2.16 Provisions and contingent liabilities
Provision

A provision is recognized when the Company has a present
obligation (legal or constructive) as a result of 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. These estimates are reviewed at each reporting
date and adjusted to reflect the current best estimates. 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 recognized as a finance cost.

Contingent liabilities

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable
that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare
cases, where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its existence
in the financial statements unless the probability of outflow
of resources is remote.

Provisions and contingent liabilities are reviewed at each
balance sheet date.

2.16 Retirement and other employee benefits(i) Short-term obligations

Liabilities for wages and salaries, including nonmonetary
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 recognized
in respect of employee service up to the end of the
reporting period and are measured at the amount
expected to be paid

when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the
balance sheet.

(ii) Other long-term employee benefit obligationsa) Gratuity

The Group has a defined benefit plan (the “Gratuity
Plan”). The gratuity plan provides a lump sum
payment to employees who have completed four years
and two hundred and forty days or more of service at
retirement, disability or termination of employment,
being an amount based on the respective employee's
last drawn salary and the number of years of
employment with the Group.

The Gratuity Plan, which is defined benefit plan, is
managed by Cupid Limited Employees Group Gratuity
Assurance Scheme (“the trust”) with its investments
maintained with Life insurance Corporation of India.
The liabilities with respect to Gratuity Plan are
determined by actuarial valuation on projected unit
credit method on the balance sheet date, based
upon which the Company contributes to the Gratuity
Scheme. The difference, if any, between the actuarial
valuation of the gratuity of employees at the year end
and the balance of funds is provided for as assets/
(liability) in the books. Net interest is calculated by
applying the discount rate to the net defined benefit
liability or asset. The Company recognizes the
following changes in the net defined benefit obligation
under Employee benefit expense in statement of profit
or loss:

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

b) Net interest expense or income remeasurements,
comprising of actuarial gains and losses, the
effect of the asset ceiling, excluding amounts
included in net interest on the net defined
benefit liability and the return on plan assets
(excluding amounts included in net interest
on the net defined benefit liability), are
recognized immediately in the Balance Sheet
with a corresponding debit or credit to retained
earnings through other comprehensive income in
the period in which they occur. Remeasurements
are not reclassified to profit or loss in subsequent
periods.

b) Provident fund

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 through provident fund scheme
as an expense, when an employee renders the related
services. If the contribution payable to scheme for
service received before the balance sheet date
exceeds the contribution already paid, the deficit
payable to the scheme is recognized as 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 excesses recognized as an asset to the
extent that the prepayment will lead to, for example, a
reduction in future payment or a cash refund.

c) Other employee benefits

Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions in respect of gratuity are recognised
in the period in which they occur, directly in other
comprehensive income and are never reclassified to
statement of profit and loss. Changes in the present
value of the defined benefit obligation resulting from
plan amendments or curtailments are recognised
immediately in the statement of profit and loss as
past service cost.

(iii) Share Based payments

Employees (including senior executives) of the Company
receive remuneration in the form of share-based
payments, whereby employees render services as
consideration for equity instruments (equity-settled
transactions). The cost of equity-settled transactions is
determined by the fair value at the date when the grant
is made using an appropriate valuation model.

That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in
equity, over the year in which the performance and/
or service conditions are fulfilled in employee benefits
expense. The cumulative expense recognised for equity-
settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting year
has expired and the Company's best estimate of the
number of equity instruments that will ultimately vest.

The expense or credit in the standalone statement of
profit and loss for a year represents the movement in
cumulative expense recognised as at the beginning and
end of that year and is recognised in employee benefits
expense.

Service and non-market performance conditions are
not taken into account when determining the grant date
fair value of awards, but the likelihood of the conditions
being met is assessed as part of the Company's best
estimate of the number of equity instruments that
will ultimately vest. Market performance conditions
are reflected within the grant date fair value. Any
other conditions attached to an award, but without
an associated service requirement, are considered
to be non-vesting conditions. Non-vesting conditions
are reflected in the fair value of an award and lead to
an immediate expensing of an award unless there
are also service and/ or performance conditions. No
expense is recognised for awards that do not ultimately
vest because non-market performance and/or service
conditions have not been met. Where awards include a
market or non-vesting condition, the transactions are
treated as vested irrespective of whether the market or
non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.

When the terms of an equity-settled award are modified,
the minimum expense recognised is the expense had
the terms had not been modified, if the original terms of
the award are met. An additional expense is recognised
for any modification that increases the total fair value
of the share-based payment transaction or is otherwise
beneficial to the employee as measured at the date of
modification. For cancelled options, the payment made
to the employee shall be accounted for as a deduction
from equity, except to the extent that the payment
exceeds the fair value of the equity instruments of
the Company, measured at the cancellation date. Any
such excess from the fair value of equity instrument
shall be recognised as an expense. The dilutive effect
of outstanding options is reflected as additional share
dilution in the computation of diluted earnings per
share.

2.17 Investment in subsidiary:

A subsidiary is an entity that is controlled by another entity.

The Company's investments in its subsidiaries, associates

and joint ventures are accounted at cost less impairment as

per IND AS 27.

The Company regardless of the nature of its involvement with
an entity (the investee), determines whether it is a parent
by assessing whether it controls the investee. The Company
controls an investee when it is exposed, or has rights, to
variable returns from its involvement with the investee and
has the ability to affect those returns through its power over
the investee.

The Company reviews its carrying value of investments
carried at cost annually, or more frequently when there is an
indication for impairment. If the recoverable amount is less
than its carrying amount, the impairment loss is recorded in
the statement of profit and loss.

When an impairment loss subsequently reverses, the
carrying amount of the Investment is increased to the revised
estimate of its recoverable amount, so that the increased
carrying amount does not exceed the cost of the Investment.
A reversal of an impairment loss is recognised immediately
in statement of profit and loss.

2.18 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.

(i) Financial Assets Initial recognition and measurement

Financial assets are classified, at initial recognition, as
subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair
value through profit or loss.

The classification of financial assets at initial recognition
depends on the financial asset's contractual cash flow
characteristics and the Company's business model for
managing them. With the exception of trade receivables
that do not contain a significant financing component
or for which the Company has applied the practical
expedient, the Company initially measures a financial
asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs.

Trade receivables that do not contain a significant
financing component or for which the Company has
applied the practical expedient and are measured at the
transaction price determined under Ind AS 115. Refer
to the accounting policies in section ‘Revenue from
contracts with customers'.

In order for a financial asset to be classified and
measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are ‘solely payments
of principal and interest (SPPI)' on the principal amount
outstanding. This assessment is referred to as the SPPI
test and is performed at an instrument level. Financial
assets with cash flows that are not SPPI are classified and
measured at fair value through profit or loss, irrespective
of the business model.

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

Subsequent measurement

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

- Financial assets at amortised cost (debt instruments),

- Financial assets at fair value through other
comprehensive income (FVTOCI) with recycling of
cumulative gains and losses (debt instruments)

- Financial assets designated at fair value through OCI
with no recycling of cumulative gains and losses upon
derecognition (equity instruments)

- Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

A ‘financial asset' is measured at the amortised cost if
both the following conditions are met:

a) Business Model Test : The objective is to hold
the financial asset to collect the contractual cash
flows (rather than to sell the instrument prior to
its contractual maturity to realize its fair value
changes) and;

b) Cash flow characteristics test: The contractual terms
of the financial asset give rise on specific dates to
cash flows that are solely payments of principal and
interest on principal amount outstanding.

This category is most relevant to the Company. After initial
measurement, such financial assets are subsequently
measured at amortized cost using the effective interest rate
(EIR) method. Amortised cost is calculated by taking into
account any discount or premium on acquisition and fees
or costs that are an integral part of EIR. EIR is the rate that
exactly discounts the estimated future cash receipts over
the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount of
the financial asset. When calculating the effective interest
rate, the Company estimates the expected cash flows
by considering all the contractual terms of the financial
instrument but does not consider the expected credit losses.
The EIR amortization is included in other income in profit or
loss. The losses arising from impairment are recognized in
the profit or loss. This category generally applies to trade and
other receivables.

Financial assets at fair value through OCI (FVTOCI) (debt
instruments)

A ‘financial asset' is classified as at the FVTOCI if both of
the following criteria are met:

a) Business Model Test : The objective of financial
instrument is achieved by both collecting contractual
cash flows and selling the financial assets; and

b) Cash flow characteristics test: The contractual terms of
the Debt instrument give rise on specific dates to cash
flows that are solely payments of principal and interest
on principal amount outstanding.

Debt instrument included within the FVTOCI category are
measured initially as well as at each reporting date at fair
value. Fair value movements are recognized in the other
comprehensive income (OCI), except for the recognition of
interest income, impairment gains or losses and foreign
exchange gains or losses which are recognized in statement
of profit and loss and computed in the same manner
as for financial assets measured at amortised cost. The
remaining fair value changes are recognised in OCI. Upon
derecognition, the cumulative fair value changes recognised
in OCI is reclassified from the equity to profit or loss.

Financial assets at fair value through profit or loss (FVTPL)

Financial assets at fair value through profit or loss are
carried in the balance sheet at fair value with net changes in
fair value recognised in the statement of profit and loss.

This category includes derivative instruments and equity
oriented mutual funds investments which the Company had
not irrevocably elected to classify at fair value through OCI.

Financial assets designated at fair value through OCI
(FVTOCI) (equity instruments)

Upon initial recognition, the Company can elect to classify
irrevocably its equity investments as equity instruments
designated at fair value through OCI when they meet the
definition of equity under Ind AS 32 Financial Instruments:
Presentation and are not held for trading. The classification
is determined on an instrument-by-instrument basis. Equity
instruments which are held for trading and contingent
consideration recognised by an acquirer in a business
combination to which Ind AS103 applies are classified as at
FVTPL.

Gains and losses on these financial assets are never
recycled to profit or loss. Dividends are recognised as other
income in the statement of profit and loss when the right of
payment has been established, except when the Company
benefits from such proceeds as a recovery of part of the cost
of the financial asset, in which case, such gains are recorded
in OCI. Equity instruments designated at fair value through
OCI are not subject to impairment assessment.

Derecognition

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 statement
of financial position) 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

- The Company has transferred its rights to receive cash
flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay
to a third party under a “pass through” arrangement
and either;

(a) the Company has transferred substantially all the risks
and rewards of the asset, or

(b) the Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has
transferred control of the asset.

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

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

Impairment of financial assets

In accordance with IND AS 109, the Company applies
expected credit losses( ECL) model for measurement and
recognition of impairment loss on the following financial
asset and credit risk exposure

- Financial assets measured at amortized cost;

- Financial assets measured at fair value through other
comprehensive income(FVTOCI);

ECLs are based on the difference between the contractual
cash flows due in accordance with the contract and all the
cash flows that the Company expects to receive, discounted
at an approximation of the original effective interest rate.
The expected cash flows will include cash flows from the
sale of collateral held or other credit enhancements that are
integral to the contractual terms.

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

of the exposure, irrespective of the timing of the default (a
lifetime ECL).

The Company follows “simplified approach” for recognition of
impairment loss allowance on:

- Trade receivables or contract revenue receivables;

- All lease receivables resulting from the transactions within
the scope of Ind AS 116 -Leases

Under the simplified approach, the Company does not track
changes in credit risk. Rather , it recognizes impairment
loss allowance based on lifetime ECLs at each reporting
date, right from its initial recognition. The Company uses a
provision matrix to determine impairment loss allowance
on the portfolio of trade receivables. The provision matrix
is based on its historically observed default rates over the
expected life of trade receivable and is adjusted for forward
looking estimates. At every reporting date, the historical
observed default rates are updated and changes in the
forward looking estimates are analysed.

ECL impairment loss allowance (or reversal) recognized
during the period is recognized as income/ expense in the
statement of profit and loss. This amount is reflected under
the head ‘other expenses' in the statement of profit and loss.

The balance sheet presentation for various financial
instruments is described below:

A) Financial assets measured as at amortised cost: ECL

is presented as an allowance, i.e., as an integral part
of the measurement of those assets in the balance
sheet. The allowance reduces the net carrying amount.
Until the asset meets write-off criteria, the company
does not reduce impairment allowance from the gross
carrying amount.

B) Loan commitments and financial guarantee: ECL is

presented as a provision in the balance sheet, i.e. as a
liability.

C) Debt instruments measured at FVTOCI: For debt
instruments measured at FVTOCI, the expected credit
losses do not reduce the carrying amount in the
balance sheet, which remains at fair value. Instead, an
amount equal to the allowance that would arise if the
asset was measured at amortised cost is recognised
in other comprehensive income as the accumulated
impairment amount

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 recognized
in the statement of profit and loss.

Offsetting of financial instruments

Financials 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 recognized
amounts and there is an intention to settle on a net basis, to
realize the assets and settle the liabilities simultaneously.

Reclassification of financial assets/ financial liabilities

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 change in the business model as
a result of external or internal changes 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 immediately next reporting period following
the change in business model. The Company does not
restate any previously recognised gains, losses (including
impairment gains or losses) or interest.

2.19 Derivative financial instruments and hedge accounting:
Initial recognition and subsequent measurement

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.

The purchase contracts that meet the definition of a
derivative under Ind AS 109 are recognised in the statement
of profit and loss. Commodity contracts that are entered
into and continue to be held for the purpose of the receipt
or delivery of a non-financial item in accordance with the
Group's expected purchase, sale or usage requirements are
held at cost.

Any gains or losses arising from changes in the fair value of
derivatives are taken directly to profit or loss, except for the
effective portion of cash flow hedges, which is recognised in
OCI and later reclassified to profit or loss when the hedge
item affects profit or loss or treated as basis adjustment if
a hedged forecast transaction subsequently results in the
recognition of a non-financial asset or non-financial liability.

For the purpose of hedge accounting, hedges are classified
as:

a) Fair value hedges when hedging the exposure to changes
in the fair value of a recognised asset or liability or an
unrecognised firm commitment

b) Cash flow hedges when hedging the exposure to variability
in cash flows that is either attributable to a particular risk
associated with a recognised asset or liability or a highly
probable forecast transaction or the foreign currency risk in
an unrecognised firm commitment

c) Hedges of a net investment in a foreign operation Hedges
that meet the strict criteria for hedge accounting are
accounted for, as described below:

Fair Value hedges

The change in the fair value of a hedging instrument is
recognised in the statement of profit and loss as finance
costs. The change in the fair value of the hedged item
attributable to the risk hedged is recorded as part of the
carrying value of the hedged item and is also recognised
in the statement of profit and loss as finance costs.
For fair value hedges relating to items carried at amortised
cost, any adjustment to carrying value is amortised through
profit or loss over the remaining term of the hedge using
the EIR method. EIR amortisation may begin as soon as an
adjustment exists and no later than when the hedged item
ceases to be adjusted for changes in its fair value attributable
to the risk being hedged.

If the hedged item is derecognised, the unamortised fair
value is recognised immediately in profit or loss. When an
unrecognised firm commitment is designated as a hedged
item, the subsequent cumulative change in the fair value
of the firm commitment attributable to the hedged risk is
recognised as an asset or liability with a corresponding gain
or loss recognised in profit and loss.

Cash Flow hedges

The effective portion of the gain or loss on the hedging
instrument is recognised in OCI in the cash flow hedge reserve,
while any ineffective portion is recognised immediately in the
statement of profit and loss.

The ineffective portion relating to foreign currency contracts
is recognised in finance costs and the ineffective portion
relating to commodity contracts is recognised in other
income or expenses.

Amounts recognised as OCI are transferred to profit or loss
when the hedged transaction affects profit or loss, such as
when the hedged financial income or financial expense is
recognised or when a forecast sale occurs. When the hedged
item is the cost of a non-financial asset or non-financial
liability, the amounts recognised as OCI are transferred to the
initial carrying amount of the non-financial asset or liability.

If the hedging instrument expires or is sold, terminated or
exercised without replacement or rollover (as part of the
hedging strategy), or if its designation as a hedge is revoked,
or when the hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss previously recognised
in OCI remains separately in equity until the forecast
transaction occurs or the foreign currency firm commitment
is met.

2.20 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, that are readily
convertible to a known amount of cash and subject to an
insignificant risk of changes in value. For the purpose of
the standalone 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.

2.21 Earnings Per Share

Basic earnings per share are calculated by dividing the net
profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity
shares outstanding during the period is adjusted for events
such as bonus issue, bonus element in a rights issue, share
split, and reverse share split (consolidation of shares) that
have changed the number of equity shares outstanding,
without a corresponding change in resources.

For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effect of
all potentially dilutive equity shares.

2.22 Segment reporting - Identification of Segments:

An operating segment is a component of the Company
that engages in business activities from which it may earn
revenues and incur expenses, whose operating results
are regularly reviewed by the Company's Chief Operating
Decision Maker (“CODM”) to make decisions for which
discrete financial information is available.

Based on the management approach as defined in Ind AS
108, the CODM evaluates the Company's performance
and allocates resources based on an analysis of various
performance indicators by business segments and
geographic segments.

2.23 Cash Flow Statement:

Cash flows are reported using the indirect method, whereby
the net profit before tax is adjusted for the effects of
transactions of a noncash 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.

2.24 Significant accounting judgments, estimates and
assumptions

The preparation of the financial statements in conformity
with Ind AS requires management to make judgments,
estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets,
liabilities, Revenue and expenses. 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. Estimates and
underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future
periods affected. In particular, information about significant
areas of estimation, uncertainty and critical judgments in
applying accounting policies that have the most significant
effect on the amounts recognised in the financial statements
are included in the following notes:

i) Useful Lives of Property, Plant & Equipment: The
Company uses its technical expertise along with
historical and industrial trends for determining the
economic life of an asset. The useful life is reviewed
by the management periodically and revised, if
appropriate. In case of a revision, the unamortised
depreciable amount is charged over the remaining
useful life of the asset.

ii) Defined Benefit Plans: The cost of the defined benefit
plans gratuity and the present value of the gratuity
obligation are based on actuarial valuation using the
projected unit credit method. 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.

iii) 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 valuation techniques
including the Discounted Cash Flow model. The inputs
to these models are taken from observable markets
where possible, but where this is not feasible, a degree
of judgement is required in establishing fair values.
Judgements include considerations of inputs such as
liquidity risk, credit risk and volatility.

iv) Expected Credit Losses on Financial Assets: The
impairment provisions of financial assets are based on
assumptions about risk of default and expected timing
of collection. The Company uses judgment in making
these assumptions and selecting the inputs to the
impairment calculation, based on the Company's past
history, customer's creditworthiness, existing market
conditions as well as forward looking estimates at the
end of each reporting period.

v) Classification of Lease Ind AS 116: Ind AS 116 Leases
requires a lessee to determine the lease term as the
non-cancellable period of a lease adjusted with any
option to extend or terminate the lease, if the use
of such option is reasonably certain. The Company
makes an assessment on the expected lease term on
lease by lease basis and thereby assesses whether
it is reasonably certain that any options to extend or
terminate the contract will be exercised. In evaluating
the lease term, the Company considers factors such
as any significant leasehold improvements undertaken
over the lease term, costs relating to the termination of
lease and the importance of the underlying lease to the
Company's operations taking into account the location
of the underlying asset and the availability of the
suitable alternatives. The lease term in future periods

is reassessed to ensure that the lease term reflects the
current economic circumstances. The discount rate
is generally based on the incremental borrowing rate
specific to the lease being evaluated or for a portfolio
of leases with similar characteristics.

vi) Recognition and measurement of deferred tax assets
and liabilities: Deferred tax assets and liabilities are
recognised for deductible temporary differences
and unused tax losses for which there is probability
of utilisation against the future taxable profit. The
Company uses judgement to determine the amount
of deferred tax liability / asset that can be recognised,
based upon the likely timing and the level of future
taxable profits and business developments.

vii) Income Taxes: The Company calculates income tax
expense based on reported income and estimated
exemptions / deduction likely available to the Company.
The Company has applied the lower income tax rates
on income tax expenses and the deferred tax assets /
liabilities.

viii) Share Based Payments: The Company measures the
cost of equity settled transactions with employees
using BlackScholes model to determine the fair value
of the liability incurred on the grant date. Estimating fair
value for share-based payment transactions requires
determination of the most appropriate valuation model,
which is dependent on the terms and conditions of
the grant. This estimate also requires determination
of the most appropriate inputs to the valuation model
including the expected life of the share option, volatility
and dividend yield and making assumptions about
them.

ix) Property, Plant and Equipment: Property, Plant and
Equipment represent significant portion of the asset
base of the Company charge in respect of periodic
depreciation is derived after determining an estimate
of assets expected useful life and expected value at the
end of its useful life. The useful life and residual value
of Company's assets are determined by Management
at the time asset is acquired and reviewed periodically
including at the end of each year. The useful life is
based on historical experience with similar assets, in
anticipation of future events, which may have impact
on their life such as change in technology.

b) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of ' 1 per share. Each holder of equity share is entitled to one
vote per share.

In the event of liquidation of the Company, the holder 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.

(i) Securities premium

The amount received in excess of face value of equity shares is recognised in share premium. This reserve is utilised in accordance
with the specific provisions of the Companies Act 2013.

(ii) Share based payment reserve

The Company offers Employee share option plan (ESOP), under which options to subscribe for the Company's share have been
granted to certain employees and senior management. The share based payment reserve is used to recognise the value of equity
settled share based payments provided as part of the ESOP scheme.

(iii) Retained earnings

Retained earnings represents surplus/accumulated earnings of the Group and are available for distribution to shareholders.

(iv) Capital Reserve

Capital reserve will be utilised in accordance with provision of the Act.

(v) Other comprehensive income

Other comprehensive income consists of remeasurement gains/ (loss) on defined benefit plans.

The Company has elected to exercise the option with regards to the tax rate mentioned under section 115BAA of the Income-tax
Act, 1961as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognized Provision
for Income Tax for the year ended 31 March 2026 basis the rate prescribed in the said section. The impact of this change has been
recognized in the statement of Profit & Loss for the year ended 31 March 2026.

Note 39 : Segment Reporting

(i) Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (*CODM”) of the Company. The CODM, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Chief Finance Officer of the Company. The Company is engaged in manufacturing
and trading of Personal Care Products. Accordingly, the Company has only one reportable segment ‘Personal care' and hence
does not have any reportable Segments as per Ind AS 108 “Operating Segments”.

Defined Benefit Plans

The Company has the following Defined Benefit Plans:

Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (“The Gratuity
Plan”) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to
completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn
salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting
date and the Company makes annual contribution to the gratuity fund administered by life Insurance Companies under their respective
Group Gratuity Schemes.

During the year ended 31 March 2026, the Central Government of India has notified the Code on Wages, 2019, the Industrial Relations
Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020, collectively
referred to as the ‘New Labour Codes', effective from 21 November 2025 primarily impacting the wage definition to be considered for
the purpose of defined benefit obligation relating to gratuity.

The new Labour Codes introduced by the Government of India, inter alia, require gratuity to be computed based on wages constituting
at least 50% of the total remuneration. The remuneration structure of the employees of the Company was already aligned with the
requirements of the new Labour Codes. Accordingly, gratuity has been computed based on wages constituting at least 50% of the
total remuneration. Consequently, there is no incremental impact on the gratuity liability for any past service cost arising from the
implementation of the new Labour Codes.

Note 42: Financial instruments - Fair values and risk management

A. Accounting classification and fair values

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

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

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either
directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data.

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in
the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair
value if the carrying amount is a reasonable approximation of fair value.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs

he Fair Value of the Financial Assets & Liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, for financial instruments
measured at fair value in the statement of financial position, as well as the significant unobservable inputs used.

which identifies the risk and lays down the risk minimization procedures. The Management reviews the Risk management
policies and systems on a regular basis to reflect changes in market conditions and the Company's activities, and the same
is reported to the Board of Directors periodically. Further, the Company, in order to deal with the future risks, has in place
various methods / processes which have been imbibed in its organizational structure and proper internal controls are in
place to keep a check on lapses, and the same are been modified in accordance with the regular requirements.

‘The Audit Committee oversees how Management monitors compliance with the Company's Risk Management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The
Audit Committee is assisted in its oversight role by the internal auditors.

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, and arises principally from the Company's receivables from customers and loans and advances. The
carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables and loans and advances:. The Company's exposure to credit risk is influenced mainly by the individual
characteristics of each customer in which it operates. Credit risk is managed through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the
normal course of business. The Risk Management Committee has established a credit policy under which each new
customer is analysed individually for creditworthiness before the Company's standard payment and delivery terms and
conditions are offered. Further for domestic sales, the company segments the customers into Distributors and Others for
credit monitoring. The Company maintains security deposits for sales made to its distributors. For other trade receivables, the
company individually monitors the sanctioned credit limits as against the outstanding balances. Accordingly, the Company
makes specific provisions against such trade receivables wherever required and monitors the same at periodic intervals. The
Company monitors each loans and advances given and makes any specific provision wherever required.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the
business environment in which the entity operates. The Company uses a provision matrix to compute the expected credit
loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors
such as credit ratings from credit rating agencies, financial condition, ageing of accounts receivable and the Company's
historical experience for customers. The Company establishes an allowance for impairment that represents its estimate of
expected losses in respect of trade receivables and loans and advances.

C. Financials Risk Management

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

- Credit risk

- Liquidity risk ; and

- Market risk

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 Board of Directors have adopted an Enterprise Risk Management Policy framed by the Company,

Loans and Other financial assets:

The Company held loans and other financial assets as on March 31, 2026 is of ' 1687.91 lacs (Previous year ' 392.10 lakhs).
The loans and other financial assets are in nature of Loan to others, Security deposits with maturity more than twelve months and
others and are fully recoverable.

Cash and cash equivalents and other Bank balances

The Company held cash and cash equivalents and other bank balances as on 31 March 2026 is of '18,567.95 lacs (Previous
year ' 6,857.36 lacs). The cash and cash equivalents are held with bank with good credit ratings and financial institution
counterparties with good market standing.

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 asset. Liquidity risk is managed by Company through effective fund
management of the Company's short, medium and long-term funding and liquidity management requirements. The Company
manages liquidity risk by maintaining adequate reserves, banking facilities and other borrowing facilities, by continuously
monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Maturity profile of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

iv) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect
the Company's income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive
financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk
primarily related to foreign exchange rate risk, interest rate risk and the market value of our investments. Thus, our exposure to
market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency.
The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

(v) Currency risk

Currency risk The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The
functional currency of the Company is Indian Rupee. The Company uses forward exchange contracts to hedge its currency risk,
most with a maturity of less than one year from the reporting date. Exposure to currency risk (Exposure in different currencies
converted to functional currency i.e. INR)

(a) Exposure to currency risk

The currency profile of financial assets and financial liabilities as at March 31, 2026 and March 31, 2025

(b) Sensitivity analysis

A reasonably possible strengthening (weakening) of the foreign Currency against the Indian Rupee at 31st March 26 would have
affected the measurement of financial instruments denominated in foreign currencies and affected equity and profit or loss by the
amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any
impact of forecast sales and purchases.

(d) Derivative financial instruments:

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in
exchange rates on foreign currency exposures. The counter party for this contracts is generally a bank or exchange. This derivative
financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are
directly or indirectly observable in the market place.

Note 43 : Capital Management

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable
to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can
maximise returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and
minimise cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of
the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares
or adjust the dividend payment to shareholders (if permitted). Consistent with others in the industry, the Company monitors its capital
using the gearing ratio which is total debt divided by total capital plus total debt.

Note 48 : Regulatory Disclosures

a) The Company has not been declared as wilful defaulter by any bank or financial institution or any other lender

b) The Company does not have any charges, which is yet to be registered with Registrar of Companies, beyond the statutory period
prescribed under the Companies Act, 2013 and the rules made thereunder. The Company has charge which is yet to be satisfied
with the Registrar of Companies beyond the statutory period prescribed under Companies Act, 2013, the Company has taken no
due certificate from the bank and process of satisfaction of charges with ROC is under process.

c) The Company has not entered into any transaction which has not been recorded in the books of account, 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).

d) The Company has not traded or invested in crypto currency or virtual currency during the year.

e) The Company does not have any Benami property and further, no proceedings have been initiated or are pending against the
Company, in this regard.

f) The Company has not entered into any transactions with struck off companies, as defined under the Companies Act, 2013 and
rules made thereunder.

g) The statements in respect of the working capital limits filed by the Company with such banks or financial institutions are in
agreement with the books of accounts of the Company for the respective periods.

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

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(I) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries