Raymond Lifestyle Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2026

Note 1(a): Corporate information

Raymond Lifestyle Limited (‘RLL'' or the ''Company'') [CIN: L74999MH2018PLC316288] incorporated in India and it is a leading Indian Textile, Lifestyle and Branded Apparel company. The Company has its wide network of operations in local as well foreign market. The Company is a textile powerhouse with modern infrastructure and strong fibre-to-fabric manufacturing capabilities. Along with being reputed, it is the fastest-growing fashion fabric brand. The Company offers an exquisite range of shirting and suiting fabrics across a plethora of options such as worsted fabrics, cotton, wool blends, linen and denim.

The equity shares of the Company are listed on two stock exchanges in India, Bombay Stock Exchange (''BSE'') and National Stock Exchange (''NSE'').

The Company has its registered office at Plot No.G-35 & 36, MIDC Waluj Taluka, Gangapur, Aurangabad - 431136, Maharashtra.

Note 1(b): Basis of preparation and presentation

(i) General information and statement of compliance

These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015 (as amended) and relevant rules thereafter, including the presentation and disclosure requirements of Division II of Schedule III to the Act and the guidelines issued by the Securities and Exchange Board of India (''SEBI''), to the extent applicable. The accounting policies for the years ended 31 March 2026 and 31 March 2025 are consistent.

The revision to standalone financial statements is permitted by Board of Directors after obtaining necessary approvals or at the instance of regulatory authorities as per the provisions of the Act.

All amounts included in the standalone financial statements are reported in Indian Rupees (''INR'' or H) in lakhs, unless otherwise stated. Further, "0" denotes amounts less than H 50,000.

These standalone financial statements are separate financial statements of the Company under Ind AS 27 "Separate Financial Statements" (''Ind AS 27'')."

(ii) Basis of measurement

The standalone financial statements have been prepared on a historical cost convention and on an accrual and going concern basis, except for the following:

i. Financial assets and liabilities are measured at fair value or at amortised cost depending on classification (refer accounting policy on financial instruments);

ii. Derivative financial instruments are measured at fair value;

iii. Share based payment transactions are measured at fair value;

iv. Defined benefit plans/ plan assets and other long-term employee benefits are measured at fair value;

v. Lease liability and Right-of-use assets are measured at fair value; and

vi. Asset and liabilities assumed as part of business combination are measured at fair value.

(iii) Functional and presentation currency

Items included in the standalone financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (i.e., the “functional currency"). The standalone financial statements are presented in INR, which is the functional and presentation currency of the Company.

(iv) Current and non-current classification

(i) An asset is considered as current when it is:

a. Expected to be realised or intended to be sold or consumed in the normal operating cycle, or

b. Held primarily for the purpose of trading, or

c. Expected to be realised within twelve months after the reporting period, or

d. Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

(ii) All other assets are classified as non-current.

(iii) Liability is considered as current when it is:

a. Expected to be settled in the normal operating cycle, or

b. Held primarily for the purpose of trading, or

c. Due to be settled within twelve months after the reporting period, or

d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

(iv) All other liabilities are classified as non-current.

(v) Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

(vi) All assets and liabilities have been classified as current or non-current as per the Company''s operating cycle and other criteria set out in Schedule III to the Act. Based on the nature of products and services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.

Note 1(c): Use of estimates and judgements

The preparation of standalone 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, income, expenses and disclosures relating to contingent liabilities. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic 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 standalone financial statements is included in the following notes:

Judgements

(i) Leases

Ind AS 116 "Leases" requires lessees 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 a lease-bylease 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 the lease and the importance of the underlying asset to Company''s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

Determination of the incremental borrowing rate requires judgement. Where the rate implicit in the lease is not readily available, an incremental borrowing rate is applied. This incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow over a similar term,

with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset in a similar economic environment.

(ii) Income tax and deferred tax

Judgements are involved in determining the provision for income taxes including judgement on whether tax positions are probable of being sustained in tax assessments. A tax assessment may involve complex issues, which can only be resolved over extended time periods. The recognition of taxes that are subject to certain legal or economic limits or uncertainties is assessed individually by management based on the specific facts and circumstances.

In assessing the realisability of deferred tax assets, management considers whether some portion or all of the deferred tax assets will not be realised. The ultimate realisation of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, management believes that the Company will realise the benefits of those deductible differences. The amount of the deferred income tax assets considered realisable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.

(iii) Provisions and contingent liabilities

The Company exercises judgement in determining if a particular matter is possible, probable or remote. The Company also exercises judgement in measuring and recognising provisions and the exposures to contingent liabilities related to pending litigation or other outstanding claims subject to negotiated settlement, mediation, government regulation, as well as other contingent liabilities. Judgement is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual losses may be different from the originally estimated provision. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

(iv) Indefinite useful life of intangible assets

Management appliesjudgement in determining whether certain intangible assets have an indefinite useful life. This assessment requires judgement as it involves evaluating whether there is any foreseeable limit to the period over which the asset is expected to generate net cash inflows for the Company.

In making this assessment, management considers factors such as historical and expected performance of the asset, the stability and maturity ofthe markets in which the asset operates, expected changes in technology or consumer behaviour, competitive dynamics, and legal or contractual restrictions. As intangible assets assessed as having an indefinite useful life are not amortised and are subject to annual impairment testing, a change in this judgement could result in a material impact on the carrying value of the related assets.

(v) Estimation of variable consideration

The Company''s revenue from contracts with customers includes variable consideration arising from sales returns, incentives/bonuses payable to dealers and agents, and cash discounts offered for early payment. The estimation of such variable consideration involves significant judgement, particularly in assessing the amount of consideration to which the Company expects to be entitled and in applying the constraint on variable consideration, such that it is highly probable that a significant reversal of cumulative revenue recognised will not occur when the uncertainty associated with such consideration is resolved.

Estimates

(i) Useful lives of property, plant and equipment, and intangible assets

Property, plant and equipment, and intangibles assets represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life.

(ii) Inventory obsolescence

The factors that the Company considers in determining the provision for slow moving, obsolete and other non-saleable inventory include estimated shelf life, planned product discontinuances, price changes, ageing of inventory and

introduction of competitive new products, to the extent each of these factors impact the Company''s business and markets. The Company considers all these factors and adjusts the inventory obsolescence to reflect its actual experience on a periodic basis.

(iii) Defined benefit plans and other long-term benefits (compensated absence)

In accounting for post-retirement benefits, several statistical and other factors that attempt to anticipate future events are used to calculate plan expenses and liabilities. These factors include expected return on plan assets, discount rate assumptions and rate of future compensation increases. To estimate these factors, actuarial consultants also use estimates such as future salary increases, average future service, attrition and mortality rates which require judgement. The actuarial assumptions used by the Company may differ materially from actual results in future periods due to changing market and economic conditions, regulatory events, judicial rulings, higher or lower withdrawal rates, or longer or shorter participant life spans.

(iv) Impairment of non-financial assets

An impairment loss is recognised for the amount by which an asset''s or cash-generating unit''s (''CGU'') carrying amount exceeds its recoverable amount. To determine the recoverable amount, management estimates expected future cash flows from each asset or CGU and determines a suitable interest rate in order to calculate the present value of those cash flows. The preparation of value-in-use calculations involves significant management judgement, particularly in estimating future cash flows expected to be derived from the relevant CGU, determining appropriate terminal values, selecting discount rates that reflect current market assessments of the time value of money and the risks specific to the assets or CGU, and establishing long-term growth rates. The cash flow projections are based on management-approved budgets and business plans, past performance, and management''s expectations of future market developments, industry trends and macroeconomic conditions. Given the inherent uncertainty in forecasting future cash flows, changes in the underlying assumptions could result in a material impact on the recoverable amounts determined and, consequently, on the carrying values of the related assets.

In most cases, determining the applicable discount rate involves estimating the appropriate adjustment to market risk and the appropriate adjustment to asset-specific risk factors."

(v) Loss allowance on financial assets

In accordance with Ind AS 109 "Financial Instruments", the Company applies ECL model for measurement and

recognition of impairment loss on the trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115 "Revenue from Contracts with Customers".

For this purpose, the Company follows ‘simplified approach'' for recognition of impairment loss allowance on the trade receivable balances. The application of simplified approach requires expected lifetime losses to be recognised from initial recognition of the receivables based on lifetime ECLs at each reporting date.

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. The Company uses estimates and make assumptions based on the Company''s history of collections, customer''s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

In case of other assets, the Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to twelve months ECL is measured and recognised as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognised as loss allowance.

(vi) Fair value of financial instruments

Management uses valuation techniques in measuring the fair value of financial instruments where active market quotes are not available. Details of the assumptions used are given in the notes regarding financial assets and liabilities. In applying the valuation techniques, management makes maximum use of market inputs and uses estimates and assumptions that are, as far as possible, consistent with observable data that market participants would use in pricing the instrument. Where applicable data is not observable, management uses its best estimate about the assumptions that market participants would make. These estimates may vary from the actual prices that would be achieved in an arm''s length transaction at the reporting date.

(vii) Impairment of goodwill and intangibles with indefinite life

The assessment of impairment of goodwill and intangible assets involves significant estimation uncertainty and management judgement. In accordance with Ind AS 36 "Impairment of Assets" (''Ind AS 36''), goodwill acquired in a business combination is tested for impairment at least

annually and whenever there is an indication that the related CGU may be impaired, whereas intangible assets with indefinite useful lives are tested for impairment annually and whenever there is an indication of impairment.

The identification and determination of CGUs require judgement, particularly as goodwill is allocated to CGUs that are expected to benefit from the synergies of the business combination, while intangible assets with indefinite useful lives are tested at the individual asset level or at the CGU level depending on the lowest level at which independent cash inflows are generated. For goodwill impairment testing, the CGUs to which goodwill is allocated are not larger than an operating segment before aggregation, in accordance with Ind AS 36. The determination of the appropriate level at which impairment testing is performed may differ between goodwill and intangible assets with indefinite useful lives and involves management judgement.

Determining whether goodwill or intangible assets are impaired requires estimation of the recoverable amount of the relevant CGUs or assets, being the higher of fair value less costs of disposal and value-in-use. The recoverable amount is estimated using valuation techniques that include discounted cash flow models and market-based valuation approaches such as the comparable companies method. Management applies judgement in selecting the appropriate valuation technique for each CGU or asset, considering the nature of the business, availability and reliability of observable market inputs and the requirements of Ind AS 36.

The valuation models incorporate assumptions relating to future cash flows based on management-approved budgets and forecasts, discount rates that reflect current market assessments of the time value of money and the risks specific to the CGUs or assets, terminal growth rates and assumptions regarding market and economic conditions. In addition, the identification of indicators of impairment for intangible assets with indefinite useful lives requires estimation and judgement, including the assessment of external and internal sources of information such as changes in market conditions, competitive environment, regulatory developments, technological changes and the performance of the underlying CGU.

These assumptions and estimates are inherently uncertain, as they depend on future events and business performance. Changes in key assumptions, the valuation methodology applied, the determination of CGUs or the assessment of impairment indicators could cause the recoverable amounts to differ from the carrying values and may result in a material impairment charge in future periods.

(viii) Share-based payment transactions

The fair value of equity-settled share-based payment arrangements is measured at the grant date, in accordance with Ind AS 102 "Share-based Payment", using an appropriate option pricing model, such as the Black-Scholes valuation model. The determination of fair value involves significant estimation uncertainty, as the valuation requires the use of assumptions that are not directly observable in the market.

Key assumptions used in measuring the fair value of employee stock options include the expected life of the option (based on expected exercise behaviour), expected volatility of the share price (based on historical volatility over a period commensurate with the expected life of the option), expected dividend yield and the risk-free interest rate (based on yields of government bonds with a maturity consistent with the expected life of the option).

The selection of an appropriate valuation model and the estimation of the related inputs require judgement and are based on management''s best estimates, taking into account the terms and conditions of the awards and historical experience. Changes in these assumptions could have a material impact on the fair value of the options and the amount of expense recognised in the statement of profit and loss in future periods.

Estimates and judgements are continuously evaluated. These are based on historical experience and other factors including expectation of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

Note 1(d): Summary of material accounting policy information

(i) Property, plant and equipment (''PPE'')

PPE are stated at historical cost, less accumulated depreciation and impairment losses, if any. Historical costs include expenditure directly attributable to acquisition which are capitalised until the PPE are ready for use, as intended by management, including non refundable taxes. Any trade discount and rebates are deducted in arriving at the purchase price.

An item of PPE initially recognised is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. Gains or losses arising from disposals of assets are measured as the difference between the net disposal proceeds and the carrying value of the asset on the date of disposal and are recognised in the statement of profit and loss, in the period of disposal.

The cost of an item of PPE shall be recognised as an asset if, and only if:

(a) it is probable that future economic benefits associated with the item will flow to the Company; and

(b) the cost of the item can be measured reliably.

Items such as spare parts are recognised as PPE when they meet the definition of PPE.

PPE acquired in a business combination, other than common control combination, are recognised at fair value at the acquisition date/ appointed date under the scheme.

The Company depreciates PPE over their estimated useful lives using either straight line method (''SLM'') or written down value method (''WDV'') as follows (current and previous year):
Class of asset	Useful life	Method
Factory buildings	30 years	SLM
Non-factory buildings
Temporary structure	3 years	WDV
Roads	10 years	WDV
Non-factory buildings	60 years	WDV
Plant and equipment	7 to 24 years	SLM
Furniture and fixtures	10 years	WDV
Vehicles	8 years	WDV
Boat and water equipment	13 years	WDV
Office equipment	5 years	WDV
Electrical installation	10 years	WDV
Computer/servers	3 years	WDV
Leasehold improvement	Over the period of lease of 5 years, whichever is lower	SLM

In case of plant and equipment and electrical installations related to Vapi, Jalgaon and Chhindwara plants included in above table, the Company uses useful life different from those specified in Schedule II of the Act which is duly supported by technical evaluation of management. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used. Freehold land has an unlimited useful life and therefore is not depreciated.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the statement of profit and loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual values are reviewed at each reporting date, and if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate and adjusted prospectively. Depreciation on addition to PPE or on disposal of PPE is calculated pro-rata from the month of such addition or up to the month of such disposal as the case may be. The residual values are not more than 5% of the original cost of the asset.

Capital work-in-progress (''CWIP'') includes PPE under construction and not ready for intended use as on the balance sheet date. CWIP is not depreciated as these assets are not yet available for use. Advances paid towards the acquisition of PPE outstanding at each balance sheet date is classified as capital advances under ‘Other non-current assets''.

Software for internal use, which is primarily acquired from third-party vendors, and which is an integral part of a tangible asset, including consultancy charges for implementing the software, is capitalised as part of the related tangible asset. Subsequent costs associated with maintaining such software are recognised as expense as incurred. The capitalised costs are amortised over the estimated useful life of the software.

(ii) Investment property

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and borrowing costs where applicable. Subsequent expenditure is capitalised to the asset''s carrying

Annual Report 2025-26

amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably.

Investment properties are depreciated using the WDV method over their estimated useful lives.

Investment property (non-factory building) generally have a useful life of 60 years, which is as per Schedule II to the Act.

(iii) Intangible assets

Intangible assets acquired separately are initially recognised at cost of acquisition which includes purchase price including import duties and non-refundable taxes, if any and further includes directly attributable cost of preparing the asset for its intended use. Identifiable intangible assets are recognised when it is probable that future economic benefits attributed to the asset will flow to the Company and the cost of the asset can be reliably measured. Computer software is amortised on a SLM basis over the estimated useful economic life which is expected as 3 years. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The amortisation of an intangible asset with a finite useful life reflects the manner in which the economic benefit is expected to be generated. The estimated useful life of amortisable intangibles are reviewed and where appropriate are adjusted, annually.

Intangible assets are de-recognised either on their disposal or where no future economic benefits are expected from their use. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset on the date of disposal and are recognised in the standalone statement of profit and loss when the asset is derecognised.

Amortisation on addition to intangible assets or on disposal of intangible assets is calculated pro-rata from the month of such addition or up to the month of such disposal as the case may be.

Intangible assets under development (''IAUD'') are initially measured at cost. Such intangible assets are subsequently measured at cost less accumulated amortisation and impairment losses, if any. IAUD is not amortised as these assets are not yet available for use.

(iv) Impairment of non-financial assets

Intangible assets, ROU assets and PPE are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.

For the purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value in use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

For goodwill and intangible assets that have indefinite lives or that are not yet available for use, an impairment test is performed each year at 31 March.

The goodwill acquired in a business combination is, for the purpose of impairment testing, allocated to CGUs that are expected to benefit from the synergies of the combination. Such CGUs represent the lowest level within the Company at which the goodwill is monitored for internal management purposes and are not larger than an operating segment before aggregation.

An impairment loss is recognised in the statement of profit and loss if the estimated recoverable amount of an asset or its CGU is lower than its carrying amount. Impairment losses recognised in respect of CGU are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit on a pro-rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a favourable change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

(v) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Company as a lessee

The Company''s lease asset class consists of leases for land and building (stores) for business use. The Company assesses whether a contract contains a lease, at inception of

a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right of use ROU asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and leases of low value assets. For these short-term and leases of low value assets, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

Lease arrangements may include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The ROU assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any.

ROU assets are depreciated from the commencement date on a SLM basis over the shorter of the lease term and useful life of the underlying asset. ROU assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related ROU asset if the Company changes its assessment on whether it will exercise an extension or a termination option.

Lease liabilities have been separately presented in the balance sheet and ROU assets are forming part of PPE. Lease payments have been classified as financing cash flows.

Company as a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the ROU asset arising from the head lease. For operating leases, rental income is recognised on a SLM basis over the term of the relevant lease.

For operating leases, rental income is recognised on a SLM basis over the term of the relevant lease. Contingent rents are recognised as revenue in the period in which they are earned.

(vi) Investment in subsidiaries

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

(vii) 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.

a. Initial recognition and measurement

The Company recognises financial assets and liabilities when it becomes a party to the contractual provisions of the instrument. Financial assets (except trade receivables) and financial liabilities are recognised at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and liabilities that are not at fair value through profit or loss are added to the fair value on initial recognition. Regular purchase and sale of financial assets are recognised on the trade date.

Further, trade receivables are recognised initially at the amount of consideration that is unconditional unless

they contain significant financing components, in which case they are recognised at fair value. The Company''s trade receivables do not contain any significant financing component and hence are measured at the transaction price measured under Ind AS 115 “Revenue from Contracts with Customers".

b. Subsequent measurement

For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria:

- The Company''s business model for managing the financial asset; and

- The contractual cash flow characteristics of the financial asset.

Non derivative financial instruments

(a) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(b) Financial assets at fair value through other comprehensive income (''FVOCI'')

A financial asset is subsequently measured at FVOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(d) Financial liabilities

Financial liabilities are subsequently carried at amortised cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

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.

(e) Debt instruments at amortised cost

A ‘debt instrument'' is subsequently measured at the amortised cost using the 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 the EIR. The EIR amortisation is included in ''Other income'' in the profit or loss. The losses arising from impairment are recognised in the statement of profit and loss.

(f) Equity instruments

All equity instruments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present subsequent changes in FVOCI. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable. If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the instrument, including foreign exchange gain or loss and excluding dividends, are recognised in the OCI. There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.

(g) Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost in subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on EIR method. Interest expense that is not capitalised as part of costs of an asset is included in the ‘Finance costs'' line item in the statement of profit and loss. After initial recognition, such financial liabilities are subsequently measured at amortised cost using the 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 the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

c. De-recognition of financial instruments

A financial asset is primarily derecognised (i.e.,

removed from the Company''s balance sheet) when:

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

- The Company has transferred its rights to receive contractual 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.

On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in OCI and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that financial asset.

d. Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty.

e. Impairment of financial assets

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 "Financial Instruments" requires expected credit losses to be measured through a loss allowance. The Company recognises lifetime expected losses for all trade receivables that do not constitute a financing component. In determining the loss allowances for trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward-looking information. The expected loss allowance is based on the ageing of the receivables that are due and allowance rates used in the provision matrix. For all other financial assets, expected loss allowance are measured at an amount equal to the 12-months expected credit losses or at an amount equal to the lifetime credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company''s historical experience and informed credit assessment, that includes forward looking information.

The Company calculates impairment allowance under the simplified approach for trade receivables and do not perform individual assessment of credit risk of trade receivables.

For impairment of investment in subsidiaries, refer accounting policy of "Investment in subsidiaries".

(viii) Income tax

Tax expense for the year comprises of current tax and deferred tax. Current tax is measured by the amount of tax expected to be paid to the taxation authorities on the taxable profits after considering tax allowances, exemptions adjustments to tax payable in respect of previous years, and using applicable tax rates and laws. Deferred tax is recognised on temporary differences between the accounting base and the tax base for the year and quantified using the tax rates and tax laws enacted or substantively enacted as on the balance sheet date. Current and deferred taxes are recognised in the profit or loss, except when they relate to items that are recognised in OCI or directly in equity, in which case, the current and deferred tax are also recognised in OCI or directly in equity.

There are certain transactions and calculations for which the ultimate tax determination is uncertain. The Company recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. The uncertain tax positions are measured at the amount expected to be paid to taxation authorities when the Company determines that the probable outflow of economic resources will occur. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made.

Deferred tax is recognised using the balance sheet approach. Deferred tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred tax asset is recognised to the extent 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. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the laws

that have been enacted or substantively enacted by the reporting date.

The Company recognises deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, except to the extent that both of the following conditions are satisfied:

- When the Company is able to control the timing of the reversal of the temporary difference; and

- It is probable that the temporary difference will not reverse in the foreseeable future.

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

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. For this purpose, the carrying amount of investment property is presumed to be recovered through sale.

Current tax and deferred tax assets and liabilities are offset when there is a legally enforceable right to set off the recognised amount and there is an intention to settle the asset and liability on a net basis.

Accruals for uncertain tax positions require management to make judgements of potential exposures. Accruals for uncertain tax positions are measured using either the most likely amount or the expected value amount depending on which method the entity expects to better predict the resolution of the uncertainty. Tax benefits are not recognised unless the tax positions will probably be accepted by the tax authorities. This is based upon management''s interpretation of applicable laws and regulations and the expectation of how the tax authority will resolve the matter. Once considered probable of not being accepted, management reviews each material tax benefit and reflects the effect of the uncertainty in determining the related taxable amounts.

(ix) Inventories

Inventories consists of raw materials, stores and spares, work-in-progress, stock-in-trade and finished goods and are measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary

course of business, less the estimated costs of completion and costs necessary to make the sale.

Cost of inventories is determined on ''First-inFirst-out'', ''Weighted Average cost'' or ''Specific identification'', as applicable.

Cost includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of finished goods and workin-progress, cost includes an appropriate share of overheads based on normal operating capacity.

Raw materials are considered at replacement cost if the finished products, in which they will be used, are expected to be sold at or above cost.

Stores and spares are inventories that do not qualify to be recognised as PPE and consists of consumables, spares (such as machinery spare parts), which are used in operating machines or consumed as indirect materials in the manufacturing process.

(x) Borrowings

Borrowings are initially recognised at net of transaction costs incurred and measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the statement of profit and loss over the period of the borrowings using the effective interest method.

Borrowing costs majorly includes interest and amortisation of ancillary costs incurred in connection with the arrangement of borrowings. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective asset. All other borrowing costs are expensed in the period in which they occur. The Company ceases capitalising borrowing costs when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.

(xi) Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date. If the

effect of the time value of money is material, provisions are discounted to reflect its present value using a current pretax rate that reflects the current market assessment of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Where the Company expects a provision to be reimbursed, the reimbursement is recognised as a separate asset, only when such reimbursement is virtually certain.

A disclosure for a contingent liability is made where there is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from the past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation.

Contingent asset is not recognised in the standalone financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.

(xii) Employee benefits

(i) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and are measured on undiscounted basis. Benefits such as salaries, wages, and performance incentive etc. are recognised in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(ii) Other long-term employee benefits

The Company''s net obligation in respect of other longterm employee benefits, i.e., compensated absence is the amount of future benefit that employees have earned in return for their service in the current and previous years. That benefit is discounted to determine its present value. Liability for such benefits is provided on the basis of actuarial valuations, as at the balance

sheet date, carried out by an independent actuary using the projected unit credit method. Actuarial gains and loss are recognised in the statement of profit and loss during the period in which they arise.

(iii) Gratuity-Defined benefit plans

Pos

---

Mar 31, 2025

1 STATEMENT OF MATERIAL ACCOUNTING POLICIES
A. Background

Raymond Lifestyle Limited (‘RLL’ or ''the Company’)
[CIN:L74999MH2018PLC316288] incorporated in
India is a leading Indian Textile, Lifestyle and Branded
Apparel Company. The Company has its wide network
of operations in local as well foreign market. Company
is a textile powerhouse with modern infrastructure and
strong fibre-to-fabric manufacturing capabilities. Along
with being reputed, it is the fastest-growing fashion fabric
brand. Raymond Lifestyle offers an exquisite range of
shirting and suiting fabrics across a plethora of options
such as Worsted fabrics, Cotton, Wool blends, Linen and
Denim.

The Company is a public limited company and is listed
on the Bombay Stock Exchange (BSE) and National Stock
Exchange (NSE).

The Company has its registered office at Plot No.G-35 &
36, MIDC Waluj Taluka, Gangapur, Aurangabad - 431136,
Maharashtra.

The Board of Directors of the Company at its meeting held
on 27 April 2023 had approved the Composite Scheme
of Arrangement for the demerger of the lifestyle business
undertaking of Raymond Limited (''Demerged Company’)
into Raymond Lifestyle Limited (formerty known as
Raymond Consumer Care Limited) (''the Company’) on a
going concern basis. The appointed date proposed under
this scheme was 01 April 2023.

The Company had received requisite approval from
National Company Law Tribunal (''NCLT) vide its order
dated 21 June 2024. Respective companies had filed the
certified true copy of NCLT order along with the sanctioned
scheme with the Registrar of Companies on 30 June 2024.
Accordingly, the scheme was effeclive w.e.f. 30 June 2024.

The accounting of this scheme in the books of the Company
has been done in accordance with Ind AS 103 ''Business
Combinations- (''Ind AS 103’) as on the appointed date. In
accordance with Ind AS 103, purchase consideration has
been allocated on the basis of fair valuation determined
by an independent valuer.

As a consideralion for the demerger, the Company was
required to issue rts equity shares to the shareholders of
Raymond Limited as on record date in 4:5 swap ratio (i.e.,
four shares of Rs. 2 each had to be issued by Raymond
Lifestyle Limited for every five shares of Rs. 10 each held
by the shareholders in Raymond Limited).

Accordingly, the Holding Company had allotted
53,258,984 equity shares having face value of Rs. 2 each
to the shareholders of Raymond Limited on 11 July 2024.
These equity shares were subsequently listed on BSE
Limited (''BSE’) and the National Stock Exchange of India
Limited (''NSE’) on 05 September 2024.

B. Material Accounting Policies followed by the
Company

(a) Basis of preparation

(i) Compliance with Ind AS

These standalone financial statements
(''financial statements’) have been prepared
on an “accrual basis” in accordance with the
Indian Accounting Standards (hereinafter
referred to as the ''Ind AS’) as notified by Ministry
of Corporate Affairs pursuant to Section 133 of
the Companies Act, 2013 (''Act’) read with of
the Companies (Indian Accounting Standards)
Rules, 2015, as amended, and other relevant
provisions of the Act and guidelines issued by
the Securities and Exchange Board of India
(SEBI).

The accounting policies are applied
consistently to all the periods presented in the
financial statements.

(ii) Historical cost convention

The financial statements have been prepared
on a historical cost basis, except for the
following:

1) certain financial assets and liabilities that
are measured at fair value;

2) assets held for sale - measured at lower
of carrying amount or fair value less cost
to sell;

3) defined benefit plans - plan assets
measured at fair value;

(iii) Current and non-current classification

All assets and liabilities have been classified
as current or non-current based on the
Company’s normal operating cycle for each of
its businesses, as per the criteria set out in the
Schedule III to the Act.

(iv) Rounding of amounts

All amounts disclosed in the financial
statements and notes have been rounded off
to the nearest lakhs as per the requirement of
Schedule III, unless otherwise stated.

(b) Use of estimates

The estimates used in the preparation of the
financial statements are continuously evaluated
by the Company and are based on historical
experience and various other assumptions and
factors (including expectations of future events) that
the Company believes to be reasonable under the
existing circumstances. Differences between actual
results and estimates are recognised in the period in
which the results are known/materialised.

The said estimates are based on the facts and events,
that existed as at the reporting date, or that occurred
after that date but provide additional evidence about
conditions existing as at the reporting date.

(c) Property, plant and equipment (including Capital
Work-in-Progress)

The Company had applied for the one time transition
exemption of considering the carrying cost on the
transition date i.e. 1st April, 2015 as the deemed
cost under IND AS, regarded thereafter as historical
cost.

Freehold land is carried at cost. AIL other items of
property, plant and equipment are stated at cost less
depreciation and impairment, if any. Historical cost
includes expenditure that is directly attributable to
the acquisition of the items.

Capital Work-in-progress includes expenditure
incurred tiLL the assets are put into intended use.
Capital Work-in-Progress are measured at cost less
accumulated impairment losses, if any.

Subsequent costs are included in the asset’s
carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future
economic benefits associated with the item wiLL
flow to the Company and the cost of the item can
be measured reliably. The carrying amount of any
component accounted for as a separate asset is
derecognised when replaced. ALL other repairs and
maintenance are charged to the Statement of Profit
and Loss during the reporting period in which they
are incurred.

Depreciation methods, estimated useful lives
and residual value

Depreciation on Factory BuiLdings, Specific non
factory buiLdings, PLant and Equipment, is provided
as per the Straight Line Method and in case of other
assets as per the Written Down VaLue Method, over
the estimated usefuL Lives of assets. LeasehoLd Land
is amortised over the period of Lease. LeasehoLd
improvements are amortised over the period of Lease
or estimated usefuL Life, whichever is Lower.

The Company depreciates its property, pLant and
equipment (PPE) over the usefuL Life in the manner
prescribed in ScheduLe II to the Act. Management
beLieves that usefuL Life of assets are same as those
prescribed in ScheduLe II to the Act, except for pLant
and equipment’s and aircraft wherein based on
technicaL evaLuation, usefuL Life has been estimated
to be different from that prescribed in ScheduLe II of
the Act.

UsefuL Life considered for caLcuLation of depreciation
for various assets cLass are as foLLows-

The residuaL vaLues are not more than 5% of the
originaL cost of the asset. The assets residuaL
values and useful lives are reviewed, and adjusted if
appropriate, at the end of each reporting period.

Depreciation on additions / deLetions is caLcuLated
pro-rata from the month of such addition / deLetion,
as the case maybe.

BaLance as at 31 March 2024 Gains and Losses on
disposaLs are determined by comparing proceeds
with carrying amount. These are incLuded in the
Statement of Profit and Loss.

(d) Investment properties

The Company had appLied for the one time transition
exemption of considering the carrying cost on the
transition date i.e. 1st ApriL, 2015 as the deemed
cost under IND AS, regarded thereafter as historicaL
cost.

Property that is heLd for Long-term rentaL yieLds or for
capitaL appreciation or both, and that is not occupied
by the Company, is cLassified as investment
property. Investment property is measured at its
cost, incLuding reLated transaction costs and where
appLicabLe borrowing costs Less depreciation and
impairment if any.

Depreciation on buiLding is provided over it’s usefuL
Life using the written down vaLue method, in a
manner simiLar to PPE.

UsefuL Life considered for caLcuLation of depreciation
for assets cLass are as foLLows-

Asset Classification Useful life

Non- factory building 60 years

(e) Intangible assets (including intangible assets
under development)

IntangibLe assets acquired separateLy are carried
at cost Less accumuLated amortisation and
accumuLated impairment Losses. Cost of a non¬
monetary asset acquired in exchange of another
non-monetary asset is measured at fair vaLue.

The Company amortizes intangible assets with
a finite useful life using the straight-line method
over following period in the statement of profit and
loss under the head depreciation and amortization
expense.

Asset Class Useful Life

Computer Software 3 years

Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These
are included in the Statement of Profit and Loss.

An intangible asset is derecognised upon disposal
(i.e., at the date the recipient obtains control) or
when no future economic benefits are expected
from its use or disposal.

The amortisation period and the amortisation
method for finite-life intangible assets is reviewed at
each financial year end and adjusted prospectively,
if appropriate. Indefinite-life intangible assets
comprises of trademarks and brands, for which
there is no foreseeable limit to the period over which
they are expected to generate net cash inflows.
These are considered to have an indefinite life, given
the strength and durability of the brands and the level
of marketing support. For indefinite-life intangible
assets, the assessment of indefinite life is reviewed
annually to determine whether it continues, if not, it
is impaired or changed prospectively basis revised
estimates.

(f) Leases

The Company assesses at contract inception
whether a contract is, or contains, a lease. That is,
if the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration.

To assess whether a contract conveys the right to
control the use of an identified asset, the Company
assesses whether: (i) the contract involves the use of
an identified asset (ii) the Company has substantially
all of the economic benefits from use of the asset
through the period of the lease and (iii) the Company
has the right to direct the use of the asset.

Company as a lessee

At lease commencement date, the Company
recognises a right-of-use assets and a lease
liabilities on the balance sheet. The right-of-use
asset is measured at cost, which is made up of
the initial measurement of the lease liabilities, any
initial direct costs incurred by the Company and
any lease payments made in advance of the lease
commencement date.

The Company depreciates the right-of-use assets on
a straight-line basis from the lease commencement
date to the earlier of the end of the useful life of the

right-of-use assets or the end of the lease term. The
Company also assesses the right-of-use asset for
impairment when such indicators exist.

At the commencement date of lease, the Company
measures the lease liabilities at the present value of
the lease payments to be made over the lease term,
discounted using the interest rate implicit in the
lease if that rate is readily available or the Company’s
incremental borrowing rate.

The Company cannot readily determine the interest
rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease
liabilities.

Lease payments included in the measurement of
the lease liability are made up of fixed payments
(including in substance, fixed), and payments arising
from options reasonably certain to be exercised.
Subsequent to initial measurement, the liability will
be reduced for payments made and increased for
interest expenses. It is remeasured to reflect any
reassessment or modification.

When the lease liability is remeasured, the
corresponding adjustment is reflected in the right-
of-use asset or Statement of profit and loss, as the
case may be.

The Company has elected to account for short-term
leases and leases of low-value assets using the
exemption given under Ind AS 116, Leases. Instead
of recognising a right-of-use asset and lease liability,
the payments in relation to these are recognised as
an expense in profit or loss on a straight-line basis
over the lease term or on another systematic basis if
that basis is more representative of the pattern of the
Company’s benefit.

Company as a lessor

Leases for which the Company is a lessor classified
as finance or operating lease.

Lease income from operating leases where the
Company is a lessor is recognised in income on
a straight-line basis over the lease term unless
the receipts are structured to increase in line with
expected general inflation to compensate for the
expected inflationary cost increases. The respective
leased assets are included in the balance sheet
based on their nature.

(g) Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks, cash 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 presentation in the statement
of cash flows, Cash and cash equivalents includes
cash on hand, bank overdraft, deposits held at
call with financial institutions, other short-term
highly liquid investments with original maturities of
three months or less that are readily convertible to
known amounts of cash and which are subject to an
insignificant risk of changes in value.

(h) Inventories

Inventories of Raw Materials, Work-in-Progress,
Stores and spares, Finished Goods, Stock-in-trade
and Property under development are stated ''at
cost or net realisable value, whichever is lower’.
Goods-in-Transit are stated ''at cost’. Cost comprise
all cost of purchase, cost of conversion and other
costs incurred in bringing the inventories to their
present location and condition. Cost formulae
used are ''First-in-First-out’, ''Weighted Average
cost’ or ''Specific identification’, as applicable. Due
allowance is estimated and made for defective and
obsolete items, wherever necessary.

(i) Investments in subsidiaries, joint ventures and
associates

Investments in subsidiaries, joint ventures and
associates are recognised at cost as per Ind AS
27, as reduced by provision for impairment loss,
if any. Except where investments accounted for
at cost shall be accounted for in accordance with
Ind AS 105, Non-current Assets Held for Sale and
Discontinued Operations, when they are classified
as held for sale.

(j) Investments and other financial assets

(i) Classification

The Company classifies its financial assets in
the following measurement categories:

(1) those to be measured subsequently
at fair value (either through other
comprehensive income, or through the
Statement of Profit and Loss), and

(2) those measured at amortised cost.

The classification depends on the
Company’s business model for managing
the financial assets and the contractual
terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures
a financial asset (excluding trade receivables
which do not contain a significant financing
component) at its fair value . Transaction
costs of financial assets carried at fair value
through the Profit and Loss are expensed in the
Statement of Profit and Loss.

Debt instruments:

Subsequent measurement of debt instruments
depends on the Company’s business model
for managing the asset and the cash flow
characteristics of the asset. The Company
classifies its debt instruments into following
categories:

(1) Amortised cost: Assets that are held
for collection of contractual cash flows
where those cash flows represent solely
payments of principal and interest are
measured at amortised cost. Interest
income from these financial assets
is included in other income using the
effective interest rate method.

(2) Fair value through profit and loss:

Assets that do not meet the criteria for
amortised cost are measured at fair value
through statement of Profit and Loss.
Interest income from these financial
assets is included in other income.

Equity instruments:

The Company measures its equity investment
other than in subsidiaries, joint ventures
and associates at fair value through profit
and loss. However where the Company’s
management makes an irrevocable choice on
initial recognition to present fair value gains
and losses on specific equity investments
in other comprehensive income , there is
no subsequent reclassification, on sale or
otherwise, of fair value gains and losses to the
Statement of Profit and Loss.

Compound financial instruments:

Preference shares, which are non-convertible
and redeemable on a specific date, are
classified as compound financial instruments.

The fair value of the asset portion is determined
using a market interest rate. This amount is
recorded as a asset on an amortised cost
basis until extinguished on redemption of
the preference shares. The remainder of
the proceeds is attributable to the equity
component of the compound instrument. This
is recognised and included in deemed equity
investment, net of income tax effects, and not
subsequently measured.

(iii) Impairment of financial assets

The Company measures the expected credit
loss associated with its assets based on
historical trend, industry practices and the
business environment in which the entity
operates or any other appropriate basis. The
impairment methodology applied depends on
whether there has been a significant increase
in credit risk.

(iv) Income recognition
Interest income

Interest income from debt instruments is
recognised using the effective interest rate
method.

Dividends

Dividends are recognised in the Statement of
Profit and Loss only when the right to receive
payment is established.

(k) Impairment of non-financial assets

Intangible assets that have an indefinite useful
life are not subject to amortisation and are tested
annually for impairment, or more frequently if
events or changes in circumstances indicate that
they might be impaired. Other assets are tested
for impairment whenever events or changes in
circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s
fair value less costs of disposal and value in use.
For the purpose of assessing impairment, assets
are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely
independent of the cash inflows from other assets
or group of assets (cash-generating units). Assets
other than goodwill that suffered an impairment are
reviewed for possible reversal of the impairment at
the end of each reporting period.

(l) Non-current assets held for sale

Non-current assets are classified as held for sale if
their carrying amount will be recovered principally
through a sale transaction rather than through
continuing use and a sale is considered highly
probable. They are measured at the lower of their
carrying amount and fair value less costs to sell,
except for assets such as deferred tax assets, assets
arising from employee benefits, financial assets and
contractual rights under insurance contracts, which
are specifically exempt from this requirement.

Non-current assets are not depreciated or amortised
while they are classified as held for sale.

(m) Derivative financial instruments

Derivative financial instruments such as forward
contracts, option contracts and cross currency
swaps, to hedge its foreign currency risks are initially
recognised at fair value on the date a derivative
contract is entered into and are subsequently re¬
measured at their fair value with changes in fair value
recognised in the Statement of Profit and Loss in the
period when they arise.

(n) Segment Reporting:

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.

(o) Borrowings

Borrowingsareinitially recognisedatnetoftransaction
costs incurred and measured at amortised cost. Any
difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in
the Statement of Profit and Loss over the period of
the borrowings using the effective interest method.

(p) Borrowing costs

Borrowing costs consist of interest, ancillary costs
and other costs in connection with the borrowing of
funds and exchange differences arising from foreign
currency borrowings to the extent they are regarded
as an adjustment to interest costs.

Interest and other borrowing costs attributable to
qualifying assets are capitalised upto the date such
assets are ready for their intended use. Other interest
and borrowing costs are charged to Statement of
Profit and Loss.

---

Mar 31, 2024

IB Material accounting policies and practices

(a) Basis of preparation of Financial Statements

(i) Basis of preparation of Financial Statements

The Company''s management has prepared Financial Statements which comprise of the Balance sheet as at 31 March 2024, the Statement of Profit and Loss
(including Other Comprehensive Income), the Statement of Cash Flow, and the Statement of Changes in Equity for the year ended, Including material accounting
policy Information and explanatory information (together hereinafter referred to as ''Financial Statements'').

The accounting policies are applied consistently to all the years presented in the financial statements,

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

(a) certain financial assets and liabilities that are measured at fair value;

(b) defined benefit plans - plan assets measured at fair value.

(c) share based payment.

(iii) Current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve months) and other criteria set out in
the Schedule III to the Companies Act, 2013.

(iv) Rounding of amounts

All amounts disclosed in the Ind AS financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III Division II,
unless otherwise stated.

(b) Use of estimates and judgment

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical
experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing
circumstances. Differences between actual results and estimates are recognised in the year in which the results are known/materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about
conditions existing as at the reporting date.

(c) Property, plant and equipment (including CWIP)

All items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that Is directly
attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for
as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting year in
which they are incurred.

Depredation methods, estimated useful lives and residual value

Depreciation is provided on a Straight Line Method net of residual values, over the estimated useful lives of assets.

The Company depreciates Its property, plant and equipment over the useful life net of residual values in the manner prescribed in Schedule II of the Act, and
management believe that useful lives of assets are same as those prescribed In schedule II of the Act, except for certain assets under Plant and Machinery and
computers, useful life based on a technical evaluation, taking into consideration nature of Company''s business and past experience of usage, which is different
from that prescribed In Schedule II of the Act. The estimated useful lives of the property, plant and equipment are:

Leasehold improvements are amortised over the year of lease or estimated useful lives of such assets, whichever is lower, year of lease is either the primary lease
year or where the Company as a lessee has the right of renewal of lease, and it is intended to renew for further years, then such extended year.

Property plant and equipment costing Rs. 0.05 Lakhs or less are fully depreciated in the year of acquisition.The residual values are generally not more than 5% of
the original cost of the asset.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

(d) Intangible assets

Computer software are stated at cost, less accumulated amortisation and Impairments, if any.

Amortisation method

The Company amortizes computer software with a future useful life using straight-line method over 3 years.

Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

(e) Lease

The Company assesses at contract inception whether a contract is, or contains, a lease. That Is, if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an
identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the
right to direct the use of the asset.

As a Lessee

The Company''s lease asset classes primarily consist of leases for Land and Buildings. The Company assesses whether a contract is or contains a lease, at inception
of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a year of time in exchange for
consideration.

At the date of commencement of the lease, the Company recognises a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of twelve months or less (short term leases) and leases of low value assets. For these short term and leases of
low value assets, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit In the
lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently remeasured by increasing the carrying amount to

reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to

the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation

and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and
useful life of the underlying asset.

A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease
payments. The remeasurement normally also adjusts the leased assets.

(f) Cash and Cash Equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term highly liquid investments with original maturities
of three months or less that are readily convertible to known amounts of cash and which are subject to an Insignificant risk of changes in value.

(g) 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 the trade receivables with the objective of collecting the contractual cash flows and therefore
measures them subsequently at amortised cost using the effective interest method, less loss allowance.

(h) Inventories

Inventories of Raw Materials, Packing Materials, Goods In transit, Stock-in-trade, Stores and spares, Work-in-Progress and Finished Goods are stated ''at cost or net
realisable value, whichever is lower¹. Cost comprise all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present
location and condition. Cost formula used is ''Weighted Average cost''. Due allowance is estimated and made for defective and obsolete items, wherever necessary.

(i) Investments and other financial assets

Classification

The Company classifies its financial assets in the following measurement categories:

* those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

* those measured at amortised cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in the Statement of Profit and Loss or other comprehensive income. For investments in
debt instruments, this will depend on the business model in which the investment Is held.

The Company reclassifies debt instruments when and only when its business model for managing those assets changes.

Recognition

Regular way purchases and sales of financial assets are recognised on trade-date, being the date on which the Company commits to purchase or sale financial
assets.

Measurement

At initial recognition, the Company measures a financial asset (excluding trade receivables which do not contain a significant financing component) at its fair value
plus, In the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Debt instruments:

Subsequent measurement of debt Instruments depends on the company''s business model for managing the asset and the cash flow characteristics of the asset.
There are three measurement categories into which the Company classifies its debt instruments:

* Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are
measured at amortised cost. Interest income from these finqncjial assets is included in other income using the effective interest rate method.

¦ -

* Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets,
where the assets'' cash flows represent solely payments of principal and interest are measured at fair value through other comprehensive income (FVOCI).
Movements in the carrying amount are taken through OCI, except for the recognition of impairment losses, interest revenue which are recognised in the
Statement of Profit and Loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised In OCI is reclassified from equity to the
Statement of Profit and Loss and recognised in other income/expense. Interest income from these financial assets is included in other income using the effective
interest rate method.

* Fair value through profit and loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through Statement of Profit
and Loss. Interest income from these financial assets is included in other income.

Equity instruments:

The Company subsequently measures all equity investments at fair value. Where the Company''s management has elected to present fair value gains and losses on
equity investments in other comprehensive income, there Is no subsequent reclassification of fair value gains and losses to the Statement of Profit and Loss.
Dividends from such investments are recognised in the Statement of Profit and Loss as other income when the Company''s right to receive payments is established.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology
applied depends on whether there has been a significant increase in credit risk.

For trade receivables only, 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.

Derecognition

A financial asset Is derecognised only when

- the company has transferred the rights to receive cash flows from the financial asset or

- retains the contractual rights to receive the cash flows to one or more recipients.

Where the entity has transferred an asset, the company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset.

In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset is not
derecognised.

Income recognition
Interest income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate.

Dividends

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established.

(j) Impairment of non-financial assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events
or changes in circumstances indicate that they might be Impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of
assets (cash-generating units). Assets other than goodwill that suffered an Impairment are reviewed for possible reversal of the impairment at the end of each
reporting period.