(b) Terms/ rights/ resetrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 1/- per share. Each holder of equity shares is entitled to one vote per share. The dividend recommended by the Board of Directors and approved by the shareholders in the Annual General Meeting is paid in Indian Rupees. 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.

Nature and purpose of other equity

(i) Securities Premium

Securities premium is used to record the premium on issue of shares. It can be utilised only for limited purposes in accordance with the provisions of the Companies Act, 2013.

(ii) Retained earnings

Retained earnings represents the surplus in profit and loss account and appropriations.

{iii) Reserve fund in terms of section 45-IC of the RBI Act, 1934

Reserve fund is created as per the terms of section 45-1 C(l) of the Reserve Bank of India Act, 1934 as a statutory reserve.

(iv) General reserve

Amounts set aside from retained profits as a reserve to be utilised for permissible genera I purpose as per Law.

4.4 Event after reporting date

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

4.5 Corporate Social Responsibility

Expenditure required to be incurred under Section 135 of the Companies Act, 2013 on Corporate Social Responsibility (CSR) activities are Rs Nil (Previous

4.5 Segment Reporting

The Company operates in a single reportable segment i.e financing, since the nature of the loans are exposed to similar resik and return profiles hence theyare collectiielyopearting undera single segment.The Company operates in a single geographical segment i.e. domestic.

4.7 Financial Risk Management Objectives and Policies

The Company's Board of Directors has overall responsibility forthe establishmentand oversight of the Company's Risk Managementframework.

The Company actively manages its capital base to cover risks inherent to its business and meet the capital adequacy requirement of RBI. The adequacy of the Company's capital is monitored using, among other measures, the regulations issued by RBI.

The Company has exposure to Credit, liquidity and Market risks arising from financial instruments:

a. Market Risk

Market risk is the risk that the fair val ue of future cash flow of financial instruments will fluctuate due to changes in the market variables such as interest rates, foreign exchange rates and equity prices. The Com pa ny do not have any exposure to foreign excha nge rate and equity price risk.

b. Credit Risk

Credit risk is the risk of financial loss arising out of a customer or counterparty failing to meet their repayment obligations to the Company. It has a diversified lending model and focuses on six broad categories vie: |i) consumer lending, (ii| SME lending, (iii) rural lending, (iv| mortgages, (v| loa n against securities, and (vi| commercial lending. The COm pa ny assesses the credit quality of all financial instruments that are subject to credit risk.

Classification of financial assets under various stages

The Company classifies its financial assets in three stages having the following characteristics:

Stage 1: unimpaired and without significant increase in credit risk since initial recognition on which a 12 monthsllowanee for Ed is recognised;

Stage 2: a significant increase in credit risk since initial recognition on which a lifetime Ed is recognised;

Stage 3 : objective evidence of impairment, and a re therefore considered to be in default or otherwise credit impairedHn which a lifetime ECL is recognised.

Unless identified a tan earlier stage, all financial assets are deemed to have suffered a significant increase in credit risk when they a re 30 days past due (DPD| and are accordingly transferred from stage 1 to stage 2. For stage lan ECL a I Iowa nee is calculated based on a 12 month Point in Time (PIT| probability weighted probabilityof default (PD). For stage 2 and 3 assets a life time Ed is calculated based on a lifetime PD.

The Company has calculated Ed using three main components: a probability of default (PD|,a loss given default (LGD| and the exposure at default (EAD) along with an adjustment considering forward macro economic conditions.

Financial instruments other than loans were subjected to simplified Ed approach under Ind AS 109 Financial Instruments' and accordingly were not subject to sensitivity of future economic conditions.

The table be low summarises the approach adopted by the Company for various components of ECL viz. PD, EAD and IGD across product lines using emperical data where relevant:

c. Liquidity and interest rate Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meelits liabilities when theyare due, underboth normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument fluctuate because of change in market interest rates.

4.10 Fair Value Vleasurerrent a. Valuation methodologies adopted

Fair values of financial assets, other than those which are subsequently measured at amortised cost, have been arrived at as under:

Fair values of investments held for trading under FVTPL have beer determined under level 1 (refer note no, 48) using quoted market prices of the underlying instruments;

Fair values of strategic investments in equity instruments designated under FVOCI have been measured under level 3 {refer note no. 48) at fair value based on a discounted cash flow model.

Fair values of other investments under FVOCI have been determined under level 1 using quoted market prices of the underlying instruments;

Fairvalue of loans held under a business model that isachieved by both collecting contractual cashflows and partially selling the loans through partial assignment to willing buyers and which contain contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest ane measured at FVOCI.The fairvalue ofthese loans have been determined under level 3.

The Company has determined that the carrying values of cash and cash equivalents, bank balances, trade receivables, short term loans, floating rate loans, investments in equityinstruments designated at FVOCI, trade payables, short term debts, borrowings, bank overdrafts and othercurrent liabilities area reasonable approximation of theirfair value and hence theirca trying value are deemed to be fairvalue.

b.^:air values hierarchy

Fairvalje measure me nts are analysed bylevel in the fairvalue hierarchyas follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations techniques with all material inputs observable forthe asset or liability, either directly (that is, as prices] or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable marketdata (thatis, unobservable inputs). Managementapplies judgementin categorisingfinancial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significantadjjstment, that measurement is a Level 3 measurement. The signifiance of a valuation input is assessed againstthe fairvalue measurement in its entirety.

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 leliabilityofthe inputs used in determining fairvalue, the Companyhas classified its financial instruments into the three levels prescribed underthe accounting standard.

Level l:The fairvalue of financial instruments traded in active markets (such as publiclytraded derivatives, and eqjitysecurities) is based on quoted market prices at the end of the reporting period, The quoted market price used for financial assets held by the group is the current bid price, These instruments a re included in level 1,

Level 2: The fairvalue of financial instruments that are not traded in an active marketer example, over-the-counter derivatives] is determined using valuation techniques which maximise the use of observable marketdata and rely as little as possible on entity-specific estimates. If all significant inputs required to fairvalue an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3,

There are no transfers between levels 1, level 2 and level 3 during the year.

b. Analytical Ratios

Other than in the normal and ordinary course of business there are no funds that 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 orotherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company; or provide any guarantee, securityorthe like on behalf of the Ultimate Beneficiaries.

There have been no funds that have been received bythe Company from any persons orentities, including foreign entities {"Funding Parties"), with the

understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons orentities identified in any manner whatsoever ("Ultimate Beneficiaries') by oron behalf of the Funding Party or provide any guarantee, security orthe like on behalf ofthe Ultimate Beneficiaries.

4.14 Previous yea^s figures have been regrouped/ rearranged wherever necessary to make them comparableto those with the current year,