Notes to Accounts of Anand Rathi Share & Stock Brokers Ltd.

Mar 31, 2026

(o) Provisions, Contingent Liabilities and Contingent
Assets

Provisions are recognized when there is a present
obligation (legal or constructive) as a result of past
event; and it is probable that an outflow of resources
will be required to settle the obligation, in respect of
which a reliable estimate can be made.

Provisions (excluding retirement benefits) are not
discounted to its present value and are determined
based on best estimate required to settle the obligation
at the Balance Sheet date, taking into account the risks
and uncertainties surrounding the obligation.

Contingent Liabilities are possible but not probable
obligations as on the Balance Sheet date, based on
the available evidence. Contingent Liabilities are not
recognised in the standalone financial statements.

Contingent Assets are neitherrecognizednordisclosed.

(p) Share Based Payment

Equity settled share based payments to employees are
measured at the fair value of the equity instruments
at the grant date. The fair value determined at
the grant date of the equity settled share based
payments is expensed on a straight-line basis over
the vesting period, based on the company’s estimate
of equity instruments that will eventually vest, with a
corresponding increase in equity

(q) Earning per share

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders of the Company by the weighted

average number of equity shares outstanding
during the year.

Diluted earnings per share are computed using the
weighted average number of equity shares and
dilutive potential equity shares outstanding during
the year. For the purpose of calculating diluted
earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted
average number of shares outstanding during the
period are adjusted for the effects of all dilutive
potential equity shares.

(r) Cash Flow Statement

Cash flows statement is prepared using the indirect
method, whereby profit before tax is adjusted for the
effects of transactions of a non-cash nature item
of income or expenses associated with operating,
investing or financing cash flows. The cash flows
from operating, investing and financing activities of
the Company are segregated.

(B) Other terms & conditions:

1. Vehicle Loans:

Rate of interest for vehicle loan ranges from 7.35%p.a. to 9.00%p.a. Vehicle loans are secured against hypothecation
of vehicles and repayable in 36 to 84 monthly instalments.

2. Loans from Banks:

The interest rate for bank loans ranges from 8.10%p.a. to 10.20%p.a. These loans are secured against the margin
trading facility/trade receivables and are repayable on demand or within short term.

3. Other Loans:

The interest rate for bank loans ranges from 9.25%p.a. to 10.00%p.a. These loans are secured against the margin
trading facility and are repayable within the short term, i.e., less than or around 1 year.

4. Loans from Related Parties:

The interest rate for loans from related parties is 10.00%p.a. These loans are unsecured and repayable on demand.

5. There is no default as on the balane sheet date in repayment of borrowings and interest during the year.

Notes:

1. Refer Note no. 45 for Employee Stock option scheme for issue of shares to employees.

2. Refer Note no. 47 for initial public offer (IPO) issue.

(ii) Terms/Rights attached to the Equity Shares
Equity Shares

The Company has only one class of shares i.e. Equity Shares having a face value of H 5 per share. Each holder of these
equity share is entitled to one vote per share and distribution of dividends in the ratio of their holdings if approved by the
shareholders in their meeting.

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

(a) Capital Redemption Reserve

Capital Redemption Reserve represents the statutory reserve created when the capital is redeemed and the same will be
utilised for issue of bonus share as per provisions of the Companies Act, 2013.

(b) Debenture Redemption Reserve

Debenture Redemption Reserve represents a percentage of the amount of debentures issued during the year. The balance
will be utilised to repay the debt obligations on account of debenture issued as per provisions of Section 71(4) of the
Companies Act,2013 r.w Rule 18(7) of the Companies (Share Capital And Debentures) Rules, 2014.

(c) Securities Premium

Balance of Security premium consist of issue of shares over its face value. The security premium will be utilised as per
provisions of Section 52 of the Companies Act,2013.

(d) Equity settled Share-based payment Reserve

Equity settled Share-based payment Reserve is created as required by ”Ind AS 102 - Shared Based Payments” on grant
of options under the Employee Stock Option Scheme. This reserve is created by debiting the statement of profit and
loss account with the value of share options granted to the employees by the Company. Once shares are issued by the
Company, the amount in this reserve will be transferred to Share capital, Securities premium or retained earnings.

(e) Retained earnings

Retained earnings comprises of the amounts that can be distributed by the Company as dividends to its equity share
holders or as distribution of surplus assets.

(f) Other Comprehensive Income (OCI)

OCI includes remeasurement of defined employee benefit plan on account of Actuarial Gains and Losses as per Ind AS 19
Employee Benefits.

Discount Rate:

Discount Rate for this valuation is based on Yield to Maturity (YTM) available on Government bonds having similar term to
decrement-adjusted estimated term of liabilities.

For valuations at 31 March, 2026 the estimated term of liabilities is 11.57 years (for all group employees), corresponding
to which YTM on government bonds is 7.30%, after rounding to nearest 0.05%.

Expected rate of return on assets:

It is the average long term rate of return expected on investments of the Trust Fund.

Salary Escalation Rate:

Salary escalation assumption is based on estimates of over all long-term salary growth rates after taking in to consideration
expected earnings inflation as well as performance and seniority related increases.

Withdrawal Rate:

Assumptions regarding withdrawal rates is based on the estimates of expected long term employee turnover within
the organization.

Mortality Rate

It is based on Indian Assured Lives Mortality (2012-14) Ult. as issued by Institute of Actuaries of India for the acturial valuation.

Sensitivity Analysis

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring
at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption
while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used
to calculate the liability recognized in the Balance Sheet has been applied. The methods and types of assumptions used in
preparing the sensitivity analysis did not change compared with the previous year.

Asset Liability Matching Strategy

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

The trustees of the plan have outsourced the investment management of the fund to an Insurance Company. The Insurance
Company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which
is within the permissible limits prescribed in the insurance regulations. 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.

There is no compulsion on the part of the Company to fully prefund the liability of the Plan. The Company’s philosophy is to
fund these benefits based on its own liquidity and the level of underfunding of the plan.

B Defined Contribution Plans

Amount recognized as an expense under the head "Contribution to Provident and other Funds” in note 33 - Employee
Benefits Expense of Statement of Profit and Loss towards Company''s Contribution to Provident Fund is H 94.71 Millions
(FY. 2024-25 H 77.04 Millions).

C New Labour code

The Government of India has codified 29 existing labour legislations into a unified framework comprising four labour
Codes, viz. Code on Wages 2019, Codes on Social Security 2020, Industrial Relations Code 2020, and Occupational Safety,
Health and Working conditions Code 2020 (Collectively referred to as the New Labour Codes). These Codes have been
made effective from November 2025. Based on management''s assessment and actuarial valuation, there is no material
incremental impact on arising from the implementation of the New Labour Codes.

45 EMPLOYEE STOCK OPTION SCHEME

Description of share-based payment arrangements

The Company has ARSSBL Employee Stock Option Plan 2023, under which ESOPs have been granted to eligible employees to be
vested from time to time.

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

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

Measurement of fair values

The fair value of the employee share options has been measured using Net Assets Value Approach (NAV), Discounted Cash Flow
(DCF) and Comparable Company Analysis (CCA). The fair value of the options and the inputs used in the measurement of the
grant-date fair values of the equity-settled share based payment options granted during the year are as follows:

46 The Company, as a process, reviews and ensures to make adquate provisions for material forseeable loss, if any, on all long-term
contracts. As on the reporting date there is no material foreseeable loss on any long-term contract.

47 The Company completed its Initial Public Offering (''IPO'') of H 7,450.00 Millions through fresh issue of 1,80,10,692 equity
Shares of face value of H 5 each at a premium of H 409 per equity share i.e. an offer price of H 414 per equity share. Pursuant
to the aforesaid allotment of equity shares, the issued, subscribed and paid- up capital of the Company stands increased to
H 313.63 Millions (6,27,25,250 Equity shares of H 5 each) and securities premium stands increased to H 9,127.52 Millions. These
equity shares were allotted on September 26, 2025 and listed on National Stock Exchange of India Limited and BSE Limited on
September 30, 2025.

Note: As per the Prospectus dated September 25, 2025 filed by the Company with the ROC/SEBI, an estimated amount of
H 415 million was earmarked towards issue-related expenses out of the IPO proceeds. However, as of the year ended March
31, 2026, the actual issue-related expenses amounted to H 410.65 million only. Consequently, the unutilized balance has been
reallocated to General Corporate Purposes (GCP).

48 MONITORING AGENCY

Pursuant to Regulation 41 of SEBI ICDR Regulations, CRISIL Ratings Limited was appointed as a Monitoring Agency. The
Monitoring Agency has submitted its reports for the relevant quarters, which have been reviewed by the Audit Committee and
taken on record by the Board of Directors.

50 DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated August 26, 2008 which
recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs
Memorandum Number as allocated after filing of the Memorandum in accordance with the ''Micro, Small and Medium Enterprises
Development Act, 2006’ (''the Act’). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at
September 30, 2024 and March 31,2025 has been made in the financial statements based on information received and available
with the Company. Further in view of the Management there is no interest payable in accordance with the provisions of the Act.
The Company has not received any claim for interest from any supplier as at the balance sheet date.

51 SEGMENT INFORMATION

Operating Segment Based on the management approach as defined in IND AS 108 - Operating Segments, the Chief Operating
Decision Maker ("CODM”) evaluates the company’s performance and allocates resources based on an analysis of various
indicators of business segment/s in which the company operates. The Company is primarily engaged in the business of Stock
Broking which the management and CODM recognise as the sole business segment. Hence disclosure of segment-wise
information is not required and accordingly not provided.

The other applicable information applicable where there is only one segment as required in accordance with IND AS 108 -
Operating Segments, are as under:

(a) The company does not have the information in respect of the revenues from external customers for each product and
service, or each group of similar products and services, and the cost to develop such system will be highly excessive.
Accordingly such information is not disclosed as allowed by para 32 of IND AS 108.

53 FINANCIAL INSTRUMENTS - RISK MANAGEMENT
Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- liquidity risk;

- credit risk; and

- market risk

Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The board of directors has established the processes to ensure that executive management controls
risks through the mechanism of property defined framework.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed by the board annually to reflect changes in market conditions and the Company’s activities. The Company, through
its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in
which all employees understand their roles and obligations.

The Company''s Audit Committee oversees compliance with the Company’s risk management policies and procedures, and
reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee
is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management
controls and procedures, the results of which are reported to the Audit Committee.

i) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is
to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the cash flows
generated from operations to meet obligations when due and to close out market positions. Due to the dynamic nature
of the underlying businesses, the Company''s treasury maintains flexibility in funding by maintaining availability under
committed credit lines.

Management monitors rolling forecasts of the Company’s liquidity position comprising the undrawn borrowing facilities
and cash and cash equivalents on the basis of expected cash flows. This is generally carried out in accordance with
practice and limits set by the Company. In addition, the Company’s liquidity management policy involves projecting cash
flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet
liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Exposure to liquidity risk

The table below analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual
maturities for all financial liabilities

ii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company’s receivables from customers, security deposits and
investment securities.

Customer credit risk is managed by company as per its policy, procedures and control relating to customer credit risk.
Credit quality of a customer credit risk is assesed based on an extensive credit rating scoreboard and individual credit
limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and all
possible steps taken to timely realise them.

The credit risk on Fixed Deposits with Banks, Bank Balances, Investments in Mutual Fund and Derivative Financial
Instruments is limited because the counterparties are Banks, Exchanges and Mutual Fund houses who are structured
market players.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers the factors that may influence the credit risk of its customer base, including the default risk of
the industry and country in which customers operate.

The Company Management has established a credit policy under which each new customer is analyzed individually for
creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s
review includes market check, industry feedback, past financials and external ratings, if they are available, and in some
cases bank references.

The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade and
other receivables. The management uses a simplified approach for the purpose of computation of expected credit loss for
trade receivables.

iii) 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. Market Risk comprises three types of risk: a.) Interest Rate Risk, b.) Currency Risk and c.) Other Price Risk
such as equity price risk etc.

a) Currency Risk

Currency risk is not there, as the Company''s business activities are within India and do not have exposure in
foreign currency.

b) Interest rate risk

The Company is exposed to Interest risk if the fair value or future cash flows of its financial instruments will fluctuate
as a result of changes in market interest rates. Fair value interest rate risk is the risk of changes in fair values of fixed
interest bearing investments because of fluctuations in the interest rates.

55 The Board of Directors in their meeting held on April 14, 2026 have proposed a dividend of H 5 per equity share for the year ended

March 31 2026, subject to the approval of the shareholders at the ensuing Annual General Meeting.

56 ADDITIONAL REGULATORY INFORMATION

a) The Company does not have any Benami property and no proceedings have been initiated or pending against the Company
for holding any Benami property, under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the rules
made thereunder.

b) The Company does not have any transactions during the year with the struck off companies or balance at the end of year
with such companies.

c) The Company has not traded or invested in Crypto currency or Virtual Currency during the current and previous financial year.

d) There is no "undisclosed income” which has been reported by the Company during the assessment.

e) The Company has not been declared wilful defaulter by any Bank or financial Institution or other lender.

f) There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

156 Anand Rathi Share and Stock Brokers Limited

g) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause
(87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

h) 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(s) or entity(entities), including foreign entities ("Intermediaries”),with
the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 like on behalf of the Ultimate Beneficiaries, other than those disclosed
in the notes to accounts.

i) No funds have been received by the Company from any person(s) or entity(entities), including foreign entities ("Funding
Parties”), with the Understanding, whether recorded in writing or otherwise, that the Company shall, whether 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, other than
those disclosed in the notes to accounts.

57 The figures of the previous years have been regrouped / rearranged wherever necessary.