(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 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. These estimates are
reviewed at each reporting date and adjusted to
reflect the current best estimates. If the effect of
the time value of money is material, provisions are
discounted. The discount rate used to determine the
present value is a pre-tax rate that reflects current
market assessments of the time value of money and
the risks specific to the liability. The increase in the
provision due to the passage of time is recognised
as interest expense.

Contingent liabilities exist 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 or the amount cannot be reliably
estimated. Contingent liabilities are appropriately
disclosed unless the possibility of an outflow of
resources embodying economic benefits is remote.

A contingent asset is a possible asset 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. Contingent assets are
not recognised till the realisation of the income is
virtually certain. However, the same are disclosed
in the financial statements where an inflow of
economic benefit is possible.

(k) Income Tax

i) Current Income Tax:

Current Income Tax is measured at the amount
expected to be paid to the tax authorities in
accordance with Income Tax Act, 1961.

ii) Deferred Tax:

Deferred tax is provided using the balance
sheet approach on temporary differences
between the tax bases of assets and liabilities
and their carrying amounts for financial
reporting purposes at the reporting date.
Deferred tax assets are recognised to the
extent that it is probable that taxable profit
will be available against which the deductible
temporary differences, and the carry forward
of unused tax credits and unused tax losses
can be utilised.

The tax rates and tax laws used to compute
the tax are those that are enacted or
substantively enacted at the reporting date.
Current income tax and deferred tax relating
to items recognised directly in equity is
recognised in equity and not in the statement
of profit and loss.

Deferred tax assets and liabilities are offset
when there is a legally enforceable right
to offset current tax assets against current
tax liabilities and when the deferred income
taxes assets and liabilities relate to income
taxes levied by the same taxation authority
and the entity intends to settle the balances
on a net basis.

(l) Foreign Currency and translations

i) Functional and presentation currency

Items included in the financial statements of
the Company are measured using the currency
of the primary economic environment in which
the entity operates (" functional currency").
The financial statements are presented in
Indian Rupees (INR), which is the functional
currency of the Company.

ii) Foreign currency transactions and balances

Transactions in foreign currencies are recorded
at the exchange rate at the date of the
transaction. Monetary assets and liabilities in
foreign currencies are translated at the year-
end rate. Any resultant exchange differences
are taken to the statement of profit and loss,
except when deferred in other comprehensive
income as qualifying cash flow hedges. Non¬
monetary assets and liabilities denominated in
a foreign currency and measured at historical
cost are recorded at the exchange rate
prevalent at the date of transaction.

(m) Revenue from contracts with customers

Revenue from contract with customers is recognised
when the Company satisfies performance
obligation by transferring promised goods and
services to the customer. Performance obligations
maybe satisfied at a point of time or over a period
of time. Performance obligations satisfied over a
period of time are recognised as per the terms of
relevant contractual agreements/ arrangements.
Performance obligations are said to be satisfied at
a point of time when the customer obtains controls
of the asset or when services are rendered.

Revenue is measured based on transaction price (net of
variable consideration) allocated to that performance
obligation. The transaction price of the goods and
services to a customer is based on the price specified
in the contract and is net of variable consideration
on account of estimated sales incentives/discounts
offered by the Company. Accumulated experience is
used to estimate and provide for the discounts/ right
of return, using the expected value method.

A refund liability is recognised for expected sale
returns and corresponding assets are recognised
for the products expected to be returned.

The Company recognises as an asset, the
incremental costs of obtaining a contract with a
customer, if the Company expects to recover those
costs. The said asset is amortised on a systematic
basis consistent with the transfer of goods or
services to the customer.

(n) Government Grant

Government grants including any non-monetary
grants are recognised where there is reasonable
assurance that the grant will be received, and
all attached conditions will be complied with.
Government grants are recognised in the statement
of profit and loss on a systematic basis over the
periods in which the related costs, which the grants
are intended to compensate, are recognised as
expenses. Government grants related to property,
plant and equipment are presented at fair value
and grants are recognised as deferred income.

(o) Leases

As a lessee

At inception of a contract, the Company assesses
whether a contract is or contains a lease. A contract
is or contains a lease if a contract conveys the
right to control the use of an identified asset for
a period of time in exchange for consideration. To
assess whether a contract conveys the right to
control the use of an identified asset, the Company
assesses whether:

- the contract conveys the right to use an
identified asset,

- the Company has the right to obtain
substantially all the economic benefits from use
of the asset throughout the period of use, and

- the Company has the right to direct the use of
the identified asset.

At the date of commencement of a lease, the
Company recognises a right-of-use asset ("ROU
assets”) and a corresponding lease liability for
all leases, except for leases with a term of twelve
months or less (short-term leases) and low value
leases. For short-term and low value leases, the
Company recognise the lease payments as an
operating expense on a straight-line basis over
the term of the lease. Company has considered all
leases where the value of an underlying asset does
not individually exceed Rs. 0.05 Crores or equivalent
as a lease of low value assets.

Certain lease arrangements includes the options
to extend or terminate the lease before the end of
the lease term. Lease payments to be made under
such reasonably certain extension options are
included in the measurement of ROU assets and
lease liabilities.

Lease liability is measured by discounting the lease
payments using the interest rate implicit in the lease
or, if not readily determinable, using the incremental
borrowing rates in the country of domicile of the
leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of
use asset if the Company changes its assessment
of whether it will exercise an extension or a
termination option.

Lease payments are allocated between principal
and finance cost. The finance cost is charged to the
statement of profit and loss over the lease period so
as to produce a constant periodic rate of interest on
the remaining balance of the liability for each period.

The ROU assets are initially recognised at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made at
or prior to the commencement date of the lease
plus any initial direct costs less any lease incentives

and restoration costs. These are subsequently
measured at cost less accumulated depreciation
and impairment losses. ROU assets are depreciated
on a straight-line basis over the asset’s useful life
(refer 2.2(b)) or the lease term whichever is shorter.

Impairment of ROU assets is in accordance with
the Company’s accounting policy for impairment of
tangible and intangible assets.

As a lessor

Leases for which the Company is a lessor is
classified as a finance or operating lease. Whenever
the terms of the lease transfer substantially all the
risks and rewards of ownership to the lessee, the
contract is classified as a finance lease. All other
leases are classified as operating leases. Lease
income from operating leases where the Company
is a lessor is recognised in the statement of profit
and loss on a straight-line basis over the lease term.

(p) Borrowing Costs

Borrowing costs consist of interest and other costs
that the Company incurs in connection with the
borrowing of funds and interest relating to other
financial liabilities. Borrowing costs also include
exchange differences to the extent regarded as an
adjustment to the interest costs. Borrowing costs
directly attributable to the acquisition, construction
or production of an asset that necessarily takes
a substantial period of time to get ready for its
intended use or sale are capitalised as part of the
cost of the asset. All other borrowing costs are
expensed in the period in which they occur.

(q) Exceptional Items

Exceptional items are disclosed separately in the
financial statements where it is necessary to do
so to improve the understanding of the financial
performance of the Company. These are material
items of income or expense which by its size,
incidence or nature require separate disclosure.

(r) Earnings per share

The Company presents basic and diluted earnings
per share data for its ordinary shares. Basic earnings

per share is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Company
by the weighted average number of ordinary shares
outstanding during the year. Diluted earnings per
share is determined by adjusting the profit or loss
attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding,
adjusted for own shares held and considering the
effect of all dilutive potential ordinary shares.

(s) Segment Reporting

Segments are identified based on the manner in
which the Company’s Chief Operating Decision
Maker (‘CODM’) decides about resource allocation
and reviews performance. Segment results that
are reported to the CODM include items directly
attributable to a segment as well as those that can
be allocated on a reasonable basis. All other items
which are not attributable or allocable to segments
have been disclosed as unallocable items. Segment
capital expenditure is the total cost incurred during
the period to acquire property and equipment and
intangible assets including goodwill.

(t) Events after the reporting period

Adjusting events are events that provide further
evidence of conditions that existed at the end of
the reporting period. The financial statements
are adjusted for such events before authorisation
for issue. Non-adjusting events are events that
are indicative of conditions that arose after the
end of the reporting period. Non-adjusting events
after the reporting date are not accounted, but
disclosed, if material.

2.3 Key accounting judgement, estimates and
assumptions

The preparation of the financial statements requires
management to exercise judgment and to make
estimates and assumptions. These estimates and
associated assumptions are based on historical
experiences and various other factors, that are believed
to be reasonable under the circumstances. Actual results

may differ from these estimates. The estimates and
underlying assumptions are reviewed on an on-going
basis. Revision to accounting estimates are recognised in
the period in which the estimate is revised if the revision
affect only that period, or in the period of the revision
and future periods if the revision affects both current
and future period.

The areas involving critical estimates or judgements are:

a) Goodwill and Intangibles

The Company records all intangible assets acquired
including goodwill as part of a business combination
at fair values. In relation to business combinations,
judgement is required to be exercised on determining
the fair values, identification and measurement
of assets acquired and liabilities assumed, in
allocation of purchase consideration, in deciding
the amortisation policy and on tax treatment of
Goodwill and intangible assets acquired. Judgement
is also required to be exercised as regards the
manner in which carrying amount of goodwill is
likely to be recovered, for deferred tax accounting
purposes. Appropriate independent professional
advice is also obtained, as necessary. Goodwill has
a useful life which is same as that of underlying
cash generating unit. Intangible assets are assigned
either an indefinite or a finite useful life, depending
on the nature and expected consumption. Goodwill
and indefinite lived intangible assets are as a
minimum, subjected to annual tests of impairment
in line with the accounting policy whereas all other
intangibles assets are amortised (Refer Note 5).

b) Depreciation and amortisation

Depreciation and amortisation are based on
management estimates of the future useful lives of
the property, plant and equipment and intangible
assets. Estimates may change due to technological
developments, competition, changes in market
conditions and other factors and may result in
changes in the estimated useful life and in the
depreciation and amortisation charges (Refer
Note 3, 4, and 5).

c) Employee Benefits

The present value of the define benefit obligations
depends on a number of factors that are determined
on an actuarial basis using a number of assumptions.
The assumptions used in determining the net cost/
(income) for pensions include the discount rate.
Any changes in these assumptions will impact the
carrying amount of pension obligations.

The Company determines the appropriate discount
rate at the end of each year. This is the interest
rate that is used to determine the present value
of estimated future cash outflows expected to
be required to settle the pension obligations. In
determining the appropriate discount rate, the
Company considers the interest rates of high-
quality corporate bonds/Government securities
that are denominated in the currency in which
the benefits will be paid and that have terms to
maturity approximating the terms of the related
pension obligation. Other key assumptions for
pension obligations are based in part on current
market conditions (Refer Note 40).

d) Carrying value of derivatives and other financial
instruments

All financial instruments are required to be fair
valued as at the balance sheet date, as provided in
Ind AS 109 and Ind AS 113. Being a critical estimate,
judgement is exercised to determine the carrying
values. The fair value of financial instruments that
are unlisted and not traded in an active market is
determined at fair values assessed based on recent
transactions entered with third parties, based
on valuation done by external appraisers etc., as
applicable (Refer Note 39).

e) Revenue recognition and marketing accrual

Products are often sold with sales related discounts,
rebate, trade support etc. Sales are recorded based
on the price specified in the sales contract, however,

simultaneously amount of sales promotions
expenditure that would need to be incurred are also
estimated and netted off from sales. Judgement
is required to be exercised in determining the
level of provisions that would need to be accrued.
Accumulated experience is used for estimating and
providing for such expenditure.

2.4 Recent accounting pronouncements

The Ministry of Corporate Affairs (“MCA”) notifies
new standards or amendments to existing standards
under the Companies (Indian Accounting Standards)
Rules from time to time. MCA has notified amendments
to Ind AS 1 - Presentation of Financial Statements
(classification of liabilities as current or non current,
including liabilities with covenants), Ind AS 12 -
Income Taxes (International Tax Reform - Pillar Two
Model Rules), Ind AS 21 - The Effects of Changes in
Foreign Exchange Rates (Lack of Exchangeability),
and Ind AS 7 - Statement of Cash Flows and Ind
AS 107 - Financial Instruments: Disclosures (Supplier
Finance Arrangements), effective from April 1, 2025.
The Company has reviewed these amendments and
based on its evaluation, has determined that they
do not have any impact on the Company’s financial
statements. However, pursuant to the adoption of the
amendments to Ind AS 7 and Ind AS 107, the Company
has provided the required disclosures relating to liabilities
under supplier finance arrangements in the notes to the
financial statements.

New standards or amendments not yet adopted

Classification of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants - Amendments to
Ind AS 1- The amendments clarify that lender waivers
obtained after the reporting date cannot be considered
for the purpose of classifying liabilities as current or
non current and require retrospective application in
accordance with Ind AS 8. These amendments are
effective for reporting periods beginning on or after April
1, 2026. The Company does not expect any material
impact on its financial statements.

Impairment of Goodwill and intangible assets with indefinite useful life

For the purpose of Impairment Testing, Goodwill of Rs. 3859.95 Crores and indefinite life Brand amounting to Rs. 2093.33 Crores
have been allocated to India Branded Business.

Branded business within India is treated as a single CGU taking into account the way the business is managed and the operating
structures, and as independent cash inflows are generated at the country level.

Value in use i.e. the enterprise value for each CGU is calculated using cash flow projections over a period of 5 years, with
amounts based on medium term strategic plans, subject to experience adjustments. Cash flows beyond the 5 years period are
extrapolated using a long term growth rate.

Key assumptions in the business plans include future revenue, associated future levels of marketing support and other relevant
cost-base. These assumptions are based on historical trends and future market expectations specific to each CGU.

Other key assumptions applied in determining value in use are:

• Long term growth rate - Cash flows beyond the 5 years period are extrapolated using the estimated long-term growth rate
applicable for the geographies in which the CGU operate.

• Discount rate - The discount rate is based on a Weighted Average Cost of Capital (WACC) for comparable companies
operating in similar markets.

The long-term growth rates of 6.00% and pre-tax discount rate of 15.03% have been applied in the value in use calculations.

The cash generating unit is engaged in trading, manufacturing and sale of a portfolio of products catering to every day
consumption needs and have strong market position and growth potential.

Impairment charge

Based on an assessment carried out, there is no impairment charge in the current year.

Sensitivity Analysis

We have performed sensitivity analysis around the base assumptions and have concluded that no reasonable possible
changes in key assumptions based on current recent trends would cause the recoverable amount of the CGU to be less than the
carrying value.

a) Costs of these unquoted equity instruments have been considered as an appropriate estimate of fair value because of
a wide range of possible fair value measurements and cost represent the best estimate of fair value within that range.

b) During the current year, the Company has made an additional equity investment of Rs. 68.31 Crores in Tata Coffee
Vietnam Company Ltd., which is a single member limited liability Company.

c) Investment in preference shares of Amalgamated Plantations Pvt. Ltd. (APPL) subscribed in an earlier year of Rs.
37.98 Crores [67000000 shares of Rs. 10 each] is redeemable with a special redemption premium, on fulfilment of
certain conditions, within 20 years from the date of the issue and are designated as fair value through profit and loss.
Preference shares subscribed to in FY 2021-22 and 2022-23 of Rs. 124.21 Crores [200000000 shares of Rs. 10 each]
are optionally convertible, cumulative, and redeemable carrying an annual coupon rate of 6% with special redemption
premium issued for a period of 10 years and are also designated as fair value through profit and loss. The fair value of
the preference shares as at March 31, 2026 was reassessed based on estimated repayment dates and a fair value loss
of Rs. 32.53 Crores has been recognised in the Statement of Profit and Loss and disclosed under exceptional items.

During the current year, the company has recognised an impairment charge of Rs. 21.06 Crores, disclosed under
exceptional items, relating to its investment in APPL, while the entity is actively pursuing various improvement initiatives,
impairment has been recognised due to underperformance. The valuation has been arrived by the combination of DCF,
CCM and value in disposal method, as this gives the most representative measurement.

d) Preference shares of TRIL Constructions Limited are non-cumulative and mandatorily fully convertible within twenty
years from the issue date and the same is carried at cost.

e) Preference shares of Tata Coffee Ltd. are Optionally Convertible non-cumulative and redeemable with a term of 8 years.

f) As part of the simplification of the legal entity structure, net assets of Tata Tea Extractions Inc (“TTEI”) and Consolidated
Coffee Incorporated (“CCI”) was transferred to Tata Consumer Products US Holdings Inc., a wholly owned subsidiary
of Tata Consumer Products UK Group Ltd., a wholly owned subsidiary of the Company. Consequent to this restructure
within the Group, the actual cost of investment in TTEI of Rs. 59.73 Crores was allocated to Tata Consumer Products
UK Group Ltd. - Rs. 26.87 Crores and to Tata Consumer Products Capital Ltd. - Rs. 32.86 Crores, and the actual cost
of investment in CCI of Rs. 232.81 Crores was allocated to Tata Consumer Products UK Group Ltd. - Rs. 125.73 Crores
and to Tata Consumer Products Capital Ltd. - Rs. 107.08 Crores.

g) Investment in Tata Tea Holdings Private Ltd was written off during the year on application for strike off with the
Registrar of Companies. The said application is under process.

h) Relating to Power Purchase Agreement entered by the Company.

i) Investment carrying values are below Rs. 0.01 Crores.

j) These investments are fully impaired.

ii) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of Re 1 each. Each shareholder is eligible for one vote
per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion
to their shareholding.

iii) Equity shares allotted as fully paid-up (during 5 years preceding March 31, 2026) pursuant to contracts without
payment being received in cash

(a) During the financial year 2023-24, 23823166 equity shares were issued consequent to and as part of the Composite
Scheme of Arrangement between the Company, Tata Coffee Limited and TCP Beverages & Foods Limited

(b) During the financial year 2022-23, 7459935 equity shares were issued consequent to acquisition of
10.15% additional stake in Tata Consumer Products UK Group Limited, an overseas subsidiary from Tata
Enterprises (Overseas) AG.

Nature and Purpose of Reserve

i. Capital Reserve

Capital Reserve was created on acquisition of certain plantation business and on account of amalgamation of
remaining business of Tata Coffee.

ii. Securities Premium

Security Premium Account was created on issue of shares at premium. These reserves can be utilised in accordance
with Section 52 of the Companies Act 2013.

iii. Contingency Reserves

Contingency Reserves are in the nature of free reserves.

iv. Amalgamation Reserve

Amalgamation reserve was created pursuant to the scheme of amalgamation of Asian Coffee Ltd., Coffee Land Ltd.,
SIFCO Ltd. and erstwhile Tata Coffee Ltd.

v. Share Based Payment Reserve

Share-based payment reserve represents amount of fair value, as on the date of grant, of unvested and vested shares
not exercised till date, that have been recognised as expense in the statement of profit and loss till date.

Employee Shared based payment incentives

The Company has share based incentives for certain employees under Tata Consumer Products Limited- Share-based Long
Term Incentive Scheme 2021 (“TCP SLTI Scheme 2021”) and Tata Consumer Products Limited- Share-based Long Term Incentive
Scheme 2024 (“TCP SLTI Scheme 2024”) approved by Nomination & Remuneration Committee (NRC).

As per the scheme, the number of shares that will vest is conditional upon certain performance measures being achieved and
will be settled through equity shares only. The performance will be measured over vesting period of 3 years. The shares granted
under this scheme are exercisable by employees till one year from date of its vesting.

The Company has granted performance share units at an exercise price of Re 1 per shares. Shares granted will vest after 3
years from date of grant. Number of shares that will vest range from 0.5 to 1.2 per performance share unit granted depending
on performance measures achieved.

B. Measurement of fair values

The basis of measurement in respect to each class of financial asset, financial liability is disclosed in note 2.2(f) of the
financial statement.

The fair value of liquid mutual funds and long term equity investment is based on active market. Fair values of certain non¬
current investment are valued based on discounted cash flow/book value/EBlTDA multiple approach. Derivative financial
instruments are generally valued based on Black-Scholes-Merton approach/Dollar offset principles.

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

• Credit risk;

• Liquidity risk; and

• Market risk

i. Risk management framework

The Risk Management Committee of the Board is entrusted with the responsibility to assist the Board in overseeing
and approving the Company’s risk management framework. The Company has a comprehensive Risk policy relating
to the risks that the Company faces under various categories like strategic, operational, reputational and other risks
and these have been identified and suitable mitigation measures have also been formulated. The Risk Management
Committee reviews the key risks and the mitigation measures periodically. The Audit Committee has additional
oversight in the area of financial risks and control.

ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations leading to a financial loss. The Company is
exposed to credit risk arising from its operating (primarily trade receivables) and investing activities including deposits
placed with banks, financial institutions and other corporate deposits. The Company establishes an allowance for
impairment that represents its estimate of expected losses in respect of financial assets. Financial assets are classified
into performing, under-performing and non-performing. All financial assets are initially considered performing and
evaluated periodically for expected credit loss. A default on a financial asset is when there is a significant increase in
the credit risk which is evaluated based on the business environment. The assets are written off when the Company is
certain about the non-recovery.

a. Trade Receivables

The Company has an established credit policy and a credit review mechanism. The Company also covers certain
category of its debtors through a credit insurance policy. In such case the insurance provider sets an individual
credit limit and also monitors the credit risk. The concentration of credit risk arising from trade receivables is
limited due to large customer base.

Management believes that the unimpaired amounts that are past due by more than 90 days are still collectible in
full, based on historical payment behavior and analysis of customer credit risk.

b. Financial instruments and cash deposits

The credit risk from balances / deposits with banks, other financial assets and current investments are managed
in accordance with the Company’s approved policy. Investments of surplus funds are made only with approved
counterparties and within the limits assigned to each counterparties. The limits are assigned to mitigate the
concentration risks. These limits are actively monitored by the Company.

iii. Liquidity Risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company monitors
rolling forecast of its liquidity position on the basis of expected cash flows. The Company’s approach is to ensure that
it has sufficient liquidity or borrowing headroom to meet its obligations at all point in time. The Company has sufficient
short term fund based lines, which provides healthy liquidity and these carry highest credit quality rating from reputed
credit rating agency.

iv. Market risk

Market risk is the risk that the fair value of the future cash flows will fluctuate because of changes in the market prices
such as currency risk, interest rate risk and commodity price risk.

a. Currency risk

The Company operates across various geographies and is exposed to foreign exchange risk on its various currency
exposures. The risk of changes in foreign exchange rates relates primarily to the Company’s operating activities
and translation risk, which arises from recognition of foreign currency assets and liabilities.

During the year, the Company has designated certain foreign exchange forward contracts as cash flow hedges
to mitigate the risk of foreign currency exposure on highly probable forecasted transactions. Hedge effectiveness
is determined at inception and periodic prospective effectiveness testing is done to ensure the relationship exists
between the hedged items and hedging instruments, including whether the hedging instruments is expected to
offset changes in cash flows of hedge items.

b. Interest rate risk

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. The interest rate risk can also impact the provision for retiral benefits. The
Company generally utilises fixed rate borrowings and therefore not subject to interest rate risk, since neither the
carrying amount nor the future cash flows will fluctuate because of change in the market interest rates.

The Company is not exposed to significant interest rate risk as at the respective reporting dates.

c. Price Risk

The price risk is the risk arising from investments held by the Company and classified in the balance sheet either
as fair value through other comprehensive income or at fair value through profit or loss.

The Company’s equity investments are mainly strategic in nature and are generally held on a long term basis.
Further, the current investments are in units of liquid mutual fund and these are not exposed to significant price risk.

d. Commodity Risk

The Company is exposed to the fluctuations in commodity prices mainly for tea, coffee, salt and pulses. Mismatch
in demand and supply, adverse weather conditions, market expectations etc., can lead to price fluctuations. For
tea, the Company manages these price fluctuations by actively managing the sourcing of tea, private purchases
and alternate blending strategies without impacting the quality of the blend. For salt , coffee and pulses, these
fluctuations are managed through active sourcing and commercial negotiation with customers and suppliers
including through appropriate hedging policies.

Capital Management

The Company’s objective for capital management is to maximize shareholder wealth, safeguard business continuity
and support the growth of the Company. The Company determines the capital management requirement based
on annual operating plans and long term and other strategic investment plans. The funding requirements are met
through optimum mix of borrowed and own funds.

(ii) Defined Benefits

Gratuity, Pension and Post Retiral Medical Benefits:

The Company operates defined benefit schemes like retirement gratuity, defined pension benefits and post-retirement
medical benefits. There are other superannuation benefits and medical benefits restricted to certain categories of employees/
directors in the form of pension, medical and other benefits in terms of a specific policy related to the same. The defined
benefit schemes offer specified benefits to the employees on retirement. The gratuity benefit provides for a lump sum
payment to vested employees at retirement, death while in employment or on termination of employment of an amount
equivalent to 15 to 30 days’ last drawn salary payable for each completed year of service. Vesting occurs upon completion
of five continuous years of service.

The Company contributes all its ascertained liabilities towards gratuity to the trust set up for the same. Trustees administer
the contributions made to the trust. As at March 31, 2026 and March 31, 2025, the plan assets have been primarily invested
in insurer managed funds.

Expected Contribution over the next financial year:

The Company is expected to contribute Rs. 18.30 Crores to defined benefit obligation funds for the year ending March 31, 2027.
(iii) Provident Fund

The Company operates Provident Fund Schemes and the contributions are made to recognized funds maintained by the
Company and for certain categories contributions are made to State Plans. The Company has an obligation to fund any
shortfall on the yield of the trust’s investments over the administered rates on an annual basis. The Actuary has provided a
valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below
provided assumption:

42. Segment disclosure

The Company has disclosed segment information in the consolidated financial statements which are presented in the same
financial report. Accordingly, in terms of Paragraph 4 of Ind AS 108 ‘Operating Segments’, no disclosures related to segments are
presented in these standalone financial statements.

ii) Relationship with Struck off Companies

The company does not have any transaction with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956, during the current year and in the previous year.

44. The Government of India notified on November 21, 2025, the four Labour Codes - the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code,
2020 - consolidating existing labour laws. The entity has assessed the incremental impact of these changes on the basis
consistent with the Labour Codes, draft rules, FAQs and legal opinion. Considering the regulatory driven non-recurring nature,
the impact has been disclosed under Exceptional Items in the Statement of Profit and Loss for the year ended March 31, 2026.
The Government of India is in the process of notifying related rules to the New Labour Codes and the impact of these will be
evaluated and appropriately accounted as and when notified.

45. Unless otherwise stated, figures in brackets relate to the previous year. All the numbers have been rounded off to
nearest Crores.