2.2.12 Provisions, Contingent liabilities and Contingent
assets

a) Provisions are recognised when the Company
has a present obligation (legal or constructive) as
a result of a past event and it is probable that an
outflow of economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation.

b) 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, taking into account the risks and
uncertainties surrounding the obligation.

c) 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.

d) Provisions, contingent liabilities and contingent
assets are reviewed at each reporting date.

2.2.13 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:

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

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

iii. the Company has the right to direct the use ofthe 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 short-term
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.

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.

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.

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.

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 term deposit 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.

2.2.14 Investment income

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

b) Interest income on bond, STRIPS and Government
Securities is recognised as it accrues in the
statement of Profit or Loss, using the effective
interest method and interest income on deposits
with banks is recognised on a time proportion
accrual basis taking into the account the amount
outstanding and the rate applicable.

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

2.2.15 Income tax

Income tax comprises current and deferred tax. Income tax
expense is recognized in profit or loss except to the extent
it relates to items directly recognized in equity or in other
comprehensive income.

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 settle the liability simultaneously.

Deferred tax

Deferred tax is recognised using the balance sheet
approach. Deferred 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.

Deferred tax assets are recognised to the extent that it
is probable that taxable profit will be available against
which the deductible temporary differences, and the
carry forward of unused tax credits and unused tax losses
can be utilized. Deferred tax liabilities are recognised for
all taxable temporary differences. Deferred tax assets
and liabilities are classified as non-current assets and
liabilities.

Deferred 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.

Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss (in other
comprehensive income). Deferred tax items are recognised
in correlation to the underlying transaction in OCI.

2.2.16 Earnings per share (EPS)

The Company reports basic and diluted earnings per
share in accordance with Ind AS 33 on Earnings per share.

Basic earnings per share is computed using the weighted
average number of equity shares outstanding during the
period. There are no instruments which have effect of
dilution on the EPS.

2.2.17 Operating Cycle

Based on the nature of products / activities of the
Company and the normal time between acquisition of
assets and their realization 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.

Fair value hierarchy

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

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

There were no transfers between Level 1, 2 and 3 during the years.

The management assessed that fair value of cash and bank balances, fixed deposits, trade receivables, and trade payables and

other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of

these instruments.

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

i. The fair value of the quoted bonds and mutual fund are based on price quotations at reporting date. The fair value of
unquoted instruments and other financial liabilities, as well as other non-current financial liabilities is estimated by
discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

ii. The fair values of the unquoted equity shares have been estimated using a discounted cash flow model. The valuation
requires the 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 the management's estimate of fair value for these unquoted equity investments.

Disclosure for Level 3

The fair values of the unquoted equity shares have been estimated based on net asset method as per latest financials available.

Fair value measurements using significant unobservable inputs (level 3)

31. Financial Risk Management

The Company's principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is
to support its operations. The Company’s principal financial assets include trade and other receivables, and cash and short-term
deposits that derive directly from its operations.

The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk, market risk (including foreign currency
and interest rate risk) and regulatory risk. The Company's primary focus is to foresee the unpredictability of financial markets
and seek to minimize potential adverse effects on its financial performance. The Company's exposure to credit risk is influenced
mainly by the individual characteristic of each customer and the concentration of risk from the top few customers.

a. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company's receivables from customers and investment securities.
Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including
outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets.
The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit
quality of the counterparties, taking into account their financial position, past experience and other factors.

i. Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.

The demographics of the customer, including the default risk of the industry in which the customer operates, also has an
influence on credit risk assessment.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses.
The provision rates are based on days past due of various types of customers (i.e. issuers, DP (Depository Participants), RTA
(Registrar and Transfer agents), etc). The calculation reflects the probability-weighted outcome, the time value of money
and reasonable and supportable information that is available at the reporting date about past events, current conditions
and forecasts of future economic conditions. The maximum exposure to credit risk at the reporting date is the carrying
value of each class of financial assets. The Company evaluates the concentration of risk with respect to trade receivables
as low.

No customer has accounted for more than 10% of the receivables as at March 31, 2026 and revenue for the year ended
March 31, 2026.

No customer has accounted for more than 10% of the receivables as at March 31, 2025 and revenue for the year ended
March 31, 2025.

ii. Investments

The Company limits its exposure to credit risk by making investment in instruments having highest credit rating as per
the tresury investment policy. Further Treasury Investment Review Committee of the Company reviews the investment
portfolio on quarterly basis and recommends or provides suggestions to the management. The company does not expect

any losses from non-performance by these counter-parties, and does not have any significant concentration of exposures
to specific industry sectors.

b. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities
when due.

The Company's treasury department is responsible for liquidity, funding as well as settlement management. In addition,
processes and policies related to such risks are overseen by senior management. The management monitors the Company’s
net liquidity position through forecasts on the basis of expected cash flows.

c. Market risk

The Company's business, financial condition and results of operations are highly dependent upon the levels of activity in
the capital markets and in particular upon the delivery volume on stock exchanges, the number of listed securities, the
number of new listings and subsequent issuances and introduction of new services which will ease in doing business in
capital markets.

In addition to the above risk, market risk also include following:
i. Foreign Currency risk

The Company's foreign currency risk arises in respect of foreign currency transactions. The Company's foreign currency
expenses are insignificant, while a significant portion of its costs are in Indian rupees.

As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company's expenses
measured in rupees may decrease. Due to lessor quantum of expenses from foreign currencies, the Company is not much
exposed to foreign currency risk.

ii. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes/expectation of changes in interest rates. The Company's exposure to the risk of changes in market interest rates
relates primarily to the holding period of Company’s long-term / short- term investments.

iii. Regulatory Risk

The Company requires various regulatory approvals, registrations and permissions to operate its business, including at a
corporate level as well as at the level of each of its components. Some of these approvals are required to be renewed from
time to time. The Company's operations are subject to continued review by regulator and these regulations may change
from time to time in fast changing capital market environment. The Company's compliance team constantly monitors the
compliance with these rules and regulations.

32. Capital Management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business. The Company monitors the return on capital as well as the level of dividends on its
equity shares. The Company's objective when managing capital is to maintain an optimal structure so as to maximize shareholder
value.

The Company is equity financed which is evident from the capital structure. Further, the Company has always been a net cash
Company with cash and bank balances along with investments which are predominantly investments in mutual funds being far
in excess of financial liabilities.

Compliance with externally imposed capital requirements:

In accordance with regulation 14 (1)(a) of SEBI (Depositories and Participants) Regulations, 2018, the Company shall have a
minimum networth of ' 100 Crore at all times. The Company has maintained net worth of ' 100 Crores at all times during the
current year and previous year.

Notes:

i Bank Guarantees

As per business requirements, bank guarantees are issued by banks on behalf of the Company, against 100% margin
(earmarked) on fixed deposit receipts. (Refer note 44)

ii. Income Tax Matters:

Income tax department had raised demand of ' 191.44 lakhs in respect of certain assessment years. The Company has
filed appeal in respect of such orders. The Company has further paid ' 0.57 lakhs along with interest thereon amounting
to ' 0.23 lakh under protest to the department.

iii Legal Matters:

a) The Company had received an Arbitral Award of ' 86.03 lakh in the matter involving BRH Wealth Kreators Limited
("BRH"), a terminated Depository Participant (DP), wherein the claimant had alleged misutilization of clients'
securities by BRH and negligence on the part of the Company. The said impugned award was challenged before a
Single Judge of the Hon'ble Bombay High Court, who dismissed the challenge. Thereafter, the Company has preferred
an appeal against the said order before the Division Bench of the Hon'ble Bombay High Court, which is currently
pending. Based on management s assessment and legal advice received, the Company believes that it has a strong case
on merits and has complied with the relevant provisions of SEBI regulations and guidelines. Accordingly, management
has assessed that there is no material impact on the financial statements of the Company arising from this matter.

b) The Company had received an Arbitral Award in the matter of Anugrah Stock & Broking Private Limited ("Anugrah"),
a terminated depository participant, wherein the claimant had alleged misutilization of clients’ securities by Anugrah
and negligence by the Company. The said impugned award was challenged before the Hon'ble Bombay High Court,

which is currently pending. Based on management's assessment and legal advice received, the Company believes
that it has a strong case on merits and has complied with the relevant provisions of SEBI regulations and guidelines.
Accordingly, management has assessed that there is no material impact on the financial statements of the Company
arising from this matter. The expected value of shares, if would be required to be restored, is ' 800 Lakh and this
would be subject to change basis movement in stock prices.

c) The Company had received a Show Cause Notice from Securities Exchange Board of India (SEBI) highlighting certain
non-compliances of applicable SEBI guidelines with respect to malware which occurred on November 18, 2022.
The Company under legal advice has engaged with the regulator and defended the alleged non-compliances of
applicable SEBI guidelines. Basis assessment and legal advice, the Company does not expect material impact at this
stage and potential liability, if any, would be known on final outcome on the matter.

d) The Company had received a Show Cause Notice from SEBI highlighting certain non-compliances of applicable SEBI
guidelines with respect to the inspection conducted during the FY 2023-2024. The Company under legal advice has
filed a reply to the Show Cause Notice and is engaging with the regulator to defend the same. Basis assessment and
legal advice, the Company does not expect material impact at this stage and potential liability, if any, would be known
on final outcome on the matter.

iv. Arbitration and Civil Cases pending in the court/ with the authorities amounting to ' 42,417 Lakh. The management
believes that the crystallization of liability on CDSL is remote in these cases.

36.2 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Based on and to the extent of information received by the Company from the suppliers regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006 (MSMED Act) and relied upon by the auditors, the relevant particulars as at the year-end are furnished
below:

37. Employee benefits

37.1 Defined benefits plan - Gratuity

Gratuity is administered through Gratuity Scheme with Life Insurance Corporation of India (LIC). The LIC raises demand for
annual contribution for gratuity amount based on its own computation without providing entire details as required by the
Ind AS 19 "Employee Benefits". Hence the Company obtains separate actuarial valuation report as required under Ind AS 19
"Employee Benefits" from an independent Actuary. The expected return on plan assets is based on market expectation at the
beginning of the year, for the returns over the entire life of the related obligations.

Corporate Overview Statutory Reports Financial Statements

-•-•-•-

01-91 92-258 259-394

Notes to Standalone Financial Statements

for the year ended March 31, 2026

(Rupees in Lakh, except for share and per share data, unless otherwise stated)

37.2 Compensated Absences

The employees of the Company are entitled to compensated absences. The employees can carry forward a portion of the
unutilised accumulated compensated absences and utilise it in future periods or receive cash at retirement or termination of
employment. The Company records an obligation for compensated absences in the period in which the employee renders the
services that increases 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 recognizes accumulated compensated absences based on actuarial valuation. Non-accumulating
compensated absences are recognized in the period in which the absences occur. The Company recognizes remeasurement
gains or losses immediately in the statement of profit and loss.

During the year ended March 31, 2026 an amount recognized as an expense in respect of compensated leave absences is
' 401.31 lakh, (Previous year ended March 31, 2025 is ' 331.10 lakh).

38. As per the rule the Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2018
(the 'Amended Regulations") the Company has determined the IPF contribution at 5% of profit from depository operation after
making such contribution according to the Amended Regulations. The profit from depository operations has been determined
by reducing the other income for the year from the Net profit before exceptional items and tax for the year after making such
contribution. The movement of IPF provision is given below:

39. SEBI vide its circular no. CIR/MRD/DP/18/2015 dated December 09, 2015 had come up with a concept of Basic Services Demat
Accounts (BSDA) with an objective of promoting financial inclusion and expanding the reach of depository services to tier II and
tier III towns, recommended that the revenue source of the depositories may be augmented and Depository Participants (DPs)
may be incentivized by having a revenue sharing mechanism between depositories and DPs. SEBI circular also prescribes that
the annual issuer charges may be increased, and the incremental revenue received by the Depositories be shared suitably with
their Depository Participants for promoting the BSDA and opening new accounts in tier II and tier III towns. Further in order
to compensate the DPs towards the cost of opening and maintaining Basic Services Demat Accounts, the depositories shall pay
an incentive of ' 100/- for every new BSDA opened by their participants in other than the top 15 cities specified by SEBI. The
incentive shall be provided at the end of the financial year only with respect to the new BSDA opened during the financial year
and which displayed at least one credit in the account during the Financial Year.

40. Chief Operating Decision Maker (CODM) as defined under Indian Accounting Standard 108
Operating Segments:

The Managing Director & Chief Executive Officer of the Company, has been identified as the CODM as defined by Indian Accounting
Standard 108 "Operating Segments". The CODM evaluates the Company's performance, allocates resources based on analysis of
the various performance indicators of the Company as a single unit.

The principal business of the Company is of "Depository Services". All other activities of the Company revolve around its principal
business. Therefore, directors have concluded that there is only one operating reportable segment as per Indian Accounting
Standard 108 "Operating Segments".

The entity’s revenues are entirely attributable to customers in India. All the non-current assets of the company are located in
India.

41. Option permitted under Section 115BAA of the Income-tax Act, 1961:

From the financial year 2019-20, the Company had elected to exercise the option permitted under section 115BAA of the
Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Act, 2019.

46. Events after the reporting period

There are no events that have occurred between the end of the reporting period and the date when the standalone financial

statements are approved that provide evidence of conditions that existed at the end of the reporting period.

47. Other Statutory Information

a. The Company, for the current year as well as previous year, does not have any Benami property under the Benami
Transactions (Prohibition) Act, 1988, where any proceeding has been initiated or pending against the Company for holding
any Benami property.

b. The Company, for the current year as well as previous year, does not have any charges or satisfaction to be registered with
ROC.

c. The Company, for the current year as well as previous year, has not traded or invested in Crypto currency or Virtual
Currency during the financial year.

d. The Company, for the current year as well as previous year, does not have any such transaction which is not recorded in
the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

e. The Company, for the current year as well as previous year, has not advanced or loaned or invested funds to any other
person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding 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 to or on behalf of the Ultimate Beneficiaries.

f. The Company, for the current year as well as previous year, has not received any fund from any person(s) or entity(ies),
including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the
Group shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

g. The Company has not been declared as willful defaulter by any bank or financial Institution or other lender, since the
company has not undertaken any borrowing during the current year and previous year.

h. The company, during the current year and previous year, has not made any investment in downstream companies which
are not in compliance with clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers)
Rules, 2017.

i. The Company has not entered into any scheme of arrangement in terms of sections 230 to 237 of the Companies Act, 2013
during the current year and previous year.

j. The Company has not revalued its Property, Plant and Equipment or intangible assets or both during the current year and
previous year.

k. The Company has not granted/given any loans or advances during the current year and previous year to the promoters,
directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person, that are repayable on demand or without specifying any terms or period of repayment.

48. Audit Trail

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit
log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further current
accounting software does not permit any changes or tempering in audit trail (edit log).

49. Maintenance of Books of accounts and Servers

The Company's books of accounts and relevant books and papers are accessible in India at all times and backup of accounts
and other relevant books and papers are maintained in electronic mode within India and kept in servers physically located in
India on daily basis. The Company has complied with the Rule 3 of Companies (Accounts) Rules, 2014.

50. Standards notified but not yet effective

There are no standards that are notified and not yet effective as on the date.