Notes to Accounts of EAAA India Alternatives Ltd.

4.15 Provisions and other 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
Standalone Financial Information 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.

4.16 Income tax expenses

Income tax expense represents the sum of the tax
currently payable and deferred tax.

4.16.1. Current tax

Current tax assets and liabilities for the current and
prior years are measured at the amount expected to
be recovered from, or paid to, the taxation authorities.
The tax currently payable is based on taxable profit
for the year. Taxable profit differs from ‘profit before
tax’ as reported in the statement of profit and loss
because of items of income or expense that are
taxable or deductible in other years and items that
are never taxable or deductible. The Company’s
current tax is calculated using tax rates that have
been enacted or substantively enacted by the end of
the reporting period.

4.16.2. Deferred tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the Standalone Financial Information and the
corresponding tax bases used in the computation of
taxable profit.

Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets
are generally recognised for all deductible temporary
differences to the extent that it is probable that
taxable profits will be available against which those
deductible temporary differences can be utilised.

Deferred tax assets are also recognised with respect
to carry forward of unused tax losses and unused
tax credits to the extent that it is probable that future
taxable profit will be available against which the
unused tax losses and unused tax credits can be
utilised.

It is probable that taxable profit will be available
against which a deductible temporary difference,
unused tax loss or unused tax credit can be
utilised when there are sufficient taxable temporary
differences which are expected to reverse in the
period of reversal of deductible temporary difference
or in periods in which a tax loss can be carried
forward or back. When this is not the case, deferred
tax asset is recognised to the extent it is probable
that:

The Company will have sufficient taxable profit in
the same period as reversal of deductible temporary
difference or periods in which a tax loss can be
carried forward or back; or

The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow
all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at
the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised,
based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the
reporting period.

The measurement of deferred tax liabilities and
assets reflects the tax consequences that would
follow from the manner in which the Company
expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets
and liabilities.

4.16.3. Current and deferred tax for the year

Current and deferred tax are recognised in profit
or loss, except when they relate to items that are
recognised in other comprehensive income or directly
in equity, in which case, the current and deferred tax
are also recognised in other comprehensive income
or directly in equity respectively.

4.16.4. Goods and services tax /value added taxes
paid on acquisition of assets or on incurring
expenses

Expenses and assets are recognised net of the
goods and services tax/value added taxes paid,
except:

- When the tax incurred on a purchase of assets
or services is not recoverable from the taxation
authority, in which case, the tax paid is recognised
as part of the cost of acquisition of the asset or as
part of the expense item, as applicable

- When receivables and payables are stated with
the amount of tax included

The net amount of tax recoverable from, or payable
to, the taxation authority is included as part of
receivables or payables in the balance sheet.

55.1 Critical accounting judgements and key sources
of estimation uncertainty

In the application of the Company''s accounting
policies, which are described in note 4, the
management is required to make judgements,
estimates and assumptions that affect the reported
amount of revenues, expenses, assets and liabilities,
and the accompanying disclosures, as well as the
disclosure of contingent liabilities, about the carrying
amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and
associated assumptions are based on historical
experience and other factors that are considered
to be relevant. Actual results may differ from these
estimates.

The judgements, estimates and underlying
assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the
revision affects only that period, or in the period of
the revision and future periods if the revision affects
both current and future periods.

a) Critical judgements in applying accounting
policies

The following are the critical judgements, that
the management has made in the process of
applying the Company''s accounting policies
and that have the most significant effect on the
amounts recognised in the Standalone Financial
Information.

> Business model assessment

Classification and measurement of financial
assets depends on the results of the
SPPI and the business model test. The
Company determines the business model
at a level that reflects how Company’s
financial assets are managed together to
achieve a particular business objective. This
assessment includes judgement reflecting
all relevant evidence including how the
performance of the assets is evaluated and
their performance is measured, the risks
that affect the performance of the assets
and how these are managed and how the
managers of the assets are compensated.

The Company monitors financial assets
measured at amortised cost that are
derecognised prior to their maturity to
understand the quantum, the reason for
their disposal and whether the reasons are
consistent with the objective of the business
for which the asset was held. Monitoring
is part of the Company’s continuous
assessment of whether the business model
for which the remaining financial assets
are held continues to be appropriate and
if it is not appropriate whether there has
been a change in business model and so a
prospective change to the classification of
those assets.

> Consolidation of structured entities

A structured entity is an entity that has been
designed so that voting or similar rights are
not the dominant factor in deciding who
controls the entity, such as when any voting
rights relate to administrative tasks only
and the relevant activities are directed by
means of contractual arrangements. In the
context of the Company, structured entities
comprises alternative investment funds /
schemes thereof. The Company consolidates
the structured entities that it controls. When
making this judgement, the Company also
considers voting and similar rights available
to itself and other parties, who may limit the
Company’s ability to control, including rights
to appoint, reassign or remove members
of the structured entity’s key management
personnel who have the ability to direct the
relevant activities, the exposure to variability
of returns and whether the Company has the
ability to use its power to affect the amount
of the Company’s returns i.e. the variability
of returns in relation to the total returns of the
investee entity.

b) Key sources of estimation uncertainty

The following are the key assumptions
concerning the future, and other key sources
of estimation uncertainty at the end of the
reporting period that may have a significant
risk of causing a material adjustment to the
carrying amounts of assets and liabilities within
the next financial year, as described below. The

Company based its assumptions and estimates
on parameters available when the Standalone
Financial Information 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.

• Fair value of financial instruments

The fair value of financial instruments 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 another valuation technique. When
the fair values of financial assets including
Variable Additional Return (VaR) from the
funds.and financial liabilities recorded in
the Standalone Statement of Assets and
Liabilities cannot be derived from active
markets, they are determined using a variety
of valuation techniques that include the use
of valuation models. The inputs to these
models are taken from observable markets
where possible, but where this is not feasible,
estimation is required in establishing fair
values. Judgements and estimates include
considerations of liquidity and model inputs
related to items such as credit risk (both
own and counterparty), funding value
adjustments, correlation and volatility.

In accordance with the principles under
Ind AS 109 (Financial Instruments) and
Ind AS 113 (Fair Value Measurement), the
Variable Additional Return (VaR) arising
from investments in Alternative Investment
Funds (AIFs) or Partnership Interests is
recognised through profit or loss as part of
the net gain or loss from fair value changes.
The recognition of VaR is guided by the
waterfall distribution mechanism specified
in the respective fund documentation and
as per Company’s policy. Subject to these
terms, the VaR is estimated and recognised

progressively over the remaining life of
the fund, up to the expected date of the
realisation.

• 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 models with a number of underlying
assumptions regarding the choice of variable
inputs and their interdependencies. Elements
of the ECL models that are considered
accounting judgements and estimates
include:

¦ Probabilities of defaults (PDs) the
calculation of which includes historical
data, assumptions and expectations of
future conditions.

¦ 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 life-time
expected credit loss model basis and the
qualitative assessment.

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

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

¦ Determination of associations between
macroeconomic scenarios and, economic
inputs, such as unemployment levels
and collateral values, and the effect on
PDs, exposure at defaults and loss given
defaults (LGDs).

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

¦ It is Company’s policy to regularly
review its models in the context of actual
loss experience and adjust when
necessary.

5.2 New and Amended Standards

The Ministry of Corporate Affairs (“MCA”) notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules, as issued from time to time. During
the year ended March 31, 2026, MCA has notified
amendments to Ind AS 1 - Presentation of Financial
Statements, Ind AS 7 - Statement of Cash Flows,
Ind AS 107 - Financial Instruments: Disclosures and
Ind AS 12 - Income Taxes, relating to classification
of liabilities, supplier finance arrangements and
Pillar Two tax framework, applicable to the Company
w.e.f. April 1,2025. The Company has evaluated
the impact of these amendments and based on its
assessment, does not expect any material impact
on its financial statements, other than as disclosed
if applicable.

c. Terms/rights attached to Instruments entirely equity in nature

i) The 23,00,00,000 CCD''s were converted into 1,32,94,797 Equity share''s in the ratio of 173:10 i.e ten Equity Share
alloted for every 173 CCD''s on May 08, 2024 approved by Board at its meeting held on May 08, 2024.

The Equity Shares alloted on the conversion of the CCDs shall rank pari passu with existing Equity Shares of the Company.
The Equity shares shall be issued to the CCD Holders with absolute title and free and clear of any encumbrance.

f. Terms/rights attached to equity shares

The Company has only one class of shares, referred to as equity shares, having a par value of ''5. Each holder of equity
shares is entitled to one vote per share held. 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.

(i) Securities premium

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

(ii) Share Option Reserve

The share option reserve comprises the cumulative value of employee services received for the issue of the options
under the share plans of the ultimate Holding Company and the Company.

(iii) Debenture Redemption Reserve

The Companies Act. 2013 requires companies that issue debentures to create a debenture redemption reserve from
annual profits until such debentures are redeemed. The Company is required to transfer a specified percentage (as
provided in the Companies Act 2013) of the outstanding redeemable debentures to debenture redemption reserve. The
amounts credited to the debenture redemption reserve may not be utilised except to redeem debentures. On redemption
of debenture the amount may be transferred from debenture redemption reserve to reserved earnings.

Note:-

(i) The ultimate Holding Company (Edelweiss Financial Services Limited (“EFSL”)) has Employee Stock Option Plans in
force. Based on such ESOP schemes, parent entity has granted an ESOP option to acquire equity shares of EFSL that
would vest in a graded manner to company’s employees. Based on group policy / arrangement, EFSL has charged
the fair value of such stock options, Company has accepted such cross charge and recognised the same under the
employee cost.

(ii) The Board of Directors at their meeting held on November 30, 2024 and February 18, 2026 had approved the grant of
stock options under “EAAA India Employee Stock Option Scheme 2024’ (“ESOP 2024” / “Scheme”)”.

(iii) The Salaries wages and bonus includes a provision of bonus and VaR related bonus of ''19,744.33 lakhs (2025
''13,418.40 lakhs) to be paid on realising Variable Additional Return.

(iv) The Government of India, vide notification dated November 21, 2025, has notified the new Labour Code, basis which
the Company has reassessed its employee benefit obligations based on the revised definition of wages and expanded
eligibility criteria. Accordingly, based on actuarial valuation and management estimates, the Company has recognised
an incremental expense of '' 764.64 lakhs during quarter and year ended March 31, 2026 on account of past service
cost in accordance with Ind AS 19 - Employee Benefits and disclosed as an exceptional item. The Company continues
to monitor developments relating to the implementation of the New Labour Codes and will review its estimates and
assumptions as further clarifications and Rules are notified.

44 SEGMENT REPORTING

The Company Operates in a single reportable segment of Investment manager to Alternative Investment Funds and Advisory
services to offshore funds business as per the requirement of Ind AS 108 - Operating Segment.

45 RETIREMENT BENEFIT PLAN

A) Defined contribution plan (Provident fund and National Pension Scheme):

Amount of ''635.96 lakhs (P.Y: ''539.88 lakhs ) is recognised as expenses and included in “Employee benefit expense”
- Note. 39 in statement of Profit and loss.

B) Defined benefit plan (Gratuity):

The following tables summarise the components of the net benefit expenses recognised in the statement of profit and
loss and the funded status and amount recognised in the balance sheet for the gratuity benefit plan.

47 CONTINGENT LIABILITIES AND COMMITMENTS47.1 CONTINGENT LIABILITIES

- With regards to taxation, based on the order received from TDS office an appeal is being filed pertaining to a demand of
''310.82 lakhs for AY 2024-25.

- Litigation pending against the Company amounts to ''22.48 lakhs as at March 31,2026 (March 31,2025: ''22.48 lakhs)

47.2 CAPITAL COMMITMENTSA. Uncalled liabilities

Uncalled liability(undrawn commitment in case of Units of AIF) as at March 31,2026 is ''42,313.98 lakhs (March 31,2025:
''30,340.34 lakhs).

Trail commission payable towards selling and distribution expense for fund raised in various AIF strategies not accrued
and not due as at March 31,2026 is ''42,511.45 lakhs (March 31,2025: ''19,811.26 lakhs).

B. Estimated amounts of contracts

Estimated amounts of contracts Estimated amounts of contracts remaining to be executed on capital account and not
provided for as at March 31,2026 ''215.85 lakhs (March 31,2025: ''Nil lakhs).

48 A previously contingent liability amounting to ''61.43 lakhs is being settled by the Company vide SEBI''s settlement
order.

50 SHARE BASED PAYMENTS: EMPLOYEE STOCK OPTION PLANS

EAAA India Alternatives Ltd. ("EAAA" hereafter), has recognised share based payment expenses for the year ended March
31,2026 based on fair value as on the grant date calculated as per option pricing model. The grants represent equity-settled
options under the ‘EAAA India Employee Stock Option Scheme 2024 (hereafter referred to as,"ESOP 2024" or "ESOPs").

The EAAA Group has granted ESOPs under the plan viz., ESOP 2024 to its employees on an equity settled basis as tabulated
below. The ESOPs provide a right to its holders (i.e., EAAA group employees) to purchase one EAAA share for each option
at a pre-determined strike price on the expiry of the vesting period. The ESOP hence represents an European call option that
provides a right but not an obligation to the employees of the EAAA group to exercise the option by paying the strike price at
any time on completion of the vesting period, subject to an outer boundary on the exercise period.

51 CAPITAL MANAGEMENT

The primary objectives of the Company’s capital management policy are to ensure that the Company complies with externally
imposed capital requirements and maintains strong credit ratings and healthy capital ratios in order to support its business
and to maximise shareholder value.

The Company manages its capital structure and makes adjustments to it according to changes in economic conditions and the
risk characteristics of its activities. In order to maintain or adjust the capital structure, the Company may adjust the amount of
dividend payment to shareholders, return capital to shareholders or issue capital securities. No changes have been made to
the objectives, policies and processes from the previous period/year. However, they are under constant review by the Board.

The Company is not subject to any regulatory capital requirements.

52 FAIR VALUES OF FINANCIAL INSTRUMENTS:

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.

52.1 ASSETS AND LIABILITIES BY FAIR VALUE HIERARCHY

The following table shows an analysis of financial instruments recorded at fair value by level of the fair value hierarchy

52.3 FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE

Fair value information of financial assets and financial liabilities not measured at fair value has not been presented as the
carrying amount is a reasonable approximation of the fair value due to their short term nature.

52.4 UNOBSERVABLE INPUTS USED IN MEASURING FAIR VALUE CATEGORISED WITHIN LEVEL 3

Following tables set out information about significant unobservable inputs used at respective balance sheet dates in measuring
financial instruments categorised as Level 3 in the fair value hierarchy:

53 RISK MANAGEMENT

The Company''s principal financial liabilities comprise trade and other payables. The Company''s principal financial assets
include trade and other receivables, cash and cash equivalents that derive directly from its operations. The Company also
holds investments in units of Alternative investment funds (AIFs), Non convertible debentures (NCDs,) and equity instruments.

The Company is exposed to credit risk, liquidity risk and market risk. The Company’s senior management oversees the
management of these risks. Risk management is an integral part of planning and execution of Companies business strategies.

B Liquidity risk and funding management

Liquidity or funding risk is the risk that an enterprise will encounter difficulty in raising funds to meet commitments
associated with financial instruments. Liquidity risk may result from an inability to sell a financial asset quickly at close
to its fair value. The table below summarise the maturity profile of the Company’s financial liabilities at the end of the
reporting period based on contractual undiscounted payments.

(ii) Currency risk

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.
Foreign currency risk arise majorly on account of foreign currency borrowings.

The table below indicates the currencies to which the Company had significant exposure at the end of the reported
period/year. The analysis calculates the effect of a reasonably possible movement of the currency rate against the
'' (all other variables being constant) on the statement of profit and loss (due to the fair value of currency sensitive non¬
trading monetary assets and liabilities) and equity (due to the change in fair value of currency swaps and forward foreign
exchange contracts used as cash flow hedges).

54 UNCONSOLIDATED STRUCTURED ENTITIES

The Company is a SEBI registered Investment manager for co-investment portfolio management services and various
Alternative investment Funds (AIFs) (together referred to as "entities"). The Investment management rights relate to
administrative tasks only and relevant activities are directed by contractual arrangements. These entities do not meet the
consolidation criteria as given in note 5.1.b of the material accounting policies.

The following tables show the carrying amount of the Group’s recorded interest in its consolidated balance sheet as well as
the maximum exposure to risk (as defined in below) due to these exposures in the unconsolidated structured entities and
asset management activities:

Notes:

i) Net profit ratio = Profit after Tax / Total Income

ii) Current Ratio = Current Assets / Current Liabilities

iii) Debt-equity Ratio = Total debt (Debt securities Borrowings other than debt securities) / Net worth

iv) Debt Service Coverage Ratio = Earnings before exceptional items and tax/ (interest Expense Principal repayment in

next six months)

v) Interest Service Coverage Ratio = Earnings before exceptional items and tax/interest expense

vi) Return on Equity = Profit after Tax / (Average shareholders fund)

vii) Return on Equity = Profit after Tax / (Average shareholders fund - Average intangible assets)

viii) Total debt to Total assets = (Debt securities Borrowings other than debt securities) / Total assets

(ii) Title deeds of Immovable Properties not held in name of the Company

The Company do not have any immovable properties where title deeds are not held in the name of the Company.

(iii) Loans and Advances

There are no loans or advances in the nature of loans which are granted to promoters, directors, KMPs and the related
parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

(iv) Details of Benami Property held

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

(v) Security of current assets against borrowings

The Company has borrowed from Market Linked Debentures & Non Convertible Debentures on the basis of security
of current assets and the quarterly returns filed by the Company with the lenders are in agreement with the books of
accounts of the Company.

(vi) Wilful Defaulter

The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.

(vii) Relationship with Struck off Companies

The Company do not have any transactions with companies struck off.

(viii) Registration of charges or satisfaction of charges with Registrar of Companies (ROC)

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

(ix) Utilisation of Borrowed funds and share premium:

(A) During the period, the Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiary) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiary

(B) During the period, the Company has not received any fund from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) 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

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

(x) The Company does not have any long term contract including derivative contract for which there were any material
foreseeable losses.

(xi) The Board of Directors at its meeting held on November 03, 2025, have approved an interim dividend of ''15.00 per
equity share (on face value of ''5 per equity share).

(xii) The Company has declared and paid an interim dividend of ''17.00 per equity share (on face value of ''5 per equity share)
based on the approval by the Board of Directors at its meeting held on July 31,2025.

(xiii) The Company has complied with the Rule 3 of Companies (Accounts) Rules, 2014 amended on August 05, 2022 relating
to maintenance of electronic books of account and other relevant books and papers. The Company''s books of accounts
and relevant books and papers are accessible in India at all times and backup of accounts and other relevant books and
papers are maintained in electronic mode within India and kept in servers physically located in India on daily basis.

(xiv) Subsequent Event

The Company has evaluated all events that occur after the balance sheet date through the date when the financial
statements were issued to determine if they must be reported. The Management of the Company determined that there
were no reportable subsequent events to be disclosed.

(xv) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

(xvi) Undisclosed Income

The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the period 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).

(xvii) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the current financial period and
any of the previous financial years.

60 PREVIOUS YEAR COMPARATIVES

Previous period/year figures have been regrouped/rearranged wherever necessary.