g. Provisions

A provision is recognised if, as a result of a past event, the
Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that
an outflow of economic benefits will be required to
settle the obligation. If the time of money is material,
provisions are determined by discounting the expected
future cash flows (representing the best estimate of the
expenditure required to settle the present obligation at
the balance sheet date) at a pre-tax rate that reflects
current market assessments of the time value of money
and the risks specific to the liability. The unwinding of
the discount is recognised as finance cost. Expected
future losses are not provided for.

h. Contingent liabilities and contingent assets

A contingent liability exists when there is a possible
but not probable obligation, or a present obligation
that may, but probably will not, require an outflow
of resources, or a present obligation whose amount
cannot be estimated reliably. Contingent liabilities do
not warrant provisions, but are disclosed unless the
possibility of outflow of resources is remote.

Contingent assets usually arise from unplanned or other
unexpected events that give rise to the possibility of an
inflow of economic benefits to the entity. Contingent
assets are recognised when the realisation of income
is virtually certain, then the related asset is not a
contingent asset and its recognition is appropriate.

A contingent asset is disclosed where an inflow of
economic benefits is probable.

i. Commitments

Commitments include the amount of purchase order
(net of advances) issued to parties for completion of
assets. Provisions, contingent liabilities, contingent
assets and commitments are reviewed at each reporting
date.

j. Revenue from contract with customer

Revenue from contracts with customers is recoganised
when the control of the goods or services are
transferred to the customer at an amount that reflects

the consideration to which the Company expects to
be entitled in exchange for those goods or services.
The Company has concluded that it is the principal in
its revenue arrangement because it typically controls
goods or services before transferring them to the
customers.

Revenue is measured based on transaction price,
which is the fair value of the consideration received
or receivable, stated net of discounts, returns and
value added tax. Transaction price is recognised
based on the price specified in the contract, net of
the estimated sales incentives/ discounts if any. Also,
in determining the transaction price for the sale of
products, the Company considers the effects of variable
consideration, the existence of significant financing
components, noncash consideration, and consideration
payable to the customer (if any).

The Company disaggregates revenue from contracts
with customers by geography.

Sale of services

The Company offers services in fixed term contracts
and short term arrangement. Revenue from service is
recognised when obligation is performed or services
are rendered.

Export benefits

Export incentive entitlements are recognised as income
when the right to receive credit as per the terms of the
scheme is established in respect of the exports made,
and where there is no significant uncertainty regarding
the ultimate collection of the relevant export proceeds.

Contract balances

Trade Receivable

A receivable is recognised if an amount of consideration
that is unconditional (i.e., only the passage of time is
required before payment of the consideration is due).
Refer to accounting policies of financial assets in
section of Financial instruments - initial recognition
and subsequent measurement.

Contract liabilities

A contract liability is recognised if a payment is received
or a payment is due (whichever is earlier) from a
customer before the Company transfers the related
goods or services. Contract liabilities are recognised
as revenue when the Company performs under the
contract (i.e., transfers control of the related goods or
services to the customer).

k. Recognition of interest income or expense

Interest income or expense is accrued on a time basis
and recognised using the effective interest method.

The 'effective interest rate' is the rate that exactly
discounts the estimated future cash payments or
receipts through the expected life of the financial
instrument to:

- the gross carrying amount of the financial asset;
or

- the amortised cost of the financial liability.

In calculating interest income and expense, the effective
interest rate is applied to the gross carrying amount of
the asset (when the asset is not credit-impaired) or to
the amortised cost of the liability. However, for financial
assets that have become credit-impaired subsequent
to initial recognition, interest income is calculated by
applying the effective interest rate to the amortised
cost of the financial asset. If the asset is no longer
credit-impaired, then the calculation of interest income
reverts to the gross basis.

l. Borrowing costs

Borrowing costs are interest and other costs (including
exchange differences arising from foreign currency
borrowings to the extent that they are regarded as an
adjustment to interest costs) incurred by the Company
in connection with the borrowing of funds. Borrowing
costs directly attributable to acquisition or construction
of an asset which necessarily take a substantial period of
time to get ready for their intended use are capitalised
as a part of cost of the asset. Other borrowing costs are
recognised as an expense in the period in which they
are incurred. Borrowing cost also includes exchange
differences to the extent regarded as an adjustment to
the borrowing costs.

m. Taxes

Income tax comprises current and deferred tax. It is
recognised in Profit or Loss except to the extent that it
relates to a business combination or an item recognised
directly in equity or in other comprehensive income.

Current income 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. Current income tax assets
and liabilities are measured at the amount expected to
be paid or received after considering the uncertainty,
if any, related to income taxes. It is measured using tax

rates (and tax laws) enacted or substantively enacted by
the reporting date.

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 or
simultaneously.

Current income tax relating to items recognised outside
profit or loss is recognised outside profit or loss (either
in other comprehensive income (OCI) or in equity).
Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and considers whether it is probable that a taxation
authority will accept an uncertain tax treatment. The
Company shall reflect the effect of uncertainty for
each uncertain tax treatment by using either most
likely method or expected value method, depending
on which method predicts better resolution of the
treatment.

Deferred tax

Deferred tax is provided using the liability method on
temporary differences between the carrying amounts
of the assets and liabilities for financial reporting
purposes and the corresponding amounts used for
taxation purposes.

Deferred tax liabilities are recognised for all temporary
differences, except when the deferred tax liability
arises from the initial recognition of goodwill or an
asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss
and does not give rise to equal taxable and deductible
temporary differences and in respect of taxable
temporary differences associated with investments in
subsidiaries, associates and interests in joint ventures,
when the timing of the reversal of the temporary
differences can be controlled and it is probable that
the temporary differences will not reverse in the
foreseeable future.

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

be utilised, except when the deferred tax asset relating
to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction
that is not a business combination and, at the time of
the transaction, affects neither the accounting profit
nor taxable profit or loss and does not give rise to
equal taxable and deductible temporary differences
and in respect of deductible temporary differences
associated with investments in subsidiaries, associates
and interests in joint ventures, deferred tax assets are
recognised only to the extent that it is probable that the
temporary differences will reverse in the foreseeable
future and taxable profit will be available against which
the temporary differences can be utilised.

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

In assessing the recoverability of deferred tax assets,
the Company relies on the same forecast assumptions
used elsewhere in the standalone financial statements
and in other management reports.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realized or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss (either in
other comprehensive income or in equity). Deferred tax
items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

The Company offsets deferred tax assets and deferred
tax liabilities if and only if it has a legally enforceable
right to set off current tax liabilities and assets and the
deferred tax assets and deferred tax liabilities relate to
income taxes levied by the same taxation authorities.
Sales/value added taxes/GST paid on acquisition of
assets or on incurring expenses
Expenses and assets are recognised net of the amount
of sales/ value added taxes/GST paid, except:

- When the tax incurred on a purchase of assets
or services is not recoverable from the taxation
authority, in which case, the tax paid is recognised

as part of the cost of acquisition of the asset or as
part of the expense item, as applicable
- When receivables and payables are stated with
the amount of tax included

The net amount of tax recoverable from, or payable to,
the taxation authority is included as part of receivables
or payables in the balance sheet.

n. Leases

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the right
to use the underlying assets.

Right-of-use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for
any remeasurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease
payments made at or before the commencement date
less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the shorter
of the lease term and the estimated useful lives of the
assets, as follows:

Plant and equipment 3- 5 Years

Building 1- 10 Years

Leasehold land 99 Years

If ownership of the leased asset transfers to the
Company at the end of the lease term or the cost
reflects the exercise of a purchase option, depreciation
is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment.
Refer to the accounting policies in section Impairment
of non-financial assets.

Lease Liabilities

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present
value of lease payments to be made over the lease term.
The lease payments include fixed payments (including
insubstance fixed payments) less any lease incentives
receivable, variable lease payments that depend on
an index or a rate, and amounts expected to be paid

under residual value guarantees. The lease payments
also include the exercise price of a purchase option
reasonably certain to be exercised by the Company and
payments of penalties for terminating the lease, if the
lease term reflects the Company exercising the option
to terminate. Variable lease payments that do not
depend on an index or a rate are recognised as expenses
(unless they are incurred to produce inventories) in the
period in which the event or condition that triggers the
payment occurs.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition,
the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term, a
change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate
used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying
asset.

Short term leases and leases of low-value assets

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

Company as a lessor

Leases in which the Company does not transfer
substantially all the risks and rewards incidental to
ownership of an asset are classified as operating leases.
Rental income arising is accounted for on a straight-line
basis over the lease terms. Initial direct costs incurred
in negotiating and arranging an operating lease are
added to the carrying amount of the leased asset and
recognised over the lease term on the same basis as
rental income. Contingent rents are recognised as
revenue in the period in which they are earned.

Investment property

Investment property comprises of the sub lease portion
of the right-of-use asset which is initially measured

at cost. Subsequent to initial recognition, investment
property is stated at cost less depreciation less
impairment loss, if any. The cost includes an equivalent
amount as reduced from the right-of-use asset at the
time of commencement of the lease. The Company
depreciates the investment property over the period of
sub lease term.

o. 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
All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.
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

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

• Debt instruments at amortised cost

• Debt instruments at fair value through other
comprehensive income (FVOCI)

• Debt instruments, derivatives and equity
instruments at fair value through profit or loss
(FVTPL)

• Equity instruments measured at fair value through
other comprehensive income (FVOCI)

Debt instruments at amortised cost
A 'debt instrument' is measured at the amortised cost
if the asset is held within a business model whose
objective is to hold assets for collecting contractual cash
flows, and contractual terms of the asset give rise on
specified dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. The effective
interest rate is the rate that exactly discounts estimated
future cash payments or receipts through the expected

life of the financial instrument to the gross carrying
amount of the financial asset or the amortised cost
of the financial liability. Amortised cost is calculated
by taking into account any discount or premium on
acquisition and fees or costs that are an integral part
of the EIR. The EIR amortisation is included in other
income in the Statement of Profit and Loss. The
losses arising from impairment are recognised in the
Statement of Profit and Loss.

Debt instrument at FVOCI

A 'debt instrument' is classified as at the FVOCI if
the objective of the business model is achieved both
by collecting contractual cash flows and selling the
financial assets, and the asset's contractual cash flows
represent SPPI.

Debt instruments included within the FVOCI category
are measured initially as well as at each reporting date
at fair value. Fair value movements are recognised in the
other comprehensive income (OCI). On derecognition of
the asset, cumulative gain or loss previously recognised
in OCI is reclassified to the Statement of Profit and Loss.
Interest earned whilst holding FVOCI debt instrument is
reported as interest income using the EIR method.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any
debt instrument, which does not meet the criteria
for categorisation as at amortised cost or as FVOCI, is
classified as at FVTPL. In addition, at initial recognition,
the Company may irrevocably elect to designate a debt
instrument, which otherwise meets amortised cost or
FVOCI criteria, as at FVTPL. However, such adoption
is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to
as 'accounting mismatch').

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

Equity investments

All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading and contingent consideration
recognised by an acquirer in a business combination
to which Ind AS 103 applies are classified as at FVTPL.
For all other equity instruments, the Company may
make an irrevocable adoption to present in other
comprehensive income subsequent changes in the
fair value. The Company makes such adoption on an
instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument
as at FVOCI, then all fair value changes on the
instrument, excluding dividends, are recognised in the
OCI. There is no recycling of the amounts from OCI to
profit or loss, even on sale of investment. However, the
Company may transfer the cumulative gain or loss to
retained earnings.

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

Impairment of financial assets

The Company recognises loss allowances for expected
credit loss on financial assets measured at amortised
cost. At each reporting date, the Company assesses
whether financial assets carried at amortised cost are
credit- impaired. A financial asset is 'credit-impaired'
when one or more events that have detrimental impact
on the estimated future cash flows of the financial
assets have occurred.

Evidence that the financial asset is credit-impaired
includes the following observable data:

- significant financial difficulty of the borrower or
issuer;

- the breach of contract such as a default or being
past due for 90 days or more;

- the restructuring of a loan or advance by the
Company on terms that the Company would not
consider otherwise;

- it is probable that the borrower will enter
bankruptcy or other financial re-organisation; or

- the disappearance of active market for a security
because of financial difficulties.

The Company measures loss allowances at an amount
equal to lifetime expected credit losses, except for the
following, which are measured as 12 month expected
credit losses:

- Bank balances for which credit risk (i.e. the
risk of default occurring over the expected life
of the financial instrument) has not increased
significantly since initial recognition.

Loss allowances for trade receivables are always
measured at an amount equal to lifetime expected
credit losses. Lifetime expected credit losses are the
expected credit losses that result from all possible
default events over the expected life of a financial
instrument.

12-month expected credit losses are the portion of
expected credit losses that result from default events

that are possible within 12 months after the reporting
date (or a shorter period if the expected life of the
instrument is less than 12 months). In all cases, the
maximum period considered when estimating expected
credit losses is the maximum contractual period over
which the Company is exposed to credit risk.

However, only in case of trade receivables, the Company
applies the simplified approach which requires expected
lifetime losses to be recognised from initial recognition
of the receivables.

When determining whether the credit risk of a financial
asset has increased significantly since initial recognition
and when estimating expected credit losses, the
Company considers reasonable and supportable
information that is relevant and available without
undue cost or effort. This includes both quantitative
and qualitative information and analysis, based on the
Company's historical experience and informed credit
assessment and including forward looking information.
The presumption under Ind As 109 with reference
to significant increases in credit risk since initial
recognition (when financial assets are more than 30
days past due), has been rebutted and is not applicable
to the Company, as the Company is able to collect a
significant portion of its receivables that exceed the due
date.

Measurement of expected credit losses
Expected credit losses are a probability-weighted
estimate of credit losses. Credit losses are measured as
the present value of all cash shortfalls (i.e. difference
between the cash flow due to the Company in
accordance with the contract and the cash flow that the
Company expects to receive).

Presentation of allowance for expected credit losses in
the balance sheet

Loss allowance for financial assets measured at the
amortised cost is deducted from the gross carrying
amount of the assets.

Write-off

The gross carrying amount of a financial asset is written
off (either partially or in full) to the extent that there is no
realistic prospect of recovery. This is generally the case
when the Company determines that the debtors do not
have assets or sources of income that could generate
sufficient cash flows to repay the amount subject to the
write-off. However, financial assets that are written off
could still be subject to enforcement activities in order
to comply with the Company's procedure for recovery
of amounts due.

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

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

- 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.
Financial liabilities

Initial recognition and measurement
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or 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, financial guarantee contracts and derivative
financial instruments.

Subsequent measurement

For purposes of subsequent measurement, financial
liabilities are classified in two categories:

• Financial liabilities at fair value through profit or
loss (FVTPL)

• Financial liabilities at amortised cost (loans and
borrowings)

A financial liability is classified as at 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 Statement of Profit and Loss.

Other financial liabilities are subsequently measured
at amortised cost using the effective interest method.
Interest expense and foreign exchange gains and losses
are recognised in Statement of Profit and Loss. Any gain
or loss on derecognition is also recognised in Statement
of Profit and Loss.

Derecognition of financial liabilities
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.

Derivative financial instruments
The Company uses various types of derivative financial
instruments to hedge its currency and interest risk
etc. Such derivative financial instruments are initially
recognised at fair value on the date on which a
derivative contract is entered into and are subsequently
re-measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.
Offsetting

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
asset and settle the liability simultaneously.

p. Impairment of non-financial assets

The Company's non-financial assets other than
inventories and deferred tax assets, are reviewed at
each reporting date to determine if there is indication
of any impairment. If any such indication exists,
then the asset's recoverable amount is estimated.
For impairment testing, assets that do not generate

independent cash flows are grouped together into
cash generating units (CGUs). Each CGU represents the
smallest Company of assets that generate cash inflows
that are largely independent of the cash inflows of
other assets or CGUs.

The recoverable amount of as CGU (or an individual
asset) is the higher of its value in use and fair value less
cost to sell. Value in use is based on the estimated future
cash flows, discounted to their present value using a
pre-tax discount rate that reflects current assessments
of the time value of money and the risks specific to the
CGU (or the asset).

The Company's corporate assets (e.g., central office
building for providing support to CGU) do not generate
independent cash inflows. To determine impairment of
a corporate asset, recoverable amount is determined
for the CGUs to which the corporate asset belongs.

An impairment loss is recognised whenever the
carrying amount of an asset or its cash generating unit
exceeds its recoverable amount. Impairment losses
are recognised in Statement of Profit and Loss. An
impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable
amount. Such a reversal is made only to the extent
that the asset's carrying amount does not exceed the
carrying amount that would have been determined net
of depreciation or amortisation, if no impairment loss
had been recognised.

|. Operating Segments

An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses, including revenues
and expenses that relate to transactions with any
of the Company's other components, and for which
discrete financial information is available. All operating
segments' operating results are reviewed regularly by
the Company's Chief Operating Decision Maker (CODM)
to make decisions about resources to be allocated to
the segments and assess their performance.

. Cash and cash equivalents

Cash and cash equivalents in the balance sheet
include cash at banks and on hand, other short-term
highly liquid investments with original maturities of
three months or less that are readily convertible to
known amounts of cash and 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 as they are considered an integral part of the
Company's cash management.

s. Cash flow statement

Cash flows are reported using the indirect method,
whereby profit for the year is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the
Company are segregated.

t. Government grants

Government grants are recognised where there is
reasonable assurance that the grant will be received,
and all attached conditions will be complied with. When
the grant relates to an expense item, it is recognised as
income on a systematic basis over the periods that the
related costs, for which it is intended to compensate,
are expensed. When the grant relates to an asset, it
is recognised as income in equal amounts over the
expected useful life of the related asset.

u. Cash dividend

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

v. Earnings per share

Basic earnings/ (loss) per share are calculated by
dividing the net profit/ (loss) for the year attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the year. The
weighted average number of equity shares outstanding
during the year is adjusted for events of bonus issue
and share split. For the purpose of calculating diluted
earnings/ (loss) per share, the net profit or loss for
the year attributable to equity shareholders and the
weighted average number of shares outstanding during
the year are adjusted for the effects of all dilutive
potential equity shares.

w. Foreign currencies

The standalone Ind AS financial statements are
presented in INR, which is also the Company's functional
currency. Functional currency is the currency of the

primary economic environment in which a Company
operates and is normally the currency in which the
Company primarily generates and expends cash.

Transactions and balances

Initial recognition

Transactions in foreign currencies are translated into
the functional currency of the Company at the exchange
rates at the dates of the transactions or an average
rate if the average rate approximates the actual rate
at the date of the transaction. The standalone financial
statements are presented in INR Functional currency
is the currency of the primary economic environment
in which the Company operates and is normally the
currency in which the Company primarily generates
and expends cash.

Measurement at the reporting date
Monetary assets and liabilities denominated in foreign
currencies are translated into the functional currency
at the exchange rate at the reporting date. Exchange
differences arising on settlement or translation of
monetary items are recognised in statement of profit
and loss with the exception of the following:

- Exchange differences arising on monetary
items that forms part of a reporting entity's net
investment in a foreign operation are recognised
in profit or loss in the separate financial
statements of the reporting entity or the individual
financial statements of the foreign operation,
as appropriate. In the financial statements that
include the foreign operation and the reporting
entity (e.g., consolidated financial statements
when the foreign operation is a subsidiary), such
exchange differences are recognised initially in
OCI. These exchange differences are reclassified
from equity to profit or loss on disposal of the net
investment.

- Exchange differences arising on monetary items
that are designated as part of the hedge of the
Group's net investment of a foreign operation.
These are recognised in OCI until the net
investment is disposed of, at which time, the
cumulative amount is reclassified to profit or loss.

Tax charges and credits attributable to exchange
differences on those monetary items are also recorded
in OCI.

Non-monetary assets and liabilities that are measured
at fair value in a foreign currency are translated into
the functional currency at the exchange rate when the

fair value was determined. Non-monetary assets and
liabilities that are measured based on historical cost in
a foreign currency are translated at the exchange rate
at the date of the initial transaction. The gain or loss
arising on translation of non-monetary items measured
at fair value is treated in line with the recognition of
the gain or loss on the change in fair value of the item
(i.e., translation differences on items whose fair value
gain or loss is recognised in OCI or profit or loss are also
recognised in OCI or profit or loss, respectively).

x. Measurement of Fair values

A number of the Company's accounting policies and
disclosures require measurement of fair values, for
both financial and non-financial assets and liabilities.
The Company has an established control framework
with respect to measurement of fair values. This
includes the top management division which is
responsible for overseeing all significant fair value
measurements, including Level 3 fair values. The top
management division regularly reviews significant
unobservable inputs and valuation adjustments. If
third party information, is used to measure fair values,
then the top management division assesses the
evidence obtained from the third parties to support the
conclusion that these valuations meet the requirement
of Ind AS, including the level in the fair value hierarchy
in which the valuations should be classified.

Fair values are categorised into different levels in a
fair value hierarchy based on the inputs used in the
valuation techniques as follows:

- Level 1: quoted prices (unadjusted) in active
markets for identical assets and liabilities.

- Level 2: inputs other than quoted prices included
in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices)

- Level 3: inputs for the asset or liability that are not
based on observable market data (unobservable
inputs)

When measuring the fair value of an asset or liability,
the Company uses observable market data as far as
possible. If the inputs used to measure the fair value
of an asset or liability fall into different levels of the
fair value hierarchy, then the fair value measurement
is categorised in its entirely in the same level of the
fair value hierarchy as the lowest level input that is
significant to the entire measurement.

The Company recognises transfers between levels of
the fair value hierarchy at the end of the reporting
period during which the changes have occurred.
Further information about the assumptions made
in measuring fair values used in preparing these
standalone financial statements is included in the
respective notes.

2.3 Changes in accounting policies and disclosures
New and amended standards

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. MCA has notified amendments to Ind AS 116 - Leases,
relating to sale and leaseback transactions, applicable w.e.f.
01^st April 2024 and Ind AS 21 - The Effects of Changes in
Foreign Exchange Rates, and is effective from 01^st April 2025,
with the notification dated 08^th May 2025. The Company
has reviewed the new pronouncements and based on its
evaluation has determined that it does not have any impact
in its financial statements.

2.4 Significant accounting judgements, estimates and
assumptions

The preparation of the Company's standalone 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.

a) Determining the lease term of contracts with renewal
and termination options - Company as lessee

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. 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.

Leases - Estimating the incremental borrowing rate:
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.

b) Defined benefit plans

The present value of the gratuity is 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 in India, 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 tables for the specific
countries. Those mortality tables tend to change only
at interval in response to demographic changes. Future
salary increases, and gratuity increases are based
on expected future inflation rates for the respective
countries.

c) Taxes

Uncertainties exist with respect to the interpretation of
complex tax regulations, changes in tax laws, and the
amount and timing of future taxable income. Given
the wide range of business relationships and the long
term nature and complexity of existing contractual
agreements, differences arising between the actual
results and the assumptions made, or future changes to
such assumptions, could necessitate future adjustments

to tax income and expense already recorded. The
Company establishes provisions, based on reasonable
estimates. The amount of such provisions is based
on various factors, such as experience of previous tax
audits and differing interpretations of tax regulations
by the taxable entity and the responsible tax authority.
Such differences of interpretation may arise on a wide
variety of issues depending on the conditions prevailing
in the respective domicile of the companies.

d) Useful life of Property, plant and equipment and
intangibles

The management estimates the useful life and residual
value of property, plant and equipment and other
intangible assets. These assumptions are reviewed at
each reporting date.

e) Contingencies

Refer 36 Recognition and measurement of provision and
contingencies, key assumptions about the likelihood
and magnitude of an outflow of resources;

f) Impairment of financial assets

Refer note 2.2(b) and 2.2(o) for the policy to estimate
the impairment of financial assets.

g) Impairment of non-financial assets

Impairment exists when the carrying value of an asset
or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal
and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales
transactions, conducted at arm's length, for similar
assets or observable market prices less incremental
costs for disposing of the asset. The value in use
calculation is based on a DCF model. The cash flows are
derived from the budget for the next five years and do
not include restructuring activities that the Company is
not yet committed to or significant future investments
that will enhance the asset's performance of the CGU
being tested. The recoverable amount is sensitive to
the discount rate used for the DCF model as well as
the expected future cash-inflows and the growth rate
used for extrapolation purposes. These estimates are
most relevant to goodwill and other intangibles with
indefinite useful lives recognised by the Company.

Refer note 2.2(p) for the policy to estimate the
impairment of non-financial assets.

h) Leases - Estimating the incremental borrowing rate

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.

2.5. Climate - related matters

The Company considers climate-related matters in estimates
and assumptions, where appropriate. This assessment
includes a wide range of possible impacts on the Company
due to both physical and transition risks. Even though the
Company believes its business model and products will still be
viable after the transition to a low-carbon economy, climate-
related matters increase the uncertainty in estimates and
assumptions underpinning several items in the standalone
financial statements. Even though climate-related risks might
not currently have a significant impact on measurement,
the Company is closely monitoring relevant changes and
developments, such as new climate-related legislation. The
items and considerations that are most directly impacted by
climate-related matters are Useful life of property, plant and
equipment and Impairment of non-financial assets.

Notes:

(a) This includes Rs. 36.07 (31^st March 2024: Rs. 36.07) which represents dividend on investment in preference shares of Ethos
Limited which has been waived by the Company and is considered as quasi equity contribution as it is no longer payable by Ethos
Limited.

(b) During the previous year, the Company had bought 24,370 equity shares of Ethos Limited, (a subsidiary company) for a
consideration of Rs. 397.87. Also, the Company had sold 4,90,000 equity shares of Ethos Limited for a consideration of Rs.
12,244.90.

(c) During the previous year, the Company had further acquired 3,00,000 equity shares for Rs. 12.94 of Kamla Tesio Dials Limited.

(d) During the year, the Company has invested Rs. 725.51 (31^st March 2024 : Rs. 740.94) equivalent to CHF 7,87,500 (31^st March 2024
: CHF 7,87,500) as second and final instalment against 15,00,000 equity shares of CHF 1 each of Silvercity Brands AG.

(e) During the year, the Company has further acquired 12,450 equity shares of CHF 100 each of Pylania SA for Rs. 1,978.16 (CHF
19,92,000) from Kamla International Holdings SA.

(f) During the previous year, impairment indicators were identified in relation to investments made in equity shares of foreign
subsidiaries of the Company, Kamla International Holdings SA and Pylania SA. As on 31^st March 2024, the Company was carrying
an investment of Rs. 2,225.60 in said subsidiaries. An impairment assessment had been carried out by the Comparing the carrying
value of the investments in subsidiaries to its recoverable amount to determine whether an impairment provision was required
to be recognised. Based on the above assessment, the Company had recognised impairment allowance in value of investment
aggregating to Rs. 1,957.48.

(ii) General reserve

The General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the
General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income, items included in the General reserve will not be reclassified subsequently to the Statement of Profit and Loss.

(iii) Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distributions paid to shareholders.

Remeasurements of defined benefit obligation comprises actuarial gains and losses and return on plan assets (excluding interest
income).

(iv) Capital Reserve (on amalgamation)

Capital Reserve has been created pursuant to the scheme of amalgamation with Satva Jewellery and Design Limited approved by
the Hon'ble National Company Law Tribunal.

(v) Capital Redemption Reserve

The Company has bought back 2,37,837 equity shares during the year. Accordingly, Section 69 of Companies Act, 2013 require
to create capital redemption reserve equal to nominal value of shares bought back where the company purchases its own shares
out of free reserves or security premium account. Therefore, the Company has transferred the amount equal to nominal value
to capital redemption reserve out of its free reserves. Also the Company had bought back 1,99,947 equity shares during the year
ended 31^st March 2023.

Notes:

(a) Vehicle loans from banks amounting to Rs. 229.01 (31^st March 2024: Rs. 308.09) carrying interest rate in the range of 6.90% to
9.50% (previous year 6.90% to 9.50%) per annum are secured against hypothecation of specific vehicle purchased out of the
proceeds of those loans. The loans are to be repaid with in a period of 1 - 4 years as per the respective repayment schedule in
equal monthly installments.

(b) Term loan from Bajaj Finance Limited amounting to Rs. Nil (31^st March 2024: Rs. 222.07) carrying interest rate as 9.35% (previous
year 9.35%) is secured by way of first pari passu charge over movable fixed assets of the Company (except for specific vehicles
pledged against respective loans). Also, it is secured by way of second pari passu charge over leasehold Land & building and
Plant & machinery constructed at Bengaluru (Plot No. 55-A, Aerospace Sector) Hitech, Aerospace and Defence Park, Devanahalli,

Bengaluru. The loan was to be repaid in 18 instalments of Rs. 55.55 as per the repayment schedule in equal quarterly installments
commencing from 05^th September 2021. The Last instalment was repaid on 05^th March 2025.

Term loan from Bajaj Finance Limited amounting to Rs. Nil (31^st March 2024: Rs. 187.27) carrying interest rate as 9.35% (previous
year 9.35%) is secured by way of second pari passu charge over leasehold Land & building and Plant & machinery constructed
at Bengaluru (Plot No. 55-A, Aerospace Sector) Hitech, Aerospace and Defence Park, Devanahalli, Bengaluru. The loan was to be
repaid in 48 instalments as per the repayment schedule commencing from 5^th April 2022 with one year of moratorium from the
drawdown. The last instalment was repaid on 5^th March 2025.

Term loan from Bajaj Finance Limited amounting to Rs. 660.64 (31^st March 2024: Rs. 961.00) carrying interest rate of 9.25%
(previous year 9.30%) is secured by way of extension of charge on exclusive basis over leasehold Land & building and Plant &
machinery at Bengaluru (Plot No. 55-A, Aerospace Sector) Hitech, Aerospace and Defence Park, Devanahalli, Bengaluru. The loan
is to be repaid in 48 instalments as per the repayment schedule commencing from 5^th January 2023 with one year of moratorium
from the drawdown. The last instalment would be paid on 5^th February 2027.

Term loan from Bajaj Finance Limited amounting to Rs. 3,000.00 (31^st March 2024: Rs. Nil) carrying interest rate of 8.90% (previous
year Nil) is secured by way of extension of charge on exclusive basis over leasehold Land & building and Plant & machinery at
Bengaluru (Plot No. 55-A, Aerospace Sector) Hitech, Aerospace and Defence Park, Devanahalli, Bengaluru. The loan is to be
repaid in 72 instalments as per the repayment schedule commencing from 5^th March 2025 . The last instalment would be paid on
5^th February 2031.

Vehicle loans from Toyota Financial Services India Limited amounting to Rs. 9.47 (31^st March 2024: Rs. 22.31) carrying interest rate
of 7.43% (previous year 7.43%) per annum are secured against hypothecation of specific vehicle purchased out of the proceeds
of the loan. The loan is to be repaid with in a period of 1 year as per the repayment schedule in equal monthly installments.

(c) Deposits from shareholders and directors amounting to Rs. 3,972.26 (31^st March 2024: Rs. 3,367.47) carrying interest rates in the
range of 9.00% to 10.25% (previous year 9.00% to 11.25%) per annum are repayable in 1 years to 3 years from the respective
dates of deposit.

Notes:

(a) Working capital borrowings from banks amounting to Rs. 127.57 (31^st March 2024: Rs. 237.55) carrying interest rate varying from
8.50% to 9.75% (previous year 8.60% to 11.85%) per annum are secured by hypothecation of stocks of stores and spares, raw
materials and components, finished goods and stock-in-process and book debts and other current assets of the Company (both
present and future), on pari passu basis and are further secured by a second charge on the entire movable fixed assets of the
Company and immovable property situated at Haibatpur Road, Saddomajra, Derabassi, Mohali, Punjab (no first charge created
on this property).

(b) Liability against utilisation of bill discounting facility from bank amounting to Rs. 994.47 (31^st March 2024: Rs. 261.15) carrying
interest rate of 8.20% to 8.28% (previous year: 8.10% to 8.25%) per annum is secured by hypothecation of stocks of stores and
spares, raw materials and components, finished goods and stock-in-process and book debts and other current assets of the
Company (both present and future), on pari passu basis and are further secured by a second charge on the entire movable fixed

(i) The fair value in respect of the unquoted equity investments has been determined using discounted cash flow method and
Market comparison technique based on market multiples derived from quoted prices of companies comparable to the investee.
The significant unobservable inputs used are expected cash flows, estimated EBITDA of the investee.

(ii) Fair value of non-current financial assets and non- current financial liabilities has not been disclosed as there is no significant
differences between carrying value and fair value.

(iii) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying
amount due to the short term maturities of these instruments.

(iv) The fair value of borrowings is based upon a discounted cash flow analysis that used the aggregate cash flows from principal and
finance costs over the life of the debt and current market interest rates.

(v) The fair value of derivative financial instrument has been determined using valuation techniques with market observable input.
The model incorporate various input include the credit quality of counter-parties and foreign exchange forward rate.

(vi) There are no transfers between Level 1, Level 2 and Level 3 during the year ended 31^st March 2025 and 31^st March 2024.

(vii) Investment in equity instruments of subsidiaries as at 31^st March 2025 amount to Rs. 16,431.84 (net of impairment) (31^st March
2024 Rs. 13,708.73) carried at cost in accordance with IND AS 27 (Separate financial statement).

(viii) The change in amount is on account of fair value gain of Rs. 0.71.

B. Financial risk management

(i) Risk Management framework

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management
framework. The Company's risk management policies are established to identify and analyse the risk faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems
are reviewed regularly to effect changes in market conditions and Company's activities. The Company, through its training and
management standards and procedures, aims to maintain discipline and constructive control environment in which all employees
understand their roles and obligations.

The Company's audit committee 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 risk faced by the Company. The
audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk
management controls and procedures, the result of which are reported to audit committee.

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

- credit risk (see (ii))

- liquidity risk (see (iii))

- market risk (see (iv))

(ii) Credit Risk

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. The carrying amount of financial assets represents the maximum credit risk exposure and arises
principally from the Company's receivable from customers and loans.

Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty.
The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential
failure to make payments. Investments mainly include investments made by the Company in its subsidiary companies and
associates. The loans primarily represents security deposits given and loans given to employees and related parties. The
management believes these to be high quality assets with negligible credit risk. The management believes the parties to which
these deposits and loans have been given have strong capacity to meet the obligations and where the risk of default is negligible
or nil and accordingly no provision for expected credit loss has been provided on these financial assets. Credit risk on cash and
cash equivalents and bank deposits is limited as the Company generally invests in deposits with banks with high credit ratings
assigned by domestic credit rating agencies.

(iii) 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 another financial assets. The Company's approach to manage liquidity is to have sufficient
liquidity to meet its liabilities when they are due, under both normal and stressed circumstances, without incurring unacceptable
losses or risking damage to the Company's reputation.

(iv) 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.

(i) 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.

Exposure to interest rate risk

The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest
rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company
are principally denominated in rupees with a mix of fixed and floating rates of interest. The risk is managed by the Company
by maintaining an appropriate mix between fixed and floating rate borrowings. 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:

35 CAPITAL MANAGEMENT
(i) Risk management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business. Management monitors the return on capital, as well as the level of dividends to
equity shareholders.

The Company monitors capital using a ratio of 'adjusted net debt' to 'total equity'. For this purpose, adjusted net debt is defined
as total liabilities excluding deferred tax liabilities, provisions and other current liabilities, less cash and cash equivalents and
other bank balances. Total equity comprises all components of equity as shown in balance sheet.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

B. Defined Benefit Plan

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employees who have completed at least five
years of service are entitled to specific benefit. The level of benefit provided depends on the member's length of service and salary
retirement age. The employee is entitled to a benefit equivalent to 15 days salary last drawn salary for each completed year of service
with part thereof in excess of six months. The same is payable on termination of service or retirement or death whichever is earlier. The
present value of the obligation under such defined benefit plan is determined based on an actuarial valuation as at the reporting date
using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation. The obligations are measured at the present value of
the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans
is based on the market yields on Government bonds as at the date of actuarial valuation. Remeasurement gains and losses (net of tax)
are recognised immediately in the Other Comprehensive Income (OCI).

The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The Company made
annual contributions to the LIC of India of an amount advised by the LIC.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit
obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and
retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination
of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the
retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows
arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous
periods. The funds are managed by specialised team of Life Insurance Corporation of India.

(i) Funding

Gratuity is a funded benefit plan for qualifying employees. 100% of the plan assets are managed by LIC. The assets managed are
highly liquid in nature and the Company does not expect any significant liquidity risks.

e) Terms and conditions of transactions with related parties

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

39 OPERATING SEGMENTS
(a) Basis for segmentation

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the Company's other components, and for which
discrete financial information is available. All operating segments' operating results are reviewed regularly by the Company's Chairman
and Managing Director to make decisions about resources to be allocated to the segments and assess their performance.

The Company has two reportable segments, as described below, which are the Company's strategic business units. These business
units offer different products and services, and are managed separately because they require different technology and marketing
strategies. For each of the business units, the Company's Chairman and Managing Director reviews internal management reports on
at least a quarterly basis.

the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of income tax expense and
that of provision for taxation.

41 COMPANY AS A LESSEE

The Company has lease contracts for various items of plant and equipment, building and land used in its operations. Leases of plant
and equipment generally have lease terms between 3-5 years, while buildings generally have lease terms between 1-10 years, while
leasehold land has lease term of 99 years. The Company obligations under its leases are secured by the lessor's title to the leased
assets.

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

45 OTHER STATUTORY INFORMATION

1. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

2. The Company does not have any transactions with companies struck off.

3. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

4. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

5. The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities (Intermediaries)
except disclosed in Note 46(d) 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;

6. The Company has not received any fund from any person or entity, 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,

7. The Company does not have 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.

46 a) During the previous year, impairment indicators were identified in relation to investment made in equity shares of a foreign subsidiary

of the Company, Kamla International Holdings SA and Pylania SA. As on 31^st March 2024, the Company was carrying investment of
Rs. 2,225.60 in said subsidiaries. An impairment assessment had been carried out by comparing the carrying value of the investment
in subsidiaries to its recoverable amount to determine whether an impairment provision was required to be recognised. Based on
the above assessment, the Company had recognised impairment allowance in value of investment aggregating to Rs. 1,957.48.

During the current year, the management has estimated the recoverable amount of its investment in such subsidiaries using the
'Discounted Cash Flow valuation model and as per such assessment done by the management, no further adjustments are required
to the carrying value of the investments and in loans given to such subsidiaries as at 31^st March 2025.

b) The estimate of value in use was determined using a pre-tax discount rate of 6.27% (31^st March 2024 : 7.00%) and a terminal
value growth rate of 1% from 31^st March 2029.

c) As per Section 128 of the Companies Act, 2013 read with proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 with
reference to use of accounting software by the Company for maintaining its books of account, has a feature of recording audit
trail of each and every transaction, creating an edit log of each change made in the books of account along with the date
when such change were made and ensuring that the audit trail cannot be disabled. The Company uses an accounting software
for maintaining its books of account 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 accounting software. However, the audit trail (edit logs) feature
for any direct changes made at the database level was not enabled for accounting software used for maintenance of books of
account. Further, there are no instances of audit trail feature being tampered with, other than the consequential impact of the
exceptions given above. Furthermore, except for matters mentioned above, the audit trail has been preserved by the Company
as per the statutory requirements for record retention.

d) During the year ended 31^st March 2023, the Company has granted loan of CHF 1,400,000 (Rs. 1,244.60) and made further
investment of CHF 1,000,000 (Rs. 846.70) in equity shares of its wholly owned subsidiary Kamla International Holdings SA with
an understanding that the subsidiary company will further invest these funds in wholly owned subsidiaries of the Group naming
Pylania SA and Estima AG. Out of the total amount invested CHF 6,00,000 was unutilised as at 31^st March 2023. Mentioned below
are the details of balance fund utilised by the said subsidiary Company.

47 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received
Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code
will come effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any
related impact in the period when the Code becomes effective.

48 During the year, Company has concluded the buy back of 2,37,837 equity shares for an aggregate amount of Rs. 8,799.97 being 1.90%
of the total paid up equity share capital at average price of Rs. 3,700 per equity share as approved by the Board of Directors in meeting
held on 9^th July 2024. The equity shares bought back were extinguished on 23^rd September 2024.Capital redemption reserve was
created to the extent of share capital extinguished (Rs. 23.78). The excess cost of buyback of Rs. 8,848.14 (including Rs. 71.95 (net of
tax) towards transaction cost of buy back) over par value of shares were offered from securities premium (Rs. 8,776.19) and retained
earnings (Rs. 71.95) and corresponding tax on buyback of Rs. 2,044.50 were offset from retained earnings.

49 During the previous year, the Company had sold 4,90,000 equity shares of Ethos Limited (subsidiary company) in the open market,
pursuant to this sale the company had accounted for gain on sale of shares amounting to Rs. 12,170.12 in other income.

50 During the previous year, the Company had invested an amount of CHF 7,87,500 (equivalent to Rs. 740.94) against 15,00,000 equity
shares of Swiss Franc CHF 1 each, partly paid up of Swiss Franc CHF 0.50 each in of its subsidiary Silvercity Brands AG. Further, the
Company has paid the balance amount as second and final instalment of CHF 7,87,500 (equivalent to Rs. 725.51) during the current year.
After completion of this transaction, Company is directly holding 20.78% shareholding in Silvercity Brands AG as on 31^st March 2025.

51 During the current year, Company has capitalized its bracelet factory w.e.f. 30^th September 2024 for Rs 2,313.88 including Rs 1,282.92
and Rs 987.77 towards pre-operating expenses and trial run cost, respectively and net of Rs 1,221.15 towards development and
tooling cost of the test models and trial runs amount received from one of the customer. Also, the Company has received advance of
Rs. 1,413.00 from a major customer which will be adjusted against future sales to that customer.

52 During the previous year, subsidiary company i.e. Mahen distribution Limited declared an interim dividend of Rs. 120 per share
amounting to Rs. 7,206.84, based on aforesaid declaration and subsequent receipt of dividend, the Company had accounted for such
amount in other income.

53 During the current year, the Company has purchased 12,450 (62.25%) equity shares of its subsidiary Pylania SA amounting to CHF
19,92,000 (equivalent to Rs. 1,978.16) from another subsidiary Company, Kamla International Holding SA. The Company after
completion of this transaction is directly holding 100% shareholding in Pylania SA, earlier 62.25% of shareholding was held by Kamla
International Holding SA.

54 During the current year, Company has capitalized its packaging facility at Panchkula, Haryana, for Rs. 664.40 (including Rs. 139.19 for
trial run and pre-operating cost) concluded on 1^st October 2024.

As per our report of even date For and on behalf of the Board of Directors of KDDL Limited

For Walker Chandiok & Co LLP Yashovardhan Saboo Sanjeev Kumar Masown

Chartered Accountants Chairman and Managing Director Whole time Director cum Chief Financial Officer

ICAI firm registration no.: 001076N/N500013 DIN: 00012158 DIN: 03542390

Rohit Arora Brahm Prakash Kumar

Partner Company Secretary

Membership No. 504774 Membership no. FCS7519

Place: Gurugram Place: Chandigarh

Date: 19^th May 2025 Date: 19^th May 2025