2. Material accounting policies

Basis of preparation of financial statements

These standalone financial statements have been prepared in accordance with Indian Accounting Standards (lnd AS)
as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013,
(the 'Act') and presentation requirements of Division 11 of Schedule III to the Companies Act, 2013, (lnd AS compliant
Schedule III).

2A. Functional and presentation currency

These standalone financial statements are presented in Indian Rupees (INR), which is also the Company's functional
currency. All amounts have been rounded-off to the nearest millions, unless otherwise indicated.

2B. Basis of measurement

The standalone financial statements have been prepared on the historical cost basis except for the following items:

Items Measurement basis

Investments in equity shares other than subsidiary, associate and joint venture Fair value
Investments in mutual funds Fair value

Liabilities for share-based payment arrangements Fair Value

Other financial assets and liabilities Amortised cost

The Company has prepared the standalone financial statements on the basis that it will continue to operate as a going
concern and climate related matters have been duly considered in going concern assessment.

2C. Use of estimates and judgements

In preparing these standalone financial statements, management has made judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised prospectively.

A. Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognized in the financial statements:

Determining the lease term of the contract with renewal and termination option - Company as a lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by
an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate
the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies
judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the
lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or
termination. After the commencement date, the Company reassesses the lease term if there is a significant event or
change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew
or to terminate (e.g., construction of significant leasehold improvements or significant customisation to the leased
asset).

Leases - Estimating the incremental borrowing rate:

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing
rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow
over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right of use
asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay’, which
requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and
conditions of the lease.

Operating lease commitments - Company as a lessor

The Company has entered into commercial property leases on its investment property portfolio. The Company has
determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not
constituting a major part of the economic life of the commercial property and the fair value of the asset, that it retains
all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases.

B. Estimates and assumptions

The key assumptions 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 assumptions and estimates on parameters available when
the financial statements were prepared. Existing circumstances and assumptions 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 assumptions when they occur. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognized prospectively.

i) Provision for employee benefits

The measurement of obligations and assets related to defined benefit / other long term benefits plans makes it necessary
to use several statistical and other factors that attempt to anticipate future events. These factors include assumptions
about the discount rate, the rate of future compensation increases, withdrawal, mortality rates etc. The management has
used the past trends and future expectations in determining the assumptions which are used in measurements of
obligations.

ii) Recognition of deferred tax assets

Deferred tax assets are recognised 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 an evidence that future taxable profit may not be available.
Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset only to the extent that it
has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be
available against which such deferred tax asset can be realised.

iii) Measurement of expected credit loss on trade receivables, loan and other financial assets

The loss allowance for trade receivables, loan and other financial assets disclosed are based on assumptions about risk
of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs
to the impairment calculation, based on the Company’s history, existing market conditions as well as forward looking
estimates at the end of each reporting period. Estimates and judgements are continually evaluated. They are based on
historical experience and other factors, including expectations of future events that may have a financial impact on the
Company and that are believed to be reasonable under the circumstances.

iv) Provision for litigation

The management determines the estimated probability of outcome of any litigation based on its assessment supported
by technical advice on the litigation matters, wherever required.

v) Provision for warranties

The Company offers one year warranty on Eyeglass and Sunglass. Warranty costs on sale of goods are provided on the
basis of management’s estimate of the expenditure to be incurred during the unexpired period. Provision is made for
the estimated liability in respect of warranty costs in the year of recognition of revenue and is included in the Standalone
Statement of Profit and Loss. The estimates used for accounting for warranty costs are reviewed periodically and
revisions are made as and when required.

vi) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Standalone Balance Sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs
to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

vii) Impairment of non-financial assets

The carrying amounts of the Company’s non-financial assets, other than deferred tax assets, are reviewed at the end of
each reporting period to determine whether there is any indication of impairment. If any such indication exists, then
the asset’s recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit (‘CGU’) is the greater of its value in use and its fair value
less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into
the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash
inflows of other assets or groups of assets (‘CGU’).

Market related information and estimates are used to determine the recoverable amount. Key assumptions on which
management has based its determination of recoverable amount include estimated long term growth rates, weighted
average cost of capital and estimated operating margins. Cash flow projections take into account past experience and
represent management’s best estimate about future developments.

2D. Measurement of fair values

A number of the Company’s accounting policies and disclosures require measurement of fair values, for both financial
and non-financial assets and liabilities.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows.

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2: inputs other than quoted prices included in Level 1 That are observable for the asset or liability, either chiectly
(i.e. as prices) or indirectly (i.e. derived from prices

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservalaleioputs

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If
the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy,
then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest
level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during
which the change has occurred.

2E. Current versus non-current classification

The Company presents assets and liabilities in the Standalone Balance Sheet based on current / non-current
classification. The Company has presented non-current assets and current assets before equity, non-current liabilities
and current liabilities in accordance with Schedule III, Division II of Companies Act, 2013 notified by the Ministry of
Corporate Affairs.

An asset is classified as current when it is:

a) Expected to be realised or intended to be sold or consumed in normal operating cycle,

b) Held primarily for the purpose of trading,

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

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

All other assets are classified as non-current.

A liability is classified as current when:

a) It is expected to be settled in normal operating cycle,

b) It is held primarily for the purpose of trading,

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

d) There is no unconditional right to defer the settlement of the liability' for at least twelve months after the reporting
period.

All other liabilities are classified as non-current.

All assets and liabilities have been classified as current or non- current as per the Company’s operating cycle and other
criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the
acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its
operating cycle as less than 12 months for the purpose of current and non- current classification of assets and liabilities.

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

2.1 Property, plant and equipment

i. Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less
accumulated depreciation and accumulated impairment losses, if any.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-
refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the
item to its working condition for its intended use, amount of government grant and estimated costs of dismantling and
removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for
as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss.

ii. Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the
expenditure will flow to the Company and cost can be measured reliably.

iii. Depreciation

Depreciation is provided on a pro-rata basis under the straight-line method. The estimated useful lives of items of
property, plant and equipment for the current and comparative periods are as follows:

# for these class of assets, based on internal technical evaluation, the management believes useful lives as given above
best represent the period over which company expects to use these assets.

* Assets working in double shift and triple shift any time during the year, the depreciated have been increase by 50%
times and 100%, respectively.

Leasehold improvements are depreciated over the useful life oi individual assets or period of lease, whichever is lower.

Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if
appropriate. Based on technical evaluation and consequent advice, the management believes that its estimates of useful
lives as given above best represent the period over which management expects to use these assets.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (up to) the dale on which asset is ready
for use (disposed of).

2.2 Capital work-in-progress

The cost of property, plant and equipment not ready for their intended use is recorded as capital work-in-progress before
such date. Cost of construction that relate directly to specific property, plant and equipment and that are attributable to
construction activity in general and can be allocated to specific property, plant and equipment are included in capital
work-in-progress.

2.3 Intangible assets

i. Recognition and initial measurement

Intangible assets represent computer software and trademarks. Intangible assets are stated at acquisition cost less
accumulated amortization and impairment loss, if any. The cost of intangible asset comprises its purchase price,
including any import duties and non-refundable taxes or levies and any directly attributable expenditure on making the
asset ready for its intended use. Intangible assets are amortised in Standalone Statement of Profit and Loss on a straight
line basis in accordance with the estimated useful lives of respective assets. The management's estimates of the rate of
amortisation of intangible assets are as follows:

Asset category Life (in years)

Software 5 years

Trademarks and patents 10 years

ii. Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific
asset to which it relates and cost can be measured reliably. All other expenditure is recognised in profit or loss as
incurred.

iii. Amortisation

Amortisation expense is charged on a pro-rata basis for assets purchased during the year. Amortisation method, useful
lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

2.4 Inventories

Inventories which comprise of finished goods, traded goods, raw material, consumables, tools and stores and spares
are carried at the lower of cost and net realisable value.

Cost of inventories comprises all costs of purchase and other expenditure incurred in acquiring the inventories,
production or conversion costs and other costs incurred in bringing them to their present location and condition.

The methods of determination of cost of various categories of inventories are as follows:

Net realisable value is the estimated selling price in the ordinary' course of business, less estimated costs of completion
and estimated costs necessary to make the sale.

Raw materials and other supplies held for use in the production of finished products are not written down below cost
except in cases where material prices have declined and it is estimated that the cost of the finished products will exceed
their net realisable value.

The comparison of cost and net realisable value is made on item by item basis.

2.5 Investment in Subsidiaries, Joint Venture and Associate

The Company has measured for its investment in subsidiaries, joint venture and associate at cost in its financial
statements in accordance with Ind AS 27, Separate Financial Statements. Profit/loss on sale of investments is recognized
on the date of sale and is computed with reference to the original cost of the investment sold.

2.6 Financial instruments

(i) Recognition and initial measurement

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. A financial asset or financial liability is initially measured at fair value plus, for an item
not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or
issue.

Trade receivables are initially recognised at transaction value. All other financial assets and financial liabilities are
initially recognised when the Company becomes a party to the contractual provisions of the instrument.

(ii) Classification and subsequent measurement

Financial assets

The Company classifies its financial assets in the following measurement categories:

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

those measured at amortised cost.

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company
changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at
FVTPL:

the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.
On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements
to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting
mismatch that would otherwise arise.

Financial assets: Business mode! assessment

The Company makes an assessment of the objective of the business model in which a financial asset is held at a portfolio
level because this best reflects the way the business is managed and information is provided to management. The
information considered includes:

- the stated policies and objectives for the portfolio and the operation of those policies in practice. These include
whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest
rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash
outflows or realising cash flows through the sale of the assets;

- how the performance of the portfolio is evaluated and reported to the Company’s management;

- the risks that affect the performance ofthe business model (and the financial assets held within that business model)
and how those risks are managed;

- how managers of the business are compensated - e.g. whether compensation is based on the fair value of the assets
managed or the contractual cash flows collected; and

- the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and

expectations about future sales activity. ___

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales

for this purpose, consistent with the Company’s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are
measured at FVTPL.

Financial assets: Assessment whether contractual cashflows are solely payments of principal and interest

For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition.
‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal
amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and
administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers
the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term
that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making
this assessment, the Company considers:

- contingent events that would change the amount or timing of cash flows;

- terms that may adjust the contractual coupon rate, including variable interest rate features;

- prepayment and extension features; and

terms that limit the Company’s claim to cash flows from specified assets (e.g. non- recourse features).

Financial assets: Subsequent measurement and gains and losses
Financial assets at FVTPL

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income,
are recognised in profit or loss.

Financial assets at amortised cost

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is
reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in
profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

Financial liabilities: Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at
FVTPL if it is classified as held- for- trading, or it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are
recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective
interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or
loss on derecognition is also recognised in profit or loss. Fees paid on the establishment of loan facilities are recognised
as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.

(Hi) Derecognition

A financial asset is derecognised only when:

- the Company has transferred the rights to receive cash flows from the financial asset or

- retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation
to pay the cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks
and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised.

Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the
financial asset is not derecognised.

Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership
of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset.
Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of
continuing involvement in the financial asset.

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified
terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair
value. The difference between the carrying amount of the financial liability extinguished and the new financial liability
with modified terms is recognised in profit or loss.

(h) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the Standalone Balance Sheet when,
and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to
settle them on a net basis or to realise the asset and settle the liability simultaneously.

(v) Impairment of financial assets

The Company recognises loss allowances for expected credit losses on financial assets measured at amortised cost. At
each reporting date, the Company assesses whether financial assets carried at amortised cost are credit- impaired. A
financial asset is ‘credit- impaired’ when one or more events that have a detrimental impact on the estimated future
cash flows of the financial asset have occurred.

Evidence that a financial asset is credit- impaired includes the following observable data:
significant financial difficulty of the borrower or issuer; or
a breach of contract such as a default or being past due.

The Company measures loss allowances at an amount equal to lifetime expected credit losses, except for the following,
which are measured as 12 month expected credit losses:

bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial
instrument) has not increased significantly since initial recognition.

Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses.

Lifetime expected credit losses are the expected credit losses that result from all possible default events over the
expected life of a financial instrument. 12-month expected credit losses are the portion of expected credit losses that
result from default events that are possible within 12 months after the reporting date (or a shorter period if the expected
life of the instrument is less than 12 months). In all cases, the maximum period considered when estimating expected
credit losses is the maximum contractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and
when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant
and available without undue cost or effort. This includes both quantitative and qualitative information and analysis,
based on the Company’s historical experience and informed credit assessment and including forward- looking
information.

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present
value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the
contract and the cash flows that the Company expects to receive).

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivable. Under
the simplified approach, the Company does not track changes in credit risk for individual customers. Rather, it
recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from initial recognition.

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables.
The provision matrix is based on its historically observed default rates and delays in realisations over the expected life
of the trade receivable and is adjusted for forward looking estimates. At every Standalone Balance Sheet date, the
historical observed default rates are updated and changes in the forward-looking estimates are analysed.

Presentation of allowance for expected credit losses in the Standalone Balance Sheet

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the
assets.

Write-off

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 and the amount of the loss is recognised in the Standalone Statement of Profit and Loss
within other expenses. This is generally the case when the Company determines that the debtor does not have assets or
sources of income that could generate sufficient cash flows to repay the amounts subject to the write- off. However,
financial assets that are written off could still be subject to enforcement activities in order to comply with the
Company's procedures for recovery' of amounts due.

2.7 Impairment of assets

Assessment is done at each Standalone Balance Sheet date as to whether there is any indication that an asset (PPE and
intangible) may be impaired. For the purpose of assessing impairment, the smallest identifiable group of assets that
generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups
of assets, is considered as a cash generating unit. It any' such indication exists, an estimate of the recoverable amount
of the asset/cash generating unit is made. Assets whose carrying value exceeds their recoverable amount are written
down to the recoverable amount. Recoverable amount is higher of an asset’s or cash generating unit's fair value less
cost of disposal and its value in use. Value in use is the present value of estimated future cash flows expected to arise
from the continuing use of an asset and from its disposal at the end of its useful life.

Assessment is also done at each Standalone Balance Sheet date as to whether there is any indication that an impairment
loss recognised for an asset in prior accounting periods may no longer exist or may have decreased.

2.8 Cash and cash equivalents

Cash and cash equivalents in the Standalone Balance Sheet comprise cash at banks and on hand, demand deposits with
banks with an original maturity of three months or less and short-term highly liquid investments that are readily
convertible into known amount of cash and are subject to an insignificant risk of change in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short term deposits, as
defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash
management.