l) Provisions, contingent liabilities,
contingent assets and commitments

A provision is recognized when the Company has
a present obligation (legal or constructive) as a
result of past events and it is probable that an
outflow of resources will be required to settle the
obligation, in respect of which a reliable estimate
of the amount can be made, timing or amount of
the outflow may still be uncertain. Provisions are
recognized at the best estimate of the expenditure
required to settle the present obligation at the
reporting date. If the effect of time value of
money is material, provisions are determined
by discounting the expected future cash flows
using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision
due to the passage of time is recognized as a
finance cost.

A contingent liability is disclosed when there is a
possible but not probable obligation arising from
past events, or a present obligation that may, but
probably will not, require an outflow of resources,
or a present obligation whose amount cannot
be estimated reliably. Contingent liabilities do
not warrant provisions but are disclosed. In those
cases, where the outflow of economic resources
as a result of present obligations is considered
improbable or remote, no liability is recognized, or
disclosure is made.

Contingent assets are disclosed in the standalone
financial statements when an inflow of economic
benefit is probable. However, when the realization
of income is virtually certain, then the related
asset is not a contingent asset, and its recognition
is appropriate.

Any reimbursement that the Company can be
virtually certain to collect from a third party
concerning the obligation is recognized as a
separate asset. However, this asset may not exceed
the amount of the related provision.

Commitments are future liabilities for contractual
expenditure, classified and disclosed as estimated
amount of contracts remaining to be extracted on
capital account and not provided for.

m) Income taxes

Tax expense recognized in profit or loss comprises
the sum of deferred tax and current tax. It is
recognized in the Statement of Profit and Loss,
except when it relates to an item that is recognized
in OCI or directly in equity, in which case, the tax is
also recognized in OCI or directly in equity. (Refer
Note 17)

i) Current tax

Current tax is determined as the amount of tax
payable in respect of taxable income for the
year. The Company's current tax is calculated
using tax rates that have been enacted or
substantively enacted by the end of the
reporting period, and any adjustments to tax
payable in respect of previous years.

Current tax assets and liabilities are offset
only if:

• there is a legally enforceable right to set
off current tax assets against current
tax liabilities and when they relate to
income taxes levied by the same taxation
authority; and

• there is intention either to settle on a net
basis, or to realize the asset and settle the
liability simultaneously.

ii) Deferred tax

Deferred tax is recognized in respect of
temporary differences between the carrying
amounts of assets and liabilities for financial
reporting purposes and the corresponding
tax bases used in the computation of taxable
income. However, deferred tax liabilities are
not recognized if they arise from the initial
recognition of goodwill. Deferred income
tax is also not accounted for if it arises from
initial recognition of an asset or liability in a
transaction other than a business combination

that at the time of the transaction affects
neither accounting profit nor taxable profit
(tax loss).

Deferred tax on temporary differences
associated with investments in subsidiary is
not provided if reversal of these temporary
differences can be controlled by the Company
and it is probable that reversal will not occur in
the foreseeable future.

Deferred tax assets and liabilities are
calculated, without discounting, at tax rates
that are expected to apply to their respective
period of realization, provided those rates are
enacted or substantively enacted by the end
of the reporting period.

Deferred tax assets are recognized for
deductible temporary differences (if any)
to the extent that it is probable that future
taxable profits will be available against which
they can be used. The existence of unused tax
losses is strong evidence that future taxable
profit may not be available. Therefore, in
case of history of recent losses, the Company
recognizes a deferred tax asset only to the
extent that it has sufficient taxable temporary
difference or there is convincing other
evidence that sufficient taxable profits will
be available against which such deferred tax
asset can be realized.

Deferred tax assets and deferred tax liabilities
are reviewed at each reporting date and
are reduced to the extent that it is no longer
probable that the related tax benefit will
be realized.

Unrecognized deferred tax assets are
reassessed at each reporting date and
recognized to the extent that it has become
probable that future taxable profits will be
available against which they can be used.

Deferred tax is measured at the tax rates that
are expected to be applied to temporary
differences when they reverse, using tax rates
enacted or substantively enacted at the
reporting date and are expected to apply
when the related deferred income tax asset
is realized, or the deferred income tax liability
is settled.

Changes in deferred tax assets or liabilities
are recognized as a component of tax income
or expense in profit or loss, except where they
relate to items that are recognized in other
comprehensive income or directly in equity,
in which case the related deferred tax is also
recognized in other comprehensive income or
equity, respectively.

Current tax assets and current tax liabilities
are offset when there is a legally enforceable
right to set off the recognized amounts and
there is an intention to settle the asset and the
liability on a net basis. Deferred tax assets and
deferred tax liabilities are offset when there
is a legally enforceable right to set off current
tax assets against current tax liabilities; and
the deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the
same taxation authority.

n) Revenue from contract with customers

Revenue is recognized to the extent that it
is probable that the economic benefits will
flow to the Company and the revenue can be
reliably measured.

The Company uses the principles laid down by
the Ind-AS 115 to determine that how much and
when revenue is recognized, what is the nature,
amount, timing and uncertainty of revenues etc. In
accordance with the same, revenue is recognized
through a five-step approach:

• Identify the contract(s) with customer;

• Identify separate performance obligations in
the contract;

• Determine the transaction price;

• Allocate the transaction price to the
performance obligations; and

• Recognize revenue when a performance
obligation is satisfied.

The Company uses the principles laid down by Ind-
AS as above to recognize revenue from contracts
with customers when it satisfies a performance
obligation by transferring promised goods or
services to a customer. Revenue is recognized to
the extent of transaction price allocated to the

performance obligation satisfied. Performance
obligation is satisfied over time when the transfer
of control of assets (goods or services) to a
customer is done over time and in other cases,
performance obligations are satisfied at a point
in time. For performance obligation satisfied
over time, the revenue recognition is done by
measuring the progress towards complete
satisfaction of performance obligation and the
progress is measured in terms of a proportion of
actual cost incurred to date, to the total estimated
cost attributable to the performance obligation.
Revenue excludes goods and services tax which is
recorded separately.

Revenues are measured at the fair value of the
consideration received or receivable, net of
discounts and other indirect taxes.

In Cost Plus Contracts - Revenue is recognized by
including eligible contractual items of expenditures
plus proportionate margin as per contract.

Estimates of revenues, costs or extent of progress
toward completion are revised if circumstances
change. Any resulting increases or decreases in
estimated revenues or costs are reflected in profit
or loss in the period in which the circumstances
that give rise to the revision become known
by management.

i) Sale of Goods

The Company recognizes revenue from the
sale of goods measured upon satisfaction of
performance obligation which is at a point in
time when control of the goods is transferred
to the customer, generally on delivery of
the goods.

The Company considers, whether there are
other promises in the contract in which there
are separate performance obligations, to
which a portion of the transaction price
needs to be allocated. In determining the
transaction price for the sale of goods,
the Company allocates a portion of the
transaction price to different performance
obligations goods bases on its relative
standalone prices.

o) Borrowing costs

Borrowing costs consist of interest and other costs
that the Company incurred in connection with
the borrowing of funds. Borrowing costs that are
directly attributable to the acquisition and/or
construction of a qualifying asset, till the time such
qualifying asset becomes ready for its intended
use, are capitalized. A qualifying asset is one that
necessarily takes a substantial period to get ready
for its intended use.

All other borrowing costs are charged to the
Statement of Profit and Loss on an accrual basis as
per the EIR method.

p) Earnings per share (EPS)

Basic earnings per share is computed by dividing
the net profit for the period attributable to
the equity shareholders of the Company (after
deducting attributable taxes) by the weighted
average number of equity shares outstanding
during the period. The weighted average number
of equity shares outstanding during the year and
for all the years presented, is adjusted for events,
such as bonus shares, other than the conversion
of potential equity shares, that have changed the
number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable
to equity shareholders and the weighted average
number of shares outstanding during the year is
adjusted for the effects of all dilutive potential
equity shares.

q) Segment accounting

The segment reporting of the Company has
been prepared in accordance with Ind-AS-108,
“Operating Segment” (specified under the section
133 of the Companies Act 2013 (the Act) read with
Companies (Indian Accounting Standards) Rule
2015 (as amended from time to time) and other
relevant provision of the Act).

The Operating Segment is the level at which
discrete financial information is available and
for which the Chief Operating Decision Maker
(‘CODM') monitors the operating results of its
business segments separately for the purpose of
making decisions about resource allocation and
performance assessment. Segment performance is
evaluated based on profit or loss and is measured
consistently with profit or loss in the standalone
financial statements.

Revenue and expenses have been identified to a
segment on the basis of relationship to operating
activities of the segment. Revenue, expenses
and exceptional items which relate to enterprise
as a whole and are not allocable to a segment
on reasonable basis have been disclosed as
“unallocable”.

Segment assets and segment liabilities represent
assets and liabilities in respective segments.
Investments, tax related assets, borrowings
and other assets and liabilities that cannot be
allocated to a segment on reasonable basis have
been disclosed as “unallocable”.

Segment revenue resulting from transactions with
other business segments is accounted on the basis
of transfer price agreed between the segments.
Such transfer prices are either determined to yield
a desired margin or agreed on a negotiated basis.

r) Exceptional Items

An item of income or expense which by its size,
nature or incidence requires disclosure in order to
improve an understanding of the performance of
the Company is treated as an exceptional item and
the same is disclosed in standalone statement of
profit and loss and in the notes forming part of the
standalone financial statements.

s) Dividend distributions

The Company recognizes a liability to make the
payment of dividend to owners of equity, when the
distribution is authorised and the distribution is no
longer at the discretion of the Company. As per the
corporate laws in India, a distribution is authorized
when it is approved by the shareholders. A
corresponding amount is recognised directly
in equity.

t) Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies
new standards or amendments to the existing
standards year ended 31^st March, 2026, MCA has
notified following Amendment to Ind AS, applicable
to the Company w.e.f. 1^st April, 2025

i) Ind AS 21 - The Effects of Changes in Foreign
Exchange Rates Lack of Exchangeability

ii) Ind AS 12 - Income Taxes relating to
International Tax Reform - Pillar Two Model
Rules -Exception to recognition and disclosure
of deferred tax.

iii) Amendments to Ind AS 7 - Cash flow
statement and Ind AS 107 - Financial
Instrument Disclosures relating to supplier
finance arrangements.

iv) Ind AS 1 - Presentation of Financial
Statements Classification of Liabilities as
current or non- current and non- current
liabilities with covenants.

The Company has reviewed the new
pronouncementsandbasedonitsevaluationhas
determined that it does not have any significant
impact in its Standalone financial statements.

u) New standards and amendments issued
but not effective

The MCA has issued certain amendments to
Indian Accounting Standards which are not yet
effective as at 31^st March, 2026. The Company has
not early adopted any standard, interpretation
or amendment that has been issued but is not
yet effective.

The other amendments to Ind-AS notified by these
rules are primarily in the nature of clarifications.

3. The Company has recognised an impairment of I 683.13 crores on its investment in material subsidiary
Butterfly Gandhimathi Appliances Limited (“Butterfly”). The impairment is based on a valuation
performed by an independent valuer and has been recognised in accordance with Ind AS 36 -
Impairment of Assets.

The recoverable amount is based on a value-in-use calculation using the discounted cash flow method.

The value-in-use calculation is made using exit multiple and pre-tax budgeted EBITDA projections of the
next five years which is considered by the Board as a reasonable period. Key assumptions for the value in
use computations are those regarding the discount rates, exit multiple, market demand, sales volume and
sales prices, cost to produce, margins etc. The projections are based on both past performance and the
expectations of future performance and assumptions therein. The Company estimates discount rates using
post-tax rates that reflect the current market rate adjusted for specific company risk. The weighted average
post-tax discount rates used for discounting the cash flows projections is 13.75% and average revenue growth
considered is 15.70%, which is aligned to the average growth rate for the industry.

Following the impairment loss recognised, the recoverable amount was equal to the carrying amount.
Accordingly, the valuation remains sensitive to changes in key assumptions.

Notes:

(a) The net carrying value of trade receivables is considered a reasonable approximation of fair value.

(b) Book debts are hypothecated with the bankers against Working capital demand loan.(Refer Note 12)

(c) Refer Note 37 for information about the Company's exposure to financial risks, and details of impairment
losses for trade receivables and fair values.

(d) No trade receivables are due from directors or other officers of the Company either severally or jointly
with any other person or firms or private companies in which any director is a partner, a director or

a member.

(e) Trade receivables are non-interest bearing and are normally settled on 30 to 60 day terms.

Securities premium

Securities premium was created on issue of shares at premium in accordance with Employee Stock Option
Plans (ESOP).

Employee stock option outstanding

The fair value of the equity-settled share based payment transactions with employees is recognised in
Statement of profit and loss with corresponding credit to Employee Stock Options Outstanding Account.

Retained earnings

Retained earnings are the profits that the Company has earned till date, net-off less any transfers to general
reserve, dividends or other distributions paid to shareholders.

12 Borrowings

The Company has categorised all borrowings at Amortised Cost in accordance with the requirements of Ind
AS 109.

(2) Nature of provisions:

(a) Provision for employee benefits represents liability on account of compensated absences and
gratuity as per statutory requirements.

(b) Product warranties: The Company gives warranties on certain products and services, undertaking
to repair/replace products, which fail to perform satisfactorily during the warranty period. Provision
made represents the amount of the expected cost of meeting such obligation on account of repair/
replacement. The timing of outflows is expected to be within a period of two to five years.

(c) Provision for statutory dues represents liability on account of non-collection of declaration forms
and other legal matters which are in appeal under the Acts/Rules.

(d) Provision for other litigation obligation claims represents liabilities that are expected to materialise
in respect of matters in appeal.

(v) Performance obligation

Sale of products: Performance obligation in respect of sale of goods is satisfied when control of the goods
is transferred to the customers, generally on delivery/dispatch of the goods as applicable and payment is
generally due as per the terms of contract with customers.

Sale of services: Performance obligation in respect of installation services is satisfied at a point in time when
the services are completed and control is transferred to the customer, generally upon successful installation.
Payment for such services is typically due as per the terms of the contract with customers.

(a) Pursuant to the notification issued by the Ministry of Labour and Employment, twenty-nine existing
labour regulations have been consolidated into a unified framework comprising four Labour Codes,
collectively referred to as the 'New Labour Codes' which became effective from 21^st November, 2025.

The Company has reassessed its employee benefit obligations in accordance with the New Labour Codes
and accordingly, an incremental liability of I 18.45 crores has been recognized as an Exceptional Item. As
the rules to the New Labour Codes are yet to be notified, the differential impact, if any, of those will be
accounted in the period in which they are notified.

(b) The Company recognised I 20.36 crores towards restructuring of Vadodara plant operations from a
lighting facility into a multi-business facility as an Exceptional Item.

(c) The Company recognised an impairment charge of I 716.04 crores on its investment in material subsidiary
Butterfly Gandhimathi Appliances Limited (‘Butterfly') and associated trademarks, which it acquired on
30^th March 2022. The impairment is based on a valuation performed by an independent valuer and has
been recognised in accordance with Ind AS 36 - Impairment of Assets.

Notes:

(a) Claims against the Company not acknowledged as debts represent various claims made by third parties
in respect of contractual obligations, commercial disputes and other matters. The management, based
on legal advice, does not consider these claims as valid liabilities and has therefore not recognized any
provision in the standalone financial statements.

(b) The Company has received demands from the income tax authorities pertaining to various assessment
years, which have been disputed and are currently pending before appellate authorities. Based on the
assessment of the facts of the case and advice received from tax consultants, the management believes
that it has adequate grounds to contest these demands. Accordingly, no provision has been recognized
and the same has been disclosed as a contingent liability.

(c) This represents indirect tax demands raised by the respective authorities relating to excise duty, customs
duty and service tax, primarily pertaining to periods prior to the implementation of GST. These matters
are under dispute and pending at various appellate forums. The Company has contested these demands
and based on legal advice, expects a favorable outcome. Accordingly, no provision has been recognized
and the same has been disclosed as a contingent liability.

(d) The Company has disputed various demands raised by tax authorities in respect of GST as well as pre-
GST levies such as entry tax, sales tax and VAT. These cases are pending before appropriate appellate
authorities. The management, based on its evaluation and legal advice, believes that the likelihood of an
outflow is not probable. Therefore, these liabilities have not been recognized in the books of account and
are disclosed as contingent liabilities.

(e) The Company had issued corporate and bank guarantees in earlier years on behalf of its subsidiary to
the consortium bankers in respect of working capital facility. The corporate guarantee provided to the
consortium bankers has been returned by the lenders and ceased to be in effect as of 31^st March, 2026.

(f) As per E-waste (Management) Rules, 2022, as amended, the Company has an obligation to complete the
Extended Producer Responsibility (EPR) targets. The Company has fulfilled its obligation for the current
and previous financial year . Further, Central Pollution Control Board of India has notified higher floor
prices for exchange of EPR certificates, which has been legally challenged before the Delhi High Court by
several producers in similar businesses. Since the matter is sub judice, the liability arising from difference
between the floor prices notified by the Board and the rates prevailing/charged in the market is disclosed
as a contingent liability in the standalone financial statements.

(g) It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) to (f)
above, pending resolution of the arbitration/appellate proceedings.

(h) The Company does not expect any reimbursements in respect of the above contingent liabilities.

(i) Capital commitments represent the estimated value of contracts entered by the Company for
acquisition of property, plant and equipment and other capital assets, which remain to be executed
as at the balance sheet date. These obligations are contractual in nature and are not recognized as
liabilities since the related assets have not yet been received or the services have not yet been rendered.
Accordingly, these are disclosed as commitments and indicate future cash outflows.

(c) The sensitivity analysis above have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the year and may not be representative of the actual change. It is
based on a change in the key assumption while holding all other assumptions constant. When calculating the
sensitivity to the assumption, the same method used to calculate the liability recognised in the balance sheet
has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not
change compared with the previous year.

(d) The Company makes contributions to the Gratuity Trust, which manages the investment. The Trust is a
funded defined benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested
employees at retirement, death while in employment or on termination of employment as per the Company's
Gratuity Scheme. Vesting occurs upon completion of five years of service.

(e) The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out
at 31^st March, 2026 and 31^st March, 2025. The present value of the defined benefit obligation and the related
current service cost and past service cost, were measured using the Projected Unit Credit Method.

(f) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet
date for the estimated term of the obligations.

(g) Expected rate of return on the plan assets is based on the average long-term rate of return expected on
investments of the Fund during the estimated term of the obligations.

(h) The salary escalation rate considered in the actuarial valuation is arrived after taking into consideration the
seniority, the promotion, inflation and other relevant factors.

(i) The average duration of the defined benefit plan obligation at the end of the reporting period is 7.61 years
(Previous year 7.16 years)

Compensated absences

In respect of compensated absences, accrual is made on the basis of a year-end actuarial valuation as at
balance sheet date. The actuarial valuation is done as per Projected unit credit method.

The leave obligation cover the Company's liability for earned leave. The amount of the provision of I 1.46 crore
(Previous year I 17.15 crore) is presented as non-current and I 19.71 (Previous year I 2.87 crore) is presented
as current. The Company has recognised I 4.95 (Previous year I 5.66 crore) for compensated absences in the
Statement of Profit and Loss.

32 Related Party Disclosures

i) List of related parties over which control exist:

Subsidiary companies (Refer note 3 for details of holding in subsidiary Company)

Pinnacles Lighting Project Private Limited
Nexustar Lighting Project Private Limited
Butterfly Gandhimathi Appliances Limited
Crompton (CSR) Foundation

ii) Post employment benefit plans with whom transactions were carried out during the year:

Crompton Greaves Consumer Electricals Limited Employees' Gratuity Trust
Crompton Greaves Consumer Electricals Limited Employees' Superannuation Fund

iii) Key Management Personnel:

Mr. D. Sundaram, Chairman and Non-Executive, Non-Independent Director (Non-Independent Director from
18^th September, 2025)

Mr. P. M. Murty, Independent Director (upto 24^th July, 2025)

Ms. Smita Anand, Independent Director
Mr. P.R. Ramesh, Independent Director
Ms. Hiroo Mirchandani, Independent Director
Mr. Anil Chaudhry, Independent Director
Mr. Sanjiv Kakkar, Independent Director

Mr. Promeet Ghosh, Managing Director and Chief Executive Officer

Mr. Shantanu Khosla, Vice Chairman and Executive Director (from 1^st May, 2023 to 30^th April, 2024); Non
executive Vice Chairman (from 1^st May, 2024 to 31^st December, 2025)

Mr. Kaleeswaran Arunachalam, Chief Financial Officer

Ms. Rashmi Khandelwal, Company Secretary & Compliance Officer (upto 23^rd April, 2026)

a) Liabilities for post retirement benefits being Gratuity and Leave encashment are provided on actuarial
basis for the Company as a whole. The amount pertaining to Key management personnel are not
included above.

b) The Company has granted shares under various Schemes to the eligible Key Management Personnel. The
amount mentioned is the fair value of the grant (credited)/charged to Statement of profit and loss.

Terms and conditions of transactions with related parties

All Related Party Transactions entered during the year were in ordinary course of the business and on arm's
length basis. Outstanding balances at the year-end with related parties are unsecured and interest free, and
will be settled/recovered in cash.

The Company has not made any allowance for bad or doubtful debts in respect of related party trade
receivables nor has any guarantee been given or received during the year ended 31^st March 2026 and 31^st
March 2025 relating to related party transactions.

33 Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the
Company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company
by the weighted average number of Equity shares outstanding during the year plus the weighted average
number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into
Equity shares.

The key assumptions used in value-in-use calculations are as follows:

a) Earnings (before interest and tax) margin: The margins have been estimated based on past experience
after considering incremental revenue and savings from the efficiencies and cost saving initiatives driven
by the Company.

b) Discount rate: Discount rate reflects the current market assessment of the risks specific to a cash
generating unit and is estimated based on the weighted average cost of capital.

c) Long-term growth rate: The growth rates used are in line with the long-term average growth rates of the
Company and are consistent with the internal/external sources of information.

The assumptions used are reviewed annually as part of management's budgeting and strategic planning
cycles. These estimates may differ from actual results. The values assigned to each of the key assumptions
reflect the Management's past experience as their assessment of future trends, and are consistent with
external/internal sources of information.

Based on the above assumptions and analysis, no impairment was identified for any of the cash generating
unit as at 31^st March 2026 and 31^st March, 2025 as the recoverable value of the cash generating unit exceeded the
carrying value.

The Company has also performed sensitivity analysis calculations on the projections used (revenue growth
and EBITDA margin) and discount rate applied. An analysis of the sensitivity of the computation to a change
in key parameters (operating margin, discount rates and average growth rate), based on reasonable
assumptions, did not identify any probable scenario in which the recoverable amount of the cash generating
units would decrease below its carrying amount.

35 Share-based Payments

Employee stock options - equity settled

(a) The Members of the Company have approved by way of postal ballots grant of Employee stock options under
various Schemes. The plan envisaged grant of shares to eligible employees at market price/pre-determined
value as determined by the Nomination and Remuneration Committee (NRC) of the Board of Directors from
time to time.

The management assessed that cash and cash equivalents, trade receivables, trade payables, other current
financial assets and other current financial liabilities approximate their carrying amounts largely due to the
short-term maturities of these instruments.

B. Fair value heirarchy

The fair value of financial instruments as referred to in note (A) above have been classified into three
categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to
unobservable inputs (Level 3 measurements).

The categories used are as follows:

• Level 1: Quoted prices for identical instruments in active market;

• Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and

• Level 3: Inputs which are not based on observable market data.

The RMC oversees how management monitors compliance with the Company's risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by
the Company. The committee is assisted in its oversight role by internal audit. Internal audit undertakes both
regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to
the audit committee.

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company's
receivables from customers, investment in mutual funds and cash and cash equivalents.The Company
makes provision on trade receivables based on Expected Credit loss (ECL) method based on
provision matrix.

The carrying value of financial assets represent the maximum credit risk. The maximum exposure to credit
risk was I 3,126.30 crores and I 3,197.74, as at 31^st March, 2026 and 31^st March, 2025 respectively, being the
total carrying value of trade receivables, investments and other financial assets.

Trade receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each
customer. Credit risk is managed through credit approvals, establishing credit limits and continuously
monitoring the creditworthiness of customers to which the Company grants credit terms in the normal
course of business. The Company has a detailed review mechanism of overdue trade receivables at
various levels in the organisation to ensure proper attention and focus on realisation.

D. Financial risk management

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

• Credit risk;

• Liquidity risk; and

• Market risk

Risk management framework

The Company's Board of Directors has overall responsibility for the establishment and oversight of the
Company's risk management framework. The Company has constituted a Risk Management Committee
(RMC) for identification, evaluation and mitigation of operations, strategic and external risks. RMC has the
overall responsibility for monitoring and recovering the Risk Management Plan and associated practices of
the Company.

The Company's risk management policies are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions and the
Company's activities. The Company, through its training and management standards and procedures, aims
to maintain a disciplined and constructive control environment in which all employees understand their roles
and obligations.

Expected credit loss assessment

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to
determine incurred and expected credit losses. Management believes that the unimpaired amounts that
are past due are still collectible in full, based on historical payment behaviour and extensive analysis of
customer credit risk

Cash and cash equivalents and bank deposits

The Company held cash and cash equivalents and bank deposits with banks and financial institutions.

The credit worthiness of such banks and financial institutions is evaluated by the management on an
on-going basis and is considered to be good. Investment of surplus funds are made in bank deposits and
other risk free securities.

Derivatives

The derivatives (forwards and options for foreign currency payments) are entered into with banks and
financial institution counterparties with good credit ratings.

Investment in mutual funds

The Company limits its exposure to credit risk by investing only with counterparties that have a good
credit rating. The Company does not expect any losses from non performance by these counter parties

Other than trade receivables, the Company has no other financial assets that are past due but
not impaired.

ii. Liquidity risk

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

The Company monitors cash flow requirements and aims at optimising its cash return on investments and
to maintain the level of its cash and bank balance and other highly marketable mutual fund investments
at an amount in excess of expected cash outflows on financial liabilities.

iii. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and
equity prices - will affect the Company's income or the value of its holdings of financial instruments.
Market risk is attributable to all market risk sensitive financial instruments including foreign currency
receivables and payables. The Company is exposed to market risk primarily related to foreign exchange
rate risk, interest rate risk and the market value of investments. Thus, Company's exposure to market risk is
a function of investing and revenue generating and operating activities in foreign currency. The objective
of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Market risk comprises three types of risks: currency risk, interest rate risk and other price risk.

c) Other price risk

The Company is mainly exposed to the other price risk due to its investment in mutual funds (AAA rated
and debt instruments). The price risk arises due to uncertainties about the future market values of these
investments. At 31^st March, 2026, the investments in mutual funds amounts to I 670.52 Crores (31^st March,
2025: I 455.66 Crores). These are exposed to price risk. The Company has laid policies and guidelines
which it adheres to in order to minimise price risk arising from investments in mutual funds. A 1% increase/
(decrease) in prices would increase/(decrease) the equity and profit or loss by the amounts shown below.

41 Capital Management

Equity share capital and other equity are considered for the purpose of Company's capital management. The
Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize
returns to shareholders. The capital structure of the Company is based on management's judgement of its
strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market
confidence. The management and the Board of Directors monitors the return on capital as well as the level
of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary
adjust, its capital structure.

The Board of Directors seeks to maintain a balance between the higher returns that might be possible with
higher levels of borrowings and the advantages and security afforded by a sound capital position.

The Company monitors capital using a ratio of ‘adjusted net debt' to ‘total equity'. For this purpose, adjusted
net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash
equivalents and other bank balances. Total equity comprises all components of equity.

The Company's adjusted net debt-to-equity ratio at 31^st March, 2026 was as follows:

42 There has been no delay in charges or satisfaction to be registered with ROC beyond the statutory period.

43 The Company does not have any transactions not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in tax assessments under the Income-tax Act, 1961.

44 The Company has not traded or invested in crypto currency or virtual currency during the current and
previous year.

45 Utilisation of Borrowed funds and share premium

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

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

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

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

46 The Company Secretary & Compliance Officer of the Company, resigned with effect from April 23, 2026.
Consequently, the said position remained vacant as at the date of the standalone financial statements.
Accordingly, signatures of the Company Secretary on the standalone financial statements have not been
affixed.

47 No significant subsequent events have been observed which may require an adjustments to the financial
statements.

48 Amount shown as I 0.00 represents amount below I 50,000 (Rupees Fifty Thousand).

49 Figures for the previous year have been regrouped wherever necessary.

No changes were made in the objectives, policies or processes for managing capital during the current and
previous year.

In order to achieve this overall objective, the Company's capital management, among other things, aims
to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that
define capital structure requirements. Breaches in meeting the financial covenants would permit the bank
to immediately call loans and borrowings. There have been no breaches in the financial covenants of any
interest-bearing loans and borrowing during the current and previous year.