Accounting Policies of Baid Finserv Ltd. Company

Mar 31, 2025

) Summary of significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these
financial statements. These policies have been consistently applied to all the years presented,
unless otherwise stated.

8.1) INCOME

i) Interest income

The Company recognizes interest income using Effective Interest Rate (EIR) on all financial assets
subsequently measured at amortized cost or fair value through other comprehensive income
(FVOCI). EIR is calculated by considering all costs and incomes attributable to acquisition of a
financial asset or an assumption of a financial liability and it represents a rate that exactly
discounts estimated future cash payments/receipts through the expected life of the financial
asset/financial liability to the gross carrying amount of a financial asset or to the amortized cost
of a financial liability.

ii) Dividend income

Dividend income on equity shares is recognized when the Company''s right to receive the
payment is established, which is generally when shareholders approve the dividend.

iii) Other revenue from operations

Revenue (other than for those items to which Ind AS 109 - Financial Instruments are
applicable) is measured at the amount of transaction price (net of variable consideration)
allocated to that performance obligation.

iv) Recoveries of financial assets written-off

The Company recognizes income on recoveries of financial assets written off on realization or
when the right to receive the same without any uncertainties of recovery is established.

v) Taxes

Incomes are recognized net of the Goods and Services Tax/Service Tax, wherever applicable.

8.2) Expenditures

i) Finance Costs

Borrowing costs on financial liabilities are recognized using the EIR.

ii) Fees and Commission Expenses

Fees and commission expenses which are not directly linked to the sourcing of financial assets,
such as commission/incentive incurred on value added services and products distribution,
recovery charges, etc., are recognized in the statement of profit and loss on an accrual basis.

iii) Taxes

Expenses are recognized net of the Goods and Services Tax/Service Tax, except where credit
for the input tax is not statutorily permitted.

8.3) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, other short term, highly liquid investments
with original maturities of three months or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value.

8.4) Financial Instruments

A financial instrument is defined as any contract that gives rise to a financial asset of one entity
and a financial liability or equity instrument of another entity. Trade receivables and payables,
loan receivables, investments in securities and subsidiaries, debt securities and other
borrowings, preferential and equity capital etc. are some examples of financial instruments.

All the financial instruments are recognized on the date when the Company becomes party to
the contractual provisions of the financial instruments. For tradable securities, the Company
recognizes the financial instruments on settlement date.

i) Financial Assets

Financial assets include cash, or an equity instrument of another entity, or a contractual right
to receive cash or another financial asset from another entity. Few examples of financial assets
are loan receivables, investment inequity and debt instruments, and cash and cash
equivalents.

a. Initial Measurement

All financial assets are recognized initially at fair value including transaction costs that are
attributable to the acquisition of financial assets. Generally, the transaction price is treated

as fair value unless proved to the contrary. However, trade receivable that do not contain a
significant financing component are measured at transaction price.

b. Subsequent Measurement

Equity investments designated under FVOCI

All equity investments in scope of Ind AS 109 ''Financial instruments'' are measured at fair value.
The Company has strategic investments in equity for which it has elected to present subsequent
changes in the fair value in OCI. The classification is made on initial recognition and is
irrevocable.

All fair value changes of the equity instruments, excluding dividends, are recognized in OCI and
not available for reclassification to profit or loss, even on sale of investments. Equity instruments
at FVOCI are not subject to an impairment assessment.

De-recognition of financial assets

The Company derecognizes a financial asset (or, where applicable, a part of a financial asset)
when

: The right to receive cash flows from the asset has expired; or

: The Company has transferred its right to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under an
assignment arrangement and the Company has transferred substantially all the risks and
rewards of the asset. Once the asset is derecognized, the Company does not have any continuing
involvement in the same.

Impairment of Financial Assets

The Company records allowance for expected credit losses for all loans, other debt financial
assets not held at FVTPL, together with financial guarantee contracts. Equity instruments are not
subject to impairment under Ind AS 109.

The ECL allowance is based on the credit losses expected to arise over the life of the asset (the
lifetime expected credit loss), unless there has been no significant increase in credit risk since
origination, in which case, the allowance is based on the 12 months'' expected credit loss.

Lifetime ECL are the expected credit losses resulting from all possible default events over the
expected life of a financial instrument. The 12-month ECL is the portion of Lifetime ECL that
represents the ECLs that result from default events on a financial instrument that are possible
within the 12 months after the reporting date.

Both Lifetime ECLs and 12-month ECLs are calculated on either an individual basis or a collective
basis, depending on the nature of the underlying portfolio of financial instruments.

The Company has established a policy to perform an assessment, at the end of each reporting
period, of whether a financial instrument''s credit risk has increased significantly since initial
recognition, by considering the change in the risk of default occurring over the remaining life of
the financial instrument. The Company does the assessment of significant increase in credit risk

at a borrower level. If a borrower has various facilities having different past due status, then the
highest days past due (DPD) is considered to be applicable for all the facilities of that borrower.

Based on the above, the Company categorizes its loans into Stage 1, Stage 2 and Stage 3 as
described below:

Stage 1

All exposures where there has not been a significant increase in credit risk since initial
recognition or that has low credit risk at the reporting date and that are not credit impaired
upon origination are classified under this stage. The Company classifies all standard advances
and advances up to 30 days'' default under this category. Stage 1 loans also include facilities
where the credit risk has improved and the loan has been reclassified from Stage 2.

Stage 2

All exposures where there has been a significant increase in credit risk since initial recognition
but is not credit impaired are classified under this stage. 30 Days Past Due is considered as
significant increase in credit risk.

Stage 3

All exposures assessed as credit impaired when one or more events that have a detrimental
impact on the estimated future cash flows of that asset have occurred are classified in this stage.
For exposures that have become credit impaired, a lifetime ECL is recognized and interest
revenue is calculated by applying the effective interest rate to the amortized cost (net of
provision) rather than the gross carrying amount. 90 Days Past Due is considered as default for
classifying financial instrument as credit impaired. If an event (for e.g. any natural calamity)
warrants a provision higher than as mandated under ECL methodology, the Company may
classify the financial asset in Stage 3 accordingly.

(ii) Financial Liabilities

A financial liability includes liabilities that represent a contractual obligation to deliver cash or
another financial asset to another entity, or a contract that may or will be settled in the entity''s
own equity instruments. Few examples of financial liabilities are trade payables, debt securities
and other borrowings and subordinated debts.

a. Initial Measurement

All financial liabilities are recognized initially at fair value and, in the case of borrowings and
payables, net of directly attributable transaction costs. The Company''s financial liabilities
include trade payables, other payables, debt securities and other borrowings.

b. Subsequent Measurement

After initial recognition, all financial liabilities are subsequently measured at amortized cost
using the EIR. Any gains or losses arising on de-recognition of liabilities are recognized in the
Statement of Profit and Loss.

8.5) Taxes

(i) Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from

or paid to the taxation authorities, in accordance with the Income Tax Act, 1961 and the
Income Computation and Disclosure Standards (ICDS) prescribed therein. The tax rates and
tax laws used to compute the amount are those that are enacted or substantively enacted, at
the reporting date.

Current tax relating to items recognized outside profit or loss is recognized in correlation to
the underlying transaction either in OCI or directly in other equity. Management periodically
evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.

(ii) Deferred tax

Deferred tax is provided using the Balance Sheet approach on temporary differences
between the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax
assets are recognized for deductible temporary differences to the extent that it is probable
that taxable profits will be available against which the deductible temporary differences can
be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets, if any,
are re-assessed at each reporting date and are recognized to the extent that it has become
probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in
the year when the asset is realized or the liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognized outside profit or loss is recognized either in OCI or
in other equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred taxes relate to the
same taxable entity and the same taxation authority.

8.6) Property, Plant and Equipment

Property, plant and equipment are carried at historical cost of acquisition less accumulated
depreciation and impairment losses, consistent with the criteria specified in Ind AS 16 ''Property,
plant and equipment''.

Depreciation on property, plant and equipment

(a) Depreciation is provided on a pro rata basis for all tangible assets on a straight line method
over the useful life of assets.

(b) Useful lives of assets are determined as prescribed by Schedule II - Part C of the Companies
Act, 2013.

(c) Depreciation in addition to assets and assets sold during the year is being provided for on a
pro rata basis with reference to the month in which such asset is added or sold as the case
may be.

(d) An item of property, plant and equipment and any significant part initially recognized is
derecognized upon disposal or when no future economic benefits are expected from its use
or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is
included under other income in the Statement of Profit and Loss when the asset is
derecognized.

(e) The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively, if
appropriate.

8.7) Impairment on Non-Financial Assets

An assessment is done at each Balance Sheet date to ascertain whether there is any indication
that an asset may be impaired. If any such indication exists, an estimate of the recoverable
amount of asset is determined. If the carrying value of the relevant asset is higher than the
recoverable amount, the carrying value is written down accordingly.

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Mar 31, 2024

1) Corporate Information

Baid Finserv Limited (Formerly known as Baid Leasing & Finance Company Ltd.) is a company limited by shares, incorporated on December 20, 1991 and domiciled in India. The Company has its Registered Office at "Baid House", IInd Floor, 1, Tara Nagar, Ajmer Road, Jaipur-302006 (Rajasthan). The Company is dealing in Vehicles loans/MSME/ Mortgage loan (LAP) and financing of commercial vehicle including Car Loans/ Tractors/Construction Equipment. The Company is deeply penetrated in the semi urban and rural areas in Rajasthan and recently ventured in Madhya Pradesh and Gujarat. It has targeted market of loans against used vehicles and MSME Loans in semi-urban areas because of the unorganized markets and lack of banks and other financing avenues.

The Company is registered with the Reserve Bank of India (RBI) as a Non deposit taking NonBanking Financial Company ("NBFC") as defined under section 45-IA of the Reserve Bank of India (RBI) Act, 1934. The Company is classified under "Base Layer" pursuant to Master Direction-Reserve Bank of India (Non-Banking Financial Company- Scale Based Regulation) Directions, 2023.

The audited financial statements were subject to review and recommendation of Audit Committee and approval of Board of Directors. On May 27, 2024, Board of Directors of the Company approved and recommended the audited financial statements for consideration and adoption by the shareholders in its Annual General Meeting.

2) Basis of Preparation

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and notified under Section 133 of the Companies Act, 2013 (the Act) along with other relevant provisions of the Act and the Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023 (Updated as on March 21, 2024). The Company uses accrual basis of accounting except in case of significant uncertainties.

The financial statements are prepared on a going concern basis, as the Management is satisfied that the Group shall be able to continue its business for the foreseeable future and no material uncertainty exists that may cast significant doubt on the going concern assumption. In making this assessment, the Management has considered a wide range of information relating to present and future conditions, including future projections of profitability, cash flows and capital resources.

3) Risk Assessment for COVID-19

Disclosure on Resolution Framework 2.0 implemented in terms of RBI notification no. RBI/2020-21/16 doR.no.BP.BC/3/21.04.048/2020-21 dated August 6, 2020 and RBI/2021-

22/31/doR.STR.REC.11/21.04.048/2021-22dated May 05, 2021

4. Intra-group exposures

There is no intra group exposure the during the financial years ended March 31, 2023 and March 31, 2024.

5. Unhedged foreign currency

There is no unhedged foreign currency transaction during the current financial year ended March 31, 2024.

6) Disclosure of transactions with related parties as required by Ind AS 248) Summary of significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.

8.1) INCOME(i) Interest income

The Company recognizes interest income using Effective Interest Rate (EIR) on all financial assets subsequently measured at amortized cost or fair value through other comprehensive income (FVOCI). EIR is calculated by considering all costs and incomes attributable to acquisition of a financial asset or an assumption of a financial liability and it represents a rate that exactly discounts estimated future cash payments/receipts through the expected life of the financial asset/financial liability to the gross carrying amount of a financial asset or to the amortized cost of a financial liability.

(ii) Dividend income

Dividend income on equity shares is recognized when the Company''s right to receive the payment is established, which is generally when shareholders approve the dividend.

(iii) Other revenue from operations

Revenue (other than for those items to which Ind AS 109 - Financial Instruments are applicable) is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation.

(iv) Recoveries of financial assets written-off

The Company recognizes income on recoveries of financial assets written off on realization or when the right to receive the same without any uncertainties of recovery is established.

(v) Taxes

Incomes are recognized net of the Goods and Services Tax/Service Tax, wherever applicable.

8.2) Expenditures(i) Finance Costs

Borrowing costs on financial liabilities are recognized using the EIR.

(ii) Fees and Commission Expenses

Fees and commission expenses which are not directly linked to the sourcing of financial assets, such as commission/incentive incurred on value added services and products distribution, recovery charges, etc., are recognized in the statement of profit and loss on an accrual basis.

(iii) Taxes

Expenses are recognized net of the Goods and Services Tax/Service Tax, except where credit for the input tax is not statutorily permitted.

8.3) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

8.4) Financial Instruments

A financial instrument is defined as any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Trade receivables and payables, loan receivables, investments in securities and subsidiaries, debt securities and other borrowings, preferential and equity capital etc. are some examples of financial instruments.

All the financial instruments are recognized on the date when the Company becomes party to the contractual provisions of the financial instruments. For tradable securities, the Company recognizes the financial instruments on settlement date.

(i) Financial Assets

Financial assets include cash, or an equity instrument of another entity, or a contractual right to receive cash or another financial asset from another entity. Few examples of financial assets are loan receivables, investment inequity and debt instruments, and cash and cash equivalents.

a. Initial Measurement

All financial assets are recognized initially at fair value including transaction costs that are attributable to the acquisition of financial assets. Generally, the transaction price is treated as fair value unless proved to the contrary. However, trade receivable that do not contain a significant financing component are measured at transaction price.

b. Subsequent MeasurementEquity investments designated under FVOCI

All equity investments in scope of Ind AS 109 ''Financial instruments'' are measured at fair value. The Company has strategic investments in equity for which it has elected to present subsequent changes in the fair value in OCI. The classification is made on initial recognition and is irrevocable.

All fair value changes of the equity instruments, excluding dividends, are recognized in OCI and not available for reclassification to profit or loss, even on sale of investments. Equity instruments at FVOCI are not subject to an impairment assessment.

De-recognition of financial assets

The Company derecognizes a financial asset (or, where applicable, a part of a financial asset) when

: The right to receive cash flows from the asset has expired; or

: The Company has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under an assignment arrangement and the Company has transferred substantially all the risks and rewards of the asset. Once the asset is derecognized, the Company does not have any continuing involvement in the same.

The Company records allowance for expected credit losses for all loans, other debt financial assets not held at FVTPL, together with financial guarantee contracts. Equity instruments are not subject to impairment under Ind AS 109.

The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss ), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months'' expected credit loss.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is the portion of Lifetime ECL that represents the ECLs that result from default events on a financial instrument that are possible within the 12 months after the reporting date.

Both Lifetime ECLs and 12-month ECLs are calculated on either an individual basis or a collective basis, depending on the nature of the underlying portfolio of financial instruments.

The Company has established a policy to perform an assessment, at the end of each reporting period, of whether a financial instrument''s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. The Company does the assessment of significant increase in credit risk at a borrower level. If a borrower has various facilities having different past due status, then the highest days past due (DPD) is considered to be applicable for all the facilities of that borrower.

Based on the above, the Company categorizes its loans into Stage 1, Stage 2 and Stage 3 as described below:

Stage 1

All exposures where there has not been a significant increase in credit risk since initial recognition or that has low credit risk at the reporting date and that are not credit impaired upon origination are classified under this stage. The Company classifies all standard advances and advances up to 30 days'' default under this category. Stage 1 loans also include facilities where the credit risk has improved and the loan has been reclassified from Stage 2.

Stage 2

All exposures where there has been a significant increase in credit risk since initial recognition but is not credit impaired are classified under this stage. 30 Days Past Due is considered as significant increase in credit risk.

Stage 3

All exposures assessed as credit impaired when one or more events that have a detrimental impact on the estimated future cash flows of that asset have occurred are classified in this stage. For exposures that have become credit impaired, a lifetime ECL is recognized and interest revenue is calculated by applying the effective interest rate to the amortized cost (net of provision) rather than the gross carrying amount. 90 Days Past Due is considered as default for classifying financial instrument as credit impaired. If an event (for e.g. any natural calamity) warrants a provision higher than as mandated under ECL methodology, the Company may classify the financial asset in Stage 3 accordingly.

A financial liability includes liabilities that represent a contractual obligation to deliver cash or another financial asset to another entity, or a contract that may or will be settled in the entity''s own equity instruments. Few examples of financial liabilities are trade payables, debt securities and other borrowings and subordinated debts.

a. Initial Measurement

All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade payables, other payables, debt securities and other borrowings.

b. Subsequent Measurement

After initial recognition, all financial liabilities are subsequently measured at amortized cost using the EIR. Any gains or losses arising on de-recognition of liabilities are recognized in the Statement of Profit and Loss.

8.5) Taxes(i) Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, in accordance with the Income Tax Act, 1961 and the Income Computation and Disclosure Standards (ICDS) prescribed therein. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current tax relating to items recognized outside profit or loss is recognized in correlation to the underlying transaction either in OCI or directly in other equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

(ii) Deferred tax

Deferred tax is provided using the Balance Sheet approach on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for deductible temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets, if any, are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognized outside profit or loss is recognized either in OCI or in other equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

8.6) Property, Plant and Equipment

Property, plant and equipment are carried at historical cost of acquisition less accumulated depreciation and impairment losses, consistent with the criteria specified in Ind AS 16 ''Property, plant and equipment''.

Depreciation on property, plant and equipment

(a) Depreciation is provided on a pro rata basis for all tangible assets on straight line method over the useful life of assets.

(b) Useful lives of assets are determined as prescribed by Schedule II - Part C of the Companies Act, 2013.

(c) Depreciation on addition to assets and assets sold during the year is being provided for on a pro rata basis with reference to the month in which such asset is added or sold as the case may be.

(d) An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included under other income in the Statement of Profit and Loss when the asset is derecognized.

(e) The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

8.7) Impairment on Non-Financial Assets

An assessment is done at each Balance Sheet date to ascertain whether there is any indication that an asset may be impaired. If any such indication exists, an estimate of the recoverable amount of asset is determined. If the carrying value of relevant asset is higher than the recoverable amount, the carrying value is written down accordingly.

8.8) Provisions and Contingent Liabilities

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

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

8.9) Foreign Currency Transaction

No Foreign currency transaction during the relevant financial year.

8.10) Segment Reporting

The Company operates in a single reporting segment i.e. financing. Since, it does not meet the quantitative thresholds laid down under the Ind AS 108 - Operating Segments for reportable segments, it has not been considered for segment reporting.

8.11) Title deeds of Immovable Properties not held in name of the Company

The Company does not possess any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee) whose title deeds are not held in the name of the Company during the financial year ended March 31, 2024 and March 31, 2023.

8.12) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual currency during the financial years ended March 31, 2024 and March 31, 2023.

8.13) Details of Benami Property Held

No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder in the financial years ended March 31, 2024 and March 31, 2023.

8.14) Willful Defaulter

The Company has not been declared as a willful defaulter by any bank or financial institution or other lender in the financial years ended March 31, 2024 and March 31, 2023.

8.15) Relationship with Struck off Companies

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.

8.16) Registration of Charges or Satisfaction with Registrar of Companies (ROC)

All charges or satisfaction are registered with ROC within the statutory period for the financial years ended March 31, 2024 and March 31, 2023. No charges or satisfactions are yet to be registered with ROC beyond the statutory period.

8.17) Compliance with number of Layers of Companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31, 2024 and March 31, 2023.

8.18) Compliance with approved Scheme(s) of Arrangements

No scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

8.19) Utilisation of Borrowed funds and share premium

The Company, as part of its normal business, grants loans and advances, makes investment, provides guarantees to and accept deposits and borrowings from its customers, other entities and persons. These transactions are part of Company''s normal non-banking finance business, which is conducted ensuring adherence to all regulatory requirements. Other than the

transactions described above, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has also not received any fund from any parties (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 Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

8.20) Investment Property

The company does not hold any investment property.

8.21) Undisclosed income

There are no transactions not recorded in the books of accounts.

8.22) Details of CSR Expenses

(Rs. in Lakhs)
Particulars	Year ended March 31, 2024	Year ended March 31, 2023
a) Gross amount required to be spent by the Company during the year	24.28	21.86
b) Amount spent during the year
(i) Construction/acquisition of any asset	-	-
(ii) on purpose other than (i) above	25.73	22.80

Note: Excess amount spent for the Year ended March 31, 2024 was Rs. 2.39 lakhs.

Excess amount spent for the Year ended March 31, 2023 was Rs. 0.94 lakhs.

There is no shortfall in the CSR amount required to be spent by the Company as per section 135(5) of the Act for the financial years ended March 31, 2024 and March 31, 2023.

CSR activities include Education, Preventive Healthcare, environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, Training and Skill Development, eradicating hunger, poverty and malnutrition, promoting health care including preventive health care, promoting gender equality, empowering women Making available safe drinking water and Higher Education and other activities which are specified under Schedule VII of Companies Act, 2013.

The Company has neither made any CSR Contributions towards its related parties nor recorded any provision for CSR expenditure during the financial years ended March 31, 2024 and March 31, 2023.

8.23) Previous year Comparatives

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

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Mar 31, 2018

(A) SIGNIFICANTACCOUNTING POLICIES

1. Basis of preparation of financial statement

The financial statements of the company have been prepared on historical cost basis following the mercantile system of accounting.

2. Revenue recognition

All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a. Accrued hire charges in cases where number of due instalments exceed 12 months.

b. Interest on Loans and Advances considered as sticky by the management.

c. Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

3. Use of Estimates

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized inthe period inwhichthe results are known.

4. Fixed Assets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

5. Depreciation

Depreciation has been provided for following Straight Line Method, at the rates and in the manner specified in Section 123 readwith Schedule 11 ofthe CompaniesAct.2013.

6. Inventories

Inventories of shares have been valued at lesser of cost ascertained following first-in-first-out method andthe respective marketvaluesof individual shares.

Stock on hire has been valued atcost.

7. Investments

All investments have been stated atcost.

Provision for diminution in shares of private limited companies, wherever so, has been ignored in view of the long-term nature of such investments and existence of adequate underlying assets.

Long term deposits for securing finance or for deriving other such benefits have been classified as Non-Current Investments.

Dividend and capital gain from sale of shares held as investments and Interest income from security deposits of investmentnature have been disclosed separately in the relevantnote.

8. Pro vision for NPA under Hire-Purchase and Loans&Advances

Company is a R.B.I. approved non deposit taking N.B.F.C. of asset size exceeding Rs. 100 crore. It follows the policy of making provisionforthe Non-performing-assets in respectofits Hire-Purchase and Loans &Advances assets in accordance with the ‘provisioning norms’; and accounting for the hire and interest incomes following the ‘income recognition and prudential norms’ as laid down by the R. B. I. for such companies having asset size exceeding Rs. 100 crore.

9. Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961 .The deferred tax for timing differences between the book an d tax profits forthe year is accounted for, usingthetax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized infuture.

10. Employee Benefits

There is no quantifiable contractual obligation to pay the retirement benefits to company’s directors and other staff hence they would be accounted for in the year they are actually paid.

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Mar 31, 2016

SIGNIFICANT ACCOUNTING POLICIES

1. General

A. Accounts have been prepared on historical cost basis following the mercantile system -of accounting.

B. All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a. Accrued hire charges in cases where number of due installments exceed 12 months.

b. Interest on Loans and Advances considered as sticky by the management.

c. Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

2. Use of Estimates

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known. .

3. Fixed Assets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

4. Depreciation

Depreciation has been provided for following Straight Line Method, at the rates and in the manner specified in Section 123 read with Schedule II of the Companies Act, 2013.

5. Inventories

Inventories of shares have been valued at lesser of cost ascertained following first-in-first-out method and the respective market values of individual shares.

Stock on hire has been valued at cost.

6. Investments

All Investments have been stated at cost.

Provision for diminution in shares of private limited companies, wherever so, has been ignored in view of the long-term nature of such investments and existence of adequate underlying assets.

Market value of quoted mutual funds has been separately disclosed in the relevant note.

Long term deposits for securing finance or for deriving such other benefits have been classified as Investments.

Dividend and capital gain from sale of shares held as investments and Interest income from security deposits of investment nature have been disclosed separately in the relevant note.

7. Provision for NPA under Hire-Purchase and Loans & Advances

Company is a R.B.I. approved non deposit taking NBFC. It has followed the policy of making provision for the Non-performing-assets in respect of its Hire -Purchase and Loans & Advances assets in accordance with the ‘provisioning norms''; and accounting for the hire and interest incomes following the ''income recognition and prudential norms’ as laid down by the RBI as per its circular no. DNBR (PD) CC.No.044/03.10.119/2015-16 dated July 1,2015.

8. Staff Benefits

There is no quantifiable contractual obligation to pay the retirement benefits to company''s directors and other staff hence they would be accounted for in the year they are actually paid.

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Mar 31, 2015

1.) General

A. Accounts have been prepared on historical cost basis following the mercantile system of accounting.

B. All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a. Accrued hire charges in cases where number of due installments exceed 12 months.

b. Interest on Loans and Advances considered as sticky by the management.

c. Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

2) Use of Estimates

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known.

3) Fixed Assets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

Amount spent during the year on acquisition of an application software rendering benefit of enduring nature has been capitalized and treated as an intangible fixed asset.

4) Depreciation

Depreciation has been provided for following Straight Line Method, at the rates and in the manner specified in Section 123 read with Schedule II of the Companies Act, 2013.

Due to revision of useful life as prescribed in Schedule li of the Companies Act, 2013, the rates of depreciation on company''s assets have got changed. Cumulative effect of so retrospectively enhanced depreciation allowance amounting to Rs. 5,18,749/, has been separately disclosed in the relevant schedule and charged to revenue this year, in compliance to the guidance contained in AS 6.

5) Inventories

Inventories of shares have been valued at lesser of cost ascertained following firstinfirstout method and the respective market values of individual shares.

Stock on hire has been valued at cost.

6) Investments

All Investments have been stated at cost.

Provision for diminution in shares of private limited companies, wherever so, has been ignored in view of the longterm nature of such investments and existence of adequate underlying assets.

Market value of quoted mutual funds has been separately disclosed in the relevant note.

Long term deposits for securing finance or for deriving other such benefits have been classified as Investments.

Dividend and capital gain from sale of shares held as investments and Interest income from security deposits of investment nature have been disclosed separately in the relevant note.

7) Provision for NPA under HirePurchase and Loans & Advances

Company is a R.B.I. approved non deposit taking N.B.F.C. of asset size less than Rs. 100 crore. It follows the policy of making provision for the Nonperformingassets in respect of its Hire -Purchase and Loans & Advances assets in accordance with the ''provisioning norms''; and accounting for the hire and interest incomes following the ''income recognition and prudential norms'' as laid down by the R. B. I. for such companies having asset size exceeding Rs. 100 crore.

8) Staff Benefits

There is no quantifiable contractual obligation to pay the retirement benefits to company''s directors and other staff hence they would be accounted for in the year they are actually paid.

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Mar 31, 2014

1) General

A. Accounts have been prepared on historical cost basis following the mercantile system of accounting.

B. All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a. Accrued hire charges in cases where number of due installments exceed 12 months.

b. Interest on Loans and Advances considered as sticky by the management.

c. Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

2) Use of Estimates

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known.

3) FixedAssets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

4) Depreciation

Depreciation has been provided for following Straight Line Method, at the rates and in the manner specified in Schedule IVX of the CompaniesAct, 1956.

5) Inventories

Inventories have been valued at cost or market value whichever is less.

6) Investments

Investments have been stated at cost in view of their long-term nature. Market value of quoted Investments as on 31st March, 2014 however is separately disclosed in the relevant schedule.

7) Provision for N PA under Hire-Purchase and Loans &Advances

Company is a R.B.I, approved Non-banking-finance-company, hence it has made provision for the Non-performing-assets in respect of its Hire -Purchase and Loans & Advances assets in accordance with the ''provisioning norms''; and hire and interest incomes have been accounted for following the ''prudential norms'' laid down by the Reserve Bank of India.

8) Staff Benefits

There is no quantifiable contractual obligation to pay the retirement benefits to company''s directors and other staff hence they would be accounted for in the yearthey are actually paid.

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Mar 31, 2013

1.) General

A. Accounts have been prepared on historical cost basis following the mercantile system of accounting.

B. All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a. Accrued hire charges in cases where number of due installments exceed 12 months.

b. Interest on Loans and Advances considered as sticky by the management. c Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

2) Use of Estimates

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known.

3) Fixed Assets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

4) Depreciation

Depreciation has been provided for following Straight Line Method, at the rates and in the manner specified in Schedule IVXof the Companies Act, 1956.

5) Inventories

Inventories have been valued at cost or market value whichever is less.

6) Investments

Investments have been stated at cost in view of their long-term nature. Market value of quoted Investments as on 31sl March, 2013 however is separately disclosed in the relevant schedule.

7) Provision for NPA under Hire-Purchase and Loans & Advances

Company is a R.B.I, approved Non-banking-finance-company, hence it has made provision for the Non-performing-assets in respect of its Hire-Purchase and Loans & Advances assets in accordance with the ''provisioning norms'' and hire and interest incomes have been accounted for following the ''prudential norms'' laid down by the Reserve Bank of India.

8) Staff Benefits

There is no quantifiable contractual obligation to pay the retirement benefits to company''s directors and other staff hence they would be accounted for in the year they are actually paid.

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Mar 31, 2012

1.) General

A) Accounts have been prepared on historical cost basis following the mercantile system of accounting.

B) All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a) hire charges due at the yearend for a period exceeding 12 months.

b) Interest on Loans and Advances considered to be sticky by the management.

c) Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

C) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

2) Fixed Assets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

3) Assets under Hire-Purchase and Loans & Advances

Company is a R.B.I. approved Non-Banking Finance Company, hence Hire-Purchase and Loans &Advances assets have been stated after making provision for Non Performing Assets in accordance with the provisioning norms and hire income has been accounted for following the prudential norms laid down by the Reserve Bank of indian.

4) Depreciation

Depreciation has been provided for on Straight Line Method, at the rates and in the manner specified in Schedule IVX of the Companies Act, 1956.

5) Inventories

Inventories have been valued at cost or market value whichever is less.

6) Investments

Investments have been stated at cost in view of their long-term nature. Market value of quoted Investments as on 31st March, 2012 however is separately disclosed in the relevant schedule.

7) Staff Benefits:

Gratuity would be accounted for as and when it becomes payable under the provisions of payment of Gratuity Act, 1972

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Mar 31, 2010

1.) General

A) Accounts have been prepared on historical cost basis following the mercantile system of accounting.

B) All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a) hire charges due at the year end for a period exceeding 12 months.

b) Interest on Loans and Advances considered to be sticky by the management. .

c) Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

C) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

2) Fixed Assets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

3) Assets under Hire-Purchase and Loans & Advances

Hire-Purchase and Loans & Advances assets have been stated after making provision for Non Performing Assets in accordance with the provisioning norms laid down by the Reserve Bank of india.

4) Depreciation

Depreciation has been provided for on Straight Line Method, at the rates and in the manner specified in Schedule IVX of the Companies Act, 1956.

5) Inventories

Inventories have been valued at cost or market value whichever is less.

6) Investments

Investments have been stated at cost in view of their long-term nature. Market value of quoted Investments as on 31st March, 2010 however is separately disclosed in the relevant schedule.

7) Staff Benefits:

Gratuity would be accounted for as and when it becomes payable under the provisions of payment of Gratuity Act, 1972