Notes to Accounts of Dhansafal Finserve Ltd.

Mar 31, 2025

M. Provisions and Contingent Liabilities

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

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

N. Fair Value Measurement

The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.

Fair value is the price that would be received against sale of an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place in the accessible
principal market or the most advantageous accessible market as applicable. The Company uses valuation
techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair
value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy into Level I, Level II and Level III based on the lowest level input that is significant
to the fair value measurement as a whole.

For assets and liabilities that are fair valued in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of
each reporting period. For the purpose of fair value disclosures, the Company has determined classes of
assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of
the fair value hierarchy.

O. Recent Accounting Pronouncements:

Ministry of Corporate Affairs (‘MCA'') notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31,
2025, MCA has not notified any new standards or amendments to the existing standards applicable to the
Company.

NOTE 22 - EARNINGS PER EQUITY SHARE

Earnings Per Share (EPS) - The Company presents basic and diluted earnings per share (“EPS”) data for its
ordinary shares. Basic EPS is calculated by dividing the net profit or loss attributable to ordinary shareholders of
the Company by the weighted average number of ordinary shares outstanding during the year. The weighted
average number of shares outstanding during the year is adjusted for events such as rights issue (including the
bonus element) that have changed the number of shares outstanding.

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

NOTE 24 - LEGAL DISPUTES IN PROJECTS UNDERTAKEN BY THE COMPANY

i. Company has entered into a Development Agreement with M/s. Krishna Sagar Builders Ltd. to develop a
property situated at Charkop Village, Kandivali (West) admeasuring total area of 1138.78 Sq. Mtrs (Developable
Area: 984.90 Sq Mtrs) the total amount incurred on the said project is Rs. 446.62 Lacs as on 31^st March, 2025
which is under Legal Dispute.

ii. The company has entered into a Joint Venture Agreement with M/s. Krishna Developers through its proprietor
Mr. Rajiv Kashyap to develop the property situated at CTS No.484 at Gulmohar Road, Juhu, Mumbai. The total
amount incurred on the said project is Rs. 147.45 Lacs as on 31^st March, 2013, which is also under Dispute but

The Company has a defined benefit gratuity plan in India (unfunded). The Company''s defined benefit gratuity
plan is a final salary plan for employees. Gratuity is paid from Company as and when it becomes due and is
paid as per Company scheme for Gratuity.

Risks associated with defined benefit plan: Gratuity is a defined benefit plan and entity is exposed to the
following Risks:

a. 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.

b. Interest rate risk: A fall in the discount rate which is linked to the Government Securities Rate will
increase the present value of the liability requiring higher provision.

c. Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Entity has to
manage pay-out based on pay as you go basis from own funds.

d. 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.

Characteristics of defined benefit plans:

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

b. Gratuity plan is unfunded.

28. There are no dues to Micro and Small Enterprises as at 31^st March, 2025. This information as required to be
disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to
the extent such parties have been identified on the basis of information available with the company.

29. Foreign Currency Transactions: Earning / Expenditure in foreign currency Rs. Nil (P.Y. Rs. Nil).

30. Segment Reporting: In the opinion of the Management, the Company is operating in a single segment only
as per the provisions of the Ind AS 108.

31. In accordance with Accounting standard ‘AS -18'' relating to Related Party Disclosures, information pertinent
to related party transaction is given as under: -

32. FAIR VALUE

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
in the principal (or most advantageous) market at the measurement date under current market conditions
(i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation
technique. In order to show how fair values have been derived, financial instruments are classified based on a
hierarchy of valuation techniques. This note describes the fair value measurement of both financial and non¬
financial instruments.

Valuation Framework:

The Group has an internal fair value assessment team which assesses the fair values for assets qualifying for
fair valuation.

i. The Group''s valuation framework includes:

a. Benchmarking prices against observable market prices or other independent sources;

b. Development and validation of fair valuation models using model logic, inputs, outputs and
adjustments.

c. These valuation models are subject to a process of due diligence and validation before they
become operational and are continuously calibrated. These models are subject to approvals by
various functions including risk, treasury and finance functions. Finance function is responsible
for establishing procedures, governing valuation and ensuring fair values are in compliance with
accounting standards.

ii. Fair values of financial assets, other than those which are subsequently measured at amortised cost,
have been arrived at as under:

a. Fair values of Investments held for trading under FVTPL have been determined under level 1 using
quoted market prices of the underlying instruments;

b. Fair values of other investments under FVOCI have been determined under level 1 using quoted
market prices of the underlying instruments;

The Group has determined that the carrying values of cash and cash equivalents, bank balances, trade
receivables, short-term loans, floating rate loans, trade payables, short-term debts, borrowings, bank
overdrafts and other current liabilities are a reasonable approximation of their fair value and hence their
carrying value are deemed to be fair value.

33. FAIR VALUE HIERARCHY

The Company determines fair values of its financial instruments according to the following hierarchy:

Level 1: valuation based on quoted market price: financial instruments with quoted prices for identical
instruments in active markets that the Company can access at the measurement date.

Level 2: valuation based on using observable inputs: financial instruments with quoted prices for similar
instruments in active markets or quoted prices for identical or similar instruments in inactive markets and
financial instruments valued using models where all significant inputs are observable.

Level 3: valuation technique with significant unobservable inputs: - financial instruments valued using
valuation techniques where one or more significant inputs are unobservable.

34. FINANCIAL RISK MANAGEMENT

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market
risks and credit risk. The Company''s senior management has the overall responsibility for establishing and
governing the Company''s risk management framework. The Company has constituted a core Management
Committee, which is responsible for developing and monitoring the Company''s risk management policies.
The Company''s risk management policies are established to identify and analyse the risks faced by the
Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market
conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also
placed before the Audit Committee of the Company.

A. Market Risk: Market risk is the risk that the fair value of future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate
risk, currency risk and another price risk. Financial instruments affected by market risk include loans and
borrowings and deposits.

Interest Rate Risk: Interest rate risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest rates. This risk exists mainly on account
of borrowings of the Company. However, all these borrowings are at fixed interest rate and hence the
exposure to change in interest rate is insignificant.

Foreign Currency Risk: Foreign currency risk is the risk that the fair value or future cash flows of an
exposure will fluctuate because of changes in foreign exchange rates. The Company is not exposed to
significant foreign currency risk as at the respective reporting dates.

Price Risk: The Company is mainly exposed to the price risk due to its investment in debt mutual funds.
The price risk arises due to uncertainties about the future market values of these investments.

B. Credit Risk: Credit risk is the risk that counterparty will not meet its obligations under a financial
instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from
its operating activities (primarily trade receivables) and other financial assets.

Trade Receivables: Customer credit risk is managed by each business unit subject to the Company''s
established policy, procedures and control relating to customer credit risk management. An impairment
analysis is performed at each reporting date on an individual basis for major trade receivables.

Other Financial Assets: Credit risk from balances with banks and financial institutions is managed by the
Company in accordance with the Company''s policy. Investments of surplus funds are made only in highly
marketable debt instruments with appropriate maturities to optimise the cash return on instruments
while ensuring sufficient liquidity to meet its liabilities.

C. Excessive risk concentration: Concentrations arise when a number of counterparties are engaged
in similar business activities, or activities in the same geographical region, or have economic features
that would cause their ability to meet contractual obligations to be similarly affected by changes in
economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company''s
performance to developments affecting a particular industry. In order to avoid excessive concentrations
of risk, the Company''s policies and procedures include specific guidelines to focus on the maintenance of
a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

D. Liquidity risk: Liquidity risk is the risk that the Company will face in meeting its obligations associated
with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have
sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the
year ended March 31, 2025 and March 31, 2024. Cash flow from operating activities provides the funds

to service the financial liabilities on a day-to-day basis. The Company regularly monitors the rolling
forecasts to ensure it has sufficient cash on an on going basis to meet operational needs. Any short¬
term surplus cash generated, over and above the amount required for working capital management and
other operational requirements, is retained as cash and cash equivalents (to the extent required) and any
excess is invested in interest bearing term deposits and other highly marketable debt investments with
appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to
meet its liabilities.

The Company manages its liquidity requirement by analysing the maturity pattern of Company''s cash
flows of financial assets and financial liabilities. The Company''s objective is to maintain a balance between
continuity of funding and flexibility. The Company invests its surplus funds in debt schemes of mutual
funds, which carry low mark to market risks.

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s
financial assets and liabilities:

35. The disclosure on the following matters required under Schedule III as amended not being relevant or

applicable in case of the Company, same are not covered such as

a. Title Deeds of Immovable Property not held in name of Company: Title deeds of immovable property are
held in the name of the Company

b. Disclosure on Revaluation of Assets: The Company has not revalued its property, plant and equipment or
intangible assets or both during the current or previous year.

c. Details of benami property held: No proceedings have been initiated on or are pending against the
Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and Rules made thereunder.

d. Borrowings against current assets: The returns or statements submitted by the company to lenders
are in agreement with books of accounts. There are no material discrepancies observed in returns or
statements submitted by the company to lenders.

e. Wilful defaulter: The Company have not been declared wilful defaulter by any bank or financial institution
or government or any government authority.

f. Relationship with struck off companies: The Company has no transactions with the companies struck off
under Companies Act, 2013 or Companies Act, 1956.

g. Registration of charges or satisfaction with Registrar of Companies: There are no charges or satisfactions
which are yet to be registered with the Registrar of Companies beyond the statutory period.

h. 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 Companies Act 2013 read with the Companies (Restriction
on number of Layers) Rules, 2017.

i. No funds have been advanced / loaned / invested (from borrowed funds or from share premium or from
any other sources / kind of funds) by the Company to any other person(s) or entity(ies), including foreign
entities (Intermediaries), with the understanding (whether recorded in writing or otherwise) that the
Intermediary shall (i) 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 (ii) provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.

No funds have been received by the Company from any person(s) or entity(ies), including foreign entities
(Funding Parties), with the understanding (whether recorded in writing or otherwise) that the Company
shall (i) 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 (ii) provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.

j. Compliance with approved scheme of arrangements: The Company has not entered into any scheme of
arrangement which has an accounting impact on current or previous financial year.

k. Undisclosed income: There is no income surrendered or disclosed as income during the current or
previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the
books of account.

l. Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency
or virtual currency during the current or previous year.

During the year, Company has invested in technology, human resource and geographical expansion which has
resulted in growth of loan book by over 100%. Hence the change in ratio have variance of more than 25%.

“Tier I Capital" means owned fund as reduced by investment in shares of other non-banking financial companies
and in shares, debentures, bonds, outstanding loans and advances including hire purchase and lease finance
made to and deposits with subsidiaries and companies in the same group exceeding, in aggregate, ten per cent
of the owned fund.

“Owned Fund" means paid-up equity capital, preference shares which are compulsorily convertible into equity,
free reserves, balance in share premium account and capital reserves representing surplus arising out of sale
proceeds of asset, excluding reserves created by revaluation of asset, as reduced by accumulated loss balance,
book value of intangible assets and deferred revenue expenditure, if any.

“Tier II capital" includes the following -

(a) preference shares other than those which are compulsorily convertible into equity;

(b) revaluation reserves at discounted rate of fifty five percent;

(c) General provisions (including that for Standard Assets) and loss reserves to the extent these are not
attributable to actual diminution in value or identifiable potential loss in any specific asset and are available
to meet unexpected losses, to the extent of one and one-fourth per cent of risk weighted assets. 12 month
expected credit loss (ECL) allowances for financial instruments i.e. where the credit risk has not increased
significantly since initial recognition, shall be included under general provisions and loss reserves in Tier II

capital within the limits specified by extant regulations. Lifetime ECL shall not be reckoned for regulatory
capital (numerator) while it shall be reduced from the risk weighted assets.

(d) hybrid debt capital instruments; and

(e) subordinated debt to the extent the aggregate does not exceed Tier I capital.

Aggregate Risk Weighted Assets -

Under RBI Guidelines, degrees of credit risk expressed as percentage weightages have been assigned to each of
the on-balance sheet assets and off-balance sheet assets. Hence, the value of each of the on-balance sheet assets
and off-balance sheet assets requires to be multiplied by the relevant risk weights to arrive at risk adjusted value
of assets. The aggregate shall be considered for reckoning the minimum capital ratio.

37. DISCLOSURE REQUIREMENTS UNDER SCALE BASED REGULATION FOR NBFC

a. Exposure to Real Estate Sector: The Company does not have any exposures (including off-balance
sheet items), in the nature of loans as at March 31, 2025 and March 31, 2024.

e. Unhedged foreign currency exposure: The Company does not have any un-hedge foreign currency
exposures as at March 31, 2025 and March 31, 2024.

f. Disclosure of complaints: The Company does not have any customer interface and thus there are no
complaints received by the NBFCs from customers and from the Offices of Ombudsman during the year
ended March 31, 2025 and March 31, 2024.

g. Corporate Governance: For Corporate Governance, refer report on Corporate Governance.

h. Details of penalties and strictures: There are no penalties or stricture imposed on the Company by the
Reserve Bank or any other statutory authority.

38. In terms of the requirement as per RBI Notification No. RBI/2019-20/170 DOR NBFC).CC.PD.No.
109/22.10.106/2019-20 dated March 13, 2020 on Implementation of Indian Accounting Standards, Non-Banking
Financial Companies (NBFCs) are required to create an impairment reserve for any shortfall in impairment
allowances under Ind AS 109 and Income Recognition, Asset Classification and Provisioning (IRACP) norms
(including provision on standard assets). The impairment allowances under Ind AS 109 made by the Company
is equal to the total provision required under IRACP (including standard asset provisioning), as at March 31,
2025 and accordingly, no amount is required to be transferred to impairment reserve.

39. During the year, the Company has received Rs. 89.65 Lakhs from ICICI Bank as directed by the Special Court,
Hyderabad and the same has been booked under Interest Income.

40. During the year, the Company issued and allotted 9,37,20,000 equity shares of Re. 1/- each (including a
premium of Rs. 2/- per equity share), aggregating to Rs. 2,811.60 lakhs, to the eligible equity shareholders on a
rights basis, after obtaining the necessary approvals.

41. Subsequent to the financial year ended March 31, 2025, the Board of Directors, at its meeting held on April 2,
2025, approved the allotment of 8,66,20,000 fully convertible share warrants on a preferential basis to persons/
entities from both the Promoter and Non-Promoter categories. The warrants were issued at a price of T4.31
per warrant (including a share premium of T3.31 per warrant), aggregating to a total amount of T37.33 crores.
As per the terms of the issue, 25% of the total consideration, amounting to T9.33 crores, was received upfront.
Out of the total warrants allotted, 77,30,000 warrants were converted into 77,30,000 equity shares, pursuant
to which the company received sum of T2.50 crores.

42. The Previous year''s figures have been regrouped / rearranged / reclassified wherever necessary. Amounts and
other disclosures for the preceding financial year are included as an integral part of current year''s financial
statements.

As per our report of even date

For R S R V & Associates For & On Behalf of Board

Chartered Accountants Sd/- Sd/-

FRN : 115691W Ankur Agrawal Apeksha Kadam

Managing Director Director

DIN : 06408167 DIN : 08878724

Sd/- Sd/- Sd/- Sd/-

Ajay Sundaria Nishi Shah Pravin Gupta Bobby Singh Chandel

Partner CS CFO CEO

M. No. 181133

---

Mar 31, 2024

13. Provisions and Contingent Liabilities

Provisions are recognized when the Company has legal and constructive obligations as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

Recognition of deferred tax assets: Availability of future taxable profit against which the tax losses carried forward can be used.

14. Fair Value Measurement

The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.

Fair value is the price that would be received against sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place in the accessible principal market or the most advantageous accessible market as applicable.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy into Level I, Level II and Level III based on the lowest level input that is significant to the fair value measurement as a whole.

For assets and liabilities that are fair valued in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.

23. In terms of the requirement as per RBI notification no. RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020 on Implementation of Indian Accounting Standards, Non-Banking Financial Companies (NBFCs) are required to create an impairment reserve for any shortfall in impairment allowances under Ind AS 109 and Income Recognition, Asset Classification and Provisioning (IRACP) norms (including provision on standard assets). The impairment allowances under Ind AS 109 made by the Company is equal to the total provision required under IRACP (including standard asset provisioning), as at March 31,2024 and accordingly, no amount is required to be transferred to impairment reserve.

24. Foreign Currency Transactions: Earning / Expenditure in foreign currency '' Nil (P.Y. '' Nil)

25. Balances of the Sundry Debtors, Loans and Advances and Sundry Creditors are subject to confirmation and resultant reconciliation, if any.

26. Segment Reporting: In the opinion of the Management, the Company is operating in a single segment only as per the provisions of the Ind AS 108.

27. There are no dues to Micro and Small Enterprises as at 31st March, 2024. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company

29. In accordance with Accounting standard AS -22 relating to “Accounting for Taxes on Income” issued by the Institute of Chartered Accountants of India, the Company has recognized a net deferred tax asset of '' Nil/- as on 31st March, 2024. (Previous Year '' Nil).

30. Company has voluntarily provided Gratuity payable for the F.Y. 2023-2024 amounting to '' 1.98 Lakhs. The Company has thus, changed the Policy of accounting and the said liability is accounted on accrual basis.

31. The Principal Special Court in the Cadre of District Judge for Trial and Disposal of Commercial Disputes at Hyderabad has ordered ICICI Bank to pay the Company a sum of '' 72.00 Lakhs as Interest towards default and delay in payment alongwith interest @ 6% on the above said amount till the realisation of the amount alongwith costs of the Suit amounting to '' 4.33 Lakhs The same shall be accounted on receipt of the same.

32. Fair Value:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique. In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques. This note describes the fair value measurement of both financial and non-financial instruments.

Valuation Framework:

The Group has an internal fair value assessment team which assesses the fair values for assets qualifying for fair valuation.

i. The Group’s valuation framework includes:

a. Benchmarking prices against observable market prices or other independent sources;

b. Development and validation of fair valuation models using model logic, inputs, outputs and adjustments.

c. These valuation models are subject to a process of due diligence and validation before they become operational and are continuously calibrated. These models are subject to approvals by various functions including risk, treasury and finance functions. Finance function is responsible for establishing procedures, governing valuation and ensuring fair values are in compliance with accounting standards.

ii. Fair values of financial assets, other than those which are subsequently measured at amortised cost, have been arrived at as under:

a. Fair values of Investments held for trading under FVTPL have been determined under level 1 using quoted market prices of the underlying instruments;

b. Fair values of other investments under FVOCI have been determined under level 1 using quoted market prices of the underlying instruments;

The Group has determined that the carrying values of cash and cash equivalents, bank balances, trade receivables, short term loans, floating rate loans, trade payables, short term debts, borrowings, bank overdrafts and other current liabilities are a reasonable approximation of their fair value and hence their carrying value are deemed to be fair value.

33. Fair Value Hierarchy

The Company determines fair values of its financial instruments according to the following hierarchy:

Level 1: valuation based on quoted market price: financial instruments with quoted prices for identical instruments in active markets that the Company can access at the measurement date.

Level 2: valuation based on using observable inputs: financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable.

Level 3: valuation technique with significant unobservable inputs: - financial instruments valued using valuation techniques where one or more significant inputs are unobservable.

34. Financial Risk management

The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework. The Company has constituted a core Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.

A. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk include loans and borrowings and deposits.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This risk exists mainly on account of borrowings of the Company. However, all these borrowings are at fixed interest rate and hence the exposure to change in interest rate is insignificant.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company is not exposed to significant foreign currency risk as at the respective reporting dates.

Price Risk

The Company is mainly exposed to the price risk due to its investment in debt mutual funds. The price risk arises due to uncertainties about the future market values of these investments.

B. Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and other financial assets.

Trade Receivables:

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. An impairment analysis is performed at each reporting date on an individual basis for major trade receivables.

Other Financial Assets:

Credit risk from balances with banks and financial institutions is managed by the Company in accordance with the Company’s policy. Investments of surplus funds are made only in highly marketable debt instruments with appropriate maturities to optimise the cash return on instruments while ensuring sufficient liquidity to meet its liabilities.

C. Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

D. Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended March 31, 2024 and March 31, 2023. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis. The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an ongoing basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

The Company manages its liquidity requirement by analysing the maturity pattern of Company’s cash flows of financial assets and financial liabilities. The Company’s objective is to maintain a balance between continuity of funding and flexibility. The Company invests its surplus funds in debt schemes of mutual funds, which carry low mark to market risks.

The table below summarises the maturity profile of the undiscounted cash flows of the Company’s financial assets and liabilities.

35. The disclosure on the following matters required under Schedule III as amended not being relevant or applicable in case of

the Company, same are not covered such as

a. Title Deeds of Immovable Property not held in name of Company: Title deeds of immovable property are held in the name of the Company.

b. Disclosure on Revaluation of Assets: The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.

c. Details of benami property held: No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

d. Borrowings against current assets: The returns or statements submitted by the company to lenders are in agreement with books of accounts. There are no material discepancies observed in resturns or statements submitted by the company to lenders.

e. Wilful defaulter: The Company have not been declared wilful defaulter by any bank or financial institution or government or any government authority.

f. Relationship with struck off companies : The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act,1956.

g. Registration of charges or satisfaction with Registrar of Companies: There are no charges or satisfactions which are yet to be registered with the Registrar of Companies beyond the statutory period.

h. 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 Companies Act 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

i. Utilisation of borrowed funds and share premium: The Company has not received securities premium through issue of equity and preference shares during the year ended March 31, 2024, and year ended March 31,2023. There is no understanding with investors, in writing or otherwise, to lend or invest in other person or entities, directly or indirectly or provide any guarantee, security or the like to or on behalf of the said investors. The management has absolute discretion on use of such funds. Hence, the additional regulatory disclosure with respect to the utilisation of borrowed funds and share premium are not included in these financial statements.

j. Compliance with approved scheme of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

k. Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

l. Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

“Tier I Capital” means owned fund as reduced by investment in shares of other non-banking financial companies and in shares, debentures, bonds, outstanding loans and advances including hire purchase and lease finance made to and deposits with subsidiaries and companies in the same group exceeding, in aggregate, ten per cent of the owned fund.

“Owned Fund” means paid up equity capital, preference shares which are compulsorily convertible into equity, free reserves, balance in share premium account and capital reserves representing surplus arising out of sale proceeds of asset, excluding reserves created by revaluation of asset, as reduced by accumulated loss balance, book value of intangible assets and deferred revenue expenditure, if any.

“Tier II capital” includes the following -

(a) preference shares other than those which are compulsorily convertible into equity;

(b) revaluation reserves at discounted rate of fifty five percent;

(c) General provisions (including that for Standard Assets) and loss reserves to the extent these are not attributable to actual diminution in value or identifiable potential loss in any specific asset and are available to meet unexpected losses, to the extent of one and one fourth percent of risk weighted assets. 12 month expected credit loss (ECL) allowances for financial instruments i.e. where the credit risk has not increased significantly since initial recognition, shall be included under general provisions and loss reserves in Tier II capital within the limits specified by extant regulations. Lifetime ECL shall not be reckoned for regulatory capital (numerator) while it shall be reduced from the risk weighted assets.

(d) hybrid debt capital instruments; and

(e) subordinated debt to the extent the aggregate does not exceed Tier I capital.

Aggregate Risk Weighted Assets -

Under RBI Guidelines, degrees of credit risk expressed as percentage weightages have been assigned to each of the on-balance sheet assets and off- balance sheet assets. Hence, the value of each of the on-balance sheet assets and off-balance sheet assets requires to be multiplied by the relevant risk weights to arrive at risk adjusted value of assets. The aggregate shall be taken into account for reckoning the minimum capital ratio.

37. The Previous year’s figures have been regrouped / rearranged / reclassified wherever necessary. Amounts and other disclosures for the preceding financial year are included as an integral part of current year’s financial statements.

As per our report of even date For & On Behalf of Board

For R S R V & Associates Sd/- Sd/-

Chartered Accountants Ankur Agrawal Apeksha Kadam

FRN : 115691W Managing Director Director

DIN : 06408167 DIN : 08878724

Sd/- Sd/- Sd/-

Ajay Sundaria Nishi Shah Pravin Gupta

Partner Company Secretary Chief Financial Officer

M. No.181133

Mumbai, April 25, 2024

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Mar 31, 2015

1. Detailed note on the terms of the rights, preferences and restrictions relating to each class of shares including restrictions on the distribution of dividends and repayment of capital.

i) The Company has only one class of Equity Shares having a par value of Rs. 1/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.

ii) In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity shares held by the shareholders.

2. Detailed note on shares reserved to be issued under options and contracts / commitment for the sale of shares / divestments including the terms and conditions.

The company does not have any such contract / commitment as on reporting date.

3. Detailed terms of any securities convertible into shares, e.g. in the case of convertible warrants, debentures, bonds etc.

The company does not have any securities convertible into shares as on reporting date.

4. Amounts due to Micro, Small and Medium Enterprises:

Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosures are required to be made related to micro, small and medium enterprise. The company does not have any transactions with such entities.

5. Amortisation of Preliminery expenses

The Company had incurred some expenses on account of Increase in Authorised Capital and in connection with the Right Issue of Equity Shares which were treated as Preliminary expenses in the books of Accounts till 31 March 2013 (Rs.14,69,675/-) and no such expenses were written off in the books of Accounts. However, the management has framed a policy of Amortising the above Preliminary expenses over a period of 5 years starting from the financial year 2013-14.

6. Exceptional Item

The Company has revised its policy of providing depreciation on fixed assets effective 1 April, 2014. Depreciation is now provided based on the revised remaining useful life of each asset which has been revised based on an evaluation by the management. The carrying amount of each asset as on 1 April, 2014 is depreciated over the revised remaining useful life. As a result of these changes, the depreciation charge for the year ended 31 March, 2015 of Rs. 48,719 is higher by Rs. 20,494 and the effect relating to the period prior to 1 April, 2014 is Rs. 7,039 which has been shown as an 'Exceptional Item'. Accordingly, depreciation and amortisation expense for the year ended 31 March, 2015 aggregates to Rs. 41,680.

7. NOTES TO ACCOUNTS:

1. In the opinion of the Board of Directors, the Current Assets, Loans & Advances have realizable value in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and the same has been certified by the Board of Directors.

2. Legal Disputes in Projects undertaken by the company:

(i) Company has entered into a Development Agreement with M/s. Krishna Sagar Builders Ltd. to develop a property situated at Charkop Village, Kandivali (West) admeasuring total area of 1138.78 Sq. Mtrs (Developable Area: 984.90 Sq Mtrs) the total amount incurred on the said project is Rs. 446.62 Lacs as on 31st March, 2015 which is under Legal Dispute.

(ii) The company has entered into a Joint Venture Agreement with M/s. Krishna Developers through its proprietor Mr. Rajiv Kashyap to develop the property situated at CTS No.484 at Gulmohar Road, Juhu, Mumbai the total amount incurred on the said project is Rs. 147.45 Lacs as on 31st March, 2015, which is also under Dispute but the company has made a recovery of Rs. 50.70 Lacs in the year 2013 so the net amount incurred on the said project is Rs.96.75 Lacs as on 31st March 2015.

8. Related Parties Disclosure:

(i) As per Accounting Standard on 'Related Party Disclosure" (AS 18), the related parties of the company as at March 31,2015 are as follows:

(a) Wholly Owned Subsidiary Company : N.A.

(b) Promoter Group/ Holding Company :

M/s. Bhrarosemand Commodities Pvt Ltd. Promoter Group

(c ) Key Management Personal :

Ms. Alka Lath Whole Time Director

9. Balances of Sundry Debtors, Sundry Creditors, Advances received and recoverable are subject to confirmation and reconciliation, if any from the respective parties.

10. Previous years figures have been regrouped/ rearranged and reclassified wherever necessary to make them comparable with current year figures.

11. Identification of accounts relating to small industrial undertaking, information for determining the particulars relating to current indebtedness of such undertaking as required under Schedule III Part I of the Company Act, 2013 are not applicable to this company.

12. All the other information's as required under paragraph 3, 4A, 4B, 4C & 4D of part II of Schedule III of the Companies Act, 2013 is either Nil or Not Applicable to the Company.

13. Calculation of Deferred Tax:

Provision for income tax has been made as per the existing provision of the Income Tax, 1961 and as required by Accounting standard AS-22 relating to 'Accounting for taxes on income" issued by the Institute of Chartered Accountants of India, the provision of deferred tax liability, has been made in respect of difference between books depreciation and income tax depreciation, as under:-

14. Contingent liabilities:

There is no contingent liability in the opinion of the Management.

15. Changes after Date of Balance Sheet:

There is no material change occurred after the date of Balance Sheet till date of audit affecting the financial statements as on 31.03.2015.

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Mar 31, 2014

1. In the opinion of the Board of Directors, the Current Assets, Loans & Advances have realizable value in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and the same has been certifies by the Board of Directors.

2. Legal Disputes in Projects undertaken by the company:

(i) Company has entered into a Development Agreement with M/s. Krishna Sagar Builders Ltd. to develop a property situated at Charkop Village, Kandivali (West) admeasuring total area of 1138.78 Sq. Mtrs (Developable Area: 984.90 Sq Mtrs) the total amount incurred on the said project is RS. 446.62 Lacs as on 31st March, 2014 which is under Legal Dispute.

(i) The company has entered into a Joint Venture Agreement with M/s. Krishna Developers through its proprietor Mr. Rajiv Kashyap to develop the property situated at CTS No.484 at Gulmohar Road, Juhu, Mumbai the total amount incurred on the said project is RS. 147.45 Lacs as on 31st March, 2014, which is also under Dispute but the company has made a recovery of RS. 50.70 Lacs in the year 2013 so the net amount incurred on the said project is RS.96.75 Lacs as on 31st March 2014.

3. Related Parties Disclosure:

(i) As per Accounting Standard on "Related Party Disclosure" (AS 18), the related parties of the company as at March 31,2014 are as follows:

(a) Wholly Owned Subsidiary Company: N.A.

(b) Promoter Group/ Holding Company:

* M/s. Bhrarosemand Commodities Pvt Ltd.

(c) Key Management Personal :

* Mr. KailashChandra Sharma - Managing Director

5. Balances of Sundry Debtors, Sundry Creditors, Advances received and recoverable are subject to confirmation and reconciliation, if any from the respective parties.

6. Previous years figures have been regrouped/ rearranged and reclassified wherever necessary to make them comparable with current year figures.

7. Identification of accounts relating to small industrial undertaking, information for determining the particulars relating to current indebt ness of such undertaking as required under Schedule IV Part I of the Company Act, 1956 are not applicable to this company.

8. All the other information''s as required under paragraph 3, 4A, 4B, 4C & 4D of part II of Schedule VI of the Companies Act, 1956 is either Nil or Not Applicable to the Company.

(b) Detailed note on the terms of the rights, preferences and restrictions relating to each class of shares including restrictions on the distribution of dividends and repayment of capital.

i) The Company has only one class of Equity Shares having a par value of RS. 1/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.

ii) In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity shares held by the shareholders.

(e) Detailed note on shares reserved to be issued under options and contracts / commitment for the sale of shares / divestments including the terms and conditions.

The company does not have any such contract / commitment as on reporting date.

(f) Detailed terms of any securities convertible into shares, e.g. in the case of convertible warrants, debentures, bonds etc.

The company does not have any securities convertible into shares as on reporting date.

9. Amounts due to Micro, Small and Medium Enterprises:

Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosures are required to be made related to micro, small and medium enterprise. The company does not have any transactions with such entities.

10. Previous year figures

The figures of the previous year have been re-arranged, re-grouped and re- classified wherever necessary.

11. Amortisation of Preliminery expenses

The Company had incurred some expenses on account of Increase in Authorised Capital and in connection witth the Right Issue of Equity Shares which were treated as Preliminary expenses in the books of Accounts till 31 March 2013 (RS.14,69,675/-) and no such expenses were written off in the books of Accounts. However, the management has framed a policy of Amortising the above Preliminary expenses over a period of 5 years starting from this year.

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Mar 31, 2013

Note 1 - Amounts due to Micro, Small and Medium Enterprises:

Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosures are required to be made related to micro, small and medium enterprise. The company does not have any transactions with such entities.

Note 2-Previous year fgures

The fgures of the previous year have been re-arranged, re-grouped and re- classifed wherever necessary.

3. In the opinion of the Board of Directors, the Current Assets, Loans & Advances have realizable value in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and the same has been certifes by the Board of Directors.

4. Legal Disputes in Project undertaken by the company :

(i) Company has entered into a Development Agreement with M/s. Krishna Sagar Builders Ltd. in the previous year to develop a property situated at Charkop Village, Kandivali (West) admeasuring total area of 1138.78 Sq. Mtrs (Developable Area: 984.90 Sq Mtrs) the total amount incurred on the said project is Rs. 446.62 Lacs as on 31st March, 2013 which under legal dispute.

(ii) The company has entered into a Joint Venture Agreement with M/s. Krishna Developers through its proprietor Mr. Rajiv Kashyap to develop the property situated at CTS No.484 at Gulmohar Road, Juhu, Mumbai the total amount incurred on the said project was Rs. 145.20 Lacs as on 31st March, 2012 which is also under dispute but in the year 2013 a recovery of Rs. 51.70 Lacs made agaist this project so the net amount incurred on the said project is Rs. 93.5 Lacs as on 31st March,2013.

5. Related Parties Disclosure:

(i) As per Accounting Standard on "Related Party Disclosure” (AS 18), the related parties of the company as at March 31, 2013 are as follows:

(a) Wholly Owned Subsidiary Company: N.A.

(b) Promoter Group/ Holding Company:

- M/s. Bhrosemand Commodities Pvt Ltd.

(c) Key Management Personal :

- Mr. KailashChand Sharma - Managing Director

- Mr . Nalin Panchal - Excutive Director*

6. Balances of Sundry Debtors, Sundry Creditors, Advances received and recoverable are subject to confrmation and reconciliation, if any from the respective parties.

7. Previous years fgures have been regrouped/ rearranged and reclassifed wherever necessary to make them comparable with current year fgures.

8. Identifcation of accounts relating to small industrial undertaking, information for determining the particulars relating to current indebt ness of such undertaking as required Under Schedule IV Part I of the Company Act, 1956 are not applicable to this company.

9. All the other information''s as required under paragraph 3, 4A, 4B, 4C & 4D of part II of Schedule VI of the Companies Act, 1956 is either Nil or Not Applicable to the Company.

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Mar 31, 2012

1. In the opinion of the Board of Directors, the Current Assets, Loans & Advances have realizable value in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and the same has been certified by the Board of Directors

2. New Project undertaken during the Year :

(i) Company has entered into a Development Agreement with M/s. Krishna Sagar Builders Ltd. to develop a property situated at Charkop Village, Kandivali (West) admeasuring total area of 1138.78 Sq. Mtrs (Developable Area: 984.90 Sq Mtrs) the total amount incurred on the said project is Rs. 441.62 Lacs as on 31st March, 2012.

(ii) The company has entered into a Joint Venture Agreement with M/s. Krishna Developers through its proprietor Mr. Rajiv Kashyap to develop the property situated at CTS No.484 at Gulmohar Road, Juhu, Mumbai the total amount incurred on the said project is Rs. 145.20 Lacs as on 31 st March, 2012.

(iii) Company has entered into contract with various parties to construct the Row Houses at Bombay Hospital Road, Indore. Income from completed Row Houses sold during the year was Rs. 41.89 Lacs which are accounted in this year.

(iv) Company has undertaken infrastructure projects for Road works. Income from these contracts during the year was Rs. 54.02 Lacs.

4. Balances of Sundry Debtors, Sundry Creditors, Advances received and recoverable are subject to confirmation and reconciliation, if any from the respective parties.

5. Previous years figures have been regrouped/ rearranged and reclassified wherever necessary to make them comparable with current year figures.

6. Identification of accounts relating to small industrial undertaking, information for determining the particulars relating to current indebtness of such undertaking as required Under Schedule IV Part I of the Companies Act, 1956 are not applicable to this company.

7. All the other information's as required under paragraph 3,4A, 4B, 4C & 4D of part II of Schedule VI of the Companies Act, 1956 is either Nil or Not Applicable to the Company.

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Mar 31, 2011

1. In the opinion of the Board of Directors, the Current Assets, Loans & Advances have realizable value in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and the same has been certifes by the Board of Directors.

2. Income from operation amounting to Rs.52,958,250/- (TDS Rs.4,22,765/-) is net of payment.

4. New Project undertaken during the Year :

(i) Company has entered into a Development Agreement with M/s. Krishna Sagar Builders Ltd. to develop a property situated at Charkop Village, Kandivali (West) admeasuring total area of 1138.78 Sq. Mtrs (Developable Area: 984.90 Sq Mtrs) against which company has paid Rs.423.68 Lacs till 31st March, 2011 which has been shown under the head Project under Development.

(ii) The company has entered into a Joint Venture Agreement with M/s. Krishna Developers through its proprietor Mr. Rajiv Kashyap to develop the property situated at CTS No.484 at Gulmohar Road, Juhu, Mumbai. against which company has paid Rs.138.50 Lacs till 31st March, 2011 which has been shown under the head Project under Development.

(iii) Company has entered into contract with various parties to construct the Row Houses at Bombay Hospital Road, Indore. Income from completed Row Houses sold during the year was Rs. 3,18,20,000 which are accounted in this year.

(iv) Company has undertaken infrastructure projects for Road works. Income from these contracts during the year was Rs. 2,11,38,250.

7. Related Parties Disclosure:

(i) As per Accounting Standard on "Related Party Disclosure" (AS 18), the related parties of the company as at March 31, 2011 are as follows:

(a) Wholly Owned Subsidiary Company: N.A.

(b) Promoter Group/ Holding Company:

- M/s. Bhrosemand Commodities Pvt Ltd.

(c) Key Management Personal :

- Mr. Kailash C Sharma - Managing Director

- Mr. Nalin Kumar Panchal - Executive Director

8. Balances of Sundry Debtors, Sundry Creditors, Advances received and recoverable are subject to confrmation and reconciliation, if any from the respective parties.

9. Previous years fgures have been regrouped/ rearranged and reclassifed wherever necessary to make them comparable with current year fgures.

10. Identifcation of accounts relating to small industrial undertaking, information for determining the particulars relating to current indebt ness of such undertaking as required Under Schedule IV Part I of the Company Act, 1956 are not applicable to this company.

11. Information about Business Segments:

In accordance with the requirement of Accounting Standard 17 (AS 17) "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Company has identifed two distinguishable primary business segments as under:

a) Media Services

b) Infrastructure & Construction Activities

These segments have been identifed because management perceives that these two businesses are subject to different risks and returns.

The assets used in the Companys business or liabilities which has been classifed under unallocable are the assets and liabilities which have not been identifed to any of the reportable segments as the same are used interchangeably bweetn segments and as such it is not practicable to allocate such assets or liabilities to segments and provide segments disclosures in relation to total assets and liabilities.

12. All the other informations as required under paragraph 3, 4A, 4B, 4C & 4D of part II of Schedule VI of the Companies Act, 1956 is either Nil or Not Applicable to the Company.