4.11 Provisions and Contingent liabilities

Provisions are recognised only when the Company has
a present obligation (legal or constructive) as a result of
past events, and 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. When the effect of the time value
of money is material, the Company determines the level of
provision by discounting the expected cash flows at a pre¬
tax rate reflecting the current rates specific to the liability.
The expense relating to any provision is presented in the
statement of profit and loss net of any reimbursement.

Provisions are reviewed at each balance sheet date and
adjusted to reflect the current best estimate. If it is no
longer probable that an outflow of resources would be
required to settle the obligation, the provision is reversed.

Contingent liability is disclosed in case of present
obligation arising from past events, when it is not probable
that an outflow of resources will be required to settle the
obligations and the present obligation arising from past
events, when no reliable estimate is possible.

4.12 Share Based Payments

Stock options are granted to the employees under the
stock option scheme. The costs of stock options granted
to the employees (equity-settled awards) of the Company
are measured at the fair value of the equity instruments
granted. For each stock option, the measurement of fair

value is performed on the grant date. The grant date is the
date on which the Company and the employees agree to
the stock option scheme. The fair value so determined is
revised only if the stock option scheme is modified in a
manner that is beneficial to the employees.

This 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 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. On cancellation or lapse of
options granted to employees, the compensation charged
earlier will be moved from share-based payment reserve
with corresponding credit in retained earnings.

The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.

If the options vests in instalments (i.e. the options vest
pro rata over the service period), then each instalment is
treated as a separate share option grant because each
instalment has a different vesting period.

4.13 Dividend on ordinary shares

The Company recognises a liability to make cash
distributions to equity holders when the distribution
is authorised and the distribution is no longer at the
discretion of the Company. A corresponding amount is then
recognised directly in equity. As per the Companies Act,
2013 in India, a distribution of final dividend is authorised
when it is approved by the shareholders. In case of interim
dividend, the distribution is authorised by the board and is
recognised at the time of payment as they are revocable till
actually paid.

4.14 Revenue recognition - other than financial
assets

Revenue (other than for those items to which Ind AS 109
Financial Instruments are applicable) is recognised at fair
value of the consideration received or receivable when the
company satisfies the performance obligation under the
contract with the customer.

4.15 Dividend Income

Dividend income (including from FVOCI investments)
is recognised when the Company's right to receive the
payment is established and it is probable that the economic

benefits associated with the dividend will flow to the entity
and the amount of the dividend can be measured reliably.

4.16 Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary
benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees
render the related service are recognized in respect of
employees' services up to the end of the reporting period
and are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are presented
as employee benefit obligations in the balance sheet.

(ii) Post-employment obligations

The company operates the following post-employment
schemes:

(a) defined contribution plans such as provident fund,
superannuation and Employee's state insurance scheme

(b) defined benefit plans such as gratuity

a) Defined Contribution Scheme

Retirement benefit in the form of provident fund is a defined
contribution scheme. The Company has no obligation,
other than the contribution payable to the provident fund.
The Company recognises contribution payable to the
provident fund scheme as an expense, when an employee
renders the related service.

Employees' State Insurance: The Company contributes to
Employees State Insurance Scheme and recognizes such
contribution as an expense in the Statement of Profit
and Loss in the period when services are rendered by the
employees.

Superannuation: The Company contributes a sum
equivalent to 15% of eligible employees' salary to a
Superannuation Fund administered by trustees and
managed by Life Insurance Corporation of India ("LIC").
The Company has no liability for future Superannuation
Fund benefits other than its contribution and recognizes
such contributions as an expense in the Statement of Profit
and Loss in the period when services are rendered by the
employees.

b) Defined Benefit Scheme

Gratuity: The Company makes contribution to a Gratuity
Fund administered by trustees and managed by LIC. The
Company accounts its liability for future gratuity benefits
based on actuarial valuation, as at the Balance Sheet date,
determined every year by an independent actuary using
the Projected Unit Credit method.

Re-measurements, comprising of actuarial gains and
losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability

and the return on plan assets, are recognised immediately
in the balance sheet with a corresponding debit or credit to
retained earnings through OCI in the period in which they
occur. Remeasurements are not reclassified to profit or loss
in subsequent periods.

Past service costs are recognised in profit or loss on the
earlier of:

? The date of the plan amendment or curtailment, and

? The date that the Company recognises related
restructuring costs

Net interest is calculated by applying the discount rate
to the net defined benefit liability or asset. The Company
recognises the following changes in the net defined benefit
obligation as an expense in the statement of profit and loss:

? Service costs comprising current service costs, past-
service costs, gains and losses on curtailments and non¬
routine settlements; and

? Net interest expense or income

c) Compensated Absences: The Company treats its liability
for compensated absences based on actuarial valuation as
at the Balance Sheet date, determined by an independent
actuary using the Projected Unit Credit method.

Actuarial gains and losses are recognised under OCI in the
statement of Profit and Loss in the year in which they occur
and not deferred.

4.17 Earnings Per Share

Basic Earnings Per Share is calculated by dividing the
net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year.

Earnings considered for Earnings per share is the net profit
for the year after deducting preference dividend, if any, and
attributable tax thereto for the year.

The weighted average number of equity shares outstanding
during the period and for all periods presented is adjusted
for events, such as bonus shares, other than the conversion
of potential equity shares, that have changed the number
of equity shares outstanding, without a corresponding
change in resources. For the purpose of calculating diluted
earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted
average number of shares outstanding during the period
is adjusted for the effects of all dilutive potential equity
shares.

4.18 Cash Flow Statement

Cash flows are reported using the indirect method, where
by profit / (loss) before 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.

For the purpose of the Statement of Cash Flows, cash and
cash equivalents as defined above, net of outstanding bank
overdrafts as they are considered an integral part of cash
management of the Company.

4.19 Segment Information

An operating segment is a component of the Company that
engages in the business activities from which it may earn
revenues and incur expenses, whose operating results are
regularly reviewed by Company's Chief operating decision
maker.

Revenue and expenses have been identified to segments
on the basis of their relationship to the operating activities
of the Segment. Revenue and expenses, which relate to the
enterprise as a whole and are not allocable to Segments
on a reasonable basis have been included under "Un¬
allocable".

Assets and liabilities have been identified to segments on
the basis of their relationship to the operating activities
of the Segment. Assets and liabilities, which relate to the
enterprise as a whole and are not allocable to Segments
on a reasonable basis have been included under "Un¬
allocable".

4A. Significant accounting judgements, estimates
and assumptions

The preparation of the Company's financial statements
requires management to make judgements, estimates and
assumptions that affect the reported amount of revenues,
expenses, assets and liabilities, and the accompanying
disclosures, as well as 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
period

In the process of applying the Company's accounting
policies, management has made the following judgements/
estimates, which have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities
within the next financial year.

i. Business Model Assessment

The Company from time to time enters into direct bilateral
assignment deals, which qualify for de-recognition under
Ind AS 109. Accordingly, the assessment of the Company's
business model for managing its financial assets becomes
a critical judgment.

Further, the Company also made an investment in the
Government securities, and similar instruments in order
to comply the liquidity ratio compliance as required by RBI
pursuant to its master directions. The Company intends to
hold these assets till maturity expects that any sale if any
necessitated by requirements are likely to be infrequent

and immaterial. Accordingly, the related assessment
becomes a critical judgement to determine the business
model for such financial assets under Ind AS.

ii. 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.

iii. Impairment of financial asset

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.

The Company's ECL calculations are outputs of complex
models with a number of underlying assumptions regarding
the choice of variable inputs and their interdependencies.
Elements of the ECL models that are considered accounting
estimates include:

• The Company's criteria for assessing if there has been a
significant increase in credit risk and so allowances for
financial assets should be measured on a LTECL basis
and the qualitative assessment

• The segmentation of financial assets when their ECL is
assessed on a collective basis

• Development of ECL models, including the various
formulas and the choice of inputs

• Determination of temporary adjustments as qualitative
adjustment or overlays based on broad range of
forward-looking information as economic inputs

It has been the company policy to regularly review its
models in the context of actual loss experience and adjust
when necessary.

iv. Leases

a. Determining the lease term of contracts with
renewal and termination options - Company as
lessee

The Company determines the lease term as the non¬
cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably
certain to be exercised, or any periods covered by an
option to terminate the lease, if it is reasonably certain
not to be exercised. The Company applies judgement in
evaluating whether it is reasonably certain whether or not
to exercise the option to renew or terminate the lease. That
is, it considers all relevant factors that create an economic
incentive for it to exercise either the renewal or termination.

b. Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is
the rate of interest that the Company would have to pay to
for its borrowings.

v. Provisions and other contingent liabilities

When the Company can reliably measure the outflow
of economic benefits in relation to a specific case and
considers such outflows to be probable, the Company
records a provision against the case. Where the probability
of outflow is considered to be remote, or probable, but a
reliable estimate cannot be made, a contingent liability is
disclosed.

Given the subjectivity and uncertainty of determining the
probability and amount of losses, the Company takes into
account a number of factors including legal advice, the
stage of the matter and historical evidence from similar
incidents. Significant judgement is required to conclude on
these estimates.

4B. New amendments issued but not effective

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. As at the date of authorisation of these financial
statements, the Company has not applied the following
new amendment to Ind AS that has been issued but is not
yet effective:

Amendment to Ind AS 1 Presentation of Financial
Statements

Where a covenant breach exists on or before the reporting
date and, as a result, the liability becomes payable on
demand on that date, the liability must be classified
as current, even if the lender subsequently (i.e. after
the reporting date but before approval of the financial
statements) agrees not to demand payment.

The Company does not expect that the adoption of this
amendment to have any material impact on the financial
statements of the Company in future periods. However,
in case of breach of covenants in future, the liability for
long-term borrowings will be classified as current and will
become repayable on demand.

Note : 17 DEBT SECURITIES (at amortised cost) (Contd.)

All debt securities have been contracted in India

17.1 Security

(i) Redeemable Non-Convertible Debentures - Medium-term is secured by way of specific charge on assets under hypothecation
relating to Vehicle Finance, Loan against Property, and other loans.

ii) TERMS OF THE COMPULSORILY CONVERTIBLE DEBENTURES (CCD)

Each CCD has a face vaule of ' 100,000 and shall constitute an unsecured and unsubordinated (as between other unsecured creditors)
obligation of the Company.

Maturity Date

Unless converted earlier in accordance with the terms hereof, the maturity date for compulsory conversion of each CCD shall be
September 30, 2026.

Conversion

Early Conversion Option

Each CCD holder is entitled to convert their CCD into Equity Shares on or after September 30, 2025 ("Entitlement Date"). Each CCD of face
value of ' 100,000 shall be converted into such number of Equity Shares fully paid of face value of ' 2 as per the Conversion Price (defined
below). CCD holders can apply for conversion of CCDs within the first 7 calendar days after the Entitlement Date or after the end of every
calendar quarter after the Entitlement Date, except the last quarter before maturity, when it will compulsorily convert on the last maturity
date i.e., September 30, 2026, provided if September 30, 2026 falls on a trading holiday, then the trading day immediately preceding such
date shall be considered by the Company for the purpose of conversion Maturity Date.

Compulsory Conversion

If any or all of the CCDs have not been converted till Maturity Date, then all of the CCDs held on the Maturity Date shall be compulsorily
and automatically converted into Equity Shares as per the Conversion Price (defined below).

The fractional amount after conversion of the CCDs tendered for conversion by the CCD holder shall be paid in cash to the CCD holders
within seven working days from the date of conversion of CCDs.

Conversion Price

Subject to Regulation 176 of the SEBI Regulations and applicable law, each CCD shall be converted into such number of Equity Shares
based on the conversion price arrived as per the below formula. Conversion price shall be higher of the following:

If Conversion Volume Weighted Average Price (VWAP)is higher than ' 1,650.00 per Equity Share then the aggregate face value of the CCDs
proposed to be converted into Equity Shares at a discount of 16.50% to the Conversion VWAP, if lower than or equal to ' 1,650.00 per Equity
Share, then the aggregate face value of the CCDs shall be converted into Equity Shares at a discount of 15.00% to the Conversion VWAP.
For the purpose of the above, Conversion Volume Weighted Average Price (VWAP) shall be calculated as seven trading days volume
weighted average price of Equity Shares of the Company traded on the NSE, preceding the first date after the end of quarter, prior to
Conversion Notice or Maturity Date for compulsory conversion of the balance CCDs held; whichever is earlier; OR the Floor Price of Equity
Shares being ' 1,200.51 subject to discount of upto 5%, as may be decided by the Board of Directors or duly authorized committee of the
Board.

The Conversion Price shall be decided by the Company in accordance with the aforementioned formula.

Interest on CCDs

Each CCD will bear interest at the rate of 7.50% per annum calculated on the face value of the CCD commencing from the date of Allotment
and until the Conversion Date. The Interest shall be paid by the Company to the CCD holders in half yearly instalments.

In the event the CCD holder has exercised its right to convert the CCD, then any Interest accrued but unpaid shall be paid within seven
working days from the Conversion Date.

An additional interest at the rate of 2.00% per annum over and above the rate of interest of 7.50% per annum shall be applicable in case of
delay in payment of interest by the Company for the delayed period.

iii) The Company has not defaulted in the repayment of dues to its lenders.

18.1 Security

(i) Secured term loans from banks and financial institution are secured by way of specific /pari passu charge on assets under
hypothecation relating to Vehicle Finance and Loans against Immovable Property and Home Loans, other loans.

(ii) Securitisation rupee loan represents the net outstanding value (Net of Investment in Pass-through Certificates) of the proceeds
received by the Company from securitisation trust in respect of loan assets transferred by the Company pursuant to Deed
of Assignment. The Company has provided Credit enhancement to the trust by way of cash collateral and Bank guarantee.
Also,refer Note 6.

(iii) Loan repayable on demand is in the nature of Cash Credit and working capital demand loans from banks and is secured by way
of floating charge on assets under hypothecation and other assets.

(iv) Details of repayment such as date of repayment, interest rate and amount to be paid have been disclosed in note 18.2 based on
the Contractual terms.

(v) The Company has not defaulted in the repayment of dues to its lenders.

(vi) The company has utilised the borrowings for the purpose for which it was obtained.

(vii) The quarterly statements or returns of current assets filed by the company with banks are in agreement with books of accounts.

i) Terms/rights attached to Equity shares

The Company has only one class of equity shares having a par value of ? 2 per share. All these shares have the same rights and
preferences with respect to payment of dividend, repayment of capital and voting. The dividend proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General Meeting except for interim dividend.

Repayment of capital will be in proportion to the number of equity shares held.

(ii) Terms/rights attached to Compulsory convertible Debentures

The Company had on October 05, 2023 allotted 2,00,000, 7.5% Compulsorily Convertible Debentures (CCDs) of face value ? 1,00,000/-
each to eligible qualified institutional buyers at an Issue Price of ? 1,00,000/- per CCD. Further, pursuant to the placement document,
the CCDs have an early conversion option on or after September 30, 2025. Up to March 31,2026, 1,37,000 CCDs were converted into
98,74,127 equity shares.

d) Shares held by Promoters/Promoter Group

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders
regarding beneficial interest, the below shareholding represents both legal and beneficial ownership of shares.

a) Statutory reserve represents the reserve created as per Section 45IC of the RBI Act, 1934, pursuant to which a Non-Banking Financial
Company shall create a reserve fund and transfer therein a sum not less than twenty per cent of its net profit annually as disclosed in
the Statement of Profit and Loss account, before any dividend is declared.

b) Capital reserve represents the reserve created on account of amalgamation of Chola Factoring Limited in the year 2013-14.

c) Capital redemption reserve represents the amount equal to the nominal value of shares that were redeemed during the prior years.
The reserve can be utilized only for limited purposes such as issuance of bonus shares in accordance with the provisions of the
Companies Act, 2013

d) Securities premium reserve is used to record the premium on issue of shares. The premium received during the year represents the
premium received towards allotment of equity shares. The reserve can be utilized only for limited purposes such as issuance of bonus
shares, buy back of its own shares and securities in accordance with the provisions of the Companies Act, 2013.

e) The general reserve is a free reserve, retained from Company's profits and can be utilized upon fulfilling certain conditions in
accordance with specific requirement of Companies Act, 2013.

f) Under IND AS 102, fair value of the options granted is required to be accounted as expense over the life of the vesting period as
employee compensation costs, reflecting the period of receipt of service. Share based payment reserve represents the amount of
reserve created for recognition of employee compensation cost at grant date with corresponding charge recoginised in Statement
of Profit and Loss.

g) The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial
position of the Company and also considering the requirements of the Companies Act, 2013 and relevant RBI Regulations. Thus, the
amounts reported in retained earnings are not distributable in entirety.

h) Cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of hedging
instruments entered into for cash flow hedges, which shall be reclassified to profit or loss only when the hedged transaction affects
the profit or loss, or included as a basis adjustment to the non-financial hedged item, consistent with the Company accounting
policies.

i) FVOCI Reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value
through Other Comprehensive Income. There has been no draw down from reserve during the year ended March 31,2026 and year
ended March 31, 2025.

j) Share application money pending allotment represents amount received towards equity shares of the Company pursuant to ESOP
scheme and have been subsequently allotted.

Proposed dividend

The Board of Directors of the Company have recommended a final dividend of 35% being ? 0.70 per share on the equity shares of the

Company, for the year ended March 31,2026 (? 0.70 per share - March 31,2025) which is subject to approval of shareholders. Consequently

the proposed dividend has not been recognised in the books in accordance with IND AS 10.

32.1 Transferred financial assets that are not derecognised in their entirety

The following tables provide a summary of financial assets that have been transferred in such a way that part or all of the transferred
financial assets do not qualify for derecognition, together with the associated liabilities:

A) Securitisation

The Company has Securitised certain loans (measured at amortised cost) without transferring substantially all risks and rewards. Hence
these assets have not been de-recognised in its entirety.

A) Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions and where there is
no legal or constructive obligation to pay further contributions. During the year, the Company recognised ? 167.12 crores (Previous year -
? 134.31 crores) to Provident Fund under Defined Contribution Plan, ? 5.51 crores (Previous year - ? 7.84 crores) for Contributions to
Superannuation Fund and ? 9.78 crores (Previous year - ? 6.42 crores) for Contributions to Employee State Insurance Scheme in the Statement
of Profit and Loss.

B) Defined Benefit Plan
1. Gratuity

The Company's defined benefit gratuity plan requires contributions to be made to a separately administered fund. The gratuity plan is funded
with Life Insurance Corporation of India (LIC). The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee
who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member's length of
service and salary at retirement age. The following tables summarise the components of net benefit expense recognised in the statement of
profit or loss, the funded status and amounts recognised in the balance sheet for the respective plans:

Notes:

5. The above sensitivity analysis are based on change in an assumption which is holding all the other assumptions constant. In prac¬
tice, this is unlikely to occur, and changes in some assumptions may be correlated. When calculating the sensitivity of defined ben¬
efit obligation to significant actuarial assumptions the same method of present value of defined benefit obligations calculated with
Projected unit cost method at the end of the reporting period has been applied while calculating defined benefit liability recognised
in the balance sheet.

6. The method and type of assumptions used in preparing the sensitivity analysis does not change as compared to the prior period.
Description of Risk exposures

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over time.
Thus, the Company is exposed to various risks in providing the above gratuity benefit which are as follows:

(a) Interest Rate risk: The plan exposes the company to the risk of fall in interest rates . A fall in interest rates will result in an increase
in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial
statements).

(b) Liquidity Risk: This is the risk that the company is not able to meet the short-term gratuity pay-outs. This may arise due to non¬
availability of enough cash/cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.

(c) Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan
participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to
determine the present value of obligation will have a bearing on the plan's liability.

(d) Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is
exposed to the risk of actual experience turning out to be worse compared to the assumption.

(e) Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act,1972 (as amended from
time to time). There is a risk of change in regulations requiring higher gratuity pay-outs.

(f) Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of assets, exposing the
Company to market risk for volatilities/fall in interest rate.

(g) Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on a particular investment.

Notes:

1. The Company has not funded its Compensated Absences liability and the same continues to remain as unfunded as at March 31,2026.

2. The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors.

3. Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated term
of the obligation.

Note : 37 SEGMENT INFORMATION

The Company is primarily engaged in the business of financing. All the activities of the Company revolve around the main business.
Further, the Company does not have any separate geographic segments other than India

During the year ended March 31, 2026, for management purposes, the Company has been organised into the following operating
segments based on products and services.

Vehicle Finance - Loan to customers against purchase of new/used vehicles, tractors, construction equipment and loan to automobile dealers.
Loan against Property - Loan to customer against immovable property

Home Loans - Loan given for acquisition/construction of residential property and loan against residential property
Other Loans - Other loans consist of consumer and small enterprise loans, secured business and personal loans, SME loans and Gold loans.
The Managing Director monitors the operating results of its business units separately for making decisions about resource allocation
and performance assessment. Segment performance is evaluated based on operating profits or losses and is measured consistently with
operating profits or losses in the financial statements. However, income taxes are managed on an entity as a whole basis and are not
allocated to operating segments.

Note : 40 ESOP DISCLOSURE
ESOP 2007

The Board at its meeting held on June 22, 2007, approved an issue of Stock Options up to a maximum of 5% of the issued Equity Capital of
the Company (before Rights Issue) aggregating to 1,904,162 Equity Shares (prior to share split) in a manner provided in the SEBI (Employee
Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. There are no options outstanding under this scheme.

ESOP 2016

The Board at its meeting held on October 27, 2016, approved to create, and grant from time to time, in one or more tranches, not exceeding
1,56,25,510 Employee Stock Options to or for the benefit of such person(s) who are in permanent employment of the company including
some of subsidiaries, managing director and whole time director, (other than promoter/promoter group of the company, independent
directors and directors holding directly or indirectly more than 10% of the outstanding equity shares of the company), as may be decided
by the board, exercisable into not more than 1,56,25,510 equity shares of face value of ? 2/- each fully paid-up, on such terms and in such
manner as the board may decide in accordance with the provisions of the applicable laws and the provisions of ESOP 2016.

In this regard, the Company has recognised an expense for the employees services received amounting to ? 80.27 crores during the year
ended March 31,2026 (? 70.53 crores during the year ended March 31, 2025), shown under Employee Benefit Expenses (Refer Note 29).

The movement in Stock Options during the current year are given below:

The Company shares certain costs / service charges with other companies. These costs have been allocated on reasonable basis between
the Companies.

Note : 42.1 CAPITAL MANAGEMENT

The Company maintains an actively managed capital base to cover risks inherent in the business, meeting the capital adequacy
requirements of Reserve Bank of India (RBI), maintain strong credit rating and healthy capital ratios in order to support business and
maximise shareholder value. The adequacy of the Company's capital is monitored by the Board using, among other measures, the
regulations issued by RBI.

The Company manages its capital structure and makes adjustments to it according to changes in economic conditions and the risk
characteristics of its activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend
payment to shareholders, return capital to shareholders or issue capital securities.

The Company has complied in full with the capital requirements prescribed by RBI over the reported period. The Capital adequacy ratio
as of March 31,2026 is 19.21% (March 31,2025- 19.75%) as against the regulatory requirement of 15%.

Note : 42.2 FINANCIAL RISK MANAGEMENT

The key financial risks faced by the company are credit and market risks comprising liquidity risk, interest rate risk and foreign currency risks.

42.2.1 Credit Risk

Credit risk arises when a borrower is unable to meet his financial obligations to the lender. This could be either because of wrong assessment of
the borrower's payment capabilities or due to uncertainties in his future earning potential. The effective management of credit risk requires the
establishment of appropriate credit risk policies and processes.

42.2.1.1 Assessment Methodology

The company has comprehensive and well-defined credit policies across various businesses, products and segments, which encompass credit
approval process for all businesses along with guidelines for mitigating the risks associated with them. The appraisal process includes detailed risk
assessment of the borrowers, physical verifications and field visits. The company has a robust post sanction monitoring process to identify credit
portfolio trends and early warning signals. This enables it to implement necessary changes to the credit policy, whenever the need arises. Also,
being in asset financing business, most of the company's lending is covered by adequate collaterals from the borrowers. The company has a robust
online application and underwriting model to assess the credit worthiness of the borrower for underwriting decisions for its Vehicle Finance, Loan
Against Property, Home loan, Secured business and Personal loan, Consumer durables, Small and medium enterprise loans, Consumer small
enterprise loan business, Gold loans. The company also has a well- developed model for the Vehicle Finance Portfolio, to help business teams plan
volume with adequate pricing of risk for different segments of the portfolio.

42.2.1.2 Risk Management and Portfolio Review

The company has a robust portfolio review mechanism. Key metrics like early delinquency, default rates are tracked, monitored and reviewed
daily. Business teams review key trends in these Key Risk Indicators and location level strategies are adopted.

42.2.1.3 ECL Methodology

The Company records allowance for expected credit losses for all financial assets including loan commitments, other than those measured at
FVTPL. Equity instruments carried at cost are not subject to impairment under the ECL methodology and tested for impairment as per Ind AS 36.

42.2.1.4 Assumptions and Estimation techniques

The Company calculates ECLs to measure the expected cash shortfalls, discounted at an approximation to the EIR. A cash shortfall is the difference
between the cash flows that are due to an entity in accordance with the contract and the cash flows that the entity expects to receive. ECL is
computed on collective basis. The portfolio is segmented based on shared risk characteristics for the computation of ECL.

The key elements of the ECL are summarised below:

42.2.1.4(a) PD

The Probability of Default is an estimate of the likelihood of default over a given time horizon. A default may only happen at a certain time over the
assessed period, if the facility has not been previously derecognised and is still in the portfolio. While computing probability of default, significant
outlier events are suitably handled to ensure it does not skew the outcomes.

A 12M marginal PD is computed by creating cohorts of accounts starting in Stage 1 at the beginning of the year and subsequently moving to
Stage 3 at any point in time during the year.

A conditional average probability of default is computed by taking cohort of which were in Stage 2 at the beginning the year and subsequently
moved to Stage 3 anytime in each subsequent year.

42.2.1.4(b) EAD

The Exposure at Default is an estimate of the exposure at a future default date (in case of Stage 1 and Stage 2), taking into account expected
changes in the exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise,
expected drawdowns on committed facilities, and accrued interest from missed payments. In case of Stage 3 loans EAD represents exposure when
the default occurred.

Note : 42 CAPITAL MANAGEMENT (Contd.)

42.2.1.4(c) LGD

The Loss Given Default is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference between
the contractual cash flows due and those that the lender would expect to receive, including from the realisation of any collateral. It is usually
expressed as a percentage of the EAD. The recoveries are discounted back to the default date using customer IRR. This present value of recovery is
used for LGD computation. A recovery rate (RR) computed as the ratio of present value of recovery to the EAD (1 - RR), gives the LGD.

42.2.1.5 Mechanics of the ECL method
Stage 1:

All loans (other than purchased credit impaired asset) are categorised as Stage 1 on initial recognition. The 12 months ECL is calculated as the
portion of LTECLs that represent the ECLs that result from default events on a financial instrument that are possible within the 12 months after the
reporting date. The Company calculates the 12 months ECL allowance based on the expectation of a default occurring in the 12 months following
the reporting date. These expected 12-month default probabilities are applied to EAD and multiplied by the expected LGD and discounted by an
approximation to the original EIR.

Stage 2:

Loans which are past due for more than 30 days are categorised as Stage 2. When a loan has shown a significant increase in credit risk since
origination, the Company records an allowance for the LTECLs PDs and LGDs are estimated over the lifetime of the instrument. The expected cash
shortfalls are discounted by an approximation to the original EIR.

Stage 3:

Loans which are past due for more than 90 days are categorised as Stage 3. For loans considered credit-impaired, the Company recognises the
lifetime expected credit losses for these loans. The method is similar to that for Stage 2 assets, with the PD set at 100%

Restructured loans are categorised as Stage 3 on the date of restructuring and remain so for a period of one year. Post this, regular staging criteria
applies.

Loans which have been renegotiated or modified in accordance with RBI Notifications for COVID-19 has been classified as Stage 2 due to significant
increase in credit risk as on the date of such re-negotiation or modification.

The Post Implementation Staging of Loans restructured under Covid Resolution framework shall follow the Days Past Due of respective loan
agreements.

In respect of new lending products, where historical information is not available, the company follows simplified matrix approach for determining
impairment allowance based on industry practise. These loans constitute around 14% of the total loan book.

Loan Movement across stages during the year is given in a note 9.1.

Loan commitment:

When estimating LTECLs for undrawn loan commitments, the Company estimates the expected portion of the loan commitment that will be
drawn down over its expected life. The ECL is then based on the present value of the expected shortfalls in cash flows if the loan is drawn down.
The expected cash shortfalls are discounted at an approximation to the expected EIR on the loan. For an undrawn loan commitment, ECLs are
calculated and presented under provisions.

Other Financial assets:

The Company follows 'simplified approach' for recognition of impairment loss allowance on other financial assets. The application of simplified
approach does not require the Company to track changes in credit risk and calculated on case-by-case approach, taking into consideration
different recovery scenarios.

42.2.1.6 Incorporation of forward-looking statements in ECL model

The Company considers a broad range of forward-looking information with reference to external forecasts of economic parameters such as
GDP growth, Inflation, Government Expenditure etc., as considered relevant so as to determine the impact of macro-economic factors on the
Company's ECL estimates.

The inputs and models used for calculating ECLs are recalibrated periodically through the use of available incremental and recent information.
Further, internal estimates of PD, LGD rates used in the ECL model may not always capture all the characteristics of the market / external
environment as at the date of the financial statements. To reflect this, qualitative adjustments or overlays are made as temporary adjustments to
reflect the emerging risks reasonably.

Annual data from 2019 to 2028 (including forecasts for 4 years) were obtained from World Economic Outlook, October 2025 published by
International Monetary Fund (IMF). IMF provides historical and forecasted data for important economic indicators country-wise. The data provided
for India is used for the analysis. Macro variables that were compared against default rates at segment level to determine the key variables having
correlation with the default rates using appropriate statistical techniques. Vasicek model has been incorporated to find the Point in Time (PIT) PD.
The company has formulated the methodology for creation of macro-economic scenarios under the premise of economic baseline, upside and
downside condition. A final PIT PD is arrived as the scenario weighted PIT PD under different macroeconomic scenarios.

42.2.1.8 Concentration of credit risk and Collateral and Credit Enhancements
42.2.1.8(a) Concentration of credit risk

Concentration of credit risk arise when a number of counterparties or exposures have comparable economic characteristics, or such
counterparties are engaged in similar activities or operate in same geographical area or industry sector so that collective ability to meet
contractual obligations is uniformly affected by changes in economic, political or other conditions. The Company is in retail lending business
on pan India basis targeting primarily customers who either do not get credit or sufficient credit from the traditional banking sector.
Vehicle Finance (consisting of new and used Commercial Vehicles, Passenger Vehicles, Tractors, Construction Equipment and loan to
Automobile dealers) is lending against security (other than for loan to Automobile dealers) of Vehicle/ Tractor / Equipment and contributes
to 53% of the loan book of the Company as of March 31, 2026 (55% as of March 31, 2025). Hypothecation endorsement is made in favour
of the Company in the Registration Certificate in respect of all registerable collateral. Portfolio is reasonably well diversified across South,
North, East and Western parts of the country. Similarly, sub segments within Vehicle Finance like Heavy Commercial Vehicles, Light
Commercial Vehicles, Car and Multi Utility Vehicles, three-wheeler and Small Commercial Vehicles, Refinance against existing vehicles,
older vehicles (first time buyers), Tractors and Construction Equipment leading to well diversified sub product mix. New Tractors and New
Construction Equipment have portfolio share of 5% and 6% respectively.

Loan Against Property is mortgage loan against security of existing immovable property (primarily self-occupied residential property) to
self- employed non-professional category of borrowers and contributes to 23 % of the lending book of the Company as of March 31,2026
(21% as of March 31, 2025). Portfolio is concentrated in South 42%, followed by North 32% and West 20% and with small presence in East
6% of the overall exposure of this segment.

Home Loan is loan provided to buy or construct new/existing homes and contributes 10% of the lending book of the Company as of
March 31, 2026 (9% as of March 31, 2025). Portfolio is concentrated in South 63% followed by North and West at 12% each, East at 13% of
the overall exposure of this segment.

The Concentration of risk is managed by Company for each product by its region and its sub-segments. Company did not overly depend
on few regions or sub-segments as of March 31, 2026.

Valuation of Collateral:

a) Vehicles including construction equipment and tractors are valued at original cost less 20% depreciation per year on WDV

b) Immovable property is valued based on the amount as per the valuation report at the time of sanctioning of loan

c) Collateral for gold loan is valued based on Market price of gold per gram as on reporting date

d) Other loans are valued based on book debts at cost or securities at market value.

42.2.2 Market Risk

Market Risk is the possibility of loss arising from changes in the value of a financial instrument as a result of changes in market variables
such as interest rates, exchange rates. The company's exposure to market risk is a function of asset liability management and interest rate
sensitivity assessment. The company is exposed to interest rate risk and liquidity risk, if the same is not managed properly. The company
continuously monitors these risks and manages them through appropriate risk limits. The Asset Liability Management Committee (ALCO)
reviews market-related trends and risks and adopts various strategies related to assets and liabilities, in line with the company's risk
management framework. ALCO activities are in turn monitored and reviewed by a board sub-committee. In addition, the company has
put in an Asset Liability Management (ALM) support group which meets frequently to review the liquidity position of the company.
42.2.2.1 Liquidity Risk

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities
that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be
unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal
and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on
acceptable terms. To limit this risk, management has arranged for diversified funding sources and adopted a policy of availing funding in

line with the tenor and repayment pattern of its receivables and monitors future cash flows and liquidity on a daily basis. The Company
has developed internal control processes and contingency plans for managing liquidity risk. This incorporates an assessment of expected
cash flows and the availability of unencumbered receivables which could be used to secure funding by way of assignment if required.
The Company also has lines of credit that it can access to meet liquidity needs. These are reviewed by the Asset Liability Committee
(ALCO) on a monthly basis. The ALCO provides strategic direction and guidance on liquidity risk management. A sub-committee of the
ALCO, comprising members from the Treasury and Risk functions, monitor liquidity risks on a weekly basis and decisions are taken on the
funding plan and levels of investible surplus, from the ALM perspective. This sets the boundaries for daily cash flow management.
Analysis of Financial liabilities by remaining contractual maturities given in note -47.

42.2.2.2 Interest Rate Risk

The Company being in the business of lending raises money from diversified sources like market borrowings, term Loan from banks and
financial institutions, foreign currency borrowings etc. Financial assets and liabilities constitute significant portion, changes in market
interest rates can adversely affect the financial condition. The fluctuations in interest rates can be due to internal and external factors.
Internal factors include the composition of assets and liabilities across maturities, existing rates and re-pricing of various sources of
borrowings. External factors include macro-economic developments, competitive pressures, regulatory developments and global factors.
The movement in interest rates (upward / downward) will impact the Net Interest Income depending upon rate sensitivity of the asset or
liability. The company uses traditional gap analysis report to determine the vulnerability to movements in interest rates. The Gap is the
difference between Rate Sensitive Assets (RSA) and Rate Sensitive Liabilities (RSL) for each time bucket. A positive gap indicates that the
company can benefit from rising interest rates while a negative gap indicates that the company can benefit from declining interest rates.
Based on market conditions, the company enters into interest rate swap to mitigate interest rate risk.

42.2.2.3 Foreign Currency Risk

Foreign currency risk for the Company arises mainly on account of foreign currency borrowings. The Company manages this foreign
currency risk by entering into derivative contracts such as cross currency swaps or forward contracts. When such a derivative is entered into
for the purpose of hedging, the Company negotiates the terms of those derivatives to match with the terms of the underlying exposure.
These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that
are directly or indirectly observable in market place.

42.2.2.4 Hedging Policy

The Company's policy is to fully hedge its foreign currency borrowings at the time of drawdown and remain so till repayment and hence
the hedge ratio is 1:1.

The Management assessed that cash and cash equivalents, bank balance other than Cash and cash equivalents, receivable, other financial assets,
payables and other financial liabilities approximates their carrying amount largely due to short term maturities of these instruments.

Note 44.2 - Fair value hierarchy

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. The following methods and assumptions were used to estimate the fair values of
financial assets or liabilities disclosed under level 2 category.

i) The fair value of loans have been estimated by discounting expected future cash flows using discount rate equal to the rate near to the
reporting date of the comparable product.

ii) The fair value of debt securities, borrowings other than debt securities and subordinated liabilities have been estimated by discounting
expected future cash flows using discounting rate equal to the rate near to reporting date based on comparable rate / market observable
data.

iii) Derivatives are fair valued using observable inputs / rates.

iv) The fair value of investments in Government securities/STRIPS/ Treasury Bills are derived from rate equal to the rate near to the reporting
date of the comparable product.

v) Fair value of investment property is calculated based on valuation given by external independent valuer and also refer note 13 for
sensitivity analysis.

Lease expenses relating to short term leases aggregated to ? 0.82 crores (? 0.29 crores - March 31, 2025) during the year ended March 31, 2026.
Weighted average incremental borrowing rate for Lease liabilities recognised during the year ended March 31,2026 is 8.19%
(8.60% -March 31, 2025)

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 the lease liabilities as and when they fall due.

The Company has several lease contracts that includes option to extend or terminate. These options are negotiated by the Management
to provide flexibility in managing the leased-asset portfolio and align with Company's business needs. Management exercises significant
judgement in determining whether these extension and termination are reasonably certain to be exercised.

The company has not defaulted in its lease obligations.

Part - II - Other Disclosures

1 No proceedings have been initiated on or are pending against the company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

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

3 The company does not have any outstanding amount arising out of transactions with struck off companies during the year.

4 There has been no charges or satisfaction yet to be registered with ROC beyond the statutory period._

5 Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of
funds) to any other person(s) or entity(ies), 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 by or on behalf of the Funding
Party (Ultimate beneficiaries)

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

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

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

b. provided any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

7 Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31,2026

8 The company has complied with the number of layers prescribed under the Companies Act, 2013, read with the Companies
(Restriction on number of Layers) Rules, 2017

9 The company has not entered into any scheme of arrangements which has an accounting impact on current period/previous
financial year.

10 There is no income surrendered/disclosed as income during the current/previous year in the tax assessments under Income Tax Act,
1961,that has not been recorded in the books of accounts

XIV) LIQUIDITY RISK (Contd.)

(vi) Institutional set-up for liquidity risk management:

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that
are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable
to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress
circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on acceptable
terms. To limit this risk, management has arranged for diversified funding sources and adopted a policy of availing funding in line with the
tenor and repayment pattern of its receivables and monitors future cash flows and liquidity on a daily basis. The Company has developed
internal control processes and contingency plans for managing liquidity risk. This incorporates an assessment of expected cash flows and
the availability of unencumbered receivables which could be used to secure funding by way of assignment if required. The Company also
has lines of credit that it can access to meet liquidity needs. These are reviewed by the Asset Liability Committee (ALCO) on a monthly basis.
The ALCO provides strategic direction and guidance on liquidity risk management. A sub-committee of the ALCO, comprising members
from the Treasury and Risk functions, monitor liquidity risks on a weekly basis and decisions are taken on the funding plan and levels of
investible surplus, from the ALM perspective. This sets the boundaries for daily cash flow management.

Notes:

1) A "Significant Counterparty" is defined as a single counterparty or group of connected or affiliated counterparties accounting in
aggregate for more than 1% of NBFC-NDSI's total liabilities.

2) A "significant instrument/product" is defined as a single instrument/product of group of similar instruments/products which in
aggregate amount to more than 1% of the NBFC-NDSI's total liabilities.

3) Total Borrowing has been computed as principal portion of Gross Total Debt basis extant regulatory ALM guidelines.

4) Total Liabilities has been computed as Total Assets less Equity share capital less Reserve & Surplus and computed basis extant
regulatory ALM guidelines.

5) Commercial Paper for stock ratio is the principal portion of Gross outstanding (i.e.Maturity amount).

6) Other Short-term Liabilities has been computed as Total Short-term Liabilities less debt securities, Borrowings (other than debt
securities) and subordinated liabilities (Original maturity of less than one year), basis extant regulatory ALM guidelines.

7) Public Funds = Total Borrowings as computed above.

Refer Note No 47 for the summary of maturity profile of undiscounted cash flows of the Company's financial liabilities as at reporting
year.

XXXI) LIQUIDITY COVERAGE RATIO

The Liquidity Coverage Ratio (LCR) is a key compliance requirement for a resilient and stable financial sector. Its objective is the promotion of short¬
term resilience of the liquidity risk profile of financial institutions by ensuring that it has sufficient High Quality Liquid Assets (HQLA) to survive a
significant stress scenario lasting for one month. The Liquidity Coverage Ratio is expected to improve the financial sector's ability to absorb shocks
arising from financial and economic stress, whatever the source, thus reducing the risk of spill over from the financial sector to the real economy.

Liquidity Management of the company is supervised by the Asset Liability Committee. The management is of the view that the company has in place
robust processes to monitor and manage liquidity risks and sufficient liquidity cover to meet its likely future short-term requirements.

The company has a diversified mix of borrowings with respect to the source, type of instrument, tenor and nature of security. The composition of
borrowings consists of Bank term loans, Market Borrowings and Securitization. The Asset Liability Committee constantly reviews and monitors the
funding mix and ensures the optimum mix of funds based on the cash flow requirements, market conditions and keeping the interest rate view in
consideration. Additionally, the Company has lines of credit that it can access to meet liquidity needs.

These are reviewed by the Asset Liability Committee (ALCO) on a monthly basis. The Asset Liability Committee provides strategic direction and
guidance on liquidity risk management. A sub-committee of the Asset Liability Committee, comprising members from the Treasury and Risk
functions, monitor liquidity risks on a weekly basis and decisions are taken on the funding plan and levels of investible surplus, from the Asset Liability
Management perspective. This sets the boundaries for daily cash flow management.

In line with RBI regulations, the cash outflows and inflows have been stressed by 115% and 75% of their respective original values for computing LCR.
The key drivers on the inflow side are the expected collections from the performing assets of the company and on the outflow side the scheduled
maturities. The High-Quality Liquid Assets are entirely held in in Level 1 assets with no haircut.

The LCR has been consistently maintained well over the regulatory threshold throughout the year. The company has Board approved internal risk
thresholds for LCR which is higher than the regulatory requirement.

All foreign currency borrowings are fully hedged both for principal and interest at the time of drawal of each loan and hence do not run the risk of
currency mismatch.

NOTE : 51. DISCLOSURE OF FRAUDS REPORTED DURING THE YEAR ENDED VIDE DNBS. PD. CC NO. 256/ 03.10.042/ 2011-12 DATED
MARCH 02, 2012

There were 20 cases (March 31,2025 - 18 cases) of frauds amounting to ? 13.91 crores (March 31,2025 - ? 5.45 crores) reported during the
year. The Company has recovered an amount of ? 1.46 crores (March 31,2025 - ? 0.16 crores). The un-recovered amounts are either pending
settlement with the insurance companies or have been fully provided/ written off.