1.19 PROVISIONS AND OTHER CONTINGENT LIABILITIES

Provisions are recognized 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. If the effect of the time value of money is material, provisions are determined by discounting
the expected future cash flows to net present value using an appropriate pre- tax discount rate that reflects current
market assessments of the time value of money and, where appropriate, the risks specific to the liability. A present
obligation that arises from past events, where it is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities
are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company. Claims against the Company, where the possibility of any outflow of resources in settlement is remote, are
not disclosed as contingent liabilities.

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

1.20 INCOME TAX

Income tax expense represents the sum of the current tax and deferred tax.

1.20.1 Current tax

The tax payable for the reporting period is computed on taxable profit for the year. The current tax is calculated using tax
rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income
tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.

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

1.20.2 Deferred tax

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

Deferred tax assets are also recognised with respect to carry forward of unused tax losses and unused tax credits to
the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused
tax credits can be utilised.

It is probable that taxable profit will be available against which a deductible temporary difference, unused tax loss or
unused tax credit can be utilised when there are sufficient taxable temporary differences which are expected to reverse
in the period of reversal of deductible temporary difference or in periods in which a tax loss can be carried forward or
back. When this is not the case, deferred tax asset is recognised to the extent it is probable that:

• the entity will have sufficient taxable profit in the same period as reversal of deductible temporary difference or
periods in which a tax loss can be carried forward or back; or

• tax planning opportunities are available that will create taxable profit in appropriate periods.

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

When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset
or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner
in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets
and liabilities.

1.20 INCOME TAX (CONTINUED)

1.20.3 Current and deferred tax for the year

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

1.21 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company’s accounting policies, which are described above, the management is 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 in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods.

1.21.1 Critical judgement in applying accounting policies

The following are the critical judgements, apart from those involving estimations, 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

1.21.1.1 Business model assessment

Classification and measurement of financial assets depends on the results of the solely payments for principal and
interest (SPPI) and the business model test. The Company determines the business model at a level that reflects how
Group of financial assets are managed together to achieve a particular business objective. This assessment includes
judgement reflecting all relevant evidence including how the performance of the assets is evaluated and their performance
is measured, the risks that affect the performance of the assets and how these are managed and how the managers of
the assets are compensated. The Company monitors financial assets measured at amortised cost that are derecognised
prior to their maturity to understand the quantum, the reason for their disposal and whether the reasons are consistent
with the objective of the business for which the asset was held. Company’s continuously monitors of whether the
business model for which the remaining financial assets are held continues to be appropriate and if it is not appropriate
whether there has been a change in business model and so a prospective change to the classification of those assets
is required.

1.21.2 Key sources of estimation uncertainty

The Company based its assumptions and estimates on parameters available when these financial statements were
prepared. Existing circumstances and assumptions about future developments, however, may change due to market
changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.

Following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of
the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year.

1.21 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
(CONTINUED)

1.21.2.1 Fair value of financial instruments

The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction in the principal (or most advantageous) market at the measurement date under current market
conditions (i.e., an exit price) regardless of whether that price is directly observable or estimated using another valuation
technique. When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
derived from active markets, they are determined using a variety of valuation techniques that include the use of valuation
models. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
estimation is required in establishing fair values. Judgements and estimates include considerations of liquidity and
model inputs related to items such as credit risk (both own and counterparty), funding value adjustments, correlation,
and volatility.

1.21.2.2 Impairment of financial assets

The measurement of impairment losses across all categories of financial assets requires judgement, in particular, the
estimation of the amount and timing of future cash flows and collateral values when determining impairment losses and
the assessment of a significant increase in credit risk. These estimates are driven by a number of factors, changes in
which can result in different levels of allowances.

It is Company’s policy to regularly review its models in the context of actual loss experience and adjust when necessary.

1.21.2.3 Effective interest rate method

The EIR methodology recognises interest income / expense using a rate of return that represents the best estimate of a
constant rate of return over the expected behavioral life of loans given / taken and recognises the effect of characteristics
of the product life cycle.

This estimation, by nature, requires an element of judgement regarding the expected behaviour and life-cycle of the
instruments, as well expected changes fee income/expense that are integral parts of the instrument.

1.21.2.4 Accounting for deferred taxes

Deferred tax assets are recongnised for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits
together with future tax planning strategies.

1.21.2.5 Assets liability management

Management has made an assessment of its ability to continue and is satisfied that it has the resources to continue in
business for the foreseeable future

Note :

1. Edelweiss Employees' Welfare Trust and Edelweiss Employees' Incentive and Welfare Trust are extension of
Company's financial statements. These trusts are holding 24,430,780 number of equity shares amounting to
' 24.43 million (Previous year ' 44.90 million). These are deducted from total outstanding equity shares.

2. Two Employee Welfare Trust(s) hold an aggregate 24,430,780 (Previous year 44,896,780) equity shares of the
Company for incentive and welfare benefits for group employees as per extant applicable SEBI regulations. Pursuant
to the exercise of rights available under Regulation 29 of SEBI (Share Based Employee Benefits) Regulations, 2014,
the Company has applied, before the expiry date of 27 October 2019, for extension of the time limit for disposing of
aforesaid equity shares. The said application is under consideration and approval for extension from SEBI is awaited
as at date.

B. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of ' 1 per share. Each holder of equity shares is
entitled to one vote per share.

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

For movement of the above components refer statement of changes in equity.

Nature and Purpose

18.1 Share application money pending allotment

Share application money pending allotment means the amount received on the application on which allotment is not yet
made.

18.2 Capital redemption reserve

The Company has recognised capital redemption reserve on buy back of equity share capital.

18.3 Securities premium

Securities premium is used to record the premium on issue of shares. It shall be utilised in accordance with the provisions
of the Companies Act, 2013

18.4 ESOP and SAR reserve

ESOP and SAR options outstanding represents the amount transferred to reserves pursuant to the "ESOP 2011" and
"SAR2019" schemes.

30. SEGMENT INFORMATION

The Company is engaged primarily in the business of merchant banking and holding company activities such as capital
allocation and managerial oversight to the businesses of subsidiaries and investment activities and accordingly there are no
separate reportable segments as per Ind AS 108 dealing with Operating Segments.

31. RETIREMENT BENEFIT PLAN

A) Defined contribution plan (Provident fund and National Pension Scheme)

I n accordance with Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, employees of the Company are
entitled to receive benefits under the provident fund, a defined contribution plan, in which, both the employee and the Company
contribute monthly at a determined rate. These contributions are made to a recognized provident fund administered by
Regional Provident Fund Commissioner. The employees contribute 12% of their basic salary and the Company contributes
an equal amount.

The Company recognised ' 7.85 million (Previous year: ' 6.98 million) for provident fund and other contributions in the
statement of profit and loss.

B) Defined benefit plan (Gratuity)

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, a defined benefit plan covering
all employees. The plan provides a lump sum payment to vested employees at retirement or termination of employment in
accordance with the rules laid down in the Payment of Gratuity Act, 1972. The gratuity benefit is partially provided through
funded plan and annual expense is charged to the statement of profit and loss on the basis of actuarial valuation.

D) Other Disclosures

Description of Asset Liability Matching (ALM) Policy

The Company has an insurance plans invested in market linked assets. The investment returns of the market-linked plan are
sensitive to the changes in interest rates and equity prices. The liabilities’ duration is not matched with the assets’ duration.

Description of funding arrangements and funding policy that affect future contributions

The liabilities of the fund are funded by assets. The Company aims to maintain a close to full-funding position at each
Balance Sheet date. Future expected contributions are disclosed based on this principle.

Maturity profile

The average expected remaining lifetime of the plan members is 3.5 years (31 March 2024: 3.5 years) as at the date of
valuation.

33. CONTINGENT LIABILITIES & COMMITMENTS

33.1 Contingent liabilities

a) Claims against the Company not acknowledged as debt:

- Income Tax matters in respect of which appeal is pending ' 5.69 million (Previous year: ' 5.69 million).

- Service Tax matters in respect of which appeal is pending ' 430.75 million (Previous year: ' 430.75 million).

- Litigation pending against Company amounts to ' 7.80 million (Previous year: ' 7.39 million).

b) Other claim not acknowledged as debt

i) The Company’s pending litigations mainly comprise of claims against the Company pertaining to proceedings
pending with Income tax, service tax and other authorities. The Company has reviewed all its pending litigations and
proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities
where applicable, in the financial statements. The Company believes that the outcome of these proceedings will
not have a materially adverse effect on the Company’s financial position and results of operations.

33.1 Contingent liabilities (Continued)

ii) The Company has received demand notices from tax authorities on account of disallowance of expenditure for
earning exempt income under Section 14A of Income Tax Act 1961 read with Rule 8D of the Income Tax Rules,
1962. The company has filed appeal/s and is defending its position. Based on the favourable outcome in Appellate
proceedings in the past and as advised by the tax advisors, company is reasonably certain about sustaining its
position in the pending cases, hence the possibility of outflow of resources embodying economic benefits on this
ground is remote.

iii) Pursuant to the Income Tax Authorities (“the ITA”) investigation, after 31 March 2024, the Company had received
assessment order cum demand notice from ITA for AY 2022-23. Based on the legal opinion obtained by the
Company, management believes that the demand is not sustainable. The Company has filed an appeal against the
said assessment order. Thus, no adjustment is required in the Standalone Financial Statements of the Company.

33.2 Capital commitment

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) ' Nil
(Previous year: ' Nil).

34. COST SHARING

The group companies provide business and support services to each other basis of the signed agreed terms. The services
provided are with the intent to create synergies at group level for e.g. sharing of empty spaces with the group companies,
having common HR and admin teams, using one’s available resource for the benefit of the group.

In consideration of the business and management oversight by Edelweiss group, the beneficiaries shall share and pay
towards the costs, as agreed. It is expressly agreed between the parties that sharing of these cost shall be on the total
cost over the financial year (April to March) adequate to compensate the function performed , assets employed and risks
assumed by group companies and will be determined by the beneficiaries and edelweiss group companies. The amount
payable by the beneficiaries is reviewed intermittently and any amendment to the same is mutually agreed upon in writing
by the parties. For the purpose of total cost means all operating expense including but not limited to, normal recurring cost
such as office rent, communication charges, salaries, employee benefits, cost of approved third-party vendor, deprecation
on assets used and amortization.

Notes:

Information relating to remuneration paid to key managerial person mentioned above excludes provision made for gratuity and
provision made for bonus which are provided for group of employees on an overall basis.

36. CAPITAL MANAGEMENT

The Company manages the capital structure by a balanced mix of debt and equity. The Company’s capital management
strategy is to effectively determine, raise and deploy capital so as to create value for its shareholders. The Company
maintains sound capitalisation both from an economic and regulatory perspective. The Company continuously monitors and
adjusts overall capital demand and supply in an effort to achieve an appropriate balance of the economic and regulatory
considerations at all times and from all perspectives. These perspectives include specific capital requirements from rating
agencies.

Capital structure includes infusion in the form of equity and structured debt from strategic business partners in certain of
Company’s subsidiaries to fund expansion and assist in achieving expected growth in the competitive market.

No changes were made in the objectives, policies or processes during the financial years ended 31 March 2025 and 31
March 2024.

This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market
conditions and interest rates environment. Company monitors capital using debt-equity ratio, which is total debt divided by
total equity.

All the above loans have maturity of 0-3 years as per contracted terms.

‘Maximum amount outstanding during the year represents principle outstanding.

**Loan outstanding includes principal and interest accrued.

38. SHARE BASED PAYMENTS: EMPLOYEE STOCK OPTION PLANS AND STOCK APPRECIATION RIGHTS
PLANS

Edelweiss Financial Services Limited ("EFSL" hereafter), has recognised share based payment expenses for the years ended
31 March 2025 and 31 March 2024 based on fair value as on the grant date calculated as per option pricing model.
The grants represent equity-settled options under the Employee Stock Option Plans and Stock Appreciation Rights Plans
(hereafter referred to as, "ESOP 2011" and "SAR 2019" or "ESOPs" "SARs" ).

The Edelweiss Group has granted ESOPs under the two plans viz., ESOP 2011 & SAR 2019 to its employees on an equity-
settled basis as tabulated below. The ESOPs/SARs provide a right to its holders (i.e., Edelweiss group employees) to
purchase one EFSL share for each option at a pre-determined strike price on the expiry of the vesting period. The ESOP/
SAR hence represents an European call option that provides a right but not an obligation to the employees of the Edelweiss
group to exercise the option by paying the strike price at any time on completion of the vesting period, subject to an outer
boundary on the exercise period.

39. RISK MANAGEMENT

The Company has operations in India. Whilst risk is inherent in the Company’s activities, it is managed through an integrated
risk management framework, including ongoing identification, measurement and monitoring, subject to risk limits and other
controls. This process of risk management is critical to the Company. The Company is exposed to credit risk, liquidity risk
and market risk. It is also subject to various operating and business risks.

Risk management strategy

The strategy at an execution level is supported by -

1. Three tiered risk management structure to manage and oversee risks

2. Board and Executive Level Committees to review and approve risk exposures

3. Risk Management framework to ensure each risk the Company is exposed to is given due importance and managed
through a well-defined framework and guidelines

4. Well-defined Standard Operating Procedures and Product approval framework to ensure risks are mitigated at
operational level

5. Adequate segregation of duties to ensure multi-layered checks and balances

6. Exception reporting framework to ensure process and policy deviations are adequately addressed

Risk management structure

The Board of Directors are responsible for the overall risk management approach and for approving the risk management
strategies and principles.

The Board has appointed the Risk Committee which is responsible for monitoring the overall risk process within the Company
and reports to the Audit Committee

The Risk Committee has the overall responsibility for the development of the risk strategy and implementing principles,
frameworks, policies and limits.

The Company is responsible for implementing and maintaining risk related procedures to ensure an independent control
process is maintained. The Company works closely with and reports to the Risk Committee, to ensure that procedures are
compliant with the overall framework.

Credit risk

Credit risk is the risk of financial loss the Company may face due to current/potential inability or unwillingness of a customer
or counterparty to meet financial /contractual obligations. Credit risk also covers the possibility of losses associated with
diminution in the credit quality of borrowers or counterparties. The Company’s lending activities is restricted to only its
subsidiaries within the Edelweiss Group, the Company has adopted a policy of dealing with creditworthy counterparties and
obtains sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

Credit risk is measured as the amount that could be lost if a customer or counterparty fails to make repayments. Credit risk
is monitored using various internal risk management measures and within limits approved by the board within a framework
of delegated authorities. It is managed through a robust risk control framework, which outlines clear and consistent policies,
principles and guidance for risk managers. Presently Company has credit exposure only to it’s subsidiaries where adequate
control and monitoring is ensured.

Liquidity risk

Liquidity risk emanates from the possible mismatches due to differences in maturity and repayment profile of assets and
liabilities. To avoid such a scenario, the Company has maintained cash reserves in the form of Fixed Deposits, Cash, Loans
which are callable any time at the Company’s discretion, etc. These assets carry minimal credit risk and can be liquidated.
These would be to take care of immediate obligations while continuing to honour commitments as a going concern.

Analysis of financial assets and liabilities by remaining contractual maturities

The maturity profile of the undiscounted cash flows of the Company’s financial assets and liabilities as at 31 March 2025 are
disclosed in note no 42.

39. RISK MANAGEMENT (CONTINUED)

Market Risk

Market risk is the risk which can affect the Company’s performance due to adverse movements in market prices of instrument
due to interest rates, equity prices, foreign exchange rates. The objective of the Company’s market risk management is to
manage and control market risk exposures within acceptable parameters.

Foreign exchange risk - Foreign exchange risk is the risk that the value of a financial instrument will fluctuate due to
changes in foreign exchange rates. The Company’s foreign exposure is limited to investments to Group entities outside
India. Positions are regularly monitored by the Company and rebalanced/ rolled over based on the inflow and outflow of
funds. The Company don’t have any foreign currency exposure as at March 31,2025.

40. FAIR VALUE MEASUREMENT

40.1 Valuation governance framework

Where fair values are determined by reference to externally quoted prices or observable pricing inputs to models, independent
price determination or validation is used. For inactive markets, the Company sources alternative market information, with
greater weight given to information that is considered to be more relevant and reliable.

40.2 Fair value hierarchy

Fair values of financial assets and liabilities are determined according to the following hierarchy.

Level 1 - valuation technique using quoted market price: financial instruments with quoted prices for identical instruments in
active markets that company can access at the measurement date.

Level 2 - valuation technique using observable inputs: Those where the inputs that are used for valuation and are significant,
are derived from directly or indirectly observable market data available over the entire period of the instrument’s life.

Level 3 - valuation technique with significant unobservable inputs: Those that include one or more unobservable input that
is significant to the measurement as whole.

40.3 Financial instruments measured at Amortised Cost

The following table sets out the fair values and fair value hierarchy of financial instruments measured at amortised cost. The
information given with respect to financial instruments for which the fair value differs from the carrying amount. Carrying
amounts of cash and cash equivalents, trade receivables, trade and other payables as on 31 March 2025 approximate the
fair value because of their short-term nature. Difference between carrying amounts and fair values of bank deposits, other
financials assets and other financial liabilities is not significant in each of the years presented.

40.6 Fair valuation principles

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the
principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price),
regardless of whether that price is directly observable or estimated using a valuation technique. The Company 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.

The Company’s fair value methodology and the governance over its models includes a number of controls and other
procedures to ensure appropriate safeguards are in place to ensure its quality and adequacy. Where fair values are
determined by reference to externally quoted prices or observable pricing inputs to models, independent price determination
or validation is used. For inactive markets, Company sources alternative market information, with greater weight given to
formation that is considered to be more relevant and reliable.

40.7 Fair valuation techniques
Equity instruments

The equity instruments which are actively traded on recognised stock exchanges are valued at readily available active prices
on a regular basis. Such instruments are classified as Level 1. Equity instruments in non-listed entities are initially measured
at transaction price and re-measured at each reporting date at valuation provided by external valuer at instrument level. Such
unlisted equity securities are classified at Level 2.

Units of Alternative Investment Funds (AIFs) and Mutual Fund

Units held in AIFs are measured based on fund net asset value (NAV), taking into account redemption and/or other restrictions.
Such instruments are classified at Level 2.

40.8 Transfer between Level 1 and level 2

During the year, there were no transfers between level 1 and level 2.

56. The Board of Directors at their meeting held on 14 May 2025, have recommended a final dividend of ' 1.50 per equity share
(on face value of ' 1 per equity share), subject to the approval of the members at the ensuing Annual General Meeting.

57. The Company has declared and paid the final dividend of ' 1.50 per equity share (on face value of ' 1 per equity share)
for the financial year ended 31 March 2024, based on the approval of the members of the Company at the Annual General
Meeting held on 27 September 2024.

58. Pursuant to the Shareholders’ Agreement (SHA) dated 05 March 2019, between EFSL, CDPQ Private Equity Asia PTE. Limited
(CDPQ) and ECL Finance Limited (ECLF), EFSL undertook an obligation against any losses on certain select accounts in the
real estate and structured finance business. Subsequently, ECap Equities Limited (ECap), a subsidiary of EFSL, purchased
the CCD investments in ECLF from CDPQ during the year. As a result, EFSL, ECap and ECLF have mutually agreed that loss
incurred in the select accounts referred in SHA are deemed to be crystalized. Accordingly, during the year, the Company has
reimburse to the ECLF for loss amounting to ' 1,812.20 millions against losses incurred by ECLF in previous years.

59. During the previous years, an investor subscribed to Security Receipts (SRs) issued by ARC trusts as a senior class investor.
These SRs relate to certain loans and assets sold by ECL Finance Limited, a subsidiary of the Company, to the ARC trusts.
The Company and another subsidiary, Edelweiss Securities and Investments Private Limited (ESIPL), have given a put option
to the investor, guaranteeing the repayment of the total agreed payout comprising the invested amount and a minimum
assured return after deducting any recoveries from the underlying assets during the period. Based on management’s
assessment and current cash flow projections from these assets, the likelihood of any payout under the put option is
considered remote.

60. Nuvama Clearing Services Limited (NCSL), a former associate, received a show cause notice and order from NSE Clearing
Ltd (NCL) in the matter of Anugrah Stock and Broking Pt. Ltd and Vries Securities Pt. Limited. Securities Appellate Tribunal
(SAT) has upheld NCL order on 15 December 2023. NCSL has appealed against the SAT order at the Supreme Court
of India, asserting compliance with all relevant laws and regulations. The appeal is in the process of admission with the
Supreme Court of India. The Company has obtained legal opinion on the matter and the Company believes that the NCSL
will receive a favourable order in this regard. Accordingly, there is no adjustment required in the Standalone Financial
Statements of the Company.

61. The Indian Parliament has approved the Code on Social Security, 2020 which subsumes the Provident Fund and the Gratuity
Act and rules there under. The Ministry of Labour and Employment has also released draft rules thereunder on 13 November
2020 and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company
will evaluate the rules, assess the impact if any, and account for the same once the rules are notified and become effective.

62. The Company has complied with the Rule 3 of Companies ( Accounts) Rules, 2014 amended on 5 August 2022 relating to
maintenance of electronic books of account and other relevant books and papers. The Company's books of accounts and
relevant books and papers are accessible in India at all times and backup of accounts and other relevant books and papers
are maintained in electronic mode within India and kept in servers physically located in India on daily basis.

63. DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The Company has not traded or invested in Crypto currency or Virtual Currency during the current financial year and any of
the previous financial years.

64. Other income includes gain amounting to ' 363.55 million on buy back of shares held in subsidiary (previous year ' 11,527.78
million on sale of investments in its subsidiaries).

65. The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for
material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required
under any law/ accounting standards for material foreseeable losses on such long term contracts (including derivative
contracts) has been made in the books of accounts.

Notes:

1) Debt-equity Ratio = Total debt (Debt securities Borrowings other than debt securities) / Net worth

2) Interest Service Coverage Ratio = Profit before interest and Tax / interest expense

3) Total debt to Total assets = (Debt securities Borrowings other than debt securities) / Total assets

4) Net profit margin = Net Profit for the year / Total income

5) Current ratio, Long term debt to working capital, Bad Debts to account receivables ratio, Current liability ratio, Debtors
turnover, Inventory turnover and Operating margin (%) are not applicable owing to the business model of the company

67. The Company is in compliance with number of layers of companies, as prescribed under clause (87) of section 2 of the Act
read with the Companies (Restriction on number of Layers) Rules, 2017.

68. Previous year’s figures have been regrouped / reclassified to conform to current year presentation.

69. All amounts disclosed in the financial statements and notes have been rounded off to the nearest million as per the
requirements of Schedule III, unless otherwise stated.

The accompanying notes are an integral part of the Standalone Financial Statements.

As per our report of even date attached

For Nangia & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Edelweiss Financial Services Limited

ICAI Firm's Registration Number: 002391C/N500069

Jaspreet Singh Bedi Rashesh Shah Vidya Shah

Partner Chairman & Managing Director Non-Executive Director

Membership No: 601788 DIN: 00008322 DIN: 00274831

Ananya Suneja Tarun Khurana

Chief Financial Officer Company Secretary

Membership No: 12344