Directors Report of Finbud Financial Services Ltd.

Mar 31, 2024

Your Directors have immense pleasure in presenting the Twelfth Annual Report of Finbud Financial
Services Private Limited ("the Company") along with Audited Accounts for the year ended 31 March
2024.

Financial Results: Rs. In lakhs

Particulars	For the year ended 31-03-2024	For the year ended 31-03-2023
Gross revenue	18,949.75	13,492.52
Other Income	3.91	8.98
EBDITA	1,060.69	428.75
Finance cost	115.38	98.38
Depreciation	107.08	89.99
Profit before tax	838.23	240.38
Profit after tax	613.83	145.90
Reserves & Surplus	1,174.67	560.84
Net Worth	1,176.24	562.41
Share Capital	1.57	1.57

Review of Performance

The Company earned a total revenue of Rs. 18,949.75 Lakhs for the year ended 31 March 2024 as
against Rs. 13,492.52 Lakhs of the previous year and resulted in profit after tax of Rs. 613.83 Lakhs
for the current year as against Rs. 145.90 Lakhs for the previous year. There was no change in the
nature of business of the Company during the financial year.

Your directors are optimistic about company''s business and hopeful of better performance with
increased revenue in coming years. No dividend was declared for the current financial year 2023¬
2024.

Outlook for the year 2024-25:

The Company continues to focus on Personal loans Segment and also on further strategic tie ups
with more Banks for acting as their Channel Partners / DSAs and in view of the same, and with
encouraging reports of sizable containment of the Pandemic in the current year, your Directors are
hopeful of improved business conditions thus enabling the company to present decent performance
in the current year.

Share capital

During the FY 2023-24, The Authorised Capital of the Company remains the same at Rs.45,00,000
divided into 10,000 Preference shares of Rs.10/- each, 4000 preference shares of Rs.1000 each and
40,000 Equity shares of Rs.10/- each while the Paid up share capital of the company comprising of
15,718 Equity shares of Rs.10/- each.

Board Meetings

There were 7 Meetings of Board of Directors of the Company held during the financial year on
15/05/2023, 26/07/2023, 30/08/2023 ,20/09/2023, 30/09/2023, 20/12/2023,18/03/2024.

Directors

During the year there were no change to the Directors. Shareholding Pattern of directors as
below:

Sno	Name of Shareholder	No of Shares	% of shareholding
1	Vivek Bhatia	4332	27.56
2	Parag Agarwal	4332	27.56
3	Parth Pande	4330	27.55
4	Prabhakar Ram V	806	5.13

Directors Responsibility Statement

In accordance with the provisions of Section 134 (5) of the Act, with respect to Directors''
Responsibility Statement, it is hereby stated:

(i) That in the preparation of annual accounts for the financial year ended 31 March 2024, the
applicable Accounting Standards had been followed and that there were no material
departures.

(ii) That the Directors had selected such accounting policies and applied them consistently and
made judgments and estimates that were reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company at the end of the financial year and of the
profit of the Company for the year under review.

(iii) That the Directors had taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act, for safeguarding the assets
of the Company and for preventing and detecting fraud and other irregularities.

(iv) That the Directors had prepared the accounts for the financial year ended 31 March 2024
on "going concern basis".

(v) That the Directors had devised proper systems to ensure compliance with the provisions of
all applicable laws and that such systems were adequate and operating effectively.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS

AND OUTGO

(A) Conservation of Energy

(i) Steps taken or impact on conservation of energy: The Company has taken steps to conserve
energy wherever possible and is constantly improving on the same.

(ii) The steps taken by the Company for utilizing alternate sources of energy: The possibilities of
utilizing alternate sources of energy are being explored.

(iii) The capital investment on energy conservation equipment: The Company is yet to make any
capital investment on energy conservation equipment.

(B) Technology absorption

(i) The efforts made towards technology absorption: The Company is using in-house technology
and hence the question of technology absorption does not arise.

(ii) the benefits derived like product improvement, cost reduction, product development or
import substitution; NIL

(iii) The Company has not imported any technology during the financial year and hence the
details relating to the same are not provided.

(iv) The expenditure incurred on Research and Development: The Company has not incurred any
expenditure on Research and Development during the financial year.

(C) Foreign Exchange Earnings and Outgo

Foreign Exchange earned (actual inflows): NIL
Foreign Exchange outflow (actual outflows): NIL

Vigil Mechanism and Risk Management Policy

The provisions of section 177 (9) of the Companies Act 2013 , read with Rule (7) of Companies
(Meetings of Board and its Powers) Rules, 2014, relating to Vigil Mechanism are not applicable to
the Company.

The Company has developed and is implementing a risk management policy as required under
Section 134(3)(n) of the Act. The Directors are of the opinion that rapid changes in the field of
technology constitute major risk and the risk management policy of the Company is centered
around constant up gradation of technologies used along with equal emphasis on updation of
technical expertise, knowledge development and skill development of its work force. However the
Directors are of the opinion that the above elements of risk are not so as to threaten the existence
of the Company. The Board is satisfied that that there are adequate systems and procedures in place
to identify assess monitor and manage risks.

Details of Subsidiary / Joint Ventures / Associate Companies

As of 31st March, 2024 the Company has the following wholly owned subsidiary,

1. LTCV Credit Private Limited: Incorporated on 20th April, 2018. The business of the subsidiary is
as follows:

a) To carry on the business of lending and advancing money and assets of all kinds or give credit
on any terms or mode and with or without security to any individual, firm, body corporate or
any other entity

b) To enter into guarantees, contracts of indemnity and surety ship of all kinds, to receive money
on deposits or loan upon any terms, and to secure or guarantee in any manner and upon any
terms the payment of any sum of money or the performance of any obligation by any person,
firm or company

c) To borrow and raise money in any manner for the purpose of any business of the company
or of any company in which the company is interested and to secure the repayment of any
money borrowed, raised or owing by mortgage, charge, standard security, lien or other
security upon the whole or any part of the Company''s property or assets

d) To issue, subscribe for, conditionally or unconditionally or absolutely, purchase, hold,
underwrite, negotiate and deal in stock, shares, bonds or obligations of any Government,
State or Central, local authority, port trust, municipal body or any company or other
corporation and the shares, stock, debentures and debenture stock

e) To invest or deal with the surplus moneys and assets of the Company not immediately
required and to hold or otherwise deal with any investment made, in such manner, as may
from time to time, be determined

Consolidated Financial Statements

The consolidated financial statements of the Company are prepared in accordance with the
provisions of Section 129 of the Act, read with the Companies (Accounts) Rules, 2014 along with a
separate statement containing the salient features of the financial performance of subsidiaries /
associate in the prescribed form. The audited consolidated financial statements together with
Auditors'' Report form part of the Annual Report.

The consolidated profit/(loss) after tax of the Company and its subsidiaries amounted to Rs.

614.58 Lakhs for the financial year 2023-24.

Performance and financial position of each of the subsidiaries, associates and joint venture
companies included in the consolidated financial statements

Name of the Company	LTCV Credit Private Limited
Corporate Identity Number	U67200KA2018PTC112505
Registered office address	No.10,1st Floor, 6th Main , 8th B Cross, Jeevan Bheema Nagar Bangalore KA 560075
% of shareholding	99.99%

A statement AOC 1 about the subsidiary Company is annexed to this report (Annexure - I)
Contracts and arrangements with related parties
Disclosure in Form AOC 2 is attached herewith in Annexure - II
Auditors

The Company in its eighth Annual General Meeting held on December 31, 2020 reappointed M/s.
B B S K and Associates, Chartered Accountants, (FRN 0133135), Chennai, the Statutory Auditors of
the Company, to hold office for five consecutive years covering the financial years from 1^st April
2020 to 31^st March 2025, on such remuneration as may be mutually agreed upon and fixed by the
Board of Directors in this regard.

The Report by the Auditors for the year ended 31 March 2024 forms part of the Financials.

It has been observed that in the Auditors Report to the members for the financial year ended
31.03.2024 that "the Company has been generally regular in depositing undisputed statutory dues
including provident fund, employees state insurance, income-tax, sales tax, service tax, customs
duty, excise duty, value added tax, cess, goods and service tax and any other statutory dues with
the appropriate authorities except for delays in making payments in few cases in respect of
provident fund, employees state insurance, tax deducted at source ("TDS"), service tax and goods
and service tax(GST)"

The Directors wish to state that the delay in some cases in payment of statutory dues as mentioned
above is only due to the temporary cash flow mismatch faced by the Company and there are no
continuing defaults. The Board ensures timely deposit of statutory dues in future.

Unsecured Loans from Directors

The Company has taken unsecured loans from Directors during the financial year which do not
constitute deposits as per provisions of Section 73 of the companies Act 2013 read with Companies
(Acceptance of Deposits) Rules to meet the operational requirement of funds. Otherwise, your
Company has not accepted any deposit from the Public within the meaning of Chapter V of the
Companies Act 2013 for the year ended on 31 March 2024.

Particulars of Employees

The disclosure of particulars as required under section 197 (12) of the Act read with under Rule 5
(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are
not applicable to the Company.

Material changes and commitments

As stated elsewhere in the report, there have been no other material changes and commitments
affecting the financial position of the Company which have occurred between the end of the
financial year of the Company to which the financial statements relate and the date of this Report.

Details of Significant and Material orders

During the financial year there were no significant and material orders passed by the regulators or
courts or tribunals impacting the going concern status and operations of the Company in future.

Adequacy of Internal Financial control

The provisions of section 138 (1) of the Companies Act 2013, read with Rule (13) of Companies
(Accounts) Rules, 2014, relating to internal Audit are not applicable to the Company. However, the
Company has set up an effective system of internal financial control with reference to the Financial
Statements and the Board of Directors is of the opinion that it is adequate with reference to the size
and operations of the Company.

Other Laws

During the year under review, the Company has not received any complaints of sexual harassment
from any of the women employees of the Company in terms of sexual harassment of women at
workplace (Prevention, Prohibition and Redressal Act, 2013).

Acknowledgement and Appreciation:

Your Directors take this opportunity to thank the, Banks, Customers, Suppliers, Statutory Authorities
and the shareholders for their consistent support to the Company. The Directors also wish to place
on record their appreciation to the employees at all levels for their hard work, dedication and
commitment.

For and On behalf of the Board of Directors

Place: Bangalore Parag Agarwal Vivek Narsnderkumar Bhatia

Date : 10/09/2024 Whole time Director Whole time Director

(DIN 03167515) (DIN 05250711)