The company has not declared any dividend during the year.

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.

(iii) Capital management for the Company’s objectives, policies and processes for managing capital:

The Company’s objective is to maintain

appropriate levels of capital to support its business strategy taking into account the

regulatory, economic and commercial environment.

The primary objectives of the Company’s capital management policy are to ensure that the Company complies with externally imposed capital requirements 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 in the light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and shortterm deposits.

A)Statutory Reserves:

Every year the Company transfers a sum of not less than twenty per cent of net profit of that year as disclosed in the statement of profit and loss to its Statutory Reserve pursuant to Section 45-IC of the RBI Act, 1934.

The conditions and restrictions for distribution attached to statutory reserves as specified in Section 45-IC(1) in The Reserve Bank of India Act, 1934:

a)Every non-banking financial company (NBFC) shall create a reserve fund and transfer therein a sum not less than twenty per cent of its net profit every year as disclosed in the profit and loss account and before any dividend is declared.

b) No appropriation of any sum from the reserve fund shall be made by the NBFC except for the purpose as may be specified by the RBI from time to time and every such appropriation shall be reported to the RBI within twenty-one days from the date of such withdrawal:

Provided that the RBI may, in any particular case and for sufficient cause being shown, extend the period of twenty one days by such further period as it thinks fit or condone any delay in making such report.

c) Notwithstanding anything contained in subsection (1), the Central Government may, on the recommendation of the RBI and having regard to the adequacy of the paid-up capital and reserves of a NBFC in relation to its deposit liabilities, declare by order in writing that the provisions of sub-section (1) shall not be applicable to the NBFC for such period as may be specified in the order:

Provided that no such order shall be made unless the amount in the reserve fund under subsection (1) together with the amount in the share premium account is not less than the paid-up capital of the NBFC.

B) Securities Premium:

The amount received in excess of face value of the equity shares is recognized in Securities premium. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium. The reserve can be utilized only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

C) Retained Earnings:

Retained earnings are the profits that the Company has earned till date, less any transfers to statutory reserve, debenture redemption reserve, general reserve, dividends distributions paid to shareholders and transfer from debenture redemption reserve.

D) Other Comprehensive Income:

Other comprehensive income comprises of Changes in actuarial gains on account of Defined Benefit obligations and Investment in Equity Instruments designated at FVOCI not declassifiable to Profit and Loss Statement. On derecognition of Equity Instruments, company transfers the amount to Retained Earnings.

* Recorded as Loan Bad Debts (Write offs) in Profit and Loss Statement. Hence, Gross Amount as per Ind AS in Balance Sheet will have a difference to that extent.

Note: As required by the RBI Notification, 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 provision made under Ind AS equals the prudential norms prescribed by the RBI.

The Company" Kreon Finnancial Services Limited" has complied with the various requirements prescribed by Master Direction - Reserve Bank of India (Non-Banking Financial Company - Scale Based Regulation) Directions, 2023

*Tier II is not applicable on the company.

*CRAR = (Tier I Capital Tier II Capital) / Risk-Weighted Assets.

• Minimum capital ratio consisting of Tier I and Tier II capital of not less than 15 percent of aggregate risk weighted assets on- balance sheet only as the company has no any risk adjusted value of off- balance sheet items.

• The Tier I capital at any point of time, shall not be less than 10%

* During the year 2022, the company had forfeited outstanding amounts of Rs. 16.25 lakhs pertaining to advances received from certain parties more than 5 years back, owing to failure in fulfillment of further commitment by such parties. Such forfeited advance amounts are appropriately considered as income now. No amount would be due to such parties and no claim could be held good against the company in this regard.

However, in line with Ind AS 37, the company recognizes the said amount of Rs. 16.25 lakhs as a Contingent Liability.

There are no other unexecuted capital contracts which are outstanding or remaining to be performed.

There is no pending commitments for the financial years ended March 31, 2025 and March 31, 2024.

38. Utilization of borrowings from Banks and Financial Institutions

The company doesn’t have any borrowings from banks or financial institutions in the financial years ended March 31, 2025 and March31, 2024.

39. Details of title deeds of Immovable Property not held in name of the Company: (other than properties where the company is the lessee and

the lease agreements are duly executed in favour of the lessee)

The Company does not possess any immovable property whose title deeds are not held in the name of the Company during the financial year ended March 31, 2025 and March 31, 2024.

38. Details of loans and advances in the nature of loans granted to promoters, directors, KMPs and the related parties (as defined under companies act, 2013) either severally or jointly with any other person:

The Company hasn’t granted any loans or advances to promoters, directors, KMPs and their related parties during the financial year ended March 31, 2025 and March 31, 2024.

41. Details of Benami Property Proceedings

under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made

thereunder:

No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder in the financial years ended March 31, 2025 and March31, 2024.

42. Borrowings from Banks and Financial Institutions on the basis of Current Assets (Working Capital Funds)

The company doesn’t have any any borrowings from banks or financial institutions in the financial years ended March 31, 2025 and March 31, 2024.

43. Details of Willful Defaulter

The Company has not been declared as a willful defaulter by any bank or financial institution or other lender in the financial years ended March 31, 2025 and March 31, 2024.

44. Details of transactions with Stuck-Off Companies

The company doesn’t have any transactions with struck off companies in the financial years ended March 31, 2025 and March 31, 2024.

45. Details of Over due of Charger Registration with Registrar of Companies

All charges or satisfaction, if required, are registered with ROC within the statutory period for the financial years ended March31, 2025 and March 31, 2024. No charges or satisfactions are

yet to be registered with ROC beyond the statutory period.

46. Compliance with number of layers of companies:

The Company has no subsidiaries for the financial years ended March 31, 2025 and March 31, 2024.

47. Details of undisclosed income under Income Tax Act, 1961 not recorded in books of accounts:

There are no transactions not recorded in the books of accounts.

48. Details of Crypto Currency or Virtual Currency:

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

49. Disclosure required under Sec 186(4) of the Companies Act 2013

The loan made, guarantee given or security provided in the ordinary course of business by a NBFC registered with Reserve Bank of India are exempt from the applicability of provisions of Section 186 of the Act.

50. Scheme of Arrangements

The company doesn’t have any scheme of arrangements to disclose during the financial years ended March 31, 2025 and March 31, 2024.

51. Utilization of Borrowed funds and share premium:

The Company, as part of its normal business, grants loans and advances, makes investment, provides guarantees to and accept deposits and borrowings from its customers, other entities and persons. These transactions are part of Company’s normal non-banking finance business, which is conducted ensuring adherence to all regulatory requirements.

Other than the transactions described above, 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 persons or entities, including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has also not received any fund from any parties (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 Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

53.Financial Risk Management:

In course of its business, the Company is exposed to certain financial risks that could have significant influence on the Company’s business and operational / financial performance.

The Board of Directors reviews and approves risk management framework and policies for managing these risks and monitors suitable mitigating actions taken by the management to minimize potential adverse effects and achieve greater predictability to earnings.

Borrowings, trade payables and other financial liabilities constitute the Company’s primary financial liabilities and investment in shares, trade receivables, loans, cash and cash equivalents and other financial assets are the financial assets.

Credit Risk:

Credit risk refers to the risk of default on the loan receivables to the Company that may result in financial loss. The maximum exposure from unsecured loan receivables amounts to Rs.2998.03 Lakhs and Rs.2766.18 Lakhs as of March 31, 2025 and March 31, 2024 respectively.

Loans are advances to Corporates and to individual business entities and to the student community. Credit risk is being managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to allow credit terms in the normal course of business. Generally, the loan tenure is for a period of one year and renewable based on the request of the borrower. In the case of loans offered to students through its "StuCred" App, the credit period is up to 150 days.

Liquidity Risk:

The objective of liquidity risk management is to

maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk through cash credit limits and undrawn borrowing facilities by continuously monitoring forecast and actual cash flows. The Company invests its surplus funds in bank fixed deposit which carry minimal mark to market risks.

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 for the entity comprises two types of risk: currency risk, interest rate risk and equity price risk. Financial instruments affected by market risk include borrowings, trade payables in foreign currency and investment in unquoted equity shares. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimizing the return.

Currency Risk:

The Company is not exposed to any significant currency risk. During the year under review, the company has bought/subscribed to software in foreign currency at the time of purchase/subscription.

Sensitivity analysis:

Since the company is not exposed to any currency risk, sensitivity analysis of foreign currency transactions is not applicable.

Interest Rate Risk:

The Company is not exposed to any interest rate