j. Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the Company has a present obligation (Legal or constructive) as aresult of a past event, it is probable that an outflow of resources embodying economic benefitswill be required to settle the obligation and a reliable estimate can be made of the amount of theobligation. When the Company expects some or all of a provision to be reimbursed, for example,under an insurance contract, the reimbursement is recognised as a separate asset, but only whenthe reimbursement is virtually certain. The expense relating to a provision is presented in theStatement of Profit and Loss net of any reimbursement. Provisions are measured at the bestestimate of the expenditure required to settle the present obligation at the Balance Sheet date.
If the effect of the time value of money is material, provisions are discounted using a current pre¬tax rate that reflects, its present value, that reflects the current market assessments of the timevalue of money and the risks specific to the liability. When discounting is used, the increase inthe provision due to the passage of time is recognised as a finance cost.
Contingent liabilities are disclosed in the Notes to the Financial Statements. Contingent liabilitiesare disclosed for (1) possible obligations which will be confirmed only by future events not whollywithin the control of the Company or (2) present obligations arising from past events where it isnot probable that an outflow of resources will be required to settle the obligation or a reliableestimate of the amount of the obligation cannot be made.
The Company has ongoing disputes with Tax Authorities on various matters which are pendingbefore appellate authorities. In this regard, the management evaluates whether it has any uncertaintax position requiring adjustments to provision for taxes. Depending on probability of successin the matter before the Appellate Authorities, a provision is created or a Contingent liability isdisclosed.
Contingent assets are not recognised in the financial statements as this may result in the recognitionof income that may never be there.
k. Financial instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to thecontractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs thatare directly attributable to the acquisition or issue of the financial asset and financial liabilities(other than financial asset and financial liabilities at fair value through profit or loss) are addedto or deducted from the fair value of the financial asset or financial liabilities, as appropriate, oninitial recognition. Transactions costs directly attributable to the acquisition of financial asset andfinancial liabilities at fair value through profit or loss are recognised immediately in the Statementof Profit and Loss.
l. Financial assets
All regular way purchases or sales of financial assets are recognised and derecognised on a tradedate basis. Regular way purchases or sales are purchases or sales of financial assets that requiredelivery of assets within the time frame established by regulation or convention in the marketplace.
All recognised financial assets (except trade receivables) are subsequently measured at eitheramortised cost or fair value through profit or loss or fair value through other comprehensiveincome, depending on the classification of the financial assets. Financial assets are not reclassifiedsubsequent to their recognition, except during the period the Company changes its business modelfor managing financial assets.
Classification of financial assets
Debt instruments that meet the following conditions are subsequently measured at amortisedcost:
a) The asset is held within a business model whose objective is to hold assets in order or collectcontractual cash flows; and
b) The contractual terms of the instrument give rise on specified dates to cash flows that aresolely payments of principal and interest on the principal amount outstanding.
Debt instruments that does not meet the above conditions are subsequently measured at fairvalue. Financial assets that are held within a business model whose objective is achieved by both,selling financial assets and collecting contractual cash flows that are solely payments of principaland interest, are subsequently measured at fair value through other comprehensive income. Fairvalue movements are recognized in the other comprehensive income (OCI). A financial asset notclassified as either amortised cost or Fair Value through OCI, is classified as Fair Value throughProfit or loss.
Effective interest method
The effective interest is a method of calculating the amortised cost of a debt instrument and ofallocating interest income over the relevant period. The effective interest rate is the rate thatexactly discounts estimated future cash receipts through the expected life of the debt instrument,or, where appropriate, a shorter period, to the net carrying amount in initial recognition.
Income is recognised on an effective interest basis for debt instruments. Interest income isrecognised in the Statement of Profit and Loss and is included in the "Other income" Line item.
Impairment of financial assets
The Company applies expected credit loss model for recognising impairment loss on financialassets measured at amortised cost, trade receivables and other contractual rights to receive cashor other financial asset.
Expected credit losses are the weighted average of credit losses with the respective risks ofdefault occurring as the weights. Credit loss is the difference between all contractual cash flowsthat are due to the Company in accordance with the contract and all the cash flows that theCompany expects to receive (i.e. all cash shortfalls), discounted at the original effective interestrate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financialassets). The Company estimates cash flows by considering all contractual terms of the financialinstrument (for example, prepayment, extension, call and similar options) through the expected lifeof that financial instrument.
The Company measures the loss allowance for a financial instrument at an amount equal tothe lifetime expected credit losses if the credit risk on that financial instrument has increasedsignificantly since initial recognition. If the credit risk on a financial instrument has not increasedsignificantly since initial recognition, the Company measures the loss allowance for that financialinstrument at an amount equal to 12-month expected credit losses. 12-month expected creditlosses are portion of the life-time expected credit losses and represent the lifetime cash shortfallsthat will result if default occurs within the 12 months after the reporting date and thus, are notcash shortfalls that are predicted over the next 12 months.
For trade receivables or any contractual right to receive cash, the Company always measures theloss allowance at an amount equal to lifetime expected credit losses.
Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables,the Company has used a practical expedient as permitted under Ind AS 109. This expected creditloss allowance is computed based on a provision matrix which takes into account historical creditloss experience with adjusted for forward-looking information.
Derecognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from theasset expire, or when it transfers the financial asset and substantially all the risks and rewards ofownership of the asset to another party. If the Company neither transfers nor retains substantiallyall of the risks and rewards of ownership and continues to control the transferred asset, theCompany recognises its retained interest in the asset and an associated liability for amounts itmay have to pay. If the Company retains substantially all of the risks and rewards of ownershipof a transferred financial asset, the Company continues to recognise the financial asset and alsorecognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset in its entirety, the difference between the asset's carryingamount and the sum of the consideration received and receivable and the cumulative gain or lossthat had been recognised in other comprehensive income and accumulated in equity is recognisedin profit or loss if such gain or loss would have otherwise been recognised in the Statement ofProfit and Loss on disposal of that financial asset.
On derecognition of a financial asset other than in its entirety, the Company allocates the previouscarrying amount of the financial asset between the part it continues to recognise under continuinginvolvement, and the part it no longer recognises on the basis of the relative fair values of thoseparts on the date of the transfer. The difference between the carrying amount allocated to thepart that is no longer recognised and the sum of the consideration received for the part no longerrecognised and any cumulative gain or loss allocated to it that had been recognised in othercomprehensive income is recognised in the Statement of Profit and Loss on disposal of that
financial asset. A cumulative gain or Loss that had been recognised in other comprehensive incomeis allocated between the part that continues to be recognised and the part that is no longerrecognised on the basis of the relative fair values of those parts.
Foreign exchange gains and losses
The fair value of financial assets denominated in a foreign currency is determined in that foreigncurrency and translated at the spot rate at the end of each reporting period.
For foreign currency denominated financial assets measured at amortised cost, the exchangedifferences are recognised in the Statement of Profit and Loss.
m. Financial liabilities and equity instrumentsClassification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liability or asequity in accordance with the substance of the contractual arrangements and the definitions of afinancial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entityafter deducting all of its liabilities. Equity instruments issued by the Company is recognised at theproceeds received, net of direct issue costs.
Repurchase of the Company's own equity instruments is recognised and deducted directly inequity. No gain or loss is recognised in the Statement of Profit and Loss on the purchase, sale,issue or cancellation of the Company's own equity instruments.
Financial liabilities
All financial liabilities are subsequently measured at amortised cost using the effective interestmethod.
Financial liabilities at initial recognition are classified as financial liabilities at fair value throughprofit or loss, loans, borrowings and trade payables, as appropriate.
Financial liabilities that are not held-for-trading and are not designated as at fair value throughprofit or loss are measured at amortised cost at the end of the subsequent accounting period.The carrying amount of financial liabilities that are subsequently measured at amortised cost aredetermined based on the effective interest method. Interest expense that is not capitalised as partof costs of an asset is included in the "Finance costs" in the Statement of Profit and loss.
The effective interest method is a method of calculating the amortised cost of a financial liabilityand of allocating interest expense over the relevant period. The effective interest rate is therate that exactly discounts estimated future cash payments through the expected life of thefinancial liability, or, (where appropriate), a shorter period, to the net carrying amount at initialrecognition.
For financial liabilities that are denominated in a foreign currency and are measured at amortisedcost at the end of each reporting period, the foreign exchange gains and losses are determinedbased on the amortised cost of the instrument and are recognised in the Statement of Profit andLoss.
Derecognition
The Company derecognises a financial liability when, and only when, the Company's obligationsare discharged, cancelled or have expired. An exchange with a lender of debt instruments withsubstantially different terms is accounted for as an extinguishment of the original financial liabilityand the recognition of a new liability. Similarly, a substantial modification of the terms of anexisting financial liability is accounted for as an extinguishment of the original financial liability
and the recognition of a new Liability. The difference between the carrying amount of the financialLiability derecognised and the consideration paid and payable is recognised in the Statement ofProfit and Loss.
n. Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided tothe Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocatingresources and assessing performance of the operating segments of the Company.
o. Cash and Cash Equivalents
Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques inhand, bank balances, demand deposits with banks where the original maturity is three months orless and other short term highly liquid investments.
p. Earnings Per Share
Basic earnings per share is computed by dividing the net profit for the year after tax for the periodattributable to the equity shareholders of the Company by the weighted average number of equityshares outstanding during the period. The weighted average number of equity shares outstandingduring the period and for all periods presented is adjusted for events, such as bonus shares, otherthan the conversion of potential equity shares that have changed the number of equity sharesoutstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit / loss for the periodattributable to equity shareholders and the weighted average number of shares outstanding duringthe period is adjusted for the effects of all dilutive potential equity shares.
q. Claims
Claims against the Company not acknowledged as debts are disclosed after a careful evaluation ofthe facts and legal aspects of the matter involved.
2.4 Other accounting policies
a. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifyingassets, which are assets that necessarily takes a substantial period of time to get ready for itsintended use or sale, are added to the cost of those assets, until such time as the assets aresubstantially ready for their intended use or sale.
All other borrowing costs are recognised in the Statement of Profit and Loss in the period in whichthey are incurred.
2.5 Recent accounting pronouncementsStandards issued but not yet effective
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existingstandards under Companies (Indian Accounting Standards) Rules as issued from time to time.In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign ExchangeRates, applicable w.e.f. April 1, 2025. The Company has reviewed the amendment and based on itsevaluation has determined that it does not have any significant impact in its financial statements.
In August 2025, MCA notified the following amendments to:
1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f April 1, 2025 - The amendmentrelates to classification of liabilities as current or non-current and non-current liabilities withcovenants. In the context of classifying a liability as current, it removes the requirement of existenceof a right to defer settlement for at least 12 months after the reporting date and instead requiresthat the said right should exist on the reporting date and have substance. The amendment also
introduces guidance on classification of Liabilities with covenants. The Company has no impact ofthese amendments in its classification criteria of current and non-current liabilities.
2. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments - Disclosures, applicablew.e.f April 1, 2025 - The amendment to Ind AS 7 requires users of financial statements to be informedof the existence of supplier finance arrangements and explain the nature of the arrangements, thecarrying amount of liabilities and the range of payment due dates. Ind AS 107 has been amended toadd supplier finance arrangements as a factor that may cause concentration of liquidity risk. TheCompany, currently, does not have any vendor financing arrangements.
3. Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - IND AS12 has been amended to apply to income taxes arising from Pillar Two model rules published bythe Organisation for Economic Co-operation and development, including tax law that implementsqualified domestic minimum top-up taxes described in those rules. The amendments also providea relief from recognising nor disclosing information about deferred tax assets and liabilities relatedto the above Model. India has not formally enacted Pillar Two legislation into its domestic statuteyet. Further, the tax rate applicable to the Company in India is more than 15 percent hence, theCompany has determined that there is no impact on the financial statements on account of thisamendment.
3 Critical accounting judgments and key sources of estimation uncertainty3.1 Critical judgments in applying accounting policies
In the application of the Company's accounting policies, which are described in Note 2, the Directorsof the Company are required to make judgements, estimates and assumptions about the carryingamounts of assets and liabilities that are not readily apparent from other sources. The estimates andassociated assumptions are based on historical experience and other factors that are considered to berelevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only thatperiod, or in the period of the revision and future periods of the revision if it affects both current andfuture periods.
3.2 Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimationuncertainty at the end of the reporting period that may have a significant risk of causing a materialadjustment to the carrying amounts of assets and liabilities within the next financial year.
a. Useful lives of property, plant and equipment
As described at 2.3 (g) above, the Company reviews the estimated useful lives and residual valuesof property, plant and equipment at the end of each reporting period.
b. Fair value measurements and valuation processes
Some of the Company's assets and liabilities are measured at fair value for financial reportingpurposes. The Management of the Company determines appropriate valuation techniques andinputs for fair value measurements.
In estimating the fair value of an asset or a liability, the Company uses market-observable datato the extent it is available. Where level 1 inputs are not available, the Company engages thirdparty qualified valuers to perform the valuation. The Management works closely with the qualifiedexternal valuers to establish the appropriate valuation techniques and inputs to the model.
Information about the valuation techniques and inputs used in determining the fair value of variousassets and liabilities is disclosed in Note 31.
c. Defined benefit obligation
The costs of providing pensions and other post-employment benefits are charged to the Statementof Profit and Loss in accordance with Ind AS 19 ‘Employee benefits’ over the period during whichbenefit is derived from the employees’ services. The costs are assessed on the basis of assumptionsselected by the Management. These assumptions include salary escalation rate, discount rates,expected rate of return on assets and mortality rates. The same is disclosed in note 24, ‘Employeebenefits expense’.
d. Income taxes
The Company’s tax jurisdiction is India. Significant judgements are involved in estimating budgetedprofits for the purpose of paying advance tax, determining the provision for income taxes, includingamount expected to be paid / recovered for uncertain tax positions (refer note 27).
e. Measurement and likelihood of occurrence of provisions and contingencies - As disclosed in Note14 and Note 36, Management has estimated and measured the likelihood of the litigations andaccounted the provision and contingencies as appropriate.
f. The estimation of the various types of discounts, incentives, promotions and rebate schemes to berecognised based on sales made during the year (refer note 20).
Notes:
(a) Loans given to employees / key managerial personnel as per the Company’s policy are not consideredfor the purposes of disclosure under Section 186 (4) of the Act.
(b) There are no loans or advances in the nature of loans granted to Promoters, Directors, KMPs and theirrelated parties (as defined under Companies Act, 2013), either severally or jointly with any other person,that are:
(i) repayable on demand; or
(ii) without specifying any terms or period of repayment
The Company has only one class of equity shares having par value of ' 10 per share. Each holder of equityshares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. Thefinal dividend proposed by the Board of Directors is subject to the approval of the shareholders in theensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remainingassets of the Company, after distribution of all preferential amounts. The distribution will be in proportionto the number of equity shares held by the shareholders.
No shares are bought back by the Company during the period of 5 years immediately preceding the BalanceSheet date.
No shares are allotted as fully paid up by way of bonus shares during the period of 5 years immediatelypreceding the Balance Sheet date.
No shares are reserved for issue under options and contracts/commitments for the sale of shares/disinvestment.
No shares are allotted as fully paid up pursuant to contracts without being payment received in cash duringthe period of 5 years immediately preceding the Balance Sheet date.
This Reserve represents the cumulative profits of the Company and effects of remeasurement of definedbenefits obligation. This Reserve can be utilised in accordance with the provisions of the Act.
In September 2025, final dividend of ' 47 per share (total dividend ' 15 315 lakhs) for the period endedMarch 31, 2025 was paid to holders of fully paid equity shares. In December 2024, final dividend of ' 45per share (total dividend ' 14 663 lakhs) for the year ended June 30, 2024 was paid to holders of fully paidequity shares.
In February 2026, an interim dividend of ' 180 per share (including a one-time special dividend of ' 60 perequity share) (total dividend ' 58 653 lakhs) was paid to holders of fully paid equity shares.
In February 2025, an interim dividend of ' 65 per share (total dividend ' 21 180 lakhs) was paid to holdersof fully paid equity shares.
The Company had in earlier years filed a writ petition in the High Court of Himachal Pradesh at Shimlachallenging the premature withdrawal of Excise duty exemption for packing/repacking activities at its BaddiManufacturing Facility. The High Court has since passed an order on April 24, 2008 in favour of the Companyand has struck down the notification withdrawing the excise exemption. The Excise department has preferredan appeal on October 31, 2009 with the Hon'ble Supreme Court of India against the said order of the High
The Company’s Lease assets classes primarily consist of Leases for Land, buildings and equipments.
a. The maturity analysis of lease liabilities are disclosed in note 31.
b. The carrying amounts of right-of-use assets recognised, the movements during the year and thedepreciation expense on Right-of-Use assets are given in note 4.
c. The interest expense on lease liabilities recognised is given in note 25.
d. The Company incurred ' Nil Lakhs for the year ended March 31, 2026 (March 31, 2025) towards expensesrelating to short-term leases and leases of low-value assets.
e. The total cash outflow for leases is for the year ended March 31, 2026 (March 31, 2025).*
* denotes amount less than ' 50 000
28 Segment information28.1 Products from which reportable segments derive their revenues
Information reported to the chief operating decision maker (CODM) for the purposes of resource allocationand assessment of segment performance focuses on the types of goods delivered. The Directors of theCompany have chosen to organise the Company around differences in products. No operating segmentshave been aggregated in arriving at the reportable segments of the Company.
Specifically, the Company's reportable segments under Ind AS 108 - Operating Segments are as follows:
- The grooming segment, produces and sells shaving system and cartridges, blades, toiletries andcomponents.
- The oral care segment, produces and sells tooth brushes and oral care products.
For the purpose of monitoring segment performance and allocating resources between segments:
a) All assets are allocated to reportable segments other than loans, other financial assets and income taxand deferred tax assets. Assets used jointly by reportable segments are allocated on the basis of therevenues earned by individual reportable segments; and
b) All liabilities are allocated to reportable segments other than other financial liabilities, provisionsand current tax liabilities. Liabilities for which reportable segments are jointly liable are allocated inproportion to the segment cost ratio.
30 Employee benefit plans30.1 Defined contribution plans
The Company operates defined contribution superannuation fund and employees' state insurance plan forall qualifying employees of the Company. Where employees leave the plan, the contributions payable bythe Company is reduced by the amount of forfeited contributions.
The employees of the Company are members of a state-managed employer's contribution to employees'state insurance plan and superannuation fund which is administered by the Life Insurance Corporationof India. The Company is required to contribute a specific percentage of payroll costs to the contributionschemes to fund the benefit. The only obligation of the Company with respect to the contribution plan isto make the specified contributions.
The total expense recognised in the statement of profit and loss of ' 39 lakhs (for the nine month periodended March 31, 2025: ' 39 lakhs) for superannuation fund represent contributions payable to these plansby the Company at rates specified in the rules of the plans. As at March 31, 2026, contributions of ' 2 lakhs(as at March 31, 2025'4 lakhs) due in respect of 2025-2026 (2024-2025) reporting period had not beenpaid over to the plans. The amounts were paid subsequent to the end of the reporting periods.
30.2 Defined benefit plans and other long term employee benefits plan
a) Gratuity Plan (Funded)
The Company sponsors funded defined benefit gratuity plan for all eligible employees of the Company.The Company’s defined benefit gratuity plan is a salary plan for India employees, which requirescontributions to be made to a separately administered trust, which is administered through trusteesand / or Life Insurance Corporation of India, where one of the group company is also the participant.The gratuity plan is governed by the Payment of Gratuity Act, 1972 and Company Policy. Under the act,employee who has completed five years of service is entitled to specific benefit. The level of benefitsprovided depends on the member’s length of service, designation and salary at retirement age.
b) Provident Fund (Funded)
Provident Fund for all permanent employees is administered through a trust. The provident fund isadministered by trustees of an independently constituted common trust recognised by the Income Taxauthorities. Periodic contributions to the fund are charged to revenue. The Company has an obligationto make good the shortfall, if any, between the return from the investment of the trust and notifiedinterest rate by the Government. The contribution by employer and employee together with interestare payable at the time of separation from service or retirement whichever is earlier. The benefit underthis plan vests immediately on rendering of service.
c) Post Retirement Medical Benefit (PRMB) (Unfunded)
The Company provides certain post-employment medical benefits to employees. Under the scheme,employees get medical benefits subject to certain limits of amount, periods after retirement andtypes of benefits, depending on their grade at the time of retirement. Employees separated from theCompany as part of early separation scheme are also covered under the scheme. The liability for postretirement medical scheme is based on an independent actuarial valuation.
d) Compensated absences for Plant technicians (Unfunded)
The Company also provides for compensated absences for plant technicians which allows forencashment of leave on termination / retirement of service or leave with pay subject to certain rules.The employees are entitled to accumulate leave subject to certain limits for future encashment /availment. The Company makes provision for compensated absences based on an independentactuarial valuation carried out at the end of the year.
e) Long Service Awards (Unfunded)
Long Service Awards are payable to employees on completion of specified years of service.
These plans typically expose the Company to actuarial risks such as: Investment risk, interest rate risk,longevity risk and salary risk.
Significant actuarial assumptions in the determination of the defined obligation are discountrate, expected salary increase and mortality. The sensitivity analysis below have been determinedbased on reasonable possible changes of the respective assumptions occurring at the end ofthe reporting period, while holding all other assumptions constant.
Gratuity Plan (Funded)
If the discount rate is 50 basis points higher (lower), the defined benefit obligation woulddecrease by ' 362 lakhs (increase by ' 388 lakhs) (as at March 31, 2025: decrease by ' 387 lakhs(increase by ' 415 lakhs)).
If the expected salary growth increases (decreases) by 0.5%, the defined benefit obligationwould increase by ' 363 lakhs (decrease by ' 344 lakhs) (as at March 31, 2025: increase by' 390 lakhs (decrease by ' 369 lakhs)).
Compensated absence plan (Unfunded)
If the discount rate is 50 basis points higher (Lower), the other benefit obligation would decrease by ' 37Lakhs (increase by ' 40 lakhs) (as at March 31, 2025: decrease by ' 35 lakhs (increase by ' 38 lakhs)).
If the expected salary growth increases (decreases) by 0.5%, the other benefit obligation would increase by' 39 lakhs (decrease by ' 36 lakhs) (as at March 31, 2025: increase by ' 37 lakhs (decrease by ' 34 lakhs)).
Post retirement medical benefit (PRMB) (Unfunded)
If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease by ' 8lakhs (increase by ' 9 lakhs) (as at March 31, 2025: decrease by ' 9 lakhs (increase by ' 9 lakhs)).
If the expected medical inflation rate increases (decreases) by 0.5%, the defined benefit obligation wouldincrease by ' 8 lakhs (decrease by ' 7 lakhs) (as at March 31, 2025: increase by ' 8 lakhs (decrease by ' 8lakhs)).
If the expected life expectancy increases (decreases) by 1 year, the defined benefit obligation wouldincrease by ' 4 lakhs (decrease by ' 4 lakhs) (as at March 31, 2025: increase by ' 4 lakhs (decrease by ' 4lakhs)).
Long Service Awards (Unfunded)
If the discount rate is 50 basis points higher (lower), the other benefit obligation would decrease by ' 35lakhs (increase by ' 37 lakhs) (as at March 31, 2025: decrease by ' 29 lakhs (increase by ' 31 lakhs)).
If the expected gold inflation rate increases (decreases) by 0.5%, the other benefit obligationwould increase by ' 37 lakhs (decrease by ' 35 lakhs) (as at March 31, 2025: increase by' 31 lakhs (decrease by ' 29 lakhs)).
The sensitivity analysis presented above may not be representative of the actual change of the definedbenefit obligation as it is unlikely that the change in assumptions would occur in isolation of one anotheras some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligationhas been calculated using the projected unit credit method as the end of the reporting period, which isthe same as that applied in calculating the defined benefit obligation liability recognised in the balancesheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prioryears.
30.3 Provident Fund
The Provident Fund assets and liabilities are managed by "Gillette Employees Provident Fund Trust" inline with The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
The plan guarantees minimum interest at the rate notified by the Provident Fund Authorities. Thecontribution by the employer and employee together with the interest accumulated thereon arepayable to employees at the time of separation from the Company or retirement, whichever is earlier.The benefit vests immediately on rendering of the services by the employee. In terms of the guidancenote issued by the Institute of Actuaries of India for measurement of provident fund liabilities, theactuary has provided a valuation of provident fund liability and based on the assumptions providedbelow, there is no shortfall as at March 31, 2026.
The Company's contribution to Provident Fund ' 1 072 Lakhs (Previous Year: ' 769 Lakhs) has beenrecognised in the statement of profit and loss under the head employee benefits expense (refer note24).
31 Financial instruments31.1 Capital management
The Company manages its capital to ensure that it will be able to continue as going concerns whilemaximising the return to stakeholders through the optimisation of the debt and equity balance. Equityshare capital and other equity are considered for the purpose of group's capital management.
The Company is not subject to any externally imposed capital requirements.
The Company's risk management committee manages its capital structure and makes adjustments inlight of changes in economic conditions and the requirements of the financial covenants. To maintainor adjust the capital structure, the Company may adjust the dividend payment to shareholders, returnon capital to shareholders or issue new shares.
Assets and Liabilities that are disclosed at Amortised Cost for which Fair values are disclosed are classifiedas Level 3
Current financial asset and current financial Liabilities have fair values that approximate to their carryingamounts due to their short-term nature. Non current financial assets and non current financial liabilitieshave fair values that approximate to their carrying amounts as it is based on the net present value of theanticipated future cash flows.
31.3 Financial risk management objectives
The Company’s overall policy with respect to managing risks associated with financial instruments is tominimise potential adverse effects of financial performance of the Company. The policies for managingspecific risks are summarised below.
A. Market Risk
(i) Interest rate risk management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument willfluctuate because of changes in market interest rates. Since the Company does not have interestbearing borrowings, it is not exposed to risk of changes in market interest rates. The Company hasnot used any interest rate derivatives.
(ii) Foreign currency risk management
The Company undertakes transactions denominated in foreign currencies; consequently, exposuresto exchange rate fluctuations arise. Exchange rate exposures are managed within approved policyparameters.
Foreign currency sensitivity analysis
The Company is mainly exposed to the currencies stated above.
The following table details impact to profit or loss of the Company by sensitivity analysis of a 10%increase and decrease in the respective currencies against the functional currency of the Company.10% is the sensitivity rate used when reporting foreign currency risk internally to key managementpersonnel and represents management's assessment of the reasonably possible changes in foreignexchange rates. The sensitivity analysis includes only outstanding foreign currency denominatedmonetary items and adjusts their translation at the period end for a 10% change on foreign currencyrates.
If the relevant foreign currency strengthens/weakens by 10% against the functional currency of theCompany, profit or loss will increase (decrease) by:
(iii) Other price risk management
Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changesin market traded price. The Company is not exposed to pricing risk as the Company does not haveany investments in equity instruments and bonds.
B. Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting infinancial loss to the Company.
Trade Receivables
Concentration of credit risk with respect to trade receivables are limited, due to the Company’s customerbase being large and diverse. The Company performs ongoing credit evaluation of the counterparty’sfinancial position as a means of mitigating the risk of financial loss arising from defaults. The Companyonly grants credit to creditworthy counterparties.
The Company does not have any significant credit risk exposure to any single counterparty or any groupof counterparties having similar characteristics as disclosed in Note 9 to the financial statements.
Other financial assets
Other financial assets include employee loans, security deposits, cash and cash equivalents, depositswith bank etc. Based on historical experience and credit profiles of counterparties, the Company doesnot expect any significant risk of default.
The Company’s maximum exposure to credit risk for each of the above categories of financial assets istheir carrying values.
C. Liquidity risk management
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitmentsassociated with financial instruments that are settled by delivering cash or another financial asset.Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. TheCompany maintains adequate highly liquid assets in the form of cash to ensure necessary liquidity.
31.4 Fair value measurements
The carrying amount of financial assets and financial Liabilities measured at amortised cost in the financialstatements are a reasonable approximation of their fair values since the Company does not anticipate thatthe carrying amounts would be significantly different from the values that would eventually be received orsettled.
32 Share-based payments
a) International Stock Ownership Plan (Stocks of the Ultimate Holding Company)
The Procter and Gamble Company, USA has an “International Stock Ownership Plan” (employeeshare purchase plan) whereby specified employees of its subsidiaries have been given a rightto purchase shares of the Ultimate Holding Company i.e. The Procter and Gamble Company,USA. Every employee who opts for the scheme contributes by way of payroll deduction up to aspecified percentage (upto 15%) of base salary towards purchase of shares on a monthly basis. TheCompany contributes 50% of employee's contribution (restricted to 2.5% of his base salary). Suchcontribution is charged under employee benefits expense.
The shares of The Procter & Gamble Company USA are listed with New York Stock Exchange of USAand are purchased on behalf of the employees at market price on the date of purchase. Duringthe year ended 3886.26 shares (Previous year: 2775.94 shares) excluding dividend were purchasedby employees at weighted average fair value of ' 14 793 (Previous year: ' 14 321.48) per share.The Company's contribution during the year on such purchase of shares amounts to ' 165 lakhs(Previous year: ' 115 lakhs).
b) Employees Stock Options Plan (Stocks of the Ultimate Holding Company)
The Procter and Gamble Company, USA has an “Employee Stock Option Plan” whereby specifiedemployees of its subsidiaries covered by the plan are granted an option to purchase shares ofthe Ultimate Holding Company i.e. The Procter and Gamble Company, USA at a fixed price (grantprice) for a fixed year of time. The shares of The Procter & Gamble Company, USA are listed withNew York Stock Exchange. The Options Exercise price equal to the market price of the underlyingshares on the date of the grant. The Grants issued are vested after 3 years and have a 5/10 yearslife cycle.
The above transactions with related parties includes taxes where applicable
Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. Therehave been no guarantees provided or received for any related party receivables or payables. The Companyhas not recorded any impairment of receivables relating to amounts owed by related parties in the currentyear or prior years. This assessment is undertaken each financial year through examining the financialposition of the related party and the market in which the related party operates.
Dues to Micro and Small Enterprises have been determined to the extent such parties have been identifiedon the basis of information collected by the Management. This has been relied upon by the auditors.
38 (a) Reimbursement/(Recovery) of expenses cross charged to related parties include payment/recoverieson account of finance, personnel, secretarial, administration and planning services rendered undercommon services agreement of the Company with Procter & Gamble Hygiene and Health Care Limitedand Procter & Gamble Home Products Private Limited. (refer note 39).
38 (b) Certain expenses in the nature of employee costs, relocation costs and other expenses are crosscharged by the Company to its fellow subsidiaries at actual. Similar expenses incurred by fellowsubsidiaries are cross charged to the Company at actual.
39 Managerial Remuneration
The computation of managerial remuneration includes an amount of ' 121 Lakhs (Previous year: ' 125 Lakhs)in respect of managerial personnel cross-charged from Procter & Gamble Hygiene and Health Care Limitedand Procter & Gamble Home Products Private Limited in terms of common services agreement referred toin note 38 (a) above.
Proposed Dividend:
The Board of Directors at its meeting held on May 27, 2026 have recommended a payment of final dividendof ' 60 per equity share of face value of ' 10 each for the financial year ended March 31, 2026 resulting ina dividend payout of ' 19 551 lakhs.
The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is notrecognised as a liability.
Note 1 : The numbers are not comparable as previous year is a nine month period vs. twelve month period inthe current year.
42 (a) No transactions to report against the following disclosure requirements as notified by MCA pursuantto amended Schedule III:
i) Crypto Currency or Virtual Currency
ii) Benami Property held under Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
iii) Registration of charges or satisfaction with Registrar of Companies
iv) Relating to borrowed funds:
a) Wilful defaulter
b) Utilisation of borrowed funds & share premium
c) Borrowings obtained on the basis of security of current assets
d) Discrepancy in utilisation of borrowings
e) Current maturity of long term borrowings
v) No funds have been advanced or loaned or invested (either from borrowed funds or share premiumor any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies),including foreign entities (‘Intermediaries’) with the understanding, whether recorded in writingor otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of theCompany (‘Ultimate Beneficiaries’).
vi) The Company has also not received any fund from any party(s) (‘Funding Party’) with theunderstanding that the Company shall whether, directly or indirectly lend or invest in other personsor entities identified by or on behalf of the Company or provide any guarantee, security or the likeon behalf of the Ultimate Beneficiaries.
42(b) The Company has not entered into any such transaction which is not recorded in the books of accountthat has been surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,1961).
43 During FY 2021, National Anti Profiteering Authority (NAA) passed an order alleging that the Companyhas profiteered to the tune of ' 5 799 lakhs (excluding interest) and had directed the Company todeposit the said amount along with interest @ 18% into the Consumer Welfare Funds. The Companyfiled an appeal before Hon’ble Delhi High Court against the said order of NAA and the Hon’ble HighCourt has passed a ‘status quo’ order in favour of the Company, effectively staying the operation of theNAA order. The Delhi High Court (DHC) on January 29, 2024 upheld the constitutional validity of Anti¬profiteering law. The individual cases filed by respective companies continue to be pending and interimorders passed in respective writ petitions shall continue. DHC will take up each company’s petitionto determine on the aspect of correctness of NAA’s orders in their respective cases. The Companyhas filed an appeal against the DHC Order before the Supreme Court (SC), as in our view, DHC haserred in application of certain key legal principles and lacks appreciation for or has failed to take intoconsideration impracticability in implementation of the “proportionate price reduction” as the onlymethod of passing off benefits of reduced tax. The SC has admitted the appeals and have posted it forfurther proceedings.
44 Maintenance of Audit Trail
As required under the second proviso to Section 128(1) of the Companies Act, 2013, read with provisoto Rule 3(1) of the Companies (Accounts) Rules, 2014, the Company has identified applications whichmeet the definition of books of account.
The Company uses an ERP for maintaining its books of accounts, together with certain surroundapplications which either initiate, store, or process information which is subsequently recorded in theERP.
The said surround applications include certain third-party Software-as-a-Service (SaaS) applications,such as an 'Employee Lifecycle and Compensation' application, 'Leave, Workforce and Overtime'application, 'Vendor Master Management' application, 'Product Price Approval and Management'application, an 'International Freight and Logistics Management' application and an ‘InventoryManagement’ application which are hosted and managed by the service providers. The audit trail datafor direct access to the database is available with the third-party software service providers, whichhas been validated through review of Service Organisation Controls (SOC) Reports. For the period notcovered by the SOC Reports, Company has obtained Bridge Letters from the SaaS vendors.
The surround applications also include certain applications such as Inventory Management applicationswhich are hosted on P&G Group’s global servers. These applications are managed by the Group’s ITteams and a privileged access management tool is used to monitor audit trail for direct access to thedatabase.
The ERP and the surround applications have a feature of recording audit trail (edit log) facility whichhas operated throughout the year for all transactions recorded in said applications as required underthe Companies Act, 2013.
45 Labour Code
The Government of India has consolidated 29 existing Labour Legislations into a unified frameworkcomprising four labour codes viz the Code on Wages, 2019, the Code on Social Security, 2020, theIndustrial Relations Code, 2020, and the Occupational Safety, Health and Working Conditions Code,2020 (collectively referred to as the "New Labour Codes"). The New Labour Codes have been madeeffective from November 21, 2025. The Ministry of Labour & Employment published FAQs to enableassessment of the financial impact due to changes in regulations.
The Company has evaluated the impact of the New Labour Codes and has also carried out an actuarialvaluation of employee liabilities basis which there is no impact given that the current salary structureof the Company is in line with the requirements of the New Labour Codes. Post the balance sheet date,while the Central Government has notified the final Rules on May 8, 2026, the relevant State Rules areyet to be notified. The Company will monitor the developments and update the estimates if required,once the State Rules are notified.
46 Approval of financial statements
The financial statements were approved for issue by the Board of Directors on May 27, 2026.