Usha Financial Services Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

2.11 Provisions, contingent liabilities and contingent assets

A provision is recognized when there is present obligation as a result of past event and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which
a reliable estimate can be made. Provisions are determined based on best estimates required to
settle the obligation at the balance sheet date. These are reviewed at each balance sheet date
and adjusted to reflect the current management estimates. Loss contingencies aris ing from
claims, litigation, assessment, fines, penalties, etc., are recorded when it is probable that a
liability has been incurred and the amount can be reasonably estimated

2.12 Classification and provisioning on receivables from financing activities

Receivable from financing activities are recognised on disbursement of loan to customers. The
details of the policy are given below:

Receivable from financing activities are classified as standard, sub - standard and doubtful
assets and provided for as per the Company’s policy and Management’s estimates, subject to
the minimum classification and provisioning norms as per the Master Direction - Non-Banking
Financial Company - Scale Based Regulation) Directions, 2023.

“Overdue” refers to interest and / or principal and / or instalment remaining unpaid from the day it
became receivable.

“NPA” refers to account remaining overdue for period of 90 days or more

d) Under exceptional circumstances, Management may renegotiate loans by rescheduling repayment
terms for customers who have defaulted in repayment but who appear willing and able to repay
their loans under a longer term agreement. Rescheduled Standard Assets are classified / provided
for as Sub-Standard Assets as per (b) above which classification / provisioning is retained for a
period of 1 year of satisfactory performance. Rescheduled Non Performing Assets are not upgraded
but are retained at the original classification / provisioning for a period of 1 year of satisfactory
performance.

2.13 Operating Cycle

Assets and liabilities are classified as current and non-current based on the operating cycle which
has been estimated to be 12 months. All assets and liabilities which are expected to be realized
and settled, within a period of 12 months from the date of Balance sheet have been classified as
current and other assets and liabilities are classified as non-current. All Non-Performing Assets are
classified as non-current.

\ \ \ 1 I

B. Terms/rights attached to shares

The company has only one class of equity shares having a par value of Rs. 10 per share.
Each holder of equity shares is entitled to one vote per share. During the period ended 31 st
March 2025 the company did not recognize dividend as distributions to equity shareholders.
In the event of liquidation, the equity shareholders are eligible to receive the remaining asset
of the company after distribution of all preferential amount in proportion to their shares.

The board of directors of the company in the Board Meeting Dated 01 st June, 2024 and
shareholders of the company in the extra ordinary general meeting dated 03rd
June,2024 pursuant to section 63 of Companies Act,2013 and rules made thereunder,
proposed a sum of Rs. 529.25 lakhs to be capitalized as bonus equity shares out of
free reserves and surplus, and distributed amongst the equity shareholders by issue
of 52,92,541 share in the proportion of 5 (Five) new fully paid-up equity share of Rs.
10/- each (Rupees Ten) for every 10 (Ten) existing fully paid-up equity shares of Rs. 10/.
(Rupees Ten).

27 Employee benefit Plan
A Defined Benefit plan
Retiring gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible
employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to 26 days salary payable for each
completed year of service. Vesting occurs upon completion of five years of service. The Company does not
make any contributions to gratuity funds and the plan is unfunded. The Company accounts for the liability
for gratuity benefits payable in the future based on an actuarial valuation.

The defined benefit plans expose the Company to a number of actuarial risks as below:

a. Interest risk: A decrease in the bond interest rate will increase the plan liability.

b. Salary risk: The present value of the defined benefit plan liability is calculated by reference to the
future salaries of plan participants. As such, an increase in the salary of the plan participants will
increase the plan’s liability.

c. Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the
best estimate of the mortality of plan participants. An increase in the life expectancy of the plan
participants will increase the plan’s liability.

31 Segment Reporting

The Company is an NBFC engaged primarily in the business of Lending and all its operations are in
India only. Accordingly, there are no separate reportable segments as per Accounting Standard 17 -
“Segment Reporting”.

32 Contingent Liabilities and Commitments

The Company received a demand notice from the Income Tax Department for the Assessment Year
2019-20 on 27/03/2025. The demand pertains to an addition to income made by the Department in
respect of certain unsecured loans received by the Company. The Company does not agree with
the demand and has filed an appeal with the Commissioner of Income Tax (Appeals) [CIT(A)] on
18/04/2025. The Company expects a favourable outcome in the appeal; accordingly, the amount
has been disclosed as a contingent liability.

(1 )As on March 31, 2025, the Company has unsecured loan exposures of ^445.25 lakhs and
^247.17 lakhs to two borrowers, with EMIs overdue for 602-619days. A 20% provision has
been made as per the Company''s policy, as none of the loans have crossed the 630-days
threshold as on 31 st March 2025, for full provisioning.

(2) Insolvency proceedings have been initiated against a borrower with an outstanding
secured loan of ^1,212.46 lakhs as on March 31, 2025. The Company expects favorable
recovery and has made provisioning as per its policy and applicable RBI norms

38 Other disclosures/information

Additional information required as per Schedule III of the Companies Act, 2013 :

(i) Details of benami property held

No proceedings have been initiated or are pending against the Company as at March
31,2025 for holding benami property under the Benami Transactions (Prohibition) Act (45of
1988), as amended and rules made thereunder.

(ii) Wilful defaulter

The company is not declared wilful defaulter by any bank, financial institution or lender as at
^{March 31}''²⁰²⁵.

(iii) Relationship with struck off companies

There are no transactions made by the Company during the year with struck off companies
as at March 31,2025.

(iv) Compliance with number of layers of companies

The Company does not have any subsidiary or Associate or Joint Venture company during

(v) Compliance with approved scheme(s) of arrangements

During the year, no scheme of arrangements in relation to the Company has been approved
by the competent authority in terms of Section 232 to 237 of the Companies Act,2013.
Accordingly, this clause is not applicable to the company.

(vi) Utilization of borrowed funds and share premium

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 transactions described above,
during the year the Company has not advanced or lend or invested funds (either from the
borrowed funds or share premium or any other sources or kind of funds) to any person or
entity, including foreign entity (Intermediaries) with the understanding (whether recorded in
writing or otherwise) that the Intermediary shall (a) 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 (b) provide any guarantee, security or the like to or on
behalf of the ultimate beneficiaries The Company has not received any fund from any person
or entity, including foreign entity (Funding Party) with the understanding (whether recorded in
writing or otherwise) that the Company shall (a) 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 (b) provide any guarantee, security or the like on behalf of the
ultimate beneficiaries

(vii) Undisclosed income

The Company does not have any unrecorded transactions in the books of account which
have been surrendered or disclosed as Income during the year in the tax assessment under
the Income Tax Act, 1961.

(viii) Transactions in crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the year
ended March 31,2025.

(ix) Revaluation of property, plant & equipment and intangible asset

The Company has not revalued its property, plant and equipment (including right-of-use
assets) or intangible assets or both during the year ended March 31,2025.

•Am U

(x) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are pending to be registered with the Registrar of
Companies as on March 31,2025.

39 Previous year figures have been regrouped/reclassified to confirm to current year
classification

As per our report of even date

For KRA & Co. For and on behalf of the Board of Directors

Chartered Accountants USHA FINANCIAL SERVICES LIMITED

Firm Regd. No.020266N

Rajesh Gupta Geeta Goswami

Sd/- Managing Director CEO & Director

Rajat Goyal DIN-01941985 DIN: 07810522

Membership No. : - 503150 Sd/- Sd/-

UDIN: 25503150BMJBYU9923 Prashant Raghuwanshi Kritika

Place: New Delhi CFO Company Secretary

Dated: 12/05/2025 M.No. : 460716 M.No : 65161

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Mar 31, 2024

2.11 Provisions, contingent liabilities and contingent assets

A provision is recognized when there is present obligation as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are
determined based on best estimates required to settle the obligation at the balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current management estimates. Loss contingencies arising from claims,
litigation, assessment, fines, penalties, etc., are recorded when it is probable that a liability has been incurred and the
amount can be reasonably estimated

2.12 Classification and provisioning on receivables from financing activities

• Receivable from financing activities are recognised on disbursement of loan to customers. The details of the policy are
given below:

• Receivable from financing activities are classified as standard, sub - standard and doubtfitl assets and provided for as per
the Company s policy and Management’s estimates, subject to the minimum classification and provisioning norms as per
the Master Direction - Non-Banking Financial Company - Non-Systemically Important Non-Deposit taking Company
(Reserve Bank) Directions, 2016.

d) Under exceptional circumstances, Management may renegotiate loans by rescheduling repayment terms for customers who
have defaulted in repayment but who appear witling and able to repay their loans under a longer term agreement.
Rescheduled Standard Assets are classified / provided for as Sub-Standard Assets as per (b) above which classification /
provisioning is retained for a period of 1 year of satisfactory performance. Rescheduled Non Performing Assets are not
upgraded but are retained at the original classification / provisioning for a period of 1 year of satisfactory performance.

2.13 Operating cycle

Assets and liabilities are classified as current and non-current based on the operating cycle which has been estimated to be 12
months. All assets and liabilities which are expected to be realized and settled, within a period of 12 months from the date of
Balance sheet have been classified as current and other assets and liabilities are classified as non-current. All Non-Performing
Assets are classified as non-current.

Note No. S^iil

Terns and conditions of secured loans and nature of security

a. During the year the company has issued following NCD as mentioned below¬
- 500 Non Convertible Debentures(Series K) at the face value of Rs. 100000 each aggregating to Rs. 5,00,00,000 at
the coupon rate of 12%. These NCDs will mature in Sept 2026.

b. NCDs are secured byway of exclusive charge on identified pool of assets

c. Vehicle Loans HDFC Bank were secured against hypothecation of respective vehicles.

d. Secured Term loans from Banks and Financial institutions are secured by hypothecation of receivables as per their
respective loan agreements.

e. Term Loan form State bank of India & AU Small Finance Bank is further secured by way of collateral security of
a Residential Property and TL from City Union Bank is secured with Commercial Property held by UFSL.

f. Term loans from Grow Money Capital Pvt Ltd, Alwar Genera! Finance Co Pvt Ltd, MAS Financial Services Ltd,
TATA Capital Services Ltd and South Indian Bank are further secured by cash collateral in the shape of Fixed
deposit/ security deposit as per their loan agreement in addition to hypothecation of receivables.

37 Other disdosures/information

Additional information required as per Schedule III of the Companies Aci, 2013 :

(i) Details of benami property held

No proceeding!; have been milled or are pending against the Company as at March 31,2024 for holding benami property under the Benami Transactions (Prohibition) Act (45of i 988) as
amended and rules made thereunder.

(ii) Willful defaulter

The company is not declared willful defaulter by any bank, financial institution or lender as at March 31,2024.

(iii) Relationship with struck off companies

There arc no transactions made by the Company during the year with struck off companies as at March 31,2024.

(iv) Compliance with number of layers of companies

The Company does not have any subsidiary or Associate or Joint Venture company during the year.

(v) Compliance w ith approved scheme(s) of arrangements

During the year, no scheme of arrangements in relation to the Company has been approved by the competent authority in terms of Section 232 to 237 of the Companies Act,20[3, Accordinsiv
this clause is not applicable to the company. ⁶ 3''

(vi) Utilization of borrowed funds and share premium

« “77 ^bU!i"T 7 “^{mpany ffantS U}™^{S and advances ,hc basis of} «™.iy.’guunmtee provided by the Borrawur/CtHbormwor. These transactions arc conducted after

g proper due diligence, Other than transactions described above, during the year tire Company has not advanced or [end or invested funds [either train the borrowed funds or share
premium or any other sources or kind of tends) to any p™„ or entity, including foreign entity ([ntennediaries) with the understanding (whether

Intermediary shall (a directly or indirectly lend or invest ,n other persons or entities identified in any manner whatsoever by or on behalf of Che Company (Uftimate Beneficiaries) or (b) provide
any guaranlee secunty or the Like to or on behalf of the ultima* benefleiar.es The Company has not received any fund from any poson or entity, including foreign entity (Funding Parti) !ith the

^ , P ^ mil ''ⁿ TV''- °^thT^SC2^tha'' ^COmPa"^{y Sha}" ^{(a> J}''^{rertly i}“^lireCtl)'' ^le0tl ” ^inVeS''^{in 0ther} P^ers™^{s or} «•>*''<» tdcnlifiod in any imnper whatso^r by or on

behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(vii) Undisclosed income

The Company does not have any unracorded transactions in the books of account which have been surrendered or disclosed as income during the year in the tax assessment under the Income Tax
(vlii) Transactions in crypto currency or virtual currency

The Company has not traded or invested in crypto currency of virtual currency during the year ended March 31. 2024.

(ii) Revaluation of property, plant & equipment and intangible asset

Titc Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the year ended March 31, 2024.

(*) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are pending to be registered with the Registrar of Companies as on March 31,2024.

38 Previous year figures have been regrouped/reclassilied to confirm to current year classification

As per our report of even date Fur and on behalf of the Board af Directors

For KRA & Co. _USHA FINANCIAL SERVICES LIMITED f J /O

Chartered Accountants ... ^ . . , __ ( '' /

Frnrn Regd. No.02^6bN

ojdxc

_r,c., \%\ featsr

^{Partncr U} M-W—'' DIN-01941985 f Jg f U\ 11— /tlN-078f«5^7 / *

Membership No.503150 ^ ^V MVl/A ~ J ^DIN.U^W^Z/

Placet Mew Etelhi CA Prashant Raght^bF

Datcd: 05-Of. frjlf _CFO -- Company Secretary

M.No. : 450716 M.No: 65161