(k) Provisions, Contingent liabilities and
Contingent assets

(i) Provisions

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made at the
reporting date. These estimates are reviewed
at each reporting date and adjusted to reflect
the current best estimates. The expense relating
to a provision is presented in the statement of
profit and loss.

(ii) Contingent liabilities

A contingent liability is recognised for:

• Possible obligation which will be confirmed
only by future events not wholly within the
control of the Company.

• Present obligation arising from past events
where it is not probable that an outflow
of resources will be required to settle the
obligation or a reliable estimate of the
amount of obligation cannot be made.

(iii) Contingent assets

Contingent assets are not recognised in the
standalone financial statements. Contingent
assets are disclosed in the standalone financial
statements to the extent it is probable that
economic benefits will flow to the Company
from such assets.

(l) Leases: Right-of-use asset and Lease liabilities

The Company's lease asset classes primarily consist of
leases for land and buildings- warehouse, experience
centres, office premises and vehicles. The Company
assesses whether a contract 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 low value leases. For these short-term and
low value leases, the Company recognises the lease
rentals as an operating expense in the statement of
profit and loss account.

(i) Right-of-use assets

At the commencement date, the right of use
assets is measured at cost. The cost includes
an amount equal to the lease liabilities plus
adjusted for the amount of prepaid or accrued
lease payments. After the commencement date,
the right of use assets is measured in accordance
with the accounting policy for property, plant and
equipment i.e. right-of-use assets are measured
at cost, less any accumulated depreciation
and impairment losses, and adjusted for any
remeasurement of lease liabilities. Right-of-use
assets are depreciated on a straight-line basis
over the period of the lease term.

Right-of-use assets are measured at cost
comprising the following:

• the amount of the initial measurement of
lease liability;

• any lease payments made at or before
the commencement date less any lease
incentives received;

• any initial direct costs, and

• restoration costs.

(ii) Lease Liabilities

The lease liability is initially measured at
amortised cost 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 in the country
of domicile of these leases. Lease liabilities are

remeasured with a corresponding adjustment
to the related right of use asset if the Company
changes its assessment if whether it will
exercise an extension or a termination option.

Lease liability and ROU assets have been
separately presented in the Balance Sheet and
lease payments have been classified as financing
cash flows. The Company has used a single
discount rate to a portfolio of leases with similar
characteristics.

The lease payments are discounted using the
interest rate implicit in the lease. If that rate
cannot be readily determined, which is generally
the case for leases in the Company, the lessee's
incremental borrowing rate is used.

(iii) Lease term

At the commencement date, the Company
determines the lease term which represents
non-cancellable period of initial lease for which
the asset is expected to be used, together with
the periods covered by an option to extend or
terminate the lease, if the Company is reasonably
certain at the commencement date to exercise
the extension or termination option.

(iv) Short term leases and leases of low-value
assets

The Company applies the short-term lease
recognition exemption to its short-term leases
(i.e., those leases that have a lease term of 12
months or less from the commencement date
and do not contain a purchase option). It also
applies the lease of low-value assets exemption
to leases that are considered to be low value.
Lease payments on short-term leases and leases
of low-value assets are recognised as expense on
a straight-line basis over the lease term or another
systematic basis which is more representative of
the pattern of use of underlying asset.

(v) Others

The following is the summary of practical
expedients elected on initial application:

(i) Applied a single discount rate to a portfolio
of leases of similar assets in similar economic
environment with a similar end date.

(ii) Applied the exemption not to recognise
right-of-use assets and liabilities for leases
with less than 12 months of lease term
on the date of initial application and
low value asset.

Right-of-use assets are generally depreciated
over the shorter of the asset's useful life and the
lease term on a straight-line basis.

Payments associated with short-term leases of
property, plant and office equipment and all
leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss.
Short-term leases are leases with a lease term of
12 months or less.

(m) Foreign Currencies

The Company's Financial Statements are presented in
INR which is also the Company's functional currency.
Foreign currency transaction are recorded on initial
recognition in the functional currency, using the
exchange rate prevailing at the date of transaction.
Monetary assets and liabilities outstanding at the year-
end are translated at the rate of exchange prevailing
at the year-end and the gain or loss, is recognised in
the Standalone statement of profit and loss.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial
transactions. Non-monetary items measured at fair
value in a foreign currency are translated using the
exchange rates at the date when the fair value is
determined. The gain or loss arising on translation of
non-monetary items measured at fair value is treated
in line with the recognition of the gain or loss on
the change in fair value of the item (i.e., translation
differences on items whose fair value gain or loss is
recognised in OCI or profit or loss are also recognised
in OCI or profit or loss, respectively).

(n) Borrowing costs

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

(o) Retirement and other employee benefits

(i) Defined contribution plans

Contributions to defined contribution schemes
such as employees' state insurance, labour
welfare fund, superannuation scheme, employee

pension scheme etc. are charged as an expense
based on the amount of contribution required
to be made as and when services are rendered
by the employees. Company's provident fund
contribution, in respect of certain employees,
is made to a Government administered fund
and charged as an expense to the standalone
statement of profit and loss. The above benefits
are classified as Defined Contribution Schemes as
the Company has no further defined obligations
beyond the monthly contributions.

(ii) Defined benefit plan
Gratuity

Gratuity is a post-employment benefit and
is in the nature of a defined benefit plan.
The liability recognised in the balance sheet
in respect of gratuity is the present value of
the defined benefit obligation at the balance
sheet date less the fair value of plan assets,
together with adjustments for unrecognised
actuarial gains or losses and past service costs.
The defined benefit obligation is determined
by actuarial valuation as on the balance sheet
date, using the projected unit credit method.
Remeasurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return
on plan assets (excluding amounts included in
net interest on the net defined benefit liability),
are recognised immediately in the balance sheet
with a corresponding debit or credit to retained
earnings through OCI in the period in which
they occur. Remeasurements are not reclassified
to profit or loss in subsequent periods.

Past service costs are recognised in profit or loss
on the earlier of:

• The date of the plan amendment or
curtailment, and

• The date that the Company recognises
related restructuring costs.

The Company recognises the following changes
in the net defined benefit obligation as an
expense in the statement of profit and loss:

• Service costs comprising current service
costs, past-service costs, gains and
losses on curtailments and nonroutine
settlements; and

• Net interest expense or income.

(iii) Share Based Payment

Employees of the Company also receive
remuneration in the form of share-based
payment transactions under Company's
Employee Stock Option Scheme.

The cost of equity-settled transactions is
determined by the fair value at the date when
the grant is made using an appropriate valuation
model. That cost is recognized, together with a
corresponding increase in share based payment
reserve in equity, over the period in which the
performance and/or service conditions are
fulfilled in 'employee benefits expense'. The
cumulative expense recognized for equity-
settled transactions at each reporting date
until the vesting date reflects the extent to
which the vesting period has expired and the
Company's best estimate of the number of
equity instruments that will ultimately vest.

The Statement of Profit and Loss expense or
credit for a period represents the movement
in cumulative expense recognized as at the
beginning and end of that period and is
recognized in employee benefits expense.

When the terms of an equity-settled award are
modified, the minimum expense recognized
is the expense had the terms had not been
modified, if the original terms of the award are
met. An additional expense is recognized for
any modification that increases the total fair
value of the share-based payment transaction
or is otherwise beneficial to the employee as
measured at the date of modification. Where
an award is cancelled by the entity or by the
counterparty, any remaining element of the
fair value of the award is expensed immediately
through profit or loss.

(iv) Other long-term employee benefits
(compensated absences)

Liability in respect of compensated absences
becoming due or expected to be availed
within one year from the balance sheet date
is recognised on the basis of undiscounted
value of estimated amount required to be paid
or estimated value of benefit expected to be
availed by the employees. Liability in respect
of compensated absences becoming due or
expected to be availed more than one year
after the balance sheet date is estimated on the
basis of an actuarial valuation performed by an

independent actuary using the projected unit
credit method.

Actuarial gains and losses arising from past
experience and changes in actuarial assumptions
are credited or charged to the Statement of
profit and loss in the year in which such gains or
losses are determined.

(v) Short-term and other long-term employee
benefits

Expense in respect of other short-term benefits
is recognised on the basis of the amount paid or
payable for the period during which services are
rendered by the employees.

(p) Investments in subsidiary and joint venture

Investments representing equity interests in
subsidiary and joint venture are carried at cost less
accumulated impairment losses, if any. Where an
indication of impairment exists, the carrying amount
of the investment is assessed and written down
immediately to its recoverable amount. On disposal
of these investments, the difference between net
disposal proceeds and the carrying amounts are
recognised in the statement of profit and loss.

(q) Taxes

Income tax expense comprises current tax expense
and the net change in the deferred tax asset or
liability during the year. Current and deferred tax
are recognised in the Statement of Profit and Loss,
except when they relate to items that are recognised
in Other Comprehensive Income or directly in equity,
in which case, the current and deferred tax are also
recognised in Other Comprehensive Income or
directly in equity, respectively.

(i) Current tax

Current income tax, assets and liabilities are
measured at the amount expected to be paid
to or recovered from the taxation authorities
in accordance with the Income Tax Act, 1961
and the Income Computation and Disclosure
Standards (ICDS) enacted in India by using tax
rates and the tax laws that are enacted as at the
reporting date.

Current income tax relating to item recognized
outside the statement of profit and loss is
recognized outside profit or loss (either in
other comprehensive income or equity).
Current tax items are recognized in correlation
to the underlying transactions either in OCI or
directly in equity.

The Company's management periodically
evaluates positions taken in the tax returns with
respect to situations in which applicable tax
regulations are subject to interpretation and
establishes provisions where appropriate.

Current tax assets and current tax liabilities are
offset when there is a legally enforceable right
to set off the recognised amounts and there is
an intention to settle the asset and the liability
on a net basis.

(ii) Deferred tax

Deferred income tax is recognised using the
balance sheet approach. Deferred tax assets
and liabilities are recognised for deductible and
taxable temporary differences arising between
the tax base of assets and liabilities and their
carrying amount in financial statements, except
when the deferred tax arises from the initial
recognition of goodwill, an asset or liability in a
transaction that is not a business combination
and affects neither accounting nor taxable
profits or loss at the time of the transaction.

Deferred income tax assets are recognised to
the extent that it is probable that taxable profit
will be available against which the deductible
temporary differences and the carry forward
of unused tax credits and unused tax losses
can be utilised.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised.
Unrecog nised deferred tax assets are re-assessed
at each reporting date and are recognised to the
extent that it has become probable that future
taxable profits will allow the deferred tax asset
to be recovered.

Deferred tax liabilities and assets are measured
at the tax rates that are expected to apply in the
period in which the liability is settled or the asset
realised, based on tax rates (and tax laws) that
have been enacted or substantially enacted by
the end of the reporting period.

Deferred tax assets and liabilities are offset when
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 the Company

intends to settle its current tax assets and
liabilities on a net basis.

(iii) Indirect taxes

GST input tax credit on materials purchased /
services availed are taken into account at the
time of purchase and availing of services. GST
input tax credit on purchase of capital items
wherever applicable are taken into account as
and when the assets are acquired. The GST input
tax credits so taken are utilised for payment
of GST on supply of goods and services. The
unutilised GST input tax credit is carried forward
in the books of accounts as 'balance with
government authorities'.

(r) Financial instruments

Financial assets and financial liabilities are recognised
when the Company becomes a party to the
contractual provision of the instruments. Financial
assets and financial liabilities are initially measured
at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial
assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair
value of the financial asset or financial liabilities, as
appropriate, on initial recognition. Transaction cost
directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit
or loss are recognised immediately in profit or loss.

Financial assets

A. Initial Recognition and Measurement

All Financial Assets except trade receivables are
initially recognized at fair value. Transaction costs
that are directly attributable to the acquisition
or issue of Financial Assets, which are not at Fair
Value Through Profit or Loss, are adjusted to the
fair value on initial recognition. Purchase and
sale of Financial Assets are recognised using
trade date accounting. Trade receivables that do
not contain a significant financing component
are measured at the transaction price.

B. Subsequent Measurement

a) Financial Assets Measured at Amortised
Cost (AC)

A Financial Asset is measured at Amortised
Cost if it is held within a business model
whose objective is to hold the asset in
order to collect contractual cash flows
and the contractual terms of the Financial
Asset give rise on specified dates to cash

flows that represents solely payments
of principal and interest on the principal
amount outstanding.

b) Financial Assets Measured at Fair Value
Through Other Comprehensive Income
(FVTOCI)

A Financial Asset is measured at FVTOCI if
it is held within a business model whose
objective is achieved by both collecting
contractual cash flows and selling Financial
Assets and the contractual terms of the
Financial Asset give rise on specified
dates to cash flows that represents solely
payments of principal and interest on the
principal amount outstanding.

c) Financial Assets Measured at Fair Value
Through Profit or Loss (FVTPL)

A Financial Asset which is not classified in
any of the above categories is measured
at FVTPL. Financial assets are reclassified
subsequent to their recognition, if the
Company changes its business model for
managing those financial assets. Changes
in business model are made and applied
prospectively from the reclassification date
which is the first day of immediately next
reporting period following the changes
in business model in accordance with
principles laid down under Ind AS 109 -
Financial Instruments.

C. Impairment of financial assets

In accordance with Ind AS 109, the Company
applies expected credit loss (ECL) model for
measurement and recognition of impairment
loss for financial assets.

ECL is the weighted-average of difference
between all contractual cash flows that are due
to the Company in accordance with the contract
and all the cash flows that the Company expects
to receive, discounted at the original effective
interest rate, with the respective risks of default
occurring as the weights. When estimating the
cash flows, the Company is required to consider -

• All contractual terms of the financial assets
(including prepayment and extension) over
the expected life of the assets.

• Cash flows from the sale of collateral held or
other credit enhancements that are integral
to the contractual terms.

(i) Trade receivables

In respect of trade receivables, the
Company applies the simplified approach
of Ind AS 109, which requires measurement
of loss allowance at an amount equal to
lifetime expected credit losses. Lifetime
expected credit losses are the expected
credit losses that results from all possible
default events over the expected life of a
financial instrument.

(ii) Other financial assets

In respect of its other financial assets, the
entity assesses if the credit risk on those
financial assets has increased significantly
since initial recognition. If the credit risk
has not increased significantly since initial
recognition, the entity measures the loss
allowance at an amount equal to 12-month
expected credit losses, else at an amount
equal to the lifetime expected credit losses.

When making this assessment, the entity
uses the change in the risk of a default
occurring over the expected life of the
financial asset. To make that assessment,
the entity compares the risk of a default
occurring on the financial asset as at the
balance sheet date with the risk of a default
occurring on the financial asset as at the
date of initial recognition and considers
reasonable and supportable information,
that is available without undue cost or effort,
that is indicative of significant increases in
credit risk since initial recognition.

Derecognition of financial assets

The Company derecognises a financial
asset when the contractual rights to the
cash flows from the asset expire, or when it
transfers the financial asset and substantially
all the risks and rewards of ownership of
the asset to another party. If the Company
neither transfers nor retains subsequently
all the risks and rewards of ownership and
continues to control the transferred asset,
the entity recognises its retained interest in
the asset and an associated liability for the
amount it may have to pay.

On derecognition of a financial asset in
its entirety, the difference between the
asset's carrying amount and the sum of the
consideration received and receivable and
the cumulative gain or loss that had been

recognised in other comprehensive income
and accumulated in equity is recognised in
profit or loss if such gain or loss would have
otherwise been recognised in profit or loss
on disposal of that financial asset.

Financial liabilities

A. Initial Recognition and Measurement

All Financial Liabilities are recognized at fair
value and in case of borrowings, net of directly
attributable cost. Fees of recurring nature are
directly recognised in the Statement of Profit
and Loss as finance cost.

B. Subsequent Measurement

Financial Liabilities are carried at amortized cost
using the effective interest method.

Loans and borrowings

This is the category most relevant to the
Company. After initial recognition, interest¬
bearing loans and borrowings are subsequently
measured at amortised cost using the EIR
method. Gains and losses are recognised in
standalone statement of profit and loss when
the liabilities are derecognised as well as through
the EIR amortisation process.

Amortised cost is calculated by taking into
account any discount or premium on acquisition
and transactions costs that are an integral part
of the EIR. The EIR amortisation is included as
finance costs in the standalone statement of
profit and loss.

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 due within
12 months after reporting period. For trade and
other payables maturing within one year from
the balance sheet date, the carrying amounts
approximate fair value due to the short maturity
of these instruments.

C. De-recognition of financial liabilities

A financial liability is de-recognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially

modified, such an exchange or modification
is treated as the de-recognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognised in the statement of profit or loss.

Offsetting of financial instruments

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

(s) Fair value measurement

The Company measures financial instruments at fair
value at each balance sheet date.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must
be accessible by the Company. The fair value of an
asset or a liability is measured using the assumptions
that market participants would use when pricing the
asset or liability, assuming that market participants
act in their economic best interest. A fair value
measurement of a non-financial asset takes into
account a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

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

• Level 2 — Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable.

• Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable.

For assets and liabilities that are recognised in the
standalone financial statements on a recurring
basis, the Company determines whether transfers
have occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of
the asset or liability and the level of the fair value
hierarchy as explained above.

(t) Derivative financial instruments

The Company uses derivative financial instruments,
such as forward currency contracts to hedge its
foreign currency risks. Such derivative financial
instruments are initially recognised at fair value on
the date on which a derivative contract is entered
into and are subsequently remeasured at fair value.
Derivatives are carried as financial assets when the
fair value is positive and as financial liabilities when
the fair value is negative. Any gains or losses from
changes in the fair value of derivatives are taken
directly to statement of profit and loss.

(u) Exceptional items

Items which are material by virtue of their size and
nature are disclosed separately as exceptional
items to ensure that financial statements allows an
understanding of the underlying performance of the
business during the year and to facilitate comparison
with prior year.

(v) Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
Chief Operating Decision Maker ("CODM").

Identification of segments:

In accordance with Ind AS 108 Operating Segments,
the operating segments used to present segment
information are identified on the basis of information
reviewed by the Company's management to
allocate resources to the segments and assess

their performance. An operating segment is a
component of the Company that engages in business
activities from which it earns revenues and incurs
expenses, including revenues and expenses that
relate to transactions with any of the Company's
other components.

Results of the operating segments are reviewed
regularly by the Chief Operating Decision Maker,
to make decisions about resources to be allocated
to the segment and assess its performance and for
which discrete financial information is available.

(w) Initial public offer related transaction costs

The expenses pertaining to Initial Public Offer ('IPO')
includes expenses pertaining to fresh issue of equity
shares and offer for sale by selling shareholders. Such
expenses have been accounted for as follows:

i. Incremental costs that are directly attributable
to issuing new shares have been deducted from
equity (security premium);

ii. Incremental costs that are not directly
attributable to issuing new shares or offer for
sale by selling shareholders, have been recorded
as an expense in the Statement of profit and loss
as and when incurred; and

iii. Costs that relate to fresh issue of equity shares
and offer for sale by selling shareholders have
been allocated between those functions on a
rational and consistent basis as per agreed terms.

(x) Significant estimates and judgements

The preparation of these Standalone Financial
Statements requires management to make
judgments, 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 recognized in the period in which
the estimates are revised and in any future periods
affected. In particular, information about significant
areas of estimation uncertainty and critical judgments
in applying accounting policies that have the most
significant effect on the amounts recognized in the
Standalone Financial Statements is included in the
following notes:

• Recognition and estimation of tax expense
including deferred tax - Note 3(q), Note
11 and Note 40

• Recoverability of financial assets and non¬
financial assets - Note 3(g) and Note 3(r)

• Assessment of useful life of property, plant
and equipment, investment property and
intangible assets - Note 3(c), (d), (f) and Note 4,
Note 7 and Note 8

• Estimation of assets and obligations relating to
employee benefits - Note 3(o) and Note 45

• Valuation of inventories - Note 3(b)

• Recognition and measurement of contingent
liabilities - Note 3(k) and Note 47

• Leases - Note 3(l) and Note 5

• Fair value measurement - Note 3(s) and Note 42

• Provision for warranty - Note 3(a) and
Note 24 and 29

• Expected credit loss - Note 3(r) and Note 15

• Share based payments - Note 3(o)(iii) and Note 46

(y) Recent accounting pronouncements:

The Ministry of Corporate Affairs (""MCA"")

notifies new standards or amendments to

existing standards under the Companies (Indian

Accounting Standards) Rules from time to time.

MCA has notified amendments to Ind AS 1 —

Presentation of Financial Statements (classification
of liabilities as current or non- current, including
liabilities with covenants), Ind AS 12 — Income
Taxes (International Tax Reform — Pillar Two Model
Rules), Ind AS 21 — The Effects of Changes in
Foreign Exchange Rates (Lack of Exchangeability),
and Ind AS 7 — Statement of Cash Flows and
Ind AS 107 — Financial Instruments: Disclosures
(Supplier Finance Arrangements), effective from
01 April 2025.

The Company has reviewed these amendments
and based on its evaluation, has determined that
they do not have any impact on the Company's
standalone financial statements. The Company has
made appropriate disclosures for supplier finance
arrangements as per amendment in Ind AS 107.

New standards or amendments not yet
adopted

Classification of Liabilities as Current or Non-current
and Non-current Liabilities with Covenants —
Amendments to Ind AS 1- The amendments clarify
that lender waivers obtained after the reporting
date cannot be considered for the purpose of
classifying liabilities as current or non- current and
require retrospective application in accordance
with Ind AS 8. These amendments are effective for
reporting periods beginning on or after 01 April
2026. The Company does not expect any material
impact on its standalone financial statements.

c) Company as a lessee

The Company has leases for land, building for office, warehouse facilities, experience centres, IT equipments and
vehicles. With the exception of short term leases and leases of low-value underlying assets, each lease is reflected
on the balance sheet as a right-of-use asset and a lease liability. The Company classifies its right-of-use assets in a
consistent manner to its property, plant and equipment.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the
asset to another party, the right-of-use asset can only be used by the Company. The Company is prohibited from
selling or pledging the underlying leased assets as security. Further, the Company is required to pay maintenance
fees in accordance with the lease contracts.

The Company has appointed a registered valuer in accordance with Rule 2 of Companies (Registered Valuer and
Valuation) Rules, 2017 for the valuation of investment property. The fair value of investment property has been
determined by external, independent property valuers, having appropriate qualifications and recent experience
in the location and category of the property being valued. The Company obtains independent valuation for its
investment property at least annually and is considered to be a fair representation at which such property can be
sold in an active market. The fair value measurement of the investment property has been categorised as a Level 3
fair value based on the inputs to the valuation technique used. Fair value has been determined using combination
of market approach and cost approach. The market approach provides an indication of value by comparing the asset
with identical or comparable (that is similar) assets for which price information is available whereas cost approach
provides an indication of value using the economic principle that a buyer will pay no more for an asset than the cost
to obtain an asset of equal utility, whether by purchase or by construction, unless undue time, inconvenience, risk or
other factors are involved.

(iii) Contractual obligations

There are no contractual obligations outstanding as at 31 March 2026 and 31 March 2025.

(iv) Capitalised borrowing costs

There were no borrowing costs capitalised for the years ended 31 March 2026 and 31 March 2025.

(ii) Intangible assets under development represents expenditure incurred for development of new/ upcoming security
and surveillance equipment models and the related platform/ software, prior to their commercialization or launch.

(iii) Intangible assets under development, whose completion is overdue or exceeded its cost compared to its original
plan: Nil (31 March 2025: Nil)

(iv) Contractual obligations

Refer note 47B for contractual commitments for acquisition of intangible assets as at 31 March 2026 and 31 March 2025.

(v) Capitalised borrowing costs

There were no borrowing costs capitalised for the years ended 31 March 2026 and 31 March 2025.

Notes

(i) On 8 July 2024, the Company entered into Share Subscription and Purchase Agreement ("SSPA") with Dixon
Technologies India Limited ("Dixon") and AIL Dixon Technologies Private Limited ("AIL Dixon") for acquiring 9,500,000
fully paid up equity shares of Rs. 10 each representing balance 50% equity share capital of AIL Dixon- the joint
venture company, for consideration other than cash through and in exchange of issuance of additional 7,305,805
equity shares of Rs. 1, each ). On 18 September 2024, the Company discharged the purchase consideration for the
aforesaid transaction by way of issue of 7,305,805 equity shares of the Company, having a face value of Rs. 1, at
security premium of Rs. 339.32 per share.

(ii) The Company has incorporated a wholly owned subsidiary in Taiwan viz. "Aditya Infotech Taiwan Co. Limited"
on 02 February 2026 that shall be engaged in the Research & Development activities related to security and
surveillance equipment.

b. Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 1 per share. Each holder of equity shares
is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed
by the Board of Directors in any financial year is subject to the approval of the shareholders in the ensuing Annual
General Meeting, except interim dividend. In the event of liquidation of the Company, the holders of equity shares
will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held by the shareholders. The equity shares be
transferable subject to the provisions contained in the Articles of Association and in the agreements entered/ to be
entered into with the investors/ shareholders from time to time.

e. Buy back of shares

During the earlier year, the Board of directors in its meeting held on 04 January 2023, had approved a proposal
of buyback of 450,000 Equity shares (representing 18% of total paid up Equity shares capital of the Company) at
price of Rs. 1,443/- (Indian Rupees One Thousand Four Hundred Forty-three only) per Equity shares which opened
on 23 February 2023, for fifteen days and settlement of buyback offer date was 24 February 2023. Accordingly, the
Company had bought back and extinguished a total of450,000 Equity shares at a buyback price of Rs. 1,443/- (Indian
Rupees One thousand four hundred forty-three only) per Equity share. The buyback resulted in a Cash outflow of Rs.
800.62 million (buyback value Rs.649.35 million plus buyback tax amount Rs. 151.27 million under section 115QA
of the Income Tax Act 1961). Other than the above buy back of shares during the earlier year, the Company has not
undertaken any buy back of shares transaction during the last five years immediately preceeding the current year.

f. The Board of Directors of the Company at its meeting held on 12 June 2024 approved the following:

(a) Increase in the authorised share capital from existing 5,050,000 equity shares to 15,000,000 equity shares of Rs.
10 each, which was subsequently approved by the shareholders through ordinary resolution passed in their
Extra Ordinary General Meeting held on 17 June 2024;

(b) Sub-division of the existing authorised share capital of the Company from 15,000,000 equity shares of Rs. 10
each into 150,000,000 equity shares of Re. 1 each and existing paid- up capital from 2,050,000 equity shares
of Rs. 10 each to 20,500,000 equity shares of Re. 1 each, which was approved by the shareholders through an
ordinary resolution passed in their Extra Ordinary General Meeting held on 17 June 2024;

(c) Post sub-division of the existing authorised and issued share capital as above, the Board had approved the
bonus issue of four new equity shares for every one share held on record date, which was subsequently
approved by the shareholders through an ordinary resolution passed in their Extra Ordinary General Meeting
held on 17 June 2024. Consequently, the Company allotted 82,000,000 equity shares of Rs. 1 each by way of
bonus issue to its shareholders in the ratio of 1:4 on 17 June 2024. The Company utilised capital redemption
reserve of Rs. 4.50 million and general reserve of Rs. 77.50 million for issue of bonus shares, as per section 63 of
the Companies Act, 2013.

g. Agreement dated September 27, 2024 ("Inter-se Agreement"), entered amongst Aditya Khemka,
Shradha Khemka, Ananmay Khemka, Aditya Khemka (HUF), Hari Khemka Business Family Trust,
Aditya Khemka Business Family Trust, Hari Shanker Khemka, Hari Shankar Khemka (HUF), Rishi
Khemka, Ruchi Khemka and ARK Business Prosperity Trust (collectively, "Parties").

The Parties have executed the Inter-se Agreement to record certain inter- se rights and obligations of the Company
and other related matters, including, (i) appointment of Aditya Khemka as authorised representative to exercise any
and all rights to participate and vote on behalf of each of the other Parties; (ii) right of Aditya Khemka to nominate
directors on the Board and on the board of subsidiary/ joint ventures in which the Company has a right to nominate
board or directors, subject to certain conditions mentioned in the Inter-se Agreement; (iii) certain transfer related
rights, including tag-along rights with respect to Equity Shares that are proposed to be transferred to third parties
by either of the Parties from the date of listing of the Equity Shares on the recognised Stock Exchange until the
completion of the lock-in as defined in the Inter-se Agreement; and (iv) an understanding between the parties in
relation to any sale of shares until listing.

The Company is not a party to the Inter-se Agreement and the same shall terminate automatically upon either by
way of the mutual written consent of Aditya Khemka and Rishi Khemka or when either Hari Shanker Khemka or
certain of the other Parties cease to hold any Equity Shares in the Company.

During the current year, in terms of the Inter-se Agreement, the individual Promoters, Hari Shanker Khemka, Aditya
Khemka and Rishi Khemka transferred 19,719,150 Equity Shares of face value of Rs.1 each to Hari Khemka Business
Family Trust, 100 Equity Shares of face value of Rs.1 each to Aditya Khemka Business Family Trust and 100 Equity
Shares of face value of Rs.1 each to ARK Business Prosperity Trust, respectively on 23 April 2025.

Nature and purpose of reserves
General reserve

It represents appropriation of profits of the Company and is available for distribution as dividend and issue of bonus
shares as per Companies Act, 2013. During the current year, the Company utilised the capital redemption reserve for
issuance of bonus shares as per provisions of Section 63 of the Companies Act, 2013.

Retained earnings

Retained earnings is used to record balance of statement of profit and loss and other equity adjustments.

Security premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilized only for limited purpose
such as issue of bonus shares,utilization towards the share issue expenses etc. in accordance with the provision of
Companies Act, 2013.

Capital redemption reserve

The same has been created in accordance with the provisions of the Companies Act, 2013 with respect to buy-back
of equity shares. During the previous year, the Company utilised the capital redemption reserve for issuance of bonus
shares as per provisions of Section 63 of the Companies Act, 2013.

Share Based Payment Reserve

The share based payment reserve represent the expense recognised at fair value on the grant date, on issue of employee
stock options to the employees of the Company. This Reserve is transferred to Securities Premium or Retained Earnings
on exercise or lapse of vested options.

Non- cash changes

There were no material business combinations or foreign exchange differences that affected the liabilities under the
supplier finance arrangements in either period.Amounts are reclassified from trade payables to supplier's credit once
those trade payables become part of supplier's credit arrangement. This reclassification is treated as a non cash change,
as no cash payment occurs at that point.

The Company derecognises the original trade payables when those payables become part of the supplier's credit
arrangement. The related Supplier's credit are presented as a separate line item on the face of the Standalone Balance
Sheet, because they represent financing obtained by the Company and are sufficiently different from trade payables. All
supplier's credit are classified as current, since they are required to be settled within 90 days from the date of acceptance.

For the purpose of the Standalone Statement of Cash Flows, management has determined that the amounts are not part
of the working capital used in the entity's principal revenue-generation activities, so it presents the net cash flows to
settle the supplier's credit in financing activities.

Revenue recognised from contract liabilities during the year: Rs. 108.86 million (31 March 2025: Rs. 16.05 million).

Contract liability is the Company's obligation to transfer goods or services to a customer for which the Company
has received consideration from the customer in advance. Such performance obligation is satisfied within normal
operating cycle of the Company.

Contract assets are transferred to receivables when the rights become unconditional and contract liabilities are
recognized as and when the performance obligation is satisfied.

ii) Fair value hierarchy

Financial assets and financial liabilities are measured at fair value in the financial statements and are grouped into
three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to
the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical financial instruments.

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than
Level 1 inputs; and

Level 3: Inputs which are not based on observable market data (unobservable inputs).The input factors considered
are Estimated cash flows and other assumptions.

A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails to
meet its contractual obligations. The Company's exposure to credit risk is influenced mainly by the individual
characteristics of each financial asset. The carrying amounts of financial assets represent the maximum credit
risk exposure. The Company monitors its exposure to credit risk on an ongoing basis.

a) Credit risk management
i) Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on
the basis of assumptions, inputs and factors specific to the class of financial assets. The Company assigns
the following credit ratings to each class of financial assets based on the assumptions, inputs and factors
specific to the class of financial assets.

A: Low credit risk

B: Moderate credit risk

C: High credit risk

The Company provides for expected credit loss based on the following:

Cash and cash equivalents and other bank balances

Credit risk related to cash and cash equivalents and bank deposits is managed by only diversifying bank
deposits and accounts in different banks. Credit risk is considered low because the Company deals with
reputed banks.

Trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers The
Company monitors the economic environment in which it operates. The Company manages its credit risk
through credit approvals, establishing credit limits and continuously monitoring credit worthiness of the
customers to which the Company grants credit terms in the normal course of business. The Company
has also availed debtor insurance upto Rs. 1,000.00 million (31 March 2025: Rs. 800.00 million) to cover its
risks of bad debts. The Company also uses an expected credit loss model to assess the impairment loss on

such receivables. The Company uses a provision matrix to compute the expected credit loss allowance for
trade receivables. The provision matrix takes into account available internal credit risk factors such as the
Company's historical experience for customers.

Loans and other financial assets

Loans and other financial assets measured at amortized cost includes security deposits and other
receivables. Credit risk related to these financial assets is managed by monitoring the recoverability of
such amounts continuously. Credit risk is considered low because the Company is in possession of the
underlying asset. Further, the Company creates provision by assessing individual financial asset for
expectation of any credit loss basis expected credit loss model.

Corporate guarantee

The Company has issued corporate guarantees to bank on behalf of and in respect of loan / credit facilities
availed by subsidiary company. The value of corporate guarantee contracts given by the Company as at
31 March 2026 is Rs. 1,510.00 million (31 March 2025: Rs. Nil). The value of financial guarantee contracts
denotes outstanding amount of credit facilities availed by subsidiary company.

ii) Concentration of financial assets

The Company carries on the business of trading of security and surveillance equipments. Loans and other
financial assets majorly represents loans to related parties and deposits given for business purposes.

b) Credit risk exposure

i) Provision for expected credit losses

The Company provides for 12 month expected credit losses for following financial assets:

As at 31 March 2026

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset.

Further, the Company manages its liquidity risk in a manner so as to meet its normal financial obligations
without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at
the same time maintaining adequate cash and cash equivalents position. The management has arranged for
diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring
future cash flows and liquidity on a regular basis. Surplus funds not immediately required are invested in certain
financial assets which provide flexibility to liquidate at short notice such as fixed deposits with Bank etc. The
Company's channel financing program ensures timely availability of finance for channel partners with extended
and convenient re-payment terms, thereby freeing up cash flow for business growth while strengthening
company's distribution network.

The Company has developed appropriate internal control systems and contingency plans for managing
liquidity risk. This incorporates an assessment of expected cash flows and availability of alternative sources for
additional funding, if required.

Corporate guarantees given on behalf of subsidiary company might affect the liquidity of the Company if they
are payable. However, the Company has adequate liquidity to cover the risk.

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will
affect the Company's income or the value of its holdings of financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.

(i) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market interest rates.

a) Liabilities

The Company has been availing the borrowings on a floating rate of interest based on bank MCLR. These
borrowings are carried at amortised cost. The borrowings on a fixed rate of interest basis are not subject
to the interest rate risk as defined in Ind AS 107, since neither the carrying amount nor future cash flows
will fluctuate because of change in market interest rates. The borrowings on a variable rate of interest are
subject to interest rate risk as defined in Ind AS 107.

b) Assets

The Company's fixed deposits are carried at amortised cost and are fixed rate deposits. They are therefore
not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future
cash flows will fluctuate because of a change in market interest rates.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange
rates relates primarily to the Company's operating activities (when revenue or expense is denominated in a
foreign currency).

(c) Terms and conditions with related parties

All transactions with related parties are made on the terms equivalent to those that prevail in arm's length
transactions and within the ordinary course of business. Outstanding balances at respective year ends are unsecured
and settlement is generally done in cash.

(d) The Company has not recorded any impairment of receivables relating to amounts owed by related parties. This
assessment is undertaken as at each reporting date.

(e) During the previous year, pursuant to the ESOP scheme (refer note 46), the Company granted Stock Options to eligible
employees, including KMPs, under its Employee Stock Option plan. Since such Stock Options are not tradeable, no
perquisite or benefit is immediately conferred upon the employee by grant of such Stock Options, and accordingly
the said grants have not been considered as 'remuneration. However, in accordance with Ind AS 102, the Company
has recorded employee benefits expense by way of share based payments to employees of Rs. 107.02 million for the
year ended 31 March 2026 (31 March 2025: Rs. 117.44 million), of which Rs. 10.73 million is attributable to KMPs (31
March 2025: Rs. 13.63 million).

45 Employee benefits

The Company has adopted Indian Accounting Standard (Ind AS) - 19 for Employee Benefit as under :

Defined contribution plans

The Company makes contribution towards employee's provident fund and employee's state insurance. The Company
has contributed Rs. 59.45 million (31 March 2025: Rs. 47.42 million) during the year ended 31 March 2026 as contribution
towards these schemes.

Defined benefit plans
Gratuity

The Company has a defined benefit gratuity plan. Every employee is entitled to gratuity as per the provisions of the
Payment of Gratuity Act, 1972. The liability of Gratuity is recognized on the basis of actuarial valuation.

Sensitivities due to mortality is not material .Hence, impact of change has not been calculated.

Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement
and life expectancy are not applicable being a lump sum benefit on retirement.

46. Employees Stock Options Plan

The Company formulated the "Aditya Infotech Ltd. ESOP Scheme 2024" which was duly approved by the shareholders
through special resolution passed in their meeting held on 17 June 2024.

The Nomination & Remuneration Committee of Company, during the year ended 31 March 2025:

(a) approved the grant of 2,591,200 stock options to the Company's eligible employees at an exercise price of Rs. 292.68
per option, on 17 June 2024.

(b) approved the grant of 63,360 stock options to the Group's eligible employees at an exercise price of Rs. 292.68 per
option, on 18 March 2025.

The above stock options shall vest over a period of 4 years from the date of grant and are exercisable within a period of 4
years from the date of vesting.

(ii) Income-tax matters

a) An Income Tax survey under section 133 A of Income- tax Act, 1961 was carried out at the Company's
premises on 18 February 2019. During the course of the survey, the tax officials raised certain concerns and
insisted on declaration of additional income amounting to Rs. 403.82 million. The Company's considered
all the points raised by the survey team and were of the considered view that no additional income needs
to be offered to tax as the actual income for the said assessment year has been correctly /duly accounted
for in the books of accounts

The Assessment proceedings for the said assessment year have got concluded by the Assessing Officer
('AO'), who vide order dated 30 September 2021 had raised tax demand of Rs.189.59 million (31 March
2025: Rs.189.59 million) and had also initiated penalty proceedings. The Company had contested the said
order before the Commissioner of Income Tax (Appeals) wherein the Company has contended that the
AO has erred both on facts and in law, in making the additions, ignoring the settled position of law that
the statements recorded during the course of survey has no evidentiary value and cannot be regarded as
conclusive evidence and that the AO has made additions without bringing on record any contrary evidence
in respect of the submissions made by the Company. Demand was stayed by DCIT vide letter dated 21
January 2022 on payment of 20% of total demand amount, accordingly a sum of Rs. 38.00 million was
deposited, under protest, to obtain a stay on the demand until disposal of the appeal. During the financial
year 2022-23, the Company received a rectification order u/s 154 dated 09 May 2022 raising additional
demand of Rs. 7.80 million on account of wrong calculation of interest u/s 234D in the order dated 30
September 2021.

During the current year, the Commissioner of Income tax (Appeals) vide its order dated 15 January 2026,
granted substantial relief against the total additions of Rs .403.80 million and deleted additions aggregating
to Rs. 367.80 million. The Company believes that the remaining addtions of Rs. 36.00 million represents
legitimate business expenditure and has filed an appeal before the Income Tax Appellate Tribunal ("ITAT")
on 03 March 2026 challenging the order of Commissioner of Income tax (Appeals) for additions made.

Based on inputs by tax experts, the management believes that the chances of any liability devolving on
the Company in the above matter is not probable and accordingly, no adjustment is currently necessary in
these standalone financial statements at this stage.

*The Company has received show cause notice from Goods and Services Tax ("GST”) authority of the State of Tamil Nadu in relation to dues
under the Goods and Services Tax Regulations (both Central and State Goods and Service Tax Acts and Rules thereunder), aggregating to
Rs.10.92 million for the financial years 2024-2025, on account of difference between turnover reported in GSTR 1 and GSTR 3B.

The Company has already filed appropriate reply against the above show cause notice, against which the
authorities are yet to respond. As assessed by the management, issues raised in the above notice are arbitrary in
nature and the Company's management believes that the likelihood of any liability devolving on the Company
is not probable and hence, no adjustment is considered necessary in these standalone financial statements
at this stage.

**Consequent to a search conducted at Company's office premises in earlier years, the Company was served a Show Cause Notice ("SCN”)
dated 30 March 2025, wherein a demand of Rs. 103.29 million was proposed, for alleged incorrect availment of concessional rate of duty on
import of 4G routers, against which the Company had filed its responses and also, attended hearings from time to time. During the current
year, the Commissioner of Customs, Chennai (Imports) issued an Order dated 13 January 2026, raising demand for differential custom duty
of Rs. 103.29 million along with penalties under the Customs Act 1962, aggregating to Rs. 308.58 million (excluding interest). The Company
has filed an appeal against the above said Order before "Customs, Excise And Service Tax Appellate Tribunal” ("CESTAT”) on 07 April 2026,
which is currently pending disposal. The Company had deposited Rs. 60.00 million under protest in earlier years.

Based on inputs from experts, the management believes that the denial of exemption to 4G Routers under
the relevant Customs Notification, covering "Routers” is untenable in law and the Company has high chances
of success in the matter. Accordingly, no adjustment is necessary in these standalone financial statement
at this stage.

(iv) Claims by customers (alongwith interest) in the normal course of business may be payable as and when the
outcome of the related matters are finally determined. Management based on the legal inputs and historic
trends, believes that no material liability will devolve on the Company, in respect of such matters.

B. Commitments

Estimated amount of contract remaining to be executed on capital and other commitments not provided for (net
of advances) is Rs. 332.44 million (31 March 2025: Rs. 829.68 million). Apart from above mentioned amount, certain
purchase orders issued to suppliers are for open quantities, during the normal course of business.

C. E- waste (Management)

Ministry of Environment, Forest and Climate Change has issued E-Waste (Management) Rules, 2022, as amended
("E-waste Rules”), which requires the producers to obtain and implement extended producer responsibility targets
as per Schedule III and Schedule IV of the said Rules. Basis management's internal assessment of E-waste rules,
management believes that the Company has an obligation to fulfil the Extended Producer Responsibility targets,
only if it is a participant in the market during a financial year. The obligation for the financial year are measured based
on sales made in the preceding years.

During the current year and the previous year, as per the directions given by Central Pollution Control Board
(CPCB), the Company has fulfilled its obligation for the current financial year and previous year. Basis management
assessment and in accordance with Appendix B of Ind AS 37, 'Provisions, Contingent Liabilities and Contingent
Assets; the Company will have an e-waste obligation for future years, only if it participates in the market in such years.

48 Dividend

a) The Company's Board of Directors at their meeting held on 02 July 2025 recommended dividend on equity shares
@ Rs. 1.64 per equity share for the financial year 2024-25 that was approved by the shareholders in their Annual
General Meeting held on 07 July 2025. The total outgo as dividend to the shareholders during the year amounted to
Rs. 180 million.

b) The Company's Board of Directors at their meeting held on 27 May 2026 have proposed final dividend on equity
shares @ Rs. 1.64 per equity share for the financial year 2025-26, subject to approval of shareholders in the ensuing
Annual General Meeting.

Nature of CSR activities includes activities related to promotion of education, animal welfare, etc. through a related party.
Such activities are covered under eligible CSR activities under Schedule VII of the Companies Act, 2013.

As per the Companies (Amendment) Act, 2019 effective 22 January 2021, the Company is required to transfer unspent
CSR amount within a period of six months from the end of the financial year to a special account to be opened by the
Company in that behalf. Subsequent to year-end, the Company has deposited Rs. 34.52 million in a separate earmarked
bank account on 29 April 2026. Further, the Company has spent Rs. 13.84 million in respect of shortfall for financial year
ended 31 March 2025 on the ongoing projects being undertaken by the Company and remaining Rs. 9.80 million has
been kept in separate earmarked account (also, refer note 17).

51 Segment reporting

The Company has only one operating segment and is primarily engaged in the business of trading of security and
survelliance equipments. Accordingly, the figures appearing in these standalone financial statements relate to the
Company's single operating segment. The Board of Directors of the Company consider trading of security and survelliance
equipments and related activities as the main business of the entity. Accordingly, there are no other separate reportable
segments in terms of Ind AS 108 on 'Operating Segments'.

(a) There are no major customers having revenue of more than 10% of the reportable segment.

52 Other disclosures

52.1 On 21 November 2025 , the Government of India notified four new Labour Codes (the Code on Wages, 2019, the
Code on Social Security, 2020, the Industrial Relations Code, 2020 and the Occupational Safety, Health and Working
Conditions Code, 2020) consolidating 29 existing labour laws. The Ministry of Labour & Employment published
draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The
Company has assessed and estimated the incremental impact of these changes with the best information available
in accordance with the Ind AS 19 Employee Benefits and the FAQs on Key Accounting Implications issued by the
Institute of Chartered Accountants of India ("ICAI"). The impact of the above change amounting to Rs. 54.26 million
has been recognised under "Employee benefit expenses" in the standalone financial statements for the year ended
31 March 2026. The Company continues to monitor the finalization of Central/ State Rules and clarifications from the
Government on other aspects of the Labour Codes.

52.3 Research and development costs incurred during the year ended 31 March 2026 that have been capitalised,
aggregates to Rs. 21.70 million (31 March 2025: Rs. 70.79 million). Research and development costs that were not
eligible for capitalisation and have been expensed off during the year ended 31 March 2026, aggregates to Rs.
202.17 million (31 March 2025: Rs. 105.27 million).

53. Pursuant to Transfer Memorandum dated 12 June 2018, the New Okhla Industrial Development Authority ("Noida
Authority") transferred the allotment and lease of the land located at 12A, Sector 135, Noida, Uttar Pradesh, that the
Company has been carrying as "Right of use Asset" as per Ind AS 116. As per the terms of the transfer memorandum and
the lease deed, the Company was required to undertake construction/ development activity on the said land within the
prescribed timelines. The Noida Authority vide its order dated 11 March 2024 had granted extension for completion of
construction upto 31 December 2024. The construction and development at the leased land site is in advanced stages
and the Company has already incurred expenditure of Rs. 616.82 million as at 31 March 2026, that the Company has been
carrying as 'Capital work in progress'. However, due to factors beyond management control like ban on construction
activities in Delhi NCR region as per GRAP-4 guidelines to control pollution etc., as the construction activities could not
be completed by the prescribed date, the Company had filed an application on 12 October 2024, requesting for further

extension of one year for completion of construction and development activities on the said land, that is currently pending
disposal by the Noida Authority. During the current year , the Company had submitted an application post receipt of
necessary permission/approvals, with the Noida Authority for issuance of the completion certificate for the project.The
Company has received certain queries from the Noida Authority, for which the Company has filed appropriate response
and the matter is currently pending disposal with the Noida Authority for providing extension and completion certificate,
post receipt of approval from Government of Uttar Pradesh.

Based on assessment by a legal expert, status of development at the leasehold land and time to time communication with
authorities post filing of application for completion certificate, the management is confident of receiving the necessary
approvals and accordingly, believes that no adjustment is necessary in these standalone financial statments at this stage.

Notes- reasons for variances:

A. Variance in ratio is attributable to increase in current assets during the financial year vis-a-vis current liabilities.

B. Variance in ratio is attributable to repayment of outstanding working capital demand loans during the year out
of IPO proceeds.

C. Variance in ratio is attributable to a significant reduction in interest expense, driven by lower outstanding borrowings
during the current year.

D. Variance in ratio is attributable to the increase in revenue particularly from high margin products during the current
year resulting in increase in average shareholder equity.

E. Variance in ratio is attributable to higher inventory churn driven by increased sales of goods during the current
year. Improved sales momentum has resulted in faster movement of inventory, leading to a reduction in the overall
inventory holding period.

F. Variance in ratio is attributable to proportionate increase in revenue being lower than proportionate increase in
working capital during the year.

G. Variance in ratio is attributable to the increase in revenue particularly from high margin products, reduction in
interest expense due to repayment of the borrowings.

55 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule
3(1) of the Companies (Accounts) Rules, 2014, inserted by the Companies (Accounts) Amendment Rules 2021 requiring
companies, which uses accounting software for maintaining its books of accounts, shall use only such accounting
software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change
made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot
be disabled.

The Company has used an accounting software for maintaining books of accounts which has a feature of recording audit
trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the
software except that, the audit trail feature is not enabled at the database level to log any direct data changes, used for
maintaining accounting records. Further, there was no instance of audit trail feature being tampered with, as noted by
the management. Further, except for consequential impact of audit trail feature not enabled at the database level, the
Company has retained the audit logs as per statutory requirements for record retention.

56 Additional regulatory information not disclosed elsewhere in the financial statements

(a) The Company does not have any transactions with struck-off companies under section 248 of the Companies Act,
2013 or section 560 of the Companies Act 1956 during the year.

(b) The Company has not undertaken any transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961).

(c) The Company has not been declared a 'Wilful Defaulter' by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the
Reserve Bank of India.

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

(e) The Company does not have any Benami property and no proceedings have been initiated or pending against the
Company for holding any Benami property, under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and
the rules made thereunder.

(f) The Company does not have any charge or satisfaction of charge which is yet to be registered with ROC beyond the
statutory period as at balance sheet date.

(g) The Company has not traded or invested in Crypto currency or Virtual Currency during the current and previous
financial year.

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

(i) 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

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

(i) 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:

(i) 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

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

(j) The Company has been sanctioned facilities from banks on the basis of security of current assets. The periodic returns
filed by the Company with such banks are in agreement with the books of accounts of the Company.

57 Certain previous year amounts have been reclassified for consistency with the current year presentation. Such
reclassification did not have any impact on the current year standalone financial statements.

58 During the current year, the Company completed its Initial Public Offer (IPO) of 19,267,928 equity shares of face value
of Rs. 1 each, at an issue price of Rs. 675 per share (including a share premium of Rs. 674 per share), comprising an offer
for sale of 11,851,849 equity shares by selling shareholders aggregating to Rs. 8,000 million and a fresh issue of 7,416,079
equity shares aggregating to y shares aggregating to Rs. 5,000 million. The equity shares of the Company were listed on National Stock Exchange
of India Limited (NSE) and BSE Limited (BSE) on 5 August 2025.

59 Subsequent events

(a) The Company has entered into a joint venture agreement dated 16 April 2026 with Orient Cables (India) Limited,
under which the parties have agreed to forn a 50:50 joint venture for the purpose of carrying on the business of
manufacturing electric cables including LAN cables and CCTV cables etc. The joint venture company is currently in
process of being incorporated after completing required procedural formalities.

(b) On 19 May 2026, the Company allotted 52,401 equity shares having face value of Rs. 1 each, as fully paid up, to
eligible employees, upon exercise of options vested under the Aditya Infotech Employee Stock Option Plan 2024
of the Company. Consequent to the aforesaid allotment, the issued, subscribed and paid-up equity share capital of
the Company stands increased from Rs.117.80 million (consisting of 117,798,084 equity shares of face value of Rs. 1
each) to Rs. 117.85 million (consisting of 117,850,485 equity shares of face value of Rs. 1 each).

60 The figures have been rounded off to the nearest million of rupees upto two decimal places. The figure 0.00 wherever
stated represents value less than Rs. 50,000/-.<