2.16 Provisions

Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to passage of
time is recognized as a finance cost.

2.17 Use of estimates and judgements

In preparing these financial statements,
management has made judgements, estimates
and assumptions which might have an effect
on recognition and measurement of the
reported amounts of assets, liabilities, income
and expenses. Actual results may differ from
these estimates.

The management believes that these estimates
are prudent and reasonable and are based
upon the management's best knowledge of
current events and actions as on the reporting
date. Actual results could differ from these
estimates and differences between actual
results and estimates are recognised in the
periods in which the results/actions are known or
materialised. Revisions to accounting estimates
are recognised prospectively.

2.18 Employee-Benefits Expense

(i) Short-term Employee Benefits

The undiscounted amount of short term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized
as an expense during the period when the
employees render the service.

(ii) Post-employment obligations

Defined contribution plans

The Company recognizes contribution payable
to provident fund scheme as an expense, when
the 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.

Defined benefit plans

The liability or asset recognized in the balance
sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit
obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries
using the projected unit credit method.

The present value of the defined benefit
obligation denominated in INR is determined by
discounting the estimated future cash outflows
by reference to market yields at the end of the
reporting period on government bonds that
have terms approximating to the terms of
the related obligation. The estimated future
payments which are denominated in a currency
other than INR, are discounted using market
yields determined by reference to high-quality
corporate bonds that are denominated in the
currency in which the benefits will be paid, and
that have terms approximating to the terms of
the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan
assets. This cost is included in employee benefit
expense in the statement of profit or loss.

Re-measurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognized in the
period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the statement of changes in
equity and in the balance sheet.

(iii) Other long-term employee benefit obligations
Leave encashment

The liabilities for earned leave are not expected
to be settled wholly within 12 months after the end
of the period in which the employees render the
related service. They are therefore measured as
the present value of expected future payments
to be made in respect of services provided by
employees up to the end of the reporting period
using the projected unit credit method. The
benefits are discounted using the appropriate
market yields at the end of the reporting period
that have terms approximating to the terms of
the related obligation. Re-measurements as a
result of experience adjustments and changes
in actuarial assumptions are recognized in the
statement of profit or loss.

2.19 Share-based payments

Employee Stock Option Plan (ESOP) / Performance
Stock Units (PSU)

Equity settled share based payments to
employees and others providing similar
services are measured at fair value of the equity
instruments at the grant date. Details regarding
the determination of the fair value of equity
settled share based payments transactions are
set out in Note 27.

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
revives its estimate of the number of equity
instruments expected to vest. The impact of the
revision of original estimates, if any, is recognized
in Statement of profit and loss such that the
cumulative expenses reflect the revised estimate,
with a corresponding adjustment to Share based
options outstanding account.

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

Reliance Capital Asset Management Employees
Benefit Trust

The Reliance Capital Asset Management
Employees Benefit Trust is administered by the
Company. The Company treats the trust as its

extension and is consolidated in Company's
financial statements. There are no shares
pending to be allotted in the Trust.

2.20 Earnings per share

a) Basic earnings per share

Basic earnings per share is calculated by dividing
the profit attributable to equity holders of the
Company by the weighted average number of
equity shares outstanding during the financial
year, adjusted for bonus element in equity shares
issued during the year.

b) Diluted earnings per share

Diluted earnings per share adjusts the figures
used in the determination of basic earnings
per share to take into account the after income
tax effect of interest and other financing costs
associated with dilutive potential equity shares,
and the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

2.21 Rounding of amounts

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
crore as per the requirements of Schedule III,
unless otherwise stated.

2.22 New and amended standards

There are no standards that are notified and not
yet effective as on the date.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of I 10 per share. Each holder of
equity shares is entitled to one vote per share.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive
any of the remaining assets of the Company, after distribution of all preferential amounts. However,
no such preferential amounts exists currently. The distribution will be in proportion to the number of
equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the
ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Plan (ESOP) / Performance based Stock Unit
(psu), including details regarding options issued, exercised and lapsed during the year and options
outstanding at the end of the reporting year is set out in note 27.

Nature and purpose of reserve:

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be
utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions
of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another
and is not an item of other comprehensive income, items included in the general reserve will not be
reclassified subsequently to profit or loss.

c) Surplus in the statement of profit and loss

Surplus in the statement of profit and loss that the Company earned/incurred till date, less any
transfers to general reserve, dividends or other distributions paid to Shareholders. Surplus in the
statement of profit and loss include re-measurement loss / (gain) on defined benefit plans, net of
taxes that will not be reclassified to Statement of Profit and Loss.

d) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options
issued to employees under share based payments arrangement over the vesting period. (Refer Note.
27)

The weighted average duration of the defined benefit obligation is 08 years (previous year - 08 years)

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment

risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present
value of the liability requiring higher provision. A fall in the discount rate generally increases the mark
to market value of the assets depending on the duration of asset.

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

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount
rate which is determined by reference to market yields at the end of the reporting period on
government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently,
for the plan in India, it has a relatively balanced mix of investments in government securities, and
other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the
plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement
age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the
insurance Company and a default will wipe out all the assets. Although probability of this is very less
as insurance companies have to follow regulatory guidelines.

24. SEGMENT INFORMATION

The Company is in the business of providing asset management services to the schemes of Nippon India
Mutual Fund, portfolio management service, and advisory service to the clients / schemes. The primary
segment is identified as asset management services. As such, the Company's financial results are largely
reflective of the asset management business and accordingly there are no separate reportable segments
as per Ind AS 108 Operating Segment.

25. FAIR VALUE MEASUREMENT
a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level 1 are
measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level
2 measurements are valuations techniques with all material inputs observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level 3 measurements
are valuations not based on observable market data (that is, unobservable inputs). Management applies
judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement
uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement.
The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and
for which fair values are disclosed in the financial statements. To provide an indication about the reliability
of the inputs used in determining fair value, the Company has classified its financial instruments into the
three levels prescribed under the accounting standard. An explanation of each level follows underneath
the table.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives,
and equity securities) is based on quoted market prices at the end of the reporting period. The quoted
market price used for financial assets held by the company is the current bid price. These instruments are
included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-
the-counter derivatives) is determined using valuation techniques which maximize the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities.

There are no transfers between levels 1 and 2 during the current year and previous year.

b) Valuation technique used to determine fair value

Mutual Funds: Net Asset Value (NAV) declared by the mutual fund at which units are issued or redeemed

Debt Securities: At Amortised Cost

Alternative Investment Funds: Close ended Alternative Investment Schemes at declared NAV's
provided by issuer fund which is arrived at based on valuation from independent valuer for unlisted
portfolio companies.

In order to assess Level 3 valuations as per Company's investment policy, the management reviews the
performance of the investee companies.

26. FINANCIAL RISK MANAGEMENT

The Company activities expose it to credit risk, liquidity risk and market risk. The Company's risk
management is carried out by a Risk department under the policies approved by the Board of
Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the
other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company's customers, clients or market
counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to
other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the
Company's business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents
and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by
the management on an ongoing basis and is considered to be high.

2. The Company has extended loans to its subsidiary. Credit risk on the loans has been managed by
the Company. The Company uses expected credit loss model to assess the impairment loss or gain.
Refer note 6 for the same.

3. Exposures to customers' outstanding at the end of each reporting period are reviewed by the
Company to determine incurred and expected credit losses. As the Company has a contractual right
to such receivables as well as has the control over such funds due from customers, the Company
does not estimate any credit risk in relation to such receivables. Further, management believes that
the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on
historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet
payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company's liquidity position and cash and cash
equivalents on the basis of expected cash flows. This is generally carried in accordance with practice
and limits set by the Company after giving due considerations to internal and external factors that could
impact the liquidity position of the Company. Further, since the Company has no external borrowings and
has sufficient cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company's
financial assets and liabilities as at reporting date.

C. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument
that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest
rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate
risk and price risk.

i) Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities.
Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that fair value or future cash
flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free
Bonds held by the Company and loans extended by the Company to subsidiaries are at yearly fixed
rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk
Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in
market prices and related market variables including interest rate for investments in debt oriented
mutual funds and debt securities, caused by factors specific to an individual investment, its issuer
and market. The Company's exposure to price risk arises from diversified investments in mutual funds
held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on
the Company's investment in Mutual fund and its profit for the period. The analysis is based on the
assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant,
and that all the Company's investments in mutual funds moved in line with the NAV.

39. The Company has used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, no instance of audit trail feature being tampered with was
noted in respect of accounting software where the audit trail has been enabled. Additionally, the audit
trail for the current financial year ended March 31, 2025 has been preserved by the Company as per
the statutory requirements for record retention. The audit trail for the previous financial year has been
preserved by the Company as per the statutory requirements for record retention, to the extent it was
enabled and recorded in the prior year.

40. The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure
is not applicable.

41. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

42. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

43. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44. 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 that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries) or

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

45. The Company has not received any fund 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 Funding Party (Ultimate Beneficiaries) or

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

46. The Company does not has any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

47. The Code on Social Security 2020, relating to employee benefits during employment and post-employment,
has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made
by the company towards Provident Fund and Gratuity. The effective date from which the changes are
applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be
assessed and accounted in period of notification of the relevant provisions.

48. During the quarter ended September 30, 2024, the Company had received a Show Cause Notice from
Securities Exchange Board of India (SEBI) alleging non-compliances of certain provisions of applicable
SEBI guidelines with respect to certain investments made by the Schemes of the Nippon India Mutual
Fund. Based on its current assessment of the said matter, management is of the view that the Company
has complied with relevant provisions of SEBI guidelines. Further, under legal advice, the Company is
engaging with the regulator on the matter. Accordingly, pending the foregoing, no provisions have been
made in these financial results for the year ended March 31, 2025.

49. The figures for the corresponding previous period have been regrouped/reclassified wherever necessary,
to make them comparable.

50. EVENTS OCCURRING AFTER THE REPORTING PERIOD

The Board of Directors have proposed final dividend of I 10.00/- per equity share of I 10/- each for the
financial year 2024-25. This is in addition to the interim dividend of I 8.00/- per equity share declared by
the Board of Directors on October 24, 2024. (Refer note 31 for details).

For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Nippon Life India Asset Management Limited

ICAI Firm Registration Number: 301003E/E300005

per Pikashoo Mutha Sundeep Sikka Ashvin Parekh

Partner Executive Director & CEO Director

Membership Number: 131658 DIN No. 02553654 DIN No. 06559989

Parag Joglekar Ajay Patel

Chief Financial Officer Manager

Valde Varghese

Mumbai Company Secretary

April 28, 2025 ACS: 24937