p) Provisions and Contingent liabilities

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 of the
amount of the obligation. The expense relating
to a provision is presented in the statement of
profit and loss net of any reimbursement.

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.

ii) Contingent liabilities

Contingent liability is a possible obligation that
arises from past events and the existence of
which will be confirmed only by the occurrence
or non-occurrence of one are more uncertain
future events not wholly within the control of
the company, or is a present obligation that
arises from past event but is not recognised
because either it is not probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation, or a reliable
estimate of the amount of the obligation cannot
be made. Contingent liabilities are disclosed and
not recognised.

iii) Decommissioning liability ("Asset retirement
obligation”)

The Company records a provision for
decommissioning costs of leasehold premises.
Decommissioning costs are provided at the
present value of expected costs to settle the
obligation using estimated cash flows and are
recognized 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
recognized 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.

q) 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.

Financial assets

Initial recognition and measurement:

Financial assets are classified, at initial recognition,
as subsequently measured at amortised cost,
fair value through other comprehensive income
(OCI), and fair value through profit or loss. The
classification of financial assets at initial recognition
depends on the financial asset's contractual cash
flow characteristics and the Company's business
model for managing them.

All financial assets are recognised initially at fair value
plus, (in the case of financial assets not recorded at
fair value through standalone statement of profit or
loss,) transaction costs that are attributable to the
acquisition of the financial asset. Transaction costs
of financial assets carried at fair value through profit
or loss expensed off in the statement of profit & loss.
Trade receivable that does not contain a significant
financing component are measured at transaction
price.

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.

The Company's business model for managing
financial assets refers to how it manages its financial
assets in order to generate cash flows. The business
model determines whether cash flows will result
from collecting contractual cash flows, selling the
financial assets, or both. Financial assets classified
and measured at amortised cost are held within a
business model with the objective to hold financial
assets in order to collect contractual cash flows while
financial assets classified and measured at fair value
through OCI are held within a business model with

the objective of both holding to collect contractual
cash flows and selling.

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

Subsequent Measurement

Debt instruments: Subsequent measurement of
debt instruments depends on the Company's
business model for managing the asset and the cash
flow characteristics of the asset. There are three
measurement categories into which the Company
classifies its debt instruments:

A) Amortised cost: Assets that are held for
collection of contractual cash flows those cash
flows represent solely payments of principal
and interest are measured at amortised cost.
Interest income from these financial assets is
included in finance income using the effective
interest rate method. Any gain or loss arising
on derecognition, and impairment losses (if
any) are recognised directly in profit or loss.
The Company's financial assets subsequently
measured at amortised cost includes trade
receivables, loans and certain other financial
assets etc.

B) Fair value through other comprehensive income
(FVOCI): Assets that are held for collection
of contractual cash flows and for selling the
financial assets, where the assets' cash flows
represent solely payments of principal and
interest, are measured at FVOCI. Movements
in the carrying amount are taken through OCI
except for the recognition of impairment gains
or losses, interest income and foreign exchange
gains and losses which are recognised in
profit and loss. When the financial asset is
derecognised, the cumulative gain or loss
previously recognised in OCI is reclassified from
equity to profit or loss.

C) Fair value through profit or loss: Assets that
do not meet the criteria for amortised cost or
FVOCI

are measured at fair value through profit or
loss. A gain or loss on a debt investment that
is subsequently measured at fair value through
Profit or loss is recognised in profit or loss.

Equity instruments

The Company subsequently measures all equity
investments in scope of Ind AS 109 at fair value, with
net changes in fair value recognised in statement of
profit and loss

Derecognition

A financial asset (or, where applicable, a part of
a financial asset or part of a Company of similar
financial assets) is primarily derecognised (i.e.
removed from the Company's balance sheet) when:

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

ii) The company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under
a 'pass-through' arrangement; and either (a)
the company has transferred substantially all
the risks and rewards of the asset, or (b) the
company has neither transferred nor retained
substantially all the risks and rewards of the
asset, but has transferred control of the asset.

When the company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the
company continues to recognise the transferred
asset to the extent of the company's continuing
involvement. In that case, the company also
recognises an associated liability. The transferred
asset and the associated liability are measured on a
basis that reflects the rights and obligations that the
company has retained.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
company could be required to repay.

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:

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

ii) Trade receivables or any contractual right to
receive cash or another financial asset that
result from transactions that are within the
scope of Ind AS 115"

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 recognizes impairment loss
allowance based on lifetime ECLs at each reporting
date, right from its initial recognition.

In respect of other financial assets ECLs are
recognised in two stages. For credit exposures for
which there has not been a significant increase in
credit risk since initial recognition, ECLs are provided
for credit losses that result from default events that
are possible within the next 12-months (a 12-month
ECL). For those credit exposures for which there
has been a significant increase in credit risk since
initial recognition, a loss allowance is required for
credit losses expected over the remaining life of the
exposure, irrespective of the timing of the default (a
lifetime ECL).

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 (i.e., all cash shortfalls),
discounted at the original EIR. When estimating the
cash flows, an entity is required to consider:

i) 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.

ii) 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 as at amortised cost,
contractual revenue receivables: 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.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit and
loss, loans and borrowings, 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.

Subsequent measurement

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

Financial liabilities at amortised cost (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 profit or 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. This category generally
applies to borrowings.

Financial liabilities at fair value through profit and loss

Financial liabilities at fair value through profit or loss
include financial liabilities held for trading or 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 profit and loss

Financial liabilities designated upon initial recognition
at fair value through profit and loss are designated
as such at the initial date of recognition, and
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 risk
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.

Derecognition

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 derecognition 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.

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.

r) Impairment of non-financial assets

The Company assesses, at each reporting date,
whether there is an indication that an asset may be
impaired. If any indication exists, or when annual
impairment testing for an asset is required, the
company estimates the asset's recoverable amount.
An asset's recoverable amount is the higher of an
asset's or cash-generating unit's (CGU) fair value less
costs of disposal and its value in use. Recoverable
amount is determined for an individual asset, unless
the asset does not generate cash inflows that are
largely independent of those from other assets or
Group of assets. When the carrying amount of an
asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to
its recoverable amount.

In assessing value in use, the estimated future cash
flows are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions
are taken into account. If no such transactions can
be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation
multiples, quoted share prices for publicly traded
companies or other available fair value indicators.

The Company bases its impairment calculation on
detailed budgets and forecast calculations, which
are prepared separately for each of the Company's
CGUs to which the individual assets are allocated.
These budgets and forecast calculations generally
cover a period of five years. For longer periods, a
long-term growth rate is calculated and applied
to project future cash flows after the fifth year. To
estimate cash flow projections beyond periods
covered by the most recent budgets/forecasts, the
company extrapolates cash flow projections in the
budget using a steady or declining growth rate for
subsequent years, unless an increasing rate can
be justified. In any case, this growth rate does not
exceed the long-term average growth rate for the
products, industries, or country or countries in which
the entity operates, or for the market in which the
asset is used.

Impairment losses are recognised in the statement
of profit and loss.

For assets excluding goodwill, an assessment is
made at each reporting date to determine whether
there is an indication that previously recognised
impairment losses no longer exist or have decreased.

If such indication exists, the Company estimates the
asset's or CGU's recoverable amount. A previously
recognised impairment loss is reversed only if there
has been a change in the assumptions used to
determine the asset's recoverable amount since the
last impairment loss was recognised. The reversal is
limited so that the carrying amount of the asset does
not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined,
net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal
is recognised in the statement of profit and loss
unless the asset is carried at a revalued amount, in
which case, the reversal is treated as a revaluation
increase.

s) 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.

t) Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts (if any) as they are considered an integral
part of the company's cash management.

u) Events occurring after the balance sheet date

Based on the nature of the event, the company
identifies the events occurring between the balance
sheet date and the date on which the standalone
financial statements are approved as 'Adjusting
Event' and 'Non-adjusting event'. Adjustments to
assets and liabilities are made for events occurring
after the balance sheet date that provide additional
information materially affecting the determination
of the amounts relating to conditions existing at
the balance sheet date or because of statutory
requirements or because of their special nature. For

non-adjusting events, the company may provide a
disclosure in the standalone financial statements
considering the nature of the transaction.

2.3(a) Newly applicable standards:

The Ministry of Corporate Affairs has notified
Companies (Indian Accounting Standards)
Amendment Rules, 2025 dated May 07, 2025, to
amend Ind AS 21 relating to Lack of exchangeability
and Companies (Indian Accounting Standards)
Second Amendment Rules, 2025 dated August 13,
2025, to amend Ind AS 7 and Ind AS 107 relating to
Supplier Finance Arrangements, Ind AS 1 relating to
Classification of Liabilities as Current or Non-current
and Non-current Liabilities with Covenants and Ind
AS 12 relating to International Tax Reform—Pillar Two
Model Rules.

These amendments are effective for annual reporting
periods beginning on or after April 01, 2025. The
Company has applied these amendments for the
first-time.

(i) Amendments to Ind AS 21 - Lack of
exchangeability

The amendments specifies how an entity should
assess whether a currency is exchangeable
and how it should determine a spot exchange
rate when exchangeability is lacking. The
amendments also require disclosure of
information that enables users of its financial
statements to understand how the currency
not being exchangeable into the other currency
affects, or is expected to affect, the entity's
financial performance, financial position and
cash flows.

The amendments have no impact on the
Company's financial statements.

(ii) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements

The amendments clarify the characteristics
of supplier finance arrangements and require
additional disclosures of such arrangements. The
disclosure requirements in the amendments are
intended to assist users of financial statements
in understanding the effects of supplier finance
arrangements on an entity's liabilities, cash
flows and exposure to liquidity risk.

The amendments have no impact on the
Company's financial statements.

(iii) Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current

The amendments specify the requirements for
classifying liabilities as current or non-current.
The amendments clarify:

• What is meant by a right to defer settlement

• That a right to defer must exist at the end of
the reporting period

• That classification is unaffected by the
likelihood that an entity will exercise its
deferral right

• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability not
impact its classification

In addition, an entity is required to disclose
when a liability arising from a loan agreement is
classified as non-current and the entity's right
to defer settlement is contingent on compliance
with future covenants within twelve months.

The amendments have no impact on the
Company's financial statements.

(iv) Amendments to Ind AS 12 - International Tax
Reform—Pillar Two Model Rules

The amendments have been introduced in
response to the OECD's BEPS Pillar Two rules
and include:

• A mandatory temporary exception to the
recognition and disclosure of deferred taxes
arising from the jurisdictional implementation
of the Pillar Two model rules. This mandatory
temporary exception needs to be applied
retrospectively; and

• Disclosure requirements for affected entities
to help users of the financial statements
better understand an entity's exposure to
Pillar Two income taxes arising from that
legislation, particularly before its effective
date.

The amendments have no impact on the
Company's financial statements.

b) Standards issued/notified but not yet effective:

The Ministry of Corporate Affairs has notified
Companies (Indian Accounting Standards) Second

For annual reporting periods beginning on or after
April 01, 2026, any breach of a covenant occurring on
or before the reporting date will require the related
liability to be classified as current in accordance
with Ind AS 1, unless the lender has granted a waiver
of the breach on or before the reporting date and
agreed not to demand repayment for at least 12
months after the reporting date.

The amendments are not expected to have any
impact on the Company's financial statements.

(c) New Income Tax Act

The Government of India has enacted the Income-
tax Act, 2025, replacing the existing Income tax Act,
1961, effective for the financial years beginning on
and after April 01, 2026. Based on management's
assessment, the new legislation will not have any
material impact on the financial statements of the
Company.

14 (b) Nature and purpose of reserves

Securities premium

Securities premium reserve is used to record the premium on issue of shares. 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.

Reimbursement from shareholders

The reimbursement from shareholders refers to the tax-related reimbursement received from shareholder, which has
been accounted for in equity contribution.

Share based payment reserve

The share options based payment reserve is used to recognise the grant date fair value of options issued to employees
under Employee stock option plan.

Retained earning

Retained earnings are the loss that the Company has incurred till date, less any transfers to general reserve, dividends
or other distributions paid to shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit
plans, net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve
available to the Company and eligible for distribution to shareholders, in case where it is having positive balance
representing net earnings till date.

Exchange differences on translating the financial statements of a foreign operation

Exchange differences arising on translation of the foreign operations are recognised in other comprehensive income
as described in accounting policy and accumulated in a separate reserve within equity. The cumulative amount is
reclassified to profit or loss when the net investment is disposed-off.

30 Significant accounting judgements, estimates and assumptions

The preparation of the 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 or liabilities affected in future
periods.

Judgements

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

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.

(a) Share-based payments

Employees of the Company receives remuneration in the form of share based payment transactions,
whereby employees render services as consideration for equity instruments (equity-settled transactions). In
accordance with the Ind AS 102 Share Based Payments, the cost of equity-settled transactions is measured
using the fair value method. 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 expense or credit
recognized in the statement of profit and loss 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.

(b) Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined
using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of the discount rate, 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.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for
plans operated, the management considers the interest rates of government bonds in currencies consistent
with the currencies of the post-employment benefit obligation.

The mortality rate is based on publicly available mortality table . The mortality table tend to change only at
interval in response to demographic changes. Future salary increases and gratuity increases are based on
expected future inflation rates.

Further details about gratuity obligations are given in note 33

(c) Useful Life of property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment loss,
if any. Such cost includes the cost of replacing part of the plant and equipment. When significant
parts of plant and equipment are required to be replaced at intervals, the Company depreciates them
separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost
is recognised in the carrying amount of the plant and equipment as a replacement if the recognition
criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.
Capital work in progress is stated at cost, net of accumulated impairment loss, if any.
Depreciation on all property plant and equipment are provided on a straight line method based on the

estimated useful life of the asset. The management has estimated the useful lives and residual values of
all property, plant and equipment and adopted useful lives based on management's assessment of their
respective economic useful lives. The residual values, useful lives and methods of depreciation of property,
plant and equipment are reviewed at each financial year end and adjusted prospectively. Depreciation on
the assets purchased during the year is provided on pro-rata basis from the date of purchase of the assets.
An item of property, plant and equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising
on Derecognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in the income statement when the asset is derecognised.

(d) Impairment of investments in subsidiaries

The Company reviews its carrying value of investments carried at amortised cost annually, or more frequently
when there is indication for impairment. If the recoverable amount is less than its carrying amount, the
impairment loss is accounted for. Company computes the recoverable value of investment by combining
the similar business, which aligns with evaluating the overall performance and financial health on combined
basis, rather than dissecting it into individual entities. Company estimates the value-in-use of the cash
generating unit (CGU) based on the future cash flows after considering current economic conditions and
trends, estimated future operating results and growth rate and anticipated future economic and regulatory
conditions. The estimated cash flows are developed using internal forecasts. The assumption of discount
rate and terminal growth rate used for the CGU's represent the weighted average cost of capital based on
the historical market returns of comparable companies and industry growth rate respectively.

(e) Impairment of goodwill

The Company estimates the value-in-use of the cash generating unit (CGU) based on the future cash flows
after considering current economic conditions and trends, estimated future operating results and growth rate
and anticipated future economic and regulatory conditions. The estimated cash flows are developed using
internal forecasts. The assumption of discount rate and terminal growth rate used for the CGU's represent
the weighted average cost of capital based on the historical market returns of comparable companies and
industry growth rate respectively.

(f) Loss allowance on trade receivables:

Provision for expected credit losses of trade receivables and contract assets. The Company uses a provision
matrix to calculate ECLs for trade receivables and contract assets. The provision matrix is initially based on
the Company's historical observed default rates. The Company will calibrate the matrix to adjust the historical
credit loss experience with forward-looking information. For instance, if forecast economic conditions (i.e.,
gross domestic product, purchasing managers' index, industrial production) are expected to deteriorate
over the next year which can lead to an increased number of defaults in the multiple sector, the historical
default rates are adjusted. At every reporting date, the historical observed default rates are updated and
changes in the forward-looking estimates are analysed. The assessment of the correlation between historical
observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs
is sensitive to changes in circumstances and of forecast economic conditions. The Company's historical
credit loss experience and forecast of economic conditions may also not be representative of customer's
actual default in the future. The information about the ECLs on the Company's trade receivables and contract
assets is disclosed in Note 7. The Company considers a financial asset in default when contractual payments
are 90 days past due. However, in certain cases, the Company may also consider a financial asset to be in
default when internal or external information indicates that the Company is unlikely to receive the outstanding
contractual amounts in full before taking into account any credit enhancements held by the Company. A
financial asset is written off when there is no reasonable expectation of recovering the contractual cash
flows.

(g) Revenue Recognition (Ind AS 115)

The allocation of the transaction price over timing of satisfaction of performance obligation:
Under the revenue recognition standard Ind AS 115 revenue has been recognised when control over the
services transfers to the customer i.e., when the customer has the ability to control the use of the transferred
services provided and generally derive their remaining benefits. The revenue from logistics service is
recognised over a period of time

The Company has recognized the revenue in respect of undelivered shipments to the extent of completed
activities undertaken with respect to delivery. At period end, the Company, based on its tracking systems
classifies the ongoing shipments in transit into stages of delivery (first mile, linehaul, last mile) and is
recognized using the input method, specifically based on the cost incurred relative to the total expected
cost as they are satisfied over the contract term, which generally represents the transit period including the
incomplete trips at the reporting date.

(h) Leases

The lease payments shall include fixed payments, variable lease payments, residual value guarantees and
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option
to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to
reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and
remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised
in-substance fixed lease payments.

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

31. Investment in Subsidiary

a) Acquisition during the year ended March 31, 2026

Pursuant to the approval of the Board of Directors on April 05, 2025, for the acquisition of shares of Ecom Express
Limited ("Ecom"), the Company has subsequently completed the acquisition of 99.87% of Ecom's issued and
paid-up share capital on a fully diluted basis for a purchase consideration of approximately ' 13,696.36 million.
Consequently, Ecom has become a subsidiary of the Company with effect from July 18, 2025. Further, the
Company acquired the remaining shares constituting 0.13% of stake, making Ecom a wholly-owned subsidiary
with effect from December 10, 2025.

32. Commitments and contingencies

A) Capital and other commitments

a) Capital commitment (net of advances) as on March 31, 2026 is ' 1,373.86 million (March 31, 2025: ' 615.65
million).

33. Gratuity and other post-employment benefit plans

(a) Gratuity

The Company has a defined benefit gratuity plan. Effective November 21, 2025, The gratuity plan of India is
governed by the Code on Social Security, 2020 (replacing the existing Payment of Gratuity Act, 1972). Under
the Code on Social Security, 2020, employee who has completed five years of service (one year in case of Fixed
Term Employee) is entitled to specific benefit. The level of benefits provided depends on the employee's length
of service and salary at retirement age. During the year ended March 31,2026, Company formed a gratuity fund
trust and the Company makes contribution to Delhivery Limited Gratuity Fund. Trustees administer contributions
made to the Trusts and contributions are invested in schemes with Insurers as permitted by Indian law. The
gratuity plan provides a lump sum payment to vested employees at retirement, withdrawal, resignation and death
of an employee. The gratuity liability is calculated on the basis of fifteen days salary (i.e. last drawn basic salary)
for each completed year of service subject to completion of four years and two hundred and forty days to five
years in service.

The following methods / assumptions were used to estimate the fair values:

i) The carrying value of trade receivables, cash and cash equivalents, trade payables, security deposits, lease
liabilities and other current financial assets and other current financial liabilities measured at amortised cost
approximate their fair value due to the short-term maturities of these instruments.

ii) Fair value of quoted mutual funds and debt instruments is based on quoted market prices at the reporting date.

iii) Fair value of unquoted investments is estimated based on discounted cash flows valuation technique using the
cash flow projections, discount rate and credit risk.

36.2 (a) Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Company's assets and
liabilities.

Level 1 - Quoted prices in active market for identical assets or liabilities

Level 2 - Input other than quoted prices included within level 1 that are observable for the assets and liabilities, either
directly (i.e. as prices) or indirectly i.e. derived from prices)

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis
as of March 31, 2026:

36.2 (c) Fair value hierarchy

Following table describes the valuation techniques used and key inputs thereto for the level 3 financial assets /
liabilities as of March 31, 2026 and March 31, 2025:

March 31, 2025

During the year ended March 31, 2025 Boxseat Ventures Private Limited have initiated liquidation process, company
have accounted fair value loss for the investment made in Boxseat Ventures Private Limited.

36.3 Financial risk management objectives and policies
Financial risk management

Financial risk factors

The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The
Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential Company's
exposure to credit risk is influenced mainly by the individual characteristic of each customer.

A) 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 prices. Market risk comprises three types of risk: interest rate risk, foreign currency
risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by
market risk include loans and borrowings, deposits. The Company has in place appropriate risk management
policies to limit the impact of these risks on its financial performance. The Company ensures optimization of
cash through fund planning and robust cash management practices.

i) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. As majority of the financial assets and liabilities of the
Company are either non-interest bearing or fixed interest bearing instruments, the Company's net
exposure to interest risk is negligible.

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 entire revenue and majority of the expenses of the
Company are denominated in Indian Rupees.

Management considers currency risk to be low and does not hedge its currency risk. As variations
in foreign currency exchange rates are not expected to have a significant impact on the results of
operations, a sensitivity analysis is not presented.

(B) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The
Company is exposed to credit risk from its operating activities (primarily trade receivables and unbilled
receivables) and from its financing activities, including deposits with banks and financial institutions and
other financial instruments. Trade receivables are typically unsecured and are derived from revenue earned
from customers primarily located in India. Credit risk has always been managed by the Company through
credit approvals and continuously monitoring the credit worthiness of customers to which the Company
grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company
uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix
to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account
available external and internal credit risk factors such as the Company's historical experience for customers.
The Company has established an allowance for impairment that represents its expected credit losses in
respect of trade and other receivables. The management uses a simplified approach for the purpose of
computation of expected credit loss for trade receivables and 12 months expected credit loss for other
receivables. An impairment analysis is performed at each reporting date on an individual basis for major
parties. In addition, a large number of minor receivables are combined into homogeneous categories and
assessed for impairment collectively. The calculation is based on historical data of actual losses. Further
100% allowance has been provided as per expected credit loss for trade receivable having ageing more
then 3 year.

(C) Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities
in the same geographical region, or have economic features that would cause their ability to meet contractual
obligations to be similarly affected by changes in economic, political or other conditions. Concentrations
indicate the relative sensitivity of the Company's performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific
guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are
controlled and managed accordingly.

The Company's largest customer accounted for approximately 19.23% of net sales for the year ended March
31, 2026 (March 31, 2025: 17.71%).

(D) Liquidity risk

Ultimate responsibility for liquidity risk management rests with the Board, which has established an
appropriate liquidity risk management framework for the management of the Company's short, medium and
long-term funding and liquidity management requirements. The Company's principal sources of liquidity are
cash and cash equivalents and the cash flow that is generated from operations. The Company manages
liquidity risk by maintaining adequate cash reserves, by continuously monitoring forecast and actual cash
flows, and by matching the maturity profiles of financial assets and liabilities.

36.4 Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium
and all other equity reserves attributable to the equity holders of the Company. The primary objective of the
Company's capital management is to maximise the shareholder value.

The Company's objectives when managing capital are to:

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders; and

• Maintain an optimal capital structure to reduce the cost of capital.

The Company monitors capital by regularly reviewing the capital structure. As a part of this review, the Company
considers the cost of capital and the risks associated with the issued share capital. In the opinion of the Directors,
the Company's capital risk is low.

37. Share-based payments

The Company provides share-based payment schemes to its employees. During the year ended March 31, 2026
and March 31,2025, four employee stock option plan (ESOP) and one stock appreciation plan were in existence.
The relevant details of the schemes and the grant are as below:

General Employee Share-option Plan (GESP): Delhivery Employees Stock Option Plan, 2012

On September 28, 2012, the board of directors approved the Delhivery Employees Stock Option Plan, 2012 for
issue of stock options to the key employees and directors of the company. According to the scheme 2012, it
applies to bona fide confirmed employees/directors and who are in whole - time employment of the company
and as decided by the board of directors of the company or appropriate committee of the board constituted by
the board from time to time. The options granted under the scheme shall vest not less than one year and not
more than four years from the date of grant of options. Once the options vest as per the scheme, they would be
exercisable by the option grantee at any time and the equity shares arising on exercise of such options shall not
be subject to any lock-in period.

Delhivery Employees Stock Option Plan III, 2020

The Plan has been formulated and approved on January 25, 2021 by the Board of Directors ("Board") and
approved on February 01, 2021 by the shareholders of Delhivery Limited (the "Company"). The Plan came into
force on February 01, 2021 and shall continue to be in force until - (i) its termination by the Board; or (ii) the date
on which all of the Options available for issuance under the Plan have been Exercised.

The Options granted under the Plan shall vest as per the schedule determined by the Board / ESOP Committee.
Vesting of Options shall be subject to continued / uninterrupted employment with the company and completion
of a minimum period of 1 year from the date of the grant of the Options and shall vest at the discretion of the
Board / ESOP Committee on the basis of the performance of the Company or any other transformative event as
decided by the Board / ESOP Committee. Any remaining unvested Options that have not vested in accordance
with this sub-clause shall automatically lapse. The vesting date or conditions for vesting shall be specified in the
option agreement or grant letter between each Eligible Employee and the Company, unless determined otherwise
by the Board / ESOP Committee from time to time.

Delhivery Employees Stock Option Plan IV, 2021

The Plan has been formulated and approved on September 24, 2021 by the Board of Directors ("Board") and
approved on September 29, 2021 by the shareholders of Delhivery Limited (the "Company"). The Plan shall be
deemed to have come into force on September 29, 2021 and shall continue to be in force until -

(i) its termination by the Board; or

(ii) the date on which all of the options available for issuance under the plan have been exercised.

The options granted under the plan shall vest as per the schedule determined by the Board / ESOP Committee.
Vesting of options shall be subject to continued / uninterrupted employment with the Company and completion
of a minimum period of 1 year from the date of the grant of the options and shall vest at the discretion of the
Board / ESOP committee on the basis of the performance of the Company or any other transformative event as
decided by the Board / ESOP committee. Any remaining unvested options that have not vested in accordance
with this sub-clause shall automatically lapse. The vesting date or conditions for vesting shall be specified in the
option agreement or grant letter between each eligible employee and the Company, unless determined otherwise
by the Board / ESOP committee from time to time.

During the year ended March 31, 2023, Company has granted 25,90,000 stock options convertible into Equity
options vesting of which is milestone base.

During the year ended March 31, 2022, Company has granted 76,00,000 stock options convertible into
Equity Shares out of which vesting of 25,00,000 stock options is time based and 51,00,000 is milestone
based. Vesting of these options is dependent upon the listing of the company on recognized stock exchange
therefore, ESOP expense pertaining to these options will recognized in books after listing of company.
Accordingly, when company got listed on May 24, 2022, vesting of these options has commenced for time based
stock options.

The weighted average remaining contractual life for the stock options outstanding as at March 31,2026 is 2.60 years
(March 31, 2025: NA). The exercise prices for options outstanding at the year end was ' 1 (March 31, 2025: ' 1).
The weighted average fair value for the stock options granted during the year is ' 392.11 (March 31, 2025: NA).

During the year ended March 31, 2026, the Company has recognised expense of ' 822.92 million (March 31,
2025: ' 1,140.73 million)

DELHIVERY STOCK APPRECIATION RIGHT PLAN, 2023

The Plan has been formulated and approved on November 15, 2023. The Plan shall be deemed to have come
into force on December 01, 2023 and shall continue to be in force until -

(i) its termination by the Board; or

(ii) the date on which all of the options available for issuance under the plan have been exercised.

The right granted under the plan shall vest as per terms specified in the Rights Agreement or Grant Letter between each
Employee and the Company / Company Company, unless determined otherwise by the Nomination and Remuneration
Committee from time to time. Any remaining unvested rights that have not vested in accordance with this sub¬
clause shall automatically lapse. The vesting date or conditions for vesting shall be specified in the right agreement

38. Operating Segments

The primary reporting of the Company has been performed on the basis of business segment. Based on
the "management approach" as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision
Maker ('CODM') i.e. Chief Executive Officer of the Company, being the CODM has evaluated of the Company's
performance at an overall level as one segment which is 'Logistics Services' that includes warehousing, last mile
logistics, designing and deploying logistics management systems, logistics and supply chain consulting/advice,
inbound/procurement support and operates in a single business segment based on the nature of the services,
the risks and returns, the organization structure and the internal financial reporting systems. Accordingly, the
figures appearing in these financial statements relate to the Company's single business segment. The Company
has significant operations based in India, hence there are no reportable geographical segments in standalone
financial statements.

41. The Company has not earned net profit in three immediately preceding financial years, therefore, there was no
amount as per section 135 of the Act which was required to be spent on CSR activities in each of the respective
financial years by the Company.

42. On November 21, 2025, Government of India notified provisions of the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working
Conditions Code, 2020, ('Labour Codes') which consolidate twenty-nine existing labour laws into a unified
framework governing employee benefits during employment and post-employment. The Labour Codes, amongst
other things introduces changes, including a uniform definition of wages and enhanced benefits relating to
leave. The Company has assessed the financial implications of these changes which has resulted in increase
in gratuity liability arising out of past service cost and increase in leave liability by ' 203.61 million. Considering
the impact arising out of an enactment of the new legislation is an event of non-recurring nature, the Company
has presented this incremental amount as "Impact of Labour Codes" under "Exceptional Item" in the standalone
financial statements for the year ended March 31, 2026. The Company continues to monitor the developments
pertaining to Labour Codes and will evaluate impact if any on the measurement of liability pertaining to employee
benefits. Draft rules under Labour codes were released by the Ministry of Labour and Employment on December

30, 2025 and are yet to be notified. The financial impact of new labour code, if any, of the remaining provision
will be assessed upon notification of the final rules and their effective dates.

43. The Ministry of Corporate Affairs (MCA) introduced certain requirements, where accounting
software(s) used by the Company should have a feature of recording audit trail of each and every
transaction (effective April 01, 2023). The Company has an IT environment which is adequately
governed with General information technology controls (GITCs) for financial reporting process and the
Company has assessed all of its IT applications that are relevant for maintaining books of accounts.
The Company has used accounting software(s) for maintaining its books of account for the year ended March

31, 2026 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the
year for all relevant transactions recorded in the software.

The Company has not noted any tampering of the audit trail feature in respect of the software for which the
audit trail feature was operating. Additionally, the audit trail that was enabled and operated for the year ended
March 31, 2025 and March 31,2024, has been preserved by the Company as per the statutory requirements for
record retention.

44. Amalgamation of Spoton Logistics Private Limited ('Amalgamating Company', 'Transferor Company') and Spoton
Supply Chain Services Private Limited ('Amalgamating Company', 'Transferor Company') with the Company
('Transferee Company').

The Board of Directors of the Company in its meeting held on February 02, 2024 approved a Scheme of
Amalgamation between Spoton Logistics Private Limited, Spoton Supply Chain Solutions Private Limited and
the Company under section 230-232 of the Companies Act 2013. ("Scheme"). The Hon'ble National Company
Law Tribunal (NCLT) approved the Scheme vide its order dated March 20, 2026 ("Order"). In accordance with
the Scheme and Order, the Appointed Date is April 01, 2025. The Company filed the certified true copy of the
Order with the Registrar of Companies on May 01, 2026 ("Effective Date"). The Scheme came into effect on the
Effective Date and is operative from the Appointed Date, accordingly the impact of the merger has been given
in the standalone financial statement with effect from April 01, 2025. The comparative financial information of
the Company for the year ended March 31, 2025, and as at March 31, 2025 have been restated to comply with
Ind AS 103.

Accounting Treatment

The amalgamation has been accounted under the "pooling of interests method" in accordance with Appendix
C of Ind AS 103 'Business Combinations', at the carrying value of the assets and liabilities of the Transferor
Companies as included in the Consolidated Balance Sheet of the Company as at the beginning of the previous
year. Accordingly, the following accounting treatment has been followed to give effect of the merger:

(a) The assets, liabilities and reserves of the Transferor Companies have been incorporated in the financial
statements at the carrying values as appearing in the financial statement of the Transferee Company.

(b) The identity of the reserves had been preserved and were recorded in the same form and at the carrying
amount as appearing in the standalone financial statements of Amalgamating Company.

(c) The inter-company balances between both the companies had been eliminated.

(d) Financial information had been restated for the accounting impact of merger, as stated above, as if the merger
had occurred from April 1, 2024.

(e) 20,641,094 equity shares of '10 each fully paid in Spoton Logistics Private Limited, held as investment by
the Transferee Company stands cancelled.

(f) The financial information in the financial statements in respect of prior period have been restated as if
business combination had occurred from the beginning of the prior years in the financial statements and
goodwill of ' 13,076.31 has been recognised in the standalone balance sheet of the Company.

(ii) The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

(iv) The Company have not any such 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.

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

(vi) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

- Further except to the transaction mentioned above:

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

(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.

(b) The Company have 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,

48. Impairment testing of subsidiaries

The Company has made long-term strategic investments in certain subsidiary companies, which are in their initial/
developing stage of operation and would generate growth and returns over a period of time. These subsidiaries
have incurred significant expenses for building the market share and operations which have added to the losses
of these entities. The parent has committed to provide support to each of its subsidiaries in the event they are
unable to meet their individual liabilities. Owing to the losses incurred by Delhivery Freight Services Private Limited
and Ecom Express Limited, the Company carried out an impairment assessment basis fair value of the entity
determined by a valuer using discounted future cashflows approach. Based on the review of the performance
and future plan of the subsidiary companies, the Company concluded that no impairment except as disclosed
in note 27 is required as on March 31, 2026. The same was noted by the Audit Committee and the Board.
During the year ended March 31, 2026 and March 31, 2025, the Company conducted impairment tests of
its investments in subsidiaries. The recoverable value of the investments in subsidiaries are estimated using
Discounted cash flow method ("DCF"). The significant unobservable inputs used in the estimation of recoverable
value together with a quantitative sensitivity analysis as at March 31, 2026 and March 31, 2025 are as shown
below:

49. Utilisation of IPO funds

During the year ended March 31, 2023, the Company has completed its Initial Public Offer (IPO) of 10,74,97,225
equity shares of face value ' 1 each at an issue price of ' 487 per share (including a share premium of ' 486 per
share). The issue comprised of a fresh issue of 8,21,37,328 equity shares out of which, 8,21,02,165 equity shares
were issued at an offer price of ' 487 per equity share to all allottees and 35,163 equity shares were issued at
an offer price of ' 462 per equity share, after a discount of ' 25 per equity share to the employees (inclusive
of the nominal value of ' 1 per equity share) aggregating to ' 40,000 million and offer for sale of 2,53,59,897
equity shares by selling shareholders aggregating to ' 12,350.00 million. Pursuant to IPO, the equity shares of the
Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on May 24, 2022.