3.9 Provisions, Contingent Liability and Contingent Assets

A provision is recognised when the Company has a present
obligation as a result of past events and it is probable
that an outflow of resources will be required to settle
the obligation in respect of which a reliable estimate can
be made. Provisions are determined based on the best
estimate required to settle the obligation at the balance
sheet date. Contingent liability is disclosed for (1) Possible
obligations which will be confirmed only by future events
not wholly within the control of the Company or (2)
Present obligations arising from past events where it is not
probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount
of the obligation cannot be made. Contingent Assets are
not recognised in the financial statements.

3.10 Retirement and other employee benefits

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
recognizes 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 recognized as
a liability after deducting the contribution already paid.
If the contribution already paid exceeds the contribution
due for services received before the balance sheet date,
then excess is recognized as an asset to the extent that
the pre-payment will lead to, for example, a reduction in
future payment or a cash refund.

The Company has unfunded defined benefit plans Gratuity
plan and Compensated absences plan for all eligible
employees, the liability for which is determined on the
basis of actuarial valuation at each year end. Separate
actuarial valuation is carried out for each plan using the
projected unit credit method. Superannuation (Pension
& Medical coverage) payable to a Director on retirement
is also actuarially valued at the end of the year using the
Projected Unit Credit Method.

Remeasurements, comprising of actuarial gains and losses,
the effect of the asset ceiling, excluding amounts included
in net interest on the net defined benefit liability 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. Remeasurements are not
reclassified to profit or loss in subsequent periods.

3.11 Taxes

Tax expense comprises current and deferred tax.

Current income tax

Current income 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 at the
reporting date.

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.

Deferred tax

Deferred tax is provided using the liability method 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 relating to items recognised outside profit
or loss is recognised outside profit or 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 and the same taxation
authority.

3.12 Earning per equity 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. Partly paid equity
shares are treated as a fraction of an equity share to the
extent that they are entitled to participate in dividends
relative to a fully paid equity share during the reporting
year.

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.

3.13 Share based payments

Equity-settled share based payments to employees and
others providing similar services 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. 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 Stock Compensation
Adjustment Reserve.

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

3.14 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.

3.14.1 Financial Assets

3.14.1.1 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
instruments at initial recognition depends on their purpose
and characteristics and the management's intention when
acquiring them. All financial assets are recognised initially
at fair value plus, in the case of financial assets not recorded
at fair value through profit or loss, transaction costs that
are attributable to the acquisition of the financial asset.

3.14.1.2 Classification and Subsequent measurement

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

• Debt instruments at amortised cost

• Debt instruments at fair value through other
comprehensive income (FVTOCI)

• Debt instruments and equity instruments at fair value
through profit or loss (FVTPL)

• Equity instruments measured at fair value through
other comprehensive income (FVTOCI)

3.14.1.3 Debt instruments at amortised costs

A 'debt instrument' is measured at the amortised cost if
both the following conditions are met:

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

• 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.

Business model: The business model reflects how the
Company manages the assets in order to generate cash
flows. That is, where the Company's objective is solely to
collect the contractual cash flows from the assets, the same
is measured at amortized cost or where the Company's
objective is to collect both the contractual cash flows
and cash flows arising from the sale of assets, the same
is measured at fair value through other comprehensive
income (FVTOCI). If neither of these is applicable (e.g.
financial assets are held for trading purposes), then the
financial assets are classified as part of 'other' business
model and measured at FVPL.

SPPI: Where the business model is to hold assets to
collect and earn contractual cash flows (i.e. measured
at amortized cost), the Company assesses whether
the financial instruments' cash flows represent solely
payments of principal and interest (the 'SPPI test').
In making this assessment, the Company considers
whether the contractual cash flows are consistent with
a basic lending arrangement i.e. interest includes only
consideration for the time value of money, credit risk,
other basic lending risks and a profit margin that is
consistent with a basic lending arrangement. Where the
contractual terms introduce exposure to risk or volatility
that are inconsistent with a basic lending arrangement,
the related financial asset is classified and measured at
fair value through profit or loss. The amortized cost, as
mentioned above, is computed using the effective interest
rate method.

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

3.14.1.4 Debt instruments at FVOCI

A 'debt instrument' is classified as at the FVTOCI if both of
the following criteria are met:

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

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

3.14.1.5 Debt instruments at FVTPL

FVTPL is a residual category for debt instruments. Any
debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL.

In addition, the Company may elect to designate a debt
instrument, which otherwise meets amortized cost or
FVTOCI criteria, as at FVTPL. However, such election
is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to as
'accounting mismatch'). Debt instruments included within
the FVTPL category are measured at fair value with all
changes recognized in the Statement of Profit and Loss.

3.14.1.6 Equity Investments

All equity investments in scope of Ind AS 109 are measured
at fair value. Equity instruments which are held for trading
classified as at FVTPL. For all other equity instruments, the
Company may make an irrevocable election to present
in other comprehensive income subsequent changes in
the fair value. The Company makes such election on an
instrument-by- instrument basis. The classification is made
on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as
at FVTOCI, then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. There is
no recycling of the amounts from Other Comprehensive
Income to Statement of Profit and Loss, even on sale of
investment. However, the Company may transfer the
cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are
measured at fair value with all changes recognized in the
Statement of Profit and Loss.

3.14.2 Financial Liabilities

3.14.2.1 Initial recognition and measurement

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. All financial liabilities are recognised
initially at fair value and, in the case of borrowings and
payables, net of directly attributable transaction costs.

The Company's financial liabilities include trade and other
payables, loans and borrowings including bank overdrafts
and derivative financial instruments.

3.14.2.2 Borrowings

After initial recognition, interest-bearing borrowings are
subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in Statement of
Profit and Loss when the liabilities are derecognised as
well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation
is included as finance costs in the statement of profit and
loss. This category generally applies to borrowings.

3.14.3 Derivative financial instruments

The Company holds derivatives to mitigate the risk of
changes in exchange rates on foreign currency exposures
as well as interest fluctuations. The counterparty for these
contracts is generally a bank. Derivatives that are not
designated a hedge are categorized as financial assets
or financial liabilities, at fair value through profit or loss.
Such derivatives are recognized initially at fair value
and attributable transaction costs are recognized in the
Statement of Profit and Loss when incurred. Subsequent
to initial recognition, these derivatives are measured at
fair value through profit or loss and the resulting gains or
losses are included in Statement of Profit and Loss.

3.14.4 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. Financial
liabilities are never reclassified.

3.14.5 De recognition of financial assets and liabilities

3.14.5.1 Financial Assets

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

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
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, excluding short-term
advances with the right to full recovery of the amount
lent plus accrued interest at market rates.

• 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.

Continuing involvement that takes the form of a guarantee
over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum
amount of consideration the Company could be required
to pay.

If continuing involvement takes the form of a written or
purchased option (or both) on the transferred asset, the
continuing involvement is measured at the value the
Company would be required to pay upon repurchase.
In the case of a written put option on an asset that is
measured at fair value, the extent of the entity's continuing
involvement is limited to the lower of the fair value of the
transferred asset and the option exercise price. The profit
or loss on derecognition is recognized in the Statement of
profit and loss.

Derecognition due to modification of terms and
conditions

The Company de-recognizes a financial asset, when the
terms and conditions have been renegotiated to the
extent that, substantially, it becomes a new loan, with the
difference recognised as a derecognition gain or loss, to
the extent that an impairment loss has not already been
recorded. The newly recognised loans are classified as
Stage 1 for ECL measurement purposes, unless the new
loan is deemed to be Purchase Oriented Credit Impaired
("POCI")

If the modification does not result in cash flows that
are substantially different, the modification does not
result in derecognition. Based on the change in cash
flows discounted at the original EIR, the Group records a
modification gain or loss, to the extent that an impairment
loss has not already been recorded.

3.14.5.2 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 profit or loss.

3.15 Impairment of financial assets

3.15.1 Overview of the Expected Credit Loss(ECL) principles

The Company is recording the allowance for expected
credit losses for all loans and other debt financial assets
not held at FVTPL, together with loan commitments and

financial guarantee contracts, (in this section all referred
to as 'financial instruments'). Equity instruments are not
subject to impairment under IND AS 109.

The ECL allowance is based on:

a) 12 months' expected credit loss (12mECL) where
there is no significant increase in credit risk since
origination and

b) on the credit losses expected to arise over the life of
the asset (the lifetime expected credit loss or LTECL)

The 12mECL is the portion of LTECL that represents the ECL
that results from default events on a financial instrument
that are possible within the 12 months after the reporting
date.

Both LTECL and 12mECL are calculated on individual and
collective basis, depending on the nature of the underlying
portfolio of financial instruments. The Company has
established a policy to perform an assessment, at the
end of each reporting period, of whether a financial
instrument's credit risk has increased significantly since
initial recognition.

Based on the above process, the Company groups its loans
into Stage 1, Stage 2, Stage 3, as described below:

Stage 1 : When loans are first recognised, the Company
recognises an allowance based on 12mECL. Stage 1 loans
also include facilities where the credit risk has improved
and the loan has been reclassified from Stage 2 or Stage 3.

Stage 2: When a loan has shown a significant increase
in credit risk since origination, the Company records
an allowance for the LTECL. Stage 2 loans also include
facilities, where the credit risk has improved and the loan
has been reclassified from Stage 3.

Stage 3: Loans considered credit-impaired. The Company
records an allowance for the LTECL.

3.15.2 The calculation of ECL

The Company calculates ECL based on a probability-
weighted scenarios and historical data to measure the
expected cash shortfalls, discounted at an approximation
to the EIR. A cash shortfall is the difference between the
cash flows that are due to an entity in accordance with
the contract and the cash flows that the entity expects to
receive.

The mechanics of the ECL calculations are outlined below
and the key elements are, as follows:

• PD - The Probability of Default is an estimate of the
likelihood of default over a given time horizon. A
default may only happen at a certain time over the
assessed period, if the facility has not been previously

derecognised and is still in the portfolio.

• EAD - The Exposure at Default is an exposure at a
default date.

• LGD - The Loss Given Default is an estimate of the
loss arising in the case where a default occurs at
a given time. It is based on the difference between
the contractual cash flows due and those that the
lender would expect to receive, including from the
realisation of any collateral. It is usually expressed as
a percentage of the EAD.

The maximum period for which the credit losses are
determined is the expected life of a financial instrument.

The mechanics of the ECL method are summarised below:

Stage 1: The 12mECL is calculated as the portion of LTECL
that represent the ECL that result from default events
on a financial instrument that are possible within the 12
months after the reporting date. The Company calculates
the 12mECL allowance based on the expectation of a
default occurring in the 12 months following the reporting
date. These expected 12-month default probabilities are
applied to an EAD and multiplied by the expected LGD.

Stage 2: When a loan has shown a significant increase
in credit risk since origination, the Company records an
allowance for the LTECL. The mechanics are similar to
those explained above, but PDs and LGDs are estimated
over the lifetime of the instrument.

Stage 3: For loans considered credit-impaired , the
Company recognizes the lifetime expected credit losses
for these loans. The method is similar to that for Stage 2
assets, with the PD set at 100%.

Loan commitments: When estimating LTECL for undrawn
loan commitments, the Company estimates the expected
portion of the loan commitment that will be drawn down
over its expected life. The ECL is then based on the present
value of the expected shortfalls in cash flows if the loan is
drawn down. The expected cash shortfalls are discounted
at an approximation to the expected EIR on the loan.

For loan commitments, the ECL is recognised within
Provisions.

3.15.3 Forward looking information

While estimating the expected credit losses, the Company
reviews macro-economic developments occurring in
the economy and market it operates in. On a periodic
basis, the Company analyses if there is any relationship
between key economic trends like GDP, Property Price
Index, Unemployment rates, Benchmark rates set by the
Reserve Bank of India, inflation etc. with the estimate
of PD, LGD determined by the Company based on its
internal data. While the internal estimates of PD, LGD
rates by the Company may not be always reflective of
such relationships, temporary overlays are embedded in
the methodology to reflect such macro-economic trends
reasonably.

3.15.4 Write-offs

Financial assets are written off partially or in their
entirety when the recovery of amounts due is considered
unlikely. If the amount to be written off is greater than the
accumulated loss allowance, the difference is first treated
as an addition to the allowance that is then applied against
the gross carrying amount. Any subsequent recoveries are
credited to Statement of Profit and Loss.

3.16 Fair value measurement

The Company measures financial instruments, such as,
derivatives at fair value at each balance sheet date using
valuation techniques.

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability

The principal or the most advantageous market must be
accessible by the Company. The fair value of an asset or
a liability is measured using the assumptions that market
participants would use when pricing the asset or liability,
assuming that market participants act in their economic
best interest. A fair value measurement of a non-financial
asset takes into account a market participant's ability to
generate economic benefits by using the asset in its highest
and best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use
of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable

For assets and liabilities that are recognised in the financial
statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the
hierarchy by re-assessing categorisation (based on the
lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting
period.

3.17 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.

3.18 Hedging

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.

Hedges that meet the strict criteria for hedge accounting

are accounted for, as described below:

3.18.1 Fair value hedges

Fair value hedges hedge the exposure to changes in the fair
value of a recognised asset or liability or an unrecognised
firm commitment, or an identified portion of such an
asset, liability or firm commitment, that is attributable to a
particular risk and could affect profit or loss.

For designated and qualifying fair value hedges, the
cumulative change in the fair value of a hedging derivative
is recognised in the statement of profit and loss in net gain
on fair value changes. Meanwhile, the cumulative change
in the fair value of the hedged item attributable to the risk
hedged is recorded as part of the carrying value of the
hedged item in the balance sheet and is also recognised
in the statement of profit and loss in net gain on fair value
changes.

The Company classifies a fair value hedge relationship
when the hedged item (or group of items) is a distinctively
identifiable asset or liability hedged by one or a few
hedging instruments. The financial instruments hedged for
interest rate risk in a fair value hedge relationships fixed
rate debt issued and other borrowed funds.

If the hedging instrument expires or is sold, terminated
or exercised, or where the hedge no longer meets the
criteria for hedge accounting, the hedge relationship
is discontinued prospectively. If the relationship does
not meet hedge effectiveness criteria, the Company
discontinues hedge accounting from the date on which
the qualifying criteria are no longer met. For hedged items
recorded at amortised cost, the accumulated fair value
hedge adjustment to the carrying amount of the hedged
item on termination of the hedge accounting relationship
is amortised over the remaining term of the original
hedge using the recalculated EIR method by recalculating
the EIR at the date when the amortisation begins. If the
hedged item is derecognised, the unamortised fair value
adjustment is recognised immediately in the statement of
profit and loss.

3.18.2 Cash flow hedges

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 re-mains 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.

3.18.3 Cost of hedging

The Company may separate forward element and the
spot element of a forward contract and designate as the
hedging instrument only the change in the value of the
spot element of a forward contract. Similarly currency
basis spread may be separated and excluded from the
designation of a financial instrument as the hedging
instrument.

When an entity separates the forward element and the
spot element of a forward contract and designates as
the hedging instrument only the change in the value of
the spot element of the forward contract, or when an
entity separates the foreign currency basis spread from a
financial instrument and excludes it from the designation
of that financial instrument as the hedging instrument,
such amount is recognised in Other Comprehensive
Income and accumulated as a separate component of
equity under Cost of hedging reserve. These amounts are
reclassified to the statement of profit or loss account as a
reclassification adjustment in the same period or periods
during which the hedged cash flows affect profit or loss.

3.19. Assets held for Sale

In the course of its business activities, the Company
acquires and holds certain assets (residential / commercial)
for sale. The Company is committed to sell these assets and
such assets and the carrying amounts of such assets will
be recovered principally through the sale of these assets.
In accordance with Ind AS 105 , assets held for sale are
measured on the reporting date at the lower of carrying
value or fair value less costs to sell. The Company does
not charge depreciation on such assets. Fair value of such
assets is determined based on independent valuations
conducted by specialists.

3.20 Recent accounting pronouncements

The Ministry of Corporate Affairs ("MCA") notifies new
standards or amendment to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time. For the year ended March 31, 2025,
MCA has not notified any new standards or amendments
to the existing standards applicable to the Company

6.1 Hedging activities and derivatives

The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using
derivative instruments are interest rate risk and foreign currency risk.

6.1.1 Derivatives designated as hedging instruments

a. Cash flow hedges

The foreign currency and interest rate risk on borrowings have been actively hedged through a combination of forward
contracts, principal only currency swaps and interest rate swaps.

The Company is exposed to interest rate risk arising from its foreign currency outstanding borrowings amounting to $
424,800,000 (previous year $ 235,800,000). Interest on the borrowing is payable at a floating rate linked to USD Secured
Overnight Financing Rate ( USD SOFR). The Company economically hedged the interest rate risk arising from the debt
with a_receive floating pay fixed interest rate swap jswap) Nil (previous year $ Nil).

The Company uses Interest Rate Swaps (IRS) Contracts (Floating to Fixed) to hedge its risks associated with interest
rate fluctuations relating interest rate risk arising from foreign currency loans / external commercial borrowings. The
Company designates such IRS contracts in a cash flow hedging relationship by applying the hedge accounting principles
as per IND AS 109. These IRS contracts are stated at fair value at each reporting date. Changes in the fair value of these
IRS contracts that are designated and effective as hedges of future cash flows are recognised directly in "Cash Flow
Hedge Reserve" under Reserves and surplus and the ineffective portion is recognised immediately in the Statement
of Profit and Loss. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or
exercised, or no longer qualifies for hedge accounting.

The Company also hedges foreign currency risk arising from its fixed rate foreign currency bond by entering into the
Forward Contracts and Principal Only Swaps. There is an economic relationship between the hedged item and the
hedging instrument as the terms of the Forward contracts/ Principal Only Swaps match that of the foreign currency
borrowing (notional amount, interest payment dates, principal repayment date etc.). The Company has established a
hedge ratio of 1:1 for the hedging relationships as the underlying risk of the Forward contracts / Cross currency swap are
identical to the hedged risk components.

The impact of the reclassification referred to in Note 8(6), for which an ECL allowance of Rs. 65.94 crore was created, has not
been considered.

* Includes ECL on undrawn loan commitments for Rs. 4.34 Crore

# Excludes assets originated or purchased and derecognised during the year

(5) Includes redemption premium accrued on zero coupon bonds which will become due and payable upon maturity only
and interest accrued on units of AIF.

(6) Reclassfied an amount of Rs. 263.76 Crore to Investments relating to Security Receipts which was previously classified
under Loans in the Financial Statements for March, 2024.

7. Impairment assessment

The Company's impairment assessment and measurement approach is set out in the notes below. It should be read in
conjunction with the material accounting policy information.

7. (i) Probability of default (PD)

The Company considers a loan as defaulted and classified it as Stage 3 (credit-impaired) for ECL calculations typically
when the borrowers become 90 days past due on contract payments.

Classification of loans into Stage 2 is done on a conservative basis and typically accounts where contractual
repayments are more than 30 days past due are classified in Stage 2. Accounts typically go over 30 days past due
owing to temporary mismatch in timing of borrower's or his/her business' underlying cashflows, and are usually
quickly resolved. The Company may also classify a loan in Stage 2 if there is significant deterioration in the loans
collateral, deterioration in the financial condition of the borrower or an assessment that adverse market conditions
may have a disproportionately detrimental effect on loan repayment. Thus as a part of the qualitative assessment
of whether an instrument is in default, the Company also considers a variety of instances that may indicate delay in
or non-repayment of the loan. When such event occurs, the Company carefully considers whether the event should
result in treating the borrower as defaulted and therefore assessed as Stage 3 for ECL calculations or whether Stage
2 is appropriate.

It is the Company's policy to consider a financial instrument as 'cured' and therefore re-classified out of Stage 3
when none of the default criteria are present. The decision whether to classify an asset as Stage 2 or Stage 1 once
cured depends on the updated credit grade once the account is cured, and whether this indicates there has been a
significant reduction in credit risk.

7. (ii) Internal model and PD Estimation process

SCL's has designed and operates its Internal Model which factors in both quantitative as well as qualitative information
about the loans and the borrowers. Both Lifetime ECL and 12 months ECL are calculated either on individual basis or
a collective basis, depending on the nature of the underlying loan portfolio. In addition to information specific to the
borrower and the performance of the loan, the model may also utilise supplemental external information that could

affect the borrower's behaviour. The model is also calibrated to incorporate external inputs such as GDP growth rate,
unemployment rate, interest rates, savings, consumption and factors specific to the sector/industry of the borrower.

7. (iii) Exposure at default (EAD)

The outstanding balance as at the reporting date is considered as EAD by the Company. Considering that PD
determined above factors in amount at default, there is no separate requirement to estimate EAD.

7. (iv) Loss given default (LGD)

The Company uses historical loss data for identified homogenous pools for the purpose of calculating LGD. The
estimated recovery cash flows are discounted such that the LGD calculation factors in the NPV of the recoveries.

7. (v) Significant increase in credit risk

The internal rating model evaluates the loans on an ongoing basis. The rating model also assesses if there has been
a significant increase in credit risk since the previously assigned risk grade. One key factor that indicates significant
increase in credit risk is when contractual payments are more than 30 days past due.

8. Collateral

The Company is in the business of extending secured loans mainly backed by mortgage of property (residential or
commercial).

In addition to the above mentioned collateral, the Company holds other types of collateral and credit enhancements,
such as cross-collateralisation on other assets of the borrower, share pledge, guarantees of parent/holding companies,
personal guarantees of promoters/proprietors, hypothecation of receivables via escrow account, hypothecation of
receivables in other bank accounts etc.

In its normal course of business, the Company does not physically repossess properties or other assets, but recovery
efforts are made on delinquent loans through on-rolls collection executives, along with legal means to recover due
loan repayments. Once contractual loan repayments are more than 90 days past due, repossession of property may be
initiated under the provisions of the SARFAESI Act 2002. Re-possessed property is disposed of in the manner prescribed
in the SARFAESI Act 2002 to recover outstanding debt.

The Company did not hold any financial instrument for which no loss allowance is recognised because of collateral at
March 31, 2025. There was no change in the Company's collateral policy during the year.

9. As at the year end the Company has undrawn loan commitments of Rs. 906.50 Crore (Previous Year Rs. 1,023.67 Crore).

10. The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the
related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are (a)
repayable on demand or (b) without specifying any terms or period of repayment.

** Includes an amount of Rs. 263.76 Crore relating to Investments in Security Receipts which was previously classified under
Loans in the Financial Statements for March, 2024

(1) The Company's investments in the Equity Share capital of Sammaan Insurance Advisors Limited (formerly known as
Indiabulls Insurance Advisors Limited) and Indiabulls Capital Services Limited, being its wholly owned subsidiaries, are
considered as strategic and long term in nature and are held at a cost of Rs. 0.05 Crore and Rs. 5.00 Crore respectively.
Based on the audited financial statements as at and for the year ended March 31, 2025 of these subsidiary companies,
the value of investments held in these companies has been eroded as the operations in these subsidiary companies have
not yet commenced. During the financial year 2016-17 provision of Rs. 5.05 Crore for diminution in the carrying value was
made for these companies in the books of accounts. The Company has since carried forward the provision for impairment
loss of Rs. 5.05 Crore in respect of diminution in the carrying value of such investments.

(2) As at March 31, 2025, the Company held investments in Alternate Investment Fund (AIF) amounting to Rs. 30.64 Crore
(Previous Year: Rs 52.77 Crore). The Company has provided for Rs. 30.64 Crore (Previous year: Rs. 52.77 Crore) (being
100% of the value of the investment) towards provision for impairment on carrying value of investments in Alternate
Investment Fund (AIF) pursuant to RBI circular RBI/2023-24/90 DOR.STR.REC.58/21.04.048/2023-24 dated 19^th December
2023. (Also Refer Note 32 (vi)).

(3) The Company along with its wholly owned subsidiary companies Indiabulls Asset Management Company Limited (IAMCL)
and Indiabulls Trustee Company Limited, Trustee of IAMCL, (ITCL) had executed definitive transaction document with
Nextbillion Technology Private Limited (hereinafter referred to as "Nextbillion"), to divest its entire stake in the business
of managing mutual fund, being carried out by IAMCL & ITCL to Nextbillion. The Company has received all necessary
approvals in relation to the transaction and the Company has received the entire consideration of Rs.175.62 Crore on
May 02, 2023 (the "Closing Date"). Consequent to the above, the Company does not have any control or shareholding in
IAMCL and ITCL subsequent to the Closing Date.

(4) Investment in mutual funds of Rs. 106.17 Crore (previous year Rs. 95.11 Crore) provided as credit enhancement in respect
of assignment/securtisation deal for loans.

As per records of the Company, including its register of shareholders/ members and other declarations received from
shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of
shares.

(ii) Disclosures in respect of active Employees Stock Options Schemes of the Company and its subsidiaries:

Grants During the Year:

Year ended March 31, 2025:

1) The Nomination and Remuneration Committee of the Company has, at its meeting held on November 21, 2024,
granted under the "Sammaan Capital Limited Employee Stock Benefit Scheme - 2024" (the "Scheme"), 5,00,00,000
(Five Crore) Stock Options, representing an equal number of equity shares of face value of Rs. 2/- each in the
Company, at an exercise price of Rs. 151/- per share, being the closing market price of the fully paid up equity shares
of the Company on National Stock Exchange of India Limited, on the working day immediately preceding the date of
grant of options, under the Scheme(s) i.e. November 19, 2024. The Stock Options so granted, shall vest within two
years beginning from November 22, 2025 the first vesting date. The scheme is for the benefit of the employees of
the Company and its wholly owned subsidiaries.

Year ended March 31, 2024:

In respect of the "Indiabulls Housing Finance Limited Employees Stock Option Scheme - 2013 or IHFL ESOS - 2013" or IHFL
ESOP Plan 2013", The Nomination and Remuneration Committee of the Company has, at its meeting held on February 29,
2024:

a) granted 1,053,406 Stock Options, out of the previously lapsed Stock Options, representing an equal number of
equity shares of face value of Rs. 2 each at an exercise price of Rs. 187.25 per share, being the latest available
closing market price on the National Stock Exchange of India Limited, as on February 28, 2024. The Stock Options so
granted, shall vest on March 1, 2025 or thereafter, as may be decided by Nomination and Remuneration Committee
of the Company.

b) granted 2,00,00,000 Stock Options, representing an equal number of equity shares of face value of Rs. 2 each at an
exercise price of Rs. 187.25 per share, being the latest available closing market price on the National Stock Exchange
of India Limited, as on February 28, 2024. The Stock Options so granted, shall vest within two years beginning from
March 1, 2025 the first vesting date. The Stock Options so granted, shall vest on March 1, 2025 or thereafter, as may
be decided by Nomination and Remuneration Committee of the Company.

(b) Schemes administered through the ESOP Trust:

The Company has established the "Pragati Employee Welfare Trust" ("Pragati - EWT" or "Trust") for the implementation
and management of its employees benefit schemes viz. the "Indiabulls Housing Finance Limited - Employee Stock Benefit
Scheme - 2019 ("IHFL ESOS 2019") " and the "Indiabulls Housing Finance Limited - Employee Stock Benefit Scheme -
2021 ("IHFL ESOS 2021")" (collectively referred to as the "Schemes"). The Schemes are administered through the Trust,
whereby shares held by the Trust are transferred to the employees, upon exercise of stock options as per the terms of
the Schemes .

The IHFL-ESOS 2019 has been adopted and approved pursuant to: (a) a resolution of the Board of Directors of the
Company at its meeting held on November 6, 2019; and (b) a special resolution of the shareholders' of the Company
passed through postal ballot on December 23, 2019, result of which were declared on December 24, 2019.

This IHFL ESOS 2019 comprises:

a. INDIABULLS HOUSING FINANCE LIMITED Employees Stock Option Plan 2019 ("ESOP Plan 2019")

b. INDIABULLS HOUSING FINANCE LIMITED Employees Stock Purchase Plan 2019 ("ESP Plan 2019")

c. INDIABULLS HOUSING FINANCE LIMITED Stock Appreciation Rights Plan 2019 ("SARs Plan 2019")

The IHFL ESOS 2019 is for the benefit of the employees of the Company and its subsidiaries.

The IHFL-ESOS 2021 has been adopted and approved pursuant to: (a) a resolution of the Board of Directors of the
Company at its meeting held on June 29, 2021; and (b) a special resolution of the shareholders' of the Company on July
29, 2021.

The IHFL ESOS 2021 comprises:

a. INDIABULLS HOUSING FINANCE LIMITED Employees Stock Option Plan 2021 ("ESOP Plan 2021")

b. INDIABULLS HOUSING FINANCE LIMITED Employees Stock Purchase Plan 2021 ("ESP Plan 2021")

c. INDIABULLS HOUSING FINANCE LIMITED Stock Appreciation Rights Plan 2021 ("SARs Plan 2021")

The IHFL ESOS 2021 is for the benefit of the employees of the Company and its subsidiaries.

Pursuant to Regulation 3(12) of the SEBI (Share Based Employee Benefits) Regulations, 2014, the shares in Trust have
been appropriated towards the Schemes for grant of Share Appreciations Rights (SARs) to the employees of the Company
and its subsidiaries as permitted by SEBI. The Company will treat these SARs as equity and accounting has been done
accordingly. The other disclosures in respect of the SARs are as under:-
4,854,223 Equity Shares (Previous Year : 10,891,156) of Rs. 2 each are reserved for issuance towards Employees Stock
options as granted.

The weighted average share price at the date of exercise of these options was Rs. 152.44 per share (Previous Year Rs.
151.60 per share).

(c) Relevant disclosures in respect of the ESOS / ESOP Scheme of Sammaan Finserve Limited (SFL), a wholly owned
subsidiary, are as under:-

The Board of Directors of SFL at their meeting held on November 12, 2024 and the members of SFL at their Extra Ordinary
General Meeting held on November 13, 2024, have approved the "Sammaan Finserve Limited Employee Stock Benefit
Scheme - 2024" (the "Scheme" or SFL-ESOS-2024), for the grant of 21,00,00,000 (Twenty One Crore) Stock Options,
representing an equal number of equity shares of face value of Rs. 2/- each in SFL, for the benefit of its employees and
Non-Independent directors of SFL and of the Company (Sammaan Capital Limited).

The Nomination and Remuneration Committee of SFL, has on January 7, 2025, granted under the "Sammaan Finserve
Limited Employee Stock Benefit Scheme - 2024" (the "Scheme"), 10,00,00,000 (Ten Crore) Stock Options, representing
an equal number of equity shares of face value of Rs. 2.00/- each in SFL, at an exercise price of Rs. 25.81/- per share,
which is fair value as determined by a Merchant Banker. The Stock Options so granted, shall vest within one year i.e.
January 8, 2026.

Issuance and Investment Committee at its meeting held on July 15, 2024, has approved the final call on partly paid-up
equity shares of Rs. 100/- per share (including a premium of Rs. 98.67 per share) and fixing Monday, July 22, 2024 as the
Record Date for the purpose of ascertaining the holders of partly paid-up equity shares, to whom the call notice would
be sent for payment of call. During the current financial year, the paid-up Equity share capital of the Company stands
increased upon conversion of 243,213,302 (Twenty Four Crore Thirty Two Lacs Thirteen Thousand Three Hundred and
Two) Rights Equity Shares having a face value of Rs. 2/- each with Rs. 0.67 paid-up into fully paid-up equity shares having
a face value of Rs. 2/- each with Rs. 2/- paid-up ("Converted Rights Equity Shares").

(v) During the year ended March 31, 2025, upon exercise of Stock options by the eligible employees aggregate to 6,036,933
(Sixty Lacs Thirty Six Thousand Nine Hundred and Thirty Three) and upon conversion of 243,213,302 (Twenty Four Crore
Thirty Two Lacs Thirteen Thousand Three Hundred and Two) Rights Equity Shares having a face value of Rs. 2/- each with
Rs. 0.67 paid-up into fully paid-up equity shares having a face value of Rs. 2/- each with Rs. 2/- paid-up ("Converted Rights
Equity Shares"), the paid-up Equity share capital of the Company stands increased from Rs. 984,906,058/- divided into
492,453,029 Equity shares of face value Rs. 2/- each to Rs. 1,483,406,528/- divided into 741,703,264 Equity shares of face
value Rs. 2/- each.

(vi) During the year ended March 31, 2025, the Securities Issuance and Investment Committee of the Board of Directors of
the Company, under the provisions of Chapter VI of Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018, as amended, and Sections 42 and 62 of the Companies Act, 2013, as amended, including
the rules made thereunder, has concluded Qualified Institutions Placement (QIP), by issuing 86,666,666 equity shares
at a price of Rs. 150/- per equity share aggregating Rs. 1,300.00 Crores, on January 27, 2025, consequent to which, the
Paid up Share Capital increased by Rs. 17.33 Crores and Securities Premium increased by Rs. 1,282.67 Crores. Pursuant to
the allotment of Equity Shares under the QIP, the paid-up Equity Share capital of the Company stands increased from Rs.
148.54 Crores divided into 741,703,264 fully paid-up equity shares having face value of Rs. 2 each and 3,013,213 partly
paid-up equity shares having a face value of Rs. 2 each (Rs. 0.67 paid-up) to Rs. 165.88 Crores divided into 828,369,930
fully paid-up equity shares having face value of Rs. 2 each and 3,013,213 partly paid-up equity shares having a face value
of Rs. 2 each (Rs. 0.67 paid-up per equity share).

(5) Stock Compensation Adjustment is created as required by Ind AS 102 'Share Based Payments' on the Employee Stock
Option Scheme operated by the Company for employees of the Group.

(6) In terms of Section 36(1)(viii) of the Income Tax Act, 1961, a deduction is allowed for income from eligible business. The
Company has transferred an amount of Rs. Nil (Previous Year Nil ) to reserve created in terms of Section 36(1)(viii) of the
Income Tax Act, 1961 . This also includes reserve amounting Rs. 89 Crore created under section 36(1)(viii) of the Income
Tax Act, 1961, by the Erstwhile Holding Company Indiabulls Financial Services Limited ('IFSL'), which has been transferred
to the Company under the Scheme of Arrangement during the year ended March 31, 2013.

(7) Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more
than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total
distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily
transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously
transferred to the general reserve can be utilised in accordance with the requirements of Companies Act, 2013.

(8) In terms of Section 29C of the National Housing Bank ("NHB") Act, 1987, the Company was required to transfer at least
20% of its Profit after tax to a Reserve Fund before any dividend is declared. During the year ended March 31 ,2025, the
Company was not required to make any transfers to the reserve, upon conversion from an NBFC-HFC to NBFC-ICC (Refer
Note 1 - Corporate Information). During the year ended March 31, 2024, the Company had transferred an amount of Rs.
197.96 Crore to the Reserve in terms of Section 29C of the National Housing Bank ("NHB") Act, 1987 as at the year end.

(9) In respect of any special reserve created and maintained in terms of Section 36(1)(viii) of the Income Tax Act, 1961 by
a specified entity In terms of Section 29C of the National Housing Bank ("NHB") Act, 1987, an amount not exceeding
twenty percent of the profits derived from eligible business computed under the head "Profits and gains of business or
profession" (before making any deduction under this clause) is carried to such reserve account.

(10) This Additional Reserve Fund in excess of the statutory minimum requirement as specified under Section 29C of the
National Housing Bank Act 1987 / the Master Direction - Non-Banking Financial Company - Housing Finance Company
(Reserve Bank) Directions, 2021 (earlier Circular no. NHB(ND)/DRS/Pol-No. 03/2004-05 dated August 26, 2004) issued
by the Reseve Bank of India. This additional reserve had utilised by the Company during the year ended March 31, 2024
[Refer : Note 32(vi)].

(11) During the year ended March 31, 2025, pursuant to its conversion from and NBFC-HFC to NBFC-ICC (Refer Note 1 -
Corporate Information), in terms of Section 45-IC of the RBI Act, 1934, the Company is required to transfer at least 20%
of its Net Profits (after tax) to a reserve before any dividend is declared. As at the year end, the Company has transferred
an amount of Rs. 188.54 Crore to the reserve fund. This also includes reserve amounting Rs. 505.48 Crore created under
section 45-IC of the Reserve Bank of India Act 1934 by the Erstwhile Holding Company Indiabulls Financial Services
Limited, which has been transferred to the Company under the Scheme of Arrangement during the year ended March
31, 2013.

(12) The final dividend of Rs. 2.00 per equity share (100% on face value of Rs. 2 each) for the financial year ended March 31,
2024 was approved at the AGM of the Shareholders of the Company held on September 27, 2024 and the Company had
transferred Rs. 147.31 Crore on October 1, 2024 into the designated Dividend Account.

In previous year the final dividend of Rs. 1.25 per equity share (62.5% on face value of Rs. 2 each) for the financial year
ended March 31, 2023 was approved at the AGM of the Shareholders of the Company held on September 25, 2023 and
the Company had transferred Rs. 59.94 Crore on September 27, 2023 into the designated Dividend Account.

(13) Other comprehensive income/(loss) includes fair value gain/(loss) on equity instruments and Derivative instruments in
Cash flow hedge relationship.

(14) Retained earnings represents the surplus in Statement of Profit and Loss and appropriations.

(15) Debenture premium account is used to record the premium on issue of debenture.

derivative contracts reduce the risk or cost to the Company and the Company does not use those for trading or speculation
purposes.

The Company uses hedging instruments that are governed by the policies of the Company which are approved by the Board
of Directors, which provide written principles on the use of such financial derivatives consistent with the risk management
strategy of the Company. The Board constituted Risk Management Committee (RMC) of the Company manages risk on the
Company's derivative portfolio. The officials authorized by the board to enter into derivative transactions for the Company
are kept separate from the authorized signatories to confirm the derivative transactions. All derivative transactions that are
entered into by the Company are reported to the board, and the mark-to-market on its portfolio is monitored regularly by
the senior management. The Company uses Bloomberg to monitor and value its derivative portfolio to ascertain its hedge
effectiveness vis-a-vis the underlying.

To hedge its risks on the principal and/ or interest amount for foreign currency borrowings on its balance sheet, the Company
has currently used cross currency derivatives, forwards and principal only swaps. Additionally, the Company has entered into
Interest Rate Swaps (IRS) to hedge its basis risk on fixed rate borrowings and SOFR risk on its foreign currency borrowings.

Derivative financial instruments are initially measured at fair value on the contract date and are subsequently re-measured to
fair value at each reporting date. Derivatives are classified as assets when the fair value is positive (positive marked to market
value) or as liabilities when the fair value is negative (negative marked to market value). Derivative assets and liabilities are
recognized on the balance sheet at fair value. Fair value of derivatives is ascertained from the mark to market and accrual
values received from the counterparty banks. These values are cross checked against the valuations done internally on
Bloomberg. Changes in the fair value of derivatives other than those designated as hedges are recognized in the Statement of
Profit and Loss.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, no longer qualifies
for hedge accounting or the Company chooses to end the hedging relationship.

(a) A "Significant counterparty" is defined as a single counterparty or group of connected or affiliated counterparties
accounting in aggregate for more than 1% of the NBFC-NDSI's, NBFC-Ds total liabilities and 10% for other non¬
deposit taking NBFCs

(b) Total Liabilities has been computed as Total Assets less Equity share capital less Reserve & Surplus and computed
basis extant regulatory ALM guidelines

* Represents contractual amount

(1) Does not include Foreign Currency Convertible Bond (FCCB), External Commercial Borrowings (ECB) and Foreign
Currency Bond (FCB) aggregating to Rs. 3,635.69 Crore since, the holder-wise details are not available with the
Company.

(2) Does not include Loan from wholly owned subsidiary - Sammaan Finserve Limited (SFL) amounting to Rs. 1,115
Crore.

(3) Total Borrowings consists of Debt Securities, Borrowings (Other than Debt Securities) and Subordinated liabilities
but excludes Securitisation and Lease Liability.

Note on LCR

RBI vide vide Circular No. RBI/201920/88 DOR.NBFC (PD) CC.No.102/03.10.001/2019-20 dated November 4, 2019
introduced Liquidity Coverage Ratio (LCR) guidelines for NBFCs.

The objective of the LCR is to promote an environment wherein Balance Sheet carries a strong liquidity for short term
cash flow requirements. To ensure this NBFCs are required to maintain adequate pool of unencumbered high-quality
liquid assets (HQLA) which can be easily converted into cash to meet their stressed liquidity needs for next 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 Asset Liability Committee (ALCO) under the governance
of Board approved Liquidity Risk Framework and Asset Liability Management policy. The LCR levels for the Balance Sheet
date is derived by arriving the stressed expected cash inflow and outflow for the next 30 days. To compute stressed cash
outflow, all expected and contracted cash outflows are considered by applying a stress factor of 15%. Similarly, inflows
for the Company are arrived at by considering all expected and contracted inflows by applying a haircut of 25%.

For the purpose of computing outflows, company considers: (1) all the contractual debt repayments, (2) committed
credit facilities contracted with the customers, and (3) other expected or contracted cash outflows. Inflows comprises:
(1) expected receipt from all performing loans, and (2) liquid investment [including Fixed Deposit, Mutual Funds etc]
which are unencumbered and have not been considered as part of HQLA.

For the purpose of HQLA the Company considers: (1) Unencumbered Government securities, (2) Cash and Bank balances.

The LCR is computed by dividing the stock of HQLA by its total net cash outflows for next 30 days.

LCR guidelines were made effective from 1 December 2020, requiring NBFCs to maintain minimum LCR of 50%, which
was required to be increased to 100%, gradually by December 1, 2024. As on March 31 ,2025, NBFCs are required to
maintain LCR of 100%.

Note: In computing the above information certain estimates, assumptions and adjustments have been made by the
Management for its regulatory submission.

(c) Committees of the Board and their composition

(i) Name of the committee of the Board : Audit Committee
Summarized terms of reference¬
- To oversee the financial reporting process and disclosure of financial information;

- To review with management, quarterly, half yearly and annual financial statements and ensure their accuracy
and correctness before submission to the Board;

- To review with management and internal auditors, the adequacy of internal control systems, approving the
internal audit plans/ reports and reviewing the efficacy of their function, discussion and review of periodic audit
reports including findings of internal investigations;

- To recommend the appointment of the internal and statutory auditors and their remuneration;

- To review and approve required provisions to be maintained as per IRAC norms and write off decisions;

- To hold discussions with the Statutory and Internal Auditors;

- Review and monitoring of the auditor's independence and performance, and effectiveness of audit process;

- Examination of the auditors' report on financial statements of the Company (in addition to the financial
statements) before submission to the Board;

- Approval or any subsequent modification of transactions of the Company with related parties;

- Scrutiny of inter-corporate loans and investments;

- Review of Credit Concurrent Audit Report/ Concurrent Audit Report of Treasury;

- Valuation of undertakings or assets of the Company, wherever it is necessary;

- Monitoring the end use of funds raised through public offers and related matters as and when such funds are
raised and also reviewing with the management the utilization of the funds so raised, for purposes other than
those stated in the relevant offer document, if any and making appropriate recommendations to the Board in
this regard;

- Evaluation of the risk management systems (in addition to the internal control systems);

- Review and monitoring of the performance of the statutory auditors and effectiveness of the audit process;

- To hold post audit discussions with the auditors to ascertain any area of concern;

- To review the functioning of the whistle blower mechanism;

- Approval to the appointment of the CFO after assessing the qualifications, experience and background etc. of
the candidate;

- Approval of Bad Debt Write Off in terms of the Policy;

- Review of information system audit of the internal systems and processes to assess the operational risks
faced by the Company and also ensures that the information system audit of internal systems and processes is
conducted periodically; and

- Reviewing the utilization of loans and/or advances and/or investment by the Company to its subsidiary
companies, exceeding rupees 100 Crores or 10% of the assets side of the respective subsidiary companies,
whichever is lower, including existing loans / advances / investment existing as on April 1, 2019.

%Total Six Audit Committee Meetings held during the financial year 2024-25
*Ceased to be Director (completed his second term) w.e.f. March 7, 2025
** Appointed as a member w.e.f. March 7, 2025
(ii) Name of the committee of the Board : Nomination & Remuneration Committee
Summarized terms of reference¬
- Formulation of the criteria for determining qualifications, positive attributes and independence of a director
and recommend to the board of directors a policy relating to, the remuneration of the directors, key managerial
personnel and other employees;

- Formulation of criteria for evaluation of performance of independent directors and the board of directors;

- Devising a policy on diversity of board of directors;

- Identifying persons who are qualified to become directors and who may be appointed in senior management
in accordance with the criteria laid down, and recommend to the board of directors their appointment and
removal;

- Whether to extend or continue the term of appointment of the independent director, on the basis of the
report of performance evaluation of independent directors;

- To ensure 'fit and proper' status of proposed/ existing directors;

- To recommend to the Board all remuneration, in whatever form, payable to Directors, KMPs and senior
management;

- Framing suitable policies and systems to ensure that there is no violation, by an employee of any applicable
laws in India or overseas, including:

> The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; or

>The Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating
to the Securities Market) Regulations, 1995; and

- Perform such functions as are required to be performed by the Nomination & Remuneration Committee under
the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014.

%Total Eight Nomination and Remuneration Committee Meetings held during the financial year 2024-25
*Ceased to be Director (completed his second term) w.e.f. March 7, 2025
** Appointed as a member w.e.f. March 7, 2025
(iii) Name of the committee of the Board : Stakeholders Relationship Committee
Summarized terms of reference¬
- To approve requests for share transfers and transmissions;

- To approve the requests pertaining to remat of shares/sub-division/consolidation/issue of renewed and
duplicate share certificates etc.;

- To oversee all matters encompassing the shareholders' / investors' related issues;

- Resolving the grievances of the security holders of the Company, including complaints related to transfer/
transmission of shares, non-receipt of annual report, non-receipt of declared dividends, issue of new/duplicate
certificates, general meetings etc.

- Review of measures taken for effective exercise of voting rights by shareholders.

- Review of adherence to the service standards adopted by the Company in respect of various services being
rendered by the Registrar & Share Transfer Agent.

%Total Four Stakeholders Relationship CommitteeMeetings held during the financial year 2024-25
*Ceased to be Director (completed his second term) w.e.f. March 7, 2025
** Appointed as a member w.e.f. March 7, 2025
(iv) Name of the committee of the Board : Risk Management Committee
Summarized terms of reference¬
- Approve the Credit/Operation Policy and its review/modification from time to time;

- Review of applicable regulatory requirements;

- Approve all the functional policies of the Company;

- Place appropriate mechanism in the system to cater Fraud while dealing with customers/approval of loans etc;

- Review of profile of the high loan Customers and periodical review of the same;

- Review of Branch Audit Report;

- Review Compliances of lapses;

- Review of implementation of FPCs, KYC and PMLA guidelines;

- Define loan sanctioning authorities, including process of vetting by credit committee, for various types/values
of loans as specified in Credit Policy approved by the BoDs;

- Review the SARFAESI cases;

- Recommend Bad Debt Write Off in terms of the Policy, for approval to Audit Committee;

- Ensure appropriate mechanisms to detect customer fraud and cyber security during the loan approval process
etc.; and

- Any other matter involving Risk to the asset/business of the Company.

risk Management.

(42) Fair value measurement

42.1 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 , regardless of whether
that price is directly observable or estimated using a valuation technique.

In order to show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation
techniques.

42.2 Valuation governance

The Company's process to determine fair values is part of its periodic financial close process. The Audit Committee exercises
the overall supervision over the methodology and models to determine the fair value as part of its overall monitoring of
financial close process and controls. The responsibility of ongoing measurement resides with business units . Once submitted,
fair value estimates are also reviewed and challenged by the Risk and Finance functions.

42.3 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:

Mutual Funds and Investment in SRs

1. Open ended mutual funds are valued at published NAV declared by respective fund house and are classified under Level
1.

2. Investments in SRs are valued periodically by reckoning the NAV declared by the ARC based on the recovery ratings
received for such instruments. Thus are classified under Level 2.

Unlisted debentures and bonds

Fair value of these instruments is derived based on the discounted cash flows and market comparison technique as at reporting
date and are classified as Level 3.

Interest rate swaps, Currency swaps and Forward rate contracts

The fair value of Interest rate swaps is calculated as the present value of estimated cash flows based on observable yield
curves. The fair value of Forward foreign exchange contracts and currency swaps is determined using observable foreign
exchange rates and yield curves at the balance sheet date.

42.5 There have been no transfers between Level 1, Level 2 and Level 3 for the year ended March 31, 2025 and March 31, 2024
except as disclosed in Note 42.6 (a)

42.8 Valuation methodologies of financial instruments not measured at fair value

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. These fair values were calculated for disclosure
purposes only. The below methodologies and assumptions relate only to the instruments in the above tables.

Debt Securities & Subordinated liabilities

These includes Subordinated debt, secured debentures, unsecured debentures. The fair values of such liabilities are estimated
using a discounted cash flow model based on contractual cash flows using actual or estimated yields and discounting by yields
incorporating the credit risk. These instrument are classified in Level 2.

*Assets and Liabilities other than above

The carrying value of assets and liabilities other than investments at amortised cost, debt securities and subordinated liabilities
represents a reasonable approximation of fair value.

(43) Transfers of financial assets

Transfers of financial assets that are not derecognised in their entirety

Securitisations: The Company uses securitisations as a source of finance. Such transaction resulted in the transfer of contractual
cash flows from portfolios of financial assets to holders of issued debt securities / pass through certificates (PTCs). Such deals
resulted in continued recognition of the securitised assets since the Company retains substantial risks and rewards.

The table below outlines the carrying amounts and fair values of all financial assets transferred that are not derecognised in
their entirety and associated liabilities.

Since the Company has transferred the above financial assets in a transfer that qualified for derecognition in its entirety, the
whole of the interest spread ( over the expected life of the asset) is recognised on the date of derecognition as interest-only
strip receivable ("Receivables on assignment of loan") and correspondingly recognised as gain on derecognition of financial
assets.

[44) Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other
equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management
is to maximise the shareholder value. The Company monitors capital using a capital adequacy ratio as prescribed by the RBI
guidelines. Refer note 39(1)(i) for details.

[45) Risk Management
Introduction and risk profile

Sammaan Capital Limited (formerly known as Indiabulls Housing Finance Ltd.) is a non-banking finance company in India and
is regulated by the Reserve Bank of India (RBI). In view of the intrinsic nature of operations, the Company is exposed to a
variety of risks, which can be broadly classified as credit risk, market risk, liquidity risk and operational risk. It is also subject
to various regulatory risks.

Risk management structure and policies

As a lending institution, Company is exposed to various risks that are related to lending business and operating environment.
The Principal Objective in Company 's risk management processes is to measure and monitor the various risks that Company
is subject to and to follow policies and procedures to address such risks. Company's risk management framework is driven
by Board and its subcommittees including the Audit Committee, the Asset Liability Management Committee and the Risk
Management Committee. Company gives due importance to prudent lending practices and have implemented suitable
measures for risk mitigation, which include verification of credit history from credit information bureaus, personal verification
of a customer's business and residence, technical and legal verifications, conservative loan to value, and required term cover
for insurance. The major types of risk Company face in businesses are liquidity risk, credit risk, interest rate risk and equity
price risk.

(A) Liquidity risk

Liquidity risk is the potential for loss to an entity arising from either its inability to meet its obligations or to fund increases
in assets as they fall due without incurring unacceptable cost or losses.

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents (including marketable
securities) to meet its obligations at all times. It also ensures having access to funding through an adequate amount of
committed credit lines. The Company's treasury department is responsible for liquidity and funding as well as settlement
management. In addition, processes and policies related to such risks are overseen by senior management and the
management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity
profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet
liquidity ratios are considered while reviewing the liquidity position.

(c) Credit Risk

Credit Risk arises from the potential that an obligor is either unwilling to perform on an obligation or its ability to perform
such obligation is impaired resulting in economic loss to the Company. IBHFL's Credit Risk Management framework is
categorized into following main components:

- Board and senior management oversight

- Organization structure

- Systems and procedures for identification, acceptance, measurement, monitoring and controlling risks.

It is the overall responsibility of the board appointed Risk Management Committee to approve the Company's credit risk
strategy and lending policies relating to credit risk and its management. The policies are based on the Company's overall
business strategy and the same is reviewed periodically.

The Board of Directors constituted Risk Management Committee keeps an active watch on emerging risks the Company
is exposed to. The Risk Management Committee("RMC") defines loan sanctioning authorities, including process of
vetting by credit committees for various types/values of loans. The RMC approves credit policies, reviews regulatory
requirements, and also periodically reviews large ticket loans and overdue accounts from this pool.

The Risk Management Committee approves the 'Credit Authority Matrix' that defines the credit approval hierarchy and
the approving authority for each group of approving managers/ committees in the hierarchy.

To maintain credit discipline and to enunciate credit risk management and control process there is a separate Risk
Management department independent of loan origination function. The Risk Management department performs the
function of Credit policy formulation, credit limit setting, monitoring of credit exceptions / exposures and review /
monitoring of documentation.

Collateral security accepted by the Company could be in the form of:

(a) Equitable mortgage of property and / or,

(b) Pledge of shares / debentures, units, other securities, assignment of life insurance policies and / or,

(c) Hypothecation of assets and / or,

(d) Company guarantees and / or,

(e) Personal guarantees and / or,

(f) Negative lien and / or Undertaking to create a security.

(D ) Market Risk

Market Risk is the risk that the value of on and off-balance sheet positions of a financial institution will be adversely
affected by movements in market rates or prices such as interest rates, foreign exchange rates, equity prices, credit
spreads and/or commodity prices resulting in a loss to earnings and capital.

Financial institutions may be exposed to Market Risk in variety of ways. Market risk exposure may be explicit in portfolios
of securities / equities and instruments that are actively traded. Conversely it may be implicit such as interest rate risk
due to mismatch of loans and deposits. Besides, market risk may also arise from activities categorized as off-balance
sheet item. Therefore market risk is potential for loss resulting from adverse movement in market risk factors such as
interest rates, forex rates, equity and commodity prices.

The Company's exposure to market risk is primarily on account of interest rate risk and Foreign exchange risk.

(i) Interest Rate Risk

Interest rate risk arises when there is a mismatch between positions, which are subject to interest rate adjustment
within a specified period. The Company's lending, funding and investment activities give rise to interest rate risk. The
immediate impact of variation in interest rate is on the Company's net interest income, while a long term impact is
on the Company's net worth since the economic value of the assets, liabilities and off-balance sheet exposures are
affected. While assessing interest rate risks, signals given to the market by RBI and government departments from
time to time and the financial industry's reaction to them shall be continuously monitored.

Due to the nature of its business, the Company is exposed to moderate to high Interest Rate Risk. This risk has a
major impact on the balance sheet as well as the Statement of profit and loss of the Company. Interest Rate Risk
arises due to:

i) Changes in Regulatory or Market Conditions affecting the interest rates

ii) Short term volatility

iii) Prepayment risk translating into a reinvestment risk

iv) Real interest rate risk

In short run, change in interest rate affects Company's earnings (measured by NII or NIM) and in long run it affects
Market Value of Equity (MVE) or net worth. It is essential for the Company to not only quantify the interest rate risk
but also to manage it proactively. The Company mitigates its interest rate risk by keeping a balanced portfolio of
fixed and variable rate loans and borrowings. Further Company carries out Earnings at risk analysis and maturity gap
analysis at quarterly intervals to quantify the risk.

*The impact of borrowings is after considering the impact on derivatives contracts entered to hedge the interest rate
fluctuation on borrowings

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign currency rates. The Company's exposure to the risk of changes in foreign exchange rates relates
primary to the foreign currency borrowings taken from banks through the FCNR route and External Commercial
Borrowings (ECB).

The Company follows a conservative policy of hedging its foreign currency exposure through Forwards and / or
Currency Swaps in such a manner that it has fixed determinate outflows in its function currency and as such there
would be no significant impact of movement in foreign currency rates on the Company's profit before tax (PBT) and
equity.

E) Operational Risk

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and system or from
external events. Operational risk is associated with human error, system failures and inadequate procedures and
controls. It is the risk of loss arising from the potential that inadequate information system; technology failures, breaches
in internal controls, fraud, unforeseen catastrophes, or other operational problems may result in unexpected losses or
reputation problems. Operational risk exists in all products and business activities.

SCL recognizes that operational risk event types that have the potential to result in substantial losses includes Internal
fraud, External fraud, employment practices and workplace safety, clients, products and business practices, business
disruption and system failures, damage to physical assets, and finally execution, delivery and process management.

The Company cannot expect to eliminate all operational risks, but it endeavours to manage these risks through a control
framework and by monitoring and responding to potential risks. Controls include effective segregation of duties, access,
authorisation and reconciliation procedures, staff education and assessment processes, such as the use of internal audit.

The Company had total cash outflows for leases of Rs. 47.71 crores during the year ended March 31, 2025 ( Rs. 61.77
crores during the year ended March 31, 2024)

(47) The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956 during the year ended March 31, 2025.

(48) The Company has been sanctioned / renewed working capital limits in excess of Rs. 5 crore in aggregate from banks during the
year on the basis of Security by way of hypothecation over the Company's loan receivables (present and future), other financial
assets, and cash and cash equivalents (including bank balances and investments), excluding (i) receivables and investments
specifically charged to other parties, and (ii) balances representing High Quality Liquid Assets (HQLAs) as at March 31, 2025
utilised for the purpose of computing the Liquidity Coverage Ratio, in accordance with the applicable RBI guidelines, which
shall remain unencumbered in accordance with The RBI LRM Framework. The quarterly returns / statements filed by the
Company with such banks or financial institutions are in agreement with the books of accounts of the Company.

(49) During Financial year 2024-25, there were no draw down from Reserves.

(50) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender during the year.

(51) The Company has not traded or invested in crypto currency or virtual currency during the financial year ended March 31,
2025.

(52) The Company is in compliance with RBI Circular No. RBI/2021-2022/125 DOR.STR.REC.68/21.04.048/2021-22 dated November
12 2021, related to classification of NPA and up-gradation of accounts classified as NPA.

(53) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediaries 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

(54) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party) 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
Company (Ultimate Beneficiaries) or

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

(55) During to the year ended March 31, 2025, the Company had raised U.S.$350,000,000 by allotment of Senior Secured Social
Bonds due 2027 (the Bonds) in accordance with Regulation S / Rule 144A of the U.S. Securities Act, 1933 and applicable Indian
laws.

(56) The Company did not enter into any transactions which are not recorded in the books of accounts and has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961. (Previous year Rs. Nil).

(57) There are no proceedings initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) during the year ended March 31, 2025 (Previous year Rs. Nil).

(58) The Company has complied with the applicable RBI Master Directions upon conversion into an NBFC-ICC with effect from June
28, 2024.

Prior to the conversion, the Company was in compliance with the applicable NHB Directions, 2010 including Prudential
Norms and as amended from time to time. Disclosures as required in terms of RBI Master Directions have been prepared in
compliance with Indian Accounting Standards (Ind AS).

(59) During the year ended March 31, 2025, the Company acquired the Legacy, Wholesale Loan Business from its wholly owned
subsidiary, Sammaan Finserve Limited (formerly known as Indiabulls Commercial Credit Limited), through a Business Transfer
Agreement (BTA) executed between the Company and its subsidiary. The acquisition included a group of assets, primarily
comprising the wholesale loan book (net of Expected Credit Losses), related liabilities, and business contracts associated with
the wholesale division. The transaction was carried out for a purchase consideration of Rs. 530 crores. As part of the transfer,
total assets amounting to Rs. 6,744.59 crores and total liabilities of Rs. 6,214.59 crores were taken over by the Company,
based on an independent fair valuation report and duly approved by the Company's Board of Directors.

(60) The Company (SCL) and its six wholly owned Subsidiary companies, namely Sammaan Collection Agency Limited (formerly
known as Indiabulls Collection Agency Limited), Sammaan Sales Limited (formerly known as Ibulls Sales Limited), Sammaan
Insurance Advisors Limited (formerly known as Indiabulls Insurance Advisors Limited), Sammaan Investmart Services Limited
(formerly known as Nilgiri Investmart Services Limited), Indiabulls Capital Services Limited and Sammaan Advisory Services
Limited (formerly known as Indiabulls Advisory Services Limited) (collectively, the Transferor Companies) have filed a first
motion application dated September 16, 2024 (the Application) with National Companies Law Tribunal, New Delhi (the
NCLT, Delhi), for merger of the Transferor Companies with the Company. The NCLT, Delhi has passed an order allowing the
Application. The NCLT, Delhi vide its order dated January 27, 2025, has dispensed with the requirements of convening Equity
Shareholders, Secured and Unsecured Creditors meetings of Subsidiaries (Transferor Companies). However, it has directed
SCL to convene the meetings of its Equity Shareholders, Secured and Unsecured Creditors, through Video Conference, under
the chairmanship of NCLT appointed Chairman / Alternate Chairman. Accordingly, the Company has scheduled to convene
these meetings on June 10, 2025 and has sent the notices of such meetings through permitted mode.

(61) Net gain on derecognition of financial instruments under the amortised cost category includes a gain of Rs 465.31 crore from
the assignment of loans (Refer Note no 43) which comprises an impact of Rs 353 crore arising from changes in estimates
related to assignment transactions, based on trends and market analysis assessed by the Company during the year ended
March 31, 2025.

(62) Previous Year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's
classification / disclosures.

The accompanying notes 1-62 are an integral part of the standalone financial statements

In terms of our report attached of even date

For Nangia & Co LLP For M Verma & Associates For and on behalf of the Board of Directors of Sammaan Capital Limited

Chartered Accountants Chartered Accountants (Formerly Indiabulls Housing Finance Limited)

Firm Registration No. 002391C/N500069 Firm Registration No. 501433C

Jaspreet Singh Bedi Mohender Gandhi Gagan Banga Sachin Chaudhary

Partner Partner Vice Chairman / Managing Director & CEO Whole Time Director & COO

Membership No. 601788 Membership No. 088396 DIN : 00010894 DIN : 02016992

New Delhi New Delhi Mumbai Gurugram

Mukesh Garg Amit Jain

Chief Financial Officer Company Secretary

New Delhi Membership No. F5433

Mumbai

May 16, 2025 May 16, 2025 May 16, 2025