Audited Financial Statements for the Year Ended 31/03/2025

COMMERCIAL CRE DfT AND FINANCE PLC FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31STMARCH 2025

We have audited the financial statements of Commercial Credit and Finance PLC ("the Company") and the consolidated financial statements of the Company and its subsidiary ("the Group"), which comprise the statement of financial position as at 31st March 2025, and the statements of profit and loss, comprehensive income, changes in equity and cash flows for the year then ended, and notes to the financial statements, including material accounting policies set out on pages 7 to 123.

In our opinion, the accompanying financial statements of the Company and the Group give a true and fair view of the financial position of the Company and the Group as of 3pt March 2025, and of their financial performance and cash flows for the year then ended in accordance with Sri Lanka Accounting Standards.

We conducted our audit in accordance with Sri Lanka Auditing Standards (SLAuSs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section ofour report. We are independent of the Group in accordance with the Code of Ethics for professional Accountants issued by CA Sri Lanka ("Code of Ethics"), and we have fulfilled our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

We draw attention to Note 56 to the financial statements which indicates that the comparative balances presented as at and for the year ended 31st March 2024 have been restated. Our opinion is not modified in respect of this matter.

The financial statements of the Group and the Company as at and for the years ended 31st March 2024 and 31st March 2023, excluding the adjustments described in Note 56 to the financial statements were audited by another auditor who expressed an unmodified opinion on those financial statements on 30th May 2024 and 27th June 2023 respectively.

As part of our audit of the financial statements as at and for the year 31st March 2025, we audited the retrospective adjustments described in Note 56 to the financial statements that were applied to restate the comparative balances as at and for the year ended 31st March 2024 and the statement of financial position as at pt April 2023. We were not engaged to audit, review, or apply any procedures to the financial statements for the years ended 31st March 2024 or 31st March 2023 (not presented herein) or to the statement of financial position as at 1st April 2023, other than with respect to the retrospective adjustments described in Note 56 to the financial statements. Accordingly, we do not express an opinion or any other form of assurance on comparative balances. However, in our opinion, the adjustments described in Note 56 are appropriate and have been properly applied.

KPMG, a Sri l.ilnkan partnetshlp and a membor fim1 of the KPMG global oryanizatlon or independent membor Orms affiliated wllh KPMG lnternallnnal Llmimd, a private English company limited by guarantee. All rights reserved.

C.P. Jayalilake FCA Ms. S. Jos_eph FCA

R.M.D.B. Rajepauo FCA

M.N.M Shameel FCA

Ms. P.M.K. Sumanasekara FCA

T.J.S. Rlljakarler FCA

W.K.D.C. Abeyrnllme FCA Ms. B.l<,D.T.N, Rodrigo FCA Ms. C.T.K.N. Perera ACA

R. G. H. Raddella ACA,

W.W.J.C. Pemra FCA

G.A.U. Karunara1ne FCA

R.H. Rajan FCA

A.M R,P. Alahakoon ACA

Plincipals: S.R.I. Perera FCMA(UK), LLB, Attorney-at-Law, H.S. Goonewardene ACA, Ms. F.R Ziyard FCMA (UK), FCIT

K. Somasundaram ACMA (UK), Ms. D Corea Dharmaratne

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company and the consolidated financial statements ofthe current period. These matters were addressed in the context of our audit of the Company and the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

1. Allowance for impairment losses on loans and receivables, lease rental receivables and stock

   out on hire

   Risk Description

   As disclosed in Notes 10 and 11 to the financial statements, the Company/ Group has recorded an impairment provision of LKR 2,037 Mn relating to loans and receivables and LKR 13,410 Mn relating to lease rentals receivables and stock out on hire as at 31" March 2025.

   The determination of allowance for impairment losses using the expected credit loss method involves number of complex calculations, such as the calculation of probability of default (PD), loss given default (LGD), stage allocation and exposure at default (EAD) which are reliant on large volume of data and certain key assumptions and judgments including but not limited to macroeconomic scenarios including their weighting and judgment over the appropriateness of the period of input data used.

   Additionally, the determination of impairment on individually assessed balances is carried out through the identification of exposures based on set thresholds and estimating the recoverable values considering the related values of assets pledged as securities with an appropriate discount.

   Significant management judgement is involved in the selection of those models and the application of assumptions.

   Accordingly, impairment allowance on loans and receivables, lease rental receivables and stock out on hire was considered as a key audit matter due to the significance to the financial statements and estimation uncertainty associated with the management assumptions and judgements used in the impairment allowance calculation.

   Our audit procedures included;

   • Obtaining an understanding of and assessing the design, implementation and operating effectiveness of management's key internal controls related to the measurement of allowance for impairment.

   • Evaluating the appropriateness of the accounting policies related to ECL and underlying methodology applied based on the requirements of SLFRS 9 with the involvement of our FRM specialists and with our business understanding.

   • Evaluating the completeness of customers/facilities assessed individually based on the criteria set for the same and checked the accuracy of the allowance for impairment for such identified individually significant exposures.

   • Assessing the appropriateness of estimated overlays by the management for model limitations and independently calculating the stages of loans based on the set criteria for the collectively assessed exposures.

   • Assessing the appropriateness of key parameters and assumptions particularly related to the macroeconomic scenarios used in the expected credit loss model.

   • Testing the mathematical accuracy of the calculation of allowance for impairment.

   • Evaluating the completeness, accuracy and relevance of underlying data used for the calculation of impairment allowance on a sample basis by agreeing to the source documents and IT systems.

     
     
     

   • Assessing the adequacy and appropriateness of disclosures made in the financial statements with reference to the requirements of relevant accounting standards.

2. IT systems and controls over financial reporting Risk Description

   The Company's key financial accounting and reporting processes are highly dependent on the automated controls over its information systems. Automated accounting processes, calculations and controls over IT environment, which include IT governance, controls over programme changes, access to programmes, data and IT operations, are required to be designed and operated effectively to ensure accurate financial reporting.

   System calculations related to interest income/expenses, impairment and integrations between business systems and financial reporting systems are key areas that could result in the financial records being materially misstated.

   We identified IT systems and controls over financial reporting as a key audit matter because the Company's financial accounting and reporting systems are fundamentally reliant on complex IT systems and controls which are driven by significant transaction volumes caused by the size of the customer base.

   We used our IT Audit specialists to perform audit procedures to assess IT systems and controls over financial reporting, which included,

   • Obtaining an understanding of and assessing the design, implementation and operating effectiveness of key internal controls over the continued integrity of all major IT systems fundamental to dealing with the financial data, particularly financial reporting.

   • Examining the framework of governance over the Company's IT organisation and the controls over programme changes, access to programmes, data and IT operations, including compensating controls where required.

   • Evaluating the design, implementation and operating effectiveness of the IT general controls and IT application controls related to significant accounts and system calculations that are relevant to the Company's financial reporting activities.

3. Valuation of Investment properties, land and buildings under property, plant and equipment Risk Description

   As at 31" March 2025, land and buildings carried at fair value classified as property, plant and equipment and investment properties amounted to LKR 5,395 Mn and LKR 4,223 Mn respectively for the Company/ Group.

   Management's assessment of the fair value of land and buildings under property, plant and equipment and investment properties is based on valuations performed by qualified independent property valuers in a,ccordance with recognized industry standards.

   We identified valuation of land and buildings under property, plant and equipment and investment properties as a key audit matter due to the significance of the value to the financial statements and the determination of the fair values involves significantjudgments and estimation, particularly determining the appropriate valuation methodology to be used, and in estimating the key assumptions applied. These key assumptions includes but not limited to replacement cost per square feet, estimated rental income and current market price taking into consideration for differences such as location, size and condition of the property. A change in the key assumptions will have a significant impact on the fair value of land and buildings under property, plant and equipment and investment properties.

   
   
   

   Our audit procedures included;

   • Assessing the competency, objectivity and capabilities of the independent external valuers engaged by the management.

   • Assessing the reasonableness of the valuers' assumptions and methods used in the valuation and comparing the same with evidence of current market values.

   • Engaging our own internal resources to assess the reasonability of the valuation technique, per perch and per square feet prices determined by the management specialists.

   • Assessing the adequacy of disclosures made in relation to the valuation of investment properties, revaluation of land and buildings under property, plant and equipment in the financial statements, including the description and appropriateness of the inherent degree of subjectivity and key assumptions used.

     Other Information

     Management is responsible for the other information. The other information comprises the information included in the annual report but does not include the financial statements and our auditors' report thereon. The annual report is expected to be made available to us after the date of this auditors' report.

     Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

     In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

     When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

     Responsibilities of Management and Those Charged with Governance for the Financial Statements

     Management is responsible for the preparation of financial statements that give a true and fair view in accordance with Sri Lanka Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

     In preparing the financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

     Those charged with governance are responsible for overseeing the Company's and the Group's financial reporting process.

     Auditor's Responsibilities for the Audit of the Financial Statements

     Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SLAuSs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

     
     
     

     As part of an audit in accordance with SLAuSs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

   • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

   • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company and the Group's internal control.

   • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

   • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

   • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

   • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by section 163 (2) of the Companies Act No. 07 of 2007, we have obtained all the information and explanations that were required for the audit and, as far as appears from our examination, proper accounting records have been kept by the Company.

CA Sri Lanka membership number of the engagement partner responsible for signing this independent auditor's report is 3029.

Chartered Accountants

Colombo, Sri Lanka

14* July 2025

STATEMENT OF FINANCIAL POSITION

7

COMMERCIAL CREDIT AND FINANCE PLC

STATEMENT OF FINANCIAL POSITION

As afi

Group

Reserves Total Equity

34 5,564,775,414 9,680,410,036 4,552 797,926 5,5'73,705,882 9,689.340,507 4,553,630,03J

28,389,582,299 23,011,759,368 I9,906,*47,7s8 28J02d58,3 23,196,673,450 19,922,889,861

Total Liabilities and Shareh olders' Funds

110,I 03,495,405

105,702,707,891 100,889,181,434

I10,369,9o4,3S9

105,937,427,228

I 00,927,802,818

* Refer Note 56

Accounting pod icies and notes from pages 15 to 123 form an integral part of these financial Statements.

I certify that these Financial Statements are in compliance with the requirements of the companies Act No. 07 of 2007and Finance Business Act No 42 of 2011.

)anaka Deshapriya Chief Fi ncial Officer

The B d of Directors ts responsible for rhe preparation and presentation oF ifiese Fina cial Statements. Approved and signed For and on behalF of rhe Board of Directors by,

Bandula dage Chai an

14th July 2 5

Colombo

Ron Egodage' ' ' '

Director/Chief Executive Officer

STATEMENT OF PROFIT OR LOSS

YEAR ENDED 3I'T MARCH

2025

Company

2024

2025

Group

2024

(Restated)*

Notes LKR LKR

LKR

(Restated)*

LKR

Gross income 35 31,752,731,506 33,132,972,756 31,752,948,678 33,372,845, 160

Share of profit of associates

322,124,257 183,630, 138 322,12J,257 183,630,138

Profit before taxation

9,618,724,160

5,509,096, 125

9,621,652,683

5,738,675,205

Income taxation Profit for the year

43 (3,399,299,853) (2,030,321,976) (3,474,566,450) (2,097,933,722)

6,Zt9,424,307 3,478,774,149 6,J47,086,233 3,640,74 1,483

* Refer Note 57

Accounting policies and notes from pages l5 to 123 form an integral part oI these Financial Statements.

COMMERCIAL CREDIT AND FINANCE PLC

STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 31ST MARCH

2025

Company

2024

(Restated)*

2025

Group

2024

(Restated)*

Note LKR LKR LKR LKR

Profit for the year

Revaluation gain on land and buildings

Deferred tax charge relating to revaluation gain on land buildings

31.2

6,219,424,307 3,478,774,149 6,147,086,233 3,640,741,483 701,872,025 - 701,872,025 -

(210,561,608) - (210,561,608)

491,310,417 - 491,310,417

Actuarial losses on defined benefit plans 29 (86,591,906) (78,840,247) (86,591,906) (78,840,247)

Deferred tax reversal relating to actuarial losses on defined benefit plans 31

Total other comprehensive income not to be reclassified to Statement of

profit or loss

Other comprehensive income for the year, net of taxes Total comprehensive income for the Year

Total comprehensive income attributable to: Equity holders of the company

Non- controlling interests

Total comprehensive Income for the year

25,977,572 23,652,074 25,977,572 23,652,074

(60,614,334) (55,188,173) (60,614,334) (55,188,173)

430,696,083 (55,188,173) 430,696,083 (55,188, 173)

430,696,083 (55,188,173) 430,696,083 (55,188, 173)

6,650,120,390 3,423,585,976 6,577,782,316 3,585,553,310

6,650,120,390 3,423,585,976 6,577,782,316 3,585,553,3 10

6,650,120,390 3,423,585,976 6,577,782,316 3,585,553,3 10

Accounting policies and notes from pages 15 to 123 form an integral part of these Financial Statements.

STATEMENT OF CHANGES IN EQUITY

Stated

Note Capital

Revaluation GeneraI

Reserve Reserve

Statutory Reserve

n gulatory Loss Alltz ance Reserve*

FVOCI

Reserve

Retained Earnings

Tot,l

Balance as at I April 2023

2,150,640,315 358,508,001 58,751,125 4,145,538,799

- (10,000,000) 13,655,576,607 20,359,014,847

Impact of Restatement Balance as at 1 April 2023

S6n.3 - - (452,767,090) (452,767,090)

Accounting policies and notes from pages IS to 123 form an integral part of these Financial Statements.

COMMERCIAL CREDIT AND FINANCE PLC

STATEMENT OF CHANGES IN EQUITY

Group

Revaluation General

Regulatory Loss FVOCI

Note

Stated Statutory

Capital Reserve Reserve Reserve

Allowance Reserve*

Reserve

Retained

Ea rnings Tota I

CKR EKR LKR LKR LKIt EKR LER LKR

Balance as at I April 2023

2,150,640,315 358,508,001 58,751,125 4,146,370,903

(10,000,000) 13,677,691,251 20,381,961,555

Impact of Restatement

Balance as at 1 April 2023

56.L3 - (452.767.090) (452,767.090)

Other comprehensive income net of tax 33/34

491,310,417

- (60,614,334) 430,696,083

Dividend paid 45 (1,272,297,460) (1,272,297,460)

Total comprehensive income

Transferred to Statutory Reserve

Transferred to regulatory loss allowance

33/34

- 491,310,417

- 310,971,215

- 4,814,174,439 5,305,484,856

(310,971,215) -

reserve

54

- (4,917,916,255) 4.9 I 7,916,255

Balance as At S1 March 2025

* Refer Note 56.6

1,150,640,315 B49,818,418 58,751,125 4,67S,I36,34I - (10,000,000) 20,777,811,107 28,502,158,306

Accounting policies and notes from pages 15 to 123 form an integral part of these Financial Statements.

COMMERCIAL CREDIT AND FINANCE PLC

STATEMENT OF CASH FLOWS

YEAR ENDED 31st MARCH

Grou p

Notes

2025

202g

(hs Md

2025

2023 (h‹1«+‹d)

LKR LICA LKR

investment property

Disposal (loss)/gain on investment g

(731,282, 158)

Net fair value gain from financial

Net cash flows generated from Operating activities

9,508,085,363 4,528,145,296 9,699,454,0B6 4,706,344,581

Accounting policies and notes from pages 15 to 123 form an integral part of these Financial Statements.

COMMERCIAL CREDIT AND FINANCE PLC STATEMENT OF CASH FLOWS

YEAR ENDED 31'T MARCH

Grou p

Notes

2025

2024

2025

2024

(Resta ted)

Cash flows from Investing activities Financial assets at fair value though other comprehensive income

112

LKn LKR LHR LKR

Acquisition of investment property Disposal proceeds from

investment property

Acquisition of property, plant and 2q equipment

Acquisition of subsidiary

Net investment in placements with banks

Acquisition of Intangible assets 22

Net investment in Financial assets recognised through profit or loss -measured at fair value

Proceed from sale of property,

(473,300) -

142,665, 018 1,546,016,309

142,665,018

(473,300)

1,545,984,575

plant & equipments

Net cash flows (used in)/generated fi'om Investing activities

Cash Itoivs fr0m financing activities

Proceeds from Unsecured subordinate loan

6,120,900 24,000 6,120,900 296,500

(1,544,224,515) 391,060,442 (1,544,039,769) 390,716,467

1,500,000,000 - 1,500,000,000

Proceeds from Loans obtained 23 17,374,541,238 9,757,000,000 l'7,374,54l,238 9,757,000,000

lease Payments (138,407,449) (126,217,248) (138,407,449) (126,2l'7,248)

Repayment of Bank Loans 23 (1'1,950,286,109) (13,341,308,895) (14,950,286,109) (13,341,308,895) Dividend paid 46 (1,272,297,460) (318,074,365) (1,287,297.460) (318,074,365)

Net cash n ows generated froni/(used in)

Financing activities 2,513,550,220 (4,028,600,508) 2,498,550,220 (4,028,600,508}

the year 16,774,839,3d8 6,29'7,428,280 17,152,392,90 t 6,49d,428,364

Cash and Cash Equivalents For the Purpose of Cash flow Statement

Accounting policies and notes from pages 15 to 123 form an integral part of these Financial Statements.

Commercial Credit and Finance PLC

NOTES TO THE FINANCIAL STATEMENTS

CORPORATE INFORMATION

The Board of Directors of the company is responsible for these Financial Statements of the Company as per the provisions of the Companies Act No.07 of 2007 and the Sri Lanka Accounting Standards.

1. BASIS OF PREPARATION

   1. Statement of Compliance

      The financial statements of the company have been prepared and presented in accordance with Sri Lanka Accounting Standards (SLFRSs and LKAS), laid down by the Institute of Chartered Accountants of Sri Lanka

      Also in compliance with the requirements of the Companies Act No. 07 of 2007, the Finance Business Act No 42 of 2011 and CSE Listing Rules and SEC directions.

      These financial statements include the following components.

      • A Statement of Profit or Loss and Statement of Comprehensive Income providing the information of the financial performance of the Company

      • A Statement of Financial Position providing the information on the financial position of the Company as at the year end

      • A Statement of Changes in Equity depicting all changes in shareholder's equity during the year under review of the Company

      • A Statement of Cash Flows providing the information to the users, on the ability of the Company to generate cash and cash equivalents and the needs of entity to utilize those cash

      • Notes to the Financial Statements comprising accounting policies & other explanatory information

   2. BlSis of Measurement

      The Financial Statements of the Company have been prepared on a historical cost basis, except for the following items stated in the Statement of Financial Position which have been measured at fair value.

      • Financial assets recognized through Profit or Loss (FVPL)

      • Financial assets held at fair value tluough other comprehensive income (FVOCI)

      • Investment Property

      • Freehold Land & Buildings classified as Property, Plant & Equipment

   3. Functional and Presentation Currency

      The Financial Statements of the Company have been prepared in Sri Lanka Rupees (LKR), except when otherwise indicated.

   4. Comparative Information

      The comparative information is re-classified wherever necessary to conform to the current year's presentation. Refer Note 56.5 for reclassification made for the year ended 31 march 2025

      Commercial Credit and Finance PLC

      NOTES TO THE FINANCIAL STATEMENTS

      1. BASIS OF PREPARATION (CONTINUED)

   5. Presentation of Financial Statements

      The assets and liabilities of the Company presented in the Statement of Financial Position are grouped by nature and listed in order that reflects their relative liquidity and maturity pattern. No adjustments have been made for inflationary factors affecting the financial statements.An analysis on recovery or settlement within 12 months after the reporting date (current) and more than 12 months after the reporting date (non-cuiTent) is presented in Note 50 (Current & Non-Current analysis of Assets & Liabilities).

   6. Materiality & Aggregation

Each material class of similar items are presented separately in the Financial Statements. Items of dissimilar nature or function are presented separately unless they are immaterial.

SIGNIFICANT ACCOUNTING JUDGEMENT, ESTIMATES AND ASSUMPTIONS

The preparation of Financial Statements of the Company/Group in conformity with Sri Lanka Accounting Standards requires the Management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Further, Management is also required to consider key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Actual results may differ from these estimates.

Accounting judgments, estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

The key significant accounting judgments, estimates and assumptions involving uncertainty are discussed below, whereas the respective carrying amounts of such assets and liabilities are as given in the respective notes.

Going Concern

The Company has prepared the financial statement for the year ended 31" March 2025 on the basis that it will continue to operate as a going concern. In determining the basis of preparing the financial statements for the year ended 31" March 2025, based on available information, the management has assessed the prevailing macroeconomic conditions and its effects on Company and the appropriateness of the use of the going concern basis. It is view of the management that there are no material uncertainties that may cast significant doubt on the Company's ability to continue as a going concern.

The Company assesses whether there are any indicators of impairment of goodwill at each reporting date or more frequently, if events or changes in circumstances necessitate to do so. This requires the estimation of the Value in Use (VIU) of the asset. Estimating VIU requires the Company to make an estimate of the expected future cash flows from the asset and also to select a suitable discount rate in order to calculate the present value of the relevant future cash flows. This valuation requires the Company to make estimates about expected future cash flows and discount rates and hence, they are subject to uncertainty. Refer Note 2t for details.

3.s Taxation Including Deferred Tax Assets

The Company is subject to income taxes and other taxes including VAT on financial services.

Transfers are made to investment property when, and only when, there is a change in use, evidenced by the end of owner occupation, commencement of an operating lease to another party or completion of construction or development.

Transfers are made from investment property when, and only when, there is a change in use, evidenced by commencement of owner occupation or commencement of development with a view to sale.