3.13 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 the obligation, and a reliable estimate
can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate
of the consideration required to settle the present
obligation at the end of the reporting period, taking
into account the risks and uncertainties surrounding
the obligation. When 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).

Warranties

The estimated liability for product warranties is recorded
when products are sold. These estimates are established
using historical information on the nature, frequency,
average cost of warranty claims and management
estimates regarding possible future incidence based
on corrective actions on product failures. The timing of
outflows will vary as and when warranty claim will arise
being typically two to five years.

3.14 Financial instruments

Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual
provisions of the instruments.

Financial assets except for trade receivables that do
not have a significant financing component which are
measured at transaction price and financial liabilities
are initially measured at fair value. Transaction costs
that are directly attributable to the acquisition or issue
of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value
through the Statement of profit and loss) are added to
or deducted from the fair value of the financial assets or
financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition
of financial assets or financial liabilities at fair value
through the Statement of profit and loss are recognised
immediately in the Statement of profit and loss.

3.15 Financial assets

All recognised financial assets are subsequently
measured in their entirety at either amortised cost

or fair value, depending on the classification of the
financial assets

Classification of financial assets

Debt instruments that meet the following conditions
are subsequently measured at amortised cost (except
for debt instruments that are designated as at fair
value through the Statement of profit and loss on initial
recognition):

• the asset is held within a business model whose
objective is to hold assets in order to collect
contractual cash flows; and

• the contractual terms of the instrument give rise
on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding

Debt instruments that meet the following conditions
are subsequently measured at fair value through other
comprehensive income ("FVTOCI") (except for debt
instruments that are designated as at fair value through
the Statement of profit and loss on initial recognition):

• the asset is held within a business model whose
objective is achieved both by collecting contractual
cash flows and selling financial assets; and

• the contractual terms of the instrument give rise
on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.

Interest income is recognised in the Statement of profit
and loss for FVTOCI debt instruments.

All other financial assets are subsequently measured at
fair value.

Effective interest method

The effective interest method is a method of calculating
the amortised cost of a debt instrument and of allocating
interest income over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash receipts (including all fees and points paid
or received that form an integral part of the effective
interest rate, transaction costs and other premiums
or discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period, to
the net carrying amount on initial recognition.

Income is recognised on an effective interest basis
for debt instruments other than those financial assets
classified as at FVTPL. Interest income is recognised
in the Statement of profit and loss and is included in the
"Other income" line item.

Financial assets at fair value through the
Statement of profit and loss (FVTPL)

Investments in equity instruments are classified as at
FVTPL, unless the Company irrevocably elects on initial
recognition to present subsequent changes in fair value
in other comprehensive income for investments in
equity instruments which are not held for trading.

Debt instruments that do not meet the amortised cost
criteria or FVTOCI criteria are measured at FVTPL. In
addition, debt instruments that meet the amortised cost
criteria or the FVTOCI criteria but are designated as at
FVTPL are measured at FVTPL.

A financial asset that meets the amortised cost criteria
or debt instruments that meet the FVTOCI criteria may
be designated as at FVTPL upon initial recognition if
such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would
arise from measuring assets or liabilities or recognising the
gains and losses on them on different bases. The Company
has not designated any debt instrument as at FVTPL.

Financial assets at FVTPL are measured at fair value at
the end of each reporting period, with any gains or losses
arising on re-measurement recognised in the Statement
of profit and loss. The net gain or loss recognised in the
Statement of profit and loss incorporates any dividend
or interest earned on the financial asset and is included
in the 'Other income' line item. Dividend on financial
assets at FVTPL is recognised when the company's right
to receive the dividends is established, it is probable that
the economic benefits associated with the dividend
will flow to the entity, the dividend does not represent
a recovery of part of cost of the investment and the
amount of dividend can be measured reliably.

Investments in subsidiaries and associates

Investment in subsidiaries and associates are carried at
cost in the standalone financial statements.

Impairment of financial assets

The Company applies the expected credit loss for
recognising impairment loss on financial assets
measured at amortised cost, debt instruments at
FVTOCI, trade receivables, other contractual rights
to receive cash or other financial asset, and financial
guarantees not designated as at FVTPL.

The Company determines the allowance for credit losses
based on historical loss experience adjusted to reflect
current and estimated future economic conditions.

Offsetting

Financial assets and financial liabilities are offset and
the net amount presented in the balance sheet when,
and only when, the Company currently has a legally
enforceable right to set off the amounts and it intents

either to settle them on net basis or to realise the assets
and settle the liabilities simultaneously.

Derecognition of financial assets

The Company derecognises a financial asset when
the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership of
the asset to another party.

3.16 Financial liabilities and equity instruments

Classification as debt or equity

Debt and equity instruments issued by Company are
classified as either financial liabilities or as' equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting
all of its liabilities.

Financial liabilities

Financial liabilities that are not held-for-trading and
are not designated as at FVTPL are measured at
amortised cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortised cost are
determined based on the effective interest method.
Interest expense that is not capitalised as part of costs
of an asset is included under 'Finance costs'.

The effective interest method is a method of calculating
the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash payments (including all fees and points paid or
received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts)
through the expected life of the financial liability.

All financial liabilities are subsequently measured at
amortised cost using the effective interest method or
at FVTPL.

Derecognition of financial liabilities

The Company derecognises financial liabilities
when, and only when, the Company's obligations are
discharged, cancelled or have expired.

3.17 Derivative financial instruments

The Company enters into a variety of derivative financial
instruments to manage its exposure to foreign exchange

rate risks, including foreign exchange forward contracts,
option contracts, etc.

Foreign currency derivatives are initially recognised at
fair value at the date the derivative contracts are entered
into and are subsequently re-measured to their fair value
at the end of each reporting period. The resulting gain
or loss is recognised in the Statement of profit and loss
immediately unless the derivative is designated and
effective as a hedging instrument, in which event the
timing of the recognition in the Statement of profit and
loss depends on the nature of the hedging relationship
and the nature of the hedged item.

3.18 Cash flow statement

Cash flows are reported using the indirect method,
whereby profit / (loss) before extraordinary items and tax
is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating,
investing and financing activities of the Company are
segregated based on the available information.

3.19 Earnings per share

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

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

3.20 Contingent liabilities and contingent assets

A contingent liability exists when there is a possible but
not probable obligation, or a present obligation that may,
but probably will not, require an outflow of resources,
or a present obligation whose amount cannot be
estimated reliably. Contingent liabilities do not warrant
provisions, but are disclosed unless the possibility of
outflow of resources is remote. Contingent assets are
neither recognised nor disclosed in the standalone
financial statements. However, contingent assets are
assessed continually and if it is virtually certain that
an inflow of economic benefits will arise, the asset and
related income are recognised in the period in which the
change occurs.

3.21 Audit Trail

The Company has used an accounting software system
for maintaining its books of account for the financial year
ended March 31, 2026 which has a feature of recording
audit trail (edit log) facility and the same has operated

throughout the year for all relevant transactions recorded
in the software system.

The audit trail has been preserved by the Company as
per statutory requirements for record retention.

4 CRITICAL ACCOUNTING

JUDGEMENTS AND KEY SOURCES OF
ESTIMATION UNCERTAINTY

In the application of the Company accounting policies,
which are described in note 3, the management of the
Company are required to make judgements, estimates
and assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions
are based on historical experience and other factors that
are considered to be relevant. Actual results may differ
from these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised prospectively.

The following are the areas of estimation uncertainty
and critical judgements that the management has made
in the process of applying the Company's accounting
policies and that have the most significant effect on
the amounts recognised in the standalone financial
statements:-

(a) Recoverability of intangible asset

Capitalisation of cost in intangible assets under
development is based on management's judgement
that technological and economic feasibility is
confirmed and asset under development will
generate economic benefits in future. Based
on evaluations carried out, the Company's
management has determined that there are no
factors which indicates that these assets have
suffered any impairment loss.

(b) Defined benefit plans

The cost of the defined benefit plan and other
post-employment benefits and the present value
of such 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, mortality rates and future pension
increases. Due to the complexities involved in
the valuation and its long-term nature, a defined
benefit obligation is sensitive to changes in these
assumptions. All assumptions are reviewed at each
reporting date.

(c) Provision and contingent liability

On an ongoing basis, Company reviews pending
cases, claims by third parties and other

contingencies. For contingent losses that are
considered probable, an estimated loss is recorded
as an accrual in financial statements. Contingent
loss that are considered possible are not provided
for but disclosed as Contingent liabilities in the
financial statements. Contingencies the likelihood
of which is remote are not disclosed in the financial
statements. Contingent gain are not recognised
until the contingency has been resolved and
amounts are received or receivable.

(d) Useful lives of depreciable assets

Management reviews the useful lives of depreciable
assets at each reporting date. As at March 31,
2026 management assessed that the useful lives
represent the expected utility of the assets to the
Company. Further, there is no significant change in
the useful lives as compared to previous year.

(e) Impairment of investment in equity
instruments of subsidiary and associate
companies

During the year, the Company assessed the
investment in equity instrument of subsidiary
and associate companies carried at cost for
impairment testing. Some of these companies are
start-ups or are at early stage of their operations
and are expected to generate positive cash flows in
the future years. Detailed analysis has been carried
out on the future projections and the Company is
confident that the investments do not require
any impairment.

(f) Government grant

During the year, management has assessed the
conditions attached to grants which have been
met and has assessed whether the grants will be
received or not and the period in which it will be
received. Basis assessment, the Company has
recognised the government grants in the Statement
of profit and loss and accordingly classified as
current and non-current assets.

(g) Investment in compulsory convertible
debentures

The classification of compulsory convertible
debentures, as equity or debt instrument, is based
on management's judgement and evaluation of
applicable criteria.

4.1 Standards issued but not yet effective

New standards, interpretations and amendments

adopted by the Company

Ministry of Corporate Affairs ("MCA") notifies new

standards or amendments to the existing standards

under Companies (Indian Accounting Standards) Rules
as issued from time to time.

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

In August 2025, MCA notified the following
amendments to:

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

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

Ind AS 12, International Tax Reform - Pillar Two Model
Rules applicable immediately - The amendments
provide a temporary mandatory relief from deferred
tax accounting for top-up tax and require companies to
disclose that they have applied the relief. This relief is
immediate and applies retrospectively. The amendments
also require companies to provide new disclosures to
compensate for potential loss of information resulting
from the relief. Such disclosures are to be provided for
annual reporting periods beginning on or after April 1,
2025. The Company has reviewed the amendment and
based on its evaluation has determined that it does not
have any impact in its financial statements.

Standards notified but not yet effective:

There are no standards that are notified and not yet
effective as on the date.

In previous year, Ather Energy Limited has converted all its CCPS into equity shares. Hero MotoCorp was having 4,35,807 CCPS share (inclusive
of 1,869 CCPS - Anti Dilutive) which got converted into 11,37,45,627 equity shares of Ather Energy at a rate of 261 equity shares per preference
share. Subsequent to the year ended March 31, 2025, Ather Energy Limited, successfully completed its Initial Public Offering (IPO) of equity
shares. Following the IPO, the equity shares of Ather Energy Limited were listed on the National Stock Exchange of India Limited (NSE) and
BSE Limited (BSE).

3 As of March 31, 2026, the Company assessed the carrying value of its investment in HMCL Colombia S.A.S. considering the continued losses
and erosion in net worth. During the year, Woven Holding LLC, the joint shareholder, invested I 57 crore in HMCL Colombia, resulting in dilution
of the Company's shareholding by 10%. Based on the valuation assessment using the Discounted Cash Flow (DCF) method, management
concluded that no further impairment provision was required as at March 31, 2026.

The recoverable amount was determined under the income approach using key assumptions including cash flow projections over 9 years,
terminal growth rate of 3% and WACC of 16%.

During the previous year, based on this impairment analysis, the recoverable amount of the investment in HMCL Columbia was estimated
at I 229.05 crore, leading to an impairment charge of I 41.20 crore. This impairment charge was recorded in the statement of profit and loss
for the year ended March 31,2025, as detailed in note 26.

4 During the current year, the Company invested I 510 crore in Euler Motors Private Limited through subscription to 10 units of Series D equity
shares and 6,65,914 units of Series D CCPS, resulting in a 34.12% stake. Considering the Company's shareholding and board representation,
Euler Motors has been classified as an associate and accounted for in accordance with Ind AS 27 in these financial statements.

Further, the Company invested I 210 crore in 2,68,219 Series E CCPS of Euler Motors Private Limited. As the conversion ratio is not fixed, the
instrument has been classified as a financial instrument and measured at FVTPL in accordance with Ind AS 109.

5 During the year, an investment of USD 35 million (approximately I 330 crore) was made in Zero Motorcycles, Inc. by the existing shareholder,
along with certain restructuring arrangements, resulting in dilution of the Company's shareholding from 6.90% to 0.8%. Management has
considered the transaction valuation as a Level 2 input for fair valuation of the investment and, accordingly, recognised a fair value loss of I 222
crore during the current year.

6 During the year the Bombay Stock Exchange Limited has issued bonus shares in 2:1 ratio resulting in total no. of shares held by the company
from 210,600 to 631,800.

7 During the financial year 2025-26, Gogoro Inc. implemented a 1-for-20 reverse stock split, adjusting the par value per share from USD 0.0001
to USD 0.002. Consequently, the Company's investment holding in Gogoro Inc. was proportionally reduced from 1,500,000 shares to 75,000
shares, with no impact on aggregate cost basis.

8 Information about the Company's exposure to credit and market risks, and fair value measurement, is included in Note 41.

The Company makes annual contribution to Life Insurance Corporation (LIC). As LIC does not disclose the composition
of its portfolio investments, break-down of plan investments by investment type is not available to disclose.

Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary
increase. The sensitivity analysis below have been determined based on reasonable possible changes of the respective
assumptions occurring at the end of the year, while holding all other assumptions constant.

• If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease by I 21.59 crore
(increase by I 23.14 crore) (as at March 31, 2025: decrease by I 27.21 crore (increase by I 9.77 crore).

• If the expected salary growth increases (decreases) by 0.5%, the defined benefit obligation would increase by I 20.62 crore
(decrease by I 19.39 crore) (as at March 31, 2025: increase by I 26.27 crore (decrease by I 9.46 crore).

Sensitivities due to change in mortality rate and change in withdrawal rate are not material and hence impact of such
change is not calculated.

Sensitivity Analysis

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may
be correlated.

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

The various matters are subject to legal proceedings in the ordinary course of business. The legal proceeding when
ultimately concluded will not, in the opinion of management, have a material effect on the result of operations or the
financial position of the Company.

Additionally, the Company is involved in other disputes, lawsuits, claims, inquiries, investigations and proceedings,
including commercial matters that arise from time to time in the ordinary course of business. The Company believes
that none of these matters, either individually or in aggregate, are expected to have any material adverse effect on its
financial statements.

b) The Income Tax Authorities had disallowed certain expenses incurred in prior periods and made a demand of I 27 crore
(previous year I 178 crore). The Company is in the process of filing an appeal with the Income Tax Appellate Tribunal
(ITAT). The Company has evaluated the demand and based on external legal advice, supporting documents for these
expenses and other available information had concluded that no provision is required for this demand as it is probable
that the Company's position will be accepted upon ultimate resolution.

Further, there were investigations initiated by government agencies in the past and certain of those investigations have
been concluded favorably. Based on the developments in favour of the Company's position and external legal advice,
the Company after considering available information and facts, as of the date of approval of the financial statements,
has not identified any material adjustments, disclosures or any effect to financial statements or financial information.

35 SEGMENT INFORMATION

The Company primarily operates in the automotive segment. The automotive segment includes all activities related to
development, design, manufacture, assembly and sale of vehicles, as well as sale of related parts and accessories. The
board of directors of the Company, who has been identified as being the chief operating decision maker (CODM), evaluates
the Company's performance, allocate resources based on the analysis of the various performance indicator of the Company
as a single unit.

Therefore, based on the guiding principles given in Ind AS 108 on 'Operating Segments', the Company's business activity fall
within a single operating segment, namely automotive segment.

F) Terms and Conditions

All transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions
and within the ordinary course of business. Outstanding balances at the year end are unsecured and settlement
occurs in cash.

37 On November 21,2025, the Government of India notified the four Labour codes - The code on Wages, 2019, The Industrial
Relations code, The code on Social Security, 2020, and The Occupational Safety, Health and Working Conditions Code,
2020 - consolidating 29 existing Labour Laws. Based on the draft rules and FAQs issued by the ministry of labour and
employment and best available information, the Company has estimated the financial implications thereof and has made
an additional provision of I 119 crore in the year ended March 31, 2026. Considering the materiality, regulatory driven
and non - recurring nature of the impact, the company has presented such incremental impact under "Exceptional item".
The Company continues to monitor the finalisation of central/state rules and other developments pertaining to labour
codes and would provide appropriate accounting effect on the basis of such developments, if any.

38 Information pursuant to clause 3 (vii) (b) of the Companies (Auditor's Report) Order, 2020 in respect of disputed dues,
not deposited as at March 31, 2026, pending with various authorities:

39A. The Ministry of Environment, Forest and Climate Change issued the Environment Protection (End-of-Life Vehicles)
Rules, 2025 (ELV rules), effective from April 01, 2025. In accordance with ELV rules, Extended Producer Responsibility
(EPR) obligations are imposed on producers ("vehicle manufacturers") for the scrapping of End-of-Life Vehicles. The
obligations require acquiring EPR certificates from registered Vehicle Scrapping Facilities via a Centralised Online
Portal (Portal), which is partially operational. However, the pricing mechanism for EPR certificates, and measurement
framework for determining financial obligations are not yet made available.

Further, the Ministry of Environment, Forest and Climate Change notified the Battery Waste Management Rules, 2022
on February 24, 2025 (as amended from time to time), applicable to producers (manufacturers and importers included),
dealers, consumers, and entities involved in the collection, segregation, transportation, refurbishment, and recycling of

all types of waste batteries. As a producer of batteries, the Company is subject to these obligations, however, sufficient
guidance on waste collection mechanisms and associated costs are not yet made available.

Consequently, the Company is currently unable to reliably estimate a range of possible outcomes and the financial
implications of the above rules and will be evaluated once the implementation framework for determining the reliable
estimate is established.

40 SHARE-BASED PAYMENTS

Employee Stock Option Plan

The Employee Stock Options Scheme titled "Employee Incentive Scheme 2014 - Options and Restricted Stock Unit" hereafter
referred to as "Employee Incentive Scheme 2014" or "the Scheme" was approved by the shareholders of the Company through
postal ballot on September 22, 2014. The Scheme covered 49,90,000 options/restricted units for 49,90,000 equity shares.
The Scheme allows the issue of options/restricted stock units (RSU)/performance linked restricted stock units (PRSU) to
employees of the Company which are convertible to one equity share of the Company. As per the Scheme, the Nomination
and Remuneration Committee grants the Options/RSU/PRSU to the employees deemed eligible. The options and RSU/PRSU
granted vest over a period of 4 and 3 years respectively from the date of the grant in proportions specified in the respective
ESOP Plans. The fair value as on the date of the grant of the options/RSU/PRSU, representing Stock compensation charge,
is expensed over the vesting period.

The fair value of options/RSU granted is estimated using the Black Scholes Option Pricing Model after applying the key
assumption which are tabulated below. The expected volatility has been calculated using the daily stock returns on NSE,
based on expected life options/RSU of each vest. The expected life of share option is based on historical data and current
expectation and not necessarily indicative of exercise pattern that may occur.

Fair value of PRSU granted during the year

The fair value of PRSU granted is estimated using the Monte Carlo simulation model for performance based conditions, after
applying the key assumption which are tabulated below. The expected volatility has been calculated using the daily stock
returns on NSE, based on expected life PRSU of each vest. The expected life of share option is based on historical data and
current expectation and not necessarily indicative of exercise pattern that may occur.

41 FINANCIAL INSTRUMENTS

41.1 Capital Management

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising
the return to stakeholders through efficient allocation of capital towards expansion of business, optimisation of working
capital requirements and deployment of surplus funds into various investment options. The Company does not have
debts and meets its capital requirement through equity and internal accruals.

The Company is not subject to any externally imposed capital requirements

The management of the Company reviews the capital structure of the Company on regular basis. As part of this review,
the Board considers the cost of capital and the risks associated with the movement in the working capital.

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by
valuation techniques:

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.

Fair value of the Company's financial assets that are measured at fair value on a recurring basis:

There are certain Company's financial assets which are measured at fair value at the end of each reporting period.
Following table gives information about how the fair values of these financial assets are determined:

The fair value of the financial assets and financial liabilities are included at the amount that would be received to sell an
asset and paid to transfer a liability in an orderly transaction between the market participants. The following methods
and assumptions were used to estimate the fair values:

• Investments traded in active markets are determined by reference to quotes from the financial institutions-: Net
asset value (NAV) for investments in mutual funds declared by mutual fund house, quoted price of equity shares in
the stock exchange etc.

• The fair value of bonds is based on quoted prices and market observable inputs.

• The fair value of unquoted equity shares is determined on the basis of valuation arrived at considering income
approach (discounted cash flow) and market approach (comparable companies).

• Management uses its best judgement in estimating the fair value of its financial instruments. However, there are
inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value

estimates presented above are not necessarily indicative of all the amounts that the Company could have realised or
paid in sale transactions as of respective dates. as such, the fair value of the financial instruments subsequent to the
respective reporting dates May be different from the amounts reported at each year end.

• There are no transfers between Level 1, Level 2 and Level 3 during the year ended March 31,2026 and March 31, 2025.

41.3 Financial risk management objectives and Policies
Financial risk management objectives

The Company's Corporate Treasury function monitors and manages the financial risks relating to the operations of the
Company. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and
liquidity risk.

The Company seeks to minimise the effects of these risks by using diversification of investments, credit limit to exposures,
etc., to hedge risk exposures. The use of financial instruments is governed by the Company's policies on foreign exchange
risk and the investment. The Company does not enter into or trade financial instruments, including derivative financial
instruments, for speculative purposes.

(A) Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result
from a change in the price of a financial instrument. The Company's activities expose it primarily to the financial risks
of changes in foreign currency exchange rates and interest rates risk/ liquidity which impact returns on investments.
Future specific market movements cannot be normally predicted with reasonable accuracy.

Market risk exposures are measured using sensitivity analysis.

(I) Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to
exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters
utilising forward foreign exchange contracts.

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary
liabilities at the end of the reporting period are as follows.

The following table details the Company's sensitivity to a 5% increase and decrease in the INR against the
relevant foreign currencies. ( )(-)5% is the sensitivity rate used when reporting foreign currency risk internally
to key management personnel and represents management's assessment of the reasonably possible change
in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated
monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates. A
positive number below indicates an increase in profit or equity where the INR strengthens ( ) (-) 5% against
the relevant currency. For a 5% weakening of the I against the relevant currency, there would be a comparable
impact on the profit or equity, and the balances below would be positive or negative.

In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk
because the exposure at the end of the reporting period does not reflect the exposure during the year/ in
future years.

(II) Other price risks

The Company has deployed its surplus funds into various financial instruments including units of mutual funds,
bonds/ debentures, etc. The Company is exposed to NAV (net asset value) price risks arising from investments
in these funds. The value of these investments is impacted by movements in interest rates, liquidity and credit
quality of underlying securities.

The sensitivity analyses below have been determined based on the exposure to NAV price risks at the end of
the reporting period. If NAV prices had been 1% higher/lower:

• profit for the year ended March 31, 2026 would increase/decrease by I 123.22 crore (for the year ended
March 31, 2025 I 82.49 crore).

(III) Interest rate risks

The Company has lease liabilities which have been accounted with incremental borrowing rate and are therefore
not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash
flows will fluctuate because of a change in market interest rates.

(B) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a
means of mitigating the risk of financial loss from defaults. The Company's exposure and wherever appropriate, the
credit ratings of its counterparties are continuously monitored and spread amongst various counterparties. Credit
exposure is controlled by counterparty limits that are reviewed and approved by the management of the Company.

Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks,
investments in debt instruments/ bonds, mutual funds, trade receivables, loans and advances and derivative financial
instruments. None of the financial instruments of the Company result in material concentrations of credit risks.

The Company write off the receivables in case of certainty of irrecoverability.

Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past
dues and not impaired, there were no indication of default in repayment as at the year end.

The age analysis of trade receivables as of the balance sheet date have been considered from the due date and
disclosed in the note no. 15 above.

The Company has used a practical expedient and analysed the recoverable amount of receivables on an individual
basis by computing the expected loss allowance for financial assets based on historical credit loss experience.

45 ADDITIONAL INFORMATION

(i) No proceeding has been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(ii) The Company has not been declared as willful defaulter by any bank or financial Institution or other lender.

(iii) The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956.

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

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

(vi) The Company has not traded or invested in crypto-currency or virtual currency during the financial year.

(vii) 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 the 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:

a) 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

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

(viii) There are no funds which have been received by the Company from any persons or entities, including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:

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

b) provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

(ix) The Group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016) has one registered
Core Investment Company and one unregistered Core Investment Company as part of the Group.

(x) As required by provisions of Rule 3 of the Companies (Accounts) Rule, 2013, as amended, the Company has taken all
back up of the books and papers of the Company maintained in electronic mode in server physically located in India on
daily basis during the financial year ended March 31, 2026.

(xi) The Company has used an accounting software system for maintaining its books of account for the financial year ended
March 31,2026 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year
for all relevant transactions recorded in the software system. Additionally, the audit trail that was enabled and operated for
the year ended March 31,2025, has been preserved by the Company as per the statutory requirements for record retention.