Notes to Accounts of CSL Finance Ltd.

Mar 31, 2023

Terms/rights attached to equity shares

The Company has one class of equity shares having a par value of ? 10/- per share. Each Shareholder is eligible for one vote per share held. The shares entitle the holder to participate in dividends and in the event of liquidation, the equity Shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholding.

34. Segment information

In the opinion of the management, there is only business segment i.e. lending, which have similar risks and return for the purpose of Ind AS 108 ''Operating segments'', prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with the relevant rules issued thereunder. Accordingly, no separate disclosure for segmental reporting is required to be made in the financial statements or the Company.

Secondary segmentation based on geography has not been presented as the Company operates primarily in India and the Company perceives that there is no significant difference in its risk and returns in operating from different geographic areas within India.

All the operating revenue of the Company is from the external customers with in India only. No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the Company''s total revenue in year ended 31 March, 2023/31 March, 2022.

35. Employee Stock Option Scheme (ESOS)

The ESOS Scheme titled "CSL Employee Stock options Scheme 2016" (CSL ESOS 2016) was approved by the shareholders on 30 September, 2016. 7,00,000 options are covered under the CSL ESOS, 2016.

During the financial year 2016-17, the Compensation Committee in its meeting held on 3 February, 2016 and 11 February, 2016 has granted 4,50,000 options (aggregate) under ESOS to eligible employees of the Company. Each option comprises one underlying equity share. The terms regarding vesting and exercise of options are governed by the grant letters issued to the eligible employees to whom options are granted. The Exercise price has been determined at ? 226/- per share for the grant of aforesaid 450000 options.

During the financial year 2017-18, the Compensation Committee in its meeting held on 12 May, 2017 and 07 July, 2017 has granted 1,15,000 options (aggregate) under ESOS to eligible employees of the Company. Each option comprises one underlying equity share. The terms regarding vesting and exercise of options are governed by the grant letters issued to the eligible employees to whom options are granted. The Exercise price has been determined at ? 240/- per share for the grant of aforesaid 1,15,000 options.

During the financial year 2018-19, 69,350 options were exercised and 1,65,000 equity shares were allotted. However, 90,000 options were lapsed during the financial year

2018- 19 and no fresh options were granted during the year.

During the financial year 2019-20, 24,891 options were exercised and 90,000 equity shares were allotted. However, 12,500 options were lapsed during the financial year

2019- 20 and no fresh options were granted during the year.

During the financial year 2020-21, 34921 options were exercised. and 120,838 options were lapsed during the financial year 2020-21 and no fresh options were granted during the year.

During the financial year 2021-22, 6625 options were exercised. During the current financial year 400000 equity shares were allotted along with the 71676 bonus shares

During the financial year 2022-23, 6625 options were exercised. During the current financial year 481000 equity shares were granted.

39.2 Valuation methodologies of financial instruments not measured at fair value:

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the Company''s financial statements. These fair values were calculated for disclosure purposes only.

Short-term financial assets and liabilities

For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts, which are net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash and balances, balances other than cash and cash equivalents. Such amounts have been classified as Level 2/Level 3 on the basis that no adjustments have been made to the balances in the balance sheet.

Loans and advances to customers

For loans and advances, the fair value is calculated for SME and Wholesale portfolios separately. The weighted average rate of lending is computed for each segment on reporting date and the portfolio is then adjusted for changes in these rates.

Borrowings

The fair values of financial liability held-to-maturity are estimated using effective interest rate model based on contractual cash flows using weighted average rate of borrowing of the Company.

40. Credit Risk Management

40.1 Credit Risk:

Credit risk is the risk that the Company will incur a loss because its customers fail to discharge their contractual obligations. The Company has a comprehensive framework for monitoring credit quality of its loans primarily based on days past due monitoring at period end. Repayment by individual customers and portfolio is tracked regularly and required steps for recovery are taken through follow ups and legal recourse.

40.2 Credit Quality of Loans:

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

Note: The Company is into Wholesale & SME lending business, there is no significant credit risk of any individual customer that may impact Company adversely. The Company has calculated its Expected Credit Loss allowances collectively for SME segment and customer wise for WSL segment.

40.3 ECL Methodology:

In assessing the impairment of financial loans under Expected Credit Loss (ECL) Model, the assets have been segmented into three stages. The three stages reflect the general pattern of credit deterioration of a financial instrument.

Stage 1: 0-30 days past due

Stage 2: 31-90 days past due

Stage 3: More than 90 days past due

In assessing the impairment of other financial assets Company applies the simplified approach to providing for expected credit losses prescribed by Ind AS 109.

(i) Definition of default

The Company considers a financial asset to be in "default" and therefore Stage 3 (credit impaired) for ECL calculations when the borrower becomes 90 days past due on its contractual payments.

(ii) Exposure at default

"Exposure at Default" (EAD) represents the gross carrying amount of the assets subject to impairment calculations. "Loss given default" (LGD) is estimated and applied on stage III assets.

(iii) Estimations and assumptions considered in the ECL model

"Probability of Default" (PD) is applied on Stage 1 and Stage 2 on portfolio basis and for Stage 3 PD at 20% for period of default from 4 to 12 months, at 30% for default from 13 to 21 months and at 50% for period exceeding 21 months. This is calculated based on the management''s best estimate, movement of default rates and future adjustment for macroeconomic factor.

(iv) Forward looking information

PDs has been converted into forward looking PD which incorporates the forward looking economic outlook. For SME and Wholesale portfolio, Real GDP (% change p.a.) is used as the macroeconomic variable.

(v) Assessment of significant increase in credit risk

When determining whether the credit risk has increased significantly since initial recognition, the Company considers both quantitative and qualitative information and analysis based on the Company''s historical experience, including forward-

looking information. The Company considers reasonable and supportable information that is relevant and available without undue cost and effort.

(vi) Write Offs/Recoveries

The gross carrying amount of a financial asset is written off when there is no realistic prospect of further recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the writeoff. However, financial assets that are written off could still be subject to enforcement activities under the Company''s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in profit or loss.

(vii) Undrawn commitments

These commitments pertain to the loans sanctioned but amount remaining undrawn. The Company can opt not to disburse the undrawn amount at its discretion. Therefore, no provision has been created on these commitments.

40.7 Collateral

i) Narrative description of collateral

The Company has business interests in Wholesale and SME Retail Lending. The Company risk is mitigated by considering the collateral from the borrowers. Thereby the Company employs a range of policies and practices to manage the credit risk in the business. The most common is to by accepting the collateal from the borrowers. The Company deploys internal policies on the acceptabiltiy of the specific class of collateral or credit risk mitigation. The principal collateral types for the loans and advances includes:

- Mortgage of Immovable Property;

- Pledge of the Shareholding of Promoters;

- Hypothetication of Immovable Property;

- Pledge of instruments through which promoters contribution is infused in the project.

41. Liquidity risk and funding management

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances.

The Company manages liquidity risk by measuring and managing net funding requirments by calculating the cummulative surplus or deficit of funds at a selected maturity dates. The Company also maintains adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

42. Market risk

Market the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates, Foreign Currency.

The Company''s financial statements are not exposed to currency and price risk.

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments.

The sensitivity of the statement of profit and loss is the effect of the assumed changes in interest rates on the profit or loss for a year, based on the floating rate non-trading financial assets and financial liabilities held at 31 March, 2023.

43. Transfer of financial assets

The Company has not transferred any assets that are derecognised in their entirety where the Company continues to have continuing involvement.

44. Capital Management

The Company''s capital management strategy is to effectively determine, raise and deploy capital so as to create value for its shareholders. The same is done through a mix of either equity and/or convertible 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, capital expenditure and strategic investment plans. The capital structure is monitored on the basis of net debt to equity and maturity profile of overall debt portfolio.

45. The Company has not traded or invested in crypto currency or virtual currency during the year.

(b) Others

Other than in the normal and ordinary course of business there are no funds that 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 directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company; or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Other than in the normal and ordinary course of business there are no funds that 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 directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company; or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

49.4 Risks associated with Defined benefit obligation:

Gratuity is a defined benefit plan and Company 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.

Para 139 ©Characteristics of defined benefit plans

Company has introduced the benefit scheme for Mr. Rohit Gupta during the year. The impact of the introduction of the scheme is recognised as past service cost.

Para 147 (a)

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.

51. The Company did not have any transaction which had not been recorded in the books of accounts, that had beed surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

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

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

54. Previous year figures have been regrouped/rearranged wherever necessary to render them comparable with current year figures.

---

Mar 31, 2018

NOTE-1 OTHER ADDITIONAL INFORMATION

a). A) Contingent Liabilities:

i) Claims against the company not acknowledged as debts- Nil; Previous Year- Nil

ii) Guarantees to Banks and Financial institutions against credit facilities extended to third parties-Nil; Previous Year- Nil

iii) Other money for which the company is contingently liable

b). In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

c). In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

d). CIF value of Imports-NIL; Previous Year-(Nil)

e). Earning & Expenditure in Foreign Currency- NIL; Previous Year- (Nil)

f). The activities of the company do not involve conservation of energy or absorption of technology.

Rs.37,68,815 deposited under protest is being shown as Income Tax deposit against appeal in Note no.14 i.e. Other Current assets.

g) The company has entered into loan agreement with various parties as per the terms of the agreement grants interest subject to condition precedent in the agreement. The liability, if any, in this account is known only on the completion of agreement.

B) Commitments:

i) Uncalled liability on partly paid up shares- Nil; Previous Year - (Nil)

ii) Estimated amount of contracts remaining to be executed on capital accounts- NIL; Previous Year- (Nil)

iii) Other Commitments-Nil; Previous Year-Nil

I) As per information available with the company, no amount is due to any Undertaking/Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

h) Since the Company is dealing in one segment, No separate Segment reporting is given,

i) Balances are subject to confirmation,

j) Borrowing costs attributable to the acquisition or construction of qualifying assets amounting to Rs. Nil (P. Year Nil).

k) The company has not purchased/sold non performing financial assets in the current and previous year.

l) The board of director at their meeting held on 29.05.2018 have recommended a final dividend of Rs.1.50 per equity share (on face value of Rs.10 per equity share), subject to approval of the members at the ensuing Annual General Meeting. In terms of Accounting Standard (AS) 4 ''Contingencies and Events occurring after the Balance Sheet date'' the company has not appropriated for the recommended final dividend (including tax) from the statement of Profit & Loss for the year ended 31^st March 2018.

m) As Per the AS-14 "Accounting for Amalgamation" issued by the institute of Chartered Accountant Of India the Following Disclosures is being made as:

a) Name Of The Transferee Company : CSL Finance Ltd.

b) Name Of The Transferor Company: CSL Holdings Pvt Ltd.

c) The appointed date of amalgamation is 01-04-2015.

d) Nature Of amalgamation as per AS-14 is : Pooling Of Interest Method"

e) The scheme of amalgamation of the company is approved by Hon''ble National Company Law Tribunal, Principal Bench New Delhi on dated 31^st May, 2017.

f) General Nature of the business: The Transferor companies was engaged in the business of "investment in Shares & securities"

g) Change in Shares Capital Structure "

I) Authorised Share Capital :

As per the scheme of Amalgamation as approved by the Hon''ble National Company Law Tribunal, Principal Bench New Delhi on dated 31^st May, 2017. The authorized share capital of the transferor company CSL Holdings Private Limited, amounting Rs.2,40,00,000 has been merged with the Authorised Share Capital of the company during the year.

II) Paid Up Share Capital

As per the Scheme of amalgamation as approved by the Hon''ble National Company Law Tribunal, Principal Bench New Delhi on dated 31^st May, 2017 which is effective from 01-04-2015. No fresh equity shares were allotted. Only the equity shares of the transferee company held by transferor company were transferred to the share holders of the transferor company in the share holding ratio of them in the transferor company.

n) Employee Stock option Scheme

The ESOS Scheme titled "CSL Employee Stock options Scheme 2016" (CSL ESOS 2016) was approved by the shareholders on 30.09.2016. 7,00,000 options are covered under the CSL ESOS, 2016.

During the financial year 2016-17, the Compensation Committee in its meeting held on 03.02.2016 and 11.02.2016 has granted 4,50,000 options (aggregate) under ESOS to eligible employees of the company. Each option comprises one underlying equity share. The terms regarding vesting and exercise of options are governed by the grant letters issued to the eligible employees to whom options are granted. The Exercise price has been determined at Rs.226 per share for the grant of aforesaid 4,50,000 options. During the financial year 2017-18, the Compensation Committee in its meeting held on 12.05.2017 and 07.07.2017 has granted 1,15,000 options (aggregate) under ESOS to eligible employees of the company. Each option comprises one underlying equity share. The terms regarding vesting and exercise of options are governed by the grant letters issued to the eligible employees to whom options are granted. The Exercise price has been determined at Rs.240 per share for the grant of aforesaid 1,15,000 options.

o) During the year 2015-16 the company had sold 11,07,600 shares of M/s Samrat Forgings Limited to Mr. Rakesh Mohan Kumar ("Purchaser"), vide agreement dated March 30, 2016 . The company received Rs.2.60 crore towards principle repayment till date and as per agreement, the full consideration along with interest @ 18% at balance outstanding from April 1, 2016 was to be paid by the purchaser . However till 31.03.2018 a part interest of Rs.3.21 Lakh has been received and balance principle Rs.44.14 Lakh is to be received. The company has given legal notice to the purchaser to clear the dues along with interest or otherwise the company shall enforce the agreement of forfeiture of money received till date and all the 11,07,600 shares will be in name of the company. Accordingly no provision has been made in books.

p). During the current financial year i.e 2017-18 the company has made preferential allotment of 12,22,000 equity shares of Rs.10 each at a premium of Rs.380 for each equity share. The company has also allotted 1,50,000 warrants at the price of Rs.390 each. Each warrant is to be convertible to equity shares of Rs.10 each at premium of Rs.380 each within 18 months from the date of allotment of warrants,

q) The company was creating provision for standard assets @0.25 percent of standard assets until financial year 2016-17 as per the provisioning requirements as per guidelines issued by Reserve Bank of India. During the current financial year i.e 2017-18 the company has changed provisioning for standard assets to 0.30 percent which will be increased to 0.35 percent in financial year 2018-19 and further to 0.40 percent in financial year 2019-20. This is in line so as to make the company compliant in terms of provisions relating to Systematic Important Companies of the RBI.

r) The figures of the previous years have been regrouped and rearranged wherever it is considered necessary.

---

Mar 31, 2016

NOTE-1

a) A) Contingent Liabilities:

i) Claims against the company not acknowledged as debts- Nil; Previous Year- Nil

ii) Guarantees to Banks and Financial institutions against credit facilities extended to third parties- Nil;

Previous Year- Nil

iii) Other money for which the company is contingently liable

a) Income Tax liability for Assessment year 2006-07 & 2011-12 is Rs.5,95,782/- and Rs.12,82,942/-respectively (Previous Year Rs.5,95,782/- for assessment year 2006-07, Rs. 49,68,594/- for assessment year 2008-09 & Rs 10,24,631/- for assessment year 2011-12). The company has deposited Rs.5,95,782/-and Rs.12,82,942/- for Assessment year 2006-07 and 2011-12 under protest Rs.18,78,724/- deposited under protest is being shown as Income Tax deposit against appeal in Note no.14 i.e. Other Current.

b) The company has entered into loan agreement with various parties and in case the management deems fit in its sole discretion, then, depending upon the circumstances of the case, it grants interest rebate to certain party/parties. Liability, if any, on this account is known only on completion of agreement.

B) Commitments:

i) Uncalled liability on partly paid up shares- Nil; Previous Year- (Nil)

ii) Estimated amount of contracts remaining to be executed on capital accounts- NIL; Previous Year- (Nil)

iii) Other Commitments- Nil; Previous Year- Nil

b) In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

c) In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

d) CIF value of Imports- NIL; Previous Year- (Nil)

e) Earning & Expenditure in Foreign Currency- NIL; Previous Year- (Nil)

f) The activities of the company do not involve conservation of energy or absorption of technology.

i) Company is dealing in shares. So the closing stock of shares has been shown as Stock-in-Trade but some shares purchased during the year by the company for earning income by way of dividends and for long term purposes being strategic/ large investments are shown under investments and accordingly income from these investments have been shown as short term / long term profit.

j) Deferred Tax Liabilities/Assets have been provided in accordance with AS-22. The break up of the deferred tax assets & liabilities are as under :

n) As per information available with the company, no amount is due to any Undertaking/ Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

q) The figures of the previous years have been regrouped and rearranged wherever it is considered necessary.

Notes:

2. As defined in paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

3. Provisioning norms shall be applicable as prescribed in Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

4. All Accounting Standards and guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets required in satisfaction of debt. However, market value in respect of quoated investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in (4) above.

---

Mar 31, 2015

Note 1.1 - Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in the Schedule-II. Accordingly the unamortised carrying value is being depreciated/amortised over the remaining useful lives. The above depreciation of Rs.11,73,640/- includes Rs 2,11,276/- i.e the written down value (after residual value) of fixed assets whose lives have expired as at 1st April, 2014 and have been adjusted net of tax in the opening balance of profit and loss.

a) A) Contingent Liabilities:

i) Claims against the company not acknowledged as debts- Nil; Previous Year- Nil

ii) Guarantees to Banks and Financial institutions against credit facilities extended to third parties- Nil; Previous Year- Nil

iii) Other money for which the company is contingently liable

a) Income Tax liability for Assessment year 2006-07, 2008-09 & 2011-12 is Rs.595,782/-, Rs.4,968,594/- and Rs.1,024,631/- respectively (Previous Year Rs.595,782/- for assessment year 2006-07). The company has deposited Rs.595,782/- and Rs.1,282,942/- for Assessment year 2006-07 and 2011-12 under protest. Rs.595,782/- deposited under protest is being shown as Income Tax deposit against appeal in Note no.15 i.e. Other Current Assets and Rs.1,282,942/- has been deposited after 31st March, 2015.

b) The company has entered into loan agreement with various parties and in case the management deems fit in its sole discretion, then, depending upon the circumstances of the case, it grants interest rebate to certain party/parties. Liability, if any, on this account is known only on completion of agreement.

B) Commitments :

i) Uncalled liability on partly paid up shares- Nil; Previous Year- (Nil)

ii) Estimated amount of contracts remaining to be executed on capital accounts- NIL; Previous Year- (Nil)

iii) Other Commitments- Nil; Previous Year- Nil b) In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

c) In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

d) CIF value of Imports- NIL; Previous Year- (Nil)

e) Earning & Expenditure in Foreign Currency- NIL; Previous Year- (Nil)

f) The activities of the company do not involve conservation of energy or absorption of technology.

i ) Company is dealing in shares. So the closing stock of shares has been shown as Stock-in-Trade but some shares purchased during the year by the company for earning income by way of dividends and for long term purposes being strategic/ large investments are shown under investments and accordingly income from these investments have been shown as short term / long term profit.

j) Salary Payable to Mr. Rohit Gupta, Managing Director of the company has been increased from Rs.500000/- to Rs.1000000/- per month w.e.f. 1st October, 2014. The company has filed necessary papers with Ministry of Corporate Affairs for approval. Approval for the same is yet to be received.

m) Related Party Disclosure:

As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the Company's related parties and transactions are disclosed below:

(A) Name of related parties and description of relationship:

(1) Holding Company:

a) CSL Holdings Pvt. Ltd

(2) Other related parties where the Directors / Relatives have significant influence

a) CSL Capital Pvt. Ltd.

(3) Key Management Personal:

a) Mr. Rohit Gupta

b) Mr. Akash Gupta, Company Secretary & Legal Head

(4) Relatives of Key Management Personnel.

a) Mrs. Ridhima Gupta

n) As per information available with the company, no amount is due to any Undertaking/ Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

o) Since the Company is dealing in one segment, No separate Segment reporting is given.

p) Information regarding Purchase and Sale of Stock in trade during the year.

q) The figures of the previous years have been regrouped and rearranged wherever it is considered necessary.

---

Mar 31, 2014

NOTE-1

a. A) Contingent Liabilities:

1. Claims against the company not acknowledged as debts Nil Previous Year Nil

2. Guarantees to Banks and Financial institutions against credit facilities extended to third parties Nil Previous Year Nil

3. Other money for which the company is contingently liable

a) Income Tax liability for Assessment year 2006-07 and 2007-08 is Rs. 595782/- and Rs. 1089849/- respectively Previous Year Rs. 1089849/- for assessment year 2007-08

b) The Income tax assessment for the Assessment year 2008-09 & 2009-10 has been set aside by the Income Tax Appellate Tribunal and liability if any accrues, the same will be known only after completion of the assessment.

c) The company has entered into loan agreement with various parties and in case of certain agreements as per terms of agreement company will give interest rebate to certain party/parties in case interest/principal payment is regular. Liability, if any, on this account is known only on completion of agreement.

B) Commitments :

i) Uncalled liability on partly paid up shares- Nil Previous Year (Nil)

ii) Estimated amount of contracts remaining to be executed on capital accounts- NIL. Previous Year (Nil)

iii) Other Commitments Nil Previous Year Nil

2. In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

3. In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

4. CIF value of Imports: NIL Previous Year (Nil),

5. Earning & Expenditure in Foreign Currency: NIL Previous Year (Nil),

6. The activities of the company do not involve conservation of energy or absorption of technology.

7. Company is dealing in shares. So the closing stock of shares has been shown as Stock-in-Trade but some shares purchased during the year by the company for earning income by way of dividends and for long term purposes being strategic/ large investments are shown under investments and accordingly income from these investments have been shown as short term / long term profit.

8) . As per information available with the company, no amount is due to any Undertaking/Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

9). Since the Company is dealing in one segment, no separate Segment reporting is given.

10). The figures of the previous years have been regrouped and rearranged wherever it is considered necessary.

---

Mar 31, 2013

1. A) Contingent Liabilities:

i) Claims against the company not acknowledged as debts Nil Previous Year Nil

ii) Guarantees to Banks and Financial institutions against credit facilities extended to third parties Nil Previous Year Nil

iii) Other money for which the company is contingently liable

a) Income Tax Assessment year 2007-08 Rs 1089849/- Previous Year Nil

b) The Income tax assessment for the Assessment year 2008-09 & 2009-10 has been set aside by the Income Tax Appellate Tribunal and liability if any accrues, the same will be known only after completion of the assessment.

c) The company has entered into loan agreement with various parties and as per terms of agreement company will give interest rebate to certain party/parties in case interest/principal payment is regular. Liability, if any, on this account is known only on completion of agreement.

B) Commitments :

i) Uncalled liability on partly paid up shares- Nil Previous Year (Nil)

ii) Estimated amount of contracts remaining to be executed on capital accounts- NIL. Previous Year (Nil)

iii) Other Commitments Nil Previous Year Nil

2. In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

3. In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

4. CIF value of Imports: NIL Previous Year (Nil)

5. Earning & Expenditure in Foreign Currency: NIL Previous Year (Nil)

6. The activities of the company do not involve conservation of energy or absorption of technology.

7. Director''s remuneration: 30,00,000.00 30,00,000.00

8. Company is dealing in shares. So the closing stock of shares has been shown as Stock-in-Trade but some shares purchased during the year by the company for earning income by way of dividends and for long term purposes being strategic/ large investments are shown under investments and accordingly income from these investments have been shown as short term / long term profit.

I). Related Party Disclosure:

As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the Company''s related parties and transactions are disclosed below:

(A) Name of related parties and description of relationship:

(1) Holding Company :

a) Mundra Credit & Investment Pvt. Ltd

(2) Other related parties where the Directors / Relatives have significant influence

a) Deep Deposits & Leasing Pvt. Ltd.

b) CSL Realtors Pvt. Ltd.

(3) Key Management Personnel:

a) Mr. Rohit Gupta

(4) Relatives of Key Management Personnel.

a) Mr. Satpaul Gupta

b) Mrs. Ridhima Gupta

l ). Indicate s figures of Previous year.

m). As per information available with the company, no amount is due to any Undertaking/Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

n). Since the Company is dealing in one segment, No separate Segment reporting is given.

o). Information regarding Purchase and Sale of Stock in trade during the year.

Note

1. As defined in paragraph 2(1) (xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998.

2. Provisioning norms shall be applicable as prescribed in Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007

3. All Accounting Standards and guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets required in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in (4) above.

---

Mar 31, 2012

A) A) Contingent Liabilities:

i) Claims against the company not acknowledged as debts - Nil Previous Year Nil

ii) Guarantees to Banks and Financial institutions against credit facilities extended to third parties - Nil Previous Year Nil

iii) Other money for which the company is contingently liable - Nil Previous Year Nil B) Commitments :

i) Uncalled liability on partly paid up shares- Nil Previous Year (Nil)

ii) Estimated amount of contracts remaining to be executed on capital accounts- Nil. Previous Year (Nil)

iii) Other Commitments Nil Previous Year Nil

b). In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

c). In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

d). CIF value of Imports: NIL Previous Year (Nil)

e). Earning & Expenditure in Foreign Currency: NIL Previous Year (Nil)

f). The activities of the company do not involve conservation of energy or absorption of technology.

i). Company is dealing in shares. So the closing stock of shares has been shown as Stock-in-Trade but some shares purchased during the year by the company for earning income by way of dividends and for long term purposes being strategic/ large investments are shown under investments and accordingly income from these investments have been shown as short term / long term profit.

l). Related Party Disclosure:

As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the Company's related parties and transactions are disclosed below:

(A) Name of related parties and description of relationship:

(1) Holding Company :

a) Mundra Credit & Investment (P) Ltd

(2) Other related parties where the Directors / Relatives have significant influence

a) Deep Deposits & Leasing (P) Ltd.

(3) Key Management Personnel:

a) Mr. Rohit Gupta

(4) Relatives of Key Management Personnel.

a) Mr. Satpaul Gupta

b) Mrs. Ridhima Gupta

m). As per information available with the company, no amount is due to any Undertaking/Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

n). Since the Company is dealing in one segment, No separate Segment reporting is given.

p). The figures of the previous years have been regrouped and rearranged wherever it is considered necessary.

---

Mar 31, 2010

1. Contingent Liability:

a) Unpaid liability on partly paid up shares- Nil (Nil)

b) Estimated amount of contract remaining to be executed on capital accounts- Nil (Nil)

2. Claim againstthe company not acknowledged as debts- Nil (Nil)

3. In the opinion of Board of Directors & best of their knowledge & belief the provisions of all known liabilities are adequate.

4. In the opinion of Board of directors, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5. None of the employees was in receipt of annual remuneration as prescribed under the provision of section 217(2A) of the Companies Act, 1956.

6. The activities of the company do not involve conservation of energy or absorption of technology.

7. The figures of the previous years have been regrouped and rearranged wherever it considered necessary.

8. Directors remuneration: NIL (NIL)

9. Amount dueto/from the parties are subjectto confirmation.

10. Company is dealing in shares. So the closing stock of shares has been shown as Stock-in-Trade but some shares purchased during the year by the company for earning income by way of dividends and for long term purposes being strategic investments are shown under investments.

11. Provisions:

Provisions are recognized where the company has present legal or constructive obligation, as a result of past event, for which it is probable that an outflow of economic benefits will be required to settle the obligation and the reliable estimate can be made for the amount of the obligation.

12. Impairment of Assets:

The carrying amounts of assets are reviewed at the balance sheet date to determine whether there are any indications of impairment. If the carrying amount of the fixed assets exceeds the recoverable amount at the reporting, the carrying amount is reduced to the recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use, the value in use determined by the present value estimated future cash flows. Here carrying amounts of fixed assets are equal to recoverable amounts.

13. Related Party Disclosure:

As per Accounting Standard-18 issued by the Institute of Chartered Accountants of India, the Companys related parties and transactions are disclosed below:

(A) Name of related parties and description of relationship:

(1) Holding Company:

a) Mundra Credit & Investment (P) Ltd

(2) Other related parties where the Directors/ Relatives have significant influence

a) Rajastan Global Securities Ltd.

b) Deep Deposits & Leasing (P) Ltd.

(3) Key Management Personal: a) Mr. Rohit Gupta

(4) Relatives of Key Management Personnel. a) Mr. Satpaul Gupta

14. As per information available with the company, no amount is due to any Undertaking/ Enterprise covered under the Micro, Small and Medium Enterprise Development Act, 2006.

15. Since the Company is dealing in one segment, No separate Segment reporting is given.

16. The figure in the brackets pertains to the previous year.