j. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised 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, for example,
under an insurance contract, 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. Provisions are measured at the best
estimate 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 time
value of money and 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.

Contingent liabilities are disclosed in the Notes to the Financial Statements. Contingent liabilities
are disclosed for (i) possible obligations which will be confirmed only by future events not wholly
within the control of the Company or (ii) present obligations arising from past events where it is not
probable that an outflow of resources will be required to settle the obligation or a reliable estimate
of the amount of the obligation cannot be made.

The Company has ongoing disputes with Tax Authorities on various matters which are pending
before appellate authorities. In this regard, the management evaluates whether it has any uncertain
tax position requiring adjustments to provision for taxes. Depending on probability of success
in the matter before the Appellate Authorities, a provision is created or a Contingent liability is
disclosed.

Contingent assets are not recognised in the financial statements as this may result in the recognition
of income that may never be there.

k. Financial instruments

Financial assets and financial Liabilities are recognised when the Company becomes a party to the
contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that
are 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 added
to or deducted from the fair value of the financial asset or financial liabilities, as appropriate, on
initial recognition. Transactions costs directly attributable to the acquisition of financial asset and
financial liabilities at fair value through profit or loss are recognised immediately in the Statement
of Profit and Loss.

l. Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade
date basis. Regular way purchases or sales are purchases or sales of financial assets that require
delivery of assets within the time frame established by regulation or convention in the market
place.

All recognised financial assets (except trade receivables) are subsequently measured at either
amortised cost or fair value through profit or loss or fair value through other comprehensive
income, depending on the classification of the financial assets. Financial assets are not reclassified
subsequent to their recognition, except during the period the Company changes its business model
for managing financial assets.

Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortised
cost:

a) The asset is held within a business model whose objective is to hold assets in order or collect
contractual cash flows; and

b) The contractual terms of the instrument give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

Debt instruments that does not meet the above conditions are subsequently measured at fair
value. 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
principal and interest, are subsequently measured at fair value through other comprehensive
income. Fair value movements are recognized in the other comprehensive income (OCI). A
financial asset not classified as either amortised cost or Fair Value through OCI, is classified
as Fair Value through Profit or loss.

Effective interest method

The effective interest is a method calculating the amortised cost of a debt instrument and
of allocating interest income over the relevant period. The effective interest rate is the rate
that exactly 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 is
recognised in 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 financial
assets measured at amortised cost, trade receivables and other contractual rights to receive
cash or other financial asset.

Expected credit losses are the weighted average of credit losses with the respective risks of
default occurring as the weights. Credit loss 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 effective
interest rate (or credit-adjusted effective interest rate for purchased or originated credit-
impaired financial assets). The Company estimates cash flows by considering all contractual
terms of the financial instrument (for example, prepayment, extension, call and similar options)
through the expected life of that financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to
the lifetime expected credit losses if the credit risk on that financial instrument has increased
significantly since initial recognition. If the credit risk on a financial instrument has not
increased significantly since initial recognition, the Company measures the loss allowance for
that financial instrument at an amount equal to 12-month expected credit losses. 12-month
expected credit losses are portion of the life-time expected credit losses and represent the
lifetime cash shortfalls that will result if default occurs within the 12 months after the reporting
date and thus, are not cash shortfalls that are predicted over the next 12 months.

For trade receivables or any contractual right to receive cash, the Company always measures
the loss 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 credit loss allowance is computed based on a provision matrix which takes into
account historical credit loss 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 the asset expire, or when it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another party. If the Company neither transfers nor
retains substantially all of the risks and rewards of ownership and continues to control the
transferred asset, the Company recognises its retained interest in the asset and an associated
liability for amounts it may have to pay. If the Company retains substantially all of the risks and
rewards of ownership of a transferred financial asset, the Company continues to recognise the
financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the difference between the asset's carrying
amount and the sum of the consideration received and receivable and the cumulative gain or
loss that had been recognised in other comprehensive income and accumulated in equity is
recognised in profit or loss if such gain or loss would have otherwise been recognised in the
Statement of Profit and Loss on disposal of that financial asset.

On derecognition of a financial asset other than in its entirety, the Company allocates the
previous carrying amount of the financial asset between the part it continues to recognise
under continuing involvement, and the part it no longer recognises on the basis of the relative
fair values of those parts on the date of the transfer. The difference between the carrying
amount allocated to the part that is no longer recognised and the sum of the consideration
received for the part no longer recognised and any cumulative gain or loss allocated to it
that had been recognised in other comprehensive 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 income is allocated between the part that continues to be
recognised and the part that is no longer recognised 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
foreign currency and translated at the spot rate at the end of each reporting period.

For foreign currency denominated financial assets measured at amortised cost, the exchange
differences are recognised in Statement of Profit and Loss.

m. Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial Liability or as
equity in accordance with the substance of the contractual arrangements and the definitions of a
financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity
after deducting all of its liabilities. Equity instruments issued by the Company is recognised at the
proceeds received, net of direct issue costs.

Repurchase of the Company's own equity instruments is recognised and deducted directly in
equity. No gain or loss is recognised in 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 interest
method.

Financial liabilities at initial recognition are classified as financial liabilities at fair value through
profit 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 through
profit 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 are
determined based on the effective interest method. Interest expense that is not capitalised as part
of 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 liability
and of allocating interest expense over the relevant period. The effective interest rate is the rate
that exactly discounts estimated future cash payments through the expected life of the financial
liability, or, (where appropriate), a shorter period, to the net carrying amount at initial recognition.
Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign currency and are measured at amortised
cost at the end of each reporting period, the foreign exchange gains and losses are determined
based on the amortised cost of the instrument and are recognised in Statement of Profit and Loss.
Derecognition

The Company derecognises a financial liability when, and only when, the Company's obligations
are discharged, cancelled or have expired. An exchange with a lender of debt instruments with
substantially different terms is accounted for as an extinguishment of the original financial liability
and the recognition of a new liability. Similarly, a substantial modification of the terms of an
existing 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 financial
liability derecognised and the consideration paid and payable is recognised in Statement of Profit
and Loss.

n. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to
the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocating
resources 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 in
hand, bank balances, demand deposits with banks where the original maturity is three months or
less 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 attributable
to the equity shareholders of the Company by the weighted average number of equity shares
outstanding during the period. The weighted average number of equity shares outstanding during
the period and for all periods presented is adjusted for events, such as bonus shares, other
than the conversion of potential equity 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 for the year attributable to
equity shareholders and the weighted average number of shares outstanding during the 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 of
the facts and legal aspects of the matter involved.

r. Assets held for sale

Non-current assets or disposal groups comprising of assets and liabilities are classified as ‘held for
sale’ if it is highly probable that they will be recovered primarily through sales rather than through
continuing use. Subsequently, such non-current assets and disposal groups classified as held for
sale are measured at lower of its carrying value and fair value less costs to sell. Losses on initial
classification as held for sale and subsequent gains and losses on re-measurement are recognised
in profit and loss. Non-current assets held for sale are not depreciated or amortised.

2.4 Other accounting policies

a. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily takes a substantial period of time to get ready for its
intended use or sale, are added to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.

All other borrowing costs are recognised in the Statement of Profit and Loss in the period in which
they are incurred.

2.5 Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
MCA had made certain amendments to Ind AS 116 - Leases and introduced Ind AS 117 - Insurance
Contracts during the financial year ended March 31, 2025. The said amendments are effective from
April 01, 2024. The Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its financial statements.

Additionally, MCA has also made certain amendments to Ind AS 21 - The effects of changes in foreign
exchange rates vide its notification dated 07.05.2025. The said amendments are effective from April 01,
2025. Based on preliminary assessment, the Company does not expect these amendments to have any
significant impact on its financial statements.

3 Critical accounting judgments and key sources of estimation uncertainty

3.1 Critical judgments in applying accounting policies

In the application of the Company's accounting policies, which are described in Note 2, the directors of
the Company are required to make judgments, estimates and assumptions about the carrying amounts
of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant.
Actual results may differ from these estimates.

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

3.2 Key sources of estimation uncertainty

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

a. Useful lives of property, plant and equipment

As described at 2.3 (g) above, the Company reviews the estimated useful lives and residual values
of 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 reporting
purposes. The Management of the Company determines the appropriate valuation techniques and
inputs for fair value measurements.

In estimating the fair value of an asset or a liability, the Company uses market-observable data
to the extent it is available. Where level 1 inputs are not available, the Company engages third
party qualified valuers to perform the valuation. The Management works closely with the qualified
external 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 various
assets 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 Statement
of Profit and Loss in accordance with Ind AS 19 ‘Employee benefits’ over the period during which
benefit is derived from the employees’ services. The costs are assessed on the basis of assumptions
selected 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, ‘Employee
benefits expense’.

d. Income taxes

The Company’s tax jurisdiction is India. Significant judgments are involved in estimating budgeted
profits for the purpose of paying advance tax, determining the provision for income taxes, including
amount 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 Note
15 and Note 36, Management has estimated and measured the likelihood of the litigations and
accounted the provision and contingencies as appropriate.

f. The estimation of the various types of discounts, incentives, promotions and rebate schemes to be
recognised based on sales made during the year (refer note 20)

Notes:

(a) There are no Loans to related parties including Loan to key managerial personnel.

(b) Loans given to employees / key managerial personnel as per the Company’s policy are not considered
for the purposes of disclosure under Section 186 (4) of the Companies Act, 2013.

(c) There are no loans or advances in the nature of loans granted to Promoters, Directors, KMPs and their
related 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 equity
shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The
final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion
to the number of equity shares held by the shareholders.

No shares are bought back by the Company during the period of 5 years immediately preceding the Balance
Sheet date.

No shares are alloted as fully paid up by way of bonus shares during the period of 5 years immediately
preceding the Balance Sheet date.

No shares are reserved for issue under options and contracts/commitments for the sale of shares/
disinvestment.

No shares are alloted as fully paid up pursuant to contracts without being payment received in cash during
the period of 5 years immediately preceding the Balance Sheet date.

30 Employee benefit plans

30.1 Defined contribution plans

The Company operates defined contribution provident fund, superannuation fund and employees'
state insurance plan for all qualifying employees of the Company. Where employees leave the plan, the
contributions payable by the 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, provident fund operated by the government and superannuation fund which is
administered through a trust that is legally separated from the Company. The assets of the plan are held
separately from those of the Company in funds under the control of trustees. The Company is required to
contribute a specific percentage of payroll costs to the contribution schemes to fund the benefit. The only
obligation of the Company with respect to the contribution plan is to make the specified contributions.

The total expense recognised in the statement of profit and loss of ' 1 171 lakhs (for the year ended June
30, 2024: ' 1 490 lakhs) for provident fund, ' 60 lakhs (for the year ended June 30, 2024: ' 109 lakhs) for
superannuation fund represent contributions payable to these plans by the Company at rates specified in
the rules of the plans. As at March 31, 2025, contributions of ' 7 lakhs (as at June 30, 2024: ' 9 lakhs) due
in respect of 2024 - 2025 (2023 - 2024) reporting period had not been paid over to the plans. The amounts
were paid subsequent to the end of the reporting period.

30.2 Defined benefit 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 requires
contributions to be made to a separately administered trust. 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 benefits provided depends on the
member’s length of service, designation and salary at retirement age / termination. The gratuity plan is
administered by a separate trust that is legally separated from the Company. The board of the trust is
composed of representatives from both employer and employees. The board of the trust is required by
law and by its articles of association to act in the interest of the trust and of all relevant stakeholders
in the scheme, i.e. active employees, inactive employees, retirees, employer. The board of the trust
is responsible for the investment policy with regard to the assets of the trust. The Company makes
provision for gratuity based on acturial valuation carried at the end of the year/period.

b) 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 and
types of benefits, depending on their grade at the time of retirement. Employees separated from the
Company as part of early separation scheme are also covered under the scheme. The liability for post
retirement medical scheme is based on an independent actuarial valuation.

c) Compensated absences for Plant technicians (Unfunded)

The Company also provides for compensated absences for plant technicians which allows for
encashment 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 actuarial valuation
carried out at the end of the year/period.

d) 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 of the determination of the defined obligation are discount rate,
expected salary increase and mortality. The sensitivity analyses below have been determined
based on reasonable possible changes of the respective assumptions occurring at the end of the
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 would
decrease by ' 489 lakhs (increase by ' 526 lakhs) (as at June 30, 2024: decrease by ' 429 lakhs
(increase by ' 461 lakhs)).

If the expected salary growth increases (decreases) by 0.5%, the defined benefit obligation would
increase by ' 476 lakhs (decrease by ' 449 lakhs) (as at June 30, 2024: increase by ' 431 lakhs
(decrease by ' 406 lakhs)).

Compensated absence plan (Unfunded)

If the discount rate is 50 basis points higher (lower), the other benefit obligation would decrease
by ' 24 lakhs (increase by ' 26 lakhs) (as at June 30, 2024: decrease by ' 20 lakhs (increase by '
23 lakhs)).

If the expected salary growth increases (decreases) by 0.5%, the other benefit obligation would
increase by ' 25 lakhs (decrease by ' 23 lakhs) (as at June 30, 2024: increase by ' 22 lakhs
(decrease by ' 20 lakhs)).

Post retirement medical benefit (PRMB)

If the discount rate is 50 basis points higher (lower), the defined benefit obligation would decrease
by ' 16 lakhs (increase by ' 17 lakhs) (as at June 30, 2024: decrease by ' 14 lakhs (increase by ' 12
lakhs)).

If the expected medical inflation rate increases (decreases) by 0.5%, the defined benefit obligation
would increase by ' 14 lakhs (decrease by ' 13 lakhs) (as at June 30, 2024: increase by ' 13 lakhs
(decrease by ' 12 lakhs)).

If the expected life expectancy increases (decreases) by 1 year, the defined benefit obligation would
increase by ' 11 lakhs (decrease by ' 11 lakhs) (as at June 30, 2024: increase by ' 10 lakhs (decrease
by ' 10 lakhs)).

Long Service Awards (Unfunded)

If the discount rate is 50 basis points higher (Lower), the other benefit obligation would decrease
by ' 19 lakhs (increase by ' 20 lakhs) (as at June 30, 2024: decrease by ' 17 lakhs (increase by ' 18
lakhs)).

If the expected gold inflation rate increases (decreases) by 0.5%, the other benefit obligation would
increase by ' 20 lakhs (decrease by ' 19 lakhs) (as at June 30, 2024: increase by ' 18 lakhs (decrease
by ' 17 lakhs)).

The sensitivity analysis presented above may not be representative of the actual change of the
defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation
of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit
obligation has been calculated using the projected unit credit method as at the end of the
reporting year, which is the same as that applied in calculating the defined benefit obligation
liability recognised in the Balance Sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis
from prior years.

31 Financial instruments
31.1 Capital management

The Company manages its capital to ensure that it will be able to continue as going concern while maximising
the return to stakeholders through the optimisation of the equity balance. Equity share capital and other
equity are considered for the purpose of company'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 in light
of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust
the capital structure, the Company may adjust the dividend payment to shareholders, return on capital to
shareholders or issue new shares.

Assets and Liabilities that are disclosed at Amortised Cost for which Fair values are disclosed are classified
as Level 3

Current financial asset and current financial Liabilities have fair values that approximate to their carrying
amounts due to their short-term nature. Non current financial assets and non current financial liabilities
have fair values that approximate to their carrying amounts as it is based on the net present value of the
anticipated future cash flows.

31.3 Financial risk management objectives

The Company’s overall policy with respect to managing risks associated with financial instruments is to
minimise potential adverse effects of financial performance of the Company. The policies for managing
specific 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 will
fluctuate because of changes in market interest rates. Since the Company's borrowings are from
group companies, the exposure to risk of changes in market interest rates is minimal. The Company
has not used any interest rate derivatives.

(ii) Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures
to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy
parameters.

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 management
personnel and represents management's assessment of the reasonably possible changes in foreign
exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated
monetary items and adjusts their translation at the period end for a 10% change on foreign currency
rates.

(iii) Other price risk management

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes
in market traded price. The Company is not exposed to pricing risk as the Company does not have
any 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 in
financial loss to the Company.

Trade Receivables

Concentration of credit risk with respect to trade receivables are limited, due to the Company’s customer
base being large and diverse. The Company performs ongoing credit evaluation of the counterparty’s
financial position as a means of mitigating the risk of financial loss arising from defaults. The Company
only grants credit to creditworthy counterparties.

The Company does not have any significant credit risk exposure to any single counterparty or any group
of counterparties having similar characteristics as disclosed in Note 10 to the financial statements.
Other financial assets

Other financial assets include employee loans, security deposits, cash and cash equivalents, deposits
with bank etc. Based on historical experience and credit profiles of counterparties, the Company does
not expect any significant risk of default.

The Company’s maximum exposure to credit risk for each of the above categories of financial assets is
their carrying values.

(i) Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. Since the Company does not have interest
bearing borrowings, it is not exposed to risk of changes in market interest rates. The Company has
not used any interest rate derivatives.

(ii) Other price risk management

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes
in market traded price. The Company is not exposed to pricing risk as the Company does not have
any investments in equity instruments and bonds.

C. Liquidity risk management

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments
associated 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.
The Company 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 financial
statements are a reasonable approximation of their fair values since the Company does not anticipate that
the carrying amounts would be significantly different from the values that would eventually be received or
settled.

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” (employee share
purchase plan) whereby specified employees of its subsidiaries have been given a right to 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 a specified percentage (upto
15%) of base salary towards purchase of shares on a monthly basis. The Company contributes 50%
of employee's contribution (restricted to 2.5% of his base salary). Such contribution is charged under
employee benefits expense.

The shares of The Procter and Gamble Company, USA are listed with New York Stock Exchange and are
purchased on behalf of the employees at market price on the date of purchase. During the nine month
period ended Mar 31, 2025: 4948.58 (June 30, 2024: 7013.81) shares excluding dividend were purchased
by employees at weighted average fair value of ' 14 442.33 (June 30, 2024: ' 13 016.23) per share. The
Company's contribution during the period / year on such purchase of shares amounts to ' 198 Lakhs
(June 30, 2024: ' 249 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 specified
employees of its subsidiaries covered by the plan are granted an option to purchase shares of the
Ultimate Holding Company i.e. The Procter and Gamble Company, USA at a fixed price (grant price) for
a fixed year of time. The shares of The Procter & Gamble Company, USA are listed with New York Stock
Exchange. The Options Exercise price equal to the market price of the underlying shares on the date of
the grant. The Grants issued are vested after 3 years and have a 5/10 years life cycle.

42 (e) The Company has also not received any fund from any party(s) (‘Funding Party’) with the understanding
that the Company shall whether, directly or indirectly lend or invest in other persons or entities
identified by or on behalf of the Company or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

43. The Company in the prvious period had arrived at an Advanced Pricing Agreement with the concerned tax
authorities, determining appropriate transfer pricing methodology for certain identified transactions with
the Company’s affiliate(s) for the financial years 2010-11 to 2018-19. As a consequence of this agreement,
an additional tax liability, amounting to ? 1 656 lakh, and interest amounting to ? 1 944 lakhs, have been
accounted as Prior Period Tax Adjustments and Finance Costs respectively. In view of the above, contingent
liabilities have been reduced by ? 8 699 lakhs.

44. As required under the second proviso to Section 128(1) of the Companies Act 2013, read with proviso to
Rule 3(1) of the Companies (Accounts) Rules, 2014, the Company has identified applications which meet the
definition of books of account.

The Company uses an ERP for maintaining its books of accounts, together with certain surround applications
which either initiate, store, or process information which is subsequently recorded in the ERP.

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, an 'Inventory Management' application which
are hosted and managed by the service providers. The audit trail data for direct access to the database
is available with the third-party software service providers, which has been validated through review of
Service Organisation Controls (SOC) Reports. For the period not covered by the SOC Reports, Company has
obtained Bridge Letters from the SaaS vendors.

The surround applications also include certain applications such as Inventory Management applications
which are hosted on P&G Group’s global servers. These applications are managed by the Group’s IT teams
and a privileged access management tool is used to monitor audit trail for direct access to the database.

The ERP and the surround applications have a feature of recording audit trail (edit log) facility which has
operated throughout the year for all transactions recorded in said applications as required under the
Companies Act, 2013.

45 Approval of financial statements

The financial statements were approved for issue by the Board of Directors on May 27, 2025.

Signatures to Note 1 to 45

For and on behalf of Board of Directors

Chittranjan Dua Kumar Venkatasubramanian

Chairman Managing Director

DIN: 00036080 DIN: 08144200

Mrinalini Srinivasan Ghanashyam Hegde

Chief Financial Officer Executive Director & Company Secretary

DIN: 08054712

Place: Mumbai
Date: May 27, 2025