అకౌంట్స్ గమనికలుLohia Corp Ltd.

Financial assets

Initial recognition and measurement

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 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 OCI are held within a business model with the
objective of both holding to collect contractual cash
flows and selling.

Purchases or sales of financial assets that require
delivery of assets within a time frame established by
regulation or convention in the market place (regular
way trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or sell
the asset.

Subsequent measurement

I. Financial assets carried at amortised cost - a

financial asset 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 on the
principal amount outstanding.

After initial measurement, such financial assets
are subsequently measured at amortised cost
using the effective interest method.

II. Investments in mutual funds and other
investments - Investments in mutual funds and
other investments are subsequently measured at
fair value through profit and loss (FVTPL).

III. Investments in equity instruments of
subsidiaries, joint ventures and associates -

Investments in equity instruments of subsidiaries,
joint ventures and associates are accounted for
at cost in accordance with Ind AS 27 Separate
Financial Statements.

iv. Trade receivables - Trade receivables are amounts
due from customers for goods sold or services
performed in the ordinary course of business
and reflects the Company’s unconditional right
to consideration (that is, payment is due only
on the passage of time). Trade receivables are
recognised initially at the transaction price as they
do not contain significant financing components.
The Company holds trade receivables with the
objective to collect the contractual cash flows
and therefore measures them subsequently at
amortised cost using the effective interest method,
less loss allowance. For trade receivables, the
Company applies the simplified approach required
by Ind AS 109, which requires expected lifetime
losses to be recognised from initial recognition
of the receivables.

V. Cash and cash equivalents - Cash and cash
equivalents comprise cash at bank and in 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.

For the purposes of the cash flow statement, cash
and cash equivalents is as defined above.

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies
expected credit loss (ECL) model for measurement
and recognition of impairment loss on the following
financial assets and credit risk exposure:

• Financial assets are measured at amortised cost
e.g., loans, deposits and trade receivables

• Trade receivables under Ind-AS 115.

The Company follows ''simplified approach’ for
recognition of impairment loss allowance on
trade receivables.

The application of simplified approach does not require
the Company to track changes in credit risk. Rather,
it recognizes impairment loss allowance based on
lifetime ECLs at each reporting date, right from its
initial recognition.

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
that whether there has been a significant increase in
the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used
to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in
a subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then the
entity reverts to recognising impairment loss allowance
based on 12-month ECL.

ECL is the difference between all contractual cash flows
that are due to the Company in accordance with the
contract and all the cash flows that the entity expects
to receive (i.e., all cash shortfalls), discounted at the
original EIR. When estimating the cash flows, an entity
is required to consider:

• All contractual terms of the financial instrument
(including prepayment extension, call and similar
options) over the expected life of the financial
instrument. However, in rare cases when the expected
life of the financial instrument cannot be estimated
reliably, then the entity is required to use the remaining
contractual term of the financial instrument.

• Cash flows from the sale of collateral held or
other credit enhancements that are integral to the
contractual terms.

As a practical expedient, the Company uses a provision
matrix to determine impairment loss allowance on
portfolio of its trade receivables. The provision matrix is
based on its historically observed default rates over the
expected life of the trade receivables 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.

For 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.

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.

De-recognition of financial assets

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 standalone balance sheet) when:

• The rights to receive cash flows from the asset have

expired, or

• The Company has transferred its rights to receive cash
flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay
to a third party under a ''pass-through’ arrangement; and
either (a) the Company has transferred substantially all
the risks and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred
control of the asset.

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

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective
hedge, as appropriate.

All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and
other payables and loans and borrowings including
bank overdrafts.

Subsequent measurement

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

Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair
value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for
the purpose of repurchasing in the near term. Gains or
losses on liabilities held for trading are recognised in
the profit or loss.

Financial liabilities designated upon initial recognition
at fair value through profit or loss are designated as such
at the initial date of recognition, and only if the criteria
in Ind-AS 109 are satisfied. For liabilities designated as
FVTPL, fair value gains/ losses attributable to changes
in own credit risk are recognized in OCI. These gains/
loss are not subsequently transferred to the statement
of profit and loss. However, the Company may transfer
the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised in
the statement of profit and loss.

Loans and borrowings

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.

Trade and other payables

These amounts represent liabilities for goods and
services provided to the Company prior to the end of
the financial year which are unpaid. The amounts are
unsecured and are usually paid as per the payment
cycle of the Company. Trade and other payables are
presented as current liabilities unless payment is
not due within 12 months after the reporting period.
They are recognised initially at their fair value and
subsequently measured at amortised cost using the
effective interest method.

De-recognition of financial liabilities

A financial liability is de-recognized 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 de-recognition 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.

Re-classification of financial assets and
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
recognized gains, losses (including impairment gains
or losses) 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.

.17 Measurement of fair values

In determining the fair value of its financial instruments,
the Company uses a variety of methods and
assumptions that are based on market conditions and
risks existing at each reporting date. All methods of
assessing fair value result in general approximation of
value, and such value may never actually be realised.

Assets and liabilities are to be measured based on the
following valuation techniques:

a) Market approach - Prices and other relevant
information generated by market transactions
involving identical or comparable assets
or liabilities.

b) Income approach - Converting the future amounts
based on market expectations to its present value
using the discounting methodology.

c) Cost approach - Replacement cost method.

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

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

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

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

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

The Company recognises transfers between levels
of the fair value hierarchy at the end of the reporting
period during which the change has occurred.

1.18 Income taxes

Income tax expense comprises current and deferred
tax. It is recognized in profit or loss except to the extent
that it relates to items recognized directly in Equity or
in Other Comprehensive Income.

a) Current tax:

Current tax assets and liabilities are measured at
the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that
are enacted or substantively enacted in India, at
the balance sheet date.

Current tax relating to items recognised outside
statement of profit and loss is recognised
outside statement of profit and loss (either
in other comprehensive income or in equity).
Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject
to interpretation and establishes provisions
where appropriate.

Current tax assets are offset against current
tax liabilities if, and only if, a legally enforceable
right exists to set off the recognised amounts

and there is an intention either to settle on a
net basis, or to realise the asset and settle the
liability simultaneously.

b) Deferred tax:

Deferred tax is provided using the balance sheet
liability method on temporary differences between
the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes
at the balance sheet date.

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

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

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

Deferred tax relating to items recognised outside
statementofprofitandlossisrecognisedoutsidestatement
ofprofitandloss(eitherinothercomprehensiveincomeorin
equity).

Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities
and the deferred taxes relate to the same taxable
entity and the same taxation authority.

1.19 Investment in subsidiaries

I nvestments 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
these investments, the difference between net disposal
proceeds and the carrying amounts are recognised in
the statement of profit and loss.

Disclosure of lease

The Company has leases for land and buildings. With the exception of short-term leases and leases with variable lease
payments, each lease is reflected on the balance sheet as a right-of use asset and a lease liabilities.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to
another party, the right-of-use asset (ROU) can only be used by the Company. Leases are either non-cancellable or may only
be cancelled by incurring a substantive termination fee. Some leases contain an option to extend the lease for a further
term. The Company is prohibited from selling or pledging the underlying leased assets as security against the Company’s
other debts and liabilities. For leases over buildings, the Company must keep those properties in a good state of repair and
return the properties in their original condition at the end of the lease. Further, the Company must ensure items of property,
plant and equipment and incur maintenance fees on such items in accordance with the lease contracts.

b. The rights, preferences and restrictions attaching to each class of shares including
restrictions on the distribution of dividends and the repayment of capital

The Company has one class of equity shares having a par value of ? 1 each. Each shareholder is eligible for one vote per
share held. The Company declares and pays dividend in Indian rupees. 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.

e. The Company vide board resolution dated 18 June 2025 and shareholder resolution dated 21 June 2025 had approved
the Employee stock Option Plan, 2025 and authorised to create, offer, issue and allot 50,00,000 employee stock
options under Employee Stock Option Plan, 2025, for the benefit of employees and directors of the Company as
decided by the Board. Pending the number of options granted, no adjustment has been recorded in theses standalone
financial statements.

f. No shares have been issued as bonus shares or issued for consideration other than cash or bought back during the
period of immediately preceding the reporting date, except the equity shares issued in lieu of assets and liabilities
transferred from Demerged Undertaking of Lohia Trade Services Private Limited (formerly known as Lohia Trade
Services Limited), pursuant to the Scheme of arrangement between the Company and Lohia Trade Service Limited.
(refer note 49)

g. Pursuant to the Scheme of arrangement between the Company and Lohia Trade Services Private Limited (formerly
known as Lohia Trade Services Limited), the Company has issued equity shares in lieu of assets and liabilities transferred
from Demerged Undertaking of LTSL. Refer note 49.

Description of reserves:

Capital reserve

Capital reserve represents reserve created on consequent to the Scheme of arrangement with Lohia Trade Services Private
Limited (formerly known as Lohia Trade Services Limited) (refer note 50)

Retained earnings

All the profits or losses made by the Company are transferred to retained earnings from standalone statement of profit
and loss.

Cash flow hedging reserve

The cash flow hedging reserve is used to recognise the effective portion of gains or losses on derivatives that are designated
and qualify as cash flow hedges, as described in note 1.15. Amounts are subsequently reclassified to profit or loss.

a. Details of performance obligation associated with revenue recognition
Satisfaction of performance obligations

The Company’s revenue is derived from the single performance obligation to transfer products. Revenue from sale of
products is recognised when control of the products has transferred, being when the goods are made available to the
carrier or the buyer has taken the possession of the goods, depending on the delivery terms, the risk of loss has been
transferred and either the customer has accepted the products in accordance with the sales contract, or the Company
has objective evidence that all criteria for acceptance have been satisfied.

b. Variable considerations associated with such sales

The customer incentive is recognised based on purchases made by the customers and contractors in line with ongoing
schemes and incentive programmes rolled out by the Company. Revenue are net of incentives to customers and
contractors amounting to ? 58.42 millions (31 March 2025: ? 58.00 millions).

(a) The Company holds 100% equity share capital in Leesona Corp, USA (hereinafter referred to as "”Leesona””). The
value of investments as at 31 March 2026 is ? 104.27 millions which is accounted for at cost less impairment. During
the current year, management has assessed the recoverability of the investments in Leesona, including the future
projections, to identify indications of diminution, other than temporary, in the value of the investments.

Accordingly, the Company has recognised impairment of ? 104.27 millions during the year ended 31 March 2026 which
has been presented as diminution in value of investment in subsidiary.

(b) On 21 November 2025, the Government of India notified the four Labour Codes-namely, 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-thereby consolidating 29 existing labour laws. To facilitate the assessment of the financial
impact arising from these regulatory changes, the Ministry of Labour & Employment issued draft Central Rules and
related FAQs.

The Company will continue to evaluate the impact of future regulatory clarification and rules.

The Company has evaluated and disclosed the incremental impact of these changes based on the analysis of information
available and actuarial valuation. Given the material, regulatory-driven, and non-recurring nature of this impact, the
Company has presented the incremental charge relating to gratuity ? 65.59 million and compensated absences ? 28.57
million, aggregating to ? 94.16 million under ''Exceptional items’ in these standalone financial statements.

35 Earnings per share

The Company’s earnings per share is determined based on the net profit attributable to the shareholders’ of the Company.
Basic earnings per share is computed using the weighted average number of shares outstanding during the year. Diluted
earnings per share is computed using the weighted average number of common and dilutive common equivalent shares
outstanding during the period, except where the result would be anti-dilutive.

d. Corporate guarantees given"

The Company has issued corporate guarantee aggregating to ? 413.00 millions (31 March 2025: ? 413.00) millions
on behalf of its subsidiary company Leesona Corp, USA to HSBC bank for the purpose of credit facility taken by
the subsidiary.

"Includes guarantee which was transferred to the Company pursuant to hon''ble NCLT order dated 16 April 2024. (Refer note no 50)

e. There are no contingent assets as at 31 March 2026.

38 Segment reporting

a. General information

The Company''s primary business segment is reflected based on principal business activities carried on by the Company.
Chairman and Managing Director has been identified as being the Chief Operating Decision Maker (''CODM'') and evaluates the
Company’s performance and allocates resources based on analysis of the various performance indicators of the Company
as a single unit. As per Indian Accounting Standard 108, Operating Segments, as notified under the Companies (Indian
Accounting Standards) Rules 2015, the Company operates in one reportable business segment i.e., manufacturing of range
of machines required by hdpe/pp woven fabric industry (for plastic woven sacks, FIBC, tarpaulins etc.)

Description of risk exposures:

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:

(i) Asset volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan
assets underperform this yield, this will create a return lesser than the yield. Most of the plan asset investments
are in fixed income securities with high grades and in government securities. These are subject to interest rate
risk and the fund manages interest rate risk to minimise risk to an acceptable level.

(ii) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If
the bond yield falls, the defined benefits obligation will tend to increase.

(iii) Salary risk: Higher than expected increase in salary will increase the defined benefit obligation.

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

H. The impact on employee benefit obligations pursuant to change in actuarial assumptions is taken to other
comprehensive income.

I. Significant estimates

Employee benefit obligations are determined using actuarial valuations. An actuarial valuation involves making
appropriate 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.

Terms and conditions of transactions with related parties

The transactions with related parties are made in the ordinary business and on terms equivalent to those that prevail in arm’s
length transactions. Outstanding balances at the period-end are unsecured and settlement occurs in cash. This assessment
is undertaken each financial year through examining the financial position of the related party and the market in which the
related party operates.

42 Fair value measurements

The fair values of the financial assets and financial 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 sales.

Notes:

The carrying amounts of loans, trade receivables, other financial assets, trade payables and cash and cash equivalents are
considered to be the same as their fair values, due to their short-term nature.

Loans given by the Company are linked to market rate of interest and hence, carrying value is the best estimate of fair value.

The fair values for security deposits are calculated based on cash flows discounted using a current lending rate. The fair
values of non-current borrowings are based on discounted cash flows using current borrowing rate. They are classified as
level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

The fair values of financial assets and financial liabilities recorded in the balance sheet in respect of which quoted prices
in active markets are available are measured using valuation techniques. 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. Changes in assumptions
about these factors could affect the reported fair value of financial instruments.

Level 1 Hierarchy includes financial instruments measured using quoted prices. There is no financial assets and liabilities
which qualify for level I hierarchy.

Level 2 Hierarchy includes the fair value of financial instruments that are not traded in an active market (for example, over-the
counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely
as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in level 2. This includes foreign exchange forward contracts and in case of unlisted mutual fund
the same is determined using NAV based valuation as provided by the fund.

Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is included in level
3.This is the case for unlisted equity securities included in level 3. There are no transfers between levels 1 and 2 during the
year. The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the
reporting period.

Valuation techniques used to determine fair values

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and
paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions
were used to estimate the fair values:

Other non-current financial assets and liabilities: Fair value is calculated using a discounted cash flow model with market
assumptions, unless the carrying value is considered to approximate the fair value.

Derivative financial assets/liabilities: The Company enters into derivative contracts with various counterparties, principally
financial institutions with investment grade credit ratings. Forward foreign currency contracts are determined using forward
exchange rates at the balance sheet date.

Trade receivables, cash and cash equivalents, loans, current investment, other current financial assets, trade payables
and other current financial liabilities: Approximate their carrying amounts largely due to the short-term maturities of
these instruments.

Investments traded in active markets are determined by reference to quotes from the financial institutions-: Net asset
value (NAV) for investments in mutual funds declared by mutual fund house, quoted price of equity shares in the stock
exchange etc.

Valuation processes

Fair value of derivatives using dealer quotes for similar instruments (on marked to market value as on balance
sheet date of such derivative transaction).

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities
required for financial reporting purposes, including level 3 fair values. This team performs valuation either internally or
externally through valuers and reports directly to the senior management. Discussions on valuation and results are held
between the senior management and valuation team on annual basis.

The main level 3 inputs for unlisted equity securities, used by the Company are derived and evaluated as follows:

The use of quoted market prices / dealer quotes / profit earning (PE) for similar instruments

Risk adjustments specific to the counterparties (including assumptions about credit default rates) are derived from credit
risk grading determined by the Company’s internal credit risk management.

Earnings growth factor for unlisted equity securities are estimated based on market information for similar types of companies.

43 Financial risk management

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 has established the risk management committee, which is responsible
for developing and monitoring the Company’s risk management policies. The committee reports regularly to the board of
directors on its activities.

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

The Company’s risk 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 internal audit. Internal audit undertakes both regular and
ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

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

- credit risk

- liquidity risk

- market risk- interest rate and foreign currency

(i) 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.

A default on a financial asset is when the counterparty fails to make contractual payments as per agreed terms. This
definition of default is determined by considering the business environment in which entity operates and other macro¬
economic factors.

Trade receivables

Credit risk refers to the risk of default on its obligation by the counterparty resulting in financial loss. The maximum
exposure to the credit risk at the reporting date is primarily from trade receivable amounting to ? 1,239.01 millions (31
March 2025: ? 1,225.17 millions (net of loss allowance). The Company’s exposure to credit risk is influenced mainly by
the individual characteristics of each customer. The management also considers the factors that may influence the
credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Company has a credit risk management policy in place to limit credit losses due to non-performance of financial
counterparties and customers. The Company monitors its exposure to credit risk on an ongoing basis at various levels.
Outstanding customer receivables are regularly monitored. The Company closely monitors the acceptable financial
counterparty credit limits and revise where required in line with the market circumstances. Due to the geographical

spread and the diversity of the Company''s customers, the Company is not subject to any significant concentration
of credit risks at balance sheet date. An impairment analysis is performed at each reporting date on an individual
basis for major clients. In addition, a large number of minor receivables are combined into homogenous entities and
assessed for impairment collectively. The calculation is based on credit losses historical data. The Company has
evaluated that the concentration of risk with respect to trade receivables to be low. Trade and other receivables are
written off when there is no reasonable expectation of recovery post identification on case to case basis. On account of
adoption of IndAS 109, the Company uses a simplified approach (lifetime expected credit loss model) for the purpose of
computation of expected credit loss for trade receivables. Specific case to case provision is made in respect of credit
impaired customers.

Cash and cash equivalents and derivatives

For derivative and financial instruments, the Company attempts to limit the credit risk by only dealing with reputable
banks and financial institutions having high credit-ratings assigned by international credit-rating agencies.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity
is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
The Company maintains flexibility in funding by maintaining availability under committed credit lines. Management
monitors the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash
equivalents on the basis of expected cash flows.

The gross outflows disclosed in the above table represent the contractual undiscounted cash flows relating to financial
liabilities held for risk management purposes and which are not usually closed out before contractual maturity.

The Company has secured bank loans that contains certain loan covenants. A future breach of covenant may require
the Company to repay the loan earlier than indicated in the above table. Covenants are monitored on regular basis by the
treasury department and regularly reported to management to ensure compliance with the agreement. Further, there
have been no default in repayment of loan and no breaches in the financial covenants of any interest-bearing loans and
borrowing in the current year and previous period.

Significant estimates: The impairment provisions for financial assets disclosed above are based on assumptions about
risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the
inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward
looking estimates at the end of each reporting year. For trade receivables only, the Company applies the simplified
approach permitted by Ind AS 109, "Financial Instruments”, which requires expected lifetime losses to be recognised
from initial recognition of the receivables.

(iii) Market risk

Market risk is the risk that arises from changes in market prices such as foreign exchange rates. Market risk is attributable
to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is
exposed to market risk primarily related to foreign exchange rate risk and the market value of the investments. Thus,
the Company’s exposure to market risk is a function of investing and revenue generating and operating activities. The
objective of market risk management is to avoid excessive exposure in financial assets and unhedged foreign currency,
revenues and costs.

The Company operates across multiple geographies and is exposed to global economic conditions. Economic
uncertainty and geopolitical developments continue in certain regions, including the Middle East.

Management has evaluated, as at and for the year ended 31 March 2026, whether these developments indicate
conditions that would require adjustments to, or additional disclosures in, these standalone financial statements. Based
on information currently available as at the period and for the year ended 31 March 2026 and management’s assessment
of the Company’s direct and indirect exposures, no adjustments to the amounts recognised in these standalone financial
statements are required as at 31 March 2026. Given the evolving nature of such events and related uncertainties, the
impact, if any, in future periods may differ from management’s current assessment. The Company continues to monitor
the situation and will provide additional disclosures in future reporting periods, as considered necessary.

Currency risk

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions,
primarily with respect to the US dollar and EURO. Foreign exchange risk arises from future commercial transactions
and recognised assets and liabilities denominated in a currency that is not the functional currency (?) of the Company.
The risk is measured through a forecast of highly probable foreign currency cash flows. The risk is hedged with the
objective of minimising the volatility of the ? cash flows of highly probable forecast transactions.

The Company uses foreign currency forwards to hedge its exposure to foreign currency risk. The Company’s policy is to
hedge the risk of changes in foreign currency. The Company uses forward contracts (derivative instruments) to hedge
its exposure in foreign currency risk. The Company designate both change in spot and forward element of forward
contracts to hedge exposure in foreign currency risk on highly probable forecast sales.

The Company also entered into foreign currency principal and interest swap which have not been designated in a hedging
relationship. Such instruments are subject to the same risk management policies as all other derivative contracts.

Exposure to currency risk

The currency profile of financial assets and financial liabilities (other than Indian Rupees) as at 31 March 2026 and 31
March 2025 are reinstated in millions Indian Rupees which is stated below :

The Company is exposed to interest rate risk on account of variable rate borrowings. The Company’s risk management
policy is to mitigate its interest rate exposure in accordance with the exposure limits advised from time to time. The
Company has used interest rate swaps to mitigate its interest rate risk arising from certain transactions, these are
recognised as derivatives.

Price risk

The Company’s exposure to equity securities price risk arises from investments held by the Company and classified in
the balance sheet either as fair value through OCI or at fair value through profit or loss. To manage its price risk arising
from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in
accordance with the limits set by the Company.

The Company considers factors such as long term credit rating, tenor of investment, minimum assured return, monetary
limits,etc. while investing.

Sensitivity

The table below summarises the impact of increases/decreases of the index on the Company’s profit for the period.
The analysis is based on the assumption that the equity index had increased by 10% or decreased by 10% with all other
variables held constant, and that all the Company’s equity instruments moved in line with the index.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall
debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents and
current investments. Management assesses the Company’s capital requirements in order to maintain an efficient
overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the
Company’s various classes of debt. The Company manages the capital structure and makes adjustments to it in the
light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or
adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares, or sell assets to reduce debt.

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. Based upon the Company’s evaluation,
there is no excessive risk concentration.

44 Offsetting of financial assets and liabilities

Financial assets and liabilities are offset and the net amount reported