1. Company Overview

BSE Limited (Formerly known as Bombay Stock Exchange Limited) hereinafter referred to as the “Exchange” or “the Company”, established in 1875, is Asia's first Stock Exchange and one of India's leading exchange. The registered office of the Company is located at 25th floor, P. J. Towers, Dalal Street, Mumbai 400 001, Maharashtra, India. Over the past 150 years, BSE has provided platform for capital-raising, trading in equity, debt instruments, derivatives, mutual funds, and equities in small and medium enterprises (SMEs). Pursuant to the BSE (Corporatization and Demutualization) Scheme, 2005 (the Scheme), notified by the Securities and Exchange Board of India (“SEBI”) on May 20, 2005, the Exchange completed demutualization and Corporatization in May 2007, separating ownership and management.

The equity shares of the Company are listed on the National Stock Exchange of India Limited (NSE).

The standalone financial statements were authorized for issue by the Company's Board of Directors on May 06, 2025.

2. Material Accounting Policies2.1. Basis of Preparation and Presentation2.1.1. Statement of Compliance

The standalone financial statements as at and for the year ended March 31,2025 have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III).

2.1.2. Basis of Measurement

The standalone financial statements have been prepared on a historical cost convention and on an accrual basis, except for certain items measured at fair value as required by relevant Ind AS:

i) Financial assets and financial liabilities measured at fair value (refer to accounting policy on financial Instruments);

ii) Defined benefits and other long-term employee benefits.

2.1.3. Functional and Presentation Currency

The standalone financial statements of the Company are presented in Indian Rupees, the functional currency of the Company. All financial information is rounded to the nearest Lakh, except share and per share data, unless otherwise stated.

2.1.4. Use of Estimates and Judgment

The preparation of standalone financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, expenses, disclosure of contingent assets, and contingent liabilities. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed periodically. Impact of revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, significant areas of estimation, uncertainty, and critical judgments that have the most significant effect is included in the following notes:

(i) Defined employee benefit assets/liabilities determined based on the present value of future obligations using actuarial assumptions.

(ii) Depreciation and amortization expenses: The charge in respect of depreciation is computed based on estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful life and residual values of the Company's assets at the end of its useful life are estimated by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The useful life is estimated based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

(iii) Impairment of trade receivables: The Company estimates the probability of collection of accounts receivable by analyzing historical payment patterns, customer status, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances is made.

(iv) Fair value measurement of financial instruments: Fair value of an unquoted equity instruments is computed using discounted cash flow model or recent transaction in the instrument between two independent parties. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility, the probabilities of the various estimates within the range can be reasonably assessed and are used in management's estimate of fair value for these unquoted equity investments (refer Note 33).

2.1.5. Dividend Distribution

The Company recognises a liability to pay dividend when the distribution is authorised, and the distribution is no longer at the discretion of the Company. As per the Indian corporate laws, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

2.2. Summary of Material Accounting Policies2.2.1. Financial instruments Financial assets

Initial Recognition and measurement

Financial assets are recognized initially at fair value plus transaction costs attributable to the acquisition of the financial asset, except for those measured at fair value through profit or loss (FVTPL). If the fair value of a financial asset at initial recognition differs from the transaction price, the difference between the fair value and the transaction price is recognised as a gain or loss in the Standalone Statement of Profit and Loss, if the fair value is determined through a quoted market price (i.e. Level 1 fair value) or valuation technique that uses observable market data (i.e. Level 2 fair value). For other case, the difference is deferred and recognised as a gain or loss in the Standalone Statement of Profit and Loss only to the extent that such gain or loss arises due to a change in the factor that market participants take into account when pricing the financial asset.

Trade receivables without a significant financing component are measured at transaction price under Ind AS 115 “Revenue from Contracts with Customers”.

Subsequent Measurement

For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:

i. The Company's business model for managing the financial asset and

ii. The contractual cash flow characteristics of the financial asset:

Based on these criteria, the Company classifies its financial assets into the following categories:

(a) Financial assets (debt instrument) at amortized cost: This category applies to investment in interest bearing debt instruments, trade receivables, security deposits, cash and cash equivalents, employee and other advances and eligible current and non-current assets. Financial assets in the nature of debt instruments are subsequently measured at amortised cost using the effective interest method. The corresponding effect of the amortisation under the effective interest method is recognised as interest income over the relevant period of the financial asset. The amortised cost of a financial asset is adjusted for loss allowance, if any.

(b) Equity instruments in subsidiaries and associates: Measured at cost less provision for impairment loss, if any.

(c) Financial assets measured at fair value through profit or loss (FVTPL): This is a residual category applied to all other investments of the Company. Such financial assets are subsequently measured at fair value at each reporting date and changes in fair value is recognised in the Standalone Statement of Profit and Loss.

Financial Liabilities

Initial Recognition and Measurement

All financial liabilities are initially recognized at fair value minus transaction costs that are attributable to the acquisition of the financial liability, except for those measured at fair value through profit or loss (FVTPL). This applies to deposits received, trade and other payables.

Subsequent Measurement

All financial liabilities are subsequently measured at amortized cost using the effective interest method, except liabilities represented by contingent consideration.

Fair Value of Financial Instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.

2.2.2. Earmarked Funds

Earmarked Funds represent deposits, margins, etc. held for specific purposes, such as Investor services funds (ISF), deposits received from members and corporates, etc. These amounts are invested and the same are earmarked in the Balance Sheet. Investment income earned and gain/(loss) in Fair Value on such financial instruments is credited to respective earmarked liabilities and not routed through Standalone Statement of Profit and Loss.

2.2.3. Expected Credit Loss

Financial assets carried at amortised cost: The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment loss. For trade receivable, the simplified approach is used, recognizing lifetime ECLs at each reporting date, right from its initial recognition.

2.2.3. Expected Credit Loss (Contd.)..

For other financial assets and risk exposure 12-month ECL is used to provide for impairment loss unless there is a significant increase in the credit risk since initial recognition, in which case lifetime ECL is used. If credit quality of the instrument improves in subsequent period such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. Financial assets measured at amortised cost, contractual revenue receivable: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

Impairment of equity investments measured at cost

Investments in subsidiaries are measured at cost and tested for impairment at the end of each reporting period. Any impairment loss is recognized in the Standalone statement of profit and loss, if the amount of impairment loss decreases subsequently then the previously recognized impairment loss is reversed in the Standalone statement of profit and loss.

2.2.4. Investment Income

Investment income consists of interest income on funds invested, dividend income and gains on the disposal of financial assets measured at FVTPL and amortized cost.

Interest income on Financial instruments is recognized as it accrues in the Standalone Statement of Profit and Loss, using the effective interest rate (EIR) method and interest income on deposits with banks is recognized on a time proportion accrual basis taking into the account the amount outstanding and the rate applicable.

Dividend income is recognized in the Profit or Loss on the date that the Company's right to receive payment is established.

2.2.5. Property, Plant and Equipment

(a) Recognition and measurement: Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. The cost comprises the purchase price and any cost attributable to bringing the assets to its working condition for its intended use.

Amounts paid in advance towards the acquisition of property, plant and equipment remaining outstanding at reporting date and the cost of property, plant and equipment not ready for intended use before such date, are disclosed under capital work-in-progress.

(b) Depreciation: The Company depreciates property, plant, and equipment over the estimated useful life on a written down value method from the date the assets are ready for intended use. The estimated useful life of property, plant and equipment are as follows:

Freehold land is not depreciated.

Depreciation methods, useful life and residual values are reviewed at each reporting date, with the effect of any changes in estimate accounted for on a prospective basis.

When parts of an item of property, plant and equipment have different useful life, they are accounted for as separate items (major components) of property, plant and equipment. Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably.

(c) Derecognition: The cost and related accumulated depreciation are eliminated from the standalone financial statements upon disposal or when no future economic benefits are expected and gain or loss from such disposition of the asset are recognized in the standalone statement of profit and loss. The date of disposal is the date when recipient obtains control of the item in accordance with the requirements for determining when a performance obligation is satisfied as per Ind AS 115.

The estimated useful life of assets for the current and comparative period of investment property is as follows:

Category Useful life

Buildings 60 years

Freehold land is not depreciated.

Investment property is derecognised upon disposal or when no future economic benefits are expected from the property. Any gain or loss arising on derecognition of the investment property is included in the Standalone statement of profit and loss in the period in which the investment property is derecognised.

2.2.7. Intangible Assets

The intangible assets are assessed as having either finite or indefinite useful lives.

Intangible assets with finite useful life, assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective estimated useful lives on a written down value method, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is determined based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.

2.2.8. Employee Benefits

a) Gratuity:

In accordance with the Payment of Gratuity Act, 1972, the Company provides for a lump sum payment to eligible employees at retirement or termination of employment based on the last drawn salary and years of employment with the Company. The Company's obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using the projected unit credit method.

Actuarial gains or losses are recognised in other comprehensive income. Further, the profit or loss does not include an expected return on plan assets. Instead, net interest recognised in the statement of profit or loss is calculated by applying the discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the discount rate is recognised as part of the remeasurement of net defined liability or asset through other comprehensive income.

Remeasurements comprising actuarial gains or losses and return on plan assets (excluding amounts included in net interest on the net defined benefit liability) are not reclassified to the statement of profit and loss in subsequent periods.

b) Compensated absences:

The employees of the Company are entitled to compensated absences. The employees can carry forward a portion of the unutilized accumulated compensated absences and utilise it in future periods, and the Company provides cash for remaining unutilized leaves. The Company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absences as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period. The Company recognises accumulated compensated absences based on actuarial valuation. Nonaccumulating compensated absences are recognised in the period in which the absences occur. The Company recognises actuarial gains and losses immediately in the statement of profit and loss.

c) Provident fund, pension fund, and new national pension scheme:

The Company offers its employees defined contribution plan in the form of a provident fund, family pension fund and new national pension scheme. The Company recognises contribution made towards the provident fund, family pension fund, and new national pension scheme in the Statement of Profit and Loss.

The employer and employees' contribution to the provident fund is managed by BSE Employees' Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law. The remaining portion is contributed to the government administered pension fund. The rate at

2.2.8. Employee Benefits (Contd.)..

which the annual interest is payable to the beneficiaries by the trust is being administered by the Government. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

2.2.9. Provisions, Contingent Liabilities and Contingent Assets

Provisions for onerous contracts are recognised when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for onerous contracts are measured at the present value of lower of the expected net cost of fulfilling the contract and the expected cost of terminating the contract.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are recognized when economic outflow is probable and disclosed when economic outflow is possible. Contingent assets are not disclosed but recognized when economic inflow is certain.

2.2.10. Revenue

The Company applies Ind AS 115, Revenue from Contracts with Customers, which establishes a comprehensive framework for determining whether, how much, and when revenue is to be recognised.

The Company derives revenue primarily from Securities Services (consisting of transaction charges), Services to Corporate (consisting of listing, book building fees and listing processing fees) and Data Dissemination. The Company recognises revenue when the significant terms of the arrangement are enforceable, services have been delivered and the collectability is reasonably assured. The method for recognizing revenues and costs depends on the nature of the services rendered:

a) Revenue

• Transaction charges - revenue in respect of transactions on the exchange platform is recognised at a point in time as an when the transaction occurs. The revenue is measured as per the specified rate.

• Listing fees & membership fees - revenue for listing and membership fees is recognised on a straight-line basis over the period to which they relate.

• Book building fees - revenue is recognised at a point in time upon completion of the book building process.

b) Other

Other services and fees - all other revenue is recognised in the period in which the performance obligation is satisfied over a period of time or point in time.

The Company accounts for volume discounts and pricing incentives to customers by reducing the amount of revenue recognised at the time of sale / services rendered. Revenues are shown net of goods and service tax and applicable discounts and allowances.

2.2.11. Leases:As a Lessee:

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

1. the contract involves the use of an identified asset;

2. the Company has substantially all of the economic benefits from use of the asset through the period of the lease; and

3. the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these shortterm and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the

underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-inuse) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.

For short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the lease term. As a Lessor:

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.

2.2.12.Core Settlement Guarantee Fund (Core SGF)

The Company contributes to Core Settlement Guarantee Fund in accordance with Securities Exchange Board of India (‘SEBI') (Stock Exchanges and Clearing Corporations) Regulation 2018. The Company contributes amounts pertaining to Minimum Required Contribution to the Core Settlement Guarantee Fund maintained by clearing corporation, which is determined as per SEBI guidelines. The contribution to Core Settlement Guarantee Fund is recorded as an expense.

2.2.13.Income tax

Income tax comprises current and deferred tax. Income tax expense is recognised in the Profit or Loss except to the extent it relates to items directly recognised in equity or in other comprehensive income.

a) Current income tax

Current income tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the taxable income for the period. The tax rates and tax laws used to compute the current tax amount are those that are enacted at the reporting date and applicable for the period. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.

b) Deferred income tax

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in standalone financial statements.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to utilize the deferred tax asset. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

2.2.14.Current / Non-current Classification

The Company present bifurcation of assets and liabilities in the balance sheet between current and non-current Assets: An asset is classified as current when it satisfies any of the following criteria:

(a) it is expected to be realised in, or is intended for sale or consumption in, the entity's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within twelve months after the balance sheet date; or

(d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for atleast twelve months after the balance sheet date;

(e) All other assets are classified as non-current.

Liabilities: A liability is classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in, the entity's normal operating cycle;

(b) it is held primarily for the purpose of being traded; it is due to be settled within twelve months after the balance sheet date; or

2.2.14. Current / Non-current Classification (Contd.)..

(c) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date;

(d) All other liabilities are classified as non-current.

Operating Cycle

Based on the nature of products / activities of the Company 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.

2.2.15. Cash & Cash Equivalents

Cash and cash equivalent in the balance sheet comprise balances at banks, in hand, and short-term deposits with an original maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value.

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