3.15. Provisions and Contingencies

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of 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 of the amount of the obligation. The expense relating to a provision
is presented in the Statement of Profit and Loss.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.

The Company records a provision for decommissioning costs for its certain manufacturing facilities. Decommissioning
costs are provided at the present value of expected costs to settle the obligation using estimated cash flows and
are recognised as part of the cost of the particular asset. The cash flows are discounted at a current pre-tax
rate that reflects the risks specific to the decommissioning liability. The unwinding of the discount is expensed
as incurred and recognised in the Statement of Profit and Loss as a finance cost. The estimated future costs of
decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs or in
the discount rate applied are added to or deducted from the cost of the asset.

The impact of climate-related matters on remediation of environmental damage is considered with determining the
decommissioning liability on the manufacturing facility.

If the Company has a contract that is onerous, the present obligation under the contract is recognised and
measured as a provision. However, before a separate provision for an onerous contract is established, the Company
recognises any impairment loss that has occurred on assets dedicated to that contract.

An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot
avoid because it has the contract) of meeting the obligations under the contract exceed the economic benefits
expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting
from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure
to fulfil it.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required
to settle the obligation. The Company does not recognize a contingent liability but discloses its existence and
other required disclosures in notes to the financial statements, unless the possibility of any outflow in settlement
is remote.

3.16. Employee Benefits

Short-term Employee Benefits:

Liabilities for short-term employee 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

up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as ‘Employee Benefits Payable' within ‘Other Financial Liabilities' in the
Balance Sheet.

Post-employment Benefits:

I. Defined Contribution Plan

a. Superannuation

Contribution made to Superannuation Fund for certain employees are recognised in the Statement of
Profit and Loss as and when services are rendered by employees. The Company has no liability for
future Superannuation Fund benefits other than its contribution.

b. Provident Fund

Contributions in respect of Employees who are not covered by Company’s Employees Provident Fund
Trust are made to the Fund administered by the Regional Provident Fund Commissioner as per the
provisions of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 and are charged to
Statement of Profit and Loss as and when services are rendered by employees. The Company has no
obligation other than the contribution payable to the Regional Provident Fund.

II. Defined Benefit Plan

a. Gratuity

Every employee who has completed five years or more of service is entitled to Gratuity as per the
provisions of The Payment of Gratuity Act, 1972. Retirement Gratuity for employees, is funded through
a scheme of Life Insurance Corporation of India. The costs of providing benefits under this plan are
determined on the basis of actuarial valuation using the projected unit credit method at each year-end.
Actuarial gains/losses are immediately recognised in retained earnings through Other Comprehensive
Income in the period in which they occur. Re-measurements are not re-classified to Statement of Profit
and Loss in subsequent periods. The excess / shortfall in the fair value of the plan assets over the present
value of the obligation calculated as per actuarial methods as at balance sheet dates is recognised as
a gain / loss in the Statement of Profit and Loss. Any asset arising out of this calculation is limited to
the past service cost plus the present value of available refunds and reduction in future contributions.

b. Provident Fund

In respect of the employees covered by the Company’s Employee Provident Fund Trust in Point I b
above, contributions to the Company’s Employees Provident Fund Trust (administered by the Company
as per the provisions of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952) are made
in accordance with the fund rules. The interest rate payable to the beneficiaries every year is being
notified by the Government.

In the case of contribution to the Trust, the Company has an obligation to make good the shortfall, if
any, between the return from the investments of the Trust and the notified interest rate and recognizes

such obligation, if any, determined based on an actuarial valuation as at the balance sheet date,
as an expense.

III. Long Term Compensated Absences

The Company treats accumulated leave to the extent such leave are carried forward as long-term employee
benefit for measurement purposes. Such long-term compensated absences are provided for based on the
actuarial valuation using the projected unit credit method at the year-end. Remeasurement gains/losses are
immediately taken to the Statement of Profit and Loss and are not deferred. The Company presents the leave
as a current liability in the balance sheet, to the extent it does not have an unconditional right to defer its
settlement for 12 months after the reporting date. Where Company has the unconditional legal and contractual
right to defer the settlement for a period beyond 12 months, the same is presented as non-current liability.

IV. Termination Benefits

Termination benefits are expensed at the earlier of when the Company can no longer withdraw the offer of
those benefits and when the Company recognizes costs for a restructuring. If benefits are not expected to be
settled wholly within 12 months of the reporting date, then they are discounted.

3.17. Employees Stock Option

Stock options are granted to the employees under the stock option scheme. The cost of stock options granted to
the employees (equity-settled awards) of the Company is the difference between fair value of equity instruments
granted and the price at which options may be exercised by concerned employees. For each stock option, the
measurement of fair value is performed on the grant date. The grant date is the date on which the Company and
the employees agree to the stock option scheme. The fair value so determined is revised only if the stock option
scheme is modified in a manner that is beneficial to the employees.

Aforesaid cost of stock options is recognised, together with a corresponding increase in Employee Stock Options
outstanding account in equity, over the period in which the performance and/or service conditions are fulfilled in
employee benefits expense. The cumulative expense recognised 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 recognised as at the beginning and end of that
period and is recognised in employee benefits expense.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted
earnings per share.

If the options vests in instalments (i.e., the options vest pro rata over the service period), then each instalment is
treated as a separate share option grant because each instalment has a different vesting period.

3.18. Cash and Cash Equivalents

Cash and cash equivalent for the purpose of presentation in cash flow statement and in the balance sheet comprise
cash at banks and on hand and short-term deposits with an original maturity of three months or less that are readily
convertible to known amounts of cash, which are subject to an insignificant risk of changes in value.

3.19. Forward Currency Contracts

The Company uses forward currency contracts to hedge its foreign currency risks. Such forward currency
contracts are initially measured at fair value on the date on which a forward currency contract is entered into and
are subsequently re-measured at fair value. Forward currency contracts are carried as financial assets when the
fair value is positive and as financial liabilities when the fair value is negative. Changes in the fair value of forward
contracts are recognized in the Statement of Profit and Loss as they arise.

3.20. Earnings Per Share

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

The weighted average number of equity shares outstanding during the period and for all periods presented is
adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed
the number of equity shares outstanding, without a corresponding change in resources.

3.21. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

A. Financial assets

i. Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at
fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial
asset. However, trade receivables that do not contain a significant financing component are measured
at transaction price. The Company has elected the practical expedient in Ind AS 115 about the
existence of significant financing component and the disclosures pertaining to contracts with original
expected duration of one year or less and contracts where revenue recognised corresponds to the
value transferred to customer typically involving sales of products.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI,
it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)' on the
principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an
instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair
value through profit or loss, irrespective of the business model.

For the assessment whether contractual cash flows are solely payments of principal and interest,
‘principal' is defined as the fair value of the financial asset on initial recognition. ‘Interest' is defined as

consideration for the time value of money and for the credit risk associated with the principal amount
outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity
risk and administrative costs), as well as a profit margin.

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

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

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

- prepayment and extension features; and

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

Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the marketplace (regular way trades) are recognised on the trade date, i.e.,
the date that the Company commits to purchase or sell the asset.

ii. Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in below categories:

> Debt instruments at amortised cost

> Equity instruments measured at fair value through other comprehensive income (FVTOCI)

> Financial assets at fair value through profit or loss.

Debt instruments at amortised cost other than derivative contracts

A ‘debt instrument' is measured at the amortised cost if both the following conditions are met:

> The asset is held within a business model whose objective is to hold assets for
collecting contractual cash flows, and

> Contractual terms of the asset give rise on specified dates to cash flows that are
solely payments of principal and interest (SPPI) on the principal amount outstanding.

This assessment is referred to as the Solely Payments of Principal and Interest (SPPI) test and is
performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and
measured at fair value through profit or loss, irrespective of the business model.

After initial measurement, such financial assets are subsequently measured at amortised cost using
the effective interest rate (EIR) method and are subject to impairment as per the accounting policy
applicable to ‘Impairment of financial assets.' Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR

amortisation is included in Other Income in the Statement of Profit and Loss. The losses arising from
impairment are recognised in the Statement of Profit and Loss. This category generally applies to trade
and other receivables.

Equity investments

All equity investments in scope of Ind-AS 109 are measured at fair value other than equity investments
measured at deemed cost on first time adoption of Ind AS. Equity instruments which are held for
trading are classified as at Fair Value Through Profit or Loss (FVTPL). For all other equity instruments,
the Company decides to classify the same either as at Fair Value Through Other Comprehensive
Income (FVTOCI) or Fair Value Through Profit or Loss (FVTPL). The Company makes such election on
an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from
OCI to Statement of Profit and Loss, even on sale of investment. However, the Company may transfer
the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the Statement of Profit and Loss.

iii. De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company's similar financial
assets) is primarily derecognised when:

> The rights to receive cash flows from the asset have expired, or

> The Company has transferred substantially all the risks and rewards of the asset.

The Company derecognises a financial asset when:

- the contractual rights to the cash flows from the financial asset expire; or

- it transfers the rights to receive the contractual cash flows in a transaction in which either:

• substantially all of the risks and rewards of ownership of the financial asset are transferred; or

• the Company neither transfers nor retains substantially all of the risks and rewards of
ownership and it does not retain control of the financial asset.

The Company enters into transactions whereby it transfers assets recognised on its balance sheet but
retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the
transferred assets are not derecognised.

iv. 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 on the following financial assets and credit risk exposure:

• Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt
securities, deposits, trade receivables and bank balance.

The Company follows ‘simplified approach' for recognition of impairment loss allowance on
Trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right
from its initial recognition.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected
life of a financial instrument. ECL is the difference between all contractual cash flows that are due to
the Company in accordance with the contract and all the cash flows that the entity expects to receive,
discounted at the original EIR. When estimating the cash flows, an entity is required to consider:

a. All contractual terms of the financial instrument (including prepayment, extension, call and
similar options) over the expected life of the financial instrument. However, in rare cases when
the expected life of the financial instrument cannot be estimated reliably, then the entity is
required to use the remaining contractual term of the financial instrument.

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

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

ECL impairment loss allowance (or reversal) recognized during the period is recognized as
income/ expense in the Statement of Profit and Loss (P&L). This amount is reflected under the head
‘other expenses' in the P&L. The balance sheet presentation for various financial instruments is
described below:

Financial assets measured at amortised cost: ECL is presented as an allowance, i.e., as an integral
part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying
amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance
from the gross carrying amount.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments
on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is
designed to enable significant increases in credit risk to be identified on a timely basis.

B. Financial liabilities

i. Initial recognition, measurement and presentation

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowing or payables, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

The Company's financial liabilities include trade and other payables, loans and borrowings including
bank overdrafts and financial guarantee contracts.

ii. Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include derivatives, financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial
liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near
term. This category also includes derivative financial instruments entered into by the Company that are
not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated
embedded derivatives are also classified as held for trading unless they are designated as effective
hedging instruments.

Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities are designated upon initial recognition as at fair value through profit or loss only if the
criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable
to changes in own credit risks are recognized in OCI. These gains/ losses are not subsequently
transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All
other changes in fair value of such liability are recognised in the Statement of Profit and Loss.

Trade Payables

Trade payables 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. They are recognised initially at their fair
value and subsequently measured at amortised cost using the effective interest method.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the EIR method. Gains and losses are recognised in 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 fees
or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the
statement of profit and loss.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to
be made to reimburse the lender for a loss it incurs because the specified borrower fails to make a
payment when due in accordance with the terms of a loan agreement. Financial guarantee contracts are

recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable
to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of
loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised
less cumulative amortisation.

De-recognition

A financial liability is derecognised 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 and Loss.

Reclassification of Financial Assets and Liabilities:

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a
change in the business model for managing those assets. Changes to the business model are expected
to be infrequent. The Company's senior management determines change in the business model as a
result of external or internal changes which are significant to the Company's operations. Such changes
are evident to external parties. A change in the business model occurs when the Company either begins
or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial
assets, it applies the reclassification prospectively from the reclassification date which is the first day
of the immediately next reporting period following the change in business model. The Company does
not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

Offsetting of financial instruments

Financial assets and financial liabilities are off-set 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. The legally enforceable right must not
be contingent on future events and must be enforceable in the normal course of business and in the event of
default, insolvency or bankruptcy of the Company or the counterparty.

Equity vs. financial liability classification

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of
direct issue costs. The Company classifies a financial instrument issued by it as equity instrument only if below
conditions are met:

• The instrument includes no contractual obligation to deliver cash or another financial asset to another
entity. Nor it includes any obligation to exchange financial assets or financial liabilities with another entity
under conditions that are potentially unfavourable to the issuer.

• If the instrument will, or may, be settled in the Company's own equity instruments, it is non-derivative
instrument that includes no contractual obligation for the Company to deliver a variable number of
its own equity instruments. If the instrument is derivative, then it should be settled only by the
Company exchanging a fixed amount of cash or another financial asset for a fixed number of its own
equity instruments.

All other instruments are classified as financial liability and accounted for using the accounting policy applicable
to the Financial Liabilities.

3.22. Cash dividend to equity holders of the Company

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

3.23. Operating Segments

The Business Process and Risk Management Committee of the Company approved by the Board of Directors and
Audit Committee performs the function of allotment of resources and assessment of performance of the Company.
Considering the level of activities performed, frequency of their meetings and level of finality of their decisions,
the Company has identified that Chief Operating Decision Maker function is being performed by the Business
Process and Risk Management Committee. The financial information presented to the Business Process and Risk
Management Committee in the context of results and for the purposes of approving the annual operating plan is
on a consolidated basis for various products of the Company. As the Company's business activity falls within a
single business segment viz. ‘Paints and Coatings' and the sales substantially being in the domestic market, the
Standalone financial statements are reflective of the information required by Ind AS 108 “Operating Segments”.

3.24. Events after reporting date

If the Company receives information after the reporting period, but prior to the date of approved for issue, about
conditions that existed at the end of the reporting period, it will assess whether the information affects the amounts
that it recognises in its separate financial statements. The Company will adjust the amounts recognised in its
financial statements to reflect any adjusting events after the reporting period and update the disclosures that
relate to those conditions in light of the new information. For non-adjusting events after the reporting period, the
Company will not change the amounts recognised in its separate financial statements but will disclose the nature
of the non-adjusting event and an estimate of its financial effect, or a statement that such an estimate cannot be
made, if applicable.

3.25. New and amended standards

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31 March 2026,
MCA has not notified any new standards or amendments to the existing standards which will have any significant
impact on these Financial Statements.

3.26. Standards issued but not yet effective

Ind AS 1 - Presentation of Financial Statements

For accounting periods beginning on or after 1 April 2026, when an entity breaches any covenant of a long-term
loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable
on demand, it classifies the liability as current, even if the lender agreed, after the reporting period and before the
approval of the financial statements for issue, not to demand payment as a consequence of the breach. An entity
classifies the liability as current because, at the end of the reporting period, it does not have the right to defer its
settlement for at least 12 months after that date.

However, an entity classifies the liability as non-current if the lender agreed by the end of the reporting period to
provide a period of grace ending at least 12 months after the reporting period, within which the entity can rectify
the breach and during which the lender cannot demand immediate repayment.

This amendment is to be applied retrospectively for annual reporting periods beginning on or after 1 April 2026, in
accordance with Ind AS 8, Accounting Policies, Accounting Estimates and Errors.

The management does not expect any material impact of the same on the standalone financial statement.

Note 21. Equity share capital (contd.)

b) Terms/Rights attached to equity shares

The Company has only one class of equity shares having a par value of '1 each. Holder of each equity share is
entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed
by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting,
except in case of 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.

c) Aggregate number of Shares issued for consideration other than Cash during the period of
5 Years immediately preceding the reporting date

On September 25, 2023, the Company had allotted 19,42,84,497 bonus shares of Rupee one each (fully paid up)
in the proportion of 1 bonus shares for every 5 fully paid up equity shares to eligible shareholders whose names
appeared in the Register of Members as on September 23, 2023, being the record date fixed for this purpose,
in accordance with approval received from the Members by way of postal ballot, result of which was declared
on September 08, 2023. The said bonus shares rank pari passu in all respects with the existing equity shares of
the Company, including dividend. As a result of the bonus issue, the paid-up capital of the Company increased
to '116.57 crores from ?97.14 crores. The paid-up capital on account of bonus issue of '19.43 crores has been
appropriated from securities premium.

Equity shares allotted as fully paid-up bonus shares during the period of five years immediately preceding the
balance sheet date.

Nature and purpose of reserves:

Securities premium - Premium received on equity shares issued including those under Employee Stock Option plan are
recognised in the securities premium account net of utilization for bonus shares issued. The reserve can be utilised only
for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Retained earnings - Retained earnings includes surplus in the Statement of Profit and Loss, Ind-AS related adjustments
as on the date of transition, remeasurement gains/(losses) on defined benefit plans less any transfer to general reserve,
dividends or other distributions paid to shareholders.

General reserve - Under the erstwhile Indian Companies Act 1956, a general reserve was created through an annual
transfer of net income at a specified percentage in accordance with applicable regulations, to ensure that if a dividend
distribution in a given year is more than 10% of the paid up capital of the Company for that year, the total dividend
distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013,
the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn.
However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific
requirements of Companies Act, 2013.

Share based payment reserve - The Company has an employee stock option plan (ESOP) under which options
to subscribe for the Company's shares have been granted to specific employees. The Share based payment reserve
is used to recognise the value of equity-settled share-based payments to employees as part of their remuneration.
The year end balance is net off options exercised by the concerned employees. Refer to Note 46 for further details of
these plans.

Capital redemption reserve - Represents amount equal to the face value of equity shares transferred at the time of
buy-back of shares in earlier years.

Capital Reserve - Includes profit on re-issue of forfeited shares.

Note 43. Earnings Per Share (EPS)

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

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

Note 44. Significant accounting judgements, estimates and assumptions

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

(i) Judgements, Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are described below. The Company based its assumptions and estimates on parameters
available when the Financial Statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising that are beyond the control
of the Company. Such changes are reflected in the assumptions when they occur. In the process of applying the
Company's accounting policies, management has made the following judgements, estimates and assumptions,
which have the most significant effect on the amounts recognised in the Financial Statements.

(ii) Defined Employer Benefit plans (Refer Note 3.16)

The cost and the present value of the defined benefit gratuity plan and other post-employment leave encashment
benefit are determined using actuarial valuations. An actuarial valuation involves making various assumptions
that may differ from actual developments in future. These include the determination of appropriate discount rate,
estimating future salary increases and mortality rates. Due to the complexities involved in the valuation and its long¬
term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
reviewed at each reporting date. For further details refer Note 45.

(iii) Fair value measurement of financial instruments (Refer Note 3.21)

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using various valuation techniques. The
inputs to these techniques are taken from observable markets where possible, but where this is not feasible, a
degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as
liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair
value of financial instruments. Refer Note 51 for further disclosures.

(iv) Depreciation on Property, Plant and Equipment (Refer Note 3.8)

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in
respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the
expected residual value at the end of its life. The useful lives and residual values of company’s assets are determined
by management at the time the asset is acquired and reviewed periodically, including at each financial year end.
The lives are based on historical experience with similar assets as well as anticipation of future events, which may
impact their life, such as changes in technology. The Company also considers the impact of health, safety and
environmental legislation in its assessment of expected useful lives and estimated residual values.

(v) Impairment allowance on trade receivables (Refer Note 3.5)

The Company makes loss allowances for credit impaired debts based on an assessment of the recoverability of
trade and other receivables. The identification of credit impaired debts enquires use of judgments and estimates.
Where the expectation is different from the original estimate, such difference will impact the carrying value of
the trade and other receivables and credit impaired debts expenses in the period in which such estimate has
been changed.

(vi) Decommissioning Liability (Refer Note 3.8)

Decommissioning Liability has been recognised for items of property, plant and equipment built or installed on
specified leasehold land the terms of which said leases include decommissioning of such assets on expiry of the
lease prior to handing over to the lessor. The decommissioning costs as at the end of the lease period have been
estimated based on current costs by the Company’s own technical experts and have been escalated to the end of
the leasehold period using suitable inflation factors. The said escalated cost as at the end of the lease period is now
discounted to the present value of such liability by applying Company’s weighted average cost of capital.

(vii) Impairment of Investment (Refer Note 3.14)

The carrying amount of the Company’s investments are assessed at the end of each reporting period to determine
whether there is any indication that an asset may be impaired. If any such indication exists, then the Company
estimates the recoverable amount of the asset. The recoverable amount of the asset is computed as the higher
of an asset’s or cash generating unit’s fair value less costs to sell and its value in use. Such value is derived using
valuation techniques (i.e. the Discounted Cash Flow (DCF) model), where future financial performance can be
reliably estimated or management’s best estimate of the estimated fair value of the carrying value of assets and
liabilities, as appropriate. The inputs to the Discounted Cash Flow models are taken from observable markets
where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Key

assumptions on which management has based its determination of recoverable amount includes estimated long
term growth rates, weighted average cost of capital etc. Cash flow projections take into account past experience
and represent management's best estimate about future developments. The risks in respect of climate-related
matters are included as key assumptions where they materially impact the measure of recoverable amount. These
assumptions are included in the cash-flow forecasts in assessing value-in-use amount.

The Company had in earlier years provided for impairment amounting to '71.40 crores in the carrying value of its
investment in its wholly owned subsidiary, Berger Paints Cyprus Limited (BPCL) due to downturn in the Russian
economy and its corresponding impact on Company's ultimate wholly owned subsidiary Berger Paints Overseas
Limited (BPOL), which were reflected in the consolidated financial position of the Company. The Company has
made an assessment of the fair value less costs to sell of the investments in Berger Paints Overseas Limited taking
into account management's best estimate of the estimated fair value less costs to sale of the carrying value of
assets and liabilities of the above wholly owned subsidiary and basis such assessment no further impairment is
required to be recognised in the current year.

(viii) Revenue from combined contracts (Refer Note 3.5)

The Company exercises judgement in estimating cost for recognizing revenue from combined contract with
customers. Losses on onerous contracts (if any) are recognized in the financial statements.

Impact on defined benefit obligation

Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the
valuation of the defined benefit obligation by one percentage, keeping all other actuarial assumptions constant.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the
prior period.

(v) Risk Exposure

Impact on defined benefit obligation

Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the
valuation of the defined benefit obligation by one percentage, keeping all other actuarial assumptions constant. In
practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of
the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period)
has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the
prior period.

These plans typically expose the Company to actuarial risks such as: Investment Risk, Interest Risk, Longevity Risk
and Salary Risk.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which
is determined by reference to market yields at the end of the reporting period on government bonds. If the actual
return on plan asset is below this rate, it will create a plan deficit. However, the risk is partially mitigated by
investment in LIC managed fund.

Interest Risk: A decrease in the government bond interest rate will increase the plan liability.

Longevity Risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate
of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the
plan participants will increase the plan's liability.

Salary Risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

(vi) Defined Benefit Liability and Employer Contributions

Since the employees gratuity fund is a defined benefit plan maintained by Life Insurance Corporation of India the
return is generated from a pool of assets invested by them and any deficit in the liability and return on plan assets
is funded by the Company on a yearly basis.

(vii) The Company expects to contribute '30.46 crores (March 31,2025: '6.06 crores) to gratuity as specified in report
by Fund custodian during the subsequent accounting year.

4) Encourage employees to align individual performance with the objective of the Company. The terms and conditions

of the Plan is reproduced below:

a) “Vesting Date” means the date on and from which the Option vests with the Participant and thereby
becomes exercisable.

b) “Exercise Date “means the date on which the Participant exercises his Vested Options and in case of partial
Exercise shall mean each date on which the Participant exercises part of his Vested Options.

c) “Vesting Period” means the period during which the Vesting of the Option granted to the Participant in
pursuance of the Plan takes place.

d) “Exercise Period” means a period of 3 years from the Vesting Date as defined above of the Plan within
which the Vested Options can be exercised in pursuance of the Plan.

e) The Exercise Price of an Option shall be the face value of '1/- per Share

f) Cashless exercise of the Options are not permitted under the Plan. Participants to pay full Aggregate
Exercise Price upon the Exercise of the Vested Options.

g) Subject to Participant's continued employment as defined in Clause 14 of the Plan the Unvested Options
shall vest with the Participant automatically in accordance with the following schedule: a) 33% of the total
Options granted, rounded up to the nearest whole number, shall vest on the first anniversary of the Grant
Date; b) further 33% of the total Options granted, rounded up to the nearest whole number, shall vest
on the second anniversary of the Grant Date and c)balance 34% of the total Options granted, rounded
up to the whole number such that the total number of Options vested shall add up to 100%, shall vest
on the third anniversary of the Grant Date. ESOP Plan 2016 was amended on 17th September, 2024
through Postal Ballot Resolution. As per the amended ESOP Plan 2016, the Unvested Options shall vest
with the Participant automatically in accordance with the following schedule: a) 20% of the total Options
granted, shall vest on the first anniversary of the Grant Date, b) 20% of the total Options granted, shall vest
on the second anniversary of the Grant Date, c) 30% of the total Options granted, shall vest on the third
anniversary of the Grant Date and d) 30% of the total Options granted, shall vest on the fourth anniversary
of the Grant Date.

h) The Date of grant of options: 9th November, 2016, 9th November, 2017, 9th November, 2019,
10th February, 2021,8th November, 2021, 17th October, 2022, 8th November, 2023, 31st October, 2024
and 28th November 2025.

Note 46. Share based payment to employees

Berger Paints India Limited Employee Stock Option Plan 2016

The Berger Paints India Limited - Employee Stock Option Plan 2016 [‘the Plan'] was approved at the Annual General
Meeting of the Company held on 3rd August, 2016. The objective of the plan is to:

1) Attract, retain and motivate Employees,

2) Create and share wealth with the Employees,

3) Recognise and reward employee performance with shares and

Note 47.

a. Company as a lessee

The Company has lease contracts for various depots, head office and leasehold lands used in its operations.
Leasehold land and building generally have lease terms between 2 and 99 years.

The Company also has certain leases with lease terms of 12 months or less. The Company applies the ‘short-term
lease' recognition exemptions for these leases.

Note 47.b. Company as a lessor

The Company has given Color bank (tinting machines) on operating lease to its dealers. The Company enters
into 3-5 years cancellable lease agreements. Rental income recognised by the Company during the year ended
31 March 2026 was '24.44 crores (31 March 2025: '18.73 crores ).

(iv) Others

The Company continues to provide such support as may be necessary to its subsidiaries Berger Rock
Paints Private Limited and Berger Paints (Cyprus) Limited [including to the ultimate wholly owned Russian
subsidiary Berger Paint Overseas Limited (BPOL)], Lusako Trading Limited [including to the ultimate
wholly owned Polish subsidiary Bolix S.A] and joint venture (Berger Nippon Paint Automotive Coatings
Pvt. Ltd.) to enable them to continue at least with their present scale of operations and meet their
financial commitments as and when they arise.

The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key
management personnel. No share options have been granted to the non-executive members of the Board of Directors under this
scheme. Refer to Note 46 for further details of the scheme.

Notes:

Terms and conditions of transactions with related parties:

Transactions relating to dividend were on the same terms and conditions that applied to other shareholders.
The sales to and purchases from related parties are made in the ordinary course of business and at arm's length
prices. Outstanding balances at the year-end except loan given to a subsidiary are unsecured and interest free and
settlement occurs in cash. No provisions are held against receivables from related parties.

Note 50. Segment information

The Company is engaged in the business of manufacturing and selling of paints. Based on the nature of products,
production process, regulatory environment, customers and distribution methods there are no reportable segment(s)
other than “Paints and Coatings”.

The Business Process and Risk Management Committee of the Company, approved by the Board of Directors and Audit
Committee performs the function of allotment of resources and assessment of performance of the Company. Considering
the level of activities performed, frequency of their meetings and level of finality of their decisions, the Company has
identified that Chief Operating Decision Maker function is being performed by the Business Process and Risk Management
Committee. The financial information presented to the Business process and Risk Management Committee in the context
of results and for the purposes of approving the annual operating plan is on a consolidated basis for various products of
the Company. As the Company's business activity falls within a single business segment viz. ‘Paints and Coatings' and
the sales substantially being in the domestic market, the financial statement are reflective of the information required by
Ind AS 108 “Operating Segments”.

Note 51. Fair value hierarchy (contd.)

(d) In determining fair value measurement, the impact of potential climate-related matters, including legislation, which
may affect the fair value measurement of assets and liabilities in the financial statements, as applicable, has been
considered. At present, the impact of climate-related matters is not material to the Company's financial statements.

Note 52. Financial risk management objectives and policies

The Company's principal financial liabilities, other than derivatives, comprise borrowings, leases and trade & other payables.
The main purpose of these financial liabilities is to finance the Company’s working capital requirements . The Company has
various financial assets such as trade receivables, loans, investments, short-term deposits and cash & cash equivalents,
which arise directly from its operations. The Company may enter into derivative transactions by way of forward exchange
contracts to hedge its payables.

Risk Management Framework

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s Board of Directors oversees
the management of these risks. The Company’s Board of Directors is supported by the Business Process and Risk
Management Committee (BPRMC) that advises on financial risks and the appropriate financial risk governance framework
for the Company. The BPRMC provides assurance to the Company’s Board of Directors that the Company’s financial
risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with the Company’s policies and risk objectives. All derivative activities for risk management
purposes are carried out by personnels that have the appropriate skills, experience and supervision. It is the Company’s
policy that no trading in derivatives for speculative purposes may be undertaken. The Board has taken all necessary
actions to mitigate the risks identified on the basis of the information and situation present. The Board of Directors reviews
and agrees policies for managing each of these risks, which are summarised below:

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market factors. Market risk comprises three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk , liquidity risk and commodity risk. Financial instruments affected by market risk
include loans and borrowings, deposits, investments and financial derivative.

The sensitivity analysis in the following sections relate to the position as at March 31,2026 and March 31,2025.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating
interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all
constant at March 31,2026.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other
post-retirement obligations.

The following assumptions have been made in calculating the sensitivity analyses:

> The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks.
This is based on the financial assets and financial liabilities held at March 31,2026 and March 31,2025

> The sensitivity of equity is calculated as at March 31, 2026 for the effects of the assumed changes of the
underlying risk.

(ii) Interest rate risk

The Company has incurred short term debt to finance its working capital , which exposes it to interest rate risk.
Borrowings issued at variable rates expose the Company to interest rate risk. Borrowing issued at fixed rates
expose the Company to fair value interest rate risk. The Company's interest rate risk management policy includes
achieving the lowest possible cost of debt financing, while managing volatility of interest rates, applying a prudent
mix of fixed and floating debt through evaluation of various bank loans and money market instruments.

The Company does not have any significant variable rate interest bearing liabilities as at March 31,2026 and March
31,2025, hence there would not be any material impact on pretax profit and pre tax equity of the Company on
account of any anticipated fluctuations in interest.

(iii) Foreign currency risk

The Company has a policy wherein it can enter into foreign exchange forward contracts to manage risk of foreign
exchange fluctuations. These contracts are not designated in hedge relationships and are measured at fair value
through profit or loss. Foreign currency risk is the risk that the fair value or future cash flows of an exposure will
fluctuate because of changes in exchange rates of any currency . The Company's exposure to the risk of changes in
foreign exchange rates relates primarily to the Company's operating activities by way of direct imports or financing
of imports through foreign currency instruments.

There are no outstanding derivative contract as at March 31,2026 and March 31,2025.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD/Euro/JPY/CHF exchange
rates, with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair
value of monetary assets and liabilities. The Company's exposure to foreign currency changes for all other currencies is
not material.

Note 52. Financial risk management objectives and policies (contd.)

(iv) Commodity price risk

The Company doesn't enter into any long term contract with its suppliers for hedging its commodity price risk.

(v) Equity price risk

The Company does not have any investments in listed securities or in Equity Mutual Funds and thereby is not
exposed to any Equity price risk.

(vi) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company has exposure to credit risk arises principally from the Company's
receivables from customers, Investments in mutual funds and Cash and cash equivalents and other bank balances.
Other material balances under financials assets comprises of subsidy receivable which are from state governments
against incentive schemes where the management considers the credit risk to be remote.

The carrying amounts of financial assets and contract assets represent the maximum credit exposure.

Trade receivables and contract assets if any

The concentration of Credit Risk is limited as the customer base is large. There is no customer representing more
than 10% of the total balance of trade receivable. As a practical expedient, the Company computes credit loss
allowances based on a provision matrix. The provision matrix is prepared based on historically observed default
rates over expected life of trade receivable and is adjusted for forward looking estimates. The Company has also
assessed the performance and recoverability of trade receivables. The Company believes that the current value of
trade receivables reflects the fair value/ recoverable values.

Customer credit risk is managed by the management subject to the Company's established policy, procedures and
control relating to customer credit risk management. Individual credit limits are defined in accordance with credit
quality of customers, as assessed by the management. Outstanding customer receivables are regularly monitored
and corrective actions are taken, as required.

Investments in Mutual Funds

Investments is managed by the Company's treasury department in accordance with the Company's policy.
Investments of surplus funds are made only with approved counterparties and within credit limits assigned to
each counterparty. Counterparty credit limits are reviewed by the Company's Board of Directors on an annual
basis, and may be updated throughout the year subject to approval of the Company's Business Process and Risk
Management Committee. The limits are set to minimize the concentration of risks and therefore mitigate financial
loss through counterparty's potential failure to make payments.

Cash and cash equivalents and other bank balances

The Company held cash and cash equivalents and other bank balances of INR 206.95 crores at 31 March 2026
(31 March 2025: INR 365.85 crores). The cash and cash equivalents and other bank balances are held with bank
and financial institution counterparties. The Company considers that its cash and cash equivalents have low credit
risk based on the external credit ratings of the counterparties.

(vii) Liquidity risk

The Company monitors its risk of a shortage of funds using a liquidity planning analysis.

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of
bank overdrafts, cash credit facilities and buyers' credit facilities. The Company assessed the concentration of risk
with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of
sources of funding and debt.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments:

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

The above ratio is within the company's acceptable range.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31,
2026 and March 31,2025.

Note 55.A. Additional regulatory information required by Schedule III to the
Companies Act, 2013

(i) The Company does not have any benami property held in its name. No proceedings have been initiated on or are
pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and the Rules made thereunder.

Note 55. A. Additional regulatory information required by Schedule III to the
Companies Act, 2013 (contd.)

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

(iii) There is no income surrendered or disclosed as income during the year in tax assessments under the Income
Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.

(iv) The Company has not traded or invested in crypto currency or virtual currency during the year.

(v) The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of
Companies beyond the statutory period.

(vi) The Company has complied with the number of layers prescribed under (87) of section 2 of the Companies Act,
2013 read with the Companies (Restriction on Number of Layers) Rules, 2017.

(vii) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with
the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Parent Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(ix) The Company does not have any transactions with companies struck off.

(x) Quarterly returns or statements of current assets filed by the Company with the banks in connection with the
working capital limit sanctioned are in agreement with the books of accounts.

Note 55.B. Disclosure as per Section 186 of the Companies Act, 2013

The details of loans, guarantees and investments under Section 186 of the Companies Act, 2013 read with the Companies
(Meetings of Board and its Powers) Rules, 2014 are as follows:

(i) Details of Investments made are given in Note 7.

(ii) Details of Loans given are disclosed in Note 9 and Note 18.

(iii) Details of Guarantees given are disclosed in Note 48(b)(iii).

The Company has not granted loans and advances in the nature of loans to companies, firms, limited liability partnerships
or any other parties other than as mentioned above.

Note 56.

Till the previous financial year, the Company complied with the requirements of audit trail except for the following:

a) The Company used accounting software (Oracle) for maintaining its books of account which had a feature of
recording audit trail (edit log) facility and the same operated throughout the previous year for all relevant transactions
recorded in the software except that audit trail feature was not enabled in the Oracle application for direct changes
to data in certain database tables for part of the previous year i.e., from April 01,2024 till March 11,2025. Further
no instance of audit trail feature being tampered with was noted in respect of accounting software where the audit
trail was been enabled.

b) The Company used a payroll software (Darwin Box) for part of the previous year (April 01,2024 - June 30, 2024)
which was operated by a third party software service provider, for maintaining its books of account. Management
was not in possession of Service Organisation Controls report to determine whether audit trail feature of the
said software was enabled and operated throughout the previous year for all relevant transactions recorded in
the software or whether there were any instances of the audit trail feature being tampered with, in respect of
the accounting software where the audit trail was enabled. Additionally, in the absence of Service Organisation
Controls report, we were unable to assess whether the audit trail was preserved as per the statutory requirements
for record retention.

Note 57.

All figures are in Rupees Crores unless otherwise stated. Figures marked with (*) are below the rounding off norm adopted

by the Company.

Note 58.

There are no material non adjusting events after the reporting period till the date of issue of these Standalone financial

statements which requires disclosures in the Standalone financial statements.