The investment property represents leased properties and further given on sublease. The Company has not engaged registered valuer for the fair valuation of investment property, it has been computed by using Discounted cash flows method relating to the lease rentals for the remaining period of lease term. The lease cash flows receivable train such properties have been discounted ut the market rate of interest ot 7.80% (31 March 2024: 8.07%) as at reporting date.

(iii)    For right to use assets other than classified as investment property, refer note 37.

(iv)    For detailed accounting policy for investment property, refer note 2.19.

During the current year the Investment properties has been transferred to Property Plant and Equipment and Right of use asset on account of acquisition of Dcalskart Online

(v)    Serv ices Private Limited.

Upon transition to Indian accounting standards (referred to as Ind AS), the Company adopted optional exemption to consider carrying values as deemed cost on date of transition

(vi)    to Ind AS.

file Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for

(vii)    repairs, maintenance and enhancements.

(i)    Upon transition to Indian accounting standards (referred to as lnd AS), the Company had adopted optional exemption to consider carrying values as deemed cost on date of transition to lnd AS.

(ii)    For detailed accounting policy for intangible assets and amortization, refer note 2.3.

(iii)    During the year ended 31 March 2020, the Company acquired Customer Support Business from Dealskart Online Services Private Limited. This acquisition included an organised workforce, property, plant and equipment, certain other assets and liabilities. The transaction generated goodwill of Rs I0.S7 million, primarily attributed to the one cash generating unit (CGU) involved in the trading and distribution of branded and private-label eyeglasses, sunglasses, contact lenses, accessories, and manufacturing of optical and ophthalmic lenses used in spectacles. The Company annually tests goodwill for impairment. If an event occurs that warrants a review, an impairment test is also performed. The recoverable amount attributed to the CGU is determined based on value-in-use calculations.

For the current year, management has assessed that goodwill is not recoverable, and therefore, an impairment charge has been recognised.

Assumption used in previous year (Financial Year ending 31 March 2024)

The key assumptions used in undertaking the value-in-use calculations for the financial year ending 31 March 2024 involved estimating post-tax cash flows Budgeted profit and cash flow forecasts for this period have been extrapolated for a period of 2 years with a terminal growth rate of 5%. These assumptions form the basis of the calculations. Discount rate assumptions are based on management estimates of the internal cost of capital applied to reflect the expected useful economic life of the goodwill and management's view of the risk associated. A discount rate of 7.5% has been applied.

lil m-'cnmnamhasbencncmhmcreslinimistmcnlraLcnsharlEscttchPrivalcLlmileaoricquityshm-aiMarchZtUa.UquUysharelhcldmdicnamcofanmdisidnal    __.    _____

Th,. Company had mu:,led m 3.4X7.054 cqrn.y sham or Lenskan Solutions Pie Ud ofSCD I each. (Idly paid-up. which represem. 10IK1 of die issued share capital. The change during die tear represents die fresh mteslneru and deemed urteslnuml stock options issued bv the Companv to the cmplovces of the subsidiarv (in) The Campanx had invested in 10.(H)0 cqtut) shares of Ncso Brands Ptc Ltd which represents 100% oflhc issued share capital

lit l Tire Comnam had mtesred in 7411417 euu.lt shares orTango rT Soluuons India Prunle Limned nango") of 1NR 111 caeh. fully pa.d-up The company has acquired add.uonc! t,74.1,04 cqu.lt shares for ccrnsrderalluo of Rs 72.IW million duringI die previous tear resullme mu. tthullt o.tned subside from assoc,are m dm pretioui tear The acqmsmon made dunng lire previous scar has been earned our on a loiter taluauoo as compared to mtcsdncnls made earhe. Indus acqmsllloo. ha.is tthreh the Compan. iecocnJl a pros isron for impoirmcm ou the trdue earned hefore I.................. amuunlm_B lo Rs 02 III million The change represents the deemed Imeslmcm in lieu or slock oplloos issued by Ac Company lo Ihe employees oflhc sohs.duny

|v) The Company hod msesled in SRO Senes Al Compulsorily Conscmblc Preference Shares ul'Adlold Teclmolog.es Pnsale Limned CAdluWI The eliange during Ihe year represent fair value change During Ihe pretious scar. Ihe Company has teceised 175 Senes A2 Adlold Technologies Pmnlc Limned in lieu or advisory sen tecs .... The Comoonv had tnscslcd in 2117 Serlel C Contpulsorili Convertible Preference Shares at a price of Rs 17.4113 per share of Thmkcrbcll Lahs Pvr, Lid The change dunng dm yea. represents .he fair value.change

rs„! Tire Comnam had mte,red in 31.107 Pre S^TA Compnlsonl, Compulsorily Coovenrhlc Piefeiencc Shares ofOuamDuo Teclmolugics Pmale Lrmrled COnanlDuo ). rius mveslmem prmrdes Ihe Company sigmlicant mllncncc over key decs,on making thereby, QunillDuo has been classified as an associale as al 31 March 2023 During the previous year. Ihe company has received 1.011 preference shines III lieu ofadvison services a Rs. 308 (2024: Rs 3OH) in absolute rupees    ,    ,    ,

(is) Thinopllcs has issued 10.B7.435 preference shales lo Use company In lieu of die promissory nolcs held by ihe Company The chengc dunng die year represents fair value change

' _D,„, J ,hc tear, dre Compam levs acquired I MW in Dealsknir Online Semces Pntale Limiled (DOSPL) The Company has defened reeeitables from DOSPL and mil be fccciscd atlhe neM rout tears The hade recctahles oulsrandmgas Marel, . . accounted using present taluc of money and dillcrcncc belrtcci cany lug amounl and prcscnl value or Hade receivables are accoumcd as deemed investment of Rs. 103 17 million in DOSPL (si) During die year, lire Company las invested ill 137 Compulsorily Convcrnblc Preference Shores al a price ofRs 104.6111 per share ofWchcar InnvoaUons Pu. Lid (Ml) During the >car. the Compam has accqutrod 5(1" „ interest in VtsumSurc Sort ices Private Limited and classtfed as investment in joint venture

A. The Companv lias given unsecured loan lo Lenskurt Singapore Pic Ltd amounting lo Rs 3,255 92 million (31 March 24 Rs 2,791.26 million) lor business expansion and working capilal requirements The loan earned an interest rate of 5 97?® pa. (effective inlcrst rate) with effect front (I l Apnl 2022 Far purpose of the loan given refer note 4S(iv).

B The Companv has also given unsecured loan to Ncso Brands Pte Ltd amounting to Rs 82 93 million |31 March 24 Rs 71 06 million) which camcs an interest rate off 97*« p a (effective intent rale) and is rcpavable on demand The loan earned an inlctnl rate of 5.97% p a (effective inlcrst rale) with effect from 01 April 2022 For purpose of the loan given refer note 45(tv)

c)    Right', preferences ami restrictions uttaclu.il to equity 'hunt

The Company has equity shares haxing a par value ol‘ Rs 2 per share Each shareholder is eligible to one vote per share held The dividend proposed, if any. by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting, except in ease of interim div idend The voting rights of an equity shareholder on a poll (not on show of hands) arc in proportion to us share or the paid-up equity capital of the Company Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid In the event of liquidation, the equity shareholders arc entitled to receive remaining assets of the Company, after distribution of all preferential amounts The distribution will lie in proportion to the number of equity shares held by the shareholders

d)    Rights, preferences uml restriction* attached tu equity shares Series A

The Company lias equity shares Senes A having a par value of Rs 2 per share Each shareholders is eligible to one vote per shine held    The dividend    proposed. If say, by the Board    of Directors is subject to approval uf shareholders in    Annual General

Meeting, except m case of interim dix idend The voting rights of an equity Series A xh.irel*older on a poll (not on show of hands) ate m    proportion to    its sliarc of paid equity capital    of live Company Voting rights can not be exercised    in respect of the

shares on which any calls or others stuns presently payable have not been paid In the event of liquidation, equity shareholders arc entitled lo receive remaining assets of the Company after distribution of preferential amount) in the proportion of equity shares Series A held by the shareholders

c) Rights, preferences and rcstrietiuns attached to equity slurcs Series B

The Company has equity shares Series B having u par value of Rs 2 per sliarc Each shareholders is eligible to one vole per sliarc held    The dividend    proposed. If say. by the Board    of Directors is subject to approval of shareholders in    Arnuiul General

Meeting, except in ease of interim dividend The voting rights of an equity Series B shareholder nn poll (not on show of hands I arc m    proportion lo    its share nf paid equity capiuil    of the Company Voting nuiils can not be exercised    in respect of the

slurcs an which any calls nr others sums presently payable have not been paid In the event of liquidation, equity shareholders arc entitled to receive remaining assets of the Company after distribution of preferential amount) in the proportion of equity slurcs Senes B held by live shareholders

All llie class of equity share holders have equal nghls.

D Terms attached to stuck options granted to employees are described in note 3-1 (E) regarding employee share based payments.

il) Right*. preference* ami n»trk'ii»n!i attached to preference shares

Tl*c Company has Compulsorily convertible preference shares (CCPSl having a par value of Rs 2 per share (other than CCPS Class 2 ol'Rs III each) Preference shares cam a preferential right as to dividend over equity shareholders Dividend on cumulative preference shares is mu declared for a financial year, the entitlement thereto ts earned forward to the next year The preference shates are entitled to one vote per sltatc at meetings of the Company on any resolutions of the Company directly alTecting their rights In the event of liquidation, preference shareholders have u preferential right over equity shareholders to be tcpald to the extent of capital paid-up and dividend in arrears on such shares And all the preferred rights as stipulated in under Articles X of Articles of Association (AOA)

The preference shares ram u dividend ofO 0(11*'., per annum The rate of dividend is reduced to 0 001'li per annum lium X^-i. per annum earlier vv.o f 20 March 20 IS. The dividend rights ate cumulative The preference shares rank ahead of the equity shares m the event of a liquidation The presentation of these shares is explained in the summary of significant accounting policy

During the year ended 31 Match 201K. live preference shares holders have waived their right to receive cumulative preference div tdend ol'X% per annum accrued till 31 March 201X pursuant to amendment to the shareholders agreement el Term of conversion of preference shares

li (H)|".i (31 March 21124 0 001%) Contpulsonly Convertible Cumulative Preference Shares of the Company, having a nominal value of Rs 2 each (other than CCPS Class 2 of Rs III each) of which shall be entitled to be convened into Equity Shares at die earliest or the following events in the manner stipulated under Articles 11 and AOA.

Senes A

One business day immediately preceding die filing of the Red Herring Prospectus in connection with a qualified IPO. or The exercise of an option by the Preference Shares Senes A Shareholders in respect of either the full or a pari of the Preference Sharer, or Not Inter dtan 15 years from 4 October 2l!l I in the manner stipulated under Articles 11 of AOA.

Senes B

One business day immediately preceding die lllmg of the Red Herring Prospectus in connection with a qualified IPO. or The exercise of an option by the Preference Shares Senes B Shareholders in respect of cither the full or a pan of the Preference Shares, or Not later than 15 years from the 6 February 2013,

Series C2

One business day immediately preceding the filing of the Red Herring Prospectus in connection with a qualified IPO; or The exercise of an option by the Preference Shares Series C2 Shareholders in respect of either the full or u part of the Preference Shares, or Not Inter than 15 years from live 22nd March. 2016;

Senes D

One business day immediately preceding live filing of the Red Herring Prospectus in connection with a qualified IPO. or The exercise of an option by the Preference Shores Senes D Shareholders in respect of either the full or a part of lire Preference Shares; or Not later than 15 years from the 2nd May. 2016

Series E

One business day immediately preceding the filing of the Red Hemng Prospectus in connection with a qualified IPO. or The exercise of an option by die Preference Shares Senes E Shareholders in respect of either the full or a part of the Preference Shares, or Nat Liter than 15 years from the 2nd September. 2016

Series F

One business day immediately preceding die filing of die Red Herring Prospectus m connection with a qualified IPO. or The exercise of an option by the Preference Shares Series F Shareholders in respect of either the full or a part of the Preference Shares, or Not bier than 15 years from the 16th September. 2011

(All amount* in Rs. million unless otherwise stated)

da, rmmcdialcl, preceding dm mine of the Red Hearing Prospect* m connection with a qualified IPO: or UK eaenasc of an uplion by the Preference States Senes G Shareholders in respect of cither the Pull or a pan ortbe Preference Shares; or Nol lalcr than 15 years from lire 20lh December. 2019.

One'bustncis das muocdiamly preceding rhe films of lire Red Hcmn« Prospeelus m connection ssr.h a qualified IPO. or The cyercuc of an option by Ibe Prelcrenee Stares Senes H Shareholders rn respeel olerrher the Util ora pan of Ihe Preference Shares: or Not later than 15 jeors from the 2fith July. 2021

O^businai da, rmmedialcl, preceding die filing ofrbe Red Hcntng Prospeelus rn connection nidi a qualified IPO. or He exercise of on opium b, Ihe Preference Stares Senes I Shareholders in respeel of culler the full or a pan of rhe Prclcicncc Shores; or Not later than 15 years from the date of issuance of shares The below table presides llw details w r l issuance of shares.

OnTbusmess da. ,mured,aid. preceding rhe films nflhe Red Hcmnu Prospeelus m conned,m,    mil, a qualified IPO. or The cscrcrsc of an opr,on b, Ihe Preference Share. Senes I! Shareholder, m    respeel    oferlher    the full    or    a pan    or    die Preference

Stares, or Not lalcr dran 15'sears from the dale of issuance of shores Tic consersion ralio is    112'J5f. 1011 (1011 equity share for I I’d.'I, Scries I! CCPS sub,eel ro die icmis and cruidmuns of die    defimusc aercenKots    useemed    b,    Ibe    Compare

including the SHA)

TbcCCPS shall he com entitle rnlo Equity Stares las defined m die Amelia) In llicralio of) 01    I Iforccix 001 CCPS held. 1 Hqulls Sharel lobe issued alter considering die Impact of boom, moo

Tl'mCCPS shell be consemblc mlo Equity Shores las defined In lire Articles) m Ihe ral.o of I 3P (for eserx I CCPS held. 3(1 Equity Stare, lo be issued afier considering Ihe impact of bonus issue Class 3

The CCPS shall be convertible into Equity Shores (as defined in the Articles) in the ratio of

(t) IU0.40 (for every I DU CCPS held. 40 Equity Shares la be issued) lit the event either domestic or international expansion target has been achieved on or before 30th September. 20..

<tt) I 5 (for even I CCPS Itcld. 5 Equity Share to be issued) in the event both domestic and international expansion target has been achieved on or before 30th September. 2025 tiii) 101) If) (for every 4 CCPS held. I Equity Shore to be issued) in Ihe event neither domestic nor international cxpaiWton target has been achieved on or before 30th September. 2025

at the Option of die holder of CCPS at any time prior to 2d jennr. uulomalicull,. 5 dn>5 prior to Mpirs of 20 yunrscautonumcally 5 da,s prior la oceununee of on celt esent liquidation ur winding up of the Compare This eon.cmion » subject lo CCPS being fully paid and holders attending und pantcipatmg in the discussions of the Shareholders of the Company until 30th September. 202?

Nature and purpose of resenes

(i)    Securities premium    ..    .    ,    ., ,    ... «    ..... mu

Securities premium is used to record the premium on issue of shares The reserve can he utilised onl> for limited purposes such as issuance of bonus shares in accordance mill the provisions of the Companies Act. 2»I3

(ii)    Share options outstiimlina accuunt    ....

Tlie Company has established various equity-settled share-based payment plans for certain categories of employees of the Company Refer to Note 34 (D) for farther details on these plans

(iii)    Capital resene    .

The Company had recognized capital rescnc on purchase of business unit from us wholly owned subsidiary ‘Lenskart Eyctcch Private Limited

¹    the ptoftetlos!) that the Camptim has cmtthlnaintti till date. IcM am Iransfcn to pcnml tome dividend. or pthc, distributions pptd to .hotcboldm. Retained Cuming include remteamthtmem lu.s l (Brill) cm ch.Ttn.-d bcncllt pinna, net 0

reclassified to Statement of Profit and Loss

(v| Treasury Shares    ,

Tins represents cost incurred by the Company to purchase its own equity shares ftnm secondary market through the Company’s ESOP trust far issuing the shares to the eligible employees on exercise ol stuck options

Mato:

(I) Details ol vecunty ot long ierm hnnms mg. lor ihe year ended * 1 Match

Termliuuhorn 11DFCBank Limiiciloutitaiidm#toR* I.KMS million f?l Match 2KM IU t.l'W, I t millinm. which includes currentnumniic*«l'R» 1«4 0»million <31 March2D24: tU 17025million) andprocessingfee*nettedofJU I S'n»Uwo(JJ March ^024 . Rs : .14 million) it -recurcd hy first charge an

a. All Borrower's nremivoblc properties (owned anil or learcsl. together with all structure* and appurtenances thereon. pertaining io ihe Project prevent anil ruturc. located ai ElhiwoJi Rajanlun

b All Borrower ! tangible movable *scet<. including movable plant and machinery. machinery tools and accessories. forauure. fluiim. vehicle and all other movable assets. penalnmtf la the project (including«oH"S and Machinery at burton

!-Ti|, the nidus. title, inicTcrt, benefit*. claims and demand. whatsoever ..rBiWinwenn Project Documents. a» amended, ssnednr supplettvmcd from time to time, <») all therights. title, interest. benefit:., claims and demand! whatsooa nfBonnwer in ihe clearance. in rcpcv.1 ol the I*miec1. lu.) all the right., title, interest. benefits claim, and demand, whatsoever of Borrower rn any letter of .tciilt. guarantee (including contractor giummemt. pertontunce bond* pmv>lcd by any puny under IWct Oooimem,. ptc.cnt and miurc. nnd (sv| all the nghu, lilies interests. benefits. claim. .imJ demand whatsoever of Borrower m respect of insurance contract, policies pnxured by the Borrower or procured b> any ol ns contractor, bunting the Borrower far ihe Project Insurance Proceeds in respect oi Use Project, prevent and tut me.

d A tint charge hy way of hypothecation on escrow account. DSRA sml any miser reserves stipulated by Lender .i» applicable.

Nature ot'CSR activities : Vision correction through eye care services

Above includes a contribution of Rs. 14.42 million (2023-24: 7.04 million) towards ongoing projects undertaken by subsidiary Lensknrt Foundation which is a Section 8 registered Company under Companies Act, 2013. Lenskart Foundation is primarily engaged in the following activities on non-profit basis.

a) ~To work in the area of vision correction for all sections of the society by making consistent efforts and steps towards spreading awareness about vision correction, developing low cost technology that enables us and others to make vision care accessible in all nooks and comers of the country.

b)    To reduce die number of v isually challenged population in India, by providing affordable, costless eye care services accessible to all sections of society through innovative eye care models.

(vi) During the year the company has given a contribution of Rs. 13.00 million (2023-24: 9.83 million) to subsidiary Lenskart Foundation which is a Section 8 registered Company under Companies Act, 2013 for the purpose of CSR. The Company was required to spend Rs 14.42 million (2023-2*1: 7.04 million) as CSR obligation during the year and hence excess contribution of Rs. 7.05 million (2023-24: 8.47 million) is recognised as a CSR asset which will be carried forward to next year and adjusted against future CSR obligation.    ___

32 Earnings per share (EPS)

The calculation of basic earnings per share has been based on the following profit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding.

Diluted earnings per share amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares. The following reflects the income and share data used in the basic and diluted EPS computations:

Note: The Company has issued bonus shares of 69,39,92.016 fully paid-up Equity shares of 1NR 2 - (Rupees one) each as fully paid-up Equity Shares in proportion of 9 new fully paid-up Equity Shares of INR 2/- for every I existing fully paid-up Equity Shares of INR I - each to the eligible shareholders of the Company whose names appear in the Registers of Members or in the Register of Beneficial Owner maintained by the depositories on the record date, i.e.. October 16, 202*1.Consequent to this bonus issue, the earnings per share has also been adjusted for all the previous periods presented, in accordance with hid AS 33, Earnings per share.

A Gratuity- rnfnndcd

The Company luis a unfunded defined benefit gratuity plan for qualifying employees The scheme provide for lump sum payment to vested employees at retirement, death while in employment or on termination of employment Vesting occurs upon completion of live year of services

Every employee who has completed five years or more of services, gets a gratuity on departure at 15 days basic salary (last drawn) for each completed year of service on terms not less favourable than the provisions of the payment of Gratuity Act. 1972

The following tables summaries the components of net benefit expense recognized in the Statement of Profit and Loss and the status and amounts recognized in the balance sheet for the plan

The above sensitivity analysis axe based un a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) lias been applied which was applied while calculating the defined benefit obligation liability recognised in the balance sheet

The methods and types of assumptions used in preparing the sensitivity' analysis did not change compared to prior period

B Compensated absences

The liability for compensated absences cover the Company's liability for Leave (as per Company Policy) The amount of the provision presented as current represents the leaves over which the Company does not have on unconditional right to defer settlement for any of these obligations However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next twelve months

C Provident fund

Contribution made by the Company during the year is Rs 80 61 million (31 March 2024 Rs 71 03 million)

The Code on Social Security. 2020 ('Code') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020 The I) Code has been published in the Gazette of India Certain sections of the Code came into effect on 3 May 2024 Howev er, the final rules interpretation have not yet been issued Based on a preliminary assessment, the entity believes the impact of the change will not be significant

# in llie absence of fulfilment of the related export obligation, the Company will be liable to pay the amount of duty saved along with interest.

c) The Company has confirmed parent support by way or financial, operational, infrastructure and manpower support, which will be reviewed on periodical basis to it's subsidiary Lenskart Solutions Pte. Ltd and Neso Brands Pte. Ltd-

Note:

1.    In addition to the above two cases, in respect of assessment year 2018-19, Income-tax authorities has disallowed certain expenditure amounting to INR 519.56 million. The Company has accepted the disallowance of INR 390.41 million and for balance disallowance appeal has been filed with Income-tax authorities Further, no demand has been issued against the above disallowances by the Income-tax authorities.

2.    The Company had received assessment order Tor AY 2013-1-1 from income tax authorities wherein the department raised demand on account of certain unexplained cash credits.

3.    The contingent liability for GST and Custom case is on account of classification of Zero power glasses. Such glasses were being sold @ 12% GST. however, the GST authorities are of the view that such spectacles with zero power lenses are taxable @ 18%.

The management based on internal assessment and legal opinion obtained, believes that no material liability is likely to arise on account ot such claims'law suits.

37 Leases

The Company has lease contracts for various properties (including leasehold land, office buildings and stores) used in the normal course ol business.

-    Leasehold land is a lease executed with Rajasthan Slate Industrial Development and Investment Corporation Ltd. ('RIICO') for a period of 99 years.

-    Lease of building generally have lease term between 5 to 15 Years.

The Company’s obligation under its leases are secured by the lessor's title to the leased asset. Such leases are recognised as right to use asset. Further, out of such properties, there are certain property leases further given on sub lease and classified as Investment property in the financial statements.

The Company also has certain leases of building with less than 12 months and certain lease assets with low value. The Company applies the " short term lease" and lease of low value asset" recognition exemption for these leases.

(A) As Lessee    .

In the year ended 31 March 2020. upon first time implementation, the following is the summary of practical expedients elected by the company on initial application:

1.    The company has used a single discount rate to a portfolio of leases of similar assets in similar economic environment.

2.    The company has applied the exemption not to recognize Right of use asset (ROU) asset and liabilities for leases with less than 12 months ol lease term on the date ot initial application.

3.    The company has excluded the initial direct cost from the measurement of the ROU asset at the date of initial application.

4.    The company has applied the practical expedient to grandfather the assessment of which transactions are 'leases’. Accordingly. Ind AS 116 is applied only to those contracts that were previously identified as lease under Ind AS 17.

38. Financial instruments and fair value measurements A. Accounting classifications and fair values

The Company's assets utid liabilities which arc measured at amortised cost for which fair value are disclosed at 31 March 2025 (i) Fair value hierarchy

Financial assets and fmuncial liabilities measured at fair value in the balance sheet are categorised into three levels of fair value hierarchy The three levels are defined based on the observability ol significant inputs to the measurement, as follows

Level 1: quoted prices (unadjusted) in active markets Tor financial instruments.

Level 2: inputs other than quoted prices included within Level 1 that arc observable for the asset or liability, either directly or indirectly.

Level 3: Inputs which are not based on observable market data.

(iv) Valuation technique used tu determine fair value

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements To provide an indication about the reliability of inputs used determining the fair value, the Company has classified its tinancial instruments into the three levels prescribed under the accounting standard

The following methods and assumptions have been used to estimate the fair values

(A)    The fair value of investments in mutual fund units is based on the net asset value (NAV) as stated by the issuers of these mutual fund units in the published statements as at the Balance Sheet date NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors

(B)    In order to arrive at the fair value of unquoted investments, the Company obtains independent valuations The techniques used by the valuer are us follows

a)    Income approach - Discounted cash flows (“DCF’) method

b)    Market approach - Enterprise valuc'Salcs multiple method

39. Financial risk management    ....... .....    ...

The Company's principal financial liabililies comprise loans, borrowings, trade payables, lease liabilities, capital creditor, retention money payables, employee benetn payables and refund liabilities. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include loans, trade and other receivables, investment in preference shares, bank deposits, security deposits and cash and cash equivalents that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The Company s management oversees the management of these risks and appraises the Board ofDirectors from time to time basis the impact assessment.

(A) Credit risk    .    ,    ...

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails to meet its contractual obligations, and arises principally from the Company s receivables

from customers, loans and other deposits etc.

The carrying amounts of financial assets represent the maximum credit risk exposure.

(i) Credit risk management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from ib operating activities (primarily trade receivables) and font its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The Company only deals with parties which has good credit rating worthiness given by external rating agencies or based on Company's internal assessment.

All doubtful receivables are duly recognized from time to time post discussion with key stakeholders and provided for in the financial statements as deemed appropriate.

All the financial assets carried at amortized cost were considered good as at 31 March 2025 and 31 .March 2024. The Company has not acquired any credit impaired asset. There was no modification in any financial assets.

a.    Financial instruments and cash deposits    ..    , _

Credit risk fiom balances with banks and financial institutions is managed by the Company's treasury' department. Investments of surplus funds are made only with reputed Funds as aligned with the Board. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.

b.    Security' deposit and other advances    ........

With regards to security deposit and other advances, the management believes these to be high quality assets with negligible credit risk. The management believes the parties to which these deposits and odier advances have been made have strong capacity to meet the obligations and where the risk of default is negligible or nil and accordingly no provision for excepted credit loss has been prov ided on these financial assets.

c.    Trade receivables (Expected credit loss for trade receivables under simplified approach)    .

Tlie Company follows ’simplified approach’ for recognition or impairment loss allowance on trade receivable. Under the simplified approach, the Company does not track changes in credit nsk Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from initial recognition.    ,

For homogenous -roup of receivables, the Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default and delay rates over the expected life of the trade receivable and is adjusted for forward looking estimates. At year end. the historical observed default and delay rales are updated and

changes in the forward-looking estimates arc analysed.    .....    - ,

For other debtors that are heterogeneous in nature, individual receivables which are known to be uncollectible are written otTby reducing the carry ing amount oi trade receivable and the amount of the

loss is recognised ill Ihe Staiement of Profit and Loss within other expenses.

(B) Liquidity risk    .

Prudent liquidity risk management implies maintaining sufficient casli and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and lo close oui market positions. Considering the business requirements, the trexsury maintains flexibility in funding by maintaining availability under committed credit lines. Management moniiors rolling forecasis of Ihe Company's liquidity position and cash and cash equivalents on the basis of expected cash flows.

Maturities of financial liabilities

The tables below analyse Ihe Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all financial liabilities, for which tile contractual manirilics are essential for an understanding of the timing of Ihe cash flows. The amounts disclosed in the table ate the contractual undiscountcd cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

Market risk is Ihe risk that the fair value of future cash flows of a financial Instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk, financial instruments affected by market risk include deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at 31 March 2025 and 31 March 2023. file analyses exclude the impact of movements in market variables on: Ihe carrying values of gratuity and other post-retirement obligations und provisions. The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective murket risks. This is based on the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.

(i) Foreign currency risk

Foreign currency rrsk is the risk that the fair value or future cash flows of on exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rales relates primarily to Ihe Company's operating activities and the Company's net investments in foreign subsidiary. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of any of the Company entities, flic Company does not use forward contracts and swaps for speculative purposes.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Assets: The Company’s fixed deposits are carried at amortised cost and are fixed rate deposits. They are therefore not subject to interest rate risk as defined in lnd AS 107, since neither the earn ing amount nor the future cash flows will fluctuate because of a change in market interest rates.

Liabilities: The Company is exposed to interest rate risk on the below mentioned borrowings

40. Capital management    .

For the purpose of the Company's capital management, capital includes issued equity capital, convertible preference shares, securities premium and all other equity reserves attributable to the equity holders. The primury objective of the Company’s capital management is to ensure the Company's ability to continue as a going concern and maximize the shareholder value. Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and 31 March 2024.

43 Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act, 2006”)

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum number as allocated after filling the Memorandum Based on the information received and available with the Company, there are no dues outstanding to micro and small enterprises (Suppliers) other than covered below under the Micro, Small and Medium Enterprises Development Act, 2006 as at 31 March 2025 and 31 March 2024.

45 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.

(ii)    The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

The Company lias complied with relevant provisions of the Foreign Exchange Management Act, 1999 (42 ol 1999). la the extent applicable, the Companies Act. 2013 for these transactions and iliese transactions arc nol violative of the Prevention of Money-Laundering Act. 2002 (15 of 2003). Except for the above, the Company lias nol advanced or loaned or invested funds to any other person(s) or enlity(is). including foreign entities (Intermediaries) with the understanding that the Intermediary shall (a) directly or indirectly lend or invest in other persons or entities identilied in any manner whatsoever by or on behalf of the company (Ultimate Beneliciaries) or (b) provide any guarantee, security or the like lo or on behalf of the Ultimate Beneficiaries.

(v) The Company has nol received any fund from any person(s) or entity(is). including foreign entities (Funding Party) with Ihe understanding (whether recorded in writing or otherwise) 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 Ihe Funding Party (Ultimate Beneliciaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

_(vj) The Company does not have any transaction which is not recorded in the books or accounts that has been surrendered or disclosed as income during the year in the lax assessments under Ihe Income Tax Act. 1961 (such as. search or survey or any other relevanl provisions of the Income Tax Act. 1961),

(vii)    The Company is nol declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereol or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank oflndia.

(viii)    The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Lavers) Rules. 2017.

(ix) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

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

(xiii)    The Company has not granted any loans to the promoters, directors. Key Managerial Person's and llte related parties (as defined under Companies Act, 2013), either severally or jointly with any other person which are repayable on demand or without specifying any terms or period of repayments as at March 31,2025 (as at March a 1.2024: Nil).

(xiv)    Tite Group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016) does not have Core Investment Company (CIC).

47A The Company has used multiple accounting software's including third party applications for maintaining its books of account, which has a feature of recording audit trail (edit log) facility and the same has operated throughout the vear lor all relevant transactions recorded in the software, however (a) with respect to main accounting software operated by third party management could not identify the control relating to audit trail features at database level in the service organisation control report lints management is unable to assess whether audit trail feature was enabled and operated lltroughoul the year at database level, (b) For two Inventory management software's audit trail feature was enabled in phase wise manner i.e. July 30, 202-1 onwards and therefore was effective through the remaining part of the year. Further, post effectiveness of audit truil features, management has not identified any instances ol audit trail features being tampered, to the extent enabled.

Additionally, with respect to main accounting software, in the absence of controls in the service organization control report, the Company is unable to assess whether the audit trail has been preserved and with respect to inventory management software’s audit trail have been preserved by the Company as per the statutory requirements lor record retention, to the extent it was enabled.

47B The Company has maintained proper books of accounts as required by law except that with respect lo one inventory management software, the Company does not have server located in India for the daily backup of the books of account and other books and papers maintained in electronic mode, rite Company is in process of setting up server in India in order to be in compliance with Rules as applicable under Companies Act 2013

48 During the current year ended March 31. 2025, the Company's wholly owned subsidiaty - Lenskart Singapore Pte Ltd. has made an additional investment in Owndays Inc (name ol investee company) for an additional stake of 4.4% leading to 96.67% slake in the company as on March 31.20—5.

Government grant to be received for the purchase of certain items or property, plant and equipment. The company has to fulfil export obligation or six times of amount of duty saved over a period of six years, from respective date of import, under the EPCG scheme against import of plant and machinery, (refer note 35)

511 The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under section 92-92F ol the Income Tax Act 1961. Since, the law requires existence of such information and documentation of to be contemporaneous in nature. Company has executed necessary agreement document with all such related parties wherever transfer pricing is applicable The management is of the opinion that it's transaction arc at amt's length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expenses and that or provision for tax.

s| Balances mentioned below includes recoverables in foreign currency invoiced for more than 270 days and payables in foreign currency invoiced for more titan 36a days. The Company is in the process of discussing with AD / Reserve Bank of India (RBI) for receiving regularizing the same. Pending the final outcome of this matter, no adjustments have been made to the accomnanvine standalone financial statements in this regard.

52 Rounded off figures

Certain amounts (currency value or percentages) shown in the various tables and paragraphs included in these financial statements have been rounded ofl or truncated as deemed appropriate by the management of the Company.