Note 15.1

a) Secured by a negative lien on the assets of the Company, with a minimum asset cover of 100%. Further the Company shall be entitled to dispose of, transact or otherwise deal, in the ordinary course of business upto 5% of the Specific Assets, including by way of a securitization transaction and as may be required under any law, regulations, guidelines or rules. Subject to maintenance of Asset Cover, as may be applicable and in the normal course of business, the Company may without the consent/approval of the Trustee/Debenture Holder(s)/Beneficial Owner(s)/creditors be entitled to make further issue(s) of Debentures, raise further loans and advances and/or avail further deferred payment guarantees or other financial facilities from time to time from any persons/bank/financial institution/body corporate/any other agency.

Secured by way of Negative Lien on the Assets, to the extent of Asset Cover, without any encumbrance in favour of the Debenture Trustee except to the extent of the charge created in favour of its depositors of the Company pursuant to the regulatory requirement under Section 29B of the NHB Act.

However, the Company shall, from time to time, be entitled to create any charge, mortgage, pledge, security interest, encumber or create lien on its Assets, subject to maintenance of Asset Cover, except to the extent of charge created in favour of its depositors pursuant to the regulatory requirement under Section 29B of the NHB Act or as may be required under any law, regulation, guidelines or rules.

b) The monies raised through issuance of the said Debentures were utilized for the purpose for which the same was raised and as mentioned in the respective disclosure documents.

c) The Company has not defaulted in the repayment of the principal amount of, or interest, on such debt securities.

a) Secured by a negative lien on the assets of the Company, with a minimum asset cover of 100%. Further the Company shall be entitled to dispose of, transact or otherwise deal, in the ordinary course of business upto 5% of the Specific Assets, including by way of a securitization transaction and as may be required under any law, regulations, guidelines or rules. Subject to maintenance of Asset Cover, as may be applicable and in the normal course of business, the Company may without the consent/approval of the Trustee/Debenture Holder(s)/Beneficial Owner(s)/creditors be entitled to make further issue(s) of Debentures, raise further loans and advances and/or avail further deferred payment guarantees or other financial facilities from time to time from any persons/bank/financial institution/body corporate/any other agency.

Secured by way of Negative Lien on the Assets, to the extent of Asset Cover, without any encumbrance in favour of the Debenture Trustee except to the extent of the charge created in favour of its depositors of the Company pursuant to the regulatory requirement under Section 29B of the NHB Act.

However, the Company shall, from time to time, be entitled to create any charge, mortgage, pledge, security interest, encumber or create lien on its Assets, subject to maintenance of Asset Cover, except to the extent of charge created in favour of its depositors pursuant to the regulatory requirement under Section 29B of the NHB Act or as may be required under any law, regulation, guidelines or rules.

b) The monies raised through issuance of the said Debentures were utilized for the purpose for which the same was raised and as mentioned in the respective disclosure documents.

c) The Company has not defaulted in the repayment of the principal amount of, or interest, on such debt securities.

a) Secured by a negative lien on the assets of the Company, with a minimum asset cover of 100%. Further the Company shall be entitled to dispose of, transact or otherwise deal, in the ordinary course of business upto 5% of the Specific Assets, including by way of a securitization transaction and as may be required under any law, regulations, guidelines or rules. Subject to maintenance of Asset Cover, as may be applicable and in the normal course of business, the Company may without the consent/approval of the Trustee/Debenture Holder(s)/Beneficial Owner(s)/creditors be entitled to make further issue(s) of Debentures, raise further loans and advances and/or avail further deferred payment guarantees or other financial facilities from time to time from any persons/bank/financial institution/body corporate/any other agency.

Secured by way of Negative Lien on the Assets, to the extent of Asset Cover, without any encumbrance in favour of the Debenture Trustee except to the extent of the charge created in favour of its depositors of the Company pursuant to the regulatory requirement under Section 29B of the NHB Act.

However, the Company shall, from time to time, be entitled to create any charge, mortgage, pledge, security interest, encumber or create lien on its Assets, subject to maintenance of Asset Cover, except to the extent of charge created in favour of its depositors pursuant to the regulatory requirement under Section 29B of the NHB Act or as may be required under any law, regulation, guidelines or rules.

b) The Company has not defaulted in the repayment of the principal amount of, or interest, on such term loans, Loans repayable on demand and securitization Liabilities.

These Bonds are subordinated to present and future senior indebtedness of the Company and qualify as Tier II capital under National Housing Bank (NHB) guidelines for assessing capital adequacy. Based on the balance term to maturity as at March 31, 2025, 100% (F.Y. 2023-24-100 %) of the book value of the subordinated debt is considered as Tier II capital for the purpose of capital adequacy computation.

The borrowings have not been guaranteed by directors or others.

The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the at the balance sheet date.

Nature and purpose of each reserve

Securities Premium Reserve

Securities Premium Reserve" is used to denote the Share premium received on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Cash Flow Hedge Reserve

It represents the effective portion of cumulative gains/(losses) arising on revaluation of the derivative instruments designated as cash flow hedges through OCI.

Special Reserve - I:

Special Reserve - I has been created over the years in terms of Section 36(1)(viii) of the Income-tax Act, 1961, out of the distributable profits of the Company. The amounts of Special Reserve account represent, the reserve created in terms of the provision of Section 36(1)(viii) read together with the proviso thereof, from time to time. Special Reserve No. I relates to the amounts transferred up to the Financial Year 1996-97 (Assessment Year 1997-98) when the word ‘created' only was used in the said section and not ‘created and maintained'. Admittedly, the position has changed after the amendment made in Section 36(1)(viii) by the Finance Act 1997 with effect from Assessment year 1998-99, when the mandatory requirement of ‘maintaining' the special reserve created was inserted. Accordingly, it was interpreted that the Special Reserve created up to Assessment Year 1997-98 need not be ‘maintained'. As a logical corollary, it is construed that up to Assessment Year 1997-98, the amounts carried to special reserve ought to be understood as amounts created by transferring to the credit of Special Reserve from time to time.

Special Reserve - II:

Special Reserve - II has been created over the years in terms of Section 36(1)(viii) of the Income-tax Act, 1961, out of the distributable profits of the Company transferred from Financial Year 1997-98 (Assessment Year 1998-99). In the F.Y. 2025-26'1399.99 Crore (F.Y 2024-25'1299.99 Crore) has been transferred to Special Reserve No. II in terms of Section 36(1)(viii) of the Income tax Act, 1961.

Statutory Reserves under Section 29C (Regulatory Capital) of NHB:

As per Section 29C of the National Housing Bank Act, 1987 (the ‘NHB Act'), the Company is required to transfer atleast 20% of its net profits every year to a reserve before any dividend is declared and no appropriation from the statutory reserves except for the purpose as may be specified by NHB from time to time and every such appropriation shall be reported to the NHB. For this purpose, any Special Reserve created by the Company under Section 36(1)(viii) of the Income tax Act, 1961 is considered to be an eligible transfer under Section 29C of the NHB Act, 1987 also. The Company has transferred a sum of ' 1399.99 Crore for F.Y 2025-26 (F.Y. 2024-25'1299.99 Crore) to Special Reserve No. II in terms of Section 36(1)(viii) of the Income tax Act, 1961 and ' 1.00 lakh for F.Y. 2025-26 (F.Y. 2024-25'1.00 lakh) to Statutory Reserve under section 29C of the NHB Act, 1987.

General Reserve:

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to 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 Companies Act, 2013. However, since the Company utilises the deduction available to Housing Finance Companies registered with National Housing Bank as provided in Section 36(1)(viii) of the Income tax Act, 1961, wherein the proviso of the Section stipulates that the amount Carried to such reserve account from time to time exceeds twice the amount of the paid up share capital and general reserves of the Company, the rebate is restricted to the twice of the aggregate of paid up capital and the general reserve. Therefore, the Company transfers funds to General Reserve in order to avail the full benefit of Section 36(1)(viii). For the year, the Company has transferred an amount of ' 1000 Crore to General Reserve (F.Y. 2024-25'1000 Crore).

Impairment Reserve:

The Reserve Bank of India (RBI) issued a notification on 13 March 2020 stating that NBFCs should simultaneously maintain asset classification and compute provisions as per extant prudential norms on income recognition, asset classification and provisioning (IRACP), including borrower-/beneficiary-wise classification, provisioning for standard and restructured assets, and NPA ageing. In case where impairment allowance under Ind AS 109 is lower than the provisions required as per IRACP the difference should be appropriated from net profit or loss after tax to a separate ‘impairment reserve'. The balance in the ‘impairment reserve' shall not be reckoned for regulatory capital. Further, no withdrawals shall be permitted from this reserve without prior permission from the Department of Supervision, RBI. The requirement for ‘impairment reserve' shall be reviewed, going forward.

Retained Earnings:

Retained earnings represents the surplus in Profit and Loss Account and appropriations.

36. FINANCIAL INSTRUMENTS36.1 Capital Management

The Company maintains an actively managed capital base to cover risks inherent in the business and is meeting the capital adequacy requirements as per the directions issued by Reserve Bank of India (RBI). The adequacy of the Company's capital is monitored using, among other measures, the guidelines issued by RBI.

The Company’s objective, when managing Capital, is to safeguard the ability of the Company to continue as a going concern, maintain strong credit ratings and healthy capital ratios to support its business and to maximise shareholder’s value.

The Company’s capital management strategy is to effectively determine, raise and deploy capital to maximize the shareholder’s value. The capital of the Company comprises of Equity Share Capital and subordinated liabilities. No changes have been made to the objectives, policies and processes from the previous years. However, they are under constant review by the Board.

The Management of the Company monitors the Regulatory capital by overviewing Debt Equity Ratio and makes use of the same for framing the business strategies.

36.1.1 Breach of Covenants

To achieve the overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets the financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breach in meeting these financial covenants would permit the banks and/ or financial institutions to immediately call loans and borrowings. There have been no material breaches in the financial covenants of any borrowing in the reporting year.

36.1.2 Regulatory Capital

For regulatory and supervisory purposes including various types of reporting as per the directions issued by Reserve Bank of India (RBI) have been considered. Accordingly, regulatory capital consists of Tier 1 capital, which comprises share capital, share premium, retained earnings including current year profit. The other component of regulatory capital is Tier 2 Capital Instruments, which includes upper tier 2 and subordinated bonds. Impairment Reserve of ' 297.50 Crore (F.Y. 2024-25'297.50 Crore) has not been considered as part of Equity.

36.3 Fair Value Measurement

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 in the principal market (or, in its absence, most advantageous) at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique.

The Company evaluates the significance of financial instruments and accuracy of the valuations incorporated in the financial statements as they involve a high degree of judgement and estimation uncertainty in determining the carrying values of financial assets and liabilities at the balance sheet date. Fair value of financial instruments is determined using valuation techniques and estimates which, to the extent possible, use observable market inputs, but in some cases use

non-observable inputs. Changes in the observability of significant valuation inputs can materially affect the fair values of financial instruments. In determining the valuation of financial instruments, the Company makes judgements on the amounts reserved to cater for model and valuation risks, which cover both Level 2 and Level 3 instruments, and the significant valuation judgements in respect of Level 3 instruments.

Fair Value Hierarchy

To show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques, as explained below.

Assets and liabilities carried at fair value or for which fair values are disclosed have been classified into three levels according to the observability of the significant inputs used to determine the fair values. Changes in the observability of significant valuation inputs during the reporting period may result in a transfer of assets and liabilities within the fair value hierarchy. The Company recognises transfers between levels of the fair value hierarchy when there is a significant change in either its principal market or in the observability of inputs used in the valuation techniques as at the end of the reporting period.

Level 1: Fair value measurements are those derived from unadjusted quoted prices in active markets for identical assets or liabilities

Level 2: Fair value measurements are those with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable

Level 3: Fair value measurements are those where at least one input which could have a significant effect on the instrument's valuation is not based on observable market data

Key Inputs

Equity instruments

a. Units held in mutual funds for which quoted market prices are available are measured at fair value using Level 1 inputs. Other fund investments, where fair value is determined based on the Net Asset Value (NAV) as at the reporting date, after considering applicable redemption restrictions and/or other limitations, are generally classified as Level 3 measurements where significant unobservable inputs are involved.

b. Equity instruments in non-listed entities including investment in private equity funds are initially recognised at transaction price and subsequently remeasured (to the extent information is available) and valued using appropriate valuation techniques on a case-by-case basis and classified as Level 3. However, Provision for Diminution in value of Investment has been considered for computing while determining the fair value.

Valuation adjustments and other inputs and considerations

A one percentage point change in the significant unobservable inputs used in fair value measurement of Level 3 financial

assets does not have a significant impact in its value.

No valuation adjustments have been made to the prices/yields provided for valuation.

Valuation methodologies of financial instruments not measured at fair value, i.e. measured using Amortised Cost/Cost

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the Company’s financial statements. These fair values were calculated for disclosure purposes only.

Borrowings

Fair value of borrowings has been estimated by discounting expected future cash flows using discount rate equal to rate that reflects the market risk.

Government debt securities

Government debt securities are financial instruments issued by sovereign governments and include long term bonds with fixed rate interest payments. These instruments are generally highly liquid and traded in active markets resulting in a Level 1 classification.

Other Financial Assets and Liabilities

The carrying amounts of trade payables, cash and cash equivalents, other bank balances, other financial assets and other financial liabilities (other than those specifically disclosed) are considered to be the same as their fair values, due to their short term nature.

36.4 Financial Risk Management

Introduction

The Company has operations in India and representative offices in Dubai. Whilst risk is inherent in the Company's activities, it is managed through an integrated risk management framework, including ongoing identification, measurement, and monitoring, subject to risk limits and other controls. This process of risk management is critical to the Company's continuing profitability and everyone within the Company is accountable for the risk exposures relating to his or her responsibilities. The Company is exposed to credit risk, liquidity risk and market risk. It is also subject to various operating, regulatory and competition risks.

Risk Management Framework

The Company has a formal risk assessment program to proactively identify the risks and ensure all possible strategies to control & mitigate in pursuit of achieving the Company’s objective. Every department is responsible for identifying their risks and putting them in their Risk Registers. The consolidated Risk Register is analyzed at Risk Management Committee meetings.

At present, the risks faced by the Company are broadly categorized as below:

• Liquidity Risk

• Credit Risk

• Market Risk

• Interest Rate Risk

• Regulatory Risk

• Strategic Risk

• Currency Risk & mitigation.

Committees

To bring the collective knowledge in decision making, the Company has undertaken a committee approach to deal with the major risks arising in the organization. Committees, their formation, and the roles are provided below.

Top Level Committee

Risk Management Committee of Board (RMCB)

Company has a Risk Management Committee of Board in place which consists of Independent Directors and the MD & CEO of the Company.

The role of the Committee is as follows-:

• Review of Risk Management Policy

• Review of the status on the risk limits in the Risk Management Policy and Report to the Board

• Review the matters on Risk Management

• Review and monitor the risks to which the Company is exposed.

• Review of the ICAAP framework

Internal Committee

Risk Management Committee and Operational Risk Group (RMC & ORG)

Company has an internal Risk Management Committee and Operational Risk Group whose major function includes review of Risk Registers submitted monthly by all departments. It comprises of HODs of Risk Management, Finance, Marketing, Credit Monitoring, IT, and any other member as nominated by MD & CEO of the Company. A list of functions performed by RMC & ORG is given below -:

• Review of Enterprise Risk Management Policy

• Review of monthly Risk Register submitted by various departments.

• Review of the current status on the outer limits prescribed in the Enterprise Risk Management Policy and submitting the report to RMCB & Board

• Assessment of risks in the Company and suggesting control/mitigation measures thereof The Company has exposure to following risks arising from the financial instruments.

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its payment obligations when they fall due because of mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on acceptable terms. To limit this risk, management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity daily. The Company has developed internal control processes and contingency plans for managing liquidity risk. In addition, the Company is also maintaining Liquidity Coverage Ratio (LCR) from 01^st December, 2025 as prescribed by the regulator. (As per notification no. RBI/DoR/2025-26/355 DoR.LRG.REC.No.274/13-10-004/2025-26 November 28, 2025). Housing Finance being the core business, maintaining the liquidity for meeting the growth in the business as also to honour the committed repayments is the fundamental objective of the Asset Liability Management (ALM) framework. Investments, including investments as a part of liquid asset requirement, also forms part of ALM requirement and it is imperative to constantly monitor the liquidity of the investments to achieve the core objective.

Internal Control Process & Liquidity Management

Being in the business of Housing Loans, funds are required to be raised by the Company ahead of loan disbursements so that there is no liquidity crunch. Funds are required to be raised not only for the incremental housing loan assets but also for meeting the committed/due repayments of the earlier borrowings and/or Interest payments on the borrowings. Funds therefore are raised with a reasonable cushion over and above the committed repayments, committed disbursements and unutilized sanctions in pipeline and the expected business targets.

The Company ensures that funds are available from various investor pools and banks. Liquid funds are available in the form of Non-Convertible Debentures and other Market Instruments, Bank Loans and Refinance from NHB. In case of Public Deposits accepted by the Company, a prescribed percentage (as defined by NHB from time to time) is to be invested in approved securities in terms of Liquid Asset Requirement (as per notification no. RBI/DOR/2025-26/346 DOR.FIN. REC.No.265/03.10.119/2025-26 November 28, 2025). On the assets side, the Company has loan products broadly classified under individual retail loans and project finance loans with varying repayment structures depending upon the nature of product.

The liquidity is managed at the Corporate Office of the Company with Back Offices providing their liquidity requirements. The surplus funds available with the Back Offices are pooled and funds from the market are arranged for the Back Offices having a deficit of funds. Only surplus funds arrived after deducting the committed/confirmed outflows (including projected disbursements of loans) from the available resources-both from internal accretions as well as borrowed funds, would be considered as Surplus available for Investment in approved instruments on day-to-day basis. The Company can place surplus funds in Fixed Deposits with selected Scheduled / Commercial / Foreign Banks and / or Financial Institutions within overall exposure limit fixed for each Bank / FI from time to time by the Board. Considering the market risk and the mark-to-market requirements of the debt mutual funds, currently Company is making Investments only in liquid and overnight schemes of mutual funds. Exposure limits for each Investment instrument are approved by the Board and reviewed from time to time as per the requirements.

ALCO Committee

Roles & Responsibilities

The Asset Liability Management (ALM) Committee presents the Structural and Dynamic Liquidity Report to the Risk Management Committee on a quarterly basis, and meetings are held every month. The ALM Committee formulates the ALM Policy which is reviewed at least once a year. If any change is required, then, the revised policy along with desired change and rationale for the same shall be put up to the Risk Management Committee or any Other Committee constituted by the Board. Consequent to the recommendation of the Risk Management Committee, the reviewed policy would be put up to the Board for its approval.

Credit Risk refers to the risk arising out of the default by the counterparty on its contractual obligations resulting in financial loss to the Company. The Company has defined Loan selection principles for establishing creditworthiness of the counterparties and criteria for determining the quantum of loan. The Company has adopted a policy of dealing with creditworthy counter parties and obtaining sufficient collateral as a means of mitigating the risk of financial loss from defaults. The exposure is continuously monitored.

36.4.2.1 Credit Risk Mitigation measures

Independent internal legal and technical evaluation team in the Company makes credit decisions more robust and in line to manage collateral risk. The in-house Credit team conducts a credit check and verification procedure on each customer, ensuring consistent quality standards to minimize future losses. To review the adherence to laid down policies and quality of appraisal, Company's independent internal audit team conducts a regular review of files on a sample basis. A dedicated collection and recovery team manages lifecycle of transactions and monitors the portfolio quality.

Credit Norms:-Certain credit norms and policies are being followed by the Company to manage credit risk, including a standard credit appraisal policy based on customer credit worthiness. These criteria change between loan products and typically include factors such as profile of applicant, income and certain stability factors such as the employment and dependency detail, other financial obligations of the applicant, Loan to value and the loan-to-cost ratio. Standardized credit approval process including a comprehensive credit risk assessment is in place which encompasses analysis of relevant quantitative and qualitative information to ascertain the credit worthiness of the borrower.

The Credit Policy defines parameters such as Borrower's ability to pay, Reputation of Employer, Nature of employment/ Self-employed, Qualification of Applicants, Stability of Residence, Family size and dependence on Applicants income, Insufficient sales proceeds to pay the dues in case of Project Loans due to project slowdown etc. to ensure consistency of credit quality.

Retail lending:

For retail lending, credit risk management is achieved by considering various factors like:

- Assessment of borrower’s capability to pay - a detailed assessment of borrower’s capability to pay is conducted. The approach of assessment is laid down in the credit policy of the Company. Various factors considered for assessment are credit information report, analysis of bank account statement and valuation of property.

- Security cover - Analysing the value of the property which is offered as security for the loan is essential for the overall underwriting of the loan. It is essential that it is valued before the disbursement of loan to arrive at a clear idea about its cost, valuation, marketability and loan to property ratio.

- Additional Security - Additional Security can be by way of pledge of acceptable Additional Collaterals such as LIC Policies, FDs or other immovable properties. This is taken depending on nature of loan proposal and amount of risk involved.

- Geographical region - The Company monitors loan performance in a particular region to assess if there is any stress due to natural calamities etc. impacting the performance of the loan in a particular geographic region.

Project & High Value lending:

For project & high value lending, credit risk management is achieved by considering various factors like:

- Promoter’s strength - a detailed assessment of borrower’s capability to pay is conducted. Various factors considered for promoter’s assessment are the financial capability, past track record of repayment, management and performance perspective.

- Credit information report - It is very essential to check the Creditworthiness of an Applicant & the Credit History of Borrower for Consumer or Commercial Loans. The Company uses this Report for taking a Decision on Credit Sanction by getting details of the Credit History of a Borrower. For Project Loans, reports from independent institutions are referred so as to get the marketability report of the project and its neighbourhood analysis.

- Security cover - Analysing the value of the property which is offered as security for the loan is essential for the overall underwriting of the loan. With respect to project loans, the main security taken is underlying land and structure there on. Technical appraisals are conducted to establish the life, soundness, marketability and value of the security.

- Additional Security - Additional Security is taken depending on nature of loan proposal and amount of risk involved. In some cases, the hypothecation of receivables from the loan is taken. The Negative lien is marked on the flats in the project to the extent decided by the Competent Authority as per merits of the case. The Company endeavours to maintain the security cover approved by the Competent Authority as per the merit of the case. Personal Guarantee of promoter directors / corporate guarantee of Company is also obtained as Security on case-to-case basis. In some cases, the Additional Collateral in the form of Fixed Deposits are also accepted. In case of Higher Risk, Debt Service Recovery Account is also maintained. The Charge on the security / Additional Collateral security is also registered in Central Registry / ROC.

- Geographical region - The Company monitors loan performance in a particular region to assess if there is any stress due to natural calamities etc. impacting the performance of the loan in that geographic region.

The company has a robust system for risk identification and risk assessment of Project & High value Corporate Loans. The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties and for geographical and industry concentrations, and by monitoring exposures in relation to such limits.

36.4.2.2 Collateral

Retail / Project Loans are primarily secured by an Equitable / Registered Mortgage of Property. Apart from the main security, additional collaterals are also sought depending upon merits of the case. Such additional securities include :

• Government Guarantees or Company Guarantees or Personal Guarantees.

• Negative lien on unsold inventory.

• Undertaking to create a security.

• hypothecation of receivables for the loan is also taken.

The Company after exploring all the possible measures, initiates action under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) against the mortgaged properties as a last resort to recover. Company follows the due procedure as laid down in the SARFAESI Act 2002 and accordingly takes the possession of the properties for its logical conclusion. The Company initiates insolvency proceedings against corporate borrowers in default under IBC code 2016, wherever deemed necessary.

As the procedure involved under SARFAESI is to be followed in a time-bound manner, different loan accounts will be at various stages of SARFAESI proceedings.

36.4.2.3 Impairment Assessment

The Company applies the general approach prescribed under Ind AS 109 for the measurement of impairment on financial assets within the expected credit losses (ECL) model. Under this approach, a loss allowance equal to 12-month expected credit losses (Stage 1) is recognised for financial instruments where credit risk has not increased significantly since initial recognition. For financial instruments that have experienced a significant increase in credit risk since initial recognition, a loss allowance equal to lifetime expected credit losses (Stage 2) is recognised. For credit-impaired financial assets, lifetime expected credit losses continue to be recognised (Stage 3). The assessment of significant increase in credit risk incorporates all reasonable and supportable information available, including qualitative and quantitative factors, historical experience, current conditions and forward-looking estimates.

Definition of Default

The Company classifies a financial instrument as defaulted when the borrower is more than 90 days past due on contractual payments. Once defaulted, such instruments are designated as Stage 3 (credit-impaired) for the purpose of Expected Credit Loss (ECL) calculations. The assessment is based on the Company's approved default criteria and behavioural triggers incorporated in its ECL model.

Stage wise Categorisation of Loan Assets

The company categorises loan assets into stages based on the Days Past Due status as the key quantitative indicator, together with other approved behavioural triggers for determining significant increase in credit risk and credit impairment:

- Stage 1 (0-30 days past due): Exposures classified under Stage 1 are those for which there has not been a significant increase in credit risk since initial recognition, and which were not credit-impaired at origination. In line with the criteria prescribed under Ind AS 109, the Company considers that credit risk has increased significantly when contractual payments are more than 30 days past due. Accordingly, for exposures with less than 30 days past due, the Company measures the loss allowance based on 12-month expected credit losses, applying a one-year probability of default.

- Stage 2 (31-90 days past due): Exposures are classified under Stage 2 when there has been a significant increase in credit risk since initial recognition, but the asset is not yet credit-impaired. In accordance with Ind AS 109, the Company considers contractual payments that are more than 30 days past due as indicative of a significant increase in credit risk. For such exposures, the loss allowance is measured based on lifetime expected credit losses, reflecting the elevated probability of default over the remaining life of the instrument.

- Stage 3 (more than 90 days past due / credit-impaired): Exposures are classified under Stage 3 when they are assessed as credit-impaired. A financial asset is considered credit-impaired when one or more events have occurred that have a detrimental impact on the estimated future cash flows of the asset. In accordance with the Company's approved Expected Credit Loss (ECL) methodology and the principles of Ind AS 109, the Company applies both collective and individual

assessments to identify such exposures. The Company considers default to have occurred when contractual payments are more than 90 days past due, or when other objective evidence of impairment exists. For Stage 3 exposures, the loss allowance for Stage 3 exposures is measured based on lifetime expected credit losses.

Grouping of Loan Portfolio:

For determining significant increases in credit risk and recognising loss allowance on a collective basis, the Company has grouped financial instruments based on shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increase in credit risk identified on a timely basis. The company has grouped portfolio based on borrower type Individuals (Salaried / Non-Individuals) and based on the purpose of the loan Housing loans / non-housing loans / Project and Corporate lending.

Note: During the year, the Company revised its Expected Credit Loss (ECL) estimation methodology for its loan portfolio by transitioning from a Markov Chain-based model to a Roll Rate model. The revised methodology estimates expected credit losses based on the observed migration of loan accounts across delinquency buckets, calibrated using the Company's historical portfolio performance and supplemented with current and forward-looking information, as required under Ind AS 109, Financial Instruments.

Management believes that the Roll Rate model more appropriately reflects the credit risk characteristics and behavioural patterns of the Company's loan portfolio, resulting in a more reliable and representative estimate of expected credit losses. The revised model has been developed, validated and calibrated using historical recovery and default trends and is subject to periodic review and validation in accordance with the Company's model governance framework.

In accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors, the revision in the ECL estimation methodology represents a change in accounting estimate arising from the application of an improved estimation technique and updated assumptions, rather than a change in accounting policy. Accordingly, the revised methodology has been applied prospectively from the date of implementation, and the resulting impact has been recognized in the Statement of Profit and Loss for the current year.

36.4.2.4 Methodology for Estimation of Expected Credit Losses Probability of Default

Probability of Default (PD) represents the likelihood that a loan will default over a specified time horizon based on the Company's historical credit experience and ECL methodology. A 12-month PD reflects the probability of such migration over the next 12 months, while lifetime PD captures the probability of default over the remaining contractual life of the loan. These estimates are used in measuring expected credit losses under the impairment requirements of Ind AS 109.

The Company's loan portfolio is classified into Stage 1, Stage 2 and Stage 3 based on its approved ECL methodology. Stage 1 exposures are measured using 12-month PD, whereas Stage 2 and Stage 3 exposures are measured using lifetime PD, consistent with the impairment requirements of Ind AS 109.

Exposure at default

Exposure at Default (EAD) represents the expected gross carrying amount of financial assets at the time of default and forms the basis for measurement of expected credit loss. The Company estimates EAD using the contractual repayment profile of the loan, adjusted for expected behavioural cash flows, where applicable, over the expected life of the financial asset. The estimation also considers the expected outstanding exposure at the date of default in accordance with the Company’s approved ECL methodology.

Loss given default

Loss Given Default (LGD) is the estimated proportion of an exposure that the Company expects to lose when a default occurs, after accounting for any recoveries from collaterals, repayments and other recovery actions. LGD is estimated using historical recovery experience by discounting expected post-default cash flows to the date of default using the effective interest rate, where applicable. The present value of these recoveries is then compared with the Exposure at Default (EAD) to derive the LGD.

Forward looking information

The estimation of Expected Credit Losses (ECL) for the loan portfolio is based on assumptions and inputs derived primarily from historical portfolio performance. These estimates are subsequently adjusted to reflect current observable conditions, and other relevant forward-looking information, including macroeconomic factors and regulatory developments, where relevant, in accordance with the Company’s approved ECL methodology.

Write off policy

Over time, the Company has established a robust and well-defined credit monitoring mechanism for the management of defaulted and delinquent accounts.

The Company adopts a multi-pronged approach to its credit monitoring activities, involving both in-house personnel and external agencies. Each loan account is periodically reviewed to assess the recoverability of the outstanding exposure, and appropriate recovery actions, including legal proceedings where necessary, are initiated in accordance with applicable laws and the Company’s recovery policy.

Financial assets are written off, either partially or in full, when the Company concludes that there is no reasonable expectation of recovering the contractual cash flows. The assessment is based on a case-by-case evaluation considering all relevant facts and circumstances, including the outcome of recovery proceedings, the realizable value of collateral, and the likelihood of further recoveries, and is subject to approval in accordance with the Board-approved write-off policy. Write-offs do not extinguish the Company’s legal right to recover amounts due, and recovery efforts continue where considered appropriate.

Management Overlay:

Management overlay represents adjustments made to the Expected Credit Loss (ECL) estimates where management determines that historical data and modelled outcomes do not adequately reflect current or emerging credit risk conditions. Such adjustments are based on reasonable and supportable information available at the reporting date, including macroeconomic developments, regulatory changes and other portfolio-specific factors, where relevant. The management overlay is subject to periodic review and approval in accordance with the Company’s governance framework.

Net re-measurement from stage changes - the re-measurement of credit impairment provisions arising from a change in stage is reported within the stage that the assets are transferred to.

Net changes in exposures - comprises new disbursements less repayments in the year.

36.4.2.5 Modified Loans

Where the contractual terms of financial assets have been modified, and this does not result in the instrument being derecognised, a modification gain or loss is recognised in the Statement of Profit and Loss representing the difference between the original cash flows and the modified cash flows, discounted at the effective interest rate. Where modifications arise due to the borrower’s financial difficulty or where the Company has granted concessions that it would not ordinarily consider, the Company assesses whether the financial asset is credit-impaired and whether there has been a significant increase in credit risk in accordance with its ECL methodology and the requirements of Ind AS 109. Modifications that are not credit related are subject to an assessment of whether the asset’s credit risk has increased significantly since origination by comparing the remaining lifetime probability of default (PD) based on the modified contractual terms with the original contractual terms.

36.4.3 Market Risk

Market risk is the risk of losses in positions taken by the company which arises from movements in market prices. Any item in the balance sheet which needs re-pricing at frequent intervals and whose pricing is decided by the market forces will be a component of market risk. There are number of items in the Company's balance sheet which exposes it to market risk like Housing loans at floating rate, loans to developers at floating rate, Non-Convertible Debentures (NCDs) with options, bank loans with options, Foreign Currency Bank Loans, Coupon Swaps, etc. The Company is generally exposed to Interest Rate Risk.

36.4.4 Interest Rate Risk

Interest Rate Risk refers to the risk associated with the adverse movement in the interest rates. Adverse movement would imply rising interest rates on liabilities and falling interest yields on the assets. This is the biggest risk which the company faces. It arises because of maturity and re-pricing mismatches of assets and liabilities.

In order to mitigate the impact of this risk, the Company should track the composition and pricing of assets and liabilities on a continuous basis. For the same purpose, the Company has constituted the ALCO Committee which should actively monitor the ALM position and guide appropriately.

36.4.5 Regulatory Risk

Regulatory risk is the risk that a change in laws and regulations will materially impact the Company. Changes in law or regulations made by the government or a regulatory body can increase the costs of operating the business, and/or change the competitive landscape.

Regulatory risk can arise due to change in prudential rules/norms by the regulators viz; NHB, SEBI, RBI etc. In order to mitigate the effects of same, the Company keeps track of all regulatory changes and quickly adapts to the change.

36.4.6 Strategic Risk

Strategic risk is the current and prospective impact on earnings or capital arising from adverse business decisions, improper implementation of decisions, or lack of responsiveness to industry changes. It is the risk to the market share and profitability arising due to competition.

36.4.7 Currency Risk and mitigation

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Balances in foreign bank account offsets the exchange risk arising out of payment obligations of trade payables since both the exposures have cash flows / maturity within the same accounting year. The company does not deal in foreign exposure in significant way.

37. Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM).

The Managing Director & CEO is identified as the Chief Operating Decision Maker (CODM) by the management of the Company. CODM has identified only one operating segment of providing loans for purchase, construction, repairs, renovation etc. and has its operations entirely within India. All other activities of the Company revolve around the main business. As such, there are no separate reportable segments, as per the Indian Accounting Standard (Ind AS) 108 on Segment Reporting.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

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.

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 method as applied in calculating the defined benefit obligation as recognised in the balance sheet.

Actuarial Gains/Losses are recognised in the period of occurrence under Other Comprehensive Income (OCI). All above reported figures of OCI are gross of taxation.

Maturity Analysis of Benefit Payments is undiscounted cashflows considering future salary, attrition & death in respective year for members as mentioned above.

The Company has a defined benefit gratuity plan in India (funded). The company’s defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund.

The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy.

Gratuity is a defined benefit plan and company is exposed to the Following Risks:

Interest Risk: A fall in the discount rate which is linked to the Government Security. Rate will increase the present value of the requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule l0l of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for lifetime and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by rule 103 of Income Tax Rules, 1962.

1. The outstanding amount and number of borrowers as at March 31, 2026 and March 31, 2025 is after considering recoveries during the financial years.

2. Since the disclosure of restructured accounts pertains to section “Others”, the first two sections namely “Under CDR Mechanism” and “Under SME Debt Restructuring Mechanism” as per the format prescribed in the RBI Directions -RBI/DOR/2025-26/359 DOR.ACC.REC.No.278/21.04.018/2025-26 Reserve Bank of India (Non-Banking Financial Companies- Financial Statements: Presentation and Disclosures) Directions, 2025 dated November 28, 2025 as amended are not included above.

3. Above disclosure does not include one-time restructuring implemented as prescribed in the notification no. RBI/2020-21/16 DoR.No.BPBC/3/21.04.048/2020-21 Resolution Framework for COVID-19-related Stress dated August 06, 2020 and RBl/2021-22/31/DoR.STR.REC.11 /21.04.048/2021-22 Resolution Framework-2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses dated May 05, 2021.

ii. Disclosure on resolution framework:

Disclosures as required by Reserve Bank of India vide circular DOR.no. BPBC/3/21.04.048/2020-21 dated August 6, 2020 and circular RBI/2021-22/31 DOR.STR.REC.11/21.04.048/2021-22 dated May 5, 2021 on Resolution Framework-2.0 read with Reserve Bank of India (Non-Banking Financial Companies-Resolution of Stressed Assets) Directions 2025 dated November 28, 2025 as at March 31, 2026 are given below:

Total liabilities has been computed as sum of all liabilities (balance sheet figure) less equity share capital and other equity

Institutional set-up for liquidity risk management

Measuring and managing liquidity needs are vital for effective operation of the Company. By assuring Company's ability to meet its liabilities as they become due, liquidity management can reduce the probability of an adverse situation developing. The importance of liquidity transcends individual institutions, as liquidity shortfall in one institution can have repercussions on the entire system.

Liquidity Risk implies the risk of not having sufficient funds to discharge the liabilities. Various situations can give rise to liquidity risk such as higher than estimated disbursements, stress on systemic liquidity due to CRR hikes, higher government borrowing program, advance tax outflows, etc. Therefore, it is imperative to anticipate the net cash outflows correctly, as well as to have a contingency plan in case of any unforeseen outgo of funds. Another aspect of liquidity management is avoiding retention of too much of excess liquidity than what may be required, as the same would result in sub-optimal returns on investment. So, the Company has to strike a balance between the above two factors and manage the liquidity position actively / effectively.

The liquidity risk management framework of the Company includes the Risk Management Committee (RMC) of the board which has been constituted by the Board of Directors of the Company. The Risk Management Committee (RMC), which is a committee of the Board, is responsible for evaluating and monitoring the integrated risk management system of the Company including liquidity risk The RMC reviews the liquidity risk position in line with policies and procedures to manage liquidity risk in accordance with limits approved by the Board of Directors. The ALCO is entrusted with ensuring adherence to the board approved Asset Liability Management (ALM) policy and other regulatory guidelines, including Structural Liquidity, Dynamic Liquidity, Interest Rate Sensitivity, etc,. The ALM Policy is reviewed periodically in accordance with regulatory guidelines.

A14. Credit Default Swaps

The Company has not undertaken any transaction during the current year and previous year.

B6. Exposures

i. Details of financing of parent company products

The Company is not a subsidiary of any Company, hence there are no details of financing of parent company products.

ii. Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the NBFC

The Company has not exceeded single or group borrower exposure limit as prescribed by RBI guidelines during the current year and previous year.

iii. Unsecured Advances :

There are no unsecured advances against intangible securities such as rights, licenses, authorisations as collateral security during the year or during the previous year

B7. Corporate governance

RBI has also issued notification regarding corporate governance, which is disclosed in report of corporate governance under the statutory report.

B8. Breach of Covenant

There have been no instances of breach of covenants of all major loans availed or debt securities issued during the current year and previous year.

B9. Divergence in Asset Classification and Provisioning

During the current year, assessment for FY 2024-25 was completed for which there has been no divergence in Asset Classification and Provisioning as per inspection report issued by National Housing Board.

During the previous year, assessment for FY 2023-24 was completed for which there has been no divergence in Asset Classification and Provisioning as per inspection report issued by National Housing Board.

B10. Registration from other financial sector regulators

The Company was incorporated under the Companies Act, 1956 on June 19, 1989 and is governed by Companies Act, 2013. It is regulated by NHB and registered under section 29A of the NHB Act, 1987. Apart from this, the Company is not registered under any other financial regulators. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 in terms of exemption granted under Master Direction-Reserve Bank of India (Non-Banking Financial Companies - Registration, Exemptions and Framework for Scale Based Regulation) Directions, 2025.

B11. Area of Operation

The company does not have any overseas joint ventures and subsidiaries.

ii. Structured Products :

The Company has no structured products for the financial year ended March 31, 2026 and March 31, 2025. B23. Disclosure on Liquidity Coverage Ratio

The RBI has prescribed guidelines on maintenance of Liquidity Coverage Ratio (LCR) for HFCs vide Reserve Bank of India (Non-Banking Financial Companies - Asset Liability Management) Directions, 2025 dated 28 November 2025. The guidelines require all deposit taking HFCs to maintain minimum LCR of 100% by December 2025.

The Liquidity Coverage Ratio (LCR) framework under Liquidity risk management of the Company is managed by Asset Liability Committee in accordance with Board approved policies.

The purpose of LCR is to maintain strong liquidity buffer which will promote resilience of HFC's to potential liquidity disruptions by ensuring that they have sufficient High Quality Liquid Asset (HQLA) to survive any acute liquidity stress scenario lasting for 30 calendar days. This will reduce the risk of spill over from any financial stress scenario.

LCR = Stock of High-Quality Liquid Assets (HQLAs)/Total Net Cash Outflows over the next 30 calendar days.

Total net cash outflows arrived at after deducting total expected cash inflows (stressed inflows) from total expected cash outflow (stressed outflows) for the subsequent 30 calendar days. To compute expected cash outflow (stressed outflows), all expected and contracted cash outflows are considered by applying a stress of 15% and for expected cash inflows (stressed inflows) of the company is arrived at by considering all expected and contracted inflows by applying an under-flow of 25%.

The HQLA maintained by company comprises of Government securities held for LCR purpose, Government securities held for the purpose of Statutory Liquid Ratio (SLR) with a hair-cut of 20% and balances maintained in current accounts/cash & Cash equivalents.

The main drivers of LCR are:

Outflows comprise of:

• All the contractual debt repayments and interest payments

• Expected operating expense Inflows comprise of:

• Expected receipt (scheduled EMIs) from all loans

• Liquid investment in the form of unencumbered fixed deposits with banks which are not forming part of High-Quality Liquid Assets

• Sanctioned and undrawn lines of credits.

For concentration of funding sources, refer note 36.4.1 on disclosure on liquidity risk.

49 Disclosure regarding penalty or adverse comments as per Reserve Bank of India (Housing FinanceCompanies) Directions, 2025 & Reserve Bank of India (Non-Banking Financial Companies - FinancialStatements: Presentation and Disclosures) Directions, 2025 during the current year:

49.1 No penalties have been imposed by RBI during the year. During the previous year (FY 2024-25), the Company had paid a penalty amount of ' 49.70 lakhs in relation to non-compliance to provisions of relevant directions under para

80.1 (part) and 85.6 of the RBI Master Directions, 2025.

49.2 The NHB conducted its Supervisory inspection of the Company w.r.t position as on 31/03/2025, during the year. The NHB observations were received on 03/02/2026 and were suitably replied on 17/02/2026. The previous year's Supervisory Inspection was carried on for position as on 31/03/2024, observations were received on 14/04/2025 and were suitably replied on 13/05/2025 within the prevalent timelines.

49.3 During FY 2025-26, the Company has reported frauds in 16 loan accounts with outstanding amount of ' 9.75 Crore in accordance with the RBI Master Directions on Fraud Risk Management in Non-Banking Financial Companies (NBFCs) (including Housing Finance Companies), 2024. During the previous year (FY 2024-25), the Company had reported frauds in 15 loan accounts with outstanding amount of ' 15.08 Crore.

51 The disclosure on the following matters required under schedule III as amended not being relevant or applicable in case of the company, same are not covered such as

a. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

b. There is no undisclosed transaction which have not been recorded in the books that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,1961.

c. No proceedings have been initiated or pending against the company as the Company does not hold any Benami Property under the Benami Transactions (Prohibition) Act, 1988.

d. The Company has not been declared wilful defaulter by any bank or financial institution or any other lender.

e. The Company has not entered any scheme of arrangement, which have been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

f. No Registration or satisfaction of charges are pending to be filed with ROC.

g. Clause (87) of section 2 of the act read with the Companies (Restriction on number of Layers) Rules, 2017 is not applicable to company.

h. 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(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend to 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.

i. No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend to 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.

52 Previous year numbers have been regrouped / reclassified, wherever necessary including those as required in keeping with

revised Schedule III amendments.