Aditya Birla Capital Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2025

Note a): Hedging Activities and Derivatives

The Company is exposed to certain risks relating to its External Commercial Borrowings and Non-Convertible Debentures. The primary risks managed using derivative instruments are foreign currency risk and interest rate risk. The Company''s risk management strategy and how it is applied to manage risk is explained in Note 50.

Note b): Derivatives Designated as Hedging Instruments

(i) Cash Flow Hedges

The Company is exposed to foreign currency risk arising from its External Commercial Borrowings amounting to ? 5,646.44 crore. Interest on the borrowings is payable at a floating rate. The Company economically hedged the foreign currency risk arising from the debt with a ''receive floating pay fixed'' cross currency interest rate swap (''swap''). The notional amount of swap is disclosed in the table below. The swap contract converts the cash outflows of the foreign currency borrowings as per the table below to cash outflows in INR with a notional amount of ? 5,609.16 crore at fixed interest rate.

There is an economic relationship between the hedged item and the hedging instrument as the terms of the cross currency swap contract match that of the foreign currency borrowings (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 cross currency swap are identical to the hedged risk components. To test the hedge effectiveness, the Company uses the hypothetical derivative method and compares the changes in the fair value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks. The hedge ineffectiveness can arise mainly if there is a change in the credit risk of the Company or the counterparty.

(ii) Fair Value Hedge

Fair value hedges hedge the exposure to changes in the fair value of a recognised asset or liability, or an identified portion of such an asset or liability, 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 under 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 under 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 above disclosure has been prepared based on the impact of exposures transferred between stages during the period, or changes in items within the same stage. Hence, write-offs during the year (including settlements and technical write-offs) are reported according to the staging (i.e., Stage 1, 2, or 3) at the start of the year. The classification of fresh loan disbursements is based on the staging status at the end of the period.

The Company has carried out the valuation activity through a Registered Valuer in terms of the Companies Act, 2013, to assess fair value of its Investment Property. As per report provided by the valuer, the fair value is ? 20.45 crore as on 31^st March 2025 (31^st March 2024 ? 19.02 crore).

The fair value of Investment Property has been derived using the Direct Comparison Method based on recent market prices, without any significant adjustments being made in observable data. Accordingly, fair value estimates for Investment Property is classified as Level 3.

The Company has no restrictions on the realisability of its Investment Property, and has no contractual obligations to purchase, construct or develop Investment Property.

2) Terms/Rights Attached to Equity Shares

The Company has only one class of Equity Shares having a par value of ? 10 per Share. Each holder of Equity Shares is entitled to one vote per Share.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of the Equity Shares held by the shareholders.

Nature and Purpose of Reserves

(a) Special Reserve

The Company created a reserve pursuant to the Reserve Bank of India Act, 1934 (the "RBI Act"), in terms of Section 45-IC of the RBI Act by transferring the amount not less than 20 per cent of its net profit every year as disclosed in the Statement of Profit and Loss, and before any dividend is declared.

(b) Capital Reserve

Reserve is created on account of business combination transactions.

(c) Capital Redemption Reserve

Capital redemption reserve created on redemption of preference shares from retained earnings.

(d) Securities Premium Reserve

This is created on account of premium received upon issuance of Equity Shares.

(e) Share Options Outstanding

The reserve is created to recognise the fair value of the options issued to employees of the Company, Subsidiaries, Associates and Joint Ventures, under the Company''s Employee Stock Options Scheme.

(f) Surplus in Profit and Loss Account

Retained earnings represent the amount of accumulated earnings of the Company.

(g) General Reserve

Created upon unexercised employee stock options that have expired.

(h) Other Comprehensive Income

The Company has elected to recognise changes in the fair value of certain instruments in equity securities and debt instruments in other comprehensive income. These changes are accumulated with the FVTOCI reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

The Company uses hedging instruments as part of its management of foreign currency risk and interest rate risk associated on borrowings. For hedging foreign currency and interest rate risk, the Company uses foreign currency forward contracts and cross currency interest rate swaps. To the extent these hedges are effective, the change in fair value of the hedging instrument is recognised in the cash flow hedging reserve. Amount recognised in the cash flow hedging reserve is reclassified to the Statement of Profit and Loss, when the hedged item affects profit or loss (e.g., interest payments).

Note 1: Nature of CSR Activities

For FY 2024-25: Promoting education including providing education in Anganwadi Centres and Government Schools and remedial classes for tribal students, health care, training to support athletes qualifying in Asian games and empowering women.

For FY 2023-24: Promoting education including providing education in Anganwadi Centres and Government Schools and remedial classes for tribal students, health care, ensuring environment sustainability by increasing water availability and livelihoods, training to support athletes qualifying in Asian games and empowering women.

Note 2: The total amount spent for CSR activity includes amount paid to Aditya Birla Capital Foundation

*There is a change in the Regulation stating that if the CSR contribution of the Company lying in the bank account of the respective NGO is unspent at the end of a FY, the same is required to be returned to the Company, and has to be maintained in a separate bank account by the Company. The balance shown here is the same unspent amounts transferred back by NGOs.

Basic Earnings Per Share (EPS) is calculated by dividing the profit after tax for the year by the weighted-average number of equity shares outstanding during the year.

Diluted EPS is calculated by dividing the profit after tax for the year by the weighted-average number of equity shares outstanding during the year plus the weighted-average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares of the Company.

The Company has a defined benefit gratuity plan (funded). The Company''s defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and last drawn salary.

The following tables summarises the components of net benefit expense recognised in the Statement of Profit and Loss, and the funded status and amounts recognised in the Balance Sheet for the gratuity plan.

The Company makes Provident Fund, Pension Fund, Employee State Insurance Scheme, Maharashtra Labour Welfare Fund, and National Pension Scheme contributions, which are defined contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.

NOTE: 42 DISCLOSURE UNDER EMPLOYEE STOCK OPTIONS SCHEME (A) Stock Options Scheme 2017

At the Annual General Meeting held on 19^th July 2017, the shareholders of the Company approved the grant of not more than 3,22,86,062 Equity Shares by way of grant of Stock Options ("ESOPs") and Restricted Stock Units ("RSUs"). The Scheme allows the Grant of Stock Options to employees of the Company, and its Group Company(ies), including its Holding Company, Subsidiary Company(ies) and Associate Company(ies) (whether working in India or outside India) that meet the eligibility criteria. Each Stock Option confers a right upon the Grantee to apply for 1 (one) Equity Share.

B) Stock Option and Performance Stock Unit Scheme 2022

The shareholders of the Company, vide a special resolution passed through Postal Ballot on 16^th October 2022, approved the Scheme titled "Aditya Birla Capital Limited Employee Stock Options and Performance Stock Unit Scheme 2022" ("ABCL Scheme 2022") for granting Employee Stock Options ("Options") and Employee Performance Stock Units ("PSUs") (collectively referred to as the "Stock Options"), exercisable into not more than 4,10,71,270 Equity Shares. ABCL Scheme 2022 allows the grant of Stock Options to employees of the Company, and its Group Company(ies), including its Holding Company, Subsidiary Company(ies) and Associate Company(ies) (whether working in India or outside India) that meet the eligibility criteria. Each Stock Option confers a right upon the Grantee to apply for 1 (one) Equity Share.

C) ABCL Incentive Plan 2017

The Scheme titled as "ABCL Incentive Scheme for Stock Options and Restricted Stock Units - 2017 (ABCL Incentive Scheme)" was approved by the shareholders through postal ballot on 10^th April 2017. The Nomination, Remuneration and Compensation Committee of the Company, at its meeting held on 15^th January 2018, granted 14,65,927 ESOPs and 2,52,310 Restricted Stock Units (RSUs) (collectively called as "Stock Options") to the eligible grantees pursuant to the Composite Scheme of Arrangement between erstwhile Aditya Birla Nuvo Limited (now merged with Grasim Industries Limited), Grasim Industries Limited and Aditya Birla Capital Limited. The Stock Options allotted under the Scheme are convertible into equal number of Equity Shares.

The vesting conditions and the vesting dates under the ABCL Incentive Scheme shall follow the same vesting conditions, as applicable to the Grantees, under the corresponding Grasim Employee Benefit Schemes 2006 and 2013.

NOTE: 45	CONTINGENT LIABILITIES AND COMMITMENTS
A) Contingent Liabilities
			(? crore)
Particulars		As at 31st March 2025	As at 31st March 2024
Disputed Income Tax Liability13''		74.31	40.81
Disputed Service Tax/GST Liability13''		9.89	1.80
Claims Against the Company Not Acknowledged as Debts		2.35	2.30
Corporate Guarantees, Guarantee on Overdraft, Letter of Credit and Letter of Comfort Given by the Company on behalf of the Clients		315.43	75.92
Corporate Guarantees Given to National Housing Bank on behalf of Subsidiary13''		1,234.45	1,605.72
Total		1,636.43	1,726.55

(a)Disputed Income Tax Liability		(? crore)
Particulars	As at 31st March 2025	As at 31st March 2024
Disallowances of depreciation on intangibles, Disallowance of donation forming part of CSR expenditure u/s 80G, Disallowance of certain expenses, Disallowance under Section 14A, Disallowance of PF/ESIC, Disallowance of CENVAT credit w/off.	44.00	10.49
Interest on Non-Performing Assets (NPA)	30.31	30.32
Total	74.31	40.81

Note: Interest and consequential changes, if any, arising on settlement of those contingent liabilities are not ascertainable.

^(b) (i) Show Cause-cum-Demand Notice No. ST/Audit-NI/P-3/Gr-7/Aditya Birla/SCN/2016 dated 9^th May 2017 was issued to the

Company demanding service tax of ? 0.70 crore on penal/default interest.

(ii) Show Cause-cum-Demand Notice issued under GST as on 31^st March 2025 on various date in multiple states issued to the Company ? 9.19 crore.

^(c) The Company has issued corporate guarantees to the National Housing Bank on behalf of its subsidiary, Aditya Birla Housing Finance Limited (ABHFL), of ? 3,500 crore upto 31^st March 2025 (31^st March 2024: ? 3,500 crore) for ABHFL borrowing, against which the amount outstanding in the books of ABHFL as at 31^st March 2025 is ? 1,234.45 crore (31^st March 2024: ? 1,607.52 crore). As per the terms of the Guarantee, the Company''s liability is capped at the outstanding amount on invocation.

B) Capital and Other Commitments

(i) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) on account of property, plant and equipment is ? 11.00 crore (31^st March 2024: ? 7.63 crore) and on account of intangible assets is ? 12.35 crore (31^st March 2024: ? 19.45 crore ).

(ii) Undisbursed commitments where the Company does not have an unconditional rights to cancel the undrawn/unavailed/ unused portion of the loan at any time during the subsistence of the loan is Nil.

(iii) Pursuant to the Shareholders'' Agreement entered into with Sun Life Financial (India) Insurance Investments Inc. and its holding Company Sun Life Assurance Company of Canada by Aditya Birla Capital Limited, in respect of Aditya Birla Sun Life Insurance Company Limited (ABSLI), the Company will infuse its share of capital in ABSLI from time to time to meet the solvency requirement, prescribed by the regulatory authority. Transfer of investments in ABSLI is restricted by the terms contained in Shareholders'' Agreements entered into by the Aditya Birla Capital Limited.

(iv) Pursuant to the Shareholders'' Agreement entered into with Momentum Metropolitian Strategic Investments (Proprietary) Limited and Platinum Jasmine A 2018 Trust by Aditya Birla Capital Limited, in respect of Aditya Birla Health Insurance Co. Limited (ABHI), the Company will infuse its share of capital in ABHI from time to time to meet the solvency requirement, prescribed by the regulatory authority.

(IX) Corporate Guarantees Issued:

The Company has issued corporate guarantees to the National Housing Bank on behalf of its subsidiary, Aditya Birla

Housing Finance Limited (ABHFL), of ? 3,500 crore upto 31^st March 2025 (31^st March 2024: ? 3,500 crore) for ABHFL

borrowing, against which the amount outstanding in the books of ABHFL as at 31^st March 2025 is ? 1,234.45 crore

(31^st March 2024: ? 1,607.52 crore). As per the terms of the Guarantee, the Company''s liability is capped at the

outstanding amount on invocation.

Notes:

a) Figures of ? 50,000 or less have been denoted by ft.

b) The related party relationships have been as identified by the Management on the basis of the requirements of the Indian Accounting Standard Ind AS-24 ''Related Party Disclosures'', and the same have been relied upon by the Auditors.

c) The relationships disclosed above are for the entities where control exists and with whom transactions have taken place during the year.

d) Remuneration to Key Managerial Personnel excludes provision for gratuity, pension and compensated absences, since it is provided on actuarial basis for the Company as a whole.

e) The Non-Convertible Debentures'' balance shown above includes purchase and sale from secondary market, and are held by related party as on reporting dates.

NOTE: 48 CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital, share 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 shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a capital adequacy ratio, which is weighted assets divided by total capital derived as per the RBI requirements. As per the RBI guidelines, the Company, being a Non-Banking Finance Company, has to maintain 15% of capital adequacy ratio.

For Capital to Risk (Weighted) Assets Ratio (CRAR), refer Note No. 72(B).

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interestbearing loans and borrowings in the current year.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31^st March 2025 and 31^st March 2024.

NOTE: 49 FINANCIAL INSTRUMENTSNote 49.1: Other Disclosure Pursuant to Ind AS 107 “Financial Instruments: Disclosures"

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.

Short-Term Financial Assets and Liabilities: The carrying amounts of cash and cash equivalents, bank balance, trade receivables, other financial assets, trade payables and other financial liabilities are considered to be the same as their fair values, due to their short-term nature.

Borrowings

Floating Rate Borrowings: Floating rate borrowings are valued on the basis of Applicable Benchmark (viz., Tenor-Linked T-Bill, Repo Rate, Tenor-Linked MCLR, or any external benchmark, as the case may be) Spread, if applicable.

Fixed Rate Borrowings: Fixed rated borrowings are valued on the basis of valuation report shared by ICRA.

Note 49.2: Disclosure Pursuant to Ind AS 113 "Fair Value Measurement"

The fair value of a financial instrument on initial recognition is normally the transaction price (fair value of the consideration given or received). Subsequent to initial recognition, the Company determines the fair value of financial instruments that are quoted in active markets using the quoted bid prices (financial assets held) or quoted ask prices (financial liabilities held) and using valuation techniques for other instruments. Valuation techniques include discounted cash flow method, market comparable method, recent transactions happened in the Company and other valuation models.

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 (i.e., an exit price), 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, as explained below:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, units of mutual funds (open ended) and traded bonds that have quoted price. The fair value of all equity instruments (including bonds), which are traded in the stock exchanges, is valued using the closing price as at the reporting period.

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. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

(e) Valuation Techniques

Equity Instruments: The majority of equity instruments are actively traded on stock exchanges with readily available active prices on a regular basis. Such instruments are classified as Level 1. Unlisted equity securities are classified at Level 3.

Investment in Preference Shares: Investment made in preference share is not actively traded on stock exchange, and such instruments are classified as Level 2.

Investment in Government Securities: The fair values of investments made in Government Securities is based on valuation report from Financial Benchmarks India Private Limited, as at the reporting period, and the same are classified under Level 2.

Investment in Alternate Funds, Mutual Funds and Security Receipts: Investment in Alternate Funds, Mutual Funds and Security Receipts: Such instruments are measured based on their published net asset value (NAV), taking into account redemption and/or other restrictions. Such instruments are generally Level 2. NAV represents the price at which the issuer will issue further units, and the price at which issuers will redeem such units from the investors.

Investment in Debt Securities: Fair value of these instruments is derived based on the indicative quote of price and yields prevailing in the market as at reporting date. The Company has used quoted price of national stock exchange, wherever bonds are traded actively. In cases where debt securities are not actively traded, the Company has used CRISIL corporate bond valuer model for measuring fair value, i.e., fair value has been computed using the Fixed Income Money Market and Derivatives Association of India (''FIMMDA'') data on corporate bond spreads, and such instruments are classified as Level 2.

Derivative Financial Instruments: A generally accepted framework for the valuation of the swap explains the position in each leg of the swap as a ''bond''. Therefore, a receive floating - pay fixed swap can be viewed as a portfolio consisting a short position in fixed bond and long position a floating rate bond. The value of the swap is the net proceeds from such bond positions, i.e., Receipt - Payment. The swaps were valued on and with inputs from the swap providers using the terms of the swap contract.

Equity Shares Measured at Fair Value through Other Comprehensive Income: Unquoted equity shares are measured at fair value through other comprehensive income on the basis of the net worth of the investee company, and are classified as Level 3.

The Company has determined that the carrying values of cash and cash equivalents, bank balances, trade receivables, loans, Investment in debentures, trade payables, short-term debts, borrowings, bank overdrafts and other current liabilities are a reasonable approximation of their fair value and, hence, their carrying values are deemed to be fair values.

NOTE: 50 RISK MANAGEMENT(a) Financial Risk Management Objectives and Policies

The Company''s principal financial liabilities comprise borrowings (including Debt Securities and Subordinate Liabilities) and trade and other payables. The main purpose of these financial liabilities is to finance and support the Company''s operations. The Company''s principal financial assets include loans, investments, cash and cash equivalents and other receivables that derive directly from its operations.

The Company is exposed certain Risks such as Market Risk, Credit Risk, Liquidity Risk, etc., The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a Risk Management Committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The Risk Committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures, and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

The Company has identified and implemented comprehensive policies and procedures to assess, monitor and manage risk throughout the Company. The risk management process is continuously reviewed, improved and adapted in the changing risk scenario, and the agility of the risk management process is monitored and reviewed for its appropriateness in the changing risk landscape. The process of ongoing risk evaluation involves re-assessing the risk landscape in response to specific events, while simultaneously considering the long-term economic outlook.

The Company has an elaborate process for risk management. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis.

Operational and Business Risk

Operational risk refers to the risk of loss arising from activities conducted within an entity, due to inadequate structures, system failures, untrained personnel, or inefficient products or processes. To strengthen the overall framework, a Board-approved Operational Risk Management Framework has been established, and is executed by a dedicated team within the Risk Management function. A bottom-up Risk and Control Self-Assessment (RCSA) process is employed to identify high-risk areas and potential gaps, serving as an early warning mechanism to enable timely initiation of remedial measures.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. In the case of the Company, market risk primarily comprises of interest rate risk. Financial instruments affected by market risk include loans and borrowings.

The analyses exclude the impact of movements in market variables on the carrying values of gratuity, other post-retirement obligations and provisions.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held on 31^st March 2025 and 31^st March 2024.

Equity Investment Risk

The Company''s investments in listed and 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 by third party valuer, wherever necessary, to identify impairment indicators.

Interest Rate Risk

Interest rate risk is the risk of loss in the Company''s net income out of change in the level of interest rates and/or their implied volatility. To mitigate the interest rate risk, ALM policy of the Company stipulates interest rate sensitivity gap of all the time buckets. The Interest rate sensitivity statement is prepared every month and placed before Asset-Liability Committee ("ALCO"). The statement captures the duration of rate sensitive assets and liabilities of the Company. The impact of change in interest rate on the earning of the Company is also measured every month, and the same is presented to ALCO.

1. Borrowings having contractual tenor less than 12 months are considered as floating rate.

2. Face value of borrowings has been considered for above disclosure.

Foreign Exchange Risk

Foreign exchange risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company''s exposure to the risk of fluctuation in foreign exchange rates primarily relates to its External Commercial Borrowings. The Company uses derivative instruments like cross currency swaps to hedge exposure to foreign currency risk.

The Company has taken foreign currency floating rate borrowings, which are linked to USD SOFR or JPY TONA. For managing the foreign currency risk and interest rate risk, arising from changes in applicable benchmark (USD SOFR or JPY TONA) on such borrowings, the Company has entered into Cross Currency Swap (CCS) for the entire loan liability covering the entire tenor of the loan along with the interest payable. Under the terms of the CCS, the Company pays interest at the fixed rate to the swap counterparty in INR and receives the floating interest payments based on the applicable benchmark (USD SOFR or JPY TONA) in foreign currency.

Credit Risk

Credit risk refers to the potential loss the Company may suffer if customers or counterparties fail to fulfil their contractual obligations. The Company manages and mitigates credit risk by establishing limits on the level of exposure it is willing to accept for individual counterparties, as well as for specific geographic regions and industry sectors. These exposures are continuously monitored to ensure compliance with the defined limits.

The Company has instituted a credit quality review process to enable early detection of potential changes in the creditworthiness of counterparties, including periodic re-assessment of collateral. Counterparty limits are determined through a credit risk classification system, which assigns a risk rating to each counterparty. These risk ratings are reviewed and updated on a regular basis. The credit quality review process is designed to allow the Company to evaluate potential losses arising from its exposures and to implement corrective measures as necessary.

Impairment Assessment

The Company is using Expected Credit Loss (ECL) model for credit loss provisioning.

The ECL model ensures:

(a) timely recognition of expected credit losses (ECLs),

(b) a structured assessment of significant increases in credit risk, leading to enhanced disclosure standards, and

(c) the development of more accurate business ratios.

The following references provide details on the Company''s impairment assessment and measurement methodologies, and should be read alongside the Material Accounting Policy Information provided in Note No. 2.

• An overview of the Company''s internal grading system (refer to the section Definition of Default below).

• Details on how the Company defines, calculates, and monitors Probability of Default (PD), Exposure at Default (EAD), and Loss Given Default (LGD) (refer to sections The Company''s Internal Rating and PD Estimation Process, Probability of Default, and Exposure at Default below).

• Criteria used by the Company to determine when there has been a significant increase in credit risk (refer to Significant Increase in Credit Risk below).

• The Company''s policy for segmenting financial assets assessed on a collective basis (refer to Grouping Financial Assets Measured on a Collective Basis below).

• ECL calculation methodologies across Stage 1, Stage 2, and Stage 3 assets (refer to Probability of Default, Exposure at Default, and Loss Given Default sections below).

Definition of Default

The Company categorises a financial instrument as defaulted and, therefore, as Stage 3 (credit-impaired) for ECL purposes— when the borrower is 90 days past due on contractual payments.

Additionally, as part of a qualitative assessment, the Company evaluates several indicators of unlikeliness to pay, including:

a) Significant financial difficulties faced by the borrower or issuer;

b) Breach of contractual obligations, such as defaults or overdue payments;

c) Increased likelihood of bankruptcy or financial reorganisation of the borrower; and

d) Any material adverse development/news, etc.

The Company''s Internal Rating and PD Estimation Process

Internal Rating

In line with regulatory expectations (as outlined by the Reserve Bank of India), a robust internal credit rating framework has been established to support effective credit risk management. The Company has developed its internal rating framework in collaboration with CRISIL. Ratings are assigned to all eligible customers or portfolio pools, and are integral to internal decision-making processes.

As per the Company''s policy, eligible borrowers must have an internal credit rating of at least ''investment grade'' according to the internal credit model or possess a valid and current external rating.

Probability of Default (PD)

PD represents the likelihood that a borrower will default within a one-year horizon (used for Stage 1 assets). For Stage 2 assets, where there is a significant increase in credit risk, the PD is assessed over the borrower''s lifetime.

Exposure at Default (EAD)

EAD represents the gross exposure or potential exposure under a facility at the point of default. It estimates the total outstanding amount that is owed by the borrower at the time of default.

Loss Given Default (LGD)

LGD is expressed as the percentage of the EAD that is expected to be lost in the event of default. It is influenced by factors such as the type and value of collateral, expected recovery proceeds, and recovery costs, all considered on a net present value (NPV) basis.

Significant Increase in Credit Risk

a) A significant increase in credit risk is deemed to have occurred when account performance deteriorates and there is no foreseeable resolution.

b) For large borrowers, a comprehensive assessment of multiple risk factors—industry risk, business risk, management risk, financial risk, and banking and facility-level conduct—is undertaken to determine whether credit risk has significantly increased.

c) Credit ratings are also utilised as indicators of significant credit risk changes. These ratings evaluate a borrower''s capacity and willingness to meet financial obligations promptly and consistently, serving as a measure of the relative risk of default.

d) Any other material negative/adverse news/development.

The Company by way of loan sanction letter and other loan securing documents agrees with its customers on collateral security to be provided by the customers in secured loan exposures that are subject to credit risk. Collateral security enables us to recover all or part of the outstanding exposure by liquidating the collateral asset provided, in cases where the borrower is unable or unwilling to fulfil its primary obligations.

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

a) Financial collateral in the form of pledge of equity shares, units of mutual funds, assignment of life insurance policies;

b) Current assets in the form of inventories meant for sale or receivables arising out of the sale of finished goods;

c) Fixed asset (in the form of immovable properties - real estate, Plant and Machinery, Equipment);

d) Third-party obligation (in the form of irrevocable unconditional guarantee issued by bank, Third party);

e) Risk participation from Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE); and

f) Assignment of borrower''s rights and interests under agreements with third parties.

In addition, the Company also stipulates escrow of cash flows and a Debt Service Reserve Account (DSRA) for specific loans.

Collateral serves to mitigate the inherent risk of credit loss in an exposure, by either improving recoveries in the event of a default or substituting the borrower.

As part of the assessment of a credit transaction the availability, adequacy and suitability of collateral for the transaction is evaluated and decided upon. The Company''s processes include verification of the title to the collateral offered and valuation by technical experts where warranted. The Company accepts as collateral only securities of good quality and have in place legally effective and enforceable documentation.

For guarantee''s taken, the guarantor''s creditworthiness is assessed during the credit assessment process of the transaction. The Company has collateral type specific haircuts in place, which are reviewed at intervals as appropriate to the type of collateral.

The Company recognises that collateral can be a credit mitigant (alternative source of repayment), but does not replace or dilute the underwriting standards the Company adopts to underwrite credit exposures.

(b) Forward-Looking Information

The Company determines impairment allowances based on the Expected Credit Loss (ECL) model under Ind AS, using empirical portfolio performance adjusted for forward-looking macro-economic factors. Provisioning under this approach remains higher than the floor levels prescribed by the RBI for NBFCs. ECL estimation is statistically validated, incorporating historical data, current conditions, and anticipated portfolio performance. It is based on three key components: Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD). The Company''s PD models intrinsically account for macro-economic influences, considering factors such as GDP trends and extraordinary events like demonetisation. With most portfolios having weathered one to two economic cycles, default probabilities reflect upturns, downturns, and stable conditions.

Additionally, the Industry Rating Module, developed with CRISIL, integrates forward-looking indicators—such as demand-supply dynamics, trade factors, and policy changes—enhancing the transition from through-the-cycle to point-in-time risk assessment.

Grouping Financial Assets Measured on a Collective Basis

The Company calculates ECLs either on a collective or an individual basis.

Asset classes where the Company calculates ECL on an individual basis include:

1. Corporate Portfolio

Asset classes where the Company calculates ECL on a collective basis include:

1. Retail Portfolio

The ECL methodology allows for individual assessment for corporates and, therefore, these loans are generally measured individually as each of these exposures have unique characteristics and structuring. For retail exposures and exposures which can be clubbed in homogenous pools, ECL is measured on a collective basis. This has been arrived at based on common characteristics like nature of product, customer profile, etc .

(c) Analysis of Risk Concentration

Concentration analysis are presented for Portfolio Pool, Location, Top Borrower Exposures, Group Exposures, etc., These are regularly analysed and presented for further review/action. Based on the exposures of the Company towards various sectors, analysis is as follows:

(d) Liquidity Risk and Funding Management

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Company might be unable to meet its payment obligations, when they fall due, as a result of mismatches in the timing of the cash flows under both normal and stress circumstances.

The Company manages its liquidity requirement by analysing the maturity pattern of the Company''s cash flows of financial assets and financial liabilities. The Asset-Liability Management of the Company is periodically reviewed by its Asset-Liability Management Committee.

The Company maintains a portfolio of highly marketable and diverse assets that are assumed to be easily liquidated in the event of an unforeseen interruption in cash flow. The Company also has lines of credit that it can access to meet liquidity needs. In accordance with the Company''s policy, the liquidity position is assessed under a variety of scenarios, giving due consideration to stress factors relating to both the market in general and specifically to the Company. Net liquid assets consist of cash. The ratios during the year were as follows:

Borrowings from banks and financial institutions and issue of debentures are considered as important sources of funds to finance lending to customers. They are monitored using the advances to borrowings ratio, which compares loans and advances to customers as a percentage of secured and unsecured borrowings.

Analysis of Financial Liabilities by Remaining Contractual Maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial liabilities:

Money raised by way of borrowing from bank and financial institution have been applied by the Company for the purposes for which they were raised, other than temporary deployment pending application of proceeds.

NOTE: 59 ULTIMATE BENEFICIARY

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

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

NOTE: 60

1) The Company has sold its entire stake of 50.002% in Aditya Birla Insurance Brokers Limited ("ABIBL") to Edme Services Private Limited, part of the Samara Capital Group and an affiliate of Samara Alternate Investment Fund on 30^th August 2024 and, accordingly, ABIBL has ceased to be a Subsidiary of the Company w.e.f. 30^th August 2024. The Company has recognised gain of ? 262.74 crore (Net of Tax, Gain is ? 225.17 crore) during the year ended 31^st March 2025.

2) The Hon''ble NCLT has sanctioned the Scheme, vide order dated 2^nd July 2024 for amalgamation of Aditya Birla Money Insurance Advisory Services Limited ("ABMIASL"), Aditya Birla Money Mart Limited ("ABMML") and Aditya Birla Capital Technology Services Limited ("ABCTSL") with Aditya Birla Financial Shared Services Limited ("ABFSSL"), all wholly owned subsidiaries of the Company. As per the Hon''ble NCLT order, the effective date of the Scheme is 2^nd July 2024 and, accordingly, ABMIASL, ABMML and ABCTSL has ceased to exist.

3) During the year ended 31^st March 2024, the Company had sold 1,39,94,199 Equity Shares of Aditya Birla Sun Life AMC Limited ("ABSLAMC") representing 4.86% of the issued and paid-up equity share capital of ABSLAMC, and recognised gain of ? 635.77 crore (Net of Tax, Gain is ? 566.17 crore).

During the year ended 31^st March 2025, the Company has further sold 3,90,728 Equity Shares of ABSLAMC, representing 0.14% of the issued and paid-up equity share capital of ABSLAMC, and has recognised gain of ? 20.48 crore (Net of Tax, Gain is ? 18.19 crore).

4) The Company during the financial year 2023-24, issued equity share capital through Qualified Institutional Placement of 10,00,00,000 shares to Qualified Institutional Buyers, and through Preferential Issuance of 7,57,11,688 shares to its Promoter and a member of Promoter Group entity, all aggregating to ? 3,000 crore. In accordance with Ind AS 32, the costs, that are attributable directly to the above transaction, have been adjusted against securities premium reserve.

NOTE: 61

The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

NOTE: 62

No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

NOTE: 63

The Company has not defaulted in repayment of principal and interest during the year ended and as at the Balance Sheet date 31^st March 2025.

NOTE: 64

During the year ended 31^st March 2024, the Finance Committee of the Board of Directors of erstwhile ABFL at its Meeting held on 21^st September 2023 approved the Prospectus for the issue of Secured, Redeemable, Non-Convertible Debentures ("NCDs") of the face value of ? 1,000 each for an amount aggregating upto ? 1,000 crore ("Base Issue Size") with an option to retain oversubscription upto ? 1,000 crore ("Green Shoe Option") for an aggregate amount upto ? 2,000 crore ("Issue Size"), which is within the overall limit of ? 5,000 crore. Thereafter, the Company (erstwhile ABFL) has allotted by way of public issue 2,00,00,000 NCDs having face value of ? 1,000 each aggregating upto ? 2,000 crore. The said NCDs were subsequently allotted on 9^th October 2023, and listed on the National Stock Exchange of India Limited and the BSE Limited.

NOTE: 65 BUSINESS COMBINATION

Pursuant to the Scheme of Amalgamation approved by the Hon''ble National Company Law Tribunal (NCLT) under Sections 230-232 of the Companies Act, 2013, erstwhile Aditya Birla Finance Limited ("the ABFL"), then a wholly owned subsidiary of the Company, was amalgamated with the Company ("ABCL") with effect from the Appointed Date, i.e., 1^st April 2024. The Scheme became effective upon filing of the certified order of the NCLT with the Registrar of Companies on 1^st April 2025.

As per the Scheme, all the shares of erstwhile ABFL, which were held by the ABCL (either directly and/or through nominees), has been cancelled. The holders of Non-Convertible Debentures (NCDs) of erstwhile ABFL have become holders of NCDs of ABCL on the same terms and conditions (including same rights, interests and benefits).

The amalgamation has been accounted for as a common control business combination in accordance with Appendix C of Ind AS 103 - Business Combinations, using the pooling of interest method. Accordingly:

a) The assets, liabilities, and reserves of the erstwhile ABFL have been transferred to and vested in the ABCL at their respective carrying values.

b) The Standalone Financial Statements for the year ended 31^st March 2025 include the financials of the erstwhile ABFL for the year ended 31^st March 2025 (merged financial statements).

c) The comparative figures for the year ended 31^st March 2024 have been restated to include the corresponding figures of the erstwhile ABFL for that period after carrying out adjustments with respect to amalgamation.

Further, in accordance with the no objection letter issued by the Reserve Bank of India ("RBI"), while approving the Scheme, the Certificates of Registration held by the erstwhile ABFL as NBFC-ICC and by the Company as NBFC-CIC have been surrendered, and a fresh application for registration of the Company as an NBFC-ICC has been made. Pending the receipt of Registration as NBFC-ICC, the RBI has permitted the Company to operate as an NBFC-ICC.

The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year ended 31^st March 2025.

NOTE: 67

There is no income surrendered/disclosed as income during the current/previous year in the tax assessments under Income-tax Act, 1961, that has not been recorded in the books of account.

NOTE: 68

There are no amounts due and outstanding to be credited to Investor Education and Protection Fund as at 31^st March 2025.

NOTE: 69

The Indian Parliament has approved the Code on Social Security, 2020, which subsumes the Provident Fund and the Gratuity Act and rules thereunder. The Ministry of Labour and Employment has also released draft rules thereunder on 13^th November 2020, and has invited suggestions from stakeholders. The Company will evaluate the rules, assess the impact, if any, and account for the same once the rules are notified and become effective.

NOTE: 70

The Letter of Comfort were issued for availing credit facilities/credit rating by subsidiaries of ? 345 crore, with an explicit clause that it is not in the nature of financial guarantee.

The figures for the current financial year under the disclosure as required in RBI Master Directions represent the figures of the Amalgamated Company from the appointed date 1^st April 2024. The figures/ratios for the previous financial year are the same as disclosed in the previous year audited financial statement of the Company. Hence, figures/ratios for the current year ended, 31^st March 2025 are not comparable with figures, for the previous year ended 31^st March 2024.

1. In computing the above information, certain estimates/assumptions have been made by the Company''s Management, which have been relied upon by the auditors.

2. Unweighted values must be calculated as outstanding balances maturing or callable within 30 days (for inflows and outflows).

3. Weighted values must be calculated after the application of respective haircuts (for HQLA) and stress factors on inflow and outflow.

4. The calculation has been arrived based on average daily computation.

(viii) Qualitative Disclosure

a) The main drivers of their LCR results and the evolution of the contribution of inputs to the LCR''s calculation over time: RBI had introduced the liquidity coverage ratio (LCR) to ensure that NBFC has an adequate stock of unencumbered high-quality liquid assets (HQLA) to survive a significant liquidity stress lasting for a period of 30 days. LCR is defined as a ratio of HQLA to the total net cash outflows estimated for the next 30 calendar days. At 31^st March 2025, the applicable minimum LCR required to be maintained by NBFC is 100%.

The Company has an Asset-Liability Committee ("ALCO"), a management-level committee to handle liquidity risk. The ALCO meets at periodic intervals. At the apex level, the Risk Committee (RC), a sub-committee of the Board of Directors of the Company, oversees the liquidity risk management. The RC subsequently updates the Board of Directors on the same.

b) Intra-period changes as well as changes over time: The details for the four quarters ended 30^th June 2024, 30^th September 2024, 31^st December 2024 and year ended 31^st March 2025 are disclosed in Note No. 72-I(vii).

1. In terms of the requirement as per RBI notification no. RBI/2019-20/170 DOR (NBFC).CC.PD. No.109/22.10.106/2019-20 dated 13^th March 2020 on Implementation of Indian Accounting Standards, Non Banking Finance Companies (NBFCs) are required to create an impairment reserve for any shortfall in impairment allowances under Ind AS 109 and Income Recognition, Asset Classification and Provisioning (IRACP) norms (including provision on standard assets). The impairment allowances under Ind AS 109 made by the corporation exceeds the total provision required under IRACP (including standard asset provisioning), as at 31^st March 2025, and, accordingly, no amount is required to be transferred to impairment reserve.

2. Amounts in NPA that have been classified otherwise than as Stage-3 represent loan assets that were restructured, but have not completed one year of satisfactory performance as at the reporting date.

NOTE: 76 EVENTS AFTER REPORTING DATE

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

NOTE: 77

The figures for previous year have been regrouped/rearranged/recasted, wherever necessary, to conform to current period presentation.

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Mar 31, 2024

2.17 Provisions and Contingent Liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company 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 determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

A present obligation that arises from past events, where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-

occurrence of one or more uncertain future events not wholly within the control of the Company. Claims against the Company, where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

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

2.18 Statement of Cash Flows

Statement of Cash Flows are reported using the indirect method, whereby the net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The Statement of Cash Flows from operating, investing and financing activities of the Company are segregated.

2.19 Earnings Per Share (EPS)

The basic EPS is computed by dividing the profit after tax for the year attributable to the equity shareholders by the weighted-average number of equity shares outstanding during the year.

For the purpose of calculating diluted EPS, profit after tax for the year attributable to the equity shareholders and the weighted-average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

2.20 Significant Accounting Judgements, Estimates and Assumptions

The preparation of financial statements, in conformity, with the Ind AS, requires judgements, estimates and assumptions to be made, that affect the reported amounts of assets and liabilities on the date of the financial statements, the reported amounts of revenues and expenses during the reporting period and the disclosures relating to contingent liabilities as of the date of the financial statements. Although, these estimates are based on the Management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in outcomes different from the estimates. Difference between actual results and estimated is recognised in the period in which the results

are known or materialised. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in the current and future periods.

Judgements

Aditya Birla Capital Limited holds, either directly or through its subsidiaries, more than half of the equity shareholding in the following entities. However, as per the shareholders'' agreement/statute, the Company needs to jointly decide with other shareholders of the respective entity on certain relevant activities.

Hence, the same are being accounted as per equity method of accounting.

a) Aditya Birla Sun Life AMC Limited

b) Aditya Birla Sun Life Trustee Company Private Limited

c) Aditya Birla Wellness Private Limited

Estimates and Assumptions

The key assumptions, concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Useful Lives of Property, Plant and Equipment

The Company uses its technical expertise along with historical and industry trends for determining the economic life of an asset/component of an asset. The useful lives are reviewed by the Management periodically and revised, if appropriate. In case of a revision, the unamortised depreciable amount is charged over the remaining useful life of the assets.

Measurement of Defined Benefits Obligations

The cost of the defined benefits gratuity plan and the present value of the gratuity obligation are determined

using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefits obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Recognition of Deferred Tax Assets

Availability of future taxable profit against which the tax losses carried forward can be used.

Recognition and Measurement of Provisions and Contingencies

Key assumptions about the likelihood and magnitude of an outflow of resources.

Fair Value Measurement of Financial Instruments

When the fair value of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair values are measured using valuation techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable market, where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include consideration of input such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Share-Based Payments

The Company measures the cost of equity-settled transactions with employees using Black-Scholes Model to determine the fair value of the liability incurred on the grant date. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant.

This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield, and making assumptions about them.

Impairment of Financial Assets

The measurement of impairment losses across all categories of financial assets requires judgement, in particular, the estimation of the amount and timing of future cash flows and collateral values when determining impairment losses and the assessment of a significant increase in credit risk. These estimates are driven by a number of factors, changes in which can result in different levels of allowances.

The Company''s ECL calculations are outputs of complex models with a number of underlying assumptions regarding the choice of variable inputs and their inter-dependencies. Elements of the ECL models that are considered accounting judgements and estimates include:

a. The Company''s internal credit grading model, which assigns PDs to the individual grades.

b. The Company''s criteria for assessing, if there has been a significant increase in credit risk, and so,

allowances for financial assets, should be measured on a LTECL basis and the qualitative assessment.

c. The segmentation of financial assets when their ECL is assessed on a collective basis.

d. Development of ECL models, including the various formulas and the choice of inputs.

e. Determination of associations between macroeconomic scenarios and economic inputs, such as unemployment levels and collateral values, and the effect on PDs, EADs and LGDs.

f. Selection of forward-looking macro-economic scenarios and their probability weightings, to derive the economic inputs into the ECL models.

It has been the Company''s policy to regularly review its

models in the context of actual loss experience and adjust,

when necessary.

a) Contingent Liabilities

The Company has issued Corporate Guarantees to National Housing Bank on behalf of its subsidiary Aditya Birla Housing Finance Limited (ABHFL) of '' 3,500 Crore upto 31^st March 2024 (Previous Year '' 3,500 Crore) for ABHFL borrowing, against which the outstanding borrowing in the books of ABHFL as at 31^st March 2024 is '' 1,607.52 Crore (Previous Year '' 2,057.71 Crore). As per the terms of the Guarantee, the Company''s liability is capped at the outstanding amount on invocation.

b) Capital Commitments

i) The Company has '' Nil as commitments towards Property, Plant and Equipment as at 31^st March 2024 (Previous Year '' 0.37 Crore).

ii) Pursuant to the Shareholders'' Agreement entered into with Sun Life Financial (India) Insurance Investments Inc. and its holding Company Sun Life Assurance Company of Canada by Aditya Birla Capital Limited, in respect of Aditya Birla Sun Life Insurance Company Limited (ABSLI), the Company will infuse its share of capital in ABSLI from time to time to meet the solvency requirement, prescribed by the regulatory authority. Transfer of investments in ABSLI is restricted by the terms contained in Shareholders'' Agreements entered into by the Aditya Birla Capital Limited.

iii) Pursuant to the Shareholders'' Agreement entered into with Momentum Metropolitian Strategic Investments (Proprietary) Limited and Platinum Jasmine A 2018 Trust by Aditya Birla Capital Limited, in respect of Aditya Birla Health Insurance Co. Limited (ABHI), the Company will infuse its share of capital in ABHI from time to time to meet the solvency requirement, prescribed by the regulatory authority.

a) Stock Options Scheme 2017

At the Annual General Meeting held on 19^th July 2017, the shareholders of the Company approved the grant of not more than 3,22,86,062 Equity Shares by way of grant of Stock Options ("ESOPs") and Restricted Stock Units ("RSUs"). Out of these, the Nomination, Remuneration and Compensation Committee has granted 2,40,62,864 ESOPs and 57,42,636 RSUs under the Scheme titled "Aditya Birla Capital Limited Employee Stock Options Scheme 2017" in 3 categories of Long-Term Incentive Plans ("LTIP"), identified as LTIP 1, LTIP 2, and LTIP 3. The Scheme allows the Grant of Stock Options to employees of the Company (whether in India or abroad) that meet the eligibility criteria. Each option comprises one underlying Equity Share.

b) Stock Options and Performance Stock Unit Scheme 2022

The shareholders of the Company, vide a special resolution passed through Postal Ballot on 16^th October 2022, approved the Scheme titled "Aditya Birla Capital Limited Employee Stock Options and Performance Stock Unit Scheme 2022" ("ABCL Scheme 2022") for granting Employee Stock Options ("Options") and Employee Performance Stock Units ("PSUs") (collectively referred to as, "the Stock Options") exercisable into not more than 4,10,71,270 Equity Shares. ABCL Scheme 2022 allows the grant of Stock Options to employees of the Company, and its group company(ies) including its Holding Company and Subsidiary Company(ies) and Associate Company(ies) (whether working in India or outside India) that meet the eligibility criteria. Each Stock Option confers a right upon the Grantee to apply for 1 (one) Equity Share. Out of these, the Nomination, Remuneration and Compensation Committee has granted 1,39,54,991 Options and 63,60,714 PSUs under ABCL Scheme 2022.

NOTE: 36 ABCL INCENTIVE PLAN 2017

The Scheme titled as "ABCL Incentive Scheme for Stock Options and Restricted Stock Units - 2017 (ABCL Incentive Scheme)" was approved by the shareholders through postal ballot on 10^th April 2017. The Nomination, Remuneration and Compensation Committee of the Company at its meeting held on 15^th January 2018, granted 14,65,927 ESOPs and 2,52,310 Restricted Stock Units (RSUs) (collectively called as "Stock Options") to the eligible grantees pursuant to the Composite Scheme of Arrangement between erstwhile Aditya Birla Nuvo Limited (now merged with Grasim Industries Limited), Grasim Industries Limited and Aditya Birla Capital Limited. The Stock Options allotted under the Scheme are convertible into equal number of Equity Shares.

The vesting conditions and the vesting dates under the ABCL Incentive Scheme shall follow the same vesting conditions, as applicable, to the Grantees under the corresponding Grasim Employee Benefit Schemes 2006 and 2013.

iii) Funding Arrangement and Policy

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

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

Estimated amount of contribution expected to be paid to the fund during the annual period after the Balance Sheet date is '' 0.87 Crore (Previous Year '' 0.76 Crore).

NOTE: 40 FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUE MEASUREMENTS

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Principles for Estimating Fair Value

The following summarises the major methods and assumptions used in estimating the fair values of financial instruments reflected in the table.

Fair Value Hierarchy

The table below analyses financial instruments carried at fair value, by valuation method at 31^st March 2024. The different levels have been defined as follows:

Level 1: Category includes financial assets and liabilities that are measured in whole or in significant part by reference to published quotes in an active market.

Level 2: Category includes financial assets and liabilities measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions. These include assets and liabilities for which pricing is obtained via pricing services, but where prices have not been determined in an active market, financial assets with fair values based on broker quotes and assets that are valued using the Company''s own valuation models whereby the material assumptions are market observable.

Level 3: Category includes financial assets and liabilities measured using valuation techniques based on non-market observable inputs. This means that fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. However, the fair value measurement objective remains the same, that is, to estimate an exit price from the perspective of the Company. The main asset classes in this category are unlisted equity investments as well as unlisted funds.

NOTES: 41 FINANCIAL RISK MANAGEMENT

The Company, being a Core Investment Company as per Master Directions - Core Investment Companies (Reserve Bank) Directions, 2016, is required to invest or lend majority of its funds to its Subsidiaries, Joint Ventures and Associates. The Company''s principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to support the Company''s operations. The Company''s principal financial assets include Investments, inter-corporate deposits, cash and cash equivalents, bank deposits, and other receivables.

The Company is exposed to certain financial risks, such as equity investment risk, market risk, credit risk and liquidity risk. The Company''s Senior Management oversees the management of these risks. The Company''s Senior Management is supported by a Risk Management Committee that advises on financial risks and the appropriate risk management - framework for the Company. The Risk Management Committee provides assurance to the Company''s Board that the Company''s financial risk activities are governed by appropriate policies, and procedures and that Material risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Material financial risks are summarised below:

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 manages its capital structure, and makes adjustments in light of changes in economic conditions. The Company monitors that as per CIC guidelines, Adjusted Net Worth shall at no point of time be less than 30% of its aggregate risk weighted assets on Balance Sheet and risk adjusted value of off-Balance Sheet items as on the date of the last audited Balance Sheet as at the end of the financial year. Refer Note No. 59 for the disclosures.

Equity Investment Risk

The Company''s investments in listed and 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 by third party valuer, wherever necessary, to identify impairment indicators.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. In the case of the Company, market risk primarily impacts financial instruments measured at fair value through profit or loss. These are primarily unquoted Compulsorily Convertible Preference Shares of subsidiaries and investments in mutual funds, where investments are not significant in relation to the size of its total investments. The fair value change of these investments, if any, are regularly monitored.

Credit Risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or a customer contract, leading to a financial loss. The Company is exposed to credit risk from its financing activities towards inter-corporate deposits to subsidiaries and loans to employees, where no significant impact on credit risk has been identified.

Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by the Senior Management.

The Company manages its liquidity requirement by analysing the maturity pattern of the Company''s cash flows of financial assets and financial liabilities. The Company invests its surplus funds in debt schemes of mutual funds, which carry low mark-to-market risks and fixed deposits which does not carry mark-to-market risks. Also refer Note No. 42 for maturity analysis of assets and liabilities.

Under Aditya Birla Capital Limited Stock Appreciation Rights Scheme 2019, the Company has approved a grant of Nil (Previous Year Nil) Options SARs to the employees of the Company and its subsidiaries.

NOTE: 45

The Company, during the current year, has allotted 63,16,154 (Previous Year 16,82,056) Equity Shares of '' 10 each, fully paid-up, on exercise of options by eligible grantees, in accordance with the Employee Stock Options Schemes approved by the Company.

NOTE: 46

With effect from 11^th October 2017, 6,44,22,405 Global Depositary Shares (GDSs) representing 6,44,22,405 Equity Shares of '' 10 each have been admitted for trading on the Luxembourg Stock Exchange.

As on 31^st March 2024, 5,64,96,331 (GDS) representing 5,64,96,331 Equity Shares are outstanding (Previous Year 5,47,05,589).

NOTE: 47

During the year, the Company issued Equity Share Capital through Qualified Institutional Placement of 10,00,00,000 shares to Qualified Institutional Buyers and through Preferential Issuance of 7,57,11,688 shares to its Promoter and a member of Promoter Group entity, both aggregating to '' 3,000 Crore. In accordance with Ind AS 32, the costs that are attributable directly to the above transaction have been adjusted against securities premium reserve.

The Board of Directors of the Company, at its Meeting held on 11^th March 2024, approved the Scheme of Amalgamation between Aditya Birla Finance Limited ("Amalgamating Company") (a wholly owned subsidiary of the Company) and the Company, their respective shareholders and creditors under Sections 230 to 232 of the Companies Act, 2013, and other applicable provisions of the Companies Act, 2013, read with rules made thereunder ("Scheme"). The Scheme is subject to the sanction of National Company Law Tribunal (NCLT), Ahmedabad Bench, and receipt of necessary approvals from the Reserve Bank of India, Stock Exchanges and Securities and Exchange Board of India, shareholders/creditors, as may be directed by the NCLT and such other regulatory/ statutory authorities, as may be required.

NOTE: 49

During the year, Scheme of Amalgamation of Aditya Birla Money Insurance Advisory Services Limited ("ABMIASL"), Aditya Birla Money Mart Limited ("ABMML") and Aditya Birla Capital Technology Services Limited ("ABCTSL") with Aditya Birla Financial Shared Services Limited ("ABFSSL"), all wholly owned subsidiaries of the Company was filed with Hon''ble National Company Law Tribunal ("NCLT"), Ahmedabad Bench, and the approval from Hon''ble NCLT is awaited.

NOTE: 50

During the year, Aditya Birla Capital Limited had sold 1,39,94,199 Equity Shares of Aditya Birla Sun Life AMC Limited ("ABSLAMC") representing 4.86% of the issued and paid-up Equity Share Capital of the ABSLAMC, by way of an offer for sale through stock exchange mechanism, in order to achieve minimum public shareholding of the ABSLAMC, as required under the applicable laws. Post-completion of offer for sale, the shareholding percentage of Aditya Birla Capital Limited in ABSLAMC stands at 45.14%. The Company has recognised gain amounting to '' 635.77 Crore (Net of tax, gain is '' 566.17 Crore). To achieve the minimum public shareholding in ABSLAMC, the Company is required to further dilute stake of 3,94,463 Equity Shares and has accounted the same as "Assets Held for Sale"

NOTE: 51

The Board of Directors of the Company, at its meeting held on 27^th March 2023, had approved the sale of its entire stake of 50.002% of the issued and paid-up share capital of Aditya Birla Insurance Brokers Limited ("ABIBL") to Edme Services Private Limited, part of the Samara Capital Group and an affiliate of Samara Alternate Investment Fund.

The Proposed Transaction is subject to receipt of the approval of Insurance Regulatory and Development Authority of India ("IRDAI") and other regulatory/statutory approvals and satisfactory compliance of other conditions under the Share Purchase Agreement. Upon completion of the Proposed Transaction, ABIBL shall cease to be a subsidiary of the Company.

NOTE: 52

During the previous year, Aditya Birla Health Insurance Co. Limited ("ABHI") has made a preferential allotment of 5,07,07,454 Equity Shares of '' 10 each to Platinum Jasmine A 2018 Trust, acting through its trustee, Platinum Owl C 2018 RSC Limited, being a wholly owned subsidiary of Abu Dhabi Investment Authority ("ADIA"), on 21^st October 2022 for an aggregate consideration of '' 664.27 Crore. Pursuant to such issuance of the Equity Shares, ADIA owns 9.99% stake in ABHI. W.e.f. 21^st October 2022, ABHI ceased to be a subsidiary, and has been accounted as a Joint Venture.

NOTE: 53

The Company has made an assessment of its value of investments in Equity Shares and 0.001% Compulsory Convertible Cumulative Preference Shares ("CCPS") of Aditya Birla Capital Technology Services Limited ("ABCTSL"). Based on such assessments, an impairment loss on Equity Shares of '' 9.27 Crore and fair value loss on CCPS of '' 14.98 Crore have been provided as on 31^st March 2024.

The Company has a Long-Term Incentive Plan for selective employees. Long-term Incentive Plan is payable to employees on fulfilment of certain criteria laid down by the Company in the plan. On the basis of the plan, the Company has made provision of '' 14.04 Crore (Previous Year '' 4.61 Crore) basis actuarial valuation report obtained.

NOTE: 55

The Company has short-term rating of "[ICRA]A1 " and "CRISIL A1 " and "[ICRA]AAA(stable)" long-term rating from ICRA. During the year, the Company has not borrowed any funds.

NOTE: 56 INVESTMENT PROPERTY FAIR VALUE

The Company has carried out the valuation through Registered Valuer in terms of Companies Act, 2013, to determine the fair value of its Investment Property. As per report provided by Registered Valuer in terms of Companies Act, 2013, the fair value is '' 19.02 Crore as on 31^st March 2024 (Previous Year '' 18.07 Crore).

The fair value of Investment Property has been derived using the Direct Comparison Method based on the recent market prices without any significant adjustments being made to the observable data. Accordingly, fair value estimates for Investment Property is classified as Level 3.

The Company has no restrictions on the realisability of its Investment Property, and has no contractual obligations to purchase, construct or develop Investment Property.

Information regarding Income and Expenditure of Investment Property

NOTE: 60 DISCLOSURE REQUIRED AS PER RBI GUIDELINES/CIRCULARS

(1) Disclosure as Required by RBI Circular RBI/DOR/2023-24/106 DOR.FIN.REC.NO.45/03.10.119/ 2023-24 dated 19^th October 2023 (NBFC-Scale Base Regulation)

a) Group entities that are not consolidated in the CFS - All the entities required by Ind AS are consolidated in ABCL Consolidated Financials as on 31^st March 2024 and 31^st March 2023

b) Refer Annexure 2 to Annexure 10 for disclosure those are applicable and relevant as per above circular.

(2) Disclosure as required under Annexure V of Master Direction - Core Investment Companies (Reserve Bank) Direction, 2016

Annexure V

a) Refer Annexure 11 to Annexure 14 for disclosure applicable as per CIC Master Guidelines and not specifically covered under

RBI CIRCULAR RBI/DOR/2023-24/106 D0R.FIN.REC.N0.45/03.10.119/2023-24 dated 19^th October 2023.

(3) Other Disclosures as per RBI Circulars

a) RBI/DOR/2021-22/86 D0R.STR.REC.51/21.04.048/2021-22 Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 dated 24^th September 2021

b) RBI circular 2020-21/17 D0R.No.BP.BC/4/21.04.048/2020-21

c) RBI circular 2020-21/16 D0R.No.BP.BC/3/21.04.048/2020-21

Being a Core Investment Company, there are no transaction to be reported for the above circulars.

NOTE: 61

The Letter of Comfort and awareness were issued in earlier years for availing credit facilities/credit rating by subsidiaries of '' 410 Crore and '' 200 Crore, respectively, with an explicit clause that it is not in nature of financial guarantee.

NOTE: 62

Amount required to be spent by the Company on Corporate Social Responsibility (CSR) related activities during the year is '' Nil (Previous Year '' Nil) in accordance with the Companies Act, 2013.

NOTE: 63

The Indian Parliament has approved the Code on Social Security, 2020, which subsumes the Provident Fund and the Gratuity Act and rules thereunder. The Ministry of Labour and Employment has also released draft rules thereunder on 13^th November 2020, and has invited suggestions from stakeholders. The Company will evaluate the rules, assess the impact, if any, and account for the same once the rules are notified and become effective.

NOTE: 64 OTHER NOTES

(a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in parties identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any parties (Funding Party) with the understanding that the Company shall whether, directly or indirectly, lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(b) Additional regulatory information pursuant to the requirement of Schedule III of the Companies Act, 2013

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

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(iv) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(v) The Company has not any such transaction which is not recorded in the books of account 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.

(vi) None of the entities in the Company has been declared wilful defaulter by any bank or financial institution or government or any government authority.

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

NOTE: 65 SEGMENT REPORTING

The main business of the Company is Investment activity. Hence, there are no separate reportable segments as per Ind AS 108 on ''Operating Segment''.

In terms of our report attached For and on behalf of the Board of Directors of

For B S R & Co. LLP Aditya Birla Capital Limited

Chartered Accountants

Firm’s Registration No.: 101248W/W-100022

Ashwin Suvarna Vishakha Mulye Arun Kumar Adhikari S. C. Bhargava

Partner Chief Executive Officer Director Director

Membership No.: 109503 (DIN: 00591057) (DIN: 00020021)

Pinky Mehta Amber Gupta

Chief Financial Officer Company Secretary

Mumbai, 13^th May 2024 Mumbai, 13^th May 2024

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Mar 31, 2023

a) Securities Premium: Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

b) Special Reserve: Special Reserve represents reserve created pursuant to the Reserve Bank of India Act, 1934 (“the RBI Act”). In terms of Section 45-IC of the RBI Act, a Non-Banking Finance Company is required to transfer an amount not less than 20 per cent of its net profit to a Reserve Fund, before declaring any dividend. Appropriation from this Reserve Fund is permitted only for the purposes specified by RBI.

c) General Reserve: General Reserve represents vested ESOPs that have lapsed. 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.

d) Capital Reserve: It represents reserve created during demerger from Grasim Industries Limited.

e) Employee Share Options Outstanding: The Company has stock options schemes, under which options to subscribe for the Company’s shares have been granted to certain employees, including key management personnel. The Employee Share Options Outstanding reserve is used to recognise the value of equity-settled share-based payments provided to employees, as part of their remuneration.

NOTE: 32 CONTINGENT LIABILITIES AND COMMITMENTSa) Contingent Liabilities

The Company has issued Corporate Guarantees to National Housing Bank on behalf of its subsidiary Aditya Birla Housing Finance Limited (ABHFL) of '' 3,500 crore up to 31^st March 2023 (Previous Year '' 2,500 crore), against which the amount outstanding in the books of ABHFL as at 31^st March 2023 is '' 2,057.71 crore (Previous Year '' 1,498.73 crore). As per the terms of the Guarantee, the Company’s liability is capped at the outstanding amount on invocation.

b) Capital Commitments

i) The Company has '' 0.37 as commitments towards Property, Plant and Equipment as at 31^st March 2023 (Previous Year '' Nil).

ii) Pursuant to the Shareholders’ Agreement entered into with Sun Life Financial (India) Insurance Investments Inc. and its holding Company Sun Life Assurance Company of Canada by Aditya Birla Capital Limited, in respect of Aditya Birla Sun Life Insurance Company Limited (ABSLI), the Company will infuse its share of capital in ABSLI from time to time to meet the solvency requirement, prescribed by the regulatory authority. Transfer of investments in ABSLI is restricted by the terms contained in Shareholders'' Agreements entered into by the Aditya Birla Capital Limited.

iii) Pursuant to the Shareholders’ Agreement entered into with Momentum Metropolitian Strategic Investments (Proprietary) Limited and Platinum Jasmine A 2018 Trust by Aditya Birla Capital Limited, in respect of Aditya Birla Health Insurance Co. Limited (ABHI), the Company will infuse its share of capital in ABHI from time to time to meet the solvency requirement, prescribed by the regulatory authority.

b) Stock Options and Performance Stock Unit Scheme 2022

The shareholders of the Company, vide a special resolution passed through Postal Ballot on 16^th October 2022, approved the Scheme titled “Aditya Birla Capital Limited Employee Stock Options and Performance Stock Unit Scheme 2022” (“ABCL Scheme 2022”) for granting Employee Stock Options (“Options”) and Employee Performance Stock Units (“PSUs”) (collectively referred to as the (“Stock Options”) exercisable into not more than 41,071,270 Equity Shares. ABCL Scheme 2022 allows the grant of Stock Options to employees of the Company, and its group company(ies), including its Holding Company and Subsidiary Company(ies) and Associate Company(ies) (whether working in India or outside India), that meet the eligibility criteria. Each Stock Option confers a right upon the Grantee to apply for 1 (one) Equity Share. Out of these, the Nomination, Remuneration and Compensation Committee has granted 13,954,991 Options and 6,360,714 PSUs under ABCL Scheme 2022.

NOTE: 36 ABCL INCENTIVE PLAN 2017

The Scheme titled as “ABCL Incentive Scheme for Stock Options and Restricted Stock Units - 2017 (ABCL Incentive Scheme)” was approved by the shareholders through postal ballot on 10^th April 2017. The Nomination, Remuneration and Compensation Committee of the Company, at its meeting held on 15^th January 2018, granted 1,465,927 ESOPs and 252,310 Restricted Stock Units (RSUs) (collectively called as “Stock Options”) to the eligible grantees, pursuant to the Composite Scheme of Arrangement between erstwhile Aditya Birla Nuvo Limited (now merged with Grasim Industries Limited), Grasim Industries Limited and Aditya Birla Capital Limited. The Stock Options allotted under the Scheme are convertible into equal number of Equity Shares.

NOTE: 39 FAIR VALUES

The Management assessed that Fair Values of Financial Assets and Liabilities are approximately their carrying values.

NOTE: 40 FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUE MEASUREMENTS

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Principles for Estimating Fair Value

The following summarises the major methods and assumptions used in estimating the fair values of financial instruments reflected in the table.

Fair Value Hierarchy

The table below analyses financial instruments carried at fair value, by valuation method at 31^st March 2023. The different levels have been defined as follows:

Level 1: Category includes financial assets and liabilities that are measured in whole or in significant part by reference to published quotes in an active market.

Level 2: Category includes financial assets and liabilities measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions. These include assets and liabilities for which pricing is obtained via pricing services, but where prices have not been determined in an active market, financial assets with fair values based on broker quotes and assets that are valued using the Company''s own valuation models whereby the material assumptions are market observable.

Level 3: Category includes financial assets and liabilities measured using valuation techniques based on non-market observable inputs. This means that fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. However, the fair value measurement objective remains the same, that is, to estimate an exit price from the perspective of the Company. The main asset classes in this category are unlisted equity investments as well as unlisted funds.

The carrying amount of trade payables, other financial liabilities, loans, other financial assets, cash and cash equivalents, as at 31^st March 2023 and 31^st March 2022 are considered to the same as fair values, due to their short-term nature. These are classified as Level 3 fair value hierarchy, due to inclusion of unobservable inputs including counterparty credit risk.

During the reporting period ending 31^st March 2023, there were no transfers between Level 1 and Level 2 fair value measurements.

Assumptions to above:

* The Fair Valuation of Preference Shares is based on independent valuers report.

* The Fair Valuation of Unquoted Mutual Funds Units is done based on NAV of units.

NOTE: 41 FINANCIAL RISK MANAGEMENT

The Company, being a Core Investment Company as per the Core Investment Companies (RBI) Directions, 2016, is required to invest or lend majority of its funds to its Subsidiaries, Joint Ventures and Associates. The Company’s principal financial liabilities comprise trade, and other payables. The main purpose of these financial liabilities is to support the Company’s operations. The Company’s principal financial assets include investments, inter-corporate deposits, cash and cash equivalents, and other receivables.

The Company is exposed to certain financial risks, such as equity investment risk, market risk, credit risk and liquidity risk. The Company’s Senior Management oversees the management of these risks. The Company’s Senior Management is supported by a Risk Management Committee, that advises on financial risks and the appropriate financial risk governance framework for the Company. The Risk Management Committee provides assurance to the Company’s Senior Management that the Company’s financial risk activities are governed by appropriate policies, and procedures, and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The major risks are summarised below.

Equity Investment Risk

The Company’s investments in listed and 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.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. In the case of the Company, market risk primarily impacts financial instruments measured at fair value through profit or loss. These are primarily unquoted Compulsorily Convertible Preference Shares of subsidiaries and investments in mutual funds, where investments are not significant in relation to the size of its total investments. The fair value investments of these investments are regularly monitored.

Credit Risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or a customer contract, leading to a financial loss. The Company is exposed to credit risk from its financing activities towards inter-corporate deposits to subsidiaries where no significant impact on credit risk has been identified.

Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company’s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by the Senior Management.

The Company manages its liquidity requirement by analysing the maturity pattern of the Company''s cash flows of financial assets and financial liabilities. The Company invests its surplus funds in debt schemes of mutual funds, which carry low mark-to-market risks. Also refer Note No. 42 for maturity analysis of assets and liabilities.

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial liabilities.

Under Aditya Birla Capital Limited Stock Appreciation Rights Scheme 2019, the Company has approved grant of Nil (Previous Year 59,856) Options SARs to the employees of the Company and its subsidiaries.

NOTE: 45

The Company, during the current year, has allotted 1,682,056 (Previous Year 1,034,008) Equity Shares of '' 10 each, fully paid-up, on exercise of options by eligible grantees, in accordance with the Employee Stock Options Schemes approved by the Company.

NOTE: 46

With effect from 11^th October 2017, 64,422,405 Global Depositary Shares (GDSs) representing 64,422,405 Equity Shares of '' 10 each have been admitted for trading on the Luxembourg Stock Exchange.

As on 31^st March 2023, 54,705,589 (GDS) representing 54,705,589 Equity Shares are outstanding (Previous Year 50,536,762).

NOTE: 47

The Company has made an assessment of its value of investments in Equity Shares and 0.001% Compulsory Convertible Cumulative Preference Shares ("CCPS") of Aditya Birla Capital Technology Services Limited (“ABCTSL”). Based on such assessments and independent valuation report, impairment loss on Equity Shares of '' 3.05 crore and fair value loss on CCPS of '' 12.56 crore have been provided in the previous year.

NOTE: 48

During the year, Aditya Birla Health Insurance Co. Limited (“ABHI”) has made a preferential allotment of 50,707,454 Equity Shares of '' 10 each to Platinum Jasmine A 2018 Trust, acting through its trustee, Platinum Owl C 2018 RSC Limited, being a wholly-owned subsidiary of Abu Dhabi Investment Authority ("ADIA"), on 21^st October 2022 for an aggregate consideration of '' 664.27 crore. Pursuant to such issuance of the equity shares, ADIA owns 9.99% stake in ABHI. W.e.f. 21^st October 2022, ABCL''s share holding in ABHI has reduced from 51% to 45.91%. Consequently, ABHI ceased to be a subsidiary and has been accounted as a joint venture.

NOTE: 49

Board of Directors of the Company, at its meeting held on 27^th March 2023, has approved the sale of its entire stake of 50.002% of the issued and paid-up share capital of Aditya Birla Insurance Brokers Limited to Edme Services Private Limited, part of the Samara Capital Group and an affiliate of Samara Alternate Investment Fund. The Company has filed an application dated 20^th April 2023 with Insurance Regulatory and Development Authority of India (“IRDAI”), seeking approval of the proposed transaction.

The Proposed Transaction is subject to receipt of the approval of Insurance Regulatory and Development Authority of India (“IRDAI”) and other regulatory/statutory approvals and satisfaction of other conditions under the Share Purchase Agreement. Upon completion of the Proposed Transaction, ABIBL shall cease to be a subsidiary of the Company.

NOTE: 50

The ABCAP Trustee Company Private Limited has been struck off from the Register of Companies, and stands dissolved w.e.f. 21^st January 2023.

NOTE: 51

The Company has Long-Term Incentive Plan for selective employees. Long-Term Incentive Plan is payable to employees on fulfilment of criteria prescribed by the Company. On the basis of the plan, the Company has made provision of '' 4.61 crore (Previous Year '' 7 crore).

During the previous year, the Company has sold 2,850,880 Equity Shares of face value of '' 5 each of Aditya Birla Sun Life AMC Limited (ABSLAMC), at '' 712 per Equity Share by way of offer for sale in the Initial Public Offer (IPO) of ABSLAMC, in accordance with the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and recognised gain on sale of these investments amounting to '' 196.12 crore (Net of Tax, Gain is '' 179.47 crore). Consequently, w.e.f. 7^th October 2021 ABSLAMC has ceased to be a Joint Venture and has been accounted as an Associate.

NOTE: 53

The Company has short-term rating, viz., “(ICRA) A1 ” and “(CRISIL) A1 ” (which is the highest short-term rating) and “AAA” long-term rating from ICRA (which is the highest long-term rating). During the year, the Company has not borrowed any funds.

NOTE: 54 INVESTMENT PROPERTY FAIR VALUE

The Company has carried out the valuation through an Independent Valuer to determine the fair value of its Investment Property. As per report provided by Independent Valuer, the fair value is '' 18.07 crore as on 31^st March 2023 (Previous Year '' 19.02 crore).

The fair value of Investment Property has been derived using the Direct Comparison Method based on the recent market prices without any significant adjustments being made observable data. Accordingly, fair value estimates for Investment Property is classified as Level 3.

The Company has no restrictions on the realisability of its Investment Property, and has no contractual obligations to purchase, construct or develop Investment Property.

i) Maturity Pattern of Assets and Liabilities - (Refer Annexure 9)

j) Concentration of NPAs - (Refer Annexure 10)

k) Overseas assets (for those with Joint Ventures and Subsidiaries abroad) - (Refer Annexure 11)

l) Exposure to Real Estate Sector, both direct and indirect - (Refer Annexure 12)

m) Miscellaneous Disclosures - (Refer Annexure 13)

NOTE: 59

The Letter of Comfort and awareness issued for availing credit facilities by subsidiaries of '' 460 crore and '' 200 crore, respectively, with an explicit clause that it is not in the nature of financial guarantee.

NOTE: 60

Amount required to be spent by the Company on Corporate Social Responsibility (CSR) related activities during the year is '' Nil (Previous Year '' Nil), in accordance with the Companies Act, 2013.

NOTE: 61

No fund has been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in parties identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any parties (Funding Party) with the understanding that the Company shall whether, directly or indirectly, lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

NOTE: 62 SEGMENT REPORTING

The main business of the Company is Investment activities. Hence, there are no separate reportable segments as per Ind AS 108 on ‘Operating Segment’.

vi) Institutional Set-up for Liquidity Risk Management

The Board of Directors has the overall responsibility for establishing the risk management framework of the Company. The Board decides the liquidity risk tolerance/limits and, accordingly, lays down strategies, policies and procedures for the management of liquidity risk.

The Company has instituted a Risk Management Committee, which reports to the Boards’, and is responsible for evaluating the overall risks faced by the Company, including liquidity risk.

The Asset-Liability Committee (ALCO) of the Company, consisting of the Company’s Senior Management and Members of the Board, is responsible for ensuring adherence to the risk tolerance/limits as well as implementing the liquidity risk management strategy of the Company.

The Company has also constituted Asset-Liability Management (ALM) Support Group at the execution level, which is responsible for analysing, monitoring and reporting the liquidity risk profile to the ALCO.

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Mar 31, 2022

a) Contingent Liabilities

The Company has issued Corporate Guarantees to National Housing Bank on behalf of its subsidiary Aditya Birla Housing Finance Limited (ABHFL) of '' 2,500 Crore up to 31^st March 2022 (Previous Year '' 500 Crore). The Corporate Guarantees valid as on 31^st March 2022 is '' 1541.76 Crore against which the amount liable by ABHFL is '' 1,498.73 Crore as on 31^st March 2022 (Previous Year '' 225.93 Crore). As per the terms of the Guarantee, on invocation, the Company’s liability is capped at the outstanding amount.

b) Capital Commitments

i) The Company has '' Nil as commitments towards Property, Plant and Equipment as at 31^st March 2022 (Previous Year '' 0.12 Crore).

ii) Pursuant to the Shareholders’ Agreement entered into with Sun Life Financial (India) Insurance Investments Inc. and its holding Company Sun Life Assurance Company of Canada by Aditya Birla Capital Limited, in respect of Aditya Birla Sun Life Insurance Company Limited (ABSLI), the Company agreed to infuse its share of capital in ABSLI from time to time to meet the solvency requirement prescribed by the regulatory authority.

Transfer of investments in ABSLI is restricted by the terms contained in Shareholders'' Agreements entered into by the Aditya Birla Capital Limited.

NOTE: 36 ABCL INCENTIVE PLAN 2017

The Scheme titled as “ABCL Incentive Scheme for Stock Options and Restricted Stock Units - 2017 (ABCL Incentive Scheme)” was approved by the shareholders through postal ballot on 10^th April 2017. The Nomination, Remuneration and Compensation Committee of the Company at its meeting held on 15^th January 2018, granted 1,465,927 ESOPs and 252,310 Restricted Stock Units (RSUs) (collectively called as "Stock Options”) to the eligible grantees, pursuant to the Composite Scheme of Arrangement between erstwhile Aditya Birla Nuvo Limited (now merged with Grasim Industries Limited), Grasim Industries Limited and Aditya Birla Capital Limited (Refer Note No. 33). The Stock Options allotted under the Scheme are convertible into equal number of Equity Shares.

NOTE: 39 FAIR VALUES

The Management assessed that the Fair Values of Financial Assets and Liabilities are approximately their carrying values.

NOTE: 40 FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUE MEASUREMENTS

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Principles for Estimating Fair Value

The following summarises the major methods and assumptions used in estimating the fair values of financial instruments reflected in the table.

Fair Value Hierarchy

The table below analyses financial instruments carried at fair value, by valuation method at 31^st March 2022. The different levels have been defined as follows:

Level 1: Category includes financial assets and liabilities that are measured in whole or in significant part by reference to published quotes in an active market.

Level 2: Category includes financial assets and liabilities measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions. These include assets and liabilities for which pricing is obtained via pricing services, but where prices have not been determined in an active market, financial assets with fair values based on broker quotes and assets that are valued using the Company''s own valuation models, whereby the material assumptions are market observable.

Level 3: Category includes financial assets and liabilities measured using valuation techniques based on non-market observable inputs. This means that fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. However, the fair value measurement objective remains the same, that is, to estimate an exit price from the perspective of the Company. The main asset classes in this category are unlisted equity investments as well as unlisted funds.

The carrying amount of trade receivables, trade payables, other financial liabilities, loans, other financial assets, cash and cash equivalents as at 31^st March 2022 and 31^st March 2021, are considered to the same as fair values, due to their short-term nature. These are classified as Level 3 fair value hierarchy due to inclusion of unobservable inputs including counterparty credit risk.

During the reporting period ending 31^st March 2022, there were no transfers between Level 1 and Level 2 fair value measurements.

Assumptions to above:

* The Fair Valuation of Preference Shares is based on independent valuers report.

* The Fair Valuation of Unquoted Mutual Funds’ Units is done based on NAV of units.

NOTE: 41 FINANCIAL RISK MANAGEMENT

The Company, being a Core Investment Company as per the Core Investment Companies (RBI) Directions, 2016, is required to invest or lend majority of its funds to its Subsidiaries and Joint Ventures. The Company’s principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to support the Company’s operations. The Company’s principal financial assets include investments, inter-corporate deposits, loans, cash and cash equivalents, and other receivables.

The Company is exposed to certain financial risks, such as market risk, credit risk, liquidity risk and equity investment risk. The Company’s Senior Management oversees the management of these risks. The Company’s Senior Management is supported by a Risk Management Committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The Risk Management Committee provides assurance to the Company’s Senior Management that the Company’s financial risk activities are governed by appropriate policies and procedures, and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The major risks are summarised below:

Equity Investment Risk

The Company’s investments in listed and 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.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. In the case of the Company, market risk primarily impacts financial instruments measured at fair value through profit or loss. These are primarily unquoted Compulsorily Convertible Preference Shares of subsidiaries and investments in mutual funds, and other alternate funds where investments are not significant in relation to the size of its total investments. The fair value investments of these investments are regularly monitored.

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 does not have exposure to the risk of changes in market interest rate as it has no borrowings.

Credit Risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or a customer contract, leading to a financial loss. The Company is exposed to credit risk from its financing activities towards inter-corporate deposits to subsidiaries where no significant impact on credit risk has been identified.

Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company’s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by the Senior Management.

The Company manages its liquidity requirement by analysing the maturity pattern of the Company''s cash flows of financial assets and financial liabilities. The Company invests its surplus funds in debt schemes of mutual funds, which carry low mark-to-market risks. Also refer Note No. 42 for maturity analysis of assets and liabilities.

NOTE: 43 IMPAIRMENT ON FINANCIAL INSTRUMENTSBackground of Expected Credit Loss

Expected Credit Loss is a calculation of the present value of the amount expected to be lost on a financial asset, for financial reporting purposes. Credit risk is the potential that the obligor and counterparty will fail to meet its financial obligations to the lender. This requires an effective assessment and management of the credit risk at both individual and portfolio level.

The key components of Credit Risk Assessment are:

1. Probability of Default (PD): represents the likelihood of default over a defined time horizon.

2. Exposure at Default (EAD): represents how much the obligor is likely to be borrowing at the time of default.

3. Loss Given Default (LGD): represents the proportion of EAD that is likely to be lost post-default.

The definition of default is taken as 90 days past due for all retail and corporate loans.

Delinquency buckets have been considered as the basis for the staging of all loans in the following manner:

0-30 days past due loans classified as Stage 1;

More than 30-90 days past due loans classified as Stage 2;

Above 90 days past due loans classified as Stage 3.

The ECL is computed as a product of PD, LGD and EAD.

NOTE: 44 DETAILS OF DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES AS PER MSMED ACT, 2006

Based on the information received by the Company from “suppliers”, regarding their status under the Micro, Small and Medium

Enterprises Development Act, 2006, there are no amounts due to any suppliers covered under this Act as at the Balance Sheet

Date and, hence, disclosures relating to amounts unpaid as at the year end together with interest paid/payable as required

under the said Act have not been given.

NOTE: 45 Under Aditya Birla Capital Limited Stock Appreciation Rights Scheme 2019, the Company has approved grant of Nil (Previous Year 4,356) RSU Stock Appreciation Rights (SARs) and 59,856 (Previous Year 83,592) Options SARs to the employees of the Company and its subsidiaries.

NOTE: 46 The Company, during the current year, has allotted 1,034,008 (Previous Year 1,517,270) Equity Shares of '' 10 each, fully paid-up, on exercise of options by eligible grantees, in accordance with the Employee Stock Options Schemes approved by the Company.

NOTE: 47 With effect from 11^th October 2017, 64,422,405 Global Depositary Shares (GDSs) representing 64,422,405 Equity Shares of '' 10 each have been admitted for trading on the Luxembourg Stock Exchange.

As on 31^st March 2022, 50,536,762 (GDS) representing 50,536,762 Equity Shares are outstanding (Previous Year 50,536,762).

NOTE: 48 The Company has made an assessment of its value of investments in Equity Shares and 0.001% Compulsory Convertible Cumulative Preference Shares ("CCPS") of Aditya Birla Capital Technology Services Limited (“ABCTSL”). Based on such assessments and independent valuation report, value of Equity Shares and CCPS is assessed at '' 3.22 Crore and '' 2.42 Crore, respectively, and accordingly additional impairment loss on Equity Shares of '' 3.05 Crore and fair value loss on CCPS of '' 12.56 Crore have been provided.

The ABCAP Trustee Company Private Limited is under process of strike off, and accordingly impairment loss on Equity Shares of '' 0.05 Crore has been provided.

NOTE: 49 The Company has sold 2,850,880 Equity Shares of face value of '' 5 each, of Aditya Birla Sun Life AMC Limited (ABSLAMC), at '' 712 per Equity Share by way of offer for sale in the Initial Public Offer (IPO) of ABSLAMC in accordance with the relevant provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and recognised gain on sale of these investments amounting to '' 196.12 Crore (Net of Tax, Gain is '' 179.47 Crore). Consequently, w.e.f. 7^th October 2021, ABSLAMC has ceased to be a Joint Venture and has been accounted as an Associate.

NOTE: 50 During the year, the Company received '' 57.75 Crore for redemption of 0.01% Redeemable Non-Convertible Cumulative Preference Shares ("RNCCPS") of Aditya Birla Money Limited as per agreed terms.

NOTE: 51 The Company has Long-Term Incentive Plan for selective employees. Long-Term Incentive Plan includes future encashment or availment, at the option of the employee and subject to the rules framed by the Company, which are expected to be availed or encashed beyond 12 months from the end of the year, and long-term incentive payable to employees on fulfilment of criteria prescribed by the Company. On the basis of the plan, the Company has made provision of '' 7 Crore (Previous Year '' 18 Crore).

NOTE: 52 The Company has short-term rating, viz, “(ICRA) A1 ”, “(CRISIL) A1 ” and “AAA” long-term rating from ICRA (which is the highest long-term rating) and, therefore, high acceptability in the market. During the year, the Company has not borrowed any funds.

NOTE: 53 INVESTMENT PROPERTY FAIR VALUE

The Company has carried out the valuation through an Independent Valuer to determine the fair value of its Investment Properties. As per report provided by the Independent Valuer, the fair value is '' 19.02 Crore as on 31^st March 2022 (Previous Year '' 16.65 Crore).

The fair value of Investment Property has been derived using the Direct Comparison Method based on the recent market prices without any significant adjustments being made observable data. Accordingly, fair value estimates for Investment Property is classified as Level 3.

The Company has no restrictions on the realisability of its Investment Property and has no contractual obligations to purchase, construct or develop Investment Property.

Information regarding Income and Expenditure of Investment Property

NOTE: 55 The Company has a process whereby periodically all long-term contracts are assessed for material foreseeable losses. At the year end, the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses need to be provided as required under any law/accounting standards.

NOTE: 58 The Letter of Comfort and awareness issued for availing credit facilities by subsidiaries of '' 310 Crore and '' 200 Crore, respectively, with an explicit clause that it is not in the nature of financial guarantee.

NOTE: 59 Amount required to be spent by the Company on Corporate Social Responsibility (CSR) related activities during the year is '' Nil (Previous Year '' Nil) in accordance with Companies Act, 2013.

NOTE: 60 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in parties identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any parties (Funding Party) with the understanding that the Company shall whether, directly or indirectly, lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

NOTE: 61 SEGMENT REPORTING

The main business of the Company is Investment activity, hence, there are no separate reportable segments as per Ind AS 108 on ‘Operating Segment’.

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Mar 31, 2021

a) Contingent Liabilities

The Company has issued Corporate Guarantees to National Housing Bank on behalf of its subsidiary Aditya Birla Housing Finance Limited (ABHFL) of '' 500 Crore against which the amount liable by ABHFL is '' 225.93 Crore as on 31^st March 2021 (Previous Year '' 303.05 Crore). As per the terms of the Guarantee, on invocation, the Company’s liability is capped at the outstanding amount.

b) Capital Commitments

i) The Company has '' 0.12 Crore as at 31^st March 2021 (Previous Year '' NIL), as commitments towards Property, Plant and Equipment.

ii) Pursuant to the Shareholders’ Agreement entered into with Sun Life Financial (India) Insurance Investments Inc. and its holding company Sun Life Assurance Company of Canada by Aditya Birla Capital Limited, in respect of Aditya Birla Sun Life Insurance Company Limited (ABSLI), the Company agreed to infuse share of capital in ABSLI from time to time to meet the solvency requirement prescribed by the regulatory authority.

Transfer of investments in Aditya Birla Sun Life Insurance Company Limited is restricted by the terms contained in Shareholders'' Agreements entered into by the Aditya Birla Capital Limited.

NOTE: 31 LEASES

During the previous year, the Company adopted Ind AS 116 “Leases” and applied the standard to all lease contracts existing on 1^st April 2019, using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Consequently, the Company recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the right-of-use-asset at its carrying amount, as if the standard had been applied since the commencement date of the lease, but discounted at the lessee’s incremental borrowing rate at the date of initial application.

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

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

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

The weighted-average incremental borrowing rate applied to lease liabilities as at 1^st April 2019, is 8.26%.

Critical accounting judgements and key sources of estimation uncertainty

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

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

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

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

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

• Establishing whether there are multiple leases in an arrangement; and

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

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

• Estimation of the lease term;

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

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

The Scheme titled as “ABCL Incentive Scheme for Stock Options and Restricted Stock Units - 2017 (ABCL Incentive Scheme)” was approved by the shareholders through postal ballot on 10^th April 2017. The Nomination, Remuneration and Compensation Committee of the Company at its meeting, held on 15^th January 2018, granted 1,465,927 ESOPs and 252,310 Restricted Stock Units (RSUs) (collectively called as "Stock Options”) to the eligible grantees pursuant to the Composite Scheme of Arrangement between erstwhile Aditya Birla Nuvo Limited (now merged with Grasim Industries Limited), Grasim Industries Limited and Aditya Birla Capital Limited (Refer Note No. 33). Out of the above, the Company has granted 195,040 ESOPs and 45,060 RSUs under this Scheme to a Director of the Company. The Stock Options allotted under the Scheme are convertible into equal number of Equity Shares.

The vesting conditions and the vesting dates under the ABCL Incentive Scheme shall follow the same vesting conditions, as applicable to the Grantees under the corresponding Grasim Employee Benefit Schemes 2006 and 2013.

iii) Funding Arrangement and Policies

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

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

Estimated amount of contribution expected to be paid to the fund during the annual period being after the Balance Sheet date is '' 1.29 Crore (Previous Year '' 3.57 Crore).

Principles for Estimating Fair Value

The following summarises the major methods and assumptions used in estimating the fair values of financial instruments reflected in the table.

Fair Value Hierarchy

The table below analyses financial instruments carried at fair value, by valuation method at 31^st March 2021. The different levels have been defined as follows:

Level 1: Category includes financial assets and liabilities that are measured in whole or in significant part by reference to published quotes in an active market.

Level 2: Category includes financial assets and liabilities measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions. These include assets and liabilities for which pricing is obtained via pricing services, but where prices have not been determined in an active market, financial assets with fair values based on broker quotes and assets that are valued using the Company''s own valuation models whereby the material assumptions are market observable. The majority of the Company’s over-the-counter derivatives and several other instruments not traded in active markets fall within this category.

Level 3: Category includes financial assets and liabilities measured using valuation techniques based on non-market observable inputs. This means that fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument

The Company, being a Core Investment Company as per the Core Investment Companies (RBI) Directions 2016, is required to invest or lend majority of its funds to its Subsidiaries and Joint Ventures. The Company’s principal financial liabilities comprise borrowings, and trade and other payables. The main purpose of these financial liabilities is to finance and support the Company’s operations. The Company’s principal financial assets include inter-corporate deposits, loans, cash and cash equivalents, and other receivables.

The Company is exposed to certain financial risks, such as market risk, credit risk, liquidity risk and equity investment risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by a Risk Management Committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The Risk Committee provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures, and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The major risks are summarised below:

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. In the case of the Company, market risk primarily impacts financial instruments measured at fair value through profit or loss. These are primarily unquoted Compulsorily Convertible Preference Shares of subsidiaries, and investments in mutual funds and other alternate funds where investments are not significant in relation to the size of its total investments. The fair value investments of these investments are regularly monitored.

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 does not have exposure to the risk of changes in market interest rate as it has debt obligations with fixed interest rates, which are measured at amortised cost.

Credit Risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or a customer contract, leading to a financial loss. The Company is exposed to credit risk from its financing activities towards inter-corporate deposits to subsidiaries where no significant impact on credit risk has been identified.

Equity Investment Risk

The Company’s investments in listed and 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.

Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company’s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by the senior management.

The Company manages its liquidity requirement by analysing the maturity pattern of the Company''s cash flows of financial assets and financial liabilities. The Company’s objective is to maintain a balance between continuity of funding and flexibility through issuance of equity shares, commercial papers, etc. The Company invests its surplus funds in debt schemes of mutual funds, which carry low mark-to-market risks. Also Refer Note No. 40 for maturity analysis of assets and liabilities.

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial liabilities.

Background of Expected Credit Loss

Expected credit loss is a calculation of the present value of the amount expected to be lost on a financial asset, for financial reporting purposes. Credit risk is the potential that the obligor and counterparty will fail to meet its financial obligations to the lender. This requires an effective assessment and management of the credit risk, at both individual and portfolio level.

The key components of Credit Risk Assessment are:

1. Probability of Default (PD): represents the likelihood of default over a defined time horizon.

2. Exposure at Default (EAD): represents how much the obligor is likely to be borrowing at the time of default.

3. Loss Given Default (LGD): represents the proportion of EAD that is likely to be lost post-default.

The definition of default is taken as 90 days past due for all retail and corporate loans.

Delinquency buckets have been considered as the basis for the staging of all loans in the following manner:

• 0-30 days past due loans classified as Stage 1;

• More than 30 - 90 days past due loans classified as Stage 2; and

• Above 90 days past due loans classified as Stage 3.

EAD is the total amount outstanding including accrued interest as on the reporting date.

The ECL is computed as a product of PD, LGD and EAD.

Non-Individual Loans 1.1 Credit Quality of Assets

The non-individual/corporate book is assessed at the loan type level and the provisioning is done at an account level. In certain cases, the assessment is done at an account level based on past experience for future cash flows from the project.

The 12-month PD has been applied on Stage 1 loans. The PD term structure, i.e., Lifetime PD has been applied on Stage 2 loans according to the repayment schedule for Stage 2 loans, and PD is considered to be 1 for Stage 3 loans.

DETAILS OF DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES AS PER MSMED ACT, 2006

Based on the information received by the Company from “suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to any suppliers covered under this Act as at the Balance Sheet Date and, hence, disclosures relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given. Auditors have relied on this.

The Company has approved the grant of 24,062,864 Employee Stock Options (ESOPs) and 5,742,636 Restricted Stock Units (RSUs) in accordance with the Employee Stock Options Scheme, 2017, to its employees and employees of subsidiary companies.

Further, in continuation to the existing Scheme, the Company additionally grant NIL (Previous Year 2,107,868) RSUs and ESOPs NIL (Previous Year 531,496) to the employees of subsidiary companies.

Further, pursuant to ABCL Incentive Scheme and ABCL ESOP 2017, the Company has approved Re-grant of 25,585 Stock options (ESOPs) and 250,863 Stock options (ESOPs), respectively.

During the year, under Aditya Birla Capital Limited Stock Appreciation Rights Scheme 2019, the Company has approved grant of 4,356 RSU Stock Appreciation Rights (SARs) and 83,592 Options SARs to the employees of the Company and its subsidiaries.

The Company, during the current year, has allotted 1,517,270 (Previous Year 2,356,345) Equity Shares of '' 10 each, fully paid-up, on exercise of options by eligible grantees, in accordance with the Employee Stock Options Schemes approved by the Company.

During the previous year, the Company has issued and allotted 210,000,000 Equity Shares of '' 10 each at a premium of '' 90 per Share on preferential basis, which were subscribed by Jomei Investments Limited, promoter Grasim Industries Limited, members of the promoter group and PI Opportunities Fund-I.

With effect from 11^th October 2017, 64,422,405 Global Depositary Shares (GDSs) representing 64,422,405 Equity Shares of '' 10 each have been admitted for trading on the Luxembourg Stock Exchange.

As on 31^st March 2021, 50,536,762 (GDS) representing 50,536,762 Equity Shares are outstanding (Previous Year 50,557,062).

SCHEME OF ARRANGEMENT BETWEEN SUBSIDIARY COMPANIES

During the previous year, the Hon’ble National Company Law Tribunal (NCLT) has approved the Scheme, vide order dated 13^th December 2019, and upon filing of the Scheme with Registrar of Companies, whereby the transaction business of Aditya Birla Technology Services Limited (Formerly known as Aditya Birla MyUniverse

Limited ("ABMU")), a subsidiary of the Company, was demerged and transferred to Aditya Birla Finance Limited (ABFL), also a subsidiary of the Company. The Scheme of Arrangement was made effective on 1^st January 2020.

In consideration of the demerger,

The Company has received 5,855,625 Equity Shares of '' 10 each of ABFL as per the share entitlement ratio determined based on an independent valuation report at 24 Equity Shares of '' 10 each in ABFL for every 215 Equity Shares of '' 10 each held in ABMU and 43 Equity Shares of '' 10 each in ABFL for every 105 (0.001% Compulsorily Convertible Preference Shares) of '' 10 each held in ABMU.

Further, out of the Inter-Corporate Deposits (ICD) receivable as on 1^st January 2020, of '' 100.51 Crore from ABMU, '' 87.54 Crore has been transferred to ABFL (in proportion to the value of assets transferred by ABMU to ABFL) and balance '' 12.97 Crore is shown as receivable from ABMU.

The carrying value of the investments in ABMU '' 149.02 Crore (net of impairment of '' 21.01 Crore) is considered to be at fair value of asset given up for Equity Shares received from ABFL.

The Company has made an assessment of its value of investments in Equity Shares and 0.001% Compulsory Convertible Cumulative Preference Shares ("CCPS") of Aditya Birla Capital Technology Services Limited (Formerly known as Aditya Birla MyUniverse Limited) (“ABCTSL”) of '' 6.27 Crore (net of impairment of '' 3.00 Crore) (Previous Year '' 6.27 Crore (net of impairment of '' 3.00 Crore)) and '' 14.98 Crore (Previous Year '' 14.98 Crore), respectively. Based on such assessments, the Board approved business plan and independent valuation report, no additional impairment loss needs to provide.

During the year, the Company has made an assessment of its value of investments in Aditya Birla Money Limited. Based on such assessments, the Board approved business plan and independent valuation report, no additional impairment loss needs to provide.

During the previous year, the Company has made a provision as impairment loss of '' 29.17 Crore. An amount of '' 41.59 Crore (Previous Year '' 41.59 Crore) as on 31^st March 2021.

During the year, basis the agreed terms, the Company''s investment in 0.1% Compulsory Convertible Debentures ("CCD") of Aditya Birla Money Mart Limited (“ABMML”) got converted into 0.1% Redeemable Non-Convertible Non-Cumulative Preference Shares ("RNCNCPS"), i.e., each CCD converted into 1 (one) RNCNCPS of '' 100 each at a premium of '' 54 per RNCNCPS. The value post-conversion of RNCNCPS is '' 40.10 Crore (Previous Year (CCD) '' 36.79 Crore).

During the year, the Company received '' 0.15 Crore for redemption of 0.01% Redeemable Non-Convertible Cumulative Preference Shares ("RNCCPS") of Aditya Birla Money Mart Limited as per agreed terms, 100,000 RNCCPS at '' 15 per Share (Face Value '' 10/- per Share and '' 5 premium per Share).

During the year, the 0.1% Compulsory Convertible Debentures ("CCD") of Aditya Birla Finance Limited ("ABFL'') got converted into Equal No. of 0.1% Non-Convertible Debenture ("NCD") and redeemed on 20^th March 2021, accordingly, the Company received an amount of '' 36.95 Crore as redemption proceed.

The Company has Long-Term Incentive Plan for selective employees. Long-Term Incentive Plan includes future encashment or availment, at the option of the employee, subject to the rules framed by the Company, which are expected to be availed or encashed beyond 12 months from the end of the year, and long-term incentive payable to employees on fulfilment of criteria prescribed by the Company. On the basis of the scheme, the Company has made provision of '' 18 Crore (Previous Year '' 16 Crore).

The Company has short-term rating, viz., “(ICRA) A1 ” and “(CRISIL) A1 ” and “AAA” long-term rating from ICRA (which is the highest long-term rating) and, therefore, high acceptability in the market. During the year, the Company has not borrowed any funds.

INVESTMENT PROPERTIES FAIR VALUE

The Company has carried out the valuation activity through the Independent Valuer to assess fair value of its Investment Properties. As per the report provided by Independent Valuer the fair value is '' 16.65 Crore as on 31^st March 2021 (Previous Year valuation was not carried out due to COVID-19 and lockdown situation).

The fair value of Investment Properties has been derived using the Direct Comparison Method based on recent market prices without any significant adjustments being made observable data. Accordingly, fair value estimates for Investment Properties is classified as Level 3.

The Company has no restrictions on the realisability of its Investment Properties, and has no contractual obligations to purchase, construct or develop Investment Properties.

The Company has reviewed all litigations and proceedings, and has adequately provided for where provisions are required and disclosed the contingent liabilities, where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statements and appropriate disclosure for contingent liabilities is given, Refer Note No. 30.

INCOME TAX DISCLOSURE

The Major Components of Income Tax Expenses for the years ended 31^st March 2021 and 31^st March 2020 are:

The Company has a process whereby periodically all long-term contracts are assessed for material foreseeable losses. At the year end, the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses need to be provided as required under any law/accounting standards.

DISCLOSURE AS REQUIRED UNDER ANNEXURE II AND ANNEXURE V OF MASTER DIRECTION-CORE INVESTMENT COMPANIES (RESERVE BANK), DIRECTION, 2016

Annexure II - Schedule to the Balance Sheet of a non-deposit taking Core Investment Company - (Refer Annexure 2).

Annexure V

a) Group entities that are not consolidated in the CFS - All the entities required by Ind AS are consolidated in ABCL Consolidated Financials as on 31^st March 2021 and 31^st March 2020

b) Investment in other CICs - Nil as on 31^st March 2021

c) Provisions as per CIC guidelines and others - (Refer Annexure 3)

d) Components of Adjusted Net Worth ("ANW") and other related information - (Refer Annexure 4)

e) Off Balance Sheet Exposure - (Refer Annexure 5)

f) Investments - (Refer Annexure 6)

g) Business Ratios - (Refer Annexure 7)

h) Public Disclosure on Liquidity Risk - (Refer Annexure 8)

i) Maturity Pattern of Assets and Liabilities - (Refer Annexure 9)

j) Concentration of NPAs - (Refer Annexure 10)

k) Overseas Assets (for those with Joint Ventures and Subsidiaries abroad) - (Refer Annexure 11)

l) Exposure to Real Estate Sector, both direct and indirect - (Refer Annexure 12)

m) Miscellaneous Disclosures - (Refer Annexure 13)

The Company has executed the Corporate Guarantee to National Housing Bank on behalf of its subsidiary Aditya Birla Housing Finance Limited (ABHFL) of '' 2,000 Crore, dated 9^th April 2021, which is an addition to earlier Corporate Guarantee issued of '' 500 Crore (Refer Note No 30 (a)).

The Letter of Comfort and awareness issued for availing credit facilities by subsidiaries of '' 310 Crore and '' 200 Crore, respectively, with an explicit clause that it is not in nature of financial guarantee.

ESTIMATION UNCERTAINTY RELATING TO THE GLOBAL HEALTH PANDEMIC ON COVID-19

The Management has assessed the potential impact of the COVID-19 on the financial statements of the Company. In assessing the carrying value of its assets, the Company has considered internal and certain external information up to the date of approval of these financial statements including economic forecasts. The Company expects to recover the carrying amount of these assets. The Company will keep monitoring any future material changes due to the global health pandemic in estimates as at the date of approval of these financial statements.

SEGMENT REPORTING

The main business of the Company is Investment Activities, hence, there are no separate reportable segments as per Ind AS 108 on ‘Operating Segment’.

vi) Institutional set-up for liquidity risk management

The Board of Directors has the overall responsibility for establishing the risk management framework of the Company. The Board decides the liquidity risk tolerance/limits, and accordingly lays down strategies, policies and procedures for the management of liquidity risk.

The Company has instituted a Risk Management Committee, which reports to the Board, and is responsible for evaluating the overall risks faced by the Company, including liquidity risk.

The Asset-Liability Committee (ALCO) of the Company, consisting of the Company’s senior management and Members of the Board, is responsible for ensuring adherence to the risk tolerance/limits as well as implementing the liquidity risk management strategy of the Company.

The Company has also constituted Asset-Liability Management (ALM) Support Group at the execution level, which is responsible for analysing, monitoring and reporting the liquidity risk profile to the ALCO.

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Mar 31, 2019

Note:

1. Aggregate Amount of Quoted Investment Rs,235.88 Crore (31st March, 2018 Rs,235.88 Crore and 1st April, 2017 Rs,235.88 Crore) Market Value of Rs,195.91 Crore (31st March, 2018 Rs,208.58 Crore and 1st April, 2017 Rs,131.09 Crore).

2. Aggregate Book Value of Unquoted Investment '' 8,473.30 Crore (31st March, 2018 '' 7,687.24 Crore; 1st April, 2017 '' 4,906.34 Crore).

3. Aggregate Amount of Diminution in Value of Investment Rs,36.65 Crore (31st March, 2018 Rs,12.64 Crore; 1st April, 2017 Rs,12.64 Crore).

4. All above investments are in India itself.

2. Term/Right Attached to Equity Shares

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

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

* During the previous year Pursuant to the Composite Scheme of Arrangement (the “Scheme”) amongst the erstwhile Aditya Birla Nuvo Limited (ABNL), Grasim Industries Limited (Grasim) and the Company 920,266,951 equity shares of Rs,10 each were issued to Grasim as fully paid up in exchange of the assets of the Financial Services Business.

4. Reclassification of Authorized Share Capital

During the previous year the Company had reclassified its Authorized Share Capital. The revised structure comprise of 4,000,000,000 Equity shares of Rs,10 each.

5. During the last five years there were no Bonus Shares were issued.

6. The shares reserved for issue under Employee Stock Option Plan (ESOP) of the Company (Refer Note No. 33 & 34).

29 Deferred Tax Liabilities/Assets

The Company has not recognized deferred tax assets on brought forward business losses, capital losses, unabsorbed depreciation and other deductible timing differences (net of future taxable capital gains) aggregating to '' 43.75 Crore (Rs,28.78 Crore as at 31st March, 2018; '' NIL as at 1st April, 2017) since there is no certainty that future taxable profits against which such losses can be utilized would be available.

A Deferred tax liability on mark to mark gain on investment in private equity funds of Rs,14 Crore as at 1st April, 2017 has not been recognized since the investments made by the private equity fund are diversified in short-term and long-term investments. These investments will carry different rates of income tax/exemptions at the time of exits.

30 Contingent Liabilities and Commitments

a) Contingent Liabilities

Aditya Birla MyUniverse Limited (formerly known as Aditya Birla Customer Services Limited) (ABMU), a subsidiary of the Company, has issued 0.001%-Compulsorily Convertible Preference Shares (CCPS) aggregating to Rs,60 Crore to International Finance Corporation (IFC) vide Shareholders'' Agreement, dated 19th December, 2014, and Subscription Agreement dated 19th December, 2014 (SHA). Under the said SHA, the Company has granted to IFC an option to sell the shares to the Company at fair valuation from the period beginning on the expiry of 60 months of the subscription by IFC up to a maximum of 120 months from the date of subscription by IFC, in the event ABMU fails to provide an opportunity to IFC to exit from ABMU within 60 months from the date of subscription by IFC in the form of Listing, secondary sale or acquisition, etc. In the event ABMU fails to fulfill its obligation, the Company will be obligated to fulfill this obligation.

b) Capital Commitments

i) There is no capital commitment ('' Nil as at 31st March, 2018; Rs,1.02 Crore as at 1st April, 2017) towards Intangible Assets under Development for Digital/Technology related projects.

ii) The Company has Rs,2.00 Crore commitments towards Equity Participation in any new formed Subsidiary Aditya Birla Capital Investments Private Limited.

The Company has '' NIL as at 31st March, 2018 as commitments towards Equity Participation and

The Company has Rs,2.00 Crore as at 1st April, 2017 as commitments towards Equity Participation in Aditya Birla ARC Limited.

iii) Pursuant to the Shareholders'' Agreement entered into with Sun Life of Canada by Aditya Birla Capital Limited, in respect of Aditya Birla Sun Life Insurance Company Limited, the Company agreed to infuse its share of capital from time to time to meet the solvency requirement prescribed by the regulatory authority.

Transfer of investments in Aditya Birla Sun Life Insurance Company Ltd., is restricted by the terms contained in Shareholder Agreements entered into by the Company.

31 Leases

The Company has entered into operating lease related to office premises and employee housing accommodation facility provided. The security deposits has been recognized at fair value as per Ind AS 109, at initial recognition the carrying value of the rent deposit is the present value of all expected future principal repayments discounted using market rates prevailing at the time of origination.

34 ABCL Incentive Plan 2017

The Scheme titled as “ABCL Incentive Scheme for Stock Options and Restricted Stock Units - 2017 (ABCL Incentive Scheme)” was approved by the shareholders through postal ballot on 10th April, 2017. The Nomination, Remuneration and Compensation Committee of the Company at their meeting held on 15th January, 2018, granted 1,465,927 ESOPs and 252,310 Restricted Stock Units (RSUs) (Collectively called as “Stock Options”) to the eligible grantees pursuant to the Composite Scheme of Arrangement between erstwhile Aditya Birla Nuvo Limited (now merged with Grasim Industries Limited), Grasim Industries Limited and Aditya Birla Capital Limited (formerly known as Aditya Birla Financial Services Limited). Out of the above, the Company; has granted 195,040 ESOPs and 45,060 RSUs under this Scheme to a Director of the Company. The Stock Options allotted under the Scheme are convertible into equal number of Equity Shares.

The vesting conditions and the vesting dates under the ABCL Incentive Scheme shall follow the same vesting conditions, as applicable to the Grantees under the corresponding Grasim Employee Benefit Scheme 2006 and 2013

35 Related Party Disclosures

Names of related parties where control exists

Holding Company

Grasim Industries Limited (Aditya Birla Nuvo Limited till 30th June, 2017)

Subsidiaries

Aditya Birla PE Advisors Private Limited (Formerly known as Aditya Birla Capital Advisors Private Limited)

Aditya Birla Capital Investments Private Limited (w.e.f. 12th October, 2018)

Aditya Birla MyUniverse Limited (Formerly known as Aditya Birla Customer Services Limited)

Aditya Birla Financial Shared Services Limited

Aditya Birla Trustee Company Private Limited

Aditya Birla Money Limited

Aditya Birla Money Mart Limited

Aditya Birla Insurance Brokers Limited

Aditya Birla Finance Limited

Aditya Birla Housing Finance Limited

Aditya Birla Health Insurance Co. Limited

ABCAP Trustee Company Private Limited

Aditya Birla Stressed Asset AMC Private Limited

Aditya Birla Commodities Broking Limited (Merge to Aditya Birla Money Limited w.e.f. 1st April, 2018)

Aditya Birla Money Insurance Advisory Services Limited (100% Subsidiary of Aditya Birla Money Mart Limited)

Aditya Birla Sun Life Insurance Company Limited (w.e.f. 23rd March, 2017) (Formerly known as Birla Sun Life Insurance Company imited) Aditya Birla Sun Life Pension Management Limited (100% Subsidiary of Birla Sun Life Insurance Company Limited- w.e.f. 23rd March, 2017) Aditya Birla ARC Limited (w.e.f. 10th March, 2017)

Joint Ventures

Aditya Birla Sun Life AMC Limited (Formerly known as Birla Sun Life Asset Management Company Limited)

Aditya Birla Sun Life AMC (Mauritius) Limited (100% Subsidiary of Aditya Birla Sun Life AMC Limited)

Aditya Birla Sun Life Asset Management Company Limited; Dubai (100% Subsidiary of Aditya Birla Sun Life AMC Limited)

Aditya Birla Sun Life Asset Management Company Pte. Limited; Singapore (100% Subsidiary of Aditya Birla Sun Life AMC Limited)

Aditya Birla Sun Life Trustee Private Limited (Formerly known as Birla Sun Life Trustee Company Private Limited)

Aditya Birla Wellness Private Limited (w.e.f. 23rd June, 2016)

Entity in which Key Managerial Personnel is exercise control

Aditya Birla Management Corporation Private Limited (from 1st January, 2019)

Fellow Subsidiaries

UltraTech Cement Limited

Parent Having Significant Influence

Vodafone Idea Limited (Associate of Ultimate Parent Company upto 31st August, 2018)

Aditya Birla Idea Payments Bank Limited

Trust-Employee Retirement Benefits

Provident Fund of Aditya Birla Nuvo Limited Aditya Birla Nuvo Employee Gratuity Fund Grasim Industries Limited Unit Indian Rayon Grasim Industries Limited - Employee''s Gratuity Fund

Key Managerial Personnel

Mr. Ajay Srinivasan, (Chief Executive Officer)

Mrs. Pinky Mehta (Whole-time Director from 1st July, 2017 to 26th October, 2018) Independent Directors

Mr. Durga Prasad Rathi (Ceased to be a Director w.e.f. 23rd June, 2017)

Mrs. Vijayalakshmi Rajaram Iyer Mr. Arun Adhikari Mr. P. H. Ravikumar Mr. S. C. Bhargava

Refer Annexure 1 for the transactions with related parties.

36 Retirement Benefits

Disclosure in respect of Employee Benefits pursuant to Ind AS -19

iii) Funding Arrangement and Policy

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

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

Estimated amount of contribution expected to be paid to the fund during the annual period being after the Balance Sheet date is Rs,1.48 Crore (Previous Year Rs,2.23 Crore).

37 Fair Values

The management assessed that Fair Values of Financial Assets and Liabilities are approximately their carrying values.

38 Financial Instruments - Accounting Classifications and Fair Value Measurements

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Principles for Estimating Fair Value

The following summarises the major methods and assumptions used in estimating the fair values of financial instruments reflected in the table.

Fair Value Hierarchy

The table below analyses financial instruments carried at fair value, by valuation method at 31st March, 2019. The different levels have been defined as follows:

Level 1: Category includes financial assets and liabilities that are measured in whole or in significant part by reference to published quotes in an active market.

Level 2: Category includes financial assets and liabilities measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions. These include assets and liabilities for which pricing is obtained via pricing services, but where prices have not been determined in an active market, financial assets with fair values based on broker quotes and assets that are valued using the Company''s own valuation models whereby the material assumptions are market observable. The majority of Company''s over-the-counter derivatives and several other instruments not traded in active markets fall within this category.

Level 3: Category includes financial assets and liabilities measured using valuation techniques based on non-market observable inputs. This means that fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. However, the fair value measurement objective remains the same, that is, to estimate an exit price from the perspective of the Company. The main asset classes in this category are unlisted equity investments as well as unlisted funds.

The carrying amount of trade receivable, trade payable, debt securities, other financial liabilities, loans, other financial assets, cash and cash equivalents as at 31st March, 2019, 31st March, 2018 and 1st April, 2017 are considered to the same as fair values, due to their short-term nature. These are classified as Level 3 fair value hierarchy due to inclusion of unobservable inputs including counter party credit risk. During the reporting period ending 31st March, 2019, there were no transfers between Level 1 and Level 2 fair value measurements.

Assumptions to above:

* The fair valuation of preference shares is based on independent valuers report.

* The fair valuation of unquoted mutual funds units is done based on NAV of units.

* The fair valuation of Private Equity Fund is done based on certified NAV of funds.

39 Financial Risk Management

The Company, being a Core Investment Company as per the Core Investment Companies (RBI) Directions 2016, is required to invest or lend majority of its funds to its subsidiaries and Joint Ventures. The Company''s principal financial liabilities comprise borrowings and trade and other payables. The main purpose of these financial liabilities is to finance and support the Company''s operations. The Company''s principal financial assets include inter corporate deposits, loans, cash and cash equivalents and other receivables.

The Company is exposed to market risk, credit risk, liquidity risk and operational and business risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a Risk Management Committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The Risk Committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The major risks are summarized below:

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. In the case of the Company, market risk primarily impacts financial instruments measured at fair value through profit or loss. These are primarily unquoted Compulsorily Convertible Preference Shares of subsidiaries and investments in mutual funds and other alternate funds where investments are not significant in relation to the size of its total investments. The fair value investments of these investments are regularly monitored.

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 does not have exposure to the risk of changes in market interest rate as it has debt obligations with fixed interest rates which are measured at amortized cost.

Credit Risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or a customer contract, leading to a financial loss. The Company is exposed to credit risk from its financing activities towards inter corporate deposits to subsidiaries where no significant impact on credit risk has been identified.

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 to identify impairment indicators.

Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.

The Company manages its liquidity requirement by analyzing the maturity pattern of Company''s cash flows of financial assets and financial liabilities. The Company''s objective is to maintain a balance between continuity of funding and flexibility through issuance of equity shares, commercial papers, etc. The Company invests its surplus funds in debt schemes of mutual funds, which carry low mark to market risks. Also Refer Note No. 40 for maturity analysis of assets and liabilities.

40 Maturity Analysis of Assets and Liabilities

The table below shows an analysis of assets and liabilities analyzed according to when they are expected to be recovered or settled. Loans and advances to customers, the Company uses the same basis of expected repayment behavior as used for estimating the EIR. Issued debt reflect the contractual coupon amortizations.

Note: The current liabilities of the Company exceed its current assets. The Company has “AAA” long term rating from ICRA (which is the highest long term rating) and therefore high acceptability in the market. Given the track record of the company the management is confident to reduce the mismatch by raising long term funds through equity or other long term instrument(s) and planning accordingly.

41 Impairment on Financial Instruments Background of Expected Credit Loss

Expected Credit loss is a calculation of the present value of the amount expected to be lost on a financial asset, for financial reporting purposes. Credit risk is the potential that the obligor and counterparty will fail to meet its financial obligations to the lender. This requires an effective assessment and management of the credit risk at both individual and portfolio level

The key components of Credit Risk assessment are:

1. Probability of Default (PD): represents the likelihood of default over a defined time horizon.

2. Exposure at Default (EAD): represents how much the obligor is likely to be borrowing at the time of default.

3. Loss Given Default (LGD): represents the proportion of EAD that is likely to be lost post-default.

The definition of default is taken as 90 days past due for all retail and corporate loans.

Delinquency buckets have been considered as the basis for the staging of all loans in the following manner:

- 0-30 days past due loans classified as stage 1

- More than 30-90 days past due loans classified as stage 2 and

- Above 90 days past due loans classified as stage 3

EAD is the total amount outstanding including accrued interest as on the reporting date.

The ECL is computed as a product of PD, LGD and EAD.

Non-Individual Loans

1.1 Credit Quality of Assets

The Non-individual/corporate book is assessed at the loan type level and the provisioning is done at an account level. In certain cases, the assessment is done at an account level based on past experience for future cash flows from the project.

The 12 month PD has been applied on stage 1 loans. The PD term structure i.e Lifetime PD has been applied on the stage 2 loans according to the repayment schedule for stage 2 loans and PD is considered to be 1 for stage 3 loans

The increase in ECLs of the portfolio was driven by an increase in the gross size of the portfolio and movements between stages as a result of increases in credit risk.

42 Details of dues to Micro, Small and Medium Enterprises as per MSMED Act, 2006

Based on the information received by the Company from “suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to any suppliers covered under this Act as at the balance sheet date and hence, disclosures relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given. Auditors have relied on this.

43 During the current year, the Company has reassessed its value of investments in Aditya Birla Money Limited (“ABML”) based on the Company''s last 2 years profitable business performance and future business plan. Considering investment of long term and strategic nature and based on independent valuation report obtained by the Company, no additional impairment provision is required to be made in the financial statements as at 31st March, 2019 in this regard.

In the previous years the Company had reassessed its value of investments in Aditya Birla Money Limited (“ABML”) and had made a provision of Rs,12.42 Crore as at 31st March, 2014 being 5% against equity shares and the same is carried as at 31st March, 2019.

44 During the previous year, the Company has issued and allotted 48,400,000 Equity Shares of Rs,10 each at a premium of Rs,135.40 per share which were subscribed by P I Opportunities Fund - 1 (AIF).

45 Composite Scheme of Arrangement:

The Composite Scheme of Arrangement (the “Scheme”) amongst the erstwhile Aditya Birla Nuvo Limited (“ABNL”), Grasim Industries Limited (“Grasim”) and Aditya Birla Capital Limited (formerly known as Aditya Birla Financial Services Limited) (“ABCL”), was approved by the National Company Law Tribunal Bench at Ahmadabad on 1st June, 2017.

Pursuant to the Scheme,

- ABCL has become a subsidiary of Grasim with effect from 1st July, 2017

- The Board of Directors of Grasim and ABCL executed the demerger of the financial services business (“Demerged Undertaking”) from amalgamated Grasim into ABCL effective on 4th July, 2017 and accordingly the financial services business of amalgamated Grasim has been demerged into ABCL with effect from 4th July, 2017.

- In accordance with the Scheme, the ABCL has,

- recorded transferred assets and liabilities pertaining to Demerged Undertaking at the respective carrying values as appearing in the books of account of Grasim on the date of demerger;

- issued 920,266,951 Equity Shares of Rs,10 each, which have been issued and recorded at face value, to the shareholders'' of Grasim as on record date; and

- difference between the value of assets and liabilities pertaining to Demerged Undertaking, after adjusting the amount credited to share capital, has been recognized as Capital Reserve.

# The Company also paid a sum of Rs,25 Crore towards stamp duty.

- Further, to fulfil the Company''s commitments under the Scheme, the Board of Directors of the Company have approved the issuance of stock options and restricted stock units under the ABCL Incentive Scheme for Stock Options and Restricted Stock Units 2017 (the “ABCL Incentive Scheme”) for granting of stock options and restricted stock options to the eligible grantees of Grasim Employee Stock Option Scheme 2006and Grasim Employee Stock Option Scheme 2013 (the “Grasim Employee Benefit Schemes”) in the same ratio as the ratio in which shares were issued to the shareholders of Grasim. Under the arrangement, the Company is obligated to issue equity shares not exceeding 1,718,237 at the face value of Rs,10 each against 1,465,927 stock options and 252,310 restricted stock units granted by it to eligible employees of Grasim who held grants of stock options and restricted stock options of Grasim Employee Benefit Schemes. The stock options and restricted stock options thus granted under the ABCL Incentive Scheme would be deemed to be held by the eligible employees of Grasim for determining the minimum vesting period and the vesting conditions and dates for stock options and restricted share units under the ABCL Incentive Scheme would follow the same vesting conditions as applicable to the grantees of for stock options and restricted share units under the Grasim Employee Benefit Schemes. Accordingly, '' 7.37 Crore representing the pro-rata amount of the vested Employee Stock Options Reserve created by Grasim against the Grasim Employee Benefit Schemes has been transferred to the Company against which sum the Company will be entitled to an equivalent cash reimbursement. The balance pro-rata amount of Employee Stock Options Reserve would be transferred to the Company by Grasim upon vesting of the stock options and restricted stock options of Grasim Employee Benefit Schemes with a corresponding cash reimbursement.

46 With effect from 11th October, 2017, 64,422,405 Global Depositary Shares (GDSs) representing 64,422,405 Equity Shares of Rs,10/- each have been admitted for trading on the Luxembourg Stock Exchange.

47 During the previous year, the Company has approved the grant of 24,062,864 Employee Stock Options (ESOPs) and 5,742,636 Restricted Stock Units (RSUs) in accordance with the Employee Stock Option Scheme, 2017 to its employees and employees of subsidiary companies. Further, in continuation to existing Scheme the Company additionally grant 300,000 RSUs and ESOPs 1,623,834 to employees of subsidiary companies.

48 The Company has investment in Equity Shares and Preference Shares of Aditya Birla MyUniverse Limited (“ABMU”) of '' 71.11 Crore (Previous year '' 71.11 Crore) and of Rs,60 Crore (Previous year Rs,60 Crore) respectively and Loan given to ABCSL-Employee Welfare Trust of Rs,10.11 Crore (Previous year Rs,10.11 Crore). Further, the Investee Company''s is making substantial losses and its net worth has been eroded.

During the current year, the Company has made an assessment of its investments in Equity Shares of Aditya Birla MyUniverse Limited '' 71.11 Crore and Loan given to ABCSL-Employee Welfare Trust Rs,10.11 Crore. Based on such assessments, board approved business plan and independent valuation report, an amount of Rs,24.01 Crore and Rs,6.31 Crore (Previous year '' 0.62 Crore) has been provided as impairment loss respectively.

49 The Company has investment in 0.1%-Compulsory Convertible Debentures (CCD) of Aditya Birla Money Mart Limited (“ABMML”) of Rs,33.75 Crore (Previous year Rs,30.96 Crore). The Investee Company (ABMML) is making losses and its net worth has been eroded. Considering the plans and the investment being strategic and long-term in nature, diminution in the value of the said investment has been considered as temporary and hence no provision is required to be made in financial statements as at 31st March, 2019 in this regard.

50 The Company has Long-term incentive plan for selective employees. Long-term Incentive Plan includes future encashment or availment, at the option of the employee subject to the rules framed by the Company which are expected to be availed or encashed beyond 12 months from the end of the year and long term incentive payable to employees on fulfillment of criteria prescribed by the Company. On the basis of proposed scheme the Company has made provision of '' 8.26 Crore.

51 The Company has short-term rating viz. “(ICRA) A1 ” and “(CRISIL) A1 ” accordingly the Company raised funds through Commercial Paper to mitigate working capital requirements.

52 During the current year, the Company has let out its property on rent. Further, the Company has reclassified its property under Investment Property as per Ind AS 40. There is no change in method of calculation of depreciation, rate and useful life as specified earlier.

Investment Property Fair Value

The Company has carried out the valuation activity through the Independent valuer to assess fair value of its Investment Property. As per report provided by independent valuer the fair value is Rs,16.03 Crore as on 31st March, 2019. The fair value of Investment Property have been derived using the Direct Comparison Method based on recent market prices without any significant adjustments being made observable data. Accordingly, fair value estimates for Investment Property is classified as level 3.

The Company has no restrictions on the reliability of its Investment Property and has no contractual obligations to purchase, construct or develop Investment Property.

Information regarding Income & Expenditure of Investment property

53 During the current year, the Company has provided; services to its subsidiaries and other financial services group companies (“Group”), such as strategy and business planning, risk and compliance, technology and operational support, marketing and public relations, human resources, etc. The Company has allocated the cost to the respective companies on the basis of time spent by senior management employees.

54 The Company''s pending litigations comprise of claims by or against the Company primarily by the employees/customers/suppliers, etc. and proceedings pending with tax and other government authorities. The Company has reviewed its pending litigations and proceedings and has adequately provided for where Provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statements and appropriate disclosure for contingent liabilities is given refer Note No. 30.

55 Income Tax Disclosure

The Major Components of Income Tax Expense for the years ended 31st March, 2019 and 31st March, 2018 are:

56 The Company has a process whereby periodically all long term contracts are assessed for material foreseeable losses. At the year end, the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses need to be provided as required under any law / accounting standards.

57 Disclosure as required under Annexure I of Master Direction - Core Investment Companies (Reserve Bank), Direction, 2016.

Schedule to the Balance Sheet of a non-deposit taking Core Investment Company (Refer Annexure 2).

Disclosure of details as required under Clause No. 19 of Master Direction - Core Investment Companies (Reserve Bank) Direction, 2016.

a) Provisions as per CIC Guidelines - The Company has provided an amount of '' 0.46 Crore as per guidelines.

b) Exposure to real estate sector, both direct and indirect - Nil

c) Maturity pattern of assets and liabilities

58 First time Adoption of Ind AS

These financial statements, for the year ended 31st March, 2019, are the first financial statements the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31st March, 2018, the Company prepared its financial statements in accordance with accounting standards notified under Section 133 of the Companies Act, 2013 (Previous GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31st March, 2019, together with the comparative period data as at and for the year ended 31st March, 2018, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1st April, 2017, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Previous GAAP financial statements, including the balance sheet as at 1st April, 2017 and the financial statements as at and for the year ended 31st March, 2018.

Exemptions applied:

Ind AS 101 allows, first time adopters, certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

i) The Company has elected to apply Previous GAAP carrying amount of its equipments as deemed cost as on the date of transition to Ind AS, after making necessary adjustments, i.e. capitalization of equipments in accordance with Ind AS.

ii) Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has done the assessment of lease in contracts based on conditions in prevailing as at the transition.

iii) The Company has elected to apply previous GAAP carrying amount of its investment in subsidiaries, associates and joint venture as deemed cost as on the date of transition to Ind AS.

Exceptions:

The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements.

i) Estimates

The estimates at 1st April, 2017 and at 31st March, 2018 are consistent with those made for the same dates in accordance with Previous GAAP (after adjustments to reflect any differences if any, in accounting policies) apart from the following items where application of Previous GAAP did not require estimation:

- FVPTL / FVOCI - equity and debt instrument

- Impairment of financial assets based on expected credit loss model

The estimates used by the Company to present these amounts in accordance with the Ind AS reflect conditions as at the transition date and as at 1st April, 2017, the date of transition to Ind AS and as of 31st March, 2018.

ii) De-recognition of financial assets and financial liabilities

The Company has elected to apply the de-recognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after date of transition to Ind AS.

iii) Classification and measurement of financial assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

Notes to Adjustments :

A. Investments

Under the Previous GAAP, the Company had accounted for long term investment measured at cost less provision for other than temporary diminution in the value of investments, Current investments were carried at lower of cost and fair value.

Under Ind AS, the Company has designated investments at amortized cost or fair value through profit and loss (FVTPL) resulting fair value changes of the investments is recognized in equity as at the date of transition and subsequently in the Statement of Profit and Loss for the year ended 31st March, 2018.

B. Share Based Payments

Under the previous GAAP, the cost of equity- settled employee share based plan were recognized using the intrinsic value method. Under Ind AS, the Cost of equity settled share based plan is recognized based on the fair value of the options as at the grant date. There is no impact on total equity.

C. Other Adjustments

Under the previous GAAP, security deposits are recorded at their transaction value. Under Ind AS, the same are required to be recognized at fair value. Accordingly, the company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposits has been recognized as deferred rent expenses. Security deposits measured subsequently at amortized cost and the difference between unwinding of deposits has been recognized as interest income on security deposits in equity as at the date of transition and subsequently in profit or loss for the year ended 31st March, 2018.

59 Reconciliation of Statement of Cash Flows

There were no material differences between statement of cash flows presented under Ind AS and Previous GAAP.

60 Segment Reporting

The main business of the Company is Investment activity, hence there are no separate reportable segments as per Ind AS 108 on ‘Operating Segment''.

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Mar 31, 2018

CORPORATE INFORMATION AND BASIS OF PREPARATION

Aditya Birla Capital Limited (formerly known as Aditya Birla Financial Services Limited) (the “Company”) is a listed public company having its registered office at Indian Rayon Compound, Veraval - 362 266, Gujarat. The Company currently operates as a Non-Deposit taking Systemically Important-Core Investment Company (“CIC-ND-SI”) registered with the RBI vide certificate no. B.01.00555 dated 16th October, 2015.

Information on other related party relationships of the Company is provided in Note No 29.

The financial statements have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) under the historical cost convention on an accrual basis in compliance with all material aspect of the Accounting Standard (AS) notified under Section 133 of the Companies Act, 2013 read with the Companies (Accounting Standards) Rules, 2006, as amended (“Accounting Standards”), and other accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle, and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as up to twelve months for the purpose of current/non-current classification of assets and liabilities.

1) Term/Right Attached to Equity Shares

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

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

2) Equity Shares in the Company held by each shareholder holding more than 5 per cent shares and the number of equity shares held are as under:

* Pursuant to the Composite Scheme of Arrangement (the “Scheme”) amongst the erstwhile Aditya Birla Nuvo Limited (ABNL), Grasim Industries Limited (Grasim) and the Company 920,266,951 equity shares of Rs.10 each were issued to Grasim as fully paid up in exchange of the assets of the Financial Services Business. The scheme has been described more elaborately in Note No. 34

3) Reclassification of Authorised Share Capital

a) During the current year the Company had reclassified its Authorised Share Capital. The revised structure comprises 4,000,000,000 Equity Shares of Rs.10 each.

b) During the previous year the Company had reclassified its Authorised Share Capital. The revised structure comprises 2,200,000,000 Equity Shares of ’ 10 each and 1,800,000,000 Preference Shares of Rs.10 each.

4) Conversion of Preference Shares:

a) During the previous year 56,500,000-0.01% Non Cumulative Compulsorily Convertible Preference Shares of Rs.10 each were due for conversion on the existing terms and conditions. Accordingly, the Company had converted preference shares into 5,650,000 fully paid Equity Shares of Rs.10 each at premium of Rs.90 each.

b) During the previous year the Company had made early conversion of its 280,000,000-0.01% Non Cumulative Compulsorily Convertible Preference Shares of Rs.10 each into 28,000,000 fully paid Equity Shares of Rs.10 each at premium of Rs.90 each.

5) Rights Issue of Equity Shares:

During the previous year the Company made,

a) Rights issue of 20,000,000 Equity Shares of Rs.10 each at a premium of Rs.90 each.

b) Right issue of 382,580,000 Equity Shares of Rs.10 each at a premium of Rs.60 each.

6) During the previous year the Company made early redemption of its 1,471,110,000-6% Non-Convertible Non- Cumulative Redeemable

Preference Shares of Rs.10 each held by erstwhile Aditya Birla Nuvo Limited. The same is approved by Board of Directors’ and accounted accordingly. The redemption is made as per existing terms and conditions.

7) During the last five years no Bonus Shares were issued.

8) The shares reserved for issue under Employee Stock Option Plan (ESOP) of the Company (Refer Note No. 35 & 36)

(a) Special Reserve

Special Reserve represents the reserve created pursuant to the Reserve Bank of India Act, 1934 (the “RBI Act”). In terms of Section 45-IC of the RBI Act, a Non-Banking Finance Company is required to transfer an amount not less than 20 per cent of its net profit to a Reserve Fund before declaring any dividend. Appropriation from this Reserve Fund is permitted only for the purposes specified by RBI.

2. Deferred Tax Liabilities / Assets

The Company has not recognised deferred tax asset in respect of timing differences related to depreciation on fixed assets, carried forward losses and compensated absence at the end of the year as there is no virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such net deferred tax asset can be realised.

3. Employee Benefit Plans and Employee Contribution Plans (A) Defined benefit plan:

The Company operates defined benefit, viz. gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at minimum 15 days of last drawn salary for each completed year of service.

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

4. Details of dues to Micro, Small and Medium Enterprises as per MSMED Act, 2006

Based on the information received by the Company from “suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, there are no amounts due to any suppliers covered under this Act as at the balance sheet date and hence, disclosures relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given. Auditors have relied on this.

5. Contingent Liabilities and Commitments

a. Capital Commitments:

i) There are no capital commitment as on 31st March, 2018 (31st March, 2017 Rs.1.02 Crore).

ii) Pursuant to the Shareholders’ Agreement entered into with Sun Life of Canada by the Aditya Birla Capital Limited, in respect of Aditya Birla Sun Life Insurance Company Limited (formerly known as Birla Sun Life Insurance Company Limited), the Company has agreed to infuse share capital from time to time to meet the solvency requirement prescribed by the regulatory authority.

Transfer of investments in Aditya Birla Sun Life Insurance Company Ltd., is restricted by the terms contained in Shareholder Agreements entered into by the Company.

b. Contingent Liabilities:

Aditya Birla MyUniverse Limited (formerly known as Aditya Birla Customer Services Limited) (ABMU), a subsidiary of the Company, has issued 0.001% Compulsorily Convertible Preference Shares (CCPS) aggregating to Rs.60 Crore to International Finance Corporation (IFC) vide Shareholders’ Agreement, dated 19th December, 2014, and Subscription Agreement dated 19th December, 2014 (SHA). Under the said SHA, the Company has granted to IFC an option to sell the shares to the Company at fair valuation from the period beginning on the expiry of 60 months of the subscription by IFC up to a maximum of 120 months from the date of subscription by IFC, in the event ABMU fails to provide an opportunity to IFC to exit from ABMU within 60 months from the date of subscription by IFC in the form of Listing, secondary sale or acquisition, etc. In the event ABMU fails to fulfill its obligation, the Company will be obligated to fulfill this obligation.

6. Segment Reporting

Since the Company operates in single segment (i.e. investments and financing activities), no further disclosure is required to be given as per the notified AS-17 ‘Segmental Reporting’.

7. During the current year, the Company has reassessed its value of investments in Aditya Birla Money Limited (“ABML”) based on the Company’s last 2 years profitable business performance and future business plan. Considering investment of long term and strategic nature and based on independent valuation report obtained by the Company, no additional impairment provision is required to be made in financial statements as at 31st March, 2018 in this regard.

The Company had reassessed its value of investments in Aditya Birla Money Limited (“ABML”) and had made a provision of Rs.12.42 Crore in FY 2013-2014 being 5% against equity shares and the same is carried as at 31st March, 2018.

8. During the current year, the Company has issued and allotted 48,400,000 Equity Shares of Rs.10 each at a premium of Rs.135.40 per share which were subscribed by P I Opportunities Fund 1 (AIF). (Refer Note No. 3)

9. Composite Scheme of Arrangement:

The Composite Scheme of Arrangement (the “Scheme”) amongst the erstwhile Aditya Birla Nuvo Limited (“ABNL”), Grasim Industries Limited (“Grasim”) and Aditya Birla Capital Limited (formerly known as Aditya Birla Financial Services Limited) (“ABCL”), was approved by the Hon’ble National Company Law Tribunal Bench at Ahmedabad on 1st June, 2017.

Pursuant to the Approved Scheme:

- ABCL has become a subsidiary of Grasim with effect from 1st July, 2017

- The Board of Directors of Grasim and ABCL executed the demerger of the financial services business (“Demerged Undertaking”) from Grasim (post its amalgamation with ABNL) into ABCL effective on 4th July, 2017 and accordingly the financial services business of amalgamated Grasim has been demerged into ABCL with effect from 4th July, 2017.

- In accordance with the Scheme, the ABCL has:

— recorded transferred assets and liabilities pertaining to Demerged Undertaking at the respective carrying values as appearing in the books of account of Grasim on the date of demerger;

— issued 920,266,951 Equity Shares of Rs.10 each, which have been issued and recorded at face value, to the shareholders’ of Grasim as on record date; and

— difference between the value of assets and liabilities pertaining to Demerged Undertaking, after adjusting the amount credited to share capital, has been recognised as Capital Reserve.

- Further, to fulfil the Company’s commitments under the Scheme, the Board of Directors of the Company have approved the issuance of stock options and restricted stock units under the ABCL Incentive Scheme for Stock Options and Restricted Stock Units 2017 (the “ABCL Incentive Scheme”) for granting of stock options and restricted stock options to the eligible grantees of Grasim Employee Stock Option Scheme 2006 and Grasim Employee Stock Option Scheme 2013 (the “Grasim Employee Benefit Schemes”) in the same ratio as the ratio in which shares were issued to the shareholders of Grasim. Under the arrangement, the Company is obligated to issue equity shares not exceeding 1,718,237 at the face value of Rs.10 each against 1,465,927 stock options and 252,310 restricted stock units granted by it to eligible employees of Grasim who held grants of stock options and restricted stock options of Grasim Employee Benefit Schemes. The stock options and restricted stock options thus granted under the ABCL Incentive Scheme would be deemed to be held by the eligible employees of Grasim for determining the minimum vesting period and the vesting conditions and dates for stock options and restricted share units under the ABCL Incentive Scheme would follow the same vesting conditions as applicable to the grantees of for stock options and restricted share units under the Grasim Employee Benefit Schemes. Accordingly, Rs.7.37 Crore representing the pro-rata amount of the vested Employee Stock Options Reserve created by Grasim against the Grasim Employee Benefit Schemes has been transferred to the Company against which sum the Company will be entitled to an equivalent cash reimbursement. The balance pro-rata amount of Employee Stock Options Reserve would be transferred to the Company by Grasim upon vesting of the stock options and restricted stock options of Grasim Employee Benefit Schemes with a corresponding cash reimbursement.

10. ABCL Incentive Plan 2017:

The Scheme titled as “ABCL Incentive Scheme for Stock Options and Restricted Stock Units - 2017 (ABCL Incentive Scheme)” was approved by the shareholders through postal ballot on 10th April, 2017. The Nomination, Remuneration and Compensation Committee of the Company at their meeting held on 15th January, 2018, granted 1,465,927 ESOPs and 252,310 Restricted Stock Units (RSUs) (Collectively called as “Stock Options”) to the eligible grantees pursuant to the Composite Scheme of Arrangement between erstwhile Aditya Birla Nuvo Limited (now merged with Grasim Industries Limited), Grasim Industries Limited and Aditya Birla Capital Limited (formerly known as Aditya Birla Financial Services Limited) (Refer Note No. 34). Out of the above, the Company; has granted 195,040 ESOPs and 45,060 RSUs under this Scheme to a Director of the Company. The Stock Options allotted under the Scheme are convertible into equal number of Equity Shares.

The vesting conditions and the vesting dates under the ABCL Incentive Scheme shall follow the same vesting conditions, as applicable to the Grantees under the corresponding Grasim Employee Benefit Scheme 2006 and 2013

Since the above grants were part of the acquisition of financial services business as part of Scheme of Arrangement amongst Aditya Birla Nuvo Limited, Grasim Industries Limited and Aditya Birla Capital Limited as per Note No. 34, and these being issued to Grasim and ABNL ESOP and RSU holders there would be no impact on earnings per share arising from differences between intrinsic value and fair value of Options and RSU’s.

11. Disclosure under Employee Stock Options Scheme

At the Annual General Meeting held on 19th July, 2017, the shareholders of the Company approved the grant of not more than 32,286,062 Equity Shares by way of grant of Stock Options (“ESOPs”) and Restricted Stock Units (“RSUs”). Out of these, the Nomination, Remuneration and Compensation Committee has granted 24,062,864 ESOPs and 5,742,636 RSUs under the Scheme titled “Aditya Birla Capital Limited Employee Stock Option Scheme 2017” in 3 categories of Long Term Incentive Plans (“LTIP”) identified as LTIP 1, LTIP 2, and LTIP 3. The Scheme allows the Grant of Stock options to employees of the Company (whether in India or abroad) that meet the eligibility criteria. Each option comprises one underlying Equity Share.

The intrinsic value of the ESOP i.e. the difference between the fair value of the shares underlying the ESOP granted on the date of grant of option and the exercise price of the option is expensed over the vesting period.

The ESOP compensation cost is amortised on a straight line basis over the total vesting period of the options. Accordingly Rs.10.64 Crore has been charged to the current year Statement of Profit and Loss (Previous Year ‘ Nil).

Fair Valuation:

The fair value of the options used to compute proforma net profit and earnings per share have been done by an independent valuer on the date of grant using Black - Scholes Merton Formula. The key assumptions and the Fair Value are as:

12. With effect from 11th October, 2017, 64,422,405 Global Depositary Shares (GDSs) representing 64,422,405 Equity Shares of ’ 10/- each have been admitted for trading on the Luxembourg Stock Exchange.

13. The Company has investment in Equity Shares and Preference Shares of Aditya Birla MyUniverse Limited (“ABMU”) of Rs.71.11 Crore (Previous year Rs.71.11 Crore) and of Rs.60 Crore (Previous year Rs.60 Crore) respectively. The Investee Company (ABMU) is making substantial losses and its net worth has been eroded. Based on the business plan of ABMU and strategic investment by International Finance Corporation in the ABMU in the previous year, the Company has assessed the value of ABMU being higher than the investment. Accordingly, based on the business plan and considering that the investment being long term and strategic in nature, and diminution in the value of the said investment has been considered as temporary; no provision is required to be made in financial statements as at 31st March, 2018 in this regard.

14. The Company has investment in 0.1% Compulsory Convertible Debentures (CCD) of Aditya Birla Money Mart Limited (“ABMML”) of Rs.26.01 Crore (Previous year Rs.26.01 Crore). The Investee Company (ABMML) is making losses and its net worth has been eroded. Considering the plans and the investment being strategic and long-term in nature, diminution in the value of the said investment has been considered as temporary and hence no provision is required to be made in financial statements as at 31st March, 2018 in this regard.

15. During the current year, the Company has provided; services to its subsidiaries and other financial services group companies (“Group”), such as strategy and business planning, risk and compliance, technology and operational support, marketing and public relations, human resources, etc. The Company has allocated the cost to the respective companies on the basis of time spent by senior management employees. Increase in retention amount as compared to previous year is mainly because of retention of promotional expenses.

16. The Company’s pending litigations comprise of claims by or against the Company primarily by the employees/ customers/suppliers, etc. and proceedings pending with tax and other government authorities. The Company has reviewed its pending litigations and proceedings and has adequately provided for where Provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statements and appropriate disclosure for contingent liabilities is given refer note no. 30

17. The Company has short-term rating viz. “(ICRA) A1 ” and “(CRISIL) A1 ” accordingly the Company raised funds through Commercial Paper to mitigate working capital requirements.

18. Disclosure as required under Annexure I of Master Direction - Core Investment Companies (Reserve Bank), Direction, 2016.

Schedule to the Balance Sheet of a non-deposit taking Core Investment Company (Refer Annexure 2).

19. Disclosure of details as required under Clause No. 19 of Master Direction - Core Investment Companies (Reserve Bank) Direction, 2016.

(a) Provisions as per CIC Guidelines - The Company has provided an amount of Rs.0.28 Crore as per guidelines.

(b) Exposure to real estate sector, both direct and indirect - Nil

(c) Maturity pattern of assets and liabilities

20. The figures for the previous year ended 31st March, 2017 are subjected to audit by the previous Auditors vide their report dated 9th May, 2017.

21. Figures Rs.50,000 or less have been denoted by 3.

22. Previous Year’s figures have been regrouped / rearranged, wherever necessary.

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Mar 31, 2017

1. Corporate Information

Aditya Birla Financial Services Limited (the ‘Company’) was incorporated on October 15, 2007. The Company is a Public Limited Company incorporated under the provisions of the Companies Act, 1956. The registered office of the Company is located at Indian Rayon Compound, Veraval, Gujarat - 362 266. The Company had received Certificate of Registration from the Reserve Bank of India (‘RBI’) on May 19, 2009 to commence/carry on the business of non-banking financial institution.

The Company is a Non-Deposit taking Systemically Important Core Investment Company (CIC-ND-SI) registered with the Reserve Bank of India vide certificate no B.01.00555 dated October 16, 2015. The Company has been set up as a holding company for the Financial Services Business of Aditya Birla Nuvo Limited.

(A) Term/Right Attached to Equity Shares

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

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

(B) Shares in the Company held by each shareholder holding more than 5 per cent shares and the number of shares held are as under:

2. Deferred Tax Liabilities/ Assets

The Company has not recognized net deferred tax asset in respect of timing differences related to depreciation on fixed assets, carried forward losses and Leave encashment at the end of the year as there is no virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such net deferred tax asset can be realized.

3. Employee Benefit Plans and Employee Contribution Plans (A) Defined benefit plans :

The Company operates defined plans, viz., gratuity, for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at minimum 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy. The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for respective plans.

4. Details of dues to Micro, Small and Medium Enterprises as per MSMED Act, 2006

Based on the information available with the Company, no amounts have fallen due for payment to suppliers who have registered under the Micro, Small and Medium Enterprise Development Act, 2006 as at March 31, 2017.

5. Contingent Liabilities and Commitments

a. Capital Commitments:

i) There is capital commitment of which Rs.10,200,000 as on March 31, 2017 (March 31, 2016 Rs. NIL) towards Intangible Assets under Development for Digital/Technology related projects.

ii) The Company has subscribed to the memorandum of the new Company (Aditya Birla ARC Limited (ARC)) incorporated on March 10, 2017 for ARC business. The Board has approved Equity Participation/Investment up to an amount not exceeding Rs.20,000,000 in one or more tranches in the Company.

iii) Pursuant to the Shareholders’ Agreement entered into with Sun Life of Canada by the Aditya Birla Nuvo Limited - the Holding Company, in respect of Birla Sun Life Insurance Company Limited, the Company agreed to infuse its share of capital from time to time to meet the solvency requirement prescribed by the regulatory authority. Transfer of investments in Birla Sun Life Insurance Company Ltd., is restricted by the terms contained in Shareholder Agreement entered into by Aditya Birla Nuvo Limited - the Holding Company.

b. Contingent Liabilities:

i) Aditya Birla Customer Services Ltd. (ABCSL), a subsidiary of the Company, has issued 0.001%- Compulsorily Convertible Preference Shares (CCPS) aggregating to Rs.60 Crore to International Finance Corporation (IFC) vide Shareholders’ Agreement, dated 19th December, 2014, and Subscription Agreement dated December 19, 2014 (SHA). Under the said SHA, the Company has granted to IFC an option to sell the shares to the Company at fair valuation from the period beginning on the expiry of 60 months of the subscription by IFC up to a maximum of 120 months from the date of subscription by IFC, in the event ABCSL fails to provide an opportunity to IFC to exit from ABCSL within 60 months from the date of subscription by IFC in the form of Listing, Secondary Sale or Acquisition, etc. In the event ABCSL fails to fulfill its obligation, the Company will be obligated to fulfill this obligation.

6. Segment Reporting

Since the Company operates in single segment (i.e. investments and financing activities), no further disclosure is required to be given as per the notified AS-17 ‘Segmental Reporting’.

7. Related Party Disclosure

Names of related parties where control exists irrespective of whether transactions have occurred or not. Refer Annexure 1 for the transactions with related parties.

8. During the current year, the Company has reassessed its value of investments in Aditya Birla Money Limited (‘‘ABML”) based on the Company’s last 2 years profitable business performance and future business plan. Considering investment of long term and strategic nature and based on independent valuation report obtained by the Company, no additional impairment provision is required to be made in financial statements as at March 31, 2017 in this regard.

In the previous years the Company had reassessed its value of investments in Aditya Birla Money Limited (“ABML”) and had made a provision of Rs.124,151,400 as at March 31, 2014 being 5% against equity shares and the same is carried as at March 31, 2017.

9. Scheme of Arrangement between Subsidiary Companies:

- During the year, the Hon’ble High Court of Gujarat, Ahmedabad approved the Scheme of Arrangement vide order O/COMP/445/2016 dated November 24, 2016, and the certified true copies of the scheme and order were received on December 21, 2016., whereby the Wealth Management Undertaking of Aditya Birla Money Mart Limited (ABMM), a subsidiary of the Company was demerged and transferred to Aditya Birla Finance Limited (ABFL), also a subsidiary of the Company, with the Appointed Date of April 1, 2016. The Scheme of Arrangement was made effective on December 31, 2016.

- In consideration of the demerger, the Company has received 10,277,778 equity shares of Rs.10 each of ABFL as per the share entitlement ratio determined based on an independent valuation report at 3 equity shares of Rs.10 each in ABFL for every 8 equity shares of ‘10 each held in ABMM and 1 equity share of Rs.10 each in ABFL for every 36 0.01%-Redeemable Non Convertible Preference Shares of Rs.10 each held in ABMM.

- As per the Scheme of Arrangement, the general purpose borrowings in ABMM have been transferred to the Company in proportion to the value of assets transferred to ABFL. Accordingly, ABFL has issued 0.1%- Compulsory Convertible Debentures (CCD) of value of Rs.239,913,400 to the Company in lieu of such amount of CCD of ABMM which were transferred to ABFL. Hence the current holding pattern of CCD’s by the Company is as under:

a) ABFL - Rs.239,913,400

b) AMML - Rs.260,086,600

- The carrying value of the investments in ABMM (net of impairment) is considered to be at fair value of asset given up for equity shares received from ABFL.

10. The Company has investment in Equity Shares and Preference Shares of Aditya Birla Customer Services Limited (“ABCSL”) of Rs.711,098,369 (Previous year Rs.711,098,369) and of ‘599,999,999 (Previous year Rs.599,999,999) respectively The Investee Company (ABCSL) is making substantial losses and its net worth has been eroded. Based on the business plan of ABCSL and strategic investment by International Finance Corporation in the ABCSL in the previous year, the Company has assessed the value of ABCSL being higher than the investment. Accordingly, based on the business plan and considering that the investment being long term and strategic in nature, and diminution in the value of the said investment has been considered as temporary; no provision is required to be made in financial statements as at March 31, 2017 in this regard.

11. The Company has investment in 0.1%- Compulsory Convertible Debentures (CCD) of Aditya Birla Money Mart Limited (“ABMML”) of Rs.260,086,600 (Previous year Rs.500,000,000). The Investee Company (ABMML) is making losses and its net worth has been eroded. Considering the plans and the investment being strategic and long-term in nature, diminution in the value of the said investment has been considered as temporary and hence no provision is required to be made in financial statements as at March 31, 2017 in this regard.

12. During the current year, the Company has, to its subsidiaries and other financial services group companies (“Group”), provided services such as strategy and business planning, risk and compliance, technology and operational support, marketing and public relations, human resources, etc. The Company has retained approximately 30% of the total cost and allocated the balance to the respective companies on the basis of time spent, marketing budget and number of employees. Increase in retention percentage as compared to previous year is mainly because of higher retention of Long Term Incentive Plan. The amount allocated to the various companies is as given hereunder:

13. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial results at March 31, 2017.

14. Current tax for the year of Rs. NIL (previous year Rs.18,138,367) includes the tax on the income accrued under Section 115U of the Income Tax Act, 1961 on the Venture Capital Investment.

15. The Company has a process whereby periodically all long term contracts are assessed for material foreseeable losses. At the year end, the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses need to be provided as required under any law / accounting standards.

16. Conversion of Preference Shares:

a) During the year 56,500,000 0.01%- Non Cumulative Compulsorily Convertible Preference Shares of Rs.10 each were due for conversion on the existing terms and condition, accordingly the Company has converted preference shares into 5,650,000 fully paid Equity Shares of Rs.10 each at premium of Rs.90 each.

b) During the year the Company has made early conversion of its 280,000,000 0.01%- Non Cumulative Compulsorily Convertible Preference Shares of Rs.10 each into 28,000,000 fully paid Equity Shares of Rs.10 each at premium of Rs.90 each.

17. During the year the Company has reclassified its Authorised Share Capital. The revised structure comprises of 2,200,000,000 Equity shares of Rs.10 each and 1,800,000,000 Preference Shares of Rs.10 each.

18. Rights Issue of Equity Shares:

During the year the Company made,

a) Rights issue of 20,000,000 Equity Shares of Rs.10 each at a premium of Rs.90 each.

b) Right issue of 382,580,000 Equity Shares of Rs.10 each at a premium of Rs.60 each.

19. During the year the Company made early redemption of its 1,471,110,000 6%- Non-Convertible Non Cumulative Redeemable Preference Shares of Rs.10 each held by Aditya Birla Nuvo Limited. The redemption is made as per existing terms and conditions.

20. During the year, the Board of Directors of the Company at its Board Meeting held on August 11, 2016, had approved a Composite Scheme of Arrangement between Aditya Birla Nuvo Limited (ABNL), Grasim Industries Limited (GIL) and the Company and their respective shareholders and creditors (‘Scheme’). The Scheme provides for the amalgamation of ABNL with GIL on a going concern basis, demerger of the financial services business from amalgamated GIL into the Company post the amalgamation and consequent listing of the equity shares of the Company. The approval for the Scheme had been received from the Competition Commission of India. The Hon’ble National Company Law Tribunal, Bench at Ahmedabad (NCLT) had directed holding of the meeting of the Shareholders of the Company on April 10, 2017 and the Shareholders of the Company have unanimously approved the Scheme. The Company has filed the Petition with the NCLT for approval of the Scheme. Pending approval of the Scheme, no effect has been given in the financial statements of the Company

21. During the year the Company acquired 969,616,080 Equity shares of Birla Sun Life Insurance Company Limited (BSLI) constituting 51% of the issued and subscribed share capital of BSLI, from Aditya Birla Nuvo Limited (ABNL), the Company’s Holding Company after obtaining requisite approvals from Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority of India (IRDA).

22. During the year ICRA rated Commercial Paper Program of ABFSL as “(ICRA) A1 ” and accordingly the Company raised funds through Commercial Paper amounting to Rs.500 Crore.

23. During the year the Company has introduced Long Term Incentive Plan for selective employees. Long Term Incentive plan includes future encashment or availment, at the option of the employee subject to the rules framed by the Company which are expected to be availed or encashed beyond 12 months from the end of the year and long term incentive payable to employees on fulfillment of criteria prescribed by the Company.

24. Cash transaction in specified bank notes:

The company did not hold or transact in Specified Bank Notes (SBN) during the period from November 08, 2016 to December 30, 2016. The SBN shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated November 08, 2016.

25. Disclosure as required under Annexure I of Master Direction - Core Investment Companies (Reserve Bank), Direction, 2016.

Schedule to the Balance Sheet of a non-deposit taking Core Investment Company (Refer Annexure 2).

26. Disclosure of details as required under Clause No. 19 of Master Direction - Core Investment Companies (Reserve Bank) Direction, 2016.

(a) Provisions as per CIC Guidelines - The Company has not provided any amount related standard assets, sub standard assets, doubtful and loss assets.

(b) Exposure to real estate sector, both direct and indirect - Nil

(c) Maturity pattern of assets and liabilities

27. Previous year’s figures have been regrouped / rearranged to confirm to the current year’s presentation, wherever necessary.