2.11 Provisions

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 resources embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of
the obligation.

2.12 Contingent liabilities, Contingent assets and
Commitments

The Company does not recognise a contingent liability but
discloses its existence in the financial statements.

a) Contingent liability is disclosed in case of -

» A present obligation arising from past events, when
it is not probable that an outflow of resources will
be required to settle the obligation.

» A present obligation arising from past events, when
no reliable estimate is possible.

» A possible obligation arising from past events,
unless the probability of outflow of resources
is remote.

Contingent liabilities are reviewed at each balance sheet date.

b) Contingent assets are not recognised in the

financial statements.

c) Commitments are future liabilities for contractual

expenditure and is disclosed in case of -

» Estimated amount of contracts remaining to be
executed on capital account and not provided for;

» Other non-cancellable commitments, if any, to the
extent they are considered material and relevant in
the opinion of management.

2.13 Employee Benefits
S Retirement and other employee benefits

Defined contribution plan

Retirement benefit in the form of provident fund
and Employee State Insurance Scheme is a defined
contribution scheme. The Company has no obligation,
other than the contribution payable to the provident fund
and Employee State Insurance scheme. The Company
recognises contribution payable to the provident fund
and Employee State Insurance scheme as an expense,
when an employee renders the related service. If the
contribution payable to the scheme for service received
before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is
recognised as a liability after deducting the contribution
already paid.

Defined benefit plan

The Company has defined benefit plans as Compensated
absences and Gratuity for all eligible employees, the
liability for which is determined based on actuarial
valuation at each year-end using projected unit
credit method.

Re-measurements, comprising of actuarial gains and
losses, excluding amounts included in net interest
on the net defined benefit liability, the effect of the
asset ceiling, and the return on plan assets (excluding
amounts included in net interest on the net defined
benefit liability), are recognised immediately in the
balance sheet with a corresponding debit or credit to
retained earnings through OCI in the period in which
they occur. Re-measurements are not reclassified to
profit or loss in subsequent periods.

Past service costs are recognised in the statement of
profit and loss on the earlier of:

» The date of the plan amendment or curtailment, and

» The date that the Company recognises related
restructuring costs.

The Company recognises the following changes in the
net defined benefit obligation as an employee benefits
expense in the statement of profit and loss:

» Service costs comprising current service costs,
past-service costs, gains and losses on curtailments
and non-routine settlements; and

» Net interest expense or income

S Short term and other long term employee
benefits

A liability is recognised for benefits to employees in
respect of wages and salaries, annual leave, sick leave
and short-term employee benefits in the year the related
service is rendered. The undiscounted amount of short¬
term employee benefits expected to be paid in exchange
for the services rendered by employees are recognised
during the year when the employees render the service.
These benefits include performance incentive and
compensated absences, which are expected to occur
within twelve months after the end of the period in
which the employee renders the related service.

In case of accumulated compensated absences, when
employees render the services that increase their
entitlement of future compensated absences and
liabilities recognised in respect of other long-term
employee benefits are measured at the present value
of the estimated future cash outflows expected to be
made by the Company in respect of services provided
by employees up to the reporting date.

S Share based payments

The Company operates a number of Employee Stock
Option Scheme/ Restricted stock units ('the Scheme')
which provides for the grant of options to acquire equity
shares of the Company to its employees. The options
granted to employees vest in a graded manner and these
may be exercised by the employees within a specified
period. These equity-settled share based payments to
employees are measured at the fair value of the equity
instruments at the grant date.

The fair value determined at the grant date of the
equity-settled share based payments is expensed on
a straight line basis over the vesting period, based on
the Company's estimate of equity instruments that will
eventually vest, with a corresponding increase in equity
(Share option outstanding account). The fair value of
options is estimated using valuation techniques, which
incorporate exercise price, term, risk-free interest rates,
the current share price, its expected volatility etc.

At the end of each reporting period, the Company
revises its estimate of the number of equity instruments
expected to vest. The impact of the revision of the
original estimates, if any, is recognised in statement
of profit and loss such that the cumulative expenses
reflects the revised estimate, with a corresponding
adjustment to the share option outstanding account.

The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.

2.14 Taxes

Taxes on income

Tax expense comprises current and deferred tax.

a) Current tax

Current tax assets and liabilities are measured at the
amount expected to be recovered from or paid to the
taxation authorities in accordance with Income Tax Act,
1961, Income Computation and Disclosure Standards and
other applicable tax laws. The tax rates and tax laws
used to compute the amount are those that are enacted
or substantively enacted, at the reporting date.

Current tax relating to items recognised outside profit
and loss is recognised outside profit and loss (either in
other comprehensive income or in equity). Current tax
items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

Current tax assets and liabilities are offset if a legally
enforceable right exists 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 provided on temporary differences at
the reporting date between the tax bases of assets
and liabilities and their carrying amounts for financial
reporting purposes.

Deferred tax liabilities are recognised for all taxable
temporary differences.

Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused tax
credits and any unused tax losses. 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 utilised.

The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are recognised
to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to
be recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised 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
and loss is recognised outside profit and loss (either in
other comprehensive income or in equity). Deferred tax
items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

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.

Goods and Services Input Tax Credit

Goods and Services tax input credit is recognised in the
period in which the supply of goods or service received is
recognised and the conditions to avail the credit are fulfilled
as per the underlying law.

2.15 Earnings per share

Basic earnings per share are calculated by dividing the net
profit or loss for the year attributable to equity shareholders
by the weighted average number of equity shares outstanding
during the period.

For the purpose of calculating diluted earnings per share,
the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of
all dilutive potential equity shares except where the result
would be antidilutive.

2.16 Financial instruments

A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.

a) Financial assets

S Initial recognition and measurement

Financial assets, with the exception of loans and
advances to customers, are initially recognised on the
trade date, i.e. the date that the Company becomes a
party to the contractual provisions of the instrument.
Loans and advances to customers are recognised when
funds are disbursed to the customers. The classification
of financial assets at initial recognition depends on
their purpose, characteristics and the intention of the
management's while acquiring the same. All financial
assets measured at fair value through profit or loss
(FVTPL) are recognised initially at fair value. Financial
assets measured at amortised cost or at fair value
through other comprehensive income (FVTOCI) is
recorded at fair value plus transaction costs that are
attributable to the acquisition of that financial asset.
Trade receivable that does not contain a significant
financing component are measured at transaction price.

S Classification and subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in three categories:

» Financial asset at amortised cost

» Financial asset (debt instruments) at FVTOCI

» Financial asset at FVTPL

Financial asset at amortised costs

Financial asset is measured at the amortised cost if both
the following conditions are met:

i) The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows, and

ii) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
principal amount outstanding.

After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method less impairment
(if any). Amortised cost is calculated by taking into
account any discount or premium on acquisition and
fees received and the costs incurred on acquisition
of financial asset. The EIR amortisation is included in
interest income in the statement of profit and loss. The
losses arising from impairment are recognised in the
statement of profit and loss.

Financial assets (debt instruments) at FVTOCI

Financial asset (debt instruments) is classified as at the
FVTOCI if both of the following criteria are met:

i) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets, and

ii) The asset's contractual cash flows represent SPPI.

Financial assets included within the above category
are measured initially as well as at each reporting date
at fair value. Fair value movements are recognised
in the other comprehensive income (OCI). However,
the Company recognises interest income, impairment
losses or reversals and foreign exchange gain or loss
in the profit and loss. On derecognition of the asset,
cumulative gain or loss previously recognised in OCI is
reclassified from the equity to profit and loss. Interest
earned whilst holding FVTOCI debt instrument is
reported as interest income using the EIR method.

Financial asset at FVTPL

Financial asset which does not meet the criteria for
categorisation as at amortised cost or as FVTOCI, is
classified as at FVTPL. Financial assets classified under
FVTPL category are measured at fair value with all
changes recognised in the statement of profit and loss.

b) Financial liabilities

Financial liabilities are classified and measured
at amortised cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held-for
trading or it is designated as on initial recognition to be
measured at FVTPL. All financial liabilities, other than
classified at FVTPL, are classified at amortised cost in
which case they are initially measured at fair value, net
of transaction costs and subsequently at amortised cost
using effective interest rate.

Amortised cost is calculated by taking into account
any fees, commission / brokerage and ancillary costs
incurred in relation to the financial liability.

c) Equity instruments

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments are
recognised at the face value and proceeds received
in excess of the face value are recognised as
share premium.

Offsetting a financial asset and a financial
liability

Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if there
is an intention to settle on a net basis, to realize the
assets and settle the liabilities simultaneously.

2.17 Derivative financial instruments

A derivative is a financial instrument or other contract with
all three of the following characteristics:

» Its value changes in response to the change in a specified
interest rate, financial instrument price, commodity price,
foreign exchange rate, index of prices or rates, credit
rating or credit index, or other variable, provided that, in
the case of a non-financial variable, it is not specific to a
party to the contract (i.e. the 'underlying').

» It requires no initial net investment or an initial net
investment that is smaller than what would be required
for other types of contracts expected to have a similar
response to changes in market factors.

» It is settled at a future date.

The Company holds derivative to mitigate the risk of changes
in exchange rates on foreign currency exposures as well as
interest fluctuations. The counterparty for such contracts are
generally banks.

Derivatives are recorded at fair value and carried as assets
when their fair value is positive and as liabilities when their
fair value is negative. Changes in the fair value of derivatives
are included in net gain on fair value changes unless hedge
accounting is applied.

2.18 Hedge accounting

The Company makes use of derivative instruments to manage
exposures to interest rate and foreign currency. In order
to manage particular risks, the Company applies hedge
accounting for transactions that meet specified criteria.

At the inception of a hedge relationship, the Company formally
designates and documents the hedge relationship to which
the Company wishes to apply hedge accounting and the risk
management objective and strategy for undertaking the hedge.
The documentation includes the Company's risk management
objective and strategy for undertaking hedge, the hedging/
economic relationship, the hedged item or transaction, the
nature of the risk being hedged, hedge ratio and how the
entity will assess the effectiveness of changes in the hedging
instrument's fair value in offsetting the exposure to changes
in the hedged item's fair value or cash flows attributable to the
hedged risk. Such hedges are expected to be highly effective in
achieving offsetting changes in fair value or cash flows and are
assessed on an ongoing basis to determine that they actually
have been highly effective throughout the financial reporting
periods for which they were designated.

A cash flow hedge is a hedge of the exposure to variability in
cash flows that is attributable to a particular risk associated
with a recognised asset or liability (such as all or some future
interest payments on variable rate debt) or a highly probable
forecast transaction and could affect profit or loss.

For designated and qualifying cash flow hedges, the effective
portion of the cumulative gain or loss on the hedging
instrument is initially recognised directly in OCI within equity
(cash flow hedge reserve). The ineffective portion of the gain
or loss on the hedging instrument is recognised immediately
in net gain/loss on fair value changes in the profit and
loss statement.

When the hedged cash flow affects the statement of profit
and loss, the effective portion of the gain or loss on the
hedging instrument is recorded in the corresponding income
or expense line of the statement of profit and loss. When the
forecast transaction subsequently results in the recognition
of a non-financial asset or a non-financial liability, the gains
and losses previously recognised in OCI are reversed and
included in the initial cost of the asset or liability.

When a hedging instrument expires, is sold, terminated,
exercised, or when a hedge no longer meets the criteria
for hedge accounting, any cumulative gain or loss that has
been recognised in OCI at that time remains in OCI and
is recognised when the hedged forecast transaction is
ultimately recognised in the statement of profit and loss.
When a forecast transaction is no longer expected to occur,
the cumulative gain or loss that was reported in OCI is
immediately transferred to the statement of profit and loss.

2.19 Reclassification of financial assets and
liabilities

The Company doesn't reclassify its financial assets
subsequent to their initial recognition, apart from the
exceptional circumstances in which the Company acquires,
disposes of, or terminates a business line. Further, whenever
there is a change in the business model the underlying
affected financial asset are reclassified. Financial liabilities
has not been reclassified.

2.20 Derecognition of financial assets and
liabilities

a) Financial assets

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is derecognised when the rights to receive
cash flows from the financial asset have expired. The
Company also derecognised the financial asset if it has
transferred the financial asset and the transfer qualifies
for derecognition.

The Company has transferred the financial asset if and
only if, either:

» It has transferred its contractual rights to receive
cash flows from the financial asset

Or

» It retains the rights to the cash flows, but has
assumed an obligation to pay the received cash
flows in full or in part without material delay to a
third party under a 'pass-through' arrangement

Pass-through arrangements are transactions whereby
the Company retains the contractual rights to receive
the cash flows of a financial asset (the 'original asset'),
but assumes a contractual obligation to pay those cash
flows to one or more entities (the 'eventual recipients'),
when all of the following three conditions are met:

» The Company has no obligation to pay amounts
to the eventual recipients unless it has collected
equivalent amounts from the original asset

» The Company cannot sell or pledge the
original asset other than as security to the
eventual recipients.

» The Company has to remit any cash flows it

collects on behalf of the eventual recipients without
material delay.

In addition, the Company is not entitled to reinvest such
cash flows, except for investments in cash or cash
equivalents including interest earned, during the period
between the collection date and the date of required
remittance to the eventual recipients.

A transfer only qualifies for derecognition if either:

» The Company has transferred substantially all the
risks and rewards of the asset

Or

» The Company has neither transferred nor retained
substantially all the risks and rewards of the asset,
but has transferred control of the asset.

The Company considers control to be transferred if and
only if, the transferee has the practical ability to sell
the asset in its entirety to an unrelated third party and
is able to exercise that ability unilaterally and without
imposing additional restrictions on the transfer.

When the Company has neither transferred nor
retained substantially all the risks and rewards and
has retained control of the asset, the asset continues
to be recognised only to the extent of the Company's
continuing involvement, in which case, the Company
also recognises an associated liability. The transferred
asset and the associated liability are measured on a
basis that reflects the rights and obligations that the
Company has retained.

b) Financial liabilities

A financial liability is derecognised when the obligation
under the liability is discharged, cancelled or expires.
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 statement of
profit and loss.

2.21 Measurement of Expected Credit Loss (ECL)

The Company records allowance for expected credit losses
for all financial instruments, other debt financial assets
not held at FVTPL together with the financial guarantee

contracts. Equity instruments are not subject to impairment
under Ind AS 109.

The ECL allowance is based on the credit losses expected to
arise over the life of the asset (the lifetime expected credit loss
or LTECL), unless there has been no significant increase in credi
risk (SICR) since origination, in which case, the allowance is
based on the 12 months' expected credit loss (12mECL).

Default

Classification of default is based on the regulatory definition
of Non-Performing Assets (NPA). Our regulator, the Reserve
Bank of India, defines NPA in Reserve Bank of India Housing
Finance Companies Directions, 2025, read with the RBI Non
Banking Financial Companies - Income Recognition, Asset
Classification and Provisioning Directions, 2025, as amended
from time to time as exposures where interest or principal is
in arrears for a period of more than ninety days.

The Company will maintain the definition of default in line
with any amendments made by the regulator from time to
time through its circulars and through its Master Circular
published from time to time.

Staging

The Company while assessing whether there has been a
SICR of an exposure since origination, it compares the risk
of a default occurring over the expected life of the financial
instrument as at the reporting date with the risk of default as
at the date of initial recognition. The Company classifies the
accounts into three stages.

The mechanics and key inputs for classifying the stages and
computing the ECL are defined below:

Key components for computation of Expected
Credit Loss are:

» Probability of default (PD)

Probability of Default (PD) is one of the three risk
components needed to estimate ECL under Ind AS 109.

PD is defined as the probability that a borrower will be
unable to meet their debt obligations over a stipulated
time. The PD estimate incorporates information relevant
for assessing the borrower's ability and willingness to
repay its debts, as well as information about the economic
environment in which the borrower operates.

The Company uses 12-month PD for stage 1 assets and
lifetime PD for stage 2 and Stage 3 assets.

» Loss given default (LGD)

The Loss given default (LGD) is an estimate of the loss
arising in the case where a default occurs at a given time.
It is based on the expected cash flows, including from
the realisation of available collateral after considering
estimated costs that may be incurred in obtaining and
selling such collateral.

» Exposure at default (EAD)

Exposure at default (EAD) is an estimate of the exposure
at a future default date, taking into account expected
changes in the exposure after the reporting date, including
repayments of principal and future interests.

The Company has adopted the following methodology for
ECL computation:

adopted statistical techniques like logistic regression,
observed default rate based on customer classification etc.
using behaviour and credit variables.

The Company has further stressed the PDs for such selective
group of customers who are falling into an early warning
signal pool like customers who have experienced delinquency
with other financial institutions but remained good with us,
customers showing very early signs of stress in emerging
delinquencies etc.

Loss given default

The LGD for the retail portfolio is modelled through a workout
approach. Historical NPA data of last few years has been
used to arrive at behavioral LGD. Loss estimation have
been done either basis distressed value or actual/expected
recoveries, depending on resolution strategies already
materialised or in the process of materialisation. Multiple
factors are considered for determining the LGD including
time taken for resolutions, geographies, collection feedback,
underlying security etc.

Exposure at default

EAD is the sum of the outstanding principle, interest
outstanding and future interest receivables for the expected
life of the asset, computed basis the behavioral analysis of the
repayment period.

Corporate loans
Probability of default

PDs for the corporate portfolio are determined by using
external ratings as cohorts along with ever default behavior
of an account in last 12 months (basis external ratings based
statistical technique of Pluto-Tasche). PD s are further
stressed basis operational variables like construction
variance, sales velocity, resolution team feedback etc. For
life time PDs computation, the Company has used survival
analysis using Kaplan-Meier technique.

Loss given default

For LGD estimates, the Company has used ECR approach and
have applied business logic based on security coverage ratio
of existing portfolio. Sensitivity analysis, resolution feedback
are applied on probability weighted scenarios to compute loss
given default.

Exposure at default

EAD is the sum of the outstanding principle, interest
outstanding and future interest receivables for the expected
life of the asset, computed basis the behavioral analysis of the
repayment period.

Significant increase in credit risk (SICR)

The Company monitors all financial assets that are subject to
impairment requirements to assess whether there has been
a significant increase in credit risk since initial recognition.

If there has been a significant increase in credit risk in
the assets falling in stage 1 then the Company measures
the loss allowance over the lifetime of the loan instead of
12-month ECL.

Retail loans

The qualitative criteria for triggering SICR in retail
exposure is:

Those stage 1 loan assets where underlying property is under
construction and expected construction progress is likely to
remain slow based on historical data / market feedback.

Stage 1 assets which have been restructured under the RBI
OTR schemes of August 2020 and May 2021 and exhibit
a higher degree of credit risk based on their subsequent
repayment behavior.

The Company may apply management overlays or post-model
adjustments to the model-generated expected credit losses
and staging outcomes where necessary to reflect emerging
risks, portfolio-specific factors or other information not fully
captured in the underlying models.

Corporate loans

The Company has its own qualitative assessment criteria
comprising various operational and repayment variables like
construction variance, historical delinquency rates, sales
velocity, asset coverage ratio, resolution team feedback etc.
Basis the review and management overlay, the Company
identifies assets where likelihood of deterioration in credit
quality is high and for such assets SICR has been triggered.

Incorporation of forward looking information

Ind AS 109 requires entities to model their ECL and apply
forward looking macroeconomic scenarios taking into
consideration possibility of favorable, neutral, adverse
and stressed economic conditions. Multiple scenarios are
required to be applied to the ECL and a probability weighted
ECL is then computed. In order to compute probability
weighted ECL considering the impact of COVID-19 several
macroeconomic variables such as GDP at constant
prices, Housing Price Index (HPI) inflation, Gross national
savings, unemployment rate etc. were considered from the
International Monetary Fund (IMF), NHB and RBI websites and
the Company's historical data were analysed.

A model was then built, and forecasts were generated,
and scenario creation carried out to finally arrive at the
final macroeconomic overlay. Identification of relevant
macroeconomic variables was done combining statistical
analysis (correlation) and business intuition (sign of
correlation).

The macroeconomic variables (MEVs) of the final model
were used to generate multiple simulations for forecasting
under different probabilistic scenarios, i.e., favorable,
neutral, adverse and stress scenarios. Under each scenario,
based on the independent variable forecasts, the forecasted
default rates are obtained using the final model relationship
between the default rates and macroeconomic variables.

The scenarios are identified based on the probability of
occurrence, i.e. expected probability of the future economic
state. An anchor variable (GDP) analysis was performed
in order to select a particular scenario for future quarters.
Accordingly, the probability weighted ECL is computed using
the likelihood as weights.

Trade receivables, other receivables and other
financial assets

The Company records allowance for expected credit losses on
trade receivables, other receivables and other financial assets,
The allowance is based on the credit losses expected to arise
over the life of the asset (the lifetime expected credit loss or
LTECL), unless there has been no significant increase in credit
risk (SICR) since origination, in which case, the allowance is
based on the 12 months' expected credit loss (12mECL).

When making this assessment, the Company uses the
change in the risk of a default occurring over the expected
life of the financial asset. To make that assessment, the
Company compares the risk of a default occurring on the
financial asset as at the balance sheet date with the risk of
a default occurring on the financial asset as at the date of
initial recognition and considers reasonable and supportable
information, that is available without undue cost or effort, that
is indicative of significant increases in credit risk since initial
recognition. The Company assumes that the credit risk on
a financial asset has not increased significantly since initial
recognition if the financial asset is determined to have low
credit risk at the balance sheet date.

2.22 ECL on financial guarantee contracts

ECL on financial guarantee contracts has been computed
basis the methodologies defined under note 2.21.

2.23 Write offs

The Company undertakes write off on a loan, in full or in
part, when the amount is construed as irrecoverable after
enforcement of available means of resolution. The authority

of write off is vested with committee of senior officials of
the Company. In case the company writes off an asset, the
recoveries resulting from the write off activity may result in
impairment gains.

2.24 Collateral

The Company is in business of secured lending and all
loans are adequately covered by either residential collateral
or commercial collateral. The collaterals are assessed at
the time of origination and are being re-assessed as and
when required.

The illustrative factors considered while evaluation of
collateral are liquidity, enforceability, marketability, ease and
efficiency in custody and settlement. The Company complies
with local by-laws and relevant jurisdictions to ensure
that the collaterals are free from all encumbrances. The
assessment of collateral is undertaken by empanelled team of
independent and qualified technical / legal agencies.

The Company has specified the maximum loan-to-value ratio
for various types of asset to be accepted as collateral. Such
ratios commensurate with the relative risk of the assets as
prescribed by RBI and provides an adequate buffer against
potential losses.

On case-to-case basis, the Company may ask for additional
security, which may in the form of guarantee or financial
assets or any other real estate assets.

The Company may take actions as provided in the SARFAESI
Act which enables it to enforce the underlying collateral of
stage 3 assets without court intervention.

2.25 Dividend

The Company recognises a liability to make cash distributions
to equity holders when the distribution is authorised and the
distribution is no longer at the discretion of the Company.
Final dividends on shares are recorded as a liability on the
date of approval by the Shareholders and interim dividends
are recorded as a liability on the date of declaration by the
Company's Board of Directors.

2.26 Unclaimed deposits and dividends

Deposits, which has become overdue but have not been
presented for payment or renewal, are transferred to
unclaimed deposits. Deposit remaining unclaimed for more
than seven years have been transferred to the Investor
Education and Protection Fund (IEPF). Interest for the period
from last maturity date to the date of renewal of unclaimed
deposits is accounted for during the year of its renewal.

Dividends remaining unclaimed for more than seven years
are transferred to the Investor Education and Protection Fund
(IEPF).

2.27 Securities premium

Securities premium is credited:

» when shares are issued at premium;

» with the fair value of the stock options which are treated
as expense (if any), in respect of shares allotted pursuant
to Employee Stock Options Scheme

Securities premium can be utilised only for limited purposes
such as issuance of bonus shares or adjustment of share
issue expenses, net of tax, as permissible under Section
52(2) of the Companies Act, 2013, to the extent of balance
available and thereafter, the balance portion is charged to the
statement of profit and loss, as incurred.

2.28 Assets held for sale

The Company repossess properties or other assets to settle
outstanding recoverable and the surplus (if any) post auction
is refunded to the obligors. These assets acquired by the
company under SARFAESI Act, 2002 has been classified

as assets held for sale, as their carrying amounts will be
recovered principally through a sale of asset. In accordance
with Ind AS 105, the company is committed to sell these
assets and they are measured at the lower of their carrying
amount and the fair value less costs of disposal.

2.29 Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker (CODM). CODM is responsible for allocating
the resources, assess the financial performance and position
of the Company and makes strategic decision. The Company's
main business is to provide loans against/for purchase,
construction, repairs & renovations of houses/ flats/
commercial properties etc. All other activities of the Company
revolve around the main business. As such, there are no
separate reportable segment, as per the Operating Segments
(Ind AS 108), notified by the Companies (Accounting
Standard) Rules, 2015 as amended from time to time.

2.30 Investment in subsidiaries

Investments in subsidiaries are measured at cost as per Ind
AS 27 - Separate Financial Statements.

ECL movement as on 31^st March 2025 and 31^st March 2026

a) Overall ECL % POS have decreased by 12 bps on accounts improvement in Asset quality.

b) ECL % POS has increased by 3.70% as on 31^st March 2026 in stage 2.

c) The loan assets in stage 2 were 1.85% as on 31^st March 2026 against 2.41% as on 31^st March 2025. The Company has

applied qualitative SICR criteria owing to which stage 1 assets of H327.26 crore has moved to stage 2 assets. Pre SICR, the
stage 2 loan assets as on 31^st March 2026 would be 1.47% against 1.93% as on 31^st March 2025.

d) Stage 3 ECL % POS have increased to 38.28% as on 31^st March 2026 as against 36.05% as on 31^st March 2025.

ECL movement as on 31^st March 2024 and 31^st March 2025

a) Overall ECL % POS have decreased by 16 bps on accounts improvement in Asset quality.

b) ECL % POS has increased by 1.93% as on 31^st March 2025 in stage 2.

c) The loan assets in stage 2 were 2.41% as on 31^st March 2025 as against 2.87% as on 31^st March 2024. The Company has

applied qualitative SICR criteria owing to which stage 1 assets of H356.88 crore has moved to stage 2 assets. Pre SICR, the
stage 2 loan assets as on 31^st March 2025 would be 1.93% against 2.13% as on 31^st March 2024.

d) Stage 3 ECL % POS have increased to 36.05% as on 31^st March 2025 as against 35.13% as on 31^st March 2024.

ECL movement as on 31^st March 2024 and 31^st March 2025

a) Stage 1 ECL % of POS increased from 16.42% to 26.46%.

b) The loan assets in stage 2 were reduced to 1.52% as on 31^st March 2025 from 6.16% as on March 31,2024 majorly due to
shift of stage 2 asset to stage 1.

c) The Company's stage 3 asset ratio has reduced to 0.00% as on 31^st March 2025 from 3.31% as on 31^st March 2024

^AThe restructuring was done for stage 1 accounts, total restructured no of cases 928 amounting to were H448.73 crore (previous year number of cases 1132
amounting to H585.93 crore),against which provision of H59.57 crore (Previous year H75.44 crore) is held.

#Refer Note 2.21, 2.22, 2.23 and 46.1.

Note 6.4: Loans due from borrowers are secured wholly or partly by any one or all of the below as applicable:

Tangible securities

i) Equitable/ Simple/ English Mortgage of immovable property;

ii) Mortgage of Development Rights/ FSI/ any other benefit flowing from the immovable property;

iii) Hypothecation of rent receivables, cash flow of the project, debt service reserve account, fixed deposit, current and
escrow accounts;

Intangible securities

i) Demand Promissory Note;

ii) Post dated cheques towards the repayment of the debt;

iii) Personal / Corporate Guarantees;

iv) Undertaking to create a security;

v) Letter of Continuity.

vi) Charges against equity shares

Note 18.2: Term loan from Banks and Financial Institutions:
a) Nature of security

i) Term loan from Punjab National Bank (related party) are secured by hypothecation by way of exclusive charge on
specific standard book debts of the Company with minimum asset cover of 1.10 times to be maintained at all times.

ii) Term loans from banks other than Punjab National Bank and financial institution are secured by hypothecation of
specific book debts to the extent of 1.0 to 1.12 times of outstanding amount.

Note 18.3: External commercial borrowing:
a) Nature of security

i) The ECB borrowings are secured against eligible housing loans/book debts and are hedged through currency swaps,
interest rate swaps and forward contracts as per the applicable RBI guidelines.

ii) The derivative contracts are initially recognised at fair value on the date of the transaction and all outstanding
derivative transactions, on the date of balance sheet, are subsequently measured at fair value on that date. Where
cash flow hedge accounting is used, fair value changes of the derivative contracts are recognised through the cash
flow hedge reserve (through other comprehensive income) which is reclassified to profit and loss account as the
hedged item effects profit and loss. Premium paid / discount received in advance (if any) on the derivative contracts,
which are not intended for trading or speculation purposes, are amortised over the period of the contracts, if such
contracts relate to monetary items as at the balance sheet date.

iii) As at 31^st March 2026, the Company has outstanding ECB of USD 575.00 million (equivalent to H5,442.62 crore)

(31^st March 2025 USD 425.00 million (equivalent to H3,637.21 crore)). The Company has undertaken cross currency
interest rate swaps to hedge the foreign currency risk of the ECB principal. With this, the Company has converted
its floating rate USD liability into fixed rate H liability through fixing its future H cash flows on account of interest and
principal repayment. All the derivative instruments are purely for hedging the underlying ECB transactions as per
applicable RBI guidelines and not for any speculative purpose.

Note 24.4: Terms / Rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of H10/- per share. Each holder
of equity shares is entitled to one vote per share. The Company declares and pays dividend in H per share basis. Dividend
distribution is for all equity shareholders who are eligible for dividend as on record date. The dividend proposed by the Board
of Directors is subject to the approval of the shareholders in the ensuing Annual General meeting. 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.

Note 24.5: The Company has not allotted any share pursuant to contracts without payment being received in cash nor it has
issued any bonus shares or bought back any shares, during the period of five years immediately preceding the reporting date.

Note 24.6: The Company has not:

i. Issued any securities convertible into equity / preference shares.

ii. Issued any shares where calls are unpaid.

iii. Forfeited any shares.

Note 24.7: Capital Management:

The Company maintains an actively managed capital base to cover risks inherent in the business and is meeting the capital
adequacy requirements as per the directives of the regulator. The adequacy of the Company capital is monitored using, among
other measures, the regulations issued by NHB & RBI from time to time.

Company has complied in full with all its externally imposed capital requirements.

The primary objectives of the Company capital management policy are to ensure that it complies with externally imposed capital
requirements and maintains strong credit ratings and healthy capital ratios in order to support its business and to maximise
shareholder's value.

The Company manages its capital structure after taking in to consideration the inherent business risk and the changes in
economic conditions. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend
payment to shareholders, return of capital to shareholders or issue capital securities.

No changes have been made to the objectives, policies and processes from the previous years and they are reviewed by the
Board of Director's at regular intervals.

Regulatory capital consists of Tier I capital, which includes owned funds comprising share capital, share premium, retained
earnings including current year profit and free reserves less cash flow hedge reserve, deferred revenue expenditure and
intangible assets. The book value of investment in shares of other non-banking financial companies including housing finance
companies and in shares, debentures, bonds, outstanding loans and advances including hire purchase and lease finance made
to and deposits with subsidiaries and companies in the same group exceeding, in aggregate 10% of owned funds will be reduced
while arriving at the Tier I capital.

The other component of regulatory capital is Tier II Capital Instruments, which includes non convertible preference shares,
revaluation reserve, general provision and loss reserves to the extent of one and one fourth percent of risk weighted asset,
hybrid capital instruments and subordinated debts.(Refer Note 36.1)

Note 25.1 Nature and purpose of reserves
Share application money

Share application money pending allotment whereby the amount has been received on the application, of which allotment is not
yet made.

Securities premium

Securities premium includes :

» amount of premium received on issue of equity shares and;

» fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Employee
Stock Options Scheme.

The securities premium can be utilised only for limited purposes such as issuance of bonus shares, issue expenses of securities
which qualify as equity instruments in accordance with the provisions of the Companies Act, 2013.

Special reserve and Statutory reserve

In accordance with Section 29C(i) of the National Housing Bank Act, 1987, the Company is required to transfer at least 20% of its net profit
every year to a reserve fund (statutory reserve) before any dividend is declared.

The Company has created a special reserve in terms of clause (viii) of sub-Section (1) of Section 36 of the Income-tax Act, 1961 and the same is
considered to be an eligible transfer for the purposes of Section 29C (i).

Share option outstanding account

The cost of equity settled transactions is determined by the fair value at the date when the grant is made using the Black-Scholes Model. The
cumulative expense recognised for equity settled transaction is credited to share option outstanding account in equity.

Retained Earnings

Retained earnings are profits earned by the Company after transfer to general reserve and payment of dividend to shareholders.

Effective portion of cash flow hedges

The Company uses hedging instruments as part of its management of foreign currency risk and interest rate risk associated on borrowings.

For hedging foreign currency and interest rate risk, the Company uses foreign currency forward contracts, cross currency swaps and interest
rate swaps. To the extent these hedges are effective, the change in fair value of the hedging instrument is recognised in the cash flow hedging
reserve. Amounts recognised in the cash flow hedging reserve is reclassified to the statement of profit or loss when the hedged item affects
profit or loss (e.g. interest payments).

Note 36 Disclosure as per regulatory guidelines

The Company has been classified as Upper Layer entity under Scale Based Regulations issued by Reserve Bank of India.

The following additional disclosures have been given in compliance with:

(i) Reserve Bank of India (Housing Finance Companies) Directions, 2025 ('RBI Directions') issued by RBI vide notification
number RBI/DoR/2025-26/365 DoR.FIN.REC.284/October 03, 119/2025-26 dated November 28, 2025 as amended from
time to time; and

(ii) Reserve Bank of India (Non-Banking Financial Companies - Registration, Exemptions and Framework for Scale Based
Regulation) Directions, 2025 ('RBI Directions') issued by RBI vide notification number RBI/DOR/2025-26/339 DOR.FIN.
REC.No.258/03.10.119/2025-26 dated November 28, 2025 as amended from time to time; and

(iii) Reserve Bank of India (Non-Banking Financial Companies - Financial Statements: Presentation and Disclosures)
Directions, 2025 ('RBI Directions') issued by RBI vide notification number RBI/DOR/2025-26/359 DOR.ACC.REC.
No.278/21.04.018/2025-26 dated November 28, 2025 as amended from time to time.

iv) As on 31^st March 2026, the Company has not financed any product of the parent company (Previous year H NIL).

v) As on 31^st March 2026, the Company has not exceeded the prudential exposure limit for single borrower or group borrower
(Previous year H Nil).

vi) As on 31^st March 2026, the Company has not given any unsecured advances (Previous year H NIL).

vii) As on 31^st March 2026, all advances of the Company are secured against tangible assets and there are no advances against
intangible assets (Previous year H Nil).

viii) As on 31^st March 2026, the Company has no exposures to group companies engaged in the real estate business (Previous
year H Nil).

ix) As on 31^st March 2026, the Company has no Intra-group exposures with in the group companies as defined by RBI
(Previous year H Nil).

x) During the year, the Company has not granted any non fund based credit facilities and as on 31^st March 2026 the Company
has no outstanding non fund based credit facilities (Previous year H NIL).

xi) Unhedged foreign currency exposure Refer Note 36.4.

Note 36.8: Registration obtained from financial sector regulators

NHB : vide registration number 01.0018.01

Ministry of Corporate Affairs : L65922DL1988PLC033856

Insurance Regulatory and Development Authority of India : CA0862. The registration shall be valid from 31^st March 2026 to 31^st

March 2026.

Note 36.9: Disclosure of Penalties and strictures imposed by NHB/RBI and other statutory/regulatory
authorities

During the financial year ended 31^st March 2026 and 31^st March 2025, there is no penalty imposed by Regulators.

Note 36.30 (i): During the year, the Company has not granted any loans and as on 31^st March 2026, the Company has no
outstanding loans (NIL % of total assets) against gold and silver collateral (Previous year H NIL).

Note 36.30 (ii): During the year, the Company has not auctioned any gold and silver collateral (Previous year H Nil).

Note 36.31: Deposit includes Public Deposits as defined in Reserve Bank of India (Non-Banking Financial Companies -
Acceptance of Public Deposits) Directions, 2025, are secured by floating charge on the Statutory Liquid Assets maintained
in terms of sub-Sections (1) & (2) of Section 29B of the National Housing Bank Act, 1987. As on 31^st March 2026, the public
deposits (including accrued interest) outstanding amounts to H15,075.05 crore (excluding effective interest rate H15,164.16 crore)
[Previous year H15,416.85 crore (excluding effective interest rate H15,513.55 crore)].

The Company is carrying Statutory Liquid Assets amounting to H2,682.19 crore (Previous year H2,427.78 crore).

Note 36.32: The Company operates within India and does not have any joint venture or overseas subsidiary.

Note 36.33: Liquidity Risk Management and Liquidity Coverage Ratio

(vi) Institutional set-up for liquidity risk management

The Board of Directors of the Company has constituted the Asset Liability Management Committee (ALCO) and the Risk
Management Committee. The Board has the overall responsibility for management of liquidity risk and approves the
liquidity risk management strategy, risk tolerance, policies and limits in line with the applicable regulatory framework.

The Risk Management Committee (RMC), which is a committee of the Board, is responsible for evaluating the Company's
integrated risk management framework, including liquidity risk, and for monitoring compliance with the risk appetite and
tolerance levels approved by the Board. The ALCO is responsible for the implementation of the Board-approved Asset
Liability Management (ALM) Policy and for ensuring adherence to the liquidity risk tolerance and limits. The role of the
ALCO includes, inter alia, determining the desired maturity profile of assets and liabilities, monitoring the liquidity position,
reviewing stress scenarios and overseeing the adequacy of liquidity buffers. The ALM Policy is reviewed periodically to
align the same pursuant to any regulatory changes/changes in the economic landscape or business needs and tabled to the
Board for approval.

Management regularly reviews the position of cash and cash equivalents by aligning the same with the projected maturity
of financial assets and financial liabilities, economic environment, liquidity position in the financial market, anticipated
pipeline of future borrowing & future liabilities and threshold of minimum liquidity defined in the ALM policy.

(b) Disclosure pursuant to Reserve Bank of India Direction pertaining to Liquidity Risk Management
Framework for Housing Finance Companies (Non-Banking Financial Companies - Asset Liability
Management) Directions, 2025

A. Qualitative Disclosure

As per above circular, all deposit taking NBFCs irrespective of their asset size, shall maintain a liquidity buffer in terms of
Liquidity Coverage Ratio (LCR) which will promote resilience of HFCs to potential liquidity disruptions by ensuring that they
have sufficient High Quality Liquid Asset (HQLA) to survive any acute liquidity stress scenario lasting for 30 days. The
timeline on adhering to LCR guidelines are tabulated below.

The objective of the LCR is to promote an environment wherein balance sheet carry a strong liquidity for short term cash flow
requirements. To ensure strong liquidity, NBFCs are required to maintain adequate pool of unencumbered HQLA which can be
easily converted into cash to meet their stressed liquidity needs for 30 calendar days. The LCR is expected to improve the ability
of financial sector to absorb the shocks arising from financial and/or economic stress, thus reducing the risk of spill over from
financial sector to real economy.

The Liquidity Risk Management of the Company is managed by the ALCO under the governance of Board approved Liquidity
Risk Framework comprising of Asset Liability Management policy, Contingency Funding Policy, Funding Strategy and Resource
Mobilization Policy, and Market Risk Management Policy. The LCR levels for the balance sheet date is derived by arriving
the stressed expected cash inflow and outflow for the next calendar month. To compute stressed cash outflow, all expected
and contracted cash outflows are considered by applying a stress of 15%. Similarly, inflows for the Company is arrived at by
considering all expected and contracted inflows by applying a haircut of 25%.

The main drivers of LCR are:

Outflows comprises of:

a) All the contractual debt repayments and interest payments

b) Expected operating expense based on projections for FY26

c) Committed credit facilities contracted with customers for both sanctioned but partly disbursed cases and sanctioned but
undisbursed cases based on historical experience and other expected or contracted cash outflows like expected payouts
under contracted direct assignment deals.

Inflows comprises of:

a) Expected receipt (scheduled EMIs) from all performing loans

b) Liquid investment either in the form of short tenure Fixed Deposits with banks or in units of Debt Mutual Fund Schemes
(like Overnight Liquid and Money Market Schemes) which are unencumbered and have not been considered as part

of HQLA

c) Sanctioned and undrawn lines of credit from banks.

For the purpose of HQLA, the Company considers unencumbered government securities and cash/bank balances with
NIL haircuts.

The unencumbered government securities held as part of HQLA are identified separately from the government securities which
are lien marked in favour of Trustee for public deposits accepted by the Company. The LCR is computed by dividing the stock of
HQLA by its total net cash outflows over one-month stress period.

LCR guidelines are effective from 01^st December 2021. LCR has been calculated and monitored as per methodology prescribed
in the Reserve Bank of India (Non-Banking Financial Companies - Asset Liability Management) Directions, 2025. LCR has
been calculated as a simple average of the total number of days in a quarter on daily basis. The Company is compliant with
maintenance of stipulated LCR. Further, the Company has been monitoring the daily LCR for the period of April 2025 to March
2026. The minimum and maximum daily required HQLA for regulatory compliance has been H713.91 crore and H2,232.29 crore
respectively for the period between 25^th April to 26^th March. The Company has maintained the daily average LCR of 179.48%
for FY26.

The Company maintains diversified sources of funding comprising short/long term loans from banks, Non-Convertible
Debentures (NCDs), External Commercial Borrowings (ECBs), Deposits, Refinance from National Housing Bank (NHB) and
Commercial Papers (CPs). The funding pattern is reviewed on monthly basis by the management and on quarterly basis by the
ALM Committee and Risk Management Committee.

Derivative exposures and potential collateral calls: To hedge ECBs and mitigate the Interest rate risk on borrowing profile,
the Company enters into derivative transactions. All the derivatives of the Company are for hedging purpose and not for any
speculative or trading purpose. As on 31^st March 2026, the notional amount of outstanding derivatives is H9,386.17 crore
(Previous year H6,175.37 crore) with net negative MTM of H86.34 crore (Previous year positive H135.01 crore). Further, the
Company has executed bilateral Credit Support Agreement with few of its derivative counterparties. As on 31^st March 2026
there is outstanding margin of H36.22 crore (Previous year NIL).

Currency mismatch in LCR: There is no mismatch required to be reported in LCR as on 31^st March 2026 and 31^st March 2025
since all the Foreign Currency liabilities are reinstated to H as per the corresponding derivative/ forward deals and closing RBI
reference / FBIL exchange rates.

Note: As on 31^st March 2026, out of two loans identified in divergence, one stands closed and other loan remained regular
throughout its tenure post reduction in rate of interest. There is no financial impact on the Company with respect to the above
divergence in assets classification and provisioning.

Note 36.40: Disclosure pertaining to Resolution Framework for COVID-19-related Stress and Resolution Framework
- 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses to be read with Reserve Bank of India
(Non Banking Financial Companies - Resolution of Stressed Assets) Directions, 2025, RB11D0R12025-261357 DOR.STR.
REC.276121.04.048/2025-26, dated 28^th November 2025.

Note 39 Segment Reporting

The Company's main business is to provide loans against/for purchase, construction, repairs & renovations of Houses/Flats/
Commercial Properties etc. All other activities of the Company revolve around the main business. As such, there are no separate
reportable segment, as per the Operating Segments (Ind AS 108), notified by the Companies (Accounting Standard) Rules, 2015.
The Company operates within India and does not have operations in economic environments with different risks and returns,
hence it is considered operating in single geographical segment.

The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more
of its revenues from transactions with any single external customer.

Note 40 Contingent Liabilities and Commitments

i) Contingent liabilities in respect of Income-tax of H165.62 crore (Previous year H54.54 crore) is disputed and are under
appeals/rectification filed before the assessing officer/under reassessment proceedings. The Company expects the
demands to be set aside by the appellate authority/rectified by the assessing officer/nullified during reassessment
proceedings, hence no additional provision is considered necessary.

(ii) Contingent liabilities in respect of Goods and Service Tax of H46.74 crore (Previous year H43.70 crore) is disputed and
appeals has been filed for H41.01 crore (Previous year H9.44 crore). Further, the Company in the process of filing of appeal
for H5.73 crore (Previous year H34.26 crore). The Company expects the demands to be set aside by the appellate authority,
hence no additional provision is considered necessary.

iii) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is H20.97
crore (Previous year H32.34 crore).

iv) Claims against the Company not acknowledged as debt is H15.36 crore (Previous year H0.48 crore).

v) The Company had issued corporate financial guarantee amounting to H0.25 crore (Previous year H0.25 crore) to "UNIQUE
IDENTIFICATION AUTHORITY OF INDIA (UIDAI)" in relation to Aadhar Authentication Services.

Note 41 Disclosure in respect of Employee Benefits

In accordance with Indian Accounting Standards on "Employee Benefits" (Ind AS 19), the following disclosure have been made:

Defined Contribution Plans:

Note 41.1: The Company makes contributions towards provident fund to a defined contribution retirement benefit plan for
qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the
retirement benefit plan to fund the benefits. The contribution has been recognised in the Statement of Profit and Loss which are
included under "Contribution to Provident Fund and Other Funds" in Note 32.

Note 41.2: Defined Benefit Plans

The Company has a defined benefit gratuity plan. Every employee is entitled to the benefit equivalent to 15 days salary (last
drawn) for each completed year of services rendered and is payable on termination of service, retirement and death, whichever
is earlier. The benefit vests after five year of continuous service. The benefit to employee is as per the plan rules and as per
the Code on Social Security 2020. The scheme is funded and the same is managed by Life Insurance Corporation of India. The
liability of Gratuity is recognised on the basis of actuarial valuation.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were
carried out as at 31^st March 2026. The present value of the defined benefit obligations and the related current service cost and
past service cost, were measured using the Projected Unit Credit Method.

Risks associated with defined benefit plan

Interest rate risk: A fall in the discount rate, which is linked to the Government Securities rate, will increases 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.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salary of members. As
such, an increase in the salary of the members more than assumed level may increase the plan's liability.

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.

Note 46 Risk Management

The Company has formulated a comprehensive enterprise risk management policy to take care of major risks, such as credit
risk, market risk, liquidity risk. The Company has an integrated risk management policy (IRM) in place, which communicates the
risk management strategy, framework, and risk processes across the organisation, and has been approved by the Board. The
risk management framework broadly includes governance, risk appetite approach, risk-specific guidelines, risk measurement,
mitigation, monitoring reporting, and key risk indicators (KRIs). The Company has developed a clearly articulated risk appetite
statement, functional policies, and KRIs to explicitly define the level and nature of risk that an organisation willing to take in
order to pursue the articulated mission on behalf of various stakeholders. The Board has delegated the responsibility of risk
management to its risk management committee (RMC), which reviews the efficacy of our risk management framework, provides
important oversight, and assesses whether it is consistent with the risk tolerance levels laid down. The RMC gives directions to
executive risk management committee (ERMC), comprising senior management.

Note 46.1: Credit Risk

The Company's asset base comprises of retail loans and corporate loans.

Retail loans mainly focuses on financing of acquisition or construction of houses that includes repair, upgradation, and
development of plot of land. In retail loans category, the Company also provides loan against properties and loans for purchase &
construction of non-residential premises.

Corporate finance loans are given mainly to developers for financing the construction of residential / commercial properties,
i.e. construction finance loans, and for general corporate purpose loans. i.e. corporate term loans and lease rental
discounting loans.

Being in the lending domain, credit risk is one of the major risks in the business model of the Company. Credit risk stems from
outright default due to inability or unwillingness of a customer or counterparty to meet the contractual commitments. The
essence of credit risk management in the Company pivots around the early assessment of stress, both at a portfolio and account
level, and taking appropriate measures.

Credit Risk Management

Credit risk of the Company is managed through a robust Credit Risk Management set-up at various levels. Given the
pervasiveness of credit risk in the Company's line of business, the Board and the senior management consider credit risk
management to be an integral part of the organisational strategy. The Board has constituted a Risk Management Committee
(RMC) that owns the risk management framework. The RMC oversees the Risk Management practices and gives direction to the
Executive Risk Management Committee (ERMC), comprising of the MD and CEO along with functional heads, in implementing
the risk management framework and policy. The policies and procedures have been drafted in close consultation with process
owners, ERMC and RMC.

The risk management function is led by the Chief Risk Officer who is independent and has direct access to the RMC.

The Company's Risk Framework for credit risk management is mentioned below:

1) Established an appropriate credit risk environment

The Company has developed credit risk strategy which reflects its risk tolerance and level of profitability it expects to
achieve. The execution of strategy is done through policies, guidelines and processes supervised by team of experienced
professionals in the mortgage business.

2) Ensure sound credit approval process

The Company's Target Operating Model (TOM) primarily comprises of Hub and Spoc structure, advanced technology
platform, experienced and specialized professionals and mark to market policies and products. The Company's TOM allows
to manage various type of risks in a better manner which in turn helps building a robust portfolio.

The Company has clear segregation of duties between transaction originators in the business function and approvers in
the credit risk function. Spoc or branch act as the primary point of sale, undertake loan originations, collection, deposit
sourcing and customer service. Hubs perform functions, such as loan processing, credit appraisal and monitoring through
subject matter experts comprising team of underwriters, fraud control unit, legal counsels, and technical evaluators.

The credit sanction is done through a well-defined delegation matrix under four eye principle. All functions are subject to
audit, undertaken by an independent team directly reporting to the Board.

Hubs and Spocs are supported by Central Support Office (CSO), Centralised Operations (COPS) and Central Processing
Centre (CPC).

3) Maintains an appropriate credit administration, measurement and monitoring process

Policies and procedures have been developed for identifying, measuring, monitoring and mitigating credit risk. Portfolio
monitoring allows a proactive approach to identify, at an early stage, credit quality deterioration. A system of independent,
periodical reviews of the Company's credit risk management process is established and the results of such reviews are
communicated across the levels for corrective actions as applicable. The excepted credit loss on financial instruments has
been presented in respective note.

Adequate controls are in place to ensure that the credit approval function is being properly managed and that credit
exposures are within levels consistent with prudential standards and internal limits.

Note 46.4: Market Risk

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market
variables such as interest rates, foreign exchange rates and equity prices. The Company monitors such changes and presents to
the management on a regular basis. It undertakes scenario analysis as well as other techniques like earnings at risk to quantify the
expected impact upon the change of market variables. The Board approved investment policy defines the overall exposure limits
and specific limits pertaining to the exposure to a particular entity/counterparty as well as type of securities.

46.4.2 Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of
financial instruments. The Board has established limits on interest rate sensitive assets and interest rate sensitive liabilities.
The Company's policy is to monitor positions on a regular basis and hedging strategies are used to ensure positions are
maintained within the established limits.

46.4.3 Currency risk

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Foreign
currency risk arises majorly on account of foreign currency borrowings which are primarily in US Dollar ($). The Company
manages its foreign currency risk by entering into cross currency swaps and forward contracts. When a derivative is entered
into for the purpose of being as hedge, the Company negotiates the terms of those derivatives to match with the terms of the
hedge exposure.

Currently, the Company is exposed to currency risk by virtue of its ECBs. But, the Company has undertaken hedging and mitigate
such risk.

The following table assesses the sensitivity of the assets and liabilities over the profit and loss and other comprehensive income
with change in currency rates.

Note 46.4.4: Equity price risk

The Company's investment in non-listed equity securities are accounted at cost in the financial statement net of impairment
(if any). The expected cash flow from these entities are regularly monitored to identify impairment indicators.

Note 46.5: Liquidity risk and funding management

Liquidity risk is defined as the risk that the Company will encounter in meeting its obligations associated with financial liabilities
as and when they fall due, without incurring unacceptable losses. Liquidity risk arises from mismatches in the timing of the cash
inflows and outflows under both normal business conditions and stress scenarios including situations where funding required to
support illiquid asset positions may not be available on acceptable terms. To mitigate liquidity risk, the management has arranged
for diversified funding sources and a broad investor base in addition to its core deposit base, reducing reliance on any single
source of funding. The Company continously monitors its funding profile and seeks to maintain an optimal mix of short-term and
long-term borrowings. Asset origination and investment decisions are also undertaken with due regard to their impact on the
overall liquidity position.The Company also adopted a policy of managing assets with liquidity in mind and monitoring future cash
flows and liquidity on a regular basis.The Company also keeps lines of credit and liquid investments that it can access to meet
liquidity needs. The lines of credit are from various banks and institutions. The liquid investments are made for shorter tenor

and kept in instruments like debt mutual funds, fixed deposits, liquid bonds, certificate of deposit, government securities etc.,
limits of which are defined as per investment policy based on the type of security, rating of entity and instrument. In accordance
with the Company's policy, the liquidity position is assessed under a variety of scenarios. The Company follows both stock and
flow approaches to monitor and asses the liquidity position. Moreover, the Company keeps a track of the expected funds inflows
and outflows along with the avenues of raising the funds. This incorporates an assessment of expected cash flows and the
availability of high grade collateral which could be used to secure additional funding if required.

The Company has a Board approved Asset and Liability Management (ALM) policy. The policy has constituted an Asset and Liability
Committee (ALCO) which meets at regular intervals to review the asset liability profile of the Company. The ALCO monitors
structural liquidity mismatches across prescribed time buckets, both at individual time-bucket level as well as on a cumulative
basis, and also reviews the interest rate risk profile of the Company. The policy also defines the limits on such monitored items and
these are further presented to the Board for information and further action, if any. In addition to the regulatory prescribed tools, the
Company has voluntarily instituted additional internal liquidity risk indicators and parameters are presented to the ALCO and further
to the Board. Moreover, the position of liquidity is presented to the Risk Management Committee of the Board.

Note 47 Fair value measurement

The principles and techniques of fair valuation measurement of both financial and non-financial instruments are as follows:

(a) 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.

For determination of fair value, financial instruments are classified based on a hierarchy of valuation techniques, as
summarised below:

Level 1: Those where the inputs used in the valuation are unadjusted quoted prices from active markets for identical assets
or liabilities that the Company has access to at the measurement date. The Company considers markets as active only if
there are sufficient trading activities with regards to the volume and liquidity of the identical assets or liabilities and when
there are binding and exercisable price quotes available on the balance sheet date.

Level 2: Those where the inputs that are used for valuation are significant and are derived from directly or indirectly
observable market data available over the entire period of the instrument's life. Such inputs include quoted prices for
similar assets or liabilities in active markets, quoted prices for identical instruments in inactive markets and observable
inputs other than quoted prices such as interest rates and yield curves, implied volatilities and credit spreads. In addition,
adjustments may be required for the condition or location of the asset or the extent to which it relates to items that are
comparable to the valued instrument.

Level 3: Those that include one or more unobservable input that is significant to the measurement as whole.

(b) Valuation governance

The Company's fair value methodology and the governance over its models includes a number of controls and other
procedures to ensure appropriate safeguards are in place to ensure its quality and adequacy. All new product initiatives
and their valuations are subject to approvals by related functions of the Company.

(c) Assets and liabilities by fair value hierarchy

The following table shows an analysis of financial instruments recorded at fair value by level of the fair value hierarchy.

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are
recorded and measured at fair value in the Company's financial statements.

1. Debt securities

The Company's debt instruments are standard fixed rate securities. The Company uses market prices whenever
available, or other observable inputs to estimate the corresponding fair value. These Corporate bonds are generally Level
2 instruments.

2. Derivative financial instruments

Interest rate derivatives

For Interest rate derivatives, the Company has interest rate swaps and cross currency swaps. The valuation techniques
are the mark to market positions with forward pricing on the swap models using present value calculations by estimating
future cash flows and discounting them with the appropriate yield curves like the OIS yield curve. These contracts are
generally Level 2 unless adjustments to yield curves or credit spreads are based on significant non-observable inputs, in
which case, they are Level 3.

Foreign exchange contracts

Foreign exchange contracts include spot contracts, foreign exchange forward and swap contracts. However, the Company
has not entered into any foreign exchange options. These instruments are valued by either observable foreign exchange
rates, observable or calculated forward points and option valuation models. The Company classifies these foreign exchange
contracts as level 2.

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not
recorded and measured at fair value in the Company's financial statements.

1. Financial assets and liabilities (Short term)

Cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, other financial
assets, trade payables, commercial papers and other financial liabilities has been recognised at amortised cost in the
financial statements.

In accordance with Ind AS 107.29(a), fair value is not required to be disclosed in relation to the financial instruments having
short-term maturity (less than 12 months), where carrying amount (net of impairment) is a reasonable approximation of
their fair value. Hence the fair value of cash and cash equivalents, bank balances other than cash and cash equivalents,
trade receivables, other financial assets, trade payables, commercial papers and other financial liabilities has not
been disclosed.

2. Financial assets

Loans and advances to customers

Substantial amount of the loans are based on floating rate of interest, carrying amount of which represents the fair value
of these loans. Minuscule amount of loans are based on fixed to floating rate of interest, the fair values of these loans are
computed by discounted cash flow models incorporating prevailing interest rate. The Company classifies these assets as
Level 2.

Government debt securities

Government debt securities are financial instruments issued by sovereign governments and include both long- term
bonds and short-term bills with fixed or floating rate interest payments. These instruments are generally liquid and traded
in active markets resulting in a Level 1 classification. When active market prices are not available, the Company uses
observable market inputs of similar instruments and bond prices to estimate future index levels and extrapolating yields
outside the range of active market trading, in which instances the Company classifies those securities as Level 2. The
Company does not have Level 3 government securities where valuation inputs would be unobservable.

3. Financial liabilities

Debt securities and Subordinated liabilities

Debt securities and subordinated liabilities are generally liquid and traded in active markets resulting in a Level 1
classification. When active market prices are not available, the Company uses observable market inputs of similar
instruments and bond prices to estimate future index levels and extrapolating yields outside the range of active market
trading, in which instances the Company classifies those securities as Level 2.

Deposits

The fair values of deposits are computed by discounted cash flow models that incorporates prevailing interest rate. The
Company classifies these liabilities as Level 3.

Financial assets or liabilities other than those mentioned above resembles the value approximate to their fair value.

(e) There have been no transfers among Level 1, Level 2 and Level 3, during the year ended March 31, 2026, and March
31, 2025.

Note 48 Other disclosures

(i) There is no income which is required to be 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.

(ii) The Company has not been declared willful defaulter by any Banks/Financial Institutions.

(iii) The Company has not traded or invested in Crypto currency or Virtual currency during the year.

(iv) There are no proceedings which have been initiated or pending against the Company for holding any benami property
under the Prohibition of Benami Properties Transactions Act, 1988 and the rules made thereunder.

(v) Disclosure in relation to Struck off Companies:

(vi) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources
or kind of funds) 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:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

(vii) The Company has not received any funds from any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

(viii) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India and
the Group has no CICs as part of the Group.

(ix) The Company has not entered into Scheme of Arrangement in terms of Section 230 to 237 of the Company Act, 2013.

Note 49 Amendments issued but not yet effective

The Ministry of Corporate Affairs (MCA) notifies new standard or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. MCA amended the Companies (Indian Accounting Standards)
Amendment Rules, 2025, applicable from 01^st April 2026 onwards.

Ind AS 1 - The amendments, effective in tranches from 01^st April 2025 and 01^st April 2026, clarifies that the Company must
possess a substantive right to defer settlement at the reporting date, and only those covenants requiring compliance on or
before the reporting date shall affect liability classification, while covenants tested after the reporting date require disclosure
without affecting classification. The amendments also clarify the treatment of rollover rights and settlement via equity
instruments, thereby aligning Ind AS more closely with the recent IFRS 1 improvements. The Company is evaluating the impact
of these amendments, which are not expected to have a material effect on its financial position.

Ind AS 118 - Presentation and Disclosure in Financial Statements, formulated in alignment with IFRS 18 and proposed to be
applicable for annual reporting periods beginning on or after 01^st April 2027. Ind AS 118 will replace the existing Ind AS 1 and
is expected to significantly enhance the structure and clarity of financial reporting by introducing five defined categories of
income and expenses, new mandatory subtotals in the statement of profit or loss, and expanded requirements for aggregation,
disaggregation, and disclosure of management-defined performance measures. The Company is evaluating the impact of new
standard on its financial statement presentation.