N. Provisions, contingent liabilities and
contingent assets

Provisions are recognised when there is a present
obligation (legal or constructive) as a result of a
past event and it is probable ("more likely than not")
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. The amount recognised as a
provision is the best estimate of the consideration
required to settle the present obligation at the
balance sheet date, considering the risks and
uncertainties surrounding the obligation.

If the effect of the time value of money is material,
provisions are determined by discounting the
expected future cash flows at a pre-tax rate that
reflects current market assessments of the time
value of money and the risks specific to the liability.
When discounting is used, the increase in the
provision due to the passage of time is recognised
as a finance cost.

Contingent liabilities are possible obligations
that arise from past events and whose existence

will only be confirmed by the occurrence or non¬
occurrence of one or more uncertain future events
not wholly within the control of the entity or a
present obligation that arises from past events but
is not recognised because it is not probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation, or
the amount of the obligation cannot be measured
with sufficient reliability, The Company does not
recognise a contingent liability but discloses the
same as per the requirements of Ind AS 37, unless
the probability of outflow of resources embodying
economic benefits is remote.

Contingent assets are not recognised in the
Standalone Financial Statements since this may
result in the recognition of income that may never
be realised. However, when the realisation of
income is virtually certain, then the related asset is
not a contingent asset and is recognised.

A contract is considered as onerous when the
expected economic benefits to be derived by
the Company from the contract are lower than
the unavoidable cost of meeting its obligations
under the contract. The provision for an onerous
contract is measured at the lower of the expected
cost of terminating the contract and the expected
net cost of continuing with the contract. Before a
provision is established, the Company recognises
any impairment loss on the assets associated with
that contract.

Provisions, contingent liabilities and contingent
assets are reviewed at each Balance Sheet date.

O. Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
l iability or equity instrument of another entity.
Financial instruments also include derivative
contracts such as foreign currency forward
contracts, embedded derivatives in the host
contract, etc.

Financial assets

Initial recognition and measurement

The Company initially recognises trade receivables
and debt securities issued on the date on which
they are originated. The Company recognises the
other financial assets on the trade date, which is
the date on which the Company becomes a party
to the contractual provisions of the instrument.

All financial assets are recognised initially at
fair value, plus in the case of financial assets
are recorded at fair value through profit or loss
(FVTPL), transaction costs that are attributable
to the acquisition of the financial asset. However,
trade receivables which do not contain a
significant financial component are measured at
transaction value.

Classifications and subsequent
measurement

Classifications

The Company classifies its financial assets as
subsequently measured at either amortised cost
or fair value depending on the Company's business
model for managing the financial assets and
the contractual cash flow characteristics of the
financial assets.

Business model assessment

The Company makes an assessment of the
objective of a business model in which an asset is
held at a portfolio level because this best reflects
the way the business is managed and information
is provided to management.

Assessment whether contractual cash
flows are solely payments of principal
and interest

In assessing whether the contractual cash flows
are solely payments of principal and interest, the
Company considers the contractual terms of the
instrument. This includes assessing whether the
financial asset contains a contractual term that
could change the timing or amount of contractual
cash flows such that it would not meet this condition.

Financial asset at amortised cost

A financial asset is measured at amortised cost if
it meets both of the following conditions and is not
designated as at Fair value though profit and loss
(FVTPL):

a) i t is held within a business model whose
objective is to hold assets in order to collect
contractual cash flows; and

b) 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.

After initial measurement, such financial assets are
subsequently measured at amortised cost using
the Effective Interest Rate ('EIR') method. Amortised
cost is calculated by considering any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is
included as finance income in the profit or loss. The
losses arising from impairment are recognised in
the profit or loss.

Financial asset at fair value through
Other Comprehensive Income (FVOCI)

A financial asset is measured at FVOCI only if it
meets both of the following conditions and is not
designated as at Fair value though profit and loss
(FVTPL):

a) i t is held within a business model whose
objective is achieved by both collecting
contractual cash flows and selling
financial assets.

b) the contractual terms of the financial asset
represent contractual cash flows that are
solely payments of principal and interest.

After initial measurement, such financial assets are
subsequently measured at fair value with changes
in fair value recognised in other comprehensive
income (OCI). Interest income is recognised
basis EIR method and the losses arising from ECL
impairment are recognised in the Standalone
Statement of Profit and Loss.

Financial asset at fair value through
profit and loss (FVTPL)

Any financial asset, which does not meet the criteria
for categorisation as at amortised cost or as FVOCI
as described above, is classified as at FVTPL.

These assets are subsequently measured at fair
value. Net gains and losses, including any interest
or dividend income are recognised in Standalone
Statement of Profit and Loss.

Reclassification of financial assets

Financial assets are not reclassified subsequent to
their initial recognition, except in the period after
the Company changes its business model for
managing financial assets.

Derecognition of financial assets

A financial asset (or, where applicable, a part of
a financial asset or part of a Company of similar

financial assets) is primarily derecognised (i.e.
removed from the Company's Standalone Balance
Sheet) when:

• The rights to receive cash flows from the asset
have expired, or

• The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a
'pass-through' arrangement; and either (a) the
Company has transferred substantially all the
risks and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.

Impairment of financial assets

The Company recognises loss allowances
for expected credit losses on financial assets
measured at amortised cost. At each reporting
date, the Company assesses whether 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.

Evidence that a financial asset is credit impaired
includes the following observable data:

• significant financial difficulty of the borrower
or issuer;

• a breach of contract;

• it is probable that the borrower will enter
bankruptcy or other financial reorganisation; or

• the disappearance of an active market for
security because of financial difficulties.

The Company measures loss allowances at an
amount equal to lifetime expected credit losses.

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

Lifetime expected credit losses are the expected
credit losses that result from all possible
default events over the expected life of a
financial instrument.

12-month expected credit losses are the portion
of expected credit losses that result from default
events that are possible within 12 months after the
reporting date (or a shorter period if the expected
life of the instrument is less than 12 months).

In all cases, the maximum period considered when
estimating expected credit losses is the maximum
contractual period over which the Company is
exposed to credit risk.

When determining whether the credit risk of a
financial asset has increased significantly since
initial recognition and when estimating expected
credit losses, the Company considers reasonable
and or effort. This includes both quantitative and
qualitative information and analysis, based on the
Company's historical experience and supportable
information that is relevant and available without
undue cost or effort. This includes both quantitative
and qualitative information and analysis, based
on the Company's historical experience and
informed credit assessment and including forward
looking information.

Measurement of expected credit losses

Expected credit losses are a probability weighted
estimate of credit losses. Credit losses are
measured as the present value of all cash shortfalls
(i.e. the difference between the cash flows due to
the Company in accordance with the contract
and the cash flows that the Company expects to
receive).

Presentation of allowance for expected
credit losses in the Standalone Balance
Sheet

Loss allowances for financial assets measured
at amortised cost are deducted from the gross
carrying amount of the assets.

Write-off

The gross carrying amount of a financial asset is
written off (either partially or in full) to the extent
that there is no realistic prospect of recovery. This is
generally the case when the Company determines
that the debtor does not have assets or sources of
income that could generate sufficient cash flows to
repay the amounts subject to the write off. However,
financial assets that are written off could still be
subject to enforcement activities in order to comply
with the Company's procedures for recovery of
amounts due.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value

through profit or loss or at amortised cost,
as appropriate.

All financial liabilities are recognised initially at
fair value and, in the case of amortised cost, net of
directly attributable transaction costs.

Classification and subsequent
measurement

The measurement of financial liabilities depends on
their classification, as described below:

Financial liabilities at amortised cost

After initial recognition, financial liabilities are
subsequently measured at amortised cost using
the effective interest rate (EIR) method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through the
EIR amortisation process.

Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the
Standalone Statement of Profit and Loss.

Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through profit or loss
include financial liabilities designated upon initial
recognition as at fair value through profit or loss.

Gains or losses on liabilities held for trading are
recognised in the Standalone Statement of Profit
and Loss.

Financial liabilities designated upon initial
recognition at fair value through profit or loss are
designated as such at the initial date of recognition,
and only if the criteria in Ind AS 109 are satisfied. For
liabilities designated as FVTPL, fair value gains and
losses attributable to changes in own credit risk are
recognised in OCI. These gains and losses are not
subsequently transferred to profit and loss. However,
the Company may transfer the cumulative gain or
loss within equity. All other changes in fair value
of such liability are recognised in the Standalone
Statement of Profit and Loss.

Derecognition of financial liabilities

Company derecognises a financial liability when
its contractual obligations are discharged or
cancelled, or expire. Company also derecognises
a financial liability when its terms are modified
and the cash flows under the modified terms are

substantially different. In this case, a new financial
liability based on the modified terms is recognised
at fair value. The difference between the carrying
amount of the financial liability extinguished and
a new financial liability with modified terms is
recognised in the Standalone Statement of Profit
and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the Standalone
Balance Sheet when there is a legally enforceable
right to offset the recognised amounts and there is
an intention to settle on a net basis, or realise the
asset and settle the liability simultaneously ('the
offset criteria').

P. Income taxes

Income tax expense comprises current and deferred
tax. It is recognised in profit or loss except to the
extent that it relates to a business combination or
to an item recognised directly in equity or in other
comprehensive income.

Current tax

Current tax comprises the expected tax payable
or receivable on the taxable income or loss for
the year and any adjustment to the tax payable
or receivable in respect of previous years. The
amount of current tax reflects the best estimate
of the tax amount expected to be paid or received
after considering the uncertainty, if any, related to
income taxes. It is measured using tax rates (and
tax laws) enacted or substantively enacted by the
reporting date.

Current tax assets and current tax liabilities are
offset only if there is a legally enforceable right to
set off the recognised amounts, and it is intended
to realise the asset and settle the liability on a net
basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of
assets and liabilities in the Standalone Balance
Sheet and the corresponding tax bases used in
the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are
generally recognised for all deductible temporary
differences to the extent that it is probable that
taxable profits will be available against which those
deductible temporary differences can be utilised.

Such assets and liabilities are not recognised if the
temporary difference arises from initial recognition
of goodwill or from the initial recognition (other than
in a business combination) of other assets and
liabilities in a transaction that affects neither the
taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is
reviewed at each balance sheet date and reduced
to the extent that it is no longer probable that
sufficient taxable profits will be available to allow
all or part of the asset to be recovered.

Unrecognised deferred tax assets are reassessed
at each reporting date and recognised to the extent
that it has become probable that future taxable
profits will be available against which they can
be used.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
period in which the liability is settled or the asset
is realised, based on tax rates (and tax laws) that
have been enacted or substantively enacted by
the balance sheet date. The measurement of
deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner
in which the Company expects, at the reporting
date, to recover or settle the carrying amount of its
assets and liabilities.

Deferred tax assets and liabilities are offset when
there is a legally enforceable right to set off current
tax assets against current tax liabilities and when
they relate to income taxes levied by the same
taxation authority and the Company intends
to settle its current tax assets and liabilities on a
net basis.

Current and deferred tax are recognised in the
Standalone Statement of Profit and Loss, except
when they relate to items that are recognised in
other comprehensive income or directly in equity,
in which case, the current and deferred tax are also
recognised in other comprehensive income or
directly in equity, respectively.

Deferred tax liabilities are not recognised for
temporary differences between the carrying
amount and tax bases of investments in subsidiaries
where the Company is able to control the timing of
the reversal of the temporary differences and it is
probable that the differences will not reverse in the
foreseeable future.

Q) Cash and cash equivalents

Cash and cash equivalents are short-term highly
liquid investments that are readily convertible into
cash with original maturities of three months or
less. Cash and cash equivalents consist primarily of
cash and deposits with banks and interest accrued
on deposits.

r) Earnings per share

Basic earnings per share (“EPS") is computed by
dividing the net profit or loss after tax for the year
attributable to equity shareholders by the weighted
average number of equity shares outstanding
during the year. For the purpose of calculating
diluted earnings per share, net profit or loss after
tax for the year and the weighted average number
of shares outstanding during the year are adjusted
for the effects of all dilutive potential equity shares.
Dilutive potential equity shares are deemed to be
converted as of the beginning of the year, unless
they have been issued at a later date.

S) Business combinations

Business combinations have been accounted for
using the acquisition method under the provisions
of Ind AS 103, Business Combinations. The cost
of an acquisition is measured at the fair value of
the assets transferred, equity instruments issued
and liabilities incurred or assumed at the date of
acquisition, which is the date on which control is
transferred to the Company. The cost of acquisition
also includes the fair value of any contingent
consideration. Identifiable assets acquired and
liabilities and contingent liabilities assumed in a
business combination are measured initially at their
fair values on the date of acquisition. Transaction
cost that the Company incurs in connection with
business combination such as finders fees, legal
fees, due diligence and other professional fees are
charged to equity.

Goodwill is initially measured at cost, being the
excess of the aggregate of the consideration
transferred and the amount recognised for non¬
controlling interests, and any previous interest
held, over the net identifiable assets acquired
and liabilities assumed. If the fair value of the
net assets acquired is in excess of the aggregate
consideration transferred, the Company re¬
assesses whether it has correctly identified all
of the assets acquired and all of the liabilities
assumed and reviews the procedures used to

measure the amounts to be recognised at the
acquisition date. If the reassessment still results in
an excess of the fair value of net assets acquired
over the aggregate consideration transferred, then
the gain is recognised in OCI and accumulated in
equity as capital reserve. However, if there is no
clear evidence of bargain purchase, the entity
recognises the gain directly in equity as capital
reserve, without routing the same through OCI.

In case of business combinations taking under
scheme of amalgamation approved by Courts
in India, the accounting treatment as specified
in the court order is followed for recording such
business combination.

After initial recognition, goodwill is measured at cost
less any accumulated impairment losses. For the
purpose of impairment testing, goodwill acquired
in a business combination is, from the acquisition
date, allocated to each of the Company's cash¬
generating units that are expected to benefit from
the combination, irrespective of whether other
assets or liabilities of the acquiree are assigned to
those units.

A cash generating unit to which goodwill has been
allocated is tested for impairment annually, or more
frequently when there is an indication that the unit
may be impaired. If the recoverable amount of the
cash generating unit is less than its carrying amount,
the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro rata
based on the carrying amount of each asset in the
unit. Any impairment loss for goodwill is recognised
in profit or loss. An impairment loss recognised for
goodwill is not reversed in subsequent periods.

t) Recent Pronouncements

The Ministry of Corporate Affairs (“MCA") notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.

In May 2025, MCA notified amendments to Ind AS
21 - The Effects of Changes in Foreign Exchange
Rates, applicable w.e.f. April 1, 2025. The Company
has reviewed the amendment and based on its
evaluation has determined that it does not have
any significant impact in its financial statements.

In August 2025, MCA notified the following
amendments to:

• Ind AS 1, Presentation of Financial Statements,
applicable w.e.f. April 1, 2025 - The amendment
relates to classification of liabilities as current
or non-current and non-current liabilities
with covenants. In the context of classifying a
liability as current, it removes the requirement
of existence of a right to defer settlement for
at least 12 months after the reporting date and
instead requires that the said right should exist
on the reporting date and have substance.
The amendment also introduces guidance on
classification of liabilities with covenants. The
Company has no impact of these amendments
in its classification criteria of current and non¬
current liabilities.

• Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments: Disclosures, applicable
w.e.f. April 1, 2025 - The amendment in Ind AS 7
requires to inform users of financial statements of
the existence of supplier finance arrangements
and explain the nature of the arrangements,
the carrying amount of liabilities and the range
of payment due dates. Ind AS 107 has been
amended to add supplier finance arrangements
as a factor that may cause concentration of
liquidity risk. The Company has reviewed the
amendment and based on its evaluation has
determined that it does not have any significant
impact in its financial statements.

• Ind AS 12, International Tax Reform - Pillar Two
Model Rules applicable immediately - The
amendments provide a temporary mandatory
relief from deferred tax accounting for top-
up tax and disclose that they have applied
the relief. This relief is immediate and applies
retrospectively. The Company has reviewed the
amendment and based on its evaluation has
determined that it does not have any impact in
its financial statements.

5A Non-current assets held for sale

On October 28, 2024, the Board of the Company has approved the terms of a joint venture agreement (“JVA")
to be entered into by the Company with Computer Age Management Services Limited (“CAMS") with respect to
the incorporation of a joint venture company (“JVCo") by the Company and CAMS, for the purposes of owning,
developing, maintaining and operating the jointly developed investment management platform and ecosystem
named 'MF Central' (“Transaction"). As part of the Transaction, the Board has also approved the proposal for primary
equity capital infusion (in one or more tranches) in the JVCo by the Company, up to an aggregate amount equivalent
to INR 135 million in connection with the Transaction.

MF Central is a collaboration between the Company and CAMS in 2021 as per SEBI' directive, to operationalise and
fulfil the objective of investor convenience and to stay fully aligned to the regulatory intent of SEBI.

Accordingly, the JVCo, by name, MFC Technologies Private Limited has been incorporated w.e.f March 8, 2025.

The Company has developed and capitalised certain intangible assets related to the MF Central platform and
pursuant to the JVA, these assets will be transferred to the JVCo at their fair value less costs to sell. Upon obtaining
approval of the Board, these intangible assets have been classified as non-current assets held for sale.

The details of cost, accumulated amortisation and carrying amount (net) of the intangible assets classified as non¬
current assets held for sale are as follows:

F Extension options

Some property leases contain extension options exercisable by the Company up to five years before the end of
the non-cancellable contract period. Where practicable, the Company seeks to include extension options in new
leases to provide operational flexibility. The extension options held are exercisable only by the Company and not by
the lessors. The Company assesses at the lease commencement date whether it is reasonably certain to exercise
the extension options. The Company reassesses whether it is reasonably certain to exercise the options if there is a
significant event or significant changes in circumstances within its control.

The Company has estimated that the potential future lease payments, should it exercise the extension option, would
result in an increase in lease liability of INR 237.66 million (31 March 2025: INR 237.66 million).

G Leases not yet commenced

The Company has entered into lease contracts that have not yet commenced as at the reporting date. These
leases are expected to commence within 12 months from the reporting date.

As at 31 March 2026, the undiscounted lease payments relating to these leases amount to INR 3,275.77 million.
The lease liabilities and corresponding right-of-use assets in respect of these leases will be recognised on the
respective commencement dates.

a. Terms and rights attached to equity shares

The Company has a single class of equity shares having a par value of INR 10 per equity share. Accordingly, all
equity shares rank equally with regard to dividends and in the Company's residual assets. The equity shares are
entitled to receive dividend as declared from time to time. In the event of liquidation of the Company, the holders
of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all
preferential amounts in proportion to the number of equity shares held. Each holder of equity shares is entitled
to one vote per share.

Under the shareholders agreement dated 3 August 2017 executed between the Company and its shareholders,
and as amended subsequently (“SHA 2017"), one of the shareholders of the Company had been granted a
right to subscribe to additional equity shares of the Company upon fulfillment of various performance related
and other milestones as defined in the SHA 2017. During the year ended 31 March 2022, the Company and its
shareholders have entered into an agreement to terminate the SHA 2017 (“Termination Agreement") wherein
each of the Parties has agreed that, notwithstanding anything contained in the existing SHA, on and from the
Effective Date (as defined in Termination Agreement), the SHA 2017 (including any rights, duties and obligations
of the Parties under or incidental to the SHA 2017) shall stand unconditionally and irrevocably terminated and
shall cease to have any force or effect without any further action being required from any Party.

b. Terms and rights attached to preference shares

As and when the Board decides to issue these preference shares, the terms and rights attached to them would
be approved.

c. Employee stock options:

The Company has granted certain stock options to its employees and the employees of its subsidiary. For details
of shares reserved for issue under the Employee Stock Options Plan of the Company, refer Note 43.

g. During the period of five years immediately preceding the balance sheet date, no shares were allotted as
fully paid up pursuant to a contract without payment being received in cash.

h. The Company has not allotted any shares as fully paid by way of bonus shares during the five year period
immediately preceding the respective balance sheet date.

i. During the period of previous five years immediately preceding the respective balance sheet date, the Company
has bought back 1,000 Redeemable Preference Shares in financial year 2023-24.

j. Enforcement Directorate (ED) vide its order dated 24 September 2021, has instructed the Company not to
facilitate the alienation/ sale/ creation of any lien or liability in respect of shares held by certain shareholders. On
11 March 2022, the Company has received Provisional Attachment Order No. 06/2022 dated 8 March 2022 issued
by the Deputy Director, Directorate of Enforcement, Hyderabad Zonal Office, whereby the ED has provisionally
attached the equity shares held by those shareholders. Additionally, to the Company's knowledge, these shares
are subjected to an encumbrance in favour of certain lenders of those shareholders.

The Company has received a letter dated 09 December 2022, from the Office of Additional Director, Directorate of
Enforcement, Hyderabad Zonal Office on 13 December 2022 ("Authority", and such letter "ED Letter"). Pursuant to
the ED Letter, the Authority has communicated that the attachment made pursuant to the provisional attachment
order dated March 08, 2022, issued by the Attachment Order has been confirmed by the Adjudicating Authority
(PMLA), New Delhi vide its order dated 1 December 2022.

Nature and purpose of other reserves

(a) Capital reserve

Reserve created was on cancellation of equity shares pursuant to Scheme of amalgamation approved by
National Company Law Tribunal during year ended 31 March 2019.

(b) Share application money pending allotment

Amount received in respect of exercise of stock options, pending allotment as of year-end. This will subsequently
be adjusted at the time of allotment of shares.

(c) Securities premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium. The fair
value of employee stock options is recognised in securities premium once the shares have been alloted on
exercise of the options. It can be utilised in accordance with the provisions of the Companies Act, 2013.

(d) Retained earnings

Retained earnings represents the net profits after all distributions and transfers to other reserves. It can be
utilised or distributed in accordance with the provisions of the Companies Act, 2013.

(e) Share-based payment reserve

The Company has established various equity-settled share based payments plans for certain categories of
employees of the Company and its subsidiaries. Refer Note 43 for further details on these plans.

(f) Capital redemption reserve

The balance as of March 31, 2026 represents the reserve created for cancellation of 14,987,846 equity shares
bought back under buy back plan in financial year 2019-20 and on account of buyback of 1,000 redeemable
preference shares in financial year 2023-24

(g) General reserve

The general reserve is used time to time to transfer profits/ reserve from retained earning/ other component of
equity such as Debenture Redemption Reserve (DRR) for appropriation purposes. There is no policy of regular
transfer. As the general reserve is created by a transfer from one component of equity to another and is not an
item of other comprehensive income, items included in the general reserve will not be reclassified subsequently
to Standalone statement of profit and loss.

E. Uncertain tax positions

The Company recognises share based payment expense in accordance with Ind AS 102, measured at the
fair value determined on the grant date of the employee stock options. Further, the Company has claimed
an additional deduction in the income tax return based on the intrinsic value of the options at the time of
exercise, in line with prevailing judicial precedents. However, considering the uncertainty regarding the ultimate
acceptability of such claims by the tax authorities, as similar matters are pending final adjudication at various
judicial levels, the Company has not recognised the resulting excess tax benefit in other equity. Accordingly,
the excess benefit received and not recognised in other equity has been included in the current tax liability
amounting to INR 201.99 million as at 31 March 2026 (31 March 2025: INR 82.11 million).

C. The Company is a party to certain pending cases with regulatory authorities relating to the initial public offerings
of its customers that have taken place in earlier years. These cases are pending at various levels of legal
disposition. In the assessment of the management and as legally advised, these matters are unlikely to have
a material impact on the Standalone financial statements of the Company.

D. The Company is party to certain cases relating to customer complaints which are at various levels of resolution
and litigations. The management is confident of resolution of these cases in its favour and does not expect any
material impact on the standalone financial statements. Further, the Company is proforma party to certain
cases relating to succession matters, partition suits etc. which are at various levels of resolution and litigations.
There is no direct involvement of the Company in these matters and accordingly having no material impact on
the standalone financial statements.

The Company is contesting the above mentioned demands and the Management believes that its position
will likely be upheld in the appellate process and accordingly no expense has been accrued in the Company's
standalone financial statements for the demand raised/ show cause notice received as the ultimate outcome
of these proceedings will not have a material adverse effect on the standalone financial statements. Further,
pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timing
of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgement/ decisions
pending with various forums/ authorities.

34 -amalgamated Company (Refer Note 42(a)) was the Registrar and Transfer Agent (RTA) of a past Client

("the Client") until 5 April 2021. The Client had a demat account ("Escrow Account") with one of the Depository
Participants ("DP") for depositing its shares in escrow for the purposes of its initial public offering. The Company
identified in the financial year 2020-21 that 794,489 shares were transferred by the DP (500,000 shares in 2011
(which translated into 1,000,000 shares pursuant to a bonus issue undertaken by the Client in 2017) and 294,489
shares in 2020) from the Escrow Account to the DP's own demat account and to a third party's demat account
through an off-market transaction without any authorisation from the Client and without knowledge of the
Company. The Board of Directors of the Company after considering legal advice purchased 1,294,489 shares
and transferred these shares to the Escrow Account of the Client on a 'good faith and no fault' basis, after
reducing the amount payable upon redemption, in future, of the Redeemable Preference Shares issued in
October 2021, by INR 300.00 million. The dividend received on such shares by the Company in the financial year
2021-22 of INR 4.08 million was also transferred back to the Client. Intimation letters were sent to the Client and
SEBI on 15 November 2021 informing them of transfer of shares to the Client's Escrow Account and refund of
dividend to the Client.

Further, the Board of Directors of the Company after considering legal advice, approved payment (based on an
estimation of potential losses that may be suffered by the Client) by the Company to the Client, for the purpose
of settlement of any potential claims by the Client (including dividends on such shares for earlier periods). The
Company will initiate proceedings against the concerned parties, including certain minority shareholders, for
recovery of the amount paid and payable by the Company to the Client in connection with this matter upon
completion of final settlement with the Client. Considering the assessment of recoverability, the Company has
made a provision of INR 90.09 million as at 31 March 2026. Pending the final settlement of terms to be agreed
with the Client, the Management has measured the provision at its best estimate.

DISCLOSURE AS REQUIRED UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES
35 DEVELOPMENT ACT, 2006 ("THE MSMED ACT") BASED ON THE INFORMATION AVAILABLE
WITH THE COMPANY

The Management has identified enterprises which have provided goods and services to the Company and
which qualify under the definition of micro and small enterprises, as defined under the MSMED Act. Accordingly,
the disclosure in respect of the amounts payable to such enterprises has been made in the standalone financial
statements based on information received and available with the Company. Further, in the view of the Management,
the impact of interest, if any, that may be payable in accordance with the provisions of the MSMED Act is not expected
to be material. The Company has not received any claim for interest from any supplier under the said MSMED Act.

Note: The above information has been determined to the extent such parties have been identified on the basis of
information available with the Company.

| 36 OPERATING SEGMENTS

In accordance with Ind AS 108 - Operating Segments, information pertaining to operating segments is disclosed
in the consolidated financial statements of the Company and accordingly, no separate disclosures have been
furnished in these standalone financial statements of the Company.

| 37 EMPLOYEE BENEFITS

The Company contributes to the following post-employment defined benefit/ contribution plans in India.

(i) Defined contribution plans:

Employees’ State Insurance

The Company makes contribution towards Employee state insurance for its employees. The Company's
contribution to the Employees' State Insurance is deposited with the government.

Provident fund:

The Company makes contribution towards provident fund for employees. The Company's contribution to
the Employees' Provident Fund is deposited with the Government under the Employees' Provident Fund and
Miscellaneous Provisions Act, 1952. The contribution paid under the plan by the Company is at the rate specified
under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952.

During the year, the Company has recognised following amounts in the standalone statement of profit and loss
(included in Note 27 - Employee benefits expense):

(ii) Defined benefit plan:

The Company makes annual contribution to a gratuity fund administered by trustees and managed by Life
Insurance Corporation of India (LIC). Every employee is entitled to a benefit equivalent to fifteen days' salary last
drawn for each completed year of service in line with the Code on Social Security, 2020. The same is payable
at the time of separation from the Company, subject to a service period of 5 years, or retirement, whichever
is earlier.

The defined benefit plan exposes the Company to actuarial risks such as longevity risk, interest rate risk and
market/ investment risk.

Impact of new labour codes:

"On November 21, 2025, the Government of India notified the 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 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published
draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations.
The Group has assessed and disclosed the incremental impact of these changes on the information available,
consistent with the guidance provided by the Institute of Chartered Accountants of India. Considering the
materiality and regulatory-driven, non-recurring nature of this impact, the Group has presented such
incremental impact as “Statutory impact of new Labour Codes" under “Exceptional Item" in the above
standalone financial statements. The incremental impact of INR 116.34 million pertaining to provisions for long¬
term employee benefits such as gratuity and compensated absences primarily arises due to change in wage
definition. The Group continues to monitor the finalisation of Central/State Rules and clarifications from the
Government on other aspects of the Labour Code and would provide appropriate accounting effect on the
basis of such developments as needed."

A. Based on the actuarial valuation obtained in this respect, the following table sets out the status of the
gratuity plan and the amounts recognised in the Company's standalone financial statements as at
balance sheet date:

C. Plan assets

In the absence of detailed information regarding plan assets which is funded with Insurance Companies,
the composition of each major category of plan assets, the percentage or amount for each category to
the fair value of plan assets has not been disclosed.

On an annual basis, an asset-liability matching study is done by the Company whereby the Company
contributes the net increase in the actuarial liability to the plan manager (insurer) in order to manage the
liability risk.

D. Actuarial assumptions

The principal assumptions are the discount rate, employee attrition rate and salary growth rate. Financial
and demographic valuation assumptions are as follows:

For presenting the sensitivities, 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 presented under net defined asset/ (liability). There
was no change in the methods and assumptions used in the preparation of the Sensitivity Analysis from
previous year.

The weighted average duration of the defined benefit plan obligation as at 31 March 2026: 12.71 years (31
March 2025: 12.84 years)

Expected contribution to the post employee benefit plan during the next financial year is expected to be
INR 48.66 million (31 March 2025: INR 1.84 million).

H. Discount rate: The discount rate is based on the prevailing market yields of Indian government securities as
at the balance sheet date for the estimated term of the obligations.

Expected rate of return on plan assets: This is based on the expectation of the average long-term rate of
return expected on investments of the fund during the estimated term of the obligations.

Salary escalation rate: The estimates of future salary increases considered takes into account the inflation,
seniority, promotion and other relevant factors such as supply and demand in the employment market.

Valuation process

The finance department of the Company performs the valuation of financial assets and liabilities required
for financial reporting purposes, including level 3 fair values. This team reports directly to the Chief Financial
Officer. Discussions of valuation processes and results are held between the finance controller and the
finance team at least once every quarter.

B. Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are:

(a) recognised and measured at fair value and

(b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has
classified its financial instruments into three levels prescribed under the Indian Accounting Standard 113.
An explanation of each level follows underneath the table."

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded
bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use of
observable market data and rely as little as possible on entity-specific estimates. If all significant inputs
required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.

There are no transfers between level 1 and level 2 during the year.

II. Financial risk management
Risk management framework

The Company's Board of Directors has overall responsibility for the establishment and oversight of the
Company's risk management framework. The Board of Directors has constituted a risk management committee
which is responsible for monitoring the Company's risk Management policies. The risk management committee
reports regularly to the board of directors on its activities. The Company's audit committee oversees how
management monitors compliance with the Company's risk management policies and procedures and reviews
the adequacy of the risk management framework in relation to the risks faced by the Company. The Company’s
audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and
ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit
committee. The Company's risk management policies are established to identify and analyse the risks faced
by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions and the
Company's activities. The Company, through its training and management standards and procedures, aims
to maintain a disciplined and constructive control environment in which all employees understand their roles
and obligations.

The Company has exposure to the following risks arising from financial instruments:

a) Credit risk

b) Liquidity risk and

c) Market risk

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations resulting in a financial loss to the Company. Credit risk encompasses
both the direct risk of default and the risk of deterioration of credit worthiness as well as concentration
risks. Credit risk arises principally from trade receivables, security deposits, cash and cash equivalents
and deposits with banks and investments in mutual funds. The carrying amount of financial assets and
contract assets represents the maximum credit exposure. The maximum exposure to credit risk was INR
7,603.99 million and INR 8,171.64 million as at March 31, 2026 and March 31, 2025 respectively, being the total
of the carrying amount of Other non current financial assets, Trade receivables, Cash and cash equivalents,
Bank balances other than cash and cash equivalents, Investments in mutual funds and Other current
financial assets.

The Company neither holds any collateral as security nor has obtained letters of credit or other forms of
credit insurance. Also, the Company has not obtained any credit derivatives or instruments for its financial
assets outstanding at the reporting period.

a. Trade receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of its
customer base, including the default risk of the industry and country in which customers operate.

The Company establishes an allowance for impairment that represents its expected credit losses in
respect of trade and other receivables. The management uses a simplified approach for the purpose
of computation of expected credit loss for trade receivables. An impairment analysis is performed at
each reporting date.

The management has established a credit policy under which each new customer is analysed
individually for creditworthiness before the standard payments and delivery terms and conditions
are offered. The average credit period provided to customers is around 40 days. The Company review
includes external ratings, customer's credit worthiness, if they are available, and in some cases
bank references.

The customer base of the Company comprises of various corporates, state governments and mutual
fund houses all having sound financial condition. An impairment analysis is performed at each
reporting date on invoice-wise receivable balances.

The Company's exposure to customers is diversified and no single customer contributes to more than
10% of outstanding trade receivable and contract assets as at March 31, 2026 and March 31, 2025.

d. Investments in mutual funds

The credit risk for the investments in mutual funds is considered as negligible as the counter parties
are mutual fund agencies with high external credit ratings.

e. Stamp duty receivables

There is no credit risk involved as the receivable amounts from customers are intended for the purpose
of onward remittance to the Registration and Stamps department.

During the year, the Company has made write-offs of trade receivables as disclosed in Note 30 as it
does not expect to receive future cash flows or recoveries from collection of receivables previously
written off. The Company's management also pursue all legal options for recovery of dues, wherever
necessary, based on its internal assessment.

Refer Note 12 for Reconciliation of loss allowance provision for Trade receivables.

ii. 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's
approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its
liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Company's reputation.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
cash flows generated from operations to meet obligations when due and to close out market positions.
Due to the dynamic nature of the underlying businesses, the Company's treasury maintains flexibility in
funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company's liquidity position comprising cash and cash
equivalents on the basis of expected cash flows. This is generally carried out in accordance with practice
and limits set by the Company. In addition, the Company's liquidity management policy involves projecting
cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring
balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt
financing plans. The Company has a net current assets of INR 5,610.62 million as at 31 March 2026 (31 March
2025: INR 6,706.93 million).

b. Security deposits

It consists of rent, electricity, telephone and other deposits. The Company does not expect any financial
loss as the said deposits are given only to credible vendors/ service providers.

c. Cash and cash equivalents and deposits with banks

Cash and cash equivalents and deposits of the Company are held with banks which have high credit
rating. The Company considers that its cash and cash equivalents and deposits with banks have low
credit risk based on the external credit ratings of the counterparties.

in Net Assets Value (NAV) of the underlying schemes which are influenced by movements in market prices of
the underlying securities.

Sensitivity analysis

The table below summarises the impact of increases/decreases of the Net Asset Value (NAV) on the Company's
investment in Mutual fund and profit for the period. The analysis is based on the assumption that the NAV
increased by 5% or decreased by 5% with all other variables held constant, and that all the Company's
investments in mutual funds moved in line with the NAV.

Currency risk

The Company is exposed to foreign currency risk on certain transactions that are denominated in a currency
other than entity's functional currency, hence exposure to exchange rate fluctuations arises.

Exposure to currency risk

There are no derivative contracts. The summary quantitative data about the Company's unhedged exposure
to significant currency risk in foreign currency and domestic currency as reported to the management of the
Company is as follows:

Cash flow sensitivity analysis for variable-rate instruments

There are no variable rate borrowings of the Company. Hence, change in interest rates would not have an impact
on cash flows of the Company.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through
profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Price risk

The Company is exposed to price risk arising from investments in mutual funds that are classified as financial
assets at fair value through profit or loss (FVTPL). The value of these investments fluctuates based on changes

| 40 CAPITAL MANAGEMENT

The Company's objectives when managing capital are to

a) safeguard their ability to continue as a going concern so that it can continue to provide return for shareholders
and benefits for other stakeholders: and

b) maintain an optimal capital structure to reduce the cost of capital.

c) ensure compliance with regulatory minimum networth required to be maintained in accordance with
SEBI guidelines.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:
Net debt (total borrowings net of cash and cash equivalents, deposits with banks and investment in mutual funds)
divided by total 'equity' (as shown in the balance sheet, excluding Capital reserve, Capital redemption reserve,
Debenture redemption reserve, Share based payment reserve and Statutory reserve).

concluded that no reasonable changes in key assumptions would cause the recoverable amount of the CGUs to
be less than their respective carrying values.

The Company performs an annual impairment test of goodwill. The latest impairment test was performed for the
year ended 31 March 2026 and the actual performance of the CGUs has been monitored against the budgets for
the year ended 31 March 2026.

| 41 IMPAIRMENT TEST OF GOODWILL

The Company is carrying goodwill aggregating to INR 5,162.56 million as at 31 March 2026 and 31 March 2025 referred
to in Note 4 and 42. For the purpose of impairment testing, the carrying amount of goodwill has been allocated to the
following CGUs or group of CGUs, which benefit from the synergies of acquisition and which represents the lowest
level at which goodwill is monitored for internal management purposes.

For the year ended 31 March 2026, the goodwill impairment has been assessed at the CGU level. The recoverable
amount of the Goodwill has been determined as per value in use method using discounted cash flows. The values
assigned to the key assumptions represent management's assessment of future trends in the relevant industries
and have been assigned based on historical data both from external and internal sources.

The projections cover a reasonable period that the Company believes this to be the most appropriate timescale
over which to review and consider annual performances before applying a fixed terminal value multiple to the final
year cash flows. The growth rates used to estimate future performance are based on the conservative estimates
from past performance. The Company has performed sensitivity analysis around the base assumptions and have

• The discount rate is a post-tax measure estimated based on the historical industry average weighted-average
cost of capital.

• The cash flow projections include specific estimates for five years and a terminal growth rate thereafter. The
terminal growth rate has been determined based on management's estimate of the long-term compound annual
growth rate, consistent with the assumptions that a market participant would make.

• Budgeted revenue has been estimated taking into account past experience and expected growth in the next
five years.

The Company believes that any reasonably possible change in the key assumptions on which a recoverable amount
is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the
respective cash generating units.

| 42 BUSINESS COMBINATION

a) Amalgamation of the 'RTA undertaking' of KCL into the Company and Amalgamation
of KCPL into the Company

The Board of Directors of the Company in their meeting held on 2 August 2017 approved a Composite Scheme
of Arrangement and Amalgamation between Karvy Consultants Limited (KCL), Karvy Computershare Private
Limited (KCPL), the Company and their respective shareholders under the relevant provisions of the Companies
Act, 2013 ('the Scheme'). The Scheme has been approved by the National Company Law Tribunal (NCLT) vide
their order dated 23 October 2018 which has been filed with the Registrar of Companies on 17 November 2018.
Therefore, the Scheme became effective on 17 November 2018.

As per the Scheme, the 'RTA undertaking' of KCL (as explained below) and KCPL were amalgamated into the
Company with effect from 17 November 2018, the details of which are given below:

Amalgamation of the 'RTA undertaking' of KCL into the Company

In the Scheme, the 'RTA undertaking' of KCL is defined as the assets and liabilities relating to the Registrar
and Transfer Agent (RTA) business of KCL including the investment held by KCL (50% equity stake) in KCPL. In
accordance with the Scheme, this RTA Undertaking of KCL was amalgamated into the Company with effect
from 17 November 2018 in consideration of issue of 110,000,015 equity shares of INR 10 each of the Company to
the shareholders of KCL (as per the share swap ratio approved in the Scheme).

As specified in the Scheme, this amalgamation was accounted for in accordance with the Purchase method
of accounting as per Accounting Standard 14 - on 'Accounting for Amalgamations'. Accordingly:

a) all assets and liabilities of the RTA Undertaking of KCL including the investment held by KCL in KCPL were
recorded at their existing book values as at November 16, 2018 (as certified by the independent auditors of
KCL);

b) the consideration, being the face value of the said equity shares issued by the Company to the shareholders
of KCL was recorded at par value; and

c) the difference between a) and b) above amounting to INR 1,093.75 million was recorded as Goodwill.

Amalgamation of KCPL into the Company

On 17 November 2018, the Company acquired a 50% stake in KCPL from an existing shareholder. Further, on 17
November 2018, the 'RTA Undertaking' of KCL was amalgamated into the Company, thus vesting the remaining
50% stake of KCPL to the Company. Accordingly, on 17 November 2018, KCPL became a wholly owned subsidiary
of the Company. However, the amalgamation of KCPL into the Company also became effective on the same
day, and hence, KCPL was merged into KFPL on 17 November 2018.

As specified in the Scheme, the Company accounted for the amalgamation as follows:

a) all assets and liabilities of KCPL were recorded at their existing book values as at 16 November 2018;

b) the difference between the cost of investment in KCPL as appearing in the books of KFPL and the net book
value of assets as per a) above amounting to INR 5,655.41 million was recorded as Goodwill.

As per the Scheme, the cumulative goodwill arising on the transaction amounting to INR 6,749.16 million was
being amortised over a period of 10 years. Goodwill generated on this transaction largely represents the value
of the businesses acquired by the Company as reduced by the book values of the assets and liabilities of the
acquired businesses.

The accounting treatment as specified in the Scheme relating to amalgamation of the 'RTA Undertaking' of KCL
and of KCPL into the Company and the subsequent measurement of Goodwill is in accordance with Accounting
Standard 14 on 'Accounting for amalgamations' which is different from the accounting as per Ind AS 103 on
'Business Combinations'. Under Ind AS 103, the Company would have been required to record the entire business
combination (the assets, liabilities acquired, and consideration paid) at fair value.

The excess of fair value of the equity shares issued as consideration over face value of such shares is INR 7,046.60
million with a consequential impact of Goodwill/ Intangible assets. While the fair values of assets and liabilities
recognised in the separate financial statements of KCL and KCPL were similar to their respective carrying values,
the goodwill recognised in accordance with the Scheme and such additional goodwill arising on account of fair
value of the consideration would have been required to be allocated to the fair value of the intangible assets,
as applicable first and the balance would have been reflected in goodwill if the Scheme had been accounted
in accordance with the provisions of Ind AS 103.

B) The Board of Directors of the Company at its meeting held on 01 September 2021, approved the application filed
with National Company Law Tribunal ('NCLT application') on 28 October 2021 for discontinuing amortisation of
goodwill. As per the Scheme approved earlier in October 2018, the goodwill was being amortised over a period
of ten years. Pursuant to the approval of the NCLT application via order dated 2 March 2022, the amortisation of
goodwill was discontinued with effect from 1 April 2021 and the carrying value of goodwill was INR 5,148.96 million
on that date. As per Ind AS 36 - Impairment of Assets, the Company continues to annually test the impairment
on goodwill. Also, refer Note 41 for further details of Impairment testing of goodwill.

| 43 SHARE BASED PAYMENTS

The shareholders of the Company vide their meeting held on 31 July 2019 have authorised the Board of Directors
to introduce, offer and provide share-based incentives to eligible employees of the Company and its subsidiaries
under KFPL Employee Stock Option Plan 2019 ('ESOP Plan 2019'). The maximum number of shares that the Company
can issue under the ESOP Plan 2019 were 9,593,839 equity shares. Subsequently, the members of the Company
approved renaming the plan as Employee Stock Option Plan 2020 ('ESOP Plan 2020') and cancellation of 2,500,000
options in EGM held on 20 October 2020. During the previous year, the Board and Nomination and Remuneration
Committee (NRC) of the Company approved Employee Stock Option Plan 2024 ('ESOP Plan 2024'). The maximum
number of shares that the Company can issue under the ESOP plan 2024 are 2,500,000 equity shares. The board
and NRC have notified seven schemes under the ESOP Plan 2020 and two schemes under the ESOP Plan 2024 as of 31
March 2026. The revised number of options available under the ESOP Plan 2020 and ESOP Plan 2024 cumulatively are
9,593,839 equity shares as at 31 March 2026 (31 March 2025: 9,593,839). The options under these schemes vest to the
employees based on various performance and other parameters. As at 31 March 2026, the Company has granted
7,457,959 (net) (31 March 2025: 7,039,109) options to eligible employees as identified by the NRC. These options vest
between a minimum of 1 to 4 years from the date of grant.

As of March 31, 2026, there were no options granted under Scheme B of the ESOP Plan 2024 and following are the
details pertaining to options granted under the ESOP Plan 2020 & Scheme A of the ESOP Plan 2024:

• The expected life of the share options is based on current expectations and is not necessarily indicative of exercise
patterns that may occur.

• For the options granted prior to the Company getting listed, volatility of returns on the BSE500 index for historical
period has been considered. The expected volatility reflects the assumption that the historical volatility over a period
similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.

• The risk free interest rates are determined based on the zero-coupon sovereign bond yields with maturity equal
to the expected term of the option.

• The options outstanding at 31 March 2026 had an exercise price in the range of INR 91.98 to INR 1,098.90 (31 March
2025: INR 91.98 to INR 703.05) and a weighted-average remaining contractual life of 2.74 years (31 March 2025: 2.88
years).

• The weighted-average share price at the date of exercise for share options exercised during year ended 31 March
2026 was INR 1,045.84 (31 March 2025: INR 938.39).

Performance obligation:- The Company enters into contracts with customers for rendering domestic mutual
fund investor solutions, issuer solutions and international and other investor solutions. The performance
obligation for all of these services is satisfied over the period/ at a point in time as disclosed above.

Transaction price:- Contract price is determined as per terms agreed with the customer adjusted for discounts
and other price concessions, if any.

Payment terms:- The amounts receivable from customers become due after expiry of credit period which on an
average is less than 40 days. The contracts entered with customers do not have significant financing component.

Transaction price allocated to remaining performance obligations:- The Company has applied the practical
expedient in Ind AS 115 for disclosing information about its remaining performance obligations as the Company
has a right to invoice and right to consideration from its customers with respect to the Company performance
completed till the reporting date. The Company does not incur any cost to attain or fulfil a contract with a
customer. Accordingly, the related disclosures are not made.

46 As at 31 March 2026 and 31 March 2025, the Company did not have any long term contracts including derivative
contracts for which there were any material foreseeable losses.

47 The Company has not given any loan or guarantee or provided any security as covered under Section 186 of
the Companies Act, 2013. Accordingly, the disclosure requirements to that extent do not apply to the Company.

Additional regulatory information pursuant to the requirement in Division II of Schedule III to the Companies
Act, 2013

48 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 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.

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
directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee, security or the like from or on
behalf of the Ultimate Beneficiaries.

49 The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.

50 To the best of our knowledge, the Company does not have any transactions with companies struck off.

51 The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

52 The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

53 The Company does not have any such transaction which is not recorded in the books of accounts that 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).

54 The Company does not have borrowings from banks and financial institutions on the basis of security of current
assets. Hence, no quarterly returns or statements of current assets are being filed by the Company with banks
and financial institutions.

55 The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

56 The Company has complied with the number of layers prescribed under the Companies Act, 2013.

57 The Company has not entered into any scheme of arrangement which has an accounting impact on current
or previous financial year.

58 The Company is in the process of registering charge created on certain lien marked fixed deposits amounting
to INR 27.97 million, with the Registrar of Companies, Mumbai.

59 The Company holds certain shares of its customers as a trustee. The Company is in the process of transferring
those shares to the relevant account based on instructions to be received from respective customers.

| 60 EVENTS AFTER REPORTING PERIOD:

On April 10, 2026, the Company has invested INR 10.00 million, thereby acquiring a 2.00% equity stake in M/s. Sahamati
Foundation, a Non-Profit Company which is intending to become a Self Regulatory Organisation ("SRO") in the
Account Aggregator environment. Sahamati has made an application to the Reserve Bank of India for being
recognised as an SRO and has received in principle approval for the same.