Arman Financial Services Limited has confirmed that its listed secured non-convertible debentures (NCDs) outstanding as of March 31, 2026, are fully secured. The company holds an exclusive charge on book debts, ensuring a security cover of 1.10 times the outstanding debt value based on book value calculations.

The disclosure was made to BSE Limited pursuant to Regulation 54 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing includes a certificate from the statutory auditor, Laxminiwas & Co., verifying the asset cover and compliance with financial covenants.

Auditor Certification

Laxminiwas & Co., the statutory auditor of Arman Financial Services Limited , provided limited assurance on the statement of security cover. The audit firm confirmed that the company has complied with the requirement to maintain 110% asset cover for debt securities amounting to ₹35,500.04 lakhs and 100% cover for debt securities of ₹4,200 lakhs.

The certificate is based on unaudited financial results and records as of March 31, 2026. The auditor verified that the information was accurately extracted from the company's books and that financial covenants were met.

Security Cover Details

The statement of security cover details the assets backing the debentures. The total book value of assets charged on an exclusive basis is ₹43,739.83 lakhs. This includes loans receivable under financing activities, property, plant and equipment, and investments.

The table below summarizes the security position as of March 31, 2026:

The company stated that the market value for certain assets, such as bank balances and debt service reserve accounts (DSRA), is not applicable, hence the carrying value was used for the calculation. The certificate was signed by CA Guharoy Ashish Kumar of Laxminiwas & Co. and Aalok Jayendra Patel, Managing Director of Arman Financial Services Limited.

Arman Financial Services has received a favourable ruling from the Commissioner of Income Tax (Appeals) [CIT(A)], Income Tax Department, in connection with its income tax appeal for Assessment Year 2012-13. The order, dated May 05, 2026, was passed under Section 250 of the Income-tax Act, 1961, and pertains to the appeal filed against an assessment order passed under Section 143(3). The company disclosed this development on May 06, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Appellate Order

The appellate authority adjudicated various additions and disallowances made by the Assessing Officer, with the outcome being largely in favour of the company. The following table summarises the key particulars of the order:

Significant Relief Granted on Key Disputed Matter

A central issue in the appeal concerned the treatment of Rs. 15,00,00,000 received by the company in the form of contribution towards Compulsorily Convertible Debentures (CCDs) and equity shares. The Assessing Officer had treated this amount as unexplained cash credits. The appellate authority, however, found this treatment to be untenable. As stated in the order:

"The AO, in treating the amount received of Rs. 15,00,00,000/- by the appellant in the form of contribution towards CCDs/Equity shares as unexplained cash credits, is found to be untenable. Accordingly, the addition made by the AO of Rs. 15,00,00,000/- as unexplained cash credits in the assessment order passed under Section 143(3) of the Act is hereby deleted."

The company confirmed that there is no material adverse financial impact on its operations or finances arising from this order.

Company's Compliance and Representation

Arman Financial Services stated that it had duly represented its case along with necessary evidence and submissions during the appellate proceedings. The company further affirmed that it continues to remain compliant with applicable tax laws and regulations. The disclosure was made in accordance with the company's obligations under the SEBI listing framework, ensuring timely and transparent communication to the stock exchanges.