m. Provisions and contingent liabilities

Provisions are recognised when the Company has
a present obligation (legal or constructive) as a
result of past events, it is probable that an outflow
of resources will be required to settle the obligation
and a reliable estimate can be made of the amount
of the obligation.

Contingent liability is disclosed for all:

i. possible obligations that arise from past events
and whose existence will be confirmed only by
the occurrence or non-occurrence of one or
more uncertain future events not wholly within
the control of the Company (or)

ii. present obligations arising from past events
where it is not probable that an outflow of
resources embodying economic benefits
will be required to settle the obligation or a
sufficiently reliable estimate of the amount of
the obligation cannot be made.

n. Cash and cash equivalents

Cash represents of cash on hand and demand
deposits with banks. Cash equivalents represents
short-term, highly liquid investments that are readily
convertible into cash without significant risks of
changes in value. Other bank balances comprise
amounts which are restricted in nature, held as
margin money against guarantee, balances held
in unpaid dividend bank accounts and unspent
CSR accounts.

Cash flow statement

Cash flow statements are reported using the indirect
method, whereby profit for the period is adjusted
for the effects of transactions of non-cash nature,
any deferrals or accruals of operating cash receipts
or payments and items of income or expenses
associated with investing or financing cash flows.
The cash flows from operating, investing and
financing activities of the Company are segregated
based on the nature of transactions.

o. Earnings per share

Basic earnings per share is computed by dividing
the profit after tax by the weighted average number
of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing
the profit after tax as adjusted for dividend, interest
and other charges to expense or income (net of any
attributable taxes) relating to the dilutive potential
equity shares, by the weighted average number of
equity shares considered for deriving basic earnings
per share and the weighted average number of
equity shares which would have been issued on the
conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only
if their conversion to equity shares would decrease
the net profit per share from continuing operations.
Potential dilutive equity shares are deemed to be
converted as at the beginning of the period, unless
they were issued later. The dilutive potential equity
shares are adjusted for the proceeds receivable had
the shares been issued at average market value of
the outstanding shares. Dilutive potential equity
shares are determined independently for each
period presented. The number of equity shares and
potentially dilutive equity shares are adjusted for
share splits / reverse share splits and bonus shares,
as appropriate.

p. Dividend to shareholders

Final dividend distributed to Equity shareholders is
recognised in the period in which it is approved by
the members of the Company in its Annual General
Meeting. Interim dividend is recognised when
approved by the Board of Directors at the Board
Meeting. Both final dividend and interim dividend are
recognised in the Standalone Statement of Changes
in Equity.

q. Derivative financials instruments

The Company uses foreign currency forward
contracts to hedge its risks associated with
foreign currency fluctuations relating to certain
firm commitments.

Forward contracts are initially recognised at fair
value on the date the contract is entered into and
are subsequently re-measured at fair value at
each reporting date. The resulting gain or loss is
recognised in the statement of profit and loss.

r. Fair value measurement

Some of the Company's accounting policies or
disclosures require the measurement of fair value for
both financial and non-financial assets and liabilities.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the time
of measurement. When measuring fair value, the
Company takes into account the characteristics of
the asset or liability if the market participants would
take those characteristics into account when pricing
the asset or liability at the measurement date.

The Company has an established framework with
respect to the measurement of fair values. Fair
values are recognised into different levels in a fair
value hierarchy based on the inputs used in the
valuation techniques which are as follows:

i. Level 1 fair value measurements are those
derived from quoted prices (unadjusted) in
active markets for identical assets or liabilities.

ii. Level 2 fair value measurements are those
derived from inputs other than quoted prices
included within Level 1 that are observable
for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).

iii. Level 3 fair value measurements are those
derived from valuation techniques that include
inputs for the asset or liability that are not based
on observable market data (unobservable
inputs).

s. Financial instruments

Recognition and initial measurement

Trade receivables and debt securities issued are
initially recognised when they are originated. All
other financial assets and financial liabilities are
initially recognised when the Company becomes a
party to the contractual provisions of the instrument.

A financial asset or financial liability is initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted
from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition.
However, trade receivables that do not contain a
significant financing component is measured at
transaction price.

Transaction costs directly attributable to the

acquisition of financial assets or financial liabilities

at fair value through profit or loss are recognised

immediately in the statement of profit and loss.

Classification and subsequent measurement

Financial assets

i. On initial recognition, financial assets are
measured at

- Amortised cost and

- Fair value through profit and loss. (FVTPL)

ii. A financial asset is measured at amortised cost
if it meets both of the following conditions and
is not designated as at Fair Value Through Profit
or Loss (FVTPL):

- The asset is held within a business model
whose objective is to hold assets to
collect contractual flows; and

- The contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

iii. All financial assets not classified as measured
at amortised cost as described above are
measured at FVTPL. This includes all derivative
financial assets. On initial recognition, the
Company may irrevocably designate a financial
asset that otherwise meets the requirements
to be measured at amortised cost as at
FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would
otherwise arise.

iv. Financial assets at FVTPL - These are
subsequently measured at fair value. Net gains
and losses, including any interest or dividend
income, are recognised in profit or loss.

v. Financial assets at amortised cost - These
assets are subsequently measured at
amortised cost using the effective interest
method. The amortised cost is reduced by
impairment losses. Interest income, foreign
exchange gains and losses and impairment
losses are recognised in statement of profit
and loss.

vi. Financial assets are not re-classified subsequent
to their initial recognition, except if and in the
period the Company changes its business
model for managing its financial assets.

Financial liabilities

i. Financial liabilities are classified as measured at

a. Amortised cost and

b. Fair Value through Profit and Loss. (FVTPL)

ii. A financial liability is classified as at FVTPL if it is
classified as held-for-trading, or it is a derivative
or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at
fair value and net gains and losses, including
any interest expense, are recognised in
statement of profit and loss.

iii. Other financial liabilities are subsequently
measured at amortised cost using the effective
interest method. Interest expense, foreign
exchange gains and losses are recognised
in profit and loss. Any gain or loss on de¬
recognition is also recognised in statement of
profit and loss.

De-recognition

Financial assets

The Company de-recognises a financial asset
when the contractual rights to the cash flows from
the financial asset expire, or it transfers the rights to
receive the contractual cash flows in a transaction
in which substantial risks and rewards of ownership
of the financial asset are transferred, or in which the
Company neither transfers nor retains substantial
risks and rewards of ownership and does not retain
control of the financial asset.

If the Company enters into transactions whereby it
transfers assets recognised on its balance sheet but
retains either all or substantially all of the risks and
rewards of the transferred assets, the transferred
assets are not derecognised.

On de-recognition of a financial asset in its entirety,
the difference between the asset's carrying amount
and the sum of the consideration received and
receivable is recognised as gain or loss in the
statement of profit and loss.

Financial liabilities

The Company de-recognises a financial liability
when its contractual obligations are discharged or
cancelled or gets expired. The difference between
the carrying amount of the financial liability de¬
recognised and the sum of consideration paid
and payable is recognised as gain or loss in the
statement of profit and loss.

The Company also de-recognises a financial liability
when its terms are modified and the cash flows
under the modified terms are substantially different
from before they were modified. In this case, a
new financial liability based on modified terms is
recognised at fair value. The difference between the
carrying amount of the financial liability extinguished
and the new financial liability with modified terms is
recognised in statement of profit and loss.

Offsetting

Financial assets and financial liabilities are offset
and the net amount presented in the balance sheet
when, and only when, the Company currently has a
legally enforceable right to set off the amounts and
it intends either to settle them on a net basis or to
realise the asset and settle the liability simultaneously.

Impairment of financial assets

The Company recognises loss allowances for
expected credit loss (“ECU’) on financial assets
measured at amortised cost. At each reporting
date, the Company assesses whether such financial
assets carried at amortised cost are credit impaired.
A financial asset is credit-impaired when one or
more events that have a detrimental impact on the
estimated future cash flows of the financial asset
have occurred.

The Company measures loss allowance at an
amount equal to lifetime expected credit losses
which are measured as 12 month expected credit
losses for which credit risk has not increased
significantly since initial recognition.

Loss allowances for trade receivables are always
measured at an amount equal to life time expected
credit losses.

Lifetime expected credit losses are the expected
credit losses resulting from all possible default events
over the expected life of a financial instrument. The
12-month ECL is a portion of the ECL which results
from default events that are possible within 12
months after the reporting date.

Measurement of expected credit losses:

Expected credit losses are a probability-weighted
estimate of credit losses.

The impairment losses and reversals are recognised
in the statement of profit and loss.

Loss allowance for financial assets measured at
amortised cost are deducted from gross carrying
amount of the assets. The gross carrying amount
of financial assets is written off (either partially or in
full) to the extent that there is no realistic prospect
of recovery.

t. Borrowing cost

Borrowing costs are recognised as expenses in the
period in which they are incurred. Borrowing costs
directly attributable to the acquisition, construction
or production of qualifying assets, which are assets
that necessarily take a substantial period of time to
get ready for their intended use or sale, are added
to the cost of those assets, until such time as the
assets are substantially ready for their intended use
or sale.

u. Goods and Service tax

Goods and Service Tax input credit is accounted for
in the books in the period in which the underlying
products and services received is accounted and
when there is reasonable certainty in availing /
utilising the credits.

v. Insurance

I nsurance claims are accounted for on the basis
of claims admitted / expected to be admitted and
to the extent that the amount recoverable can be
measured reliably and it is reasonable to expect
ultimate collection.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated
using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the
defined benefit obligation liability recognised in the balance sheet.

New Labour code:

On November 21,2025, the Government of India notified four Labour Codes - the Code on Wages, 2019, the Industrial Relations
Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020,
collectively referred to as the ‘New Labour Codes', consolidating 29 existing labour laws. The Ministry of Labour & Employment
published draft Central Rules and FAQs on December 30, 2025, to facilitate assessment of the financial impact arising from
these regulatory changes.

Based on the Company's assessment, the impact of the notification is not material and has been appropriately accounted for in
the Standalone financial statements for the year ended March 31, 2026. The Company will continue to monitor the finalisation
of State Rules and government clarifications to recognise any financial impact as appropriate.

i. Secured by pari passu charge on inventories and trade receivables, both present and future.

ii. The facility is unsecured and the maximum amount outstanding at any time during the year was ' 1,426.15 Crores (previous
year: ' 1,868.80 Crores). The Company's commercial papers were listed on the bourses of BSE Limited. The funds raised
from the commercial paper were utilised for working capital purposes.

iii. Quarterly returns and statements of current assets filed by the Company with banks or financial institutions agree with the
books of accounts.

Defined Contribution Plans

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees
towards Provident Fund (PF) and Employees' State Insurance (ESI) Scheme which are defined contribution plans. The Company
has no obligations other than to make the specified contributions. The contributions are charged to the Statement of Profit and
Loss as they accrue. The amount recognised as an expense towards contribution to provident fund is ' 14.19 Crores (Previous
year - ' 12.74 Crores).

b) As a lessor

Operating leases

The Company leases out certain assets and has classified these leases as operating leases, because they do not transfer
substantially all of the risks and rewards incidental to the ownership of the assets.

The rental income recognised by the Company during year ended March 31, 2026 was ' 1.14 Crores (March 31, 2025: ' 1.06
Crores) is disclosed as rental income under Other income (Refer note 30)

The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received
after the reporting date

Finance leases

The Company has leased an asset which is classified as finance lease, as risks and rewards are incidental to the ownership of
the assets are substantially transferred.

The finance income recognized by the company amounting to ' 0.65 Crores (March 31,2025 - ' 0.28 crs) is disclosed under
Other income (Refer note 30). Lease receivable as on 31.03.2026 amounts to ' 7.51 crs (March 31, 2025 - ' 7.82 crs) (Refer
note 18).

The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received
after the reporting date:

Sensitivity analysis

Sensitivity analysis is carried out for un-hedged foreign exchange risk as at the reporting dates. For every 1 % strengthening
of Indian Rupees against all relevant uncovered foreign currency transactions profit before tax would be impacted by gain
of ' 0.26 Crores (previous year loss of ' 0.08 Crores). Similarly, for every 1% weakening of Indian Rupee against these
transactions, there would be an equal and opposite impact on the profit before tax.

b. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates.

The Company borrows funds to meet its short-term requirements which are at fixed interest rates. Hence, the Company is
not exposed to any significant interest rate risk.

c. Credit risk

Credit risk is a risk of financial loss to the Company, if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, arises principally from the Company's receivables from customers, loans, and other financial
assets. The carrying value of financial assets represents the maximum amount of credit risk.

The Company mitigates credit risk by strict receivable management, procedures and policies. The Company has a dedicated
independent team to review credit and monitor collection of receivables on a pan India basis. Credit insurance is resorted
to most of the receivable and in such cases the credit risk is restricted upto 15 % of the receivable value.

The concentration of credit risk is limited due to the customer base being large and unrelated. Further, the Company
constantly evaluates the quality of trade receivable and provides allowance towards impairment of trade receivables.

I n addition to the historical pattern of credit loss, the Company closely monitors its customers and assesses conditions
such as change in payment terms, inability of the customer to pay etc. depending on severity of each case. Basis this
assessment, the allowance for impairment of trade receivables as at the reporting dates is considered adequate.

Refer note 15 for the movement in the allowance of trade receivables.

d. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset.

The Company has built an appropriate liquidity risk management framework for its short, medium, and long-term funding
and liquidity requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and
un-availed borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles
of financial liabilities.

Note for ratios having variance > 25%:

- Decrease in Finance cost by ' 16.82 crs resulted in increase in Debt-service coverage ratio

All the above ratios have been computed after eliminating one-offs such as dividend income in March 31, 2026 and March
31,2025.

Formulas for above ratios:

a. Current ratio = Current assets/ current liabilities

b. Debt equity ratio = (Total Debt - Cash and cash equivalents)/ (Total equity - Investments in subsidiaries)

c. Debt service coverage ratio = (Profit before tax - Dividend income Finance cost) / (Finance cost Repayment of long¬

term loans during the year)

d. Inventory turnover ratio = (Purchase of traded goods Changes in inventories of traded goods)/ Average inventories

e. Trade receivables turnover ratio = Revenue from operations/ Average trade receivables

f. Trade payables turnover ratio = (Purchase of traded goods Changes in inventories of traded goods)/ Average trade payables

g. Net capital turnover ratio = Revenue from operations/ (Average inventories Average trade receivables - Average trade
payables)

h. Net profit % = (Net profit after tax - Dividend income - Tax expenses in respect of earlier years)/ Revenue from operations

i. Return on equity % = Profit after tax/ (Average equity - Investments in subsidiaries)

j. Return on capital employed (Net of cash) % = (Profit before tax Finance costs)/ (Average capital employed - Investment
in subsidiaries - cash and cash equivalents) where Capital employed = Equity Borrowings.

k. Return on capital employed (Gross) % = (Profit before tax Finance costs)/ (Average capital employed - Investment in
subsidiaries)

l. Return on investment % = Income generated from invested funds/ Average invested funds in treasury investments.

iv. Liquidated during the year

v. The stepdown subsidiary of our company, Arena Bilgisayar Sanayi Ve Ticaret A.S, Turkey (“Arena”), a company listed in
Istanbul, Turkey, has, pursuant to scheme of internal restructuring, transferred 100% of the ownership of Arena Connect
Teknoloji Sanayi ve Ticaret A.S (“Arena Connect”, a wholly owned subsidiary of Arena) to Arena Mobile Iletisim Hizmetleri
ve Tuketici Elektronigi Sanayi ve Ticaret A.S (“Arena Mobile”, also a wholly owned subsidiary of Arena) and Arena Mobile
was merged with Arena Connect, the subsisting entity, effective February 09, 2026.

44. Segment Reporting

Since the Company prepares consolidated financial statements, segment information has been disclosed in the consolidated
financial statements as per Ind AS-108 “Operating Segment”.

46. Additional regulatory information

I. The Company has not 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:

(a) 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

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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

(a) 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

(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

47. The Company has audit trail feature enabled and the same has been operating effectively during the financial year. The
company has established and maintained adequate internal control over its financial reporting. The audit trail that was
enabled and operated for the year ended March 31, 2025 has been preserved as per the statutory requirements for record
retention.

48. Events after the reporting period

The Board has recommended a dividend of ' 6/- (300%) per equity share of ' 2/- each for the year ended March 31, 2026,
subject to the approval of shareholders of the company at the ensuing Annual General Meeting (‘AGM'). The dividend will
be paid within 30 days from the date of the ensuing AGM of the Company. The Record date for payment of dividend, as
recommended by the Board, is fixed as July 03, 2026.

49. These standalone financial statements were approved for issue by the Board of Directors on May 13, 2026.