xiii) Provisions, Contingent Liabilities and Commitments

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that the Group 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 a provision is measured using the cash flows estimated to settle the present obligation,
its carrying amount is the present value of those cash flows (when the effect of the time value of money is
material).

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 Group, 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 the obligation 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.

Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for.

b) Export obligations against the licenses taken for import of capital goods under the EPCG Scheme.

c) Obligation under the E-Waste (Management) Rules, 2022."

xiv) Assets classified as held for sale

Non-current assets (or disposal group) are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use. This condition is regarded as met
only when the asset (or disposal group) is available for immediate sale in its present condition subject only to
terms that are usual and customary for sales of such asset and its sale is highly probable. The Company must
be committed to the sale, which should be expected to qualify for recognition as a completed sale within
one year from the date of classification.

Non-current assets classified as held for sale are measured at the lower of their carrying amount and fair
value less costs to sell. The determination of fair value net of cost to sell includes use of management
estimates and assumptions.

Non-current assets classified as held-for-sale and the assets of a disposal group classified as held for sale are
presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified
as held for sale are presented separately from other liabilities in the balance sheet.

Once classified as held for sale, intangible assets, property, plant and equipment and investment properties
are no longer amortised or depreciated.

xv) Borrowing 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 borrowing costs are expensed in the period in which they occur. Borrowing costs
consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Interest
on Borrowing is calculated using Effective Interest Rate (EIR) method and is recognised in statement of profit
and loss.

xvi) Segment reporting

Operating segments are reported consistent with the internal reporting provided to Chief Operating
Decision Maker.

xvii) Financial instruments

Financial assets and financial liabilities are recognised when a Company entity becomes a party to the
contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of 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. Transaction costs directly

attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are
recognised immediately in statement of profit and loss.

The Company enters into derivative financial contracts in the nature of forward currency contracts with
banks to reduce business risks which arise from its exposures to foreign exchange. Derivatives are initially
accounted for and measured at fair value from the date the derivative contract is entered into and are
subsequently re-measured to their fair value at the end of each reporting period. Any change therein is
generally recognised in the Statement of Profit and Loss. Derivatives are carried as financial assets when fair
value is positive and as financial liabilities when fair value is negative.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there
is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on
a net basis, to realise the assets and settle the liabilities simultaneously.

xviii) 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 marketplace.

All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair
value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial
asset. However, trade receivables that do not contain a significant financing component are measured at
transaction price.

Classification of financial assets

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

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

Ý 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.

Investment in subsidiaries are measured at cost less impairment loss, if any

For the impairment policy on financial assets measured at amortised cost, refer paragraph on Impairment
of financial assets.

Debt instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income (FVTOCI):

Ý the asset is held within a business model whose objective is achieved both by collecting contractual
cash flows and selling financial assets; and

Ý 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.

Interest income is recognised in profit or loss for FVTOCI debt instruments. For the purposes of recognising
foreign exchange gains and losses, FVTOCI debt instruments are treated as financial assets measured at
amortised cost. Thus, the exchange differences on the amortised cost are recognised in profit or loss and

other changes in the fair value of FVTOCI financial assets are recognised in other comprehensive income and
accumulated under the heading of 'Reserve for debt instruments through other comprehensive income'.
When the investment is disposed off, the cumulative gain or loss previously accumulated in this reserve is
reclassified to statement of profit and loss.

For the impairment policy on debt instruments at FVTOCI, refer paragraph on Impairment of financial assets.
All other financial assets are subsequently measured at fair value through profit and loss (FVTPL).

Effective interest method

The effective interest method 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 (including all fees paid that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Income is recognised on an effective interest basis for debt instruments other than those financial assets
classified as at FVTPL. Interest income is recognised in statement of profit and loss and is included in the
"Other income" line item.

Financial assets at fair value through profit or loss (FVTPL)

Investments in equity instruments are classified as at FVTPL..

Debt instruments that do not meet the amortised cost criteria or FVTOCI criteria (see above) are measured
at FVTPL. In addition, debt instruments that meet the amortised cost criteria or the FVTOCI criteria but are
designated as at FVTPL are measured at FVTPL.

Financial assets (including derivative assets) at FVTPL are measured at fair value at the end of each reporting
period, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss
recognised in profit or loss incorporates any dividend or interest earned, mark to market gain on the financial
asset and is included in the 'Other income' line item. Dividend on financial assets at FVTPL is recognised
when the Company's right to receive the dividends is established, it is probable that the economic benefits
associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of
cost of the investment and the amount of dividend can be measured reliably.

Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets
measured at amortised cost, debt instruments at FVTOCI, trade receivables, other contractual rights to
receive cash or other financial asset, and financial guarantees not designated at FVTPL.

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.

If the Company measured loss allowance for a financial instrument at lifetime expected credit loss model in
the previous period, but determines at the end of a reporting period that the credit risk has not increased
significantly since initial recognition due to improvement in credit quality as compared to the previous
period, the Company again measures the loss allowance based on 12-month expected credit losses.

When making the assessment of whether there has been a significant increase in credit risk since initial
recognition, the Company uses the change in the risk of a default occurring over the expected life of the
financial instrument instead of the change in the amount of expected credit losses. To make that assessment,
the Company compares the risk of a default occurring on the financial instrument as at the reporting date
with the risk of a default occurring on the financial instrument as at the date of initial recognition and
considers reasonable and supportable information, that is available without undue cost or effort, that is
indicative of significant increases in credit risk since initial recognition.

For 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, 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 simplified approach using a provision matrix.

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there
is no realistic prospect of recovery.

The impairment requirements for the recognition and measurement of a loss allowance are equally applied
to debt instruments at FVTOCI except that the loss allowance is recognised in other comprehensive income
and is not reduced from the carrying amount in the balance sheet.

The Company reviews its investments in subsidiaries carried at cost for impairment annually or whenever
there is an indication for impairment. If the recoverable amount is less than its carrying amount, the
impairment loss is recognised immediately in the statement of profit and loss (Refer note no. 39.3 & 39.4).

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.

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 profit or loss on disposal of that financial asset.

On derecognition of a financial asset other than in its entirety (e.g. when the Company retains an option to
repurchase part of a transferred asset), 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 profit or loss if such gain or loss would
have otherwise been recognised in profit or 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.

xix) Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method or
at FVTPL.

However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or
when the continuing involvement approach applies, financial guarantee contracts issued by the Company,
and commitments issued by the Company to provide a loan at below-market interest rate are measured in
accordance with the specific accounting policies set out below.

Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at
amortised cost at the end of subsequent accounting periods. The carrying amounts 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 (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts) through the
expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on
initial recognition.

Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse
the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance
with the terms of a debt instrument.

Financial guarantee contracts issued by a Company entity are initially measured at their fair values and, if not
designated as at FVTPL, are subsequently measured at the higher of:

Ý the amount of loss allowance determined in accordance with impairment requirements of Ind AS
109; and

Ý the amount initially recognised less, when appropriate, the cumulative amount of income recognised
in accordance with the principles of Ind AS 115.

Derecognition of financial liabilities

The Company derecognises financial liabilities 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 financial liability. Similarly, a substantial modification of the terms of an existing financial liability
(whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment
of the original financial liability and the recognition of a new financial liability. The difference between the
carrying amount of the financial liability derecognised and the consideration paid and payable is recognised
in statement of profit and loss.

Derivative liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement
recognised in profit or loss. The mark to market loss recognised in profit or loss is included in the 'Other
expense' line item.

xx) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

xxi) Exceptional Items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an
understanding of the performance of the Company is treated as an exceptional item and disclosed as such
in the standalone financial statements.

xxii) Earnings per Share

Basic earnings per share are calculated by dividing the profit for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period. For the purpose of
calculating diluted earnings per share, the profit for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive
potential equity shares.

xxiii) Statement of Cash Flows

Statement of Cash flows is reported using the indirect method, whereby profit for the year is adjusted for
the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing activities of the Company are segregated
based on the available information.

2-B. Critical accounting estimates and judgements

The preparation of the Company's Ind AS Standalone Financial Statements requires management to make
estimates and judgements that affect the reported amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
estimates and judgements could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.

Estimates and judgements

The key estimates and judgements concerning the future and other key sources of estimation uncertainty
at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are described below. The Company based its judgements
and estimates on parameters available when the standalone financial statements were prepared. Existing
circumstances and judgements about future developments, however, may change due to market changes
or circumstances arising that are beyond the control of the Company. Such changes are reflected in the
estimates and judgements when they occur.

Assumptions and estimation uncertainties

The following areas are subject to estimation uncertainties and the details thereof are included in
respective notes:

Warranties

Warranty provisions are determined based on the historical percentage of warranty expense to sales. The
same percentage to the sales is applied for the current accounting period to derive the warranty expense to
be accrued. Period of measurement is considered in line with warranty period offered for respective products.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate.
A provision is reversed when it is no longer probable that an outflow of resources embodying economic
benefits will be required to settle the obligation.

Impairment of financial assets

Impairment exists when the carrying value of an asset or cash generating unit ("CGU") exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less
costs of disposal calculation is based on available data for similar assets or observable market prices less
incremental costs for disposing of the asset. The value in use calculation is based on discounting future
cash flows using a post-tax discount rate. The recoverable amount is sensitive to the discount rate used on
expected future cash-inflows and the growth rate used for extrapolation purposes. Further, the Company
uses judgement in making assumptions and selecting the inputs to calculate the recoverable value for
determining impairment, based on Company's history, existing market conditions as well as forward looking
estimates at the end of each reporting period These estimates are most relevant for determining impairment
of investment in subsidiaries.

Fair value measurement

In measuring the fair value of certain assets and liabilities for financial reporting purpose, the Company uses
market observable data to the extent available. Where such Level 1 inputs are not available, the Company
establish appropriate valuation techniques and inputs to the model. 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 judgements about these factors could affect the reported fair value of financial
instruments. Refer note 44 for further disclosures.

Useful Life of the Property, Plant and Equipment

The Company reviews the residual values, useful lives and methods of depreciation of Property, Plant and
Equipment and amortization of intangible assets at each reporting date. Estimates are involved in the
determination of these values, rates, methods and hence they are subject to uncertainty.

Employee Benefit Liability

The cost as well as the present value of defined benefit plans - gratuity is determined using Actuarial
Valuations. The Actuarial Valuation involves making assumptions about discount rates, future salary increases
and other important related data. Due to the long-term nature of employee benefits, such estimates are
subject to significant uncertainty.

Judgements

Information about judgments made in applying accounting policies that have the most significant effects
on the amounts recognised in the standalone financial statements is included in the following notes:

Lease Liabilities: Key assumptions about reasonable certainty of the Company exercising renewal options
under the agreement.

(2-C). Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time.

A. Standards issued but not yet effective

The new and amended standards and interpretations that are issued, but not yet effective, up to the
date of issuance of the Standalone Financial Statements are disclosed below. The Company will adopt
this new and amended standard, when it becomes effective.

(i) Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities with
Covenants The amendment requires that if a covenant breach is rectified after the reporting date, the
same will be treated as a non-adjusting event and this amendment will be applicable from annual
reporting periods beginning on or after the April 01,2026.

The amendment does not see any material impact on the Standalone Financial Statements.

B. Standards issued and are effective in reporting period.

In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange
Rates, applicable w.e.f. April 01, 2025. The Company has reviewed the amendment and based
on its evaluation has determined that it does not have any significant impact in its standalone
financial statements.

In August 2025, MCA notified the following amendments to:

1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f April 01,2025 - The amendment
relates to classification of liabilities as current or non -current and noncurrent liabilities with
covenants. In the context of classifying a liability as current, it removes the requirement of
existence of a right to defer settlement for at least 12 months after the reporting date, and
instead requires that the said right should exist on the reporting date and have substance.
The amendment also introduces guidance on classification of liabilities with covenants. The
Company has no impact of these amendments in its classification criteria of current and non¬
current liabilities.

2. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments - Disclosures, applicable
w.e.f April 01,2025 - The amendment in Ind AS 7 requires to inform users of financial statements
of the existence of supplier finance arrangements and explain the nature of the arrangements,
the carrying amount of liabilities and the range of payment due dates. Ind AS 107 has been
amended to add supplier finance arrangements as a factor that may cause concentration of
liquidity risk. The Company has reviewed the amendment and based on its evaluation has
determined that it does not have any significant impact in its Standalone financial statements.

3. Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The
amendments provide a temporary mandatory relief from deferred tax accounting for top-
up tax and disclose that they have applied the relief. This relief is immediate and applies
retrospectively. The amendments also require companies to provide new disclosures to
compensate for potential loss of information resulting from the relief. Such disclosures are to be
provided for annual reporting periods beginning on or after April 01,2025. These requirements
are not applicable to the Company.

4. Other Amendments (Ind AS 115, Ind AS 116): Removed the conflict between Ind AS 109 and
Ind AS 115 over the amount at which a trade receivable is initially measured (Ind AS 115 and
Ind AS 116). These amendments do not have a material impact on the Company's standalone
financial statements.

of Standard Chartered Bank, India (security agent for Standard Chartered Bank, UK) as collateral in respect of
acquisition loan availed by Climate Holdings Pty Limited (Formerly known as Symphony AU Pty. Limited),
Australia as per terms of the amendment and restatement agreement with the Bank (Refer note no. 34). The
said acquisition loan was prepaid fully in March, 2026 and therefore these pledges will be removed soon.

ii) The post tax free cash flows have been discounted using post tax weighted average cost of capital (WACC)
and cost of equity which is based on the discounted cash flow model. These assumptions have been adjusted
appropriately at each reporting date.

iii) The Company has pledged units of mutual funds worth H19.98 crores (Previous year H24.41 crores) out of
the above mentioned investments in favour of ICICI Bank as security in respect of working capital facility H75
crores (Previous year H75 crores) sanctioned by the bank.

iv) The Company has pledged units of mutual funds worth H7.08 crores (Previous year H46.38 crores) out of the
above mentioned investments in favour of HDFC Bank as security in respect of working capital facility of H39
crores (Previous year H39 crores) sanctioned by the bank.

i) The Company has granted Loan to Symphony Climatizadores Ltda, Brazil for H44.44 crores (previous year
H12.39 crores) carrying interest rate of SOFR of one year plus 244 Basis Point for business purpose.

ii) The Company has granted Loan to Guangdong Symphony Keruilai Air Coolers Co. Limited, China for H Nil
(previous year H52.67 crores) (including accrued interest) for business purpose.

iii) The Company has granted Loan to Climate Holdings Pty Limited (Formerly known as Symphony AU Pty.
Limited), Australia for H Nil (previous year H56.15 crores) for business purpose.

10. Trade Receivables (Contd.)

(i) Trade receivables are non-interest bearing and are generally on terms of 0 to 180 days.

(ii) No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any
other person; nor any trade or other receivable are due from firms or private companies in which any director is a partner, a
director or a member.

(iii) There has been no change in the estimation technique for ECL during the current year.

(iv) The Company writes off a trade receivable balance when there is information indicating that the debtor is in severe financial
difficulty and there is no realistic prospect of recovery.

i) The Company has granted Loan to Guangdong Symphony Keruilai Air Coolers Co. Limited, China for H18.48
crores (previous year H Nil) (including accrued interest) carrying interest rate of 5.60% for business purpose.

ii) The Company has granted Loan to IMPCO S DE RL DE C V., Mexico for H27.03 crores (previous year H Nil)
(including accrued interest) carrying interest rate of SOFR of one year plus 244 Basis Point for business purpose.

iii) Interest accrued on Loan granted to Symphony Climatizadores Ltda, Brazil for H0.77 crores (previous year H0.31
crores) carrying interest rate of SOFR of one year plus 244 Basis Point for business purpose.

iv) Interest accrued on Loan granted to Climate Holdings Pty Limited (Formerly known as Symphony AU Pty.
Limited), Australia H Nil (previous year H0.79 crores) for business purpose.

(i) The Board of Directors have recommended a final dividend of H5/- (250%) per equity share of H2/- each
amounting to H34.34 crores for FY 25-26. The total dividend for FY 25-26 aggregates to H9/- (450%) per equity
share of H2/- each amounting to H61.80 crores which includes three interim dividends of H4/- (200%) per
equity share paid during the year. The final dividend is subject to approval by shareholders at the ensuing
Annual General Meeting of the Company.

(ii) In line with the requirement of the Companies Act, 2013, an amount H Nil (Previous year H87.87 crores)
[Including tax on buy back of H Nil (Previous year H16.53 crores)] had been utilized from retained earnings. In
accordance with section 69 of the Companies Act, 2013, capital redemption reserve of H Nil (Previous year H0.06
crores) (representing the nominal value of the shares bought back) had been created as an apportionment
from retained earnings. Further, transaction cost of buy back of shares of H Nil (Previous year H1.26 crores) had
been reduced from retained earnings.

(iii) The portion of profits not distributed among the shareholders are termed as retained earnings. The Company
may utilise the retained earnings for making investments for future growth and expansion plans, for the
purpose of generating higher returns for the shareholders or for any other specific purpose, as approved by
the Board of Directors of the Company.

In respect of the above matters the management is reasonably confident that no material liability will devolve on
the company and hence not recognised in the books of account.

For all matters contingent liability includes the order passed by the concerned authority against the Company and
pending in appeal either at appellate or other higher authority level. In GST matters, contingent liability shown
above also includes liability as per notices/show cause notices received from GST department for matter related to
interest on GST liability already discharged. Amounts mentioned above do not include possible interest/penalty
from the date of the contested order till the balance sheet date.

*This represents the amount of Corporate Guarantee / Standby Letter of Credit to the extent of outstanding
balance of loans availed. The total Corporate Guarantee / Standby Letter of Credit given is H205.21 crores (Previous
year H248.75 crores).

33. Segment Reporting

(a) Operating Segment :

As per recognition criteria mentioned in Ind AS - 108, Operating Segments, the Company has identified
only one operating segment i.e. Air Cooling and Other Appliances Business. However substantial portion
of Corporate Funds remained invested in various financial instruments. The Company has considered
Corporate Funds as a separate segment so as to provide better understanding of performance of Air Cooling
and Other Appliances Business.

No Single customer represents 10% or more of the Company's total revenue for the year ended March 31,
2026 and March 31,2025.

Terms and Conditions of transactions with related party are as under:

A number of the above mentioned parties transacted with the Company during the year. The terms and
conditions of the transactions with intragroup companies, key management personnel and their related
parties were no more favourable than those available, or those which might reasonably be expected to
be available, in similar transactions with non-key management personnel-related companies on an arm's
length basis.

Outstanding balances of related parties at the year end are unsecured and settlement occurs in cash.

# The above remuneration does not include Gratuity as it is provided in the books on the basis of actuarial
valuation for the Company as a whole and hence individual figures cannot be identified. During the year, no
payment pertaining to Gratuity has been made to Key Management Personnels.

36.4 : Lease Commitments for short-term leases

The Company has entered into Short term leases for clearing and forwarding agent premises at various location
of India, tenure of which is less than a year. There are no obligations or commitments with reference to such short
term leases as at reporting date as such leases are cancellable at the discretion of lessee i.e. the Company.

37. Employee Benefits

(A) Defined contribution plans

The Company makes provident fund contribution which is defined contribution plan, for qualifying
employees. Under the scheme, the Company is required to contribute a specified percentage of payroll
costs to fund the benefits. The Company recognised H1.80 crores (Year ended March 31, 2025 H1.67 crores)
for provident fund contributions in the Statement of Profit and Loss. The contribution payable to this plan by
the Company is at rate specified in the rule of the scheme.

(B) Defined benefit plans

The defined benefit plan of the Company includes entitlement of gratuity for each year of service until the
retirement age.

The plan typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk
and salary risk.

Investment The present value of the defined benefit plan liability is calculated using a discount rate
risk: which is determined by reference to market yields at the end of the reporting period on

government bonds. If the return on plan asset is below this rate, it will create a plan deficit.
Currently, for the plan in India, it has a relatively balanced mix of investments in government
securities and other debt instruments.

37. Employee Benefits (Contd.)

Interest risk: A fall in the discount rate which is linked to the Government Securities. Rate will increase the
present value of the liability requiring higher provision. A fall in the discount rate generally
increases the mark to market value of the assets depending on the duration of asset.

Longevity Since the benefits under the plan is not payable for life time and payable till retirement age
risk: only, plan does not have any longevity risk.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary of the members more than assumed
level will increase the plan's liability.

Asset The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in

Liability lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk. The Company

Matching contributes to the insurance fund based on estimated liability of the next financial year end.
Risk: The projected liability statement is obtained from the actuarial valuer.

The Present value of gratuity obligations is determined based on actuarial valuation using the projected unit
credit method, which recognises each period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation.

38. Leave encashment

As per the policy followed by the Company, all the leaves are enjoyable in the year itself. Therefore there is no
liability of leave encashment existing at the end of the year. Accordingly no provision is made for leave encashment.

39. Exceptional Items

(39.1) During the year ended March 31,2025, the Company had written off H50.22 crores towards receivable from
M/s Pathways Retail Pvt Ltd, Delhi out of which H45.99 crores is classified as an exceptional item and balance H4.23
crores as expected credit loss provision. During the year ended March 31,2026, the Company has recovered H8.50
crores from the said party and this amount is presented as an exceptional item.

(39.2) Pursuant to the notification issued by the Ministry of Labour and Employment, multiple existing labour
legislations have been consolidated into a unified framework comprising four Labour Codes, collectively referred
to as the 'New Labour Codes' which became effective from November 21, 2025. The Company has reassessed
its employee benefit obligations in accordance with the revised definition of wages and FAQs issued by The
Ministry of Labour & Employment. Accordingly, an incremental liability of H1.40 crores as past service cost on post¬
employment defined benefits for its employees has been recognised as an exceptional item during the year ended
March 31,2026. The Company continues to monitor the developments relating to the implementation of the New
Labour Codes and would review the estimates as further clarifications and Rules are notified.

(39.3) The Company holds long-term investments in the equity shares of Climate Holdings Pty Limited (Formerly
known as Symphony AU Pty. Limited) ("SAPL"), a wholly owned subsidiary having subsidiaries viz Climate
Technologies Pty Limited, Australia, and Bonaire USA LLC, USA. As of March 31,2026, the gross carrying amounts of
these investments was H348.27 crores (as of March 31,2025 H183.91 crores).

During the year ended March 31,2026, the Company's management calculated the value in use of its investment in
SAPL to determine the recoverable value, in line with Ind AS 36 - Impairment of Assets. After careful consideration
of various factors, the management believes that the value of its investment in SAPL shall be fully impaired
resulting in an impairment loss of H298.12 crores (during year ended March 31,2025 H50.15 crores) and presented
as an exceptional item.

(39.4) During FY 2019-20, the Company had made impairment provision of H1.55 crores towards investment in
Guangdong Symphony Keruilai Air Coolers Company Limited (GSK), a wholly owned subsidiary of the Company in
China and classified it as an exceptional item.

During FY 2023-24, the Company had made provision for expected credit loss on loan given to GSK amounting to
H7.73 crores, classified as an exceptional item.

During FY 2024-25, considering an improvement in the operational cashflow of GSK, the Company had reversed
provision for expected credit loss amounting to H7.73 crores towards loan and impairment provision of H1.55 crores
towards Investment. The same was classified as an exceptional item.

The outstanding amount of loan as at March 31,2026 is H18.48 crores (as at March 31,2025 H52.67 crores).

40. Assets classified as held for sale

During the year ended March 31,2025, the Company had decided to sell a land in Ahmedabad. Accordingly, the
land was classified as an "Asset held for sale" from Gross Block of Assets at its carrying value of H5.68 crores (Fair value
in FY 2024-25 H29.94 crores measured as per the market approach by reference to sales of comparable properties),
as it met the criteria to be classified as a "Held for sale" asset in accordance with Ind AS 105 "Non-current Assets
Held for Sale and Discontinued Operations". However, during the year ended March 31, 2026, the Company has
reclassified the land to Property, plant and equipment from Assets held for sale as the sale of land is not highly
probable within a period of 12 months, and the management is not committed to a plan to sell the asset, and the
land is not actively marketed for sale.

Accordingly, the land has been reclassified at the lower of its carrying amount, i.e., H5.68 crores which is the value
that would have been recognised had the asset (or disposal group) not been classified as held for sale, and its
recoverable amount, i.e., H31.88 crores at the date of the subsequent decision not to sell the land.

Further, the said land has been subsequently reclassified from Property, Plant and Equipment to Investment
Property in accordance with Ind AS 40, since the management has decided to hold the land for capital appreciation.

43. Financial Instruments

Capital Management

The Company manages its capital to ensure that the Company will be able to continue as going concern, while
maximising the return to stakeholders through efficient allocation of capital towards expansion of business,
optimisation of working capital requirements and deployment of surplus funds into various investment options.

The Company is not subject to any externally imposed capital requirements.

The management of the Company reviews the capital structure of the Company on regular basis.

Valuation technique and key inputs used to determine fair value:

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

B. Level 2 : Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.

The Company enters into derivative financial instruments with various counterparties, principally
banks. The fair value of derivative financial instruments is based on observable market inputs including
currency spot and forward rate, yield curves, currency volatility, credit quality of counterparties,
interest rate and forward rate curves of the underlying instruments etc. and use of appropriate
valuation models.

(b) Fair value of financial assets and financial liabilities that are not measured at fair value (but
fair value disclosures are required):

I Financial assets measured at amortised cost

The carrying amount of Trade receivables, Loans, Cash and cash equivalents and bank balances &
Other current financial assets are considered to be the same as their fair value due to their short term
nature. The carrying amount of Other non-current financial assets are considered to be close to the
fair value.

Financial risk management objectives

The Company's management monitors and manages the financial risks relating to the operations of the
Company. These risks include market risk (including currency risk, interest rate risk and other price risk),
credit risk and liquidity risk. The Company's risk management is done in close co-ordination with the board
of directors and focuses on actively securing the Company's short, medium and long-term cash flows by
minimizing the exposure to volatile financial markets. The Company does not enter into or trade financial
instruments, including derivative financial instruments, for speculative purposes. The most significant risks
to which the Company is exposed are described below:

Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may
result from a change in the price of a financial instrument. The Company's activities expose it primarily to the
financial risks of changes in foreign currency exchange rates, interest rates risk and price risk which impact
returns on investments. Market risk exposures are measured using sensitivity analysis.

Foreign currency risk management

The company is mainly exposed to the currency of United States Dollar (USD), Australian Dollar (AUD), and
Chinese Yuan Renminbi (CNY) against Indian Rupee (INR), have an impact on the Company's operating
results. Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company enters into foreign exchange forward contracts
to manage the foreign currency risk exposure.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms
of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions, the
derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up
to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency.

At March 31, 2026 the Company hedged 47% (March 31, 2025: 14%) of its expected foreign currency trade
receivables and 49% (March 31,2025: Nil) of its expected foreign currency loan receivables. Those hedged
sales and loans were highly probable at the reporting date. This foreign currency risk is partly hedged by
using foreign currency forward contracts.

key management personnel and represents management's assessment of the reasonably possible change
in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated
monetary items and adjusts their transaction at the period end for a 5% change in foreign currency rates.
A positive number below indicates an increase in profit or equity where the H strengthens 5% against the
relevant currency. For a 5% weakening of the H against the relevant currency, there would be a comparable
impact on the profit or equity, and the balances below would be negative.

Price risk sensitivity

The table below summarises the impact of increases / decreases of the index on the Company's equity and
profit for the year.

Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company.

Financial instruments that are subject to concentrations of credit risk, principally consist of balance with
banks, investments (Bond and mutual fund), trade receivables, loans and advances.

Balances with banks were not past due or impaired as at the year end. In other financial assets that are not
past dues and not impaired, there were no indication of default in repayment as at the year end.

Credit risk arises from the possibility that customers may not be able to settle their obligations as agreed.
To manage this risk, the Company periodically assesses the financial reliability of customers, taking into
account their financial position, past experience and other factors. The Company manages credit risk
through, establishing credit limits and continuously monitoring the creditworthiness of customers to which
the Company grants credit terms in the normal course of business.

The management continuously monitors the credit exposure towards the customers outstanding at the end
of each reporting period to determine incurred and expected credit losses.

Price risk

The Company's exposure to price risk arises from investments in Bond and mutual funds held by the
Company and classified in the balance sheet at fair value through OCI and at fair value through profit or loss.
To manage its price risk arising from investments, the Company diversifies its portfolio. Diversification of the
portfolio is done in accordance with the limits set by the Company.

Interest rate risk

The Company's majority investments are primarily in fixed rate interest bearing investments. Except in case
of Market Linked Debentures the Company is not significantly exposed to interest rate risk.

Liquidity risk

The Company manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast
and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Maturities of financial liabilities:

The tables below analyse the Company's financial liabilities into relevant maturity groupings base on
their contractual maturities for all non-derivative financial liabilities. Maturity of financial liabilities are on
undiscounted basis.

47. Other Statutory Information

(i) The Company did not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

(ii) The Company did not have any transactions with companies struck off.

(iii) The Company did not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

(iv) The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

(v) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with any oral or written understanding (whether recorded in writing or otherwise) that the
Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(viii) The Company has no such transactions which are not recorded in the books of accounts 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.

(ix) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017.

48. Amount below H50 thousand is mentioned as "0.00".

49. Investments made by the Company in CHPL and IMPCO were classified as 'Assets held for Sale' amounting
to H133.76 crores (Net of impairment provision of H50.15 crores) and H0.00 crores respectively in the Interim
Standalone Statement of Assets and Liabilities of the Company published during the year.

Despite sustained efforts by the management, no formal proposal was received as per the expectation of the
Company or strategic considerations. Considering the rapidly evolving geopolitical landscape, the Board in its
meeting dated January 28, 2026, decided to roll back the divestment process for these subsidiaries. Accordingly,
the investments in wholly owned subsidiaries no longer meet the 'Held for sale' criteria as the divestment in these
subsidiaries is not highly probable within a period of 12 months and the management is not committed to a
plan to sell the investment and it is not actively marketed for sale, hence the investments are reclassified at its
carrying amounts.

50. Subsequent to the reporting period, on May 15, 2026, the Board of Directors approved the transfer of Climate
Technologies Pty Limited's ("CTPL") entire stake in its step down subsidiary, Bonaire USA LLC ("Bonaire"), to be held
directly under the Ultimate Parent Company, Symphony Limited. This restructuring involves the transfer of CTPL's
entire shareholding in Bonaire to the Ultimate Parent Company i.e. Symphony Limited.

This transaction is a common control transaction and an internal reorganization within the Group and accordingly,
it does not result in any change in the ultimate ownership or control over the CTPL (through Climate Holdings Pty
Limited) and Bonaire.

Subsequent to the reporting period, on May 15, 2026, the Board of Directors approved the transfer of intellectual
properties ("IP") i.e. patents, trademarks and commercial designs owned by Climate Technologies Pty Limited
("CTPL") to the Ultimate Parent Company, Symphony Limited. This transfer involves the movement of CTPL's
patents, trademarks and commercial designs rights directly to Symphony Limited.

As the above mentioned events relates to conditions that arose after the reporting date, it is considered as a
non-adjusting subsequent event in accordance with Ind AS 10 - Events after the Reporting Period. No adjustments
have been made to the standalone financial statements as at and for the year ended March 31,2026.

51. Approval of financial statements

The standalone financial statements were approved for issue by the board of directors on May 15, 2026.