n. 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.

Cost of return on account of breakage and
expiries are estimated on the basis of past
experience. Provision is made in respect of cost
for breakage and expiries in the year of sale of
goods.

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.

Contingent Liabilities are disclosed in the
notes. Contingent Liabilities are disclosed for (1)
possible obligations which will be confirmed only
by future events not wholly within the control of
the Company or (2) 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.

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

o. 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 (other
than trade receivables) are initially measured
at fair value. Transaction costs that are directly
attributable to the acquisition or issue of the
financial assets and financial Liabilities (other
than financial assets and financial Liabilities at
fair value through profit or Loss) are added to
or deducted from the fair value of the financial
assets or financial Liabilities, as appropriate, on
initial recognition. Transactions costs directly
attributable to the acquisition of financial assets
and financial Liabilities at fair value through
profit or Loss are recognised immediately in the
Statement of Profit and Loss. However, trade
receivables that do not contain significant
financing component are measured at transaction
price.

p. 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 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.

Effective interest method

The effective interest is a method of 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 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
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 the Statement of
Profit and Loss.

q. 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 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 interest
method.

Financial Liabilities are classified, at initial
recognition, as financial Liabilities at fair value
through profit or Loss, Loans and borrowings,
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" Line item.

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 the 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
the Statement of Profit and Loss.

If the Company neither transfers nor retains
substantially all 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.

r. Offsetting financial instruments

Financial assets and Liabilities are offset and
the net amount is reported in the balance sheet
where there is a Legally enforceable right to
offset the recognised amounts and there is an
intention to settle on a net basis or realise the
asset and settle the Liability simultaneously. The
Legally enforceable right must not be contingent
on future events and must be enforceable in the
normal course of business and in the event of
default, insolvency or bankruptcy of the company
or the counterparty.

s. 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.

t. Cash and Cash Equivalents

Cash and Cash equivalents for the purpose
of Statement of Cash Flows 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.

u. Research and development

Expenditure on research activities, undertaken
with the prospect of gaining new scientific or
technical knowledge and understanding, is
recognised in the Statement of Profit and Loss
as and when incurred.

The development activities undertaken by the
Company are subject to technical, regulatory and
other uncertainties, such that, in the opinion of
management, the criteria for capitalization are
not met prior to obtaining marketing approval
by the regulatory authorities in markets. Internal
development cost that do not meet these criteria
are therefore expensed as and when incurred.

v. Earnings Per Share

Basic earnings per share is computed by dividing the
profit / Loss 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, diluted earnings per share adjusts
the figures used in the determination of basic
earnings per share to take into account the after
income tax effect of interest and other financing
costs associated with dilutive potential equity
shares, and the weighted average number of
additional equity shares that would have been
outstanding assuming the conversion of all
dilutive potential equity shares.

w. 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.

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
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 (h) above, the Company
reviews the estimated useful Lives 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 (Registered Valuer in terms of Section
247 of the Companies Act, 2013) to perform
the valuation. The management works
closely with the qualified external valuers
(Registered Valuer in terms of Section 247
of the Companies Act, 2013) 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 are disclosed
is note 34.

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 duringwhich 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 28, ‘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 30).

e. Measurement and Likelihood of occurrence of
provisions and contingencies - As disclosed
in Note 18 and Note 40, Management has
estimated and measured the Likelihood of
the Litigations and accounted the provision
and contingencies as appropriate.

f. Expected Credit Loss (ECL)

In accordance with Ind AS 109 - Financial
Instruments, the Company applies ECL
model for measurement and recognition of

impairment Loss on the trade receivables
or any contractual right to receive cash or
another financial asset that result from
transactions that are within the scope of
Ind AS 115 - Revenue from Contracts with
Customers.

For this purpose, the Company follows
‘simplified approach’ for recognition of
impairment Loss allowance on the trade
receivable balances, contract assets
and Lease receivables. The application of
simplified approach requires expected
Lifetime Losses to be recognised from initial
recognition of the receivables based on
Lifetime ECLs at each reporting date.

As a practical expedient, the Company uses
a provision matrix to determine impairment
Loss allowance on portfolio of its trade
receivables. The provision matrix is based on
its historically observed default rates over
the expected Life of the trade receivables and
is adjusted for forward-looking estimates. At
every reporting date, the historical observed
default rates are updated and changes in the
forward-looking estimates are analysed.

In case of other assets, the Company
determines if there has been a significant
increase in credit risk of the financial asset
since initial recognition. If the credit risk of
such assets has not increased significantly,
an amount equal to twelve months ECL is
measured and recognised as Loss allowance.
However, if credit risk has increased
significantly, an amount equal to Lifetime
ECL is measured and recognised as Loss
allowance.

g. Inventories obsolescence

The factors that the Company considers in
determining the provision for slow moving,
obsolete and other non-saleable inventory
include estimated shelf Life, planned product
discontinuances, price changes, ageing of
inventory and introduction of competitive
new products, to the extent each of these
factors impact the Company’s business
and markets. The Company considers all
these factors and adjusts the inventory
obsolescence to reflect its actual experience
on a periodic basis.

3.3 Recent accounting pronouncement

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.

b) Contractual Obligations

The Company has no contractual obligations to purchase, construct or develop investment property.
However, the responsibility for its repairs, maintenance or enhancements is with the Company.

c) Fair Value

In case of Office premises property, based on Independent valuation report as on 20 May 2025, for one
of the property Located in the same premises, the management has estimated fair value of ' 3 460
Lakhs for the investment properties. The aforesaid estimated amount will not be materially different
from the fair value of the property as on March 31, 2025.

In case of Land and building given on Lease during the year, Management has estimated the fair market
value of at ?2 066 Lakhs.

d) Policy for Estimation of Fair Value
The Average Market Value

The Average Market Value is the value “As is where is Basis” derived by the average of Direct Comparison
Method of valuation and the Rent Capitalization Method of the Office Space.

The Direct Comparison Approach involves a comparison of the subject property to similar properties
that have actually sold in arms-Length transactions or are offered for sale. This approach demonstrates
what buyers have historically been willing to pay (and sellers willing to accept) for similar properties
in an open and competitive market and is particularly useful in estimating the value of the Land and
properties that are typically traded on a unit basis.

The Rent Capitalisation Approach envisages capitalizing the annual net rent receivable / achievable
from a property on market value basis using appropriate applicable yield rate for a respective asset
class.

In case of Land and building given on Lease, Land has been valued at prevailing asking rates in the
said micro-market. In case of industrial building the same has been valued based on the current
construction cost, the age of the building, Lifespan of the building.

34 Financial instruments & related disclosures

34.1 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 debt and 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 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 shareholder's if any, return on capital to shareholders
or issue new shares.

34.3 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.

34.4 Financial risk management objectives

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and
Liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects
of market risk on its financial performance. The Company’s risk management assessment, policies and
processes are established to identify and analyze the risks faced by the Company, to set appropriate
risk Limits and controls, and to monitor such risks and compliance with the same. Risk assessment and
management policies and processes are reviewed regularly to reflect changes in market conditions and
the Company’s activities. The Board of Directors and the Audit Committee is responsible for overseeing
the Company’s risk assessment and management policies and processes.The Company has exposure
to the following risks arising from financial instruments:

34.4.1 Credit risk management

Credit risk is the risk of financial Loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company’s
receivables from customers. Credit risk is managed through credit approvals, establishing
credit Limits and continuously monitoring the creditworthiness of customers to which the
Company grants credit terms in the normal course of business. The Company establishes an
allowance for doubtful debts and impairment that represents its estimate of incurred Losses
in respect of trade and other receivables and investments.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of
each customer. The demographics of the customer, including the default risk of the industry
and country in which the customer operates, also has an influence on credit risk assessment.
Credit risk is managed through credit approvals, establishing credit Limits and continuously
monitoring the creditworthiness of customers to which the Company grants credit terms in the
normal course of business.

Company’s exposure to credit risk by age of the outstanding from various customers is as per
note 13.

Expected credit loss assessment

Exposures to customers outstanding at the end of each reporting period are reviewed by the
Company to determine incurred and expected credit Losses. Historical trends of impairment of
trade receivables do not reflect any significant credit Losses. Given that the macro economic
indicators affecting customers of the Company have not undergone any substantial change,
the Company expects the historical trend of minimal credit Losses to continue. Further,
management believes that the unimpaired amounts that are past due by more than 30 days
are still collectible in full, based on historical payment behaviour and extensive analysis of
customer credit risk. The impairment Loss at 31 March 2025 related to several customers that
have defaulted on their payments to the Company and are not expected to be able to pay their
outstanding balances, mainly due to economic circumstances.

The movement in the allowance for impairment in respect of trade receivables during the year
is as per note 13.

Cash and cash equivalents

The Company held cash and cash equivalents and other bank balances with credit worthy
banks and financial institutions of ? 18 208 Lakhs (30 June 2024 ? 23 850 Lakhs). The credit¬
worthiness of such banks and financial institutions is evaluated by the management on an
ongoing basis and is considered to be good.

Other financial assets

Other financial assets include employee Loans, security deposits 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.

34.4.2 Liquidity risk management

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as
they become due. The Company manages its Liquidity risk by ensuring, as far as possible, that
it will always have sufficient Liquidity to meet its Liabilities when due, under both normal and
stressed conditions, without incurring unacceptable Losses or risk to the Company’s reputation.

As of 31 March 2025 the Company has working capital of ? 31 108 Lakhs (30 June 2024: ? 30 531
Lakhs) including cash and cash equivalents and other bank balances of ? 18 208 Lakhs (30 June
2024: ? 23 850 Lakhs). Working capital is calculated as current assets Less current Liabilities.
The table below analyse financial Liabilities of the Company into relevant maturity groupings
based on the reporting period from the reporting date to the contractual maturity date:

34.4.3 Market risk

Market risk is the risk of Loss of future earnings, fair values or future cash flows that may result
from adverse changes in market rates and prices (such as interest rates, foreign currency
exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse
changes in market rates and prices. Market risk is attributable to all market risk-sensitive
financial instruments, all foreign currency receivables and payables and all short term and Long¬
term debt. The Company is exposed to market risk primarily related to foreign exchange rate
risk, interest rate risk and the market value of its investments. Thus, the Company’s exposure
to market risk is a function of investing and borrowing activities and revenue generating and
operating activities in foreign currencies.

(i) Foreign currency risk management

The fluctuation in foreign currency exchange rates may have potential impact on the profit
and Loss account, where any transaction references more than one currency or where assets/
Liabilities are denominated in a currency other than the functional currency of the entity.

Considering the countries and economic environment in which the Company operates, its
operations are subject to risks arising from fluctuations in exchange rates in those countries.
The risks primarily relate to fluctuations in EURO and USD against the respective functional
currency of the Company.

The Company does not use any derivative financial instruments to hedge foreign exchange and
interest rate exposure.

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.

The Company does not account for any fixed-rate financial assets or financial Liabilities at fair
value through profit and Loss, and the Company does not have any designated derivatives.
Therefore, a change in interest rates at the reporting date would not affect profit and Loss for
any of these fixed interest bearing financial instruments.

(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.

35 Share-based payments

a) International Stock Ownership Plan (Stocks of the Ultimate Holding Company)

The Procter & 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 & 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 & 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 year ended
March 31, 2025, 2 375.29 (Previous year ended June 30, 2024: 2 784.66) shares excluding dividend were
purchased by employees at weighted average fair value of ' 14 470.00 (Previous year ended June 30,
2024: ' 13 177.93) per share. The Company’s contribution during the year on such purchase of shares
amounts to ' 94 Lakhs (Previous year ended June 30, 2024: ' 97 Lakhs) has been charged under
employee benefits expense under Note 28.

b) Employees Stock Options Plan (Stocks of the Ultimate Holding Company)

The Procter & 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 & 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.

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 Corporation
of India. 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.

36.2 Defined Benefit plans/ long term benefit plans

The Company operates two post employment defined benefit plans that provide Gratuity and Provident
fund benefits. The gratuity plan entitles an employee, who has rendered at Least five years of continuous
service, to receive one-half month’s salary for each year of completed service at the time of retirement/exit.
The Company also makes specified monthly contributions towards employee provident fund to the Procter
& Gamble Health Limited staff Provident Fund. The interest rate payable by the trust to the beneficiaries
every year is being notified by the Government. The Company has an obligation to make good the shortfall,
if any, between the return from the investments of the trust and the interest payable at the notified rate.

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 final 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. 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 and salary at retirement age. 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.

b) Provident Fund (Funded)

Provident Fund for all permanent employees is administered through a trust. The provident fund is
administered by trustees of an independently constituted common trust recognised by the Income
Tax authorities. Periodic contributions to the fund are charged to revenue. The interest rate payable
by the trust to the beneficiaries every year is being notified by the Government. The Company has
an obligation to make good the shortfall, if any, between the return from the investment of the trust
and notified interest rate by the Government. The contribution by employer and employee together
with interest are payable at the time of separation from service or retirement whichever is earlier. The
benefit under this 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 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.

d) Compensated absences (Unfunded)

The Company also provides for compensated absences as per its policies, 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.

e) Long term service award (Unfunded)

Long term service award is given on completion of minimum 10 years of service.

If the expected salary escalation rate increases (decreases) by 0.5%, the defined benefit obligation
would increase by ' 195.49 Lakhs (decrease by ' 185.09 Lakhs) (as at June 30, 2024: increase by
' 169.36 Lakhs (decrease by '160.41 Lakhs)).

Compensated absence plan (Unfunded)

If the discount rate is 50 basis points higher (Lower), the defined benefit obligation would decrease
by ' 25.17 Lakhs (increase by? 27.09 Lakhs) (as at June 30, 2024: decrease by'17.38 Lakhs (increase
by ' 18.68 Lakhs)).

If the expected salary growth increases (decreases) by 0.5%, the defined benefit obligation would
increase by ' 26.13 Lakhs (decrease by? 24.56 Lakhs) (as at June 30, 2024: increase by'18.64 Lakhs
(decrease by ' 17.53 Lakhs)).

Post retirement medical benefit (PRMB) (Unfunded)

If the discount rate is 50 basis points higher (Lower), the defined benefit obligation would decrease
by ' 1.38 Lakhs (increase by ' 1.46 Lakhs) (as at June 30, 2024: decrease by ' 1.2 Lakhs (increase
by '1.26 Lakhs)). If the medical inflation rate is 50 basis points higher (Lower), the defined benefit
obligation would increase by ' 1.47 (decrease by ' 1.40 Lakhs) (as at June 30, 2024: increase by ' 1.28
Lakhs (decrease by ' 1.22 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 the end of the reporting
period, which is the same as that applied in calculating the defined benefit obligation Liability
recognised in the Balance Sheet.

Long term service award (Unfunded)

If the discount rate is 50 basis points higher (Lower), the defined benefit obligation would decrease
by ' 18.25 Lakhs (increase by ' 19.41 Lakhs) (as at June 30, 2024: decrease by ' 15.38 Lakhs (increase
by ' 16.32 Lakhs)).

If the gold inflation rate is 50 basis points higher (Lower), the defined benefit obligation would
increase by '19.21 Lakhs (decrease by'18.23 Lakhs) (as at June 30, 2024: decrease by'16.25 Lakhs
(increase by '15.45 Lakhs)).

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

36.3 Defined Contribution Plan

The Provident Fund assets and Liabilities are managed by "Procter & Gamble Health Limited Staff Provident
Fund" in Line with The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.

The plan guarantees minimum interest at the rate notified by the Provident Fund Authorities. The
contribution by the employer and employee together with the interest accumulated thereon are payable
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 guidance note issued by
the Institute of Actuaries of India for measurement of provident fund Liabilities, the actuary has provided a
valuation of provident fund Liability and based on the assumptions provided below, there is no shortfall as
at March 31, 2025.

Future cash flow in respect of the above, if any, is determinable only on receipt of judgements/decisions
pending with the relevant authorities.

b) In June 2016, National Pharmaceutical Pricing Authority (NPPA) served a demand notice on the Company
alleging that during the period from January 2006 to June 2009 the Company sold Polybion 100ml
syrup at a price higher than the ceiling price fixed by it on 05 June 2008. Pursuant to orders passed by
Kolkata High Court, NPPA gave another opportunity of hearing to the Company. NPPA did not accede to
any of the Company’s contention and issued a fresh demand notice demanding a sum of ? 3 307 Lakhs
(? 1 168 Lakhs on account of overcharge during the said period and ? 2 138 Lakhs for interest thereon)
for sales made by the Company during the period May 2006 to June 2009. The Company has challenged
the said demand byway of writ petition, which is pending before Hon’ble Delhi High Court. In a separate
proceedings hied by the manufacturer of the said drug, CradeL Pharmaceutical Private Limited, Hon’ble
Kolkata High Court stayed the demand provided it deposits a sum of ? 225 Lakhs with the NPPA. The
Company has been Legally advised that the Company has a defendable case before Delhi High Court.
The Company holds provision of ? 580 Lakhs in its books towards possible Liability.

c) During the year 2014, the Company had made a provision of ? 699 Lakhs towards a possible Liability
which may accrue to the Company due to a judgment passed by the Supreme Court in the year 2014
impacting the Pharmaceutical industry in India including the Company. The provision of ? 108 Lakhs was
transferred as a part of BPL Business transferred to Merck Life Science Private Limited. The Company
holds provision of ? 591 Lakhs in its books towards possible Liability.

d) During the year 2015, Central Excise issued a show cause cum demand notice on the Company covering
a period of five years for alleged wrong classification of the products, Vitamin E Acetate min. 92% for
Poultry/ Cattle/Pig-feed, Vitamin E Liquid for Animal Nutrition (for Pig/Cattle/Poultry) and Vitamin E Dry
Powder 50% for Animal Nutrition. The value of total demand was ? 2 369 Lakhs.

Further, for same classification matter, the Company has received VAT/CST assessment orders and
notices covering a period of five years disallowing VAT exemption claimed for Vitamin E Acetate, Vitamin
E dry powder, Vitamin E Liquid for Animal nutrition classified as Animal feed. For the orders received,
the Company had contested before the respective state appellate authorities. The Company during the
financial year 2023-24 has applied for Amnesty pertaining to the cases which are pending at the State
Appellate Authority Level.

The Central Excise had issued show cause cum demand on similar matter in the past as well. This was
contested by the Company before the Lower authorities. On the representation made by the Company
the demand was dropped after considering various decisions pronounced by judicial and quasi-judicial
authorities at the relevant time.

The Company based on Legal opinion believes that it has a good case on merits as well as on Limitations.
The aforesaid amounts have already been included under contingent Liability at note 40 (a) to the
financial statements.

47 There are no significant subsequent events that would require adjustments or disclosures in the financial
statements as on the balance sheet date.

48 (a) No transactions to report against the following disclosure requirements as notified by MCA pursuant

to 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) Borrowings obtained on the basis of security of current assets

c) Discrepancy in utilisation of borrowings

d) Current maturity of Long term borrowings

48 (b) The Company has not entered into any such transaction which is not recorded in the books of account
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).

48 (d) Utilization of borrowed funds and share premium:

The company has not advanced or Loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) 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

(ii) Provide any guarantee, security or the Like to or on behalf of the ultimate beneficiaries.

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:

(i) 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

(ii) Provide any guarantee, security or the Like on behalf of the ultimate beneficiaries.

49 During the quarter ended June 30, 2024, the Company had discontinued production of injections at its
manufacturing plant in Goa effective September 30, 2023, as the Company started to source injections
portfolio of its products from a contract manufacturer. Post evaluation of various alternatives, during the
quarter ended June 30, 2024, the Company had entered into an agreement for sale of the assets of its
injection plant for a consideration of ' 790 Lakhs and impaired the balance amount of ' 627 Lakhs. Based
on above, the company has re-evaluated the usability of assets in their capital work in progress and thereby
impaired other related assets by an amount of ' 1 392 Lakhs. The above total amount of ' 2 019 Lakhs have
been disclosed as an exceptional item for the year ended June 30, 2024.

50 a. During the previous year, the Company’s unpaid dividend pertaining to final dividend declared for

the Financial Year 2016 amounting to 13 Lakhs became due for its transfer to Investor Education and
Protection Fund (IEPF) on June 9, 2024 which was required to be transferred to the fund within 30 days
from the due date i.e. July 9, 2024 as per applicable IEPF rules. However, due to restructuring of forms
on Ministry of Corporate Affairs’ (MCA) portal, forms were not available for filing effective July 3, 2024
and accordingly, an extension was provided by MCA till August 16, 2024 for filing form without any delay
charges. The Company had in this period, uploaded form IEPF-1, however, due to technical glitches on
the portal, Company was not able to successfully transfer the said unpaid dividend amount to the IEPF
as on the due date, however, which had been duly transferred to the IEPF on September 27, 2024.

b. For the current year, there has been no delay in transferring amounts, since no dividend was due to be
transferred to the Investor Education and Protection Fund by the Company.

51 Figures for the previous year have been re-grouped/re-arranged wherever necessary to conform current

period’s classification.

52 Approval of financial statements

The financial statements were approved for issue by the board of directors on May 29, 2025.

Signatures to Notes 1 to 52

As per our attached report of even date. For and on behalf of Board of Directors

For HARIBHAKTI & Co. LLP

Chartered Accountants

ICAI Firm Regn. No.: 103523W/W100048

Sumant Sakhardande S. Madhavan Milind Thatte

Partner Chairman Managing Director

Membership No. 034828 DIN No. 06451889 DIN No. 08092990

Lokesh Chandak Zeal Rupani

PLace:Mumbai Chief financial officer Company Secretary

Date: May 29, 2025 DIN No. 10083315 Membership No. A52286