(n) Provisions

Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. When the
Company expects some or all of a provision to be
reimbursed, the reimbursement is recognised as a
separate asset, but only when the reimbursement is
virtually certain. The expense relating to a provision
is presented in the Statement of Profit and Loss, net
of any reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in

the provision due to the passage of time is recognised
as a finance cost.

(o) Retirement and other employee benefits

The Company makes contributions to provident fund,
employee state insurance scheme and National
pension scheme, which are defined contribution plans,
for qualifying employees. The Company has no other
obligation, other than the contribution payable to the
above funds. The Company recognizes contribution
payable to the above funds as an expense, when an
employee renders the related service.

If the contribution payable to the scheme for service
received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the
scheme is recognized as a liability after deducting
the contribution already paid. If the contribution
already paid exceeds the contribution due for services
received before the balance sheet date, then excess
is recognized as an asset to the extent that the pre¬
payment will lead to a reduction in future payment or
a cash refund.

The Company operates a defined benefit gratuity plan
in India, which requires contributions to be made to a
separately administered fund. The cost of providing
benefits under the defined benefit plan is determined
using the projected unit credit method.

Re-measurements, comprising of actuarial gains
and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined
benefit liability and the return on plan assets
(excluding amounts included in net interest on the net
defined benefit liability), are recognised immediately
in the balance sheet with a corresponding debit
or credit to retained earnings through OCI in the
period in which they occur. Re-measurements are
not reclassified to the Statement of Profit and Loss in
subsequent periods.

Past service costs are recognized in the Statement of
Profit and Loss on the earlier of the date of the plan
amendment or curtailment, and the date that the
Company recognizes related restructuring costs. Net
interest is calculated by applying the discount rate to
the net defined benefit liability or asset. The Company
recognizes changes in the net defined benefit
obligation which includes service costs comprising
current service costs, past-service costs, gains and
losses on curtailments and non-routine settlements;
and net interest expense or income, as an expense in
the Statement of Profit and Loss.

Accumulated leave, which is expected to be utilized
within the next twelve months, is treated as short¬
term employee benefit. The Company measures the
expected cost of such absences as the additional
amount that it expects to pay as a result of the unused
entitlement that has accumulated at the reporting
date. The Company treats accumulated leave
expected to be carried forward beyond twelve months,
as long-term employee benefit for measurement
purposes. Such long-term compensated absences are
provided for based on the actuarial valuation using
the projected unit credit method at the year-end. The
Company presents the leave as a current liability in
the balance sheet, to the extent it does not have an
unconditional right to defer its settlement for twelve
months after the reporting date. Where the Company
has the unconditional legal and contractual right
to defer the settlement for a period beyond twelve
months, the same is presented as non-current liability.

(p) Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability
or equity instrument of another entity.

FINANCIAL ASSETS

Initial recognition and measurement

A financial asset (unless it is a trade receivable
without a significant financing component) is initially
measured at fair value plus or minus, for an item not at
FVTPL, transaction costs that are directly attributable
to its acquisition or issue. A trade receivable without a
significant financing component is initially measured
at the transaction price.

Transaction costs of financial assets carried at fair
value through profit or loss are expensed in the
Statement of Profit and Loss.

Subsequent measurement

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

• Debt instruments at amortised cost

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

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

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

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

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

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

After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation
is included in finance income in the Statement of
Profit and Loss. The losses arising from impairment
are recognised in the Statement of Profit and
Loss. This category generally applies to trade and
other receivables.

A 'debt instrument' is classified as FVTOCI, if both of
the following criteria are met:

(i) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets; and

(ii) The asset's contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements are
recognized in OCI. However, the Company recognizes
interest income, impairment losses and foreign
exchange gain or loss in the Statement of Profit and
Loss. On de-recognition of the asset, cumulative gain
or loss previously recognised in OCI is reclassified from
the equity to the Statement of Profit and Loss. Interest
earned whilst holding FVTOCI debt instrument is
reported as interest income using the EIR method.

FVTPL is a residual category for debt instruments.
Any debt instrument, which does not meet the criteria
for categorization as at amortized cost or as FVTOCI,
is classified as at FVTPL. Debt instruments included
within the FVTPL category are measured at fair value
with all changes recognized in the Statement of Profit
and Loss.

All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL. If the

Company decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the
OCI. There is no recycling of the amounts from OCI
to the Statement of Profit and Loss, even on sale of
the investments. Equity instruments included within
the FVTPL category are measured at fair value with
all changes recognized in the Statement of Profit
and Loss.

Investment in subsidiary and associate
Investments in subsidiary and associate are carried
at cost less allowance for impairment, if any. Where
an indication of impairment exists, the carrying
amount of the investment is assessed and written
down immediately to its recoverable amount. The
recoverable amount is the higher of fair value less cost
of disposal and value in use.

De-recognition

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from
the 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.

A gain or loss on such financial assets that are
subsequently measured at amortised cost is
recognized in the Statement of Profit and Loss when
asset is derecognised.

The transferred asset and the associated liability
are measured on a basis that reflects the rights
and obligations that the Company has retained.
Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company could be required to repay.

Impairment of financial assets

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

Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected life
of a financial instrument. The twelve-month ECL is a
portion of the lifetime ECL which results from default
events that are possible within twelve months after
the reporting date. 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 Company expects to receive (i.e., all
cash shortfalls), discounted at the original EIR. ECL
impairment loss allowance (or reversal) recognized
during the year 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 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.

FINANCIAL LIABILITIES

Initial recognition and measurement

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

Subsequent measurement

The measurement of financial liabilities depends on
their classification. Financial liabilities at fair value
through profit or loss include financial liabilities held
for trading and financial liabilities designated upon
initial recognition as 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. This category also includes derivative
financial instruments entered into by the Company
that are not designated as hedging instruments
in hedge relationships as defined by Ind AS 109.
Separated embedded derivatives are also classified
as held for trading, unless they are designated as
effective hedging instruments. Gains or losses on
liabilities held for trading are recognised in the
Statement of Profit and 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/losses 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.

After initial recognition, interest-bearing borrowings
are subsequently measured at amortised cost using
the EIR method. Gains and losses are recognised in the
Statement of Profit and Loss when the liabilities are
derecognised as well as through the EIR amortization
process. Amortized 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.

De-recognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or
expired. 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 and Loss.

RECLASSIFICATION OF FINANCIAL ASSETS AND
LIABILITIES

The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no re-classification is made for
financial assets which are equity instruments and
financial liabilities.

For financial assets which are debt instruments, a
re-classification is made only if there is a change
in the business model for managing those assets.
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 re¬
classification prospectively from the re-classification
date, which is the first day of the immediately next
reporting period following the change in business
model. The Company does not restate any previously
recognised gains, losses (including impairment gains
or losses) or interest.

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.

(q) Cash and cash equivalents

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

(r) Dividend to equity holders

The Company recognises a liability to pay dividend
to equity holders when the distribution is authorised
and the distribution is no longer at the discretion of
the Company. As per the corporate laws in India, a
distribution is authorised when it is approved by the
shareholders. A corresponding amount is recognised
directly in equity and Pursuant to the Finance Act,
2020, the classical system of taxation of dividends
applies, whereby dividend income is taxable in the
hands of shareholders. Accordingly, the Company is
required to withhold tax (TDS) at applicable rates
under the Income-tax Act, 1961.

Resident shareholders: Tax is withheld at applicable
rates under Section 194 or Section 194K based on
availability of PAN and other declarations.

Non-resident shareholders: Tax is withheld at rates
prescribed under section 195 or relevant DTAA
provisions, subject to furnishing of valid TRC, Form
10F and other documents.

For the year ended March 31, 2025, the Company
has withheld and deposited Rs. 2,687 Lakhs (previous
year: Rs. 2,737) towards dividend withholding taxes

(s) Contingent liabilities

A contingent liability is a possible obligation that
arises from past events and whose existence 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 past events but is not recognized
because it is not probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation; or the amount of obligation
cannot be measured with sufficient reliability. The
Company does not recognize a contingent liability
but discloses its existence in the financial statements.

(t) Earnings per share

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

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

(u) Segment reporting

The Company operates in a single business segment.
The Company's business activities are regularly
reviewed by the management as a whole for the
purpose of resource allocation and performance
assessment. Accordingly, the Company has only one

reportable operating segment in terms of Ind AS 108
- Operating Segment

(v) Critical accounting judgements, estimates and
assumptions

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

The Company bases its assumptions and estimates on
parameters available when the financial statements
are prepared. Existing circumstances and assumptions
about future developments, however, may change
due to market changes or circumstances arising
that are beyond the control of the Company. Such
changes are reflected in the assumptions when they
occur. The judgements, estimates and assumptions
management has made which have the most
significant effect on the amounts recognized in the
financial statements are as below.

REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company determines and updates its assessment
of expected discounts and incentives periodically and
the accruals are adjusted accordingly. Estimates of
expected discount and incentives are sensitive to
changes in circumstances and the Company's past
experience regarding these amounts may not be
representative of actual amounts in the future.

LEASES

The Company determines the lease term as non¬
cancellable term of the lease, together with any
periods covered by an option to extend the lease if it
is reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised. The Company
applies judgement and considers all relevant factors
that create an economic incentive in evaluating
whether it is reasonably certain to exercise the
option to renew or terminate the lease. After the
commencement date, the Company reassesses the
lease term if there is a significant event or change in
circumstances that is within its control and affects
its ability to exercise or not to exercise the option to
renew or terminate.

The Company cannot readily determine the interest
rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease
liabilities. The IBR is the rate of interest that the
Company would have to pay to borrow over a similar
term, and with a similar security, the funds necessary
to obtain an asset of a similar value to the right-of-
use asset in a similar economic environment. The IBR
requires estimation when no observable rates are
available or when they need to be adjusted to reflect
the terms and conditions of the lease. The Company
estimates the IBR using observable inputs (such as
market interest rates), when available and makes
entity-specific estimates, wherever required.

PROPERTY, PLANT AND EQUIPMENT

The depreciation of property, plant and equipment
is derived on 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 the Company's assets are determined by the
management at the time of acquisition of asset and is
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.

IMPAIRMENT OF INVESTMENTS CARRIED AT
COST AND NON-FINANCIAL ASSETS

Investments carried at cost and non-financial assets
such as property, plant and equipment are evaluated
for recoverability whenever events or changes in
circumstances indicate that their carrying amounts
may not be recoverable. Significant management
judgement is required to determine recoverable
amount and the impairment loss, if any. These
calculations are sensitive to underlying assumptions.

PROVISION FOR EXPECTED CREDIT LOSS ON
TRADE RECEIVABLES

The measurement of expected credit loss reflects
a probability-weighted outcome, the time value
of money and the best available forward-looking
information. The correlation between historical
observed default rates, forecast economic conditions
and expected credit loss is a significant estimate. The
amount of expected credit loss is sensitive to changes
in circumstances and forecasted economic conditions.
The Company's historical credit loss experience
and forecast of economic conditions may not be
representative of the actual default in the future.

TAX CONTINGENCIES AND PROVISIONS

Significant management judgement is required to
determine the amounts of tax contingencies and
provisions, including amount expected to be paid/
recovered for uncertain tax positions and the amount
of deferred tax assets that can be recognised, based
upon the likely timing and the level of future taxable
profits together with future tax planning strategies.

DEFINED BENEFIT PLANS

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

The parameter most subject to change is the discount
rate. In determining the appropriate discount
rate for plans operated in India, the management
considers the interest rates of government bonds
where remaining maturity of such bond correspond
to expected term of defined benefit obligation. The
mortality rate is based on publicly available mortality
tables. Those mortality tables tend to change only
at interval in response to demographic changes.
Future salary increases are based on expected future
inflation rates.

(w) Standards issued but not yet effective

The Ministry of Corporate Affairs ("MCA”) has
notified amendments to Ind AS 1 - Presentation of
Financial Statements

If a covenant breach occurs on or before the reporting
date and the liability becomes payable on demand,
it must be classified as current, even if the lender
subsequently agrees not to demand repayment.
It is classified as current because, at the reporting
date, the entity does not have the right to defer
settlement for at least 12 months. However, if the
lender has already provided by the reporting date,
a grace period extending at least 12 months beyond
that date, during which the breach can be rectified
and repayment cannot be demanded, the liability is
classified as non-current. This amendment is to be
applied retrospectively for annual reporting periods
beginning on or after April 1,2026, in accordance with
Ind AS 8, Accounting policies, changes in Accounting
Estimates and Errors. Considering the Group does not
have any financial covenants linked to its existing
borrowings, the management does not expect any
impact of this amendment.

(a) Secured borrowings relates to Indian currency cash credit and working capital demand loan limits from HDFC bank of Rs. 27,500
Lakhs is part of consortium facility and are secured by first charge by way of hypothecation on current assets of both present and
future wherever situated (excluding those situated at Bangalore brewery) namely stock of rawmaterials, semi-finished and finished
goods, stores and spares not relating to plant and machinery (consumable stores and spares), bills receivable and book debts.
All other bank facilities are unsecured. These unsecured working capital demand loans were taken from Axis bank - Rs. 29,672 Lakhs
(March 31, 2025: Rs. 28,400 Lakhs), Deutsche Bank - Rs. 20,000 Lakhs (March 31, 2025: Rs. 1,000 Lakhs) , JP Morgan chase bank
NA - Rs. 20,000 Lakhs (March 31, 2025: Nil), BNP Paribas bank - Rs. 40,000 Lakhs (March 31,2025: Nil). These facilities are repayable
on mutually agreable dates and carry interest in the range of 6% to 8% per annum. The Company avails foreign currency buyer's
credit through overseas branches of Indian banks to finance imports of raw materials. The credit is backed by standby letters of
credit issued by domestic banks. Buyer's credit borrowings are measured at amortised cost using the effective interest rate method.
Since these borrowings are repayable within twelve months, they are classified as current borrowings. Interest is SOFR plus 83 bps.

(b) The quarterly returns/statements filed by the Company with banks are in the agreement with the books of the Company.

(c) The Company is in compliance with the applicable debt covenants prescribed in the terms of borrowings. Also there has been
no default in repayment of borrowings and payment of interest during the year.

Supplier finance arrangement

The Company has supplier finance arrangement in place for its suppliers with Deutsche Bank with a strong credit rating. Under a
supplier finance arrangement, the bank acts as agent for payments related to invoices raised by suppliers, who are registered for
this arrangement. In automated manner, the bank collects a payment from the Company at due date of the invoice and pays this
onwards to the supplier. The Company has an agency agreement with the bank, as such the Company is not required to provide
assets pledged as security or other forms of guarantees for the supplier finance arrangement. In case the supplier desires to collect
the payment before due date of the invoice, the supplier can indicate such to the bank once Company has confirmed the invoice.
The supplier will then receive the invoice amount at a discount from the bank. The discount represents the time value of money
between due date and collection date of the invoice by the supplier and is agreed in a separate arrangement between the supplier
and the bank. The Company has not derecognised the original trade payables relating to the arrangement because neither a legal
release was obtained nor was the original liability substantially modified on entering into the arrangement. From the Company's
perspective, the arrangement does not significantly extend payment terms beyond the normal terms agreed with other suppliers
that are not participating; however, the arrangement does provide willing suppliers with the benefit of early payment. Additionally,
the Company does not incur any additional interest towards the bank on the amounts due to the suppliers. The Company therefore
includes the amounts subject to the arrangement within trade payables because the nature and function of these payables remains
the same as those of other trade payables. All payables under the arrangement are classified as current as at 31 March 2026 and
31 March 2025. Further, there is no significant non cash changes in the carrying amount of the financial liabilities subject to supplier
financing arragement. The payments to the bank are included within operating cash flows because they continue to be part of the
normal operating cycle of the Group and their principal nature remains operating - i.e. payments for the purchase of goods and
services. The carrying amounts of liabilities part of the arrangement are as follows:

(A) Description of share-based payment arrangements

Based on eligibility criteria, certain employees of the Company are entitled to shares of Heineken N.V., the Ultimate holding company under
Extraordinary Grant (ESG) Plan and Senior Management Long Term Incentive Plans (LTIPs). The exercise price of these shares is Nil and the
vesting period ranges from 1 to 4 years, depending on the specific grant structure. Heineken N.V. will cross-charge the amount equivalent to
the costs actually incurred by it on behalf of the Company. The terms and conditions relating to these plans granted during the current year
and previous year are as follows:

(i) Extraordinary Grant (ESG) plan

Employee entitled - Based on continued service or continued service and performance
Vesting conditions - Two-tranche vesting:

• 3,300 Share Entitlements vest on 25 September 2025

• 1,700 Share Entitlements vest on 25 September 2026
Exercise Price - NIL

Exercise Period - Automatically exercised/settled on the vesting date; shares are delivered to the employee on vesting.

The ESG awards are equity-settled and subject to the terms and provisions of the Extraordinary Grant Rules as adopted by the
Heineken N.V. Awards are granted at the sole discretion of Heineken N.V, including any additional conditions it may impose,
provided that such conditions are not inconsistent with the Plan.

(ii) Senior Management Long Term Incentive Plans (LTIPs)

Employee entitled - Based on continued service and achievement of performance conditions defined under the Plan Rules.

Vesting conditions - Awards vest only if the Heineken N.V's three-year performance meets the defined Performance Conditions. Vesting
occurs once after completion of the 3-year performance period, on the later of April 1 or 20 Business Days after the publication of annual
results.

Exercise Price - NIL

Exercise Period - Shares are delivered on the vesting date.

LTIPs are equity-settled and granted subject to the LTIP Plan Rules. Heineken N.V. retains sole discretion over participation, target
awards, and any additional terms consistent with the Plan.

(B) Fair value measurement

Because awards have no exercise price and no market conditions, the fair value per unit equals the grant-date share price of Heineken N.V and
expense is recognised over the requisite service/performance period.

(C) Reconciliation of outstanding share options

The following table illustrates the number and movements during the year:

(D) Expense recognised in the Statement of Profit and Loss

An amount of Rs. 978 Lakhs (Previous year Rs. 1,172 Lakhs) has been debited to the Statement of profit and loss for the year and included under
Employee benefits expense.

(iv) On November 21, 2025, the Government of India notified the four Labour Codes - 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 - consolidating 29 existing
labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due
to changes in regulations. The Company has assessed and disclosed the incremental impact of these changes on the basis of best information
available, consistent with the guidance provided by the Institute of Chartered Accountants of India. Considering the regulatory-driven and
non-recurring nature of this impact, the Company has presented such incremental impact under “Exceptional Items” in the standalone financial
statements for the year ended March 31, 2026. The incremental impact consisting of gratuity of Rs.1,581 Lakhs and long-term compensated
absences of Rs. 292 Lakhs primarily arises due to change in wage definition. The Company continues to monitor the finalisation of Central /
State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on
the basis of such developments as needed.

32. LEASES

The Company has lease contracts for land, office premises, employee residential premises, computers, plant and equipment,
furniture and vehicles. Leasehold land arrangements are for 90-99 years with various government authorities. Other leases are for
a period upto 9 years with options of renewal and premature termination with notice, except in certain leases with lock-in period
of 6 to 36 months. The Company's obligations under its leases are secured by the lessor's title to the leased assets. Generally, the
Company is restricted from assigning and sub-leasing the leased assets. There are certain lease contracts that include extension
and termination options. The Company also has certain leases with lease terms of twelve months or less and leases with low value.

On December 8, 2021, the Company filed an appeal against the aforesaid CCI Order before the National Company Law
Appellate Tribunal ('NCLAT'). The NCLAT vide its order dated December 22, 2021 has granted a stay of the CCI Order during
the pendency of the appeal filed by the Company with the NCLAT, including recovery of the penalty imposed by the CCI, subject
to deposit of 10% of the penalty amount by the Company. On December 23, 2022, NCLAT passed its judgment and dismissed
the appeals filed by the Company and other appellants. The Company filed appeal against NCLAT order dated December 23,
2022 before the Supreme Court of India on January 30, 2023 under Section 53T of the Competition Act, 2002. On February
17, 2023, after hearing the arguments of the counsel for the Company and the CCI, the Supreme Court admitted the appeal
and stayed the NCLAT Order (and consequently, the CCI Order and the recovery proceeding initiated by the CCI), subject to a
deposit of additional 10% of the total penalty amount, over and above the amount already deposited.

Other non-current assets include Rs.17,941 Lakhs deposited in the form of Fixed Deposit Receipts with the Registrar, NCLAT
relating to the matter discussed below. The Company is currently unable to determine, with certainty, recovery of this asset
and its final obligation relating to penalties, if any.

The matter is currently sub judice before the Hon'ble Supreme Court. Based on the external legal advice, the management of
the Company is of the view that the Director General of CCI and the NCLAT has not considered all aspects of its submissions
particularly considering the nature of the regulations governing the manufacture, distribution and sale of beer in India. As per
the external legal advice, while the Company has a strong case on merits, there exists uncertainty relating to the final outcome
in this matter, as it is subject to judicial proceedings. Accordingly, the Company is not in a position to reliably estimate the final
obligation relating to penalties, if any, and no provision has been recorded in the books of account and the same has been
considered as a contingent liability.

(b) On January 5, 2022, a party has filed a claim of Rs. 2,877 Lakhs against the Company before the Arbitral Tribunal, which includes
claims towards loss of profit, certain reimbursement claims and damages towards breach of contract, etc. On February 12, 2022,
the Company filed a counter claim against the party before the Arbitral Tribunal, which includes claim towards loss of business and
other recoverables. The Arbitral proceedings concluded in August 2025, wherein the Arbitrator awarded UBL refund of Deposit of
Rs. 500 Lakhs and awarded the counterparty Rs. 1,086 Lakhs with 9% interest as compensation. The Company has challenged
the award by way of an application under Section 34 of the Arbitration and Conciliation Act, 1996 before the Commercial Court,
Bengaluru. A stay has been granted by the Court, subject to the Company furnishing a Bank Guarantee of 75% of the Award. The
Company has furnished the Bank Guarantee. The matter is now sub-judice before the Commercial Court.

34. CONTINGENT LIABILITIES

(a) The Company received an order dated September 24, 2021 under Section 27 of the Competition Act, 2002 from the Competition
Commission of India ("CCI”) ('the CCI Order'), wherein the CCI concluded that the Company and certain executives (including
former executives) of the Company contravened the provisions of Section 3 of the Competition Act, 2002. The CCI levied a penalty
of Rs. 75,183 Lakhs on the Company.

(d) The Company is contesting these demands / notices and the management, based on advice of its legal/tax consultants,
believes that its position will likely be upheld in the appellate process. No expense has been accrued in the standalone financial
statements for these demands raised. The Company does not expect any reimbursements in respect of these contingent
liabilities. The amounts disclosed as contingent liabilities above are based on the demands stated in the orders /notices received
from the tax authorities. The management believes that the ultimate outcome of these proceedings will not have a material
adverse effect on the Company's financial position and results of operations.

In addition, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business.
The management reasonably does not expect that these legal actions, when ultimately concluded and determined, will have
material effect on the Company's results of operations or financial condition.

(e) The Supreme Court of India in a judgement on Provident Fund dated February 28, 2019 addressed the principle for
determining salary components that form part of Basic Salary for individuals below a prescribed salary threshold. It is
however unclear as to whether the clarified definition of Basic Salary would be applicable prospectively or retrospectively.
The Component has complied with the aforesaid judgement on a prospective basis from the date of the judgement and
will continue to monitor and evaluate retrospective application, if applicable, based on future events and developments.

36. SEGMENT REPORTING

During the year, the management reassessed the entity's operating structure and concluded that the Company operates as a
single operating segment, as the CODM reviews performance on an overall basis. As a result, separate segment-wise disclosures
are not made.

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those prevailing in arm's length transaction. The outstanding
receivables/payables balances are generally unsecured and interest free. There have been no guarantees provided to or received
from any related party.

38. FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENT

The following table sets out the carrying amounts and fair values of the Company's financial assets and financial liabilities, together
with their respective levels in the fair value hierarchy, determined on the basis of the lowest-level input that is significant to the fair
value measurement as a whole. Fair value disclosures are not presented for financial assets and financial liabilities that are not
measured at fair value, where the carrying amounts are considered to be a reasonable approximation of fair value. Accordingly, the
Management has assessed that the carrying values of trade and other receivables, cash and short-term deposits, other financial
assets, trade payables and other financial liabilities, approximate their respective fair values, as these instruments generally have
short-term maturities and are settled within their normal operating cycles.

Level 1 : Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.

Level 3 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The fair value measurement hierarchy of the Company's assets and liabilities is as below:

There has been no transfers between levels during the year.

Considering that the amounts involved for investment in equity instruments designated as FVTPL as well as FVTOCI are not material,
fair value fluctuations are not expected to be material and hence no further disclosure has been made. The fair values of investment
in quoted debt instruments are based on price quotations and available market information at the reporting date are classified as
Level 1. Further for investment in debt instruments which are not quoted, the Company has obtained valuation from external valuer
for the present value of the expected recoverable amount of such debt instruments and hence this has been designated as Level 2
financial instrument. Discount rate of 6.17% (March 31, 2025 - 6.17%) is considered for the purpose of computing the present value.
The sensitivity of 5% increase/(decrease) in the discount would have an immaterial impact on the valuation.

The fair value of investment in subsidiary for the purpose of impairment assessment is determined based on fair valuation of the
underlying assets. The key assumptions used in the valuation includes marketability discount of 10% and cost to sell of 2%. The
sensitivity of 5% increase/(decrease) in the marketability discount and cost of sell would have an immaterial impact on the valuation.

39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance the Company's operations. The Company's principal financial assets include investments, trade and other
receivables, cash and cash equivalents, bank balances and security deposits that are out of regular business operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management
of these risks. The Company's senior management is supported by a risk management committee that advises on financial risks
and the appropriate financial risk governance framework for the Company.

The risk management committee provides assurance to the Company's senior management that the Company's financial risk
activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed
in accordance with the Company's policies and risk objectives. All derivative activities for risk management purposes are carried
out by specialist teams that have the appropriate skills, experience and supervision. It is the Company's policy that no trading in
derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of
these risks, which are summarised below.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of changes in
market prices. Market risk comprises of three types of risk i.e. interest rate risk, currency risk and other price risk, such as commodity
risk. Financial instruments affected by market risk include borrowings and trade payables.

i. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company's financial instruments will fluctuate because
of changes in market interest rates. The Company's exposure to the risk of changes in market interest rate relates primarily to the
Company's borrowings with floating interest rates. Such risks are reviewed by the Company's treasury team and senior management.
This includes periodic review of borrowing portfolios to assess interest rate exposure and evaluating refinancing or restructuring
opportunities based on market conditions. As on March 31, 2026, floating rate borrowings are Rs.1,17,526 Lakhs (March 31, 2025:
Rs. 57,485 Lakhs).

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on borrowings affected. With all
other variables held constant, the Company's profit before tax and equity is affected through the impact on floating rate borrowings,
as follows:

ii. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's foreign
currency borrowings, trade payable and trade receivables.

The Company did not hedge any exposure as at March 31, 2026 and March 31, 2025 except for foreign currency buyers credit. The
Company has not designated any financial instruments as hedging instruments for the purposes of hedge accounting under Ind AS
109. Accordingly, no hedge accounting has been applied. Foreign exchange differences arising on such foreign currency buyer credit
are recognised in the standalone statement of profit and loss. The Company mitigates foreign currency risk through centralized
treasury oversight, natural hedging via foreign currency revenues/import payables, and selective use of forward contracts where
appropriate. Exposures are monitored regularly, with exchange differences recognised in profit and loss to ensure timely visibility and

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets
covenants attached to the interest-bearing borrowings that define capital structure requirements. The breaches in meeting the
financial covenants would permit the bank to immediately call borrowings. There have been no breaches in the financial covenants
of any interest-bearing borrowings in the current year or previous year.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2026 and
March 31, 2025.

41. The Company has set up a plant in Bihar on land taken on lease from the Bihar State Government ("the Government”). The
Government vide its notification dated April 5, 2016 had imposed ban on trade and consumption of alcoholic beverages and
vide its notification dated January 24, 2017 had imposed ban on manufacture of alcoholic beverages in the State of Bihar. The
Company had filed a writ petition with the High Court at Patna against notification dated April 5, 2016, requesting remedies
and compensation for losses incurred on account of such abrupt notification, which was allowed by Patna High Court, vide
order dated September 30, 2016. Against this order, the Government preferred a special leave petition before the Supreme
Court of India, which is currently pending for final conclusion.

Effective May 1, 2022, the Company has closed its manufacturing operations at Bihar. The Company has received a show
cause notice dated June 25, 2022 from Bihar Industrial Area Development Authority (BIADA) for cancellation of its land lease
in Bihar considering the non-operation of the manufacturing unit. The Company, based on legal advice, filed its response to
the said show-cause notice stating that there has been no violation of the BIADA Act and the notice to the Company is not
maintainable. BIADA cancelled the allotment of land to the Company vide order dated December 16, 2022, against which the
Company filed a writ before the High Court of Patna. The High Court, vide order dated January 25, 2023, directed to maintain
the status quo. On February 8, 2023, the High Court directed BIADA to take a policy decision to deal with the situation arising
out of the action of BIADA in the present petition and identical matters.

BIADA has informed the Company on September 1, 2025 about the revised policies viz., Amnesty Policy 2025 and Exit Policy
2025, advising the Company to avail the benefits under these policies. The Company received an in-principle approval from the
Board of Directors to apply under the Amnesty Policy 2025. Accordingly, on December 29, 2025, the Company applied under
the Amnesty Policy. As per the prescribed procedure, BIADA granted the in-principle approval to our application on January
13, 2026. Basis the approval, the Company has undertaken the requisite steps, as contemplated, including (a) submitting the
detailed project report on March 31, 2026; (b) depositing the administrative fee; and (c) filing an affidavit before the Patna
High Court stating that upon receipt of the final approval, the Company will withdraw the pending Writ Petition. The Company
now awaits the final approval from BIADA.

As at year ended March 31,2026, the carrying value of property, plant and equipment at Bihar is Rs. 5,793 Lakhs. Recoverable
value of the said property, plant and equipment is determined based on fair value less cost of disposal. In determining the fair
value less cost of disposal, the Company evaluated and concluded its right to transfer the leasehold land after considering
contractual rights available to the Company as per BIADA Amnesty policy as stated above.

42. OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules
made thereunder.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period, except for Rs. 50 Lakhs in relation to loan repaid in the past.

(iv) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources
or kind of funds) to or in any other persons(s) or entity(ies), including foreign entities (Intermediaries) with the understanding
whether recorded in writing or otherwise, that the Intermediary shall:

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

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

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

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

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

(vii) The Company did not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 such as, search or survey or any
other relevant provisions of the Income tax Act, 1961.

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

(ix) The Company has not been declared as wilful defaulter by any bank or financial institution or government or any
government authority.

(x) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(xi) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.

43. The Code on Social Security, 2020 ("the Code) which would impact the contributions by the Company towards Provident Fund
and Gratuity, has received Presidential assent in September 2020. The Code have been published in the Gazette of India.
However, the date from which the Code will come into effect has not been notified. The Ministry of Labour and Employment
(Ministry) has released draft rules for the Code on November 13, 2020 and has invited suggestions from stake holders which
are under active consideration by the Ministry. The Company will complete its evaluation and will give appropriate impact in
its standalone financial results in the period in which the Code becomes effective and the related rules are published.