8. Provisions and contingent liabilities
The Company creates a provision when there is present obligation as a result of a past event and it is probablethat an outflow of resources embodying economic benefits will be required to settle the obligation and a reliableestimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when thereis a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.When the likelihood of outflow of resources is remote, no provision or disclosure is made.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax ratethat reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase inthe provision due to the passage of time is recognised as a finance cost.
9. Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contractconveys the right to control the use of an identified asset for a period of time in exchange for consideration.
As a lessee
A. Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease(i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost,less any accumulated depreciation and impairment losses, and adjusted for any remeasurement oflease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised,initial direct costs incurred, and lease payments made at or before the commencement date lessany lease incentives received. Right-of-use assets are depreciated on a straight-line basis over theshorter of the lease term and the estimated useful lives of the assets.
B. Lease liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at thepresent value of lease payments to be made over the lease term. The lease payments primarilycomprise of fixed payments.
In calculating the present value of lease payments, the Company uses its incremental borrowingrate at the lease commencement date because the interest rate implicit in the lease is not readilydeterminable. After the commencement date, the amount of lease liabilities is increased to reflect theaccretion of interest and reduced for the lease payments made.
Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset ifthe Company changes its assessment of whether it will exercise an extension or a termination option.
10. Foreign currency translation
A. Functional and presentational currency
The standalone financial statements are presented in INR which is also functional currency of the Company.
B. Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency at the spot rate ofexchange ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated into the functionalcurrency at the spot rate of exchange at the reporting date. All differences arising on non-tradingactivities are taken to other income/expense in the Statement of Profit and Loss.
Non-monetary items that are measured at historical cost in a foreign currency are translated usingthe spot exchange rates as at the date of recognition.
The Company recognises a liability to make cash distributions to equity holders of the Company when thedistribution is authorised and the distribution is no longer at the discretion of the Company.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer theliability takes place in the accessible principal market or the most advantageous accessible market as applicable.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficientdata is available to measure fair value, maximising the use of relevant observable inputs and minimisingthe use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements arecategorised within the fair value hierarchy into level 1, level 2 and level 3 based on the lowest level inputthat is significant to the fair value measurement as a whole. (See note 32).
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standardsunder Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended31 March 2026, MCA has notified following amendments to the existing standards applicable to the Company
In May 2025, MCA notified amendments to:
A. Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, w.e.f. 1 April 2025
The amendment specifies how an entity should determine the exchange rate when foreign currency cannotbe obtained within a reasonable time and prescribes related disclosures. The Company has assessed theimpact of this amendment and concluded that it has no material impact on the financial statements.
In August 2025, MCA notified amendments to:
B. Ind AS 1 - Presentation of Financial Statements, applicable w.e.f. 1 April 2025
The amendment relates to classification of liabilities as current or non-current and non-currentliabilities with covenants. In the context of classifying a liability as current, it removes therequirement of existence of a right to defer settlement for at least 12 months after the reporting dateand instead requires that the said right should exist on the reporting date and have substance.
The amendment also introduces guidance on classification of liabilities with covenants. The Companyhas no impact of these amendments in its classification criteria of current and non-current liabilities.
C. Ind AS 7 - Statement of Cash Flows, applicable w.e.f. 1 April 2025
The amendment in Ind AS 7 requires to inform users of financial statements of the existence ofsupplier finance arrangements and explain the nature of the arrangements, the carrying amount ofliabilities and the range of payment due dates. The Company has reviewed the amendment andbased on its evaluation has determined that it does not have any impact in its financial statements.
D. Ind AS 107 - Financial Instruments: Disclosures, applicable w.e.f. 1 April 2025
Ind AS 107 has been amended to add supplier finance arrangements as a factor that may causeconcentration of liquidity risk. The Company has reviewed the amendment and based on itsevaluation has determined that it does not have any impact in its financial statements.
E. Ind AS 12 - Income taxes, applicable w.e.f. 1 April 2025
International Tax Reform - Pillar Two Model Rules applicable immediately - The amendmentsprovide a temporary mandatory relief from deferred tax accounting for top-up tax and disclose thatthey have applied the relief. This relief is immediate and applies retrospectively. The Company hasreviewed the amendment and based on its evaluation has determined that it does not have anyimpact in its financial statements.
All investments in 5A and 5B above are within India.
1. On 8 January 2026, Bajaj Finserv Ltd., an associate company of BHIL, along with its promoter group entities completed theacquisition of 23% equity stake held by Allianz SE in Bajaj General Insurance Ltd. (formerly known as Bajaj Allianz General InsuranceCompany Ltd.) and Bajaj Life Insurance Ltd. (formerly known as Bajaj Allianz Life Insurance Company Ltd.).
Consequent to this transaction, BHIL, as a promoter group entity, acquired 17.56% equity stake in each of Bajaj General InsuranceLtd. and Bajaj Life Insurance Ltd. for an amount aggregating to H 16,333.30 crore.
Subsequently, on 12 March 2026, pursuant to the buyback offer, Allianz SE tendered its entire remaining equity stake of 3% eachin the insurance subsidiaries. Following the completion of the buyback, the equity stake of the Company in each of the insurancecompanies has increased from 17.56% to 18.10%.
As per Ind AS 109, these investments have been measured and classified at Fair Value Through Other Comprehensive Income(FVTOCI.)
2. Disinvested in April 2026.
3. The open ended target maturity funds have a pre-determined maturity date. The Company had an intent to hold these investmentstill maturity. The Company sold these ETFs and hence reclassified balance amount invested in ETFs at FVTPL.
There are no contractual obligations to purchase, construct or develop investment properties.
There are no restrictions on the existence and realisability of investment properties or the remittance ofincome and proceeds of disposal.
Certain investment properties are leased out to tenants under operating leases. Disclosure on future rentreceivable is included in note 30.
Estimation of fair value
The best evidence of fair value is current prices in an active market for similar properties.
Investment properties leased out by the Company are cancellable leases. The market rate for sale/purchase ofsuch premises are representative of fair values. The Company's investment properties are at a location whereactive market is available for similar kind of properties. Hence fair value is ascertained on the basis of marketrates prevailing for similar properties in those location determined by an independent registered valuer andconsequently classified as a level 2 valuation.
b. Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of H 10 per share. Each holder ofequity shares is entitled to one vote per share. The interim dividend declared by the Board of Directorsand the final dividend proposed by the Board of Directors and approved by the shareholders in the annualgeneral meeting is paid in Indian rupees. In the event of liquidation of the Company, the holders of equityshares will be entitled to receive remaining assets of the Company, after distribution of all preferentialamounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
16 Other equity (Contd)b Nature and purpose of reserve
Reserve fund in terms of section 45-IC(1) of the Reserve Bank of India Act, 1934
Reserve fund is created as per the terms of section 45-IC(1) of the Reserve Bank of India Act, 1934 as astatutory reserve.
Securities premium
Securities premium is used to record the premium on issue of shares. The reserve can be utilised only forlimited purposes in accordance section 52 and other provisions of the Companies Act, 2013.
General reserve
General reserve is free reserve available for distribution as recommended by Board in accordance withrequirements of the Companies Act, 2013.
Retained earnings
Retained earnings represents the surplus in Profit and Loss Account that the Company has earned till date,less any transfers to general reserve, special reserve, dividends or other distributions paid to shareholders,reclassification of gain/(loss) on sale of FVTOCI equity instruments and balance of remeasurement of netdefined benefit plans. Retained earnings is a free reserve.
Equity instruments through other comprehensive income
The Company has elected to recognise changes in the fair value of certain investments in equity securitiesin other comprehensive income. These changes are accumulated within the FVTOCI equity investmentsreserve within equity. The Company transfers amounts from this reserve to retained earnings when therelevant equity securities are derecognised.
Debt instruments through other comprehensive income
The Company recognises changes in the fair value of debt instruments held with business objective ofcollect and sell in other comprehensive income. These changes are accumulated within the FVTOCI debtinstruments reserve within equity. The Company transfers amounts from this reserve to the Statement ofProfit and Loss when the debt instrument is sold. Any impairment loss on such instruments is reclassifiedimmediately to the Statement of Profit and Loss.
Hedge instruments through other comprehensive income
It represents the effective portion of the fair value of forward contracts designated as cashflow hedge.
Notes:
1. The funding for ongoing projects is delayed. Unspent amount pertaining to the commitments madeby the Company towards multi-year ongoing projects in progress has been transferred to a separateUnspent CSR bank account of the Company. The amount transferred to the aforesaid Unspent CSR accountwill be spent for the said projects within the permissible time limit. Accordingly, the Company has dulycomplied with section 135 of the Act read with rules issued thereunder and the CSR policy of the Company.
2. The Company's corporate social responsibility initiatives are strategically focused on youth skilling, childeducation, child health, child protection, and inclusion for persons with disabilities.
Valuation principles
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction in the principal (or most advantageous) market at the measurement date under current marketconditions (i.e., an exit price), regardless of whether that price is directly observable or estimated usinga valuation technique.
In order to show how fair values have been derived, financial instruments are classified based on a hierarchy ofvaluation techniques, as explained below
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets.Quotes would include rates/values/valuation references published periodically by BSE, NSE etc. basis whichtrades take place in a linked or unlinked active market. This includes traded bonds and mutual funds, as thecase may be, that have quoted price/rate/value.
Level 2: The fair value of financial instruments that are not traded in an active market are determined usingvaluation techniques which maximise the use of observable market data (either directly as prices or indirectlyderived from prices) and rely as little as possible on entity-specific estimates. If all significant inputs required tofair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument isincluded in level 3. This is the case for unlisted equity securities, contingent consideration and indemnificationasset included in level 3.
Valuation techniques used to determine fair value
Valuation techniques used to determine fair value include
• Open ended mutual funds and certain bonds and debentures at NAV's/rates declared and/or quoted.
• Close ended mutual funds at NAV's declared by AMFI.
• For government debt securities, values with references to prevailing yields to maturity matching tenure,quoted on sites of credible organisation such as FBIL (Financial Benchmark of India Ltd.).
• For other bonds and debentures values with references to prevailing yields to maturity matching tenures,quoted on sites of credible organisation such as ICRA (Investment Information and Credit Rating Agency).
• Commercial papers and certificate of deposits, being short term maturity papers, amortised cost is assumedto be the fair value.
33 Financial risk management
The Company has operations in India. Whilst risk is inherent in the Company's activities, it is managed througha risk management framework, including ongoing identification, measurement and monitoring subject to risklimits and other controls. The Company's activities expose it to credit risk, liquidity risk and market risk.
This note explains the sources of risk which the Company is exposed to and how the entity manages the risk.
The Board of Directors provide guiding principles for overall risk management, as well as policies coveringspecific areas, such as, credit risk, liquidity risk, and investment of available funds. The Company's riskmanagement is carried out by its Risk Management Committee as per the policies approved by the Boardof Directors. Accordingly, the Company's Risk Management Committee identifies, evaluates and managesfinancial risks.
A. Credit risk
The Company being an investment company, credit risk refers to the risk that a counterparty may defaulton its contractual obligations leading to a financial loss to the Company. Credit risk primarily arises fromcash equivalents, financial assets measured at amortised cost, FVTOCI and FVTPL.
Credit risk management
For investments, the Company has an Investment Policy which allows the Company to invest only withcounterparties having a credit rating equal to or above AA- and P1 . The substantial portion of surplusfunds of the Company are invested with counterparties having a credit rating equal to or above AA .
The Company reviews the creditworthiness of these counterparties on an on-going basis. Counter partylimits maybe updated as and when required subject to approval of Board of Directors.
B. Liquidity risk
The Company's principal sources of liquidity are 'cash and cash equivalents' and cash flows that aregenerated from operations. The Company believes that its working capital is sufficient to meet the financialliabilities within maturity period. The Company has no borrowings.
Additionally, the Company has invested its surplus funds in debt securities or instruments of similar profilethereby ensuring safety of capital and availability of liquidity as and when required. Hence, the Companycarries a negligible liquidity risk.
C. Interest rate risk
Interest rate risk is the fair value of future cash flows of a financial instrument which fluctuates because ofchanges in the market interest rates. In order to optimise the Company's position with regards to interestincome, treasury team manages the interest rate risk by diversifying its portfolio across tenures.
D. Price risk
The Company's exposure to equity securities risk arises from investments held by the Company andclassified in the Balance Sheet as FVTOCI (see note 32).
To manage its price risk arising from investments in equity securities, the Company diversifies its portfolioacross capitalisation sectors with large cap bias and active monitoring of the portfolio constituents andnews flow using relevant application tools. Diversification of the portfolio is in accordance with InvestmentPolicy of the Company.
Majority of Company's equity investments are publicly traded and are included in the NSE Nifty 200 index.
As regards investments in unlisted privately held companies, the fair valuations are largely dependenton the investee company's ability to achieve desired outcomes which measure the performance of theCompany and bear on the valuation. Hence the key price risk emanates from performance shortfall due toindustry risks, policy changes and liquidity risk given the lower exit probability.
E. Other risk (Market risk)
The Company has deployed its surplus funds in equity, debt, money market and other instruments(including through funds). The Company is exposed to price and volatility risk on such investments.
The Company has strategic asset allocation benchmarks and risk limits, including financial VaR and interestrate and equity sensitivity limits. These limits are monitored and reported to the decision-making bodies.
Temporary market shocks are not considered to have material impacts on these Investments.
Nevertheless, the Company has invested its surplus funds primarily in debt instruments with CRISIL AAA& STABLE A1 rating and thus the Company does not have significant risk exposure here.
34 Capital management
a) Objectives, policies and processes of capital management
The Company is cash surplus and has only equity capital. The Company operates as an Investment Companyand consequently is registered as a Non-Banking Financial Institution - Investment and Credit Company('NBFC-ICC') with the Reserve Bank of India (RBI). On 12 November 2025, BHIL filed an application tore-categorise the Company into an Unregistered Core Investment Company (CIC) from NBFC-ICC and thesame is currently under review by the Reserve Bank of India (RBI). The Company has realigned its investmentportfolio as per RBI's CIC guidelines.
The cash surpluses are currently invested in equity, debt, money market and other instruments(including through funds) depending on economic conditions in line with Investment Policy set by the Management.Safety of capital is of prime importance to ensure availability of capital for operations. Investment objective is toprovide safety and adequate return on the surplus funds.
The Company does not have any borrowings.
36 Schedule to Balance Sheet as on 31 March 2026 (Contd.)
1. As defined in the Reserve Bank of India (Non-Banking Financial Companies -Acceptance of PublicDeposits) Directions, 2025
2. Provisioning norms shall be applicable as prescribed in these Directions.
3. All notified Ind AS prescribed under section 133 of the Companies Act 2013 and Guidance Notes issuedby ICAI are applicable including for valuation of investments and other assets as also assets acquired insatisfaction of debt. However, market value in respect of quoted investments and break up/fair value/
NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified aslong-term (amortised cost in the case of Ind AS) or current (fair value in the case of Ind AS) in (5) above.
15. Miscellaneous Disclosures
a) Registration obtained from other financial sector regulators
Apart from RBI, the Company is also governed by Securities and Exchange Board of India andMinistry of Corporate Affairs.
b) Disclosure of penalties imposed by RBI and other regulators
During previous year, no penalty was imposed by RBI or other regulators.
d) Ratings assigned by credit rating agencies and migration of ratings during the year
Not applicable
Note
The Company is a non-deposit taking/accepting NBFC. It does not carry out lending/securitisation activity.Hence, there are 'Nil' values in respect of following disclosures -
1. Derivatives
• Forward rate agreement/interest rate swap
• Exchange traded interest rate (IR) derivatives
• Qualitative disclosures on risk exposure in derivatives
• Quantitative disclosures on risk exposure in derivatives
2. Securitisation
• Disclosures relating to securitised assets etc.
• Details of financial assets sold to securitisation/reconstruction company for asset reconstruction
• Details of assignment transactions undertaken by NBFCs
• Details of non-performing financial assets purchased/sold
3. Details of financing of parent company products
4. Details of single borrower limit (SBL)/group borrower limit (GBL) exceeded by the NBFC
5. Unsecured advances
6. Concentration of deposits, advances, exposures and NPAs
• Concentration of deposits (for deposit taking NBFCs)
• Concentration of advances
• Concentration of exposures
• Concentration of NPAs
• Sector-wise NPAs
• Movement of NPAs
7. Overseas assets (for those with joint ventures and subsidiaries abroad)
8. Off-balance sheet SPVs sponsored
9. Disclosure of customer complaints
10. Sectoral exposure and NPA disclosure
11. Intra group exposure with respect to borrowing and lending
12. Unhedged foreign currency exposure
13. Loans to directors, senior officers and relatives of directors
14. Comparison between provisions required under IRACP and impairment allowances made under Ind AS 109
a. The Company has performed an assessment to identify transactions with struck off companies as at31 March 2026 and no such company was identified.
b. No funds (which are material either individually or in the aggregate) have been advanced or loaned orinvested (either from borrowed funds or share premium or any other sources or kind of funds) by theCompany to or in any other person(s) or entity(ies), including foreign entities ('Intermediaries'), withthe understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly orindirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalfof the Company ('Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf of theUltimate Beneficiaries.
c. No funds (which are material either individually or in the aggregate) have been received by theCompany from any person(s) or entity(ies), including foreign entities ('Funding Parties'), with theunderstanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly,lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of theFunding Parties ('Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf of theUltimate Beneficiaries.
d. The Company has not traded or invested in crypto currency or virtual currency during the financial year.
e. The Company does not have any Benami property, where any proceeding has been initiated or pendingagainst the Company for holding any Benami property.
f. Figures for the previous periods have been regrouped, wherever necessary, to make them comparablewith the current period.
There have been no events after the reporting date that require disclosure in these financial statements.
Amounts less than H 50,000 have been shown at actual against respective line items statutorily required to
be disclosed.