SBI Funds Management Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2026

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

18.5 On December 19, 2025, the Company had allotted 1,526,495,460 bonus equity shares of I 1/- each (fully paid up) in the proportion of 3 bonus equity share for every 1 fully paid up equity share to eligible shareholders whose names appeared in the Register of Members / Statement of Beneficial Owner as on December 18, 2025, being the record date fixed for this purpose, based on the approval of the shareholders of the Company at the Twenty-Fourth Extra-Ordinary General Meeting held on December 9, 2025 by capitalization of an aggregate amount of I 1,526.50 million standing to share premium account. The said bonus equity shares rank pari passu in all respects with the existing equity shares of the Company.

18.6 11,922,312 (post-bonus) [March 31, 2025: 3,338,469] equity shares of I 1 each are reserved for issuance towards outstanding ESOP (Refer Note No 33)

18.7 During the current year 2,123,601 nos. of equity shares (year ended March 31, 2025: 1,868,925 nos.) at a face value of I 1 each have been issued to employees on exercise of ESOP.

18.8 The Board of the Company in its meeting held on February 16, 2026 , has identified State Bank of India, Amundi India Holding and Amundi Asset Management as the promoters of the Company. However, Amundi Asset Management does not hold any shares in the Company

General reserve: General reserve is created from time to time by transferring profits from retained earnings.

Share option outstanding account (Employee stock options): The grant date fair value of equity-settled share-based payment transactions with employees are recognised in the Statement of Profit and Loss with the corresponding credit to this account over the vesting period. The amounts recorded in Share Options Outstanding Account are transferred to Securities Premium upon exercise of stock options by the employees.

Securities premium: The securities premium is used to record premium (amount received in excess of Face Value of Equity Shares) on issue of shares and also includes amount transferred from Share Option Outstanding Account upon exercise of options by employees

Retained earnings: Retained earnings represents the amount of accumulated earnings of the Company.

*During the current year, the Company has paid interim dividend of I 35,618.23 million @ I 70/- per equity share (pre-bonus) and interim dividend of I 19,553.55 million @ I 9.60/- per equity share (post-bonus). [Interim dividend I 11,180.59 million @ I 22.00/- per equity share (pre-bonus) during the year ended March 31, 2025] as per the Company''s dividend policy.

Foreign currency translation reserve: Foreign currency translation reserve represents the translation difference of IFSC branch operations for the period ended March 31, 2025. (Refer Note 35)

Other comprehensive income: It consists of remeasurement of net defined benefit liability/asset of employee benefits.

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

Management judgement is required in determining provision for income tax, deferred tax assets and liabilities and recoverability of deferred tax assets. The recoverability of deferred tax assets is based on estimates of taxable income and the period over which deferred tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.

28 Earnings per share**

Basic Earnings Per Share (''EPS'') is calculated by dividing the profit after tax for the year attributable to equity shareholders of the Company 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 attributable to equity shareholders of the Company adjusted for the effects of all dilutive potential equity shares 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 the conversion of all the dilutive potential equity shares into ordinary shares. There is no effect of dilutive potential equity shares on profit after tax for the year attributable to equity shareholders of the Company.

29 Contingent liabilities and capital commitments		(I In millions)
Particulars	As at	As at
	March 31, 2026	March 31, 2025
A. Contingent Liabilities
i. Claims against the company not acknowledged as debts	4.62	23.08
ii. Disputed liability (tax and penalty)*	1,319.30	1,319.30
iii. Performance bank guarantee	437.67	313.67
Subtotal (A)	1,761.59	1,656.05

Defined benefit plan - Gratuity

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is for employees, which requires contributions to be made to a separately administered fund (through insurer managed scheme). The fund has the form of a trust and it is governed by the Board of Trustees. The Board of Trustees is responsible for the administration of the plan assets and for the definition of the Investment strategy. The contribution is guided by Rule 103 of Income Tax Rules, 1962. Employee benefits relating to employees at foreign Rep. office are valued and accounted for as per their respective local laws.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the defined benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Risks associated with defined benefit plan

Interest Rate Risk

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

Salary Risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. An increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk

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

Asset Liability Matching Risk

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

Mortality Risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan do not have any longevity risk.

Concentration Risk

Plan is having a concentration risk as all the assets are managed through insurance policies. Although probability of default is very low by Insurance companies as they have to follow regulatory guidelines.

Gratuity is managed through a separate trust fund and contribution is guided by Rule 103 of Income Tax Rules 1962.

37 Segment Reporting

The Company is in the business of providing asset management services to SBI Mutual Fund, Alternative Investment Fund and Portfolio Management and Advisory Services to clients. The primary segment is identified as asset management services. As such, the Company''s financial statements are largely reflective of the asset management business and accordingly there are no separate reportable segments as per Ind AS 108, Operating Segment. Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM''s function is to allocate the resources of the entity and assess the performance of the operating segment of the Company. All assets of the Company are domiciled in India.

ii. The hierarchy used is as follows:

Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 — Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 — Inputs are not based on observable market data (unobservable inputs). 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.

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

I n order to assess Level 3 valuations, the management reviews the performance of the alternative investment funds and its investment in equity shares on a regular basis by tracking their latest available financial statements/ financial information, valuation report of independent valuers, recent transaction results etc. which are considered in valuation process.

B. Financial Risk Management

The Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The purpose of risk management is to identify potential problems before they occur, so that risk-handling activities may be planned and invoked as needed to manage adverse impacts on achieving objectives. Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments other than those with carrying amounts that are reasonable approximations of fair value.

I. Liquidity Risk

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. Such scenarios could occur when funding needed for illiquid asset positions is not available to the Company on acceptable terms.

To limit this risk, management has adopted a policy of managing assets with due consideration to liquidity and monitoring future cash flows and liquidity on a regular basis. The Company has developed internal control processes for managing liquidity risk. The Company maintains sufficient bank balance and highly marketable securities such as liquid/ ultra-short duration and other debt funds. The Company assesses the liquidity position under a variety of scenarios, giving due consideration to stress factors relating to both the market in general and specifically to the Company.

II. Credit Risk

The Company avoids concentration of credit risk by spreading them over several counterparties with good credit rating profile and sound financial position. Investment in debt securities being at amortised cost include (i) G sec Strips which do not carry any risk being sovereign in nature and (ii) bonds of high credit quality public sector banks. Company''s exposure and credit ratings of its counterparties are monitored on an ongoing basis.

Exposure to credit risk

The carrying amount of financial assets represents maximum amount of credit exposure. The maximum exposure to credit risk is as per the table below, it being total of carrying amount of cash and cash equivalent, other bank balances, trade receivables and financial assets measured at amortised cost.

Expected Credit Loss (ECL) on financial assets

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument)

For trade receivables Company applies ''simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. The Company has determined based on historical experience and expectations that the ECL on its trade receivables is insignificant and was not recorded. At every reporting date, these historical default rates are reviewed and changes in the forward-looking estimates are analysed.

For other assets, the Company uses 12-month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

The Company has four types of financial assets that are subject to the expected credit loss:

• Cash and cash equivalents

• Trade receivables

• Loans

• Investment in debt securities measured at amortised cost Trade and receivables

Exposures to customers'' outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of collection from counterparties on timely basis reflects low level of credit risk. As the Company has a contractual right to such receivables as well as control over preponderant amount of such funds due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management believes that the unimpaired amounts that are past due by more than 1 year (mainly dues from GOI/ GOI undertakings /PSUs ) are still collectible in full, based on historical payment behaviour.

Cash And Cash Equivalents

The Company holds cash and cash equivalents and other bank balances as per note 2 and 3. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high.

Investment in debt securities measured at amortised cost

The Company avoids concentration of credit risk by spreading them over several counterparties with good credit rating profile and sound financial position. Investment in debt securities being at amortised cost include (i) G sec Strips which do not carry any risk being sovereign in nature and (ii) bonds of highly rated public sector banks. Company''s exposure and credit ratings of its counterparties are monitored on an ongoing basis.

Loans

Staff loans and receivables have been considered to enjoy the low credit risk as they meet the following criteria:

i) they have a low risk of default,

ii) the counterparty is considered, in the short term, to have a strong capacity to meet its obligations in the near term, and

iii) the Company expects, in the longer term, that adverse changes in economic and business conditions might, but will not necessarily, reduce the ability of the counterparty to fulfil its obligations.

III. Market Risk

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

i. Price risk management:

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, whether caused by factors specific to an individual investment, its issuer or the market. The Company''s exposure to price risk arises from investments in equity securities, debt securities, units of mutual funds, and alternative investment funds which are classified as financial assets at Fair Value Through Profit and Loss. The following is the Company''s exposure to price risk

Foreign currency sensitivity analysis

The following table details the Company''s sensitivity to a 10% increase and decrease in I against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the I strengthens 10% against the relevant currency. For a 10% weakening of the I against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year and considering the size of business and size of exposure in Foreign currency is immaterial.

iii. Interest rate risk management:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s investments are primarily in fixed rate interest instruments. Accordingly, the exposure to interest rate risk is insignificant.

41 Leases

The Company has entered into leasing arrangements for premises, vehicles and computers. Majority of the leases are cancellable by the Company. Right-of-use asset has been included under the line ''Property, Plant and Equipment'' and Lease liabilities has been included under ''Other financial liabilities'' in the Standalone Balance Sheet.

(iii) All the future cash flows to which the lessee is potentially exposed are reflected in the measurement of lease liabilities.

(iv) The Company currently does not have any sale and lease back transactions.

42 Capital Management

Equity share capital and other equity are considered for the purpose of Company''s capital management. The Company manages its capital in a manner which enables it to safeguard its ability to continue as a going concern and to optimise returns to the Shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain stakeholders'' confidence.

The funding requirements are met through operating cash flows and other equity. The management monitors the return on capital and the Board of Directors monitors the level of dividends paid to shareholders of the Company as per the dividend policy. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

Certain minimum net worth requirements for the business have been laid down by SEBI (for the Company). The same is monitored on regular basis and have been complied with.

As of March 31, 2026 and March 31, 2025, the Company has only one class of equity shares and has no debt. In the absence of any debt, the monitoring of debt equity ratio may not be appropriate for the Company.

As of March 31, 2026 the equity share capital is I 2,036.83 million [post bonus - refer note 18.5] (March 31, 2025: I 508.21 million) and other equity is I 56,979.18 million (March 31, 2025: I 82,314.52 million).