3.14 Provision, Contingent Liabilities and
Contingent Assets
a. Provisions
Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result
of a past event, 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 obligation.
Provisions are measured at the best estimate of the
expenditure required to settle the present obligation,
at the balances sheet date.
If the effect of the time value of money is material,
provisions are discounted to reflect its present value
using a current pre-tax rate that reflects the current
market assessments of the time value of money and
the risks specific to the obligation. When discounting is
used, the increase in the provision due to the passage
of time is recognised as a finance cost.
b. Contingent Liabilities
A disclosure for a contingent liability is made when
there is a possible obligation arising from past events,
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 a present obligation arising as a
result of past event that probably will not require an
outflow of resources or where a reliable estimate of
the obligation cannot be made.
c. Contingent Assets
Contingent assets are not recognized in the financial
statements. However, contingent assets are assessed
continually and if it is virtually certain that an inflow
of economic benefits will arise, the asset and related
income are recognized in the period in which the
change occurs.
3.15 Investment Property
Properties, held to earn rentals and/or capital
appreciation are classified as investment property and
measured at cost, including transaction costs.
Depreciation is recognised using straight line
method so as to write off the cost of the investment
property less their residual values over their useful
lives specified in Schedule II to the Companies Act,
2013. Depreciation method is reviewed at each
financial year end to reflect the expected pattern of
consumption of the future benefits embodied in the
investment property.
An investment property is derecognised upon disposal
or when the investment property is permanently
withdrawn from use and no future economic benefits
are expected from the disposal. Any gain or loss
arising on derecognition of property is recognised in
the statement of profit and loss in the same period.
3.16 Taxes
a. Current tax
Current income tax, assets and liabilities are measured
at the amount expected to be paid to or recovered
from the taxation authorities in accordance with the tax
regime inserted by the Taxation Laws (Amendment)
Act, 2019 in the Income Tax Act, 1961 and the Income
Computation and Disclosure Standards (ICDS)
enacted in India by using tax rates and the tax laws
that are enacted at the reporting date.
Current tax relating to items recognized outside profit
or loss is recognized in correlation to the underlying
transactions either in OCI or directly in other equity.
Management periodically evaluates positions taken in
the tax returns with respect to situations in which the
applicable tax regulations are subject to interpretation
and establishes provisions where applicable.
b. Deferred tax
Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes at the reporting date. Deferred tax
assets and liabilities are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable
that taxable profit will be available against which
the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses
can be utilised. The carrying amount of deferred tax
assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each reporting
date and are recognised to the extent that it has
become probable that future taxable profits will allow
the deferred tax asset to be recovered. Deferred tax
assets and liabilities are measured at the tax rates
that are expected to apply in the year when the asset
is realized or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively
enacted at the reporting date.
3.17 Earning Per Share
Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the period. Earnings
considered in ascertaining the Company's earnings
per share is the net profit for the period after tax.
The weighted average number of equity shares
outstanding during the period and for all periods
presented is adjusted for events, such as bonus
shares, sub-division of shares etc. that have changed
the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable
to equity shareholders is divided by the weighted
average number of equity shares outstanding during
the period, considered for deriving basic earnings per
share and weighted average number of equity shares
that could have been issued upon conversion of all
dilutive potential equity shares.
3.18 Assets Held for Sale
Assets acquired by the Company under settlement
with the borrowers, are classified as held for sale if
their carrying amount will be recovered principally
through a sale transaction rather than through its
use and a sale is considered highly probable. They
are measured at the lower of their carrying amount
and fair value less costs to sell. An impairment loss is
recognised for any initial or subsequent write-down
of the asset to fair value less costs to sell. A gain is
recognised for any subsequent increases in fair value
less costs to sell, but not in excess of any cumulative
impairment loss previously recognised. These assets
are not depreciated or amortised while they are
classified as held for sale.
Leases: Cash Flows
Included in cash flows from operating activities is ' 18.74 lakhs (March 31, 2026: ' 23.08 lakh) and Included in
cash flows from financing activities ' 81.52 lakhs (March 31, 2025: ' 79.31).
Cash flows from operating activities include cash flows from short-term lease and leases of low-value assets.
Cash flows from financing activities include the payment of interest and the principal portion of lease liabilities.
b) Terms/rights, preference and restrictions attached to equity shares:
The company has only one class of equity shares having a par value of ' 10 per share. The holders of the equity
shares are entitled to receive dividends and are entitled to voting rights proportionate to their share holding at the
meetings of shareholders. In the event of liquidation, the equity shareholders are eligible to receive the remaining
assets of the company after discharging all liabilities of the company, in proportion to their shareholding.
Notes:
i) For Movement during the period in Other Equity, refer “Statement of Change in Equity”.
ii) Nature and Purpose of Other Reserves:
a) Statutory reserve as per section 45-IC of RBI Act, 1934:
Statutory reserve represents the reserve fund created under Section 45-IC of the Reserve Bank of India
Act, 1934 (the ‘RBI Act'). Under Section 45-IC of the RBI Act, a company is required to transfer sum
not less than twenty percent of its net profit every year. The statutory reserve can be utilised for the
purposes as specified by the Reserve Bank of India from time to time.
b) Share option outstanding account:
The Share Options Outstanding Account is used to recognise the value of cash-settled share-based
payments provided to employees, as part of their remuneration. The fair value of the cash-settled
share based payment transactions with employees is recognised in Statement of Profit and Loss with
corresponding credit to Employee Stock Options Outstanding Account.
c) Capital Reserve:
Capital Reserve was carried forward under the previous GAAP from the books of amalgamating
company at the time of Amalgamation.
d) Capital Redemption Reserve:
Capital redemption reserve is the requirement under Section 69 of the Companies Act, 2013, which
has been created in the event of buy back of shares. This reserve is exclusively used for issuing fully paid
bonus shares to the members of the Company.
e) Securities Premium:
Securities premium account is used to record the premium on issue of shares/securities. This amount
is utilised in accordance with the provisions of the Act.
f) General Reserve:
It is the reserve which is created out of retained earnings. It is a free reserve and is created without any
specific or particular purpose.
g) Retained earnings:
Retained earnings represents total of all profits/(losses) retained or incurred since the company's
inception. Retained earnings are credited with the current year's profits, reduced by losses, (if any).
Earning per share (EPS) is determined based on the net profit attributable to the shareholder before other
comprehensive Income. Basic earning per share is computed using the weighted average number of equity
shares outstanding during the year whereas Diluted Earning per share is computed using the weighted average
number of common and dilutive equivalent shares including Employee Stock Options except for the case where
the result becomes anti- dilutive.
a) For the year ended March 31,2026 and March 31,2025, the dilution is considered on account of non vested
or vesting but not exercised ordinary shares under Employee stock Option Scheme in accordance with Para
48 of Ind AS 33.
NOTE 39: GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS
a) Defined Contribution Plans:
The company makes contribution towards Employees Provident Fund and Employee's State Insurance scheme.
Under the rules of these schemes, the company is required to contribute a specified percentage of payroll costs.
The company during the year recognised the following amount in the Statement of profit and loss account under
company's contribution to defined contribution plan.
b) Defined Benefit Plans:
In accordance with Ind AS 19 “Employee benefits”, an actuarial valuation on the basis of “Projected Unit Credit
Method” was carried out, through which the company is able to determine the present value of obligations.
“Projected Unit Credit Method” recognizes each period of service as giving rise to additional unit of employees
benefit entitlement and measures each unit separately to built up the final obligation. This method is used in
following cases:
i) Gratuity Scheme
The company has defined benefit gratuity plan which is funded. Gratuity is calculated as 15 days salary for
every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/
resignation. The benefit vests on completing 5 years of service by the permanent employee or 1 year of service
by Fixed Term Employees (FTE), if any. The company makes provision of such gratuity asset/Liability in the books
of accounts on the basis of actuarial valuation as per projected unit credit method; net with annual contribution
made by company to insurer to provide gratuity benefits by taking scheme of insurance.
41.1 Contingent liabilities
The suits filed & legal notices against company in the ordinary course of business as on March 31,2026 amounting
' 41.79 lakh (March 31, 2025: ' Nil). Apart from this, there is no amount required to be recognised as contingent
liabilities.
The company has reviewed all its pending litigations and proceedings and has adequately provided for where
provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The
company does not expect the outcome of these proceedings to have a materially adverse effect on its financial
statements.
41.2 Capital commitment and undrawn limits
a) Estimated amount of contracts remaining to be executed on capital account and not provided for amounted
to ' Nil crore (March 31, 2025: ' Nil crore) (net of advances).
b) Undrawn commitments as at March 31,2026 is ' 20,140.15 lakh (March 31, 2025: ' 15,568.06 lakh).
NOTE 42: SEGMENT INFORMATION
The Company is primarily engaged in the business of providing finance to small and medium enterprises for
their business requirements and to wholesale customers for the construction of residential buildings. The Chief
Operating Decision Maker (CODM) reviews the Company's performance and allocates resources based on
the overall business operations as a single business segment. Accordingly, the Company has identified a single
reportable operating segment in accordance with Ind AS 108 - Operating Segments. Consequently, no separate
segment information is required to be disclosed.
NOTE 43: CAPITAL MANAGEMENT
The Company's capital management strategy is to effectively determine, raise and deploy capital so as to create
value for its shareholders. The same is done through a mix of either equity and/or convertible and/or combination
of short term/long term debt as may be appropriate.
The company determines the amount of capital required on the basis of operations, capital expenditure and
strategic investment plans. The capital structure is monitored on the basis of net debt to equity and maturity
profile of overall debt portfolio.
The Company's objective in managing capital is to safeguard its ability to continue as a going concern, maintain
an optimal capital structure to support the growth of its business, create long-term value for its shareholders and
comply with the prudential requirements prescribed by the Reserve Bank of India (“RBI”).
The Company's capital management strategy is to effectively determine, raise and deploy capital so as to
create value for its shareholders. The same is achieved through an appropriate mix of equity, retained earnings,
and short-term and long-term borrowings, taking into account the cost of capital, business requirements and
prevailing market conditions.
The Company determines the amount of capital required on the basis of its operating requirements, projected
growth in the lending portfolio, capital expenditure, strategic investment plans, liquidity requirements and
applicable regulatory capital requirements. The capital structure is periodically reviewed and monitored on
the basis of key financial and regulatory indicators, including the net debt-to-equity ratio, maturity profile of
the overall debt portfolio, Capital to Risk-weighted Assets Ratio (CRAR), Net Owned Fund (NOF), liquidity and
leverage indicators, and compliance with financial covenants and other regulatory requirements.
The Company is registered with the Reserve Bank of India as a Non-Banking Financial Company and is required
to comply with the prudential norms, including the minimum capital requirements, prescribed by the RBI under
the applicable regulatory framework. During the year ended 31 March 2026, the Company complied with all
externally imposed capital requirements and there were no breaches of the applicable capital adequacy or other
prudential norms.
NOTE 48: EMPLOYEE STOCK OPTION
SCHEME (ESOS)
The ESOS Scheme titled “CSL Employee Stock options
Scheme 2016” (CSL ESOS 2016) was approved by
the shareholders on September 30, 2016 7,00,000
options are covered under the CSL ESOS, 2016.
During the financial year 2016-17, the Compensation
Committee in its meeting held on February 03, 2017
and February 11, 2017 has granted 4,50,000 options
(aggregate) under ESOS to eligible employees of the
company. Each option comprises one underlying
equity share. The terms regarding vesting and exercise
of options are governed by the grant letters issued to
the eligible employees to whom options are granted.
The Exercise price has been determined at ' 226/-
per share for the grant of aforesaid 4,50,000 options.
During the financial year 2017-18, the Compensation
Committee in its meeting held on May 12, 2017
and July 07, 2017 has granted 1,15,000 options
(aggregate) under ESOS to eligible employees of the
company. Each option comprises one underlying
equity share. The terms regarding vesting and exercise
of options are governed by the grant letters issued to
the eligible employees to whom options are granted.
The Exercise price has been determined at ' 240/-
per share for the grant of aforesaid 1,15,000 options.
During the financial year 2018-19, 69,350 options
were exercised and 1,65,000 equity shares were
allotted. However, 90,000 options were lapsed during
the financial year 2018-19 and no fresh options were
granted during the year.
During the financial year 2019-20, 24,891 options
were exercised and 90,000 equity shares were
allotted. However, 12,500 options were lapsed during
the financial year 2019-20 and no fresh options were
granted during the year.
During the financial year 2020-21, 34,921 options
were exercised and 120,838 options were lapsed
during the financial year 2020-21 and no fresh options
were granted during the year.
During the financial year 2021-22, the Nomination
and Remuneration Committee in its meeting held
on January 12, 2022 has granted 4,00,000 options
(aggregate) under ESOS to eligible employees of the
company. Each option comprises one underlying
equity share. The terms regarding vesting and exercise
of options are governed by the grant letters issued to
the eligible employees to whom options are granted.
The Exercise price has been determined at ' 160/-
per share for the grant of aforesaid 4,00,000 options.
During the financial year 2021-22, 6625 options were
exercised.
During the financial year 2022-23, 6625 options were
exercised. During the current financial year 4,81,000
equity shares were granted.
During the financial year 2023-24, 1,47,814 options
were exercised and 1,52,250 shares were lapsed.
During the financial year 2024-25, the Nomination
and Remuneration Committee in its meeting held
on October 01, 2024 has granted 36,000 options
(aggregate) under ESOS to eligible employees of the
company. Each option comprises one underlying
equity share. The terms regarding vesting and exercise
of options are governed by the grant letters issued to
the eligible employees to whom options are granted.
The Exercise price has been determined at ' 160/-
per share for the grant of aforesaid 36,000 options.
During the financial year 2024-25, 19,375 options
were exercised and 67,875 shares were lapsed.
During the financial year 2025-26, the Nomination
and Remuneration Committee has formulated a
Scheme termed as “CSL Finance Limited Employee
Stock Option Scheme”” on August 11, 2025 which is
further approved by Board of Director at its meeting
held on August 12, 2025.
The maximum number of Options that may be granted
in one or more tranches, pursuant to this Scheme shall
not exceed 22,78,262 (Twenty-Two Lakhs Seventy-
Eight Thousand Two Hundred and Sixty-Two) Options
which shall be convertible into equal number of
Shares not exceeding 22,78,262 (Twenty-Two Lakhs
Seventy-Eight Thousand Two Hundred and Sixty-Two)
Equity Shares having face value of ' 10/- each.
During the financial year 2025-26, 31,938 options
were exercised and 3,500 shares were lapsed.
NOTE 49: FINANCIAL INSTRUMENTS
a. Financial instruments by category and fair value hierarchy:
This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are:
(a) recognised and measured at fair value; and
(b) measured at amortised cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the company has
classified its financial instruments into the three levels prescribed under the accounting standard. An explanation
of each level follows underneath the table.
Fair valuation methodology
Loans:
The fair value of loans are estimated by discounted cash flow models. For fixed rate loans, the fair value represent
the discounted value of the expected future cash flows. Fair value is then reduced by unamortised income and
expenses and impairment loss allowance on loans which is already calculated incorporating probability of default
and loss given defaults.
Borrowings:
Fair value is estimated at portfolio level by a discounted cash flow model incorporating market interest rates and
the company's own credit risk or based on market-observable data. For floating rate interest borrowings, the
discounted value of expected cash flows represent the carrying amount of the borrowings.
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Valuation framework
The finance department of the company includes personnel that performs the valuations of financial assets and
liabilities required for financial reporting purposes, including level 3 fair values. These personnel reports directly
to the Chief Financial Officer.
Valuation techniques include net present value and discounted cash flow models. Assumptions and inputs used
in valuation techniques include risk-free and benchmark interest rates and other premium used in estimating
discount rates and expected price volatilities and correlations. The objective of valuation techniques is to arrive
at a fair value measurement that reflects the price that would be received to sell the asset or paid to transfer the
liability in an orderly transaction between market participants at the measurement date.
The company uses suitable valuation models to determine the fair value of common and simple financial
instruments, that use only observable market data and require little management judgement and estimation.
NOTE 50 : RISK MANAGEMENT
50.1 Credit Risk Management
Credit risk is the risk that the Company will incur a loss because its customers fail to discharge their contractual
obligations. The Company has a comprehensive framework for monitoring credit quality of its loans primarily
based on days past due monitoring at period end. Repayment by individual customers and portfolio is tracked
regularly and required steps for recovery are taken through follow ups and legal recourse.
50.1.1 Credit Quality of Loans
The following table sets out information about credit quality of loans measured at amortised cost based on days
past due information. The amount represents gross carrying amount.
50.1.2 ECL Methodology
In assessing the impairment of financial loans under
Expected Credit Loss (ECL) Model, the assets have
been segmented into three stages. The three stages
reflect the general pattern of credit deterioration of a
financial instrument.
Stage 1 (0-30 days) includes loan assets that have
not had a significant increase in credit risk since initial
recognition or that have low credit risk at the reporting
date.
Stage 2 (31-90 days) includes loan assets that have
had a significant increase in credit risk since initial
recognition but that do not have objective evidence
of impairment.
Stage 3 (more than 90 days) includes loan assets
that have objective evidence of impairment at the
reporting date.
The Expected Credit Loss (ECL) is measured at
12-month ECL for Stage 1 loan assets and at lifetime
ECL for Stage 2 and Stage 3 loan assets. ECL is the
product of the Probability of Default, Exposure at
Default and Loss Given Default.
(i) Definition of default
The Company considers a financial asset to be in
“default” when a financial asset is 90 days past due
and therefore Stage 3 (credit impaired) for ECL
calculations when the borrower becomes 90 days
past due on its contractual payments.
(ii) Exposure at default
EAD is based on the amounts the Company expects
to be owed at the time of default. Forward-looking
economic information (including management
overlay) is included in determining the 12-month and
lifetime PD, EAD and LGD. The assumptions underlying
the expected credit loss are monitored and reviewed
on an ongoing basis. The EAD for Stage 3 assets is the
gross principal outstanding at the date of default.
(iii) Estimations and assumptions considered in the
ECL model
The probability of default (PD') is the likelihood that
an obligor will default on its obligations in the future.
Ind AS 109 requires a separate PD for a 12-month
duration and lifetime duration depending on the stage
allocation of the obligor.
PD describes the probability of a loan to eventually
falling in default (>90 days past due) category. To
calculate the PD, loans are classified in three stages
based on risk profile of the loan products. PD %age
is calculated for each loan product separately and is
determined by using available historical observations.
PD for stage 1 >> derived as %age of all loans in stage
1moving into stage 2 in 12- months' time.
PD for stage 2>> derived as %age of all loans in stage2
moving into stage 3 in the maximum lifetime of the
loans under observation.
PD for stage 3>> derived as 100% considering that the
default occurs as soon as the loan becomes overdue
for 90 days that matches the definition of stage 3.
(iv) Forward looking information
PDs has been converted into forward looking PD
which incorporates the forward-looking economic
outlook. For SME and Wholesale portfolio, Real GDP (%
change p.a.) is used as the macroeconomic variable.
(v) Assessment of significant increase in credit risk
When determining whether the credit risk has
increased significantly since initial recognition, the
Company considers both quantitative and qualitative
information and analysis based on the Company's
historical experience, including forward-looking
information. The Company considers reasonable and
supportable information that is relevant and available
without undue cost and effort.
(vi) Write Offs/Recoveries
The gross carrying amount of a financial asset is
written off when there is no realistic prospect of
further recovery. This is generally the case when the
Company determines that the debtor does not have
assets or sources of income that could generate
sufficient cash flows to repay the amounts subject to
the write-off. However, financial assets that are written
off could still be subject to enforcement activities
under the Company's recovery procedures, taking
into account legal advice where appropriate. Any
recoveries made are recognised in profit or loss.
50.1.6 Collateral
i) Narrative description of collateral
The Company has business interests in Wholesale and SME Retail Lending. The Company risk is mitigated by
considering the collateral from the borrowers. Thereby the company employs a range of policies and practices
to manage the credit risk in the business. The most common is to by accepting the collateral from the borrowers.
The Company deploys internal policies on the acceptability of the specific class of collateral or credit risk
mitigation. The principal collateral types for the loans and advances includes:
- Mortgage of Immovable Property.
- Pledge of the Shareholding of Promoters.
- Hypothecation of Immovable Property.
- Pledge of instruments through which promoters contribution is infused in the project.
50.2 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.
The Company manages liquidity risk by measuring and managing net funding requirements by calculating
the cumulative surplus or deficit of funds at a selected maturity dates. The Company also maintains adequate
reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash
flows, and by matching the maturity profiles of financial assets and liabilities
Maturity profile of Financial Liabilities
The disclosure is based upon the earliest date on which the Company can be required to pay. The table includes
both interest and principal cash flows. The table below summarises the maturity profile of the undiscounted cash
flows of the Company's financial liabilities as at March 31,2026 and March 31, 2025.
50.3 Market Risk
Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes
in market variables such as interest rates, foreign exchange rates and other market prices.
The Company's exposure to market risk is primarily on account of changes in interest rates. The Company is not
materially exposed to foreign currency risk or other price risk as at reporting period.
Interest rate risk arises from the possibility that changes in market interest rates may affect the future cash flows
or fair values of financial assets and financial liabilities. The Company manages such risk through appropriate
asset-liability management and risk monitoring mechanisms.
The sensitivity analysis has been determined based on the exposure to interest rate risk for floating rate financial
assets and financial liabilities outstanding as at reported period. The analysis assumes a reasonably possible
change in interest rates, with all other variables held constant, and the impact thereof on the Statement of Profit
and Loss for the year.
B) Security and carrying Interest rates on loans
Term Loan: The above secured term loans from banks and from others are secured by first pari-passu charge
on all receivables of the Company along with personal guarantee of Managing Director. As at March 31, 2026:
Rate of interest varies from 7.98% to 12.75% per annum (March 31, 2025: Rate of interest varied from 8.75% to
13.30% per annum).
Vehicle Loan: The vehicle loans are secured by Hypothecation of Car. As at March 31, 2026: Rate of interest
varies from 7.98% to 9.05% per annum (March 31,2025: Rate of interest varied from 7.98% to 9.05% per annum.)
Working Capital Demand Loan & Overdraft Facilities: working capital demand loans from banks are secured by
first pari-passu charge on all receivables of the company along with personal guarantee of Managing Director.
Rate of interest as on March 31, 2025 varied from 9% to 12.40% per annum.
NOTE 54: ADDITIONAL DISCLOSURES OF SCHEDULE III
i) Quarterly returns or statements of current assets filed by the company with Banks or financial institutions are
in agreement with the books of accounts.
ii) (a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including
foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the company (“Ultimate Beneficiaries”) or provide any
guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(b) No funds (which are material either individually or in the aggregate) have been received by the
company from any person or entity, including foreign entity (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
iii) No proceedings have been initiated or pending against the company for holding any benami property under
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
iv) The company has not surrendered or disclosed any transaction during the period and/or previous year, in
the tax assessments under the Income Tax Act, 1961 that is not recorded in the books of accounts.
v) The company has not traded or invested in Crypto currency or Virtual currency anytime during the current
and previous year.
vi) The company has used the borrowings from banks and financial institutions for the specific purpose for
which it was taken at the balance sheet date.
vii) The title deeds, comprising all the immovable properties which are freehold, are held in the name of the
company as at the balance sheet date except where the assets repossessed and disclosed as “Assets Held
for Sale”.
Note: In its normal course of business, the Company does not repossess properties or other assets in its portfolio
but to mitigate the credit risk on financial assets, the Company seeks to use collateral, where possible as per
the powers conferred on the Non-Banking Finance Companies under the Securitisation and Reconstruction
of Financial Assets and Enforcement of Securities Interest Act, 2002 (“SARFAESI”). The Company generally
engages external or internal agents to recover funds at auctions in compliance of SARFAESI Act 2002 by way
of repossession of properties to settle possible outstanding debt but not to acquire the above said property
in satisfaction of debt. Any surplus funds are returned to the customers/obligors and also reserve the rights
to recover the balance amount post settlement of the property in auction, settlement with customer, private
treaty or any other method of settlement. The residential properties under legal repossession processes are
treated as assets held for sale at (i) fair value less cost to sell or (ii) principle outstanding, whichever is less, at the
repossession date are shown above.
ix) All charges or satisfaction are registered with the ROC within the statutory period for the year ended March
31,2026 and March 31,2025. No charges or satisfactions are yet to be registered with the ROC beyond the
statutory period.
x) Clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017,
pertaining to restriction on number of layers, is not applicable on the company for the year ended March 31,
2026 and March 31, 2025 as the company does not have any investments.
xi) Ratios for the current and previous years are as follows along with reason for variance if more than 25%:
xii) The company has not revalued any of its property, plant and equipment during the year ended March 31,
2026 and year ended March 31, 2025. Hence, the amount of change in gross and net carrying amount due
to revaluation is nil.
xiii) The company has not been declared as a wilful defaulter by any bank or financial institution or other lender
in the year ended March 31, 2026 and year ended March 31, 2025.
xiv) No loans or advances in the nature of loans have been granted to promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:
(a) repayable on demand; or
(b) without specifying any terms or period of repayment.
xv) The company did not have any long-term contracts including derivatives contracts for which there were any
material foreseeable losses.
xvi) The company is maintaining its books of account in electronic mode and the back-up of books of account
has been kept on a daily basis.The company uses accounting software for maintaining its books of account
for the financial year ended March 31, 2026 which has a feature of recording audit trail (edit log) facility and
the same has operated throughout the year for all relevant transactions recorded in the software. Further,
the audit trail has been preserved by the company as per the statutory requirements for record retention
and the Audit Trail feature was not tempered with.
NOTE 55: DISCLOSURE PURSUANT TO PARA C.1 OF RESERVE BANK OF INDIA (NON-BANKING
FINANCIAL COMPANIES - FINANCIAL STATEMENTS: PRESENTATION AND DISCLOSURES)
DIRECTIONS, 2025 DISCLOSURE REQUIREMENTS VIDE NOTIFICATION NO. RBI/DOR/2025-
26/359 DOR.ACC.REC.NO.278/21.04.018/2025-26 DATED NOVEMBER 28, 2025
With effect from April 1, 2018, as per the roadmap issued by the Ministry of Corporate Affairs for Non-Banking
Finance Companies vide notification no. G.S.R 365(E) dated March 30, 2016, for financial reporting purposes,
the company has followed the Accounting Standards as specified under Section 133 of the Companies Act,
2013, read with Rule 3 of the Companies (Indian Accounting Standard) Rules, 2015 (Ind AS). Accordingly, the
information given below is disclosed by the company based on Ind AS financial statements and other records
maintained by the company for the year ended March 31, 2026. For the purpose of these disclosures “Non¬
performing assets (NPA)” represents Stage 3 loans and “Standard assets” represents “Stage 1” and “Stage 2” as
defined in Ind AS financial statements.
iii. Disclosure related to Non-Fund Based (NFB) Credit Facilities
The company doesn't provide any non fund based credit facilities during the year ended March 31, 2026 and
March 31, 2025.
iv. Disclosures on Co-Lending Arrangements
The company doesn't made any Co-lending arrangement during the year ended March 31, 2026 and
March 31, 2025.
v. Disclosures Relating to securitisation
The company doesn't entered any securitisation transaction during the year ended March 31, 2026 and
March 31, 2025.
f) Institutional set-up for Liquidity Risk Management
The Board of Directors has the overall responsibility for establishing the risk management framework for the
Company. The Board, in turn has established an ALM Committee (ALCO) for evaluating, monitoring, and reviewing
liquidity and interest rate risk arising in the Company on both sides of the Balance sheet. The Board based on
recommendations from the ALCO has prescribed policies and the risk limits for the management of liquidity risk.
ALCO committee is responsible for managing the risks arising out of Asset Liability mismatches consistent with
the regulatory Appendix - II requirements and internal risk tolerances established by the Board.
Note: Definition of terms as used in the table above:
a) Significant counterparty
A. Significant counterparty” is defined as a single counterparty or group of connected or affiliated counterparties
accounting in aggregate for more than 1% of the NBFC's total liabilities.
b) Significant instrument/product
A. significant instrument/product” is defined as a single instrument/product or group of similar instruments/
products which in aggregate amount to more than 1% of the NBFC's total liabilities.
c) Total Liabilities
Total Liabilities include all external liabilities (other than equity).
d) Other short-term liabilities
Other Short-term Liabilities is computed as current maturities of long-term debt, short-term bank borrowings
including outstanding CC/WCDL and other short-term liabilities has been considered but excludes commercial
paper and non convertible debentures (original maturity of less than one year).
e) Public funds
The company is a non-deposit taking systemically important NBFC, therefore only information related to
borrowings have been disclosed above and no information related to deposits is available.
xiv. Disclosure relates to Credit Default Swaps
No such transaction has been entered by the company during the year ended March 31, 2026 and March 31,
2025.
e. Details of non-compliance with requirements of Companies Act, 2013
There was no non-compliance with requirements of Companies Act, 2013 by the company during the year
ended March 31, 2026 or during the year March 31,2025.
f. Disclosure of penalties imposed by RBI and other regulators
No penalty has been imposed by any regulator during the year ended March 31, 2026 (March 31, 2025: Nil).
x) Breach of covenant
There were no instances of default or breaches of covenant in respect of loan availed or debt securities issued
during the financial years ended March 31, 2026 and March 31, 2025.
xi) Divergence in Asset Classification and Provisioning
The RBI has neither assessed any additional provisioning requirements in excess of 5% of the reported profits
before tax and impairment loss on financial instruments for the financial year ended March 31, 2025, latest
assessed period, nor identified any additional Gross NPAs in excess of 5% of the reported Gross NPAs for the said
period.
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