Notes to Accounts of My Mudra Fincorp Ltd.

14. CONTINGENT LIABILITIES AND PROVISIONS :

> Provision is recognized in the accounts when there is a present obligation as a result of past event(s) and
it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate
can be made. Provisions are not discounted to their present value and are determined based on the best
estimate required to settle the obligation at the reporting date. These estimates are reviewed at each
reporting date and adjusted to reflect the current best estimates.

> Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

> Contingent liabilities are disclosed by way of notes to the accounts.

> Contingent assets are neither recognized nor disclosed in the financial statements.

15. ACCOUNTING FOR OPERATING LEASE :

The Company has various operating leases for premises; the leases are renewable on fixed periodic basis and

are cancellable in nature after lock in period.

16. EARNINGS PER SHARE :

In determining the Earnings Per share, the company considers the net profit after tax which does not include any
post tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings
per share is the weighted average number of shares outstanding during the period. Further The effect of bonus
issue is eliminated by incorporating the bonus shares adjustment in the calculation of weighted average shares.

17. CASH FLOW :

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. Cash flows from operating,
investing and financing activities of the Company are segregated, accordingly.

18. PRIOR PERIOD ITEMS :

No prior period items have been recorded during FY 2025-26.

19. CSR EXPENDITURE :

Pursuant to Section 135 of the Companies Act, 2013, the Company is required to spend 2% of the average net
profits of the last three financial years towards Corporate Social Responsibility (CSR) activities. During the year,
CSR provisions became applicable to the Company for the first time.

All CSR expenditure has been incurred during the year towards eligible activities specified under Schedule VII of
the Companies Act, 2013.

20. IPO Proceeds :

The Company had raised funds through its Initial Public Offering (IPO) in September 2024. During the financial
year ended March 31, 2026, the entire IPO proceeds have been fully utilised for the purposes stated in the
Prospectus. The utilisation of the proceeds is in line with the objects of the issue, and there has been no deviation
or variation in the use of the IPO funds from the stated objects.

1. Terms/rights attached to equity shares:

i. The company has only one class of shares referred to as equity shares having a par value of Rs. 10/- as at 31st
March, 2026.

ii. Each holder of equity shares is entitled to one vote per share.

iii. In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive any of the
remaining assets of the Company, after distribution of all preferential amounts. The amount distributed will be in
proportion to the number of equity shares held by the shareholders.

1. The above statement should be read with the significant accounting policies and notes to restated statements of
assets and liabilities, Statement of profits and losses and Statement of cash flows appearing in Annexures IV, I, II and
III.

2. The terms and conditions and other information in respect of Secured Loans are given in Annexure -B (A)

3. The terms and conditions and other information in respect of Unsecured Loans are given in Annexure - B (B)

1. All tangible movable fixed assets lying in the premises 2nd Floor, 17-A/45, Western Extension Area (WEA), Karol Bagh,
New Delhi 110005 or in godowns or custody of any person who are mercantile agents of the company or in the course
of transit, entire movable goods & assets, both present & future including stock, all present and future book debts.

2. Primary: Hypothecation of Entire Movable (Book Debts, Receivables, Current Assets, etc.) and other assets of the
company both present & future; Collateral: Nil; Personal Guarantee: Mrs. Nisha Kulshrestha, Mr. Vaibhav Kulshrestha
& CGTMSE.

1. The above statement should be read with the significant accounting policies and notes to statements of assets and
liabilities, Statement of profits and losses and Statement of cash flows appearing in Annexures IV, I, II and III.

2. Ageing of the Supplier, along with any amount involved in disputes as required by Schedule III of Companies Act,
2013 is disclosed below after it becomes due for payment. In case of no credit terms defined the break-up of agewise
supplier balance is given below after considering from the date of transactions.

1) The ratios have been computed as below:

(a) Basic earnings per share (Rs.) - : Net profit after tax as restated for calculating basic EPS / Weighted average
number of equity shares outstanding at the end of the year

(b) Diluted earnings per share (Rs.) - : Net profit after tax as restated for calculating diluted EPS / Weighted average
number of equity shares outstanding at the end of the year for diluted EPS

2) Weighted average number of equity shares is the number of equity shares outstanding at the beginning of the year
adjusted by the number of equity shares issued during period/year multiplied by the time weighting factor. The time
weighting factor is the number of days for which the specific shares are outstanding as a proportion of total number
of days during the year. In case of Subdivision and Bonus issue, the event has been considered as if it had occurred at
the beginning of restatement period.

3) The above statement should be read with the significant accounting policies and notes to statements of assets and
liabilities, profits and losses and cash flows appearing in Annexures IV, I, II and III.

Other Notes-

1. The title deeds of all immovable properties are held in the name of the Company. Accordingly, there are no Immovable
Properties which were not held in name of the Company as on 31st March, 2026 and 31st March, 2025.

2. The Company has utilised the borrowings received from banks and financial institutions for the purpose for which it
was taken during the period of audit.

3. Breakup of Amount Paid to Auditors is as under-

4. The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

5. The Company has not been declared wilful defaulter by any Banks or any other Financial Institution at any time during
the period of audit.

6. The Company did not have any material transactions with companies struck-off under section 248 of the Companies
Act, 2013 or section 560 of the Companies Act, 1956 during the period of audit.

7. During the period of audit, the Company has not traded or invested in Crypto Currency or Virtual Currency during the
year.

8. Disclosures related to Micro, Small and Medium Enterprises.

Management is in the process of compiling information from its suppliers regarding their status under the MSME
act, who qualify under the definition of micro and small enterprises, as defined under the Micro, Small and Medium
Enterprises Development Act 2003 and hence disclosure, if any, of the amount unpaid as at the year-end together with
the interest paid/payable as required has been given to the extent information available;

9. The Company has paid Rs NIL dividend during FY 2024-25 and Rs. NIL dividend during FY 2025-26.

10. Figures have been rounded off to the multiple of lakhs. Previous year''s figures have been regrouped, recast and
rearranged wherever necessary to make them comparable with the current year figures.

1. Terms/rights attached to equity shares:

i. The company has only one class of shares referred to as equity shares having a par value of Rs. 10/- as at 31st March, 2025.

ii. Each holder of equity shares is entitled to one vote per share.

iii. In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The amount distributed will be in proportion to the number of equity shares held by the shareholders.

• 4

1) The ratios have been computed as below:

(a) Basic earnings per share (Rs. ) - : Net profit after tax as restated for calculating basic EPS / Weighted average number of equity shares outstanding at the end of the year

(b) Diluted earnings per share (Rs. ) - : Net profit after tax as restated for calculating diluted EPS / Weighted average number of equity shares outstanding at the end of the year for diluted EPS

2) Weighted average number of equity shares is the number of equity shares outstanding at the beginning of the year adjusted by the number of equity shares issued during period/year multiplied by the time weighting factor. The time weighting factor is the number of days for which the specific shares are outstanding as a proportion of total number of days during the year. In case of Subdivision and Bonus issue, the event has been considered as if it had occurred at the beginning of restatement period.

3) The above statement should be read with the significant accounting policies and notes to restated summary statements of assets and liabilities, profits and losses and cash flows appearing in Annexures IV, I, II and III.

4) Pursuant to Board resolution dated on 15th May, 2024 and shareholder''s consent dated 14th May, 2024 bonus issue of 83,55,846 equity shares of face value of Rs 10/- in the ratio 699:1, i.e. Six hundred ninety nine (699) bonus equity shares for every one (1) equity share held by shareholder has been issued.

5) The Company had announced Initial Public Offer of 30,24,000 equity shares of Rs. 10/- each at a price of Rs. 110/- per equity share, aggregating to Rs. 3,326.40 Lakhs. The issue was open for subscription from Thursday, 05th September, 2024 to Monday, 09th September, 2024. Pursuant to the IPO 30,24,000 equity shares were issued and allotted on Wednesday, 11th September, 2024

to the public.

Other Notes-

1. The title deeds of all immovable properties are held in the name of the Company. Accordingly, there are no Immovable Properties which were not held in name of the Company as on 31st March, 2025 and 31st March, 2024.

2. The Company has utilised the borrowings received from banks and financial institutions for the purpose for which it was taken during the period of audit.

. . . . . . . . .

4. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami

property.

5. The Company has not been declared willful defaulter by any Banks or any other Financial Institution at any time during the period of audit.

6. The Company did not have any material transactions with companies struck-off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the period of audit.

7. During the period of audit, the Company has not traded or invested in Crypto Currency or Virtual Currency during the year.

8. Disclosures related to Micro, Small and Medium Enterprises.

Management is in the process of compiling information from its suppliers regarding their status under the MSME act, who qualify under the definition of micro and small enterprises, as defined under the Micro, Small and Medium Enterprises Development Act 2003 and hence disclosure, if any, of the amount unpaid as at the year-end together with the interest paid/payable as required has been given to the extent information available;

9. The Company has paid Rs NIL dividend during FY 2023-24 and Rs. NIL Lacs dividend during FY 2024-25.

10. Figures have been rounded off to the multiple of lakhs. Previous year''s figures have been regrouped, recast and rearranged wherever necessary to make them comparable with the current year figures.

Data Not Good