents the amount of accumulated earnings of the Company Share Based Payments Reserve

This Reserve relates to stock options granted by the Company to employees under various ESOP Schemes. This Reserve is transferred to Securities Premium Account on exercise of vested options.

NOTE 28. SPECIAL RESERVE:

As per Section 29C of the National Housing Bank Act, 1987, the Company is required to transfer at least 20% of its net profits every year to a reserve before any dividend is declared. For this purpose, any Special Reserve created by the Company under Section 36(1) (viii) of the Income Tax Act, 1961 is considered to be an eligible transfer u/s 29C of the NHB Act, 1987 also. Refer note 16.1.

NOTE 32. EMPLOYEE BENEFIT EXPENSE:

The Company provides for gratuity, a defined benefit plan, to its employees. The Plan provides a lump sum payment to eligible employees, an amount based on the respective employee''s last drawn salary and years of employment with the Company. The Company has employees'' gratuity fund managed by the Life Insurance Corporation of India.

a. Defined Contribution Plan

The company makes contributions to provident fund for qualifying employees to Regional Provident Fund Commissioner under defined contribution plan under the Provident Fund Act.

The company''s contribution to provident fund aggregating H114.34 Lakhs (Previous year H79.90 Lakhs) has been recognized as an expense and included under the head “Contribution to Provident and Other Funds” of Statement of Profit and Loss.

b. Defined Obligation Benefit:

The company provides gratuity to its employees which are defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The details of post-retirement benefits for the employees (including Key Management Personnel) as mentioned hereunder are based on the report as provided by Independent Actuary as mentioned above and relied upon by the Auditors.

Contractual life

ESOP- 2023 scheme - The contractual life (vesting period plus exercise period) range from maximum 2 years - 6 years i.e. vesting period ranging from maximum 2 to 4 years and exercise period of maximum 2 years from the date of each vesting of the option. In case of resignation/ termination of any employee, the exercise period shall be before expiry of exercise period or by last working day, whichever is earlier.

Method of settlement: ESOP 2023 is to be settled through issue of equity shares.

Computation of fair value of options granted- ESOP Scheme 2023

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years

Notes-

• Gratuity is payable as per entity''s scheme as detailed in the report.

• Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI).

• Salary escalation & attrition rate are considered as advised by the entity; they appear to be in line with the industry practice considering promotion and demand & supply of the employees.

• Maturity Analysis of Benefit Payments is undiscounted cash flows considering future salary, attrition & death in respective year for members as mentioned above.

• Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation.

• Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cash flow timing, where weights are derived from the present value of each cash flow to the total present value.

• Any benefit payment and contribution to plan assets is considered to occur end of the year to depict liability and fund movement in the disclosures.

• Value of asset provided by the entity is not audited by us and the same is considered as unaudited fair value of plan asset as on the reporting date.

• In absence of specific communication as regards contribution by the entity, Expected Contribution in the Next Year is considered as the sum of net liability/assets at the end of the current year and current service cost for next year, subject to maximum allowable contribution to the Plan Assets over the next year as per the Income Tax Rules.

Characteristics of defined benefit plan:

The entity has a defined benefit gratuity plan in India (funded). The entity''s defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund. The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy

Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines which mitigate risk.

During the year, there were no plan amendments, curtailments and settlements.

A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by rule 103 of Income Tax Rules, 1962.

NOTE 35. SEGMENT REPORTING:

35.1 Operating Segment: The Company''s main business is to provide loans for purchase, construction, repairs and renovation etc. of residential house. All other activities of the company revolve around the main business. As such, there are no separate reportable segments, as per IND AS 108 “Operating Segment” specified under section 133 of the Companies Act, 2013. Accordingly, the amounts appearing in the financial statements relate to the Company''s single business segment.

35.2 Entity Wide Disclosures: No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the Company''s total revenue in the year ended 31 March 2024 and 31 March 2023.

The Company operates in single geography i.e. India and therefore geographical information is not required to be disclosed separately.

NOTE 36. LEASE DISCLOSURE:

Where the Company is the lessee:

The Company has entered into agreements for taking its office premises under lease/rent agreements. These agreements are for tenures between 11 months and 10 years and majority of the agreements are renewable by mutual consent on mutually agreeable terms, lease rentals have an escalation upto 10%. Leases for which the lease term is less than 12 months have been accounted as short term leases.

a. Fair Value Hierarchy:

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are

observable, the instrument is included in level 2, , this level of hierarchy includes financial assets, measured using inputs other than quoted prices included within Level 1 that are observable for the asset, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3: This level of hierarchy includes financial instruments measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data..

There were no transfers between levels 1, 2 and 3 during the year.

The Company''s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

b. Valuation technique used to determine fair value

The fair value of a financial instrument on initial recognition is normally the transaction price (fair value of the consideration given or received). Subsequent to initial recognition, the Company determines the fair value of financial instruments that are quoted in active markets using the quoted prices and using valuation techniques for other instruments. Valuation techniques include discounted cash flow method, market comparable method, recent transactions happened in the Company and other valuation models. 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.

The Fair Value of the financial assets and financial liabilities are considered at the amount, at which the instrument could be exchanged in current transaction between willing parties, other than in forced or liquidation sale.

Other Financial Assets and Liabilities

With respect to Bank Balances and Cash and Cash Equivalents (Refer Note 3 (a) and (b)), Other Financial Assets (Refer Note 6), Trade Payables (Refer Note 11) and Other Financial Liabilities (Refer Note 13), the carrying value approximates the fair value.

NOTE 38. FINACIAL RISK MANANGEMENT:

The Company is exposed to certain financial risks namely credit risk, liquidity risk and market risk i.e. interest risk, foreign currency risk and price risk. The Company''s primary focus is to achieve better predictability of financial markets and minimise potential adverse effects on its financial performance by effectively managing the risks on its financial assets and liabilities.

The principal objective in Company''s risk management processes is to measure and monitor the various risks associated with the Company and to follow policies and procedures to address such risks. The Company''s risk management framework is driven by its Board and its subcommittees including the Audit Committee, the Asset Liability Management Committee and the Risk Management Committee. The Company gives due importance to prudent lending practices and have implemented suitable measures for risk mitigation, which include verification of credit history from credit information bureaus, personal verification of a customer''s business and residence, valuation of collateral, technical and legal verifications, conservative loan to value, and required term cover for insurance

a. Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities - borrowing, trade payables and other financial liabilities.

The Company''s Asset Liability Committee (ALCO) monitors asset liability mismatches to ensure there are no imbalances or excessive concentrations on either side of the balance sheet.

The Company continuously monitors liquidity in the market; and as a part of its ALCO strategy, it maintains a liquidity buffer managed by an active treasury desk to reduce this risk.

The Company maintains a judicious mix of borrowings from banks and other Financial Institutions, including NHB. The Company continues to diversify its sources of borrowings with an emphasis on longer tenor borrowings, which generally matches with the different types of Loan Facilities offered by the company. This strategy of balancing varied sources of funds and long tenor borrowings has helped the Company maintain a healthy asset liability position.

The tables below summarizes the maturity profile of the undiscounted cash flows of the Company''s financial liabilities.

b. Market Risk

Market risk is the risk that the fair value of future cash flow of financial instruments will fluctuate due

to changes in the market variables such as interest rates, foreign exchange rates and equity prices.

The Company does not have any exposure to foreign exchange rate and equity price risk

(i) Foreign currency risk - Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign currency rates.

There was no foreign currency exposure as at 31 March 2024 and 31 March 2023.

(ii) Interest Rate Risk Exposure- The Company is subject to interest rate risk, since the rates of loans and borrowings might fluctuate over the tenure of instrument. Interest rates are highly sensitive to many factors beyond control, including the monetary policies of the Reserve Bank of India, deregulation of the financial sector in India, domestic and international economic and political conditions, inflation and other factors. In order to manage interest rate risk, the Company seeks to optimize borrowing profile between short-term and long-term loans. The liabilities are categorized into various time buckets based on their maturities and Asset Liability Management Committee supervise an interest rate sensitivity report periodically for assessment of interest rate risks

(iii) Price Risk Exposure- The Company''s exposure to price risk arises from investments held by the Company and classified in the balance sheet at fair value through profit or loss. The Company''s exposure to Mutual Funds is not significant and hence the Company''s exposure to price risk is insignificant.

c. Credit Risk Management

Credit risk is the risk that the Company will incur a loss because the counterparty might fail to discharge their contractual obligations. The Company has a comprehensive framework for monitoring credit quality of its retail and other loans primarily based on number of days past due.

The credit risk is governed by the Credit Policy approved by the Board of Directors. The Policy outlines the type of products that can be offered, customer categories, the targeted customer profile and the credit approval process and limits.

The Company measures, monitors and manages credit risk at an individual borrower level and at the group exposure level for other borrowers. The credit risk for retail borrowers is being managed at portfolio level for both Home loans and Mortgage Loans. The Company has a structured and standardized credit approval process, which includes a well-established procedure of comprehensive credit appraisal. The Risk Management Policy addresses the recognition, measurement, monitoring and reporting of the Credit risk. The policy is amended periodically to ensure compliance with the guidelines of the RBI as well as other regulatory bodies

Credit Risk Methodology Housing and Other Property Loans:

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

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

The various process controls such as KYC check, Credit Bureau Report analysis are undertaken. In addition to due diligence process including visits to offices and homes in the case of loans made to retail borrowers done by External agencies such as field investigation agencies, company''s staff also performs comprehensive due diligence process including visits to customer''s business and residence premises.

Company analyses the portfolio performance of each product segment regularly, and use these as inputs in revising the product programs, target market definitions and credit assessment criteria to meet the twin objectives of combining volume growth and maintenance of asset quality.

The loans are secured by the mortgage of the borrowers'' property and third party guarantee.

Portfolio quality, credit limits, collateral quality and credit exposure limits are regularly monitored at various levels.

The Company regularly reviews the credit quality of the portfolio. A summary of the reviews carried out is submitted to the concern teams.

Collateral and other credit enhancements- The Company holds collateral and other credit enhancements to cover its credit risk associated with its Loans, credit risk associated are mitigated because the same are secured against the collateral.

Impairment assessment (Expected Credit Loss)

The reference below show where the Company''s impairment assessment and measurement approach is set out in these notes.

Definition of Default

The Company considers a financial instrument as defaulted and considers it as Stage 3 (credit-impaired) for expected credit loss (ECL) calculations, when the assets become equal to or more than 90 days past due on its contractual payments. These assets continue to be classified as Stage 3 till the assets become standard, in accordance with RBI guidelines and the ECL Policy.

Exposure at Default (EAD) The exposure at default (EAD) represents the gross carrying amount of the financial instruments subject to the impairment calculation, addressing both the client''s ability to increase its exposure while approaching default and potential early repayments too.

To calculate the EAD for a Stage 1 loan, the Company assesses the possible default events within 12 months for the calculation of the 12 months ECL. For Stage 2 and Stage 3 financial assets, the exposure at default is considered for events over the lifetime of the instruments.

Probability of Default (PD) represents the likelihood of default over a defined time horizon.

Loss Given Default (LGD) LGD has been calculated by taking into account the recovery experience across the Company''s loan accounts post default. The recoveries are tracked and discounted to the date of default using the interest rate.

Delinquency buckets have been considered as the basis for the staging of all loans with for FY 24:

• 0-30 days past due loans classified as Stage 1

• 31- 89 days past due loans classified as Stage 2

• 90 days or above past due loans classified as Stage 3.

Whereas delinquency buckets have been considered as the basis for the staging of all loans with for FY 23:

• 0-60 days past due loans classified as Stage 1

• 61- 89 days past due loans classified as Stage 2

• 90 days or above past due loans classified as Stage 3.

For individual and other loans vintage analysis has been used to create PD terms structure which incorporates both 12 months PD for Stage 1 loans and life time PD for stage 2 and 3 loans. The vintage analysis captures a vintage default experience across a particular portfolio by tracking the yearly slippages from advances originating in a particular year. The vintage slippage experience/default rate is then used to build the PD term structure. This methodology has been used to create the LGD vintage which takes into account the recovery experience across accounts of a particular portfolio post default. The recoveries are tracked and discounted to the date of default using the interest rate.

Significant increase in credit risk: The Company continuously monitors all assets subject to ECL. In order to determine whether an instrument or a portfolio of instruments is subject to 12 months ECL or Lifetime ECL, the Company assesses whether there has been a significant increase in credit risk since initial recognition. The Company considers an exposure to have significantly increased in credit risk when contractual payments are more than 30 days past due. When estimating ECLs on a collective basis for a group of similar assets, the Company applies the same principles for assessing whether there has been a significant increase in credit risk since initial recognition.

Grouping financial assets measured on a collective basis: As explained above, the Company calculates ECL on a collective basis on the following asset classes:

- Housing Loan

- Property Loan Risk assessment model

The Company has designed and operates its risk assessment model that factors in both quantitative as well as qualitative information on the loans and the borrowers. The model uses historical empirical data to arrive at factors that are indicative of future credit risk and segments the portfolio on the basis of combinations of these parameters into smaller homogenous portfolios from the perspective of credit behaviour.

Collateral

The Company holds collateral to mitigate credit risk associated with financial assets. The main types of collateral majorly include residential properties. The collateral presented relates to instruments that are measured at amortised cost.

Assets possessed under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

Loan Portfolio includes gross loans amounting to H116.62 lakhs (31 March 2023: H137 Lakhs) against which the Company has taken possession of the properties under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and held such properties for disposal. The value of assets possessed against these loans is H167.70 lakhs. (31 March 2023: H233.08 Lakhs).

d. Regulatory Risk

The Company requires certain statutory and regulatory approvals for conducting business and failure to obtain retain or renew these approvals in a timely manner, may adversely affect operations. Any change in laws or regulations made by the government or a regulatory body that governs the business of the Company may increase the costs of operating the business, reduce the attractiveness of investment and / or change the competitive landscape.

NOTE 39. MATURITY ANALYSIS OF ASSETS AND LIABILITIES

The table below shows an analysis of assets and liabilities analyzed according to when they are expected to be recovered or settled. With regard to loans and advances to customers, the Company uses the same basis of expected repayment behavior as used for estimating the EIR. Issued debt reflects the contractual coupon amortizations.

NOTE 40. CAPITAL MANAGEMENT

The Company''s capital management strategy is to effectively determine, raise and deploy capital to cover risk inherent in business and meeting the capital adequacy requirements of the Reserve Bank of India (RBI). The same is done through a mix of either equity and / or combination of short term / long term debt as may be appropriate. The Company determines the amount of capital required on the basis of operations and capital expenditure. The adequacy of the Company''s capital is monitored using, among other measures, the regulations issued by the RBI. The capital structure is monitored on the basis of net debt to equity and maturity profile of overall debt portfolio. The Company''s policy is in line with Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 which currently permits HFCs to borrow up to 12 times of their net owned funds (“NOF”). Refer NOTE for Capital to risk-weighted assets ratio (CRAR).

The Company has complied in full with all its externally imposed capital requirements over the reported periods.

The Company has issued and allotted 5,00,000 share warrants on private placement basis to promoter and non promoter investor out of which 3,00,000 warrants were converted into equity shares of the Company in the month of March 2024 and 2,00,000 warrants will be converted into Equity Shares by May 24, 2024.

a. Risk management

The Company''s objectives when managing capital are to :

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

• Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio: Net debt (total borrowings net of cash and cash equivalents) divided by Total ''equity'' (as shown in the balance sheet).

NOTE 41. There are no indications which reflects that any of the assets of the company had got impaired from its potential use and therefore no impairment loss was required to be accounted in the current year as per Indian Accounting Standard on ''Impairment of Assets'' (Ind AS 36).

NOTE 42. The Company does not have any exposure in foreign currency at the year end.

NOTE 43. The Indian Parliament has approved the Code on Social Security, 2020 which subsumes the Provident Fund and the Gratuity Act and rules thereunder. The Ministry of Labour and Employment also released draft rules thereunder on 13 November 2020 and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will evaluate the rules, assess the impact, if any, and account for the same, once the rules are notified and become effective.

NOTE 44. The Company has not invoked or implemented resolution plan under the “Resolution Framework for COVID-19 related Stress” as per RBI circular dated 6 August 2020 for any of its borrower accounts.

NOTE 45. The Company has not invoked or implemented resolution plan under the “RBI Resolution Framework - 2.0: Resolution of COVID-19 related stress of Individuals and Small Businesses dated 05 May 2021 with reference to disclosures stated under Format-B prescribed in the Resolution Framework - 1.0.

NOTE 46. Pursuant to the RBI circular dated 12 November 2 0 2 1 - “ Prudential norms on Income Recognition, Asset Classification and Provisioning (IRACP) pertaining to Advances - Clarifications”, on 15 February 2022, the RBI allowed deferment pertaining to the up gradation of Non Performing accounts till 30 September 2022. Hence, the Company has opted for such deferment. There is no material impact on Financial Results for period ended March 31, 2024 due to such revised classification.

NOTE 47. All the lease agreements are duly executed in favour of the Company for properties where the Company is the lessee.

NOTE 48. 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 and 31 March 2023.

NOTE 49. 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 and 31 March 2023.

NOTE 50. 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 and 31 March 2023.

NOTE 51. REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

No charges or satisfaction yet to be registered with ROC beyond the statutory period

NOTE 53. 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 54. The Company has taken borrowings from banks and financial institutions and utilized them for the specific purpose for which they were taken as at the Balance sheet date. Unutilized funds as at 31 March 2024 are held by the Company in the form of short term fund till the time the utilization is made subsequently.

NOTE 55. 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 and 31 March 2023, 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 and 31 March 2023.

NOTE 56. 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. Other than the transactions described above-

a. No funds have been advanced or loaned or invested by the Company to or in any other person(s) or entity(ies) including foreign entities (“Intermediaries”) with the understanding that the Intermediary shall lend or invest in a party identified by or on behalf of the Company (Ultimate Beneficiaries);

b. No funds have been received by the Company from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly, lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

NOTE 57.The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2024 and 31 March 2023.

NOTE 58.The Company has used an accounting software for maintaining its books of account for the year ended 31 March 2024 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, there is not any instance of the audit trail feature being tampered with. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from 01 April 2023, reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the year ended 31 March 2024.

NOTE 59. DISCLOSURES REQUIRED BY THE RBI CIRCULAR ON IMPLEMENTATION OF INDIAN ACCOUNTING STANDARDS DATED 13 MARCH 2020 INCLUDING DISCLOSURES AS REQUIRED UNDER RBI VIDE SCALE BASED REGULATION (SBR): A REVISED REGULATORY FRAMEWORK FOR NBFCS DATED 22 OCTOBER 2021

The following disclosures are in accordance with Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 dated February 17, 2021 issued by the Reserve Bank of India.

Regulatory ratios, limits and disclosures are based on Ind AS figures in accordance with RBI circular dated October 22, 2020 read with RBI circular dated March 13, 2020 relating to Implementation of Ind AS.

vi) Institutional set-up for liquidity risk management

The Board of Directors of the Company has an overall responsibility and oversight for the management of all the risks, including liquidity risk, to which the Company is exposed to in the course of conducting its business. The Board approves the governance structure, policies, strategy and the risk limits for the management of liquidity risk.

The Board of Directors of the Company has constituted an Asset Liability Committee (ALCO). The main objective of ALCO is to assist the Board and Risk Management Committee in effective discharge of the responsibilities of asset-liability management, market risk management, liquidity and interest rate risk management and also to ensure adherence to risk tolerance/limits set up by the Board. ALCO provides guidance and directions in terms of interest rate, liquidity, funding sources, and investment of surplus funds.

The Risk Management Committee constituted by the Board of Directors is primarily responsible for the effective supervision, evaluation, monitoring and review of various aspects and types of risks, including liquidity risk, faced by the Company.

NOTE 62. DISCLOSURE IN TERMS OF IN ACCORDANCE WITH MASTER DIRECTION - NONBANKING FINANCIAL COMPANY - HOUSING FINANCE COMPANY (RESERVE BANK) DIRECTIONS, 2021 DATED FEBRUARY 17, 2021 ISSUED BY THE RESERVE BANK OF INDIA READ WITH RBI CIRCULAR NO. RBI/DNBS/2016-17/49 MASTER DIRECTION DNBS. PPD.01/66.15.001/2016- 17 ON MONITORING OF FRAUDS IN NBFCS

There were no cases of frauds reported during the Current year & Previous Year.

NOTE 63. BALANCE SHEET DISCLOSURES AS REQUIRED UNDER MASTER DIRECTION - NONBANKING FINANCIAL COMPANY - HOUSING FINANCE COMPANY (RESERVE BANK) DIRECTIONS, 2021 DATED FEBRUARY 17, 2021 ISSUED BY THE RESERVE BANK OF INDIA.

Schedule to the Balance Sheet

NOTE 64. There are no Micro, Small and Medium Enterprises (MSME) to whom the Company owes dues, which are outstanding for more than 45 days as at 31-03-2024. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis at information available with the Company.

(Refer Note 11)

NOTE 65. There are no amounts to be reflected under payable to Investor Protection Fund.

NOTE 66. In the opinion of management the Financial Assets are approximately of the value as stated if realized in the ordinary course of business unless otherwise stated. The provisions for all liabilities are adequate and not in excess / shortage of the amount reasonably necessary.

NOTE 67. During the year, there was one employee, Mr. Vinod K. Jain, Managing Director employed throughout the year who was in receipt of remuneration of H 319.49 lakhs (PY H 294.30 lakhs) per annum.

NOTE 68. Figu res for the previous year have been regrouped/ re-arranged wherever considered necessary to confirm to the figures presented in the current year. There have been no events after the reporting date that requires disclosure in these financial statements.

NOTE 69. The Company has complied with all the prudential norms prescribed by Reserve bank of India on income recognition, accounting standard

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Mar 31, 2018

Terms/Rights attached to Equity Shares

The Company has one class of share referred to as equity shares having at par value of Rs. 10 each. Each shareholder is entitled to one vote per share held.

1.1) Nature of Security

i) Refinance from National Housing Bank (NHB) and other Term Loans are secured by first and exclusive charge on the specific book debts, receivables of the Company and irrevocable power of attorney given by the Company in favour of Banks/ FIs/NHB for recovery of dues, Lien on specific FDR’s and Personal Guarantee of Mr. Vinod Kumar Jain MD, Ms. Seema Jain, Director and Third party guarantee of Mr. G. L. Jain and Mr. Rajesh Jain.

ii) Redeemable Non Convertible Debentures are secured by first and exclusive charge on specific assets by way of hypothecation of book debts and also by way of mortgage of specific immovable property situated at Chennai in favour of Debenture Trustee.

Loans repayable on demand from Bank are secured by first and exclusive charge on the specific book debts, receivables of the company and irrevocable power of attorney given by the Company in favour of Bank for recovery of dues, Lien on specific FDR’s and Personal Guarantee of Mr. Vinod Kumar Jain MD, Ms. Seema Jain, Director and Third party guarantee of Mr. G.L. Jain and Mr. Rajesh Jain.

2. TRADE PAYABLES:

Trade Payables of Rs. 56.03 Lakhs (Previous Year Rs. 79.67 Lakhs) includes f NIL (Previous Year f NIL) payable to suppliers registered under the Micro, Small and Medium Enterprises and Development Act, 2006 which has been determined to the extent such parties have been identified on the basis of information available with the Company. No interest has been paid/ payable by Company during the year to the suppliers covered under Micro, Small and Medium Enterprises and Development Act, 2006.

3. In the opinion of management the current assets and advances are approximately of the value as stated if realized in the ordinary course of business unless otherwise stated. The provisions for all liabilities are adequate and not in excess / shortage of the amount reasonably necessary.

4. During the year, there was no employee employed throughout the year who was in receipt of remuneration of Rs. 1.02 Crores or more per annum or Rs. 8.50 Lakhs or more per month, if employed for the part of the year.

5. All the balances of Trade Payables, Loans and Advances are subject to confirmation.

6. Previous year figures which were audited by the predecessor auditors have been regrouped / reclassified wherever necessary to correspond with current year’s classification disclosure.

7. The Company have complied all the prudential norms prescribed by National Housing Bank on income recognition, accounting standards, assets classification, provisions for bad & doubtful debts, capital adequacy and credit/investment concentration.

8. The Company does not have any exposure in foreign currency at the year end.

9. The Company is engaged in the business of providing loans for purchase, construction, repairs and renovation etc. of houses to Individuals, Corporate Bodies, Builders and Co-operative Housing Societies and or loan against properties and has its operations within India. Accordingly, there are no separate reportable segments, as per the Accounting Standard on ‘Segment Reporting’ (AS 17) issued by The Institute of Chartered Accountants of India notified under The Companies (Accounting Standards) Amendment Rules, 2011.

10. As required by National Housing Bank’s Notification no. NHB.HFC.CG-DIR.1/MD&CEO/2016 dated February 9, 2017 and in terms of the Circular no. NHB/ND/DRS/Pol-No. 35/2010-11 dated October 11, 2010, the following additional disclosures are given as under:

10.1 During the year, Company has not entered into any (a) derivative transaction (b) securitisation and assignment transaction (c) financing of Parent Company product and (d) finance of any unsecured advances against intangible securities such as rights, licenses, authority etc. as collateral security.

10.2 The Company has not exceeded limit prescribed by National Housing Bank for Single Borrower Limit (SGL) and Group Borrower Limit (GBL).

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

10.4 No penalties have been imposed by NHB or any other regulator on the company during the year.

10.5 RELATED PARTY DISCLOSURES:

Disclosures as required by the Accounting Standard 18 of ICAI in respect of Related Party Transactions for the year ended on 31/03/2018:-

The related parties of the Company with whom the Company had carried out transactions are as follows.

Vinod Kumar Jain, Managing Director Seema Jain, Director Vinod Jain HUF

Archis Jain (Relative of Director)

The nature and volume of transactions with the above related parties during the year were as follows: Director’s Remuneration Rs. 84.00 Lakhs (Previous year Rs. 84.00 Lakhs)

Office Rent Rs. 26.56 Lakhs (Previous year Rs. 24.14 Lakhs)

Rent Deposit Rs. 2.45 Lakhs (Previous year f NIL)

Salary Rs. 15.40 Lakhs (Previous year Rs. 12.00 Lakhs)

10.6 During the financial year 2017-18, no payment is made to Non Executive Directors.

10.7 During the year, a) no prior period items occurred which has impact on profit and loss account; b) there was no change in any accounting policy; c) there were no circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties; d) there was no withdrawal from Reserve fund; e) Company has not accepted public deposits, f) Company does not consists of any Overseas Assets; and g) Company does not consists Off-balance Sheet SPVs sponsored (which are required to be consolidated as per Accounting Norms).

10.8 The Company has no subsidiary company. Hence, requirement of consolidated financial statements is not applicable to the company.

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Mar 31, 2016

* As per section 29C of the NHB Act, 1987, the company is required to transfer at least 20% of its net profit every year to a reserve before any dividend is declared. For this purpose any Special Reserve created by the Company under section 36 (1) (VIII) of The income Tax Act,1961 is considered to be an eligible transfer. The Company has transferred an amount of Rs.37.50 Lacs (Previous Year Rs. 31.00 Lacs) to special reserve in terms of Section 36 (1) (Viii) of the income Tax Act, 1961. The Company doesn''t anticipate any withdrawal from special reserve in foreseeable future.

(Secured against Hypothecation of Advances (Book-Debts) an, irrevocable power of attorney in favor of bank to create mortgage / hypothecation charge in favor of bank over the specific assets and to collect the book debts directly from individual borrowers in the event of default by the company and personal guarantees of the director)

Term Loan-1 Rs 400.00 Lacs -Repayable in 54 months @ Rs.7.50 lacs for 53 months and last installment being 2.50 lacs. Outstanding at the year end Rs. 101.10 lacs

Term Loan-2 Rs 1250.00 Lacs -Repayable in 54 months @ Rs.23 lacs for 53 months and last installment being 31 lacs. Outstanding at the year end Rs.707.52 lacs

Term Loan-3 Sanction Rs. 3000.00 Lacs ,Repayable in 60 months @ Rs 50.00 lacs PM w.e.f. May-2016 , Loan Outstanding at the year end Rs.3031.72

(Secured against Hypothecation of Advances (Book-Debts) an, irrevocable power of attorney in favor of bank to create mortgage / hypothecation charge in favor of bank over the specific assets and to collect the book debts directly from individual borrowers in the event of default by the company and personal guarantees of the director)

1. RELATED PARTY DISCLOSURES : Disclosures as required by the accounting standard 18 of ICAI in respect of related party transactions for the year ended on 31/03/2016:-

The related parties of the Company with whom the Company had carried out transactions are as follows.

Mr. Vinod K Jain, Managing Director

Seema Jain, Director Vinod Jain HUF

Archis Jain (Relative of Director)

S R G Securities Finance Limited (Associated / Related Entity)

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

Directors Remuneration- (Salary) Rs. 79.20 Lakhs (Previous year Rs.35.10 Lakhs)

Office Rent Rs. 14.16 Lakhs (Previous year Rs.2.78 Lakhs)

Salary Rs. 6.00 Lakhs (Previous year Rs.0.00 Lakhs)

Investment in shares Rs. 41.95 Lakhs (Previous year Rs.0.00 Lakhs)

2. In the opinion of management the current assets and advances are approximately of the value as stated if realized in the ordinary course of business unless otherwise stated. The provisions for all liabilities are adequate and not in excess / shortage of the amount reasonably necessary.

3. During the year one employee (Managing Director) was getting salary more than Rs. 60, 00,000/-p.a.

4. All the balances of Sundry Creditors, Loans and Advances are subject to confirmation.

5. The previous year figure have been regrouped / reclassified, wherever necessary to confirm to the current year presentation.

6. The Company have complied all the prudential norms prescribed by National Housing Bank on income recognition , accounting standards, assets classification , provisions for Bad & doubtful debts , capital adequacy and credit / investment Concentration .

7. The company does not have any exposure in foreign currency at the year end.

8. The Company is engaged in the business of providing loans for purchase, construction, repairs and renovation. etc. of houses to Individuals, Corporate Bodies, Builders and Co-operative Housing Societies and or loan against properties and has its operations within India. Accordingly, there are no separate reportable segments, as per the Accounting Standard on ''Segment Reporting'' (AS 17) issued by the Institute of Chartered Accountants of India / notified under the Companies (Accounting Standards) Amendment Rules, 2011.

9. National Housing Bank (NHB) vide its circular no NHB(ND)DRS/Policy circular 62/2014 dated 27^th May 2014 directed Housing Finance Companies to provide for deferred tax liability in respect of the balance in the Special reserve created under section 36(i)(viii) of the Income Tax Act,1961 further NHB vide its policy circular dated 22^nd August 2014, has clarified that such contingent deferred tax liability in respect of opening balance in the Special Reserve as at 1^st April,2014 may be created by adjusting the opening reserves of the Company over a period of three years . Accordingly, Company has adjusted its opening general reserve as at 1^st April, 2015 with an amount of Rs.4.24 Lakhs as contingent deferred tax liability and the unamortized amount against the same is Rs.8.48 Lakhs.

The contingent deferred tax liability of Rs 8.74 Lakhs in respect of the amount appropriated to Special Reserve during the year ended on 31^st March, 2016 has been charged to Statement of Profit & Loss and deferred tax liability on Special reserve created under section 36(i)(viii) of the Income Tax Act,1961 has beer created as per NHB Direction. For comparability, DTL charged to statement of Profit & Loss has been separately disclosed in the above a/c.

10. As required by the revised guidelines dated 11^th October, 2010 by NHB read with additional requirements/guidelines with reference to the interpretation of various terms/ classifications, the following additional disclosures are given as under :

11. CAPITAL TO RISK ASSETS RATIO (CRAR)

12.In terms of requirement of NHB''s Circular No. NHB(ND)/DRS/Pol.Circular.61/2013-14 dated April 7,2014 following information on Reserve Fund under Section 29C of the NHB Act,1987 is provided

13. Notes on Financial statements lto32 are annexed and forming part of the Balance Sheet and Profit & Loss.

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Mar 31, 2015

1 Related Party Disclosures : Disclosures as required by the accounting standard 18 of ICAI in re- spect of related party transactions for the year ended on 31/03/2015 :-

The related parties of the Company with whom the Company had carried out transactions are as follows.

Mr. Vinod K Jain, Managing Director Vinod Jain HUF

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

Directors Remuneration- (Salary) Rs. 35.10 Lakh (Previous year Rs 25.50 Lakh)

Office Rent Rs. 2.78 Lakh (Previous year Rs 2.25 Lakh)

2 In the opinion of management the current assets and advances are approximately of the value as stated. If realized in the ordinary course of business unless otherwise stated. The provisions for all liabilities are adequate and not in excess / shortage of the amount reasonably necessary.

3 None of the employees were getting more than Rs. 60,00,000/-p.a. or 5,00,000/p.m. during the year.

4 All the balances of Sundry Creditors, Loans and Advances are subject to confirmation.

5 The previous year figure have been regrouped / reclassified, wherever necessary to confirm to the current year presentation.

6 The Company have complied all the prudential norms prescribed by National Housing Bank on income recognition , accounting standards, assets classification , provisions for Bad & doubtful debts , capital adequacy and credit / investment Concentration .

7 The company does not have any exposure in foreign currency at the year end.

8 The Company is engaged in the business of providing loans for purchase, construction, repairs and renovation. etc. of houses to Individuals, Corporate Bodies, Builders and Co-operative Housing Societies and or loan against properties and has its operations within India. Accordingly, there are no separate reportable segments, as per the Accounting Standard on 'Segment Reporting' (AS 17) issued by the Institute of Chartered Accountants of India / notified under the Companies (Accounting Standards) Amendment Rules, 2011.

9 As per the provisions of new Companies Act, 2013 ( Act), the Company has applied the new rates of depreciation based upon the useful life of fixed assets specified in Part C of schedule II of the Act.

During the Current year , the Company has revised remaining useful lives of certain fixed as speci- fied in Part C of schedule II of the Act, accordingly, the carrying value of fixed assets as on 1st April,2014 has been depreciated over the revised remaining useful lives. As a result of this change, the net depreciation charge for the year ended on 31st March, 2015 is higher by Rs.3.25 Lakh as compared to provisions if made under earlier companies Act. Further , an amount of Rs.0.28 Lakh representing the carrying value of assets , whose remaining useful life is NIL, as at 1st April,2014 has been charged to opening balance of retained earnings as per the transitional provision pre- scribed in note 7(b) of part c Schedule II of the Companies Act, 2013.

10. National Housing Bank (NHB) vide its circular no NHB(ND)DRS/Policy circular 62/2014 dated 27th May 2014 directed Housing Finance Companies to provide for deferred tax liability in respect of the balance in the Special reserve created under section 36(i)(viii) of the Income Tax Act,1961 further NHB vide its pol- icy circular dated 22nd August 2014, has clarified that such contingent deferred tax liability in respect of opening balance in the Special Reserve as at 1st April,2014 may be created by adjusting the opening re- serves of the Company over a period of three years . Accordingly, Company has adjusted its opening gen- eral reserve as at 1st April, 2014 with an amount of Rs.4.24 Lakhs as contingent deferred tax liability and the unamortized amount against the same is Rs.12.72 Lakhs.

The contingent deferred tax liability of Rs 6.97 Lacs in respect of the amount appropriated to Special Re- serve during the year ended on 31st March, 2015 has been charged to Statement of Profit & Loss and de- ferred tax liability on Special reserve created under section 36(i)(viii) of the Income Tax Act,1961 has been created as per NHB Direction. For comparability, DTL charged to statement of Profit & Loss has been separately disclosed in the above a/c.

11. Notes on Financial statements 1to32 are annexed and forming part of the Balance Sheet and Profit & Loss account.

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Mar 31, 2014

1. RESERVE AND SURPLUS

* As per section 29C of the NHB Act, 1987, the company is required to transfer at least 20% of its net profit every year to a reserve before any dividend is declared.For this purpose any Special Reserve created by the Company under section 36 (1] (VIII] of The income Tax Act,1961 is considered to be an elegible transfer. The Company has transferred an amount of Rs.24.00 Lacs (Previous Year Rs. 12.70 Lacs] to special reserve in terms of Section 36 (1] (Viii] of the the income Tax Act, 1961. The Company doesn''t anticipate any withdrawl from special reserve in forseeable future.

2. LONG TERM BORROWINGS :

(Secured against Hypothecation of Advances (Book-Debts] an, irrevocable power of attorney in favor of bank to create mortgage / hypothecation charge in favor of bank over the specific assets and to collect the book debts directly from individual borrowers in the event of default by the company and personal guarantee of the director] Term Loan-1 Rs 400.00 Lacs -Repayable in 54 months @ Rs.7.50 lacs for 53 months and last installment being 2.50 lacs. Outstanding at the year end Rs. 290.70 lacs Term Loan-2 Rs 1250.00 Lacs -Repayable in 54 months @ Rs.23 lacs for 53 months and last installment being 31 lacs. Outstanding at the vear end Rs.1261.58 lacs.

3. SHORT TERM BORROWINGS :

(Secured against Hypothecation of Advances (Book-Debts] an, irrevocable power of attorney in favor of bank to create mortgage / hypothecation charge in favor of bank over the specific assets and to collect the book debts directly from individual borrowers in the event of default by the company and personal guarantee of the director]

4. Related Party Disclosures : Disclosures as required by the accounting standard 18 of ICAI in respect of related party transactions for the year ended on 31/03/2014:-

Key Managerial Personnel (KMP) on the Board Mr. Vinod K Jain, Managing Director

Particulars of Related Party Transactions:-

Directors Remuneration- (Salary] Rs. 25.50 Lakh (Previous year Rs 13.00 Lakh)

Office Rent Rs. 2.25Lakh (Previous year Rs2.05 Lakh)

5. In the opinion of management the current assets and advances are approximately of the value as stated. If realized in the ordinary course of business unless otherwise stated. The provisions for all liabilities are adequate and not in excess/shortage of the amount reasonably necessary.

6. None of the employees were getting more than Rs. 60, 00,000/-p.a. or 5, 00,000/p.m. during the year.

7. All the balances of Sundry Creditors, Loans and Advances are subject to confirmation.

8. The previous year figure have been regrouped/reclassified, wherever necessary to confirm to the current year presentation.

9. The Company have complied all the prudential norms prescribed by National Housing Bank on income recognition , accounting standards, assets classification , provisions for Bad & doubtful debts , capital adequacy and credit/ investment Concentration.

10. The Company is engaged in the business of providing loans for purchase, construction, repairs and renovation, etc. of houses to Individuals, Corporate Bodies, Builders and Co-operative Housing Societies and or loan against properties and has its operations within India. Accordingly, there are no separate reportable segments, as per the Accounting Standard on ''Segment Reporting'' (AS 17] issued by the Institute of Chartered Accountants of India/notified under the Companies (Accounting Standards] Amendment Rules, 2011.

11. NHB vide its letter dated 09.04.2014 has levied under section 52A of the National Housing Bank Act,1987 a penalty of Rs 5000/- ( Rupees Five thousand], which has been paid by the company, in relation to section 29C of the National Housing Bank Act 1987 on the company for the year 2012-13.

12. As required by the revised guidelines dated 11th October, 2010 by NHB read with additional requirements/guidelines with reference to the interpretation of various terms/ classifications.

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Mar 31, 2013

1. In the opinion of management the current assets and advances are approximately of the value as stated. If realized in the ordinary course of business unless otherwise stated. The provisions for all liabilities are adequate and not in excess / shortage of the amount re asonably necessary.

2. None of the employees were getting more than Rs. 60, 00,000/ -p.a. or 5, 00,000/p.m. during the year.

3. All the balances of Sundry Creditors, Loans and Advances are subject to confirmation.

4. The previous year figure have been regrouped / reclassified, wherever necessary to confirm to the current year presentation.

5. The Company have complied all the prudential norms prescribed by National Housing Bank on income recognition, accounting standards, assets classificat ion, provisions for Bad & doubtful debts, capital adequacy and credit / investment Concentration.