m. Provisions, contingent liabilities and
contingent assets

Provisions are recognised when the Company
has a present obligation (legal or constructive)

as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.

When the Company expects some or all of a
provision to be reimbursed, the reimbursement
is recognised as a separate asset, but only
when the reimbursement is virtually certain.
The expense relating to a provision is
presented in the statement of profit and loss
net of any reimbursement.

If the effect of the time value of money is
material, provisions are discounted using
a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability.
When discounting is used, the increase in
the provision due to the passage of time is
recognised as a finance cost.

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
standalone 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 recognised.

n. Employee Benefits

(i) Short term employee benefits

Short-term employee benefits are
expensed as the related service is provided.
A liability is recognised for the amount
expected to be paid if the Company has
a present legal or constructive obligation
to pay this amount as a result of past
service provided by the employee and the
obligation can be estimated reliably.

(ii) Defined contribution plans (provident
fund, superannuation fund etc.)

A defined contribution plan is a
post-employment benefit plan under
which an entity pays fixed contributions
into a separate entity and will have no
legal or constructive obligation to pay
further amounts.

Obligations for contributions to defined
contribution plans are expensed
as the related service is provided.
Prepaid contributions are recognised as an
asset to the extent that a cash refund or a
reduction in future payments is available.

(iii) Defined benefit plans (gratuity)

The Company's net obligation in respect
of defined benefit plans is calculated
separately for each plan by estimating the
amount of future benefit that employees
have earned in the current and prior
periods, discounting that amount and
deducting the fair value of any plan assets.

The calculation of defined benefit
obligations is performed annually by a
qualified actuary using the projected
unit credit method. When the calculation
results in a potential asset for the
Company, the recognised asset is limited
to the present value of economic benefits
available in the form of any future refunds
from the plan or reductions in future
contributions to the plan. To calculate
the present value of economic benefits,
consideration is given to any applicable
minimum funding requirements.

Remeasurement of the net defined benefit
liability, which comprise actuarial gains
and losses and the return on plan assets
(excluding interest) and the effect of the
asset ceiling (if any, excluding interest),
are recognised immediately in other
comprehensive income (OCI). Net interest
expense (income) on the net defined
liability (assets) is computed by applying
the discount rate, used to measure the
net defined liability (asset). Net interest
expense and other expenses related to
defined benefit plans are recognised in
Statement of Profit and Loss.

When the benefits of a plan are changed
or when a plan is curtailed, the resulting
change in benefit that relates to past
service or the gain or loss on curtailment
is recognised immediately in Statement of
Profit and Loss. The Company recognises
gains and losses on the settlement
of a defined benefit plan when the
settlement occurs.

(iv) Other long-term employee benefits
(leave encashment)

The Company's net obligation in respect
of long-term employee benefits is the
amount of future benefit that employees
have earned in return for their service in
the current and prior periods. That benefit
is discounted to determine its present
value. Remeasurement are recognised in
Statement of Profit and Loss in the period
in which they arise.

o. Earnings per share

The basic Earnings per equity share (“EPS”)
is computed by dividing the net profit / (loss)
after tax for the year attributable to the equity
shareholders by the weighted average number
of equity shares outstanding during the year.

For the purpose of calculating diluted
Earnings per equity share, net profit/(loss)
after tax for the year attributable to the
equity shareholders and the weighted average
number of equity shares outstanding during
the year are adjusted for the effects of all
dilutive potential equity shares.

p. Share based payments

The Schemes for Employees Stock Options
('ESOP(s)') provide for the grant of ESOPs
to acquire equity shares of the Company to
its eligible employees. The period of vesting
and period of exercise are as specified within
the respective schemes. The fair value at
grant date of equity settled share-based
payment arrangements granted to employees
is recognised as an employee benefit
expense, with a corresponding increase in
equity, over the period that the employees
unconditionally become entitled to the ESOPs.
The amount recognised as expense is based
on the estimate of the number of ESOPs for
which the related service and non-market
performance conditions, as applicable are

expected to be met, such that the amount
ultimately recognised as an expense is based
on the number of ESOPs that do meet the
related service and non-market performance
conditions, as applicable at the vesting date.
At the end of each reporting period, the
Company revisits its estimate of the number of
ESOPs expected to vest. Such compensation
cost is amortised over the vesting period of
the respective tranches of such grant.

q. Segment reporting - identification of
segments:

An operating segment is a component of the
Company that engages in business activities
from which it may earn revenues and incur
expenses, whose operating results are regularly
reviewed by the Company's management to
make decisions for which discrete financial
information is available.

r. Financial Instruments

(i) Financial Assets

a) Classification

The Company classifies financial
assets as subsequently measured at
amortised cost, fair value through
other comprehensive income or
fair value through profit or loss on
the basis of its business model for
managing the financial assets and the
contractual cash flow characteristics
of the financial asset.

b) Initial recognition and measurement
All financial assets (not measured
subsequently at fair value through
profit or loss) are recognised initially
at fair value plus transaction costs
that are attributable to the acquisition
of the financial asset. Purchases or
sales of financial assets that require
delivery of assets within a time
frame established by regulation
or convention in the market place
(regular way trades) are recognised
on the trade date, i.e., the date that
the Company commits to purchase or
sell the asset.

c) Debt instruments at amortised cost

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

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

b) Contractual terms of the asset
give rise on specified dates
to cash flows that are solely
payments of principal and
interest (SPPI) on the principal
amount outstanding.

After initial measurement, such
financial assets are subsequently
measured at amortised cost
using the effective interest rate
(EIR) method. Amortised cost is
calculated by taking into account
any discount or premium and fees
or costs that are an integral part
of the EIR. The EIR amortisation
is included in finance income
in the Statement of Profit and
Loss. The losses arising from
impairment are recognised in
the Statement of Profit and Loss.
This category generally applies
to trade and other receivables..

Debt instruments included within
the fair value through profit
and loss (FVTPL) category are
measured at fair value with
all changes recognized in the
Statement of Profit and Loss.

d) Equity investments

All equity investments in scope of
Ind-AS 109 are measured at fair value.
Equity instruments which are held for
trading are classified as at FVTPL.
For all other equity instruments, the
Company decides to classify the same
either as at fair value through other
comprehensive income (FVTOCI)
or FVTPL. The Company makes
such election on an instrument-by¬
instrument basis. The classification
is made on initial recognition and
is irrevocable.

For equity instruments classified as
FVTOCI, all fair value changes on the
instrument, excluding dividends, are
recognized in other comprehensive

income (OCI). There is no recycling of
the amounts from OCI to Statement
of Profit and Loss, even on sale of
such investments.

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

e) Derecognition

A financial asset (or, where applicable,
a part of a financial asset or part
of a Company of similar financial
assets) is primarily derecognised
(i.e. removed from the Company's
balance sheet) when:

The rights to receive cash flows from
The asset have expired, or

The Company has transferred its
rights to receive cash flows from the
asset or has assumed an obligation
to pay the received cash flows in
full without material delay to a
third party under a 'pass-through'
arrangement; and either:

(a) the Company has transferred
substantially all the risks and
rewards of the asset, or

(b) the Company has neither
transferred nor retained
substantially all the risks and
rewards of the asset, but has
transferred control of the asset.

When the Company has transferred
its rights to receive cash flows
from an asset or has entered into
a pass-through arrangement, it
evaluates if and to what extent it
has retained the risks and rewards
of ownership. When it has neither
transferred nor retained substantially
all of the risks and rewards of the
asset, nor transferred control of
the asset, the Company continues
to recognise the transferred asset
to the extent of the Company's

continuing involvement. In that case,
the Company also recognises an
associated liability. The transferred
asset and the associated liability are
measured on a basis that reflects
the rights and obligations that the
Company has retained.

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

f) Impairment of financial assets

In accordance with Ind-AS 109, the
Company applies Expected Credit
Loss (ECL) model for measurement
and recognition of impairment loss
on the following financial assets and
credit risk exposure:

a) Financial assets that are debt

instruments, and are measured
at amortised cost e.g., loans,
debt securities, deposits,

and bank balance.

b) Trade receivables.

The Company follows 'simplified
approach' for recognition of
impairment loss allowance

on trade receivables which
do not contain a significant
financing component.

The application of simplified
approach does not require the
Company to track changes in
credit risk. Rather, it recognises

impairment loss allowance

based on lifetime ECLs at each
reporting date, right from its
initial recognition.

(ii) Financial Liabilities

a) Classification

The Company classifies all financial
liabilities as subsequently measured
at amortised cost, except for financial
liabilities at fair value through profit

or loss. Such liabilities, including
derivatives that are liabilities, shall be
subsequently measured at fair value

b) Initial recognition and measurement

Financial liabilities are classified,
at initial recognition, as financial
liabilities at fair value through profit or
loss, loans and borrowings, payables,
or as derivatives designated as
hedging instruments in an effective
hedge, as appropriate.

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

The Company's financial liabilities
include trade and other payables,
loans and borrowings including
bank overdrafts, financial

guarantee contracts and derivative
financial instruments.

c) Financial liabilities at fair value
through profit or loss

Financial liabilities at fair value
through profit or loss include financial
liabilities held for trading and financial
liabilities designated upon initial
recognition as at fair value through
profit or loss. Financial liabilities
are classified as held for trading if
they are incurred for the purpose
of repurchasing in the near term.
This category also includes derivative
financial instruments entered into by
the Company that are not designated
as hedging instruments in hedge
relationships as defined by Ind-AS
109. Separated embedded derivatives
are also classified as held for trading
unless they are designated as
effective hedging instruments.

Gains or losses on liabilities held
for trading are recognised in the
Statement of Profit and Loss.

Financial liabilities designated upon
initial recognition at fair value through
profit or loss are designated at the

initial date of recognition, and only if
the criteria in Ind-AS 109 are satisfied.
For liabilities designated as FVTPL,
fair value gains/ losses attributable
to changes in own credit risk are
recognized in OCI. These gains/loss
are not subsequently transferred
to Statement of Profit and Loss.
However, the Company may transfer
the cumulative gain or loss within
equity. All other changes in fair value
of such liability are recognised in
the Statement of Profit and Loss.
The Company has not designated
any financial liability as at fair value
through profit or loss.

d) Loans and borrowings

After initial recognition,

interest-bearing loans and borrowings
are subsequently measured at
amortised cost using the EIR method.
Gains and losses are recognised in
Statement of Profit and Loss when
the liabilities are derecognised.

Amortised cost is calculated by
taking into account any discount or
premium on acquisition and fees or
costs that are an integral part of the
EIR. The EIR amortisation is included
as finance costs in the Statement of
Profit and Loss.

This category generally applies
to interest-bearing loans

and borrowings.

e) Derecognition

A financial liability is derecognised
when the obligation under the liability
is discharged or cancelled or expires.
When an existing financial liability is
replaced by another from the same
lender on substantially different
terms, or the terms of an existing
liability are substantially modified,
such an exchange or modification is
treated as the derecognition of the
original liability and the recognition
of a new liability. The difference in
the respective carrying amounts
is recognised in the Statement of
Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are
offset and the net amount is reported in the
balance sheet if there is a currently enforceable
legal right to offset the recognised amounts
and there is an intention to settle on a net basis,
to realise the assets and settle the liabilities
simultaneously.

s. Cash and cash equivalents

Cash and cash equivalents presented in the
balance sheet include cash at banks, cash on
hand, liquid and money market mutual funds
held for short-term liquidity management, and
short-term deposits with original maturities of
three months or less that are readily convertible
into known amounts of cash and subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash and
short-term deposits, as defined above, net
of outstanding bank overdrafts as they are
considered an integral part of the Company's
cash management.

t. Investment in subsidiaries

Investment in subsidiaries is carried at cost
less impairment in the financial statements.

u. Recent pronouncements

“Ministry of Corporate Affairs (“MCA”)
notifies new standards or amendments to
the existing standards under Companies
(Indian Accounting Standards) Rules as issued
from time to time.

In May 2025, MCA notified amendments to
Ind AS 21 - The Effects of Changes in Foreign
Exchange Rates, applicable w.e.f. April 1, 2025.

The Company has reviewed the amendment
and based on its evaluation has determined
that it does not have any significant impact in
its financial statements.In August 2025, MCA
notified the following amendments to:

1. Ind AS 1, Presentation of Financial
Statements, applicable w.e.f. April 1, 2025
- The amendment relates to classification
ofliabilities as current or non-current and
non-current liabilities with covenants.

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

2. Ind AS 7, Statement of Cash Flows
and Ind AS 107, Financial Instruments:
Disclosures, applicable w.e.f. April 1, 2025
- The amendment in Ind AS 7 requires
to inform users of financial statements
of the existence of supplier finance
arrangements and explain the nature of
the arrangements, the carrying amount
of liabilities and the range of payment
due dates. Ind AS 107 has been amended
to add supplier finance arrangements as

a factor that may cause concentration
of liquidity risk. The Company has
reviewed the amendment and based on
its evaluation has determined that it does
not have any significant impact in its
financialstatements.

3. Ind AS 12, International Tax Reform - Pillar
Two odel Rules applicable immediately
- The amendments provide a temporary
mandatory relief from deferred tax
accounting for top-up tax and disclose
that they have applied the relief. This relief
is immediate and applies retrospectively.”

Notes:

(i) There are no unbilled dues in the nature of trade receivables

(ii) No trade or other receivable are due from directors or other officers of the company either severally or jointly
with any other person.

(iii) No any trade or other receivable are due from firms or private companies respectively in which any director is
a partner, a director or a member.

(iv) Further, the Company does not have any trade receivables relating to related parties.

15 (c): Shares held by promoters:

The Company does not have any promoters holding in any of the period presented.

15 (d): The Company does not have a Holding Company

15 (e): Shares reserved for issue under options and contracts, including the terms and amounts:

For details of Shares reserved for issue under the Employee Stock Option Plan (ESOP) of the Company: refer Note 35.
15 (f): Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity
shares is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend
proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting.

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

15 (g): Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought
back during the period of five years immediately preceding the reporting date.

The Company has not issued any bonus shares, shares for consideration other than cash during the period of five
years immediately preceding the reporting date.

(f) The amount of revenue from contracts with customers recognised in the standalone statement of profit and
loss is the contracted price.

(g) Contract balances

The following table provides information about receivables, contract assets and contract liabilities from
contracts with customers.

NOTE 29: PROVISIONS AND CONTINGENT LIABILITIES

(A) Contingent Liabilities

There are no claims against the Company not acknowledged as debts (to the extent not provided for).

(B) Provisions

The closing balance of provisions as of 31 March 2026 aggregates Rs 100.00 Lakhs (Previous year Rs. 100 lakhs)
This includes provision of Rs. 100.00 Lakhs relating adjudication proceedings initiated by Regulator /
Government agencies pertaining to certain Credit ratings assigned by the Company to its clients, which is still
in the process of being completed.

(C) Guarantees given by Bank on behalf of the subsidiary company in respect of lien marked deposits placed by
the Company is Nil (Previous Year Nil)

NOTE 30: CAPITAL AND OTHER COMMITMENTS

The amounts pending on account of contracts remaining to be executed on capital account, not provided for is
Rs. 214.67 Lakhs (March 31, 2025 - Rs. 695.51 Lakhs).

The Company has a process whereby periodically all long-term 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 has been made in the
books of account.

NOTE 31: EMPLOYEE BENEFITS

A. Defined benefit plans:

Gratuity:

The gratuity payable to employees is based on the employee's service and last drawn salary at the time of
leaving the services of the Company and is in accordance with the rules of the Company for payment of
gratuity. The Company accounts for the liability based on actuarial valuation. The Company has created a trust
for future payment of gratuities which is funded through gratuity-cum-life insurance scheme of LIC of India.

Inherent risk on above:

The plan is defined in nature which is sponsored by the Company and hence it underwrites all the risks pertaining
to the plan. In particular, this exposes the Company to actuarial risk such as adverse salary growth, change in
demographic experience, inadequate return on underlying plan assets. This may result in an increase in cost of
providing these benefits to the employees in future. Since the benefits are lump sum in nature, the plan is not
subject to any longevity risk.

'The sensitivity analysis has been determined based on reasonably possible changes of the respective assumptions occurring
at the end of the reporting period, while holding all other assumptions constant. The present value of the projected benefit
obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same
method as applied in calculating the projected benefit obligation as recognized in the balance sheet. There was no change in the
methods and assumptions used in preparing the sensitivity analysis from prior years.

xi. Basis used to determine expected rate of return on plan assets:

Expected rate of return on Plan Assets is based on expectation of the average long-term rate of return expected
on investments of the fund during the estimated term of the obligations.

xii. Salary escalation rate:

Salary escalation rates are determined considering seniority, promotion, inflation and other relevant factors.

xiii. Asset liability matching (ALM) strategy:

The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of
Income Tax Rules, 1962, this generally reduces ALM risk.

xiv. The Company’s expected contribution during next year is Rs. 183.21 Lakhs.

B. Compensated absences:

The compensated absences cover the Company's liability for earned leave. Long term compensated absences
are determined on the basis of actuarial valuation made at the end of each financial year using the projected unit
credit method. Short term compensated absences are provided for based on estimates. Amount recognized as
an expense in respect of Compensated Absences is Rs. 320.1 Lakhs (March 31, 2025 - Rs. 250.67 Lakhs).

C. Defined contribution plans:

Amount recognized as an expense and included in Note 25 under the head “Contribution to Provident and
other Funds” of Statement of Profit and Loss is Rs. 596.07 Lakhs (March 31, 2025- Rs. 519.98 Lakhs).

D. Superannuation benefits:

Superannuation Benefits is contributed by the Company to Life Insurance Corporation of India (LIC) @ 10% of
basic salary with respect to certain employees.

Contribution to Superannuation Fund charged to Statement of Profit and Loss in Note 25 under the head
“Contribution to Provident and other Funds” is Rs. 43.84 Lakhs (March 31,2025 - Rs. 45.14 Lakhs).

C. Fair Valuation:

The fair value of the options used to compute proforma net profit and earnings per equity share have been done
by an independent valuer on the date of grant using Black - Scholes-Merton Formula. The key assumptions and
the Fair Value are as under:

Expected volatility has been based on an evaluation of the historical volatility of the Company's share price,
particularly over the historical period commensurate with the expected term. The expected term of the
instruments has been based on historical experience and general option holder behaviour.

D. Details of the reserves arising from the share based payments wereas follows:B. Investments in equity instruments designated at Fair Value through other comprehensive income

As on March 31, 2026 and March 31, 2025, The Company has investments in Kunsmatige Intelligensie Beleggings
Limited (Formerly known as ARC Risk Group Limited BVI Company) of 20 Ordinary Shares of USD 22,600 each
and 20,00,000 ordinary shares of RM 1 each in Malaysian Rating Corporation Berhad. The Company has opted
to designate these investments at Fair Value through Other comprehensive income since these investments
are not held for trading.

The fair value of each of these investments are as below:

The Company has received Rs. 20.21 Lakhs (Previous Year Rs. 17.64 Lakhs) as Dividend from Malaysian Rating
Corporation Berhad and has recognized in the Statement of Profit and Loss under Note -24 - Other Income.

NOTE 37: FAIR VALUE MEASUREMENT:

The fair values of the Financial assets and liabilities are 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 Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs
to valuation techniques used to measure fair value of financial instruments are:

Level 1:

This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2:

The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximize the use of observable market data and rely as little as possible on company specific
estimates. The investment in mutual funds are valued using the closing Net Asset Value based on the mutual fund
statements received by the company. If all significant inputs required to fair value an instrument are observable, the
instrument is included in Level 2.

Level 3:

If one or more of the significant inputs is not based on observable market data, the instrument is included in
Level 3. The fair valuation of investment in Equity Shares of Malaysian Rating Corporation Berhad and Kunsmatige
Intelligensie Beleggings Limited (Formerly known as ARC Risk Group Limited BVI Company) is classified under
Level 3. The details are given in the table below:

For financial instruments other than covered above, their carrying values approximate their fair values.

There has been no transfers between level 1, level 2 and level 3 for the year ended March 31, 2026 and 2025.

The Group has utilized the expertise of its external valuer to value the investments in Malaysian Rating Corporation
Berhad and for Kunsmatige Intelligensie Beleggings Limited (Formerly known as ARC Risk Group Limited BVI
Company), valuation has been done based on NAV.

The following methods and assumptions were used to estimate the fair values:

• The fair values of the quoted investments/units of mutual fund schemes are based on market price/net asset
value at the reporting date.

• The valuation of investments in equity shares of companies classified as Fair Value through Other
Comprehensive Income have been determined with reference to the market multiples derived from quoted
prices of companies comparable to the investees and expected revenue of the investees & net asset value of
the underlying investee company. The estimate is adjusted for the effect of non marketability of the relevant
equity securities. There were no significant unobservable inputs other the adjustment for the effect of non
marketability. The estimated fair value would reduce in case the adjustment for non marketability is increased
and vice versa.

NOTE 38: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES:

The Company is a Debt Free Company. The principal financial liabilities of the Company comprise of lease liability,
other liabilities and Provisions which arise on account of normal course of business. The Company's principal
financial assets include investments, trade receivables, cash and cash equivalents, other bank balances, loans and
other financial assets.

The Company is exposed to Market Risk, Credit Risk, and Liquidity Risk. The Company's senior management
oversees the management of these risks. The Company's senior management ensures that the Company's financial
risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured
and managed in accordance with the Company's policies and risk objectives.

The Management of the Company updates its Board of Directors on periodic basis about various risks to the
business and status of various activities planned to mitigate the risk.

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

The Company is exposed to Market Risk, Credit Risk and Liquidity Risk. The Company's senior management
oversees the management of these risks. The Company's senior management ensures that the Company's financial
risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured
and managed in accordance with the Company's policies and risk objectives.

The Management of the Company updates its Board of Directors on periodic basis about various risks to the
business and status of various activities planned to mitigate the risk.

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

(A) Market Risk

Market risk is the risk that the fair value or future cash flows of such financial instrument will be impacted
because of various financial and non financial market factors. The financial instruments affected by market
risk include the investment in Mutual Funds and investment in Equity Shares of companies incorporated and
operating outside India.

There is no Interest rate risk since the Company does not hold any financial instrument whose fair value or
future cash flows will fluctuate because of changes in market interest rates.

Foreign currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and
loss and other comprehensive income and equity, where any transaction references more than one currency
or where assets / liabilities are denominated in a currency other than the functional currency of the Company.
Considering the countries and economic environment in which the Company operates, its operations are
subject to risks arising from fluctuations in exchange rates in those countries. The company evaluates the
impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

The following table shows foreign currency exposures in USD, MRF and MUR on financial instruments at
the end of the reporting period. The exposure to foreign currency for all other currencies are not material.
The Company does not hedge its foreign currency exposure.

(B) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating (primarily Trade
receivables), investing and financing activities including Mutual Fund Investments, Investment in Debt Securities,
Bank Balance, Deposits with Bank, Security Deposits, Loans to Employees and other financial instruments.

The Company measures and manages its Credit Risk by diversification of its surplus funds into various mutual
fund schemes based on its investment policy.

Total Trade receivable as on March 31, 2026 is Rs. 2,542.62 Lakhs (March 31, 2025 - Rs. 2,247.51 Lakhs).
The Company does not have higher concentration of credit risks to a single customer.

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using
a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting
date wherever outstanding is for longer period and involves higher risk.

Refer note 9 Trade receivables for ageing of trade receivables which reflects credit risk exposure of the Company.

As per the provision matrix receivables are classified into different bucket based on the overdue period,
buckets range from 0 to 6 months, 6 months to 9 months, 12 months - 18 months and more than 18 months.
The norms of provisioning on the same range are from 25% - 100% (which was 25% - 100% in previous year).
The management, on a case to case basis may decide to provide or write off at a higher rate with reasons
whenever felt necessary.

(C) Liquidity Risk

Investments, Cash and Cash Equivalent and Bank Deposit:

Credit Risk on cash and cash equivalent, deposits with the banks/financial institutions is generally low as the
said deposits have been made with the Scheduled Commercial Banks. Investments of surplus funds are made
only based on Investment Policy of the Company. Investments primarily include investment in units of mutual
funds, Bonds issued by PSU Banks etc. These Mutual Funds and Counterparties have low credit risk.

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due.
The cash flows and liquidity of Company is monitored under the control of the management. The objective is
to ensure that Company's surplus funds are not kept idle and invested in the financial instruments only after
adequate review of such instrument and approval of the management.

The Company manages liquidity risk by maintaining adequate reserves, continuously monitoring forecasted
and actual periodic cash requirement and matching the maturity profiles of financial assets and liabilities.

The Company generally has investments and liquids funds more than its forecasted and current liabilities and
has not faced shortage of funds at any point of time. The Liquidity risk on the Group is very less.

The table below summarizes the maturity profile of the Company's financial liabilities & financial assets based
on contractual undiscounted payments.

NOTE 40: CAPITAL MANAGEMENT

The Company has a cash surplus position and has no capital other than Equity. The Company is not exposed to any
regulatory imposed capital requirements.

The cash surplus is currently invested in income generating Mutual funds units, Fixed Deposits and Government
Securities which in line with its Investment Policy. Safety of capital is of prime importance to ensure availability of
capital for operations. Investment objective is to provide safety and adequate return on surplus funds.

The Company does not have any borrowings.

NOTE 41: MICRO, SMALL AND MEDIUM ENTERPRISES

Under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) which came into force from
October 2, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises.

NOTE 46

(a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.

(b) No funds have been received by the company from any person(s) or entity(ies), including foreign entities
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the company shall,
whether, 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 provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

NOTE 47: SEGMENT REPORTING

In accordance with the requirements of Ind AS 108 “Operating Segments”, the Company has disclosed details in the

consolidated financial statements.

NOTE 49 LABOUR CODE

On 21st November 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019,
the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and
Working Conditions Code, 2020 - Consolidating 29 existing labour laws. The Ministry of Labour & Employment
published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations.
The Company has considered restructured compensation of its employees with effect from April 1, 2026, and
assessed the impact of changes, consistent with the Labour Codes, draft rules and FAQs and legal opinion.
The incremental gratuity impact of Rs. 58.05 lakhs, arising primarly from the change in wage definition has been
recognized under Employee Benefit Expenses for the year ended 31st March 2026. The Management will continue
to track and evaluate the impact of the rules notified by the Central/State Government post 31 March 2026 and
consider the appropriate accounting effect in the relevant periods, as needed.