31. Contingent liabilities and commitments

There are uncertainties in the legal, regulatory and tax environments in the countries in which the Group operates and there is a risk of demands, which may be raised based on current or past business operations. Such demands have in the past been challenged and contested on merit with the relevant authorities and appropriate settlements agreed.

The increase of $73m in contingent liabilities during the year ended 31 March 2026 is primarily on account of new demands in income tax, value added tax, legal case, regulatory cases and other taxes in some of the subsidiaries of the Group offset by conclusion of one legal case in one of the subsidiaries of the Group.

The company and its subsidiaries are currently and may become, from time to time, involved in a number of legal proceedings, including inquiries from, or discussions with, governmental authorities that are incidental to their operations. As of 31 March 2026, the Group’s key contingent liabilities include the following:

Claims under legal and regulatory cases including arbitration matter

During the year ended 31 March 2026, one of the subsidiaries of the Group has been informed by its banking partner of cancellation of its historical foreign currency allocation by the central bank, which was swapped to spot at a fee with this bank. Accordingly, during the current period the bank has unilaterally charged the subsidiary’s account $51m plus interest thereon due to reversal of this allocation. The Group is of the view that the subsidiary’s liability ended upon the execution of the spot forex contract and any repayment obligation not expressly agreed is un-enforceable under local banking regulations. This view is also supported by the lawyers of the Group. Accordingly, the subsidiary has initiated an arbitration proceeding and sought a court injunction for any actions of recovery. The injunction has been partially granted by the court. The Group has disclosed this matter as a contingent liability. No provision has been made against this matter.

Further, the banking partner initiated proceedings before the Federal High Court seeking to restrain the arbitration and challenge the arbitral tribunal, which the subsidiary has contested as non‑maintainable. Similar objections were raised before the arbitration centre which subsidiary has rebutted. The subsidiary is in the process of filing its claim seeking a declaration that all transactions were fully settled and no repayment obligation exists. Based on legal advice, the matter continues to be disclosed as a contingent liability, with no provision recognised.

In addition to the individual matter disclosed above, in the ordinary course of business, the Group is a defendant or co-defendant in various litigations and claims which are immaterial individually.

Guarantees

Guarantees outstanding as of 31 March 2026 and 31 March 2025 amounting to $9m and $13m respectively have been issued by banks and financial institutions on behalf of the Group. These guarantees include certain financial bank guarantees which have been given for sub-judice matters and the amounts with respect to these have been disclosed under capital commitments, contingencies and liabilities, as applicable, in compliance with the applicable accounting standards.