2.16. 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. Provisions are not discounted to their present
value and are determined based on management estimate
required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted
to reflect the current management estimates.

2.17. TAXES

2.17.1 Current income tax

Current tax is measured on the basis of estimated taxable
income for the current accounting period in accordance with
the applicable tax rates and the provisions of the Income-tax
Act, 1961, and the rules framed thereunder.

Current income tax assets and liabilities are measured at
the amount expected to be recovered from or paid to the
taxation authorities.

Current income tax relating to items recognised outside profit
or loss is recognised outside profit or 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.
Management periodically evaluates positions taken in the
tax returns with respect to situations in which applicable
tax regulations are subject to interpretation and established
provisions where appropriate.

2.17.2. Deferred tax

Deferred tax is provided using the balance sheet approach on
temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
purposes at the reporting date.

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 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 and the same taxation authority.

2.18. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders (after deducting preference dividends and
attributable taxes) by the weighted average number of
equity shares outstanding during the period. The weighted
average numbers of equity shares outstanding during the
period are adjusted for events of bonus issue; bonus element
in a rights issue to existing shareholders; share split; and
reverse share split, if any.

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

2.19. USE OF ESTIMATES

The preparation of financial statements in conformity
with IND AS requires the management to make judgments,
estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities and the disclosure
of contingent liabilities, at the end of the reporting period.

Although these estimates are based on the management's
best knowledge of current events and actions, uncertainly
about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying
amounts of assets or liabilities in future periods.

2.20. SEGMENT REPORTING

The Company's business is to provide Brokerage service,
further, the Company also invests in security as a part of the
business activity and portfolio management services ('PMS')
to its clients within India and the reportable segment is basis
the above business segments.

Segment Revenue and expenses have been identified to
segments on the basis of their relationship to the operating
activities of the Business segment. Revenue and expenses,
which relate to the Company as a whole and are not allocable
to segments on a reasonable basis, have been included
under "Unallocated expenses/income". Segment assets
and liabilities include those directly identifiable with the
respective segments. Unallocable corporate assets and
liabilities represent the assets and liabilities that relate to
the Company as a whole and not allocable to any segment.

The Company prepares its segment information in conformity
with the accounting policies adopted for preparing and
presenting the financial statements of the Company.

2.21. RECENT ACCOUNTING PRONUNCEMENTS

The Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to existing standards under the
Companies (Indian Accounting Standards) Rules from time to
time. MCA has notified amendments to Ind AS 1 - Presentation
of Financial Statements (classification of liabilities as current
or non current, including liabilities with covenants), Ind AS 12
- Income Taxes (International Tax Reform - Pillar Two Model
Rules), Ind AS 21 - The Effects of Changes in Foreign Exchange
Rates (Lack of Exchangeability), and Ind AS 7 - Statement
of Cash Flows and Ind AS 107 - Financial Instruments:

Disclosures (Supplier Finance Arrangements), effective from
1^st April 2025. The Company has reviewed these amendments
and based on its evaluation, has determined that they do not
have any impact on the Company's financial statements.

New standards or amendments not yet adopted

Classification of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants - Amendments to Ind
AS 1- The amendments clarify that lender waivers obtained
after the reporting date cannot be considered for the purpose
of classifying liabilities as current or noncurrent and require
retrospective application in accordance with Ind AS 8. These
amendments are effective for reporting periods beginning
on or after 1^st April 2026. The Company does not expect any
material impact on its financial statements.

Terms/Rights attached to Preference Shares

a) Preference Shares - 4% Redeemable Non-Convertible Non-Cumulative of ?100/- each fully paid

The Company has issued 16,00,000 4% Non-Cumulative Non-Convertible Redeemable Preference Shares of ?100/- each fully paid
for cash, at an issue price of ?500/- per share, including premium of ?400/- per share, aggregating to ?80 crore on 24^th December
2021. During the year, the Company has decided to extend the redemption period by one year, and accordingly a valuation has
been carried out. Based on the said valuation, the Preference Shares are now redeemable on 23^rd December 2026 at a redemption
price of ?687.44 per share (earlier redeemable on 23^rd December 2025 at ?639/- per share).

b) Shares held by Holding Company

Shares held by Holding Company Aditya Birla Capital Limited:

31^st March 2026 16,00,000 (Previous Year: 16,00,000) 4% Redeemable Non-Convertible Non-Cumulative Preference Shares of
? 100/- each fully paid-up.

2) Term/Right Attached to Equity Shares

The Company has only one class of equity shares having a par value of ? 1/- per share. Each holder of equity shares is entitled to
one vote per share. The dividend proposed by the Board of Directors, if any, 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 to all preferential holders. The distribution will be in proportion to the number of the equity shares held by
the shareholders.

_NUTt FINANCIAL INSTRUMENTS-ACCOUNTING CLASSIFICATIONS AND FAIR VALUE

^NUl t. iiA measurements

The management assessed that the fair value of cash and cash equivalents, Security deposits, Staff Advances, Subordinate Liabilities,
Debt securities, trade receivables, margin with exchanges, trade payables, bank balances and other current liabilities approximate
their carrying amount.

With respect to Investments Refer Note 5 are fair valued based on quoted price available in the active market (Level 1).

NOTE: 33B FINANCIAL RISK

The following table provides the Liquidity risk of Company's Liabilities as on 31^st March 2026 & 31^st March 2025 and the liquidity risk of
Company's financial assets are analysed and disclosed under Notes 32 of maturity analysis of Assets.

NOTE: 34 STAMP DUTY

Hitherto, the Company had been collecting and remitting stamp duties with respect to states wherein the manner of payment of the
same has been prescribed by the respective state governments. From July 2011, the Company had started collecting stamp duty on
contract notes for all states, including the states wherein the manner of payment has not yet been notified. The Company is evaluating
various options of remitting the same, including remitting those amounts in the State of Tamil Nadu, as all the contract notes are
executed at Tamil Nadu. Pending, the final determination of the manner of remittance, amount of ? 164.90 Lakhs- (PY: ? 164.90 Lakhs)
collected till 30^th June 2020 has been disclosed under statutory dues in other Non-Financial liabilities.

NOTE: 35 MANAGERIAL REMUNERATION

During the earlier years the Company had made an application to the Central Government under Section 309 (5B) of the Companies Act,
1956 for seeking waiver of excess managerial remuneration amounting to ? 30.95 Lakhs (Previous year: ? 30.95 Lakhs) (excluding statutory
contribution to provident fund, gratuity and leave encashment which are exempted under Schedule VI) paid to Mr. P.B. Subramaniyan,
the erstwhile Whole-time Director ('Erstwhile Director') of the Company for the period from 1^st April 2008 to 6^th March 2009.

During the earlier years, the Company has received an order from the Central Government (CG) whereby the CG has rejected excess
remuneration of ? 16.27 Lakhs (Previous year: ? 16.27 Lakhs) and directed the Company to collect the same from the Erstwhile Director.
Further the Company has filed a civil suit in the High Court of Judicature at Madras vide C.S. No. 53/2016 seeking recovery of the excess
remuneration paid to Mr. P.B. Subramaniyan. After hearing both sides and post perusing documentary evidence, the Hon'ble Court
finally passed a judgement concluding that the Company failed to prove their case based on the records produced before the court.

In the financial year 2024-25 Management in the course of review, considering the given circumstances that there are no strong grounds
of appeal to pursue this recovery further, decided to write-off this advance from the books.

NOTE: 36 FOREIGN CURRENCY TRANSACTIONS

The Company did not enter into any foreign currency transactions in the current year and previous year.

NOTE: 37 CAPITAL MANAGEMENT

For the purpose of the Company's Capital management, Capital includes issued equity capital, subordinated liabilities and other
equity reserves attributable to the equity holders. The primary objective of the Company's capital management is to maximize the
shareholder value, comply to the regulatory requirements and maintain an optimal capital structure to reduce the cost of capital to the
Company. The Company makes adjustments in light of changes in economic conditions and the requirements of the applicable financial
covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital
to shareholders or issue new shares.

NOTE: 38 CREDIT RISK

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract leading to a
financial loss. The Company's exposure to credit risk is very minimal as the trade receivables are covered by collateral.

Trade receivables are consisting of a large number of customers. The Company has credit evaluation policy for each customer and
based on the evaluation, credit limit of each customer is defined. Wherever the Company assesses the credit risk as high, the exposure
is backed by either stocks comfort or margin money

NOTE: 39 CONTINGENT LIABILITIES

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised
because it is not probable that an outflow of resources will be required to settle the obligation.

A present obligation that arises from past events, where it is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Claims against the Company, where the
possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

The Company does not recognize a contingent liability in the financial statements except when the management decides to recognize
basis the probability of the contingent liability devolving on the Company.

Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be
realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.

NOTE: 40 INCOME TAX

The Company offsets tax assets and liabilities if it has legally enforceable right to set off current taxes assets and current taxed liabilities
and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Deferred Tax:

Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences
between the carrying amount of an asset or liability in the balance sheet and its tax base.

NOTE: 41 LEASE DISCLOSURES

Disclosure Pursuant to Indian Accounting Standard 116 - Leases is as under:

Transition:

Effective Aprill, 2019, the Company adopted Ind AS 116 "Leases" and applied the standard to all lease contracts existing on Aprill, 2019
using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application.
Consequently, the Company recorded the lease liability at the present value of the lease payments discounted at the incremental
borrowing rate and the right of use asset at its carrying amount as if the standard had been applied since the commencement date of
the lease, but discounted at the lessee's incremental borrowing rate at the date of initial application.

The following is the summary of practical expedients elected on initial application:

1. Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.

2. Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the
date of initial application.

3. Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

4. Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly for all contracts as
on 1^st April 2019, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.

The weighted average incremental borrowing rate applied to lease liabilities as at 31^st March 2026 is between the ranges of 5.66% to
8.10% for a period varying from 1 to 10 years.

Critical accounting judgements and key sources of estimation uncertainty

Critical judgements required in the application of Ind AS 116 may include, among others, the following:

• Identifying whether a contract (or part of a contract) includes a lease;

• Determining whether it is reasonably certain that an extension or termination option will be exercised;

• Classification of lease agreements (when the entity is a lessor);

• Determination of whether variable payments are in-substance fixed;

• Establishing whether there are multiple leases in an arrangement;

• Determining the stand-alone selling prices of lease and non-lease components.

Key sources of estimation uncertainty in the application of Ind AS 116 may include, among others, the following:

• Estimation of the lease term;

• Determination of the appropriate rate to discount the lease payments;

• Assessment of whether a right-of-use asset is impaired.

NOTE: 42 EMPLOYMENT BENEFIT DISCLOSURES
Defined Contribution Plan

The amounts charged to the Statement of Profit and Loss during the year for Provident fund contribution aggregates to ? 420.10 Lakhs
(Previous year - ? 349.87 Lakhs), NPS contribution fund contribution aggregates to ? 48.49 Lakhs,- (Previous year - ? 34.09 Lakhs) and
employees' state insurance contribution aggregates to ? 0.19 Lakhs (Previous year - ? 0.34 Lakhs).

Defined Benefit Plan

General Description of the plan:

The Company operates gratuity plan through a trust wherein every employee is entitled to the benefit equivalent to fifteen days salary
last drawn for each completed year of service. The same is payable on termination of service or retirement, whichever is earlier. The
benefit vests after five years of continuous service. In case of some employees, the Company's scheme is more favourable as compared
to the obligation under Payment of Gratuity Act, 1972.

Nature of Benefits

The Company operates a defined benefit final salary gratuity plan which is open to new entrants. The gratuity benefits payable to the
employees are based on the employee's service and last drawn salary at the time of leaving. The employees do not contribute towards
this plan and the full cost of providing these benefits are met by the Company.

Regulatory Framework:

There are no minimum funding requirements for a gratuity plan in India. The trustees of the gratuity fund have a fiduciary responsibility
to act according to the provisions of the trust deed and rules. Since the fund is income tax approved, the Company and the trustees
have to ensure that they are at all times fully compliant with the relevant provisions of the income tax and rules. Besides this if the
Company is covered by the Payment of Gratuity Act, 1972 then the Company is bound to pay the statutory minimum gratuity as
prescribed under this Act.

Governance of The Plan:

The Group has setup an income tax approved irrevocable trust fund to finance the plan liability. The trustees of the trust fund are
responsible for the overall governance of the plan.

Inherent Risks:

The plan is of a final salary defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining
to the plan. In particular, there is a risk for the Company that any adverse salary growth or demographic experience or inadequate
returns on underlying plan assets can result in an increase in cost of providing these benefits to employees in future. Since the benefits
are lump sum in nature the plan is not subject to any longevity risks.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded
status and amounts recognised in the balance sheet for the gratuity plan.

Funding Arrangement and Policy

The money contributed by the Company to the fund to finance the liabilities of the plan has to be invested.

The trustees of the plan are required to invest the funds as per the prescribed pattern of investments laid out in the income tax rules
for such approved schemes. Due to the restrictions in the type of investments that can be held by the fund, it is not possible to explicitly
follow an asset-liability matching strategy to manage risk actively.

There is no compulsion on the part of the Company to fully pre fund the liability of the Plan. The Company's philosophy is to fund the
benefits based on its own liquidity and tax position as well as level of underfunding of the plan.

Sensitivity Analysis Method

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation, and assuming there are no
other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and
assumptions used in preparing the sensitivity analysis.

NOTE: 43 EMPLOYEE STOCK OPTION
ABCL - Employee Stock Option Scheme - 2017

Pursuant to ESOP Plan being established by the Holding Company (i.e. Aditya Birla Capital Limited), stock options were granted to the
employees of the Company during the financial year. Total cost incurred by the Holding Company till date is being recovered from the
Company over the period of vesting. Accordingly, a sum of ? 2.27 lakhs (Previous year - ? 12.4 lakhs) has been recovered from the
Company during the year, which has been charged to the Statement of Profit and Loss.

NOTE: 44 SEGMENT REPORTING

The Company's business is to provide brokerage service, wholesale debt market and others ('PMS') to its clients in the capital markets
within India. All other activities of the Company revolve around these activities.

NOTE: 47 DISPUTED IMMOVABLE PROPERTY HELD IN NAME OF THE COMPANY

The Company has a land of ? 15 Lakhs in the name of Apollo Sindhoori Capital Investments Limited (Currently known as Aditya Birla
Money Limited) and the title is under dispute and the matter is in sub judice.

The land could not be registered or transferred onto the Company due to pendency at District Court at Sanga reddy. As per the court
order, the parties (including Company) were required to maintain status quo with respect to schedule property until further orders.

The Company has a process whereby periodically all long term contracts, if any, are assessed for material foreseeable losses. As at the
balance sheet date, there were no long term contracts (including derivative contracts).

NOTE: 50

The Company's pending litigations comprise of claims against the Company primarily by the customers and proceedings pending with
Income Tax and other statutory authorities. The Company has reviewed all its pending litigations and proceedings and has adequately
provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The
Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results. Refer Note 39
for details on contingent liabilities.

NOTE: 51

Disclosure Pursuant to Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956, the Company disclose the
following details of struck off Companies

No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed
funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign
entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

NOTE: 53

No funds (which are material either individually or in the aggregate) have been received by the Company from any person(s) or entity(ies),
including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company
shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

NOTE: 54 CAPITAL COMMITMENT

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances): Nil (Previous year: Nil ).

NOTE: 55 OTHER STATUTORY INFORMATION

(a) The Company has not revalued any of its property, plant and equipment (including Right of Use assets) and intangible assets during
the year.

(b) The Company is not holding any benami property under the Benami Transactions (Prohibition) Act, 1988.

(c) The Company has not been declared a wilful defaulter by any bank or financial institution or government or any government authority.

(d) The Company has no charges or satisfaction to be registered which is yet to be registered with the Register of Companies beyond
the statutory period.

(e) The Company has not entered into any scheme of arrangement under Section 230 to 237 of the Companies Act 2013.

(f) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961.

(g) There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax
assessments under the Income Tax Act, 1961 during the year.

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

(i) No loans or advances in the nature of loans are granted to promoters, Directors, Key Managerial Personnel and the related parties
(as defined under the Companies Act, 2013) either severally or jointly with any other person.

(j) The Company is required to submit gross debit balance (excluding credit balance) as at period end after making an adjustment for
transactions for which settlement is not due. Post these adjustments, the amount reported are in agreement with unaudited
books of accounts.

(k) The Company has utilised the funds for the purposes for which the loans were obtained.

NOTE: 55A CHANGES TO EMPLOYEE BENEFITS UPON NOTIFICATION OF LABOUR CODES

The Government of India notified the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020,
and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively, the "Labour Codes"). These Labour Codes, which
became effective from 21^st November 2025, consolidate and rationalise 29 labour laws and introduce, among other matters, a uniform
definition of "Wages". The Labour Codes have also modified certain employee benefits and the related eligibility conditions. Accordingly,
during the year, the Company amended its policies relating to employee benefits to align such benefits with the requirements of the
Labour Codes. The changes include (i) alignment of the definition of wages for social security contributions and provisions, (ii) revisions
to compensated absences entitlement and encashment rules, and (iii) modifications to gratuity related terms.

Past service cost resulting from plan amendments amounting to ? 3.13 crore has been recognised immediately in the Statement of
Profit and Loss and has been classified as part of "Exceptional Items".

NOTE: 56 AUDIT TRAIL

As per the Rule 3(1) of Companies (Accounts) Rules, 2022, as amended, requires the companies for the financial year commencing on
or after 1^st April 2023, which uses accounting software for maintaining their books of account, to use only such accounting software
which has audit trail feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books
of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

For the purpose of this Rule, accounting software Sun Infor and Lidha Didha (LD) have been identified as books of accounts. These
accounting software have the feature of recording audit trail (edit log) facility except audit trail feature was not enabled at the database
level for the above mentioned accounting software.