Note 1: Material accounting policies:

This note provides a list of the material accounting policies
adopted in preparation of these financial statements. These
policies have been consistently applied to all the years presented
unless otherwise stated.

The Standalone financial statements are approved for issue by
the Company's Board of Directors on 5th May, 2026.

a) Basis of preparation:

i. Compliance with IND AS:

These financial statements comply in all material
aspects with Indian Accounting Standards (Ind AS)
notified under Section 133 of the Companies Act,
201 3 (the Act) read with rule 4 of the Companies
(Indian Accounting standards) Rules, 2015 as
amended from time to time and other generally
accepted accounting principles in India.

ii. Historical cost convention:

The financial statements have been prepared on a
historical cost basis, except for the following:

• certain financial instruments (including
derivative instruments) that are measured at fair
value (Refer Note 26);

• assets held for sale measured at lower of cost or
fair value less cost to sell;

• net liability for defined benefit plans that are
measured at fair value; and

• share-based payments liability

measured at fair value.

iii. Current versus non-current classification:

All assets and liabilities have been classified as current
or non-current as per the Company's normal operating
cycle and other criteria set out in the Schedule III to the

Companies Act, 2013. Based on the nature of products
and the time taken between acquisition of assets for
processing and their realization in cash and cash
equivalents, the Company has ascertained its operating
cycle as twelve months for the purpose of the classification
of assets and liabilities into current and non-current.

b) Segment Reporting:

Operating segments are reported in a manner consistent
with internal reporting provided to the Chief Operating
Decision Maker (CODM). The Managing Director & CEO
are designated as CODM.

c) Foreign currency transactions:

i. Functional and presentation currencies:

Items included in the financial statements of the
Company are measured using the currency of the
primary economic environment in which the entity
operates ('the functional currency'). The financial
statements are presented in Indian National Rupee
("INR") which is the functional and presentation
currency for Marico Limited.

ii. Transactions & Balances:

Foreign currency transactions are translated into the
functional currency at the exchange rates on the date
of transaction. Foreign exchange gains and losses
resulting from settlement of such transactions and from
translation of monetary assets and liabilities at the
year-end exchange rates are generally recognized in
the Statement of Profit and Loss. They are deferred in
equity if they relate to qualifying cash flow hedges.

Foreign exchange differences regarded as an
adjustment to borrowing costs are presented in the
Statement of Profit and Loss, within finance costs. All
other foreign exchange gains and losses are presented
in the Statement of Profit and Loss on a net basis.

Non-monetary foreign currency items are carried
at cost and accordingly the investments in shares of
foreign subsidiaries are expressed in Indian currency
at the rate of exchange prevailing at the time when the
original investments are made or fair values determined.

d) Revenue recognition:

Revenue from sale of goods is recognised when control of
the products being sold is transferred to our customer and
when there are no longer any unfulfilled obligations. The
Performance Obligations in our contracts are fulfilled at a
point in time i.e. at the time of dispatch, delivery or upon
formal customer acceptance depending on customer terms.

Revenue towards satisfaction of a performance obligation is
measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation.
The transaction price of goods sold, and services rendered
is net of variable consideration on account of various
discounts and schemes offered by the Company as part
of the contract. The customers have the right to return
goods only when authorised by the Company. An estimate
is made of goods that will be returned and a liability is
recognised for this amount using a best estimate based on
accumulated experience.

The Company recognizes revenue when the amount can
be reliably measured, it is probable that future economic
benefits will flow to the entity and specific criteria have
been met for each of the Company's activities as described
below. The Company bases its estimates on historical
results, taking into consideration the type of customer, the
type of transaction and the specifics of each arrangement.

i. Sale of goods:

Timing of recognition: Sale of goods is
recognized when control of the goods has transferred
to the customers, depending on individual terms. i.e.
at the time of dispatch, delivery or formal customer
acceptance depending on agreed terms.

Measurement of revenue: Accumulated
experience is used to estimate and provide for
discounts, rebates, incentives & subsidies. No
significant element of financing is deemed present
as the sales are made with credit terms, which is
consistent with market practice.

e) Income recognition

i. Interest income from debt instruments is recognised
using the effective interest rate method. The effective
interest rate is the rate that exactly discounts estimated
future cash receipts through the expected life of the
financial asset to the gross carrying amount of a
financial asset. When calculating the effective interest
rate, the Company estimates the expected cash flows
by considering all the contractual terms of the financial
instrument (for example, prepayment, extension, call
and similar options) The expected credit losses are
considered if the credit risk on that financial instrument
has increased significantly since initial recognition.

ii. Dividends are recognised in profit or loss only
when the right to receive payment is established, it
is probable that the economic benefits associated
with the dividend will flow to the Company, and the
amount of the dividend can be measured reliably.

iii. Revenue from royalty income is recognized
on accrual basis.

f) Government Grants:

Grants from the government are recognized at their fair
value where there is a reasonable assurance that the grant
will be received, and the Company will comply with all
attached conditions.

Government grants relating to income are deferred and
recognised in the profit or loss over the period necessary
to match them with the costs that they are intended to
compensate and reduced from corresponding cost.

Income from incentives such as government budgetary
support scheme, premium on sale of import licenses, duty
drawback etc. are recognized under other operating
income on accrual basis to the extent the ultimate realization
is reasonably certain.

Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities
as deferred income and are credited to profit or loss on
a straight-line basis over the expected lives of the related
assets and presented within other operating income.

g) Income Tax:

The income tax expense or credit for the period is the tax
payable on the current period's taxable income based on the
applicable income tax rate for each jurisdiction adjusted by
the changes in deferred tax assets and liabilities attributable
to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of
the tax laws enacted or substantively enacted at the end of
the reporting period. Management periodically evaluates
positions taken in tax returns with respect to situations in
which applicable tax regulation is subject to interpretation.
It establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the Balance
Sheet method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts
in the financial statements. Deferred income tax is determined
using tax rates (and laws) that have been enacted or
substantially enacted by the end of the reporting period and
are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to
utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of
Profit and Loss, except to the extent that it relates to items
recognised in other comprehensive income or directly
in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.

Minimum Alternative Tax (MAT) credit, which is equal to the
excess of MAT (calculated in accordance with provisions
of Section 115JB of the Income tax Act, 1961) over
normal income-tax is recognized as an item in deferred
tax asset by crediting the Statement of Profit and Loss only
when and to the extent there is convincing evidence that
the Company will be able to avail the said credit against
normal tax payable during the period of fifteen succeeding
assessment years.

h) Property, plant and equipment :

Property, plant and equipment is recognised when it is
probable that future economic benefits associated with
the item will flow to the Company and the cost of the item
can be measured reliably. Property, plant and equipment
is stated at original cost net of tax/duty credits availed,
if any, less accumulated depreciation and cumulative
impairment, if any

Freehold land is carried at historical cost. All other items of
property, plant and equipment are stated at historical cost, less
accumulated depreciation/amortisation and impairments, if
any. Historical cost includes taxes, duties, freight and other
incidental expenses related to acquisition and installation.
Indirect expenses during construction period, which are
required to bring the asset in the condition for its intended
use by the management and are directly attributable to
bringing the asset to its position, are also capitalized.

Subsequent costs are included in the asset's carrying
amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits
associated with the item will flow to the Company and the
cost of the item can be measured reliably. The carrying
amount of any component accounted for as a separate
asset is derecognized when replaced. All other repairs
& maintenance are charged to profit or loss during the
reporting period in which they are incurred.

Capital work-in-progress comprises cost of Property Plant
and Equipments that are not yet ready for their intended use
at the year end.

Depreciation and amortization

Depreciation is calculated using the straight-line method to
allocate the cost of Property, Plant and Equipment, net of
residual values, over their estimated useful lives.

As per technical evaluation of the Company, the useful life
considered for the following items is lower than the life
stipulated in Schedule II to the Companies Act, 2013:

Apart from the above, the useful lives of other class of assets
are in line with that prescribed in the Schedule II to the
Companies Act, 2013.

Extra shift depreciation is provided on "Plant" basis.

Assets individually costing H 25,000 or less are depreciated
fully in the year of acquisition.

Fixtures in leasehold premises are amortized over the
primary period of the lease or useful life of the fixtures
whichever is lower.

Depreciation on additions / deletions during the year is
provided from the month in which the asset is capitalized
up to the month in which the asset is disposed off.

The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period,
with the effect of any changes in estimate accounted for on
a prospective basis.

An asset's carrying amount is written down immediately
to its recoverable amount if the asset's carrying amount is
greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing
proceeds with carrying amount. These are included in profit
or loss within other income.

Transition to Ind AS

The cost of property, plant and equipment as at 1st April
2016, the Company's date of transition to Ind AS, was
determined with reference to carrying amount recognised
as per the previous GAAP (deemed cost) as at the date of
transition to Ind AS.

i) Intangible Assets:

i. Goodwill:

Goodwill is included in intangible assets. It is not
amortised but it is tested for impairment annually or
more frequently if events or changes in circumstances
indicate that it might be impaired, and is carried at cost
less accumulated impairment losses. Gains and losses
arising on the disposal of an entity are calculated after
netting of the carrying amount of Goodwill relating to
the entity sold, from the proceeds of disposal.

Goodwill is allocated to cash-generating units for the
purpose of impairment testing. The allocation is made
to those cash-generating units or groups of cash¬
generating units that are expected to benefit from the
business combination in which the goodwill arose.

ii. Intangible assets with finite useful life:

Intangible assets with finite useful life are stated at
cost of acquisition, less accumulated amortisation and
impairment loss, if any. Cost includes taxes, duties
and other incidental expenses related to acquisition
and other incidental expenses.

Amortisation is recognised in profit or loss on a
straight-line basis over the estimated useful lives of
respective intangible assets, but not exceeding the
useful lives given here under:

mentioned in para h & i above. Revenue expenditure
is charged off in the year in which it is incurred.

v. Transition to Ind AS:

The cost of intangible assets as at 1st April 2016,
the Company's date of transition to Ind AS, was
determined with reference to carrying amount
recognised as per the previous GAAP (deemed cost)
as at the date of transition to Ind AS.

j) Investment property:

Property land or a building—or part of a building—or
both that is held for long term rental yields or for capital
appreciation or both, rather than for:

(i) use in the production or supply of goods or services or
for administrative purposes; or

(ii) sale in the ordinary course of business; is recognized
as Investment Property in the books.

Investment property is measured initially at its cost, including
related transaction costs and where applicable borrowing
costs. Subsequent expenditure is capitalized to the assets
carrying amount only when it is probable that future economic
benefits associated with the expenditure will flow to the
Company and the cost of the item can be measured reliably.
All other repairs and maintenance costs are expensed when
incurred. When part of an investment property is replaced,
the carrying amount of the replaced part is derecognised.

Depreciation is provided on all Investment Property
on straight line basis, based on useful life of the assets
determined in accordance with para "h" above.

The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period,
with the effect of any changes in estimate accounted for on
a prospective basis.

k) Non-Current Asset held for Sale:

Non-current assets are classified as Non-Current asset held
for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing
use and a sale is considered highly probable. They are
measured at the lower of their carrying amount and fair
value less costs to sell, except for assets such as deferred
tax assets, assets arising from employee benefits, financial
assets and contractual rights under insurance contracts,
which are specifically exempt from this requirement.

An impairment loss is recognised for any initial or
subsequent write-down of the asset to fair value less costs to
sell. A gain is recognised for any subsequent increases in

fair value less costs to sell an asset, but not in excess of any
cumulative impairment loss previously recognised. A gain
or loss not previously recognised is recognised at the date
of sale of the asset.

Non-current assets are not depreciated or amortised while
they are classified as held for sale.

Non-current assets classified as held for sale are presented
separately from the other assets in the balance sheet.

l) Lease:

As a lessee

The Company's lease asset classes primarily consist of leases
for Land and Buildings and Plant & Equipment. The Company
assesses whether a contract is or contains a lease, at inception
of a contract. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset for
a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of an
identified asset, the Company assesses whether:

i) the contract involves the use of an identified asset

ii) the Company has substantially all of the economic
benefits from use of the asset through the period
of the lease and

iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company
recognises a right-of-use asset ("ROU") and a corresponding
lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of twelve months or less
(short-term leases) and leases of low value assets. For these
short-term and leases of low value assets, the Company
recognises the lease payments as an operating expense on
a straight-line basis over the term of the lease. The right-of-
use assets are initially recognised at cost, which comprises
the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the
lease plus any initial direct costs less any lease incentives.
They are subsequently measured at cost less accumulated
depreciation and impairment losses, if any. Right-of-use
assets are depreciated from the commencement date on a
straight-line basis over the shorter of the lease term and
useful life of the underlying asset.

The lease liability is initially measured at the present value
of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if
not readily determinable, using the incremental borrowing
rates. The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest on the
lease liability and reducing the carrying amount to reflect
the lease payments made.

A lease liability is remeasured upon the occurrence of certain
events such as a change in the lease term or a change in
an index or rate used to determine lease payments. The
remeasurement normally also adjusts the leased assets.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments have
been classified as financing cash flows.

As a lessor

Lease income from operating leases where the Company is
a lessor is recognised in income on a straight-line basis over
the lease term unless the receipts are structured to increase
in line with expected general inflation to compensate for
the expected inflationary cost increases. The respective
leased assets are included in the balance sheet based
on their nature.

m) Investment & financial assets:

i. Classification:

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.

Classification of debt assets will be driven by the
Company's business model for managing the financial
assets and the contractual cash flow characteristics of
the financial assets.

For assets measured at fair value, gains and losses
will either be recorded in profit or loss or other
comprehensive income. For investments in debt
instruments, this will depend on the business model in
which the investment is held. For investments in equity
instruments, this will depend on whether the Company
has made an irrevocable election at the time of initial
recognition to account for the equity investment at fair
value through other comprehensive income.

ii. Measurement:

At initial recognition, the Company measures a
financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss,
transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of
financial assets carried at fair value through profit or

loss are expensed in profit or loss. However, trade
receivables are measured at transaction price.

Debt instruments

Subsequent measurement of debt instruments depends
on the Company's business model for managing the
asset and the cash flow characteristics of the asset.

• Amortised Cost: Assets that are held for
collection of contractual cash flows where
those cash flows represent solely payments of
principal and interest are measured at amortised
cost. A gain or loss on a debt investment that is
subsequently measured at amortised cost and is
not part of a hedging relationship is recognised
in profit or loss when the asset is derecognised
or impaired. Interest income from these financial
assets is included in finance income.

• Fair value through other comprehensive
income (FVOCI): Assets that are held for
collection of contractual cashflows & for selling
the financial assets, where the assets cash flow
represent solely payments of principal and
interest, are measured at fair value through other
comprehensive income (FVOCI). Movements in the
carrying amount are taken through OCI, except
for the recognition of impairment gains or losses,
interest revenue and foreign exchange gains and
losses which are recognised in the Statement of Profit
and Loss. When the financial asset is derecognised,
the cumulative gain or loss previously recognised in
OCI is reclassified from equity to profit or loss and
recognised in other gains/ (losses). Interest income
from these financial assets is included in other income.

• Fair value through profit or loss: Assets
that do not meet the criteria for amortised cost or
FVOCI are measured at fair value through profit
or loss. A gain or loss on a debt investment that is
subsequently measured at fair value through profit
or loss and is not part of a hedging relationship is
recognised in profit or loss and presented net in
the Statement of Profit and Loss within other gains/
(losses) in the period in which it arises. Interest
income from these financial assets is included
in other income.

Equity instruments

The Company subsequently measures all equity
investments at fair value. Where the Company's
management has elected to present fair value gains and
losses on equity investments in other comprehensive
income, there is no subsequent reclassification of fair

value gains and losses to profit or loss. Dividends from
such investments are recognised in profit or loss as
other income when the Company's right to receive the
dividend is established.

iii. Impairment of financial assets:

The Company assesses on a forward-looking basis the
Expected Credit Losses (ECL) associated with its financial
assets that are measured at amortized cost. If the credit
risk of such assets has not increased significantly, an
amount equal to 12-month ECL is measured. However,
if credit risk has increased significantly, an amount
equal to lifetime ECL is measured.

iv. Derecognition of financial assets:

A financial asset is derecognised only when

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

• the Company retains the contractual rights to
receive the cash flows of the financial asset, but
assumes a contractual obligation to pay the cash
flows so received to one or more recipients

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

Where the entity has neither transferred a financial
asset nor retained 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.

n) Derivatives and hedging activities

Derivatives are initially recognised at fair value on the date
a derivative contract is entered into and are subsequently
remeasured to their fair value at the end of each reporting
period. The accounting for subsequent changes in fair value
depends on whether the derivative is designated as a hedging
instrument, and if so, the nature of the item being hedged.

The Company designates certain derivatives as either:

• hedges of the fair value of recognised assets or
liabilities or a firm commitment (fair value hedges)

• hedges of a particular risk associated with the cash
flows of recognised assets and liabilities and highly
probable forecast transactions (cash flow hedges).

The Company documents at the inception of the hedging
transaction the relationship between hedging instruments
and hedged items, as well as its risk management objective
and strategy for undertaking various hedge transactions.
The Company also documents its assessment, both at
hedge inception and on an ongoing basis, of whether the
derivatives that are used in hedging transactions have been
and will continue to be highly effective in offsetting changes
in fair values or cash flows of hedged items.

The fair values of various derivative financial instruments used
for hedging purposes are disclosed in Note 27. Movements in
the hedging reserve in shareholders' equity are shown in Note
12(c). The full fair value of a hedging derivative is classified
as a non-current asset or liability when the remaining maturity
of the hedged item is more than 12 months; it is classified as
a current asset or liability when the remaining maturity of the
hedged item is less than 12 months. Trading derivatives are
classified as a current asset or liability.

Cash flow hedge reserve

The effective part of the changes in fair value of hedge
instruments is recognized in other comprehensive income,
while any ineffective part is recognized immediately in the
Statement of Profit and Loss.

o) Inventories:

Raw materials, packing materials, stores and spares are
valued at lower of cost and net realizable value.

Work-in-progress, finished goods and stock-in-trade (traded
goods) are valued at lower of cost and net realizable value.

By-products and unserviceable / damaged finished goods
are valued at estimated net realizable value.

Cost of raw materials and traded goods comprises cost
of purchases. Cost of work-in progress and finished
goods comprises direct materials, direct labour and an
appropriate proportion of variable and fixed overhead
expenditure, the latter being allocated on the basis of
normal operating capacity. Cost of inventories also includes
all other costs incurred in bringing the inventories to their
present location and condition. Cost is assigned on the basis
of weighted average method. Costs of purchased inventory
are determined after deducting rebates and discounts. Net
realisable value is the estimated selling price in the ordinary
course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.

p) Trade Receivables:

Trade receivables are recognised initially at transaction
price and subsequently measured at cost less provision
made for doubtful trade receivables. The Company
follows a simplified approach wherein an amount equal to
lifetime ECL is measured and recognised as loss allowance
depending on the customer ageing, customer category,
specific credit circumstances and the historical experience
of the Company.

q) Trade and other payables:

These amounts represent liabilities for goods and services
provided to the Company prior to the end of financial year
which are unpaid. Trade and other payables are presented
as current liabilities unless payment is not due within 12
months after the reporting period.

r) Borrowings:

Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. 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. In this case, the fee is
deferred until the draw down occurs. To the extent there is
no evidence that it is probable that some or all of the facility
will be drawn down, the fee is capitalised as a prepayment
for liquidity services and amortised over the period of the
facility to which it relates.

Borrowings are removed from the balance sheet when the
obligation specified in the contract is discharged, cancelled
or expired. The difference between the carrying amount of
a financial liability that has been extinguished or transferred
to another party and the consideration paid, including
any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss.

s) Borrowing Cost

General and specific borrowing costs that are directly
attributable to the acquisition or construction of a qualifying
asset are capitalised during the period of time that is required
to complete and prepare the asset for its intended use or sale.
Qualifying assets are assets that necessarily take a substantial
period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for
capitalisation.

Other borrowing costs are expensed in the period in which
they are incurred.

t) Employee Benefits:

i. Short-term obligations:

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the period
in which the employees render the related service are
recognised in respect of employees' services upto the
end of the reporting and are measured at the amounts
expected to be paid when the liabilities are settled.
The liabilities are presented as current employee
benefit obligations in the balance sheet.

ii. Defined contribution plan:

Provident fund:

Provident fund contributions are made to a trust
administered by the Company. The Company's
liability is actuarially determined (using the Projected
Unit Credit method) at the end of the year and any
shortfall in the fund balance maintained by the Trust
set up by the Company is additionally provided for.
Actuarial losses and gains are recognized in other
comprehensive income and shall not be reclassified to
the Statement of Profit and Loss in a subsequent period.

iii. Defined benefit plan:

A defined benefit plan is a post-employment benefit
plan other than a defined contribution plan. The
Company's net obligation in respect of defined
benefit plans is calculated separately for each plan by
estimating the amount of future benefit that employees
have earned in the current and prior periods,
discounting that amount and deducting the fair value
of any plan assets.

a) Gratuity:

Liabilities with regard to the gratuity benefits
payable in future are determined by actuarial
valuation at each Balance Sheet date using the
Projected Unit Credit method and contributed
to Employees Gratuity Fund. Actuarial
gains and losses arising from changes in
actuarial assumptions are recognized in
other comprehensive income and shall not be
reclassified to the Statement of Profit and Loss in
a subsequent period.

b) Leave encashment / Compensated
absences:

The Company provides for the encashment of leave
with pay subject to certain rules. The employees
are entitled to accumulate leave subject to certain

limits, for future encashment / availment. The
liability is provided based on the number of days
of unutilized leave at each Balance Sheet date on
the basis of an independent actuarial valuation
and classified as long term and short term.
Actuarial gains and losses arising from changes
in actuarial assumptions are recognised in the
Statement of Profit and Loss.

iv. Share based payments:

• Employee Stock Option Plan:

The fair value of options granted under the Company's
employee stock option scheme (excess of the fair value
over the exercise price of the option at the date of
grant) is recognised as an employee benefit expense
with a corresponding increase in equity. The total
amount to be expensed is determined by reference to
the fair value of the options granted.

- including any market performance conditions
(e.g. the entity's share price)

- excluding the impact of any service and non¬
market performance vesting conditions (e.g.
profitability, sales growth targets and remaining
an employee of the entity over a specified
time period), and

- including the impact of any non-vesting
conditions (e.g. the requirement for employees
to save or holding shares for a specific
period of time).

The total expense is recognised over the vesting
period, which is the period over which all of the
specified vesting conditions are to be satisfied.

• Employee Stock Appreciation Rights
Scheme:

Liability for the Company's Employee Stock
Appreciation Rights (STAR) granted pursuant to the
Company's Employee Stock Appreciation Rights Plan,
2011, shall be measured, initially and at the end of
each reporting period until settled, at the fair value of
the STARs, by applying an option pricing model, be
and is recognized as employee benefit expense over
the relevant service period. The liability is presented as
an employee benefit obligation in the balance sheet.

v. Treasury Shares:

The Company has created a "Welfare of Mariconians
Trust," (WEOMA) for providing share-based payment

to its employees under the STAR scheme. To fund the
STAR schemes, the Trust, upon intimation from the
Company, carries out secondary market acquisition
of the equity shares, of the Company. They are
equivalent to STARs granted to its employees. The
Company provides loan to the Trust for enabling such
secondary acquisition. As and when the STARs vest
in eligible employees, upon intimation of such details
by the Company, the Trust sells the equivalent shares
and hands over the net proceeds to the Company in
accordance with the Trust Rules framed. The company
treats, WEOMA as its extension and shares held by
WEOMA are treated as treasury shares.

Own equity instruments that are re-acquired (treasury
shares) are recognised at cost of purchase and
deducted from equity. No gain or loss is recognised in
profit or loss on the purchase or sale of the Company's
own equity instruments. Any difference between the
carrying amount and the consideration is recognised
in WEOMA reserve.