అకౌంట్స్ గమనికలుFranklin Leasing & Finance Ltd.

Mar 31, 2025

Provisions and Contingent Liabilities

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.A contingent liability is
a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that
an outflow of resources will be required to settle the obligation. There is no contingent liability as at 31st March, 2024.

Segment Reporting

The company operates in segments of investment in securities and extending financial loan services, which are considered by the
management as a single segment for reporting purposes in order to analyse risk-return fundamentals based on internal organisational
structure.

The company has a risk management committee which has the responsibility to identify the risk and suggest the
management the mitigation plan for the identified risks in accordance with the risk management policy of the
Company. The risk management policies are established to ensure timely identification and evaluation of risks, setting
acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits,
improve risk awareness and transparency.

These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and
liquidity risk. The Company seeks to minimise the effects of these risks by using derivative financial instruments,
credit limit to exposures, etc., to hedge risk exposures.

(i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market prices comprise three types of risk: foreign currency risk, interest rate risk,
investment risk.

(ii) Interest rate risk

Arising from:

Interest rate risk stems from movements in market factors, such as interest rates, credit spreads which impacts
investments, income and the value of portfolios.

Measurement,monitoring and management of Risk:

Interest rate risk is measured, monitored by assessment of probable impacts of interest rate sensitivities under
stimulated stress test scenarios given range of probable interest rate movements on both fixed and floating assets
and liabilities.

(iii) Liquidity risk management

The Board of Directors of the Company has an overall responsibility and aversight for the management of all the
risks, including liquidity risk, to which the Company is exposed to in the course of conducting its business. The Board
approves the governance structure, policies, strategy and the risk limits for the management of liquidity risk. The
Board of Directors approves the constitution of the Risk Managament Committee (RMC) for the effective supervision,
evaluation, monitoring and review of various aspects and types of risks, including liquidity risk, faced by the
Company. The meetings of RMC are held at quarterly interval, Further, the Board of Directors also approves
constitution of Asset Liability Committee (ALCO), which functions as the strategic decision-making body for tha asset-
liability management of the Company from risk-return perspective and within the risk appetite and guard- rails
approved by the Board. The main objective of ALCO Is 10 assist the Board and RMC in effective discharge of the
responsibilities of asset liability management, markst risk management, ilquidity and interest rate risk management
and also to ensure adherence to risk tolerance/limits set up by the Board. ALCO provides guidance and directions In
terms of Interest rate, liquidity, funding sources, and investment of surplus funds. ALCO meetings are held once In a
month or more frequently as warranted from time to time. The minutes of ALCO meetings are placed before the RMC
and the Board of Directors In its next meeting for its perusal/ approval/ ratification.

Arising from:

Liquidity risk arises from mismatches in the timing of cash flows, whereas funding risk arises when long term assets
cannot be funded at the expected term resulting in cashflow mismatches.

Measurement,monitoring and management of Risk:

Liquidity and funding risk is measured by identifying gaps in the structural and dynamic liquidity

statements.Monitored by assessment of the gap between visibility of funds and the near term liabilities given under
current liquidity conditions and evolving regulatory directions for NBFCs.

Maturity profile of financial liabilities:

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting
date.

The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing
parties in an orderly market transaction, other than in a forced or liquidation sale.

32 Disclosure as required under RBI notification no. RBI/2019-20/170DOR(NBFC).C.C.PD.No.109/22.10.106/2019-20 dated 13 March 2020

In terms of the requirement as per RBI notification no. RBI/2019-20/170 DOR (NBFC). CC.PD.No.109/22.10.106/2019-20 dated 13th March 2020 on Implementation of Indian
Accounting Standards, Non- Banking Financial Companies (NBFCs) are required to create an impairment reserve for any shortfall in impairment allowances under Ind AS 109 and
Income Recognition, Asset Classification and Provisioning (IRACP) norms (including provision on standard assets). The impairment allowances under Ind AS 109 made by the
Company exceeds the total provision required under IRACP (including standard asset provisioning), as at March 31, 2024 and accordingly, no amount is required to be transferred
to impairment reserve.

Other Statutory Disclosures as per the Companies Act, 2013

- The Company does not have any transaction with companies struck off under Section 248 of the Companies Act, 2013 or
Section 560 of the Companies Act, 1956.

- The title deeds of the immovable properties are held in the name of the Company.

- The Company is not required to incur any CSR expenditure during the year.

- No proceedings have been initiated on or are pending against the company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988 and Rules made thereunder.

- The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

- There is no non-compliance with regard to the number of layers of companies prescribed under clause (87) of section 2 of
the Act read with Companies (Restriction on number of Layers) Rules, 2017.

- The Company has not surrendered or disclosed any income during the current or previous year in the tax assessents under
the Income Tax Act, 1961.

- The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

- The Company has not granted loans or advances in the nature of loans to promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013), either severally or jointly wih any other person.

- The Company has not advanced or loaned or invested funds to any other person or entity,including foreign entity
(Intermediary) with the understanding that the Intermediary shall :

a) directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

- The Company has not received any fund from any person(s) or entity(s),including foreign entities (Funding Party with the
understanding (whether recorded in writingg or otherwise) that the company shall :

a) directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

Impairment of Asset

In the opinion of Management none of the assets have impaired in value as shown in books.

Segment Reporting

The Company is primarily engaged in the business of polyester fabrics. The same is considered as a
business segment and the management consider this as a single reportable segment. Hence, Accounting
Standard (AS) 17 on Segment Reporting are not applicable on the company.

The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary as per the
Schedule III to the Companies Act, 2013. Amounts and other disclosures for the preceding year are included as an integral
part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to
the current year.

For and on Behalf of Board of Directors of Franklin Leasing & Finance Limited

As per our report of even date
For SSRV& ASSOCIATES
Chartered Accountants
FRN 135901W

SUJATA DAS SUN ITHA G U PTA

Managing Director Director

PAN: CLCPD4408G DIN: 07133097

VISHNU KANT KABRA

PARTNER

M. No 403437

UDIN: 25403437BMIOSP4346 RAJU KUMAR RAM RASHMI BHAGAT

Chief Financial Officer Company Secretary

Place : Delhi PAN - AITPR9837M PAN - BINPB8769B

Date : 30.05.2025

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Mar 31, 2024

Provisions and Contingent Liabilities

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.A contingent liability is
a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that
an outflow of resources will be required to settle the obligation. There is no contingent liability as at 31st March, 2024.

Segment Reporting

The company operates in segments of investment in securities and extending financial loan services, which are considered by the
management as a single segment for reporting purposes in order to analyse risk-return fundamentals based on internal organisational
structure.

33 The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other
disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in
relation to the amounts and other disclosures relating to the current year.

The company has a risk management committee which has the responsibility to identify the risk and suggest the
management the mitigation plan for the identified risks in accordance with the risk management policy of the
Company. The risk management policies are established to ensure timely identification and evaluation of risks,
setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their
limits, improve risk awareness and transparency.

These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and
liquidity risk. The Company seeks to minimise the effects of these risks by using derivative financial instruments,
credit limit to exposures, etc., to hedge risk exposures.

(i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market prices comprise three types of risk: foreign currency risk, interest rate risk,
investment risk.

(ii) Interest rate risk

Arising from:

Interest rate risk stems from movements in market factors, such as interest rates, credit spreads which impacts
investments, income and the value of portfolios.

Measurement,monitoring and management of Risk:

Interest rate risk is measured, monitored by assessment of probable impacts of interest rate sensitivities under
stimulated stress test scenarios given range of probable interest rate movements on both fixed and floating assets
and liabilities.

(iii) Liquidity risk management

The Board of Directors of the Company has an overall responsibility and aversight for the management of all the
risks, including liquidity risk, to which the Company is exposed to in the course of conducting its business. The
Board approves the governance structure, policies, strategy and the risk limits for the management of liquidity
risk. The Board of Directors approves the constitution of the Risk Managament Committee (RMC) for the effective
supervision, evaluation, monitoring and review of various aspects and types of risks, including liquidity risk, faced
by the Company. The meetings of RMC are held at quarterly interval, Further, the Board of Directors also
approves constitution of Asset Liability Committee (ALCO), which functions as the strategic decision-making body
for tha asset-liability management of the Company from risk-return perspective and within the risk appetite and
guard- rails approved by the Board. The main objective of ALCO Is 10 assist the Board and RMC in effective
discharge of the responsibilities of asset liability management, markst risk management, ilquidity and interest rate
risk management and also to ensure adherence to risk tolerance/limits set up by the Board. ALCO provides
guidance and directions In terms of Interest rate, liquidity, funding sources, and investment of surplus funds. ALCO
meetings are held once In a month or more frequently as warranted from time to time. The minutes of ALCO
meetings are placed before the RMC and the Board of Directors In its next meeting for its perusal/ approval/
ratification.

Arising from:

Liquidity risk arises from mismatches in the timing of cash flows, whereas funding risk arises when long term
assets cannot be funded at the expected term resulting in cashflow mismatches.

Measurement,monitoring and management of Risk:

Liquidity and funding risk is measured by identifying gaps in the structural and dynamic liquidity
statements.Monitored by assessment of the gap between visibility of funds and the near term liabilities given
under current liquidity conditions and evolving regulatory directions for NBFCs.

Maturity profile of financial liabilities:

The table below provides details regarding the remaining contractual maturities of financial liabilities at the
reporting date.

(iv) Credit risk management
Arising from:

Credit risk is the risk of financial loss arising out of a customer or counterparty failing to meet their repayment
obligations to the company.

Measurement,monitoring and management of Risk:

Credit risk is measured as the amount at risk due to repayment default of a customer or counterparty to the
Company. Various matrics such as EMI default rate, overdue position, collection efficiency, customers non
performing loans, etc. are used as leading indicators to access credit risk.

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Mar 31, 2018

1. Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles (Indian GAAP) and the provisions of the Companies Act 2013.

The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies not specifically referred, are consistently applied from the past accounting periods

a. Terms and rights attached to equity shares The company has issued only one class of equity share having a par value of Rs. 10 per share. Each holder of equity shares is entitled to vote per share. The company declares and pays dividend if any, in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of the entire preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholder.

2. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date.

The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company.

3. Provisions of Accounting Standard (AS) - 17 issued by the ICAI on ‘Segment Reporting’ are not been applicable to the Company.

4. In view of present uncertainty regarding generation of sufficient future income, net deferred tax asset or liability has not been recognized in these accounts on prudent basis.

5. In the opinion of the management, the current assets, loans and advances have a realizable value in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.

6. Related party disclosures/ transactions

There is no transaction entered with the related party covered by the Accounting Standard (AS) - 18 on ‘Related Party Disclosure’ during the period covered by these financial statements.

7. Balance shown under head Sundry Debtors, Creditors and Advances are subject to confirmation._

8. Quantitative Information in respect of Opening Stock, Purchases, Sales and Closing Stock pursuant to Schedule VI of the relevant Companies Act are not applicable.

9. The company is listed with the Bombay Stock Exchanges Ltd. With effect from 9^th April, 2016 and respective stock code is 539839

10. Previous Year’s Figures have been re- arranged or re- grouped wherever considered necessary.

11. Figures have been rounded off to the nearest rupees. Figures in brackets indicate negative (-) figures.

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Mar 31, 2016

1. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date.

The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company.

2. Provisions of Accounting Standard (AS) - 17 issued by the ICAI on ''Segment Reporting'' are not been applicable to the Company.

3. In view of present uncertainty regarding generation of sufficient future income, net deferred tax asset or liability has not been recognized in these accounts on prudent basis.

4. In the opinion of the management, the current assets, loans and advances have a realizable value in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet.

5. Related party disclosures/ transactions

There is no transaction entered with the related party covered by the Accounting Standard (AS) - 18 on ''Related Party Disclosure'' during the period covered by these financial statements.

6. Balance shown under head Sundry Debtors, Creditors and Advances are subject to confirmation.

8. Quantities Information in respect of Opening Stock, Purchases, Sales and Closing Stock pursuant to Schedule VI of the relevant Companies Act are not applicable.

9. The company is listed with the Bombay Stock Exchanges Ltd. With effect from 9th April, 2016 and respective stock code is 539839.

10. Previous Year''s Figures have been re- arranged or re- grouped wherever considered necessary.