11. Provisions, Contingent liabilities and Contingent
assets

Provisions are recognised only when:

• an entity has a present obligation (legal or
constructive) as a result of a past event; and

• it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation; and

• a reliable estimate can be made of the amount of
the obligation

These are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.

Further, long term provisions are determined by
discounting the expected future cash flows specific
to the liability. The unwinding of the discount is
recognised as finance cost. A provision for onerous
contracts is measured at the present value of the
lower of the expected cost of terminating the
contract and the expected net cost of continuing
with the contract. Before a provision is established,
the Company recognises any impairment loss on the
assets associated with that contract.

Contingent liabilities are disclosed in case of:

• a present obligation arising from past events, when
it is not probable that an outflow of resources will
be required to settle the obligation; and

• a present obligation arising from past events, when
no reliable estimate is possible.

Contingent assets:

Contingent assets are assessed continually to ensure
that developments are appropriately reflected in the
financial statements. If it has become virtually certain
that an inflow of economic benefits will arise, the asset
and the related income are recognised in the financial

statements of the period in which the change occurs. If
an inflow of economic benefits has become probable,
an entity discloses the contingent asset.

12. Commitments:

Commitments are future liabilities for contractual
expenditure, classified and disclosed as follows:

• estimated amount of contracts remaining to be
executed on capital account and not provided for;

• uncalled liability on loan sanctioned and on
investments partly paid; and

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

13. Earnings Per Share

The Company presents basic and diluted Earnings Per
Share (“EPS”) data for its equity shares. Basic EPS is
calculated by dividing the profit or loss attributable to
equity shareholders of the Company by the weighted
average number of equity shares outstanding during
the year.

Diluted EPS is calculated by adjusting the profit or loss
attributable to equity shareholders and the weighted
average number of equity shares outstanding for the
effects of all dilutive potential equity shares, except
where the results would be anti-dilutive.

14. Cash and Cash Equivalents

Cash comprises cash in hand and demand deposits
with banks. Cash equivalents are short term balances
(with an original maturity of three months or less from
the date of acquisition), and highly liquid time deposits
that are readily convertible into known amounts of
cash and which are subject to insignificant risk of
changes in value.

15. Statement of Cash Flows

Statement of Cash Flows is prepared segregating the
cash flows into operating, investing and financing
activities. Cash flow from operating activities is
reported using indirect method adjusting the net profit
for the effects of:

i. changes during the period in inventories and
operating receivables and payables transactions
of a noncash nature;

ii. non-cash items such as depreciation, provisions,
deferred taxes, unrealised foreign currency gains
and losses, and undistributed profits of associates
and joint ventures; and

iii. all other items for which the cash effects are
investing or financing cash flows.

Cash and cash equivalents (including bank balances)
shown in the Statement of Cash Flows exclude items

which are not available for general use as on the date
of balance sheet.

16. Employee Benefits

Short term employee benefits

Employee benefits falling due wholly within twelve
months of rendering the service are classified as
short term employee benefits and are expensed in
the period in which the employee renders the related
service. Liabilities recognised in respect of short-term
employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in
exchange for the related service.

Long term employee benefits

Company’s net obligation in respect of long-term
employee benefits is the amount of future benefit that
employees have earned in return for their service in
the current and prior periods.

Post-employment benefits

a) Defined Contribution Plans

Provident Fund:Contributions as required under
the statute, made to the Provident Fund (Defined
Contribution Plan) are recognised immediately
in the Statement of Profit and Loss. There is no
obligation other than the monthly contribution
payable to the Regional Provident Fund
Commissioner.

ESIC and Labour Welfare Fund:The Company’s
contribution paid/payable during the year to
Employee state insurance scheme and Labour
welfare fund are recognised in the Statement of
Profit and Loss.

b) Defined Benefit Plans

Gratuity liability is defined benefit obligation and
is provided on the basis of an actuarial valuation
performed by an independent actuary based on
projected unit credit method, at the end of each
financial year.

Defined benefit costs are categorised as follows:

i) Service cost (including current service cost, past
service cost, as well as gains and losses on curtailments
and settlements)

ii) Net interest expense or income

iii) Re-measurement

Re-measurements of the net defined benefit liability,
which comprise actuarial gains and losses, the return
on plan assets (excluding interest) and the effect of the
asset ceiling (if any, excluding interest), are recognized
in OCI, net of taxes. The Company determines the net
interest expense/(income) on the net defined benefit

liability/(asset) for the period by applying the discount
rate used to measure the defined benefit obligation
at the beginning of the annual period to the net
defined benefit liability/(asset), taking into account
any changes in the net defined benefit liability/
(asset) during the period as a result of contributions
and benefit payments. Net interest expenses and
other expenses related to defined benefit plans are
recognized in Statement of Profit and Loss.

The Company’s net obligation in respect of gratuity
(defined benefit plan), is calculated by estimating the
amount of future benefit that the employees have
earned in the current and prior periods, discounting
that amount and deducting the fair value of any plan
assets. The retirement benefit obligation recognised
in the Balance Sheet represents the actual deficit or
surplus in the Company’s defined benefit plans. Any
surplus resulting from this calculation is recognised as
an asset to the extent of present value of any economic
benefits available in the form of refunds from the plans
or reductions in the future contribution to the plans.

Share based payment arrangements

The cost of equity settled transactions is determined
by the fair value at the grant date. The fair value of the
employee share options is based on the Black scholes
model.

The grant date fair value of equity settled share based
payment granted to employees is recognized as an
expense, with a corresponding increase in equity,
over the vesting period of the awards. The amount
recognized as an expense is adjusted to reflect the
number of awards for which the related service and

non-market performance conditions are expected to
be met, such that the amount ultimately recognized is
based on the number of awards that meet the related
service and non-market performance conditions at
the vesting date. For share based payment awards
with market performance conditions and non-vesting
conditions, the grant date fair value of the share based
payment is measured to reflect such conditions and
there is no true-up for differences between expected
and actual outcomes.

The Company grants options to eligible employees of
the Company under Choice Employee Stock Option
Scheme 2022. The options vest over a period of four
years. In case of Group equity settled share based
payment transactions, where the Company grants
stock options to the employees of its subsidiaries, the
transactions are accounted by increasing the cost of
investment in subsidiary with a corresponding credit in
the equity.

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

17. Investment in Subsidiaries

Subsidiaries are all entities over which the Company
has control. The Company controls an entity when
the Company is exposed to, or has rights to, variable
returns from its involvement with the entity and has
the ability to affect those returns through its power to
direct the relevant activities of the entity.

Investment in subsidiaries are measured at cost less
accumulated impairment, if any.

Investment in Subsidiary, Joint Venture and Associate
Companies

The Company has elected to recognise its investments in
subsidiary, Joint venture and associates companies at cost in
accordance with the option available in Ind AS 27 “Separate
Financial Statements”.

9(i) During the year ended March 31, 2026, the Company
invested in Choice AMC Private Limited by subscribing to
5,00,00,000 equity shares at Rs.10/- pershare, amounting
to Rs.5,000 lakhs, and by acquiring 61,10,000 lakhs equity
shares from Choice Equity Broking Private Limited at
Rs.10/- per share, amounting to Rs. 611 lakhs. Pursuant
to these transactions, Choice AMC Private Limited
became a wholly owned subsidiary of the Company.
Additionally, the Company also subscribed to an
additional 1,00,00,000 equity shares of Rs.10/- each,
amounting to Rs.1,000 lakh, in the said subsidiary,
thereby increasing the aggregate investment to Rs.6,611
lakhs.

9(ii) During the year ended March 31, 2026, the Company
has further invested in its subsidiary, Choice Finserv
Private Limited, by subscribing to 92,14,585 equity shares
at a price of Rs.108/- per share, amounting to a total
investment of approximately Rs. 9,951.75 lakhs.

9(iii) The Company has advanced a sum of Rs.6,250.20
lakhs towards the proposed acquisition of a 50%

equity stake in Choice Insurance Broking India Private
Limited, comprising 6,60,000 Equity share at a price of
Rs. 947/- per share. This transaction has been approved
by Insurance Regulatory and Development Authority of
India (IRDAI) on February 04, 2026.

9(iv) During the year ended March 31, 2026, the Company
acquired a 51% stake in Fintoo Wealth Private Limited
by subscribing to 520,408 equity shares at Rs.192.15 per
share, aggregating to Rs. 999.96 lakhs.

9(v) During the year ended March 31, 2026, the Company
has written off its investment in the share warrants of
FinMen Advisors and Consultants Private Limited, as the
negative net worth of the investee company indicated
that the warrants had no recoverable value and were
not expected to be exercised.

9(vi) During the year ended March 31, 2026, the Company has
made investment in 15,00,000 Share Warrants of Share
Samadhan Limited @ Rs. 78/- per warrants, and paid
25% application money. Subsequently, the Company
recognised a fair value loss of Rs. 200 lakhs on the
investment.

9(vii) During the year ended March 31, 2026, the Company
has issued 3,57,250 (March 31, 2025: Nil) Employees Stock
options to the employees of its subsidiaries (Refer Note
39(iii)). This includes related party transactions referred
in Note 40 (ii).

Terms / rights attached to Equity Shares:

1 The Company has only one class of equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. In the event of liquidation, the equity share holders are eligible to receive the remaining
assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

2 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders

3 Disclosure statement on buy back and Bonus issue of shares

The Company has not bought back any of its equity shares during the period of five years immediately preceding the
reporting date.

The Company issued 4,97,56,000 bonus equity shares in the ratio of 1:1 on September 15, 2022 and 9,96,89,500 bonus equity
shares in the ratio of 1:1 on February 12, 2024, without consideration in cash, in accordance with the applicable provisions of
the Companies Act, 2013.

4 Disclosure statement of Shares issued under ESOP Scheme

During the year ended March 31, 2026, the Company has issued Nil (March 31, 2025 : 2,76,500) Equity shares under ESOP
scheme @ Rs. 10/- per share.

(ii) Capital Commitments-

As at March 31, 2026, the Company had the following capital commitments:

Pursuant to a Memorandum of Understanding (MOU) entered into during the year ended March 31, 2024, for the acquisition of
leasehold property valued at Rs. 2,900 lakhs, the Company has commenced construction activities and incurred expenditure of
Rs. 407.65 lakhs as at March 31, 2026. Further expenditure of approximately Rs. 3,000.00 lakhs is expected to be incurred in the
subsequent financial year.

The Company has commenced construction of a property at Jaipur, which is classified as Capital Work-in-Progress. During the
financial year 2025-26, the Company incurred expenditure of Rs. 378.95 lakhs towards the construction. The Company expects to
incur additional expenditure of approximately Rs. 2,500.00 lakhs towards the completion of the project during the next financial
year.

These commitments represent the Company’s planned capital expenditure towards development projects.

(iii) The Company does not have any pending litigation and did not have any long-term contracts, including derivative contracts,
for which there were any material foreseeable losses.

39(ii) Defined benefit plans
Gratuity (post-employment benefits)

The Company provides for gratuity to employees in India as per the Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination
is the employee’s last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of
years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised/approved funds in
India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of
time based on estimations of expected gratuity payments.

39(iii) Employee Stock Option Plan

The Company has Choice Employee Stock Option Plan 2022, under which options have been granted to eligible employees to
be vested from time to time.

The Company has established share option plans that entitle the employees of the Company and its subsidiary companies to
purchase the shares of the Company. Under these plans, holders of the vested options are entitled to purchase shares at the
exercise price of the shares determined at the respective date of grant of options.

The key terms and conditions related to the vesting of grants under these plans are continued employment with the Company
from the date of grant of option till the date of vesting; all options are to be settled by the delivery of shares.

Measurement of fair values

The fair value of the employee share options has been measured using Black-Scholes Option pricing model.

Note 41 : Fair Value Disclosure

This section gives an overview of the significance of financial instruments for the Company and provides additional information
on balance sheet items that contain financial instruments. The details of material accounting policies, including the criteria for
recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of
financial asset, financial liability and equity instrument are disclosed in the financial statements:

41.2 Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are divided into three levels
of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as
follows:

a) Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

b) Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity specific estimates.

c) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The Company has assessed that the fair value of cash and cash equivalents, other bank balances, trade receivables, other
current financial assets, trade payables, approximate to their carrying amounts largely due to the short-term maturities of these
instruments.

(i) Borrowings are evaluated by the Company based on parameters such as interest rates and specific country risk factors.

(ii) The fair value of other financial liabilities, is estimated by discounting future cash flows using rates currently available for
debt on similar terms, credit risk and remaining maturities.

(iii) The fair values of the Company’s interest-bearing borrowings and loans are determined by using DCF method using discount
rate that reflects the issuer’s borrowing rate as at the end of the reporting period. No own non-performance risk as at March
31, 2026 was assessed.

Note 42 : Financial Risk Management Objectives and Policies

The Company’s principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these
financial liabilities is to finance the Company’s operations directly or indirectly. The Company’s principal financial assets include
investments, loans, trade and other receivables, cash and cash equivalents that derive directly from its operations.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including Fixed deposits with banks and financial institutions and other financial instruments.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s finance department in accordance
with the Company’s policy. Investments of surplus funds are made generally in the fixed deposits and for funding to subsidiary
company. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make
payments for vendors.

The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2026 and March 31, 2025
is the carrying amounts as stated in balance sheet except for balances of subsidiary company.

Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans
and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing
lenders. The Company believes that the working capital is sufficient to meet its current requirements.

Note 43 : Capital Management

For the purpose of the Company’s capital management, capital includes issued equity share capital, securities premium and all
other reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management
is to maximise the value of the share and to reduce the cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company can adjust the dividend
payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided
by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

Market Risk

The Company manages market risk through a corporate treasury department, which evaluates and exercises independent
control over the entire process of market risk management. The corporate treasury department recommends risk management
objectives and policies, which are approved by senior management and Audit Committee. The activities of this department
include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies,
and ensuring compliance with market risk limits and policies.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.
The Company’s policy is to keep balance between its borrowings at fixed rates of interest. The difference between fixed and
variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

Note 44 : Segment Information

Operating segments are defined as components of an enterprise for which discrete financial information is available that is
evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance.
The Group’s chief operating decision maker is the Chief Executive Officer and Managing Director. Pursuant to surrendering its
license, the main business of the Company is investing and financing to the Subsidiaries and providing support services to the
Group Companies. Further all activities are carried out within India. Accordingly, Segment Reporting in accordance with Ind AS
- 108 “Operating Segment” issued by the Institute of Chartered Accountants of India and adopted by Companies (Accounting
Standard) Rules, 2015 is not applicable to the Company.

Equity price risk

The Company’s investments in non listed equity securities are accounted at cost in the financial statements net of impairment .
The expected cash flows from these entities are regularly monitored internally and also independently, wherever necessary, to
identify impairment indicators.

(1) The increase in the Current Ratio is primarily attributable to higher cash and cash equivalents and an increase in loans

advanced during the current year, resulting in a higher level of current assets as compared to the previous year.

(2) The Debt-Equity Ratio has decreased during the year primarily due to an increase in shareholders’ equity, driven by the
conversion of warrants into equity shares, which resulted in an increase in share capital and other equity.

(3) The decrease in Return on Equity is mainly due to lower profitability during the year and an increase in shareholders’ equity,
leading to a reduction in the overall return generated on equity.

(4) The decrease in the Trade Payables Turnover Ratio is primarily attributable to a significant increase in purchases during the
year, while the corresponding increase in trade payables was not proportionate.

(5) The decline in the Net Capital Turnover Ratio is primarily on account of higher working capital employed during the year,
resulting from an increase in current assets.

(6) The decrease in the Net Profit Ratio is primarily attributable to a substantial increase in operating and other expenses during
the year, which resulted in a decline in profit despite growth in revenue.

(7) The decrease in Return on Capital Employed is primarily due to lower profit during the year and a higher capital employed
base resulting from an increase in share capital and other equity.

(8) The decrease in Return on Investment is primarily attributable to fair value losses recognised on investments during the
current year, resulting in lower investment returns.

* In the calculation of Weighted average cost of Investments, investments in subsidiaries are not considered.

Note 49 : Undisclosed Income

There have been no transactions which have not been
recorded in the books of accounts, that have been surrendered
or disclosed as income during the year ended March 31, 2026
and March 31, 2025, in the tax assessments under the Income
Tax Act, 1961. There have been no previously unrecorded income
and related assets which were to be properly recorded in the
books of account during the year ended March 31, 2026 and
March 31, 2025.

Note 50 : Utilisation of borrowings availed from banks and
financial institutions

The borrowings obtained by the Company from financial
institution has been applied for the purposes for which such
loans were taken.

Note 51 : Disclosure relating to Benami Property held

The Company does not have any benami property where
any proceedings have been initiated or pending against the
Company for holding any benami property under the Benami
Transaction (Prohibition) Act , 1988 (45 of 1988) and Rules made
thereunder.

Note 52 : Willful Defaulter

The Company has not been declared willful defaulter by any
bank or financial institutions or government or any government
authority.

Note 53 : Compliance with number of layers of Companies

The Company has complied with the number of layers
prescribed under section 186(1) of the Companies Act, 2013.

Note 54 : Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in crypto currency or
virtual currency during the current or previous year.

Note 55 : Relationship with Struck off Companies

The Company has not entered in any transactions with
companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956.

Note 56 : Registration of charges or satisfaction with
Registrar of Companies (ROC)

The Company has completed the process of creation and

satisfaction of the charges with Registrar of Companies (ROC)
in due course of time.

Note 57 : Title deeds of immovable properties not held in
name of the Company

There are no instances where the title deeds of immovable
property (other than properties where the Company is the
lessee and the lease agreements are duly executed in favor of
the lessee) are not held in the name of the Company.

Note 58 : Compliance with approved scheme(s) of
Arrangements

The Company has not entered in any transaction which
is required to be complied with approved scheme(s) of
arrangement.

Note 59 : The Social Security Code 2020

On November 21 2025, the Government of India notified
four Labor Codes- the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020 and
the Occupational Safety, Health and Working Conditions
Code, 2020, collectively referred to as the ‘New Labor Codes’
consolidating 29 existing labor laws. The Ministry of Labor &
Employment has published draft Central Rules and FAQs on
December 30, 2025 to facilitate assessment of the financial
impact arising from these regulatory changes. Accordingly, the
Company has recognised an estimated incremental impact of
Rs. 7.91 lakhs under ‘Employees cost’ in the Statement of Profit
and Loss during the quarter ended December 31, 2025 and year
ended March 31, 2026, considering best information available.
The Company continues to monitor the finalisation of Central
and State Rules and clarifications from the Government on the
New Labor Codes and would provide appropriate accounting
effect on the basis of such developments, as needed.

Note 60 : Subsequent Event

There have been no events after the reporting date that require
disclosure in these financial statements.

Note 61 : Approval of Financial Statements

The standalone financial statements of the Company were
approved for issue in accordance with a resolution of the
Board of Directors on April 23, 2026.

Note 48 : Utilisation of Borrowed Funds and share premium:

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

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 group 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