n. Provisions, Contingent Liabilities and Contingent Assets

Contingent liabilities as defined in Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets” are disclosed by way of notes to accounts. Provision is made if it becomes probable that an outflow of future economic benefits will be required for an item previously dealt with as a contingent liability.

o. Statement of Cash flow

Cash flows are reported using the indirect method, whereby the net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of the past or future cash receipts or payments. The cash flows from regular revenue generating, investing & financing activities of the company are segregated.

p. Statutory Reserve and Provision of Standard Assets

A Statutory Reserve of 20% of the current profit after tax is made during the year in pursuance of section 45-IC of the Reserve Bank of India Act, 1934.

Provision is made @ 0.40 % of Standard assets which includes secured and unsecured loans granted to companies and other entities.

q. Prudential Norms

For the purpose of identifying the assets as Non-performing assets in pursuance of NonBanking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998, the Company follows generally accepted accounting principles and industry practices.

r. Taxation

Current tax comprises amount of tax payable in respect of the taxable income or loss for the year determined in accordance with Income Tax Act, 1961 and any adjustment to the tax payable or receivable in respect of previous years. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequence that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Capital management

The Company has only equity capital. The Company operates as an Investment Company and Loan Company and consequently is registered as a Non-Banking Financial Institution -Investment and Credit Company (NBFC-ICC) with Reserve Bank of India (RBI). As per RBI’s ‘Scale Based Regulations’ (SBR), the Company is classified as NBFC - Base Layer (NBFC-BL).

The funds are currently invested in equity, debt, money market and other instruments or given as loan depending on economic conditions in line with Investment Policy set by the Management. Safety of capital is of prime importance to ensure availability of capital for operations. Investment objective is to provide safety and adequate return on the surplus funds.

No changes were made in the objectives, policies and processes of capital management during the year.

Note 29 The Company is mainly engaged in the business of providing finance and dealing in shares and securities. All other activities of the Company revolve around the main business, and as such in the opinion of the management, there is no separate reportable segment as per IND AS 108 on ‘Operating Segments’ in respect of the Company.

The Company operates in single segment only. There are no operations outside India and hence there is no external revenue or assets which require disclosure.

Note 30 Loans and advances given to the employees and associates and for projects do not carry any stipulation as to repayment of principal or payment of interest; and are being repaid periodically. Accordingly, these are considered as good and not considered as part of nonperforming assets.

Note 31 The management has made full inquiries and is of the view that assets of the Company in form of fixed assets and Inventories are good in nature, and are stated at appropriate value of the respective assets; and there is no necessity as to impairment / write down provision in the accounts.

Note 45 The Notes referred to in the Balance Sheet and Statement of Profit and Loss Account form an integral part of the Accounts.

Note 46 Company do not have borrowings from Banks or financial institutions on the basis of security of current assets, hence disclosure to that effect is not required.

Note 47 The Company does not have any benami property and no proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

Note 48 There have been no events after the reporting date that require disclosure in these financial statements.

Note 49 Company do not have any transactions with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act,1956, hence disclosure to that effect is not required.

Note 50 There are no charges or satisfaction yet to be registered with Register of Companies (ROC) beyond the statutory period.

Note 51 Company is not declared willful defaulter by any bank, financial institution or other lender, hence disclosure to that effect is not required.

Note 52 There is no such scheme of Arrangements has been approved by the Competent Authority in terms of Section 230 to 237 of the Companies Act. 2013.

B. Where a company has received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the

i) 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

ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

Note 59 Other information pursuant to General Instructions for preparation of Balance Sheet and Profit & Loss Account of Schedule III to the Companies Act 2013 is not applicable.

UDIN: 24035809BKCQTG4384 AS PER OUR REPORT OF EVEN DATE

FOR CHAITANYA C. DALAL & COMPANY FOR AND ON BEHALF OF THE BOARD OF CHARTERED ACCOUNTANTS MUKESH BABU FINANCIAL SERVICES LIMITED

Chaitanya C. Dalal Mukesh Babu Meena Babu

Partner Managing Director Director

Membership No.35809 DIN:00224300 DIN:00799732

FRN NO. 101632W

Mahesh Thakar Nupur Chaturvedi

Chief Financial Officer Company Secretary

ACS: A30139

Place : Mumbai Place : Mumbai

Date : 23/05/2024 Date : 23/05/2024