a) The above borrowings (except term loans from NHB) are secured by first and exclusive charge on the specific book debts/ receivables of the company. The term loans from NHB are secured by a negative lien on the loan assets of the Company. In respect of loan outstanding amounting to ^709.64 crores as at March 31, 2025, the Company has executed irrevocable Powers of Attorney in favour of the banks so as to enable the bank to sell the loan assets of the Company, if necessary.

b) The repayment of the borrowings are done in monthly, quarterly, half-yearly and annual instalments as per the sanction terms.

c) The Company has not made any default in repayment of instalments during the financial year.

d) The borrowings have not been guaranteed by Directors or others

e) The Company has borrowed funds on the basis of security of current assets. It has filed quarterly returns or statements of current assets and the said returns/statements are in agreement with books of accounts.

f) There were no delay in repayment of borrowings during the financial year

g) No bank or lender has declared the Company as wilful defaulter

h) The Company has utilised the funds raised from banks and financial institutions for the specific purpose for which they were borrowed.

d) Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of ^10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

Note 18.1: Nature and purpose of reserves Note 18.1.1: Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Note 18.1.2: Special Reserve

As per Section 29C(i) of the National Housing Bank Act, 1987, the Company is required to transfer at least 20% of its net profit every year to a reserve before any dividend is declared. For this purpose any Special Reserve created by the Company under Section 36(1) (viii) of the Income Tax Act, 1961 is considered to be an eligible transfer. The Company has transferred an amount of ^77.20 Crores (Previous year ^79.06 Crores) to Special Reserve in terms of Section 36(1)(viii) of the Income Tax Act, 1961.

Note 18.1.3: Statutory reserve

The Company has transferred an amount of ^87.89 Crores during the year (Previous year ^78.94 Crores) to Statutory Reserve under Section 29C of the National Housing Bank Act, 1987.

Note 18.1.4: General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers were to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013. During the year, the company has transferred ^50 Crores (Previous year ^35 Crores) to General Reserve.

Note 18.1.5: Retained Earnings

Retained earnings represents the amount of accumulated earnings of the Company.

Note 18.1.6: Other Comprehensive Income

Other Comprehensive Income represents remeasurement of the net defined benefit liabilities comprising of actuarial gain / loss. Note 18.1.7: Issues of bonus shares / Buyback of shares:

The Company has not issued / allotted any share pursuant to contracts without payment being received in cash, nor issued any bonus shares nor there has been any buyback of share during five years immediately preceding March 31, 2025.

Note 18.1.8: Dividend

The Board of Directors at their meeting held on May 16, 2025 have recommended dividend of ^4 per equity share for the year ended March 31, 2025 (Previous year ^3 per equity share) subject to the approval of shareholders at the ensuing Annual General Meeting.

f) Reason for above shortfalls

i) For the financial year ended on March 31, 2025, the CSR projects amounting to ^1.40 Crore were approved and classified as ongoing projects by the Board. Accordingly, as prescribed under the Companies Act, 2013, the unspent CSR amount of ^0.33 crores was transferred to a separate bank account opened for Unspent CSR amount within the time limit and the funds will be utilized towards the ongoing CSR projects.

ii) For the financial year ended on March 31, 2024, the CSR projects amounting to ^2.55 Crore were approved and classified as ongoing projects by the Board. Accordingly, as prescribed under the Companies Act, 2013, the unspent CSR amount of ^2.55 crores was transferred to a separate bank account opened for Unspent CSR amount within the time limit and the funds will be utilized towards the ongoing CSR projects.

g) There are no related party transactions during the year ended March 31, 2025 and March 31, 2024 in respect of CSR activities.

h) The nature of CSR Activities undertaken by the Company

- Promoting education, including enhancing vocational skills among the differently abled and livelihood enhancement projects

- Promotion of health care, including preventive health care

- Rural development

- Measures for reducing inequalities faced by socially and economically backward groups

- Eradicating hunger, poverty and malnutrition

- Setting up old age homes for senior citizens

Note 30: Segment information

The Company operates under the principal business segment which is "to provide loans against/for purchase, construction, repairs & renovations of housing/commercial properties". Further, the Company is operating in a single geographical segment. The Chief Operating Decision Maker (CODM) views and monitors the operating results of its single business segment for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profits or losses and is measured consistently with operating profits or losses in the financial statements. Accordingly, disclosures relating to primary and secondary business segments under the Indian Accounting Standard on 'Segment Reporting' (Ind AS 108) are not applicable to the Company.

Note 31: Retirement benefit plan Note 31.1: Defined contribution plan

A Contribution towards Provident Fund is determined under the Employees' Provident Funds & Miscellaneous Provisions Act,1952 and charged to the Statement of Profit and Loss during the period of incurrence when the services are rendered by the employees.

The expense charged in statement of profit and loss amounting to ^6.20 crores (March 31, 2024: ^5.46 crores) represents contributions payable to these plans by the Company at rates specified in the rules of the plan.

Note 31.2 - Defined benefit plan

The Company has a defined benefit gratuity plan in India (funded). The Company’s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary at retirement age.

Note 32.8: Details of financing of parent company products:

NIL

Note 32.9: Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL):

The company has not exceeded limit prescribed for Single Borrower Limit (SGL) and Group Borrower Limit (GBL) during the year ended March 31, 2025 and March 31, 2024.

Note 32.10: Unsecured Advances:

The Company has not financed against intangible securities such as rights, licenses, authority etc as collateral security during the years ended March 31, 2025 and March 31, 2024.

Note 32.19: Net Profit or Loss for the period, prior period items and changes in accounting policies:

During the year,

(a) no prior period items occurred which has impact on Statement of Profit and loss,

(b) no change in Accounting policy,

(c) there is no withdrawal from reserve fund.

Note 32.20: Revenue Recognition

There are no circumstances in which revenue recognition has been postponed by the Company pending the resolution of significant uncertainties. Also, refer note no.3.11 and 3.12 for accounting policy with respect to revenue recognition.

Note 32.21 - Consolidated Financial Statements (CFS)

The Company has no investment in subsidiaries and hence requirement of CFS involving subsidiary company is not applicable. However, share of profit from associate company is consolidated and reported.

Note: 32.35

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 March 31, 2025. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis at information available with the Company.

Note 32.36

Earnings and Expenditure in foreign currency - Nil (March 31, 2024: Nil)

vi) Institutional set-up for liquidity risk management

The Company has put in place a well-defined Risk Management Policy which includes Liquidity Risk Management policy and Contingency Funding plan to manage and monitor Liquidity risk of the Company efficiently and to report the Board on the effectiveness of the same. The Company has an Asset Liability Management Committee (ALCO) headed by the MD & CEO and its members consisting of the Senior Management officials representing Finance, Sales, Credit, Recovery, IT and Risk. The ALCO is a decision-making unit responsible for integrated balance sheet management from risk-return perspective including the strategic management of interest rate and liquidity risks. The ALCO monitors the liquidity risk by ensuring judicious mix of assets and liabilities so as to reduce mismatch in the ALM and also monitors the implementation of the Liquidity Risk Management tools prescribed in the Liquidity Risk Management Policy of the Company. The outcomes of ALCO are promptly reported to the Risk Management Committee of the Board and to the Board of Directors at regular intervals.

Note 35: Disclosure pursuant to RBI notification no. RBI/2020-21/60 DOR.NBFC(HFC).

CC.No.118/03.10.136/2020-21 dated October 22, 2020 and RBI/2019-20/170 DOR(NBFC).CC.PD.

No.109/22.10.106/2019-20 dated March 13, 2020 on Implementation of Indian Accounting Standards

As required by the RBI Notification no. RBI/2020-21/60 DOR.NBFC (HFC).CCNo.U8/03.10.136/2020-21 dated October 22, 2020, the Company has complied with the requirements of Ind AS and the Guidelines and Policies approved by the Board in recognition of impairment of financial instruments. The overall impairment loss allowance as at March 31, 2025 and March 31, 2024 made under Ind AS is higher than the prudential floor prescribed by RBI/NHB.

The Company has lease contracts for Land and Building used for the branches. Leases of such assets generally have lease terms between 1 and 12 years. The Company's obligations under its leases are secured by the lessor’s title to the leased assets. There is no revaluation of ROU assets during the year or previous year.

Note 43.1: Valuation principles

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique.

In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques. Note 43.2: Valuation governance

The Company's fair value methodology and the governance over its models includes a number of controls and other procedures to ensure appropriate safeguards are in place to ensure its quality and adequacy. All new product initiatives (including their valuation methodologies) are subject to approvals by various functions of the Company including the risk and finance functions. The responsibility of ongoing measurement resides with the business units. Once submitted, fair value estimates are also reviewed and challenged by the Risk and Finance functions.

Note 43.3: Valuation methodologies of financial instruments not measured at fair value

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the company’s financial statements. These fair values were calculated for disclosure purposes only. The below methodologies and assumptions relate only to the instruments in the below tables.

Loans and advances to customers

The fair values of loans and receivables are estimated by discounted cash flow models that incorporate assumptions for credit risks, probability of default and loss given default estimates. Where such information is not available, the company uses historical experience and other information used in its collective impairment models.

Fair values of lending portfolios are calculated using a portfolio-based approach. The company then calculates and extrapolates the fair value to the entire portfolio, using discounted cash flow models that incorporate interest rate estimates considering all significant characteristics of the loans. The credit risk is applied as a top-side adjustment based on the collective impairment model incorporating probability of defaults and loss given defaults.

Note 44: Risk management

Note 44.1: Introduction and risk profile

Company has operations in India. As the company is in financial sector, the risks associated with this type of business is integral part of the management. The company deals with large number of customers and is involved in long term lending. Hence, the risks to this type of business is unique and requires focused attention. Further, the management of risk is continuous and on going process and needs to be dynamic. The company is aware that risk is proportionate to the expected returns but should have limitations in exposing itself to the risks. This process of risk management is critical to the company's continuing profitability and reputation in the market. The company is generally exposed to credit risk, market risk, operational risk, compliance risk, reputational risk and Competition risk.

Note 44.1.1: Risk management structure

The Company has in place a Risk Management Policy duly approved by the Board covering various aspects of the risk management. Board of Directors are responsible for effective risk management. It oversees and reviews the overall functioning of the risk management and provide necessary directions in this regard.

The Risk Management Committee of the Board (RMCB) is Board level committee entrusted with overseeing implementation of the Risk Management Policy / strategy to deal with risk management activities in an efficient and effective manner. The committee reviews the functioning of the risk management framework at periodical intervals. It reviews the reports and directs for taking mitigating steps. The committee reports the status of the risk management of the company to the Board at periodical intervals through minutes of the meeting of the committee. The minutes of the committee are placed before the Board.

Credit and Operational Risk Management Committee (CORMC) is an executive level committee headed by Managing Director (MD) as Chairman of the Committee, having members viz., Chief Operating Officer (COO), Chief Business Officer (CBO), Chief Development Officer (CDO), Chief Financial Officer (CFO), Chief Technology Officer (CTO), all the General Managers, Chief Compliance Officer (CCO), Head of Internal Audit (HIA), Head of Legal. It is responsible for laying down the operational guidelines and monitor and mitigate the credit and operational risks the company is facing. This Committee periodically (Atleast Quarterly once or on need basis) reviews the portfolio studies, Risk and Control Self-Assessment studies conducted at branches, monitor various Key Risk Indicators (KRI), etc. and provide necessary mitigations. It also reviews and recommends the Risk Management Committee of the Board (RMCB) the amendments to Risk Management Policy, as and when considered necessary. The minutes of this committee is placed before Risk Management Committee of the Board (RMCB). Besides this, Assets and Liabilities Management Committee (ALCO) addresses the market and liquidity risks, conducted atleast once on monthly basis.

The Risk Management Department' in Corporate Office of the company is responsible for Identification, measurement, monitoring and taking steps for mitigation of operational, credit and compliance risk and reporting to top management and the committees concerned.

The company has an independent Risk Management department headed by Chief Risk Officer (CRO) who is responsible for coordination, overseeing and implementation of the requirements identified in the Board approved Risk Management Policy.

Note 44.1.2: Risk Identification

The Company has identified risk issues in various functions such as branches, departments in Corporate Office, Regional Offices, Central Depository, etc. and maintains a Risk Register. The register covers risk and controls covering various types of risks like Operational risk, Credit risk etc. across the departments. This register is dynamic as it gets updated by additions and deletions as and when new guidelines are issued. Further, each risk is categorised as "Operational Risk", "Credit Risk", "Market Risk", "Compliance Risk or "Competition Risk".

Note 44.1.3: Risk measurement

The risk issues identified and recorded in the Risk Register are measured based on the impact it may have on the business if the company is exposed to such risks. Based on the velocity of impact each risk is categorised as 'High', 'Medium' and 'Low' risk. This is done to decide the quantum of focus required in respect of each risk issue. Weightage is given for each risk issue to enable the company to measure the risk. The company gives focus on 'High' risk issues for better management.

The frequency for monitoring each risk issues is at quarterly intervals. Risk issues are grouped under different categories and being reviewed after the end of each quarter.

Note 44.1.5 - Risk Assessment methodology

The risk is assessed based on self assessment by the owners of risk at the prescribed intervals. Each risk issue has to be assessed by the owners of the risk and provide a certification. The certificate is subject to verification by Risk Management Department and by Internal Auditors. Accordingly, each branch assesses the level of compliance in respect of each risk issue and provides a certificate. For this purpose, a software utility has been provided to each branch, departments in Corporate Office (CO), regional offices and Central depository (CDR). This exercise is done every quarter.

Note 44.1.6 - Measurement of Risk

Based on the Self -assessment certifications from various risk owners, the quantum of risk that are reported by the owners are calculated for various categories of risks such as credit risk, operational risk, compliance risk and competition risk. Risk is also measured in terms of high, medium and low. This would help the Company to arrive at the direction of risk. Additionally, the Risk Management department also performs stress testing on a half yearly basis under various stress scenarios from the perspective of ensuring the Company's Capital and P&L under any unfavourable/unforeseen market circumstances to ensure the financial stability of the Company under the stress period.

Note 44.1.7 - Credit risk

The Company is primarily in the business of lending and hence is exposed to credit risk. Various credit risk mitigations are provided in the Credit Policy of the company such as profiling each customer based on various factors of the borrower and linking pricing to the same. The internal rating of each borrower is done as a part of appraisal to arrive at the risk. The Credit risk issues are identified by the Risk Management Department and provided to the branches and Credit Department for assessment. Mitigation steps are taken immediately to manage the risk. Immediate action is initiated by way of SARFAESI, OTS, etc to recover the impaired credit.

Assets possessed under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: Loan Portfolio includes gross loans amounting to t27.59 Crores (March 31, 2024: t33.01 Crores) against which the Company has taken possession of the properties under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and held such properties for disposal. The value of assets possessed against these loans is t104.27 Crores (March 31, 2024: t119.06 Crores).

Restructuring of accounts

The economic fallout on account of COVID-19 pandemic has led to significant financial stress for many borrowers. Considering the above, with the intent to facilitate revival and to mitigate the impact on ultimate borrowers, Reserve Bank of India (RBI) introduced measures under the Resolution Framework for COVID-19. As per the RBI Framework, the Corporation established a policy to provide resolution for eligible borrowers having stress on account of COVID-19 in line with the RBI Guidelines.

As advised under the said circular and Company’s policy, the eligibility of customers was assessed, so as to understand the extent of financial stress caused due to COVID-19, i.e. delay in construction, sales and consequent cash flow mismatch, duly supported by the documentary evidence. In addition to assessing the impact of stress, the Resolution framework was discussed with the eligible borrower prior to invocation of Resolution plan. The Resolution Framework offered to ensure that the servicing of the restructured loan is not likely to be impacted.

Moratorium

The RBI had announced Moratorium for 6 months on repayments for the period March 2020 to August 2020 for term loans and working capital facilities outstanding as on February 29, 2020. This was part of the regulatory measures adopted to mitigate the burden of debt servicing brought about by disruptions on account of Covid pandemic and to ensure continuity of viable businesses. As part of the scheme and as per Company's Board approved policy, the Company has provided moratorium to eligible borrowers.

The company's independent Credit Risk Department operates its internal rating models. The company runs separate models for its key portfolios in which its customers are categorised as high, medium and low grade. The models incorporate both qualitative and quantitative information and, in addition to information specific to the borrower, utilise supplemental external information that could affect the borrower’s behaviour. Loan assets are graded based on repayment behaviour of the customer of last 12 months.

Note 44.1.7.2 - Impairment - Expected credit loss (ECL)

The application of Ind AS 109 has necessitated fundamental changes to the accounting for expected default risk (risk provisioning). Specifically, the incurred loss model has been replaced by the Expected Credit Loss model (ECL). Consequent to this change, the Expected Credit losses on financial instruments are classified under three stages.

Stage 1: Every financial asset is classified as stage 1, upon initial recognition. In addition, stage 1 contains all transactions with limited default risk.

Stage 2: Financial assets whose default risk has risen significantly since initial recognition and which are not classified as cases with limited default risk.

Stage 3: Financial assets that display objective evidence of impairment at the reporting date.

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 three main components to measure ECL. These are, Exposure at default (EAD), Probability of Default (PD) and Loss Given Default (LGD).

Exposure at default (EAD) is defined as the sum of Principal outstanding and interest accrued at the reporting date.

PD is defined as the probability of borrowers defaulting on their obligations.

LGD represents the economic loss. Company uses historical loss data for identified homogenous pools for the purpose of calculating LGD. For individual cases where there as been a significant deterioration in recovery, the LGD is considered to be 100%.

Accordingly, loan assets are categorised under three different stages, as under:

Stage 1: Where instalments are Current and 1-30 days overdue Stage 2: Where instalments are 31 days - 90 days overdue and Stage 3: Where instalments are overdue beyond 90 days

The company is required to provide 12-month Expected Credit Loss (12-month ECL) for stage 1 assets and the Life Time Expected Credit Loss (LECL) for stage 2 and stage 3 assets.

12-month ECL is the expected credit loss that results from default events that are possible within 12 months after the reporting date. LECL represents the expected credit loss from default events over the expected life of a financial asset.

As prescribed under para 5.5 in Ind AS 109, 12-months PD is required to be computed for financial instruments which are in stage 1, and life time PD for those in stage 2 & 3. 12-months PD is the likelihood of the borrower defaulting in the 12 months following the reporting date while life time PD is the likelihood of the borrower defaulting during the residual tenor.

The PD model has been developed for all the major asset classes using a statistical and iterative approach. The design and construction of the model involves identification of various credit parameters and variables that have a strong and direct correlation to propensity of default. The PD model reflects to the probability of default, taking into consideration the inherent credit quality of the borrower and the residual tenor of each contract. The PD for stage 3 contracts is considered at 100%. Where a customer has one contract in stage 3 and one or more contracts in stage 1 / stage 2, the PD for all the contracts is considered at 100%.

LGD represents the economic loss, adjusted for cure rate, as a percentage of exposure at the time of default. Economic loss is the estimated shortfall in realisation of dues, in the event of default. Contracts that have turned delinquent do not necessarily involve ultimate losses, since many of them are resolved through corrective actions. The cure rate is the probability of a 'non performing' (i.e. defaulted) contract reverting to a 'performing' (i.e. non-default) status in a year. For individual cases where there as been a significant deterioration in recovery, the LGD is considered to be 100% for those cases.

Note 44.1.8: Operational Risk

Operational Risk is constantly monitored as it is prevalent in every branch and department. Systematic improvements are made wherever required. The Operational Risk Management team identifies and monitors the operational risks in various products as well as processes of the Company. It ensures that major risks are covered or mitigated in order to avoid or minimize operational risk loss.

Note 44.1.9: Compliance Risk

Based on the guidelines received from regulatory and statutory authorities and also based on the policy requirements, the compliance risks issues are identified, assessed and monitored for compliance.

Note 44.1.10: Market Risk

The Company does not accept deposits from public. The resources are mobilized from banks and market. The Company has a specific committee named Assets and Liabilities Committee (ALCO) which meets at frequent intervals (minimum once in Month) to manage the liquidity, interest rates, spread etc. The Committee also prescribes Minimum Lending Rate (MLR).

Note 44.1.11: Interest Rate Risk

The Company is subject to interest rate risk, since the rates of loans and borrowings might fluctuate over the tenure of instrument. Interest rates are highly sensitive to many factors beyond control, including the monetary policies of the Reserve Bank of India, deregulation of the financial sector in India, domestic and international economic and political conditions, inflation and other factors. In order to manage interest rate risk, the Company seeks to optimise borrowing profile between short-term and long term loans. The liabilities are categorised into various time buckets based on their maturities and Asset Liability Management Committee supervise an interest rate sensitivity report periodically for assessment of interest rate risks.

Note 44.2 - Capital Management

"The Company’s capital management strategy is to effectively determine, raise and deploy capital to cover risk inherent in business and meeting the capital adequacy requirements of the Reserve Bank of India (RBI). The Company finances its operations by a combination of retained profit and bank borrowings. The Company determines the amount of capital required on the basis of operations and capital expenditure. The adequacy of the Company's capital is monitored using, among other measures, the regulations issued by the RBI.

The capital structure is monitored on the basis of net debt to equity and maturity profile of overall debt portfolio. The Company's policy is in line with Master Direction - Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021 which currently permits HFCs to borrow up to 12 times of their net owned funds (""NOF""). Refer Note 32.1 for Capital to risk weighted assets ratio (CRAR).

Note 45.1 - Collateral and other credit enhancements

Although collateral can be an important mitigation of credit risk, it is the Company's practice to lend on the basis of the customer’s ability to meet the obligations out of cash flow resources other than placing primary reliance on collateral and other credit risk enhancements. The Company obtains first and exclusive charge on all collateral that it obtains for the loans given. Home loans/ home equity loans are secured by collateral at the time of origination. In case of Home loans/ home equity loans, the value of the property at the time of origination will be arrived by obtaining valuation reports from Company's empanelled valuers. Immovable Property is the collateral for Home loans/ Home Equity loans. Security Interest in favour of the Company is created by Mortgage through deposit of title deed which is registered wherever required by law. Any surplus remaining after settlement of outstanding debt by way of sale of collateral is returned to the customer / borrower.

Note 46 - Liquidity risk and funding management

Liquidity risk is defined as the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the company on acceptable terms. To limit this risk, management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on a daily basis. The company has developed internal control processes and contingency plans for managing liquidity risk.

The company maintains diverse assets that are assumed to be easily liquidated in the event of an unforeseen interruption in cash flow. The company also has lines of credit that it can access to meet liquidity needs. In accordance with the company's policy, the liquidity position is assessed under a variety of scenarios, giving due consideration to stress factors relating to both the market in general and specifically to the company. Net liquid assets consist of cash and cash equivalents, balances other than cash and cash equivalents available for immediate use, less securities issued and borrowings due to mature within the next month.

Note 48:

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

b) The Company has not been declared as a wilful defaulter by any bank or financial institution or government or any government authority.

c) As per the information available with the Company, the Company has no transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

e) 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,

i) 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);

ii) No funds have been received by the Company from any party(s) (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

f) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year ended March 31, 2025 and March 31, 2024.

g) There are no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

h) The accounting software used by the Company to maintain its books of accounts has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all transactions recorded in the software. Further, audit trail feature has not been tampered with in respect of accounting software where the audit trail has been enabled. Additionally, the Company has preserved audit trail in respect of the financial years ended March 31, 2024 and March 31, 2025 to the extent it was enabled and recorded in respect of those years.

Note 49 :

Disclosures pursuant to RBI Notification - RBI/DOR/2021-22/86 DOR.STR.REC.51/2 1.04.048/2021-22 dated September 24,

2021 (as amended from time to time):

a. The Company has not transferred or acquired, any loans not in default during the year ended March 31, 2025.

b. The Company has not transferred or acquired, any stressed loans during the year ended March 31, 2025.

Note 51:

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

Note 52: Events after reporting date

There have been no material events after the reporting date that require disclosure in these financial statements.

Note 53:

Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / presentation.

Note 54: Approval of financial statements

The financial statements were approved for issue by the Board of Directors on May 16, 2025.