Provisions

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of a
past event, it is probable that the Company will be required
to settle that obligation and a reliable estimate can be
made of the amount of the obligation. Provisions are
determined by discounting the expected future cash flows
(representing The amount recognised as a provision is the
best estimate of the consideration expenditure required
to settle the present obligation at the reporting date) at a
pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability,
taking into account the risks and uncertainties surrounding
the obligation. Where a provision is measured using the
cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows
(when the effect of the time value of money is material). The
unwinding of the discount is recognised as finance cost.
Expected future operating losses are not provided for.

A contingent liability is possible obligation that arises from
past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a
present obligation that is not recognised because it is not
probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot
be recognised because it cannot be measured reliably.

The Company does not recognise a contingent
liability but discloses its existence in the Standalone
Financial Statements.

m) Impairment of non - financials assets

At the end of each reporting year, the Company reviews
the carrying amounts of its assets to determine whether
there is any indication that those assets have suffered
an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss (if any).
For impairment testing, assets that do not generate
independent cash inflows are grouped together into
cash-generating units. Each cash-generating unit
represents the smallest group of assets that generates
cash inflows that are largely independent of the cash
inflows of other assets or cash-generating units. When
a reasonable and consistent basis of allocation can
be identified, corporate assets are also allocated to
individual cash-generating units, or otherwise they are
allocated to the smallest group of cash-generating units
for which a reasonable and consistent allocation basis
can be identified.

Recoverable amount is the higher of fair value less costs
of disposal and value in use. In assessing value in use,
the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects
current market assessments of the time value of money
and the risks specific to the asset (or cash-generating
unit) for which the estimates of future cash flows have
not been adjusted.

If the recoverable amount of an asset (or cash-generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is
reduced to its recoverable amount. An impairment loss
is recognised immediately in profit or loss.

When an impairment loss subsequently reverses, the
carrying amount of the asset (or a cash-generating unit)
is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does
not exceed the carrying amount that would have been

determined had no impairment loss been recognised
for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognised immediately
in profit or loss.

o) Earnings per share

Basic earnings per share are calculated by dividing
the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year. The weighted average
number of equity shares outstanding during the year is
adjusted for bonus issue, bonus element in a rights issue to
existing shareholders and share split

For the purpose of calculating diluted earnings per share,
the net profit or loss for the year attributable to equity
shareholders and the weighted average number of
shares outstanding during the year are adjusted for the
effects of all potential equity shares except where the
results are anti-dilutive.

p) Measurement of EBITDA

As permitted by the Guidance Note on Division II -
Ind AS Schedule III to the Companies Act, 2013, the
Company has elected to present earnings before
finance cost, depreciation, amortisation and tax (EBITDA)
as a separate line item on the face of the Standalone
Statement of Profit and Loss. The Company measures
EBITDA on the basis of profit/(loss) from continuing
operations. In its measurement, the Company does not
include depreciation and amortization expense, finance
costs, exceptional items and tax expense. Finance
costs comprise interest expense on: borrowings,
bank overdraft, lease liability and late payment of
statutory dues.

q) Borrowing Cost

Borrowing costs are interest and other costs (including
exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an
adjustment to interest costs) incurred in connection
with the borrowing of funds. Borrowing costs directly
attributable to acquisition or construction of an asset
which necessarily take a substantial period of time to get
ready for their intended use are capitalised as part of the
cost of that asset. Other borrowing costs are recognised
as an expense in the year in which they are incurred.

r) Share Capital

Equity shares

Incremental costs directly attributable to the issue of
equity shares are recognised as a deduction from equity.
Income tax relating to transaction costs of an equity
transaction is accounted for in accordance with Ind AS 12.

Preference shares

The Company redeemable preference shares are
classified as financial liabilities, because they bear
nondiscretionary dividends and are redeemable in
cash by the holders. NonOdiscretionary dividends
thereon are recognised as interest expense in profit or
loss as accrued.

s) Recognition of Dividend Income, Interest income or
expense

Dividend income is recognised in profit or loss on the
date on which the Company's right to receive payment
is established.

Interest income or expense is recognised using the
effective interest method.

The ‘effective interest rate' is the rate that exactly
discounts estimated future cash payments or receipts
through the expected life of the financial instrument to:

- the gross carrying amount of the financial asset; or

- the amortised cost of the financial liability.

In calculating interest income and expense, the effective
interest rate is applied to the gross carrying amount of
the asset (when the asset is not credit-impaired) or to
the amortised cost of the liability. However, for financial
assets that have become credit-impaired subsequent
to initial recognition, interest income is calculated by
applying the effective interest rate to the amortised cost
of the financial asset. If the asset is no longer credit-
impaired, then the calculation of interest income reverts
to the gross basis.

3. Significant accounting judgements, estimates
and assumptions

The preparation of Standalone Financial Statements
in conformity with Ind AS requires the management to
make judgments, estimates and assumptions that affect
the reported amounts of income, expenses, assets and
liabilities and the disclosure of contingent liabilities, at
the end of the reporting year. Although these estimates
are based on the management's best knowledge of
current events and actions, uncertainty about these
assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts
of assets or liabilities in future year. Therefore, actual
results could differ from these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the year in which the estimate is
revised if the revision affects only that year, or in the year

of the revision and future years if the revision affects
both current and future years.

Judgements

In the process of applying the Company's accounting
policies, management has made the following
judgements, which have the most significant effect
on the amounts recognised in the Standalone
Financial Statements:

a) Revenue from contracts with customers

The Company applied judgements that significantly
affect the determination of the amount and timing
of revenue from contracts with customers, such as
identifying performance obligations, wherein, the
Company provides multiple services as part of the
arrangement. The Company allocated the portion of
the transaction price to services basis on its relative
standalone prices.

Before including any amount of variable
consideration in the transaction price, the
Company considers whether the amount of
variable consideration is constrained. The
Company determined that the estimates of variable
consideration are not constrained based on its
historical experience, business forecast and the
current economic conditions. In addition, the
uncertainty on the variable consideration will be
resolved within a short time frame.

b) Determining lease term

The Company determines the lease term as the
non-cancellable term of the lease, together with
any periods covered by an option to extend the
lease if it is reasonably certain to be exercised,
or any periods covered by an option to terminate
the lease, if it is reasonably certain not to be
exercised. The Company has some property lease
arrangements with its vendors that include option
to terminate the contract by either party at any time
by giving advance notice or by the Company as
per its discretion. The Company applied judgment
in evaluating whether it is reasonably certain to
exercise the termination option. It considered all
the factors that create economic incentive for
the Company to continue with lease or terminate
including alternatives available for the office lease,
use of underlying property, leasehold improvements
made and accordingly determined lease term.

c) Financial Instruments

Classification and measurement - Refer
note 3 (k) and 30.

Assumptions and estimation uncertainties

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities
within the next financial year, are described below. The
Company based its assumptions and estimates on
parameters available when the Financial Statements
were prepared. Existing circumstances and assumptions
about future developments, however, may change due
to market changes or circumstances arising that are
beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

a) Taxes

Deferred tax assets are recognised for unused tax
losses to the extent that it is probable that future
taxable profit will be available against which the
losses can be utilised. In assessing the probability,
the Company considers whether the entity has
sufficient taxable temporary differences relating
to the same taxation authority and the same
taxable entity, which will result in taxable amounts
against which the unused tax losses or unused
tax credits can be utilised before they expire.
Significant management assumptions are required
to determine the amount of deferred tax assets that
can be recognised, based upon the likely timing
and the level of future taxable profits together with
future tax planning strategies.

The Company has tax business losses and
unabsorbed depreciation carried forward
amounting to H 6,869.65 million (31 March 2024: H
6,530.85 million). The Company does not expect
sufficient future taxable profit against which
such tax losses can be utilised. On this basis, the
Company has not recognised deferred tax assets
on these carried forward tax losses. Refer Note 25
for further details.

b) Defined benefit plans (gratuity benefit)

The cost of the defined benefit gratuity plan and
the present value of the gratuity obligation are
determined using actuarial valuations. An actuarial
valuation involves making various assumptions that
may differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases and mortality rates.
Due to the complexities involved in the valuation
and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each
reporting date.

The parameter most subject to change is the discount
rate. In determining the appropriate discount
rate for plans operated in India, the management
considers the interest rates of government bonds
in currencies consistent with the currencies of the
post-employment benefit obligation.

The mortality rate are current best estimates of
the expected mortality rates of plan members,
both during and after employment. Future salary
increases and gratuity increases are based on
expected future inflation rates, seniority, promotion
and other relevant factors, such as supply and
demand in the employment market. Refer Note 26
for further details.

c) Useful life of assets of Property, Plant and
Equipment

The charge in respect of periodic depreciation is
derived after determining an estimate of an asset's
expected useful life and the expected residual value
at the end of its life. The useful lives and residual
values of Company's assets are determined by
management at the time the asset is acquired and
reviewed at each financial year end. Refer Note 4
for further details.

d) Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the
interest rate implicit in the lease, therefore, it uses
its incremental borrowing rate (“IBR”) to measure
lease liabilities. The IBR is the rate of interest that
the Company would have to pay to borrow over a
similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value
to the right-of-use asset in a similar economic
environment. The IBR therefore reflects what the
Company ‘would have to pay', which requires
estimation when no observable rates are available
or when they need to be adjusted to reflect the
terms and conditions of the lease. The Company
estimates the IBR using observable inputs (such
as market interest rates) when available and is
required to make certain entity-specific estimates
(such as stand-alone credit rating). Refer Note 37
for further details.

e) Calculation of loss allowance

When measuring ECL the Company uses
reasonable and supportable forward-looking
information, which is based on assumptions for the
future movement of different economic drivers and
how these drivers will affect each other.

Loss given default is an estimate of the loss arising
on default. It is based on the difference between
the contractual cash flows due and those that the
lender would expect to receive.

Probability of default constitutes a key input in
measuring ECL. Probability of default is an estimate
of the likelihood of default over a given time horizon,
the calculation of which includes historical data,
assumptions and expectations of future conditions.

Also refer to note 30.

f) Fair value of equity-settled share-based
transaction

Estimating fair value for share-based payment
transactions requires determination of the most
appropriate valuation model, which depends
on the terms and conditions of the grant. This
estimate also requires determination of the most
appropriate inputs to the valuation model including
the expected life of the share option, volatility and
dividend yield and making assumptions about them.
The Company measures the fair value of equity-
settled transactions with employees at the grant
date using Black-Scholes model. The assumptions
for estimating fair value for share-based payment
transactions are disclosed in Note 28.

g) Adoption of new accounting principles

Deferred tax related to assets and liabilities arising
from a single transaction (amendments to Ind AS
12 - Income Taxes)

The amendments clarify that lease transactions give
rise to equal and offsetting temporary differences
and financial statements should reflect the future tax
impacts of these transactions through recognizing
deferred tax. The company has adopted this
amendment effective 1 April 2023. The company
previously accounted for deferred tax on leases
on a net basis. Following the amendments, the
company has recognized a separate deferred tax
asset in relation to its lease liabilities and a deferred
tax liability in relation to its right-of-use assets. The
adoption did not have any impact on the current
and comparative years presented in the standalone
financial statements.

h) Recently issued accounting pronouncements

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. For
the year ended 31 March 2025, MCA has notified
Ind AS 117 Insurance Contracts and amendments to
Ind AS 116 - Leases relating to sale and leaseback
transactions. The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any significant
impact in its financial statements.

Notes:

1. Trade receivables are non-interest bearing and the average credit period is between 0 to 30 days.

2. The Company always measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss
(ECL). The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix under simplified approach. The provision matrix takes into account historical credit loss
experience and adjusted for forward-looking information. The expected credit loss allowance is based on the ageing of the
days the receivables are due. Based on internal assessment which is driven by the historical experience and current facts
available in relation to default and delays in collection thereof, the credit risk for these trade receivables is considered low.

3. The Company writes off a trade receivable when there is information indicating that the customer is in severe financial
difficulty and there is no realistic prospect of recovery, e.g. when the customer has been placed under liquidation or has
entered into bankruptcy proceedings.

The following table details the risk profile of trade receivables based on the Company's provision matrix. As the Company's
historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision
for loss allowance based on past due status is not further distinguished between the Company's different customer segments.

10 (c) Terms/ rights attached to shares

i) Terms/ rights attached to equity shares:

Voting

Each holder of equity share is entitled to one vote per share held.

Dividend

The Company will declare and pay dividend in Indian Rupees. The dividend proposed by the Board of Directors is
subject to approval of the shareholders in ensuing Annual General Meeting, except in the case where interim dividend
is distributed. The Company has not declared or paid any dividend since its incorporation.

Liquidation

In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive all of the remaining
assets of the Company, after distribution of all preferential amounts. Such distribution amounts will be in proportion
to the number of equity shares held by the shareholders.

ii) Terms/rights attached to equity shares- Class A
Voting

To the extent that, and at all times when, applicable laws do not permit the holders of the series A CCCPS to exercise
voting rights on the series A CCCPS in the manner contemplated, the class A equity shares shall carry such number
of votes as may be necessary to permit each holder of the Series A CCCPS to vote, on all matters submitted to the
vote of the shareholders of Company, in such manner and such proportion as each such holder of the Series A CCCPS
would have been entitled to, had each such holder of the Series A CCCPS elected to convert its Series A CCCPS
into Equity shares based on the then applicable Series A Conversion Price. At all other times and in all other events,
including the event that a holder of Class A Equity Shares does not hold any Series A CCCPS, then the Class A Equity
Shares held by such Shareholder shall carry one (1) vote each.

Dividend

The Company will declare and pay dividend in Indian Rupees. The dividend proposed by the Board of Directors is
subject to approval of the shareholders in ensuing Annual General Meeting, except in the case where interim dividend
is distributed. The Company has not declared or paid any dividend since its incorporation.

Liquidation

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets
of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.

10 (d) The Company had not issued any bonus shares or bought back any shares during the five years immediately preceeding the
reporting date, except that the Company issued 15,617,940 equity shares of H 2 each as bonus (3 bonus shares for each equity
share), which was approved by the the Board of Directors and shareholders of the Company on 22 June 2021. (Refer note 41).

26. Employee benefits
A Defined contribution plans

The Company makes contributions towards Provident Fund to a defined contribution retirement benefit plan for
qualifying employees. The Company's contribution to the Employee Provident Fund is deposited with the Provident Fund
Commissioner which is recognised by Income Tax authorities.

The Company has recognised H 35.43 million during the year ended 31 March 2025 (31 March 2024: H 26.69 million) for
provident fund and other funds in the Standalone Statement of Profit and Loss. The contributions payable to these plans
by the Company are at rates specified in the rules of the schemes.

B Defined benefit plans

Gratuity - defined benefit plan

The Company's gratuity scheme provides for lump sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to 15 days' basic salary payable for each completed
year of service or part thereof in excess of 6 months, subject to a maximum limit of H 2 million in terms of the provisions of
Gratuity Act, 1972. Vesting occurs upon completion of 5 years of service.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected
Unit Credit Method with actuarial valuations being carried out at each reporting date.

The amount included in the standalone balance sheet arising from the Company's obligation in respect of its gratuity
plan is as follows:

d) The plan typically exposes the Company to actuarial risks such as: interest rate, longetivity risk and salary risk.

Interest rate risk

A decrease in the bond interest rate will increase the plan liability.

Longetivity risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality
of plan participants both during and after their employment. An increase in the life expectancy of the plan participants
will increase the plan's liability.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

27. Employee Stock Option Plan - 2014 (“The 2014 Plan”)

(a) The Company established the Employees Stock Option Scheme 2014 (“ESOP 2014”) which was approved by the
shareholders vide their special resolution dated on 5 August 2014. Under the plan, the Company is authorised to issue up
to 4,564,260 equity shares of H 2 each to eligible employees. Employees covered by the plan are granted an option to
purchase shares of the Company subject to the requirements of vesting.

The ESOP 2014 scheme was amended and approved by the Board of Directors of the Company at their meeting held on
07 July 2021. Further Amended ESOP 2014 scheme was aligned in accordance with the SEBI (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021 which was approved in the board meeting held on 07 December, 2021. The
Plan is further amended pursuant to the listing of the Company on Recognized Stock Exchange, to be in compliance with
Securities and Exchange Board of India (Share Based Employee Benefits & Sweat Equity) Regulations, 2021 (“SEBI (SBEB
& SE) Regulations”) by the Board on February 04, 2025 and has been further amended and ratified by the shareholders on
March 06, 2025.

28. Fair value measurements (Contd..)

b) The following methods / assumptions were used to estimate the fair values:

i) The carrying value of bank deposits, trade receivables, cash and cash equivalents, trade payables, security deposits,
loans, borrowings and other current financial assets and other current financial liabilities measured at amortised cost
approximate their fair value due to the short-term maturities of these instruments.

ii) The fair value of non-current financial assets and financial liabilities measured are determined by discounting future
cash flows using current rates of instruments with similar terms and credit risk. The current rates used does not reflect
signifcant changes from the discount rates used initially. Therefore, the carrying value of these instruments measured
at amortised cost approximate their fair value.

iii) Fair value of Investment in NPCI and AL trust is based on net asset value and discounted future cashflows respectively.
Further the additional investment in Blostem Fintech Private Limited is made near the reporting date bases the fair
value and accordingly, cost of investment represents fair value as at 31 March 2025.

e) The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:

Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets
for identical assets or liabilities.

Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable market data
(unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to
stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of net debt
(note 12) offset by cash and bank balance (note 9) and total equity of the company. The Company is not subject to any externally
imposed capital requirements.

The Company's board of directors reviews the capital structure of the Company on a periodic basis. As part of this review, the Board of
directors considers the cost of capital, risks associated with each class of capital requirements and maintenance of adequate liquidity.

The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the
requirements of the financial covenants.

Gearing ratio

The company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by Total equity (as shown in the balance sheet).

The gearing ratio at end of the reporting year was as follows.

30. Financial risk management objectives and policies

The Company's management monitors and manages key financial risk relating to the operations of the Company by analysing
exposures by degree & magnitude of risk. The risks include market risk (including interest rate risk, currency risk and other price
risk), credit risk and liquidity risk.

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. 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.

i) Credit risk management

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables
and financial guarantee provided by the Company) and from its financing activities, including deposits with banks and
financial institutions, mutual funds and other financial assets. Management has a credit policy in place and the exposure to
credit risk is monitored on an ongoing basis.

The carrying amounts of financial assets and the maximum amount the Company would have to pay if the financial guarantee
is called upon, irrespective of the likelihood of the guarantee being exercised, represents the maximum credit risk exposure.

Credit risk management considers available reasonable and supportive forward-looking information including indicators like
external credit rating (as far as available), macro-economic information (such as regulatory changes, government directives,
market interest rate).

Trade receivables

The Company is exposed to credit risk in the event of non-payment by trade partners. Receivable credit risk is managed
subject to the Company's established policy, procedures and control relating to trade partners risk management. The
Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables through a
lifetime expected credit loss. The provision matrix is based on its historically observed default rates over the expected life
of the trade receivables and is adjusted for forward-looking estimates.

Digital financial services

The Company's exposure to credit risk is from the Digital financial services business in which the Company facilitates
credit to its users through financing partners.The Company provides financial guarantees on the Digital financial services
business to its financing partners to cover the loss on the credit extended to its users. Financial guarantees are capped to
the extent agreed with the respective partner in line with Digital Lending guidelines issued by RBI.

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a
loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.

The Company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual
users and for geographical and industry concentrations, and by monitoring exposures in relation to such limits.

Credit risk is monitored by the credit risk department of the Company's independent Risk Management Unit (RMU). It is
their responsibility to review and manage credit risk, including environmental and social risk for all types of users. The RMU
consist of experts and credit risk managers that have deep expertise in the domain of financial and credit risk of Digital
financial services business and are responsible for managing the risk of Digital financial services portfolio including credit
risk systems, policies, models and reporting.

The Company has established a credit quality review process to provide early warning signals to identify the changes in
the creditworthiness of its Digital financial services users. User limits are established by the use of a credit risk classification
system, which assigns each Digital financial services user a risk rating. Risk ratings are subject to regular revision. The
credit quality review process enables the periodic assessment of the potential loss to which the Company is exposed
thereby allowing it to take corrective actions.

The Company has, based on current available information and based on the policy approved by the Board of Directors,
determined the provision for impairment of financial assets.

Concentration of credit risk

Concentrations arise when a number of users are engaged in similar business activities, or activities in the same
geographical region, or have similar economic features that would cause their ability to meet contractual obligations to be
similarly affected by changes in economic, political or other conditions.

In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific guidelines to
focus on spreading its lending portfolio across various products/states/customer base with a cap on maximum limit of
exposure for an individual/Company. Accordingly, the Company does not have concentration risk.

While MobiKwik has diversified partners to support platform for financial services products, one of the products that scaled
rapidly during the year ended 31 March 2025, combined with the updated regulations over the past one year, led to two
of Company's lending partners contributing significantly to overall revenue. The Company is in process to substantially
reduce this concentration risk over the next 12 months.

Expected credit loss on financial guarantee contract

The Company has, based on current available information and based on the policy approved by the Board of Directors,
calculated impairment loss allowance in the Digital financial services business using the Expected Credit Loss (ECL) model
to cover the guarantees provided to its financing partners.

Expected credit loss (ECL) methodology

The Company has assessed the credit risk associated with its financial guarantee contracts for provision of Expected Credit
Loss (ECL) as at the reporting dates. The Company makes use of various reasonable supportive forward-looking parameters
which are both qualitative as well as quantitative while determining the change in credit risk and the probability of default.
The underlying ECL parameters have been detailed out in the note on “Summary of significant accounting policies”.

Since, the Company offers Digital financial services and other credit products to a large retail customer base on its digital
platform via marketplace model, there is no significant credit risk of any individual customer that may impact the Company
adversely, and hence the Company has calculated its ECL allowances on a collective basis.

The Company has developed an ECL Model that takes into consideration the stage of delinquency, Probability of Default
(PD), Exposure at Default (EAD) and Loss Given Default (LGD).

I. Probability of Default (PD): represents the likelihood of default over a defined time horizon. The definition of PD is
taken as 90 days past due for all loans.

II. Exposure at Default (EAD): represents what is the user's likely borrowing at the time of default.

III. Loss Given Default (LGD): represents expected losses on EAD given the event of default.

Each financial guarantee contract is classified into (a) Stage 1, (b) Stage 2 and (c) Stage 3 (Default or Credit Impaired).
Delinquency buckets have been considered as the basis for the staging of all credit exposure under the guarantee contract
in the following manner:

a) Stage 1: 0-30 days past due loans

b) Stage 2: More than 30 and up to 90 days past due loans

c) Stage 3: Above 90 days past due loans

Inputs, assumptions and estimation techniques used to determine expected credit loss

The Company ECL provision are made on the basis of the Company historical loss experience and future expected credit
loss, after factoring in various macro-economic parameter. In calculating the ECL, given the uncertainty over the potential
macro-economic impact, the Company management has considered internal and external information including credit
reports and economic forecasts up to the date of approval of these financial results. The selection of variables was made
purely based on business sense.

The selected macro- economic variables were used to forecast the forward-looking PD's with macro-economic overlay
incorporated. Best, base and worst scenarios were created for all the variables and default rates were estimated for
all the scenarios. These default rates were then used with the same LGD and EAD to arrive at the expected credit loss
for all three cases. The three cases were then assigned weights and a final probability-weighted expected credit loss
estimate was computed.

Note - During the year ended 31 March 2025 and 31 March 2024, financial obligation amounting to H 351.41 milllion and H
843.47 million respectively were paid.

As per RBI guidelines on Default Loss Guarantee in Digital Lending, the Company has issued default loss guarantees
(DLG) to regulated lending partners in respect of loans provided by the lending partners to customers through MobiKwik
platform. The Company's maximum exposure under these guarantees is contractually capped to 5% of the total disbursed
loan amount. These guarantees are initially recognized at fair value using a Level 3 discounted cash flow model based
on expected credit losses. Fair value of these guarantees at inception is likely to equal the premium received and
recognised with equivalent financial guarantee fees receivable balance. These guarantees are backed by bank fixed
deposits, as collateral.

As of the reporting date, the fair value of these guarantees is H 521.93 million. Total provision recognized through the
Statement of Profit and Loss account during the year is H 402.41 million (31 March 2024 : H 21.65 million) and amount paid
/ settled during the year is H 174.48 million (31 March 2024 : H Nil). The Company monitors borrower performance and
maintains a provision based on expected credit losses, which is reassessed quarterly.

Cash and cash equivalents, bank deposits and investments in mutual funds

The Company maintaines its cash and cash equivalents, bank deposits and investment in mutual funds with reputed banks
and financial institutions. The credit risk on these instruments is limited because the counterparties are banks with high
credit ratings assigned by international credit rating agencies.

Security deposits

The Company monitors the credit rating of the counterparties on regular basis. These instruments carry very minimal credit
risk based on the financial position of parties and company 's historical experience of dealing with the parties.

ii) Liquidity risk management

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.

Ultimate responsibility for liquidity risk management rests with the board of directors, who has established an appropriate
liquidity risk management framework for the management of the Company's short-term, medium-term and long-term
funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves,
banking facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of
financial assets and liabilities.

iii) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk
and commodity risk. Financial instruments affected by market risk include foreign currency reeivables, deposits, investments in
mutual funds. The Company has in place appropriate risk management policies to limit the impact of these risks on its financial
performance. The Company ensures optimization of cash through fund planning and robust cash management practices.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The sensitivity disclosed in the below is attributable to bank overdraft facility availed by the Company.

(b) The income tax assessment for FY 2014-15 and FY 2015-16 was completed by the income tax authorities whereby a
sum of H 243.48 million and H 1,109.86 million respectively, had been adjusted, primarily, on account of disallowance of
advertisement and business promotion expenses. There is NIL demand for the respective years due to availability of
sufficient brought forward tax losses to offset the tax demand. The Company expects remote possibility for any cash outlay.
The matter is subjudice at appropriate appellate levels.

(c) The Company does not have any long term commitments/contracts including derivative contracts for which there will be
any material foreseeable losses.

(d) The Company does not have any amounts which were required to be transferred to the Investor Education and
Protection Fund.

33 During the year ended 31 March 2023, the Company noted that due to some technical glitch on the MobiKwik platform, some
of the users were able to execute fraudulent transactions for the purchase of Gift cards. Based on the management assessment,
the total amount of transactions executed was H 69.49 million. The Company was able to block the transactions worth H 14.86
million. Accordingly, the net loss on account of the above-mentioned matter was H 54.63 million. No employees or officer of the
Company was involved in this fraud.

The Company has filed a criminal complaint against the accused persons before the Cyber Cell, Gurugram and the matter in
under the police investigation. Further, the Company had also been able to recover H 6.88 million till date.

34. During the Financial year ended 31 March 2023, the Company had issued 39,742 (Thirty-Nine Thousand Seven Hundred
Forty Two) compulsorily convertible cumulative preference shares of a face value of H 100 (Indian Rupees One Hundred only)
at the Subscription Price of H 1,132.30 (Indian Rupees One Thousand One Hundred Thirty Two point Thirty paise) per Series H
CCCPS. Further, the Subscriber had subscribed to the partly paid-up Series H CCCPS of H 1 (Indian Rupee One only) per share
as on date and shall pay the remaining amounts on calls as per the mechanism mentioned in Securities subscription agreement
(“the agreement”).

During the year ended 31 March 2024, the Company had sent notice vide dated 5 December 2023 to the partly paid-up series
H CCCPS Holder to call the unpaid money on 39,742 Series H CCCPS. Series H CCCPS holders relinquished their rights subject
to the terms of the agreement and hence the amount had been forfeited.

The paid-up amount of H 0.04 million had been categorized as liability and grouped under other financial liabilities. During the
year ended 31 March 2024, the amount was reversed from liabilities and recorded as other income due to forfeiture of above
mentioned shares.

Major Customers:

Revenues of H 3307.25 million (31 March 2024 : H 4613.81 million) is derived from sales to customers exceeding 10% or more of
the company's revenue during the year.

36. The Company is authorized to function as a Bharat Bill Payment System Operating Unit (“BBPOU”) vide license dated 24
January 2019 to allow bill payments of various kinds including but not limited to FASTag recharge. During the year ended 31
March 2022, the Company noted suspicious transactions with respect to the recharge of various FASTags through MobiKwik
ZIP. A total of 617 FASTags issued by a certain Payments Bank (“PB”) in the State of Assam, India were recharged for a total of
H 107.3 Million.

On investigation, the Company found that the FASTag account in case of the PB was NOT a sub-wallet to the main wallet
which thereby enabled fraudsters to transfer the FASTag recharge amount into the main wallet/bank account/other linked bank
accounts which is in violation of the RBI Master Directions on Prepaid Payment Instruments (“PPI”), 2021 (“Master Directions”).

On 08 December 2021, the Company filed an FIR before the Officer In charge - BIEO (Bureau of Investigation of Economic
Offences) Guwahati, Assam against masterminds/culprits who orchestrated this FASTag misuse under Section 120B, 406, 420
of the Indian Penal Code, 1860. Pending litigation and recovery proceedings, the Company had expensed off H 106.91 million in
the statement of profit and loss for the year ended 31 March 2022.

39. The Company had incurred losses of H 1,233.26 million during the year 31 March 2025. The Company has net worth of H
6,037.62 million and a positive working capital position (i.e. its current assets exceed its current liabilities) as at 31 March 2025
of H 4,077.30 million, including cash and cash equivalents of H 2,717.75 million. Further, based on the current business plan and
projections prepared by the management, the Company expects to achieve growth in its operations in the coming years with
continuous improvement in operational efficiency. Management has made an assessment of the Company's ability to continue
as a going concern and believes that the Company will continue to be a going concern considering, amongst other things,
expected growth in operations, existing cash and cash equivalents and other available bank balances.

In view of the above, management has concluded that the going concern assumption is appropriate. Accordingly, the standalone
financial statements do not include any adjustments regarding the recoverability and classification of the carrying amount of
assets and classification of liabilities that might result, should the Company be unable to continue as a going concern.

Notes

Average Trade receivables = (Opening trade receivables Closing trade receivables)/2

Average Trade payables = (Opening trade payables Closing trade payables)/2

EBIT = Profit(Losses)/Earnings Before Interest and Taxes

Capital employed = Total Equity Borrowings (Non-current and Current)

The reason for variances in ratios more than 25% are explained as below :-

a) The Current ratio has increased from 1.03 as at 31 March 2024 to 1.53 as at 31 March 2025 mainly due to increase in cash
& bank balances on account of Net IPO proceeds.

b) The Debt equity ratio has decreased from 1.39 as at 31 March 2024 to 0.51 as at 31 March 2025 on account of increase in
equity share capital due to issue of fresh equity shares through Initial Public Offer (IPO).

c) The Debt service coverage ratio has decreased from 0.13 as at 31 March 2024 to (0.23) as at 31 March 2025 mainly due to
relative decrease in EBITDA as compared to previous year.

d) The Retun on equity ratio has decreased from 0.05 as at 31 March 2024 to (0.20) as at 31 March 2025 mainly due to increase
in total equity as a result of fresh equity issued as part of IPO in december 2024 and losses incurred during the year .

e) The Trade receivable turnover ratio has increased from 11.08 as at 31 March 2024 to 17.09 as at 31 March 2025 mainly due
to increase in revenue from operation and also, decrease in average trade receivables.

f) The Trade payable turnover ratio has increased from 4.38 as at 31 March 2024 to 6.88 as at 31 March 2025 mainly due to
increase in other expenses which was partially offset by the decrease in average trade payables.

g) The Net capital turnover ratio has decreased from 2.04 as at 31 March 2024 to 1.27 as at 31 March 2025 mainly due to
increase in capital employed on account of fresh issues of equity shares through IPO and these were partially offset by the
increase in the revenue from operations.

h) The Net profit ratio has decreased from 0.01 as at 31 March 2024 to (0.11) as at 31 March 2025 mainly due to loss incurred
during the year.

i) The Return on capital employed ratio has decreased from 7.36 as at 31 March 2024 to (9.84) as at 31 March 2025 mainly
due to reduction in EBIT as compared to previous year and increased in capital employed.

44. During the financial year 2013-2014 to 2016-2017, there were some delays in RBI related filings for allotments made to
10 non-resident shareholders due to mismatches in KYC documents and FIRCs. Resubmissions were done with the RBI and
approval have been received on all such submissions. In this regard, the Company has filed a compounding application dated 01
December 2023 and subsequent clarification sought by RBI was replied to on 11 December 2023 with the RBI for compounding
of the same. The Compounding Order and Compounding Certifcate were subsequently issued by RBI dated 28 May 2024 and
12 June 2024 respectively.

45. The Company was incorporated on 20 March 2008 and in December 2024, the Company has completed an initial public
offering (IPO) comprising fresh issue of 2,05,01,792 equity shares with a face value of H 2 each at an issue price of H 279 per
share. The equity shares of the Company got listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE)
on 18 December 2024.

The Company has received an amount of H 5,305.17 million (net of IPO expenses of H 414.83 million) as proceeds of fresh issue
of equity shares. Out of total IPO expenses, H 351.55 million (net of taxes) has been adjusted to securities premium.

e. There is no transaction which has been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961

f. There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.

g. There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by Company to or in any other persons or entities, including foreign entities ("Intermediaries"),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate
Beneficiaries") by or on behalf of the Company or

ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

46. Other notes (Contd..)

h. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of layers) Rules 2017

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

j. 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

k. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken.

l. The Company does not have any immovable properties other than properties where the Company is a lessee and the lease
agreements are duly executed in favour of the lessee.

As per our report of even date attached

For B S R & Associates LLP For and on behalf of the Board of Directors of

Chartered Accountants ONE MOBIKWIK SYSTEMS LIMITED

ICAI Firm Registration No. 116231W/W-100024

Girish Arora Bipin Preet Singh Upasana Rupkrishan Taku

Partner Managing Director Chairperson, Whole-time Director

Membership No.: 098652 & Chief Executive Officer & Chief Financial Officer

UDIN: 25098652BMKXPT5365 DIN:02019594 DIN:02979387

Place: Gurugram

Date: 19 May 2025 Ankita Sharma

Company Secretary
Place: Gurugram
Date: 19 May 2025