BRD Securities LTD Audit Report 2021 22

BRD SECURITIES LIMITED
U67120KL1993PLC007022
BOARD OF DIRECTORS
WILLIAM VARGHESE CHUNGATH CHERU (DIRECTOR&CHAIRMAN)
PORATHUR ANTONY DEVASSY (DIRECTOR)
CHERUVATHOOR KURIAPPAN APPUMON (DIRECTOR)
JOJO JOSEPH NJEZHUVINKEL (DIRECTOR)
ARIMBOOR CHERUKUTTY SUNITHA (DIRECTOR)
ROSHINI SIMON (DIRECTOR)
MATHEW JOSE (INDEPENDENT DIRECTOR)
SUNNY MATHEW (INDEPENDENT DIRECTOR)
BAHULEYAN RAMAN NALUPURAKKAL (INDEPENDENT DIRECTOR)
KEY MANAGERIAL PERSONNEL (KMPs)

ANAND KUNNISERRY(CHIEF EXECUTIVE OFFICER)
DILEESHKUMAR V (CHIEF FINANCIAL OFFICER)
STATUTORY AUDITOR
DAMODARAN P NAMBOODIRI
REGISTERED OFFICE
Bethany Complex, Kunnamkulam, Thrissur- 680503
Phone: 04885-228500
Email: brdsecurities@brdgroup.net
Website: www.brdgroup.net
1
DIRECTORS’ REPORT
To
The Members of BRD Securities Limited
Dear Members,
Your Board is glad to present the 29th Annual Report of the Company together with the Audited Financial Statements for
the year ended 31st March 2022.
COMPANY OVERVIEW
BRD Securities Limited is a leading NBFC having Asset Finance as its core niche. The Registered Office of the Company is
situated at Kunnamkulam, Kerala. BRD group is headed by Shri. C.C. William Verghese, whose constant and consistent
efforts, coupled with the daring and positive attitude has made the Company more visible, audible and acceptable to all.
The never ending passion for goals of the Chairman, who leads the BRD team from the front, is the real secret behind the
success and rising of the group to the present reckoning. Under his leadership, the Company is emerging as one of the
prominent NBFC in Kerala.
FINANCIAL HIGHLIGHTS:
A summary of the Company’s Standalone Financial Results for the Financial Year 2021-22 is as under:
Particulars Year ended 31.03.2022 Year ended 31.03.2021
Revenue from operations 10, 94, 08, 272 13, 69, 84, 929
Other Income 41, 96, 32, 02 5, 59, 45, 164
Total Revenue 15, 13, 71, 473 19, 29, 30, 092
Expense 30, 14, 65, 715 34, 79, 40, 114

Profit/(Loss) before taxation (15, 00, 94, 242) (15, 50, 10, 021)
Less : Tax Expense (14, 38, 10, 00) (69,66,700)

Profit/(Loss) after tax (13, 57, 13, 242) (14, 80, 43, 321)
STATE OF AFFAIRS OF THE COMPANY:
For NBFCs in general, the year 2021-22 the year under review was not as expected. FY 2021-22 was once again dominated
by the COVID-19 pandemic as new waves of infection swept across countries. The pandemic induced disruptions
continued in FY 2021-22 as well. The first half of FY 2021-22 witnessed a significant impact of the deadly second (Delta)
wave of the pandemic impacting performance of both business and debt management services. The third wave
(Omicron) strain was more transmissible; however, its impact on companies operation was also not limited. Drawing
from its experience of FY 2019-20 and the fact that the lockdowns were curtailed in FY 2021-22 , the Company remained
2
open for business and Due to the uncertainties of Covid-19 Pandemic and adverse business conditions, the Company has
reported a Net Loss of Rs. 13.57 Crore during the FY 2021-22.
BUSINESS PLAN
The Board is of the opinion that the Finance Business in the current scenario is not viable and very risky. The Board
proposes to stop further finance business with the approval of RBI and Company will concentrate to recover dues and
clear liabilities. It is also proposed to commence simultaneously the business of investment in securities, as authorized by
the Memorandum of Association of the Company. This proposal is for the best interest of all shareholders of the Company
and as well as all other Stakeholders.
ASSET QUALITY
It is a well-known fact that Banking and Financial Service Industry has been facing multiple challenges over the last few
years on account of worsening asset quality, slowing credit growth and liquidity worries. We have been able to maintain
our stature in respect of asset quality and liquidity in line with the previous year. We are also encouraging collections
through digital mode including NACH, e-NACH, Payment Gate way and virtual accounts pay for EMI loans in order to
ensure the collection process at our branches in a smooth manner.
CAPITAL
There were no changes in the share capital of the Company during the Financial Year. During the year under review the
Company did not issue any further capital.
DIVIDEND & RESERVES:

Due to loss incurred by the Company, your Directors do not recommend any dividend for the current financial year.
DEPOSITS
During the year under review, the Company has not accepted any deposit from the public falling within the ambit of
Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 as amended thereof.
ANNUAL RETURN:
In compliance to provisions of section 134 (3) (a) of the Companies Act, 2013 copy of the Annual Return referred to
subsection (3) of the section 92 of the Act as prepared in Form No. MGT.7 will be placed on the website
(www.brdgroup.net ) of the Company .
LOANS AND INVESTMENT

The Company has not given any loans or advances other than those in the ordinary course of its business as an NBFC. The
Company has complied with the provisions of Section 186 of the Companies Act, 2013.
RELATED PARTY TRANSACTIONS

All transactions or arrangements with related parties referred to in Section 188(1) of the Act, entered in to during the year
were on arm’s length basis or were in ordinary course of business. Wherever required, the Company has obtained the
approval of the Shareholders. The Particulars of Contracts or Arrangements with Related Parties as referred in Section
188(1) of the Act is attached to this Report in Prescribed Form AOC-2 as Annexure-1.
HUMAN RESOURCE
The total employee strength of the Company as on 31st March 2022 stood at 171. Company is taking consistent efforts in
improving the skill sets of its employees at all levels by imparting training on a continuous basis.
None of the employee is in receipt of remuneration attracting the disclosure under Rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 and hence no report is attached.
3
NUMBER OF MEETINGS OF THE BOARD
Board has met 9 times during the year. A summary of the Meetings and attendance of Board, the Audit Committee, the
Nomination and Remuneration Committee, Stakeholders Relationship Committee is given as follows;
Attendance
Directors
Stakeholders Corporate Social
Board Audit Nomination Relationship Responsibility
Committee Committee Committee Committee
Total Meetings during the year 9 3 3 1 3
William Varghese C.C 8 3 2 1 3
Kochumathew C.J 2 N.A N.A N.A N.A
Appumon C.K 9 N.A N.A N.A N.A
Porathur Antony Devassy 9 N.A N.A 1 N.A
Jojo Joseph Njezhuvinkel 9 N.A 2 N.A N.A
Surendran T.K 2 N.A N.A N.A N.A
Arimboor Cherukutty Sunitha 6 N.A N.A N.A N.A
Joy Gopan 4 N.A N.A N.A N.A
Roshini Simon 6 N.A N.A N.A N.A
Mathew Jose 9 3 2 1 3
Bahuleyan.N.R 9 3 2 1 3
Sunny Mathew 9 3 2 1 3
4
RESERVE BANK OF INDIA (“RBI”) GUIDELINES
The Company continues to comply with all applicable regulations of RBI.
CORPORATE SOCIAL RESPONSIBILITY

The Board had, on the recommendation of the CSR Committee, formulated a Corporate Social Responsibility Policy (CSR
Policy) .
CHANGE IN DIRECTORS & KMPS
1A: : Appointment of Mr. Dileeshkumar V as Chief Financial Officer of the Company with effect from 05 th November 2021
onwards.
1B: Appointment of Mr. Anand Kunnissery as Chief Executive Officer of the Company with effect from 30 th November
2021 onwards.
1C: Resignation of Mr. Rupesh Haridas from the post of Company Secretary of the Company with effect from 30 th
November 2021 onwards.
EVALUATION OF PERFORMANCE OF DIRECTORS

The Nomination Committee has been carrying out the annual performance evaluation of Board and its Committees, Key
Managerial Personnel and Senior Management Team.
DECLARATION OF DIRECTORS INDEPENDENCE

Based on the declarations received from the Independent Directors, we state that the Independent Directors of the
Company continues to be Independent Directors and there are no circumstances suggesting the loss of their
independence with reference to the Company.
DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to Sections 134(3) (c) and 134(5) of the Act with respect to Directors Responsibility Statement, the Directors of
the hereby confirm, in the preparation of annual accounts for the year that;
i. the applicable accounting standards have been followed and proper explanations have been made in notes to accounts
for material departures, if any;
ii. the accounting policies have been selected and applied consistently and reasonable and prudent judgments and
estimates have been made so as to give a true and fair view of the state of affairs of the Company as at 31st March 2022
and Statement of the Profit and Loss of the Company for the year ended on that date;
iii. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities;
iv. the annual accounts have been prepared on a going concern basis;
v. internal financial controls to be followed were laid down, which were adequate and were operating effectively during
the year;
vi. Proper systems had been devised to ensure compliance with provisions of applicable laws, which were adequate and
were operating effectively during the year.
5
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO
The Company is carrying on business of lending. As an NBFC the conservation of energy and technology absorption have
limited applications only. To the extent possible at our end, the Company is using energy efficient equipment and
electronic items which will reduce the consumption of energy. There was no earning or outgo in foreign exchange during
the year.
COMMITTEES
Audit Committee
In line with the provisions of Section 177 of the Companies Act, 2013 and of the Guidelines issued by Reserve Bank of
India the Board has constituted an Audit Committee consisting the following members.The Composition of the Committee
as on 31st March 2022 is as follows;
1. Shri. CS Bahuleyan Raman Nalupurakkal

2. Shri. William Varghese Chungath Cheru
3. Shri. Mathew Jose
4. Shri. Sunny Mathew
During the year under review there were no situations where the Board has not accepted recommendation of the Audit
Committee
Nomination and Remuneration Committee

The Company has constituted the Nomination and Remuneration Committee of as per the Provisions of Section 178 of the
Companies Act, 2013 and the Guidelines issued by the Reserve Bank of India. The Composition of the Committee as on
31st March 2022 is as follows;
1. Shri. Jojo Joseph Njezhuvinkel

4. Shri. Bahuleyan Raman Nalupurakkal
Stakeholders Relationship Committee

As per Section 178(5) of the Companies Act, 2013 and the Guidelines issued by Reserve Bank of India, the Company has
constituted Stakeholders Relationship Committee, consisting of the following members as on 31st March 2022;

4. Shri. Porathur Devassy Antony
Corporate Social Responsibility Committee

As per Section 135 of the Companies Act, 2013, the Company has constituted Corporate Social Responsibility Committee
consisting the following members as on 31st March 2022

4. Shri. Adv. Sunny Mathew
6
POLICIES
Vigil Mechanism/Whistle Blower Policy
The Company, as part of the “Vigil Mechanism” has in place a ‘Whistle Blower Policy’ to deal with instances of fraud and
mismanagement, if any. The Whistle Blower Policy has been approved by the Board and has been placed on the website
of the Company. This Vigil Mechanism of the Company is over seen by the Audit Committee and provides adequate
safeguard against victimization of employees and directors who avail of the vigil mechanism and also provide direct
access to the Chairperson of the Audit Committee in exceptional circumstances.
Policy on Directors Appointment

In respect of Independent Directors, the remuneration committee of the Board shall evaluate the independence of
directors based on the criteria set out under Section 149(6) of the Companies Act, 2013, and the rules made thereunder.
The underlying principles of the Company are that the Independent Directors shall not have any pecuniary relationships
beyond the permissible limits with the Company and that they are not connected with the Promoters or KMPs of the
Company.
Additional information required under Secretarial Standards on General Meetings in respect of Directors seeking
appointment at this Annual General Meeting is included as Annexure-2 to the Boards Report.
Risk Management
The Company is regularly evaluating the elements of risks in the various operational aspects of the Company and will be
reviewed periodically including presentations to the Audit Committee. It has also constituted Risk Management
Committee, Asset Liability Committee, Credit and Investment Committee and Information technology and security
committee including statutory committees as per RBI norms. Based on such reviews and assessments, remedial measures
are being taken.
Policy on Fair Practice Code and Customer Grievance Redressal

The Company has framed the policy on Fair Practice Code and Customer Grievance Redressal and the Policy is dealing
with the fair practices which the company wishes to adopt in the conduct of its business and the matters relating to
dealing with the Redressal of Customer Grievances.
Investment Policy
The Company has framed an Investment Policy to serve the guiding principles in matters relating to investments by the
Company either for parking surplus liquidity temporarily or making strategic investments in other business opportunities.
Interest Rate Policy

The Company has framed an interest rate policy and the policy acts as the guiding principles for determination of interest
and other charges to be levied by it while transacting its business.
Policy on Resource Mobilization

The Board has put up a policy on Resource Mobilization, which shall serve as the guiding principles in matters relating to
mobilization of resources for the Company to meet its long term and short term objectives and also to fund for its fixed
and working capital requirements.
Loan Policy
The Board has put up necessary updation in the Loan Policy which shall at as a guiding post for the top management of
the Company in conducting the business of lending within acceptable risk tolerances and thus ensure the evolution of
sustainable business model resulting in both long term profitability and value creation for its stake holders.
7
ALM Policy
As a measure of managing the risk related to Asset Liability Mismatch, the Board has put in place a policy for continuous
monitoring of the risk related to interest rate sensitivity and liquidity management so that the Company will be able to
detect possible mis-matches at an early stage and to take counter measures.
Secretarial Audit Report

The provision of Secretarial Audit under Section 204 of the Companies Act 2013 is not applicable to the Company.
Statutory Auditors:
The present Statutory auditors of the company, Shri. Damodaran P, ACA (Membership No. 221178), Paravattathu Mana,
Karthika, Urakam P O, Thrissur, Kerala- 680562, who were appointed to hold office till the conclusion of the Annual
General Meeting held for the financial year 2021-22, are not eligible to continue the office , hence the Board recommend
to appoint M/s B Raj & Co , Chartered Accountants ,(FRN- 003369S) # 61 Sir Shanmugam Road , R S Puram , Kovai- 641012
, T N, as the Statutory auditor of the Company to hold office from the conclusion of this meeting until the conclusion of
the Annual General Meeting to be held for the financial year 2026-27 on such remuneration as may be determined by the
Board of Directros , They have confirmed their elgibility to the effect that their appointment , if made , would be within
the prescribed limits under the Act and that they are not disqualified .
Cost Auditors:
The company is not required to appoint a Cost Auditor pursuant to the provisions of the Companies Act, 2013.
Explanation or Comments on qualifications, reservation or adverse remarks or disclaimers made by the Statutory
Auditors of the Company
Auditors Report identifies the following material weakness during the FY 2021-22
“Referring to RBI Master Direction RBI/DNBR/2016‐17/44 ‐ DNBR.PD.007.03.10.119/2016‐17 Para No 5. In exercise of the

powers conferred under clause (b) of sub‐section (1) of section 45–IA of the RBI Act and all the powers enabling it in that
behalf, the Bank, hereby specifies two hundred lakh rupees as the Net Owned Fund (NOF) required for a nonbanking
financial company to commence or carry on the business of non‐banking financial institution, except wherever otherwise a
specific requirement as to NOF is prescribed by the Bank .The Net Owned Fund of the company as on the Balance sheet
date is less than the minimum NOF stipulated, which is a nonconformity from the RBI Master Direction “
In order to bring the NOF as stipulated, the company has intensified the recovery process which is apparent from the cash
inflows.Overdue collections are further increased in the current year.
“Referring to RBI Master Direction RBI/DNBR/2016‐17/44 ‐ DNBR.PD.007.03.10.119/2016‐17 Para No 6. The leverage ratio
of an applicable NBFC (except NBFC‐MFIs and NBFC‐IFCs) shall not be more than 7 at any point of time, with effect from
March 31, 2015. The Leverage Ratio of the company as on the Balance sheet date is more than 7 which is a nonconformity
from the RBI Master Direction.”
The Company is receiving expression of interests from prospective investors. This will be pursued further subject to the
approval from the regulators. The receipt of additional funds on account of further capital issue will improve the NOF to
the desired level. This would naturally bring the leverage ratio to be below 7 .
Disclosures under Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013:
The Company has in place an Anti-Sexual Harassment policy in line with the requirements of the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
During the financial year under review, the Company has not received any complaints with allegations of sexual
harassment.
8
Significant and Material Orders passed by Regulators or Court
There are no material order passed by Regulators/Courts during the FY 2021-22, which could impact the going concern
status of the Company and its future operations. However SEBI has passed an Order against BRD Securities Limited on 25th
May 2021. We have challenged this Order by filing an appeal before Hon.SAT, Mumbai on 22 nd July 2021. Personal hearing
was happened on 22nd July 2021 and has given an opportunity to SEBI for filing their reply and thereafter for submission
of rejoinder by the Company. SEBI has filed their reply on 28th September 2021 and Company has filed our rejoinder on
28th October 2021. The matter is under the consideration of SAT and the hearing of the same is in progress and further
proceedings are subject to SAT order. Meanwhile a stay order has passed by Hon. SAT on 26.11.2021 against the order of
SEBI directing the effect and operations of the same in relation to the refund of the monies to the shareholders. And the
same stay order is extended.
Acknowledgement
The Board expresses its deepest appreciation and gratitude for the guidance and co-operation extended to the Company
by RBI, Statutory Authorities, Banks, NBFCs and the subscribers of other debt instruments for their faith reposed on the
Company and extending credit facilities without which the growth and development of the Company would not have
been possible.
The Board thanks the auditors of the Company for their guidance.
Special thanks to the employees of the Company who contributed their skills, enthusiasm, commitment and dedication
which have over the years helped the Company to earn prominence. The Board is grateful to the shareholders, for their
continuing patronage.
By order of Board of Directors

For BRD Securities Limited
Sd/-
William Varghese Chungath Cheru
(Chairman & Director)
DIN: 00074708
Kunnamkulam
25-08-2022
9
Annexure I
BRD Securities Limited
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred
to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms-length transactions under third
proviso thereto
1. Details of contracts or arrangements or transactions not at arm’s length basis

Sl.
Particulars Details
No.
a. Name(s) of the related party and nature of relationship Nil
b. Nature of contracts/ arrangements/ transactions Nil
c. Duration of the contracts / arrangements/ transactions Nil

d. Salient terms of the contracts or arrangements or transactions including the value, if any Nil
e. Justification for entering into such contracts or arrangements or transactions Nil
f. Date(s) of approval by the Board Nil
g. Amount paid as advances, if any: Nil

Date on which the special resolution was passed in general meeting as required under
h. Nil
first proviso to section 188
2. Details of material contracts or arrangement or transactions at arm’s length basis
2(A).
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Kochumathew C.J
b. Nature of contracts/ arrangements/ transactions : Remuneration to directors appointed in office

or place of profit
c. Duration of the contracts / arrangements/ transactions : Subject to decision of the Board
d. Salient terms of the contracts or arrangements or transactions including the value, if any:
Rs. 2,10,494/-
e. Date(s) of approval by the Board, if any:
f. Amount paid as advances, if any:
2(B).
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Surendran T K
10
b. Nature of contracts/ arrangements/ transactions : Remuneration to directors appointed
in office or place of profit

Rs. 1,89,419/-
2(C).
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Joy Gopan
Rs. 3,70,274/-
2(D).
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Appumon C K
Rs. 2,58,849/-
2(E)
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Jojo N.J
Rs. 2,08,280/-
11
2(F)
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Paul K.T
b. Nature of contracts/ arrangements/ transactions : Remuneration to CEO (KMP)
Rs. 5,82,775/-
2(G)
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Rupesh Haridas
b. Nature of contracts/ arrangements/ transactions : Remuneration to CS (KMP)
Rs. 4,57,255/-
2(H)
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : BRD Motors Limited
b. Nature of contracts/ arrangements/ transactions : ICL Paid
d. Salient terms of the contracts or arrangements or transactions including the value, if any: Rs.40,00,000/-

2(I)
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : BRD Motors Limited
b. Nature of contracts/ arrangements/ transactions : Interest on ICL paid
d. Salient terms of the contracts or arrangements or transactions including the value, if any: Rs.3,288/-
12
2.(J).
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Anand Kunnissery
b. Nature of contracts/ arrangements/ transactions : Remuneration to CEO (KMP)
Rs.1,82,930/-
2(K).
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Dileesh Kumar. V
b. Nature of contracts/ arrangements/ transactions : Remuneration to CFO (KMP)
Rs.1,73,966/-
2(L).
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Roshini Simon
Rs. 66,000/-
2(M).
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Arimboor Cherukutty Sunitha
13
Rs.66,200/-
2(N).
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Vanchinad Finance (P) Ltd
b. Nature of contracts/ arrangements/ transactions : ICL paid
Rs.13,00,00,000/-
2(O).
Sl.
Particulars
No.
a. Name(s) of the related party and nature of relationship : Vanchinad Finance (P) Ltd
b. Nature of contracts/ arrangements/ transactions : Interest on ICL paid
Rs.18,61,647/-
For and on behalf of the Board of Directors

For BRD Securities Limited
Sd/-
WILLIAM VARGHESE CHUNGATH CHERU
(Chairman & Director)
DIN: 00074708
Place: Kunnamkulam
Date: 25-08-2022
14
Annexure-2
Additional information required under Secretarial Standards on General Meetings with respect to Directors
seeking appointment-
Name of Director Mr. Porathur Antony Devassy

Category & proposed Designation Director
Age 67
Date of first appointment on Board 06/10/2001
Qualifications SSLC
Experience More than 21 years of experience in top

management/senior management positions in various
companies
Shareholding in the Company 125311 shares@ 10 each
Number of meeting of the Board attended during
the Financial period 2021-22 Board meetings held 9
during her tenure
Directorships in other Companies. 1.B R D FINANCE LIMITED
2.BRD DEVELOPERS AND BUILDERS LIMITED
3.BRD CAR WOLRD LIMITED
4.BRD KURIES (INDIA) LIMITED
5.BRD CHITS LIMITED
Relationship with other Directors / KMP of the Nil

Company.
Terms and Conditions of appointment/ Non-Executive Director

reappointment.  Liable to retire by rotation
Remuneration sought to be paid. Nil

Remuneration last drawn during Financial period Nil
2021-2022.
15
Annexure-2
Additional information required under Secretarial Standards on General Meetings with respect to Directors
seeking appointment-
Name of Director Mr.Jojo Joseph Njezhuvinkel

Category & proposed Designation Director
Age 57
Date of first appointment on Board 23/06/2016
Qualifications (1).Diploma in Industrial Engineering (2)P G in Business

Management (3) M B A (HR & IR) (4) M M M
Experience More than 30 years of experience in top

management/senior management positions in various
companies
Shareholding in the Company Nil
Number of meeting of the Board attended during
the Financial period 2021-22 Board meetings held 9
during her tenure
Directorships in other Companies. 1.SML FINANCE LIMITED
Relationship with other Directors / KMP of the Nil

Company.
Terms and Conditions of appointment/ Non-Executive Director

reappointment.  Liable to retire by rotation
Remuneration sought to be paid. Nil

Remuneration last drawn during Financial period Nil
2021-2022.
16
Independent Auditor’s Report
To the Members BRD Securities Limited
Report on the Audit of the Financial Statements
Qualified Opinion
1. We have audited the financial statements of BRD Securities Limited (“the Company”), which comprise the balance sheet as at March
31, 2022, and the statement of Profit and Loss and the statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion section of our report, the aforesaid financial statements give a true and fair view in
conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31st, 2022
and Profit/loss and its cash flows for the year ended on that date.
Basis for Qualified Opinion
3. We draw your attention to the following matters:
Referring to RBI Master Direction RBI/DNBR/2016-17/44 - DNBR.PD.007.03.10.119/2016-17 Para No 5. In exercise of the powers
conferred under clause (b) of sub-section (1) of section 45–IA of the RBI Act and all the powers enabling it in that behalf, the
Bank, hereby specifies two hundred lakh rupees as the Net Owned Fund (NOF) required for a nonbanking financial company to
commence or carry on the business of non-banking financial institution, except wherever otherwise a specific requirement as to
NOF is prescribed by the Bank .The Net Owned Fund of the company as on the Balance sheet date is less than the minimum NOF
stipulated, which is a nonconformity from the RBI Master Direction.
Referring to RBI Master Direction RBI/DNBR/2016-17/44 - DNBR.PD.007.03.10.119/2016-17 Para No 6. The leverage ratio of an
applicable NBFC (except NBFC-MFIs and NBFC-IFCs) shall not be more than 7 at any point of time, with effect from March 31,
2015. The Leverage Ratio of the company as on the Balance sheet date is more than 7 which is a nonconformity from the RBI
Master Direction.
4. We conducted our audit of the financial statements in accordance with Standards on Auditing (SAs) specified under section 143(10)
of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics
issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our qualified opinion.
Emphasis of matter
5. We draw your attention to the following matters:
i. The Company has accumulated losses exceeding the share capital and reserves and its net worth has been fully eroded. These
conditions indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as
a going concern. However, the financial statements have been prepared on a going concern basis considering management
assessment of the current situation and future prospects.
The Board of Directors of the Company is of the view that in the short term its main challenge is to recover the money from
defaulting customers. As explained by the management, the Company is making all out efforts in recovering the amounts from
defaulters for settlement as well as its other receivables. The Company has continuing support from its group concerns and on the
basis of such support, business plans of the future & other factors, the accounts for the year ended 31 March 2022 are prepared on
going concern basis. We have relied on the above-mentioned explanations and information given by the Management.
17
ii. We draw attention to Note 2.22 and 2.23 of the financial statements which deal with various matters including the ongoing
proceedings with SAT and National Company law Appellate Tribunal.
Securities and Exchange Board of India ("SEBI") had conducted an Investigation against the company on the alleged public issue of
Shares/Securities. SEBI vide the order advised the company to refund the money collected through the offer with interest. The
Company has filed an appeal application against the order of SEBI in SAT and the proceedings of same is in progress and further
proceedings are subject to the Hon. SAT order. According to the information and explanations given by the Management, a stay
order has passed by Hon. SAT on 26.11.2021 against the order of SEBI directing the effect and operations of the same in relation to
the refund of the monies to the shareholder.
Further based on management's detailed analysis and consultation with external legal counsel a provision has been made and
recognised in the financials for any contingency that may arise from the afore said issues. As per the management any further
financial impact to the extent it can be reliably estimated as at present is not expected to be material.
The Minority Shareholders has filed a petition in NCLAT, against final verdict of the Hon'ble NCLT which was in favor of the company.
The proceedings of the petition filed has not started on the reporting date. The management believes that it is a strong case on
merits and as per the current position of the case the liability if any arising out of this contingency cannot be determined at this
stage and at present no adjustment is required in the financial statements.
iii. Company has suspended its operations in certain branches and Property, Plant and Equipment initially capitalized has been
disposed and consequent adjustment has been made in the PPE Register.
Key Audit Matters
6. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters
described below to be the key audit matters to be communicated in our report.
Key audit matter How our audit addressed the key audit matter
Deferred Tax Asset Recognition
The company has carried deferred tax assets recognized on Our procedures include obtaining an understanding of the
depreciation in an earlier year which is based on the process and the controls over preparation of profit forecast.
likelihood of future taxable Income.
The recognition of deferred tax asset involves judgement We verified the disclosures for deferred tax asset balance
regarding the likelihood of realisation of these assets in including those related to significant accounting estimate and
particular whether there will be sufficient taxable profits in judgements
future periods that support the recognition of these assets.
Given the degree of judgement involved in considering
these deferred tax assets as recoverable or otherwise, we
consider this to be a key audit matter.
Refer para i. of Emphasis of Matter
Information Other than the Financial Statements and Auditor’s Report Thereon
7. The Company’s Board of Directors is responsible for the other information. The other information comprises the information
included in the Annual Report, but does not include the financial statements and our auditor’s report thereon. The Annual Report is
expected to be made available to us after the date of this auditor’s report.
Our opinion on the financial statements does not cover the other information and we will not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it
becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements
or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the
matter to those charged with governance under SA 720 ‘The Auditor’s responsibilities Relating to Other Information’.
18
Responsibilities of Management and Those Charged with Governance for the Financial Statements
8. The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with
respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting
Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of
the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
9. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements
10. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on
whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
11. Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that
the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the financial statements.
12. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
19
13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, related safeguards.
14. From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
15. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2013, we give in the “Annexure A” a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
16. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with
the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2022 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2022 from being appointed as a director in terms of Section 164(2)
of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in “Annexure B” attached herewith.
(g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of Section 197(16)
of the Act, as amended, In our opinion and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements –
Refer Note 3.29 to the financial statements.
ii. The Company was not required to recognize a provision as at March 31, 2022 under the applicable law or accounting
standards, as it does not have any material foreseeable losses on long-term contract including derivative contracts;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the
Company during the year ended March 31, 2022.
iv. (a) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the
accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other person or entities, including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries (Refer Note 3.55 to the financial statements);
20
(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the
accounts, no funds have been received by the Company from any person or entity, including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly
or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries (Refer Note 3.56 to the financial statements); and
(c) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has
come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any
material misstatement.
v. The company has not declared or paid any dividend during the year in contravention of the provisions of section 123
of the Companies Act, 2013.
Sd/-
Damodaran P Namboodiri FCA
Chartered Accountant
Place :Aluva Membership No.221178
Date :25.08.2022 UDIN: 22221178AQPPVA1005
21
Annexure A referred to in clause 1 of paragraph on the ‘Report on Other Legal and Regulatory Requirements’ of our report of even date
In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us
in the normal course of audit and to the best of our knowledge and belief, we state that:
(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of
Property, plant and equipment. *
(B) The Company has maintained proper records showing full particulars of Intangible assets.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the Company has a regular programme of physical verification of its property, plant and equipment by which
all Property, plant and equipment are verified in a phased manner over a period of three years. In accordance with this
programme, certain Property, plant and equipment were verified during the year. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) According to the information and explanations given by the Management, the title deeds of all the immovable properties
(other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the
lessee) are held in the name of the Company. *
(d) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the Company has not revalued its property, plant and equipment (including Right-of-use assets) or Intangible
assets or both during the year.
(e) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, there are no proceedings initiated or pending against the Company for holding any benami property under the
Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
* Documents related to the additions in immovable property and infrastructure facilities in the books of accounts
consequent to the search and Honorable settlement commission order is not available for verification, we accepted the
management representation related to the additions.
Company has suspended its operations in certain branches during the year and fixed assets initially capitalized has been
disposed and consequent adjustment has been made in the fixed asset register.
(ii) (a) The Company’s business does not involve inventories and, accordingly, the requirements under clause 3 (ii) (a) of the
Order are not applicable to the Company and hence not commented upon
(b) The Company has not been sanctioned working capital limits in excess of ₹ 5 crore, in aggregate, at any points of time
during the year, from banks or financial institutions on the basis of security of current assets and hence reporting under
clause 3(ii)(b) of the Order is not applicable
(iii) (a) According to the information and explanations given by the management, the principal business of the Company is to
give loans. Therefore, in our opinion, the provisions of clause 3(iii)(a) of the Order are not applicable to the Company.
(b) According to the information and explanations given by the management and audit procedure performed by us, the
investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and
advances in the nature of loans and guarantees provided are not prejudicial to the company’s interest;
(c) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, in the case of loans given, the repayment of principal and payment of interest has been stipulated and the
repayments or receipts have been regular.
According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the principal business of the Company is to give loans, so the irregular repayments or receipts of loans and
advances overdue by more than 90 days are as below;
22
Number of borrowers Overdue amount more
than 90 days (in Crores)
19001 55.22
(d) According to the information and explanations given by the management and audit procedure performed by us, the total
amount overdue for more than ninety days is Rs.55.22 Crores, and the reasonable steps have been taken by the company
for recovery of the principal and interest.
(e) According to the information and explanations given by the management, the principal business of the Company is to
give loans. Therefore, in our opinion, the provisions of clause 3(iii)(e) of the Order are not applicable to the Company.
(f) According to the information and explanations given by the management and audit procedure performed by us, the
Company has granted loans or advances in the nature of loans either repayable on demand or without specifying any
terms or period of repayment. The aggregate amount, percentage thereof to the total loans granted, aggregate amount
of loans granted to Promoters, related parties as defined in clause (76) of section 2 of the Companies Act, 2013 is as
below;
(Amount in Lakhs)
Particulars All Parties Promoters Related Parties
Aggregate Amount of loans/ advances in nature of loans
Repayable on demand (A) Nil Nil 1340.00
Agreement does not specify any terms or period of repayment (B) Nil Nil Nil
Total (A+B) Nil Nil 1340.00
Percentage of loans/ advances in nature of loans to the total loans Not Applicable Not Applicable 13.73%
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of
section 185 and I86 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance
of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable
(vi) To the best of our knowledge and as explained, the Company is not in the business of sale of any goods. Therefore, in our
opinion, the provisions of clause 3(vi) of the Order are not applicable to the Company
(vii) (a) The Company is regular in depositing undisputed statutory dues including provident fund, employees' state insurance,
income-tax, cess, goods and service tax sales-tax, service tax, duty of customs, duty of excise, value added tax and any
other statutory dues to the appropriate authorities.
According to the information and explanations given to us and audit procedure performed by us, no undisputed amounts
payable in respect of provident fund, employees' state insurance, income-tax, cess, sales-tax, service tax, duty of
customs, duty of excise, value added tax and other statutory dues were outstanding as at March 31, 2022 for a period of
more than six months from the date they became payable.
Nature of the Statute Amount

Goods and Service Tax 0.32 Lakhs
(b) According to the information and explanations given to us, there are no dues of goods and service tax, provident fund,
employees' state insurance, goods and service tax, cess, sales-tax, service tax, duty of customs, value added tax which
have not been deposited on account of any dispute.
The particulars of dues of income tax as at 31st March, 2022 which have not been fully deposited on account of dispute
Refer Note No 3.29 to the financial statements
(viii) According to the information and explanations given to us and audit procedure performed by us, the Company has not
surrendered or disclosed any transaction as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during
the year. Therefore, the provisions of clause 3(viii) of the Order are not applicable to the Company.
(ix) (a) In our opinion and according to the information and explanations given by the management, the company has not
defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.
Company, the Company has not been declared a willful defaulter by any bank or financial institution or government or
government authority.
23
(c) According to the information and explanations given to us by the management, the Company has not obtained any term
loans. Accordingly, clause 3(ix)(c) of the Order is not applicable.
(d) According to the information and explanations given to us and on an overall examination of the balance sheet of the
Company, we report that no funds have been raised on short-term basis by the Company. Accordingly, clause 3(ix)(d) of
the Order is not applicable.
(e) According to the information and explanations given to us and on an overall examination of the financial statements of
the Company, we report that the Company has not taken any funds from any entity or person on account of or to meet
the obligations of its subsidiaries as defined under the Companies Act, 2013. Accordingly, clause 3(ix)(e) of the Order is
not applicable.
(f) According to the information and explanations given to us and audit procedure performed by us, the Company has not
raised loans during the year on the pledge of securities held in its subsidiaries or associate companies.
(x) (a) According to the information and explanation given by the Management and audit procedure performed by us, the
Company has not raised any money by way of initial public offer or further public offer during the year.
Company, the Company has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures during the year. Accordingly, clause 3(x)(b) of the Order is not applicable
(xi) (a) Based on examination of the books and records of the Company and according to the information and explanations given
to us, considering the principles of materiality outlined in Standards on Auditing, we report that no fraud by the Company
or on the Company has been noticed or reported during the course of the audit.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed by the auditors in Form ADT-4 as
prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government;
(c) According to the information and explanations given to us, no whistle-blower complaints have been received during the
year. Therefore, the provisions of clause 3(xi)(c) of the Order are not applicable to the Company;
(xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, clause 3(xii) of the
Order is not applicable.
xiii) According to the information and explanations given by the management and audit procedures performed by us, transactions
with the related parties are in compliance with section 177 and 188 of the Act where applicable and the details have been
disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) To the best of our knowledge and as explained, the Company is not required to have the Internal Auditor system commensurate
with the size and nature of its business, Accordingly, clause 3(xii) of the Order is not applicable.
(xv) According to the information and explanations given by the management and audit procedures performed by us, the Company
has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of
Companies Act, 2013.
(xvi) (a) The company is required and obtained the registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of
1934).
The Net Owned Fund of the company as on the Balance sheet date is less than the minimum NOF stipulated, which is
a nonconformity from the RBI Master Direction
(b) The company has not conducted Non-Banking Financial activities without a valid Certificate of Registration (CoR) from the
Reserve Bank of India as per the Reserve Bank of India Act, 1934;
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India.
Accordingly, clause 3(xvi)(c) of the Order is not applicable.
(d) According to the information and explanations provided to us during the course of audit, there is no Core Investment
Company as a part of the Group, hence, the requirement to report on clause 3(xvi)(d) of the Order is not applicable to the
Company.
(xvii) The Company has incurred cash losses in the current and in the immediately preceding financial year.
24
(xviii) There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the Order is not
applicable.
(xix) On the basis of the financial ratios disclosed in Note 3.31 to the accompanying financial statements, ageing and expected dates
of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements,
our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the
assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date
of the audit report that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they
fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the
future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and
we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet
date, will get discharged by the Company as and when they fall due.
(xx) According to the information and explanations given by the Management and audit procedures performed by us, the CSR
requirement norms mentioned in section 135(1) of the Companies Act 2013 doesn’t applicable to the company during the
year, hence the requirements under clause 3 (xx) of the Order are not applicable to the Company and not commented
upon.
(xxi) The Companies (Auditor's Report) Order (CARO) is reported on the financial statements of the Company. Therefore, the
provision of clause 3(xxi) of the Order is not applicable to the Company.
Sd/-

Place : Aluva Chartered Accountant
Date : 25.082022 Membership No.221178
25
“Annexure B” to the Independent Auditor’s Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of BRD Securities Limited (“the Company”) as of March 31, 2022
in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over
financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the
“Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and,
both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls
over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an
understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
26
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
According to information’s and explanations given to us the following material weakness has been identified as at 31st March 2022:
The company’s ERP is not capable of calculating the NPA provisions along with automatic adjustment of interest reversal as mandated by
RBI prudential norms and it requires manual intervention.
A “Material Weakness” is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that
there is a reasonable possibility that a material misstatement of the company’s annual financial statements will not be prevented or
detected on a timely basis.
In our opinion, except to the possible effect of material weakness described above in which case we have extended our audit procedures
to cover , the company has maintained in all material respects, adequate internal financial controls over financial reporting and such
internal financial controls over financial reporting were operating effectively as on March 2022, based on internal control over financial
reporting criteria established by the company considering the essential components of internal controls stated in the guidance note on
Audit of internal financial controls over financial reporting issued by the Institute of Chartered Accountants of India
Sd/-
Place : Aluva Chartered Accountant
Date : 25.08.2022 Membership No.221178
27
Balance Sheet As At 31st March 2022 (In ₹ ,'000)

Note Figures as at 31 St Figures as at 31 St
Particulars
No March 2022 March 2021
I EQUITY AND LIABILITIES
1 Shareholders’ funds
(a) Share capital 3.01 312,222.48 312,222.48
(b) Reserves and surplus 3.02 (312,676.73) (176,963.48)
2 Share application money pending allotment
3 Non-current liabilities
(a) Long-term borrowings 3.03 529,214.00 1,002,903.00
(b) Deferred tax liabilities (Net) - -
(c) Other Long term liabilities 3.04 70,734.70 64,217.56
(d) Long-term provisions 3.05 232,808.64 186,013.64
4 Current liabilities
(a) Short-term borrowings 3.06 343,838.00 170,028.59
(b) Trade payables - -
(c) Other current liabilities 3.07 42,264.59 58,385.40
(d) Short-term provisions 3.08 24,327.66 29,285.83
Total 1,242,733.33 1,646,093.02
II ASSETS
1 Non Current Assets
(a) Property, Plant and Equipment and Intangible assets
(i) Property, Plant and Equipment 3.09 84,705.03 89,496.63
(ii) Intangible assets 3.09 1,419.95 1,685.38
(iii) Capital work-inprogress 3.09 40.04 40.04
(iv) Intangible assets under development - -
(b) Non-current investments 3.10 2,022.80 2,022.80
(c) Deferred tax assets (net) 3.11 69,541.40 55,160.40
(d) Long-term loans and advances - Financing Activity 3.12 572,805.31 827,625.75
(e) Long-term loans and advances 3.13 11,942.48 13,982.14
(f) Other non-current assets 3.14 4,775.01 6,782.15
2 Current assets
(a) Current investments 3.15 15,000.00 -
(b) Cash and cash equivalents 3.16 37,861.11 36,384.53
(c) Short-term loans and advances - Financing Activity 3.12 269,432.79 533,002.36
(d) Short-term loans and advances 3.17 137,419.07 4,185.22
(e) Other current assets 3.18 35,768.35 75,725.61
Total 1,242,733.33 1,646,093.02
Summary of significant accounting policies 2

The accompanying notes are an integral part of the standalone financial statements.
In terms of our report attached. For and on behalf of the Board of BRD Securities Limited
Sd/- Sd/-
C C William Verghese Appumon C K
(Chairman & Director) (Director)
(DIN : 00074708) (DIN : 00135500)
Sd/-
Damodaran P Namboodiri FCA Sd/- Sd/-
Charted Accountant Dileesh Kumar V Anand Kunnissery
Membership No:221178 Chief Financial Officer Chief Executive Officer
Place : Aluva Place : Kunnamkulam

Date : 25.08.2022 Date : 25.08.2022
28
Profit and loss statement for the year ended 31st March 2022 (In ₹ ,'000)
Note Figures From 01.04.2021 to Figures From 01.04.2020 to
Particulars 31.03.2022 31.03.2021
No
I Revenue from operations 3.19 109,408.27 136,984.93

II Other income 3.20 41,963.20 55,945.16
III Total Income(I + II) 151,371.47 192,930.09
IV Expenses
Employee benefits expense 3.21 63,868.88 60,035.95

Finance Cost 3.22 125,473.29 146,782.98
Depreciation and amortization expense 3.23 4,197.51 5,518.74
Other expenses 3.24 107,926.04 135,602.45
Total expenses 301,465.72 347,940.11
V Profit before exceptional and extraordinary items and tax (III-IV) (150,094.24) (155,010.02)
VI Exceptional items
VII Profit before extraordinary items and tax (V - VI) (150,094.24) (155,010.02)
VIII Extraordinary Items
IX Profit before tax (VII- VIII) (150,094.24) (155,010.02)
X Tax expense:
Current tax - -
Short/ (Excess) tax provision for earlier years - -
Deferred tax (14,381.00) (6,966.70)
(14,381.00) (6,966.70)
XI Profit (Loss) for the period from continuing operations (VII-VIII) (135,713.24) (148,043.32)
XII Profit/(loss) from discontinuing operations
XIII Tax expense of discontinuing operations - -
XIV Profit/(loss) from Discontinuing operations (after tax) (XII-XIII) - -
XV Profit/ (Loss) (XI + XIV) (135,713.24) (148,043.32)

XVI Earnings per equity share
(1) Basic 3.25 (4.35) (4.74)
(2) Diluted (4.35) (4.74)
Summary of significant accounting policies 2

Sd/- Sd/-
(DIN : 00074708) (DIN : 00135500)
Sd/-

Date : 25.08.2022 Date : 25.08.2022
29
Cash Flow Statement for the year ended 31st March 2022
In terms of AS - 3 on Cash Flow Statement under Indirect Method (In ₹ ,'000)

2021-22 2020-21
PARTICULARS RS RS
A. Cash Flow From Operating Activities : (150,094.24) (155,010.02)

Net profit Before Taxation
Adjustments for:
Depreciation 4,197.51 5,518.74
Interest Debited in P & L 125,473.29 146,782.98
Provision for standard assets (1,082.05) (3.40)
Provision for NPA and Restructured Assets 40,580.56 12,190.52
Provision for HP Balance and Suit Filed acount (4,958.18) (143,854.59)
Bad Debts w/off 22,724.25 203,638.21
Diminution Value of Repossessed Vehicles 71.73 259.09
(Profit)/ Loss on sale of Fixed Assets 0.00 2,958.45
Interest Income (419.42) (741.48)
Operating Profit before Working Capital Changes 36,493.46 71,738.52
(Increase)/Decrease in Loans & Advances 495,594.02 (251,504.49)

(Increase)/Decrease in Loans,Advances & Other Assets (85,810.71) 392,897.99
Increase/(Decrease) in Other liabilities and Prvisions (122,442.78) 68,942.16
Cash from operations 323,833.99 282,074.18
Income Tax Paid (3,419.07) (4,185.22)
Net Cash From Operating Activities 320,414.93 277,888.96
B Cash Flow From Investingactivities :
Auqisition of Property Plant & Equipments (46.61) (2,135.76)
Auqisition of Intangible Asset (333.77) (1,551.23)
Proceedings from disposal of PPE 1,239.90 1,751.00
(Increase)/Decrease in Current Investment (15,000.00) 50,031.86
(Increase)/ Decrease in Bank Deposits - -
Interest Income 419.42 741.48
Net Cash From Investing Activities (13,721.06) 48,837.35
C Cash Flow From Financing Activities:
Proceeds from issuance of equity shares - -
Increase /(Decrease) Long Term Loans (179,744.00) (211,378.00)
Interest Paid (125,473.29) (146,782.98)
Net Cash From Financing Activities (305,217.29) (358,160.98)
Net Increase / Decrease In Cash And Cash Eqvalents 1,476.58 (31,434.68)
Opening Cash And Cash Eqvalents 36,384.53 67,819.20
Closing Cash And Cash Eqvalents 37,861.10 36,384.53
Sd/- Sd/-
(DIN : 00074708) (DIN : 00135500)
Sd/-

Date : 25.08.2022 Date : 25.08.2022
30
Notes to The Financial Statements for The Year Ended March 31, 2022
1 Corporate information
The Company is a non-systemically important Non-Banking Financial Company (“NBFC”) registered with the Reserve Bank of India
(RBI) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in lending and related activities. The Company
has received the certificate of registration A.16.00040 on 28th November, 1998, which was converted to. B.16.00040 Dated
29.05.2017, enabling the Company to carry on business as Non-Banking Financial Company.
The Company offers broad suite of lending and other financial products such as mortgage loan, gold loan, loan against securities.
Pursuant to amendment to the Schedule III of the Companies Act, 2013 issued by the Ministry of Corporate Affairs; following Balance
Sheet line items in the previous year have been regrouped:
a. Security deposits - Earlier disclosed under the head of ‘Long Term Loans and Advances’ are shown under ‘Other Non-Current
Assets”
b. Current portion of long-term borrowings if any – earlier disclosed under the head of ‘Current Liabilities’ is shown under ‘Short Term
Borrowings’
Other new disclosures are given together with related notes
2. Significant Accounting Policies
2.1 Basis of preparation
The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (IGAAP) under the
historical cost convention as a going concern and on accrual basis and in accordance with the provisions of the Companies Act, 2013
and the Accounting Standards specified under section 133 of the Companies Act, 2013 (“the Act”) read with Rule 7 of the Companies
(Accounts) Rules 2014 (as amended).
All assets and liabilities have been classified as current and non-current as per the Company’s normal operating cycle and other
criteria set out in the Schedule III of the Companies Act, 2013. Based on the nature of services and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of
assets and liabilities.
Prudential norms: The Company Complies all the material aspect, with the prudential norms relating to the income recognition, asset
classification and provisioning for bad and doubtful debts and other matters, specified in the direction issued by the Reserve Bank of
India, as applicable to the company.
2.2 Uses of Estimates
The preparation of financial statements requires the management to make estimates and assumptions considered in the reported
amount of assets and liabilities (including contingent liabilities) as on the date of financial statements and the reported income and
expenses during the reporting period.
Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual
results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future
periods.
2.3 Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured. The following specific recognition criteria must also be met before revenue is recognized:
Interest
Interest income from financing activities is recognized on accrual basis by applying internal rate of return implicit in each loan
agreement except in the case of non-performing assets, where it is recognised on the actual realization as per the Non-Banking
Financial Company- Systematically Important Non Deposit taking Company and Deposit taking Company (Reserve Bank) Directions,
2016 and to the extent it is probable that the economic benefits will flow to the Company and revenue can be reliability measured.
31
Processing fees, late payment Interest and all other financial charges except cheque bounce charges or instrument dishonor charges
pertaining to loan agreement are be recognized only on receipt basis. Cheque bounce charges or instrument dishonor charges
pertaining to performing loans are recognized on accrual basis i.e. as & when the cheque/instrument is dishonored or bounced.
Other income
Other income is recognized on accrual basis of accounting. Income on units of mutual funds is recognized on receipt basis as and
when redeemed in cash based on the NAV of redemption date.
2.4 Provisioning Norms for Standard & Sub-Standard Assets
Non-performing assets are recognized and provided for, as per management estimates, subject to the minimum provision required as
per Master Direction - Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank)
Directions, 2016 issued vide master direction No DNBR.PD.007/03.10.119/2016-17 dated September 01, 2016 as amended from time
to time
Similarly, provision on standard assets is also made as per the RBI NSI- ND Directions.
2.5 Bad Debts
As per management estimates, the loan accounts which are considered as irrecoverable on account of collection is written off in the
year of determination of irrecoverability. Interest income not realized on such loans is reversed and the principal outstanding as
reduced by the total receipts is written off as Bad Debts.
2.6 Repossession of Assets
The accounts, where underlying security is repossessed and where management estimates irrecoverability of portion of loans, are
written off to the extent of difference between amount outstanding in the books and value of underlying security as determined by
the approved valuer.
The accounts, where underlying asset is repossessed and sold, are written off to the extent of difference between principal
outstanding in the books and the full & final amount recovered from sale of repossessed assets under the accounting head “principal
loss on repossession”.
2.7 Investments
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other investments are classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition
charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities,
the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition
is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired,
whichever is more clearly evident.
Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment
basis. 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.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
2.8 Property, Plant and Equipment
Property, plant and equipment, capital work in progress are stated at acquisition cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase price, nonrefundable taxes or levies, borrowing costs if
capitalization criteria are met, directly attributable cost of bringing the asset to its working condition for the intended use and initial
32
estimate of decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the
purchase price.
Subsequent expenditures related to an item of tangible assets are added to its book value only if they increase the future benefits
from the existing asset beyond its previously assessed standard of performance. All other repair and maintenance costs are
recognized in profit or loss as incurred
Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.
2.9 Depreciation on property, plant and equipment
Depreciation on property, plant and equipment is calculated on Written Down Value Method (W.D.V.) at the rates calculated with
reference to the estimated useful life of assets prescribed in Schedule II to the Companies Act, 2013 or actual useful life of assets
whichever is lower. Depreciation is recognized on a pro-rata basis to the Statement of Profit and Loss on the assets acquired, sold or
disposed off during the year till the date of acquisition, sale or disposition.
Assets Useful Lifes
Buildings 60
Furniture & fixtures Electrical Fittings 10
Computer & data processing units
a) Server & networks 6
b) End user device 3
Office equipment 5
Air conditioner & DG set 5
Vehicles
a) Two wheelers 10
b) Four wheelers 8
Computer software 5
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year
end and adjusted prospectively, if appropriate
2.10 Intangible assets
Intangible Assets are recognized only if it is probable that the future economic benefits that are attributable to assets will flow to the
enterprise and the cost of the assets can be measured reliably. Computer software which is not an integral part of the related
hardware is classified as an intangible asset. Intangible assets are measured and recorded at cost and carried at cost less accumulated
amortization and accumulated impairment losses,if any.
Intangible assets are amortized on a straight-line basis over the estimated useful economic life as determined by management.
The amortization period and the amortization method are reviewed at least at each financial year end. If the expected useful life of
the asset is significantly different from previous estimates, the amortization period is changed accordingly.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds
and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.
2.11 Borrowing cost
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and
exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.
33
Borrowing costs, if any, directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalized. All other borrowing costs are expensed in the
period they occur.
2.12 Impairment of assets
The carrying amount of substantial assets is reviewed at each Balance Sheet date to identify if there is any indication of impairment
based on internal/external factors. For any impairment, the recoverable amount of these assets is determined.
The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. An asset is treated as impaired when the carrying cost of assets exceeds
its recoverable value. An impairment loss, if any is charged to the Profit & Loss accounting the year in which an asset is identified.
The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable
amount. The reversal of impairment is recognized in Statement of Profit and Loss, unless the same is carried at revalued amount and
treated as revaluation reserve.
After recognition of impairment loss or reversal of impairment loss as applicable, the depreciation charge for the fixed asset is
adjusted in future periods to allocate the asset’s revised carrying amount, less its residual value (if any), on written down value basis
over its remaining useful life.
2.13 Lease
Where the company is lessee

All the leasing arrangements of the Company are operating lease in respect of its office premises where the lessor effectively retains
substantially all the risks and benefits of ownership of the leased asset. Such operating lease rental payments are recognized as an
expense on accrual basis in the Statement of Profit and Loss.
Where the company is the lessor

Assets subject to operating lease are included in the fixed assets. Lease income on operating lease is recognized in the Statement of
Profit and Loss. Costs, including depreciation, are recognized as expenses in the Statement of Profit and Loss.
2.14 Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the
contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as
expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the
balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting
the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance
sheet date, then excess is recognized as an asset to the extent that the pre payment will lead to, for example, a reduction in future
payment or a cash refund.
Employee State Insurance is a defined contribution scheme and the contributions as required by the statute are charged to the
Statement of Profit and Loss as and when incurred.
The Company provides for the gratuity, a defined benefit retirement plan covering all employees. The plan provides for lump sum
payments to employees upon death while in employment or on separation from employment after serving for the stipulated years
mentioned under ‘The Payment of Gratuity Act, 1972’. Liabilities with regard to the Gratuity Plan are determined by actuarial
valuation at each Balance Sheet date using the Projected Unit Credit Method.
Actuarial gains and losses are recognized in the Statement of Profit and Loss as and when incurred.
2.15 Income taxes
Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions
where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity and not in the
statement of profit and loss.
34
Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the
current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws
enacted or substantively enacted at the reporting date. Deferred income tax relating to items recognized directly in equity is
recognized in equity and not in the statement of profit and loss.
Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing
differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
At each reporting date, the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to
the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying amount of
deferred tax asset to the extent that it is no longer reasonably certain, that sufficient future taxable income will be available against
which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain, as the
case may be, that sufficient future taxable income will be available
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 taxes relate to the same taxable entity and the same taxation
authority.
2.16 Earnings Per Share
The basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during
the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity
shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
2.17 Cash and Cash equivalents
In the cash flow statement, cash and cash equivalents include cash in hand, term deposits with banks and other short-term highly
liquid investments with original maturities of twelve months or less.
2.18 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the Company are segregated based on the available information. Cash comprises
cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months
or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
2.19 Classification of Debentures
Company has classified debentures as current and non-current based on the maturity period of debenture as mentioned in
debenture certificate.
2.20 Segment Reporting
The Company primarily operates as a Loan company and its operations are in India. Since the Company has not operated in any other
reportable segments, as per AS 17 ‘Segment Reporting’, no segment reporting is applicable. Company operates in a single
geographical segment. Hence, secondary geographical segment information disclosure is not applicable.
35
2.21 Written Offs
Financial assets are written off either partially or in their entirety only when the Company has no reasonable expectation of recovery.
If the amount to be written off is greater than the accumulated loss allowance, the difference recorded as an expense in the period of
write off. Any subsequent recoveries are credited to statement of profit and loss account
2.22 NCLAT Proceedings against the Petition filed by the Minority Share Holders of the Company
Minority Shareholders BRD Securities Ltd (“the Company”) have filed a petition before Hon NCLT Cochin Bench under Section 241
and 242 of the Companies Act, 2013 for seeking appropriate order/direction against the Company on 2019. The Company has filed an
adequate reply and NCLT has passed an Interim Order dated 04th November 2019 to maintain status quo as regards to the
shareholding pattern of the Company as well as not to resort to alienation, transfer, lien, lease etc. of the movable/immovable
properties of the Company till further Orders.
Subsequently, the company has filed an IA under Rule 11 of the NCLT Rules, 2016 praying to partially modify the Interim Order passed
by the Tribunal on 04th November 2019. In the light of the averments of our Senior Legal Counsel, Hon Tribunal after perusing the
records, has modified the earlier Interim Order dated 04th November 2019 and directed the Company to maintain status quo
regarding the shareholding pattern of the Company and the movable/immovable properties of the Company shall be used only for
the benefit and business purposes of the Company to enable it to carry on the day to day business in a smooth manner.
The Opponents have filed a rejoinder before Hon Tribunal on 05th November 2020 Company has filed a Sur rejoinder before NCLT
Cochin bench for quashing the rejoinder Petition and on 25th August 2021, the Opponents filed an Interlocutory Application (IA)
before the Hon NCLT Cochin Bench and prayed for an Order to investigate the affairs of the Company under Section 213 of the
Companies Act, 2013. The company has filed the reply to the allegations raised by the Opponents in their IA and the final hearing was
conducted and Hon NCLT Cochin Bench has pronounced its verdict in favor of the Company.
As per the information from Hon'ble NCLAT minority Share Holders has filed a petition against the favorable order of Hon'ble NCLT.
The management believes that it has a strong case on merits and as per the current position of the case the liability if any arising out
of this contingency cannot be determined at this stage. Accordingly, at present no adjustment is required in the financial statements.
2.23 SAT Proceedings against the Order of SEBI
SEBI has issued a Letter to BRD Securities Ltd on 19th October 2017 seeking information pertaining to the complete list of documents
filed with ROC since its inception. The company have provided all the information’s as set forth in the notice on 09th November 2017
and subsequently SEBI has issued a Show Cause Notice on 2019 based on the allegation raised by 6 Complainants against the
Company. The main allegation is that the Company failed to repay the agreed return on investment @18% to the Complainants from
2018-19 onwards and therefore seeking interference from SEBI, the Capital Market Watch dog of the Country in order to protect the
interest of investors of the Company. On 2019, SEBI has issued a Show cause to the Company on alleged Deemed Public Issue made
by the company during the period 2001-2010. The allegation raised by the Complainants is totally different from the subject matter
specified by SEBI in their vide Show Cause dated 05th April 2019.
The company have submitted a detailed reply to SEBI through a Senior Legal Counsel from Mumbai. The company have also
challenged this Show Cause Notice by filing a Writ Petition before Hon. High Court of Kerala based on recommendation given by our
Senior Counsel. The Hon. High court disposed of this matter based on jurisdiction and matter is referred by Whole-time Member,
SEBI Mumbai and final hearing was happened on 14th May 2021. Thereafter, SEBI has passed an adverse Order against the company
on 25th May 2021 directing the Company to refund Rs.27.97 crores along with interest (not less than 4% and not more than 15 %)
after deducting dividend paid if any. The company have filed an appeal to challenge this entire order, hence interest provision has not
stated as contingent liability.
Aggrieved by the SEBI order the Company has filed an appeal before Hon. SAT, Mumbai challenging the Order passed by SEBI on 22nd
July 2021. Personal hearing was happened on 22nd July 2021 and has given an opportunity to SEBI for filing their reply and thereafter
for submission of rejoinder by the Company. SEBI has filed their reply on 28th September 2021 and Company has filed our rejoinder
on 28th October 2021. The matter is under the consideration of SAT and the hearing of the same is in progress and further
proceedings are subject to SAT order. Meanwhile a stay order has passed by Hon. SAT on 26.11.2021 against the order of SEBI
directing the effect and operations of the same in relation to the refund of the monies to the shareholders. And the same stay order
is extended.
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2.24 Contingent liabilities and Contingent assets
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.
A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
Contingent assets are neither recognized nor disclosed in the financial statement since this result in the recognition of the income
that may never realize.
2.25 Provisions
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. Provisions are not discounted to their present value and are determined based on the best estimate required to
settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current
best estimates.
Provision policy for loan portfolios: Company provides for non-performing loans and advances as mentioned in Para 13 of
Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank)
Directions, 2016. Provision for standard assets (including interest receivable) is made at 0.25% as mentioned in Para 14 of Non-
Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2016 and shown in the balance sheet as
‘Contingent Provisions for standard asset’.
For restructured asset -The lending institutions shall keep provisions from the date of implementation, which are higher of the
provisions held as per the extant IRAC norms immediately before implementation, or 10 percent of the renegotiated debt exposure
of the lending institution post implementation (residual debt).
37
3 Notes on accounts for the financial year ended 31st March, 2022
3.01 Share Capital in ₹ '000, except as stated otherwise

March 31,2022 March 31,2021
Particulars
No. Value No. Value
Authorised:
Equity shares of Rs 10 each 40000000 400,000.00 40000000 400,000.00
Issued, Subscribed & Fully Paid Up:

Equity shares of Rs 10 each 31222248 312,222.48 31222248 312,222.48
TOTAL 31222248 312,222.48 31222248 312,222.48
3.01.01 Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of ` 10 ' per share. Each holder of equity shares is
entitled to one vote per share.
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 all preferential amounts, if any. The distribution will be in proportion to the number
of equity shares held by the shareholders.
3.01.02 Reconciliation of shares at the beginning and at the end of the financial year in ₹ '000, except as stated otherwise
March 31,2022 March 31,2021
Equity Shares
No. Value No. Value
No: of equity shares at the beginning of the year 31222248 312,222.48 31222248 312,222.48
Add: Fresh issue - - - -
Less: shares bought back - - - -
Outstanding at the end of the year 31222248 312,222.48 31222248 312,222.48
3.01.03 Particulars of Shareholders holding more than 5% share in the Company in ₹ '000, except as stated otherwise
March 31,2022 March 31,2021
Name of shareholders % of % of
No: of shares No: of shares
shareholding shareholding
Equity shares of Rs 10 each,fully paid

C C William Varghese 1643692 5.26% 1643692 5.26%
BRD Finance Ltd 2623911 8.40% 2623911 8.40%
3.01.04 Particulars of Share held by Promoters of the Company in ₹ '000, except as stated otherwise
March 31,2022 March 31,2021
% Change during
Name of shareholders % of % of
No: of shares No: of shares the year
shareholding shareholding
Equity shares of Rs 10 each,fully paid

C C William Varghese 1643692 5.264% 1643692 5.264% 0.00%
Surendran C G 247229 0.792% 247229 0.792% 0.00%
Mary Williams 159889 0.512% 159889 0.512% 0.00%
Gigy Verghese P 95092 0.305% 95092 0.305% 0.00%
P S Balakrishnan 4894 0.016% 4894 0.016% 0.00%
B Ramadevi 313 0.001% 313 0.001% 0.00%
K R Sivakumar 313 0.001% 313 0.001% 0.00%
38
3.02 Reserves and Surplus (In ₹ ,'000)

Pariculars March 31,2022 March 31,2021
Statutory Reserve - u/s 45IC of the RBI Act

Opening Balance 85,206.02 85,206.02
Addtions/ transfers during the Year - -
Closing Balance 85,206.02 85,206.02
Security Premium Account

Opening Balance 185,812.05 185,812.05
Closing Balance 185,812.05 185,812.05
General Reserve
Opening Balance 2,798.54 2,798.54
Closing Balance 2,798.54 2,798.54
Surplus /(Deficit) in Statement of Profit and Loss

Opening Balance (450,780.09) (302,736.77)
Net Profit/(Loss) after tax as per Statement of Profit and Loss (135,713.24) (148,043.32)
Closing Balance (586,493.33) (450,780.09)
Total (312,676.73) (176,963.48)
Securities premium
This Reserve represents the premium on issue of equity shares. The reserve can be utilised only for the purposes in
accordance with the provisions of the Companies Act, 2013.
Statutory reserve
Statutory Reserve is created as per the terms of section 45-IC(1) of the Reserve Bank of India Act, 1934. It requires every
non banking finance institution which is a Company to create a reserve fund and transfer therein a sum not less than
twenty percent of its net profit every year as disclosed in the statement of profit and loss before any dividend is
General reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of profit for the
period at a specified percentage in accordance with applicable regulations. After the introduction of Companies Act
2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been
withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with
the specific requirements of the Companies Act, 2013.
Retained earnings or Surplus

This reserve represents the cumulative profits of the Company.
3.03 Long-Term Borrowings (In ₹ ,'000)

Non-Current Current
Particulars
March 31,2022 March 31,2021 March 31,2022 March 31,2021
Debt Securities
Secured Non Convertible Debentures 177,817.00 549,041.00 235,230.00 48,120.00
Subordinated Liabilities
Unsecured Bonds 351,397.00 453,862.00 108,608.00 1,773.00
Total 529,214.00 1,002,903.00 343,838.00 49,893.00
39
3.03.01 Debt Securities (In ₹ ,'000)

Particulars March 31,2022 March 31,2021
(a) Secured Non-Convertible Debentures - Privately Placed 413,047.00 597,161.00

(b) Unsecured Non-Convertible Debentures - Privately Placed -
(c) Unsecured Convertible Debentures - Privately Placed -
413,047.00 597,161.00
Borrowings in India 413,047.00 597,161.00

Borrowings outside India -
413,047.00 597,161.00
Total 413,047.00 597,161.00
Nature of Security
Non Convertible Debentures are secured by way of first charge on the loan assets along with all the receivables of the
company claim which are now due and owing to the company in the course of the busuness or which at any time herein
3.03.02 Non Convertible Debentures - Private Placement

Series wise classification of Non Convertible Debentures (In ₹ ,'000)
Particulars Date of allotment Date of maturity March 31,2022 March 31,2021
Debenture series AM 31.03.2011 30.03.2021 422.00 6,218.00
Debenture series AN 01.06.2011 31.05.2021 600.00 17,275.00
Debenture series AO 01.08.2011 31.07.2021 246.00 24,627.00
Debenture series AT 30.06.2012 30.06.2022 40,736.00 50,353.00
Debenture series AU 01.10.2012 30.09.2022 60,629.00 76,338.00
Debenture series AV 01.01.2013 31.12.2022 62,444.00 81,754.00
Debenture series AW 31.03.2013 30.03.2023 69,523.00 88,673.00
Debenture series AX 25.06.2013 24.06.2023 33,052.00 41,811.00
Debenture series AY 31.03.2014 30.03.2024 1,300.00 1,500.00
Debenture series AZ 01.08.2014 31.07.2024 3,225.00 4,145.00
Debenture series BA 28.10.2017 27.10.2027 3,000.00 3,500.00
Debenture series BB 10.11.2017 09.11.2027 3,150.00 3,150.00
Debenture series BC 10.11.2017 09.11.2027 3,000.00 3,000.00
Debenture series BF 08.01.2018 07.01.2028 3,600.00 4,100.00
Debenture series BG 26.02.2018 26.02.2028 4,900.00 6,400.00
Debenture series BH 26.03.2018 26.03.2028 2,786.00 3,286.00
Debenture series BI 05.06.2018 05.06.2028 3,200.00 8,844.00
Debenture series BJ 03.08.2018 03.08.2028 6,300.00 9,200.00
Debenture series BK 25.09.2018 25.09.2028 1,000.00 1,000.00
Debenture series BL 03.12.2018 03.12.2028 4,000.00 6,500.00
Debenture series BM 02.02.2019 02.02.2029 4,500.00 10,000.00
Debenture series BN 20.03.2019 20.03.2029 3,530.00 6,250.00
Debenture series BO 30.03.2019 30.03.2029 3,950.00 6,633.00
Debenture series BP 29.05.2019 29.05.2029 - 3,000.00
Debenture series BQ 1 29.06.2019 29.06.2024 9,910.00 11,890.00
Debenture series BQ 2 29.06.2019 29.06.2029 1,000.00 1,000.00
Debenture series BR 31.08.2019 31.08.2029 1,000.00 1,000.00
Debenture series BS 01.11.2019 01.11.2029 1,500.00 3,500.00
Debenture series BT(A) 27.12.2019 27.12.2022 630.00 1,135.00
Debenture series BT(B) 27.12.2019 27.12.2023 3,300.00 7,900.00
Debenture series BT(C) 27.12.2019 27.02.2024 - 5,500.00
Debenture series BT(D) 27.12.2019 27.06.2024 - 5,000.00
Debenture series BU(A) 31.01.2020 31.01.2025 525.00 1,125.00
Debenture series BU(B) 31.01.2020 31.01.2026 1,500.00 2,900.00
Debenture series BV 02.03.2020 28.02.2025 7,515.00 10,365.00
Debenture series BW 23.03.2020 31.03.2025 4,682.00 5,607.00
Debenture series BX 10.06.2020 10.06.2025 3,000.00 4,000.00
Debenture series BY 19.08.2020 19.08.2025 7,333.00 10,683.00
Debenture series BZ 16.10.2020 16.10.2025 7,600.00 9,800.00
Debenture series CA 09.12.2020 09.12.2025 7,400.00 8,050.00
Debenture series CB 31.01.2021 31.01.2026 17,169.00 20,259.00
Debenture series CC 31.03.2021 31.03.2026 19,890.00 19,890.00
Total 413,047 597,161
40
3.03.03 Interest Rate wise classification of Non Convertible Debentures (In ₹ ,'000)
March 31,2022 March 31,2021
Particulars
No of Units Amount No of Units Amount
Non-convertible debentures - 10.00 % 300 300.00 300 300.00
Non-convertible debentures - 10.50 % 225 225.00 825 825.00
Non-convertible debentures - 11.00 % 156,455 156,455.00 193,631 193,631.00
Non-convertible debentures - 13.50 % 3,000 3,000.00
Total 413047 413047 597,161 597,161.00
3.03.04 Maturity wise classification of Non Convertible Debentures

From the Balance Sheet date (a) Non- current (b) Current maturity Total
Repayable on maturity : -
Maturing beyond 5 years 50,416.00 50,416.00
Maturing between 3 years to 5 years 63,892.00 63,892.00
Maturing between 1 year to 3 years 63,509.00 63,509.00
Maturing within 1 year * 235,230.00 235,230.00
Total 177,817.00 235,230.00 413,047.00
*Current Maturity Includes an amounts of Rs. 12.68 Lakhs which was matured in the previous year and still outstanding on the Balance sheet date
3.03.05 Subordinated Liabilities (In ₹ ,'000)

At Amortised Cost:
(a) Subordinated Debts 460,005.00 455,635.00
460,005.00 455,635.00
Subordinated liabilty in India 460,005.00 455,635.00

Subordinated liabilty outside India -
460,005.00 455,635.00
Total 460,005.00 455,635.00
Unsecured Subordinated Debt - Private Placement

3.03.06 Series wise classification of Subordinated Debt (In ₹ ,'000)
March 31,2022 March 31,2021
Particulars
Subordinated debts Series - 2011-12 - - 5 5.00
Subordinated debts Series - 2012-13 825 825.00 1,413 1,413.00
Subordinated debts Series - 2013-14 35 35.00 275 275.00
Subordinated debts Series - 2014-15 - - 80 80.00
Subordinated debts Series - 2015-16 - - - -
Subordinated debts Series - 2016-17 135,203 135,203.00 135,203 135,203.00
Subordinated debts Series - 2020-21 5,283 5,283.00
Total 460,005 460,005.00 455,635 455,635.00
3.03.07 Interest Rate wise classification of Subordinated Debt (In ₹ ,'000)

March 31,2022 March 31,2021
Particulars
Subordinated Debt-Cumulative 93,802 93,802.00 93,812 93,812.00
Subordinate Debts - 10.50% 503 503.00 503 503.00
Subordinate Debts - 11.00% 697 697.00 1,197 1,197.00
Subordinate Debts - 11.50% 24,638 24,638.00 23,758 23,758.00
Total 460,005 460,005.00 455,635 455,635.00
41
3.03.08 Maturity wise classification of Subordinated Debt (In ₹ ,'000)

From the Balance Sheet date (a) Non- current (b) Current maturity Total
Repayable on maturity :
Maturing beyond 5 years 160.00 - 160.00
Maturing between 3 years to 5 years 93,989.00 - 93,989.00
Maturing between 1 year to 3 years 257,248.00 - 257,248.00
Maturing within 1 year - 108,608.00 108,608.00
Total 351,397.00 108,608.00 460,005.00
There is no continuing default as on the date of balance sheet in repaymnet of loans and interest.
3.04 Other Long term Liabilities (In ₹ ,'000)

Trade Payables
Others
Interest accrued but not due on borrowings 70,734.70 64,217.56
Total 70,734.70 64,217.56
3.05 Long-term provisions (In ₹ ,'000)

Provision for Employee Benefits

Provision for Gratuity 9,447.47 2,150.99
Others
Contingent Provision against Standard Assets 1,175.89 2,257.94
Provision for Non-performing assets and Restructured Asset 222,185.27 181,604.71
Total 232,808.64 186,013.64
3.06 Short-Term Borrowings (In ₹ ,'000)

(a) Loans repayable on demand

Secured
From banks
Dhanalaxmi Bank, Kunnamkulam - 20,135.59
(b) Current maturities of long-term Borrowings 343,838.00 49,893.00
(c) Loans and advances from related parties.
Unsecured
BRD Finance-ICD - 100,000.00
Total 343,838.00 170,028.59

*Current Maturity Includes an amounts of Rs. 12.68 Lakhs which was matured in the previous year and still outstanding on the Balance sheet date
Nature of Security
(a) Loans repayable on demand from Dhanalaxmi Bank, Kunnamkulam
Working capital demand loan from banks is primarily secured by hypothecation of specific present & future loan receivable of the company
along with the first & pari passu charge and equitable mortgage of various immovable properties owned by company & promoters and
further personally guaranteed by promoters of the company. The limit is repayable on demand and carries interest rate of 12.40%
Company has used the borrowings from banks and financial institutions for the specific purpose and Loan repayable on demad has been
closed during the year and there is no outstanding at the reporting date.
The quarterly returns /statements of current assets filed by the Company with banks or financial institutions are in agreement with the
books of accounts.
The company has not been declared as a wilful defaulter by any bank or financial institution or other lender.
There is no continuing default/default as on the date of balance sheet in repaymnet of loans and interest.
42
3.07 Other Current Liabilities (In ₹ ,'000)

(a) Other Payables

(i) Statutory remittances (Refer note(i) below) 3,431.35 3,939.00
(ii) Salaries and Wages Payable 416.95 247.79
(iii) Expenses Payable 972.69 2,418.37
(iv) Other Payable 1,117.88 6,429.61
(v) Loan Outstanding liabilities 7,631.61 11,989.85
(vi) Chitty Liability 28,694.11 33,360.78
Total 42,264.59 58,385.40
Note (i) Statutory dues includes provident fund, employees state insurance, withholding taxes.
3.08 Short Term Provisions (In ₹ ,'000)

(a) Provision for Employee Benefit - -
(b) Provision - Others
(i) Provision for Income Tax -
(ii) Contingent Provision for Suit Filed Loans and Other Advances 24,327.66 29,285.83
Total 24,327.66 29,285.83
3.10 Non-current investments (In ₹ ,'000)

Investment in Government Securities (at Cost) - Long term
Quoted ( Non Trade):
20000 units (PY 20000 units) fully paid up 7.50% GOI Stock 2,022.80 2,022.80
Total 2,022.80 2,022.80
3.11 Deferred tax (Liability)/Assets (In ₹ ,'000)

A. Deferred tax liabilities
B. Deferred tax assets
On difference between book balance and tax balance of PPE and Intangible Asset 4,016.20 3,926.20
On Carried Forward Depreciation Loss 5,300.70 4,017.00
On Others 60,224.50 47,217.20
69,541.40 55,160.40
Total 69,541.40 55,160.40
3.12 Long-term loans and advances - Financing Activity (In ₹ ,'000)

Loans
Vehicle Loan 496,197.47 667,127.08
Term Loan 119,549.03 318,227.94
Gold Loan 5,362.16 74,961.39
Property Loan 6,000.08 7,383.78
Demand Loan 40,584.14 52,259.14
Business and Other Loan. 174,545.22 240,668.79
842,238.10 1,360,628.11
Secured by Securities and Assets 627,108.74 1,067,700.18
Covered by Bank/Government guarantees - -
Unsecured 215,129.36 292,927.93
842,238.10 1,360,628.11
Total 842,238.10 1,360,628.11
43
3 Notes on Financial Statements for the period ended 31st March 2022
3.09 Property Plant and Equipments

Furniture & Electrical Motor Office
Particulars Land Building Computers Total
Fittings Fittings Vehicle Equipments
Cost:
As at April 1, 2021 62,549.81 20,621.85 27,869.43 6,468.06 15,471.74 2,184.55 9,246.09 144,411.52
Additions 35.59 11.02 46.61
Disposals 5,494.85 1,519.27 1,185.56 43.00 1,142.37 9,385.05
As at March 31, 2022 62,549.81 20,621.85 22,374.58 4,948.78 14,321.77 2,141.55 8,114.74 135,073.08
Depreciation and impairment:

As at April 1, 2021 - 3,081.53 22,255.13 4,918.61 14,566.06 2,069.42 8,024.14 54,914.89
Additions 1,304.28 1,406.62 365.25 130.65 3.32 388.19 3,598.31
Disposals 4,673.10 1,276.78 1,144.78 40.85 1,009.64 8,145.15
As at March 31, 2022 - 4,385.81 18,988.64 4,007.08 13,551.94 2,031.89 7,402.69 50,368.05
Net book value:

As at April 1, 2021 62,549.81 17,540.32 5,614.31 1,549.45 905.68 115.13 1,221.95 89,496.63
As at March 31, 2022 62,549.81 16,236.04 3,385.94 941.71 769.84 109.66 712.05 84,705.03
3.09 Intangible Assets

Particulars Software Total
Cost:
As at April 1, 2021 8,197.78 8,197.78
Additions 333.77 333.77
Disposals - -
As at March 31, 2022 8,531.55 8,531.55
Depreciation and impairment:

As at April 1, 2021 6,512.41 6,512.41
Additions 599.20 599.20
Disposals -
As at March 31, 2022 7,111.60 7,111.60
Net book value:

As at April 1, 2021 1,685.38 1,685.38
As at March 31, 2022 1,419.95 1,419.95
3.09 Work in Progress

Work in
Particulars Total
Progress
Cost:
As at April 1, 2021 40.0 40.0
Additions - -
Disposals - -
As at March 31, 2022 40.0 40.0
3.09 CWIP Aging schedule

CWIP Amount in CWIP for a period of
Less than 1 year 1-2 years 2-3 years More than 3 years Total
Projects in Progress - 40.04 - - 40.04
Projects Temporarily Suspended - - - - -
44
3.12.01 Loans And Advances - Financing Activity Maturity Wise (In ₹ ,'000)
Non-Current Current
March 31,2022 March 31,2021
Vehicle Loan 411,349.56 381,510.24 84,847.92 285,616.84

Term Loan 11,591.86 300,726.59 107,957.16 17,501.35
Gold Loan - - 5,362.16 74,961.39
Property Loan 5,713.45 7,383.78 286.63 -
Demand Loan. - 7,675.00 40,584.14 44,584.14
Business and Other Loan. 144,150.44 130,330.14 30,394.79 110,338.64
572,805.31 827,625.75 269,432.79 533,002.36
Secured by Securities and Assets 428,654.87 689,620.61 198,453.87 378,079.57

Covered by Bank/Government guarantees - - - -
Unsecured 144,150.44 138,005.14 70,978.93 154,922.78
572,805.31 827,625.75 269,432.79 533,002.36
Loans in India
Public Sector
Others 572,805.31 827,625.75 269,432.79 533,002.36
572,805.31 827,625.75 269,432.79 533,002.36
Total 572,805.31 827,625.75 269,432.79 533,002.36
3.12.02 Category wise details of Financial Assets (In ₹ ,'000)

FY 2021-22
Particulars Doubtful Total
Standard Sub Standard
Vehicle Loan 162,731.57 124,220.26 209,245.65 496,197.47

Term Loan 119,549.03 - - 119,549.03
Gold Loan 2,041.28 3,320.89 - 5,362.16
Property Loan 707.02 4,904.02 389.04 6,000.08
Demand Loan. - - 40,584.14 40,584.14
Total 336,357.10 197,036.83 308,844.17 842,238.10
Category wise details of Financial Assets (In ₹ ,'000)

FY 2020-21
Particulars Doubtful Total
Standard Sub Standard
Vehicle Loan 366,809.15 77,288.91 223,029.01 667,127.08

Term Loan 318,227.94 - - 318,227.94
Gold Loan 55,550.23 19,411.16 - 74,961.39
Property Loan 2,880.16 4,503.62 - 7,383.78
Demand Loan. 11,675.00 - 40,584.14 52,259.14
Total 903,176.34 152,574.37 304,877.40 1,360,628.11
3.13 Long Term Loans And Advances (In ₹ ,'000)

Unsecured, considered good

Loans and advances to related parties - -
Other Advances
i. Balances with government authorities
Income Tax refund receivable 11,942.48 13,982.14
Total 11,942.48 13,982.14
45
3.14 Other non-current assets (In ₹ ,'000)

Unsecured considered good;

Long Term Trade Receivables - -
Security Deposits 4,775.01 6,782.15
Total 4,775.01 6,782.15
3.15 Current investments (In ₹ ,'000)

Investment in Equity Instruments

Quoted
Sundaram Mutual Funds 15,000.00 -
Total 15,000.00 -
Market Value of Mutul Fund 15,449.116
3.16 Cash And Cash Equivalents (In ₹ ,'000)

Cash in Hand 1,134.16 3,076.60
Balance with banks

(i) In Current Accounts 26,577.77 20,932.72
(ii) Fixed Deposits 10,149.18 12,375.21
Less: Maturity More than 1 Year - -
36,726.95 33,307.92
Total 37,861.11 36,384.53
3.17 Short Term Loans And Advances (In ₹ ,'000)

Unsecured, considered good
Loans and advances to related parties 134,000.00 -
Other Loans and Advance
i. Balances with government authorities
TDS, TCS and Advance Income Tax 3,419.07 4,185.22
GST Receivables - -
Total 137,419.07 4,185.22
Advances recoverable in cash or in kind or for value to be received
3.18 Other Current Assets (In ₹ ,'000)

Interest Receivable 10,301.32 31,206.54

Interest accrued on deposits/Securities 23.00 64.28
Others
Stock of Stationery 67.74 61.56
Repossed Vehicles 3,718.90 17,435.56
HP and other Receivables 21,657.40 26,957.68
Total 35,768.35 75,725.61
46
3.19 Revenue From Operations (In ₹ ,'000)

Finance Charges 40,653.00 68,423.29

Pronote Loan interest 1,026.76 2,080.04
Gold Loan interest 11,242.62 13,705.26
Business Loan Interest 23,423.91 17,618.27
Term Loan Interest 31,282.06 26,972.44
MF Processing fee/Documentation 1,779.92 8,185.63
Total 109,408.27 136,984.93
3.20 Other Income (In ₹ ,'000)

Interest Income
Interest on Govt. Securities and Bonds 150.00 150.00
Interest received from Fixed Deposits 269.42 591.48
Interest on HP overdue 7,111.00 13,665.61
Interest on Others 2,121.94 18,647.99
Net gain on sale of investments 2.24 1,805.93
Other non-operating income (net of expenses directly attributable to such income).

Rental income from investment properties 12.00 12.00
Bad trade and other receivables recoverred 21,737.97 11,358.00
Other Miscellaneous Income 258.25 12.42
HP Other Income 6,808.11 7,505.32
Loan Other Income 3,492.27 2,196.41
Total 41,963.20 55,945.16
3.21 Employee Benefit Expenses (In ₹ ,'000)

Salaries and Wages 50,529.61 53,810.41

Contributions to provident and other funds 13,339.27 6,225.54
Workmen and Staff Welfare Expenses - -
Total 63,868.88 60,035.95
3.22 Finance Cost (In ₹ ,'000)

Interest expense on :
Borrowings 125,473.29 146,782.98
Others
Interest on delayed / deferred payment of income tax and TDS - -
TOTAL 125,473.29 146,782.98
3.23 Depreciation And Amortisation Expenses (In ₹ ,'000)

Depreciation 3,598.31 4,963.49

Amortisation 599.20 555.24
Total 4,197.51 5,518.74
47
3.24 Other Expenses (In ₹ ,'000)

Accruedd Loss on Chitty 6,821.23 6,567.43

Advertisement 223.92 111.66
Audit fee 350.00 350.00
Bank charges 311.58 824.79
Business Promotion 634.25 765.67
Commission 10,777.08 13,945.65
Corporate Social Responsibility Expense - 40.00
Diminution Value of Repossessed Vehicles 71.73 259.09
Electricity charges 704.22 867.44
Filing fee 51.90 57.60
Insurance 67.71 225.85
Legal charges 3,520.51 1,050.11
Loss on Disposal of Fixed Assets 0.00 2,958.45
Miscellaneous expenses 6,878.75 8,781.02
News paper & Periodicals 2.29 1.43
Postage & Telegram 91.86 112.32
Printing & Stationery 399.01 784.57
Professional charges 4,777.02 4,925.11
Rates & Taxes 2,349.18 5,507.39
Rent 6,519.81 9,065.91
Repairs & maintenance 640.40 1,015.99
Retainer Expense 2,732.36 4,115.76
Sitting fee 10.50 12.00
Telephone charges 1,349.52 1,774.11
Travelling expenses 749.78 1,646.49
Provision and Write off - Refer Note 3.24.2 57,891.41 69,836.62
Total 107,926.04 135,602.45
3.24.1 Payment to the auditors comprises: (In ₹ ,'000)

As auditors - statutory audit 220.00 220.00
For taxation matters 80.00 80.00
For other services 50.00 50.00
Total 350.00 350.00
3.24.2 Provisions and Written Offs (In ₹ ,'000)

Provision for
Standard assets (1,082.05) (3.40)
Non performing assets 40,526.82 12,190.52
Restructiured account Provision 53.74 -
Bad debts written off 22,724.25 203,638.21
Suit Filed and Legal Expenses written off 626.82 (2,134.13)
Provision for HP Balance and Suit Filed acount (4,958.18) (143,854.59)
Total 57,891.41 69,836.62
-
3.25 Earnings Per Share (In ₹ )
Basic
Profit after tax as reported (135,713,242) (148,043,321)
Weighted average number of equity shares for basic EPS 31,222,248 31,222,248
Weighted average number of equity shares outstanding during the period 31,222,248 31,222,248
Basic earnings per share (face value of Rs. 10) -in (4.35) (4.74)
48
3.26 Employee Benefits

Details of Employee Benefits : Disclosures required under Accounting Standard 15 – Employee Benefits ( Revised 2005)
3.26.01 Defined Contribution Plans : (In ₹ ,'000)

During the Year, the following amounts have been recognised in the Profit and Loss account on account of defined
Employers Contribution to Provident Fund 4,354.41 3,932.75
Employers Contribution to Employee's State Insurance 909.97 1,155.86
3.26.02 Defined benefit Plans- Gratuity:

i. Components of employer expense (In ₹ ,'000)
Current service cost 2,023.02 2,364.33
Interest cost 644.94 639.90
Expected return on plan assets (315.30) (446.90)
Acquisition Adjustments 1,839.50 -
Actuarial losses/(gains) 3,835.81 (1,503.13)
Total expense recognised in the Statement of Profit and Loss 8,027.97 1,054.20
ii. Actual contribution and benefit payments for year (In ₹ ,'000)
Actual benefit payments 2,496.90 3,079.67
Actual contributions 794.63 434.74
iii. Net asset / (liability) recognised in the Balance Sheet (In ₹ ,'000)
Present value of defined benefit obligation (13,220.36) (7,247.59)
Fair value of plan assets 3,772.89 5,096.59
Funded status [Surplus / (Deficit)] (9,447.47) (2,150.99)
Net asset / (liability) recognised in the Balance Sheet (9,447.47) (2,150.99)
iv. Change in defined benefit obligations (DBO) during the year (In ₹ ,'000)
Present value of DBO at beginning of the year 7,247.59 8,826.16
Current service cost 2,023.02 2,364.33
Interest cost 644.94 639.90
Acquisition Adjustments 1,965.89 -
Actuarial (gains) / losses 3,835.81 (1,503.13)
Benefits paid (2,496.90) (3,079.67)
Present value of DBO at the end of the year 13,220.36 7,247.59
v. Change in fair value of assets during the year (In ₹ ,'000)

Plan assets at beginning of the year 5,096.59 7,294.62
Expected return on plan assets 315.30 446.90
Actual company contributions 794.63 434.74
Acquisition Adjustments 63.26 -
Benefits paid (2,496.90) (3,079.67)
Plan assets at the end of the year 3,772.89 5,096.59
vi. Composition of the plan assets is as follows: (In ₹ ,'000)

Government bonds - -
Insurer Managed Funds 3,772.89 5,096.59
49
vii. Actuarial assumptions

Discount rate 7.00% 7.25%
Rate of return on plan assets 7.00% 9.00%
Salary escalation 8.00% 7.00%
The above disclosures are based on information furnished by the independent actuary and relied upon by the auditors.
The estimates of future Salary increases, considered in the actuarial valuation, takes into account of inflation, seniority,
promotion and other relevant factors , such as supply and demand in the employment market.
3.27 Related party disclosures
3.27.01 Names of Related Parties
(A) Holding Nil
(B) Key Management Personnel Designation

C.C. William Verghese Chairman and Director
Paul Thomas Kalappurakkal Chief Executive Officer (Appointed on 16.09.2020 Resigned w.e.f. 06.09.2021)
Rupesh Haridas Company Secretary (Appointed on 05.10.2020 Resigned w.e.f. 15.12.2021)
Joy Gopan Appointed as WTD on 10.03.2021 Resigned w.e.f. 06.09.2021
Anand Kunnissery Chief Executive Officer ( From 30.11.2021)
Dileesh Kumar V Chief Financial Officer ( From 05.11.2021)
Sreekala Prasad Company Secretary (From 30.06.2022)
(c) Directors
C K Appumoan Jojo N J Sunitha A C Kochu Mathew C J ( Retired on 30.09.2021)
Antony PD T K Surendran Roshni Simon
(D) Entities in which KMP / Relatives of KMP can exercise significant influence
BRD Finance Limited BRD Car World Limited
BRD Motors Limited BRD Developers & Builders Limited
BRD Chits Limited SML Finance Limited
BRD Kuries India Limted Vanchinad Finance (P) Ltd.
(E) Relatives of Key Management Personnel

Name Relation Name Relation
Mary Williams Spouce of Chairman Susanna Grigor Daughter In Law of Director
Griger Cherry Williams Son of Chairman Bindhu Appumon Spouce of Director
Torison P A Son of Director Chris Haris Cheruvathoor Son of Director
Jimson P A Son of Director Denna Davis Daughter In Law of Director
Edison P A Son of Director Femi Joseph V Daughter In Law of Director
Kochuthressia M M Spouce of Director Halo Anto Daughter In Law of Director
Jessy Anand Wife of CEO Priya B P Wife of CFO
Sam Augustine Son of CEO Akul Krishna Dileesh Son of CFO
Angelina K A Daughter of CEO Adhik Krishna Dileesh Son of CFO
Related parties have been identiﬁed on the basis of the declaration received by the management and other records
available and the same has been relied upon by the auditors.
3.27.02 Related Party transactions during the year: (In ₹ ,'000)

KMP/ Director Relatives of KMP
Particulars
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Interest Paid 443.45 240.56 2,553.52 2,819.86

Remuneration paid to KMP 1,352.88 1,192.46 - -
Remuneration paid 818.54 965.00 - -
Professional consulting fees 548.56 1,315.00 - -
Commission Paid 46.47 2.26 469.03 556.06
50
Entities in which KMP / Relatives of
Holding Company KMP can exercise significant
Particulars influence
Inter Corporate Loans Accepted 10,000.00 110,000.00

Inter Corporate Loans Repaid 110,000.00 10,000.00
Inter Corporate Loans Made 144,000.00 -
Inter Corporate Loans Recovered 10,000.00 222,476.27
Interest Paid 7,859.18 1,374.45
Interest Received 2,121.94 18,648.73
Rent Paid 466.55
Rent Received 12.00 12.00
3.27.03 Balance outstanding as at the year end: Asset/ (Liability) (In ₹ ,'000)
KMP/ Director Relatives of KMP
Particulars March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Non Convertible Debentures (1,150.00) (892.00) - (1,700.00)

Subordinate Debts (2,100.00) (1,100.00) (19,000.00) (19,000.00)
Interest Payables (4.56) (2.04) (191.59) (67.07)
Entities in which KMP / Relatives of
Holding Company KMP can exercise significant
Particulars influence
Interest corporate Loans 134,000.00 (100,000.00)
Interest Receivable - -
3.28 Transaction with non executive director (In ₹ ,'000)

Name Nature of Transaction March 31, 2022 March 31, 2021
N R Bahuleyan Sitting Fee and Remuneration 17.50 12.00
P M Jose Sitting Fee and Remuneration 17.50 12.00
Sunny Mathew Sitting Fee and Remuneration 17.50 12.00
3.29 Contingent liabilities and capital commitments (In ₹ ,'000)

Particulars March 31, 2022 March 31,2021
Contingent Liabilities: -
Claim not acknowledge as debt by the company - -
In respect of tax demands where the Company has filed appeal before various - 521.73 Lakhs
In respect of demands where the Company has filed appeal before SAT 2797.10 Lakhs 2797.10 Lakhs
Capital commitments :- - -
* Appeal filed against the Income tax matter were considered as part of in the settlement commission order, hence no
longer required to keep as contingenet liabilities as on reporting date.
Future cash outflow in respect of above is determinable only on receipt of judgments /decision pending with various
forums/authorities. The Company is of the opinion that the above demands are not tenable and expects to succeed in its
appeals/defense. The management believes that the ultimate outcome of these proceedings will not have a material
adverse effect on the Company’s financial position and results of operations
3.30 Disclosure with regard to dues to Micro Enterprises and Small Enterprises
The management has initiated the process of identifying enterprises which have provided goods and services to the
company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium
Enterprises Development Act, 2006. The company has not received any intimation from its vendors regarding their status
under Micro, Small and Medium Enterprises Development Act, 2006. Further in the view of the management, the impact of
interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.
51
3.31 Additional Regulatory Information

Particulars Numerator Denominator Current Period Previous Period % of variance*
Liquidity Ratio
Current Ratio (times) Current assets Current liabilities 1.21 2.52 -52.1%
Solvency Ratio
Shareholder’s
Debt-Equity Ratio (times) Total debt
equity
- 9.15 0.0%
Earnings available for
Debt Service Coverage Ratio (times) debt service
Debt service - - 0.0%
Profitability ratio
Net Profit Ratio (%) Net profits Revenue -124.04% -108.07% 14.8%
Average
Net profits after
Return on Equity Ratio (%) taxes
shareholder’s -201.35% -70.74% 184.6%
equity
Earning before
Return on Capital employed (%) interest and taxes
Capital employed -2.61% -0.60% 335.4%
Time weighted
Income generated
Return on Investment (%) from investments
average - - -
investments
Utilization Ratio
Due to economic slow down the Loan port folio of the company reduced substantially which resulted the reduction in Current Ratio
Subscribers of Long term debts excersised the put option which resulted the reduction in the Long term Debts
There is no Earnings available for debt service hence Debt Service Coverage Ratio is not determinabe s
Provision for NPAs increased substantially which resulted in the redution in the profitability
Share Capital is fully eroded hence Debt-Equity Ratio is not determinable in the current year
Entity has not made any investment hence Return on Investment ratio is not determinable
The Entity is operating in Service sector- Finance Company, hence Utilization ratios are not determinabale
3.32 Investments (In ₹ ,'000)

Particulars March 31, 2022 March 31, 2021
Value of Investments
Gross Value of Investments
(a) India In India 2,022.80 2,022.80
(b) Outside India - -
Provisions for Depreciation
(a) India In India - -
Net Value of Investments
(a) India In India 2,022.80 2,022.80
Movement of provisions held towards depreciation on investments
Opening balance - -
Add : Provisions made during the year - -
Less : Write off / write back of excess provisions during the year - -
Closing balance - -
3.33 Provisions and Contingencies (In ₹ ,'000)

Break up of Provisions and Contingencies shown under the head Expenses in the Statement of Profit and Loss March 31, 2022 March 31, 2021
Provisions for depreciation on Investment - -

Provision towards NPA 40,526.82 12,190.52
Provision made towards Income Tax (net of Deferred Tax) (14,381.00) (6,966.70)
Other Provision and Contingencies (4,958.18) (143,854.59)
Provision for Standard Assets (1,082.05) (3.40)
3.34 Details of Ratings assigned by credit rating agencies and migration of ratings during the year
The Company has been assigned following credit rating from all rating agencies during the financial year ended March 31, 2022 :
Instrument Rating Assaigned
Rating Agency March 31, 2022 March 31, 2021
Long Term Loan Facilities ACUITE - -
Long Term Loan Facilities CRISIL - B STABLE
52
3.35 Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)
The company does not have any joint venture or subsidiary overseas during the year 2021-22 & 2020-21
3.36 Draw Down from Reserves

No reserves have been draw down during the financial year 2021-22 & 2020-21
3.37 Movement of NPAs (In ₹ ,'000)

Net NPAs* to Net Advances (%) 33.69% 20.27%
Movement of NPAs* (Gross)
(a)Opening balance 457,451.77 408,486.58
(b)Net additions during the year 48,429.23 48,965.19
(c)Closing balance 505,881.00 457,451.77
Movement of Net NPAs*
(b)Net additions during the year 7,902.41 36,774.67
(c)Closing balance 283,749.47 275,847.06
Movement of provisions for NPAs* (excluding Provisions on Standard Assets)
(b)Provisions made during the year 40,526.82 12,190.52
(c)Write-off/ write-back of excess provisions - -
(d)Closing balance 222,131.53 181,604.71
3.38 Customer complaints

No. of complaints pending as at the beginning of the year - -
No. of complaints received during the year - -
No. of complaints redressed during the year - -
No. of complaints pending as at the end of the year - -
3.39 Value of imports calculated on CIF Balance

The company has not imported any goods therefore value of import on CIF basis is Nil during the year 2021-22 (2020-21 – Nil)
3.40 Expenditure in Foreign Currency

The company does not have any expenditure in Foreign Currency during the year 2021-22 (2020-21 – Nil)
3.41 Earning in Foreign Currency

The company does not have any earnings in Foreign Currency during the year 2021-22 (2020-21 – Nil)
(In ₹ ,'000 except number data)

3.42 Details of Resolution Plan implemented under The Resolution Framework - 2.0: Resolution for Covid-19 related stress of
Individuals and Small Bussiness as per Circular - RBI/2021-22/31 DOR.STR.REC.11/21.04.048/2021-22 dated May 5, 2021
Individual Borrowers Small Businesses
Description Personal Loans Business Loans
(A) Number of requests received for invoking resolution process under Part A 4.00 - -
(B) Number of accounts where resolution plan has been implemented under
- -
this window 4.00
(C) Exposure to accounts mentioned at (B) before implementation of the 469.54 - -
(D) Of (C), aggregate amount of debt that was converted into other securities 537.44 - -
(E) Additional funding sanctioned, if any, including between invocation of the
- -
plan and implementation 67.90
(F) Increase in provisions on account of the implementation of the resolution 53.74 - -
53
Other Notes
3.43 In the opinion of the management , the current assets, loans and advances shall realise the value as shown in the balance
sheet, if realised in the normal course of business.
3.44 Balance of some of the debtors, creditors & loans and advances are subject to confirmation/reconciliation.
3.45 There has been no significant impact on the operations and financial position of the company on account of the outbreak of
COVID-19 pandemic and consequential lock-down restrictions imposed by the Government.
3.46 Other notes as required by Schedule III of the Act are either nil or not applicable hence not disclosed.
3.47 There are no transactions with struck off companies under section 248 or 560
3.48 The Minority Share holders has filed a petition against the Company and the same has been accepted by the Hon'ble
NCLT.The verdict of the NCLT was in favour of the Company . As per the information from Hon'ble NCLAT minority Share
Holders has filed a petition against the favourable order of Hon'ble NCLT. Refer Note 2.22
3.49 The Company doesn’t have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.
3.50 The Company doesn’t have any Immovable Property whose title deeds are not held in the name of the Company.
3.51 The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful
defaulter at any time during the financial year or after the end of reporting period but before the date when financial
statements are approved
3.52 The Company does not have any transaction which is not recorded in the books of accounts but has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act,1961(such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961).
3.53 The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC)
beyond the statutory period.
3.54 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
3.55 The Company hasn’t advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
Directly or indirectly lend or invest in other persons or entities identified in any manner what so ever by or on behalf of the
company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
The Company hasn’t received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
3.56 understanding (whether recorded in writing or otherwise) that the Company shall
Directly or indirectly lend or invest in other persons or entities identified in any manner what so ever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
The company has a single reportable segment i.e. financing which has similar risk & return for the purpose of AS-17 on
3.57 ‘Segment Reporting’ notified under the Companies (Accounting Standard) Rules, 2006 as amended. The company operates
in a single geographical segment i.e. domestic.
3.58 The Company has not obtained registration from other financial sector regulators except Reserve Bank of India.
3.59 No penalties were imposed by the regulator during the year during the financial year ended Mar 31,2022 (Pre Year: Nil)
3.60 Corresponding previous year figures have been regrouped/recast and reclassified, wherever necessary to conform to
current year's classifications/disclosure to make them comparable.
54
3.61 Disclosures required as per Reserve Bank of India Master Direction – Non-Banking Financial Company – Non Systemically
Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016
(` in lakhs)
Sl. Particulars As at March 31, 2022
No. Liabilities side : Amount Amount
out-standing overdue
1 Loans and advances availed by the NBFCs inclusive of interest accrued thereon but
not paid:
(a) Debentures : Secured 4,288.00 -
: Unsecured - -
(other than falling within the meaning of public deposits) - -
(b) Deferred Credits Nil -
(c) Term Loans Nil -
(d) Inter-corporate loans and borrowing - -
(e) Commercial Paper Nil -
(f) Public Deposits Nil -
(g) Other Loans – - -
Cash credit / overdraft facilities from banks -
Vehicle Loans -
Unsecured Loans -
Subordinated debts 5,149.87 -
2 Break-up of (1)(f) above (Outstanding public deposits inclusive of interest accrued
(a) In the form of Unsecured debentures Nil -
(b) In the form of partly secured debentures i.e. debentures where there is a Nil -
(c) Other public deposits Nil -
Assets side : Amount out-standing
3 Break-up of Loans and Advances including bills receivables [other than those
included in (4) below] :
(a) Secured 6,355.34
(b) Unsecured 2,170.06
4 Break up of Leased Assets and stock on hire and other assets counting towards
(i) Lease assets including lease rentals under sundry debtors :
(a) Financial lease Nil
(b) Operating lease Nil
(ii) Stock on hire including hire charges under sundry debtors:
(a) Assets on hire -
(b) Repossessed Assets 37.19
(iii) Other loans counting towards asset financing activities
(a) Loans where assets have been Nil
(b) Loans other than (a) above Nil
5 Break-up of Investments
Current Investments :
1 Quoted :
(i) Shares
(a) Equity -
(b) Preference -
(ii) Debentures and Bonds -
(iii) Units of mutual funds -
(iv) Government Securities -
(v) Others (please specify) -
2 Unquoted :
(i) Shares
(a) Equity -
(b) Preference -
55
Long Term investments :

1 Quoted :
(i) Shares
(a) Equity -
(b) Preference -
2 Unquoted :
(i) Shares
(a) Equity -
(b) Preference -
(iv) Government Securities 20.23
6 Borrower group-wise classification of assets financed as in (3) and (4) above :
Amount net of provisions
Category
Secured Unsecured Total
1 Related Parties
(a) Subsidiaries - - -
(b) Companies in the same group - - -
(c) Other related parties - - -
2 Other than related parties 5,190.71 1,113.37 6,304.08
7 Investor group-wise classification of all investments (current and long term) in shares and securities (both quoted
Market Value / Book Value
Break up or (Net of
Category fair value or Provisions)
NAV
1 Related Parties
(a) Subsidiaries
(b) Companies in the same group - -
(c) Other related parties
2 Other than related parties 20.23
Total 20.23 -
8 Other information
Particulars Amount
(i) Gross Non-Performing Assets*
(a) Related parties -
(b) Other than related parties 5058.81
(ii) Net Non-Performing Assets*
(a) Related parties -
(b) Other than related parties 2837.49
(iii) Assets acquired in satisfaction of debt -
Sd/- Sd/-
(DIN : 00074708) (DIN : 00135500)
Sd/-

Date : 25.08.2022 Date : 25.08.2022
56

BRD Securities LTD Audit Report 2021 22

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BRD Securities LTD Audit Report 2021 22

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BRD SECURITIES LIMITED

KEY MANAGERIAL PERSONNEL (KMPs)

The Members of BRD Securities Limited

Particulars Year ended 31.03.2022 Year ended 31.03.2021

Expense 30, 14, 65, 715 34, 79, 40, 114

Less : Tax Expense (14, 38, 10, 00) (69,66,700)

STATE OF AFFAIRS OF THE COMPANY:

DIVIDEND & RESERVES:

LOANS AND INVESTMENT

RELATED PARTY TRANSACTIONS

Total Meetings during the year 9 3 3 1 3

William Varghese C.C 8 3 2 1 3

Kochumathew C.J 2 N.A N.A N.A N.A

Appumon C.K 9 N.A N.A N.A N.A

Porathur Antony Devassy 9 N.A N.A 1 N.A

Jojo Joseph Njezhuvinkel 9 N.A 2 N.A N.A

Surendran T.K 2 N.A N.A N.A N.A

Arimboor Cherukutty Sunitha 6 N.A N.A N.A N.A

Joy Gopan 4 N.A N.A N.A N.A

Roshini Simon 6 N.A N.A N.A N.A

CORPORATE SOCIAL RESPONSIBILITY

CHANGE IN DIRECTORS & KMPS

EVALUATION OF PERFORMANCE OF DIRECTORS

DECLARATION OF DIRECTORS INDEPENDENCE

DIRECTORS RESPONSIBILITY STATEMENT:

1. Shri. CS Bahuleyan Raman Nalupurakkal

Nomination and Remuneration Committee

1. Shri. Jojo Joseph Njezhuvinkel

Stakeholders Relationship Committee

1. Shri. Mathew Jose

Corporate Social Responsibility Committee

1. Shri. William Varghese Chungath Cheru

Policy on Directors Appointment

Policy on Fair Practice Code and Customer Grievance Redressal

Interest Rate Policy

Policy on Resource Mobilization

Secretarial Audit Report

“Referring to RBI Master Direction RBI/DNBR/2016‐17/44 ‐ DNBR.PD.007.03.10.119/2016‐17 Para No 5. In exercise of the

By order of Board of Directors

1. Details of contracts or arrangements or transactions not at arm’s length basis

b. Nature of contracts/ arrangements/ transactions Nil

c. Duration of the contracts / arrangements/ transactions Nil

g. Amount paid as advances, if any: Nil

2. Details of material contracts or arrangement or transactions at arm’s length basis

b. Nature of contracts/ arrangements/ transactions : Remuneration to directors appointed in office

c. Duration of the contracts / arrangements/ transactions : Subject to decision of the Board

c. Duration of the contracts / arrangements/ transactions : Subject to decision of the Board

e. Date(s) of approval by the Board, if any:

e. Date(s) of approval by the Board, if any:

For and on behalf of the Board of Directors

Name of Director Mr. Porathur Antony Devassy

Date of first appointment on Board 06/10/2001

Experience More than 21 years of experience in top

Relationship with other Directors / KMP of the Nil

Terms and Conditions of appointment/ Non-Executive Director

Remuneration sought to be paid. Nil

Name of Director Mr.Jojo Joseph Njezhuvinkel

Date of first appointment on Board 23/06/2016

Qualifications (1).Diploma in Industrial Engineering (2)P G in Business

Experience More than 30 years of experience in top

Relationship with other Directors / KMP of the Nil

Terms and Conditions of appointment/ Non-Executive Director