Note: During the year ended March 31, 2026, the shareholders of the Company have approved, through postal ballot, the issuance of fully paid up bonus shares, in the proportion of 1:1 i.e. 1 (One) fully paid up bonus equity share for every 1 (One) existing fully paid up equity share to the shareholders of the Company as on the Record Date i.e. November 26, 2025. Accordingly, the Company has allotted 21,41,54,246 equity shares of 15 each as fully paid up bonus shares on November 27, 2025 by capitalisation of Capital Redemption Reserve Account and Securities Premium Account.
b) Terms / Rights attached to Equity Shares
1. The Company had issued only one class of equity shares referred to as equity share having face value of 110 each which was sub-divided to 15 each w.e.f. February 13, 2018. Each holder of equity shares is entitled to one vote per share.
2. The holders of equity shares are entitled to dividends, if any, proposed by the board of directors and approved by the Shareholders at the Annual General Meeting, except in case of interim dividends which is approved by board of directors.
3. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of preferential amount. However, no such preferential amount exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.
d) 58,77,875 equity shares of 15 each (Previous Year: 20,18,029 equity shares of 15 each) are reserved for issuance towards outstanding ESOPs and PSUs. See note 24 for terms and amounts.
e) No equity shares were bought back during the period of five years immediately preceding the reporting date (Previous Year: Nil).
f No shares were allotted as fully paid up 'pursuant to any contract without payment being received in cash' during the period
of five years immediately preceding the reporting date (Previous Year: Nil).
g) 21,41,54,246 equity shares of 15 each were issued as fully paid up bonus shares during the year. Other than aforementioned,
no bonus shares were issued during the period of five years immediately preceding the reporting date (Previous Year: Nil).
i) For information on Capital management - see note 34.
Note 18 OTHER EQUITY
Nature and purpose of reserves Share application pending allotment
Until the shares are allotted, the amount received is shown under the Share Application Money Pending Allotment.
Capital redemption reserve
Whenever there is a buy-back or redemption of share capital, the nominal value of the capital is transferred to a reserve called Capital Redemption Reserve so as to retain the capital. The reserve can be utilised only for issuance of fully paid bonus shares in accordance with the provisions of the Companies Act, 2013.
Securities premium
Securities Premium is used to record the premium (amount received in excess of face value of equity shares) on issue of shares. The reserve can be utilised only for limited purposes such as issuance of fully paid bonus shares in accordance with the provisions of the Companies Act, 2013. The securities premium also includes amount transferred from Share options outstanding account upon exercise of ESOPs or PSUs by eligible employees and subsequent allotment of shares to them.
General reserve
Pursuant to the provisions of Companies Act,1956, the Company had transferred a portion of its net profit before declaring dividend, to general reserve. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
Share options outstanding account
The grant date fair value of equity-settled share-based payment transactions with eligible employees are recognised in the Standalone Statement of Profit and Loss with the corresponding credit to this account over the vesting period. The amounts recorded in Share options outstanding account are transferred to securities premium upon exercise of ESOPs or PSUs and subsequent allotment of shares. The amount pertaining to ESOPs and PSUs not exercised within the exercise period is transferred to Retained earnings.
Retained earnings
Retained earnings are the profits that a company has earned to date, less any dividends or other distributions paid to the Shareholders, net of utilisation as permitted under applicable regulations.
Debt instruments through Other Comprehensive Income
This comprises the changes in the fair value of debt instruments recognised in Other Comprehensive Income and accumulated within equity. The Company transfers the amounts from such component of equity to Standalone Statement of Profit and Loss when the relevant debt instruments are derecognised.
Refer 'Other Equity' section in 'Standalone Statement of Changes in Equity' for movement in reserves and surplus during the year.
b) Defined Benefit Plan - Gratuity
In accordance with the applicable Indian laws, the Company has a defined benefit plan which provides for gratuity payments. The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment, which requires contributions to be made to a separately administered fund.
The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy.
The amounts are based on the respective employee's last drawn salary and the years of employment with the Company. Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes annual contributions to the plan. The plan is funded with a life insurance company in the form of a qualifying insurance policy.
The following tables summaries the components of net employee benefit expense recognised in the Standalone Statement of Profit and Loss, the funded status and amounts recognised in Standalone Balance Sheet.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the Defined Benefit Obligation as recognised in the Standalone Balance Sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Risks associated with Defined Benefit Plan:
() Interest Rate Risk
A fall in the discount rate which is linked to the G.Sec. rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.
(ii) Salary Risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.
(iii) Investment Risk
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities and other debt instruments.
(iv) Asset Liability Matching (ALM) Risk
The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.
(v) Mortality Risk
Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
(vi) Concentration Risk
Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory guidelines which mitigate risk.
During the year, there were no plan amendments, curtailments and settlements.
Note 24 Share based payments
Accounting for Employee Share Based Payments
All the below said ESOPs and PSUs have been granted under the Employees Stock Options and Performance-linked Stock Units Scheme-2025 ('ESOP & PSU Scheme 2025') of the Company. Each ESOP and PSU represents one equity share of 15/- each. The said ESOPs have been granted at the market price as defined in SEBI (Share Based Employees Benefits) Regulations, 2014. Accordingly, the ESOPs have been granted at the latest available closing price of the shares of the Company on National Stock Exchange of India Limited on the trading day immediately preceding the date on which Grant of ESOPs was approved by the Nomination & Remuneration Committee of the Board of Directors of the Company ('Nomination & Remuneration Committee’). The PSUs have been granted at the face value of 15/- each as approved by the Nomination & Remuneration Committee.
In terms of ESOP & PSU Scheme 2025, the above ESOPs shall vest in four tranches. These tranches consisting of 10%, 20%, 30% and 40% of the ESOPs granted shall vest on the completion of the 1st, 2nd, 3rd and 4th year respectively from the date of the grant. Any fractional residue shall be settled in the 4th tranche. Further the vesting of ESOPs shall also be dependent on the achievement of the employee's own performance parameters (as defined in ESOP & PSU Scheme 2025) over the vesting period. The ESOPs can be exercised over a period of four years from the date of respective vesting.
In terms of ESOP & PSU Scheme 2025, the above PSUs shall vest in two tranches. These tranches consisting of 30% and 70% of the PSUs granted shall vest on the completion of the 3rd and 4th year respectively from the date of the grant. Any fractional residue shall be settled in the 2nd tranche. Further the vesting of PSUs shall also be dependent on the achievement of the Company level and employee's own performance parameters (as defined in ESOP & PSU Scheme 2025) over the vesting period, wherein Nomination & Remuneration Committee shall determine the extent of fulfilment of the vesting conditions. The PSUs can be exercised over a period of one year from the date of respective vesting.
All the below said ESOPs have been granted under the Employees Stock Option Scheme 2020 ('ESOS 2020') of the Company. Each ESOP represents one equity share of 15/- each. The said ESOPs have been granted at the market price as defined in SEBI (Share Based Employees Benefits) Regulations, 2014. Accordingly, the ESOPs have been granted at the latest available closing price of the shares of the Company on National Stock Exchange of India Limited on the trading day immediately preceding the date on which Grant of ESOPs was approved by the Nomination & Remuneration Committee.
In terms of ESOS 2020, the ESOPs shall vest in three tranches. Each of these tranches consisting of 1/3 of the ESOPs granted shall vest on the completion of the 1st, 2nd and 3rd year respectively from the date of the grant. Any fractional residue shall be settled in the 3rd tranche. The ESOPs can be exercised over a period of five years from the date of respective vesting.
Pursuant to the terms of respective Schemes for ESOPs and/or PSUs, in case of a corporate action like bonus issue, rights issue, buyback of shares, stock split of shares, etc., the number of ESOPs and/or PSUs outstanding as at the date of the corporate action and the exercise price under all the relevant Schemes for ESOPs and/or PSUs shall be adjusted in a manner such that total value of the ESOPs and/or PSUs remains the same after the corporate action. Accordingly, the Nomination and Remuneration Committee of the Company has resolved, vide its circular resolution passed on November 25, 2025, to make appropriate adjustments to the existing number and exercise price of the outstanding ESOPs and PSUs pursuant to the issuance of bonus shares [see note 17(a)].
Total expense arising from equity settled share based payment transactions for the ESOPs and PSUs granted to the eligible employees of the Company, amounting to 169.22 Crore (Previous Year 122.49 Crore) has been charged to Standalone Statement of Profit and Loss. Further, the cost of ESOPs and PSUs granted to the eligible employees of WOS, amounting to 10.21 Crore (Previous Year 10.03 Crore) is recognised as a capital contribution to the subsidiary.
The weighted average share price for ESOPs exercised during the year under various Grants was 12,619.46 (Previous Year: 14,122.11). The price for the current year is arrived at after considering the impact of corporate action for options exercised before the corporate action.
Fair value methodology
The fair value of ESOPs and PSUs used to compute net income and earnings per equity share has been estimated on the date of grant using Black-Scholes model.
Note 27 Earnings Per Share
Basic earnings per share (EPS) is calculated by dividing the profit after tax for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.
Diluted EPS is calculated by dividing the profit after tax for the year attributable to equity shareholders of the Company adjusted for the effects of all dilutive potential ordinary shares by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares. There is no effect of dilutive potential ordinary shares on profit after tax for the year attributable to equity shareholders of the Company.
Note 28 Leases
A. The Company has entered into leasing arrangements for premises. Majority of the leases are cancellable by the Company. Right of Use assets have been included under the line 'Property, Plant and Equipment' and Lease liabilities have been included under 'Other Financial Liabilities' in the Standalone Balance Sheet.
The Company has framed Car Policy to provide use of the Company owned car for the commute from residence to workplace, for the discharge of their official functions and for personal use to certain selected employees of the Company. As per the Car Policy of the Company, the car is registered in the name of the Company and will remain the property of the Company till it is duly transferred to employee in accordance with the Car Policy and after recovery of all lease receivables. In case of separation of employee from the Company, outstanding lease receivables are recovered/adjusted from employee's full and final settlement in accordance with the Car Policy.
Note 29 Segment Information
(a) Description of segments and principal activities
The Company is in the business of providing asset management services to mutual funds & alternative investment funds and portfolio management & advisory services to clients. The Company's financial statements are largely reflective of the asset management business and accordingly, there are no separate reportable segments as per Ind AS 108, Operating Segment.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM). The CODM’s function is to allocate the resources of the entity and assess the performance of the operating segment of the Company.
Note 31 Trade Payables
Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMEDA) which came into force from October 02, 2006, certain disclosures are required to be made relating to Micro and Small enterprises. On the basis of the information and records available with the management, the following disclosures are made for the amounts due to the Micro and Small enterprises, which have registered with the competent authorities.
Note 34 Capital Management
Equity share capital and other equity are considered for the purpose of Company’s capital management. The Company manages its capital in a manner which enables it to safeguard its ability to continue as a going concern and to optimise returns to the Shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investors', creditors' and market confidence. The funding requirements are met through operating cash flows and other equity. The management monitors the return on capital and the board of directors monitors the level of dividends paid to shareholders of the Company. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure. As of March 31, 2026 and March 31, 2025, the Company has only one class of equity shares and has no debt. In the absence of any debt, the monitoring of debt equity ratio may not be appropriate for the Company. As of March 31, 2026 the Equity Share Capital is 1214.20 Crore (Previous Year: 1106.90 Crore) and Other Equity is 19,016.89 Crore (Previous Year: 18,027.24 Crore). Certain minimum networth requirements for the business have been laid down by SEBI. The same is monitored on regular basis and have been complied with.
B. Fair value hierarchy
The fair value of financial assets or financial liabilities 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.
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs.
The hierarchy used is as follows:
Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Investment in open ended Mutual Funds are included in Level 1.
Level 2 — Inputs are 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). Lease liabilities and Investment in close ended Mutual Funds, Alternative Investment Fund and Debt Securities that are not traded in active market are included in Level 2.
Level 3 — Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. Investment in unlisted Debt Securities, unlisted Equity Instruments, Alternative Investment Funds and Venture Capital Fund are included in Level 3.
In order to assess Level 3 valuations as per Company’s investment policy, the management reviews the performance of the investee companies (including unlisted portfolio companies of venture capital fund and alternative investment funds) on a regular basis by tracking their latest available information, valuation report of independent valuers, recent transaction results, investor reports etc. which are considered in valuation process.
The finance department of the Company includes the team that performs the valuation of financial assets and liabilities required for financial reporting purposes, including level 3 fair value. The team is supervised by the Chief Financial Officer (CFO) of the Company. Discussions of valuation processes and results are held between the valuation team and the senior management at least once every three months which is in line with the Company’s quarterly reporting periods.
F. Financial Risk Management
Risk management is an integral part of the business practices of the Company. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The financial risks are managed in accordance with the Company's policy on enterprise risk management which has been approved by its Board of Directors. The Company’s Board of Directors has ultimate responsibility for monitoring the risk profile of the Company. The purpose of risk management is to identify potential problems before they occur, so that riskhandling activities may be planned and invoked as needed to manage adverse impacts on achieving objectives.
The Audit Committee of the Company reviews the development and implementation of the policy on enterprise risk management of the Company on periodic basis. The Audit Committee provides guidance on the risk management activities, review the results of the risk management process and reports to the Board of Directors on the status of the risk management initiatives.
i. 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 trade receivables, cash and cash equivalents, other bank balances, other financial assets measured at amortised cost and debt securities measured at FVOCI.
Exposure to credit risk is mitigated through regular monitoring of collections, counterparty's creditworthiness and diversification in exposure.
Exposure to credit risk
The carrying amount of financial assets represents maximum amount of credit exposure. The maximum exposure to credit risk is as per the table below, it being total of carrying amount of cash and cash equivalent, other bank balances, trade receivables, other financial assets measured at amortised cost and debt securities measured at FVOCI.
Expected Credit Loss (ECL) on Financial Assets
The Company continuously monitors all financial assets subject to ECLs. In order to determine whether an instrument is subject to 12 month ECL (12mECL) or life time ECL (LTECL), the Company assesses whether there has been a significant increase in credit risk or the asset has become credit impaired since initial recognition. The Company applies following quantitative and qualitative criteria to assess whether there is significant increase in credit risk or the asset has been credit impaired:
• Historical trend of collection from counterparty
• Company's contractual rights with respect to recovery of dues from counterparty
• Credit rating of counterparty and any relevant information available in public domain
ECL is a probability weighted estimate of credit losses. It is measured as the present value of cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with contract and the cash flows that the Company expects to receive).
The Company has four types of financial assets that are subject to the expected credit loss:
• Trade receivables and other financial assets
• Cash and cash equivalents and other bank balances
• Investment in debt securities measured at amortised cost
• Investment in debt securities measured at FVOCI Trade Receivables and Other Financial Assets
Exposures to customers' outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of collection from counterparties on timely basis reflects low level of credit risk. As the Company has a contractual right to such receivables as well as control over preponderant amount of such funds due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour.
The Company has placed security deposit with lessors for premises leased by the Company. The Company does not perceive any significant decline in credit risk profile of the lessors where the amount of security deposit is material and hence expected probability of default is low.
Cash and Cash Equivalents and Other Bank Balances
The Company holds cash and cash equivalents and other bank balances as per note 4 and 5. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high.
Investment in Debt Securities measured at amortised cost
The Company has made investments in tax free bonds. Funds are invested after taking into account parameters like safety, liquidity and post tax returns etc. The Company avoids concentration of credit risk by spreading them over several counterparties with good credit rating profile and sound financial position. The Company’s exposure and credit ratings of its counterparties are monitored on an ongoing basis. Accordingly, the expected probability of default is low.
Investment in Debt Securities measured at FVOCI
The Company has made investments in non-convertible debentures. Funds are invested after taking into account parameters like liquidity, credit rating, safety and sound financial position of the counterparties. The Company’s exposure and credit ratings of its counterparties are monitored on an ongoing basis. Accordingly, the expected probability of default is low.
Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on acceptable terms.
To limit this risk, management has adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on a regular basis. The Company has developed internal control processes for managing liquidity risk.
The Company maintains a portfolio of highly marketable and diverse assets that are assumed to be easily liquidated in the event of an unforeseen interruption in cash flow. The Company assesses the liquidity position under a variety of scenarios, giving due consideration to stress factors relating to both the market in general and specifically to the Company.
Exposure to Liquidity Risk
The table below analyses the Company's financial liabilities into relevant maturity pattern based on their contractual maturities for all financial liabilities.
Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.
Currency Risk
The Company has insignificant amount of foreign currency denominated assets. Accordingly, the exposure to currency risk is insignificant.
Interest Rate Risk
The Company's investments and fixed deposits are primarily in fixed rate interest instruments. Accordingly, the exposure to interest rate risk is also insignificant.
Price Risk
Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, whether caused by factors specific to an individual investment, its issuer or the market. The Company’s exposure to price risk arises from investments in equity securities, debt securities, units of mutual funds, venture capital fund and alternative investment funds which are classified as financial assets at FVTPL and debt securities classified at FVOCI. The exposure to the said instruments is as follows:
(iii) The Company is in compliance with number of layers of companies, as prescribed under clause (87) of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
(iv) The Company does not have any transactions which were not recorded in the books of accounts, but offered as income during the year in the income tax assessment.
(v) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(vi) No funds have been advanced/loaned/invested (from borrowed funds or from share premium or from any other sources / kind of funds) by the Company to any other person(s) or entity(ies), including foreign entities (Intermediaries), with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties), with the understanding (whether recorded in writing or otherwise) that the Company shall (i) 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 (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Note 38
The Government of India had notified the implementation of 4 New Labour Codes (NLC) effective November 21, 2025, by consolidating and rationalising several existing labour laws. Based on management evaluation, the Company’s existing employee benefit policies are more beneficial than the statutory requirements under the NLC. Consequently, the implementation of the NLC has no material financial impact on the Company, and the said benefits continues to be recognised in accordance with the Company’s policy and applicable Indian Accounting Standards. Further, upon notification of the relevant rules by the appropriate authorities, the same will be reviewed for the impact, if any.
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