g. Provisions, contingent liabilities and contingent
assets
Provisions

Provisions are recognised when the Company has a
present legal or constructive obligation as a result of a
past events, 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.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects current market assessments of the
time value of money and 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.

Contingent liabilities

Contingent liabilities are possible obligations that arise
from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one
or more uncertain future events not wholly within the
control of the Company. Where it is not probable that
an outflow of economic benefits will be required, or the
amount cannot be estimated reliably, the obligation is
disclosed as a contingent liability, unless the probability
of outflow of economic benefits is remote.

Contingent assets

Contingent asset is a possible asset that arises from past
events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company.
Contingent assets are not recognised in standalone
financial statements since this may result in the recognition
of income that may never be realised. However, when the
realisation of income is virtually certain, then the related
asset is not a contingent asset and is recognised.

Employee benefits
Short term employee benefits

Employee benefit liabilities such as salaries, wages and
bonus, etc. that are expected to be settled wholly within
twelve months after the end of the reporting period in
which the employees render the related service are
recognised in respect of employee's services up to
the end of the reporting period and are measured at
an undiscounted amount expected to be paid when the
liabilities are settled.

Post-employment benefit plans
Defined Contribution Plans

The Company pays provident fund contributions to the
appropriate government authorities. The Company has

no further payment obligations once the contributions
have been paid. The contributions are accounted for
as defined contribution plans and the contributions are
recognised as employee benefits expense when they
are due.

Defined benefit plans

The Company has an obligation towards gratuity,
a defined benefit retirement plan covering eligible
employees. The plan provides for a lump sum payment
to vested employees at retirement, death while in
employment or on termination of employment, of an
amount based on the respective employee’s salary
and the tenure of employment. Vesting occurs as per
relevant laws and regulations.

Gratuity liability is partially funded by the Company
through annual contribution to DIL Employees Gratuity
Trust (the 'Trust') against ascertained gratuity liability.
The Trustees administer contributions made to the Trust
and contributions are invested in a scheme with the Life
Insurance Corporation of India as permitted by the laws
of India.

The liability recognised in the Balance Sheet in
respect of defined benefit gratuity plan is the present
value of the defined benefit obligation at the end of
the reporting period. The defined benefit obligation
is calculated by actuary using the projected unit
credit method.

The present value of the defined benefit obligation is
determined by discounting the estimated future cash
outflows by reference to market yields at the end of the
reporting period on government bonds that have terms
approximating to the terms of the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined benefit
obligation. This cost and other costs are included in
employee benefits expense in the Statement of profit
and loss.

Remeasurements of the net defined benefit liability,
which comprise actuarial gains and losses, the return
on plan assets (excluding interest) and the effect of the
asset ceiling (if any, excluding interest), are recognised
in other comprehensive income and transferred to
retained earnings.

Changes in the present value of the defined benefit
obligation resulting from settlement or curtailments are
recognised immediately in Statement of profit and loss
as past service cost.

The Company's net obligation in respect of defined
benefit plans is calculated by estimating the amount
of future benefit that employees have earned in the
current and prior periods, discounting that amount and
deducting the fair value of any plan assets.

Other long term employee benefits
Compensated absences

The Company's net obligation in respect of compensated
absences is the amount of benefit to be settled in
future, that employees have earned in return for their
service in the current and previous years. The benefit is
discounted to determine its present value. The obligation
is measured on the basis of an actuarial valuation using
the projected unit credit method. Remeasurements are
recognised in Statement of profit and loss in the period
in which they arise.

i. Share based payments

The grant-date fair value of equity-settled share-based
payment arrangements granted to eligible employees of
the Company and its subsidiaries under the Employee
Stock Option Scheme ('ESOS') is recognised as an
employee stock option scheme expense in the statement
of profit and loss, in relation to options granted to
employees of the Company (over the vesting period of the
awards) and in relation to options granted to employees
of subsidiaries, the amount is disclosed under other
financial assets (as receivables from subsidiaries), with a
corresponding increase in other equity.

The amount recognised as an expense /recoverable
from subsidiaries is adjusted to reflect the number of
awards for which the related service and non-market
performance conditions are expected to be met, such
that the amount ultimately recognised is based on the
number of awards that meet the related service and
non-market performance conditions at the vesting
date. The increase in equity recognised in connection
with a share based payment transaction is presented in
the "Employee stock options outstanding account", as
separate component in other equity. For share-based
payment awards with market conditions, the grant-date
fair value of the share-based payment is measured
to reflect such conditions and there is no true-up for

differences between expected and actual outcomes.
At the end of each period, the Company revises its
estimates of the number of options that are expected
to be vested based on the non-market performance
conditions at the vesting date.

If vesting periods or other vesting conditions apply,
the expense is allocated over the vesting period, based
on the best available estimate of the number of share
options expected to vest. Upon exercise of share options,
the proceeds received, net of any directly attributable
transaction costs, are allocated to share capital up to
the nominal (or par) value of the shares issued with any
excess being recorded as share premium.

In case of forfeiture/lapse of vested options, the reserve
amount is transferred within other equity from employee
stock options outstanding account to retained earnings.

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

j. Income taxes

Income tax expense comprises of current tax and
deferred tax. It is recognised in the Standalone
Statement of profit and loss except to the extent that
it relates to items recognised in other comprehensive
income or directly in equity.

Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect
of previous years. The amount of current tax reflects the
best estimate of the tax amount expected to be paid or
received after considering the uncertainty, if any relating
to income taxes. It is measured using tax rates enacted or
substantively enacted at the end of the reporting period.

Current tax assets and current tax liabilities are offset
only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the
asset and settle the liability on a net basis.

Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.

Deferred tax liabilities are recognised for all taxable
temporary differences. Deferred tax assets are
recognised to the extent that it is probable that future
taxable profits will be available against which they
can be used. The existence of unused tax losses is
strong evidence that future taxable profit may not be
available. Therefore, in case of a history of recent
losses, the Company recognises a deferred tax
asset only to the extent that it has sufficient taxable
temporary differences or there is convincing other
evidence that sufficient taxable profit will be available
against which such deferred tax asset can be realised.
Deferred tax assets - unrecognised or recognised, are
reviewed at each reporting date and are recognised /
reduced to the extent that it is probable / no longer
probable respectively that the related tax benefit will
be realised.

Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset is
realised or liability is settled, based on the laws that have
been enacted or substantively enacted by the reporting
date.

The measurement of deferred tax reflects the tax
consequences that would follow from the manner in
which the Company expects, at the reporting date, to
recover or settle the carrying amount of its assets and
liabilities.

Deferred tax assets and deferred tax liabilities are offset
only if there is a legally enforceable right to offset
current tax liabilities and assets levied by the same tax
authorities.

k. Foreign currency transactions and translations

Monetary and non-monetary transactions in foreign
currencies are initially recorded in the functional
currency of the Company at the exchange rates at the
date of the transactions.

Monetary foreign currency assets and liabilities
remaining unsettled on reporting date are translated
at the rates of exchange prevailing on reporting date.
Gains / (losses) arising on account of realization /
settlement of foreign exchange transactions and on
translation of monetary foreign currency assets and
liabilities are recognised in the Statement of profit and
loss.

Non-monetary items that are measured at fair value in a
foreign currency are translated using the exchange rates
at the date when the fair value was determined. Translation
differences on assets and liabilities carried at fair value are
reported as part of the fair value gain or loss.

l. Revenue recognition and other income

Under Ind AS 115 - Revenue from Contracts with
Customers, revenue is recognised upon transfer of
control of promised goods or services to customers.
Revenue is measured at the transaction price agreed
with the customers received or receivable, excluding
discounts, incentives, performance bonuses, price
concessions, amounts collected on behalf of third
parties, or other similar items, if any, as specified in
the contract with the customer. Revenue is recorded
provided the recovery of consideration is probable and
determinable.

Sale of products

Revenue from the sale of products is recognised at a
point in time, upon transfer of control of products to
the customers which coincides with their delivery and
is measured at transaction price received/receivable, net
of discounts, amount collected on behalf of third parties
and applicable taxes.

Revenue from outdoor catering services is recognised
on completion of the respective services agreed to be
provided, the consideration is reliably determinable and
no significant uncertainty exists regarding the collection.
The amount recognised as revenue is net of applicable
taxes.

Service income and management fees

Revenue from marketing support services, management
fee and auxiliary and business support services are
in terms of agreements with the customers and are
recognised on the basis of satisfaction of performance
obligation over the duration of the contract from the
date the contracts are effective or signed provided the
consideration is reliably determinable and no significant
uncertainty exists regarding the collection. The amount
recognised as revenue is net of applicable taxes.

Rental income

Revenue from rentals is recognised on straight-line
basis over the period of the contract provided the
consideration is reliably determinable and no significant

uncertainty exists regarding the collection. The amount
recognised as revenue is net of applicable taxes.

Scrap sale

Sale of scrap is recognised upon transfer of control of
products to the customers which coincides with their
delivery to customer.

Interest income

Interest income on financial assets (including deposits
with banks) is recognised using the effective interest
rate method.

Dividend income

Dividend income is recognised when the Company’s
right to receive the payment has been established.

Incentives

The Company is eligible for certain benefits based on
the number of stores opened under the development
agreement entered with the franchisor. The
reimbursements (incentives) are recognized only when,
it is virtually certain that they will be received and are
netted off against related expenses over the period of
expected benefits. Unamortized incentives are presented
as “deferred incentives’ in the standalone financial
statements.

Contract assets and contract liabilities

Contract asset is the right to consideration in exchange
for goods or services transferred to the customer.
Contract liabilities are on account of the advance
payment received from customer for which performance
obligation has not yet been completed.

While disclosing the aggregate amount of transaction
price yet to be recognised as revenue towards
unsatisfied (or partially satisfied) performance
obligations, along with the broad time band for the
expected time to recognise those revenues, the
Company has applied the practical expedient in Ind AS
115. Accordingly, the Company has not disclosed the
aggregate transaction price allocated to unsatisfied
(or partially satisfied) performance obligations which
pertain to contracts where revenue recognised
corresponds to the value transferred to customer
typically involving time and material, outcome based
and event based contracts.

m. Fair value measurement

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

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

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

The principal or the most advantageous market must be
accessible to / by the Company.

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

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

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

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

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

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

n. 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

i. Recognition and initial measurement

Debt instruments are initially recognised when they
are originated. All other financial assets are initially
recognised when the Company becomes a party
to the contractual provisions of the instrument.
All financial assets are initially measured at fair
value plus, for an item not at fair value through
Statement of profit and loss, transaction costs that
are attributable to its acquisition or use.

Trade receivables are recognised initially at the
transaction price as they do not contain significant
financing components. The group holds the trade
receivables with the objective of collecting the
contractual cash flows and therefore measures
them subsequently at amortised cost using the
effective interest method, less loss allowance.

ii. Classification and subsequent measurement
Classification

For the purpose of initial recognition, the Company
classifies its financial assets in following categories:

• Financial assets measured at amortised cost;

• Financial Asset Measured at fair value through
other comprehensive income (‘FVTOCI’); or

• Financial asset measured at fair value through
Statement of profit and loss (‘FVTPL).

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

A financial asset being ‘debt instrument’ is
measured at the amortised cost if both of the
following conditions are met:

• The financial asset is held within a business
model whose objective is to hold assets for
collecting contractual cash flows

• The contractual terms of the financial asset
give rise on specified dates to cash flows that
are Solely Payments of Principal and Interest
(‘SPPI’) on the principal amount outstanding.

A financial asset being ‘debt instrument’
is measured at the FVTOCI if both of the
following criteria are met:

• The asset is held within the business
model, whose objective is achieved both by
collecting contractual cash flows and selling
the financial assets, and

• The contractual terms of the financial asset
give rise on specified dates to cash flows that
are SPPI on the principal amount outstanding.

A financial asset being equity instrument is
measured at FVTPL.

All financial assets not classified as measured at
amortised cost or FVTOCI as described above are
measured at FVTPL.

Subsequent measurement

Financial assets at amortised cost

These assets are subsequently measured at
amortised cost using the effective interest method.
The amortised cost is reduced by impairment
losses, if any. Interest income and impairment are
recognised in the Statement of profit and loss.

Financial assets at FVTPL

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

iii. Derecognition

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 substantially all of the risks
and rewards of ownership of the financial asset
are transferred or in which 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. Any gain or loss on
derecognition is recognised in the Statement of
profit and loss.

iv. Impairment of financial assets (Other than
financial assets measured at fair value)

The Company recognises loss allowances using
the Expected Credit Loss (‘ECL) model for the
financial assets which are not fair valued through
Statement of profit and loss. Loss allowance for
trade receivables with no significant financing
component is measured at an amount equal to
lifetime ECL. For all other financial assets, expected
credit losses are measured at an amount equal to the
12-month ECL, unless there has been a significant
increase in credit risk from initial recognition, in
which case those financial assets are measured at
lifetime ECL. The changes (incremental or reversal)
in loss allowance computed using ECL model, are
recognised as an impairment gain or loss in the
Statement of profit and loss.

Financial liabilities

I. Recognition and initial measurement

All financial liabilities are initially recognised
when the Company becomes a party to the
contractual provisions of the instrument. All
financial liabilities are initially measured at fair
value minus, except for an item not at fair
value through Statement of profit and loss,
transaction costs that are attributable to the
liability.

II. Classification and subsequent
measurement

Financial liabilities are classified as measured
at amortized cost or FVTPL.

A financial liability is classified as FVTPL if it is
classified as held-for-trading, or it is a derivative
or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at
fair value and net gains and losses, including
any interest expense, are recognised in the
Statement of profit and loss. Financial Liabilities
at FVTPL includes non-convertible redeemable
Preference shares.

Financial liabilities other than classified
as FVTPL, are subsequently measured at
amortised cost using the effective interest
method. Interest expense are recognised in
Statement of profit and loss. Any gain or loss

on derecognition is also recognised in the
Statement of profit and loss.

III. Derecognition

The Company derecognises a financial
liability when its contractual obligations are
discharged or cancelled, or expire.

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

IV. Offsetting of financial instruments

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

o. Earnings per share

The Company presents basic and diluted earnings per
share (‘EPS’) data for its equity shares. Basic EPS is
calculated by dividing the Statement of profit and loss
attributable to equity shareholders of the Company
by the weighted average number of equity shares
outstanding during the year. Diluted EPS is determined
by adjusting Statement of profit and loss attributable to
equity shareholders and the weighted average number
of equity shares outstanding, for the effects of all dilutive
potential equity shares, which comprise share options
granted to employees.

The number of equity shares and potentially dilutive
equity shares are adjusted retrospectively for all periods
presented for any share splits and bonus shares issues
including for changes effected prior to the approval of
the financial statements by the Board of Directors.

p. Current and non-current classification

All assets and liabilities are classified into current and
non-current.

Assets

An asset is classified as current when it satisfies any of
the following criteria:

• It is expected to be realised in, or is intended for
sale or consumption in, the Company’s normal
operating cycle;

• It is held primarily for the purpose of being traded;

• It is expected to be realised within 12 months after
the reporting date; or

• It is cash or cash equivalent unless it is restricted
from being exchanged or used to settle a liability
for at least 12 months after the reporting period.

Current assets include the current portion of non-current
financial assets. All other assets are classified as non¬
current.

Liabilities

A liability is classified as current when it satisfies any of
the following criteria:

• it is expected to be settled in the Company’s normal
operating cycle;

• It is held primarily for the purpose of being traded;

• it is due to be settled within 12 months after the
reporting period; or

• The Company does not have an unconditional
right to defer settlement of the liability for at least
12 months after the reporting period. Terms of a
liability that could, at the option of the counterparty,
result in its settlement by the issue of equity
instruments do not affect its classification.

Current liabilities include the current portion of non¬
current financial liabilities. All other liabilities are
classified as non-current.

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

Operating cycle

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash or

cash equivalents. Based on the nature of operations and
the time between the acquisition of assets for processing
and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle being a
period of 12 months for the purpose of classification of
assets and liabilities as current and non- current.

q. Investment in subsidiaries

Investment in equity shares of subsidiaries (under Ind
AS 27 - Separate Financial Statements) are carried at
cost, less any impairment in the value of investment.

Investment in preference shares of subsidiaries are
carried at FVTPL, except where the preference shares
meet the definition of equity shares as per Ind AS 32
- ‘Financial Instruments: Presentation’ from the issuer's
perspective (i.e., subsidiary), which are carried at cost,
less any impairment in the value of investment.

r. Cash and cash equivalents

Cash and cash equivalents comprises cash at banks and
on hand, cheques 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.

s. Segment reporting

As the Company business activity primarily falls within
a single business and geographical segment and the
Chief Operating Decision Maker monitors the operating
results of its business units not separately for the
purpose of making decisions about resource allocation
and performance assessment. Segment performance
is evaluated based on profit or loss and is measured
consistently with profit or loss in the standalone financial
statements, thus there are no additional disclosures to
be provided under Ind AS 108 -“Segment Reporting”.
The management considers that the various goods and
services provided by the Company constitutes single
business segment, since the risk and rewards from these
services are not different from one another. The analysis
of geographical segments is based on geographical
location of the customers.

t. Exceptional items

Exceptional items are transactions which due to their
size or incidence are separately disclosed to enable a full
understanding of the company financial performance.

u. Cash flow statement

Cash flows are reported using indirect method, whereby
profit before tax is adjusted for the effects transactions
of a non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows
from regular revenue generating, financing and investing
activities of the Company are segregated. Cash and cash
equivalents in the cash flow comprise cash at bank,
cash/cheques in hand and short-term investments with
an original maturity of three months or less, which are
subject to an insignificant risk of changes in value.

v. Functional and presentation currency

The management has determined the currency of the
primary economic environment in which the Company
operates, i.e., the functional currency, to be Indian
Rupees ('). The standalone financial statements are
presented in Indian Rupees, which is the Company's
functional and presentation currency. All amounts have
been rounded to the nearest millions up to two decimal
places, unless otherwise stated. Consequent to rounding
off, the numbers presented throughout the document
may not add up precisely to the totals and percentages
may not precisely reflect the absolute amounts.

w. Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time.

During the year 2025-26, MCA notified the following
amendments to

1. Ind AS 1, Presentation of Financial Statements,
applicable w.e.f. 01 April 2025 - The amendment
relates to classification of liabilities as current
or noncurrent and non-current liabilities with
covenants. In the context of classifying a liability as
current, it removes the requirement of existence of
a right to defer settlement for at least 12 months
after the reporting date and instead requires
that the said right should exist on the reporting
date and have substance. The amendment also
introduces guidance on classification of liabilities
with covenants. These amendments do not have
an impact on the classification of the Company’s
liabilities as at the balance sheet date.

2. Ind AS 7, Statement of Cash Flows and Ind AS
107, Financial Instruments: Disclosures, applicable
w.e.f. 01 April 2025- the amendment in AS 7
requires to inform users of financial statements
of the existence of supplier finance arrangements
and explain the nature of the arrangements, the
carrying amount of liabilities and the range of
payment due dates. Ind AS 107 has been amended
to add supplier finance arrangements as a factor
that may cause concentration of liquidity risk.
The Company has reviewed the amendments and
based on its evaluation has determined that it
does not have any material impact on its financial
statements.

3. Ind AS 12, International Tax Reform - Pillar Two Model
Rules applicable immediately- The amendments

provide a temporary mandatory relief from deferred
tax accounting for top-up tax and disclose that they
have applied the relief. This relief is immediate and
applies retrospectively. The Company has reviewed
the amendments and based on its evaluation has
determined that it does not have any material impact
on its financial statements.

4. Ind AS 21, Effects of Changes in Foreign Exchange
Rates, applicable w.e.f. 01 April 2025- These
amendments aim to provide clearer guidance on
assessing currency exchangeability and estimating
exchange rates when currencies are not readily
exchangeable. The Company has reviewed the
amendments and based on its evaluation has
determined that it does not have any material
impact on its financial statements.

Note (a): For details regarding impairment assessment of intangible assets - refer note 44.

Note (b): Change in accounting estimate of useful life of franchisee rights

The management had earlier assessed the useful life of franchisee rights to be ten years based on the best available estimates at that point
in time and amortised these assets on straight line basis at the time of acquisition (refer note 44 for details of acquisition). The useful life
was reviewed at each reporting date from such initial recognition and there were no adjustments considered necessary till the 31 March
2024. During the previous year, basis the current state of operations attributable to the operational synergies and expansion in market share
in the acquired territories, the management has carried out a reassessment of useful life of such franchisee rights and has concluded it to
be an asset with indefinite useful life w.e.f. 1 April 2024. In case the same was continued to be amortised over ten years, the depreciation
and amortisation expense for the previous year would have been higher by ' 98.81 and profit for the previous year would have been lower
by the same amount. Further, the financial performance for FY 2025-26 would have been lower by ' 98.81, and the financial performance
of future periods would be lower by ' 502.75.

Note:

i) There are no loans or advances in the nature of loans, which are repayable on demand or given without specifying the terms of repayment.

ii) The Company has not restated loan given to RV Enterprizes Pte. Limited as at reporting date and booked interest for the year, since

the loan has already been impaired in the books of accounts of the Company.

iii) During the year the Company has entered into the supplementary loan agreement with RV Enterprizes Pte. Limited for extension of

repayment terms from one or more tranches before 31 December 2025 to revised repayment term i.e. one or more tranches before

31 March 2027.

Sub notes:

- Trade receivables includes receivables from related parties, refer note 37.

- The carrying amount of trade receivables approximates their fair value is included in note 34.

- The Company's exposure to credit and currency risks, and impairment allowances related to trade receivables is disclosed in note 34.

- The Company has also performed credit risk assessment of their trade receivables as on the reporting dates on individual level.

- Trade receivables includes unbilled due amounting ' 130.02 (31 March 2025: 111.70)

- Includes amounts due, in the ordinary course of business, from companies in which directors of the Holding Company are also directors,
(refer note 37):

RJ Corp Limited

Devyani Food Industries Limited

Lineage Healthcare Limited

Global Health Limited

Modern Montessori International (India) Private Limited
Cryoviva Life Sciences Pvt. Ltd.

Cryoviva Biotech Pvt. Ltd.

b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity share having a par value of ' 1.00/- per share. Each holder of the equity share is entitled to
one vote per share and is entitled to dividend declared, if any. The paid up equity shares of the Company rank pari-passu in all respects,
including dividend. The final dividend if proposed by the Board of Directors which is subject to the approval of the shareholders in
the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled to
remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the
number of equity shares held by the shareholder.

c) Shares reserved for issue under options and contracts

For terms and other details of shares reserved for issue and options exercised during the year under Employee Stock Option Schemes
("ESOS") of the Company- refer note 41.

* The carrying amounts of loans, trade receivables, cash and cash equivalents, bank balances other than cash and cash equivalents, other
current financial assets, trade payables and Other financial liabilities represents employee related payables, capital creditors approximates
the fair values, and due to their short-term nature. The other non-current financial assets represents bank deposits (due for maturity after
twelve months from the reporting date) and interest accrued but not due on bank deposits, the carrying value of which approximates the
fair values as on the reporting date.

** For details regarding charge on such current financial assets - refer note 16.

# The Company’s lease liabilities and borrowings have fair values that approximate to their carrying amounts as they are based on the net
present value of the anticipated future cash flows.

® Measured using level 3 inputs.

Other notes:

The investment in equity and preference shares of subsidiaries and joint ventures are measured at cost, except for investment in unquoted
preference shares of Devyani Internal Nepal Private Limited, subsidiary which are mandatorily measured at FVTPL. Refer note 6A & 6B for
further details.

There has been no transfer from level 3 to level 1 and level 2 for the year ended 31 March 2026 and 31 March 2025.

Valuation techniques used to determine fair values:

Specific valuation techniques used to value financial instruments include:

-Fair value of financial instruments using present value techniques, which is based on discounting expected cash flows using a risk-adjusted
discount rate.

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial
reporting purposes, including level 3 fair values. This team performs valuation either internally or externally through valuers and reports
directly to the senior management. Discussions on valuation and results are held between the senior management and valuation team on
annual basis. Further, the carrying value of investments measured at FVTPL, are not material.

Significant inputs

Significant unobservable input used in Level 3 fair values of investments measured at FVTPL is discount rate which is weighted average cost
of borrowing of the Company plus spread of corporate guarantee commission which is 14.58% (31 March 2025: ' 14.58%) and estimated
cash flows of respective companies in which investment in preference shares is made.

Significant unobservable input used in Level 3 fair values of Redeemable Non Convertible Preference shares issued has been derived using
the Monte Carlo simulation framework under which:

1. Future revenue, EBITDA and related performance metrics of the Brands are simulated across a large number of scenarios.

2. Brand Value and redemption amounts are determined contractually for each simulated outcome.

3. Redemption values are discounted to present value.

4. For each eligible redemption year, the expected present value of redemption has been computed by aggregating simulated outcomes
for that year.

5. The valuation considers contractual exercise rights and assumes that market participants would assess redemption timing based on
a comparison of expected present values by year, rather than exercising redemption differently under individual extreme scenarios.
Below are the key inputs used in calculations of present value as on 31 March 2026:

Sensitivity analysis of significant unobservable inputs

The management believes, changes in significant observable inputs will not have a material impact of financial position of the Company.
b. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

• Credit risk;

• Liquidity risk;

• Market Risk - Interest Rate; and

• Market Risk - Foreign Currency

Risk Management Framework

The Board of Directors of the Company is responsible for reviewing the risk management policies and ensuring its effectiveness.

The Company's risk management policies are established to identify and analyse the risks faced by the Company to set appropriate risk
limits and controls and to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in the
market conditions and the Company's activities.

The Board of Directors oversees how management monitors compliance with Company's risk management policies and procedures and
reviews the adequacy of the risk management framework in relation to the risk faced by the Company.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations.

Credit risk on cash and cash equivalents and bank deposits (shown under bank balances other than cash and cash equivalents, above)
and other financial assets is limited as the Company generally invests in deposits with banks with high credit ratings assigned by
domestic credit rating agencies. The other financial assets primarily represents security deposits given to lessors for premises taken
on lease. Such deposits will be returned to the Company on vacation of the premises or termination of the agreement whichever is
earlier. Loan to subsidiaries will be repaid as per the terms of the agreement and there has been no default in repayment of such loans
by subsidiaries.

The exposure to the credit risk at the reporting date is primarily from loan to subsidiaries, security deposit receivables and investment
in subsidiaries. The Investment and Borrowing Committee monitors the investment in subsidiaries and loans granted to subsidiaries
and it evaluates if any impairment is required. As at year end and previous year end, Investment and Borrowing Committee based
on the internal and external valuation and after assessing the performance of the subsidiaries, is of the view that no impairment is
required.

Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India, Nepal and
Thailand. Trade receivables also includes receivables from credit card companies and online aggregator platforms, which are generally
realisable on fortnightly basis. The Company does monitor the economic environment in which it operates. The Company manages its
credit risk through credit approvals, establishing credit limits and continuously monitoring credit worthiness of customers to which
the Company grants credit terms in the normal course of business.

The Company recognises loss allowances using the Expected Credit Loss (‘ECL’) model for trade receivables. Loss allowance
for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. The changes
(incremental or reversal) in loss allowance computed using ECL model, are recognised as an impairment gain or loss in the
Statement of profit and loss.

- For trade receivables ageing refer note 11. Also, the management of the Company has preferred credit risk assessment on
individual basis for trade receivables.

- For security deposits and other receivables also management has preferred credit risk assessment at category level and individual
level. Based on this, the management has concluded that there are no significant impact other than already provided for, in the
standalone financial statements (refer note 8).

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or other financial assets. The Company's approach to manage liquidity is to have sufficient liquidity to
meet it's liabilities when they are due, under both normal and stressed circumstances, without incurring unacceptable losses or risking
damage to the Company's reputation.

The Company's liquidity management process as monitored by management, includes the following:

- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.

- Maintaining rolling forecasts of the Company’s liquidity position on the basis of expected cash flows.

- It maintains adequate source of financing through the use of short term bank deposits and cash credit facility.

- The Company assessed the concentration of risk with respect to its financial liabilities and concluded it to be low

As on 31 March 2026, the Company has undrawn credit facility for ' 2,450.45 (31 March 2025: ' 2,348.30)

(iii) Market risk

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices. Market
risk comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters, while optimising the return.

Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest
rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s borrowings with
floating interest rates.

A. Exposure to interest rate risk

The exposure of the Company's borrowing to interest rate changes as reported to the management at the end of the reporting period
are as follows:

The Company is exposed to interest rate risk on account of variable rate borrowings. The Company's risk management policy is to
mitigate its interest rate exposure in accordance with the exposure limits advised from time to time.

B. Currency risk

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and
cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other currencies from
the Company's operating, investing and financing activities. The Investment and Borrowing Committee evaluates foreign exchange rate
exposure arising from foreign currency transactions on periodic basis and follows appropriate risk management policies.

Exposure to Foreign currency risk

The summary of quantitative data about the Company's exposure to currency risk, as expressed in Indian Rupees, as at 31 March
2026 and 31 March 2025 are as below:

iv. Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised on a straight¬
line basis as an expense in standalone statement of profit and loss. Short-term leases are leases with a lease term of 12 months or
less. Low-value assets comprise IT equipment and small items of office furniture.

B. Leases where the Company is a lessor

The Company has sub-leased out some of its owned and leased properties primarily in various food courts. All leases are classified
as operating leases from a lessor perspective with the exception of certain sub-leases, which the Company has classified as finance
subleases based on the reporting requirement.

i. Finance lease (sub leases classified as finance leases)

During the year ended 31 March 2026 and year ended 31 March 2025, the Company has sub-leased some of the portions of leased
properties, the Company makes an overall assessment of whether the sublease to be classified as finance lease considering the
recognition criteria as per Ind AS 116 - 'Leases'

The management of the Company estimates the loss allowance on finance lease receivables at the end of the reporting period at
an amount equal to lifetime expected credit loss under simplified approach. None of the finance lease receivables at the end of the
reporting period is past due, and taking into account the historical default experience and the future prospects of the industries
in which the lessees operate, together with the value of collateral held over these finance lease receivables (refer note 8), the
management of the Company consider that no finance lease receivable is impaired.

The Company entered into finance leasing arrangements as a lessor for certain leased properties under sub leasing arrangements.
The term of finance leases entered into is ranging from 2 - 14.59 years (31 March 2025: 2.92 - 17.77 years). The Company is not
exposed to foreign currency risk as a result of the lease arrangements, as all leases are denominated in '. Residual value risk on such
right of use assets under lease is not significant.

ii. Operating lease (sub leases classified as operating leases)

Operating leases, in which the Company is the lessor, relate to leased and owned properties by the Company with lease terms of
between 1 to 12 years.

The unguaranteed residual values do not represent a significant risk for the Company, as they relate to leased properties of lessor
under sub leasing contracts which are located in a location with active market for lessees. The Company did not identify any indications
that this situation will change.

Estimation of fair value
i) Leasehold investment properties

The fair value of investment property has been determined by independent registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017, having appropriate recognised professional qualification and recent experience in the
location and category of the property being valued. The fair value measurement has been categorized as level 3 inputs and has been arrived
at using discounted cash flow projections based on reliable estimates of future cash flows considering growth in rental income of 8% to
10% (31 March 2025: 8% p.a. to 10% p.a.) and discount rate of 14.02% p.a. (31 March 2025: 14.70% p.a.). The impacts of sensitivities of
the estimates use while valuation, are not material to the Company.

ii) Owned investment properties

The fair value of investment property has been determined by independent registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017, having appropriate recognised professional qualification and recent experience in the
location and category of the property being valued. The fair value measurement has been measured using sale comparable method under
market approach. This comparative approach considers the sale value of similar or substitute properties and related market data and
establishes a value estimate by processes involving comparison.

iv. Presenting cashflows

The Company classifies cash outflows to acquire or to construct the investment properties as investing cash flows and rental inflows as
operating cash flows.

Impairment of leased and owned investment properties:

In accordance with Ind AS 36 “Impairment of Assets", each leased investment property is considered as a separate cash generating unit
(CGU) for the purpose of impairment review. Management periodically assesses whether there is an indication that such investment may
be impaired. For investment, where impairment indicators exists, management compares the carrying amount of such investment with its
recoverable amount. Recoverable amount is value in use of the investment computed based upon discounted cash flow projections. As on
the reporting date for current year and the previous year, the recoverable amount of this cash generating unit is determined at ' 132.28
(31 March 2025: ' 174.63) through an registered independent valuer, based on the value in use calculation which uses cash flow
projections based on the projected business operations. The Company has determined an impairment charge of ' Nil (31 March 2025:
Nil) based on the discount rate of 14.02% p.a (31 March 2025: 14.70% p.a) and rental income growth rate of 8.00% p.a.to 10.00% p.a.
(31 March 2025: 8.00% p.a. to 10.00% p.a.). An analysis of the sensitivity of the computation to a change in key parameters (rental income
and discount rates), based on reasonable assumptions, Management is of the view that there would be no material impact to the impairment
charge which has already been recognised in the standalone financial statements of the Company in the previous years. Further, there is
significant headroom available between carrying values of leasehold investment properties and its recoverable value as at reporting dates.

For owned investment properties also, the recoverable values (fair value) of owned investment properties held by the Company is higher
than the carrying value. Therefore, no impairment is required.

(vii) Guarantees/security given by the Company on behalf of the other party

a) The Company has given a corporate guarantee of THB 2,500 million to Bangkok Bank Public Company Limited (Thailand) in
respect of term loan and other credit facilities availed by Restaurants Development Co. Ltd.(subsidiary company). The amount
of corporate guarantee outstanding as at 31 March 2026 in ' amounts to ' 7,114.73 (31 March 2025: ' 6,271.37).

b) The Company has given a corporate guarantee of USD 0.5 million and NGN 1,500 million to Standard Chartered Bank (Nigeria) in
respect of term loan and other credit facilities availed by Devyani International (Nigeria) Ltd.(subsidiary company). The amount
of corporate guarantees outstanding as at 31 March 2026 in ' amounts to ' 149.71 (31 March 2025: ' 126.32).

c) The Company has given a corporate guarantee of USD 26 million to Axis Bank Limited, DIFC Branch (Dubai) in respect of
term loan and other credit facilities availed by Devyani International DMCC (refer note 42).(subsidiary company). The amount
outstanding as on 31 March 2026 amounts to ' 2,461.01 (31 March 2025 Nil). The guarantee has been closed subsequent to
the year end.

d) As at 31 March 2026 and 31 March 2025 the Company has provided a letter of support for financial and operational assistance
to RV Enterprizes Pte. Limited, Devyani International Nigeria Limited, Blackbriar Company Limited, Restaurants Development
Co,. Ltd, White Snow Company Limited, Yellow Palm Company Limited, Sky Gate Hospitality Private Limited and Blackvelvet
Hospitality Private Limited for ongoing operations for at least 12 months from the reporting dates.

(V) Terms and conditions

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

*Against the total tax demands stated above, the Company has filed appeals before various tax authorities. Based on management's
internal assessment, the management believes that the Company has reasonable chances of succeeding before the tax authorities
and does not foresee any material liability. Pending the final decision on this matter, no adjustment has been made in the standalone
financial statements.

# The Company is party to various legal proceedings in the normal course of business and does not expect the outcome of these
proceedings to have any adverse effect on its financial position and hence no provision has been recorded against these legal
proceedings at this stage. Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the
timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgements/decisions pending with
various forums/authorities. Accordingly, the above mentioned contingent liabilities are disclosed at undiscounted amount.

** Includes interest upto 31 March 2026.

2. During the years ended 31 March 2026 and 31 March 2025 the Company has provided a letter of support for financial and
operational assistance to RV Enterprizes Pte. Limited, Devyani International Nigeria Limited, Blackbriar Company Limited,
Restaurant Development Co., Ltd, White Snow Company Limited, Yellow Palm Company Limited, Sky Gate Hospitality Private
Limited and Blackvelvet Hospitality Private Limited for ongoing operations for at least 12 months from the reporting dates.

3. As per the Investment Agreement (agreement) entered between the Company and other parties, including Camas, an affiliate of
Temasek (refer note 48), the Company on completion of the time period and after serving a notice in the manner as provided in
the agreement, has an option to purchase the shares held by Camas in DMCC at an exit consideration defined in the agreement.
The management of the Company believes, that to exercise the said option, there are uncertainties around availability of free
cash flows to exercise such option and hence basis this evaluation, the Company had not accounted for such option in the
standalone financial statements.

39. EMPLOYEE BENEFITS

A. Defined contribution plan

An amount of ' 346.41 (31 March 2025: ' 308.91) has been recognised as an expense in respect of the Company’s contribution
to provident and other funds deposited with the relevant authorities and has been charged to the standalone statement of profit
and loss.

B. Defined benefit plans

The Company operates a gratuity plan wherein every employee is entitled to the benefit. Gratuity is payable to all eligible
employees (who have completed 5 years or more of service) of the Company on retirement, separation, death or permanent
disablement, in terms of the provisions of the Payments of Gratuity Act, 1972. Gratuity liability is partially funded by the Company
through annual contribution to DIL Employees Gratuity Trust (the 'Trust') against ascertained gratuity liability. Trustees administer
contributions made to the Trust and contributions are invested in a scheme with the Life Insurance Corporation of India as
permitted by law of India.

The funding requirements of the plan are based on the gratuity fund's actuarial measurement framework set out in the funding
policies of the plan. The funding of the plan is based on a separate actuarial valuation for funding purpose for which assumptions
may differ from the assumptions set out in (iii) below. Employees do not contribute to the plan.

The Company has defined that, in accordance with the terms and conditions of the aforesaid plan and in accordance with
statutory requirements (including minimum funding requirements) of the plan of relevant jurisdiction, the present value of refund
or reduction in future contributions is not lower than the balance of the total fair value of the plan assets less than total present
value of obligations.

The sensitivity analysis is based on a change in above assumption while holding all other assumptions constant. The 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 year) has been applied when calculating the provision for defined benefit plan recognised in
the standalone balance sheet.

The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous years.
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it provides an
approximation of the sensitivity of the assumptions shown.

Risk exposure:

The defined benefit plan is exposed to a number of risks, the most significant of which are detailed below:

Change in discount rates: A decrease is discount yield will increase plan liabilities.

Mortality table: The gratuity plan obligations are to provide benefits for the life of the member, so increase in life expectancy
will result in an increase in plan liabilities.

D. Code of Social Security

On 21 November 2025, the Government notified certain provisions of the Labour Codes (New Labour Codes), including a
uniform definition of wages. This amendment resulted into incremental defined benefit obligations pertaining to the services
rendered for the period prior to such amendment and the Company has treated such incremental impact as past service cost.
Based on the actuarial valuation as at 31 March 2026, the Company has recognised an increase in post-employment defined

benefit obligations (gratuity) and other long-term employee benefit obligations (compensated absences) of ' 76.25 and ' 39.47
respectively, arising from this legislative change as past service cost. As this is a material, non-recurring impact of enactment,
the related expense has been presented as Exceptional items for the year ended 31 March 2026.

40. SEGMENT REPORTING

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker
("CODM") of the Company. The CODM is considered to be the Board of Directors who make strategic decisions and is responsible for
allocating resources and assessing the financial performance of the operating segments.

As the Company’s business activity primarily falls within a single business and geographical segment, i.e., food and beverages, and
in India, thus there are no additional disclosures to be provided under Ind AS 108 - “Operating Segments'. The CODM considers that
the various goods and services provided by the Company constitutes single business segment.

41. SHARE BASED PAYMENTS
a. Description of share based payment arrangements
i Share Options Schemes (equity settled)

ESOS - 2021

On 17 March 2021, the Board of Directors approved the Employees Stock Option Scheme 2021 ("ESOS 2021") in compliance
with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 which was approved by the shareholders
on 17 March 2021.

ESOS 2021 provides that Options so granted, shall not represent more than 5% of the fully diluted share capital of the Company
at any given point of time ("Ceiling Limit") and no Grantee shall be granted Options during any one year, equal to or exceeding
1% of the issued capital of the Company except with the specific approval of the members accorded in a general body meeting
by way of a special resolution. As per ESOS 2021 Grant letters, holders of vested Options are entitled to purchase one equity
share for every Option at an exercise price.

Note: The aforementioned Scheme have been defined prior to giving effect to stock split from ' 10/- to ' 1/- dated
25 March 2021.

Incentive Policy for Middle and Senior Management

On 11 November 2024, the Nomination and Remuneration Committee adopted the "Incentive Policy for Middle and Senior Management"
("incentive policy"). As per the policy, the difference between the maturity value and the exercise price is the “gain” for a Grantee. The
Company assures the gain equal to 100% of the annual salary of the respective Grantee. In case, the aggregate gain on all the vested
options of the respective Grantee is less than his/ her annual salary, then the shortfall, if any, shall be paid by the Company by way
of performance award to the Grantee, provided the Grantee remains on the pay-roll of the Company as on the date of settlement of
performance award. The Company shall not be liable to pay the performance award in case the Grantee has exercised and sold any
share arising out of the options until the date of settlement of performance award.

The Company has recognised liability of ' 39.46 (March 25: ' 9.01) for the same refer note 18. The liability will be due for payment
after the period of 4 years and 3 months from the grant date of the options covered in the incentive policy.

The measurement of liability is arrived through report of a registered valuer using Monte Carlo model. Key inputs used in the
estimation of value of liability are:

-risk-free rate of 6.24% to 6.77% (March 2025: 6.65%)

-volatility of 36.60% to 39.77% (March 2025: 37.29%)

-exercise price of the option of ' 122.40 to 162.90 (March 2025: 162.90)

-annual salary on the date of grant

The number of options covered under the incentive policy are 1,057,700 (Previous year 1,030,400)

(C) Guarantees

(i) The Company has given a corporate guarantee of THB 2,500 million to Bangkok Bank Public Company Limited (Thailand) in
respect of term loan and other credit facilities availed by Restaurant Development Co. Ltd.(subsidiary company). The amount
outstanding as on 31 March 2026 amounts to ' 7,114.73 (31 March 2025: 6,271.37).

(ii) The Company has given a corporate guarantee of USD 0.5 million and NGN 1,500 million to Standard Chartered Bank (Nigeria) in
respect of term loan and other credit facilities availed by Devyani International (Nigeria) Ltd.(subsidiary company). The amount
outstanding as on 31 March 2026 amounts to ' 149.71 (31 March 2025: 126.32).

(iii) The Company has given a corporate guarantee of USD 26 million to Axis Bank Limited, DIFC Branch (Dubai) in respect of term
loan and other credit facilities availed by Devyani International DMCC (subsidiary company). The amount outstanding as on
31 March 2026 amounts to ' 2,461.01 (31 March 2025 Nil).

44. IMPAIRMENT OF NON-CURRENT ASSETS

Impairment assessment of non current assets (other than goodwill and franchisee rights)

In accordance with Ind AS 36 "Impairment of Assets", the Company has identified individual quick service restaurant (store) as a
separate cash generating unit (CGU) for the purpose of impairment assessment. Carrying value of a store includes property, plant
and equipment, intangible assets used at a store, right-of-use assets and allocated corporate assets. Further carrying value and
recoverable value of each store is calculated net of lease liabilities, because these specific cash store are separately identifiable.

Management periodically assesses whether there is an indication that a CGU may be impaired using a benchmark of two-year’s history
of operating losses or marginal profits for a store, which is even used by the management for the purpose of their internal reviews.
Due to higher operating costs or decline in projected sales growth, certain stores have been impaired in the current and previous
years for which impairment losses have been recognized and impairment reversals have occurred for certain stores where operational
performance has been better than the anticipated one.

Each store is considered to be an independent cash generating unit (CGU) by the Company as each store has capability to generate
independent cash flows and fulfils the requirements of Ind AS 36 also for reporting purposes.

The goodwill and franchisee rights are allocated to the three territories in whole, acquired by the Company under the said acquisition as
the Company has rights of operate the acquired stores and the expand within the acquired territories with non-exclusive rights. Hence,
the recoverability of the goodwill and franchisee rights is monitored by the management of the Company basis the stores (CGUs)
operating in the territories (aggregating CGUs operating with in the territories) and plans to open new stores with in the territories.

The recoverable value used in impairment assessment of goodwill and franchise rights is determined based on cash flow projections
for next five years approved by the management of the Company with certain key assumptions as mentioned below:

The management of the Company has assessed and considered reasonable changes in the key assumptions as disclosed above and
concluded that these reasonable possible changes in inputs used for calculating recoverable values will not lead carrying values to
exceed recoverable values in any instance.

Impairment Testing was also performed by management on the goodwill of ' 9.49 arising from acquisition of stores from YUM. The
assessment was carried out using the assumption outlined above. Based on the impairment test performed by management, the
recoverable amount of CGU exceeds the carrying value of the CGUs, including the associated goodwill. Accordingly, no impairment
is required to be recorded.

45. TRANSFER PRICING

The Company has established a comprehensive system of maintenance of information and documents that are required by the
transfer pricing legislation under Section 92-92F of the Income tax Act, 1961. Since the law requires existence of such information and
documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international
transactions entered into with the associated enterprises during the financial year and expects such records to be in existence latest by
due date as required under the law. The management is of the opinion that its transactions with the associated enterprises are at arm’s
length so that the aforesaid legislation will not have any impact on the standalone financial statements, particularly on the amount of
tax expense and that of provision for taxation.

46. CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital, all other equity reserves attributable to
the equity holders of the Company and combination of both long-term and short-term borrowings. The Company’s objective for capital
management is to maximize shareholder’s value, safeguard business continuity and support the growth of the Company. The Company
determines the capital requirement based on annual operating plan and other strategic investment plans. The Company manages its
capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.
The Company’s funding requirements are met through equity infusions, internal accruals and a combination of both long-term and
short-term borrowings. The Company raises long term loans mostly for its expansion requirements and based on the working capital
requirement utilise the working capital facilities. The Company monitors capital on the basis of consolidated total debt to consolidated
total equity on a periodic basis. As a part of its capital management policy the Company ensures compliance with all covenants and
other capital requirements related to its contractual obligations. For calculating debt equity ratio below, debt is considered on a net
basis, i.e., after deducting cash and cash equivalents. No changes were made in the objectives, policies or processes for managing
capital during the year ended 31 March 2026 and 31 March 2025.

47. ASSESSMENT OF INVESTMENT IN AND LOAN TO SUBSIDIARY COMPANY

The Company holds 87.31% (31 March 2025: 87.19%) of equity share capital and 76.00% (31 March 2025: 76.00%) preference share
capital of RV Enterprizes Pte. Limited (hereinafter referred to as “RVE”). The value of investments (equity and preference shares) as
at the year end is ' 728.51 (31 March 2025: ' 728.51). The value of the loans to RVE, including interest accrued thereon is ' 433.30
(31 March 2025: ' 433.30). RVE is a special purpose vehicle, which has invested the funds in Devyani International (Nigeria) Limited
(a step down subsidiary) through investment in shares and grant of loans USD 3.75 million (~? 252.51) (31 March 2025: USD 3.75
million (~? 252.51)) and USD 16.51 (~? 1376.71) (31 March 2025: USD 16.51 million (~? 1376.71)), respectively.

During the current year and previous year, the step down subsidiary has generated profit of ' 20.42 (31 March 2025(loss): ' 320.86)
and based on the cashflow projections of the step down subsidiary, RVE has impaired the investment and loans amounting to USD Nil
(31 March 2025: Nil) and USD Nil (31 March 2025: USD 0.20 million), respectively.

As at 31 March 2026 and 31 March 2025, the management of the Company assessed the recoverability of the investments and loans
by carrying out a valuation of the stepdown subsidiary's business with the help of an external valuation expert using the discounted
cashflow method which resulted into the impairment of the said balances and accordingly, the Company recognised impairment of
' Nil (31 March 2025: ' 1.72), which has been presented as impairment of non current assets (refer note 29).

Key assumptions used in the calculating the recoverable value of the step down subsidiary:

- discount rates 22.40% (31 March 2025: 22.40%)

- terminal growth rate 3.00% (31 March 2025: 3.00%)

Major reasons which results in impairment in was significant devaluation of the functional currency of Nigerian entity against USD.

48. ASSESSMENT OF INVESTMENT/ LOAN TO DEVYANI INTERNATIONAL DMCC, DUBAI

The Company holds 51% of equity share capital of Devyani International DMCC, Dubai (hereinafter referred to as “DID”). The carrying
value of investment in DID as at 31 March 2026 is ' 3,427.07 (as at 31 March 2025 is ' 3,427.07 ).The value of the loans to DMCC,
including interest accrued thereon is ' 1,178.17 (31 March 2025: ' Nil). The Company and Camas Investments Pte. Ltd., Singapore
("Camas"), an affiliate of Temasek Holdings (Private) Limited, invested AED 150.47 million (~ ' 3,407.85) and AED 145.53 million
(~ ' 3,295.96) respectively, in DID under the Investment Agreement dated 18 December 2023 in ratio of 51:49. DID is subsidiary
of the Company wherein the Company holds majority stake (51%) and has power to govern all relevant activities of DID thereby
establishing control over DID. Under the Investment Agreement, Camas has an exit right by way of a put option towards the other
party (holding company of the Company) after an agreed period as per the agreement itself.

On 17 January 2024, DID acquired Restaurants Development Co., Ltd. (“RD”) (step down subsidiary), operating a chain of KFC
restaurants in Thailand and expansion rights therein, by way of acquiring controlling interest in RD and its related entities for the
consideration of THB 4,681.99 million (~ ' 10,913.28 ) including payment of erstwhile shareholder’s loan, pursuant to the Share
Purchase Agreement dated 18 December 2023. Under the said agreement, DID has obtained power to govern all relevant activities of
RD and its related entities and has therefore, established its control over the aforesaid entities.

As DID has invested and acquired RD and its related entities, the recoverability of investment of the Company depends upon the
performance of RD and its related entities being further investments of DID. Therefore, for impairment assessment, RD and its related
entities in whole, are a cash generating unit (CGU).

Impairment assessment

In accordance with the requirements of Ind AS 36, to determine whether the carrying value of the CGU exceeds its recoverable
value as at 31 March 2026, the Company has performed an annual impairment assessment of investment basis impairment indicator
identified which is lower financial performance of CGU than anticipated at the time of acquisition. Further, increase in credit risk in loan
receivable from subsidiary, if any, is assessed in accordance with the requirements of Ind AS 109, “Financial instruments” (‘Ind AS
109’). Refer note 34. The recoverable value of CGU used in impairment assessment is determined based on cash flow projections for
next five years approved by the management of the CGU and the Company with certain assumptions as mentioned below:

49. INVESTMENT IN JOINT VENTURES

Investment in Devyani PVR INOX Private Limited, a joint venture

During the year ended 31 March 2025, the Company has entered into an agreement with PVR INOX Limited and jointly incorporated
an entity, namely "Devyani PVR INOX Private Limited" on 26 July 2024 to undertake business relating to development, operation and
maintenance of Food Courts, standalone Food and Beverage outlets, and Lounges within the existing or future territories. Further, the
arrangement has been considered as a joint venture basis on the jointly controlled matters agreed with parties under the arrangement.
However, the Company holds 51% economic interest within the joint venture.

Investment in Devyani RK Private Limited, a joint venture

During the year ended 31 March 2024, the Company has entered into an agreement with R.K. Associates & Hoteliers Private Limited
(“RKAHPL’) and jointly incorporated an entity, namely ‘Devyani RK Private Limited’ (“DRKPL’) on 30 January 2024 to undertake
business relating to development, operation and maintenance of Food Courts, standalone Food and Beverage outlets, and Lounges
within the existing or future territories of railway stations. Further, the arrangement has been considered as a joint venture basis on
the jointly controlled matters agreed with parties under the arrangement. However, the Company holds 51% economic interest within
the joint venture. During the current year, the Company has impaired this investment amounting to ' 0.05 (31 March 2025: Nil) as the
Company does not intend to start business operations.

50. INVESTMENT IN SKY GATE HOSPITALITY PRIVATE LIMITED

On 10 June 2025, the Company acquired an 80.72% equity stake (on a fully diluted basis) in Sky Gate Hospitality Private Limited (“Sky
Gate”), for an aggregate consideration of 4,196 million, through a preferential issue of 23,718,413 equity shares of the Company.
Accordingly, Sky Gate and its subsidiaries became subsidiaries of the Company with effect from 10 June 2025. Subsequently, the
Company increased its equity stake in Sky Gate to ~86.13% on a fully diluted basis. Further, on 07 March 2026, the Company acquired
the remaining equity stake in Sky Gate from its Founders, consequent to which, Sky Gate has become a wholly-owned subsidiary of
the Company. The carrying value of investment in Sky Gate as at 31 March 2026 is ' 5,658.94 (31 March 2025: ' Nil).

Impairment assessment

In accordance with the requirements of Ind AS 36, to determine whether the carrying value of the CGU exceeds its recoverable
value as at 31 March 2026, the Company has performed an annual impairment assessment of investment basis impairment indicator
identified which is lower financial performance of CGU than anticipated at the time of acquisition. The recoverable value of CGU used
in impairment assessment is determined based on cash flow projections for next five years approved by the management of the CGU
and the Company with certain assumptions as mentioned below:

Note (i): The variance is on account of increase in trade payables during the current year towards the year end.

Note (ii): The variance is on account of decrease in profitability during the current year.

52. The Boad of Directors of the Company (“Board”) at its meeting dated 10 March 2026, had approved the Scheme of Amalgamation
(the 'Scheme') for amalgamation of SKY Gate Hospitality Private Limited, Blackvelvet Hospitality Private Limited and Say Chefs Eatery
Private Limited, (wholly owned subsidiaries companies) with the Company. The Scheme was filed with the Hon’ble National Company
Law Tribunal (NCLT), Chandigarh on 31 March 2026. The appointed date of the Scheme is 01 April 2025. The matter was listed on
08 May 2026 before the Hon’ble NCLT and the order has been reserved.

53. The Board approved a Scheme of Arrangement under Sections 230-232 of the Companies Act, 2013, for the amalgamation of Sapphire
Foods India Limited with the Company, with an Appointed Date of 01 April 2026. Under the Scheme, the Company will issue 177 equity
shares of ' 1 each for every 100 equity shares of ' 2 each held in Sapphire Foods India Limited. The Company is in the process of
obtaining necessary regulatory and other approvals.

54. ADDITIONAL REGULATORY INFORMATION NOT DISCLOSED ELSEWHERE IN THE STANDALONE FINANCIAL
INFORMATION

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

c) During the current year and previous year, the Company does not have any charge which is yet to be registered with ROC beyond
the statutory period for the financial year ended 31 March 2026.

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

e) The Company has not advanced or provided loan to or invested funds in any entity(ies) including foreign entities (Intermediaries)
or to any other person(s) except as disclosed in Note 56, 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
company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries (31 March 2025: Nil).

f) The Company has not received any fund during the year ended 31 March 2026 (31 March 2025: Nil) 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,

g) The Company has not undertaken any transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year ended 31 March 2026 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) (31 March 2025: Nil).

h) The Company has not been declared a 'Wilful Defaulter' by any bank or financial institution (as defined under the Companies
Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
(31 March 2025: Nil)

i) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017 during the year ended 31 March 2026 (31 March 2025: Nil).

j) During the year ended 31 March 2026 and 31 March 2025, the Company has followed cost model while valuing its property,
plant & equipments. The same is in accordance with the reporting standard.

57. AUDIT TRAIL

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

The Company uses accounting softwares for maintaining its accounting records, sales invoicing and inventory management. During
the year, the audit trail (edit log) feature at the application level was operating for all relevant transactions recorded in such software.
However, the audit trail (edit log) feature for any direct changes made at the database level was not enabled for the such accounting
softwares.

The Company uses another accounting software for maintenance of payroll records which is operated by a third-party software service
provider. As per the ‘Independent Service Auditor’s Report on a Description of the Service Organization’s System and the Suitability of
the Design and Operating Effectiveness of Controls’ (based on the criteria for a description of a service organization’s system as set
forth in DC Section 200, 2018 Description Criteria for a Description of a Service Organization’s System in a SOC 2 Report, in AICPA
Description criteria), the audit trail (edit log) feature for any direct changes made at the database level and changes made at application
level was operating throughout the period for all relevant transactions recorded in the software.

Further, for all the accounting softwares, the audit trail has been preserved by the Company as per the statutory requirements for
record retention as applicable, except for database level for accounting software used for maintaining its accounting records, sales
invoicing and inventory management.

58. There are no material adjusting or non adjusting subsequent events, except as already disclosed.

59. The previous year numbers have been regrouped/reclassified wherever necessary to confirm the current year presentation.
The impact of such reclassification/regrouping is not material.