2.23. Provisions, contingent liabilities and contingent

assets:

Provisions are recognised only when:

i. an Company entity has a present obligation (legal
or constructive) as a result of a past event; and

ii. it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation; and

iii. a reliable estimate can be made of the amount of
the obligation

Provision is measured using the cash flows
estimated to settle the present obligation and when
the effect of time value of money is material, the
carrying amount of the provision is the present value
of those cash flows. Reimbursement expected in
respect of expenditure required to settle a provision
is recognised only when it is virtually certain that the
reimbursement will be received.

Contingent liability is disclosed in case of:

i. a present obligation arising from past events,
when it is not probable that an outflow of
resources will be required to settle the
obligation; and

ii. a present obligation arising from past events,
when no reliable estimate is possible.

Contingent assets are disclosed where an inflow of
economic benefits is probable. Provisions,

contingent liabilities and contingent assets are
reviewed at each Balance Sheet date.

Where the unavoidable costs of meeting the
obligations under the contract exceed the economic
benefits expected to be received under such
contract, the present obligation under the contract
is recognised and measured as a provision.

2.24. Commitment:

Commitments are future liabilities for contractual
expenditure, classified and disclosed as follows:

a. estimated amount of contracts remaining to be
executed on capital account and not provided
for;

b. uncalled liability on shares and other
investments partly paid;

c. funding related commitment to associate
companies; and

d. other non-cancellable commitments, if any, to
the extent they are considered material and
relevant in the opinion of management.

Other commitments related to sales/procurements
made in the normal course of business are not
disclosed to avoid excessive details.

2.25. Statement of cash flows:

Statement of cash flows is prepared segregating the
cash flows into operating, investing and financing
activities. cash flow from operating activities is
reported using indirect method adjusting the net
profit for the effects of:

i. changes during the period in operating
receivables and payables transactions of a non¬
cash nature;

ii. non-cash items such as depreciation, provisions,
deferred taxes, unrealised gains and losses; and

iii. all other items for which the cash effects are
investing and financing cash flows.

Cash and cash equivalents (including bank balances)
shown in the Statement of Cash Flows exclude items

which are not available for general use as on the date
of Balance Sheet.

2.26. Earnings per share:

The Company presents basic and diluted earnings per
share data for its ordinary shares. Basic earnings per
share is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Company
by the weighted average number of ordinary shares
outstanding during the year. Diluted earnings per
share is determined by adjusting the profit or loss
attributable to ordinary shareholders and the
weighted average number of ordinary shares
outstanding, adjusted for own shares held, for the
effects of all dilutive potential ordinary shares.

2.27. Key source of estimation:

The preparation of financial statements in conformity
with Ind AS requires that the management of the
Company makes estimates and assumptions that
affect the reported amounts of income and expenses
of the period, the reported balances of assets and
liabilities and the disclosures relating to contingent
liabilities as of the date of the financial statements.
The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates include useful lives of property, plant and
equipment & intangible assets, expected credit loss on
loan books, future obligations in respect of retirement
benefit plans, fair value measurement etc. Difference,
if any, between the actual results and estimates is
recognised in the period in which the results are
known.

2.28. Operating cycle for current and non-current
classification:

Based on the nature of products / activities of the
Company entities and the normal time between
acquisition of assets and their realisation in cash or
cash equivalents, the Company has determined its
operating cycle as 12 months for the purpose of
classification of its assets and liabilities as current and
non-current.

2.29. Statutory Reserve

In accordance with Section 45-IC of the Reserve Bank
of India (Amendment) Act 1997, Twenty percent of
the profit after taxation has been transferred to
Statutory Reserve.

c) The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity share is entitled
to one vote per equity share. In the event of liquidation of the company, the holders of equity shares will be entitled to
receive the remaining assets of the company in proportion to the number of equity shares held.

The Company declares and pays dividend in Indian Rupees. The final dividend, if any, proposed by the Board of Directors
is subject to the approval of shareholders in the ensuing Annual General Meeting.

d) The company is an NBFC Investment company and part of promoter group of Asian Paints Ltd., the objective of the
Company is to hold the investments for long term and invest the surplus liquidity from time to time to maintain the financial
foundation of the Company and ensure sustainable growth.

a) Statutory Reserves (u/s 45-IC of The Reserve Bank of India Act, 1934)

Statutory reserve represents reserve fund created pursuant to Section 45-IC of the RBI Act, 1934 through
transfer of specified percentage of net profit every year before any dividend is declared. The reserve fund can
be utilised only for limited purposes as specified by RBI from time to time and every such utilisation shall be
reported to the RBI within specified period of time from the date of such utilisation.

b) General Reserve

General reserve is created through annual transfer of profits at a specified percentage in accordance with
applicable regulations under the erstwhile Companies Act, 1956. The purpose of these transfers was to ensure
that if a dividend distribution in a given year is more than 10% of the paid up capital of the Company for that
year, then the total dividend distribution is less than the total distributable profits for that year. Consequent to
introduction of the Companies Act, 2013, the requirement to mandatorily transfer specified percentage of net
profits to General reserve has been withdrawn. However, the amount previously transferred to the General
reserve can be utilised only in accordance with the specific requirements of the Companies Act, 2013.

c) Retained Earnings

Retained earnings or accumulated surplus represents total of all profits retained since Company's inception.
Retained earnings are credited with current year profits, reduced by losses, if any, dividend payouts, transfers
to General reserve or any such other appropriations to specific reserves.

The Company has entered into definitive subscription agreements to invest in registered Alternative Investment Funds (AIFs).
The amount reflects the remaining uncalled capital commitment that the Company is obligated to pay as and when drawdown
notices are issued by the respective Fund Managers.

34. Contribution to political parties during the year 2025-26 is Rs. Nil (Previous year Rs. Nil).

35. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2026.

36. Disclosure pertaining to Immovable properties

A. The title deeds, of all the immovable properties (other than immovable properties where the Company is the lessee and
the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in
Property, Plant and Equipment are held in the name of the Company as at the balance sheet date.

B. The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets
during the current or previous year.

37. Wilful defaulter

The Group has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

38. The company had didn't entered into any Scheme's of arrangements with the competent authority in terms of Sec. 230 to
237 of the Companies Act, 2013.

39. Details of pending charge creation / satisfaction registration with ROC.

The company has no such charges which are pending for creation or yet to be satisfy.

40. The Company has not granted any Loans & Advances in the nature of Loans to its Promoters, Directors, KMP's and the
related parties (as defined under Companies Act, 2013), either severally or jointly with any other persons.

41. The company has not taken any facilities from banks/financial institutions against current assets hence disclosure regarding
review and reporting of filings and submission of Quarterly returns or statements with banks/financial institutions are in
agreement with books of accounts are not available.

42. Utilization of borrowed funds and share premium:

A. "The company has not granted/advance/invested funds in any entities or to any other person including foreign entities
during the year with the understanding that the

a) Intermediary shall directly or indirectly lend or invest in any manner whatsoever by or on behalf of the company
(Ultimate beneficiaries).

B. "The company has not received any funds during the year from any person's/entities including foreign entities with the
understanding that the company shall

a) Directly or indirectly lend or invest in any manner whatsoever by or on behalf of the funding entity (Ultimate
beneficiaries).

b) Provide any gurantee, security or the like to or on behalf of the ultimate beneficiaries."

43. Relationship with Struck off Companies

There are no companies which are struck off in MCA with whom the company has entered into transactions and are
outstanding.

44. Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

45. In the opinion of the Board:

i. The current assets, loans and advances will realise in the ordinary course of business, at least the amount at which
these are stated in the Balance Sheet.

ii. Provision for all known liabilities have been made.

46. The Company has obtained the Certificate of Registration from the RBI as a Non-Banking Financial Institution - ND (Type-I) vide
certificate dated 15.09.2025 as updated from the original certificate dated 03.03.1998 issued in Lieu of COR No. 13.00208
under Section 45-IA of the Reserve Bank of India Act, 1934.

47. Segment Information

As the Company has no activities other than those of an investment company, the segment reporting under Indian Accounting
Standard (IndAS) 108 - 'Operating Segments' is not applicable. The Company does not have any reportable geographical
segment.

48. Disclosure pursuant to Ind AS 19 "Employee Benefits":

Short-term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss
of the year in which the related service is rendered. The company is providing one-month salary of leave encashment in the
last month of the respective financial year.

Note:

a. The related party relationships and transactions have been determined by management of the Group on the basis of the
requirements of the Ind AS 24 " Related Party Disclosures" and the same have been relied upon by the auditors.

b. The relationships as mentioned above pertain to those related parties with whom transactions have taken place during
the year.

c. Related parties have been identified by the Management. Actual re-imbursement of expenses/taxes paid on behalf of
related parties is not considered as a related party transactions for disclosure purpose

d. The Group declared and paid corporate dividends to its equity shareholders. Certain Key Managerial Personnel (KMPs)
and their relatives hold equity shares in the Group and received dividends in proportion to their respective shareholdings.

In accordance with the financial reporting framework and prevailing statutory guidelines, these dividend payments do not
constitute specialized or preferential related party transactions as they were paid uniformly to all equity shareholders of the
Group at the declared rate per share. Consequently, individual dividend payout figures for KMPs and their relatives have not
been separately disclosed within this note.

50. Disclosures on financial instruments

A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including
their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial
liabilities if the carrying amount is a reasonable approximation of fair value.

B. Measurement of fair values

"The following table provides an analysis of financial instruments that are measured subsequent to initial recognition

at fair value, grouped into Level 1 to Level 3, as described below:

Level I: On the basis of latest NAV/Market price available.

Level II: other techniques for which all inputs which have a significant effect on the recorded fair value are observable,
either directly or indirectly.

Level III: techniques which use inputs that have a significant effect on the recorded fair value that are not based on
observable market data."

i. The management assessed that fair value of cash and cash equivalents, other receivables, other payables,
and other financial assets and other financial liabilities approximate their carrying amounts largely due
to the short-term maturities of these instruments.

ii. Financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.

iii. The fair values of the equity investment which are quoted, are derived from quoted market prices in
active markets. The Investments measured at fair value and falling under fair value hierarchy Level 3 are
valued on the basis of valuation reports provided by external valuers with the exception of certain
investments, where cost has been considered as an appropriate estimate of fair value because of a wide
range of possible fair value measurements and cost represents the best estimate of fair values within that
range.

iv. The fair value of the financial instruments that are not traded in an active market is determined using
valuation techniques. The Company uses its judgment to select a variety of methods and make
assumptions that are mainly based on market conditions existing at the end of each reporting period.

v. There have been transfers between Level I and Level II for the years ended 31st March, 2026 and 31st
March, 2025.

C. Derivative Financial Instruments

The Company has not entered into any derivative financial contracts during the current and previous financial years

D. Financial Risk Management

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

• Credit risk

• Liquidity risk; and

• Market risk"

The Company has a risk management framework which not only covers the market risks but also other risks
associated with the financial assets and liabilities such as interest rate risks and credit risks.

The risk management framework is approved by the Board of Directors.

Credit Risk:

Credit risk is the risk of financial loss to the company if a counter-party fails to meet its contractual obligations.
Cash and cash equivalents

The company holds cash and cash equivalents of lakhs at 31st March 2026 Rs. 67.78 Lakhs ( 31st March 2025:
Rs. 89.37 lakhs). The credit worthiness of such banks and financial institutions is evaluated by the management on
an ongoing basis and is considered to be good.

Liquidity Risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet
its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to
the Company's reputation.

The table below analyses the Company's financial liabilities into relevant maturity groupings based on their
contractual maturities for:

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes
in market rates and prices (such as equity price, interest rates etc.) or in the price of market risk-sensitive instruments
as a result of such adverse changes in market rates and prices. The Company is exposed to market risk primarily
related to the market value of its investments.

Interest rate risk:

Interest rate risk arises from effects of fluctuation in prevailing levels of market interest rates on the fair value of
Bonds / Debentures.

Currency risk:

Currently company does not have transaction in foreign currencies and hence the company is not exposed to currency
risk.

Price risk:

The Company is exposed to equity price risk arising from investments held by the Company and classified in the
balance sheet either as FVTPL or FVOCI.

To manage its price risk arising from investment in equity securities, the Company diversifies its portfolio.

The majority of the Company's equity investments are listed on the BSE or the National Stock Exchange (NSE) in India.

E. Capital Management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business.

The Company has adequate cash and cash equivalents. The company monitors its capital by a careful scrutiny of the
cash and cash equivalents, and a regular assessment of any debt requirements. In the absence of any debt, the
maintenance of debt equity ratio etc. may not be of any relevance to the Company.

Notes:

1. As defined in point xix of paragraph 3 of Chapter-2 of these directions.

2. Provisioning norms shall be applicable as prescribed in these directions

52. Previous year previous GAAP figures have been regrouped / reclassified to make them comparable with IND AS presentation.

53. Rule 11(g) of Companies (Audit and Auditors) Rules, 2014

The Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2026,
which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all
relevant transactions recorded in the software.

54. Events after Reporting date

There have been no events after the reporting date that require disclosure in these financial statements.