M. PROVISIONS AND CONTINGENCIES

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.

N. CLASSIFICATION AND PROVISIONING ON RECEIVABLES FROM FINANCING ACTIVITIES

Receivable from financing activities are recognised on disbursement of loan to customers. 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 - NonBanking Financial Company - Non-Systematically important Non-Deposit taking Company (Reserve Bank) Directions, 2016. The RBI has now harmonised the NPA norms for all NBFCs to 90 days. This amendment will impact the NBFCs in the base layer, which includes the NBFCND (i.e. the non-systemically important, non-deposit taking NBFCs). Accordingly, a glide path has been provided to NBFCs in the base layer to adhere to the 90 days NPA norm till 2026. we have been following the practice of 90 days NPA norms.

Note No.: 3.4 Pursuant to a special resolution at the meeting of the members of the company held on 07th July, 2023 has approved initial public offer. The Company came up with an Initial Public Offer of 65,50,000 shares of face value ? 10 per share were allotted under Initial Public Offer at Premium of ? 41 per share. The said 65,50,000 equity shares were successfully subscribed by the public and Company has made allotment of equity shares on January 16, 2024.

Note No.: 3.5 During the Last 5 Years there are 2 bonus issues as mentioned under the point No. (i) & (ii);

(i) The Board of Directors pursuant to a resolution dated 21st Feb, 2023 and the shareholders special resolution dated 16th March, 2023 have approved the issuance of 5 bonus equity shares of face value ? 10 each for every 4 existing fully paid up equity share of face value ? 10 each and accordingly 43,56,628 bonus equity shares were issued and allotted in accordance with the Section 63 of the Companies Act, 2013;

(ii) The Board of Directors pursuant to a resolution dated 29th April, 2023 and the shareholders special resolution dated 27th May, 2023 have approved the issuance of 1 bonus equity share of face value ? 10 each for every 1 existing fully paid up equity share of face value ? 10 each and accordingly 90,90,325 bonus equity shares were issued and allotted in accordance with the Section 63 of the Companies Act, 2013.

Note No. 31 Other Statutory Disclosures

a) Tax Expenses

Current Tax Provision made during the years.

b) Contingent Liabilities and Commitments

According to the Information and Explanation given to us and on the basis of our examination of the records of the company, the company has not any present obligation as result of past event and not any contingent liabilities and commitments during the year.

c) Capital Commitments

According to the Information and Explanation given to us and on the basis of our examination of the records of the company, the company has not any capital commitments during the year

d) Segment reporting

The Company is engaged is one segment only i.e. Loan Segments and hence there are no separate reportable segment.

e) Title deed of immovable property not held in the name of company

According to the Information and Explanation given to us and on the basis of our examination of the records of the company, there has not any title deed of immovable property in the name of company.

f) Benami property

The company does not have any Benami property, where any 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 the rules made thereunder.

g) Security of Current Assets Against Borrowings

The company does not have any borrowings against any security of current assets. However, company have Secured Loan from various NBFC under First Loss Default Guarantee (FLDG).

h) Willful defaulter

The company is not declared as willful defaulter by any bank or financial Institution or other lender.

i) Transactions with struck off companies

The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013.

j) Registration of charges or satisfaction with Registrar of Companies

The company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

k) Scheme of Arrangements

There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

l) Undisclosed income

The company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the years in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme.

m) Compliance with number of layers of companies

The Company does not have any subsidiaries therefore disclosure of compliance with number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.

n) disclosure pertaining to ‘details of crypto currency or virtual currency

According to the Information and Explanation given to us and on the basis of our examination of the records of the company, the company has not traded or invested in Crypto currency or Virtual Currency during the reporting periods

o) Revaluation of PPE and Intangible assets

According to the Information and Explanation given to us and on the basis of our examination of the records of the compan y, the company has not revalued its Property, Plant and Equipment and Intangible asstes during the reporting periods.

p) disclosure pertaining to ‘corporate social responsibility activities’

The company is not covered under section 135 of the Companies Act, 2013. The disclose with regard to CSR activites is not applicable.

q) Goods and services tax / value added taxes paid on acquisition of assets or on incurring expenses

Expenses and assets are recognised net of the goods and services tax/ value added taxes paid, except when the tax incurred on a purchase of assets or availing of services is not recoverable from the taxation authority, in which case, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable. The net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

r) Directions of Reserve Bank of India

The Company has followed the directions prescribed by Reserve Bank of India for Non- Systematically (Non-Deposit taking) Non-Banking Financial Companies.

s) Ind AS

As per MCA notification dated 16th February 2015 companies whose shares are listed on SME exchange as referred to Chapter IX of SEBI (Issue of Capital and Disclosure Requirements) Regulation, 2018 are exempted from compulsory requirement of adoption of IND-AS.

Note No. 32 Other Disclosures & Information

i. The current assets, loans and advance will be raised in the ordinary course of business at which these are stated in the balance sheet.

ii. The balance of sundry debtors, creditor, loans and advances are subject to confirmation. However, the director has certified the respective balances.

iii. Expenses for which supporting evidences are not found are duly certified by the directors.

iv. Previous year's figures have been regrouped/rearranged wherever necessary to make them comparable with current year figures.

As per our attached report of even date

For V C A S & Co. FOR IBL FINANCE LIMITED

Chartered Accountants FRN: 123372W

Manish M. Patel Piyush M. Patel

CA. Jagdish Vaishnav Managing Director Whole Time Director

Partner DIN: 07840184 DIN: 07838311

M. No. 139060

UDIN: 24139060BKADUL2740 Unnati Mistry Dillip Chauhan

Place: Surat Chief Financial Officer Company Secretary

Date: 07/05/2024 Place: Surat Date: 07/05/2024