A. Corporate information

Jio Financial Services Limited (the "Company”), with Corporate ID No. (CIN L65990MH1999PLC120918), was registered under Companies Act, 2013 with a fresh certificate of incorporation dated 25th July, 2023 issued by the Registrar of Companies, Maharashtra, Mumbai. The registered office of the Company is located at 1st Floor, Building 4NA, Maker Maxity, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra 400051, India.

The Company was a registered Non-Banking Financial Company - Systemically Important Non-Deposit taking Company as defined under section 45-IA of the Reserve Bank of India Act, 1934 with effect from 31st December, 1999 having registration number 13.01327. The Company was considered as an NBFC- Middle layer (NBFC-ML) pursuant to RBI Scale Based regulations. Pursuant to the certificate of registration and approval received from the Reserve Bank of India (RBI) on 09th July, 2024, the Company has been classified as a Non-Deposit Taking Systemically Important Core Investment Company (CIC-ND-SI) with effect from that date.

The equity shares of the Company are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), India.

B. Basis of preparation

B.1 Statement of compliance

The Standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015, (as amended from time to time) and notified under section 133 of the Companies Act, 2013 (referred to as "the Act”) along with other relevant provisions of the Act, the Master Direction - Reserve Bank of India (NonBanking Financial Companies - Registration, Exemptions and Framework for Scale Based Regulation) Directions, 2025 (as amended from time to time) and other guidelines issued by Reserve Bank of India (RBI) as applicable & amended from time to time and other accounting principles generally accepted in India. The Company uses accrual basis of accounting in preparation of financial statements other than statement of cash flows. The standalone financial statements have been prepared and presented on the going concern basis.

The accounting policies have been consistently applied, except in cases where a newly issued Ind AS is initially adopted or when a revision to an existing Ind AS requires a change in the accounting policy previously in use.

The standalone financial statements have been approved by the Company's Board of Directors and authorised for issue on 17th April 2026.

B.2 Presentation of standalone financial statements

The standalone balance sheet, standalone statement of profit and loss and standalone statement of changes in equity adhere to the format prescribed in the Division III to Schedule III of the Act. The standalone statement of cash flows is prepared and presented as per the requirements of Ind AS.

A summary of the material accounting policies and other explanatory information is provided in accordance with the Companies (Indian Accounting Standards) Rules, 2015 as notified under section 133 of the Act including applicable Indian Accounting Standards (Ind AS) and accounting principles generally accepted in India.

The standalone financial statements are presented in Indian Rupees (T) in crore except otherwise, which is also the functional currency of the Company, with rounding off to two decimals as permitted by Schedule III to the Act, unless otherwise indicated.

B.3 Basis of measurement

The standalone financial statements are prepared on the historical cost basis, except for certain financial assets and liabilities, which are measured at fair value at the end of each reporting period, and defined benefit plans - plan assets that are measured based on the Projected Unit Credit Method.

B.4 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

The Company measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as 'active' if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

If there is no quoted price in an active market, then the Company uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction.

The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price i.e., the fair value of the consideration given or received. If the Company determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique for which any unobservable inputs are judged to be insignificant in relation to the difference, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out.

While measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorized under different levels (Level 1, Level 2 or Level 3) in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 - inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs)

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of fair value hierarchy at the end of the reporting period during which the change occurred.

For the purpose of fair value disclosures, the company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. At each reporting date, the Management analyses the movements in the values of assets and liabilities, which are required to be remeasured or reassessed as per the Company's accounting policies.

C. Summary of material accounting policies

C.1 Revenue recognition

a. Interest income

Interest income is recognised in the standalone statement of profit and loss using the effective interest rate (EIR) method as per Ind AS 109 'Financial Instruments' on all financial assets measured at amortised cost, debt instruments measured at Fair Value through Other Comprehensive Income (FVOCI).

EIR is the rate that discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of the financial asset. The calculation of EIR includes all fees received between parties to the contract that are an integral part of the contract, transaction costs, and all other premiums or discounts.

Transaction costs include incremental costs that are directly attributable to the acquisition of the financial assets.

Interest income on credit impaired assets is recognised by applying the effective interest rate to the amortised cost (the gross carrying amount less impairment loss allowance) of the financial asset. If the financial asset is no longer credit-impaired, the Company reverts to calculate interest income on a gross basis.

Interest on the financial assets measured at Fair Value through Profit or Loss (FVTPL) is recognised at the contractual rate of interest.

Interest income on investments is recognised when it is certain that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on time basis, by reference to the principle outstanding and at the effective interest rate applicable.

b. Dividend income

Income from dividend on shares of corporate bodies and units of mutual funds (including FVOCI investments) is accounted when the Company's right to receive the dividend is established. Provided that in case of final dividend, the right to receive payment shall be considered as established only upon approval of the dividend by the shareholders in the Annual General Meeting.

c. Fees and commission income

Fees on value added services and products are recognised for the rendering of services and products to the customers.

Fee and commission income that are not directly linked to the sourcing of financial assets are recognised at point in time in the standalone statement of profit and loss when the right to receive the same is established.

d. Net gain/ loss on fair value changes:

The Company recognises unrealised gains or losses arising from changes in fair value of financial assets measured at FVTPL in the Standalone Statement of Profit and Loss. In case of a net gain, the same is recognised under "Net gains on fair value changes” under Revenue from operations and in case of a net loss, the same is recognised under Expenses.

Realised gains or losses arising on derecognition of financial instruments measured at FVTPL and debt instruments measured at FVOCI are recognised in the Statement of Profit and Loss.

Fair value changes on debt instruments measured at FVOCI are recognised in Other Comprehensive Income (OCI) and are reclassified to profit or loss on derecognition.

losses and foreign exchange gains and losses on monetary assets. Upon disposal, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to the standalone Statement of Profit and Loss.

Fair value gains and losses on such equity instruments are never reclassified to profit or loss and no impairment is recognised in profit or loss. Dividends are recognised in profit or loss unless they clearly represent a recovery of part of the cost of the investment, in which case they are recognised in OCI. Cumulative gains and losses recognised in OCI are transferred to retained earnings at the disposal of an investment.

d. Reclassification of financial assets

Financial assets are reclassified subsequent to their recognition only if the Company changes its business model for managing those financial assets. Changes in business model are made and applied prospectively from the reclassification date which is the first day of immediately next reporting period following the changes in business model in accordance with principles laid down under Ind AS 109 "Financial Instruments”.

e. Derecognition of financial assets

Financial assets are derecognised when:

• the contractual rights to receive cash flows from the asset have expired or

• it transfers the right to receive the contractual cash flows in a transaction in which either:

- substantially all of the risks and rewards of ownership of the financial asset are transferred; or

- the Company neither transfer nor retains substantially all of the risks and rewards of ownership and it does not retain control of financial asset.

The Company enters into transactions whereby it transfers assets recognised on its balance sheet but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised.

On derecognition of a financial asset in its entirety, the difference between (a) the carrying amount (measured at the date of derecognition) and (b) the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss recognised in OCI, is recognised in standalone statement of profit and loss.

Any interest in transferred financial assets that qualify for derecognition that is created or retained by the Company is recognised as a separate asset or liability.

Financial assets are written off (either partially or full) when there is no reasonable expectation of recovering a financial asset in its entirety or a portion thereof. However, financial assets that are written off could still be subject to enforcement activities under the Company recovery procedures, considering legal advice where appropriate. Any recoveries made are recognised in the standalone statement of profit and loss on actual realisation from customer.

f. Investment in subsidiaries, associates and joint venture

The Company has accounted for its investments in subsidiaries, associates and joint ventures at cost less impairment loss (if any). Investments are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable.

g. Impairment of financial assets

The Company recognises loss allowances for expected credit loss on:

• financial assets that are debt securities at cost (Refer note 4.1);

^• financial assets measured at AC;

• financial assets measured at FVOCI- debt instruments

Expected credit losses are measured based on an assessment of the credit risk associated with financial asset. This assessment considers historical experience, current economic conditions, and forward-looking information relevant to the collectability of contractual cash flows.

• General approach of ECL

Both Lifetime ECLs and 12-month ECLs are calculated on either an individual basis or a collective basis, depending on the nature of the underlying portfolio of financial instruments.

Financial assets where no significant increase in credit risk has been observed are considered to be in 'stage 1' for which a 12-month ECL is recognised. Financial assets that are considered to have significant increase in credit risk are considered to be in 'stage 2' and those which are in default or for which there is objective evidence of impairment are considered to be in 'stage 3'. Lifetime ECL is recognised for stage 2 and stage 3 financial assets.

The Company has established a policy to perform an assessment, at the end of each reporting period, of whether a financial instrument's credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument.

Probability-Weighted Approach: Expected credit losses are calculated using a probability-weighted approach, considering a range of possible outcomes and their associated probabilities. This approach incorporates both the likelihood of default and the severity of loss in the event of default.

The Company maintains allowances for expected credit losses, which are deducted from the carrying amount of the financial asset to present the net carrying amount on the balance sheet. The allowance is adjusted through standalone statement of profit and loss to reflect changes in expected credit losses.

• Simplified approach

The Company follows a 'simplified approach' for recognition of impairment loss allowance on trade receivables that do not contain a significant financing component. The application of simplified approach does not require the Company to track changes in credit risk. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward-looking estimates are analysed.

• ECL on debt instruments measured at FVOCI

The ECL for debt instruments measured at FVOCI does not reduce the carrying amount of these financial assets in the balance sheet, which remains at fair value. Instead, an amount equal to the allowance that would arise if the assets were measured at amortised cost is recognised in OCI as an accumulated impairment amount, with a corresponding charge to the standalone statement of profit and loss. The accumulated loss recognised in OCI is recycled to the standalone statement of profit and loss upon derecognition of the assets.

Presentation of allowance for ECL in the Balance Sheet

Loss allowances for ECL are presented in the Balance Sheet as a deduction from the gross carrying amount of the financial assets measured at amortised cost and financial assets that are debt securities;

Financial liabilities

Financial liabilities issued by the Company are classified according to substance of the contractual arrangements entered into and the definitions of financial liabilities and an equity instrument.

a. Initial recognition and measurement

All financial liabilities are recognised at fair value and in case of borrowings and payables, net of directly attributable cost. Fees of recurring nature are directly recognised in the standalone statement of profit and loss as finance cost.

b. Subsequent measurement

The Company measured all financial liabilities at amortised cost using the effective interest method.

c. Derecognition

Financial liability (or a part of a financial liability) is derecognised from the Company's balance sheet when the obligation specified in the contract are discharged, cancelled or have expired. Where 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 a derecognition of the original liability and the recognition of a new liability. The difference between the carrying value of the original financial liability and the consideration paid is recognised in the standalone statement of profit and loss. As at the reporting date, the Company does not have any financial liabilities which have been derecognised.

Equity Instruments

Ordinary shares are classified as Equity. An equity instrument is a contract that evidences a residual interest in the Company's assets after deducting all its liabilities. Incremental cost directly attributable to the issuance of the new equity shares and buy-back of equity shares are shown as deduction from the Equity net of any tax effects.

a. Compound financial instruments

The Company recognises separately the components of compound financial instrument that (a) creates a financial liability of the entity and (b) grants an option to the holder of the instrument to convert it into an equity instrument of the entity.

b. Offsetting of financial instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the Balance Sheet only where the Company has legally enforceable right to set off the amount and Company intends, either to settle them on a net basis or to realize the asset and settle the liability simultaneously as permitted by Ind AS. Income and expenses are presented on a net basis only when permitted under Ind AS, or for gains and losses arising from a Company of similar transactions such as in the Company's trading activity.

C.3 Cash and cash equivalents

Cash and cash equivalents comprise of cash on hand, cash at bank, short-term deposits and short-term highly liquid investments with original maturities of three months or less. Which are held for the purpose of meeting short-term cash commitments that are readily convertible to known amounts 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.

Cash and cash equivalents are carried at amortised cost in the standalone balance sheet.

C.4 Tax expenses

The tax expenses for the period comprises of current tax and deferred tax. Tax is recognised in the standalone statement of profit and loss, except to the extent that it relates to items recognised in the other comprehensive income or items recognised directly in equity. In which case, the tax is also recognised in other comprehensive income or equity.

a. Current tax

Current tax comprises the expected amount of tax payable or receivable on the taxable income or loss for the year determined in accordance with Income Tax Act, 1961 and any adjustment to the tax payable or receivable in respect of previous years.

The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

b. Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the standalone financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax losses can be utilised.

Deferred tax items in correlation to the underlying transaction relating to Other comprehensive income or Equity are recognised in Other comprehensive income or Equity respectively.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax assets to be recovered.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

c. Indirect Tax

Goods and Services tax input credit is recognised for in the books in the period in which the supply of goods or service received is recognised and when there is no uncertainty in availing/utilising the credits. Goods and Services Tax paid is on acquisition of assets or on incurring expenses. Expenses and assets are recognised net of the Goods and Services Tax paid, except:

When the input tax credit for tax incurred on a purchase of assets or services cannot be availed, in which case the tax paid is recognised as part of the cost of acquisition of the asset or as part of the respective expense item, as applicable.

When receivables and payables are recorded with the amount of tax included.

The net amount of tax recoverable from, or payable to, the taxation authority is included as a part of receivables or payables in the Balance Sheet.

C.5 Property, plant and equipment

Property, Plant and Equipment (PPE) are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

The costs of an item of Property, Plant and Equipment (PPE) are recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of that item are depreciated separately.

Property, plant and equipment not ready for the intended use on the date of Balance Sheet are disclosed as 'Capital work-in-progress'. Advances given towards acquisition of property, plant and equipment outstanding at each balance sheet date are disclosed in other non-financial assets.

Administrative and other general overhead expenses that are specifically attributable to the acquisition of Property, Plant and Equipment are allocated and capitalised as a part of the cost of the respective Property, Plant and Equipment. Expenses on repair and maintenance are charged to the standalone statement of profit and loss during the year in which such costs are incurred.

Depreciation on property, plant and equipment is provided using straight line method on cost. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Act.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

PPE is derecognised on disposal (i.e. at the date the recipient obtains control) or when no future economic benefits are expected from its use.Any Gains or losses arising from derecognition of a property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the standalone statement of profit and loss when the asset is derecognised.

C.6 Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets, and the arrangement conveys a right-to-use the asset or assets, even if that right is not explicitly specified in an arrangement. The Company, as a lessee, recognises a Right-of-Use (ROU) asset and a lease liability for its enforceable leasing arrangements, if the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the company has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease if that rate can be readily determined. If that rate cannot be readily determined, the Company uses an incremental borrowing rate.

Costs including depreciation are recognised as an expense in the standalone statement of profit and loss. Initial direct costs are recognised immediately in the standalone statement of profit and loss.

For short-term and low value leases the company recognises the lease payments as an operating expense on a straightline basis over the lease term. None of the agreements and contracts of the Company are resulting into ROU asset and lease liability.

C.7 Intangible assets

Intangible Assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the Company and the cost of the asset can be measured reliably. Other intangible assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less accumulated amortisation/depletion and impairment losses, if any. Such cost includes purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the other intangible assets.

Administrative and other general overhead expenses that are specifically attributable to the acquisition of other intangible assets are allocated and capitalised as a part of the cost of the other intangible assets. Expenses on software support and maintenance are charged to the standalone statement of profit and loss during the year in which such costs are incurred.

An intangible asset is derecognised on disposal or when no future economic benefits are expected from its use. Gains or losses arising from derecognition of another intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the standalone statement of profit and loss when the asset is derecognised.

Intangible Assets are amortised using straight line method on cost over the useful life of the assets.

Other intangible assets not ready for the intended use on the date of Balance Sheet are disclosed as 'Intangible assets under development'.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment, whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for other intangible assets with a finite useful life are reviewed at each reporting date. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.

C.8 Provision and Contingent liabilities/ assets

• Provisions

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.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, considering the risks and uncertainties surrounding the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

• Contingent liabilities/assets

A possible obligation that arises from past events and 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 or; present obligation that arises from past events where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or the amount of the obligation cannot be measured with sufficient reliability are disclosed as contingent liability and not provided for.

Claims against the Company, where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

A contingent asset is a possible asset that arises from past events and whose existence 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. Contingent assets are neither recognized nor disclosed in the financial statements. They are disclosed only when an inflow of economic benefits is probable.

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

C.9 Impairment of non-financial assets

The Company assesses on each reporting date whether there is any indication that any Property, Plant and Equipment and Intangible Assets or group of assets, called Cash generating units (CGU)may be impaired. If any such indication exists, the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to which the asset belongs.

An impairment loss is recognised in the standalone statement of profit and loss to the extent, asset's carrying amount exceeds its recoverable amount. The recoverable amount is higher of an asset's fair value less cost of disposal and value in use. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risk specific to the assets. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount and the impairment loss is recognised in the standalone statement of profit and loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount such that the increased carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised for the asset (or cash-generating unit) in prior years. The reversal of an impairment loss is recognised in the standalone statement of profit and loss.

C.10 Employee benefits expense

1. Short-term employee benefits

Liabilities for employee benefits, including non-monetary benefits that are expected to be settled within 12 months after the end of the period in which the employees render the related service are the amounts expected to be paid when the liabilities are settled. Short-term employee benefits are recognised in the standalone statement of profit and loss in the period in which the related service is rendered.

2. Long-term employee benefits

The expected costs of other long-term employee benefits, such as long-term service incentive plan benefits (not being share-based payments), are accrued over the requisite service period which is typically the vesting period.

• Post-employment benefits

• Defined contribution plans

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 recognised as an employee benefit expense in the standalone statement of profit and loss in the periods during which the related services are rendered by the employees.

The Company pays provident and other fund contributions to publicly administered funds as per related Government regulations. The Company has no further obligation other than the contributions payable to the respective funds.

^• Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company's net obligation in respect of defined benefit plans is calculated separately for each plan annually by a qualified actuary using the project unit credit method and spread over the period during which the benefit is expected to be derived from employees' services.

Remeasurement gains or losses arising from experience adjustments and changes in actuarial assumptions are recognised directly in other comprehensive income in the period they occur and are subsequently transferred to retained earnings.

• Leave encashment/compensated absences

The Company's net obligation in respect of long-term employee benefits other than post-employment benefits is the entitlement to compensated absences. The expected cost of accumulated compensated absences is determined by actuarial valuation using the projected credit method for the unused entitlement accumulated at the balance sheet date.

The benefits are discounted using the market yields at the end of the balance sheet date that has terms approximating the terms of the related obligation. Remeasurements resulting from experience adjustments and changes in actuarial assumptions are recognised in standalone statement of profit and loss.

C.11 Earnings per share

The Company reports basic and diluted earnings per share in accordance with Ind AS 33 on Earnings per share. Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year adjusted for bonus element in equity share. Diluted earnings per share adjust the figures used in the determination of basic earnings per share to consider the conversion of all dilutive potential equity shares.

C.12 Foreign currencies transactions and translation

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction or on average rate if the average rate approximates the actual rate on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency's closing rate of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in the standalone statement of profit and loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the exchange rates at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. The gain or loss arising on translation of nonmonetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss, respectively).

Foreign exchange differences recognized in OCI are accumulated in equity (as exchange differences on translating the standalone financial statements of a foreign operation), except to the extent of exchange differences allocated to NCI.

In the case of an asset, expense or income where a nonmonetary advance is paid/ received, the date of transaction is the date on which the advance was initially recognised. If there were multiple payments or receipts in advance, multiple dates of transactions are determined for each payment or receipt of advance consideration.

C.13 Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing the performance of the operating segments of the Company. The reporting of segment information is the same as provided to the management for the purpose of the performance assessment and resource allocation to the segments.

Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss of the Company. Revenue, expenses, assets and liabilities which are related to the Company as a whole and are not allocable to segments on a reasonable basis have been included under unallowable revenue/ expenses/ assets or liabilities.

C. 14 Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made, or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

D. Critical accounting judgements and key sources of estimations uncertainty

The preparation of the Company's standalone financial statements requires management to make judgements, estimates and assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the accompanying disclosures. Actual results may differ from these estimates. Uncertainty about these assumptions and estimates could result in outcomes that requires a material adjustment to the carrying amount of assets or liabilities affected in the subsequent financial year. Accounting estimates and underlying assumptions are reviewed on an ongoing basis. Revisions of estimates are recognised prospectively.

Changes in accounting estimates - Such changes, if any, are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision & future periods if it affects both current & future periods.

D. 1 Material Management Judgements:

Expected Credit Loss

The measurement of impairment losses across all categories of financial assets requires the estimation of the amount and timing of future cash flows when determining impairment losses and the assessment of a significant increase in credit risk. These estimates are driven by several factors, changes which can result in different levels of allowances. It has been the Company's policy to regularly review its models in the context of actual loss experience and adjust when necessary.

Establishing the criteria for determining whether credit risk on a financial asset has increased significantly since initial recognition, determining the methodology for incorporating forward looking information into the measurement of ECL and selection and approval of models used to measure ECL.

Classification of financial assets

Assessment of the business model within which the assets are held and assessment of whether the contractual terms of the financial asset are SPPI on the principal amount outstanding.

D.2 Use of estimates

The preparation of standalone financial statements in conformity with Ind AS requires management of the Company to make judgements, estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the standalone financial statements and the reported amount of income and expenses for the reporting period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in the standalone financial statements have been disclosed as applicable in the respective notes to accounts.

Accounting estimates can change from period to period. Future results could differ from these estimates. Appropriate changes in estimates are made as the Management of the respective companies becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the standalone financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the standalone financial statements.

Information about assumptions and estimation uncertainties at the reporting date has been stated below:

• Impairment of financial instruments (Note 3 and Note 4): impairment of financial instruments: determination of inputs into the ECL measurement model, including key assumptions used in estimating recoverable cash flows and incorporation of forward-looking information;

• Determination of the fair value of financial instruments with significant unobservable inputs (Note 4): measurement of the fair value of financial instruments with significant unobservable inputs;

• Useful life of property, plant, equipment and intangibles;

• Recognition and measurement of provisions and contingencies (Note 29): key assumptions about the likelihood and magnitude of an outflow of resources;

• Provision of income and recognition of deferred tax (Note 12): availability of future taxable profit against which deductible temporary differences;

• Measurement of defined benefit obligations (Note 34): key actuarial assumptions;

• The Company's EIR methodology.

E. Recent Accounting 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. MCA has notified amendments G.S.R. 291(E)-The Companies (Indian Accounting Standards) Amendment Rules 2025 dated 7th May 2025 & G.S.R.549(E)- The Companies (Indian Accounting Standards) Second Amendment Rules 2025 dated 13th August 2025 to the existing standards applicable to the Company for the year ended 31st March 2026.

The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any impact in the standalone financial statement.