Dear Members,

The Board of Directors hereby submits their report of the business and operations of your Company (‘the Company’ or ‘Abhinav Capital Services Limited’) along with the Audited financial Statements, for the financial year ended March 31, 2024.

During the year under review, your company’s total revenue amounted to Rs. 1,529.47 Lakhs compared to Rs. 1,324.28 Lakhs in the previous year. Profit before tax was Rs. 1,088.87 Lakhs compared to Rs. 1,216.31 Lakhs for the previous year. Profit after tax stood at Rs. 926.01 Lakhs compared to Rs. 968.24 Lakhs in the previous year. Net profit of the Company decreased by Rs. 42.23 lakhs due to Financial cost of short term borrowing. Your Company being a Non-Banking Financial Company is required to raise funds for its business requirements. Your Company disbursed loan of Rs. 2,259 .42 lakhs compared to the previous year's figure of Rs. 792.42 lakhs. Company’s investment increased from Rs.3,531.18 Lakhs to 4,844.05 lakhs. Your Company earned interest income of Rs. 473.94 lakhs compared to last year's interest income of Rs. 244.27 Lakhs

Distinguished financial services provider, with local talent catering to local customers. Simplified and prompt loan request appraisals and disbursements. Product innovation and superior delivery. Innovative resource mobilization techniques and prudent fund management practices.

Regulatory restrictions continuously evolving government regulations may Impact operations. Uncertain economic and political environment.

Demographic changes and under-penetration. Large untapped markets. Use of digital solutions for business/collections.

High cost of funds.

Rising Non-Performing Assets (NPAs). Competition from other NBFCs and banks

Your Company has transferred an amount of Rs. 185.20Lakhs to Reserve Fund under Section 45-IC of the RBI Act, 1934.

To conserve capital for the growth of your directors do not recommend any dividend payment at the ensuing AGM to be held on 30^th September 2024.

There are no material changes and commitments, affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of this Report.

The Authorized Share Capital of the Company is Rs.8,00,00,000/- divided in to 80,00,000 Equity Shares of face value of Rs.10/- each. There is no change in the Authorized Share Capital of the Company during the year under review.

The Paid-up Share Capital of the Company is Rs.6,92,46,000/- divided in to 69,24,600 Equity Shares of face value of Rs.10/- each. There is no change in the Paid-up Share Capital of the Company during the year under review.

The Company has not issued any equity shares with differential rights as to dividend, voting or otherwise during the year under review.

a) Buy Back Of Securities

The Company has not bought back any of its securities during the year under review.

The Company has not issued any sweat equity during the year under review.

The Company has not issued any bonus shares during the year under review.

The Company’s equity shares are listed on BSE Ltd. The Company confirmed that the annual listing fees have been paid to the Stock exchange for FY2023-24.

Subsidiaries, Joint Ventures And Associate Companies

The Company does not have any Subsidiary, Joint venture or Associate Company.

Your Company’s Capital Adequacy Ratio as of 31^st March 2024, stood at 3.50% of the aggregate risk-weighted assets on the balance sheet and risk-adjusted value of the off-balance sheet items, which is well above the regulatory minimum of 10% and out of CRAR the tier I capital stood at 3.41% and tier II capital at 0.09%

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mrs. Ritu Mohatta(DIN:08860676)Director is retiring by rotation at the ensuing Annual General Meeting of the Company and is eligible for re-appointment & she has offered herself for re-appointment.

Appropriate resolutions for the appointment/re-appointment of Directors are being placed for your approval at the ensuing Annual General Meeting.

The Company has received declaration from all the Independent Directors of the Company confirming that they meet with the criteria of independence as prescribed under sub-section (6) of Section 149 of the Companies Act, 2013

In compliance with the requirements of the Listing Regulations , the Company has put in place a Familiarization Program for the Independent directors to familiarize them with the Company, their roles, rights, responsibilities in the Company, the nature of the industry in which the Company operates, business model etc.

The Independent Directors met once during the year under review. The Meeting was conducted in an informal manner without the presence of the Chairman, the Non-Executive, Non-Independent Directors and the Chief Financial Officer.

Policy for determining qualifications of directors and Policy for remuneration of Directors approved by the Nomination and Remuneration Committee of the Board of Directors. The salient features and changes to the policy on directors’ appointment and remuneration, including the criteria for determining qualifications, positive attributes, independence of a director and other matters, as required under sub-section (3) of section 178 of the Act form a part of the Corporate Governance Report. The policy is available.

Performance evaluation of the Board as a whole, individual directors and of the Board Committees, was carried out by Board of Directors, as suggested by the Nomination and Remuneration Committee.

The evaluation was done by the framework and criteria laid down by the Committee. Further, at a separate meeting, the Independent Directors evaluated the performance of Non-Independent Directors, the Board as a whole and of the Chairman of the Board.

The manner of evaluating Board of Directors performance and matters incidental thereto is detailed in the Corporate Governance Report, which forms part of this report. The Board of Directors was satisfied with the evaluation process and expressed satisfaction over the performance of individual directors, the Board as a whole, and the Board Committees, as Revealed by the evaluation reports.

Your Company is a non-deposit taking non-banking financial company registered with the Reserve Bank of India ("RBI") and classified as NBFC Middle Layer under RBI ‘Master Direction- Reserve Bank of India (Non- Banking Financial Company Scale Based Regulation) Directors, 2023.

The Company continues to comply with all the applicable regulations/ guidelines/ directions prescribed by RBI, from time to time. In terms of paragraph 9BB of the NBFC Regulations, the particulars as applicable to the company are appended to the Balance sheet.

During the year under review, Five Board meetings were held, details of which are provided in Corporate Governance Report.

Public Deposits

The Company has not taken any deposits from the public for which information is required to be given in the Report.

The company is utilizing electricity optimally.

The company has not purchased or imported any new technology. Hence, not applicable.

Foreign Exchange Earnings and Outgo: NIL

During the year under report, your Company has not employed any person who was in receipt of remuneration in excess of the limits specified under Section 197 of the Act read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

The Company is not having unclaimed suspense account as required under schedule V of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Corporate Social Responsibility (CSR) Policy

Your Company has formulated a Corporate Social Responsibility Policy with the objective "give back to the society". In line with this approach your company has under taken social activities such as promoting education, hygiene, preventive health care, animal welfare, eradicating of hunger, poverty &malnutrition , making available safe drinking water, education to the poor, old age healthcare, environment sustainability, rural sports and helping other organization through donations and active participation of directors of the company.

Pursuant to the provisions of Section 135 and Schedule VII and related rules of the Companies Act, 2013, the Corporate Social Responsibility (CSR) committee of the Board of Directors has been formed consisting of the following members namely Mr. Chetan Karia, Mrs. Ritu Mohatta& Mr. Nasir Shaikh to recommend the policy on Corporate Social Responsibility and monitor its implementation.

Your Company initially decided to focus on education, health and animal welfare as key areas which required attention. The objective is to make an impact on the quality of life of the common people in its neighborhood. Corporate Social Responsibility Report has been included in this report as "Annexure A".

M/s S C Mehra & Associates LLP, Chartered Accountants (ICAI Registration No.: 106156W/ W100305) are the Statutory Auditors of the Company. Their appointment is up to the conclusion of AGM to be held in FY 2027 of the Company.

Further, the report of the Statutory Auditors is provided in the financial section of the Annual Report. The Statutory Auditor’s report does not contain any qualifications, reservations, adverse remarks or disclaimers.

The internal Audit function provides an assurance to the Audit Committee/ Board of Directors and the senior management on the quality and effectiveness of the Company’s internal controls, risk management, and governance-related systems and processes.

At the beginning of each financial year, an audit plan is rolled out after the approval of the Audit Committee. The Audit Committee on a quarterly basis reviews the internal audit reports based on the approved plan, which include significant audit observations and action taken reports.

Your Company has appointed Internal Auditor to perform Internal Audit as per the scope approved by the Audit Committee of the Company.

Pursuant to provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24Aof the Listing Regulations, Board had appointed M/s. D G Prajapati & Associates, Practicing Company Secretaries to undertake the Secretarial Audit of the Company.

Secretarial Audit Report is annexed to this report as "Annexure B". There are no qualifications or reservations or adverse remarks in the Secretarial Audit Report. The Secretarial Audit Report is self-explanatory and does not call for any further comments.

M/s. D G Prajapati & Associates, Practicing Company Secretaries, have issued Secretarial Compliance Report for the year ended31^stMarch 2024 confirming compliance of SEBI Regulations /guidelines / circulars issued thereunder and applicable to the Company. There are no observations or adverse remarks in their report.

The Company has devised proper system to ensure compliance with the provisions of all applicable Secretarial Standards issued by the Institute of Company Secretaries of India & that such system are adequate & operating efficiently.

Extract of Annual Return as per Section 92 (3) of Companies Act 2013

A copy of the annual return as provided under section 92(3) of the Act, in the prescribed form, which will be filed with the Registrar of Companies/MCA, is hosted on the Company’s website and can be accessed at https://www.abhinavcapital.com.

As required under the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, management discussion and analysis report are annexed to this Report as Annexure- C.

The observations made by the Auditors in their Report read with relevant notes given in the Notes to Accounts are self-explanatory and therefore, do not require any comments from your Directors pursuant to Section 134 (3) (f) of the Companies Act, 2013.

Pursuant to the requirement under section 134(5) of Companies Act, 2013, with respect of Director’s responsibility statement, it is hereby confirmed that:

i) in the preparation of the account for the financial year ended 31^stMarch 2024; the applicable accounting standards had been followed along with proper explanation relating to material departure.

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

iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

iv) the Directors had prepared the accounts for the financial year ended 31st March 2024 on a ‘going concern’ basis.

v) the Directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

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

The Audit Committee Member consists of Mr. Girish Desai, Mr. Chetan Karia & Ms. Gayatri Sonavane. The committee inter-alia reviews the internal control system & compliance of various regulations. The committee also reviews at length financial statements before they are placed before the Board.

Related Party Transactions

All the Related Party transactions ("RPTs") entered into during the financial year were in accordance with the Company’s Policy on Related Party Transactions, on an arm’s length basis and in the ordinary course of business.

Pursuant to Regulation 23(3) of the Listing Regulations and Rule 6A of the Companies (Meetings of Board and its Powers)Rules, 2014, the Audit Committee granted omnibus approval to the transactions likely to be entered into by the Company with related parties during the year and are of repetitive nature. A statement of all the RPTs effected is presented before the Audit Committee on a quarterly basis. Members may refer to Note No. 26 to the Financial Statement which sets out related party disclosures pursuant to IND AS-24.

During the year, the Company had not entered into any transactions with related parties, which could be considered as material in accordance with the Company’s Policy on materiality of RPT or which are required to be reported in Form AOC-2 in terms of Section 134(3)(h) read with Section 188 of the Act and Rule 8(2) of the Companies(Accounts) Rules, 2014.

The Company has borrowed Rs. 37,50,00,000/- during the FY 2023-24.

The Company has not accepted any fixed deposit during the year under review.

The Company has complied with the applicable provisions of secretarial standards issued by The Institute of Company Secretaries of India.

The Company does not fall under the criteria of applicability of Risk Management Policy.

Pursuant to section 186(11) of the Companies Act, 2013 (‘the Act’), the provisions of section 186 (4) of the Act requiring disclosure in the financial statements of the full particulars of the loans made and guarantees given or securities provided by a Non-Banking Financial Company in the ordinary course of its business and the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient of the loan or guarantee or security are exempted from disclosure in the Annual Report.

Further, under the provisions of section 186 (4) of the Act, the details of investments made by the Company are given in the Notes to the Financial Statements.

The Company’s Internal Control procedure which includes Internal Financial Controls ensures compliance with various policies, practices & Statutes &keeps in view the Company’s pace of growth.

The Board of Directors has carried out an annual evaluation of its performance, its various committees and individual directors pursuant to the provisions of the Act and the Corporate Governance requirements as prescribed under the Listing Regulations. The performance of the Board was evaluated by the Board after seeking inputs from all the directors on the basis of various criteria such as Board Composition, process, dynamics, quality of deliberations, strategic discussions, effective reviews, committee participation, governance reviews etc.

To create enduring value for all stakeholders and ensure the highest level of honesty, integrity and ethical behavior in all its operations, the company has formulated a Vigil Mechanism named as Abhinav Whistle Blower Policy in addition to the existing code of conduct that governs the actions of its employees.

The Vigil Mechanism as envisaged in the Companies Act, 2013 and the Rules prescribed there under and the Listing Regulations is implemented through the Whistle Blower Policy, to provide for adequate safeguards against the victimization of persons who use such mechanism and make provision for direct access to the Chairman of the Audit Committee.

The Whistle Blower Policy provides for protected disclosure and protection to the Whistle Blower. Under the Whistle Blower Policy, the confidentiality of those reporting violation(s) is protected, and they are not subject to any discriminatory practices. Whistle Blower Policy, the confidentiality of those reporting violation(s) is protected, and they are not subject to any discriminatory practices.

The Company has adopted Code of Conduct for the Prevention of Insider Trading with a view to regulate trading in Securities by the Directors and Designated employees of the Company. The Company has also taken software containing Structural Digital Database for maintaining names of persons with whom unpublished price sensitive information is shared.

The code requires pre-clearance for dealing in the Company’s shares and prohibits the purchase or sale of

Company shares by the Directors and the Designated Employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the trading window is closed. The Board is responsible for the implementation of the Code. The Code is available on the website of the Company at https://www.abhinavcapital.com.

The maintenance of Cost records as specified by the Central Government under sub section (1) of section 148 of the Companies Act, 2013 is not applicable to the Company and accordingly such accounts and records are not made and maintained by the Company.

The Company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of women at workplace (prevention, prohibition and Redressed Act, 2013.

The Company has zero tolerance towards Sexual Harassment at the works place & has adopted a policy on Prevention, Prohibition & Redressed on works place in line with the act. The Company has not received any complaints of sexual harassment during FY 2023-24.

The Company has taken adequate steps to ensure that the conditions of Corporate Governance as stipulated in Listing Regulations of the Stock Exchange are complied with. A detailed report on Corporate Governance has-been included in this report as "Annexure D".

The Company has also obtained a certificate from the auditors of the company regarding compliance of conditions of Corporate Governance.

Further, Management Discussion and Analysis report is also annexed to this report.

There are no Significant Material Orders passed by the Regulators/ Courts/ Tribunal which would impact the going concern status of the company and its future operations.

During the year under review, no frauds have been reported by the Auditor (Statutory Auditor, Secretarial Auditor) to the Audit Committee/ Board, under section 143(12) of the Act.

Statutory Disclosures i. Pursuant to the provisions of Section 134(3)(a) and Section 92(3), the Annual Return of the Company in the prescribed Form MGT-7 is available on the website of the Company. ii. Disclosures in terms of Section 197(12) read with Rule 5(1) of the Companies (Appointment and

Remuneration of Managerial Personnel) Rules, 2014 are given in ‘Annexure E’. iii. Declaration pursuant to Schedule V of the Listing Regulations has been provided in "Annexure F" iv. Compliance Certificate as required under Regulation 17(8) of SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 is also provided in "Annexure F"

Your directors thank the clients for their confidence in the Company, which has enabled the Company to reach to a new level of customer satisfaction. The Board places acknowledgment to the employees for their teamwork and professional approach for the Company’s image. Your directors would like to express their gratitude for the continuous support and guidance received from Company’s lenders, bankers, the

Government departments, and SEBI and Stock Exchange officials.

For and on behalf of the Board of Directors,

Place: Mumbai

Date: 14/08/2024