Notes to Accounts of Hybrid Financial Services Ltd.

Mar 31, 2025

o. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of past events and it
is probable that there will be an outflow of resources. Contingent Liabilities are
not recognized but are provided on the basis of management evaluation of the
same and reviewed on the basis of events happening, besides disclosures in the
notes. Contingent Assets are neither recognized nor disclosed in the financial
statements.

p. LEASED ASSETS

Rentals in respect of assets taken on operating lease by the company are
expensed with reference to the lease and other considerations.

q. FINANCIAL INSTRUMENTS

A financial instrument is any contract that gives rise to a financial asset of one
entity and a financial liability or equity instrument of another entity.

Financial Assets
Initial Measurement:

All financial assets are recognised initially at fair value plus, in the case of
financial assets not recorded at fair value through profit or loss, transaction
costs that are attributable to the acquisition of the financial asset. Purchases
or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades)
are recognised on the trade date, i.e., the date that the Company commits to
purchase or sell the asset.

Subsequent Measurement:

Subsequent measurement is determined with reference to the classification of
the respective financial assets and the contractual cash flow characteristic of
the financial assets, the company classifies financial assets as subsequently
measured at amortized cost, fair value through other comprehensive income
or fair value through profit and loss.

Financial Assets carried at amortised cost

A financial asset is measured at amortised cost if it is held within a business
model whose objective is to hold the asset in order to collect contractual cash
flows and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding

Financial Assets at fair value through other Comprehensive Income
(FVOCI)

A financial asset is measured at FVOCI if it is held within a business model
whose objective is achieved by both collecting contractual cash flows and selling
financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.

Financial Assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are
measured at FVTPL

Debt instruments included within the FVTOCI category are measured at fair
value with all changes recognized in profit and loss. However currently the
company does not have any financial instrument in this category.

Equity Investment

All equity investments in scope of Ind AS 109 are measured at fair value except
unquoted equity investments including investment in subsidiary which are stated
at cost. Equity instruments which are held for trading are classified as at FVTPL.
For other equity instruments, the company decides to classify the same either
as at FVTOCI or FVTPL. The company makes such election on an instrument
by instruments basis. The Classification is made on initial recognition and is
irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, all fair
value changes on the instrument, excluding dividends are recognized in other
comprehensive income.

Equity instruments included within the FVTPL category are measured at fair
value with all changes recognized in the profit or loss.

De-recognition of Financial Assets

The Company de-recognises a financial asset only when the contractual rights
to the cash flows from the asset expire, or it transfers the financial asset and
substantially all risks and rewards of ownership of the asset to another entity.

If the Company neither transfers nor retains substantially all the risks and rewards
of ownership and continues to control the transferred asset, the Company
recognizes its retained interest in the assets and an associated liability for
amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of
a transferred financial asset, the Company continues to recognise the financial
asset and also recognises a collateralised borrowing for the proceeds received.

Financial Liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities
at fair value through profit or loss, loans and borrowings and payables as
appropriate. All financial liabilities are recognised initially at fair value and, in
the case of loans and borrowings and payables, net of directly attributable
transaction costs.

• Borrowings

After initial recognition, interest-bearing loans and borrowings are
subsequently measured at fair value.

• Financial Guarantee Contracts

Financial guarantee contracts issued by the Company are those contracts
that require a payment to be made to reimburse the holder for a loss it
incurs because the specified debtor fails to make a payment when due in
accordance with the terms of a debt instrument. Financial guarantee
contracts are recognised initially as a liability at fair value, adjusted for
transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the
amount of loss allowance determined as per impairment requirements
of Ind AS 109 and the amount recognised less cumulative amortisation.

• De-recognition of Financial Liabilities

Financial Liabilities are removed from the balance sheet when the
obligation specified in the contract is discharged, cancelled or expired.
The difference between the carrying amount of a financial liability that
has been extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognised in the Statement of Profit and Loss as
other gains/(losses).

• Offsetting Financial Instruments

Financial Assets and Financial Liabilities are offset and the net amount
is reported in the Balance Sheet if there is a currently enforceable legal
right to offset the recognised amounts and there is an intention to settle
on a net basis; to realise the assets and settle the liabilities simultaneously.

FAIR VALUE MEASUREMENT

The Company measures financial assets and financial liability at fair value at
each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement
date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market
for the asset or liability

The principal or the most advantageous market must be accessible by the
Company. The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market
participant’s ability to generate economic benefits by using the asset in its
highest and best use or by selling it to another market participant that would use
the asset in its highest and best use. The Company uses valuation techniques
that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the
financial statements are categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:

- Level 1 - Quoted (unadjusted) market prices in active markets for identical
assets or liabilities

- Level 2 - Valuation Techniques for which the lowest level input that is
significant to the fair value measurement is directly or indirectly
observable

- Level 3 - Valuation Techniques for which the lowest level input that is
significant to the fair value measurement is unobservable. For assets
and liabilities that are recognised in the financial statements on
a recurring basis, the Company determines whether transfers have
occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.

The Management analyses the movements in the values of assets and liabilities
which are required to be remeasured or re-assessed as per the Company’s
accounting policies. For this analysis, the Management verifies the major inputs
applied in the latest valuation by agreeing the information in the valuation
computation and other relevant documents.

Note:

No external valuation was conducted during the Financial Year Ended 31st March, 2025. However, based on internal assessment and
management''s review of market indicators, there has been no material change in the fair value of the investment property since the last
valuation. Accordingly, the fair value disclosed as at 31st March, 2024, continues to represent a reasonable estimate of the property''s
fair value as at 31st March, 2025. Details of the Company''s investment properties and information about the fair value hierarchy as at

31 Qt Marrh arp aQ fnllnwc ¦

The Company has already provided during the earlier years out of abundant caution 50% of the Principal Liability in case of Sl. Nos. 1, 2, & 4 and
55% in case of Sl. Nos. 3 as Contingency Provision. During the year the Company has reversed Contingency Provision on Income Tax Demand
as the same is not required any more due to time limitation for filing appeal. During the year, the Company has also reversed Contingency Provision
on a Customer Case which was settled.

Presently all the above matters are under litigation with various authorities and hence based on the final outcome or management perception
appropriate accounting entries will be passed fastening the liability or its reversal.

2. Exceptional Items

The Exceptional Item of Rs.19,14 (‘000s) in the current year represents the settlement made against a Customer Demand. The Exceptional Item
of Rs.688 (‘000s) in the previous year represents the Custodial Fees paid to NSDL for the years from 2013-2024 to 2018-2029 as the Bill for this
demand raised by them during the previous year.

3. Payment to Auditors

17. Title Deeds of Immovable Property not held in name of the Company: The title in respect of self-constructed buildings and title deeds of all other
immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee),
disclosed in the financial statements included under property, plant and equipment are held in the name of the Company as at the balance sheet date

18. The disclosures relating to Revaluation of Property is not applicable since there is no revaluation done for immovable property during current year

19. The company does not grant any loans and advances in nature of loans to Promoters, Directors, KMP and the Related Parties (as defined under
Companies Act, 2013), hence disclosures related to Loans and advances is not applicable to the company.

20. The Company has not been declared a wilful defaulter (As defined by RBI circular) by any bank or financial institution or other lander during the
financial year.

21. Relationship with Struck off Companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.The company does
not have any transaction with companies struck off under section 248 of companies act 2013. or section 560 of companies act 1956.

22. 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 other than the one satisfied under a compromise agreement under section 391 of the Companies
Act, 1956 pending release by Banks and Trustees for Debenture Holders.

23. The Company has complied with the number of layers under prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction
on number of Layers) Rules, 2017.

24. Expenditure in foreign currency: No expenditure incurred in Foreign currency during the year.

25. Earnings of foreign exchange: No earning of Foreign currency during the year

26. Utilisation of Borrowed funds and share premium:

1. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with
the understanding 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

2. The Company has not 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 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,

27. Comparative financial information (i.e., the amounts and other disclosures for the previous year presented above as corresponding figures), is
included as an integral part of the current year’s Financial Statements and is to be read in relation to the amounts and other disclosures relating to
the current year. Figures of the previous year have been reworked, regrouped, rearranged and reclassified wherever necessary to correspond to
figures of the current year.

28. SCHEME OF ARRANGEMENT:

During the year 2023-2024, the Company held an Extraordinary General Meeting (EGM) on 15^th September, 2023 under the provisions of Sections 233
of the Companies Act, 2013 read with Rule 25 of Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 for the proposed
Scheme of Amalgamation of Maximus Securities Limited (Transferor Company) with Hybrid Financial Services Limited (Transferee Company). The
majority members in the EGM approves the scheme. However, The Regional Director, Ministry of Corporate Affairs, Mumbai had rejected this
proposal on account of delayed submission of documents. Then the Company had decided to approach National Company Law Tribunal (NCLT),
Mumbai for the proposed Scheme of Merger. The NCLT has passed first motion order dated 26^th November 2024 dispensing with the requirements of
Shareholders’ Meeting for merger and ordered on completion of other legal / statutory formalities to complete the merger.

29. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Financial Risk Factors

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s overall risk
management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the Company.

Market Risk

Market Risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, by providing for the same, while optimising the return.

Interest Rate Risk

The Company has financial assets which are at fixed interest rates and is therefore not exposed to the risks associated with the effects of fluctuation
in interest rates.

Foreign Exchange Risk

Foreign Currency Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign
exchange rates. As the company does not deal in forex transaction, there is no foreign exchange risk.

Credit Risk

Credit Risk represents the potential loss that the Company would incur if counter parties fail to perform pursuant to the terms of their obligations to
the Company. The Company limits its credit risk by carrying out transactions. The maximum exposure to credit risk is represented by the carrying
amount of each financial asset in the statement of financial position. The Company’s main credit risk concentration as on 31^st March 2025 is
negligible.

There is no risk in terms of Bank Balances, since the counterparty is a reputable bank with high quality external credit ratings.

Liquidity Risk

Liquidity Risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing
liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. The Company manages liquidity risk by maintaining
adequate reserves, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of the financial assets and
liabilities. The table below illustrates the aged analysis of the Company’s financial liabilities.

31. Figures have been rounded off to the nearest rupee and expressed in thousands.

Signature to Noted 1 and 2

As per our report of even date For and on behalf of the Board

For S. Ramanand Aiyar & Co

Chartered Accountants

Firm Registration No.: 000990N

N. R. DIVATE SAMEER S. PIMPALE K.CHANDRAMOULI

Whole Time Director Chairman Whole Time Director

DIN - 00304616 DIN - 08813127 and Company Secretary

DIN - 00036297

BINOD C. MAHARANA MEGHA J.VAZKAR NILAY SHARMA NITIN K. TIKE

Partner Director Director Director

M.No. 056373 DIN - 00179162 DIN - 00231299 DIN - 10621976

VINAY KULKARNI

Chief Financial Officer

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Mar 31, 2024

The company has one class of share referred to as equity shares having a par value of Rs.5/-. Each holder of equity shares is entitled to one vote per share and dividend per share as may be declared/proposed by the Board of Directors.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the 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.

The Company has already provided during the earlier years out of abundant caution 50% of the Principal Liability in case of Sl. Nos. 1, 2, & 4 and 55% in case of Sl. Nos. 3 & 5 as Contingency Provision.

Presently all the above matters are under litigation with various authorities and hence based on the final outcome or management perception appropriate accounting entries will be passed fastening the liability or its reversal.

2. Exceptional Items

Exceptional Item of Rs.688 (‘000s) represents the Custodial Fees paid to NSDL for the years from 2013-2024 to 2018-2029 as the Bill for this demand raised by them during the current year. In the previous year Exceptional Item of Rs. 4000 (‘000s) represents Reinstatement Fees paid to BSE Limited

4. Hon’ble Bombay High Court has sanctioned the Scheme of Compromise under section 391 with many of the Bankers and Trustees for Debenture Holders in the year 2005 and 2010. the Company has completed all the payments as per the Sanctioned Scheme. However the Company is yet to receive the final discharge from the Bankers and Trustees of Debenture Holders for release of assets.

5. The Company has paid under protest all the outstanding dues claimed by BSE / NSE / NSDL / CDSL under protest as these were the stumbling block in the matter of trading in the shares of the Company. The Company has successfully pursued the matter of Revocation of Suspension in Trading of its shares and after making payment of all the outstanding dues as mentioned above the trading in shares of the Company recommenced in BSE and NSE with effect from 5^th December 2022.

6. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

7. During the previous year the Company has got Udyam Registration Certificate dated 25^th May,2022 from Ministry of Micro, Small and Medium Enterprises (MSME).

11. The company has two employees on its payroll. The Company has provided Gratuity as per Gratuity Act 1972 instead of Ind AS 19 “Employee Benefit” issued by Institute of Chartered Accountant of India.

12. Undisclosed income: The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year (previous year) in the tax assessments under the Income TaxAct, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

13. Corporate Social Responsibility: The company is not liable to make payment towards Corporate Social Responsibility as per Section 135 of Companies Act 2013.

14. Details of Crypto Currency or Virtual Currency: The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

15. The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

16. Capital-Work-in Progress (CWIP): The company does not have any Capital-Work in progress hence disclosures related to Capital Work-in-Progress is not applicable.

17. Intangible Assets under development: The company does not have any Intangible Assets under development hence disclosures related to Intangible asset under development is not applicable.

18. Title Deeds of Immovable Property not held in name of the Company: The title in respect of self-constructed buildings and title deeds of all other immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), disclosed in the financial statements included under property, plant and equipment are held in the name of the Company as at the balance sheet date

19. The disclosures relating to Revaluation of Property is not applicable since there is no revaluation done for immovable property during current year

20. The company does not grant any loans and advances in nature of loans to Promoters, Directors, KMP and the Related Parties (as defined under Companies Act, 2013), hence disclosures related to Loans and advances is not applicable to the company.

21. The Company has not been declared a wilful defaulter (As defined by RBI circular) by any bank or financial institution or other lander during the financial year.

22. Relationship with Struck off Companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.The company does not have any transaction with companies struck off under section 248 of companies act 2013. or section 560 of companies act 1956.

23. 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.

24. The Company has complied with the number of layers under prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

25. Expenditure in foreign currency: No expenditure incurred in Foreign currency during the year.

26. Earnings of foreign exchange: No earning of Foreign currency during the year

27. Utilisation of Borrowed funds and share premium:

1. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding 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

2. The Company has not 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 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,

28. Comparative financial information (i.e., the amounts and other disclosures for the previous year presented above as corresponding figures), is included as an integral part of the current year’s Financial Statements and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been reworked, regrouped, rearranged and reclassified wherever necessary to correspond to figures of the current year.

29. SCHEME OF ARRANGEMENT:

During the year, the Company held an Extraordinary General Meeting (EGM) on 15th September, 2023 under the provisions of Sections 233 of the Companies Act, 2013 read with Rule 25 of Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 for the proposed Scheme of Amalgamation of Maximus Securities Limited (Transferor Company) with Hybrid Financial Services Limited (Transferee Company). The majority members in the EGM approves the scheme. However, The Regional Director, Ministry of Corporate Affairs, Mumbai had rejected this proposal on account of delayed submission of documents. Now the Company has decided to approach National Company Law Tribunal (NCLT), Mumbai for the proposed Scheme of Merger. The Company recommends the same to be approved by the members as and when a meeting for the same is proposed by NCLT.

30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Financial Risk Factors

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company.

Market Risk

Market Risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, by providing for the same, while optimising the return.

Interest Rate Risk

The Company has financial assets which are at fixed interest rates and is therefore not exposed to the risks associated with the effects of fluctuation in interest rates.

Foreign Exchange Risk

Foreign Currency Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. As the company does not deal in forex transaction, there is no foreign exchange risk.

Credit Risk

Credit Risk represents the potential loss that the Company would incur if counter parties fail to perform pursuant to the terms of their obligations to the Company. The Company limits its credit risk by carrying out transactions. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position. The Company’s main credit risk concentration as on 31^st March 2024 is negligible. There is no risk in terms of Bank Balances, since the counterparty is a reputable bank with high quality external credit ratings.

Liquidity Risk

Liquidity Risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of the financial assets and liabilities. The table below illustrates the aged analysis of the Company’s financial liabilities.

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Mar 31, 2015

1. CORPORATE INFORMATION

The Company's main business activities are Management Consulting, providing Debt Recovery Advise, Consultancy in Financial, Commercial, Legal, Direct and Indirect Taxation, Other Levies, Statistical, Accountancy and Other Fields. The Company is having Registered Office / Head Quarter in Mumbai. The Company has no branches.

2. Contingent Liabilities:

Sl. Particulars Current Year Previous Year No. (Rs.) (Rs.)

1 Interest Tax 21,07,307/- 21,07,307/-

2 Labour Court, Civil 22,37,000/- 29,16,205/- Court and Consumer Forums

3 Foreign Exchange 5,60,00,000/- 5,60,00,000/- Management Act

4 Disputed Sales Tax 3,47,979/- 3,47,979/- Demands

5 Sub-Regional Office, 21,06,154/- 21,06,154/- Employees' Provident Fund, Vash

6 Bank of India 2,50,000/- Nil

Sl. Particulars Current Status No.

1 Interest Tax Under Appeal by Income Tax Department in High Court

2 Labour Court, Civil Under Appeal before the Respective Court and Consumer Authorities Forums

3 Foreign Exchange Under Appeal before the Appellate Management Act Tribunal for Foreign Exchange, New Delhi. The Company has however provided Rs.3,00,00,000/- as Contingent Provision out of abundant precaution.

4 Disputed Sales Tax Under Appeal before the respective Demands authorities

5 Sub-Regional Office, The Company has appealed against the Employees' Provident order and obtained a stay from Employee Fund, Vash Provident Fund Appellate Tribunal.

6 Bank of India Final Liability on account of amount payable to Bank of India towards Debenture Trusteeship Fee for the period of Seven Years from the Financial Year 2008-2009 to 2014-2015.

3. Debentures

Bank of India has filed a case against the company with the Hon'ble Bombay High court for Rs. 166,34,72,817/- in the capacity of trustee for certain series of Debentures which is in appeal and the Company does not expect any liability in this matter. The Residual Assets are under charge to the trustees in terms of trust deed. Following the Consent Terms filed in the Hon'ble Bombay High Court, the suit has been disposed.

4. Scheme of Compromise and Arrangements

The Company has since made all the payments due as per the sanctioned scheme except Security Depositors who have not yet claimed and the T Series Debenture Holders who have not yet surrendered their Debenture Certificates whose payment shall be made as per the Consent Terms being finalised with Debenture Trustees.

5. Non Confirmations and Reconciliations of Banks

In respect of Current Accounts with banks amounting to Rs. 19,09,589/- (net) [Previous Year Rs.22,24,100/- (net)] which includes book debit balance of Rs. 20,86,427/- and book credit balance of Rs. 1,76,838/-, statements of account were not being received; including from 2000-2001 in some cases.

6. During the year 2004-2005 the company has accounted for the immovable properties acquired in satisfaction of claims valued at Rs.59,76,429/-. Though the company is in possession of the property, completion of documentation is pending.

7. Most of the company's debtors are fully provided / written off and have been suit filed or not traceable. In the past the Company had circulated confirmation letters to debtors/advances. As most of these companies' latest addresses are not available, the Company has not sent any confirmation letters this year. The Company has not circularised confirmations for Sundry Creditor Balances.

8. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act have not been given.

9. The Company is in possession of 3,00,000 shares of Sunanda Capital Services Limited. Pending for transfer of these shares in the name of the Company, the same is not taken as investments in the books.

10. As required by Accounting Standard - 18 issued by The Institute of Chartered Accountants of India, Related Party Disclosures are as follows:

A. Subsidiary Company

Maximus Securities Limited (Formerly known as Mafatlal Securities Limited)

B. Associate Companies

Garron Shares and Stock Brokers Private Limited Garron Trading Company Private Limited Hybrid Systems Limited Hybrid Services and Trading Limited (Formerly known as Sunanda Service and Trading Limited) Sunanda Capital Services Limited Sushmita Engineering and Trading Limited

C. Key Management Personnel

Mr. N. R. Divate and Mr. K.Chandramouli

11. The Company has complied with AS-22 "Accounting for taxes on Income", issued by the Institute of Chartered Accountants of India; accordingly, the opening deferred tax asset and as well as for the year has not been accounted on the grounds of prudence.

12. The company has taken Office premises on Operating Lease and Lease Rent amounting to Rs. 1,83,000/- (Previous Year Rs. 1,53,000/-) was paid during the year has been debited to Statement of Profit and Loss. The future minimum lease payment is as under:

13. Exceptional Item represents an amount of Rs.1,40,038/- paid towards Satisfaction of an Award to Ex-Employee by Labour Court.

14. Comparative financial information (i.e. the amounts and other disclosures for the previous year presented above as corresponding figures), is included as an integral part of the current year's Financial Statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been reworked, regrouped, rearranged and reclassified wherever necessary to correspond to figures of the current year.

15. Figures have been rounded off to the nearest rupee and expressed in thousands.

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Mar 31, 2014

I) CORPORATE INFORMATION

The Company''s main business activities are Management Consulting, providing Debt Recovery Advise, Consultancy in Financial, Commercial, Legal, Direct and Indirect Taxation, Other levies, Statistical, Accountancy and Other Fields. The Company is having Registered Office / Head Quarter in Mumbai. The Company has no branches.

1 Contingent Liabilities:

SI. No. Particulars Current Year (Rs.) Previous Year (Rs.) Current Status

1 Disputed income Tax Demands 5,90,12,621/- 5,90,12,621/- Under Appeal before Tribunal

2 Interest Tax 21,07,307/- 21,07,307/- Under Appeal by Income Tax Department in High Court

3 Labour Court, Civil Court, and Consumer Forums 29,16,205/- 29,16,205/- Under Appeal before the Respective Authorities

4 Foreign Exchange Management Act 5,60,00,000/- 5,60,00,000/- Under Appeal before the Appellate Tribunal forForeign Exchange, New Delhi. The Company has however provided Rs.3,00,00,000/- as Contingent Provision out of abundant precaution

5 Disputed Sales Tax Demands 3,47,979/- 3,47,979/- Under Appeal before the respective authorities

6 Penalty for Non Compliance of 8,00,000/- Nil Under appeal before Securities Appellate Tribunal, Mumbai. SAST Regulations

7 Sub-Regional Office, 21,06,154/- Nil The Company has appealed against the order and obtained a Employees'' Provident Fund, stay from Employee Provident Fund Appellate Tribunal Vashi

8 Guarantee given 35,00,000/- 35,00,000/- Guarantee given to Metropolitan Magistrate Court against appeal by "Charuhasa Finance and Investments Private Limited"

2. Payment to Auditors (inclusive of service tax where applicable)

Current Year Previous Year Rs. in 000s Rs. in 000s

Statutory Audit Fee 75 75

Tax Audit Fees 25 25

Limited Review and Other Certification Work 45 49

Out of Pocket Expenses 3 6

Service Tax 6 18

Total 154 173

3. Debentures

Bank of India has filed a case against the company with the Hon''ble Bombay High court for Rs. 166,34,72,817/- in the capacity of trustee for certain series of Debentures which is in appeal and the Company does not expect any liability in this matter. The Residual Assets are under charge to the trustees in terms of trust deed.

4. Scheme of Compromise and Arrangements

The Company has since made all the payments due as per the sanctioned scheme except the T Series Debenture Holders who have not yet surrendered their Debenture Certificates and Security Depositors who have not yet claimed.

5. Non Confirmations and Reconciliations of Banks

In respect of Current Accounts with banks amounting to Rs. 22,24,100/- (net) [Previous Year Rs.22,24,100/- (net)] which includes book debit balance of Rs. 24,00,938/- and book credit balance of Rs. 1,76,838/-, statements of account were not being received; including from 2000-2001 in some cases.

6. During the year 2004-2005 the company has accounted for the immovable properties acquired in satisfaction of claims valued at Rs.59,76,429/-. Though the company is in possession of the property, completion of documentation is pending.

7. Most of the company''s debtors are fully provided / written off and have been suit filed or not traceable. In the past the Company had circulated confirmation letters to debtors/advances. As most of these companies'' latest addresses are not available, the Company has not sent any confirmation letters this year. The Company has not circularised confirmations for Sundry Creditor Balances.

8. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

9. The Company is in possession of 3,00,000 shares of Sunanda Capital Services Limited. Pending for transfer of these shares in the name of the Company, the same is not taken as investments in the books.

10. As required by Accounting Standard -18 issued by The Institute of Chartered Accountants of India, Related Party Disclosures are as follows:

A. Subsidiary Company Maximus Securities Limited

(Formerly known as Mafatlal Securities Limited

B. Associate Companies

Garron Shares and Stock Brokers Private Limited

Garron Trading Company Private Limited

Hybrid Systems Limited

Hybrid Services and Trading Limited

(Formerly known as Sunanda Service and Trading Limited)

Sunanda Capital Services Limited

Sushmita Engineering and Trading Limited

C. Key Management Personnel Mr. N. R. Divate and

Mr. K.Chandramouli

11. Comparative financial information (i.e the amounts and other disclosures for the previous year presented above as corresponding figures), is included as an integral part of the current year''s Financial Statements, and is to be read in relation to the amounts and other disclosures relating to the current year, figures of the previous year have been reworked, regrouped, rearranged and reclassified wherever necessary to correspond to figures of the current year.

12. Figures have been rounded off to the nearest rupee and expressed in thousands.

---

Mar 31, 2013

1) CORPORATE INFORMATION

The Company''s main business activities are Management Consulting; providing Debt Recovery Advise, Consultancy in Financial, Commercial, Legal, Direct and Indirect Taxation, Other Levies, Statistical, Accountancy and Other Fields. The Company is having Registered Office / Head Quarter in Mumbai. The Company has no branches.

2. Debentures

Bank of India has filed a case against the company with the Hon''bie Bombay High court for Rs. 166,34,72,817/- in the capacity of trustee for certain series of Debentures which is in appeal and the Company does not expect any liability in this matter. The Reskiual Assets are under charge to the trustees in terms of trust deed.

3. Scheme of Compromise and Arrangements

The Company has since made ail the payments due as per the sanctioned scheme- except the T Series Debenture Holders who have not yet surrendered their Debenture Certificates and Security Depositors who have not yet claimed.

4. Equity Share Capital

During the previous year the Company had given accounting effect to the Capital Reduction as confirmed by The Hon''bie Bombay High Court vide their order dated 8''" April 2011 and as registered by The Registrar of Companies, Maharashtra, Mumbai on 14''" June 2011. » During the year the Company has made Preferential Allotment to Promoters of 14,00,000 Equity Shares of Rs.S/- each by conversion of 7,00,000 Preference Shares of Rs.10/- each as approved in the 25* Annual General Meeting held on 13* July 2012 After giving accounting effect to She above, the Revised Paid up Capital of the Company is 2,94,36,275 Equity Shares of Rs.5/- each aggregating to Rs.14,71,81,375/- and 33,58,2000 Redeemable Preference Shares of Rs.10/- each aggregating to Rs.3,35,82,000/-. fi. Non Confirmations and Reconciliations of Banks

In respect of Current Accounts with banks amounting to Rs. 22,24,100/- (net) [previous year Rs. 32,53,369/- (net)] which includes book debit balance of Rs. 24,00,938/- and book credit balance of Rs. 1,76,838/-, statements of account were not being received; including from 2000-2001 in some cases.

5. Investor Education and Protection Fund (IEPF)

During the year the Company had transferred to the Investor Education and Protection Fund (IEPF) as per the requirements of Section 205C of The Companies Act, 1956 Rs. 7,35,940/- towards Unclaimed Public Deposits with Interest and Rs.6,02,411/- towards Unclaimed Debentures.

During the year 2004-2005 the company has accounted for the immovable properties acquired in satisfaction of claims valued at Rs.59,76,429/-. Though the company is in possession of the property, completion of documentation is pending.

6. Mast of the company''s debtors are fully provided / written off and 1 have been suit filed or not traceable. In the past the Company had I circulated c6nfirmation letters to debtors/advances. As most ot s these companies'' latest addresses are not available, the Company has not sent any confirmation letters this year. The Company has not i circular ised confirmations for 5undry Creditor Balances.

7. The Company has not received any intimation from supp!;ers regarding their status under the Micro, Sm3ll and Medium j Enterprises Development Act, 2006 and hence disclosures, if any. j relating to amounts unpaid as at the year end together with interest j paid/payable as required under the said Act have not been given.

8. The Company is in possession of 3,00,000 shares of Sunanda Capital Services Limited. Pending for transfer of these shares in the name of the Company, the same is not taken as Investments in the books.

9. As required by Accounting Standard -18 issued by The institute of Chartered Accountants of India, Related Party Disclosures jre £S follows:

A. Subsidiary Company

Maximus Securities Limited

(Formerly known as Mafatlai Securities Limited) S. Associate Companies

Garron Shares and Stock Brokers Private Limited

Garron Trading Company Private Limited

Hybrid Systems Limited .

Mafatlai Trustee Company Limited

Sunanda Capital Services Limited

Hybrid Services and Trading Limited

(Formerly known as Sunanda Service and Trading Limited)

Sushmita Engineering & Trading Limited C. Key Management Personnel j

Mr. N R Divate and Mr. K.Chandramouli

10. Comparative financial information (i.e. the amounts and other disclosures for the previous year presented above as corresponding figures), is included as an integral part of the current year''s Financial Statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been reworked, regrouped, rearranged and reclassified wherever necessary to correspond to figures of the current year.

11. Figures have been rounded off to the nearest rupee and expressed in thousands.

---

Mar 31, 2011

1. Contingent Liabilities:

Sl.No. Particulars Current Year (Rs.) Previous Year (Rs.) Current Status

1 Disputed Income 8,14,51,511/- 8,14,51,511/- Under Appeal before Tribunal

Tax Demands_ 2 Interest Tax 21,07,307/- 21,07,307/- Under Appeal Income Tax Department High Court

3 Labour Court and 29,16,205/- 29,16,205/- Under Appeal before the Respective Authorities

Civil court

4 Foreign Exchange 6,07,40,000/- 6,07,40,000/- Under Appeal before the Appellate Company has however provided Rs.3,00,00,000/- as Contingent abundant precaution

5 Disputed Sales 5,92,105/- 5,92,105/- Under Appeal before the respective authorities

4 DEBENTURES

Bank of India has filed a case against the company with Mumbai High court for Rs. 166,34,72,81^- in the capacity of trustee for all series of Debentures and is in appeal.

5. SCHEME OF COMPROMISE AND ARRANGEMENTS

The Company has since made all the payments due as per the sanctioned scheme except the T Series Debenture Holders who have not yet surrendered their Debenture Certificates and Security Depositors who have not yet claimed.

6. EQUITY SHARE CAPITAL

The Honble Bombay High Court vide their order dated 8th April 2011 has confirmed the reduction of Capital of the Company by cancellation of 1,18,45,425 Equity Shares and the reduction of the paid up and face value per Equity Share from Rs.10 to Rs.5. The Revised Authorised Capita! of the Company will be 7,00,00,000 Equity Shares of Rs. 5/- each and Paid up Capital of the Company would be 2,80,36,275 shares of Rs.5 each aggregating to Rs. 14,01,81,375/- The Share Premium Account would be Nil. This process would be completed after the receipt of Registration of the Court Order from The Registrar of Companies, Mumbai

7. NON CONFIRMATIONS AND RECONCILIATIONS OF BANKS

In respect of Current Accounts with banks amounting to Rs.77,01,461/- (net) [previous year Rs.77,01,461/- (net)] which includes book debit balance of Rs. 78,78,299/- and book credit balance ofRs. 1,76,838/-, statements ofaccount were not being received; includingfrom 2000-2001 in some cases.

8. During the year 2004-2005 the company has accounted for the immovable properties acquired in satisfaction of claims valued at Rs.59,76,429/-. Though the company is in possession of the property, completion of documentation is pending.

9. Most of the companys debtors are fully provided / written off and have been suit filed or not traceable. In the past the Company had circulated confirmation letters to debtors/advances. As most of these

companies latest addresses are not available, the Company has not sent any confirmation letters this year. The Company has not circularised confirmations for Sundry Creditor balances.

10. The Company has not received any intimation from suppliers regarding their status underthe Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act have not been given.

11. The Company is in possession of 3,00,000shares of Sunanda Capital Services Limited. Pending for transfer of these shares in the name of the Company, the same is not taken as investments in the books.

12. As required by Accounting Standard -18 issued by The Institute of Chartered Accountants of India, Related Party Disclosures are as follows:

A. Subsidiary Company

Maximus Securities Limited

(Formerly known as Mafatlal Securities Limited)

B. Associate Companies

Garron Shares and Stock Brokers Private Limited Garron Trading Company Private Limited Hybrid Systems Limited (formerly known as Mafatlal Systems Limited) Mafatlal Trustee Company Limited Sunanda Capital Services Limited Sunanda Service and Trading Limited Sushmita Engineering & Trading Limited

C. Key Management Personnels Mr. N R Divate

Mr. K.Chandramouli

13. The Company has compiled with AS-22 "Accounting for taxes on Income", Issued by the Institute of Chartered Accountants of India; accordingly, the opening deferred tax asset and as well as for the year has not been accounted on the grounds of prudence.

14. The company has taken Office premises on Operating Lease and Lease Rent amounting to Rs». 7,92,540/- (Previous Year Rs. 6,94,080/-) was paid during the year has been debited to Profit and Loss account. The future minimum lease payment is as under:

15. Comparative financial information (i.e. the amounts and other disclosures for the previous year presented above as corresponding figures), is included as an integral part of the current years Financial Statements, and is to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been regrouped / reclassified wherever necessary to correspond to figures of the current year.

16. Figures have been rounded off to the nearest rupeeand expressed in thousands.

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Mar 31, 2010

1. Contingent Liability in respect of :

a) Arrears of Dividend on 1% Redeemable Cumulative Preference Shares issued during the year is Rs. 4,49,070/- (Previous Year Nil)

b) The Commissioner (Appeals) vide his order dated 15th June 2009 confirmed the Income Tax demand of Rs. 8,14,51,511/- as per the exparte assessment order treating the lease transaction as finance transactions for the Assessment Years 1993-1994 to 1998-1999. The Company has filed an appeal before the Income Tax Appellate Tribunal against this order.

c) Interest Tax on interest earned on Debentures, Bonds and Government Securities is not exigible to interest tax as per the order of ITAT -83 /M/01 dated 30th September 2004 for the assessment year 1998-99. The department filed an appeal against this order in the Honourable Bombay High Court and accordingly the liability arising out of the said appeal inclusive of interest would be Rs. 21,07,307/- if won by the department.

d) Suit filed by employee in Labour Court at New Delhi -Amount Rs.3,15,205/- (Previous Year Rs. 3,15,205/-)

e) Five cases filed against the company in various civil courts for the recovery for an aggregate sum of Rs.2,56,000/- [Previous Year Rs. 2,56,000/-] towards refund of security deposit, non-repayment of debentures etc.

f) The shares of the company have been suspended for trading on the NSE since September 2001 and on BSE since December 2002 on account of non-redressal of investor grievances relating to non-payment to the debenture holders. SEBI is empowered to impose a penalty of Rs. 1 lac for each day or Rs 100 lac, whichever is less on companies who fail to redress investor grievances after having being called upon to do so.

g ) Criminal case has been filed by debenture holders in the court of the first class Judicial Magistrate at Patna and Ranchi against the Company and its erstwhile directors under section 409, 420 and 120B of the Indian penal code for non- repayment of the debentures. The complainants are since paid the amount due as per the resolutions passed in the Debenture holders meeting. The total face value of debentures covered under the above cases is Rs. 1,16,000/- (Previous Year Rs.1,16,000/-).

h) There is a penalty of Rs. 6,07,40,000/- (Previous Year Rs.6,07,40,000/-) levied by Directorate of Enforcement under Foreign Exchange Management Act (FEMA), Mumbai in the year 2003-2004, for non-submission of Bill of Entry in case of imported machineries, which were leased to customers. The Company has filed an appeal against this order before the Appellate Tribunal for Foreign Exchange, New Delhi. Based on the orders of the Appellate Tribunal, the case has been remanded back to the Enforcement Directorate. The Company has however provided Rs. 3,00,00,000/- as Contingent Provision out of abundant precaution.

i) Thirty-Six cases have been filed against the Company in various Consumer Forums and the total demand is aggregating to Rs.23,45,000/- (Previous Year Rs. 23,45,000/-) approximately.

j) Disputed Sales Tax demand aggregating to Rs. 5,92,105/- (Previous Year Rs.5,39,392/-).

4 DEBENTURES

Bank of India had filed a case against the company with Mumbai High court for Rs. 166,34,72,817/- in capacity of trustee for all series of Debentures. Order was passed on 13th April 2003 and company was directed not to deal further in investments in National Savings Certificates and to deposit the accruals there on, dividend and other accruals on equity shareholding as detailed in Schedule 6 of the Balance Sheet as at 31st March 2001.

The Company has passed appropriate resolution as per the order of the Honble Bombay High Court in the above suit and revised the terms of Debentures.

The Company has filed a notice of motion in the Honble Bombay High Court for discharge of the suit but the same is kept in abeyance till discharge by payment of all the debenture holders.

5. SCHEME OF COMPROMISE AND ARRANGEMENTS

The Company on 22nd May, 2006 had filed a Petition under Sections 391 and 394 of The Companies Act, 1956 for Compromise, in the Honble Bombay High Court with the residual banks, debenture holders and unsecured lenders. As per the directions of the Hon ‘ble Bombay High Court the Meetings of the Secured and Unsecured Creditors had been convened on 31 August 2006. The secured and unsecured creditors have passed the resolution for the scheme of settlement / compromise with requisite majority. Thereafter the scheme has been sanctioned by the Honble Bombay High Court vide its order dated 13th July, 2007, and is effective from 22nd August, 2007.

The Company has since made all the payments due as per the sanctioned scheme except the T Series Debenture Holders who have not yet surrendered their Debenture Certificates and Security Depositors who have not yet claimed.

6. SHARES ALLOTTED TO ICICI BANKING CORPORATION LIMITED

The Board of Directors of the Company have cancelled the allotment of 25,00,000 Shares allotted to ICICI Banking Corporation Limited in view of the settlement reached. The Company would be completing the process of reduction of capital along with the approval for reduction of capital by court under sections 100-104 of the Companies Act, 1956.

7. NON CONFIRMATIONS AND RECONCILIATIONS OF BANKS

In respect of Current Accounts with banks amounting to Rs.77,01,461/- (net) [previous year Rs.80,24,818/- (net)] which includes book debit balance of Rs. 78,78,299/- and book credit balance of Rs. 1,76,838/-, statements of account were not being received; including from 2000-2001 in some cases. During the previous year and current year the company followed up in sending requisition letters for confirmation/closure of most of these inoperative accounts and awaiting for reply in most of the cases. Barring a few cases including where request for confirmation/ statement of account could not be sent as addresses were not available.

8. During the year 2004-2005 the company has accounted for the immovable properties acquired in satisfaction of claims valued at Rs.59,76,429/-. Though the company is in possession of the vacant property, completion of documentation is pending. During the current year the company has accounted for the investments acquired in satisfaction of claims valued at Rs.56,40,000/-.

9. Most of the companys debtors are fully provided / written off and B. Associate Companies have been suit filed or not traceable. In the past the Company had Garron Shares and Stock Brokers Private Limited circulated confirmation letters to debtors/advances. As most of these companies latest addresses are not available, the Company has not Garron Trading Company Private Limited sent any confirmation letters this year. The Company has not Hybrid Systems Limited circularised confirmations for Sundry Creditor balances. (formerly known as Mafatlal Systems Limited)

10. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Mafatlal Trustee Company Limited Development Act, 2006 and hence disclosures, if any, relating to Sunanda Capital Services Limited amounts unpaid as at the year end together with interest paid/ payable as required under the said Act have not been given. Sunanda Service and Trading Limited

11. The Company is in possession of 3,00,000 shares of Sunanda Capital Sushmita Engineering & Trading Limited Services Limited. Pending for transfer of these shares in the name C. Key Management Personnels of the Company, the same is not taken as investments in the books.

12. As required by Accounting Standard - 18 issued by The Institute of Mr. N R Divate

Chartered Accountants of India, Related Party Disclosures are as Mr. K.Chandramouli follows:

A. Subsidiary Company

Maximus Securities Limited

(Formerly known as Mafatlal Securities Limited)

13. The Company has complied with AS-22 "Accounting for taxes on Income", issued by the Institute of Chartered Accountants of India; accordingly, the opening deferred tax asset and as well as for the year has not been accounted on the grounds of prudence.

14. The company has taken Office premises on Operating Lease and Lease Rent amounting to Rs. 6,94,080/- (Previous Year Rs. 3,37,396/-) was paid during the year has been debited to Profit and Loss account. The future minimum lease payment is as under:

Investments by the loanee in the equity shares of parent company and Subsidiary Company – Nil

17. Comparative financial information (i.e. the amounts and other disclosures for the previous year presented above as corresponding figures), is included as an integral part of the current year s Financial Statements, and is to be read in relation to the amounts and other disclosures relating to the current year. F igures of the previous year have been regrouped / reclassified wherever necessary to correspond to figures of the current year.

18. Figures have been rounded off to the nearest rupee and expressed in thousands.