8. Provisions and contingent liabilities

The Company creates a provision when there is present obligation as a result of a past event and it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.
When the likelihood of outflow of resources is remote, no provision or disclosure is made.

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.

9. Leases

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

As a lessee

A. Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease
(i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost,
less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of
lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised,
initial direct costs incurred, and lease payments made at or before the commencement date less
any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the
shorter of the lease term and the estimated useful lives of the assets.

B. Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the
present value of lease payments to be made over the lease term. The lease payments primarily
comprise of fixed payments.

In calculating the present value of lease payments, the Company uses its incremental borrowing
rate at the lease commencement date because the interest rate implicit in the lease is not readily
determinable. After the commencement date, the amount of lease liabilities is increased to reflect the
accretion of interest and reduced for the lease payments made.

Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if
the Company changes its assessment of whether it will exercise an extension or a termination option.

10. Foreign currency translation

A. Functional and presentational currency

The standalone financial statements are presented in INR which is also functional currency of the Company.

B. Transactions and balances

Transactions in foreign currencies are initially recorded in the functional currency at the spot rate of
exchange ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are retranslated into the functional
currency at the spot rate of exchange at the reporting date. All differences arising on non-trading
activities are taken to other income/expense in the Statement of Profit and Loss.

Non-monetary items that are measured at historical cost in a foreign currency are translated using
the spot exchange rates as at the date of recognition.

11. Dividends on equity shares

The Company recognises a liability to make cash distributions to equity holders of the Company when the
distribution is authorised and the distribution is no longer at the discretion of the Company.

12. Fair value measurement

The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place in the accessible principal market or the most advantageous accessible market as applicable.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximising the use of relevant observable inputs and minimising
the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy into level 1, level 2 and level 3 based on the lowest level input
that is significant to the fair value measurement as a whole. (See note 32).

2D 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. For the year ended
31 March 2026, MCA has notified following amendments to the existing standards applicable to the Company

In May 2025, MCA notified amendments to:

A. Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, w.e.f. 1 April 2025

The amendment specifies how an entity should determine the exchange rate when foreign currency cannot
be obtained within a reasonable time and prescribes related disclosures. The Company has assessed the
impact of this amendment and concluded that it has no material impact on the financial statements.

In August 2025, MCA notified amendments to:

B. Ind AS 1 - Presentation of Financial Statements, applicable w.e.f. 1 April 2025

The amendment relates to classification of liabilities 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.

C. Ind AS 7 - Statement of Cash Flows, applicable w.e.f. 1 April 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. The Company has reviewed the amendment and
based on its evaluation has determined that it does not have any impact in its financial statements.

D. Ind AS 107 - Financial Instruments: Disclosures, applicable w.e.f. 1 April 2025

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 impact in its financial statements.

E. Ind AS 12 - Income taxes, applicable w.e.f. 1 April 2025

International Tax Reform - Pillar Two Model 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. The Company has
reviewed the amendment and based on its evaluation has determined that it does not have any
impact in its financial statements.

All investments in 5A and 5B above are within India.

1. On 8 January 2026, Bajaj Finserv Ltd., an associate company of BHIL, along with its promoter group entities completed the
acquisition of 23% equity stake held by Allianz SE in Bajaj General Insurance Ltd. (formerly known as Bajaj Allianz General Insurance
Company Ltd.) and Bajaj Life Insurance Ltd. (formerly known as Bajaj Allianz Life Insurance Company Ltd.).

Consequent to this transaction, BHIL, as a promoter group entity, acquired 17.56% equity stake in each of Bajaj General Insurance
Ltd. and Bajaj Life Insurance Ltd. for an amount aggregating to H 16,333.30 crore.

Subsequently, on 12 March 2026, pursuant to the buyback offer, Allianz SE tendered its entire remaining equity stake of 3% each
in the insurance subsidiaries. Following the completion of the buyback, the equity stake of the Company in each of the insurance
companies has increased from 17.56% to 18.10%.

As per Ind AS 109, these investments have been measured and classified at Fair Value Through Other Comprehensive Income
(FVTOCI.)

2. Disinvested in April 2026.

3. The open ended target maturity funds have a pre-determined maturity date. The Company had an intent to hold these investments
till maturity. The Company sold these ETFs and hence reclassified balance amount invested in ETFs at FVTPL.

ii) Contractual obligations

There are no contractual obligations to purchase, construct or develop investment properties.

There are no restrictions on the existence and realisability of investment properties or the remittance of
income and proceeds of disposal.

iii) Leasing arrangements

Certain investment properties are leased out to tenants under operating leases. Disclosure on future rent
receivable is included in note 30.

Estimation of fair value

The best evidence of fair value is current prices in an active market for similar properties.

Investment properties leased out by the Company are cancellable leases. The market rate for sale/purchase of
such premises are representative of fair values. The Company's investment properties are at a location where
active market is available for similar kind of properties. Hence fair value is ascertained on the basis of market
rates prevailing for similar properties in those location determined by an independent registered valuer and
consequently classified as a level 2 valuation.

b. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of H 10 per share. Each holder of
equity shares is entitled to one vote per share. The interim dividend declared by the Board of Directors
and the final dividend proposed by the Board of Directors and approved by the shareholders in the annual
general meeting is paid in Indian rupees. 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.

16 Other equity (Contd)
b Nature and purpose of reserve

Reserve fund in terms of section 45-IC(1) of the Reserve Bank of India Act, 1934

Reserve fund is created as per the terms of section 45-IC(1) of the Reserve Bank of India Act, 1934 as a
statutory reserve.

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for
limited purposes in accordance section 52 and other provisions of the Companies Act, 2013.

General reserve

General reserve is free reserve available for distribution as recommended by Board in accordance with
requirements of the Companies Act, 2013.

Retained earnings

Retained earnings represents the surplus in Profit and Loss Account that the Company has earned till date,
less any transfers to general reserve, special reserve, dividends or other distributions paid to shareholders,
reclassification of gain/(loss) on sale of FVTOCI equity instruments and balance of remeasurement of net
defined benefit plans. Retained earnings is a free reserve.

Equity instruments through other comprehensive income

The Company has elected to recognise changes in the fair value of certain investments in equity securities
in other comprehensive income. These changes are accumulated within the FVTOCI equity investments
reserve within equity. The Company transfers amounts from this reserve to retained earnings when the
relevant equity securities are derecognised.

Debt instruments through other comprehensive income

The Company recognises changes in the fair value of debt instruments held with business objective of
collect and sell in other comprehensive income. These changes are accumulated within the FVTOCI debt
instruments reserve within equity. The Company transfers amounts from this reserve to the Statement of
Profit and Loss when the debt instrument is sold. Any impairment loss on such instruments is reclassified
immediately to the Statement of Profit and Loss.

Hedge instruments through other comprehensive income

It represents the effective portion of the fair value of forward contracts designated as cashflow hedge.

Notes:

1. The funding for ongoing projects is delayed. Unspent amount pertaining to the commitments made
by the Company towards multi-year ongoing projects in progress has been transferred to a separate
Unspent CSR bank account of the Company. The amount transferred to the aforesaid Unspent CSR account
will be spent for the said projects within the permissible time limit. Accordingly, the Company has duly
complied with section 135 of the Act read with rules issued thereunder and the CSR policy of the Company.

2. The Company's corporate social responsibility initiatives are strategically focused on youth skilling, child
education, child health, child protection, and inclusion for persons with disabilities.

Valuation principles

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction in the principal (or most advantageous) market at the measurement date under current market
conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using
a valuation technique.

In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of
valuation techniques, as explained below

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets.
Quotes would include rates/values/valuation references published periodically by BSE, NSE etc. basis which
trades take place in a linked or unlinked active market. This includes traded bonds and mutual funds, as the
case may be, that have quoted price/rate/value.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using
valuation techniques which maximise the use of observable market data (either directly as prices or indirectly
derived from prices) and rely as little as possible on entity-specific estimates. 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. This is the case for unlisted equity securities, contingent consideration and indemnification
asset included in level 3.

Valuation techniques used to determine fair value

Valuation techniques used to determine fair value include

• Open ended mutual funds and certain bonds and debentures at NAV's/rates declared and/or quoted.

• Close ended mutual funds at NAV's declared by AMFI.

• For government debt securities, values with references to prevailing yields to maturity matching tenure,
quoted on sites of credible organisation such as FBIL (Financial Benchmark of India Ltd.).

• For other bonds and debentures values with references to prevailing yields to maturity matching tenures,
quoted on sites of credible organisation such as ICRA (Investment Information and Credit Rating Agency).

• Commercial papers and certificate of deposits, being short term maturity papers, amortised cost is assumed
to be the fair value.

33 Financial risk management

The Company has operations in India. Whilst risk is inherent in the Company's activities, it is managed through
a risk management framework, including ongoing identification, measurement and monitoring subject to risk
limits and other controls. The Company's activities expose it to credit risk, liquidity risk and market risk.

This note explains the sources of risk which the Company is exposed to and how the entity manages the risk.

The Board of Directors provide guiding principles for overall risk management, as well as policies covering
specific areas, such as, credit risk, liquidity risk, and investment of available funds. The Company's risk
management is carried out by its Risk Management Committee as per the policies approved by the Board
of Directors. Accordingly, the Company's Risk Management Committee identifies, evaluates and manages
financial risks.

A. Credit risk

The Company being an investment company, credit risk refers to the risk that a counterparty may default
on its contractual obligations leading to a financial loss to the Company. Credit risk primarily arises from
cash equivalents, financial assets measured at amortised cost, FVTOCI and FVTPL.

Credit risk management

For investments, the Company has an Investment Policy which allows the Company to invest only with
counterparties having a credit rating equal to or above AA- and P1 . The substantial portion of surplus
funds of the Company are invested with counterparties having a credit rating equal to or above AA .

The Company reviews the creditworthiness of these counterparties on an on-going basis. Counter party
limits maybe updated as and when required subject to approval of Board of Directors.

B. Liquidity risk

The Company's principal sources of liquidity are 'cash and cash equivalents' and cash flows that are
generated from operations. The Company believes that its working capital is sufficient to meet the financial
liabilities within maturity period. The Company has no borrowings.

Additionally, the Company has invested its surplus funds in debt securities or instruments of similar profile
thereby ensuring safety of capital and availability of liquidity as and when required. Hence, the Company
carries a negligible liquidity risk.

C. Interest rate risk

Interest rate risk is the fair value of future cash flows of a financial instrument which fluctuates because of
changes in the market interest rates. In order to optimise the Company's position with regards to interest
income, treasury team manages the interest rate risk by diversifying its portfolio across tenures.

D. Price risk

The Company's exposure to equity securities risk arises from investments held by the Company and
classified in the Balance Sheet as FVTOCI (see note 32).

To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio
across capitalisation sectors with large cap bias and active monitoring of the portfolio constituents and
news flow using relevant application tools. Diversification of the portfolio is in accordance with Investment
Policy of the Company.

Majority of Company's equity investments are publicly traded and are included in the NSE Nifty 200 index.

As regards investments in unlisted privately held companies, the fair valuations are largely dependent
on the investee company's ability to achieve desired outcomes which measure the performance of the
Company and bear on the valuation. Hence the key price risk emanates from performance shortfall due to
industry risks, policy changes and liquidity risk given the lower exit probability.

E. Other risk (Market risk)

The Company has deployed its surplus funds in equity, debt, money market and other instruments
(including through funds). The Company is exposed to price and volatility risk on such investments.

The Company has strategic asset allocation benchmarks and risk limits, including financial VaR and interest
rate and equity sensitivity limits. These limits are monitored and reported to the decision-making bodies.

Temporary market shocks are not considered to have material impacts on these Investments.

Nevertheless, the Company has invested its surplus funds primarily in debt instruments with CRISIL AAA
& STABLE A1 rating and thus the Company does not have significant risk exposure here.

34 Capital management

a) Objectives, policies and processes of capital management

The Company is cash surplus and has only equity capital. The Company operates as an Investment Company
and consequently is registered as a Non-Banking Financial Institution - Investment and Credit Company
('NBFC-ICC') with the Reserve Bank of India (RBI). On 12 November 2025, BHIL filed an application to
re-categorise the Company into an Unregistered Core Investment Company (CIC) from NBFC-ICC and the
same is currently under review by the Reserve Bank of India (RBI). The Company has realigned its investment
portfolio as per RBI's CIC guidelines.

The cash surpluses are currently invested in equity, debt, money market and other instruments
(including through funds) depending on economic conditions in line with Investment Policy set by the Management.
Safety of capital is of prime importance to ensure availability of capital for operations. Investment objective is to
provide safety and adequate return on the surplus funds.

The Company does not have any borrowings.

36 Schedule to Balance Sheet as on 31 March 2026 (Contd.)

Notes:

1. As defined in the Reserve Bank of India (Non-Banking Financial Companies -Acceptance of Public
Deposits) Directions, 2025

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

3. All notified Ind AS prescribed under section 133 of the Companies Act 2013 and Guidance Notes issued
by ICAI are applicable including for valuation of investments and other assets as also assets acquired in
satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/

NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as
long-term (amortised cost in the case of Ind AS) or current (fair value in the case of Ind AS) in (5) above.

36 Schedule to Balance Sheet as on 31 March 2026 (Contd.)

15. Miscellaneous Disclosures

a) Registration obtained from other financial sector regulators

Apart from RBI, the Company is also governed by Securities and Exchange Board of India and
Ministry of Corporate Affairs.

b) Disclosure of penalties imposed by RBI and other regulators

During previous year, no penalty was imposed by RBI or other regulators.

d) Ratings assigned by credit rating agencies and migration of ratings during the year

Not applicable

Note

The Company is a non-deposit taking/accepting NBFC. It does not carry out lending/securitisation activity.
Hence, there are 'Nil' values in respect of following disclosures -

1. Derivatives

• Forward rate agreement/interest rate swap

• Exchange traded interest rate (IR) derivatives

• Qualitative disclosures on risk exposure in derivatives

• Quantitative disclosures on risk exposure in derivatives

2. Securitisation

• Disclosures relating to securitised assets etc.

• Details of financial assets sold to securitisation/reconstruction company for asset reconstruction

• Details of assignment transactions undertaken by NBFCs

• Details of non-performing financial assets purchased/sold

3. Details of financing of parent company products

4. Details of single borrower limit (SBL)/group borrower limit (GBL) exceeded by the NBFC

5. Unsecured advances

6. Concentration of deposits, advances, exposures and NPAs

• Concentration of deposits (for deposit taking NBFCs)

• Concentration of advances

• Concentration of exposures

• Concentration of NPAs

• Sector-wise NPAs

• Movement of NPAs

7. Overseas assets (for those with joint ventures and subsidiaries abroad)

8. Off-balance sheet SPVs sponsored

9. Disclosure of customer complaints

10. Sectoral exposure and NPA disclosure

11. Intra group exposure with respect to borrowing and lending

12. Unhedged foreign currency exposure

13. Loans to directors, senior officers and relatives of directors

14. Comparison between provisions required under IRACP and impairment allowances made under Ind AS 109

37 Other notes

a. The Company has performed an assessment to identify transactions with struck off companies as at
31 March 2026 and no such company was identified.

b. No funds (which are material either individually or in the aggregate) 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, 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.

c. No funds (which are material either individually or in the aggregate) 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, directly or indirectly,
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Parties ('Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

d. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

e. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

f. Figures for the previous periods have been regrouped, wherever necessary, to make them comparable
with the current period.

38 Events after reporting date

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

39 Miscellaneous

Amounts less than H 50,000 have been shown at actual against respective line items statutorily required to

be disclosed.