(n) Provisions

Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. When the
Company expects some or all of a provision to be
reimbursed, the reimbursement is recognised as a
separate asset, but only when the reimbursement is
virtually certain. The expense relating to a provision
is presented in the Statement of Profit and Loss, net
of any reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised
as a finance cost.

(o) Retirement and other employee benefits

Retirement benefit in the form of provident fund is a
defined contribution scheme. The Company has no
obligation, other than the contribution payable to the
provident fund. The Company recognizes contribution
payable to the provident fund scheme as an expense,
when an employee renders the related service. If
the contribution payable to the scheme for service
received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the
scheme is recognized as a liability after deducting
the contribution already paid. If the contribution
already paid exceeds the contribution due for services
received before the balance sheet date, then excess
is recognized as an asset to the extent that the pre¬
payment will lead to a reduction in future payment or
a cash refund.

The Company operates a defined benefit gratuity plan
in India, which requires contributions to be made to a
separately administered fund. The cost of providing
benefits under the defined benefit plan is determined
using the projected unit credit method.

Re-measurements, comprising of actuarial gains
and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined
benefit liability and the return on plan assets
(excluding amounts included in net interest on the net
defined benefit liability), are recognised immediately
in the balance sheet with a corresponding debit
or credit to retained earnings through OCI in the
period in which they occur. Re-measurements are
not reclassified to the Statement of Profit and Loss in
subsequent periods.

Past service costs are recognized in the Statement of
Profit and Loss on the earlier of the date of the plan
amendment or curtailment, and the date that the
Company recognizes related restructuring costs. Net
interest is calculated by applying the discount rate to
the net defined benefit liability or asset. The Company
recognizes changes in the net defined benefit
obligation which includes service costs comprising
current service costs, past-service costs, gains and
losses on curtailments and non-routine settlements;
and net interest expense or income, as an expense in
the Statement of Profit and Loss.

Accumulated leave, which is expected to be utilized
within the next twelve months, is treated as short¬
term employee benefit. The Company measures the
expected cost of such absences as the additional
amount that it expects to pay as a result of the unused
entitlement that has accumulated at the reporting
date. The Company treats accumulated leave
expected to be carried forward beyond twelve months,
as long-term employee benefit for measurement
purposes. Such long-term compensated absences are
provided for based on the actuarial valuation using
the projected unit credit method at the year-end. The
Company presents the leave as a current liability in
the balance sheet, to the extent it does not have an
unconditional right to defer its settlement for twelve
months after the reporting date. Where the Company
has the unconditional legal and contractual right
to defer the settlement for a period beyond twelve
months, the same is presented as non-current liability.

(p) Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability
or equity instrument of another entity.

FINANCIAL ASSETS

Initial recognition and measurement

All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded at
fair value through profit or loss, transaction costs that

are attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried at
fair value through profit or loss are expensed in the
Statement of Profit and Loss. Purchases or sales of
financial assets that require delivery of assets within a
time frame established by regulation or convention in
the market place (regular way trades) are recognised
on the trade date, i.e. the date that the Company
commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in four categories:

• Debt instruments at amortised cost

• Debt instruments at fair value through other
comprehensive income (FVTOCI)

• Debt instruments, derivatives and equity
instruments at fair value through profit or loss
(FVTPL)

• Equity instruments measured at fair value through
other comprehensive income (FVTOCI)

A 'debt instrument' is measured at the amortised cost,
if both of the following conditions are met:

(i) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows; and

(ii) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
principal amount outstanding.

After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation
is included in finance income in the Statement of
Profit and Loss. The losses arising from impairment
are recognised in the Statement of Profit and
Loss. This category generally applies to trade and
other receivables.

A 'debt instrument' is classified as FVTOCI, if both of
the following criteria are met:

(i) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets; and

(ii) The asset's contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at each

reporting date at fair value. Fair value movements are
recognized in OCI. However, the Company recognizes
interest income, impairment losses and foreign
exchange gain or loss in the Statement of Profit and
Loss. On de-recognition of the asset, cumulative gain
or loss previously recognised in OCI is reclassified from
the equity to the Statement of Profit and Loss. Interest
earned whilst holding FVTOCI debt instrument is
reported as interest income using the EIR method.

FVTPL is a residual category for debt instruments.
Any debt instrument, which does not meet the criteria
for categorization as at amortized cost or as FVTOCI,
is classified as at FVTPL. Debt instruments included
within the FVTPL category are measured at fair value
with all changes recognized in the Statement of Profit
and Loss.

All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL. If the
Company decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the
OCI. There is no recycling of the amounts from OCI
to the Statement of Profit and Loss, even on sale of
the investments. Equity instruments included within
the FVTPL category are measured at fair value with
all changes recognized in the Statement of Profit
and Loss.

Investment in subsidiary and associate
Investments in subsidiary and associate are carried
at cost less allowance for impairment, if any. Where
an indication of impairment exists, the carrying
amount of the investment is assessed and written
down immediately to its recoverable amount. The
recoverable amount is the higher of fair value less cost
of disposal and value in use.

De-recognition

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from
the balance sheet) when:

• The rights to receive cash flows from the asset
have expired; or

• The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a
'pass-through' arrangement; and either (a) the
Company has transferred substantially all the
risks and rewards of the asset, or (b) the Company

has neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.

A gain or loss on such financial assets that are
subsequently measured at amortised cost is
recognized in the Statement of Profit and Loss when
asset is derecognised.

The transferred asset and the associated liability
are measured on a basis that reflects the rights
and obligations that the Company has retained.
Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company could be required to repay.

Impairment of financial assets
In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement
and recognition of impairment loss on the financial
assets and credit risk exposure. The Company follows
'simplified approach' for recognition of impairment
loss allowance on Trade receivables. The application
of simplified approach does not require the Company
to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at
each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
that whether there has been a significant increase in
the credit risk since initial recognition. If credit risk has
not increased significantly, twelve-month ECL is used
to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in
a subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the entity reverts to recognising impairment loss
allowance based on twelve-month ECL.

Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected life
of a financial instrument. The twelve-month ECL is a
portion of the lifetime ECL which results from default
events that are possible within twelve months after
the reporting date. ECL is the difference between all
contractual cash flows that are due to the Company
in accordance with the contract and all the cash
flows that the Company expects to receive (i.e., all
cash shortfalls), discounted at the original EIR. ECL
impairment loss allowance (or reversal) recognized
during the year is recognized as income/ expense
in the Statement of Profit and Loss. This amount

is reflected under the head 'other expenses' in the
Statement of Profit and Loss.

For assessing increase in credit risk and impairment
loss, the Company combines financial instruments on
the basis of shared credit risk characteristics with the
objective of facilitating an analysis that is designed
to enable significant increases in credit risk to be
identified on a timely basis.

FINANCIAL LIABILITIES

Initial recognition and measurement
All financial liabilities are recognised initially at fair
value and, in the case of borrowings and payables,
net of directly attributable transaction costs.

Subsequent measurement

The measurement of financial liabilities depends on
their classification. Financial liabilities at fair value
through profit or loss include financial liabilities held
for trading and financial liabilities designated upon
initial recognition as fair value through profit or loss.
Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in
the near term. This category also includes derivative
financial instruments entered into by the Company
that are not designated as hedging instruments
in hedge relationships as defined by Ind AS 109.
Separated embedded derivatives are also classified
as held for trading, unless they are designated as
effective hedging instruments. Gains or losses on
liabilities held for trading are recognised in the
Statement of Profit and Loss.

Financial liabilities designated upon initial recognition
at fair value through profit or loss are designated
as such at the initial date of recognition, and
only if the criteria in Ind AS 109 are satisfied. For
liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk
are recognized in OCI. These gains/losses are not
subsequently transferred to the Statement of Profit
and Loss. However, the Company may transfer
the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised
in the Statement of Profit and Loss.

After initial recognition, interest-bearing borrowings
are subsequently measured at amortised cost using
the EIR method. Gains and losses are recognised in
the Statement of Profit and Loss when the liabilities
are derecognised as well as through the EIR
amortization process. Amortized cost is calculated
by taking into account any discount or premium on

acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included as
finance costs in the Statement of Profit and Loss.

De-recognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or
expired. When an existing financial liability is replaced
by another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the de-recognition of the
original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognised in the Statement of Profit and Loss.

RECLASSIFICATION OF FINANCIAL ASSETS AND
LIABILITIES

The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no re-classification is made for
financial assets which are equity instruments and
financial liabilities.

For financial assets which are debt instruments, a re¬
classification is made only if there is a change in the
business model for managing those assets. A change
in the business model occurs when the Company
either begins or ceases to perform an activity that is
significant to its operations. If the Company reclassifies
financial assets, it applies the re-classification
prospectively from the re-classification date, which
is the first day of the immediately next reporting
period following the change in business model. The
Company does not restate any previously recognised
gains, losses (including impairment gains or losses)
or interest.

OFFSETTING OF FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are offset,
and the net amount is reported in the balance sheet,
if there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

(q) Cash and cash equivalents

Cash and cash equivalents in the balance sheet and
cash flow statement comprise cash at banks and
on hand and short-term deposits with an original
maturity of three months or less, which are subject to
an insignificant risk of changes in value.

(r) Dividend to equity holders

The Company recognises a liability to pay dividend
to equity holders when the distribution is authorised,
and the distribution is no longer at the discretion of
the Company. As per the corporate laws in India,
a distribution is authorised when it is approved by the
shareholders. A corresponding amount is recognised
directly in equity.

(s) Contingent liabilities

A contingent liability is a possible obligation that
arises from past events and whose existence 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; or a present obligation
that arises from past events but is not recognized
because it is not probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation; or the amount of obligation
cannot be measured with sufficient reliability. The
Company does not recognize a contingent liability
but discloses its existence in the financial statements.

(t) Earnings per share

Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable to
equity shareholders (after deducting preference
dividends and attributable taxes) by the weighted
average number of equity shares outstanding during
the period. The weighted average number of equity
shares outstanding during the period is adjusted for
events such as bonus issue, bonus element in a rights
issue, share split, and reverse share split (consolidation
of shares) that have changed the number of equity
shares outstanding, without a corresponding change
in resources.

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.

(u) Segment reporting

An operating segment is a component of the Company
that engages in business activities from which it
may earn revenues and incur expenses (including
revenues and expenses relating to transactions with
other components of the Company), whose operating
results are regularly reviewed by the Company's chief
operating decision maker to make decisions about
resources to be allocated to the segment and assess
its performance, and for which discrete financial

information is available. Operating segments of the
Company are reported in a manner consistent with
the internal reporting provided to the chief operating
decision maker. Revenue and expenses, which relate
to the Company as a whole and are not allocable to
segments on a reasonable basis, have been included
under "unallocable corporate expense/income”.

(v) Critical accounting judgements, estimates and
assumptions

The preparation of the financial statements require
management to make judgements, estimates and
assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about
these assumptions and estimates could result in
outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in
future periods.

The Company bases its assumptions and estimates on
parameters available when the financial statements
are 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. The judgements, estimates and assumptions
management has made which have the most
significant effect on the amounts recognized in the
financial statements are as below.

REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company determines and updates its assessment
of expected discounts and incentives periodically and
the accruals are adjusted accordingly. Estimates of
expected discount and incentives are sensitive to
changes in circumstances and the Company's past
experience regarding these amounts may not be
representative of actual amounts in the future.

LEASES

The Company determines the lease term as non¬
cancellable term of the lease, together with any
periods covered by an option to extend the lease if it
is reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised. The Company
applies judgement and considers all relevant factors
that create an economic incentive in evaluating
whether it is reasonably certain to exercise the
option to renew or terminate the lease. After the
commencement date, the Company reassesses the

lease term if there is a significant event or change in
circumstances that is within its control and affects
its ability to exercise or not to exercise the option to
renew or terminate.

The Company cannot readily determine the interest
rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease
liabilities. The IBR is the rate of interest that the
Company would have to pay to borrow over a similar
term, and with a similar security, the funds necessary
to obtain an asset of a similar value to the right-of-
use asset in a similar economic environment. The IBR
requires estimation when no observable rates are
available or when they need to be adjusted to reflect
the terms and conditions of the lease. The Company
estimates the IBR using observable inputs (such as
market interest rates), when available and makes
entity-specific estimates, wherever required.

PROPERTY, PLANT AND EQUIPMENT

The depreciation of property, plant and equipment
is derived on determining an estimate of an asset's
expected useful life and the expected residual value
at the end of its life. The useful lives and residual
values of the Company's assets are determined by the
management at the time of acquisition of asset and is
reviewed periodically, including at each financial year
end. The lives are based on historical experience with
similar assets as well as anticipation of future events,
which may impact their life.

IMPAIRMENT OF INVESTMENTS CARRIED AT
COST AND NON-FINANCIAL ASSETS

Investments carried at cost and non-financial assets
such as property, plant and equipment are evaluated
for recoverability whenever events or changes in
circumstances indicate that their carrying amounts
may not be recoverable. Significant management
judgement is required to determine recoverable
amount and the impairment loss, if any. These
calculations are sensitive to underlying assumptions.

PROVISION FOR EXPECTED CREDIT LOSS ON
TRADE RECEIVABLES

The measurement of expected credit loss reflects
a probability-weighted outcome, the time value
of money and the best available forward-looking
information. The correlation between historical
observed default rates, forecast economic conditions
and expected credit loss is a significant estimate. The
amount of expected credit loss is sensitive to changes

in circumstances and forecasted economic conditions.
The Company's historical credit loss experience
and forecast of economic conditions may not be
representative of the actual default in the future.

TAX CONTINGENCIES AND PROVISIONS

Significant management judgement is required to
determine the amounts of tax contingencies and
provisions, including amount expected to be paid/
recovered for uncertain tax positions and the amount
of deferred tax assets that can be recognised, based
upon the likely timing and the level of future taxable
profits together with future tax planning strategies.

DEFINED BENEFIT PLANS

The cost of the defined benefit plan and the
present value of the obligation are determined
using actuarial valuation. An actuarial valuation
involves various assumptions that may differ from
actual developments in the future. These include
the determination of the discount rate, expected
return, future salary increases and mortality rates.
Due to the complexities involved in the valuation and
its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount
rate. In determining the appropriate discount
rate for plans operated in India, the management
considers the interest rates of government bonds
where remaining maturity of such bond correspond
to expected term of defined benefit obligation. The
mortality rate is based on publicly available mortality
tables. Those mortality tables tend to change only
at interval in response to demographic changes.
Future salary increases are based on expected future
inflation rates.

Supplier finance arrangement

The Company has supplier finance arrangement in place for its suppliers with Deutsche Bank with a strong credit rating. Under a
supplier finance arrangement, the bank acts as agent for payments related to invoices raised by suppliers, who are registered for this
arrangement. In automated manner, the bank collects a payment from Company at due date of the invoice and pays this onwards
to the supplier. Company has an agency agreement with the bank, as such Company is not required to provide assets pledged as
security or other forms of guarantees for the supplier finance arrangement. In case the supplier desires to collect the payment
before due date of the invoice, the supplier can indicate such to the bank once Company has confirmed the invoice. The supplier will
then receive the invoice amount at a discount from the bank. The discount represents the time value of money between due date
and collection date of the invoice by the supplier and is agreed in a separate arrangement between the supplier and the bank. The
carrying amounts of liabilities part of the arrangement are as follows:

34. CONTINGENT LIABILITIES

(a) The Company received an order dated September 24, 2021 under Section 27 of the Competition Act, 2002 from the Competition
Commission of India ("CCI”) ('the CCI Order'), wherein the CCI concluded that the Company and certain executives (including
former executives) of the Company contravened the provisions of Section 3 of the Competition Act, 2002. The CCI levied a penalty
of Rs. 75,183 Lakhs on the Company. On December 8, 2021, the Company filed an appeal against the aforesaid CCI Order before
the National Company Law Appellate Tribunal ('NCLAT'). The NCLAT vide its order dated December 22, 2021 granted a stay of the
CCI Order during the pendency of the appeal, including recovery of the penalty imposed by the CCI, subject to deposit of 10% of
the penalty amount by the Company. On December 23, 2022, NCLAT passed its judgment and dismissed the appeals filed by the
Company and other appellants. The Company filed appeal against NCLAT order dated December 23, 2022 before the Supreme Court
of India on January 30, 2023 under Section 53T of the Competition Act, 2002. On February 17, 2023, after hearing the arguments of
the counsel for the Company and the CCI, the Supreme Court admitted the appeal and stayed the NCLAT Order (and consequently,
the CCI Order and the recovery proceeding initiated by the CCI), subject to a deposit of additional 10% of the total penalty amount,
over and above the amount already deposited. The total amount aggregating to Rs.15,037 Lakhs is deposited in the form of Fixed
Deposit Receipts with the Registrar, NCLAT and is presented under "Other non-current assets”.

Based on the advice of the external legal experts, the Company is of the view that the Director General, the CCI and the
NCLAT has not considered all aspects of its submissions particularly considering the nature of the regulations governing the
manufacture, distribution and sale of beer in India. As advised by the Company's external legal experts, the Company has
a strong case on merits, there exists uncertainty relating to the final outcome in this matter, which is dependent on judicial
proceedings; and that it is not in a position to reliably estimate the final obligation relating to penalties, if any. Accordingly, no
provision has been recorded in the books of account and the same has been considered as a contingent liability in accordance
with Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets.

(b) On January 5, 2022, a party has filed a claim of Rs. 2,877 Lakhs against the Company before the Arbitral Tribunal, which includes
claims towards loss of profit, certain reimbursement claims and damages towards breach of contract, etc. On February 12, 2022,
the Company filed a counter claim against the party before the Arbitral Tribunal, which includes claim towards loss of business and

^A The Company is contesting these demands / notices and the management, based on advice of its legal/tax consultants, believes that its position
will likely be upheld in the appellate process. No expense has been accrued in the standalone financial statements for these demands raised. The
management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company's financial position
and results of operations. The Company does not expect any reimbursements in respect of these contingent liabilities. The amounts disclosed as
contingent liabilities above are based on the demands stated in the orders /notices received from the tax authorities. These do not include amounts
for similar matters for periods subsequent to periods covered by these demands / notices and interest or penalty which are not included in these
demands / notices.

In addition, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business.
The management reasonably does not expect that these legal actions, when ultimately concluded and determined, will have
material effect on the Company's results of operations or financial condition.

(d) The Supreme Court of India in a judgement on Provident Fund dated February 28, 2019 addressed the principle for determining
salary components that form part of Basic Salary for individuals below a prescribed salary threshold. It is however unclear as
to whether the clarified definition of Basic Salary would be applicable prospectively or retrospectively. The Component has
complied with the aforesaid judgement on a prospective basis from the date of the judgement and will continue to monitor
and evaluate retrospective application, if applicable, based on future events and developments.

36. SEGMENT REPORTING

As per Ind AS 108, operating segment is a component of the Company that engages in business activities, whose operating results
are regularly reviewed by the Company's Chief Operating Decision Maker ('CODM') to make decisions about resources to be allocated
to the segment and assess its performance; and for which discrete financial information is available. Accordingly, the Company has
identified its operating segments, as below:

(a) Beer - This segment includes manufacture, purchase and sale of beer including licensing of brands

(b) Non-alcoholic beverages - This segment includes manufacture, purchase and sale of non-alcoholic beverages

The Company's CODM does not review assets and liabilities for each operating segment separately, hence segment disclosures
relating to total assets and liabilities have not been furnished.

(a) Property, plant and equipment with gross block of Rs. 256 Lakhs (Previous year : Rs. 273 Lakhs) are lying with MML.

(b) The remuneration to key managerial personnel includes reimbursements and excludes the provisions made for gratuity and compensated absences,
as they are determined on an actuarial basis for the Company as a whole.

(c) The Company had received orders from the Debt Recovery Tribunal, Karnataka, Bangalore (DRT), whereby the Company has been directed not to
pay/release amounts that may be payable with respect to shares in the Company held by an erstwhile director (including his joint holdings) and
certain other shareholders, without its prior permission; accordingly, the Company has withheld payment of Rs. 7,287 Lakhs (net of taxes) relating to
dividend on aforesaid shares. Further, the Company had received various orders from tax and provident fund authorities prohibiting the Company
from making any payment to an erstwhile director; accordingly the Company has withheld payment of Rs. 45 Lakhs (net of TDS) relating to director
commission and sitting fees payable to the aforesaid erstwhile director.

(d) Deemed capital contribution - share based payments - Cost related to longterm incentive plans of 2022-24 & 2023-25 awarded to employees of the
Company by its ultimate holding company, has not been cross charged to the Company.

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those prevailing in arm's length transaction. The outstanding
receivables/payables balances are generally unsecured and interest free. There have been no guarantees provided to or received
from any related party.

38. FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENT

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorised within
the fair value hierarchy, as below, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 : Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable

Level 3 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The fair value measurement hierarchy of the Company's assets and liabilities is as below:

39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance the Company's operations. The Company's principal financial assets include investments, trade and other
receivables, cash and cash equivalents, bank balances and security deposits that are out of regular business operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management
of these risks. The Company's senior management is supported by a risk management committee that advises on financial risks
and the appropriate financial risk governance framework for the Company.

The risk management committee provides assurance to the Company's senior management that the Company's financial risk
activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed
in accordance with the Company's policies and risk objectives. All derivative activities for risk management purposes are carried
out by specialist teams that have the appropriate skills, experience and supervision. It is the Company's policy that no trading in
derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of
these risks, which are summarised below.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of changes in
market prices. Market risk comprises of three types of risk i.e. interest rate risk, currency risk and other price risk, such as commodity
risk. Financial instruments affected by market risk include borrowings and trade payables.

i. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company's financial instruments will fluctuate because
of changes in market interest rates. The Company's exposure to the risk of changes in market interest rate relates primarily to the
Company's borrowings with floating interest rates.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on borrowings affected. With all
other variables held constant, the Company's profit before tax is affected through the impact on floating rate borrowings, as follows:

There has been no transfers between levels during the year.

Considering that the amounts involved for investment in equity instruments are not significant, fair value fluctuations are not
expected to be material and hence no further disclosure has been made. The fair values of investment in quoted debt instruments
are based on price quotations and available market information at the reporting date are classified as Level 1.

The fair value of investment in subsidiary for the purpose of impairment assessment is determined based on fair valuation of the
underlying assets. The key assumptions used in the valuation includes marketability discount of 10% and cost to sell of 2%. The
sensitivity of 5% increase/(decrease) in the marketability discount and cost of sell would have an immaterial impact on the valuation.

The management assessed that the carrying values of trade and other receivables, cash and short-term deposits, other assets,
borrowings, trade and other payables and balances with related parties, based on their notional amounts, reasonably approximate
their fair values because these instruments have short-term maturities.

40. CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other
equity reserves attributable to the equity shareholders. The primary objective of the Company's capital management is to ensure
that it maintains a strong credit rating and capital ratios in order to support its business and maximise shareholder value.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company includes within net
debt, all non-current and current borrowings reduced by cash and cash equivalents and other bank balances.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing borrowings that define capital structure requirements. The breaches in meeting
the financial covenants would permit the bank to immediately call borrowings. There have been no breaches in the financial
covenants of any interest-bearing borrowings in the current year or previous year.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2025 and
March 31, 2024.

41. The Bihar State Government ("the Government”) vide its notification dated April 5, 2016 had imposed ban on trade and
consumption of alcoholic beverages in the State of Bihar. The Company had filed a writ petition with the High Court at Patna,
requesting remedies and compensation for losses incurred on account of such abrupt notification, which was allowed by Patna
High Court and against which the Government preferred a special leave petition before the Supreme Court of India, which is
currently pending for final conclusion.

During the financial year 2018-19, in order to maintain the assets in running condition, the Company commenced manufacture
of non-alcoholic beverages at its existing manufacturing facility at Bihar. The Company carried out an impairment assessment
of its property, plant and equipment and the recoverable amount for these property, plant and equipment is determined by
an external valuer based on a fair value less cost of disposal calculation.

Effective May 1, 2022, the Company has closed its manufacturing operations from the Bihar unit, considering the economies
of scale of operations for non-alcoholic beverages. The Company has received a show cause notice dated June 25, 2022 from
Bihar Industrial Area Development Authority (BIADA) for cancellation of its land lease in Bihar considering the non-operation
of the manufacturing unit. The Company, based on legal advice, filed its response to the said show-cause notice stating that
there has been no violation of the BIADA Act and the notice to the Company is not maintainable. BIADA, thereafter, issued
another show cause notice dated November 2, 2022 to start production within 30 days failing which the allotment of land
would be cancelled forfeiting the allotment money. The Company sought six months' time to commence production as per
the Amnesty Scheme of BIADA. However, BIADA cancelled the allotment of land to the Company vide order dated December
16, 2022, against which the Company filed a writ before the High Court of Patna. The High Court vide order dated January
25, 2023, directed to maintain the status quo and also directed the Company to file an undertaking that it will commence
commercial production in the unit. The Company has filed undertaking in the High Court that it will start commercial production
in the unit after BIADA recalls the order of cancellation. On February 8, 2023, the High Court directed BIADA to take a policy
decision to deal with the situation arising out of the action of BIADA in the present petition and identical matters. On August
10,2023 BIADA notified two policies for availing options by the allottees to either (i) surrender the land; or (ii) sell/transfer the
land; and on October 5, 2023 BIADA notified another policy also to continue manufacturing activities over the allotted land.

On October 30, 2023, the Company filed an application to amend the aforementioned writ to include additional matters
related to setting aside the policy related to the continuance of the manufacturing activities over the allotted land which has
stringent conditions or alternatively direct BIADA to extend the time period to six months to avail the option to sell/transfer
the land. The matter is pending with the High Court.

As at March 31, 2025, the carrying value of property, plant and equipment at Bihar is Rs. 6,289 Lakhs (net of depreciation
and impairment). Recoverable value is determined based on the higher of value in use and fair value less cost of disposal.
In determining the fair value less cost of disposal, the Company evaluated and concluded its right to transfer the leasehold
land after considering contractual rights available to the Company under the BIADA Act.

42. OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company has balances with the below mentioned companies, struck off under Section 248 of Companies Act, 2013 or
Section 560 of Companies Act, 1956.

Name of the Company : RBC Bearings Private Limited

Nature of the transactions: Purchases

Balance outstanding as on March 31, 2025: Rs. Nil (Previous year - Rs. 0.50)

Relationship with struck off company: Not related as per Section 2(76) of the Companies Act 2013

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
except for Rs. 50 Lakhs in relation to loan repaid in the past.

(iv) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources
or kind of funds) to or in any other persons(s) or entity(ies), including foreign entities (Intermediaries) with the understanding
whether recorded in writing or otherwise, that the Intermediary shall:

(a) 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

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

(vi) 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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

43. The Code on Social Security, 2020 ("the Code) which would impact the contributions by the Company towards Provident Fund
and Gratuity, has received Presidential assent in September 2020. The Code have been published in the Gazette of India.
However, the date from which the Code will come into effect has not been notified. The Ministry of Labour and Employment
(Ministry) has released draft rules for the Code on November 13, 2020 and has invited suggestions from stake holders which
are under active consideration by the Ministry. The Company will complete its evaluation and will give appropriate impact in
its standalone financial results in the period in which the Code becomes effective and the related rules are published.