Accounting Policies of Moneyboxx Finance Ltd. Company

Mar 31, 2025

2. Significant Accounting Policies

A. Cash and cash equivalents

Cash, Cash equivalents and bank balances include fixed
deposits, (with an original maturity of three months or less
from the date of placement), margin money deposits, and
earmarked balances with banks are carried at amortised cost.
Short term and liquid investments which are not subject to
more than insignificant risk of change in value, are -included
as part of cash and cash equivalents.

B. Financial Instruments

A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity. Financial assets and financial
liabilities are recognized when the entity becomes a party to
the contractual provisions of the instruments.

Financial Assets

Initial Measurement and recognition

Financial assets are initially recognized on the trade date, i.e.,
the date that the Company becomes a party to the contractual
provisions of the instrument. The classification of financial
instruments at initial recognition depends on their purpose
and characteristics and the management''s intention when
acquiring them.All financial assets (not measured subsequently
at fair value through profit or loss) are recognized initially at
fair value plus transaction costs that are attributable to the
acquisition of the financial asset.

Subsequent measurement

For the purpose of subsequent measurement, financial assets
are classified in the following categories:

- Loan Portfolio at amortized cost

- Loan Portfolio at fair value through other comprehensive
income (FVOCI)

- Equity instruments and mutual funds
Loan Portfolio at amortized cost:

Loan Portfolio is subsequently measured at amortized
cost where:

- contractual terms that give rise to cash flows on specified
dates, that represent solely payments of principal and
interest (SPPI) on the principal amount outstanding; and

- are held within a business model whose objective is
achieved by holding to collect contractual cash flows.

After initial measurement, these financial assets are
subsequently measured at amortized cost using the effective

interest rate (EIR) method less impairment. Amortized cost
is calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortization is included in finance income
in the profit or loss. The losses arising from impairment are
recognized in the statement of profit and loss.

The measurement of credit impairment is based on the
three-stage expected credit loss model described in Note:
Impairment of financial assets.

Loan Portfolio at FVOCI:

Loan Portfolio is subsequently measured at FVOCI where:

- contractual terms that give rise to cash flows on specified
dates, that represent solely payments of principal and
interest (SPPI) on the principal amount outstanding; and

- the financial asset is held within a business model where
objective is achieved by both collecting contractual cash
flows and selling financial assets.

Loans included within the FVTOCI category are measured
initially as well as at each reporting date at fair value. Fair value
movements are recognized in the other comprehensive income
(OCI). However, the Company recognizes interest income,
impairment losses & reversals and foreign exchange gain or
loss in the statement of profit and loss. On de-recognition of
the asset, cumulative gain or loss previously recognized in OCI
is reclassified from the equity to the statement of profit and
loss. Interest earned whilst holding FVTOCI debt instrument
is recognized as interest income using the EIR method.

Equity instruments and Mutual Funds

Equity instruments and mutual funds included within the
FVTPL category are measured at fair value with all changes
recognized in the Statement of profit and loss.

Financial liabilities
Initial Measurement

Financial liabilities are classified and measured at amortized
cost. All financial liabilities are recognized initially at fair value
and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs. The Company''s
financial liabilities include trade and other payables, loans
and borrowings including bank overdrafts and derivative
financial instruments.

Subsequent Measurement

Financial liabilities are subsequently carried at amortized cost
using the effective interest method.

De-recognition of financial assets and financial liabilities
Financial Assets

A financial asset (or, where applicable, a part of a financial asset
or part of a group of similar financial assets) is de-recognized
when the rights to receive cash flows from the financial asset
have expired. The Company also de-recognizes the financial
asset if it has transferred the financial asset and the transfer
qualifies for de-recognition.

The Company has transferred the financial asset if, and only
if, either:

- It has transferred its contractual rights to receive cash
flows from the financial asset.

or

- It retains the rights to the cash flows, but has assumed
an obligation to pay the received cash flows in full
without material delay to a third party under a ''pass¬
through'' arrangement.

Pass-through arrangements are transactions whereby the
Company retains the contractual rights to receive the cash
flows of a financial asset (the ''original asset''), but assumes a
contractual obligation to pay those cash flows to one or more
entities (the ''eventual recipients''), when all of the following
three conditions are met:

- The Company has no obligation to pay amounts to the
eventual recipients unless it has collected equivalent
amounts from the original asset, excluding short-term
advances with the right to full recovery of the amount
lent plus accrued interest at market rates.

- The Company cannot sell or pledge the original asset
other than as security to the eventual recipients.

- The Company has to remit any cash flows it collects on
behalf of the eventual recipients without material delay.

In addition, the Company is not entitled to reinvest such cash
flows, except for investments in cash or cash equivalents
including interest earned, during the period between the
collection date and the date of required remittance to the
eventual recipients.A transfer only qualifies for de-recognition
if either:

- The Company has transferred substantially all the risks
and rewards of the asset

or

- The Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but
has transferred control of the asset.

The Company considers control to be transferred if and only
if, the transferee has the practical ability to sell the asset in its
entirety to an unrelated third party and is able to exercise that
ability unilaterally and without imposing additional restrictions
on the transfer. When the Company has neither transferred
nor retained substantially all the risks and rewards and has
retained control of the asset, the asset continues to be
recognized only to the extent of the Company''s continuing
involvement, in which case, the Company also recognizes an
associated liability. The transferred asset and the associated
liability are measured on a basis that reflects the rights and
obligations that the Company has retained.

On derecognition of a financial asset in its entirety, the
difference between: (a) the carrying amount (measured
at the date of derecognition) and (b) the consideration
received (including any new asset obtained less any new
liability assumed) is recognized in the statement of profit or
loss account.

Financial Liabilities

Financial liability is de-recognized when the obligation under
the liability is discharged, cancelled or expires. Where an
existing financial liability is replaced by another from the same
lender on substantially different terms or the terms of an
existing liability are substantially modified, such an exchange
or modification is treated as a de-recognition of the original
liability and the re-cognition of a new liability. The difference in
the respective carrying amounts is recognized in the statement
of profit and loss.

C. Fair value measurement

The Company measures financial instruments at fair value at
each balance sheet date using various valuation techniques.

Fair value is the price at the measurement date, at which
an asset can be sold or paid to transfer a liability, in an
orderly transaction between market participants at the
measurement date.

The Company''s accounting policies require, measurement
of certain financial instruments at fair values (either on
a recurring or non-recurring basis). Also, the fair values of
financial instruments measured at amortized cost are required
to be disclosed in the said standalone financial statements.

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

All assets and liabilities for which fair value is measured or
disclosed in the standalone financial statements are categorized
within the fair value hierarchy described as follows:

Level 1 financial instruments - Those where the inputs used
in the valuation are unadjusted quoted prices from active
markets for identical assets or liabilities that the Company has
access to at the measurement date. The Company considers
markets as active only if there are sufficient trading activities
with regards to the volume and liquidity of the identical assets
or liabilities and when there are binding and exercisable price
quotes available on the balance sheet date.

Level 2 financial instruments - Those where the inputs that are
used for valuation and are significant, are derived from directly
or indirectly observable market data available over the entire
period of the instrument''s life.

Level 3 financial instruments - include one or more
unobservable input where there is little market activity for
the asset/liability at the measurement date that is significant
to the measurement as a whole.

D. Property, plant, and equipment

i. Recognition and measurement

Property, plant and equipment are stated at cost, net of
accumulated depreciation and accumulated impairment
losses, if any. The cost comprises purchase price, directly
attributable cost of bringing the asset to its working
condition for the intended use and initial estimate of
decommissioning, restoring and similar liabilities. Any
trade discounts and rebates are deducted in arriving at
the purchase price.

ii. Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable
that the future economic benefits associated with the
expenditure will flow to the company.

iii. Depreciation

Depreciation on property, plant and equipment (except
motor vehicles) is provided on straight line method at
estimated useful life, which is in line with the estimated
useful life as specified in Schedule II of the Companies
Act, 2013.

The Company uniformly estimates a five percent residual value
for all these assets. Items costing less than '' 5,000 are fully
depreciated in the year of purchase. Depreciation is pro-rated
in the year of acquisition as well as in the year of disposal.

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

E. Other intangible assets

Software and system development expenditure are capitalized
at cost of acquisition including cost attributable to readying the
asset for use. Such intangible assets are subsequently measured
at cost less accumulated amortization and any accumulated
impairment losses. The useful life of these intangible assets is
estimated at 3 years with zero residual value.Any expenses on
such software for support and maintenance payable annually
are charged to the statement of profit and loss.

F. Impairment of financial assets

The Company applies the ECL model in accordance with Ind-
AS 109 for recognizing impairment loss on financial assets.
The ECL allowance is based on the credit losses expected to
arise from all possible default events over the expected life
of the financial asset (‘lifetime ECL'') unless there has been
no significant increase in credit risk since origination. ECL is
calculated on a collective basis, considering the retail nature
of the underlying portfolio of financial assets.

The impairment methodology applied depends on whether
there has been a significant increase in credit risk. When
determining whether the risk of default on a financial asset
has increased significantly since initial recognition, the
Company considers reasonable and supportable information
that is relevant and available without undue cost or effort.
This includes both quantitative and qualitative information
and analysis based on a provision matrix which takes into
account the Company''s historical credit loss experience,
current economic conditions, forward-looking information
and scenario analysis. The expected credit loss is a product
of exposure at default (‘EAD''), probability of default (‘PD'')
and loss given default (‘LGD''). The Company has evaluated
the PD and LGD based on the management''s best estimate in
accordance with Ind-AS 109.

G. Finance Cost

Finance costs represent interest expense recognised by
applying the Effective Interest Rate (EIR) to the gross carrying
amount of financial liabilities other than financial liabilities
classified as FVTPL.

The EIR in case of a financial liability is computed:

- At the rate that exactly discounts estimated future
cash payments through the expected life of the financial
liability to the gross carrying amount of the amortised
cost of a financial liability.

- By considering all the contractual terms of the financial
instrument in estimating the cash flows.

- Including all fees paid between parties to the contract
that are an integral part of the effective interest rate,
transaction costs, and all other premiums or discounts.

Any subsequent changes in the estimation of the future
cash flows are recognised in interest expense with the
corresponding adjustment to the carrying amount of the
financial liability. Interest expense includes issue costs that
are initially recognised as part of the carrying value of the
financial liability and amortised over the expected life using the
effective interest method.These include fees and commissions
payable to advisers and other expenses such as external legal
costs, rating fee etc, provided these are incremental costs that
are directly related to the issue of a financial liability.

H. Write Offs

The gross carrying amount of a financial asset is written
off (either partially or in full) to the extent that there is no
reasonable expectation of recovering the asset in its entirety
or a portion thereof. This is generally the case when the
Company determines that the borrower does not have assets
or sources of income that could generate sufficient cash flows
to repay the amounts subjected to write-offs.

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Mar 31, 2024

2. Significant Accounting Policies

A. Cash and cash equivalents

Cash, Cash equivalents and bank balances include fixed deposits, (with an original maturity of three months or less from the date of placement), margin money deposits, and earmarked balances with banks are carried at amortised cost. Short term and liquid investments which are not subject to more than insignificant risk of change in value, are -included as part of cash and cash equivalents.

B. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognized when the entity becomes a party to the contractual provisions of the instruments.

Financial Assets

Initial Measurement and recognition

Financial assets are initially recognized on the trade date, i.e., the date that the Company becomes a party to the contractual provisions of the instrument. The classification of financial instruments at initial recognition depends on their purpose and characteristics and the management''s intention when acquiring them.All financial assets (not measured subsequently at fair value through profit or loss) are recognized initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

For the purpose of subsequent measurement, financial assets are classified in the following categories:

- Loan Portfolio at amortized cost

- Loan Portfolio at fair value through other comprehensive income (FVOCI)

- Equity instruments and mutual funds

Loan Portfolio at amortized cost:

Loan Portfolio is subsequently measured at amortized cost where:

- contractual terms that give rise to cash flows on specified dates, that represent solely payments of principal and interest (SPPI) on the principal amount outstanding; and

- are held within a business model whose objective is achieved by holding to collect contractual cash flows.

After initial measurement, these financial assets are subsequently measured at amortized cost using the effective

interest rate (EIR) method less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the statement of profit and loss.

The measurement of credit impairment is based on the three-stage expected credit loss model described in Note: Impairment of financial assets.

Loan Portfolio at FVOCI:

Loan Portfolio is subsequently measured at FVOCI where:

- contractual terms that give rise to cash flows on specified dates, that represent solely payments of principal and interest (SPPI) on the principal amount outstanding; and

- the financial asset is held within a business model where objective is achieved by both collecting contractual cash flows and selling financial assets.

Loans included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the statement of profit and loss. On de-recognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to the statement of profit and loss. Interest earned whilst holding FVTOCI debt instrument is recognized as interest income using the EIR method.

Equity instruments and Mutual Funds Equity instruments and mutual funds included within the FVTPL category are measured at fair value with all changes recognized in the Statement of profit and loss.

Financial liabilities Initial Measurement

Financial liabilities are classified and measured at amortized cost. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and derivative financial instruments.

Subsequent Measurement

Financial liabilities are subsequently carried at amortized cost using the effective interest method.

De-recognition of financial assets and financial liabilities Financial Assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is de-recognized when the rights to receive cash flows from the financial asset have expired. The Company also de-recognizes the financial asset if it has transferred the financial asset and the transfer qualifies for de-recognition.

The Company has transferred the financial asset if, and only if, either:

- It has transferred its contractual rights to receive cash flows from the financial asset.

or

- It retains the rights to the cash flows, but has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''passthrough'' arrangement.

Pass-through arrangements are transactions whereby the Company retains the contractual rights to receive the cash flows of a financial asset (the ''original asset''), but assumes a contractual obligation to pay those cash flows to one or more entities (the ''eventual recipients''), when all of the following three conditions are met:

- The Company has no obligation to pay amounts to the eventual recipients unless it has collected equivalent amounts from the original asset, excluding short-term advances with the right to full recovery of the amount lent plus accrued interest at market rates.

- The Company cannot sell or pledge the original asset other than as security to the eventual recipients.

- The Company has to remit any cash flows it collects on behalf of the eventual recipients without material delay.

In addition, the Company is not entitled to reinvest such cash flows, except for investments in cash or cash equivalents including interest earned, during the period between the collection date and the date of required remittance to the eventual recipients.A transfer only qualifies for de-recognition if either:

- The Company has transferred substantially all the risks and rewards of the asset

or

- The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

The Company considers control to be transferred if and only if, the transferee has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without imposing additional restrictions on the transfer. When the Company has neither transferred nor retained substantially all the risks and rewards and has retained control of the asset, the asset continues to be recognized only to the extent of the Company''s continuing involvement, in which case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

On derecognition of a financial asset in its entirety, the difference between: (a) the carrying amount (measured at the date of derecognition) and (b) the consideration received (including any new asset obtained less any new liability assumed) is recognized in the statement of profit or loss account.

Financial Liabilities

Financial liability is de-recognized when the obligation under the liability is discharged, cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-recognition of the original liability and the re-cognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit and loss.

C. Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date using various valuation techniques.

Fair value is the price at the measurement date, at which an asset can be sold or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

The Company''s accounting policies require, measurement of certain financial instruments at fair values (either on a recurring or non-recurring basis). Also, the fair values of financial instruments measured at amortized cost are required to be disclosed in the said standalone financial statements.

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

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorized within the fair value hierarchy described as follows:

Level 1 financial instruments - Those where the inputs used in the valuation are unadjusted quoted prices from active markets for identical assets or liabilities that the Company has access to at the measurement date. The Company considers markets as active only if there are sufficient trading activities with regards to the volume and liquidity of the identical assets or liabilities and when there are binding and exercisable price quotes available on the balance sheet date.

Level 2 financial instruments - Those where the inputs that are used for valuation and are significant, are derived from directly or indirectly observable market data available over the entire period of the instrument''s life.

Level 3 financial instruments ? include one or more unobservable input where there is little market activity for the asset/liability at the measurement date that is significant to the measurement as a whole.

D. Property, plant, and equipment

i. Recognition and measurement

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, directly attributable cost of bringing the asset to its working condition for the intended use and initial estimate of decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the purchase price.

ii. Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the company.

iii. Depreciation

Depreciation on property, plant and equipment (except motor vehicles) is provided on straightline method at estimated useful life, which is in line with the estimated useful life as specified in Schedule II of the Companies Act, 2013.

The Company uniformly estimates a five percent residual value for all these assets. Items costing less than '' 5,000 are fully depreciated in the year of purchase. Depreciation is pro-rated in the year of acquisition as well as in the year of disposal.

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

E. Other intangible assets

Software and system development expenditure are capitalized at cost of acquisition including cost attributable to readying the asset for use. Such intangible assets are subsequently measured at cost less accumulated amortization and any accumulated impairment losses. The useful life of these intangible assets is estimated at 3 years with zero residual value.Any expenses on such software for support and maintenance payable annually are charged to the statement of profit and loss.

F. Impairment of financial assets

The Company applies the ECL model in accordance with Ind-AS 109 for recognizing impairment loss on financial assets. The ECL allowance is based on the credit losses expected to arise from all possible default events over the expected life of the financial asset (‘lifetime ECL'') unless there has been no significant increase in credit risk since origination. ECL is calculated on a collective basis, considering the retail nature of the underlying portfolio of financial assets.

The impairment methodology applied depends on whether there has been a significant increase in credit risk. When determining whether the risk of default on a financial asset has increased significantly since initial recognition, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on a provision matrix which takes into account the Company''s historical credit loss experience, current economic conditions, forward-looking information and scenario analysis. The expected credit loss is a product of exposure at default (‘EAD''), probability of default (‘PD'') and loss given default (‘LGD''). The Company has evaluated the PD and LGD based on the management''s best estimate in accordance with Ind-AS 109.

G. Finance Cost

Finance costs represent interest expense recognised by applying the Effective Interest Rate (EIR) to the gross carrying amount of financial liabilities other than financial liabilities classified as FVTPL.

The EIR in case of a financial liability is computed:

- At the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to the gross carrying amount of the amortised cost of a financial liability.

- By considering all the contractual terms of the financial instrument in estimating the cash flows.

- Including all fees paid between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts.

Any subsequent changes in the estimation of the future cash flows are recognised in interest expense with the corresponding adjustment to the carrying amount of the financial liability. Interest expense includes issue costs that are initially recognised as part of the carrying value of the financial liability and amortised over the expected life using the effective interest method.These include fees and commissions payable to advisers and other expenses such as external legal costs, rating fee etc, provided these are incremental costs that are directly related to the issue of a financial liability.

H. Write Offs

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no reasonable expectation of recovering the asset in its entirety or a portion thereof. This is generally the case when the Company determines that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subjected to write-offs.

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Mar 31, 2023

Note No. 1 CORPORATE INFORMATION

Moneyboxx Finance Limited an Indian Company incorporated on November 16, 1994, under the provisions of Companies Act, 1956, having its registered office at New Delhi.The Company is registered with the Reserve Bank of India (“RBI”) as a Non-Systemically Important Non-Deposit Taking Non-Banking Financial Company (NBFC) and the Company is also listed on Main Board of Bombay Stock Exchange Ltd. (BSE), Mumbai.

The Company is engaged in lending and allied activities. The Company focuses on small and medium-sized enterprises (SME) lending, commercial lending, and value-added services.

Note No. 2 STATEMENTS OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PREPARATION OF FINANCIAL STATEMENTS

1. Compliance with IND-AS

The financial statements of the Company comply in all material aspects with Indian Accounting Standards (‘Ind-AS'') notified under Section 133 of the Companies Act, 2013 (‘the Act'') read with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant provisions of the Act. Any directions issued by the RBI or other regulators are implemented as and when they become applicable.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to the existing accounting standard requires a change in the accounting policy hitherto in use.

2. Presentation of financial statements

The Balance Sheet and the Statement of Profit and Loss are presented in the format prescribed under Division III of Schedule III of the Act, as amended from time to time, for Non-Banking Financial Companies (‘NBFCs'') that are required to comply with Ind-AS.The Statement of Cash Flows has been presented as per the requirements of Ind-AS 7 Statement of Cash Flows.

3. Basis of preparation

The financial statements have been prepared under the historical cost convention on the accrual basis except for certain financial instruments and plan assets of defined benefit plans, which are measured at fair values at the end of each reporting period as explained in the accounting policies below. All amounts disclosed in the financial statements and notes have been rounded off to the nearest INR in compliance with Schedule III of the Act, unless otherwise stated.

4. Use of Estimates

The preparation of financial statements in conformity with Ind-AS requires management to make estimates, judgements

and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities (including contingent liabilities) and disclosures as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from these estimates. Accounting estimates and underlying assumptions are reviewed on an ongoing basis and could change from period to period. Appropriate changes in estimates. are recognized in the periods in which the Company becomes aware of the changes in circumstances surrounding the estimates. Any revisions to accounting estimates are recognized prospectively in the period in which the estimate is revised and future periods. The estimates and judgements that have a significant impact on the carrying amount of assets and liabilities at each balance sheet date.

5. Date of recognition of Financial Instruments

Financial assets and financial liabilities are recognized in the Company''s balance sheet when the Company becomes a party to the contractual provisions of the instrument.

6. Impairment of financial assets

The Company applies the ECL model in accordance with Ind-AS 109 for recognizing impairment loss on financial assets. The ECL allowance is based on the credit losses expected to arise from all possible default events over the expected life of the financial asset (‘lifetime ECL'') unless there has been no significant increase in credit risk since origination. ECL is calculated on a collective basis, considering the retail nature of the underlying portfolio of financial assets.

The impairment methodology applied depends on whether there has been a significant increase in credit risk. When determining whether the risk of default on a financial asset has increased significantly since initial recognition, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on a provision matrix which takes into account the Company''s historical credit loss experience, current economic conditions, forward-looking information and scenario analysis. The expected credit loss is a product of exposure at default (‘EAD''), probability of default (‘PD'') and loss given default (‘LGD''). The Company has evaluated the PD and LGD based on the management''s best estimate in accordance with Ind-AS 109.

7. Financial Liabilities

Financial liabilities are measured at amortized cost. The carrying amounts are determined based on the EIR method. Interest expense is recognized in the statement of profit and loss.

account only on receipt of amount in the bank and as such no cheques in hand are taken into consideration.

12. Property, plant, and equipment as per Ind-AS 16

a. Recognition and measurement

Tangible property, plant and equipment are stated at cost less accumulated depreciation and impairment if any.The cost of property, plant and equipment comprise purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Cost of assets not put to use before such date are disclosed under Capital work-in-progress.

We have considered all payments made towards software implementation under Capital work in progress as our software is under implementation.

b. Subsequent expenditure

Subsequent expenditure incurred on assets put to use is capitalized only when it increases the future economic benefits / functioning capability from / of such assets.

c. Depreciation estimated useful lives and residual value.

Depreciation is calculated using the straight-line method to write down the cost of property and equipment to their residual values over their estimated useful lives in the manner prescribed in Schedule II of the Act. The estimated lives used and differences from the lives prescribed under Schedule II are noted in the table below: -

Type of Assets	Estimated useful life as assessed by the Company	Estimated useful life under chedule II of the Act
Computers	3 Years	3 Years
Software & System	3 Years	3 Years
Development
Office Equipment	5 Years	5 Years
Motor Cars	8 Years	8 Years
Furniture & Fixtures	10 Years	10 Years
Leasehold	Tenure of lease	Tenure of lease
Improvements	agreements	agreements

Any gain or loss on de-recognition of financial liabilities is also recognized in the statement of profit and loss.

Undrawn loan commitments are not recorded in the balance sheet.

8. Finance Cost

Finance cost is on account of adoption of Ind AS 116, Leases. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases.

Further the company applied provisions of Ind AS-109 for recognizing borrowing cost.

9. Write Offs

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no reasonable expectation of recovering the asset in its entirety or a portion thereof. 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 write-off.

During the year, the Company has written off the loan assets worth '' 240.07 lakh due to NPAs & '' 6.54 lakh on account of shortfall in insurance in case of death cases during the year.

10. Provisions, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation because of past events, and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

With respect to the Business Correspondence (BC) partnership with Utkarsh Small Finance Bank, the Company has given corporate guarantee of 5% of the amount disbursed under the BC arrangement which amounts to '' 69.91 lakh as of 31st March 2023.

11. Cash and cash equivalents

Cash and cash equivalents include cash at banks and on hand, demand deposits with banks, other short term highly liquid investments with original maturities of three months or less/ more that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. The Company follows the policy of crediting the customer''s

The Company uniformly estimates a five percent residual value for all these assets. Items costing less than '' 5,000 are fully depreciated in the year of purchase. Depreciation is pro-rated in the year of acquisition as well as in the year of disposal.

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

Changes in the expected useful life are accounted for by changing the depreciation period or methodology, as appropriate, and treated as changes in accounting estimates.

13. Other intangible assets

Software and system development expenditure are capitalized at cost of acquisition including cost attributable to readying the asset for use. Such intangible assets are subsequently measured at cost less accumulated amortization and any accumulated impairment losses. The useful life of these intangible assets is estimated at 3 years with zero residual value.Any expenses on such software for support and maintenance payable annually are charged to the statement of profit and loss.

14. Revenue recognition

Revenue (other than for those items to which Ind-AS 109 Financial Instruments is applicable) is measured at fair value of the consideration received or receivable. Amounts disclosed as revenue are net of goods and services tax (‘GST'') and amounts collected on behalf of third parties. Ind-AS 115 Revenue from Contracts with Customers outlines a single comprehensive model of accounting for revenue arising from contracts with customers.

Specific policies for the Company''s different sources of revenue are explained below:

a. Income from lending business Interest Income

Interest income on a financial asset at amortized cost is recognized on a time proportion basis considering the amount outstanding and the effective interest rate (‘EIR’). The EIR is the rate that exactly discounts estimated future cash flows of the financial asset through the expected life of the financial asset or, where appropriate, a shorter period, to the net carrying amount of the financial instrument. The internal rate of return on financial asset after netting off the fees received, and cost incurred approximates the effective interest rate of return for the financial asset. The future cash flows are estimated considering all the contractual terms of the instrument.

The interest income is calculated by applying the EIR to the gross carrying amount of non-credit impaired financial assets (i.e., at the amortized cost of the

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

Other financial charges

Cheque bouncing charges, late payment charges and prepayment charges are recognized on a point-intime basis and are recorded when realized since the probability of collecting such monies is established when the customer pays.

15. Employee Benefits as per Ind AS-19

a. Provident Fund

Retirement benefit in the form of provident fund, is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as an expense when an employee renders the related service.

b. ESIC

The Company''s contribution paid/payable during the year to ESIC are recognized in the statement of profit and loss.

c. Gratuity

The Company operates a defined benefit gratuity plan that provides for gratuity benefit to all employees. The benefit is in the form of lump sum payments to vested employees on resignation, retirement, or death while in employment or on termination of employment, as defined in provisions of Gratuity Act 1972 as amended. Vesting occurs upon completion of four years of service.

The Company creates an appropriate provision for gratuity fund based on the actuarial valuation determined as at the year-end.

The cost of providing benefits under the defined benefit plan is determined using the basis of last drawn qualifying salary.

16. Leases

The Company has adopted Ind-AS 116 - Leases and applied it to all lease contracts entered. Based on the same and as permitted under the specific transitional provisions in the standard, the Company is not required to restate the comparative figures.

All leases are accounted for by recognizing a right-of-use asset and a lease liability except for:

- Leases of low value assets; and

- Leases with a duration of 12 months or less The following policies applied-

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the Company’s incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate.

Right-of-use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:

- initial direct costs incurred; and

- the amount of any provision recognized where the Company is contractually required to dismantle,

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortized on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term.

17. Goods and services tax paid on acquisition of assets or on incurring expenses.

Expenses and assets are recognized net of the goods and services tax paid, except when the tax incurred on a purchase of assets or services is not recoverable from the tax authority, in which case, the tax paid is recognized as part of the cost of acquisition of the asset or as part of the expense item, as applicable.

The net amount of tax recoverable from, or payable to, the tax authority is included as part of receivables or payables, respectively, in the balance sheet.

Further being an NBFC Company, the Company has followed the policy to availed only 50% input credit of GST on all expenses as well as on Capital Goods Purchased and the remaining 50% will be lapsed as per Rule No. 3 of ITC of GST.

18. Income tax

a. Current tax

Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 in respect of taxable income for the year and any adjustment to the tax payable or receivable in respect of previous years.

b. Deferred tax

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

19. Earnings Per Share

The Company reports basic and diluted earnings per equity share as per Ind-AS 33. Basic earnings per equity share have been computed by dividing net profit / loss attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share have been computed by dividing the net profit attributable to the equity shareholders after giving impact of dilutive potential equity shares for the year by the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive.

20. Colending & Business Correspondence Partnership During FY23, the Company entered into Co-lending partnerships with Vivriti Capital Pvt. Ltd. and MAS Financial Services Ltd. and Business Correspondence partnership with Utkarsh Small Finance Bank

Note No. 3 Reporting Segment

As the company is engaged in a single segment i.e., Financial

Activities/Services, hence there is no separate reportable segment

as per Ind AS 108.

Note No. 4 Details of Single Borrower Limits (SBL)/

Group Borrower Limits (GBL) exceeded.

The Company has not exceeded the single borrower limits/group

borrower limits as set as by Reserve Bank of India.

Note No. 5 Details of dues to Micro, Small and Medium Enterprises

As per the information available, the following is the status of MSME parties.

Particulars	31 March 2023	31 March 2022
The principal amount remaining unpaid at the end of the year	--
The Interest Amount remaining unpaid at the end of the year	--
Balance of MSME parties at the end of the year	--

Note No. 6 Capital Management

The primary objective of the Company''s capital management policy is to ensure compliance with regulatory capital requirements. In line with this objective, the Company ensures adequate capital at all the times and manages its business in a way in which capital is protected, satisfactory business growth is ensured, cash flows are monitored, borrowing covenants are honored and ratings are maintained.

Regulatory capital-related information is presented as part of the RBI mandated disclosures. The RBI norms require capital to be maintained at prescribed levels. In accordance with such norms, Tier I capital of the Company comprises of share capital, share premium, reserves and perpetual debt, Tier II capital comprises of subordinated debt and provision on loans that are not credit impaired.There were no changes in the capital management process during the periods presented.

Some Important Ratio Analysis is as follows-
Particulars		31.03.2023		31.03.2022
CRAR (Capital Risk Adequacy Ratio)		30.96%		30.59%
GNPA Ratio (Gross NonPerforming Asset Ratio)		0.83%		0.62%
NNPA Ratio (Net NonPerforming Asset Ratio)		0.42%		0.31%
('' in lakh)
Capital Adequacy (?)	31.03.2023		31.03.2022
Tier I Capital	6962.88		3089.09
Tier II Capital	458.26		552.51
Total Capital	7421.14		3641.60
Risk Weighted Assets	23967.77		11904.90
Tier I Capital Ratio %	29.05%		25.95%
Tier II Capital Ratio %	1.91%		4.64%
Total Capital Adequacy Ratio %	30.96%		30.59%
GNPA Movement as below:
				('' in lakh)
Gross Non-Performing Assets (?)		31.03.2023		31.03.2022
Opening Balance		74.18		13.20
Addition during the year		365.41		156.93
Written off during the year		(240.06)		(95.95)
Closing Balance		199.53		74.18

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Mar 31, 2018

1) Basis of Accounting

These financial statements have been prepared under historical cost convention from books of accounts maintained on an accrual basis (unless otherwise stated hereinafter) in conformity with accounting principles generally accepted in India and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013, of India. The accounting policies applied by the company are consistent with those used in previous year.

2) Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statement and notes thereto. Differences between actual and estimates are recognized in the period in which the results are known/ materialized.

3) Fixed Assets and Depreciation

a) Tangible Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation thereon. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

b) Depreciation

Depreciation on Fixed Assets is provided based on the useful life of the asset in the manner prescribed in Schedule-II to the Companies Act, 2013. Depreciation on Assets acquired/purchased during the year is provided on pro-rata basis according to the period each asset was put to use during the year.

c) Expenditure during construction period for new projects/expansions

Expenditure which are directly attributable to identified assets and incurred during the construction period are included under capital work in progress till the completion of the project. Expenditure which are not directly attributable to an unindentified assets forming part of a project are carried to pre-operative expenses till the completion of the project, On completion of the project, capital work in progress along with pre-operative expenses is carried to respective fixed assets.

4) Inventories

Inventories are valued at cost or net realizable value which-ever is lower. Net realizable value is the estimated selling price in the ordinary course of business less estimated cost necessary to make sale.

5) Revenue recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

a) Sale of Securities

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer.

b) Interest

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. In case of Non Performing Assets, Interest Income is recognized on receipt basis, as per NBFC Prudential norms.

c) Dividend

Revenue is recognized when the shareholders right to receive payment is established by the balance sheet date.

6) Investments

Investments are classified into long-term investments and short-term investments. Investments, which are intended to be held for one year or more, are classified as long-term investments and investments, which are intended to be held for less than one year, are classified as current investments. Long Term Investments & Short Term Investments are carried at cost. No provisions for diminution has been made as in the opinion of the management the diminution are temporary in nature.

7) Retirement and Other Employee benefits

a) Provident Fund

Provision of Provident Fund is not applicable to the company.

b) Gratuity

No provision for gratuity has been made as there is no amount due towards

c) Compensated absences

Unutilized leave of staff lapses as at the year end and is not encashable.

8) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

9) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit & Loss Account.

10) Events Occuring after Balance Sheet Date

Events occurring after Balance Sheet date have been considered in the preparation of financial statements.

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Mar 31, 2015

1) Basis of Accounting

These financial statements have been prepared under historical cost convention from books of accounts maintained on an accrual basis (unless otherwise stated hereinafter) in conformity with accounting principles generally accepted in India and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013, of India. The accounting policies applied by the company are consistent with those used in previous year.

2) Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statement and notes thereto. Differences between actual and estimates are recognized in the period in which the results are known/ materialized.

3) Fixed Assets and Depreciation

a) Tangible Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation thereon. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

b) Depreciation

Depreciation on Fixed Assets is provided based on the useful life of the asset in the manner prescribed in Schedule-II to the Companies Act, 2013. Depreciation on Assets acquired/purchased during the year is provided on pro-rata basis according to the period each asset was put to use during the year.

c) Expenditure during construction period for new projects/expansions

Expenditure which are directly attributable to identified assets and incurred during the construction period are included under capital work in progress till the completion of the project. Expenditure which are not directly attributable to an unindentified assets forming part of a project are carried to pre-operative expenses till the completion of the project, On completion of the project, capital work in progress along with pre-operative expenses is carried to respective fixed assets.

4) Inventories

Inventories are valued at cost or net realizable value which-ever is lower. Net realizable value is the estimated selling price in the ordinary course of business less estimated cost necessary to make sale.

5) Revenue recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

a) Sale of Securities

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer.

b) Interest

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. In case of Non Performing Assets, Interest Income is recognized on receipt basis, as per NBFC Prudential norms.

c) Dividend

Revenue is recognized when the shareholders right to receive payment is established by the balance sheet date.

6) Investments

Investments are classified into long-term investments and short-term investments. Investments, which are intended to be held for one year or more, are classified as long-term investments and investments, which are intended to be held for less than one year, are classified as current investments. Long Term Investments & Short Term Investments are carried at cost. No provisions for diminution has been made as in the opinion of the management the diminution are temporary in nature.

7) Retirement and Other Employee benefits

a) Provident Fund

Provision of Provident Fund is not applicable to the company.

b) Gratuity

No provision for gratuity has been made as there is no amount due towards

c) Compensated absences

Unutilized leave of staff lapses as at the year end and is not encashable.

8) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

9) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit & Loss Account.

10) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

11) Events Occuring after Balance Sheet Date

Events occurring after Balance Sheet date have been considered in the preparation of financial statements.

(i) During The year, the Company has issued & allotted 44,40,000 Equity Shares of Rs.10/- each on thorugh Initial Public Offer (IPO) through designated Stock Exchnage viz. SME Platform of BSE Limited.

(ii) Terms/Rights attached to equity shares

(iii) The Company has only one class of equity share having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share and entitled to dividends approved by shareholders.

(iv) In the event of liquidation of the company, the holders of equity share 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 each shareholder

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Mar 31, 2014

1) Basis of Accounti ng

The financial statements are prepared under historical cost convention on the accrual basis of accounting in accordance with the companies Act,1956 ("the Act") and the Accounting Principles Generally Accepted in India (''Indian GAAP'') and to comply with the Accounting standards prescribed in companies (Accounting Standard) Rules 2006 issued by the Central Government in excercise of power conferred under Section 642(1)(a) and relevent provisions of the Act.

2) Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statement and notes thereto. Differences between actual and estimates are recognized in the period in which the results are known/ materialized.

3) Fixed Assets and Depreciation

a) Tangible Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation thereon. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

b) Depreciation

Depreciation on items listed in Schedule XIV of the Companies Act, 1956 is charged according to the straight-line method at rates specified in the said Schedule. Depreciation on Assets acquired/purchased during the year is provided on pro-rata basis according to the period each asset was put to use during the year.

c) Expenditure during construction period for new projects/expansions

Expenditure which are directly attributable to identified assets and incurred during the construction period are included under capital work in progress till the completion of the project. Expenditure which are not directly attributable to an unindentified assets forming part of a project are carried to pre-operative expenses till the completion of the project, On completion of the project, capital work in progress along with pre-operative expenses is carried to respective fixed assets.

4) Inventories

Inventories are valued at cost or net realizable value which-ever is lower. Net realizable value is the estimated selling price in the ordinary course of business less estimated cost necessary to make sale.

5) Revenue recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

a) Sale of Securities

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer.

b) Interest

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. In case of Non Performing Assets, Interest Income is recognized on receipt basis, as per NBFC Prudential norms.

c) Dividend

Revenue is recognized when the shareholders right to receive payment is established by the balance sheet date.

6) Investments

Investments are classified into long-term investments and short-term investments. Investments, which are intended to be held for one year or more, are classified as long-term investments and investments, which are intended to be held for less than one year, are classified as current investments. Long Term Investments & Short Term Investments are carried at cost. No provisions for diminution has been made as in the opinion of the management the diminution are temporary in nature.

7) Retirement and Other Employee benefits

a) Provident Fund

Provision of Provident Fund is not applicable to the company.

b) Gratuity

No provision for gratuity has been made as there is no amount due towards

c) Compensated absences

Unutilized leave of staff lapses as at the year end and is not encashable.

8) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

9) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit & Loss Account.

10) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

12) Events Occuring after Balance Sheet Date

Events occurring after Balance Sheet date have been considered in the preparation of financial statements.