Sahara Housingfina Corporation Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

Note 1 Corporate information

Sahara Housingfina Corporation Limited (''the Company'') is a Public Limited Company incorporated under the provisions of Companies Act, 1956 subsequntly followed by Companies Act 2013 with its registered office in Kolkata to carry on the business of Housing Finance in India. The Company is registered with the National Housing Bank (“NHB”). Its shares are listed on Bombay Stock Exchange (BSE).

Note 2 Basis of Preparation and Presentation and Significant Accounting Policies Basis of Preparation

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (“the Act”) read with the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act and presentation requirements of Division III to Schedule III to the Act and guidelines/Directions issued by the Reserve Bank of India (“RBI”) and National Housing Bank (“NHB”) to the extent applicable.

Company''s financial statements are presented in Indian Rupees (INR), which is also Company''s functional currency.

The Financial Statements were authorized for issue in accordance with a resolution of the Board of Directors in its meeting held on May 28, 2025.

Accounting policies have been consistently applied except where a newly issued Ind AS is initially adopted or a revision to an existing Ind AS requires a change in the accounting policy hitherto in use.

Basis of Accounting

The Financial Statements have been prepared on a historical cost basis, except for the following:

• Certain Financial Assets and Liabilities are measured at fair value (refer accounting policy regarding financial instruments).

• Assets held for sale are measured at the lower of carrying value and fair value less costs to sell.

• Defined benefit plans where plan assets are measured at fair value.

Significant Accounting Judgements, Estimates and Assumptions

The preparation of the Financial Statements in conformity with Ind AS and in compliance of guidelines requires the Management to make judgements, estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expense during the reported period.

The estimates and judgements used are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including exceptions of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/materialized. The management believes that the estimates used in the preparation of Financial Statements are prudent and reasonable.

1. Property, plant and equipment

All Property, Plant and Equipment are stated at cost of acquisition, less accumulated depreciation and accumulated impairment losses, if any. Direct costs are capitalized until the assets are ready for use and includes freight, duties, taxes and expenses incidental to acquisition and installation.

The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to statement of profit and loss during the reporting period in which they are incurred. Subsequent expenditures related to an item of Property, Plant and Equipment are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Losses arising from the retirement of, and gains or losses arising from disposal of Property, Plant and Equipment are recognised in the Statement of Profit and Loss.

Depreciation is provided on a pro-rata basis on the straight line method (''SLM'') over the estimated useful lives of the assets specified in Schedule II of the Companies Act, 2013.

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

2. Intangible Assets

Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment losses, if any.

Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the disposal proceeds and the carrying amount of the asset and are recognised as income or expense in the Statement of Profit and Loss.

Intangible Assets are amortized on a straight line basis over their finite useful lives over the following period: Computer Software - 3 years

3. Impairment of Assets other than Financial Assets

The Company assesses at each Balance Sheet date whether there is any indication that carrying amount of Assets (Property, Plant and Equipment, Intangible Assets etc) may be impaired. For the purposes of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets, is considered as a cash generating unit. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the Balance Sheet date there is an indication that previously assessed impairment loss no longer exists or may have decreased, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

4. Lease

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.

The Company''s lease assets primarily consist of leases for buildings.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right-of-use-assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows

5. Financial Instruments

Recognition and Initial Measurement

All financial assets and liabilities, with the exception of loans and borrowings are initially recognised on the trade date, i.e., the date that the Company becomes a party to the contractual provisions of the instrument.

Loans are recognised when fund transfer is initiated or disbursement cheque is issued to the customer. The Company recognizes borrowings (other than debt securities) when funds are received by the Company.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs and revenues that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities measured at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs and revenues directly attributable to the acquisition of financial assets or financial liabilities measured at FVTPL are recognized immediately in the statement of profit and loss.

Classification and Subsequent Measurement of Financial Assets Financial Assets

The Company classifies and measures all its financial assets based on the business model for managing the assets and the asset''s contractual terms, either at:

- Amortised cost

- Fair Value through other comprehensive income

- Fair Value through Profit and Loss Amortised Cost

The Company classifies and measures certain debt instruments at FVOCI when the assets are held within a business model, the objective of which is achieved by both, collecting contractual cash flows and selling the financial instruments 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.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognised in the Other Comprehensive Income (OCI). However, the Company recognises interest income and impairment losses in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from Equity to Statement of Profit and Loss. Interest earned while holding FVTOCI debt instrument is reported as interest income using the EIR method.

Fair Value through Profit and Loss (“FVTPL”)

Financial assets at FVTPL are:

- assets with contractual cash flows that are not SPPI; and/or

- assets that are held in a business model other than held to collect contractual cash flows or held to collect and sell; or

- assets designated at FVTPL using the fair value option.

These assets are measured at fair value, with any gains/losses arising on remeasurement is recognized in the statement of profit and loss.

Subsequent Measurement and Gain and Losses Financial Assets at Amortised Cost

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income and impairment loss are recognised in statement of profit and loss. Any gain or loss on derecognition Is recognized in statement of profit and loss.

Debt Instrument at FVOCI

These assets are subsequently measured at fair value. Interest income and impairment loss are recognized in statement of profit and loss. Any gain or loss on subsequent measurement is recognised in OCI and on derecognition the cumulative gain or loss recognized in OCI will be recycled to statement of profit and loss.

Financial Assets at FVTPL

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognised in statement of profit and loss. The net gain or loss recognised in Statement of profit and loss incorporates any dividend or interest earned on the financial asset. Dividend on financial assets at FVTPL is recognised when the Company''s right to receive the dividends is established, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.

Changes in the fair value of financial assets at FVTPL are recognised in the statement of profit and loss.

Reclassifications

If the business model under which the Company holds financial assets changes, the financial assets affected are reclassified. The classification and measurement requirements related to the new category apply prospectively from the first day of the first reporting period following the change in business model that result in reclassifying the Company''s financial assets

Impairment and Write-off

The Company recognizes loss allowances for Expected Credit Losses on Loans to customers, other financial assets and loan commitments that are not measured at FVTPL.

Equity instruments are measured at fair value and are not subject to an impairment loss. ECL is required to be measured through a loss allowance at an amount equal to:

• 12-month ECL, i.e., loss allowance on default events on the financial instrument that are possible within 12 months after the reporting date, (referred to as Stage1); or

• Lifetime ECL, i.e. lifetime ECL that results from all possible default events over the life of the financial instrument, (referred to as Stage 2 and Stage 3).

A loss allowance for lifetime ECL is required for a financial instrument if the credit risk on that financial instrument has increased significantly since initial recognition. For all other financial instruments, ECL is measured at an amount equal to the 12-month ECL.

The Company has established a policy to perform an assessment at the end of each reporting period whether a financial instrument''s credit risk has increased significantly since initial recognition by considering the change in the risk of default occurring over the remaining life of the financial instruments.

Based on the above process, the Company categorises its loans into Stage 1, Stage 2 and Stage 3 as described below:

Stage 1: When loans are first recognised, the Company recognizes an allowance based on 12months ECL. Stage 1 loans also include facilities where the credit risk has improved and the loan has been reclassified from Stage 2 to Stage 1.

Stage 2: When a loan has shown a significant increase in credit risk since origination, the Company records an allowance for the life time expected credit losses. Stage 2 loans also include facilities, where the credit risk has improved and the loan has been reclassified from Stage 3 to Stage 2.

Stage 3: When loans are considered credit-impaired, the Company records an allowance for the life time expected credit losses.

For financial assets for which the Company has no reasonable expectations of recovering either the entire outstanding amount, or a proportion thereof, the gross carrying amount of the financial asset is reduced. This is considered a (partial) derecognition of the financial asset.

Determination of Expected Credit Loss (“ECL”)

The measurement of impairment losses (ECL) across all categories of financial assets requires judgement.

In particular, the estimation of the amount and timing of future cash flows based on Company''s historical experience and collateral values when determining impairment losses along with the assessment of a significant increase in credit risk. These estimates are driven by a number of factors, changes in which can result in different levels of allowances.

Elements of the ECL models that are considered accounting judgments and estimates include:

• Bifurcation of the financial assets into different portfolios when ECL is assessed on a collective basis.

• Company''s criteria for assessing if there has been a significant increase in credit risk.

• Development of ECL models, including choice of inputs/assumptions used.

The various inputs used and the process followed by the Company in measurement of ECL has been detailed below: Measurement of Expected Credit Losses

The Company calculates ECL based on probability-weighted scenarios to measure expected cash shortfalls, discounted at an approximation to the portfolio. A cash shortfall is a difference between the cash flows that are due to the Company in accordance with the contract and the cash flows that the Company expects to receive.

The Company measures ECL on an individual basis, or on a collective basis for portfolios of loans that share similar economic risk characteristics. The measurement of the loss allowance is based on the present value of the asset''s expected cash flows using the asset''s original EIR, regardless of whether it is measured on an individual basis or a collective basis.

The mechanics of the ECL calculations are outlined below and the key elements are, as follows:

Exposure at Default is an total amount outstanding including accrued interest as of reporting date, taking into account expected changes in the exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise, expected draw downs on committed facilities after considering the credit conversion factor (for Stage 1 and Stage 2 assets), and accrued interest from missed payments.

Probability of Default represents the likelihood of a borrower defaulting on its financial obligation (as per "Definition of default and credit-impaired'''') either over the next 12 months, or over the remaining lifetime of the obligation.

Loss Given Default represents the Company''s expectation of the extent of loss on a defaulted exposure which varies by type of borrowers, type and preference of claim and availability of collateral or other credit support.

Forward-looking economic information (including management overlay) is included in determining the 12-month and lifetime Default elements. The assumptions underlying the expected credit loss are monitored and reviewed on an ongoing basis.

After Evaluation of the Housing and Non-Housing Loan of the company & the Board''s approvals w.e.f March 31,2024, Considering the Nature, Size and its trend of default, the Companiy''s Management has decided to make provision of Expected Credit Loss by using fixed rate basis.

The following are the rates are decided by the Management for Provision under Expected Credit Loss
Loan Category	% of Provision	% Expected
	As per RBI/NHB	Credit Loss
Standard - Individual Housing	0.25%	0.50%
Standard - Corporate Housing	0.75%	0.94%
Standard - Others	1.00%	1.25%
Sub-standard	15.00%	22.50%
Doubtful - I	25.00%	37.50%
Doubtful - II	40.00%	60.00%
Doubtful - III	100.00%	100.00%
Loss Assets	100.00%	100.00%

Significant Increase in Credit Risk

The Company monitors all financial assets, including loan commitments and financial guarantee contracts issued that are subject to impairment requirements, to assess whether there has been a significant increase in credit risk since initial recognition. If there has been a significant increase in credit risk the Company measures the loss allowance based on lifetime rather than 12-month ECL. The Company monitors all financial assets and issued loan commitments that are subject to impairment for a significant increase in credit risk.

In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Company compares the risk of a default occurring on the financial instrument at the reporting date based on the remaining maturity of the instrument with the risk of a default occurring that was anticipated for the remaining maturity at the current reporting date when the financial instrument was first recognised. In making this assessment, the Company considers both quantitative and qualitative information that is reasonable and supportable, including historical experience that is available without undue cost or effort.

The Company considers the quantitative factors that indicate a significant increase in credit risk on a timely basis. However, the Company still considers separately some qualitative factors to assess if credit risk has increased significantly. For Project/Builder loan, there is a particular focus on assets that are included on a watch list. Given an exposure is on a watch list once, there is a concern that the creditworthiness of the specific counterparty has deteriorated. ECL assessment for watch list accounts is done on a case by case approach after considering the probability of weighted average in a different recovery scenario. For individual loans the Company considers the expectation of forbearance, payment holidays, and events such as unemployment, bankruptcy, divorce, or death.

Credit-Impaired Financial Assets

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Credit-impaired financial assets are referred to as Stage 3 assets. Evidence of credit-impairment includes observable data about the following events:

• significant financial difficulty of the borrower or issuer;

• a breach of contract such as a default or past due event;

• restructuring of loans due to financial difficulty of the borrowers;

It may not be possible to identify a single discrete event. Instead the combined effect of several events may have caused financial assets to become credit-impaired. The Company assesses whether debt instruments that are financial assets measured at amortised cost or FVOCI are credit-impaired at each reporting date. To assess if debt instruments are credit impaired, the Company considers factors such as financial status, credit ratings and the ability of the borrower to raise funds. A loan is considered credit-impaired when a concession is granted to the borrower due to deterioration in the borrower''s financial condition. The definition of default includes unlikeliness to pay indicators and a back-stop if amounts are overdue for more than 90 days.

Definition of Default

The definition of default is used in measuring the amount of ECL and in the determination of whether the loss allowance is based on 12-month or lifetime ECL. The Company considers the following as constituting an event of default:

• The borrower is past due more than 90 days Accounts Identified by the Company as NPA as per regulatory guidelines Objective Evidence for impairment (Qualitative Overlay); or

• The borrower is unlikely to pay its credit obligations to the Company.

When it is assessed that the borrower is unlikely to pay their credit obligation, the Company takes into account both qualitative and quantitative indicators. The information assessed depends on the type of the asset, for example in corporate lending a qualitative indicator used is the breach of covenants, which is not as relevant for individual lending. Quantitative indicators, such as overdue status and non-payment on another obligation of the same counterparty are key inputs in this analysis.

Write-off

Loans are written off when the Company has no reasonable expectations of recovering the financial asset (either in its entirety or a portion of it). This is the case when the Company determines that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. A write- off constitutes a derecognition event. The Company may apply enforcement activities to financial assets written off/ may assign / sell loan exposure to Bank / financial institution for a negotiated consideration. Recoveries resulting from the Company''s enforcement activities could result in impairment gains.

Derecognition of Financial Assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of financial assets in entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable is recognised in the statement of profit and loss.

Financial Liabilities and Equity Instruments

Classification as debt or equity

Debt and equity instruments that are issued are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement.

A financial liability is a contractual obligation to deliver cash or another financial asset or to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the Company or a contract that will or may be settled in the Company''s own equity instruments and is a non-derivative contract for which the Company is or may be obliged to deliver a variable number of its own equity instruments, or a derivative contract over own equity that will or may be settled other than by the exchange of a fixed amount of cash (or another financial asset) for a fixed number of the Company''s own equity instruments.

I. Equity Instrument

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognised at the proceeds received, net of direct issues costs.

II. Financial Liabilities

a) Initial recognition and measurement

A financial liability is recognised initially at cost of acquisition net of transaction costs and incomes that are attributable to the acquisition of the financial liability. Cost equates the fair value on the acquisition.

b) Classification of Financial Liability

The Company classifies its financial liabilities as “Financial liability measured at amortised cost” except for the financial liability which is held for trading are designated as at FVTPL.

c) Subsequent measurement of Financial Liability

All financial liabilities are subsequently measured at amortised cost using the effective interest rate method or at FVTPL.

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method.

The effective interest method is a method of calculating the amortised cost of financial liability and allocating interest expenses over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees paid or received that form an integral part of effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

d) Derecognition of Financial Liability

The Company derecognizes financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. An exchange between the Company and the lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability

Fair value of Financial Instruments

The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e.an exit price) regardless of whether that price is directly observable or estimated using another valuation technique. When the fair values of financial assets and financial liabilities cannot be derived from active market, they are determined using a variety of valuation techniques that include the use of valuation models. The inputs to these models are taken from observable markets where possible, but where this is not feasible, estimation is required in establishing fair values. Judgements and estimates include considerations of liquidity and model inputs related to items such as credit risk (both own and counterparty), funding value adjustments, correlation and volatility.

Fair value measurement under Ind AS are categorized into a fair value hierarchy based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access on measurement date;

Level 2 inputs, other than quoted prices included within level 1, that are observable for the assets or liability, either directly or indirectly;

Level 3 where unobservable inputs are used for the valuation of assets and liabilities.

Off setting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

6. Employee Benefits

Defined contribution plan

Contributions to defined contribution schemes such as employees'' provident fund, employees'' state insurance, employee pension schemes etc. are charged as an expense based on the amount of contribution required to be made as and when services are rendered by the employees. Company''s provident fund contribution is made to a government administered fund and charged as an expense to the Statement of Profit and Loss. The above benefits are classified as Defined Contribution Schemes as the Company has no further defined obligations beyond the monthly contributions.

Defined benefit plans

The Company contributes to Defined Benefit Plans comprising of Gratuity and Compensated Absences. The Company has defined benefit plans namely - gratuity plan and compensated absence plan, the calculation of which is performed annually by a qualified actuary using the projected unit credit method, and incremental liability, if any, is provided in the books.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in Other items of other Comprehensive Income in the Statement of Changes in Equity and in the Balance Sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.

The Company fully contributes all ascertained liabilities of Gratuity to the “Sahara Housingfina Corporation Limited Employees Group Gratuity Scheme (''the Trust'')”. Trustees took the policy from Life Insurance Corporation of India to administer contributions made to the Trust.

7 . Revenue RecognitionInterest Income on loans

The main source of revenue for the Company is Income from Housing and Other property loans. Repayment of housing and property loan is by way of Equated Monthly Instalments (EMIs) comprising of principal and interest.

EMIs generally commence once the loan is disbursed. Pending commencement of EMIs, pre-EMI interest is payable every month on the loan that has been disbursed. Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time proportion basis to the principal outstanding and applicable interest rate.

Interest on Non Performing Assets, Penal Interest and other related charges are recognised as income only when revenue is virtually certain which generally coincides with receipts.

Interest Income - others

Income from interest on deposits and interest bearing securities is recognized on the time proportionate method taking into account the amount outstanding and the rate applicable.

Dividend Income

Dividend income from investments is recognised when the Company''s right to receive payment has been established.

8. Finance Cost

Borrowing costs primarily include interest on amounts borrowed for the revenue operations of the Company. These are expensed to the statement of profit and loss using the EIR wherever applicable.

9. Exceptional Items

When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of such items is disclosed separately as Exceptional items.

10 . TaxesCurrent Tax

Current tax assets and liabilities for the year are measured at the amount expected to be recovered from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted, or substantively enacted, by the reporting date.

Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred Tax

Deferred income tax is recognized using the Balance Sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. A deferred tax asset are reviewed at each balance sheet date and is written-down or written- up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

11. Cash and cash equivalents

In the cash flow statement, cash and cash equivalents includes cash on hand, demand deposits with banks, other short- term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in financial liabilities in the balance sheet.

12. Segment Reporting

The Company''s main business is financing by way of loans for the purchase or construction of residential houses, commercial real estate or certain other purposes, in India. All other activities of the Company revolve around the main business. Hence, there are no separate reportable segments, as per Ind AS 108 dealing with Operating Segments as specified under Section 133 of the Companies Act, 2013.

13 Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.

14 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

A contingent asset is disclosed, where an inflow of economic benefit is probable. An entity shall not recognize a contingent asset unless the recovery is virtually certain.

15 Amendments in Ind AS

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

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Mar 31, 2024

Note 2 Basis of Preparation and Presentation and Significant Accounting Policies
Basis of Preparation

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under
Section 133 of the Companies Act, 2013 ("the Act") read with the Companies (Indian Accounting Standards) Rules, 2015
as amended and other relevant provisions of the Act and presentation requirements of Division III to Schedule III to the
Act and guidelines/Directions issued by the National Housing Bank ("NHB") and Reserve Bank of India ("RBI") to the extent
applicable.

Company''s financial statements are presented in Indian Rupees (INR), which is also Company''s functional currency.

The Financial Statements were authorized for issue in accordance with a resolution of the Board of Directors in its meeting
held on May 29, 2024.

Accounting policies have been consistently applied except where a newly issued Ind AS is initially adopted or a revision
to an existing Ind AS requires a change in the accounting policy hitherto in use.

Basis of Accounting

The Financial Statements have been prepared on a historical cost basis, except for the following:

• Certain Financial Assets and Liabilities are measured at fair value (refer accounting policy regarding financial instruments).

• Assets held for sale are measured at the lower of carrying value and fair value less costs to sell.

• Defined benefit plans where plan assets are measured at fair value.

Significant Accounting Judgements, Estimates and Assumptions

The preparation of the Financial Statements in conformity with Ind AS and in compliance of guidelines requires the
Management to make judgements, estimates and assumptions considered in the reported amounts of assets and liabilities
(including contingent liabilities) and the reported income and expense during the reported period.

The estimates and judgements used are continuously evaluated by the Company and are based on historical experience
and various other assumptions and factors (including exceptions of future events) that the Company believes to be reasonable
under the existing circumstances. Differences between actual results and estimates are recognised in the period in which
the results are known/materialized. The management believes that the estimates used in the preparation of Financial
Statements are prudent and reasonable.

1. Property, plant and equipment

All Property, Plant and Equipment are stated at cost of acquisition, less accumulated depreciation and accumulated
impairment losses, if any. Direct costs are capitalized until the assets are ready for use and includes freight, duties,
taxes and expenses incidental to acquisition and installation.

The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other
repairs and maintenance are charged to statement of profit and loss during the reporting period in which they are
incurred. Subsequent expenditures related to an item of Property, Plant and Equipment are added to its book value
only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.
Losses arising from the retirement of, and gains or losses arising from disposal of Property, Plant and Equipment are
recognised in the Statement of Profit and Loss.

Depreciation is provided on a pro-rata basis on the straight line method (''SLM'') over the estimated useful lives of the
assets specified in Schedule II of the Companies Act, 2013.

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.

2. Intangible Assets

Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment losses,
if any.

Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between
the disposal proceeds and the carrying amount of the asset and are recognised as income or expense in the Statement
of Profit and Loss.

Intangible Assets are amortized on a straight line basis over their finite useful lives over the following period: Computer
Software - 3 years

3. Impairment of Assets other than Financial Assets

The Company assesses at each Balance Sheet date whether there is any indication that carrying amount of Assets
(Property, Plant and Equipment, Intangible Assets etc) may be impaired. For the purposes of assessing impairment,
the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent
of the cash inflows from other assets or groups of assets, is considered as a cash generating unit. If any such indication
exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the
recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the
Statement of Profit and Loss. If at the Balance Sheet date there is an indication that previously assessed impairment
loss no longer exists or may have decreased, the recoverable amount is reassessed and the asset is reflected at the
recoverable amount.

4. Lease

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the
economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct
the use of the asset.

The Company''s lease assets primarily consist of leases for buildings.

At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU''j and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less
(short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the
lease payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease
term and useful life of the underlying asset. Right-of-use-assets are evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment
testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined
on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from
other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the
asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental
borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding
adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an
extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been
classified as financing cash flows

5. Financial Instruments

Recognition and Initial Measurement

All financial assets and liabilities, with the exception of loans and borrowings are initially recognised on the trade date,
i.e., the date that the Company becomes a party to the contractual provisions of the instrument.

Loans are recognised when fund transfer is initiated or disbursement cheque is issued to the customer. The Company
recognizes borrowings (other than debt securities) when funds are received by the Company.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs and revenues that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets
and financial liabilities measured at FVTPL) are added to or deducted from the fair value of the financial assets or
financial liabilities, as appropriate, on initial recognition. Transaction costs and revenues directly attributable to the
acquisition of financial assets or financial liabilities measured at FVTPL are recognized immediately in the statement
of profit and loss.

Classification and Subsequent Measurement of Financial Assets
Financial Assets

The Company classifies and measures all its financial assets based on the business model for managing the assets
and the asset''s contractual terms, either at:

- Amortised cost

- Fair Value through other comprehensive income

- Fair Value through Profit and Loss
Amortised Cost

The Company classifies and measures certain debt instruments at FVOCI when the assets are held within a business
model, the objective of which is achieved by both, collecting contractual cash flows and selling the financial instruments
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.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair
value. Fair value movements are recognised in the Other Comprehensive Income (OCI). However, the Company
recognises interest income and impairment losses in the Statement of Profit and Loss. On derecognition of the asset,
cumulative gain or loss previously recognised in OCI is reclassified from Equity to Statement of Profit and Loss. Interest
earned while holding FVTOCI debt instrument is reported as interest income using the EIR method.

Fair Value through Profit and Loss ("FVTPL")

Financial assets at FVTPL are:

- assets with contractual cash flows that are not SPPI; and/or

- assets that are held in a business model other than held to collect contractual cash flows or held to collect and
sell; or

- assets designated at FVTPL using the fair value option.

These assets are measured at fair value, with any gains/losses arising on remeasurement is recognized in the statement
of profit and loss.

Subsequent Measurement and Gain and Losses Financial
Assets at Amortised Cost

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost
is reduced by impairment losses. Interest income and impairment loss are recognised in statement of profit and loss.
Any gain or loss on derecognition Is recognized in statement of profit and loss.

Debt Instrument at FVOCI

These assets are subsequently measured at fair value. Interest income and impairment loss are recognized in statement
of profit and loss. Any gain or loss on subsequent measurement is recognised in OCI and on derecognition the cumulative
gain or loss recognized in OCI will be recycled to statement of profit and loss.

Financial Assets at FVTPL

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses
arising on re-measurement recognised in statement of profit and loss. The net gain or loss recognised in Statement
of profit and loss incorporates any dividend or interest earned on the financial asset. Dividend on financial assets at
FVTPL is recognised when the Company''s right to receive the dividends is established, the dividend does not represent
a recovery of part of cost of the investment and the amount of dividend can be measured reliably.

Changes in the fair value of financial assets at FVTPL are recognised in the statement of profit and loss.

Reclassifications

If the business model under which the Company holds financial assets changes, the financial assets affected are
reclassified. The classification and measurement requirements related to the new category apply prospectively from
the first day of the first reporting period following the change in business model that result in reclassifying the Company''s
financial assets

Impairment and Write-off

The Company recognizes loss allowances for Expected Credit Losses on Loans to customers, other financial assets
and loan commitments that are not measured at FVTPL.

Equity instruments are measured at fair value and are not subject to an impairment loss. ECL is required to be measured
through a loss allowance at an amount equal to:

• 12-month ECL, i.e., loss allowance on default events on the financial instrument that are possible within 12 months
after the reporting date, (referred to as Stagel); or

• Lifetime ECL, i.e. lifetime ECL that results from all possible default events over the life of the financial instrument,
(referred to as Stage 2 and Stage 3).

A loss allowance for lifetime ECL is required for a financial instrument if the credit risk on that financial instrument has
increased significantly since initial recognition. For all other financial instruments, ECL is measured at an amount equal
to the 12-month ECL.

The Company has established a policy to perform an assessment at the end of each reporting period whether a financial
instrument''s credit risk has increased significantly since initial recognition by considering the change in the risk of
default occurring over the remaining life of the financial instruments.

Based on the above process, the Company categorises its loans into Stage 1, Stage 2 and Stage 3 as described below:

Stage 1: When loans are first recognised, the Company recognizes an allowance based on 12months ECL. Stage 1
loans also include facilities where the credit risk has improved and the loan has been reclassified from Stage 2 to
Stage 1.

Stage 2: When a loan has shown a significant increase in credit risk since origination, the Company records an allowance
for the life time expected credit losses. Stage 2 loans also include facilities, where the credit risk has improved and
the loan has been reclassified from Stage 3 to Stage 2.

Stage 2: When a loan has shown a significant increase in credit risk since origination, the Company records an allowance
for the life time expected credit losses. Stage 2 loans also include facilities, where the credit risk has improved and
the loan has been reclassified from Stage 3 to Stage 2.

Stage 3: When loans are considered credit-impaired, the Company records an allowance for the life time expected
credit losses.

For financial assets for which the Company has no reasonable expectations of recovering either the entire outstanding
amount, or a proportion thereof, the gross carrying amount of the financial asset is reduced. This is considered a
(partial) derecognition of the financial asset.

Determination of Expected Credit Loss ("ECL")

The measurement of impairment losses (ECL) across all categories of financial assets requires judgement.

In particular, the estimation of the amount and timing of future cash flows based on Company''s historical experience
and collateral values when determining impairment losses along with the assessment of a significant increase in credit
risk. These estimates are driven by a number of factors, changes in which can result in different levels of allowances.

Elements of the ECL models that are considered accounting judgments and estimates include:

• Bifurcation of the financial assets into different portfolios when ECL is assessed on a collective basis.

• Company''s criteria for assessing if there has been a significant increase in credit risk.

• Development of ECL models, including choice of inputs/assumptions used.

The various inputs used and the process followed by the Company in measurement of ECL has been detailed below:
Measurement of Expected Credit Losses

The Company calculates ECL based on probability-weighted scenarios to measure expected cash shortfalls, discounted
at an approximation to the portfolio. A cash shortfall is a difference between the cash flows that are due to the Company
in accordance with the contract and the cash flows that the Company expects to receive.

The Company measures ECL on an individual basis, or on a collective basis for portfolios of loans that share similar
economic risk characteristics. The measurement of the loss allowance is based on the present value of the asset''s
expected cash flows using the asset''s original EIR, regardless of whether it is measured on an individual basis or a
collective basis.

The mechanics of the ECL calculations are outlined below and the key elements are, as follows:

Exposure at Default is an total amount outstanding including accrued interest as of reporting date, taking into account
expected changes in the exposure after the reporting date, including repayments of principal and interest, whether
scheduled by contract or otherwise, expected draw downs on committed facilities after considering the credit conversion
factor (for Stage 1 and Stage 2 assets), and accrued interest from missed payments.

Probability of Default represents the likelihood of a borrower defaulting on its financial obligation (as per ''''Definition
of default and credit-impaired'''') either over the next 12 months, or over the remaining lifetime of the obligation.

Loss Given Default represents the Company''s expectation of the extent of loss on a defaulted exposure which varies
by type of borrowers, type and preference of claim and availability of collateral or other credit support.

Forward-looking economic information (including management overlay) is included in determining the 12-month and
lifetime Default elements. The assumptions underlying the expected credit loss are monitored and reviewed on an
ongoing basis.

After Evaluation of the Housing and Non-Housing Loan of the company & the Board''s approvals w.e.f March 31, 2024,
Considering the Nature, Size and its trend of default, the Companiy''s Management has decided to make provision of
Expected Credit Loss by using fixed rate basis.

The following are the rates are decided by the Management for Provision under Expected Credit Loss.

Loan Category % of Provision % Expected

As per RBI/NHB credit loss

Standard - Individual Housing 0.25% 0.50%

Standard - Corporate Housing 0.75% 0.94%

Standard - Others 1.00% 1.25%

Sub-standard 15.00% 22.50%

Doubtful - I 25.00% 37.50%

Doubtful - II 40.00% 60.00%

Doubtful - III 100.00% 100.00%

Loss Assets 100.00% 100.00%

Significant Increase in Credit Risk

The Company monitors all financial assets, including loan commitments and financial guarantee contracts issued that
are subject to impairment requirements, to assess whether there has been a significant increase in credit risk since
initial recognition. If there has been a significant increase in credit risk the Company measures the loss allowance
based on lifetime rather than 12-month ECL. The Company monitors all financial assets and issued loan commitments
that are subject to impairment for a significant increase in credit risk.

In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the
Company compares the risk of a default occurring on the financial instrument at the reporting date based on the
remaining maturity of the instrument with the risk of a default occurring that was anticipated for the remaining maturity
at the current reporting date when the financial instrument was first recognised. In making this assessment, the Company
considers both quantitative and qualitative information that is reasonable and supportable, including historical experience
that is available without undue cost or effort.

The Company considers the quantitative factors that indicate a significant increase in credit risk on a timely basis.
However, the Company still considers separately some qualitative factors to assess if credit risk has increased
significantly. For Project/Builder loan, there is a particular focus on assets that are included on a watch list. Given an
exposure is on a watch list once, there is a concern that the creditworthiness of the specific counterparty has deteriorated.
ECL assessment for watch list accounts is done on a case by case approach after considering the probability of
weighted average in a different recovery scenario. For individual loans the Company considers the expectation of
forbearance, payment holidays, and events such as unemployment, bankruptcy, divorce, or death.

Credit-Impaired Financial Assets

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future
cash flows of the financial asset have occurred. Credit-impaired financial assets are referred to as Stage 3 assets.
Evidence of credit-impairment includes observable data about the following events:

• significant financial difficulty of the borrower or issuer;

• a breach of contract such as a default or past due event;

• restructuring of loans due to financial difficulty of the borrowers;

It may not be possible to identify a single discrete event. Instead the combined effect of several events may have
caused financial assets to become credit-impaired. The Company assesses whether debt instruments that are financial
assets measured at amortised cost or FVOCI are credit-impaired at each reporting date. To assess if debt instruments
are credit impaired, the Company considers factors such as financial status, credit ratings and the ability of the borrower
to raise funds. A loan is considered credit-impaired when a concession is granted to the borrower due to deterioration
in the borrower''s financial condition. The definition of default includes unlikeliness to pay indicators and a back-stop
if amounts are overdue for more than 90 days.

Definition of Default

The definition of default is used in measuring the amount of ECL and in the determination of whether the loss allowance
is based on 12-month or lifetime ECL. The Company considers the following as constituting an event of default:

• The borrower is past due more than 90 days Accounts Identified by the Company as NPA as per regulatory
guidelines Objective Evidence for impairment (Qualitative Overlay); or

• The borrower is unlikely to pay its credit obligations to the Company.

When it is assessed that the borrower is unlikely to pay their credit obligation, the Company takes into account both
qualitative and quantitative indicators. The information assessed depends on the type of the asset, for example in
corporate lending a qualitative indicator used is the breach of covenants, which is not as relevant for individual lending.
Quantitative indicators, such as overdue status and non-payment on another obligation of the same counterparty are
key inputs in this analysis.

Write-off

Loans are written off when the Company has no reasonable expectations of recovering the financial asset (either in
its entirety or a portion of it). This is the case when the Company determines that the borrower does not have assets
or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. A
write- off constitutes a derecognition event. The Company may apply enforcement activities to financial assets written
off/ may assign / sell loan exposure to Bank / financial institution for a negotiated consideration. Recoveries resulting
from the Company''s enforcement activities could result in impairment gains.

Derecognition of Financial Assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
party.

On derecognition of financial assets in entirety, the difference between the asset''s carrying amount and the sum of
the consideration received and receivable is recognised in the statement of profit and loss.

Financial Liabilities and Equity Instruments

Classification as debt or equity

Debt and equity instruments that are issued are classified as either financial liabilities or as equity in accordance with
the substance of the contractual arrangement.

A financial liability is a contractual obligation to deliver cash or another financial asset or to exchange financial assets
or financial liabilities with another entity under conditions that are potentially unfavourable to the Company or a contract
that will or may be settled in the Company''s own equity instruments and is a non-derivative contract for which the
Company is or may be obliged to deliver a variable number of its own equity instruments, or a derivative contract over
own equity that will or may be settled other than by the exchange of a fixed amount of cash (or another financial asset)
for a fixed number of the Company''s own equity instruments.

I. Equity Instrument

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities. Equity instruments issued are recognised at the proceeds received, net of direct issues costs.

II. Financial Liabilities

a) Initial recognition and measurement

A financial liability is recognised initially at cost of acquisition net of transaction costs and incomes that are attributable
to the acquisition of the financial liability. Cost equates the fair value on the acquisition.

b) Classification of Financial Liability

The Company classifies its financial liabilities as "Financial liability measured at amortised cost" except for the financial
liability which is held for trading are designated as at FVTPL.

c) Subsequent measurement of Financial Liability

All financial liabilities are subsequently measured at amortised cost using the effective interest rate method or at FVTPL.

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost
at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured
at amortised cost are determined based on the effective interest method.

The effective interest method is a method of calculating the amortised cost of financial liability and allocating interest
expenses over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
payments (including all fees paid or received that form an integral part of effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period,
to the amortised cost of a financial liability.

d) Derecognition of Financial Liability

The Company derecognizes financial liabilities when, and only when, the Company''s obligations are discharged,
cancelled or have expired. An exchange between the Company and the lender of debt instruments with substantially
different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability

Fair value of Financial Instruments

The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market
conditions (i.e.an exit price) regardless of whether that price is directly observable or estimated using another valuation
technique. When the fair values of financial assets and financial liabilities cannot be derived from active market, they
are determined using a variety of valuation techniques that include the use of valuation models. The inputs to these
models are taken from observable markets where possible, but where this is not feasible, estimation is required in
establishing fair values. Judgements and estimates include considerations of liquidity and model inputs related to items
such as credit risk (both own and counterparty), funding value adjustments, correlation and volatility.

Fair value measurement under Ind AS are categorized into a fair value hierarchy based on the degree to which the
inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement
in its entirety, which are described as follows:

Level 1 quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access on
measurement date;

Level 2 inputs, other than quoted prices included within level 1, that are observable for the assets or liability, either
directly or indirectly;

Level 3 where unobservable inputs are used for the valuation of assets and liabilities.

Off setting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset
and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must
be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company
or the counterparty.

6. Employee Benefits

Defined contribution plan

Contributions to defined contribution schemes such as employees'' provident fund, employees'' state insurance, employee
pension schemes etc. are charged as an expense based on the amount of contribution required to be made as and
when services are rendered by the employees. Company''s provident fund contribution is made to a government
administered fund and charged as an expense to the Statement of Profit and Loss. The above benefits are classified
as Defined Contribution Schemes as the Company has no further defined obligations beyond the monthly contributions.

Defined benefit plans

The Company contributes to Defined Benefit Plans comprising of Gratuity and Compensated Absences. The Company
has defined benefit plans namely - gratuity plan and compensated absence plan, the calculation of which is performed
annually by a qualified actuary using the projected unit credit method, and incremental liability, if any, is provided in
the books.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognized in the period in which they occur, directly in other comprehensive income. They are included in Other items
of other Comprehensive Income in the Statement of Changes in Equity and in the Balance Sheet. Changes in the
present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately
in profit or loss as past service cost.

The Company fully contributes all ascertained liabilities of Gratuity to the "Sahara Housingfina Corporation Limited
Employees Group Gratuity Scheme (''the Trust'')". Trustees took the policy from Life Insurance Corporation of India to
administer contributions made to the Trust.

7 . Revenue Recognition

Interest Income on loans

The main source of revenue for the Company is Income from Housing and Other property loans. Repayment of housing
and property loan is by way of Equated Monthly Instalments (EMIs) comprising of principal and interest.

EMIs generally commence once the loan is disbursed. Pending commencement of EMIs, pre-EMI interest is payable
every month on the loan that has been disbursed. Interest income from a financial asset is recognised when it is
probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.
Interest income is accrued on a time proportion basis to the principal outstanding and applicable interest rate.

Interest on Non Performing Assets, Penal Interest and other related charges are recognised as income only when
revenue is virtually certain which generally coincides with receipts.

Interest Income - others

Income from interest on deposits and interest bearing securities is recognized on the time proportionate method taking
into account the amount outstanding and the rate applicable.

Dividend Income

Dividend income from investments is recognised when the Company''s right to receive payment has been established.

8. Finance Cost

Borrowing costs primarily include interest on amounts borrowed for the revenue operations of the Company. These
are expensed to the statement of profit and loss using the EIR wherever applicable.

9. Exceptional Items

When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence
that their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of
such items is disclosed separately as Exceptional items.

10 .Taxes

Current Tax

Current tax assets and liabilities for the year are measured at the amount expected to be recovered from, or paid to,
the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted, or
substantively enacted, by the reporting date.

Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other
comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either
in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations
in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred Tax

Deferred income tax is recognized using the Balance Sheet approach. Deferred income tax assets and liabilities are
recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and
their carrying amount, except when the deferred income tax arises from the initial recognition of an asset or liability in
a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time
of the transaction.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively
enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realized
or the deferred tax liability is settled.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied
by same governing taxation laws. A deferred tax asset are reviewed at each balance sheet date and is written-down
or written- up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction
either in OCI or directly in equity.

11. Cash and cash equivalents

In the cash flow statement, cash and cash equivalents includes cash on hand, demand deposits with banks, other
short- term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts
are shown within borrowings in financial liabilities in the balance sheet.

12. Segment Reporting

The Company''s main business is financing by way of loans for the purchase or construction of residential houses,
commercial real estate or certain other purposes, in India. All other activities of the Company revolve around the main
business. Hence, there are no separate reportable segments, as per Ind AS 108 dealing with Operating Segments as
specified under Section 133 of the Companies Act, 2013.

13 Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
(after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.

---

Mar 31, 2018

Notes forming part of financial statements for the year ended March 31, 2018

1. CORPORATE INFORMATION

Sahara Housingfina Corporation Limited is mainly engaged in the business of providing housing finance to individuals and corporates for the purchase or construction of residential houses.

2. SIGNIFICANT ACCOUNTINGPOLICIES

i. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles (GAAP) in India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Companies (Accounting Standards) Rules, 2006, [as amended] and the other relevant provisions of the Companies Act, 2013 and the guidelines issued by the National Housing Bank to the extent possible.

ii. Use of Accounting Estimates

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statements and amounts of income and expenses during the year of account. Examples of such estimates include provision for doubtful debts, income taxes and future obligations under employee retirement benefit plans.

Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

iii. Operating Cycle and Current Versus Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

An asset is treated as current when it (a) Expected to be realized or intended to be sold or consumed in normal operating cycle; (b) Held primarily for the purpose of trading; or (c) Expected to be realized within twelve months after the reporting period, or (d) The asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.

A liability is current when (a) It is expected to be settled in normal operating cycle; or (b) It is held primarily for the purpose of trading; or (c) It is due to be settled within twelve months after the reporting period, or (d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, results in its settlement by the issue of equity instruments do not affect its classification. The Company classifies all other liabilities as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its normal operating cycle.

iv. Revenue Recognition

Interest Income/Fees on Loan Assets is accounted for on accrual basis, other than on Non-Performing Assets, which is accounted for on realization basis in accordance with the National Housing Bank Guidelines. Penal interest is accounted for on realization basis.

“Fee based services”, such as, notice charges, collection charges, visit fees, cheque swap charges etc. are accounted for on realization basis.

Repayment of Loan Assets is generally by way of Equated Monthly Installments (EMIs) comprising principal and interest. EMIs commence once the entire loan is disbursed. Pending commencement of EMIs, Pre-EMIs (PEMIs) interest is receivable every month. Interest on loans is computed on a monthly rest basis.

Dividend is accounted on accrual basis when the right to receive the dividend is established.

Interest income on fixed deposit is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.

v. Provisions on Loan Assets

Loan Assets are classified as per the NHB Prudential Guidelines, into performing and non-performing assets. Nonperforming Assets are further classified into sub-standard, doubtful and loss assets based on criteria stipulated by NHB.

The Company adhered to the prudential guideline prescribed by the NHB for provisions in respect of non-performing assets and provisions for contingencies on standard assets.

vi. Fixed Assets

Fixed asset are stated at cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

The carrying amounts are reviewed at each balance sheet date when required to assess whether they are recorded in excess of their recoverable amounts, and where carrying values exceed this estimated recoverable amount, assets are written down to their recoverable amount.

vii. Depreciation/Amortization

Tangible Assets other than Land are depreciated under the Straight Line Method (SLM) as per the rates and in the manner specified in Schedule II of the Companies Act, 2013.

viii. Borrowing Cost

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as a part of the cost of such assets till such time the asset is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. Other borrowing costs are recognized as an expense in the year in which they are incurred.

ix. Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and market value. Long-term investments are carried at cost. Cost such as brokerage, commission etc., pertaining to investment, paid at the time of acquisition, are included in investment cost. Provisions for diminution in the value of investments is made in accordance with the guidelines issued by NHB and the Accounting Standards on “Accounting for Investments” (AS 13).

x. Taxes on Income

Tax expense for the year comprises of the current and deferred tax. Current taxes are measured at the current rates of tax in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that results between taxable profits and profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed depreciation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against such deferred tax assets can be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statement of Profit & Loss in the year of change.

xi. Earnings Per Share (EPS)

Basic earnings per share are calculated by dividing the net earnings after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For calculating diluted earnings per share, the number of shares comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of shares, if any which would have been used in the conversion of all dilutive potential equity shares. The number of shares and potentially dilutive equity shares are adjusted for the bonus shares and the sub-division of shares, if any.

xii. Employee Benefits

The Company''s contribution to the Provident Fund is deposited with Government administered provident fund and the same has been charged to Statement of Profit & Loss.

Provision for Gratuity has been made on the basis of actuarial valuation carried out by an actuary in accordance with Accounting Standard (AS) 15 (Revised) “Employee Benefits”.

Liability for Leave encashment is provided on the balance leave of eligible employees as at the date of Balance Sheet, in accordance with company’s policy.

xiii. Leases:

Operating Leases

Lease rentals in respect of assets taken on “Operating Leases” are charged to the Statement of Profit and Loss on straight line basis over the lease term.

Finance Leases

Finance leases, which effectively transfer to the Company substantially all the risks and rewards incidental to ownership of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease and are accordingly disclosed. The capital element of the leasing commitments is shown as Secured Liabilities. Lease payments are apportioned between the finance charges and reduction of the corresponding liability based on the implicit rate of return.

xiv. Housing and Other Loans

Housing Loans include outstanding amount of Housing Loans disbursed directly or indirectly to individual, project loans for residential buildings and other borrowers. Other loans include mortgage loan, nonresidential property loan, plot loan for self-construction where construction has not begun in last three years and loan against the lease rental income from properties in accordance with directions of National Housing Bank (NHB).

xv. Provisions and Contingencies

A provision is recognized when the Company has a present legal or constructive 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 reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are not recognized in the financial statements.

5.1 Term Loan from a Body Corporate is secured by hypothecation of specific book debt in respect of the identified housing loan assets. The Interest rate is 8.50% P.A. and the entire outstanding loan is repayable in the Financial Year 2024-25

5.2 7% Secured Non-Convertible Reedeemable Debentures (NCD) are secured by the first ranking charge on the present and future receivables of the issuer for the principle amount and interest thereon. NCD has put and call option of 30%, 30% and 40% of the issue price on March 31, 2025, March 31, 2026 and March 31, 2027 respectively by giving one month prior notice to the call/put option.

5.3 10% Non-Convertible Reedeemable Debentures are repayable in the Financial Year 2019-20

5.4 Unsecured - other loan from related party aggregating to Rs, 366,531,684 (Previous Year Rs, 436,531,684) include interest thereon aggregating to Rs, 366,531,684 (Previous Year Rs, 436,531,684). The interest rate is 9% p.a. The entire outstanding loan (including interest) is repayable in the year 2021-22.

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Mar 31, 2016

1. CORPORATEINFORMATION

Sahara Housingfina Corporation Limited is mainly engaged in the business of providing housing finance to individuals and corporate for the purchase or construction of residential houses.

2. ACCOUNTING POLICIES

i. BASIS OF PREPARATION

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis, except for certain tangible assets which are being carried at revalued amounts. Pursuant to section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014, till the standard of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing accounting standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Companies (Accounting Standards) Rules, 2006,[as amended] and the other relevant provisions of the Companies Act, 2013 and the guidelines issued by the National Housing Bank to the extent possible.

ii. USE OF ACCOUNTING ESTIMATES

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statements and amounts of income and expenses during the year of account. Examples of such estimates include contract costs expected to be incurred to complete construction contracts, provision for doubtful debts, income taxes and future obligations under employee retirement benefit plans.

Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

iii. REVENUE RECOGNITION

Interest Income/Fees on Loan Assets is accounted for on accrual basis, other than on Non-Performing Assets, which is accounted for on cash basis in accordance with the National Housing Bank Guidelines. Penal interest is accounted for on realization basis.

“Fee based services”, such as, notice charges, collection charges, visit fees, cheque swap charges etc. are accounted for on cash basis.

Repayment of Loan Assets is generally by way of Equated Monthly Installments (EMIs) comprising principal and interest. EMIs commence once the entire loan is disbursed. Pending commencement of EMIs, Pre-EMIs (PEMIs) interest is receivable every month. Interest on loans is computed on a monthly rest basis.

Dividend is accounted on accrual basis when the right to receive the dividend is established.

iv. PROVISIONS ON LOAN ASSETS

Loan Assets are classified as per the NHB Prudential Guidelines, into performing and non-performing assets. Non-Performing Assets are further classified into sub-standard, doubtful and loss assets based on criteria stipulated by NHB.

The Company adhered to the prudential guideline prescribed by the NHB for provisions in respect of non-performing assets and provisions for contingencies on standard assets.

v. FIXED ASSETS

Fixed asset are stated at cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

The carrying amounts are reviewed at each balance sheet date when required to assess whether they are recorded in excess of their recoverable amounts, and where carrying values exceed this estimated recoverable amount, assets are written down to their recoverable amount.

vi. DEPRECIATION/AMORTISATION

Tangible Assets other than Land are depreciated under the Straight Line Method (SLM) as per the rates and in the manner specified in Schedule II of the Companies Act, 2013.

vii. BORROWING COST

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as a part of the cost of such assets till such time the asset is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. Other borrowing costs are recognized as an expense in the year in which they are incurred.

viii. INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and market value. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. Cost such as brokerage, commission etc., pertaining to investment, paid at the time of acquisition, are included in investment cost.

ix. TAXES ON INCOME

Tax expense for the year comprises of the current and deferred tax. Current taxes are measured at the current rates of tax in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that results between taxable profits and profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed depreciation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against such deferred tax assets can be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statement of Profit & Loss in the year of change.

x. EARNINGS PER SHARE (EPS)

Basic earnings per share are calculated by dividing the net earnings after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For calculating diluted earnings per share, the number of shares comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of shares, if any which would have been used in the conversion of all dilutive potential equity shares. The number of shares and potentially dilutive equity shares are adjusted for the bonus shares and the sub-division of shares, if any.

xi. EMPLOYEE BENEFITS

The Company''s contribution to the Provident Fund is deposited with Government administered provident fund and the same has been charged to Statement of Profit & Loss.

Provision for Gratuity has been made on the basis of actuarial valuation carried out by an actuary in accordance with Accounting Standard (AS) 15 (Revised) “Employee Benefits” issued by the Institute of Chartered Accountants of India.

Liability for Leave encashment is provided on the balance leave of eligible employees as at the date of Balance Sheet, in accordance with company’s policy.

xii. PROVISIONS ANDCONTINGENCIES

A provision is recognized when the Company has a present legal or constructive 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 reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized and are disclosed by way of a note to the accounts.

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Mar 31, 2015

I. BASIS OF PREPARATION

These Financial Statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis, except for certain financial tangible assets which are measured at fair value. GAAP comprises mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

ii. USE OF ACCOUNTING ESTIMATES

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statements and amounts of income and expenses during the year of account. Examples of such estimates include contract costs expected to be incurred to complete construction contracts, provision for doubtful debts, income taxes and future obligations under employee retirement benefit plans.

Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

iii. REVENUE RECOGNITION

Interest Income/Fees on Loan Assets is accounted for on accrual basis, other than on Non-Performing Assets, which is accounted for on cash basis in accordance with the NHB Guidelines. Penal interest is accounted for on realization basis.

"Fee based services", such as notice charges, collection charges, visit fees, cheque swap charges etc. are accounted for on cash basis.

Repayment of Loan Assets is generally by way of Equated Monthly Installments (EMIs) comprising principal and interest. EMIs commence once the entire loan is disbursed. Pending commencement of EMIs, Pre-EMIs (PEMIs) interest is receivable every month. Interest on loans is computed on a monthly rest basis.

Dividend is accounted on accrual basis when the right to receive the dividend is established.

iv. PROVISIONS ON LOAN ASSETS

Loan Assets are classified as per the NHB Prudential Guidelines, into performing and non-performing assets. Non-Performing Assets are further classified in to sub-standard, doubtful and loss assets based on criteria stipulated by NHB.

The Company adhered to the prudential guideline prescribed by the NHB for provisions in respect of non-performing assets and provisions for contingencies on standard assets.

v. FIXED ASSETS

Fixed asset are stated at cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

The carrying amounts are reviewed at each balance sheet date when required to assess whether they are recorded in excess of their recoverable amounts, and where carrying values exceed this estimated recoverable amount, assets are written down to their recoverable amount.

vi. DEPRECIATION/AMORTISATION

Pursuant to the Companies Act, 2013 ("the Act"), the Company has, during the financial year ended March 31,2015 revised depreciation rates as per the useful life specified in Schedule-II of the Act.

During the year ended March 31,2015, pursuant to the requirements of Schedule II to the Companies Act, 2013, based on an internal evaluation, management has reassessed the remaining useful life of all fixed assets with effect from April 1, 2014. Consequently, the useful life of fixed assets required a change from the previous estimates.

vii. BORROWING COST

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as a part of the cost of such assets till such time the asset is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. Other borrowing costs are recognized as an expense in the year in which they are incurred.

viii. INVESTMENTS

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and market value. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments. Cost such as brokerage, commission etc., pertaining to investment, paid at the time of acquisition, are included in investment cost.

ix. TAXES ON INCOME

Tax expense for the year comprises of the current and deferred tax. Current taxes are measured at the current rates of tax in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that results between taxable profits and profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed deprecation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against such deferred tax assets can be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statement of Profit & Loss in the year of change.

x. EARNINGS PER SHARE (EPS)

Basic earnings per share are calculated by dividing the net earnings after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For calculating diluted earning per share, the number of shares comprises the weighted average shares considered for deriving basic earning per share, and also the weighted average number of shares, if any which would have been used in the conversion of all dilutive potential equity shares. The number of shares and potentially dilutive equity shares are adjusted for the bonus shares and the sub-division of shares, if any.

xi. EMPLOYEE BENEFITS

The Company's contribution to the Provident Fund is deposited with Government administered provident fund and the same has been charged to Statement of Profit & Loss.

Provision for Gratuity has been made on the basis of actuarial valuation carried out by an actuary in accordance with Accounting Standard (AS) 15 (Revised) "Employee Benefits" issued by the Institute of Chartered Accountants of India.

Liability for Leave encashment is provided on the balance leave of eligible employees as at the date of Balance Sheet, in accordance with company's policy.

xii. PROVISIONS AND CONTINGENCIES

A provision is recognised when the Company has a present legal or constructive 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 reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised and are disclosed by way of a note to the accounts.

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Mar 31, 2014

1. CORPORATE INFORMATION

Sahara Housingfina Corporation Limited is mainly engaged in the businessof providing housing finance to individuals and corporate forthe purchase or construction of residential houses.

2. ACCOUNTING POLICIES

i. BASIS OF PREPARATION

The financial statements are based on historical cost convention on an accrual basis (except otherwise stated), in accordance with Generally Accepted Accounting Principles (GAAP), the directions issued by the National Housing Bank (NHB) and in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies act, 1956 ("the Act") read with the General Circular 15/2013 dated September 13,2013 of the Ministry of Corporate Affairs in respect ofsection 133 ofthe Companies Act, 2013.

ii. USE OF ACCOUNTING OF ACCOUNTING ESTIMATES

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptionsthat affectthe balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statements and amounts of income and expenses during the year of account. Examples of such estimates include contract costs expected to be incurred to complete construction contracts, provision fordoubtful debts, income taxes and future obligations under employee retirement benefit plans.

Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

iii. REVENUE RECOGNITION

Interest Income/Feeson Loan Assets is accounted for on accrual basis, other than on Non-Performing Assets, which is accounted foron cash basis in accordancewith the NHB Guidelines.

Repayment of Loan Assets is generally by way of Equated Monthly Installments (EMIs) comprising principal and interest. EMIs commence once the entire loan is disbursed. Pending commencement of EMIs, Pre-EMIs (PEMIs) interest is receivable every month. Intereston loans is computed on a monthly rest basis.

Dividend is accounted on accrual basiswhen the rightto receivethedividend is established.

iv. PROVISIONS ON LOAN ASSETS

Loan Assets are classified as perthe NHB Prudential Guidelines, into performing and non-performing assets. Non- Performing Assets are further classified in tosub-standard, doubtful and loss assets based on criteria stipulated by NHB.

The Company adhered tothe prudential guideline prescribed by the NHB for provisions in respectof non-performing assets and provisions for contingencies on standard assets.

v. FIXED ASSETS

Fixed asset arestated at cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and any attributable costofbringing the assetto itsworking condition for its intended use.

The carrying amounts are reviewed at each balancesheetdatewhen required to assess whetherthey are recorded in excess of their recoverable amounts, and where carrying values exceed this estimated recoverable amount, assets are written down to their recoverable amount.

vi. DEPRECIATION

Depreciation on fixed assets is charged on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956. The depreciation is calculated on pro-rata basis for the assets acquired during the year.

vii. BORROWING COST

Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalized as a part of the cost of such assets till such time the asset is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. Other borrowing costs are recognized as an expense in theyear in which they are incurred.

viii. INVESTMENTS

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and market value. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments. Cost such as brokerage, commission etc., pertaining to investment, paid atthe timeof acquisition, are included in investment cost.

ix. TAXES ON INCOME

Tax expensefortheyear comprisesofthe current and deferred tax. Currenttaxes are measured atthe current rates oftax in accordancewith the provisionsofthe Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that results between taxable profits and profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheetdate.

Deferred tax assets are recognized on unabsorbed deprecation and carry forward of losses under tax laws to the extentthere is virtual certainty thatsufficientfuture taxable incomewill be available againstsuch deferred tax assets can be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statement of Profit & Loss in the year of change.

x. EARNINGS PER SHARE (EPS)

Basic earnings per share are calculated by dividing the net earnings after tax for the year attributable to equity shareholders by theweighted average numberof equity shares outstanding during theyear.

For calculating diluted earning pershare, the numberofshares comprises theweighted averageshares considered for deriving basic earning pershare, and also theweighted average numberofshares, if any which would have been used in the conversion of all dilutive potential equity shares. The numberofshares and potentially dilutive equity shares are adjusted for the bonusshares and thesub-division of shares, if any.

xi. EMPLOYEE BENEFITS

The Company''s contribution to the Provident Fund is deposited with Government administered provident fund and the same has been charged to StatementofProfit & Loss.

Provision for Gratuity has been made on the basis of actuarial valuation carried out by an actuary in accordance with Accounting Standard (AS) 15 (Revised) "Employee Benefits" issued by the Institute of Chartered Accountants ofIndia.

Liability for Leave encashment is provided on the balance leave of eligible employees as at the date of Balance Sheet, in accordancewith company''s policy.

xii. PROVISIONS AND CONTINGENCIES

A provision is recognised whenthe Company has a present legal or constructive obligation as a resultof past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation atthe balancesheetdate. These are reviewed at each balancesheetdate and adjusted to reflect the current best estimates. Contingent liabilities are not recognised and aredisclosed by wayof a note tothe accounts.

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Mar 31, 2012

1. METHOD OF ACCOUNTING

The financial statements are based on historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) comprising of mandatory accounting standards issued by the Institute of Chartered Accountants of India, the directions issued by the National Housing Bank (NHB) and the provision of the Companies Act, 1956.

The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

2. REVENUE RECOGNITION

Interest Income/Fees on Loan Assets is accounted for on accrual basis, other than on Non-Performing Assets, which is accounted for on cash basis in accordance with the NHB Guidelines.

Repayment of Loan Assets is generally by way of Equated Monthly Installments (EMIs) comprising principal and interest. EMIs commence once the entire loan is disbursed. Pending commencement of EMIs, Pre-EMIs (PEMIs) interest is receivable every month. Interest on loans is computed on a monthly rest basis.

Dividend is accounted on accrual basis when the right to receive the dividend is established.

3. PROVISIONS ON HOUSING LOANS

Housing Loans are classified as per the NHB Guidelines, into performing and non-performing assets. Non-Performing Assets are further classified in to sub-standard, doubtful and loss assets based on criteria stipulated by NHB.

4. FIXED ASSETS

Fixed assets are stated at cost, less accumulated depreciation and impairment losses. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

The carrying amounts are reviewed at each balance sheet date when required to assess whether they are recorded in excess of their recoverable amounts, and where carrying values exceed this estimated recoverable amount, assets are written down to their recoverable amount.

5. DEPRECIATION

Depreciation on fixed assets is charged on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956. The depreciation is calculated on pro-rata basis for the assets acquired during the year.

6. INVESTMENTS

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and market value. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments. Cost such as brokerage, commission etc., pertaining to investment, paid at the time of acquisition, are included in investment cost.

7. TAXES ON INCOME

Tax expense for the year comprises of the current and deferred tax. Current taxes are measured at the current rates of tax in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that results between taxable profits and profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed deprecation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against such deferred tax assets can be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statement of Profit & Loss in the year of change.

8. EARNINGS PER SHARE (EPS)

Basic earnings per share are calculated by dividing the net earnings after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For calculating diluted earning per share, the number of shares comprises the weighted average shares considered for deriving basic earning per share, and also the weighted average number of shares, if any which would have been used in the conversion of all dilutive potential equity shares. The number of shares and potentially dilutive equity shares are adjusted for the bonus shares and the sub-division of shares, if any.

9. EMPLOYEE BENEFITS

The Company's contribution to the Provident Fund is deposited with Government administered provident fund and the same has been charged to Statement of Profit and Loss.

Provision for Gratuity has been made on the basis of actuarial valuation carried out by an actuary in accordance with Accounting Standard (AS) 15 (Revised) "Employee Benefits" issued by the Institute of Chartered Accountants of India.

Liability for Leave encashment is provided on the balance leave of eligible employees as at the date of Balance Sheet, in accordance with company's policy.

10. PROVISIONS AND CONTINGENCIES

A provision is recognised when the Company has a present legal or constructive 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 reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised and are disclosed by way of a note to the accounts.

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Mar 31, 2011

1. METHOD OF ACCOUNTING

The financial statements are based on historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) comprising of mandatory accounting standards issued by the Institute of Chartered Accountants of India, the directions issued by the National Housing Bank (NHB) and the relevant provision of the Companies Act, 1956.

The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

2. REVENUE RECOGNITION

Interest Income/Fees on Loan Assets is accounted for on accrual basis, other than on Non-Performing Assets, which is accounted for on cash basis in accordance with the NHB Guidelines.

Repayment of Loan Assets is generally by way of Equated Monthly Installments (EMIs) comprising principal and interest. EMIs commence once the entire loan is disbursed. Pending commencement of EMIs, Pre-EMIs (PEMIs) interest is receivable every month. Interest on loans is computed on a monthly rest basis.

Dividend is accounted on accrual basis when the right to receive the dividend is established.

3. PROVISIONS ON HOUSING LOANS

Housing Loans are classified as per the NHB Guidelines, in to performing and non-performing assets. Non-Performing Assets are further classified in to sub-standard, doubtful and loss assets based on criteria stipulated by NHB.

4. FIXED ASSETS

Fixed assets are stated at cost, less accumulated depreciation and Impairment losses. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

The carrying amounts are reviewed at each balance sheet date when required to assess whether they are recorded in excess of their recoverable amounts, and where carrying values exceed this estimated recoverable amount, assets are written down to their recoverable amount.

5. DEPRECIATION

Depreciation on fixed assets is charged on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956. The depreciation is calculated on pro-rata basis for the assets acquired during the year.

6. INVESTMENTS

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and market value. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments. Cost such as brokerage, commission etc., pertaining to investment, paid at the time of acquisition, are included in investment cost.

7. TAXES ON INCOME

Tax expense for the year comprises of the current and deferred tax. Current taxes are measured at the current rates of tax in accordance with the provisions of the Income Tax Act,1961.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that results between taxable profits and profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed deprecation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Profit & Loss Account in the year of change.

8. EARNINGS PER SHARE (EPS)

Basic earnings per share are calculated by dividing the net earnings after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For calculating diluted earning per share, the number of shares comprises the weighted average shares considered for deriving basic earning per share, and also the weighted average number of shares, if any which would have been used in the conversion of all dilutive potential equity shares. The number of shares and potentially dilutive equity shares are adjusted for the bonus shares and the sub-division of shares, if any.

9. EMPLOYEE BENEFITS

The Company's contribution to the Provident Fund is deposited with Government administered provident fund and the same has been charged to Profit and Loss Account.

Provision for Gratuity has been made on the basis of actuarial valuation carried out by an actuary in accordance with Accounting Standard (AS) 15 (Revised) "Employee Benefits" issued by the Institute of Chartered Accountants of India.

Liability for Leave encashment is provided on the balance leave of eligible employees as at the date of Balance Sheet, in accordance with company's policy.

10. PROVISIONS AND CONTINGENCIES

A provision is recognised when the Company has a present legal or constructive 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 reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised and are disclosed by way of a note to the accounts.

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Mar 31, 2010

1. METHOD OF ACCOUNTING

The financial statements are based on historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) comprising of mandatory accounting standards issued by the Institute of Chartered Accountants of India, the directions issued by the National Housing Bank (NHB) and the provision of the Companies Act, 1956.

The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

2. REVENUE RECOGNITION

Interest Income/Fees on housing loans is accounted for on accrual basis, other than on Non-Performing Assets, which is accounted for on cash basis in accordance with the NHB Guidelines.

Repayment of housing loans is generally by way of Equated Monthly Installments (EMIs) comprising principal and interest. EMIs commence once the entire loan is disbursed. Pending commencement of EMIs, Pre-EMIs (PEMIs) interest is receivable every month. Interest on loans is computed on a monthly rest basis.

Dividend is accounted on accrual basis when the right to receive the dividend is established.

3. PROVISIONS ON HOUSING LOANS

Housing Loans are classified as per the NHB Guidelines, into performing and non-performing assets classified in to sub-standard, doubtful and loss assets based on criteria stipulated by NHB.

4. FIXED ASSETS

Fixed assets are stated at cost, less accumulated depreciation and Impairment losses. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

The carrying amounts are reviewed at each balance sheet date when required to assess whether they are recorded in excess of their recoverable amounts, and where carrying values exceed this estimated recoverable amount, assets are written down to their recoverable amount.

5. DEPRECIATION

Depreciation on fixed assets is charged on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956. The depreciation is calculated on pro-rata basis for the assets acquired during the year.

6. INVESTMENTS

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and market value. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments. Cost such as brokerage, commission etc., pertaining to investment, paid at the time of acquisition, are included in investment cost.

7. TAXES ON INCOME

Tax expense for the year comprises of the current and deferred tax. Current taxes are measured at the current rates of tax in accordance with the provisions of the Income Tax Act,1961.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that results between taxable profits and profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed deprecation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Profit & Loss Account in the year of change.

8. EARNINGS PER SHARE (EPS)

Basic earnings per share are calculated by dividing the net earnings after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For calculating diluted earning per share, the number of shares comprises the weighted average shares considered for deriving basic earning per share, and also the weighted average number of shares, if any which would have been used in the conversion of all dilutive potential equity shares. The number of shares and potentially dilutive equity shares are adjusted for the bonus shares and the sub-division of shares, if any.

9. EMPLOYEE BENEFITS

The Companys contribution to the Provident Fund is deposited with Government administered provident fund and the same has been charged to Profit and Loss Account.

Provision for Gratuity has been made on the basis of actuarial valuation carried out by an actuary in accordance with Accounting Standard (AS) 15 (Revised) "Employee Benefits" issued by the Institute of Chartered Accountants of India.

Liability for Leave encashment is provided on the balance leave of eligible employees as at the date of Balance Sheet, in accordance with companys policy.

10. PROVISIONS AND CONTINGENCIES

A provision is recognised when the Company has a present legal or constructive 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 reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised and are disclosed by way of a note to the accounts.