52.10 Provisions and Contingent Liabilities

A provision is recognised when the Company has a present obligation as a result of past events and it
is probable that an outflow of resources will be required to settle the obligation in respect of which a
reliable estimate can be made of the amount of obligation. The amount recognised as a provision is the
best estimate of the consideration required to settle the present obligation at the end of the reporting
year, taking into account the risks and uncertainties surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the present obligation, its carrying amount is the
present value of those cash flows (when the effect of the time value of money is material). These are
reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. Contingent liabilities are not recognised
but are disclosed in the Notes to the financial statements. Contingent assets are not recognised in the
financial statements.

52.11 Impairment of non-financial assets

At the end of each reporting year, the Company reviews the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in
order to determine the extent of the impairment loss (if any). When it is not possible to estimate the

recoverable amount of an individual asset, the Company estimates the recoverable amount of the
cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation
can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise
they are allocated to the smallest Company of cash-generating units for which a reasonable and
consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value
in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable
amount. An impairment loss is recognised immediately in the Statement of profit and loss.

52.12 Income Recognition

(i) Interest Income:

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Interest income from financial assets at fair value through profit or loss is disclosed as interest income
within other income. Interest income on financial assets at amortised cost and financial assets at fair
value through other comprehensive income is calculated using the effective interest method and is
recognised in the statement of profit and loss as part of other income.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of a
financial asset except for financial assets that subsequently become credit-impaired. For credit-impaired
financial assets the effective interest rate is applied to the net carrying amount of the financial asset
(after deduction of the loss allowance).

(ii) Dividends:

Dividends are recognised as other income in profit or loss when the right to receive payment is
established. This applies even if they are paid out of pre-acquisition profits, unless the dividend clearly
represents a recovery of part of the cost of the investment.

(iii) Lease income:

Lease income from operating leases where the company is a lessor is recognised in income on a
straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are
added to the carrying amount of the underlying asset and recognised as expense over the lease term
on the same basis as lease income. The respective leased assets are included in the balance sheet
based on their nature.

(iv) Foreign exchange gains and losses :

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency
and translated at the spot rate at the end of each reporting year. For foreign currency denominated
financial assets that are measured at amortised cost and fair value through profit and loss (“”FVTPL””),
the exchange difference are recognised in statement of profit and loss. “

52.13 Employee benefits provision

A Short-term employee benefit obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service are
recognised in respect of employees' services up to the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

B Long-term employee benefit obligations

Liabilities recognised in respect of other long-term employee benefits are measured at the present
value of the estimated future cash outflows expected to be made by the Company in respect of services
provided by the employees up to the reporting date.

(i) Share-based compensation

Equity-settled share-based payments to employees and others providing similar services are
measured at the fair value of the equity instruments at the grant date.

The fair value determined at the grant date of the equity-settled share-based payments is
expensed on a straight-line basis over the vesting period, based on the Company's estimate of
equity instruments that will eventually vest, with a corresponding increase in equity. At the end
of each reporting year, the Company revises its estimate of the number of equity instruments
expected to vest. The impact of the revision of the original estimates, if any, is recognised in the
statement of profit and loss such that the cumulative expense reflects the revised estimate, with a
corresponding adjustment to the equity-settled employee benefits reserve.

(ii) Gratuity obligations

The liability or asset recognised in the balance sheet in respect of gratuity plans is the present
value of the defined benefit obligation at the end of the reporting period less the fair value of plan
assets, if any. The defined benefit obligation is calculated annually by independent actuaries using
the projected unit credit method.

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

The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in employee benefit
expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive
income. They are included in retained earnings in the statement of changes in equity and in
the balance sheet.

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

(iii) Defined Contribution Plan

The Company pays provident fund contributions to publicly administered provident funds as per local
regulations. The Company has no further payment obligations once the contributions have been paid.
The contributions are accounted for as defined contribution plans and the contributions are recognised
as employee benefit expense when they are due.

52.14 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The Company operates under single segment of 'Kitchen and Home Appliances'.

52.15 Earnings per share

Basic earnings per share is computed by dividing statement of profit and loss attributable to equity
shareholders of the company by the weighted average number of equity shares outstanding during the
reporting year.

Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number
of equity shares considered for deriving basic EPS and also weighted average number of equity shares that
could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity
shares are deemed converted as of the beginning of the year, unless issued at a later date. Dilutive potential
equity shares are determined independently for each year presented.

52.16 Rounding of Amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest million
as per the requirement of Schedule III, unless otherwise stated. Amount mentioned as “0” in the financial
statements denote amounts rounded off being less than INR five lakhs and the sign (-) indicates that the
amounts are Nil.

53 As on March 31, 2025, the Company has undisputed provident fund dues aggregating to Rs. 0.42 relating
to few employees to be remitted to the Provident Fund Department (“Department”). Such amounts
outstanding for more than six months as at balance sheet date aggregates to Rs. 0.35. These employees
were unable to clear the KYC registration formalities with the Department due to which the Company was
unable to make the remittances.

54 In November 2023, the Income Tax Department carried out a search operations at the Company's various
business premises under Section 132 of the Income-tax Act, 1961. The Company made the necessary
disclosures to the stock exchanges regarding the search operations.

Subsequently, the Company has received notices under section 148 of the Income Tax Act, 1961, for
assessment years 2019-20 and 2020-21. In response to the notice for AY 2020-21 the Company has filed
revised return incorporating certain adjustments that do not materially impact the financial position or
results. However, for AY 2019-20, the Company has opted not to submit a revised return, as no changes to
the previously reported information are anticipated.

Further, the Company has received notices under section 142(1) of the Income Tax Act, 1961, for the
assessment years 2020-21, 2022-23 and 2023-24 for which the Company has responded. As on date the
Company has received orders u/s 143(3) and demand notice u/s 156 for the Assessment years 2020-21,
2022-23 and 2023-24 demanding additional tax aggregating to Rs. 13.5 million. The Company has filed
appeals for the AY 2022-23 and 2023-24 and has filed rectification request for AY 2020-21. The management
believes that the adjustments made are either erroneous or non-appreciative of submissions / evidence
produced. For the assessment years 2019-20, 2021-22 and 2024-25 the Income Tax Department is yet to
conclude on the assessment proceedings.

In the view of the Management the search operations and the assessment/ reassessment for various
assessment years are not likely to have any material adverse impact on the Company's financial position as
of March 31, 2025 and the performance for the year ended on that date.

55 Subsequent to the balance sheet date, the Board of Directors of the Company in their meeting dated
May 21, 2025, have recommended a final dividend of Rs.3.00 per share. This payment of final dividend is subject
to approval of shareholders in the ensuing annual general meeting.

56 Previous year's figures have been re-grouped/reclassified, wherever necessary, to conform to current year's
classification/disclosure. However there have been no material regroupings/reclassifications.

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors

Firm Registration Number: 012754N/N500016

Mohan Danivas S A Rajendra Gandhi Neha Gandhi

Partner Managing Director Executive Director

Membership Number: 209136 DIN: 01646143 DIN: 07623685

Ramakrishna Pendyala Shrinivas P Harapanahalli

Chief Financial Officer Company Secretary

Membership Number:A-26590

Place: Bengaluru Place: Bengaluru

Date: May 21, 2025 Date: May 21, 2025