l. Provisions, Contingent liability and commitment

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects
some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating
to a provision is presented in the statement of profit and loss net of any reimbursement. If the effect of the
time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their
existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the company or where any present obligation cannot be measured in terms of
future outflow of resources or where a reliable estimate of the obligation cannot be made. Provisions are

l. Provisions, Contingent liability and commitment (Contd.)

recognised when the company has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation and the amount can be reliably
estimated.

Provisions are not recognised for future operating losses. Provisions are measured at the present value of
management's best estimate of the expenditure required to settle the present obligation at the end of the
reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The increase in the
provision due to the passage of time is recognised as interest expense. Where there are a number of similar
obligations, the likelihood that an outflow will be required in settlement is determined by considering the class
of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one
item included in the same class of obligations may be small. A contingent asset is disclosed, where an inflow of
economic benefits is probable. An entity shall not recognise a contingent asset unless the recovery is virtually
certain.

Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

(i) estimated amount of contracts remaining to be executed on capital account and not provided for;

(ii) other non-cancellable commitments, if any, to the extent they are considered material and relevant in the
opinion of management.

Other commitments related to sales/procurements made in the normal course of business are not disclosed to
avoid excessive details.

m. Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no
obligation, other than the contribution payable to the provident fund. The Company recognizes contribution
payable to the provident fund scheme as an expense, when an employee renders the related service. If the
contribution payable to the scheme for service received before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution due for services received before the
balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to, for
example, a decrease in future payment or a cash refund.

The Company operates a defined benefit gratuity plan in India, The cost of providing benefits under the defined
benefit plan is determined at the period end by an independent actuary using the projected unit credit method.
Remeasurements, comprising of actuarial gains and losses, are recognised immediately in the balance sheet
with a corresponding debit or credit to retained earnings through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company
recognises the following changes in the net defined benefit obligation as an expense in the statement of profit
and loss:

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

• Net interest expense or income

m. Retirement and other employee benefits (Contd.)

Short-term employee benefits

Liabilities for wages and salaries including non-monetary benefits that are expected to be settled wholly within
twelve months after the end of the period in which the employees render the related service are classified as
short term employee benefits and are recognized as an expense in the Statement of Profit and Loss as the
related service is provided. A liability is recognised for the amount expected to be paid if the company has a
present legal or constructive obligation to pay this amount as a result of past service provided by the employee
and the obligation can be estimated reliably.

Other Long-term employee benefits

The liabilities for earned leaves are not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service. They are therefore measured as the present value of
expected future payments to be made in respect of services provided by the employees upto the end of the
reporting period using the projected unit credit method based on actuarial valuation.

Re-measurement are recognised in profit or loss in the period in which they arise including actuarial gains and
losses.

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

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 (FVTPL), 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. However, trade receivables that do not contain a
significant financing component are measured at transaction price.

Subsequent measurement

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

1 Debt instruments at amortised cost

2 Debt instruments at fair value through other comprehensive income (FVTOCI)

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

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

The Company does not have any financial assets falling under category 2 and 4 above.

Debt instruments at amortised cost

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

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

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

This category is the most relevant to the Company. After initial measurement, such financial assets are
subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is

n. Financial instruments (Contd.)

calculated by taking into account any discoun The EIR amortisation is included in finance income in the profit
or loss. The losses arising from impairment are recognised in the profit or loss. This category generally applies
to trade and other receivables.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL. In addition, the Company may elect
to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL.

However, such election is allowed only if doing so reduces or eliminates a measurement or recognition
inconsistency (referred to as 'accounting mismatch'). The Company has not designated any debt instrument
as at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

Equity investments

Investment in subsidiaries are carried at cost less accumulated impairment losses, if any.

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for
trading classified as at FVTPL and are measured at fair value with all changes recognised in the profit or loss. For
all other equity instruments, the Company may make an irrevocable election to present in other comprehensive
income subsequent changes in the fair value. The Company makes such election on an instrument- by¬
instrument basis. The classification is made on initial recognition and is irrevocable.

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

Derecognition

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

• 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.

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

n. Financial instruments (Contd.)

Impairment of financial assets

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

Loss allowances for trade receivable are always measured at an amount equal to life time ECL.

Life time expected credit losses are the expected credit losses that result from all possible default events over
the expected life of a financial instruments

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

I nvestment in subsidiaries are carried at cost less accumulated impairment losses, if any. Where an indication
of impairment exists, the carrying amount of the investment is assessed and written down immediately to its
recoverable amount. On disposal of investments in subsidiaries and associates, the difference between net
disposal proceeds and the carrying amounts are recognised in the Statement of Profit and Loss.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified as measured at amortised cost or FVTPL. Financial liabilities at FVTPL are
measured at fair value and net gains and losses, including any interest expense, are recognised in profit or
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 profit or loss. Any gain or loss on
derecognition is also recognised in profit or loss.

Subsequent measurement

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

Loans and borrowings

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

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

This category generally applies to borrowings.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due
in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as
a liability at fair value, adjusted for Subsequently, the liability is measured at the higher of the amount of
loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less
cumulative amortisation.

The Company does not have any financial liabilities at fair value through profit or loss.

n. Financial instruments (Contd.)

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as
the derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the statement of profit or loss.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities.
For financial assets which are debt instruments, a reclassification is made only if there is a change in the business
model for managing those assets. Changes to the business model are expected to be infrequent. The Company's
senior management determines which are significant to the Company's operations. Such changes are evident
to external parties. A change in the business model occurs when the Company either begins or ceases to
perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the
reclassification prospectively from the reclassification date which is the first day of the or interest.

Offsetting of financial instruments

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

o. Trade Receivables

Trade receivables are recognised initially at transaction price and subsequently measured at cost less provision
made for doubtful trade receivables as per expected credit loss method over the life of the asset depending
on the customer ageing, customer category, specific credit circumstances and the historical experience of the
Company.

p. Cash and cash equivalents

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

q. Cash dividend to equity holders of the Company

The Company recognises a liability to make cash or non-cash distributions to equity holders of the parent when
the distribution is authorised and the distribution is no longer at the discretion of the Company, a corresponding
amount is recognised directly in equity.

r. Earnings Per Share:

(i) Basic earnings per share:

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the company

• by the weighted average number of equity shares outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the year and excluding treasury shares.

r. Earnings Per Share: (Contd.)

(ii) Diluted earnings per share:

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential
equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.

2.3 Recent Indian Accounting Standards (Ind AS)

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. For the year ended March 31,
2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The Company has reviewed the
new pronouncements and based on its evaluation has determined that it does not have any significant impact
in its financial statements.

IMPAIRMENT

Goodwill is tested for impairment annually as at March 31st. No impairment charges were identified as at March 31,
2025.

Goodwill of ' 10,038 lacs relates to the acquisition of erstwhile business of Henkel India Limited. For the purpose of
impairment testing, the Company considers this as a CGU and compares the recoverable amount of CGU with the
carrying value.

Further, an amount of ' 250 lacs relates to the acquisition of Fabric Care segment and has been entirely allocated to
this reportable segment.

Goodwill of '236 lacs relates to the merger of laundry services segment and has been entirely allocated to this
segment.

Impairment assessment was done by comparing carrying value vs recoverable amount. Recoverable amount is value
in use or realisable value whichever is higher. Value in use is calculated basis Discounted Cash Flow (DCF) Method.

NOTE 3d - GOODWILL AND OTHER INTANGIBLE ASSETS (Contd.)

For DCF, following key assumptions were considered while performing impairment testing :

Terminal value growth rate : 5% (2024 : 5%)

Growth rate : 1% - 20% (2024 : 1% - 20%)

Weighted Average Cost of Capital % (WACC) (Discount rate before tax) : 13% (2024 : 13%)

The projections cover a period of five years, as we believe this to be the most appropriate timescale over which to
review and consider annual performances, before applying a fixed terminal value growth rate to the final year cash
flows. The growth rates used to estimate future performance (revenue, cost of services, expenses etc) are based on
the estimates after considering past performance and after considering financial budgets/forecasts.

The recoverable amounts of the above CGU's have been assessed using a value-in-use model. Value in use is generally
calculated as the net present value of the projected pre-tax cash flows plus a terminal value of the cash generating
unit to which the goodwill is allocated. Initially a pre-tax discount rate is applied to calculate the net present value
of the pre-tax cash flows.

The Company has performed sensitivity analysis around the base assumptions and have concluded that no reasonably
possible change in key assumptions would result in the recoverable amount of CGU to be less than the carrying value.

NOTE 13 - SHARE CAPITAL (Contd.)

Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of ' 1 per share. Each holder of equity shares
is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive
remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.

During the year ended March 31, 2025, the Company has issued 5,867 equity shares of face value of ' 1 each,
upon exercise of stock options granted under the Company's Employees Stock Unit Plan - 2023 (RSU 2023/
Plan) upon exercise of options. Consequent to this allotment, the paid-up Equity Share Capital of the Company
stands Increased to 36,72,14,511 equity shares of face value of ' 1 each i.e. ' 3,672 lacs.

These defined benefit plan exposed to actuarial risk, such as longevity risk, currency risk, interest rate risk and
market risk.

Fund is Managed by LIC as per Insurance Regulatory and Development Authority guidelines. The plan assets
of the defined benefit plan have been primarily invested in insurer managed funds and the asset allocation for
plan assets is determined based on the investment criteria prescribed under the relevant regulations applicable
to pension funds and the insurer managers. The insurers' investment are well diversified and also provide for
guaranteed interest rates arrangements.

(H) Sensitivity Analysis:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate,
expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably
possible changes of the assumptions occurring at the end of the reporting period, while holding all other
assumptions constant.

Terms and conditions of transactions with related parties

Transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions and
outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been
no guarantees provided or received for any related party receivables or payables.

NOTE 33 - LEASES

a) In case of assets taken on lease

The Company has lease contracts for leasehold land and building used in its operations.

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

Carrying amounts of right-of-use assets recognised and the movements during the period:

Refer note : 3c

The claims against the Company comprise of pending litigations / proceedings pertaining to demands raised
by Income tax, Excise and service tax, Custom, Sales tax / VAT tax and other authorities / bodies. The Company
has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are
required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does
not expect the outcome of these proceedings to have a materially adverse effect on its profitability and financial
position.

It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above
pending resolution of the respective proceedings as it is determinable only on receipt of judgements/decisions
pending with various forums or authorities.

The Company does not expect any reimbursements in respect of the above contingent liabilities. The above
disclosure does not cover matters where the exposure has been assessed to be remote.

NOTE 36 - EARNING PER SHARE (?)

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

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

NOTE 37 - SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

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

a) Judgements

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

Balance with government authorities and protest payment

The Company has significant receivable from government authorities in respect of payment made under
protest in earlier years towards VAT matters. The Company has received favourable orders from the Honourable
Supreme Court / High Court in these matters and accordingly Company believes that all the amounts are fully
recoverable.

Taxes

Refer Note 28 (d)

b) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year, are described below. The Company based its assumptions and estimates on
parameters available when the financial statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

NOTE 37 - SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (Contd.)

Impairment of non-financial assets and Goodwill

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 Discounted cash flow (DCF) model. The cash flows are derived from the budget 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.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using appropriate valuation techniques.
The inputs for these valuations are taken from observable sources where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of various
inputs including liquidity risk, credit risk, volatility etc. Changes in assumptions/judgements about these factors
could affect the reported fair value of financial instruments.

Defined benefit plans (gratuity benefits)

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

The mortality rate is based on publicly available mortality tables . 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.

Taxes

Deferred tax assets and liability are recognised for deductible temperary differeance for which there is probability
of utilisation against future taxable profit. The Company uess judgement to determine the amount of deferred
tax liability /assets that can be recognised, based upon the likely timing and level of future taxable profit and
business developments.

Further, the Company has recognised Minimum Alternate tax Credit (MAT) which can utilised for a period of 15
years from the assessment year to which it relates to. Based on future projections of taxable profit and MAT, the
Company has assessed that the entire MAT credit can be utilised.

The management assessed that fair value of cash and cash equivalents, Bank balances other than cash and cash
equivalents, trade receivables, other financial assets, trade payables and other financial liabilities approximate their
carrying amounts largely due to the short-term maturities of these instruments.

Long-term receivables/advances given are evaluated by the Company based on parameters such as interest rates
and individual creditworthiness of the customer. Based on this evaluation, allowances are taken into account for the
expected credit losses of these receivables.

NOTE 40 - FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit
risk. The Company's senior management has the overall responsibility for establishing and governing the Company's
risk management framework. The Company has constituted a core Management Committee, which is responsible
for developing and monitoring the Company's risk management policies. The Company's risk management policies
are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and
controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The
key risks and mitigating actions are also placed before the Audit Committee of the Company.

A. Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial
liabilities. The Company's approach in managing liquidity is to ensure that it will have sufficient funds to meet
its liabilities when due without incurring unacceptable losses.

The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended
March 31, 2025 and March 31, 2024. Cash flow from operating activities provides the funds to service the
financial liabilities on a day-to-day basis. The Company regularly monitors the rolling forecasts to ensure it
has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated,
over and above the amount required for working capital management and other operational requirements, is
retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term
deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns
on investments while ensuring sufficient liquidity to meet its liabilities.

For long term borrowings, the Company also focuses on maintaining / improving its credit ratings to ensure
that appropriate financing options are available as and when required.

NOTE 40 - FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd.)

B. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises two types of risk: currency risk and other price risk.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company is not exposed to significant foreign currency risk as at the
respective reporting dates.

Price risk

The Company is mainly exposed to the price risk due to its investment in debt mutual funds. The price risk arises
due to uncertainties about the future market values of these investments.

C. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and other financial assets including bank balances. Bank balances are maintained with banks
with high credit rating.

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures
and control relating to customer credit risk management. An impairment analysis is performed at each reporting
date on an individual basis for major trade receivables. (Note 11)

Other financial assets

Credit risk from balances with banks and financial institutions is managed by the Company in accordance with
the Company's policy. Investments of surplus funds are made only in highly marketable debt instruments with
appropriate maturities to optimise the cash return on instruments while ensuring sufficient liquidity to meet
its liabilities. The Company maximum exposure to credit risk as at March 31, 2025 and March 31, 2024 is the
carrying value of each class of financial assets.

D. Excessive risk concentration

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

NOTE 40 - FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd.)

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

Refer Note 42( d )

NOTE 41 - CAPITAL MANAGEMENT

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

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise
returns to shareholders. The capital structure of the Company is based on management's judgement of its strategic
and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

The Company monitors capital using a gearing ratio, which is net debt divided by total equity plus net debt which is
calculated as borrowing less cash and cash equivalent, other bank balances and mutual funds investments.

d. Revenue from one customer which contributed more than 10% of company's total revenue during the year
ended March 31, 2025 amounted to '39,387 lacs (2024 - '35,118 lacs) arising from sales in various segments.

e. Revenue from sale of goods is recognised at a point in time, when control of the products being sold is transferred
to our customer and when there are no longer any unfulfilled obligations. The Performance Obligations in our
contracts are fulfilled at the time of dispatch or delivery depending on terms with customers

NOTE 43

There are no significant subsequent events that would require adjustments or disclosures in the financial statements
as on the balance sheet date.

NOTE 44

The Board of Directors, at its meeting held on March 25, 2025, had approved the sale of the Company's entire equity
stake in Jyothy Kallol Bangladesh Limited ('JKBL' or 'the Subsidiary') to Kallol Enterprise Limited ('KEL' or 'the Buyer'),
for an aggregate consideration of ' 210 Lacs. This sale of investment has resulted into a loss of ' 370 Lacs and the
said loss is shown under "Exceptional Items" in the Standalone statement of profit and loss.

JKBL ceased to be a subsidiary of the Company from March 25, 2025.

(b) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded in the books of account.

(c) Utilisation of borrowings availed from banks

There are no borrowings availed by the Company from banks and financials institutions during the year.

(d) Details of benami property held

No proceedings have been initiated on or are pending against the company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(e) Wilful defaulter

The company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

(f) Compliance with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

(g) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.

(h) Utilisation of borrowed funds and share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has
not received any fund from any party(s) (Funding Party) with the understanding that the company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company
(Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(i) Valuation of PP&E, Intangible asset and Investment property

The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or revious year.

(j) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.

(k) The quarterly returns or statements filed by the Company with banks or financial institutions are in
agreement with the books of account of the Company.

(l) Information with regards to other matters as required by Schedule III of Companies Act, 2013 are either
NIL or Not applicable to the Company.

The Board of Director's and Shareholders of the Company had approved the grant Employee Stock Units Plan 2023
("RSU Plan 2023") on June 9, 2023 and July 25, 2023 respectively, in accordance with the terms and conditions of the
Jyothy Labs Employees "RSU Plan 2023".

NOTE 47

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules
for the Code on Social Security, 2020 on November 13, 2020, and invited suggestions from stakeholders which are
under consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules
are notified. The Company will give appropriate impact in its financial statements in the period in which, the Code
becomes effective and the related rules to determine the financial impact are published.

Signatures to Notes 1 to 47

As per our report of even date

For B S R & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Jyothy Labs Limited

Firm's Registration No: 101248W/W-100022 CIN: L24240MH1992PLC128651

Vikas R Kasat M. R. Jyothy

Partner Chairperson and Managing Director

Membership No: 105317 DIN: 00571828

Shreyas Trivedi Pawan Agarwal

Company Secretary Chief Financial Officer

Membership No: A12739

Mumbai Mumbai

Date: May 12, 2025 Date: May 12, 2025