Notes to Accounts of Star Housing Finance Ltd.

Mar 31, 2025

3.14 Provisions, contingent liabilities and
contingent assets

Provisions

Provisions are recognized when the company has a
present obligation (legal or constructive) as a result of

past events, and it is probable that an outflow of
resources embodying economic benefits will be required
to settle the obligation, and a reliable estimate can be
made of the amount of the obligation, when the effect of
the time value of money is material, the company
determines the level of provision by discounting the
expected cash flows at a pre-tax rate reflecting the
current rates specific to the liability. The expense relating
to any provision is presented in the statement of profit
and loss net of any reimbursement.

Contingent liability

A possible obligation that arises from past events and
the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
company or; present obligation that arises from past
events where it is not probable that an amount of the
obligation cannot be measured with sufficient reliability
are disclosed as contingent liability and not provided for.

Contingent asset

A contingent asset is a probable asset that arises from
past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
company. Contingent assets are neither recognized nor
disclosed in the financial statements.

3.15 Income Tax

Income tax comprises current and deferred tax. It is
recognized in Statement of profit or loss except to the
extent that it relates to a business combination or to an
item recognized directly in equity or in other
comprehensive income.

I. Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in
respect of previous years. The amount of current tax
reflects the best estimate of the tax amount expected to
be paid or received after considering the uncertainty, if
any, related to income taxes. It is measured using tax
rates (and tax laws) enacted or substantively enacted by
the reporting date.

Current tax assets and current tax liabilities are offset
only if there is a legally enforceable right to set off the
recognized amounts, and it is intended to realize the
asset and settle the liability on a net basis or
simultaneously.

II. Deferred tax

Deferred tax is recognized in respect of temporary
differences between the carrying amount of assets and
liabilities for financial reporting purpose and the
corresponding amount used for taxation purposes.

Deferred tax liabilities are generally recognised for all
taxable temporary differences and deferred tax assets are
recognised, for all deductible temporary differences, to the
extent it is probable that future taxable profits will be
available against which deductible temporary differences
can be utilised. Deferred tax is measured at the tax rates
that are expected to be applied to the temporary
differences when they reverse, based on the laws that
have been enacted or substantively enacted by the reporting
date. Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realised.
Deferred tax asset is recognised for the carry forward of
unused tax losses to the extent that it is probable that
future taxable profit will be available against which the
unused tax losses can be utilised. Unrecognised deferred
tax assets are reassessed at each reporting date and
recognised to the extent that they have become probable
that future taxable profits will be available against which
they can be used. Deferred tax assets and liabilities are
offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when
they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current
tax assets and liabilities on a net basis.

3.16 Borrowing cost

Borrowing costs are interest and other costs incurred in
connection with the borrowings of funds. Borrowing costs
directly attributable to acquisition or construction of an
asset which necessarily take a substantial period of time
to get ready for their intended use and are capitalized as
part of the cost of the asset. All other borrowings costs are
recognized as an expense in the profit & loss in the year in
which they are incurred.

3.17 Cash& cash equivalents

Cash & Cash equivalents comprise cash on hand, cheques
on hand and balance with banks. Cash equivalents are
short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid
investment that are readily convertible into known
amounts of cash & which are subject to insignificant risk
of changes in value.

3.18 Segment reporting-identification of segments

The Company has only one reportable business segment,
i.e. lending to borrowers, which have similar nature of
products and services, type/class of customers and the
nature of the regulatory environment (which is banking),
risks and returns for the purpose of Ind AS 108 on
‘Segment Reporting''. Accordingly, the amounts appearing
in the financial statements relate to the Company''s
single business segment.

3.19 Earnings per share

The Company reports basic & diluted earnings per equity
share in accordance with Ind AS 33, Earnings per Share.
Basic Earnings per equity share is computed by dividing
net profit/ loss after tax 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 is computed &
disclosed by dividing the net profit/ loss after tax
attributable to the equity shareholders for the year after
giving impact of dilutive potential equity shares for the
year by the weighted average number of equity shares &
dilutive potential equity shares outstanding during the
year, except where the results are anti-dilutive.

3.20 Cash flow statement

Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The
cash flow from regular revenue generating, financing &
investing activities of the Company is segregated.

3.21 Accounting of Leases

Company has applied Ind AS 116 “Leases” for the lease
contracts covered by the Ind AS. Under Ind AS 116 a
contract is, or contains a lease, if it conveys the right to
control the use of an identified asset for a period of time
in exchange for consideration. The Company undertook
an assessment of all applicable contracts to determine if

a lease exists as defined in Ind AS 116. This assessment
will also be completed for each new contract or change.
Measurement of Lease Liability

At the time of initial recognition, the Company measures
lease liability as present value of all lease payment
discounted using the Company''s incremental cost of
borrowing rate. Subsequently, the lease liability is

i) Increase by interest on lease liability

ii) Reduce by lease payments made

Measurement of Right-of-Use asset At the time of initial
recognition, the company measures ‘Right-of-Use
assets'' as present value of all lease payment discounted
using the Company''s incremental cost of borrowing rate
w.r.t said lease contract. Subsequently, ‘Right-of-Use
assets'' is measured using cost model i.e. at cost less any
accumulated depreciation and any accumulated
impairment losses adjusted for any re-measurement of
the lease liability specified in Ind AS 116 ‘Leases''.
Depreciation on ‘Right-of-Use assets'' is provided on
straight line basis over the lease period.

In contract going forward. The Company has further
elected not to recognize ROU assets and lease liabilities
for leases of low value assets and for short-term leases
(less than 12 months).

3.22 Dividend Pay-out

The Company recognises a liability towards the equity
shareholders of the Company when the dividend is
authorised and the distributions no longer at the
discretion of the Company. As per the corporate laws in
India, an interim dividend is authorised when it is
approved by the Board of Directors and final dividend is
authorised when it is approved by the Shareholders. A
corresponding amount is recognised directly in equity.

I. Loans and receivables are non-derivative financial assets which generate a fixed or variable interest income for the
Company. The carrying value may be affected by changes in the credit risk of the counterparties.

II. Loans granted by the Company are secured by equitable mortgage/registered mortgage of the property and/or
undertaking to create a security and/or personal guarantees and/or hypothecation of assets and/or assignments of life
insurance policies.

III. Loans sanctioned but undisbursed amount is Rs. 1,203.21 Lakh as on March 31, 2025 (31.03.2024 - Rs. 1,468.07 Lakh).

IV. Direct Assignment transferred by way of 90% - The Company during current year has assigned a pool of certain loans
amounting to Rs. 5,583.45 Lakh (PY - Nil) by way of a Direct Assignment Transaction. These loan assets have been
de-recognised from the loan portfolio of the Company as the sale of loan asset is an absolute assignment and transfer
on a ''without-Recourse'' basis while retaining 10% share as Minimum Retention Requirement (MRR). The Company
continues to act as a servicer to the assignment transaction on behalf of assignee. In terms of an assignment
transaction, the company pays to the assignee on a monthly basis the prorata collection amount on agreed terms.

» There has been no acquisition through business combinations during the year ended 31st March 2025 and 31st March 2024.

» There has been no revaluation of property, plant and equipment and other intangible assets during the year ended 31st March 2025 and
31st March 2024.

» The Company concluded the sale transaction of a land asset during the financial year, recognizing a profit from the transaction. The entire
sale consideration has been received.

» In line with Ind AS 105, the Company has reclassified its Building from ''Property, Plant and Equipment'' to ''Assets Held for Sale'' during the
reporting period, pursuant to the management''s strategic decision to divest the asset.

» During the year, Capital Work-in-Progress amounting to Rs. 213.56 lakhs were assessed. Out of these, Rs. 171.33 lakhs were capitalised
under Intangible Assets - Jaguar Software upon completion and readiness for intended use. The remaining Rs. 42.23 lakhs were charged to
the statement of Profit and Loss, as it did not meet the recognition criteria for capitalization under Ind AS 38 - Intangible Assets.

28. Segment Reporting

An operating segment is a component of the company that emerges in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that relate to transactions with any of the company''s other
components, and for which discrete financial information is available. All operating segments'' operating results are
reviewed regularly by the company''s management to make decisions about resources to be allocated to the segments and
assess their performance. The CEO is considered to be the chief operating decision maker (‘CODM'') within the purview of
Ind AS 108 operating segments.

The CODM considers the entire business of the company on a holistic basis to making operating decisions and thus there
are no segregated operating segments. The company is engaged into the business of providing housing loans and property
loans. The CODM of the company reviews the operating results of the company as a whole and therefore not more than
one reportable segment is required to be disclosed by the company as envisaged by Ind AS 108 operating segments.
Accordingly, amounts appearing in these financial statements relates to the business of providing housing loans and prop¬
erty loans.The company does not have any separate geographic segment other than India. As such there are no separate
reportable segments as per IND AS 108 operating segments.

29. Contingent liabilities and commitments

a. Contingent liabilities

1) There is no contingent liability as at March 31, 2025 (31-03- 2024: Nil).

2) The Company''s pending litigations comprise of Proceedings by the company against its customers for recovery of loans,
pending with various authorities. The Company has reviewed all its pending litigations and proceedings and has adequately
provided for where provisions are required and disclosed the contingent liabilities where applicable, in the financial
statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its
financial results.

b. Contingent commitments

1) Undisbursed Amount- Loans sanctioned but undisbursed or partially disbursed amount is Rs. 1,203.21 Lakh as on March
31, 2025 (31.03.2024 - Rs. 1,468.07 Lakh)

30. Retirement benefits

A. Defined contribution plans:

The company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying
employees towards provident and other fund, which is defined contribution plan. The company has no obligation other
than to make the specified contributions. The contributions are charged to the statement of profit and loss as they accrue.
The amount recognized as an expense (including admin charges) towards contribution to provident and other fund for the
year aggregated to Rs. 9.26 Lakh (Previous Year: Rs. 13.57 Lakh).

B. Defined benefit plan:

The Company has a defined benefit plan i.e., Gratuity, for its employees. Under the gratuity plan every employee who has
completed at least five years of services gets a gratuity on departure at 15 days of salary for each year service.

Contribution to gratuity fund

In accordance with Indian Accounting Standard 19 ‘Employee benefits'', actuarial valuation was done in respect of the
aforesaid defined benefit plan of gratuity based on the following assumption:

(II) Major risk to the plan

a) Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an
increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity
Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of
cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the
Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as
at the resignation date.

b) Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the
fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future
discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in
the discount rate during the inter-valuation period.

c) Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits.
If some of such employees resign/retire from the company, there can be strain on the cash flows.

d) Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets.
One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money.
An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assump¬
tion depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctua¬
tions in the yields as at the valuation date.

e) Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the
legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay
higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same
will have to be recognized immediately in the year when any such amendment is effective.

B) Measurement of Fair Value

Valuation methodologies of financial instruments not measured at fair value:

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not
recorded and measured at fair value in the financial statements, these fair values were calculated for disclosure purpose only:

Short Term financial assets and liabilities

For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying
amounts, which are net of impairment, area reasonable approximation of their fair value.

Such instruments include cash and cash equivalent, other financial assets (excluding security deposit), trade payables and
other financial liability.

Loans and advances to customers

In case of retail loans and term loans with floating rates, the interest rate represents the market rate. Consequently, the
carrying amount represents the fair value.

Term Loan with fixed rate: - The fair values estimated by discounted cash flow model that incorporates assumptions for
credit risk, probability of default and loss given default estimates. As per management assumptions, the fair value of the
loans & advances has been at par with the carrying value of the portfolio considering the fact that the competitive interest
rates in the operational area of the company and the portfolio in which the company has exposure are more or less as per
prevailing market rates.

Investments

Investment in mutual funds has been taken as Level 2 and value has been considered based on mutual fund statement.
Investments in unlisted equity instruments has been taken as Level 2 and value has been considered based on latest
available fair value of the Instruments.

Borrowings

In case of borrowings with floating rates, the interest rate represents the market rate. Consequently, the carrying amount
represents the fair value.

Transfer between Levels 1 and 2

There has been no transfer in between level l and level 2.

C) Capital

The company maintains an activity managed capital base to cover risks inherit in the business and is meeting the capital
adequacy of the local regulatory body, National Housing Bank (NHB). The adequacy of the Company''s capital is monitored
using, among other measures the regulation issued by NHB.

The Company has complied in full of all its externally imposed capital requirements over the reported period. Equity share
capital and other equity are considered for the purpose of Company''s capital management.

Capital Management

The Primary objectives of the company''s capital management policy are to ensure that the Company complies with
externally imposed capital requirement and maintains strong credit ratings and healthy capital ratios in order to support its
business and to maximize shareholder value.

The company manages its capital structure and makes adjustments to it according to changes in economic conditions and
the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Company may adjust the
amount of dividend payment of shareholders, return capital to shareholder or issue capital securities. No changes have
been made to the objectives, policies and processes from the previous years. However, they are under constant review by
the board.

The Company''s policy is to keep the gearing ratio at reasonable level of 5-6 times in imminent year while Master Direction
- Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 dated February 17, 2021
currently permits HFCs to borrow up to 12 times of their net owned funds (“NOF”). The Company includes with in debt, it''s
all interest-bearing loans and borrowings.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

Internal capital adequacy assessment process (ICAAP): The Company is in the process of devising suitable ICAAP, looking
to the size of scale and operation of the company. Nevertheless, the company has been maintaining the CRAR of 50.55%
as against prescribed minimum level of 15%. Thus, the company not only covering the regular risk i.e., credit, market and
operation but also the residual risk (Litigation, reputation, strategic risks etc).

34. FINANCIAL RISK MANGEMENT OBJECTIVES AND POLICIES

The Company''s Principal financial liabilities comprise borrowings. The main purpose of these financial liabilities is to finance
the Company''s operations and to support its operations. The Company''s financial assets include loans, cash, and cash
equivalents, investments and other financial assets and that derives directly from its operations.

(I) Credit Risk

Credit Risk is the risk of financial loss to the company if a customer or counter party to financial instruments fails to meet
its contractual obligations and arises primarily from the company''s loan and investments.

The carrying amounts of financial assets represent the maximum credit risk exposure.

A. Loans and Advances

The Company has a comprehensive framework for monitoring credit quality of its retail and other loans primarily based on
number of days past due. The Company manage credit risks by using a set of credit procedures and guidelines, laid down
in our credit risk policy, to ensure effective credit risk management and health of our portfolio. The adherence to the policy
and various process is monitored and appraised in credit committee meetings on a quarterly basis. The policy is amended
periodically to ensure compliance with the guidelines of the RBI as well as other regulatory bodies. We have implemented
a structured credit approval process, established a process by which separate set of verifications are conducted by a
customer relationship manager and service officer to ensure the quality of customers acquired as well as eliminate misuse
of borrowing practices and comprehensive credit risk assessment, which encompasses analysis of relevant quantitative
and qualitative information to ascertain the credit worthiness of a potential customer. Portfolio quality, credit limits,
collateral quality and credit exposure limits are regularly monitored at various levels.

The Company''s gross exposure to credit risk for loans and investments by type of counterpart is as follows:

The above exposures are entirely concentrated in India. There is no overseas exposure.

An impairment analysis is performed at each reporting date based on the facts and circumstances existing on that date to
identify expected losses on account of time value of money and credit risk. For the purpose of this analysis, the loan
receivables are categorized into groups based on days past due. Each group is then assessed for impairment using the
Expected Credit Loss (ECL) model as per the provisions of Ind AS 109- Financial instruments.

Staging

As per the provisions of Ind AS 109 general approach all financial instruments are allocated to stage 1 on initial recognition.
However, if a significant increase to credit risk is identified at the reporting date as compared with the initial recognition,
then an instrument is transferred to stage 2. If there is objective evidence of impairment, then the asset is credit impaired
and transferred to stage 3.

The Company considers a financial instrument defaulted and therefore stage 3 (credit- impaired) for ECL calculations in all
cases when the borrower becomes 90 days past due on its contractual payments.

For Financial assets in stage 1, the impairment calculated based on defaults that are possible in next twelve months, whereas
for financial instruments in stage 2 and 3 the ECL calculation considers default event for the lifespan of the instrument.

As per Ind AS 109, Company assesses whether there is a significant increase in credit risk at the reporting date from the
initial recognition. Company has staged the assets based on the day past dues criteria and other market factors which
significantly impacts the portfolio.

Grouping

As per Ind AS 109, Company is required to group the portfolio based on the shared risk characteristics. Company has
assessed the risk and its impact on the various portfolios and has divided the portfolio into following groups:

- Retail Loans (Housing and non-housing loans)

- Other Loan & Advances

- Builder and Developer loans, and are further subgrouped as a. Geography wise (State wise) and b. Salaried and
Non-sala ried wise

Impairment-Expected Credit Loss (“ECL”):

The accounting standard, Ind AS 109 does not specifically prescribe any methodology for computing ECL. However, entities
are required to adopt sound and market acceptable methodologies which are in line with the size, complexity and risk
profile of the financial entity for computing the ECL. The Company uses following three main components to measure ECL:

a. Probability of default. (PD)

b. Loss given default (LGD).

c. Exposure at default (EAD).

Probability of default (PD):

PD is defined as the probability of whether borrowers will default their obligations in an ensuring period of 12 months.
Historical PD is derived from the HFC''s internal data calibrated with forward looking macro-economic factors.

For computation of probability of default company has considered three years Historical data and the current Macroeco¬
nomic conditions along with probable Impacts of COVID-19. Based on these factors PD has been worked out.

Loss Given default (LGD):

LGD is an estimate of the loss from a transaction given that a default occurs. Under Ind AS 109, Lifetime LGD''s are defined
as collection of LGD''s estimates applicable to different future periods.

Various approaches are available to compute the LGD. Company has considered workout LGD approach.

The following steps are performed to calculate the LGD.

1. Haircut was applied on the value of the collateral (asset cost) as of reporting date.

2. The outstanding amount was adjusted with the haircut adjusted collateral value.

3. LGD has been computed using the outstanding amount in step 2.

Over and above the LGD has been floored using regulatory guidelines.

Exposure at default (EAD)

As per Ind AS 109, EAD is estimation of the extent to which the financial entity may be exposed to counterparty in the
event of default and at the time of counterparty''s default. Company has modelled EAD based on the contractual and
behavioural cash flows till the lifetime of the loan and considering the expected prepayments.

Company has considered expected cash flows for all loans at DPD bucket level for each of the segments which were used
for computation for ECL. Moreover, the EAD comprised of principal component, accrued interest on the outstanding expo¬
sure for the ensuring 12 months. So discounting was done for computation of expected credit loss.

The loss rates are based on actual credit loss experience over past years. These loss rates are then adjusted approximately
to reflect differences between current and historical economic conditions and the Company''s view of prevailing economic
conditions over the expected lives of the loan receivable.

Movement in provision of expected credit loss has been provided in below note.

B. Collateral and other credit enhancements

The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are
in place covering the acceptability and valuation of each type of collateral. The main types of collateral obtained are
mortgaged properties based on the nature of loans. Management monitors the market value of collateral in accordance
with underlying agreement. The Company advances loan to maximum extent of 80% of the value of the mortgaged
properties.

(ii) Analysis of risk concentration

The Company''s concentrations of risk are managed based on Loan to value (LTV) segregation as well as geographical
spread. The following tables stratify credit exposures from housing and other loans to customers by range of loan to-value
(LTV) ratio LTV is calculated as the ratio of gross amount of the loan - or the amount committed for loan commitments - to
the value of the collateral.

Liquidity risk is the risk that the Company will encounter difficulty in meeting 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.

The company is monitoring its liquidity risk by estimating the future inflows and outflows during the start of the year and
planned accordingly the funding requirement. The company manages the liquidity by unutilized cash credit facility, term
loan and NCDs. The composition of the Company''s liability mix ensures healthy asset liability maturity pattern and well
diverse resource mix. The total cash credit and working capital limit available to the Company is INR 27 Lakh spread across
3 banks. The utilization level is maintained in such a way that ensures sufficient liquidity on hand. Majority of the
company''s portfolio is individual housing loans, and the company have off book asset under management. Total AUM is
Rs. 52,069.78 Lakh (own book AUM is Rs. 41,794.54 Lakh and off book AUM (Co-lending / Direct Assignment) is Rs.
10,275.24 Lakh).

The table below summarizes the maturity profile of the Company''s non-derivative financial liabilities based on contractual
discounted payments along with it carrying value as at the balance sheet date.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk includes interest rate risk and foreign currency risk. The objective of market risk management is
to manage and control market risk exposures within acceptable parameters, while optimizing the return.

A. 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. The company''s exposure to the risk of changes in market interest rates relates primarily to the
company''s investment in bank deposits and variable interest rate on borrowings and lending. Whenever there is a change
in borrowing interest rate for the company, necessary change is reflected in the lending interest rates over the timeline in
order to mitigate the risk of change in interest rates of borrowings.

B. Foreign Currency Risk

The company does not have any instrument denominated or traded in foreign currency. Hence such risk does not affect the
company.

35. Impact of COVID-19

COVID-19 pandemic had led to a significant decrease in global & local economic activities, which may persist. The company
has used the principal of prudence to provide for the impact of pandemic on the financial statements specifically while
assessing the expected credit loss on financial assets by applying management overlays, approved by its Board of Directors.

37. The title deeds of immovable property held by the company are duly executed in favour of the company.

38. No proceedings have been initiated or pending against the company for holding any benami property under the
Benami Transactions (prohibition) Act 1988 and rules made thereunder, as at 31st March 2025 and 31st March 2024.

39. The company is not declared wilful defaulter by any bank or financial institution or any other lender, in accordance with
the guidelines on wilful defaulters issued by the Reserve Bank of India, during the year ended 31st March 2025 and 31st
March 2024.

40. The Company does not have any transactions with the companies struck off under section 248 of The Companies Act
2013 or section 560 of Companies Act, 1956 during the year ended 31st March 2025 and 31st March 2024.

41. Registration of charges or satisfaction with registrar of Companies (ROC): There has been one delay in registration of
charges or satisfaction with ROC beyond the statutory date during the year ended 31st March 2025.

42. The Company has borrowings from banks and financial institutions on the basis of security of current assets and the
quarterly returns filed by the company with the banks and financial institutions are in accordance with the books of
accounts of the company for the respective quarters.

43. The company has taken borrowings from banks and financial institutions and utilized them for the specific purpose for
which they were taken as at the balance sheet date. Unutilized funds as at 31st March 2025 are held by the company in the
form of deposits till the time utilization is made subsequently.

44. There have been no transactions which have not been recorded in the books of accounts that have been surrendered
or disclosed as income during the year ended 31st March 2025 and 31st March 2024. In the tax assessments under the
Income Tax Act, 1961 there have been no previously unrecorded income and related assets which were to be properly
recorded in the books of account during the year ended 31st March 2025 and 31st March 2024.

45. As a part of normal lending business, the company grants loans and advances on the basis of security/guarantee
provided by the borrower/co-borrower. These transactions are conducted after exercising proper due diligence.

Other than the transactions described above,

a. No funds have been advanced or loaned or invested by the Company to or in any other person(s) or entity(ies) including
foreign entities (“Intermediaries”) with the understanding that the intermediary shall lend or invest in a party identified
by or on behalf of the company (ultimate beneficiaries):

b. No funds have been received by the Company from any party(ies) (funding party) with the understanding that the
Company shall whether, directly or indirectly, lend or invest in other persons or entities identified by or on behalf of the
Company (“Ultimate beneficiaries”) or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

46. The company has not traded or invested in crypto currency or virtual currency during the year ended 31st March 2025
and 31st March 2024.

47. Pursuant to the RBI circular DOR.STR.REC.68/21.04.048/2021-22 dated 12 November 2021- “Prudential norms on
Income Recognition, Asset Classification and Provisioning (IRACP) pertaining to Advances - Clarification”. In this regards
our company has been following the same procedure as specified in the said guidelines with regard to classify the account
as NPA or SMA.

We hereby further clarify that the account is recognized as NPA or SMA from the very date it crosses the 90 days / 60 days
or 30 days as applicable from its due date of repayment for respective classification. As such, NPA amount computed by
the company does not have any impact of the above referred circular. Apart from this no NPA account is being upgraded
unless the entire overdue amount as on date is fully recovered.

48.Subsequent event

There is no significant subsequent event that has occurred after the reporting period till the date of these financial
statements.

49. CSR expenses

Other expenses include Rs. 15.00 lakh for the year ended March 31, 2025 (P.Y. Rs. 7.51 lakh), towards Corporate Social
Responsibility (CSR) expenditure, in accordance with the Section 135 of the Companies Act, 2013. Gross Amount required to
be spent by the Company during the year is Rs. 13.28 lakh.

50. The figures for the previous year have been regrouped and / or reclassified to conform to current year''s classification.

51. Notice - Income Tax

The department has issued the notices u/s 143 (1) and 143 (3) seeking clarifications on certain points pertaining to the
income and other ancillary issues related to the company for the A.Y.2023-2024. The company submitted its reply from
time to time. Finally, the department has reassessed the income of the company for the A.Y.2023-2024 and found that the
assessments submitted earlier was in order and closed the matter vide their letter dated 13.03.2025 with nil demand and
penalty.

Disclosures required by the Reserve Bank of India /National Housing Bank as per Notification no. DOR.FIN.HFC.
CC.No.120/03.10.136/2020-21 dated February 17. 2021- Master Direction - Non-Banking Financial Company - Housing
Finance Company (Reserve Bank) Directions, 2021

1. Minimum Disclosures:

The following additional disclosures have been given in terms of Notification no. DOR.FIN.HFC.CC.No.120/03.10.136/2020-21
dated February 17. 2021- Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank)
Directions, 2021 issued by the RBI.

2. Summary of Significant Accounting Policies:

The accounting policies regarding key areas of operations are disclosed as note 1 of accounting policy to the Standalone
Financial Statement for the year ended March 31, 2025.

(b) Liquidity Coverage Ratio (LCR)

The Company was not required to comply with the guidelines on Liquidity Coverage Ratio (LCR) in line with Master
Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 as at 31 March 2025.

(II) Reserve fund u/s 29C of NHB Act, 1987 - Statutory reserve

The Company has transferred a sum of Rs. 283.76 Lakh (PY Rs. 229.42 Lakh) during the year in the Special Reserve out of
its profits in terms of Section 29C of the National Housing Bank Act, 1987. This amount includes a sum of Rs.230.40 Lakh
(PY 158.14 Lakh) toward the reserve created under Section 36(1) (viii) of the Income Tax Act, 1961. Breakup of transfer of
funds in both the reserves is as under: -

B. Exposure to capital market

There is no exposure to capital market during the year ended as on March 31st 2025 and as on March 31st 2024.

C. Details of financing of parent company products

During the year, Company has not entered into any (a) derivative transaction, (b) securitization transaction, (c) financing of
Parent Company product, and (d) finance of any unsecured advances against intangible securities such as rights, licenses,
authority etc. as collateral security.

D. Details of single borrower limit (SGL)/group borrower limit (GBL)

The Company has not exceeded limit prescribed by National Housing Bank for Single Borrower Limit (SGL) and Group
Borrower Limit (GBL).

E. Unsecured loans

There is exposure of Rs. 556.04 Lakh during the year ended March 31st, 2025 and Rs. 610.28 Lakh during the year ended
March 31st, 2024.

Note: As per RBI Direction regarding computation of GNPA and NNPA, these have been computed as per the IND-AS
standard. Comparative figure for the previous year has been recomputed as per the requirements.

vii) Overseas assets

The company does not have any joint ventures and subsidiaries abroad during the year ended as at March 31, 2025 and
as at March 31, 2024 and hence this disclosure is not applicable.

viii) Off-balance sheet SPVs sponsored

There was no off-balance sheet SPVs sponsored by the company during the year ended as at March 31, 2025 and as at
March 31, 2024.

(vi) Institutional set-up for liquidity risk Management

The company has an Asset Liability Management Committee (ALCO) to monitor asset liability mismatches to ensure that
there is no imbalances or excessive concentration on the either side of the balance sheet. The company maintains a
judicious mix of borrowings in the form of Term Loans, Refinance, and working capital and continues to diversify its source
of borrowings with the emphasis on longer tenor borrowings. The company has diversified mix of investors/lenders which
includes Banks, National Housing Bank, Financial Institution.

The Liquidity Risk Management (LRM) of the company is governed by the LRM Policy approved by the Board. The Asset
Liability Committee (ALCO) is responsible for implementing and monitoring the liquidity risk management strategy of the
company in line with its risk management objectives and ensures adherence to the risk tolerance/limits set by the Board.
Refer note no. 33 of standalone financials statement

11. Principal Business Criteria for HFCs

“Housing finance company” shall mean a company incorporated under the Companies Act, 2013 that fulfils the following
conditions:

A) It is an NBFC whose financial assets, in the business of providing finance for housing, constitute at least 60% of its
total assets (netted off by intangible assets).

B) Out of the total assets (netted off by intangible assets), not less than 50% should be by way of housing financing for
individuals.

2) Breach of Covenants

The Company has complied with the covenants under the terms of major borrowing facilities throughout the year ended
31st March 2025 and 31st March 2024.

3) Divergence in Asset Classification and Provisioning

The last inspection of the regulator for the year ended 31.03.2023 & 31.03.2024 conducted on between 22.07.2024 to
29.07.2024. The regulator has indicated no divergence in asset classification and provisioning.

In terms of our report of even date

For NYATI MUNDRA & CO. FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Chartered Accountants
ICAI FR No : 008153C

Sd/- Sd/- Sd/-

CA Rupesh Pachori Kalpesh Dave Kavish Jain

Partner CEO & Director Director

Membership No. 427929 DIN: 08221964 DIN: 02041197

UDIN: 25427929BMINGL3371

Sd/- Sd/-

Place: Mumbai Natesh Narayanan Shreyas Mehta

Date: 07-05-2025 CFO Company Secretary

M.No. A38639

---

Mar 31, 2024

(1) The Company has allotted 2,000 (Two thousand only) Secured, Rated, Listed, Senior, Redeemable, Transferable Non-Convertible Redeemable Debentures (“NCD’s”) to Northern Arc Capital Limited on a private placement basis on 19th October ,2023 , having face value of Rs. 1,00,000 (Indian Rupees One Lakh Only) each aggregating up to 20,00,00,000/- (Indian Rupees Twenty Cores Only) was secured by way of first and exclusive charge on specified pool of receivables on respective NCDs. The Asset Cover is 1.10 times.

(2) The Company has allotted 1,100 (One thousand hundred only) Secured, Rated, Listed, Senior, Redeemable, Transferable Non-Convertible Redeemable Debentures (“NCD’s”) to A K Securitization and Credit Opportunities Funds II on a private placement basis on 12th March ,2024 , having face value of Rs. 1,00,000 (Indian Rupees One Lakh Only) each aggregating up to 11,00,00,000/- (Indian Rupees Eleven Cores Only) was secured by way of first and exclusive charge on specified pool of receivables on respective NCDs. The Asset Cover is 1.10 times.

28. SEGMENT REPORTING_

An operating segment is a component of the company that emerges in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the company''s other components, and for which discrete financial information is available. All operating segments'' operating results are reviewed regularly by the company''s management to make decisions about resources to be allocated to the segments and assess their performance. The MD is considered to be the chief operating decision maker (‘CODM'') within the purview of Ind AS 108 operating segments.

The CODM considers the entire business of the company on a holistic basis to making operating decisions and thus there are no segregated operating segments. The company is engaged into the business of providing housing loans and property loans. The CODM of the company reviews the operating results of the company as a whole and therefore not more than one reportable segment is required to be disclosed by the company as envisaged by Ind AS 108 operating segments. Accordingly, amounts appearing in these financial statements relates to the business of providing housing loans and property loans.

The company does not have any separate geographic segment other than India. As such there are no separate reportable segments as per IND AS 108 operating segments.

29. CONTINGENT LIABILITIES AND COMMITMENTS_

A) CONTINGENT LIABILITIES-

1) There is no contingent liability as at March 31, 2024 (31-03- 2023: Nil).

2) The Company''s pending litigations comprise of Proceedings by the company against its customers for recovery of loans, pending with various authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in the financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

B) CONTINGENT COMMITMENTS-

1) Undisbursed Amount- Loans sanctioned but undisbursed or partially disbursed amount is Rs. 1,468.07 Lakh as on March 31, 2024 (31.03.2023 - Rs. 948.48 Lakh).

30. RETIREMENT BENEFITS_

A) DEFINED CONTRIBUTION PLANS:

The company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards provident and other fund, which is defined contribution plan. The company has no obligation other than to make the specified contributions. The contributions are charged to the statement of profit and loss as they accrue. The amount recognized as an expense towards contribution to provident and other fund for the year aggregated to Rs. 13.57 Lakh (Previous Year: Rs. 11.95 Lakh).

(B) DEFINED BENEFIT PLAN:

The Company has a defined benefit plan i.e., Gratuity, for its employees. Under the gratuity plan every employee who has completed at least five years of services gets a gratuity on departure at 15 days of salary for each year service.

Contribution to gratuity fund

In accordance with Indian Accounting Standard 19 ‘Employee benefits'', actuarial valuation was done in respect of the aforesaid defined benefit plan of gratuity based on the following assumption:

A. ACTUARIAL RISK:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

B. INVESTMENT RISK:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

C. LIQUIDITY RISK:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cash flows.

D. MARKET RISK:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E. LEGISLATIVE RISK:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/ regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

AKME ESOP SCHEME 2021 (EMPLOYEE STOCK OPTION SCHEME I)

i. The Company has an Employee Share based payment scheme, under which stock options were granted to employees as per details provided below:

During the year ended 31 March 2024, the employees has exercise the second tranche of ESOP i.e. 25% second vesting of share option from the date of grant out of approved 15,67,350 of Employee Stock options under the AKME ESOP Scheme 2021 (pre-split and bonus) via board resolution dated 7th April 2021 and shareholders'' special resolution dated 30th April 2021. The Board has granted 15,57,000 options under ESOP 2021, which is in accordance with the provisions of the law and/or guidelines issued by relevant authority applicable at the date of the grant.

ii. Vesting Conditions:

Vesting of options will be over a period of three years from the effective date in following manner:-

a) 25% on completion of one year from the date of grant

b) 25% on completion of second year from the date of grant

c) 50% on completion of third year from the date of grant

iii. Contractual Life:

The contractual life (Vesting period plus exercise period) ranges from 1.6 years to 3.6 years i.e. vesting period ranging from 1 to 3 years and exercise period of 6 months from the date of vesting of options. In case of resignation of, employee may exercise all options vested on the date of submission of resignation. Similarly in case of termination, employee may exercise all options vested before vacating the office.

iv. Method of Settlement: AKME ESOP Scheme 2021 will be settled through issue of Equity shares.

v. Method used to account for ESOP: The Company used Intrinsic Value Method for accounting of the ESOP Option.

vi. Option movement during the year 2023-24

STAR HOUSING FINANCE LIMITED EMPLOYEE STOCK OPTION SCHEME II 2023

As per the outcome of the Board Meeting held on 17th January, 2024, 6807500 no. of ESOPs granted to eligible employees under Star Housing Finance Ltd Employee Stock Option Scheme II, 2023 are being surrendered by the employees in the wake of fall in price of the equity shares of the company. Currently no options are outstanding under this scheme.

31. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES AS PER MSMED ACT 2006_

There is no overdue amount that need to be disclosed in accordance with the Micro Small and Medium Enterprises Development Act, 2006 (the MSMED) pertaining to Micro or Small enterprises.

32. MATURITY ANALYSIS OF ASSETS AND LIABILITIES_

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered or settled. With regards to the loans and advances to customers, the company uses the same basis of expected repayment behaviour as used for estimating the EIR.

B) MEASUREMENT OF FAIR VALUE

VALUATION METHODOLOGIES OF FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE:

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the financial statements, these fair values were calculated for disclosure purpose only:

SHORT TERM FINANCIAL ASSETS AND LIABILITIES

For financial assets and financial liabilities that have a short term maturity(less than twelve months), the carrying amounts, which are net of impairment, area reasonable approximation of their fair value.

Such instruments include: cash and cash equivalent, other financial assets (excluding security deposit), trade payables and other financial liability.

LOANS AND ADVANCES TO CUSTOMERS

In case of retail loans and term loans with floating rates, the interest rate represents the market rate. Consequently the carrying amount represents the fair value.

Term Loan with fixed rate: - The fair values estimated by discounted cash flow model that incorporates assumptions for

credit risk, probability of default and loss given default estimates. As per management assumptions, the fair value of the loans & advances has been at par with the carrying value of the portfolio considering the fact that the competitive interest rates in the operational area of the company and the portfolio in which the company has exposure are more or less as per prevailing market rates.

INVESTMENTS

Investment in mutual funds has been taken as Level 2 and value has been considered based on mutual fund statement. Investments in unlisted equity instruments has been taken as Level 2 and value has been considered based on latest available fair value of the Instruments.

BORROWINGS

In case of borrowings with floating rates, the interest rate represents the market rate. Consequently the carrying amount represents the fair value.

TRANSFER BETWEEN LEVEL I AND LEVEL II

There has been no transfer in between level l and level ll.

C) CAPITAL

The company maintains an activity managed capital base to cover risks inherit in the business and is meeting the capital adequacy of the local regulatory body, National Housing Bank (NHB). The adequacy of the Company''s capital is monitored using, among other measures the regulation issued by NHB.

The Company has complied in full with all its externally imposed capital requirements over the reported period. Equity share capital and other equity are considered for the purpose of Company''s capital management.

CAPITAL MANAGEMENT

The Primary objectives of the company''s capital management policy are to ensure that the Company complies with externally imposed capital requirement and maintains strong credit ratings and healthy capital ratios in order to support its business and to maximize shareholder value.

The company manages its capital structure and makes adjustments to it according to changes in economic conditions and the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend payment of shareholders, return capital to shareholder or issue capital securities. No changes have been made to the objectives, policies and processes from the previous years. However, they are under constant review by the board.

The Company''s policy is to keep the gearing ratio at reasonable level of 5-6 times in imminent year while Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 dated February 17, 2021 currently permits HFCs to borrow up to 12 times of their net owned funds (“NOF”). The Company includes with in debt, it''s all interest bearing loans and borrowings.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

Internal capital adequacy assessment process (ICAAP): The Company is in the process of devising suitable ICAAP, looking to the size of scale and operation of the company. Nevertheless, the company has been maintaining the CRAR of 54.65% as against prescribed minimum level of 15%. Thus the company not only covering the regular risk i.e., credit, market and operation but also the residual risk (Litigation, reputation, strategic risks etc).

34. FINANCIAL RISK MANGEMENT OBJECTIVES AND POLICIES_

The Company‘s Principal financial liabilities comprise borrowings. The main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s financial assets include loans, cash, and cash equivalents, investments and other financial assets and that derives directly from its operations.

(I) CREDIT RISK

Credit Risk is the risk of financial loss to the company if a customer or counter party to financial instruments fails to meet its contractual obligations and arises primarily from the company''s loan and investments.

The carrying amounts of financial assets represent the maximum credit risk exposure.

A. LOANS AND ADVANCES

The Company has a comprehensive framework for monitoring credit quality of its retail and other loans primarily based on number of days past due. The Company manage credit risks by using a set of credit procedures and guidelines, laid down in our credit risk policy, to ensure effective credit risk management and health of our portfolio. The adherence to the policy and various process is monitored and appraised in credit committee meetings on a quarterly basis. The policy is amended periodically to ensure compliance with the guidelines of the RBI as well as other regulatory bodies. We have implemented a structured credit approval process, established a process by which separate set of verifications are conducted by a customer relationship manager and service officer to ensure the quality of customers acquired as well as eliminate misuse of borrowing practices and comprehensive credit risk assessment, which encompasses analysis of relevant quantitative and qualitative information to ascertain the credit worthiness of a potential customer. Portfolio quality, credit limits, collateral quality and credit exposure limits are regularly monitored at various levels.

The above exposures are entirely concentrated in India. There is no overseas exposure.

An impairment analysis is performed at each reporting date based on the facts and circumstances existing on that date to identify expected losses on account of time value of money and credit risk. For the purpose of this analysis, the loan receivables are categorized into groups based on days past due. Each group is then assessed for impairment using the Expected Credit Loss (ECL) model as per the provisions of Ind AS 109- Financial instruments.

STAGING

As per the provisions of Ind AS 109 general approach all financial instruments are allocated to stage 1 on initial recognition. However, if a significant increase to credit risk is identified at the reporting date as compared with the initial recognition, then an instrument is transferred to stage 2. If there is objective evidence of impairment, then the asset is credit impaired and transferred to stage 3.

The Company considers a financial instruments defaulted and therefore stage 3 (credit- impaired) for ECL calculations in all cases when the borrower becomes 90 days past due on its contractual payments.

For Financial assets in stage 1, the impairment calculated based on defaults that are possible in next twelve months, whereas for financial instruments in stage 2 and 3 the ECL calculation considers default event for the lifespan of the instrument.

As per Ind AS 109, Company assesses whether there is a significant increase in credit risk at the reporting date from the initial recognition. Company has staged the assets based on the day past dues criteria and other market factors which significantly impacts the portfolio.

GROUPING

As per Ind AS 109, Company is required to group the portfolio based on the shared risk characteristics. Company has assessed the risk and its impact on the various portfolios and has divided the portfolio into following groups:

- Retail Loans (Housing and non-housing loans)

- Other Loan & Advances

- Builder and Developer loans, and are further sub grouped as a. Geography wise (State wise) and b. Salaried and Nonsalaried wise

IMPAIRMENT-EXPECTED CREDIT LOSS (ECL):

The accounting standard, Ind AS 109 does not specifically prescribe any methodology for computing ECL. However, entities are required to adopt sound and market acceptable methodologies which are in line with the size, complexity and risk profile of the financial entity for computing the ECL. The Company uses following three main components to measure ECL:

a. Probability of default. (PD)

b. Loss given default (LGD).

c. Exposure at default (EAD).

PROBABILITY OF DEFAULT (PD):

PD is defined as the probability of whether borrowers will default their obligations in an ensuring period of 12 months. Historical PD is derived from the HFC''s internal data calibrated with forward looking macro-economic factors.

For computation of probability of default company has considered three years Historical data and the current Macroeconomic conditions along with probable Impacts of COVID-19. Based on these factors PD has been worked out.

LOSS GIVEN DEFAULT (LGD):

LGD is an estimate of the loss from a transaction given that a default occurs. Under Ind AS 109, Lifetime LGD''s are defined as collection of LGD''s estimates applicable to different future periods.

Various approaches are available to compute the LGD. Company has considered workout LGD approach.

The following steps are performed to calculate the LGD.

1. ) Haircut was applied on the value of the collateral (asset cost) as of reporting date.

2. ) The outstanding amount was adjusted with the haircut adjusted collateral value.

3. ) LGD has been computed using the outstanding amount in step 2.

Over and above the LGD has been floored using regulatory guidelines.

EXPOSURE AT DEFAULT (EAD)

As per Ind AS 109, EAD is estimation of the extent to which the financial entity may be exposed to counterparty in the event of default and at the time of counterparty''s default. Company has modelled EAD based on the contractual and behavioural cash flows till the lifetime of the loan and considering the expected prepayments.

Company has considered expected cash flows for all loans at DPD bucket level for each of the segments which were used for computation for ECL. Moreover, the EAD comprised of principal component, accrued interest on the outstanding exposure for the ensuring 12 months. So discounting was done for computation of expected credit loss.

The loss rates are based on actual credit loss experience over past years. These loss rates are then adjusted approximately to reflect differences between current and historical economic conditions and the Company''s view of prevailing economic conditions over the expected lives of the loan receivable.

Movement in provision of expected credit loss has been provided in below note.

B COLLATERAL AND OTHER CREDIT ENHANCEMENTS

The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are in place covering the acceptability and valuation of each type of collateral. The main types of collateral obtained are mortgaged properties based on the nature of loans. Management monitors the market value of collateral in accordance with underlying agreement. The Company advances loan to maximum extent of 80% of the value of the mortgaged properties.

(II) ANALYSIS OF RISK CONCENTRATION

The Company''s concentrations of risk are managed based on Loan to value (LTV) segregation as well as geographical spread. The following tables stratify credit exposures from housing and other loans to customers by range of loan to-value (LTV) ratio .LTV is calculated as the ratio of gross amount of the loan - or the amount committed for loan commitments - to the value of the collateral.

(MI) LIQUIDITY RISK

Liquidity risk is the risk that the Company will encounter difficulty in meeting 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.

The company is monitoring its liquidity risk by estimating the future inflows and outflows during the start of the year and planned accordingly the funding requirement. The company manages the liquidity by unutilized cash credit facility, term loan and by issuing the NCDs. The composition of the Company''s liability mix ensures healthy asset liability maturity pattern and well diverse resource mix. The total cash credit and working capital limit available to the Company is INR 27 Lakh spread across 3 banks. The utilization level is maintained in such a way that ensures sufficient liquidity on hand. Majority of the company''s portfolio is individual housing loans and the company have off book asset under management. Total AUM is Rs. 42,686.39 Lakh (own book AUM is Rs. 38,290.29 Lakh and off book AUM is Rs. 4,396.10 Lakh).

(IV) MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk includes interest rate risk and foreign currency risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

A. 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. The company''s exposure to the risk of changes in market interest rates relates primarily to the company''s investment in bank deposits and variable interest rate on borrowings and lending. Whenever there is a change in borrowing interest rate for the company, necessary change is reflected in the lending interest rates over the timeline in order to mitigate the risk of change in interest rates of borrowings.

B. Foreign Currency Risk

The company does not have any instrument denominated or traded in foreign currency. Hence such risk does not affect the company.

35. IMPACT OF COVID-19_

COVID-19 pandemic had led to a significant decrease in global & local economic activities, which may persist. The company has used the principal of prudence to provide for the impact of pandemic on the financial statements specifically while assessing the expected credit loss on financial assets by applying management overlays, approved by its Board of Directors.

36. Disclosure required under the RBI Resolution Framework 2.0 for COVID-19 related Stress” of Individuals and Small Business dated May 05, 2021 in the Format-B prescribed in the Resolution Framework -1.0 are given below:

37. The title deeds of immovable property held by the company are duly executed in favour of the company.

38. No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (prohibition) Act 1988 and rules made thereunder, as at 31st March 2024 and 31st March 2023.

39. The company is not declared wilful defaulter by any bank or financial institution or any other lender, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India, during the year ended 31st March 2024 and 31st March 2023.

40. The Company does not have any transactions with the companies struck off under section 248 of The Companies Act 2013 or section 560 of Companies Act, 1956 during the year ended 31st March 2024 and 31st March 2023.

41. Registration of charges or satisfaction with registrar of Companies (ROC): There has been no delay in registration of charges or satisfaction with ROC beyond the statutory date during the year ended 31st March 2024.

42. The Company has borrowings from banks and financial institutions on the basis of security of current assets and the quarterly returns filed by the company with the banks and financial institutions are in accordance with the books of accounts of the company for the respective quarters.

43. The company has taken borrowings from banks and financial institutions and utilized them for the specific purpose for which they were taken as at the balance sheet date. Unutilized funds as at 31st March 2024 are held by the company in the form of deposits till the time utilization is made subsequently.

44. There have been no transactions which have not been recorded in the books of accounts that have been surrendered or disclosed as income during the year ended 31st March 2024 and 31st March 2023. In the tax assessments under the Income Tax Act, 1961 there have been no previously unrecorded income and related assets which were to be properly recorded in the books of account during the year ended 31st March 2024 and 31st March 2023.

45. As a part of normal lending business, the company grants loans and advances on the basis of security/guarantee provided by the borrower/co-borrower. These transactions are conducted after exercising proper due diligence.

Other than the transactions described above,

a. No funds have been advanced or loaned or invested by the Company to or in any other person(s) or entity(ies) including foreign entities (“Intermediaries”) with the understanding that the intermediary shall lend or invest in a party identified by or on behalf of the company (ultimate beneficiaries):

b. No funds have been received by the Company from any party(ies) (funding party) with the understanding that the Company shall whether, directly or indirectly, lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate beneficiaries”) or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

46. The company has not traded or invested in crypto currency or virtual currency during the year ended 31st March 2024 and 31st March 2023.

47. Pursuant to the RBI circular DOR.STR.REC.68/21.04.048/2021-22 dated 12 November 2021- “Prudential norms on Income Recognition, Asset Classification and Provisioning (IRACP) pertaining to Advances - Clarification”. In this regards our company has been following the same procedure as specified in the said guidelines with regard to classify the account as NPA or SMA.

We hereby further clarify that the account is recognized as NPA or SMA from the very date it crosses the 90 days / 60 days or 30 days as applicable from its due date of repayment for respective classification. As such, NPA amount computed by the company does not have any impact of the above referred circular. Apart from this no NPA account is being upgraded unless the entire overdue amount as on date is fully recovered.

48. SUBSEQUENT EVENT_

There is no significant subsequent event that has occurred after the reporting period till the date of these financial statements.

49. CSR EXPENSES_

Other expenses include Rs. 7.51 lakh for the year ended March 31, 2024 (P.Y. Nil, as the Company does not have to comply with the requirements of CSR Committee in view of the fact that Company''s net worth, or turnover or net profit does not exceed the limits as mentioned in the Section 135 of the Companies Act, 2013.) towards Corporate Social Responsibility (CSR) expenditure, in accordance with the Section 135 of the Companies Act, 2013. Gross Amount required to be spent by the Company during the year is Rs. 7.51 lakh.

50. The figures for the previous year have been regrouped and / or reclassified to conform to current year''s classification.

51. SURVEY - INCOME TAX_

The survey operations were carried out by the Income Tax Department at the Office of the Company during the period from November 23, 2022, to November 27, 2022. The department has issued the notices u/s 143 (1) and 143 (3) seeking clarifications on certain points pertaining to the income and other ancillary issues related to the company. The company submitted its reply from time to time. Finally, the department has reassessed the income of the company for the A.Y. 2022-23 and found that the assessments submitted earlier was in order and closed the matter vide their letter dated 23.03.2024 with nil demand and penalty.

DISCLOSURES REQUIRED BY THE RESERVE BANK OF INDIA /NATIONAL HOUSING BANK AS PER NOTIFICATION NO. DOR.FIN.HFC. CC.NO.120/03.10.136/2020-21 DATED FEBRUARY 17. 2021-MASTER DIRECTION - NON-BANKING FINANCIAL COMPANY - HOUSING FINANCE COMPANY (RESERVE BANK) DIRECTIONS, 2021_

1. MINIMUM DISCLOSURES:

The following additional disclosures have been given in terms of Notification no. DOR.FIN.HFC.CC.No.120/03.10.136/2020-21 dated February 17. 2021- Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 issued by the RBI.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

The accounting policies regarding key areas of operations are disclosed as note 1 of accounting policy to the Standalone Financial Statement for the year ended March 31, 2024.

(b) Liquidity Coverage Ratio (LCR)

The Company was not required to comply with the guidelines on Liquidity Coverage Ratio (LCR) in line with Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 as at 31 March 2024.

(II) RESERVE FUND U/S 29C OF NHB ACT, 1987 - STATUTORY RESERVE

The Company has transferred a sum of Rs. 229.42 Lakh (PY Rs.160.33 Lakh) during the year in the Special Reserve out of its profits in terms of Section 29C of the National Housing Bank Act, 1987. This amount includes a sum of Rs.158.14 Lakh (PY 106.82 Lakh) toward the reserve created under Section 36(1) (viii) of the Income Tax Act, 1961. Breakup of transfer of funds in both the reserves is as under: -

(IV) DERIVATIVES

There has been no forward rate contract/interest rate swap or any other derivative transaction carried out by the company during the year ended As at March 31st, 2024 and As at March 31st, 2023.

(V) DISCLOSURES RELATING TO SECURITIZATION

There has been no securitization/assignment transactions carried out by the company during the year ended March 31st, 2024 and March 31st, 2023.

B. Exposure to capital market

There is no exposure to capital market during the year ended as on March 31st, 2024 and as on March 31st, 2023.

C. Details of financing of parent company products

During the year, Company has not entered into any (a) derivative transaction, (b) securitization and assignment transaction, (c) financing of Parent Company product, and (e) finance of any unsecured advances against intangible securities such as rights, licenses, authority etc. as collateral security.

D. Details of single borrower limit(SGL)/group borrower limit (GBL)

The Company has not exceeded limit prescribed by National Housing Bank for Single Borrower Limit (SGL) and Group Borrower Limit (GBL).

(VII) NET PROFIT OR LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGES IN ACCOUNTING POLICIES

There are no prior period items that have impact on the current year''s profit and loss.

(VIII) REVENUE RECOGNITION

There have been no instances in which revenue recognition has been postponed pending the resolution of significant uncertainties.

(IX) CONSOLIDATED FINANCIAL STATEMENTS (CFS)

There are no group company to be consolidated, and accordingly, is not required to prepare consolidated financial statement as per Ind AS 110- “Consolidated Financial Statements”.

VII) OVERSEAS ASSETS

The company does not have any joint ventures and subsidiaries abroad during the year ended as at March 31, 2024 and as at March 31, 2023 and hence this disclosure is not applicable.

VIII) OFF-BALANCE SHEET SPVS SPONSORED

There was no off-balance sheet SPVs sponsored by the company during the year ended as at March 31, 2024 and as at March 31, 2023.

IX) DISCLOSED PURSUANT TO NOTIFICATION NO. NHB.HFC.CG-DIR.1/2016 DATED 9TH FEBRUARY 2017 ISSUED BY NHB FOR CUSTOMER COMPLAINTS

Customer complaints*

(V) STOCK RATIO-NOT APPLICABLE

(VI) INSTITUTIONAL SET-UP FOR LIQUIDITY RISK MANAGEMENT

The company has an Asset Liability Management Committee (ALCO) to monitor asset liability mismatches to ensure that there is no imbalances or excessive concentration on the either side of the balance sheet. The company maintains a judicious mix of borrowings in the form of Term Loans, Refinance, and working capital and continues to diversify its source of borrowings with the emphasis on longer tenor borrowings. The company has diversified mix of investors/ lenders which includes Banks, National Housing Bank, Financial Institution.

The Liquidity Risk Management (LRM) of the company is governed by the LRM Policy approved by the Board. The Asset Liability Committee (ALCO) is responsible for implementing and monitoring the liquidity risk management strategy of the company in line with its risk management objectives and ensures adherence to the risk tolerance/ limits set by the Board.

Refer note no. 33 of standalone financials statement

7. LOANS AGAINST SECURITY OF SHARES- NOT APPLICABLE

8. LOANS AGAINST SECURITY OF SINGLE PRODUCT - GOLD JEWELLERY- NOT APPLICABLE

11. PRINCIPAL BUSINESS CRITERIA FOR HFCS

"Housing finance company” shall mean a company incorporated under the Companies Act, 2013 that fulfils the following conditions:

a) It is an NBFC whose financial assets, in the business of providing finance for housing, constitute at least 60% of its total assets (netted off by intangible assets).

b) Out of the total assets (netted off by intangible assets), not less than 50% should be by way of housing financing for individuals.

2) Breach of Covenants

The Company has complied with the covenants under the terms of major borrowing facilities throughout the year ended 31st March 2024 and 31st March 2023.

3) Divergence in Asset Classification and Provisioning

The last inspection of the regulator for the year ended 31.03.2022 conducted on between 12.06.2023 to 16.06.2023. The regulator has indicated no divergence in asset classification and provisioning. The regulator is yet to inspect the company for the audit of year ended 31st March 2024 and 31st March 2023.

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Mar 31, 2018

1. SHARE CAPITAL

1.1 The company has, at present, one class of issued, subscribed and paid up share referred to as equity share having a par value of Rs 10/- each. Each holder of equity share is entitled to one vote per share.

1.2 Company has increased its Authorised Share Capital Rs. 12 Crore to Rs.14 Crore during the year .

1.3 Reconciliation of the number of shares outstanding and the amount of share capital as at the beginning and at the end of the reporting period :

2. Reserves& Surplus

2.1 The Company has transferred a sum of Rs. 80.00 lacs (Rs. 42.08 lacs) during the year in the Special Reserve out of its profits in terms of Section 29C of the National Housing Bank Act, 1987. This amount includes the transfer of a sum of Rs.29.22 lacs (Rs.15.72 lacs) in the reserve created under Section 36(1) (viii) of the Income Tax Act, 1961. Breakups of transfer of funds in both the reserves are as under:-

3. Short Term provisions- Provision for Taxation includes Rs. 106.97 lacs (Rs. 67.25 lacs) as Tax provision for current year.

4. Housing Finance

4.1 As certified by the management, loans given by the company are secured by Equitable Mortgage/Registered Mortgage of the property and assets financed and/or assignment of Life Insurance Policies and /or personal Guarantees and are considered appropriate and good.

4.2 The Non-Performing Assets (NPA) as on March 31st 2018, consisting of principal loans outstanding where payments of EMI were in arrears for 90 days or more amounted to Rs. 59,54,494/- (Rs. 31,68,475/-). As per prudential norms prescribed by the NHB, the company is required to carry a contingency provision of Rs. 36,80,128/- (Rs. 21,43,994/-) in respect of Standard and Non Performing Housing loans assets. The company has made during the year, Provision of Rs. 15,36,134/- (Rs. 7,12,484/-) thereby total provisioning of Rs 36,80,128/- (Rs. 21,43,994/-) for contingencies against the requirement of Rs. 36,80,128/- of total provision. Company has sufficient provision as per the requirements of the guidelines on prudential norms issued by the National Housing Bank (NHB).

5.1 The Company has not written off any loan amount during the year ended 31.03.2018.

5.2 In terms of the requirement of the National Housing Bank (NHB) Directions 2010, further amended vide Circular no. NHB.HFC.Dir.3/CMD/2011 dtd August 5th 2011, the company has met the said requirements as under by providing Provisions for contingencies @ 0.25% on all standard assets in respect of all loans.

6. As per Accounting standard (AS-20) "Earnings per Share" is calculated for the Year as on 31.03.2018 is Rs. 2.43. EPS for the previous year as on 31.03.2017 was Rs.1.19.

d. The Company has given new loans during the year to parties who categories under the Related Parties as Normal Business of financing Transactions. As these transactions were done as normal business transactions, these have not been reported as per the disclosure under Related Party Transactions.

7. The main business of the company is to provide loans for the purchase or construction of residential houses and all other activities of the company revolve around the main business and as such there are no separate reportable segments as specified in Accounting Standard (AS-17) on "Segment Reporting", and under paragraph 29(2) of the Housing Finance Companies (NHB) Directions, 2010, which needs to be reported.

IV. During the year, Company has not entered into any (a) derivative transaction, (b) securitisation and assignment transaction, (c) financing of Parent Company product, and (e) finance of any unsecured advances against intangible securities such as rights, licenses, authority etc as collateral security.

V. The Company has not exceeded limit prescribed by National Housing Bank for Single Borrower Limit (SGL) and Group Borrower Limit (GBL).

VI. The Company has not obtained registration from any other financial sector regulator.

VII. During the year, a) no prior period items occurred which has impact on profit and loss account, b) no change in any accounting policy, c) there were no circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties, d) there is no withdrawal from Reserve fund, e) Company has not accepted public deposits, f) Company does not consists of any Overseas Assets and g) Company does not consists Off balance Sheet SPVs sponsored (which are required to be consolidated as per accounting Norms).

VIII. The Company has no subsidiary company. Hence, requirement of consolidated financial statements is not applicable to the company.

8. NHB, has not levied any penalty under HFC (NHB) Directions, 2010 on the company.

9. Provident Fund and ESIC.

In the current year, the company has paid all the statutory dues as per relevant law.

10. Investments in shares of Other companies:

11. There are no Micro, Small and Medium Enterprises (MSME) to whom the Company owes dues, which are outstanding for more than 45 days as at 31-03-2018. 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 at information available with the Company.

12. Figures of the previous year have been regrouped, rearranged and reclassified wherever necessary.

13. Figures in brackets represent previous full year''s figures i.e figures for Financial Year 2016-17.

14. Credit assigned by Credit Rating Agencies and Migration of Rating during the year.

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Mar 31, 2017

1. Short Term provisions- Provision for Taxation includes Rs. 67.25 lacs (Rs. 52.25 lacs) as Tax provision for current year.

2. Housing Finance

3. As certified by the management, loans given by the company are secured by Equitable Mortgage/Registered Mortgage of the property and assets financed and/or assignment of Life Insurance Policies and /or personal Guarantees and are considered appropriate and good.

4. The Non-Performing Assets (NPA) as on March 31st 2017, consisting of principal loans outstanding where payments of EMI were in arrears for 90 days or more amounted to Rs. 31,68,475/- (Rs. 32,38,629/-). As per prudential norms prescribed by the NHB, the company is required to carry a contingency provision of Rs. 21,43,994/- (Rs. 14,31,510/-) in respect of Standard and Non Performing Housing loans assets. The company has made during the year, Provision of Rs. 7,12,484/- (Rs. 2,38,570/-) thereby total provisioning of Rs 21,43,994/ - (Rs. 14,31,510/-) for contingencies against the requirement of Rs. 21,43,994/- of total provision. Company has sufficient provision as per the requirements of the guidelines on prudential norms issued by the National Housing Bank (NHB).

5. The Company has written off 1 loans during the year ended 31.03.2017 amounting to Rs 32,809/-. The figure for the loans written off during the FY 2015-16 was Rs. 10,43,225/-.

6. In terms of the requirement of the National Housing Bank (NHB) Directions 2010, further amended vide Circular no. NHB.HFC.Dir.3/CMD/2011 dtd August 5th 2011, the company has met the said requirements as under by providing Provisions for contingencies @ 0.40% on all standard assets in respect of all loans.

7. As per Accounting standard (AS-20) “Earnings per Share” is calculated for the Year as on 31.03.2017is Rs. 1.19. EPS for the previous year as on 31.03.2016 was Rs.0.97. As per AS 20 EPS for the year 2015-16 has been restated on the basis of bonus shares issued during the year.

8. As per Accounting standard (AS-18) on “Related Party Disclosures” details of transactions with related parties as defined therein are as given below:

9. List of related parties with whom transactions have taken place during the year and their nature of relationship is as follows:

Key Managerial personals :

10. Nirmal Jain

11. Dr. M.L. Nagda

Relative of Key Managerial Personals :

12. Manju Devi Jain (Wife of Director- Nirmal Kumar Jain)

13. Ashish Jain (Son of Director- Mohan Lal Nagda)

14. The Company has given new loans during the year to parties who categories under the Related Parties as Normal Business of financing Transactions. As these transactions were done as normal business transactions, these have not been reported as per the disclosure under Related Party Transactions.

15. The main business of the company is to provide loans for the purchase or construction of residential houses and all other activities of the company revolve around the main business and as such there are no separate reportable segments as specified in Accounting Standard (AS-17) on “Segment Reporting”, and under paragraph 29(2) of the Housing Finance Companies (NHB) Directions, 2010, which needs to be reported.

16-For the purposes of this clause, the term ‘Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.

17. Figures of the previous year have been regrouped, rearranged and reclassified wherever necessary.

18. Figures in brackets represent previous full year''s figures i.e. figures for Financial Year 2015-16.

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Mar 31, 2016

1. SHARE CAPITAL :

2 The company has, at present, one class of issued, subscribed and paid up share referred to as equity share having a par value of Rs 10/- each. Each holder of equity share is entitled to one vote per share.

3 Company has not increased/ decreased its Authorized Share Capital during the year.

4. Reconciliation of the number of shares outstanding and the amount of share capital as at the beginning and at the end of the reporting period:

5.Reserves& Surplus

6. The Company has transferred a sum of Rs. 33.78lacs (Rs. 19.60lacs) during the year in the Special Reserve out of its profits in terms of Section 29C of the National Housing Bank Act, 1987. This amount includes the transfer of a sum of Rs. 6.93lacs(Rs. 4.44lacs) in the reserve created under Section 36(1) (viii) of the Income Tax Act, 1961. Breakup of transfer of funds in both the reserves are as under:-

7. Short Term provisions- Provision for Taxation includes Rs. 52.25lacs (Rs. 30.45 lacs) as Tax provision for current year.

8. Housing Finance

9. As certified by the management, loans given by the company are secured by Equitable Mortgage/Registered Mortgage of the property and assets financed and/or assignment of Life Insurance Policies and /or personal Guarantees and are considered appropriate and good.

10. The Non-Performing Assets (NPA) as on March 31st 2016, consisting of principal loans outstanding where payments of EMI were in arrears for 90 days or more amounted to Rs. 32,38,629/- (Rs. 25,74,873/-). As per prudential norms prescribed by the NHB, the company is required to carry a contingency provision of Rs. 14,31,510/- (Rs. 11,92,940/ -) in respect of Standard and Non Performing Housing loans assets. The company has made during the year, Provision of Rs. 2,38,570/- (Rs. 5,29,027/-) thereby total provisioning of Rs14,31,510/-( Rs 11,92,940/-) for contingencies against the requirement of Rs. 14,31,510/- of total provision. Company has sufficient provision as per the requirements of the guidelines on prudential norms issued by the National Housing Bank (NHB).

11. The amount of outstanding Loans provision made by the company as per the guidelines by the NHB-

12. Details of the Company Outstanding Loans and provisions thereon as on 31.03.2016 are as under:

A) As per Paragraph 28 of NHB directions 2010-

Provision for Standard/ Sub Standard/ Doubtful and Loss Assets as per NHB Directions (paragraph 28)as on 31-03-2016

13 The Company has written off 6 loans during the year ended 31.03.2016 amounting to Rs 10,43,225/-. The figure for the loans written off during the FY 2014-15 was Rs. 4,79,515/-.

14 In terms of the requirement of the National Housing Bank (NHB) Directions 2010, further amended vide Circular no. NHB.HFC.Dir.3/CMD/2011 dtd August 5th 2011, the company has met the said requirements as under by providing Provisions for contingencies @ 0.40% on all standard assets in respect of all loans.

15. As per Accounting standard (AS-20) “Earnings per Share” is calculated for the Year as on 31.03.2016 is Rs. 1.95. EPS for the previous year as on 31.03.2015 was Rs.1.52.

16. As per Accounting standard (AS-18) on “Related Party Disclosures” details of transactions with related parties as defined therein are as given below:

17. List of related parties with whom transactions have taken place during the year and their nature of relationship is as follows :

Key Managerial personals :

a. Nirmal Jain

b. Dr.M.L.Nagda

Relative of Key Managerial Personals :

a. Manju Devi Jain (Wife of Director- Nirmal Kumar Jain)

b. Ashish Jain ( Son of Director- Mohan Lal Nagda)

18. The Company has given new loans during the yearto parties who categories under the Related Parties as Normal Business of financing Transactions. As these transactions were done as normal business transactions, these have not been reported as per the disclosure under Related Party Transactions.

19. The main business of the company is to provide loans for the purchase or construction of residential houses and all other activities of the company revolve around the main business and as such there are no separate reportable segments as specified in Accounting Standard (AS-17) on “Segment Reporting”, and under paragraph 29(2) of the Housing Finance Companies (NHB) Directions, 2010, which needs to be reported.

20. As required by the guidelines of NHB, the following additional Disclosures are as follows:

21. NHB, has not levied any penalty under HFC (NHB) Directions, 2010 on the company.

22. In the Current year the company has paid advance amount of Rs. 4.00 lacs for the acquisition of land and office building. So the total Amount outstanding under Advance against property is of Rs72.00 lacs and is being carried forward.

23. Provident Fund and ESIC.

In the current year, the company has taken registration under the relevant act, and company has paid all the statutory dues on due date.

24. There are no Micro, Small and Medium Enterprises (MSME) to whom the Company owes dues, which are outstanding for more than 45 days as at 31-03-2016. 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 at information available with the Company.

25. Figures of the previous year have been regrouped, rearranged and reclassified wherever necessary.

26. Figures in brackets represent previous full year’s figures i.e figures for Financial Year 2014-15.

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Mar 31, 2015

1. SHARE CAPITAL

1.1 The company has, at present, one class of issued, subscribed and paid up share referred to as equity share having a par value of Rs 10/- each. Each holder of equity share is entitled to one vote per share.

1.2 Company has increased its Authorised Share Capital from Rs. 300.00lacs to Rs. 600.00lacs.

1.3 2167250 Equity shares of Rs 10/- have been allotted as fully paid Bonus Shares during the period by utilising its Share Premium Reserve.

1.4 Further the company has made an IPO of 1600000 shares of Rs 10/- each. The Equity Shares have been priced and allotted at Rs 30/-per equity share (Including share premium of Rs 20/- per Equity share).

1.5 The Company has raised Rs 480.00 lacs out of the IPO. The Equity share offers to the public have been allotted on 20th march 2015 and have been listed on Bombay Stock Exchange (BSE).

1.6 Accordingly, on account of above, Issued, Subscribed and Paid up Capital of the Company has been increased to Rs. 593.45lacs from Rs. 216.725lacs and an amount of Rs. 298.66lacs (Net of Share issue expense of Rs 21.34 lacs) has been credited to share premium account. The proceeds of the issue (net of issue expenses) are being utilized for the purpose mentioned in the prospectus/retained in Bank Deposit pending utilization.

1.7 Reconciliation of the number of shares outstanding and the amount of share capital as at the beginning and at the end of the reporting period:

2. Reserves & Surplus

2.1 The Company has transferred a sum of Rs. 19.60lacs (Rs. 10.71lacs) during the year in the Special Reserve out of its profits in terms of Section 29C of the National Housing Bank Act, 1987. This amount includes the transfer of a sum of Rs. 4.44 lacs (Rs. 3.21lacs) in the reserve created under Section 36(1) (viii) of the Income Tax Act, 1961. Breakup of transfer of funds in both the reserves are as under:-

2.2 Company has utilised total amount of Rs. 23808397/- from Share premium account for the allotment of 21, 67,250 shares of Rs 10/- each as bonus shares and Rs 2135897/- for share issue expense.

3. Short Term provisions- Provision for Taxation includes Rs. 30.45lacs (Rs. 16.87lacs) as Tax provision for current year.

4. Housing Finance

4.1 As certified by the management, loans given by the company are secured by Equitable Mortgage/Registered Mortgage of the property and assets financed and/or assignment of Life Insurance Policies and /or personal Guarantees and are considered appropriate and good.

4.2 The Non-Performing Assets (NPA) as on March 31st 2015, consisting of principal loans outstanding where payments of EMI were in arrears for 90 days or more amounted to Rs. 25,74,873/- (Rs. 19,40,375/-). As per prudential norms prescribed by the NHB, the company is required to carry a contingency provision of Rs. 11, 92,940/- (Rs. 6, 63,913/-) in respect of Standard and Non Performing Housing loans assets. The company has made during the year, Provision of Rs. 5,29,027/- (Rs. 4,06,399/-) thereby total provisioning of Rs. 11,92,940/-( Rs6,63,913/-) for contingencies against the requirement of Rs. 11,92,940/- of total provision. Company has sufficient provision as per the requirements of the guidelines on prudential norms issued by the National Housing Bank (NHB).

5. The amount of outstanding Loans provision made by the company as per the guidelines by the NHB-

5.1 Details of the Company Outstanding Loans and provisions thereon as on 31.03.2015 are as under:

As per Paragraph 28 of NHB directions 2010-

5.2 The Company has written off 2loans during the year ended 31.03.2015 amounting to Rs 479515/-. The figure for the loans written off during the FY 2013-14 was Rs. 3,95,567/-.

5.3 In terms of the requirement of the National Housing Bank (NHB) Directions 2010, further amended vide Circular no. NHB.HFC.Dir.3/CMD/2011 dated August 5th 2011, the company has met the said requirements as under by providing Provisions for contingencies @ 0.40% on all standard assets in respect of all loans.

6. As per Accounting standard (AS-20) "Earnings per Share" is calculated after adjusting Bonus Equity Shares

Allotted on 10/09/2014 and shares allotted in IPO on 20.03.2015. EPS for the Year as on 31.03.2015 is Rs.1.52. EPS for the previous year as on 31.03.2014 was Rs.2.11. EPS is re-calculated after adjusting the effect of allotment of bonus equity shares, with retrospective effect, for the Previous Financial Year i.e.2013-14 which comes to Rs. 0.94

7. As per Accounting standard (AS-18) on "Related Party Disclosures" details of transactions with related parties as defined therein are as given below:

7.1 List of related parties with whom transactions have taken place during the year and their nature of relationship is as follows:

Key Management personals

a. Nirmal Jain

b. Dr. M.L. Nagda

Relative of Key Management Personals-

a. Manju Devi Jain (Wife of Director- Nirmal Kumar Jain)

7.2 Transactions by Company during the year with related parties (Rs in lacs)

7.3 The Company has given new loan during the year amounting to Rs 287.00lacsto parties who categories under the Related Parties as Norma Business of financing Transactions. The total outstanding balance as on at the end of the year was of Rs 229.04lacs. As these transactions were done as normal business transactions, these have not been reported as per the disclosure under Related Part Transactions.

8. The main business of the company is to provide loans for the purchase or construction of residential houses and all other activities of the company revolve around the main business and as such there are no separate reportable segments as specified in Accounting Standard (AS-17) on "Segment Reporting", and under paragraph 29(2) of the Housing Finance Companies (NHB) Directions, 2010, which needs to be reported.

9. NHB has not levied any penalty under HFC (NHB) Directions, 2010 on the company.

10. In the Current year the company has additionally paid Rs 5.00 lacs as advance for acquisition of office building. So the total Amount outstanding is of Rs 68.00 lacs and is being carried forward.

11. Provident Fund and ESIC Since the no. of employees are below the prescribed limit of 20 or more as specified in the relevant act, therefore it does not come under the ambit of following the provisions of PF and ESIC.

12. Investments in shares of Other companies:

In earlier years no future tax consequences on account of timing difference was considered on the Provision of Contingency and Amount Transferred in Special reserve created u/s 36(1)(viii) of the Income Tax Act. Therefore, it has been accounted for all the previous financial years along with the Current financial year.

13. There are no Micro, Small and Medium Enterprises (MSME) to whom the Company owes dues, which are outstanding for more than 45 days as at 31-03-2015. 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 at information available with the Company.

14. Figures of the previous year have been regrouped, rearranged and reclassified wherever necessary.

15. Figures in brackets represent previous full year's figures i.e. figures for Financial Year 2013-14.