C) Provisions and contingencies

The Company creates provision when there is
present obligation as a result of a past events
and it is probable that an outflow of resources will
be required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is
made when there is possible obligation or a present
obligation that may, but probably will not, require
an outflow of resources. When there is a possible
obligation or a present obligation in respect of which
the likelihood of outflow of resources is remote, no
provision or disclosure is made.

The assessments undertaken in recognising
provisions and contingencies have been made in
accordance with Ind AS 37, 'Provisions, Contingent
Liabilities and Contingent Assets'. The evaluation of
the likelihood of the contingent events requires best
judgment by management regarding the probability
of exposure to potential loss. Should circumstances
change following unforeseeable developments, this
likelihood could alter.

Provisions are reviewed at each Balance Sheet date
and adjusted to reflect the current best estimate.
If it is no longer probable that the outflow of
resources would be required to settle the obligation,
the provision is reversed.

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

D) Property, plant and equipment

Property, plant and equipment are stated at original
cost net of tax/duty credit availed less government
grants received to purchase/construct assets,
accumulated depreciation and impairment losses, if
any. When the significant part of property, plant and
equipment are required to be replaced at intervals,
the Company derecognises the written down value
of replaced parts and recognises the new part with
it own associated useful life and it is depreciated
accordingly. Likewise, when a major repair and
inspection is performed, its cost is recognised in
the carrying amount of the plant and equipment
as replacements, only if recognition criteria are
satisfied. All the other repair and maintenance costs
are recognised in the Statement of Profit and Loss
as incurred.

Depreciation on property, plant and equipment
is provided on the straight-line method over the
estimated useful life of the assets at rates which are
higher / lower than the rates specified in Schedule II
to the Companies Act, 2013. The life of the assets
has been assessed as under based on technical
advice, taking into account the nature of the asset,
the estimated usage of the asset, the operating
conditions of the asset, past history of replacement,
anticipated technological changes, manufacturer's
warranties and maintenance support etc. The
estimated useful lives are as follows:

Useful lives, depreciation method and residual value
are reviewed by the management at the end of each
reporting period.

Gain and losses on disposals are determined by
comparing proceeds with carrying amount of
property, plant and equipment. These are included in
the Statement of Profit and Loss.

An asset's carrying amount is written down
immediately to its recoverable amount if the assets
carrying amount is greater than its estimated
recoverable amount.

E) Impairment

At the end of each reporting period, the Company
reviews the carrying amounts of its property,
plant and equipment and intangible assets to
determine whether there is any indication that
those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount
of the asset is estimated in order to determine the
extent of the impairment loss (if any). When it is
not possible to estimate the recoverable amount
of an individual asset, the Company estimates the
recoverable amount of the cash-generating unit to
which the asset belongs.

I f the recoverable amount of an asset (or cash¬
generating unit) is estimated to be less than
its carrying amount, the carrying amount of the
asset (or cash-generating unit) is reduced to
its recoverable amount. An impairment loss is

recognised immediately in the Statement of Profit
and Loss.

When an impairment loss subsequently reverses,
the carrying amount of the asset (or a cash¬
generating unit) is increased to the revised estimate
of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying
amount that would have been determined had no
impairment loss been recognised for the asset (or
cash-generating unit) in prior years. A reversal of
an impairment loss is recognised immediately in
Statement of Profit and Loss.

Non-financial assets are tested for impairment
whenever events or changes in circumstances
indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for
the amount by which the asset's carrying amount
exceeds its recoverable amount. The recoverable
amount is the higher of an asset's fair value
less costs of disposal and value in use. For the
purposes of assessing impairment, assets are
grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely
independent of the cash inflows from other assets
or groups of assets (cash-generating units). Non¬
financial assets other than goodwill that suffered an
impairment are reviewed for possible reversal of the
impairment at the end of each reporting period.

F) Warranty

The estimated liability for assurance type warranty
is recorded when products are sold based on
management's best estimate. The expense for
such warranties is included under customer service
expenses (other expenses). These estimates are
established using historical information on the
nature, frequency and average cost of warranty
claims and management estimates regarding
possible future incidence based on corrective actions
or product failures.The timing of outflows will vary as
and when warranty claim will arise.

2.4 Other accounting policies

The other accounting policies applied by the Company in

the preparation of its financial statements are listed as

below.

A) Financial instruments

Financial assets and financial liabilities

Financial assets and financial liabilities are

recognised when the Company becomes a party

to the contractual provisions of the relevant
instrument. Financial assets are derecognised when
the rights to receive benefits have expired or been
transferred, and the Company has transferred
substantially all risks and rewards of ownership
of such financial asset. Financial liabilities are
derecognised when the liability is extinguished, that
is when the contractual obligation is discharged,
cancelled or expires. Purchase or sale of financial
assets that require delivery of assets within a time
frame established by regulation or convention in the
market place (regular way trades) are recognised
on the trade date i.e., the date when the Company
commits to purchase or sell the asset.

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

i) those to be measured subsequently either
by fair value through Other Comprehensive
Income or fair value through profit and loss,
and

ii) those measured at amortised cost.

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

For assets measured at fair value, gains and losses
will either be recorded in the Statement of Profit
and Loss or Other Comprehensive Income. For
investments in debt instruments, this will depend
on the business model in which the investment is
held. For investments in equity instruments, this
will depend on whether the Company has made an
irrevocable election at the time of initial recognition
to account for the equity investment at fair value
through Other Comprehensive Income. The Company
reclassifies debt investments when and only when its
business model for managing those assets changes.

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

Measurement

At initial recognition, the Company measures a
financial asset at its fair value other than trade
receivables which are measured at the transaction
price, in the case of a financial asset not at fair
value through profit or loss, transaction costs
that are directly attributable to the acquisition of
the financial asset. Transaction costs of financial
assets carried at fair value through profit or loss are
expensed in the Statement of Profit and Loss.

Financial assets with embedded derivatives are
considered in their entirety when determining
whether their cash flows are solely payment of
principal and interest.

Debt instruments

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

• Amortised cost: Assets (Bank Balances,
loans, security deposits and grant receivable)
that are held for collection of contractual
cash flows where those cash flows represent
solely payments of principal and interest are
measured at amortised cost. A gain or loss
on a debt investment that is subsequently
measured at amortised cost and is not part
of a hedging relationship is recognised in the
Statement of Profit and loss when the asset
is derecognised or impaired. Interest income
from these financial assets is included in
finance income using the effective interest rate
method.

• Fair value through Other Comprehensive
Income (FVTOCI): Assets that are held for
collection of contractual cash flows and for
selling the financial assets, where the asset's
cash flows represent solely payments of
principal and interest, are measured at fair
value through Other Comprehensive Income
(FVTOCI). Movements in the carrying amount
are taken through Other Comprehensive
Income (OCI), except for the recognition of
impairment gains or losses, interest revenue
and foreign exchange gains and losses which
are recognised in the Statement of Profit and
Loss. When the financial asset is derecognised,

the cumulative gain or loss previously
recognised in Other Comprehensive Income
(OCI) is reclassified from equity to Statement
of Profit and Loss and recognised in other
gains/ (losses). Interest income from these
financial assets is included in other income
using the effective interest rate method.

• Fair value through profit or loss (FVTPL): Assets
that do not meet the criteria for amortised
cost or FVTOCI are measured at fair value
through profit or loss. A gain or loss on a debt
investment that is subsequently measured at
fair value through profit or loss and is not part
of a hedging relationship is recognised in the
Statement of Profit and Loss and presented
net in the Statement of Profit and Loss within
other gains/(losses) in the period in which it
arises. Interest income from these financial
assets is included in other income.

Trade receivables

Trade receivables are recognised initially at
transaction value and subsequently measured at
amortised cost using the effective interest method
less any expected credit loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand,
bank deposits and other short-term highly liquid
investments/deposits with original maturities of
three months or less that are readily convertible
to known amounts of cash and which are subject to
an insignificant risk of changes in value, and bank
overdraft.

Impairment of financial assets
The Company recognises loss /allowances using the
expected credit loss (ECL) model for the financial
assets which are not fair valued through profit
or loss. Loss allowance for trade receivables is
measured at an amount equal to lifetime ECL as they
do not include a significant financial component. For
all other financial assets, expected credit losses
are measured at an amount equal to the 12-month
ECL, unless there has been a significant increase
in credit risk from initial recognition in which case
those are measured at lifetime ECL. The amount of
expected credit losses (or reversal) that is required
to adjust the loss allowance at the reporting date
to the amount that is required to be recognised
is recognised as an impairment gain or loss in the
Statement of Profit and Loss.

Derecognition of financial assets
A financial asset is derecognised only when

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

- retains the contractual rights to receive the
cash flows of the financial asset but assumes a
contractual obligation to pay the cash flows to
one or more recipients.

Where the Company has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership
of the financial asset. In such cases, the financial
asset is derecognised. Where the Company has not
transferred substantially all risks and rewards of
ownership of the financial asset, the financial asset
is not derecognised.

Where the Company has neither transferred a
financial asset nor retains substantially all risks
and rewards of ownership of the financial asset, the
financial asset is derecognised if the Company has
not retained control of the financial asset. Where
the Company retains control of the financial asset,
the asset is continued to be recognised to the extent
of continuing involvement in the financial asset.

Trade and other payables

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

Derivative financial instruments
The Company holds derivative financial instruments
such as foreign exchange forward to mitigate the
risk of changes in exchange rates on foreign currency
exposures. The counterparty for these contracts is
generally a bank. Changes in fair value of derivatives
including forward exchange contracts are recognised
in the Statement of Profit and Loss.

Other income

Income from interest on bank deposits is recognised
on the time proportion method taking into
consideration the amount outstanding and the
applicable interest rates.

B) Government grants

Government grants are not recognised until there is
reasonable assurance that the Company will comply
with the conditions attached to them and the grants
will be received.

i) Government grants wherein primary condition
is that the Company should purchase, construct
or otherwise acquire non-current assets
are recognised as deduction from property,
plant and equipment and intangible assets
in the Balance Sheet and transferred to the
Statement of Profit and Loss on a systematic
and rational basis over the useful lives of the
related assets.

ii) Government grants of industrial promotion
subsidy are recognised in the Statement of
Profit and Loss on a systematic basis over
the periods in which the Company recognises
related revenue on which grant for taxes are
intended to compensate.

iii) Export benefits in respect of Merchandise
Exports from India Scheme (MEIS) and
Remission of Duties or Taxes on Export
Products Scheme (RoDTEP) under Foreign
Trade Policy of India are recognised as income
in the period in which goods are exported at fair
value of consideration received or receivable.

iv) Export benefits arising from duty drawback
scheme are recognised on export of goods in
accordance with the underlying scheme at fair
value of consideration received or receivable.

C) Employee benefits

Employee benefits include salaries, wages, bonus,
provident fund, employees' state insurance, gratuity,
compensated absences, long term service award and
staff welfare expenses.

Defined contribution plans

I n accordance with the provisions of the Employees
Provident Funds and Miscellaneous Provisions Act,
1952 and The Employee's State Insurance Act, 1948,
eligible employees of the Company are entitled to
receive benefits with respect to provident fund and
employee state insurance, a defined contribution
plan in which both the Company and the employee
contribute monthly at a determined rate. Company's
contribution to provident fund and employees state
insurance is charged to the Statement of Profit and
Loss.

Retirement benefit costs

The Company operates the following schemes:

- Defined benefit plans such as gratuity.

- Defined contribution plans such as provident
fund.

Payments to retirement benefit plans are recognised
as an expense when employees have rendered
service entitling them to the benefit.

Benefits payable to eligible employees of the
Company with respect to gratuity, a defined benefit
plan is accounted for on the basis of an actuarial
valuation as at the Balance Sheet date using
projected unit credit method. In accordance with the
Payment of Gratuity Act, 1972, the plan provides
for lump sum payments to vested employees on
retirement, death while in service or on termination
of employment an amount equivalent to 15 days'
basic salary for each completed year of service.
Vesting occurs upon completion of five years of
service.

Service costs and net interest expense or income is
reflected in the Statement of Profit and Loss. Gain
or Loss on account of measurements are recognised
immediately through Other Comprehensive Income
in the period in which they occur.

Net interest is calculated by applying the discount
rate at the beginning of the period to the net defined
benefit liability or asset. Defined benefit costs are
categorised as follows:

• service cost (including past service cost, as
well as gains and losses on curtailment and
settlement);

• net interest expense or income; and

• measurement

The Company presents the first two components of
defined benefit costs in the Statement of Profit and
Loss in the line item - employee benefits expense.

Short-term employee benefits

The undiscounted amount of short-term employee

benefits expected to be paid in exchange for the

services rendered by employees are recognised
during the period when the employees render the
service.

Long-term employee benefits
Compensated absences benefits payable to
employees of the Company on retirement, death
while in service or on termination of employment
or separation with respect to accumulated leaves
outstanding at the period end are accounted for on
the basis of an actuarial valuation as at the Balance
Sheet date using projected unit credit method.
Measurements as result of experience adjustment
and changes in actuarial assumptions are recognised
in the Statement of Profit and Loss.

Long-term service award

Eligible employees are entitled to long term service
award, which are in the nature of long term benefit
and are estimated based on actuarial valuation as at
the Balance Sheet date using projected unit credit
method.

D) Income tax

I ncome tax expense represents sum of the current
tax and deferred tax. Current tax assets and
liabilities are offset where the Company has a legally
enforceable right to offset and either intends to
settle on a net basis, or to realise the asset and the
liability simultaneously.

Current tax

The tax currently payable is based on taxable profit
for the period. Taxable profit differs from 'profit
before tax' as reported in the Statement of Profit
and Loss because of items of income or expense that
are taxable or deductible in other years and items
that are never taxable or deductible. The Company's
current tax is calculated using tax rates that have
been enacted or substantively enacted by the end
of the reporting period. Management periodically
evaluates position taken in tax returns with respect
to situations in which applicable tax regulation is
subject to interpretation and establishes provision
wherever appropriate.

Deferred tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and
liabilities in the financial statements and the
corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences.

Deferred tax assets are generally recognised for
all deductible temporary differences to the extent
that it is probable that taxable profits will be
available against which those deductible temporary
differences can be utilised. Such deferred tax assets
and liabilities are not recognised if the temporary
difference arises from the initial recognition of
assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit
amended with effect from April 1, 2023.

The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured
at the tax rates that are expected to apply in the
period in which the liability is settled or the asset is
realised, based on tax rates (and tax laws) that have
been enacted or substantively enacted at the end of
the reporting period.

The measurement of deferred tax liabilities and
assets reflects the tax consequences that would
follow from the manner in which the Company
expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets
and liabilities.

Current and deferred tax for the period
Current and deferred tax are recognised in the
Statement of Profit and Loss, except when they
relate to items that are recognised in Other
Comprehensive Income or directly in equity, in
which case, the current and deferred tax are also
recognised in Other Comprehensive Income or
directly in equity, respectively.

=) Leases

The Company recognises right of use assets and
lease liabilities for all non cancellable leases with
a term of more than twelve months, unless the
underlying asset is low value in nature.

Right of use assets are measured at cost comprising
the following:

- The amount of the initial measurement of lease
liability

- Any lease payment made at or before the
commencement date

- Initial direct cost (if any)

Depreciation on right of use assets and finance costs
on lease liabilities are recognised as an expense in
the Statement of Profit and Loss over the shorter
of the asset's useful life and the lease term on a
straight line basis. The lease payments made by the
Company under the lease arrangement are adjusted
against the lease liabilities.

Payment of cancellable or low value leases are
recognised as an expense on a straight-line
basis over the lease term, except where another
systematic basis is more representative of the time
pattern in which economic benefits from the leased
asset are consumed.

For lease liabilities at the commencement date, the
Company measures the lease liability at the present
value of the lease payments that are not paid at that
date. The lease payments are discounted using the
incremental borrowing rate.

F) Intangible assets

Intangible assets acquired separately
Intangible assets mainly representing computer
software are acquired separately and are carried at
cost less government grants received to purchase/
construct assets, accumulated amortisation and
accumulated impairment losses, if any. Amortisation
is recognised on a straight-line basis over their
estimated useful life. The estimated useful life and
amortisation method are reviewed at the end of each
reporting period, with the effect of any changes in
estimate being accounted for on a prospective basis.

G) Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the Chief Operating Decision Maker (CODM).
Managing Director and Chief Financial Officer have
been identified as the chief operating decision maker
to assess the financial performance and position
of the Company and make strategic decisions. The
Company identifies operating segments based on
the dominant source, nature of risks and returns
and the internal organisation and management
structure. The operating segments are the segments
for which separate financial information is available
and for which operating profit / loss amounts are
evaluated regularly by the executive management in

deciding how to allocate resources and in assessing
performance.

The accounting policies adopted for segment
reporting are in line with the accounting policies
of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities
have been identified to segments on the basis of
their relationship to the operating activities of
the segment (Refer Note No 34 for reportable
segments determined by the Company and segment
information presentation).

Revenue, expenses, assets and liabilities which relate
to the Company as a whole and are not allocable to
segments on reasonable basis are included under
unallocated revenue / expenses / assets / liabilities.

H) Earnings per share

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the period.

Diluted earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders as adjusted for dividend, interest
and other charges to expense or income relating to
the dilutive potential equity shares, by the weighted
average number of shares outstanding during the
period as adjusted for the effects of all dilutive
potential equity shares. Potential equity shares
are deemed to be dilutive only if their conversion
to equity shares would decrease the net profit per
share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted
as at the beginning of the period, unless they have
been issued at a later date. Dilutive potential equity
shares are determined independently for each period
presented.

I) Dividends

Provision is made for the amount of any dividend
declared, being appropriately authorised and no
longer at the discretion of the Company, on or before
the end of the reporting period but not distributed
at the end of the reporting period.

J) Customs duty

Customs duty (including GST) payable on stocks
lying with customs or in bonded warehouses as at
the Balance Sheet date is accrued and included in
the valuation of closing stock. Payment of customs
duty is deferred till clearance of goods.

K) Insurance claims

I nsurance claims are accounted for on the basis of
claims admitted and to the extent that there in no
uncertainty in receiving the claims.

L) Foreign currency transactions and translations

I tems included in the financial statements are
measured using the currency of primary economic
environment in which the Company operates. The
Company's functional currency is ' as Company
operates primarily in India.

Foreign currency transactions are recorded on initial
recognition in the functional currency using the
exchange rate at the date of transaction. At each
Balance Sheet date foreign currency monetary
items are reported using the closing exchange
rate. Exchange difference that arise on settlement
of monetary items or on reporting at each balance
sheet date of the Company's monetary items at the
closing rate are recognised as income or expense
in the period in which they arise. Translation
differences on assets and liabilities carried at fair
value are reported as part of fair value gain or loss.

M) Borrowing costs

Borrowing costs directly attributable to the
acquisition, construction or production of qualifying
assets, which are assets that necessarily take a
substantial period of time to get ready for their
intended use or sale, are added to the cost of
those assets, until such time as the assets are
substantially ready for their intended use or sale.
Investment Income earned on temporary investment
of specific borrowing pending their expenditure on
qualifying assets is deducted from the borrowing
costs eligible for capitalisation.

All other borrowing costs are recognised in the
Statement of Profit and Loss in the period in which
they are incurred.

(v) Changes to share capital:

The Company increased the authorised share capital from 115,000,000 equity shares to 1,500,000,000 equity shares of ' 10
each, which was approved by the Board of Directors in their meeting and shareholders in their extraordinary general meeting
held on October 17, 2024 and October 18, 2024 respectively.

The Board of Directors of the Company, at its meeting held on October 17, 2024 also approved the issuance of five bonus
shares for every one share held by the shareholders of the Company, which was approved by the shareholders in extra¬
ordinary general meeting held on October 18, 2024. The date of allotment of bonus shares was November 18, 2024.

Notes:

i) Interest expense relating to lease liabilities are included in finance cost (Refer Note No 22).

ii) Depreciation charge of right of use asset are included in depreciation and amortisation expense (Refer Note No 23).

iii) Expense relating to short-term and low value leases are included in other expenses as rent (Refer Note No 24).

iv) The Company does not have any leases with variable lease payments.

v) The total cash outflow for leases including interest and short term leases amounting to ' 2,073.44 Millions (March 31, 2025:
' 1,839.50 Millions).

vi) Extension and termination options are included in a number of property and equipment leases across the Company. These
are used to maximise operational flexibility in terms of managing the assets used in the Company's operations. The majority
of extension and termination options held are exercisable only by the Company and not by the respective lessor.

vii) Refer Note No 32 for contractual commitments on lease liabilities.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which
maximise the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs
required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

I f one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is
the case with listed instruments where market is not liquid and for unlisted instruments.

The fair value of trade receivables, loans, cash and cash equivalents, other financial assets and trade payables (including
capital creditors) are considered to be equal to the carrying amounts of these items due to their short - term nature.

(ii) Customer service expenses include consumption of spares aggregating to ' 1,233.14 Millions (March 31, 2025: ' 1,240.74
Millions) and indirect expenses (including expenses related to service and call centres) aggregating to ' 550.36 Millions
(March 31, 2025: ' 522.81).

(iii) It includes sitting fees and commission amounting to ' 19.49 Millions (March 31, 2025'3.75 Millions) paid to Non-executive
non-independent director and independent directors [Also Refer Note No 28(b)].

NOTE 25 : FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
Recognition and initial measurement

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

Subsequent measurement

All financial assets and liabilities of the Company (other than derivative assets / liabilities ) are subsequently measured at
amortised cost.

B) Fair value hierarchy

Fair value of the financial instruments is classified in various fair value hierarchy based on the following three levels:

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

Level 2: Inputs other than quoted price including within level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

Valuation technique used to determine fair value:

Specific valuation techniques used to value financial instruments include:

- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the Balance Sheet date.

- the fair values for security deposits (assets and liabilities) were calculated based on present values of cash flows and the
discount rates used were adjusted for counterparty or own credit risk. They are classified as level 3 fair values in the fair
value hierarchy due to the inclusion of unobservable inputs including counterparty credit.

C) Risk management

Financial risk management

The Company's activities expose it to various risks such as market risk, liquidity risk and credit risk. This section explains the
risks, which the Company is exposed to and how it manages those risks.

Market risk

i) Foreign exchange 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 is mainly exposed to foreign exchange risk on the US Dollar.

The purpose of foreign exchange risk management is to provide the foundation of stable business operations by
minimising the uncertainty and volatility of foreign exchange gains and losses from foreign exchange rate fluctuations.

The Company has its own foreign exchange policy through which the Company minimises the exposure to foreign
exchange risk by netting off foreign exchange assets and liabilities from general operating activities. The Company
considers foreign exchange risk hedges against its remaining exposure with derivative financial instruments and
scrutinises changes in foreign exchange exposure and the results of hedging activities on a monthly basis. Speculative
foreign exchange trading is prohibited.

Refer Note No 36 for the details on derivative instruments and unhedged foreign currency exposure.

The Company's credit period generally ranges from 0-30 days. Considering the large number of customers to which the
Company sells, the credit risk in trade receivables is not concentrated in a single / few customers. The Company has
performed an analysis of historical bad debts and has used the provision matrix approach to determine expected credit
loss (ECL) on such receivablesThe expected credit loss on trade receivables as at March 31, 2026 and March 31, 2025
is determined to be not material.

D) Capital management

Risk management

The Company's objectives when managing capital is to safeguard their ability to continue as a going concern, so that they can

continue to provide returns for shareholders and benefits for other stakeholders.

The Company monitors capital on the basis of the following gearing ratio:

Interest rate risk

The Company is not exposed to significant interest rate risk as at the respective reporting dates.

Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in
financial loss to the Company. To manage this, the management periodically analyses historical bad debts and ageing
of accounts receivable. The Company has secured the credit risk against the trade receivables through credit insurance.

For other financial assets, the Company considers the probability of default upon initial recognition of assets and
whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess
whether there is significant increase in credit risk, the Company does reasonable analysis of counterparty's financial
capability based on following information :

(i) Actual or expected significant adverse changes in business;

(ii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to
meet its obligation;

(iii) Significant increase in credit risk and other financial instruments of the same counterparty;

(iv) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees
or credit enhancements.

The expected credit loss on security deposits, bank balances / deposits and government grants has been determined
to be immaterial.

Maturities of financial liabilities

The tables below analyse the entity's financial liabilities into relevant maturity groupings based on their contractual maturities
for:

i) All non-derivative financial liabilities, and

ii) Derivative financial liabilities

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their
carrying balances as the impact of discounting is not significant.

NOTE 26 (B) : DEFERRED TAX

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

NOTE 27 : DISCLOSURE AS REQUIRED BY INDIAN ACCOUNTING STANDARDS (IND AS) 19 EMPLOYEE
BENEFITS

a) Defined contribution plans

The Company makes Provident Fund and Employees' State Insurance contributions to defined contribution plans for
qualifying employees. Under the Scheme, the Company is required to contribute a specified percentage of the payroll costs
to registered provident fund and employee state insurance administered by government. The Company recognised ' 322.36
Millions (March 31, 2025 : ' 308.67 Millions) for Provident Fund contributions and Employees' State Insurance contributions
in the Statement of Profit and Loss. The contributions payable under these plans by the Company are at the rates specified
in the rules of the respective schemes.

The plan assets of the Company are managed by Life Insurance Corporation of India, ICICI Prudential Life Insurance, India
First Life Insurance Company Limited and Birla Sun Life Insurance Company Limited to fund obligations of the Company with
respect to its gratuity plan which is being administered by LG Electronics India Limited Employee Group Gratuity Fund. The
categories of plan assets as a percentage of total plan assets is based on information provided by Life Insurance Corporation
of India, ICICI Prudential Life Insurance, India First Life Insurance Company Limited and Birla Sun Life Insurance Company
Limited with respect to their investment pattern for group gratuity fund for investments managed in total for several other
companies.

The discount rate is based on the prevailing market yields of Government of India securities as at the end of each of the years

presented for the estimated term of obligations.

The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and

other relevant factors.

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

A) Asset volatility- The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets
underperform this yield, this will create a deficit. Most of the plan asset investments are in fixed income securities with
high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate
risk with derivatives to minimise risk to an acceptable level. A portion of the funds are invested in equity securities and
in alternative investments which have low correlation with equity securities. The equity securities are expected to earn
a return in excess of the discount rate and contribute to the plan deficit. The Company has a risk management strategy
where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from
the range are corrected by rebalancing the portfolio. The Company intends to maintain the above investment mix in the
continuing years.

B) Changes in bond yields - A decrease in bond yields will increase plan liabilities, although this will be partially offset by
an increase in the value of the plans' bond holdings.

C) Inflation risks - In the defined plans, the payment is not linked to inflation, so this is a less material risk.

D) Life expectancy - The increases in life expectancy will result in an increase in the plans' liabilities. This is particularly
significant where inflationary increases result in higher sensitivity to changes in life expectancy.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at
subsequent valuations can impact plan's liability.

1) Refer Note No 25(E) for working capital facility secured by letter of support from the Holding company.

2) Refer Note No 31(B) for contingent liability in relation to royalty payable to related party.

*The gratuity compensated absences and long term service award are computed for all employees in aggregate based on the actuarial
valuation carried out for the Company as a whole. Accordingly the amount related to key managerial personnel has not been separately
identified and disclosed.

Terms and conditions of transactions with related parties - All related party transactions entered during the year were in the ordinary course
of the business and are on arm's length basis. All outstanding receivable balances are unsecured and repayable in cash. Further, no loss
allowances were made against such balances.

i) Based on the interpretation of the provisions of applicable Acts and in respect of other legal cases, the Company is of the opinion that
the above demands are likely to be deleted or substantially reduced and accordingly no additional provision has been made.

ii) Excludes show cause notices replied by the Company. The Company has not yet heard back from the appropriate authorities in the
matter and is of the view that same are not contingent in nature.

Hi) 11 is not practical for the Company to estimate the timing of cash outflows, if any in respect of the above, pending resolution of the
respective proceedings.

iv) During the year ended March 31, 2019, the Company had evaluated the impact of the Supreme Court Judgment in case of “Vivekananda
Vidyamandir And Others Vs The Regional Provident Fund Commissioner (II) West Bengal'' and the related circular (Circular No.
C-I/1(33)2019/Vivekananda Vidya Mandir/284) dated March 20, 2019 issued by the Employees' Provident Fund Organisation in relation
to non-exclusion of certain allowances from the definition of "basic wages" of the relevant employees for the purposes of determining
contribution to provident fund under the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. In the assessment of the
management which was supported by legal advice, the aforesaid matter was not likely to have a significant impact and accordingly, no
provision has been made in the Financial Statements.

v) Amounts are as per demand order and include penalty and interest, wherever applicable.

(B) Contingency on advance pricing agreement of royalty

The Company had accrued royalty expense and paid ' 4,596.58 Millions for the year ended March 31, 2026 (' 4,546.10
Millions for the year ended March 31, 2025) to its holding company, i.e., LG Electronics Inc., Republic of Korea, for the use
of technology and brand name. The royalty was determined in accordance with the revised license agreement dated July 27,
2017, effective from April 01, 2016, as amended from time to time, between the Company and its holding company.

The revised license agreement also provided for additional payment of royalty, which was contingent upon the approval of
the application dated March 28, 2018 for Advance Pricing Agreement ('APA') filed with the income-tax authorities in India
and the Republic of Korea. The period of APA expired on March 31, 2023 and thereafter an application for extension was filed
on March 31, 2023 covering the financial years 2023-24 to 2027-28. The possible obligation arising from additional royalty
payments based on the aforesaid revised license agreement amounting to ' 67,436.64 Millions was disclosed as contingent
liability as at March 31, 2024.

On May 8, 2024, the Company and its holding company, filed a Mutual Agreement Procedure ('MAP') application with the
respective Competent Authority of India and the Republic of Korea, under Article 25(1) of the comprehensive agreements
between India and the Republic of Korea to resolve the consequences of double taxation arising from certain transfer pricing
tax adjustments made by the tax authority of the Republic of Korea on the holding company.

The Company entered into an addendum on November 18, 2024 to the aforesaid revised license agreement, aligning its
royalty obligation to the amount accrued and paid for the respective years and updated its APA application accordingly. The
Company withdrew the APA extension application dated March 31, 2023 through its filing with the Income-tax authority
in India on November 20, 2024. Pursuant to the addendum dated November 18, 2024 and pending approval of the MAP
application, the contingent liability determined as of March 31, 2025 was ' 3,153.00 Millions.

Consequent to agreeing to the terms of a draft Mutual Agreement as shared by the Tax Authorities of India, the Company
received a draft Advance Pricing Agreement ('APA') on August 21, 2025 covering a period of nine years from April 01, 2014
to March 31, 2023.

On January 05, 2026, the Company entered into and concluded the APA with the Central Board of Direct Taxes (CBDT).

Pursuant to the conclusion of the APA:

- Contingent liabilities relating to Mutual Agreement Procedure (MAP) amounting to ' 3,153.00 Millions, has been
reduced to Nil.

- Contingent liabilities relating to certain other transfer pricing related matters covered under the APA have been reduced
by ' 1,724.38 Millions.

- Amounts of ' 894.84 Millions payable to, and ' 856.25 Millions receivable from, LG Electronics Inc., arising from
secondary adjustment provisions in compliance with the applicable transfer pricing regulations in India, have been
recognised in the Financial Statements for the year ended March 31, 2026. (Also Refer Note No 7, Note No 15 and Note
No 28)

- The Company has agreed to pay tax expenses aggregating to ' 223.59 Millions (including applicable interest of ' 46.47
Millions) which has been recognised in the Financial Statements for the year ended March 31, 2026.

(ii) The Company is setting-up its third manufacturing facility ("facility") in the Sri City, Tirupati, in the state of Andhra Pradesh
with projected investment of ' 50,010.00 Millions. This proposal has received the requisite approvals from the Government
of Andhra Pradesh. The aforesaid facility is expected to become operational by the year ending March 31, 2027, initially
focusing on the manufacturing of Air Conditioners and Air Conditioner compressors followed by the manufacturing of
Washing Machines and Refrigerators in the forthcoming years. The Company has executed agreements for factory design and
construction, as well as for installation and commissioning of supporting infrastructure. Based on the agreements executed,
the total capital commitment other than disclosed in (i) above, till March 31, 2026 amounts to ' 19,635.91 Millions (March
31, 2025'10,931.67 Millions).

NOTE 33 : EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY (CSR)

Section 135(5) of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, requires
that the board of directors of every eligible Company, shall ensure that the Company spends, in every financial year, at least 2% of
the average net profits of the Company made during the three immediately preceding financial years, in pursuance of its Corporate
Social Responsibility Policy. The details of CSR expenditure incurred are as follows:

NOTE 34 : SEGMENT REPORTING

The Company has identified two reportable business segments as primary segments: Home appliances and air solution division
and Home entertainment division. These segments have been identified and reported in a manner consistent with the internal
reporting provided to the chief operating decision maker (CODM).

The main products that each business segment manufactures and/or sells are as follows:

Business segments:

- Home appliances and air solution division: Air Conditioners, Refrigerators, Microwave Ovens, Washing Machines, Dishwasher,
Vacuum Cleaners, Compressors, Ceiling Fan, Water Purifiers and Air Purifiers.

- Home entertainment division: Televisions (Flat panel, Signage, Projectors, Monitor TV etc,), Audio Visual, Monitors, Security
Camera, and Personal computers.

Notes:

(a) Figures in brackets relate to the previous year.

(b) Administrative and corporate expenses, interest expense and interest income, unallocable other income and provision for tax have not been
allocated to reportable segments. Consequently, segment wise net profit has not been disclosed.

(c) Unallocable other income has not been measured and reported segment wise as these components are not realistically allocable and
identifiable.

(d) Unallocable corporate expenses include expenses such as depreciation, employee remuneration and benefits, administrative and other
expenses which are not directly related to the specific segments.

(e) Unallocable assets include property, plant and equipment, intangible assets, cash and cash equivalents, deferred tax assets, Unallocable loans
and advances and other current assets which are not directly related to the specific segments.

(f) Capital expenditure pertains to additions made to property, plant and equipment during the year and movement in capital work in progress
during the year.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of
information collected by the Management.

NOTE 36 : DETAILS ON DERIVATIVES INSTRUMENTS AND UNHEDGED FOREIGN CURRENCY EXPOSURE

The following derivative positions are open as at March 31, 2026. These transactions have been undertaken to act as economic
hedges for the Company's exposures to various risks in foreign exchange markets.

Forward exchange contracts which are not intended for trading or speculative purposes but for hedge purposes required at the
settlement date of certain payables and receivables.

NOTE 37 : GOVERNMENT GRANTS

a) I n terms of the Infrastructure & Industrial Investment Policy, 2012 as notified by the Pradeshiya Industrial & Investment
Corporation of Uttar Pradesh Limited ('PICUP'), the Company has received claim approval for availing incentive with respect
to the sales made for products eligible under the aforementioned policy which have been manufactured and sold in the state
of Uttar Pradesh. The Company is eligible for the subsidy provided the additional fixed capital investment of the Company
is not less than ' 5,000 Millions made over a period of five years commencing from January 01, 2015 to December 31, 2019.
The industrial promotion subsidy is restricted to 80% of the State Goods and Service Tax ('SGST') payable after utilisation
of the GST input tax credit calculated on the increased eligible turnover in proportion to the existing investment in factory
situated at Greater Noida in the state of Uttar Pradesh.

Pursuant to fulfillment of the above stated criteria, the Company has recognised incentive aggregating to ' 124.68 Millions
for the year ended March 31, 2026 (March 31, 2025: ' 692.98 Millions) (Included in Note No. 18) which pertains to the
eligible sale of products manufactured and sold in the state of Uttar Pradesh during the year ended March 31, 2026. The
outstanding balance of claims receivable as at March 31, 2026 aggregating to ' 240.26 Millions (March 31, 2025: ' 340.15
Millions) has been included in government grant recoverable in Note No. 7.

b) I n the prior years, the Company was availing sales tax exemption in the State of Uttar Pradesh. Pursuant to an amendment
in the Uttar Pradesh Values Added Tax Act, 2008, the Company is required to deposit with the VAT authorities, the amount
of VAT collected from the dealers and thereafter file a refund claim for the VAT deposited.

The outstanding balance of claims receivable as at March 31, 2026 aggregating to ' 155.54 Millions (March 31, 2025:
' 155.54 millions) has been included in government grant recoverable in Note No. 7.

The Company believes it has good case on merits for the recoverability of the same. Based on legal opinion obtained by the
Company, the Company has taken up matter with appropriate forum and is pending resolution.

c) On January 16, 2025 the Government of Maharashtra, Directorate of Industries has issued eligibility certificate for Mega
(expansion) Unit under Electronics Policy - 2016 and Package Schemes of Incentive - 2013.

As per the eligibility certificate investment of ' 7,057.41 Millions for the period November 01, 2017 to October 30, 2024
is approved under Mega category. Pursuant to this approval, the Company is entitled to get the incentive of ' 7,057.41
Millions in the form of SGST refund, electricity duty exemption, stamp duty exemption, refund of employees contribution
to Employees provident fund, power tariff subsidy and exemption from payment of property tax. The period to claim the
incentive amount is from May 01, 2025 to April 30, 2040 subject to and overall annual limit of ' 470.50 Millions.

The Company has recorded claim aggregating to ' 431.29 Millions for the year ended March 31, 2026 (March 31, 2025: Nil
Million).The outstanding balance of claims receivable as at March 31, 2026: ' 431.29 Millions (March 31, 2025: Nil Million)
has been included in government grant recoverable in Note No. 7.

d) I n terms of the package scheme of incentive 2007 as notified by the Government of Maharashtra, the Company received
another eligibility certificate for availing industrial promotion subsidy under the status of mega project involving expansion
by way of fixed capital investment in the existing project at its factory at Ranjangaon, Pune. The Company is eligible for
the subsidy provided the additional fixed capital investments of the Company is not less than ' 5,000 Millions made over
a period of five years commencing from April 1, 2011 to March 31, 2016. The industrial promotion subsidy is restricted to
the lower of 75% of the fixed capital investment and 50% of VAT deposited with the Government of Maharashtra on the
increased turnover calculated in proportion to the existing investment in factory at Ranjangaon.

The Company has recorded claim aggregating to ' 5.71 Millions for the year ended March 31, 2026 (March 31, 2025: ' 531.26
Millions). The outstanding balance of claims receivable as at March 31, 2026 aggregating to ' 1,035.38 Millions (March 31,
2025: ' 1,522.13 Millions) has been included in government grant recoverable in Note No. 7.

e) Export benefit recoverable includes Duty Drawback Scheme wherein relief of duties suffered on the inputs used in the
manufacture of products which are exported is allowed to the Company, the Merchandise Exports from India Scheme (MEIS)
under Foreign Trade Policy of India (FTP 2015-20) which provides incentive in the form of duty credit scrip to the exporter
to compensate for loss on payment of duties and, the Remission of Duties or Taxes on Export Products Scheme (RoDTEP)
allowed to neutralize duties and taxes suffered on the inputs used in the manufacture of products which are exported in a
freely convertible foreign currency.

The Company has recorded claim aggregating to ' 315.76 Millions for the year ended March 31, 2026 (March 31, 2025:
' 352.16 Millions) (Included in Note No.18).

The outstanding balance of claims receivable as at March 31, 2026 aggregating to ' 106.64 Millions (March 31, 2025:
' 125.78 Millions) has been included in government grant recoverable in Note No. 7.

f) I n terms of the package scheme of incentive scheme 2012 as notified by the Government of India, the Company received
eligibility certificate for availing industrial promotion incentive under the status of modified special incentive package scheme
involving expansion by way of fixed capital investment in the existing project at its factory at Ranjangaon, Pune and Surajpur,
Noida. The Company is eligible for the incentive provided the additional fixed capital investments of the Company is not less
than 25% of existing fixed capital investment made over a period of 10 years. The industrial promotion incentive is restricted
to the 25% of fixed capital investment.

The Company has recorded claim aggregating to ' 477.18 Millions for the year ended March 31, 2026 (March 31, 2025:
' 593.12 Millions).

g) The Company is setting-up its third manufacturing facility ("facility") in Sri City, Tirupati, in the state of Andhra Pradesh with
projected investment of ' 50,010.00 Millions.The required approvals have been received from the Government of Andhra
Pradesh vide G.O. MS. No. 77 dated November 26, 2024, granting a special incentive package to the Company in the form of
providing fiscal and other incentives which are subject to compliance with relevant Government Policy.

The recognition and measurement of the aforesaid incentives in the financial statements shall be based on fulfillment of the
prescribed conditions and in accordance with the applicable accounting standards.

NOTE 40 : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF THE COMPANIES ACT,
2013

(i) Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Borrowing secured against current assets

The Company does not have borrowings from banks and financial institutions on the basis of security of current assets.

(iii) Willful defaulter

The Company has not been declared willful defaulter by any bank or financial institution or government or any government
authority.

(iv) Relationship with struck off Companies

The Company does not have any relationship with any struck off Company.

(v) Compliance with number of layers of companies

The Company has not invested in any other company during the current financial year or previous financial year and does not
have any investment in any other company as at March 31, 2026 and March 31, 2025. Hence, the compliance with respect
to the number of layers prescribed under clause 87 of Section 2 of the Companies Act, 2013 read with the Companies
(Restriction on number of Layers) Rules, 2017 is not applicable to the Company.

(vi) Compliance with approved scheme(s) of arrangements

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

(vii) Utilisation of borrowed funds and share premium

A) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding 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.

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

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.

(viii) Undisclosed income

There is no income surrendered or disclosed as income during the current financial year or previous financial year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(ix) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current financial year or previous
financial year.

(x) Valuation of Property, plant and equipment, right-of-use assets, and intangible asset

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.

NOTE 41 : On November 21, 2025, the Government of India notified four labour codes: the Code on Wages, 2019; Industrial
Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions Code, 2020,
thereby consolidating 29 labour laws. The Ministry of Labour & Employment also issued draft Central Rules and FAQs to facilitate
impact assessment.

Based on the best available information and guidance from the Institute of Chartered Accountants of India, the Company recognised
an incremental impact of ' 124.50 Millions towards gratuity and compensated absences in the Financial Statements for the year
ended March 31, 2026, primarily due to the revised wage definition.

The Company will continue to monitor the finalisation of Central and State Rules and further Government clarifications and will
record any additional impact, as and when required.

NOTE 42:SUBSEQUENT EVENTS

There are no subsequent events that have occurred after the reporting period till the date of approval of the Financial Statements.