4.11. Provisions and contingencies

4.11.1. Provisions

Provisions are recognised when the Company has a present obligation as a result of a past event
and 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.

The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation. When the effect of time value is material, the amount is
determined by discounting the expected future cash flows.

4.11.2. Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events,
the existence of which will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Company or a present obligation that

arises from past events where it is either not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount can not be made.

4.12. Financial instruments

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

4.12.1. Financial assets

4.12.1.1 .Initial recognition and measurement

All financial assets are recognised initially at fair value and in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition
of the financial asset. Purchases or sales of financial assets that require delivery of assets within a
time frame established by regulation or convention in the market place (regular way trades) are
recognised on the trade date, i.e. the date that the Company commits to purchase or sell the asset.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or
fair value, depending on the classification of the financial assets.

4.12.1.2. Classification of financial assets

Classification of financial assets depends on the nature and purpose of the financial assets and
is determined at the time of initial recognition. The Company classifies its financial assets in the
following measurement categories:

? those measured at amortized cost,

? those to be measured subsequently at fair value, either through other comprehensive income
(FVTOCI) or through profit or loss (FVTPL)

Financial assets at amortised cost:

A financial assets is measured at the amortised cost if both the following conditions are met:

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

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

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

Financial assets at FVTOCI:

A financial asset is classified as at the FVTOCI if both of the following criteria are met unless the
asset is designated at fair value through profit or loss under fair value option.

(a) The objective of the business model is achieved both by collecting contractual cash flows and
selling the financial asset, and

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

Financial assets at FVTPL:

FVTPL is a residual category for financial assets. Any asset, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

4.12.1.3. Equity investment in subsidiaries and associates

Investments representing equity interest in subsidiaries and associates are carried at cost less
any provision for impairment. Investments are reviewed for impairment if events or changes in
circumstances indicate that the carrying amount may not be recoverable.

4.12.1.4. Derecognition

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

? The rights to receive cash flows from the asset have expired, or

? The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a
'pass-through' arrangement; and either (a) the Company has transferred substantially all the risks
and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the asset.

4.12.1.5. Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the following financial assets and credit risk
exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt
securities, deposits, trade receivables and bank balance.

b) 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 18.

The Company believes that, considering their nature of business and past history, the expected
credit loss in relation to its trade receivables and other financial assets is non-existent or grossly
immaterial. Thus, the Company has not recognised any provision for expected credit loss. The
Company reviews this policy annually, if required.

4.12.2. Financial liabilities

4.12.2.1. Initial recognition and measurement

"Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, loans and borrowings or payables, as appropriate.All financial liabilities are
recognised initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs. The Company's financial liabilities include lease liabilities,
trade and other payables, loans and borrowings including bank overdrafts and financial
guarantee contracts."

4.12.2.2. Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss (FVTPL)

Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or
loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are
designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are
satisfied.

Financial liabilities at amortised cost:

After initial recognition, interest-bearing loans and borrowings, lease liabilities, trade and other
payables are subsequently measured at amortised cost using the Effective Interest Rate (EIR)
method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as
well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs
in the statement of profit and loss.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment
to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make
a payment when due in accordance with the terms of a debt instrument. Financial guarantee
contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are

directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the
higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109
and the amount recognised less cumulative amortisation.

4.12.2.3. Derecognition

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

4.13. 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.

4.14. Cash and cash equivalents

Cash and cash equivalents comprises of cash on hand and at banks, short-term balances (with an
original maturity of three months or less from the date of acquisition), highly liquid investments that
are readily convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.

For the purpose of the Statement of Cash Flows, Cash & Cash Equivalents consists of Cash and
Short term deposits as defined above net of outstanding bank overdraft as they are considered an
integral part of the company's cash management and balance in unclaimed dividend accounts
and corporate social responsibility unspent account.

4.15. Earnings per share (EPS)

Basic earnings per share has been computed by dividing the profit/(loss) after tax by the weighted average
number of equity shares outstanding during the year.

Diluted earnings per share has been computed by dividing the profit/(loss) after tax by the weighted
average number of equity shares outstanding during the year are adjusted for the effects of all dilutive
potential equity shares.

4.16. Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

? In the principal market for the asset or liability, or

? In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability
to generate economic benefits by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial

statements are categorised within the fair value hierarchy, described as follows, based on the
lowest level input that is significant to the fair value measurement as a whole:

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

? Level 2 - Valuation techniques for which the lowest level input that is significant to the fair

value measurement is directly or indirectly observable."

? Level 3 - Valuation techniques for which the lowest level input that is significant to the fair

value measurement is unobservable."

For assets and liabilities that are recognised in the standalone financial statements on a recurring
basis, the Company determines whether transfers have occurred between levels in the hierarchy
by re-assessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the nature, characteristics and risks of the asset or liability and the level of the fair value
hierarchy as explained above.

4.17. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current
classification. An asset is treated as current when it is:

? Expected to be realised or intended to be sold or consumed in normal operating cycle

? Held primarily for the purpose of trading

? Expected to be realised within twelve months after the reporting period, or

? Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

? It is expected to be settled in normal operating cycle

? It is held primarily for the purpose of trading

? It is due to be settled within twelve months after the reporting period, or

? There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation
in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

4.18. Dividend distribution to equity holders of the company

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

4.19. Employee share based payment

Equity settled share based payments to employees under Godfrey Phillips Employee Share Purchase
Schemes are measured at fair value of the equity instruments on the date of grant of shares. The fair
value is determined with an assistance of an external valuer and is expensed in the statement of
profit and loss based on the vesting conditions.

4.20. Discontinued Operation

Discontinued operation is a component of the Company that has been disposed of and represents a
major line of business.

Discontinued operation is excluded from the results of continuing operations and presented separately
as profit or loss from discontinued operation, tax expense/ (benefit) of discontinued operation and
profit or loss after tax from discontinued operation, in the statement of profit and loss.

Additional disclosures are provided in Note No. 49. All other notes to the standalone financial
statements mainly include amounts for continuing operations, unless otherwise mentioned.

4.21. Changes in presentation and disclosure

The Company has revised the presentation of employee related liabilities, primarily comprising of
accrued salaries, wages and bonuses to other financial liabilities instead of the hitherto followed
practice of including the same under trade payables as it believes that the same would lead to a
better presentation of financial statements. Accordingly, a sum of Rs.7023.29 lakhs as at 31 March
2024 has been reclassified to other financial liabilities from trade payables. Since this change
relates to only presentation and disclosure under the same sub heading, hence there is no impact
either on the total equity and/or profit and loss for the current year or any earlier period or on the
statement of cash flows. The management does not believe that this change has any material impact
on the balance sheet at the beginning of the comparative period and hence there is no need for a
separate presentation of an additional balance sheet.

4.22. Standards issued but not yet effective

There are no standards that are notified and yet not effective as on March 31, 2025.

5. Significant accounting judgements, estimates and assumptions

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

Judgements and estimates

In the process of applying the accounting policies, management has made the following judgements
and estimates, which have the most significant effect on the amounts recognised in the standalone
financial statements:

a) Fair value measurement of financial instruments and disclosures

When the fair values of financial assets and financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in active markets, their fair value is measured using
other valuation techniques. The inputs to these models are taken from observable markets where
possible, but where this is not feasible, a degree of judgement is required in establishing fair values.
Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes
in assumptions about these factors could affect the reported fair value of financial instruments, see
Note No.44 for further disclosures. Where fund houses have declared net assets value (NAV) and
are obliged to buy back the investments at the declared NAV and the same are disclosed as a
quoted investments. See Note No.9

b) Provisions and contingent liabilities

The Company has ongoing litigations with various regulatory authorities and others. Where an
outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can
be made based on management's assessment of specific circumstances of each dispute and relevant
external advice, management provides for its best estimate of the liability.

Where it is management's assessment that the outcome cannot be reliably quantified or is uncertain,
the claims are disclosed as contingent liabilities unless the likelihood of an adverse outcome is
remote. Such liabilities are disclosed in the notes but are not provided for in the standalone financial
statements. Liability for interest, if any, on the amount of entry tax provided in the books but not paid
as per stay ordered by the appellate authorities/courts is considered as remote.

When considering the classification of legal or tax cases as probable, possible or remote, there
is judgement involved. Management uses in-house and external professionals to make informed
decision. These are set out in Note no. 37.

Notes:

On transition to IndAS (i.e April 01, 2015) , the Company has elected to continue with the carrying value of all property, plant and
equipment measured as per the previous GAAP and use that carrying value as the deemed cost of property, plant and equipment.

* Includes Rs. 0.02 lakhs (Previous year Rs. 0.02 lakhs) being the cost of shares in co-operative societies.

**1. Includes freehold land of Rs. 79.08 lakhs (Previous year Rs.79.08 lakhs) situated in village Sahurpur, Mehrauli, New Delhi and
buildings constructed on the said land having an aggregate net book value of Rs. 903.66 lakhs (previous year Rs. 900.68 lakhs, including
capital work-in-progress of Rs.135.23 lakhs). The said land was purchased by the Company in the year 1991. The Hon'ble Supreme Court
on May 6, 2022, in response to an appeal filed by the Delhi Development Authority (DDA), held that the above referred land was acquired
by the Delhi Administration under the proceedings initiated in November 1980 under the Land Acquisition Act, 1894 and had directed
the DDA to pay a sum of Rs. 16.62 lakhs to the Company, which sum the Company is yet to receive. The Company had provided the said
property to Mr. Samir Kumaar Modi as rent-free accommodation in the year 2004 in accordance with the terms of his appointment and
considered the requisite perquisite value under Income-tax laws as part of his remuneration until he ceased to be a director and officer of
the Company w.e.f close of business on September 6, 2024. However, Mr. Modi has retained possession of the said property and has
approached the Hon'ble High Court of Delhi alleging that the Company has taken coercive steps to dispossess him from the said property
and the matter is sub-judice at present.

In light of the aforesaid judgment of the Hon'ble Supreme Court and the fact that possession of the said property is no longer with the
Company, the Company has, in these financial statements, recorded an impairment in the carrying value of the said land and buildings
constructed thereupon, aggregating to Rs. 982.74 lakhs.

2. The Company had provided an office space situated at one of its properties situated at 4, Community Centre, New Friends Colony,
New Delhi to Mr. Samir Kumaar Modi in his capacity as an Executive Director of the Company to carry out his official duties as a director
of the Company. Even though Mr. Samir Kumaar Modi has ceased to be a director of the Company w.e.f close of business on September
6, 2024, he has not vacated the said office space and continues to be in possession of the same. The Company has since sent a legal
notice to Mr. Modi seeking peaceful handover of the said office space following which Mr. Modi has approached the Hon'ble High Court
of Delhi and Ld. Saket District Court for seeking relief. The said matter is sub-judice at present and includes, inter alia, the issue raised that
Mr. Samir Modi has violated his statutory obligation by failing to vacate the said office space and is liable for all consequences under the
law including payment of rent and penalties. The Company believes that no adjustment is required to be carried out in the carrying value
of the said office in these financial statements.

# Office building located in Delhi reclassified to Investment property based on future expected use as per IndAS 40, Investment Property.
For lien or charge against property, plant and equipment, refer Note No. 22.