n) 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
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 expense relating
to a provision is presented in the Standalone
Statement of Profit and Loss net of any
reimbursement, if any when, and only when, it
is virtually certain that reimbursement will be
received if the entity settles the obligation.

In the ATM replenishment business, the Company
is contractually subject to charges levied by
customers for cash shortages. Accordingly,
the Company has created provision for the
estimated cash shortages under Ind AS 37.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, 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.

0) Contingent liabilities

A contingent liability is a 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 arises from past events
but is not recognised because the possibility of
an outflow of resources embodying economic
benefits is considered remote which will be
required to settle the obligation. A contingent
liability also arises in cases where there is a
liability that cannot be recognised because it
cannot be measured reliably with sufficient
reliability. The Company does not recognize a
contingent liability but discloses its existence in
the standalone financial statements.

Contingent Assets

Contingent asset is not recognized in
Standalone financial statements since this may
result in the recognition of income that may
never be realized. However, when the realization
of income is virtually certain, then the related
asset is not a contingent asset and is recognized.
Provisions, contingent liabilities and contingent
assets are reviewed at each Balance sheet date.

p) Cash and cash equivalents

Cash and cash equivalent in the balance sheet
and cash flow statement comprise cash at banks
and on hand and short-term deposits with an
original maturity of three months or less, which
are subject to an insignificant risk of changes in
value. For the purpose of the statement of cash
flows, cash and cash equivalents consist of cash
and short-term deposits, as defined above, net
of outstanding book overdrafts and cash credits
as they are considered an integral part of the
Company’s cash management.

q) Share based payment

Employees (including senior management) of
the Company receive remuneration in the form
of share-based payments, whereby employees
render services as consideration for equity
instruments (equity-settled transactions).

The cost of equity-settled transactions is
determined by the fair value at the date
when the grant is made using Black Scholes
valuation model.

That cost is recognised, together with a
corresponding increase in share-based payment
(SBP) reserves in equity, over the period
in which the performance and / or service
conditions are fulfilled in employee benefits
expense. The cumulative expense recognised
for equity-settled transactions at each reporting
date until the vesting date reflects the extent
to which the vesting period has expired and
the Company’s best estimate of the number

of equity instruments that will ultimately vest.
The Standalone Statement of Profit and Loss
expense or credit for a period represents the
movement in cumulative expense recognised as
at the beginning and end of that period and is
recognised in employee benefits expense.

No expense is recognised for awards that
do not ultimately vest because non-market
performance and / or service conditions have
not been met. When an award is cancelled
by the Company or by the counterparty, any
remaining element of the fair value of the
award is expensed immediately through the
Standalone Statement of Profit and Loss.

r) Fair value measurement

The Company measures standalone financial
instruments, such as, investment in mutual funds
unit at fair value at each balance sheet date.

Fair value is the price that would be received
to sell an asset or paid to transfer a liability
in an orderly transaction between market
participants at the measurement date. The fair
value measurement is based on the presumption
that the transaction to sell the asset or transfer
the liability takes place either:

• In the principal market for the asset
or liability, or

• In the absence of a principal market, in
the most advantageous market for the
asset or liability

The principal or the most advantageous market
must be accessible by the Company. The fair
value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financial
asset takes into account a market participant’s
ability to generate economic benefits by using
the asset in its highest and best use or by selling
it to another market participant that would use
the asset in its highest and best use.

The Company uses valuation techniques that
are appropriate in the circumstances and for
which sufficient data are available to measure
fair value, maximising the use of relevant
observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value
is measured or disclosed in the financial
statements are categorised within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair
value measurement as a whole:

Level 1: Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

Level 2: Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable

Level 3: Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable

For assets and liabilities that are recognised
in the standalone financial statements on a
recurring basis, the Company determines
whether transfers have occurred between levels
in the hierarchy by re-assessing categorisation
(based on the lowest level input that is
significant to the fair value measurement as a
whole) at the end of each reporting period.

External valuers are involved for valuation of
significant assets, such as impairment testing
of goodwill, non-current assets and fair value of
employee stock options schemes. Involvement
of external valuers is decided upon annually
by the management. Selection criteria include
market knowledge, reputation, independence
and whether professional standards
are maintained.

For the purpose of fair value disclosures, the
Company has determined classes of assets
and liabilities on the basis of the nature,
characteristics and risks of the asset or liability
and the level of the fair value hierarchy as
explained above.

s) Financial instruments

A financial instrument is any contract that
gives rise to a financial asset of one entity
and a financial liability or equity instrument of
another entity.

Financial assets

Financial assets are recognised when the
Company becomes a party to the contractual
provisions of the instrument.

Initial recognition and measurement

On initial recognition, a financial asset is
recognised at fair value. In case of Financial
assets which are recognised at fair value through
profit and loss (FVTPL), its transaction cost is
recognised in the Statement of Profit and Loss.
In other cases, the transaction cost is attributed
to the acquisition value of the financial asset.
However, trade receivables without a significant
financing component is initially measured at a
transaction price.

Financial assets are subsequently classified
and measured at:

• Amortised cost

• Fair value through profit and loss (FVTPL)

• Fair value through other comprehensive
income (FVOCI)

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

However, an exception to this principle is
financial assets in the form of trade receivables,
that would be initially measured at transaction
price (as defined in Ind AS 115) unless that
contain a significant financing component
determined in accordance with Ind AS 115 (or
when an entity applies the practical expedient).

Consistency should be maintained between the
accounting policy for initial measurement of
trade receivables and the accounting policy for
measurement of corresponding revenue.

Debt instruments at amortised cost

A debt instrument is measured at the amortised
cost if both the following conditions are met:

a) The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI)
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 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 in finance
income in the Standalone Statement of Profit
and Loss. The losses arising from impairment
are recognised in the Standalone Statement of
Profit and Loss. This category generally applies
to trade and other receivables.

Debt instrument at FVTOCI

Financial assets that are held within a business
model whose objective is achieved by both,
selling financial assets and collecting contractual
cash flows that are solely payments of principal
and interest, are subsequently measured at fair
value through other comprehensive income
(FVTOCI). Fair value movements are recognised
in the other comprehensive income. Interest
income is measured using the effective interest
rate (EIR) method and impairment losses, if any
are recognised in the Standalone Statement of
Profit and Loss.

Debt instrument at FVTPL

FVTPL is a residual category for debt
instruments. Any debt instrument, which
does not meet the criteria for categorization
as at amortized cost or as FVTOCI, is
classified as at FVTPL.

In addition, the Company may elect to
designate a debt instrument, which otherwise
meets amortized cost or FVTOCI criteria, as at
FVTPL. However, such election is allowed only if
doing so reduces or eliminates a measurement
or recognition inconsistency (referred to as
‘accounting mismatch’).

Debt instruments included within the FVTPL
category are measured at fair value with
all changes recognized in the Standalone
Statement of Profit and Loss.

Equity Investments

Investment in subsidiaries

Investment in subsidiaries is carried at cost in
the standalone financial statements.

Derecognition

A financial asset (or, where applicable, a part
of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e.
removed from the 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.

When the Company has transferred its rights to
receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates
to what extent it has retained the risks and
rewards of ownership. When it has neither
transferred nor retained substantially all of the
risks and rewards of the asset, nor transferred
control of the asset, the Company continues to
recognise the transferred asset to the extent
of the Company’s continuing involvement. In
that case, the Company also recognises an
associated liability. The transferred asset and
the associated liability are measured on a basis
that reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form
of a guarantee over the transferred asset is
measured at the lower of the original carrying
amount of the asset and the maximum amount
of consideration that the Company could be
required to repay.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables, as appropriate.

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

The Company’s financial liabilities include
trade and other payables, loans and
borrowings including bank overdrafts, financial
guarantee contracts.

Subsequent measurement

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

Financial liabilities at fair value through profit
or loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or
loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of
repurchasing in the near term.

Gains or losses on liabilities held for trading are
recognised in the 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, only if the criteria in Ind AS 109 are
satisfied. For liabilities designated as FVTPL,
fair value gains/ losses attributable to changes
in own credit risk are recognized in OCI. These
gains/ losses are not subsequently transferred
to the Statement of 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 Statement of Profit or Loss. The Company
has not designated any financial liability as at
fair value through Standalone Statement of
Profit and Loss.

Loans and borrowings

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains
and losses are recognised in the Standalone
Statement of Profit and 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 guarantee contracts

Financial guarantee contracts issued by the
Company are those contracts that require a

payment to be made to reimburse the holder
for a loss it incurs because the specified debtor
fails to make a payment when due in accordance
with the terms of a debt instrument. Financial
guarantee contracts are recognised initially as
a liability at fair value, without adjusting for
transaction costs that are directly attributable to
the issuance of the guarantee. Subsequently, the
liability is measured at the higher of the amount
of loss allowance determined as per impairment
requirements of Ind AS 109 and the amount
initially recognised less cumulative income
recognised in accordance with Ind AS 115.

Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the derecognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts
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
balance sheet if there is a currently enforceable
legal right to offset the recognised amounts
and there is an intention to settle on a net basis,
to realise the assets and settle the liabilities
simultaneously.

Impairment of financial assets

In accordance with Ind AS 109, the Company
applies expected credit loss (ECL) model for
measurement and recognition of impairment
loss on the financial assets which are not
fair valued through profit or loss and equity
instruments recognised in OCI. Loss allowance
for trade receivables and insurance claims is
measured at an amount equal to lifetime ECL
at each reporting date, right from its initial
recognition. For all other financial assets,
expected credit losses are measured at an
amount equal to the 12-month ECL, unless
there has been a significant increase in credit
risk from initial recognition in which case those
are measured at lifetime ECL. If, in a subsequent
period, credit quality of the instrument improves

such that there is no longer a significant increase
in credit risk since initial recognition, then the
entity reverts to recognising impairment loss
allowance based on 12-month ECL.

ECL impairment loss allowance (or reversal)
recognized during the period is recognized as
income or expense in the Standalone Statement
of Profit and Loss. This amount is reflected under
the head ‘other expenses’ in the Standalone
Statement of Profit and Loss.

As a practical expedient, the Company uses a
provision matrix to determine impairment loss
allowance on portfolio of its trade receivables.
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. At every reporting
date, the historical observed default rates are
updated and changes in the forward looking
estimates are analysed.

t) Business combinations and goodwill

Business combinations are accounted for
using the acquisition method. The cost of an
acquisition is measured as the aggregate of
the consideration transferred, measured at
acquisition date fair value and the amount of
any non-controlling interests in the acquiree.
For each business combination, the Company
elects whether to measure the non-controlling
interests in the acquiree at fair value or at
the proportionate share of the acquiree’s
identifiable net assets. Acquisition-related costs
are expensed as incurred.

At the acquisition date, the identifiable assets
acquired and the liabilities assumed are
recognised at their acquisition date fair values.
For this purpose, the liabilities assumed include
contingent liabilities representing present
obligation and they are measured at their
acquisition fair values irrespective of the fact
that outflow of resources embodying economic
benefits is not probable. Such contingent
liabilities to be subsequently measured at the
higher of the amount recognized under Ind
AS 37 and the amount initially recognised less
cumulative amortisation.

When the Company acquires a business, it
assesses the financial assets and liabilities
assumed for appropriate classification and
designation in accordance with the contractual

terms, economic circumstances and pertinent
conditions as at the acquisition date. This
includes the separation of embedded derivatives
in host contracts by the acquiree.

Goodwill is initially measured at cost, being the
excess of the aggregate of the consideration
transferred, 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 any gain on a
bargain purchase is recognised in the OCI and
accumulated in equity as capital reserve if there
exists clear evidence of the underlying reasons
for classifying the business combination as
a bargain purchase. If there does not exist
clear evidence of the underlying reasons
for classifying the business combination as
a bargain purchase, then gain on a bargain
purchase is recognised directly in equity as
capital reserve.

After initial recognition, goodwill is measured at
cost less any accumulated impairment losses,
if any. 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.

Where goodwill has been allocated to a cash¬
generating unit and part of the operation within
that unit is disposed of, the goodwill associated
with the disposed operation is included in
the carrying amount of the operation when
determining the gain or loss on disposal.
Goodwill disposed in these circumstances is
measured based on the relative values of the
disposed operation and the portion of the cash¬
generating unit retained. Goodwill is tested for
impairment annually as at March 31 and when
circumstances indicate that the carrying value
may be impaired.

Goodwill represents the excess of purchase
consideration paid over the value of net assets
of CMS Computers Limited taken over by the
Company in accordance with the Scheme
of Arrangement with the CMS Computers
Limited and towards the business acquisition
from Checkmate Services Private Limited. The
Scheme was effective from April 01, 2008 and
business from Checkmate was acquired with
effect from April 30, 2018 respectively.

u) Rounding of amount:

Amount disclosed in the financial statements
and notes have been rounded off to the nearest
million as per the requirement of schedule III,
unless otherwise stated.

v) Cash dividend distribution to equity holders
of the parent

The Group recognizes a liability once a dividend
is declared by the appropriate authority (Board
of Directors) and is no longer at the discretion
of the entity(group). As per the corporate laws
in India, a distribution is authorized when it is
approved by the shareholders. A corresponding
amount is recognized directly in equity as
and when a present obligation exists i.e.
declaration of dividend.

Dividends are recognised as a liability and
deducted from equity in the period in which they
are approved by the shareholders or declared
by the Board of Directors, as appropriate, on or
before the end of the reporting period.

Dividends declared after the reporting period
but before the approval of the financial
statements are not recognised as a liability
at the reporting date. Such dividends are
disclosed in the notes in accordance with Ind
AS 10 - Events after the Reporting Period.

3. Significant accounting judgments,
estimates and assumptions:

The preparation of the Company’s standalone
financial statements requires management to make
judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures and
the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result
in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected
in future periods.

Estimates and underlying assumptions are received
on an ongoing basis. Revisions to estimates are
recognised prospectively.

Significant judgement:

Information about judgments made in applying
accounting policies that have the most significant
effects on the amounts recognised in the standalone
financial statements is included in the following notes:

Leases

The application of Ind AS 116 requires company to
make judgements and estimates that affect the
measurement of right-of-use assets and liabilities.
The Company determines the lease term as the non¬
cancellable period of a lease, together with both
periods covered by an option to terminate the lease
if the Company is reasonably certain not to exercise
that option. In assessing whether the Company is
reasonably certain to exercise an option to extend
a lease, or not to exercise an option to terminate a
lease, it considers all relevant facts and circumstances
that create an economic incentive for the Company
to exercise the option to extend the lease, or not to
exercise the option to terminate the lease.

As the interest rate implicit in the lease is not readily
determinable, the Company uses its incremental
borrowing rate (IBR) to measure lease liabilities in
accordance with Ind AS 116. The Group determines
the incremental borrowing rate based on its average
borrowing rate, considering lease-specific factors
such as the lease term, nature and value of the
underlying asset, security, currency, and the economic
environment applicable at the commencement date.

Estimates

Information about assumptions and estimation
uncertainties at the reporting date that have a
significant risk of resulting in a material adjustment
to the carrying amounts of assets and liabilities
within the next financial year is included in the
following notes:

Defined benefit plans

The cost of the defined benefit 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. 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. Future salary
increases are based on expected future inflation
rates. The mortality rate is based on publicly available
mortality tables for the country. Those mortality
tables tend to change only at interval in response to
demographic changes. Refer note 28 for sensitivity
analysis in relation to this estimate.

Property, plant and equipment

Property, plant and equipment represent a significant
proportion of the asset base of the Company. 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
assets are determined by management at the time the
asset is acquired and reviewed periodically, including
at each financial year end. The lives are based on
historical experience with similar assets and considers
expected future usage, technological obsolescence,
physical wear and tear, or changes in expected
economic benefits, which are required to be reflected
in estimates of useful life under Ind AS 16.

Impairment of goodwill and investment in
subsidiaries

Goodwill is tested for impairment on an annual
basis and when events that occur / changes in
circumstances - indicate that the recoverable
amount of the CGU is less than its carrying value.

Investment in subsidiaries is tested for impairment
when events occurs that indicates that the
recoverable amount is less than its carrying value.

The impairment indicators, the estimation of
expected future cash flows and the determination
of the fair value require the Management to make
significant judgements, estimates and assumptions
concerning the identification and validation of

impairment indicators, fair value of assets, Revenue
growth rates and operating margins used to
calculate projected future cash flows, relevant risk-
adjusted discount rate, future economic and market
conditions, etc. For the details as to carrying amount
of Goodwill and impairment testing (including
related sensitivity analysis), refer note 33.

Share-based payments

The Company initially measures the cost of equity-
settled transactions with employees using black
scholes model to determine the fair value of the equity
instruments granted. Estimating fair value for share-
based payment transactions requires determination
of the most appropriate valuation model, which is
dependent 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 assumptions and models used for estimating
fair value for share-based payment transactions are
disclosed in note 38.

Claims receivable

It represents the claims made by the Company from
Insurance companies and others on account of
cash loss due to infidelity, theft or loot etc. at the
time of replenishment of cash in ATM’s and cash
deposits and pick-ups.

The Company has recognised the claims in books,
when the amount thereof can be measured reliably
and ultimate collection is reasonably certain. The
claims receivable balances are reviewed annually by
the management and necessary doubtful provision
percentage is calculated on the basis of Company’s
historical experiences, estimated timing of settlement,
claim acceptance/recoverability by insurers, disputed
claims, or delays, which materially affect the estimate.

Expected Credit Loss

The Company has large number of individual
customers. Management assesses the level of
allowance for doubtful debts after taking into account
ageing analysis, customer risk profile, payment trend,
forward-looking information and any other factor.

Other provisions

The recognition and measurement of other provisions
are based on the assessment of the probability of

an outflow of resources, and on past experience
and circumstances known at the balance sheet date.
The actual outflow of resources at a future date
may therefore, vary from the amount included in
other provisions.

Recent Indian Accounting Standards (Ind AS)

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:

1. 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 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.

2. 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.

3. Ind AS 12, International Tax Reform - Pillar
Two Model Rules applicable immediately - The
Company has no impact of these amendments.

Capital work in progress

Capital work-in-progress as at March 31, 2026 is H 1,133.17 millions (March 31, 2025 H 1525.48 millions). Additions made to
capital work-in-progress during the year amount to H 2,833.25 millions (March 31, 2025 H 2,678.33 millions).

Asset amounting to H 3,196.16 millions (March 31, 2025 H 1,296.86 millions) has been capitalised during the year.
(refer note 27)

The Company has amended the useful life of ATM Machines (including Cash Deposit Machines and Cash Recyclers) in
line with industry practice from 7 years to 10 years with effect from January 01, 2026 resulting in lower depreciation
charge of H 47.65 million in the year ended March 31, 2026. Impact on future periods is not separately quantified as it is
dependent on future capital additions, disposals, and the physical condition of the assets, the determination of which
is not practicable at this stage.

Defined benefit plan

As per "The Payment of Gratuity Act, 1972", the Company has a defined benefit gratuity plan. Every employee who
has completed five years or more of service gets gratuity on departure at 15 days’ salary (last drawn salary) for each
completed year of service. The Company has purchased an insurance policy to provide for payment of gratuity to
the employees. Every year, the Company carries out an acturial valuation based on the latest employee data from the
certified actuary valuer.

The Company has purchased insurance policy, which is a year-on-year cash accumulation plan in which the interest rate
is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules,
makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy).
The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter
compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate in particular, the
significant fall in interest rates, which could result in an increase in liability without corresponding increase in the asset.

The following tables summarizes the components of employee benefit expense recognized in the Standalone Statement
of Profit and Loss and the funded status and amounts recognized in the Standalone balance sheet for the gratuity plan
of the Company.

Other long term employee benefits

In accordance with its leave policy, the Company has provided for leave benefits on the basis of an actuarial valuation
carried out by an independent actuary at the end of the year.

Amount of H 16.95 million (March 31, 2025: H 14.48 million) for Compensated absences is recognised as an expense and
included in "Employee benefits expense” in the Statement of Profit and Loss. Accumulated non-current liability amount
to H 33.67 million (March 31, 2025: H 33.05 million) and accumulated current liability amount to H 23.69 million (March
31, 2025: H 13.45 million).

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are
sufficient to meet the obligations related to lease liabilities as and when they fall due.

The weighted average incremental borrowing rate applied to lease liabilities is 8.5%.

The outflow on account of lease liabilities for the year ended March 31, 2026 is H 664.58 million (March 31, 2025 is
H 599.96 million). Refer Standalone Cash Flow Statement.

Company as lessor

The Company has entered into lease arrangement for its ATM management and Remote Monitoring service business
and these leases have terms ranging between five and seven years. Future minimum rentals receivable under non¬
cancellable operating leases are, as follows:

33 Impairment test of Goodwill

Impairment test of Goodwill

Goodwill acquired through business combinations have indefinite lives. Out of the total Goodwill of the Company, the
material amount of goodwill is allocated to the following:

a) H 1035.12 million (March 31, 2025: H 1035.12 million), relates to the Cash Management division of the Company.

b) H 185.94 million (March 31, 2025: H 185.94 million), relates to the acquisition of door step banking business from
Checkmate Services Private Limited; also a part of Cash management business.

The Company performed its annual impairment test for the year ended March 31, 2026 and March 31, 2025 respectively.
The Company considers the relationship between its value in use and its carrying value, among other factors, when
reviewing the indicators of impairment.

The recoverable amount of the goodwill is determined based on a value in use (‘VIU’) calculated using cash flow
projections from financial budgets approved by management covering a period of five years and the terminal value
(after considering the relevant long-term growth rate) at the end of the said forecast periods. The Company has
extrapolated cash flows beyond 5 years using a growth rate and Terminal value growth rate of 5% for the year ended
March 31, 2026 (March 31, 2025: 5%). The terminal growth rate was determined based on management’s estimate of
the longterm compound annual EBITDA growth rate, consistent with the assumptions that a market participant would
make. The pre-tax discount rate applied to the cash flow projections for impairment testing is 13.4% for March 31, 2026
(March 31, 2025: 13.4%)

33 Impairment test of Goodwill (Contd..)

The said cash flow projections are based on the senior management past experience as well as expected trends for
the future periods. The calculation of weighted average cost of capital (WACC) is based on the Company’s estimated
capital structure as relevant and attributable to the CGU. The WACC is also adjusted for specific risks, market risks
and premium, and other inherent risks associated with similar type of investments to arrive at an approximation of the
WACC of a comparable market participant. The said WACC being pre-tax discount rates reflecting specific risks relating
to the relevant CGUs, are then applied to the above mentioned projections of the estimated future cash flows to arrive
at the discounted cash flows.

The key assumptions used in the determination of VIU are the revenue annual growth rates and the EBITDA growth rate.

Based on the above assumptions and analysis, no impairment was identified as at March 31, 2026. Further, on the analysis
of the said calculation’s sensitivity to a reasonably possible change in any of the above mentioned key assumptions
/ parameters on which the Management has based determination of the CGU’s recoverable amount, there are no
scenarios identified by the Management wherein the carrying value could exceed its recoverable amount.

35 Foreign Currency Exposure

The Company does not use forward exchange contracts to hedge its foreign exchange exposure relating to the
underlying transactions of trade and capital creditors payables in accordance with its forex policy. The Company does
not use foreign exchange forward contracts for trading or speculation purposes.

Transfers between Levels 1 and 2

There were no transfers from Level 1 to Level 2 or from Level 2 to Level 1 during the years ended March 31, 2026 and
March 31, 2025.

The fair value for the investments is arrived at with reference to the Net asset value (NAV) of the mutual fund units as
disclosed by the Asset Management Company.

The management assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, and
other current financial assets and financial liabilities approximate their carrying amounts largely due to the short-term
maturities of these instruments. Further the difference between carrying amount and fair value of insurance receivables,
deposit measured at amortised cost is not significantly different in each of the year presented.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale.

37 Financial risk management objectives and policies

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

• credit risk;

• liquidity risk; and

• market risk

(i) 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 established the risk management committee, which is
responsible for developing and monitoring the Company’s risk management policies. The committee reports
regularly to the board of directors on its activities.

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
are reviewed regularly to effect 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 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 audit committee is assisted in its oversight role by internal audit.
Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results
of which are reported to audit committee.

(ii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer fails to meet its obligations under a financial
instrument or customer contract. The carrying amount of financial assets and contract assets represents the
maximum credit exposure. The Company is exposed to credit risk from its operating activities (primarily trade
receivables and claims receivables).

Trade receivables

Customer credit risk is managed by the Company’s established policy. To minimise the risk from the counter parties the
Company enters into financial transaction with counter parties who are major names in the industry.

A significant risk in respect of receivables is related to the default risk and credit risk. An impairment analysis is performed
at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are
grouped into homogenous companies and assessed for impairment collectively. The calculation is based on historical
data. The maximum exposure to credit risk at the reporting date is the carrying value of receivables disclosed in Note
12 . The Company does not hold collateral as security.

(iv) Market risk

Market risk is the risk that changes in the market prices - eg. Foreign exchange rates, interest rates and equity
prices, will effect the Company's income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the returns.

a) Currency Risk

Currency risk is not material, as the Company's primary business activities are within India and does not have
significant exposure in foreign currency.

b) Interest Rate Risk

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

37 Financial risk management objectives and policies (Contd..)

Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities
premium and all other equity reserves attributable to the equity holders of the parent. The primary objective
of the Company’s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company
monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company
includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents. In order to
achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately
call loans and borrowings. The Company does not have any loans outstanding as at March 31, 2026. It has
taken adequate credit facilities from various banks to maintain its liquidity.

No changes were made in the objectives, policies or processes for managing capital during the years ended
March 31, 2026 and March 31, 2025.

38 Employee Stock Options Schemes

The Company has granted stock options to its employees through its equity settled schemes referred to as Employee
Stock Option Scheme 2023, Employee Stock Option Scheme 2016, CEO Stock Option Scheme 2016 and Management
Scheme 2016. Following are the details of the scheme:

Fair value sensitivity analysis for fixed rate instruments

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

For options granted under Employee scheme 2016, 21^st month onward vesting will be based on Company / business
unit performance for the second financial year after the financial year in which the options have been granted and so
on. The performance condition are assessed as non-market conditions.

For options granted under Employee scheme 2023, 12^th month onward vesting will be based on Company / business
unit performance for all financial years. The performance condition are assessed as non-market conditions.

The vested options pertaining to Employee Scheme 2016 can be exercised within 2 year of the date such options
are vested and vested options pertaining to Employee Scheme 2023 can be exercised within 3 year of the date such
options are vested. In any other liquidity event, the vested options can be exercised within such period as may be
prescribed by the Board in this regard.

The expected life of the share options is based on current expectations and is not necessarily indicative of exercise
patterns that may occur. 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 historical
volatility is based on price volatility of listed companies in same or similar industry. The company has allotted employee
stock options to some of its employees through its Employee Stock Option Scheme. During the year, 1,039,000 (year
ended March 31, 2025; 113,500) stock options has expired and lapsed on account of employees left the organization
and non-fulfillment of the performance criterion. During the current year, reversal on account of such expired options is
recognized in the profit and loss account aggregating to H 123.42 million. The Company has recognized H 38.95 million,
(March 31, 2025 - H 307.45 million) as employee benefit expense in relation to all the active options outstanding as at
March 31, 2026.

39 Operating Segments

Since the segment information as required by Ind AS 108 - Operating Segments is provided in consolidated financial
statements, the same is not provided in the Company’s standalone financial statements.

41 Ind AS 115 Revenue from Contracts with Customers

Sale of Product

The Company applies practical expedient in paragraph 121 of Ind AS 115 for all contracts entered for sale of product
and does not disclose information about remaining performance obligation that have original expected duration of
one year or less.

Revenue for services

The Company applies practical expedient in paragraph 121 of Ind AS 115 for all contract entered for revenue from
services, whereby it has right to receive consideration from a customer in an amount that corresponds directly with
the value to the customer of the entity’s performance completed to date. Hence the Company does not disclose
information of remaining performance obligation of such contracts.

Disaggregation of revenue from contract with customers

Revenue from sale of goods is recognized at point in time when control of the products being sold is transferred to
our customer and Revenue from services is recognized over time as and when services are rendered. Revenue from
contracts with customers is disaggregated by primary business units as given in the note 19.

42 Registration of charges or satisfaction with Registrar of Companies

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

43 Undisclosed income

a) The Company has not 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.

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

44 Disclosure required for quarterly statement submitted with banks

For borrowings from banks or financial institutions on the basis of security of current assets, quarterly returns or
quarterly statements of current assets filed by the Company with banks or financial institutions during the year ended
March 31, 2026 and the year ended March 31, 2025 are in agreement with the books of accounts.

45 Business combination

Acquisitions during the year ended March 31, 2026
Acquisition of Securens Systems Private Limited ("SSPL")

The Board of Directors of the Company on July 23, 2025 had approved 100% acquisition of 12,06,150 (twelve lakh
six thousand one hundred fifty) equity shares and 16,04,036 (sixteen lakh four thosuand thirty six) of compulsorily
convertible preference shares ("CCPS") of SSPL for a total purchase consideration of H 445 million at a price of
H 158.41 per equity share and CCPS. SSPL is engaged in the business of providing 24/7 monitoring of intrusion alarm
security systems and other related products and services including business intelligence and analytics. The Company
has acquired SSPL to further strengthen HAWKAI remote monitoring business.

On Sept 16, 2025, CMS Info Systems Limited("CMS") has acquired 53.89% and on March 9, 2026, completed the above
acquisition by paying 445 mn to SSPL equity and CCPS holders. As per Share purchase agreement CMS has present
ownership interest on the acquisition date with respect to balance stake of promoters and shareholders and hence Non
Controlling Interest(NCI) not existed on acquisition date.

45 Business combination (Contd..)

The excess of the purchase consideration paid over the fair value of assets acquired has been attributed to goodwill.
The primary items that generated this goodwill are the value of the customer relationship and non compete fees
for entering into remote monitoring business which are an intangible asset. Goodwill arising on account of future
technological benefits not separately identifiable and expected synergies. Goodwill is not tax-deductible.

From the date of acquisition, SSPL has contributed H 484.27 million of revenue* and H 4.12 million of loss * to the profit
before tax from operations of the Group. If SSPL has acquired at the beginning of the year, then consolidated Revenue
H 27,709.25 million of revenue and H 4,093.37 million of profit to profit before tax from operations of Group.

* before inter-company eliminations

46 Dividend

Dividends declared and paid during the year ended March 31, 2026 include an amount of H 3.00 per equity share Special
Interim Dividend and H 3.25 per equity share towards final dividend for the year ended March 31, 2025 and an amount
of H 2.75 (PY : March 31, 2025 H 3.25) per equity share towards interim dividends for the year ended March 31, 2026.

The Board of Directors, in its meeting held on May 14, 2026, has recommended a final dividend of H 2.50/- per Equity
share of H 10 for FY 2025-26. The payment of final dividends, as recommended above, is subject to the approval of the
Shareholders of the Company at the ensuing Annual General Meeting.

47 Disclosure required under Rule 11(e) of the Companies Rules, 2014

A) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) in any other persons or entities, 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 ("Ultimate Beneficiaries”) by or on behalf
of the Group or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

B) The Company has not received any funds from any persons or entities, 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 (’Ultimate Beneficiaries”)
by or on behalf of the Funding Party or provide any guarantee, security or the like from or on behalf of the
Ultimate Beneficiaries.

51 Exceptional items

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 (collectively "new Labour Codes”) - consolidating 29 existing labour laws. In accordance with
the new Labour Codes, the Company has estimated the incremental impact on retiral benefits to be H 57.05 million. This
has been presented under "Exceptional Items” in the Standalone Statement of Profit and Loss.

52 Subsequent Events

There are no significant subsequent events that would require adjustments or disclosures in the financial statements
as on the balance sheet date.

53 Additional disclosure required by schedule III (amendments dated 24^th March 2021) to the
Companies Act, 2013

No transactions to report against the following disclosure requirements as notified by MCA pursuant to
amended Schedule III:

a) Crypto Currency or Virtual Currency

b) Benami Property held under Prohibition of Benami Property Transaction Act, 1988 and rules made thereunder

c) Relating to borrowed funds:

i. Wilful defaulter

ii. Utilisation of borrowed funds and share premium

iii. Borrowings obtained on the basis of security of current assets

iv. Discrepancy in utilisation of borrowings

v. Current maturity of long term borrowings

d) Merger / amalgamation / reconstruction, etc.