XVIII. Provisions, contingent assets and contingent liabilities

Provisions are recognised only when there is a present obligation, as a result of past events, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and when a
reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed
at each reporting date and adjusted to reflect the current best estimates.

Provisions are discounted to their present values, where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the control of the
Company; or

• Present obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognised. However, when inflow of economic benefits is probable, related asset is
disclosed.

XIX. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity shares outstanding during the period is adjusted
for events including a bonus issue.

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

Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares
would decrease earnings per share or increase loss per share from continuing operations.

XX. Taxes
Income taxes

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

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

Deferred tax

Deferred tax liabilities are generally recognised in full for all taxable temporary differences. Deferred tax assets
are recognised to the extent that it is probable that the underlying tax loss, unused tax credits (Minimum
alternate tax credit entitlement) or deductible temporary difference will be utilised against future taxable
income. This is assessed based on the Company's forecast of future operating results, adjusted for significant
non-taxable income and expenses and specific limits on the use of any unused tax loss or credit. Unrecognised
deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become
probable that future taxable profits will allow deferred tax asset to be recovered.

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

either in other comprehensive income or directly in equity. Deferred tax assets are only recognised to the
extent that it is probable that future taxable profits will be available against which the temporary differences
can be utilised.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in
other comprehensive income or in equity).

Minimum Alternate Tax ('MAT') credit is recognized as an asset only when and to the extent it is probable that
the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes
eligible to be recognized as an asset, the said asset is created by way of a credit to the Statement of Profit and
Loss and shown as MAT credit entitlement. The Company reviews the same at each balance sheet date and
writes down the carrying amount of MAT credit entitlement to the extent it is not probable that the Company
will pay normal income tax during the specified period.

While determining the tax provisions, the Company assesses whether each uncertain tax position is to be
considered separately or together with one or more uncertain tax positions depending upon the nature and
circumstances of each uncertain tax position.

XXI. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less.

XXII. Dividend payment

A final dividend, including tax thereon, on equity shares is recorded as a liability on the date of approval by the
shareholders. An interim dividend, including tax thereon, is recorded as a liability on the date of declaration by
the Board of directors.

XXIII. Government grants

Income includes export and other recurring and non-recurring incentives from Government (referred as
"incentives'). Government grants are assistance by government in the form of transfers of resources to an entity
in return for past or future compliance with certain conditions relating to the operating activities of the entity.
The Company is entitled to subsidies from government in respect of manufacturing units located in specified
regions.

Government grants are recognised when there is a reasonable assurance that the Company will comply with
the relevant conditions and the grant will be received. These are recognised in the Statement of Profit and Loss,
either on a systematic basis when the Company recognises, as expenses, the related costs that the grants are
intended to compensate or, immediately if the costs have already been incurred.

Government grants related to assets are deferred and amortised over the useful life of the asset. Government
grants related to income are presented as an offset against the related expenditure, and government grants
that are awarded as incentives with no ongoing performance obligations to the Company are recognised as
income in the period in which the grant is received. Government grant in form of subsidy for unit at Chittoor,
Andhra Pradesh is awarded as incentive to the Company, and is recognised as income in the period in which
the grant is accrued and there is no uncertainty of collection.

XXIV. Segment reporting

In accordance with Ind AS 108, the operating segments used to present segment information are identified on
the basis of internal reports used by the Company's management to allocate resources to the segments and
assess their performance. The Board of Directors is collectively the Company's 'Chief Operating Decision Maker'
or 'CODM' within the meaning of Ind AS 108. The indicators used for internal reporting purposes may evolve in
connection with performance assessment measures put in place.

XXV. Supply chain financing arrangement

Includes amount payable to Micro, Small and Medium Enterprise vendors through TReDS portal for the
financing facility availed by the Company. Under these facilities, the third party shall pay the amount on behalf
of the Company and the Company shall pay the third party on the due date along with interest. As the facility
provided by the third party is within the credit period provided by the customer, the outstanding liability has
been disclosed under 'other financial liabilities'.

XXVI. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised during the period of time that is necessary to complete and prepare the asset for its intended
use. Borrowing costs consist of interest calculated using the effective interest method that an entity incurs
in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent
regarded as an adjustment to the borrowing costs.

All other borrowing costs are charged to the Statement of Profit and Loss as incurred.

XXVII. Use of estimates and judgement

The following are the critical judgments and the key estimates concerning the future that management has
made in the process of applying the Company's accounting policies and that may have the most significant
effect on the amounts recognised in the financial Statements or that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year.

a. Useful lives of depreciable/ amortisable assets: Management reviews its estimate of the useful lives
of depreciable/amortisable assets at each reporting date, based on the expected utility of the assets.
Uncertainties in these estimates relate to technical and economic obsolescence that may change the
utility of assets.

b. Evaluation of indicators for impairment of assets: The evaluation of applicability of indicators of
impairment of assets requires assessment of several external and internal factors which could result in
deterioration of recoverable amount of the assets.

c. Allowance for expected credit loss: The allowance for expected credit loss reflects management's
estimate of losses inherent in its credit portfolio. This allowance is based on Company's estimate of the
losses to be incurred, which derives from past experience with similar receivables, current and historical
past due amounts, dealer termination rates, write-offs and collections, the careful monitoring of portfolio
credit quality and current and projected economic and market conditions. Should the present economic
and financial situation persist or even worsen, there could be a further deterioration in the financial
situation of the Company's debtors compared to that already taken into consideration in calculating the
allowances recognised in the financial statements.

d. Allowance for obsolete and slow-moving inventory: The allowance for obsolete and slow-moving
inventory reflects management's estimate of the expected loss in value and has been determined on the
basis of past experience and historical and expected future trends in the used vehicle market. A worsening
of the economic and financial situation could cause a further deterioration in conditions compared to that
taken into consideration in calculating the allowances recognized in the financial statements.

e. Contingent liabilities: The Company is the subject of legal proceedings and tax issues covering a range
of matters, which are pending in various jurisdictions. Due to the uncertainty inherent in such matters, it
is difficult to predict the final outcome of such matters. The cases and claims against the Company often
raise difficult and complex factual and legal issues, which are subject to many uncertainties, including
but not limited to the facts and circumstances of each particular case and claim, the jurisdiction and the
differences in applicable law. In the normal course of business management consults with legal counsel
and certain other experts on matters related to litigation and taxes. The Company accrues a liability when
it is determined that an adverse outcome is probable, and the amount of the loss can be reasonably
estimated.

f. Provisions: At each balance sheet date basis the management judgment, changes in facts and legal
aspects, the Company assesses the requirement of provisions against the outstanding contingent
liabilities. However, the actual future outcome may be different from this judgement.

g. Leases: Ind AS 116 defines a lease term as the non-cancellable period for which the lessee has the right
to use an underlying asset including optional periods, when an entity is reasonably certain to exercise an
option to extend (or not to terminate) a lease. The Company considers all relevant facts and circumstances
that create an economic incentive for the lessee to exercise the option when determining the lease term.
The option to extend the lease term is included in the lease term, if it is reasonably certain that the lessee
would exercise the option. The Company reassesses the option when significant events or changes in
circumstances occur that are within the control of the lessee.

h. Income Taxes: The Company's tax jurisdiction is India. Significant judgements are involved in estimating
budgeted profits for the purpose of paying advance tax, determining the provision for income taxes,
including amount expected to be paid / recovered for uncertain tax positions (refer note 34). The extent
to which deferred tax assets/minimum alternate tax credit can be recognized is based on management's
assessment of the probability of the future taxable income against which the deferred tax assets/minimum
alternate tax credit can be utilized.

i. Defined benefit obligations (DBO): Management's estimate of the DBO is based on a number of critical
underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of
future salary increases. Variation in these assumptions may significantly impact the DBO amount and the
annual defined benefit expenses.

j. Fair value measurements

Management applies valuation techniques to determine fair value of financial instruments (where active
market quotes are not available) and stock option. This involves developing estimates and assumptions
around volatility, dividend yield which may affect the value of equity shares or stock options.

k. Recoverability of advances/ receivables:

At each balance sheet date, based on historical default rates observed over expected life, the management
assesses the expected credit losses on outstanding receivables and advances.

Description of nature and purpose of each reserve

(a) Security premium

The security premium is the amount paid by shareholder over and above the face value of equity share. Security
premium can be utilised as per the provisions of the Companies Act, 2013.

(b) General reserve

The general reserve is created on transfer of profits from retained earnings. General reserve is created by transfer from
one component of equity to another and is not an item of other comprehensive income.

(c) Retained earnings

Retained earnings represents surplus in Statement of Profit and Loss.

(d) Cash flow hedging reserve

The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair
value of designated portion of hedging instruments entered into for cash flow hedges. Such gains or losses will be
reclassified to statement of profit and loss in the period in which the hedged transaction occurs.

iii. Security disclosure for the outstanding current borrowings for current year ended 31 March 2025 are as
follows:

1. First pari-passu charge over the entire current assets of the Company including raw material, stock-in-trade,
finished goods including stocks-in-transit and those lying in godowns, ports, etc and book debts (both present
and future).

2. Second pari-passu charge on the entire fixed assets of the Company both present and future, excluding vehicles,
situated at Plot No. PA 011-006, Light Engineering Zone, Mahindra World City - SEZ, Jaipur, assets of Survey no.
233/15 to 233/30, Tiruthani Road, Ananthapuram-panchayat, Narasingharayani Pettah - Post Chittoor, Andhra
Pradesh, and Khasra No. 209/1/4/1,209/1/5/1 & 209/1/5/3, situated at Village Jaychand Ka Bans, Village Panchayat
Harsuliya, Tehsil Phagi, Jaipur, Rajasthan

Security disclosure for the outstanding current borrowings for previous year ended 31 March 2024 are as
follows:

1. First pari-passu charge over the entire current assets of the Company including raw material, stock-in-trade,
finished goods including stocks-in-transit and those lying in godowns, ports, etc and book debts (both present
and future).

(i) As at March 31,2025, there is no amount due and outstanding to be transferred to the Investor Education and Protection
Fund (IEPF) by the Company. Unclaimed dividend, if any, shall be transferred to the Investor Education and Protection
Fund (IEPF) as and when they become due.

(ii) Refer note 40 and 41 for disclosure of fair values in respect of financial assets measured at amortised cost and assessment
of expected credit losses.

(iii) Represents channel financing facility availed by the Company, which is a part of the supply chain financing arrangement
with the channel financing partners, for amount payable to MSME vendors through TReDS portal.

(iv) On the basis of confirmation obtained from suppliers who have registered themselves under the Micro, Small and
Medium Enterprise Development Act, 2006 (MSMED Act, 2006) and based on the information available with the
Company, dues disclosed as per the Micro, Small and Medium Enterprise Development Act, 2006 ('MSMED Act, 2006')
at the year end are mentioned below. The same has been relied upon by the auditors.

(b) Sales of Rs. 1,304.26 crores (previous year: Rs. 1,029.99 crores), included in total revenue, which arose from sales of
two of the Company's largest customers. No other single customers contributed 10% or more to the Company's
revenue in current year ended March 31,2025 and previous year ended March 31,2024.

(c) Trade receivables and contract balances

The Company present the right to consideration in exchange for sale of promised products/ service as Trade
receivable in the Financials Statements. A receivable is a right to consideration that is unconditional upon passage
of time. Trade receivable are presented net of impairment (if any) in the Balance Sheet. Further, impairment of bad
and doubtful debts has been created based on expected credit loss method as prescribed in Ind AS 109. Refer
note 41 for details of expected credit loss for trade receivables under simplified approach.

* Certain amounts that are required to be disclosed and do not appear due to rounding-off are expressed as "0.00”.

# Investment in subsidiaries (including partnership firms and LLP) are measured at cost as per Ind AS 27, 'Separate
financial statements' and hence, not presented here. Further, investment in mutual funds are measured at fair value
through profit or loss and investment in bonds at amortised cost.

B Fair values hierarchy

The fair value of financial instruments as referred to in note (A) above has been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in
active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level
3 measurements).

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs;
and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in
whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices
from observable current market transactions in the same instrument nor are they based on available market data.

The management has opted for designating the derivative assets and derivative liabilities to classify as fair value through
profit or loss as the respective gain/(loss) on the original asset/liabitiy is routed through the statement of profit and loss,
therefore, the management intends to classify these derivate assets and derivative liabilities through profit or loss.

Valuation process and technique used to determine fair value

i. The fair value of investments in quoted equity shares and mutual funds (level 1) is based on the current bid price
of respective investment as at the balance sheet date. The mutual funds are valued using the closing NAV based
on the statements received from investee parties.

ii. The Company enters into commodity contracts with financial institutions for hedging price risk of lead arising
from its import and export. Fair values of such contracts (level 2) are determined based on observable rates of
the commodity for similar contracts for the remaining maturity on the balance sheet date. The valuation of such
instruments is carried out through the rates (marked to market) confirmed by the respective banks as at the
balance sheet date.

iii. There are no financial instruments measured at fair value through other comprehensive income.

B.2 Fair value of instruments measured at amortised cost

Fair value of instruments measured at amortised cost for which fair value is disclosed is as follows, these fair values are

calculated using Level 3 inputs:

* Certain amounts that are required to be disclosed and do not appear due to rounding-off are expressed as "0.00”.

The management assessed that fair values of current financial assets, cash and cash equivalents, other bank balances,
trade receivables, short term borrowings, loans, trade payables, current lease liabilities and other current financial
liabilities approximate their respective carrying amounts largely due to the short-term maturities of these instruments.
The fair value of the financial assets and liabilities is disclosed at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and
assumptions were used to estimate the fair values:

i. Non-current loans and non-current financial liabilities are evaluated by the Company based on parameters such
as interest rates, individual creditworthiness of the counterparty/borrower and other market risk factors.

ii. The fair values of the Company's fixed interest-bearing liabilities, loans and receivables are determined by applying
discounted cash flows ('DCF') method, using discount rate that reflects the issuer's borrowing rate as at the end of
the reporting period. The own non-performance risk as at March 31,2025 was assessed to be insignificant.

iii. All the other long term borrowing/ short term borrowing facilities availed by the Company are variable rate
facilities, and are subject to changes in underlying interest rate indices. Further, the credit spread on these facilities
are subject to change with changes in Company's creditworthiness. The management believes that the current
rate of interest on these loans are in close approximation from market rates applicable to the Company. Therefore,
the management estimates that the fair value of these borrowings are approximate to their respective carrying
values.

The Company's risk management is carried out by a central treasury department (of the Company) under policies approved
by the board of directors. The board of directors provides written principles for overall risk management, as well as policies
covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and investment of excess liquidity.

I. Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to
credit risk is influenced mainly by loans, cash and cash equivalents, trade receivables, derivative financial instruments
and other financial assets measured at amortised cost. The Company continuously monitors defaults of customers and
other counterparties and incorporates this information into its credit risk controls.

(a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed
for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to
each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

(i) Low credit risk

(ii) Moderate credit risk

(iii) High credit risk

Based on business environment in which the Company operates, a default on a financial asset is considered when
the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults
are based on actual credit loss experience and considering differences between current and historical economic
conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a
litigation decided against the Company. The Company continues to engage with parties whose balances are written
off and attempts to enforce repayment. Recoveries made are recognised in Statement of Profit and Loss.

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks
and diversifying bank deposits and accounts in different banks across the country.

Derivative financial instruments

Derivative financial instruments are considered to have low credit risk since the contracts are with reputable financial
institutions.

Trade receivables

Trade receivables are generally unsecured and non-interest bearing. There is no significant concentration of credit
risk. The Company's credit risk management policy in relation to trade receivables involves periodically assessing the
financial reliability of customers, taking into account their financial position, past experience and other factors. The
utilization of credit limit is regularly monitored. The Company's credit risk is mainly confined to the risk of customers
defaulting against credit sales made. Outstanding trade receivables are regularly monitored by credit monitoring
Company. The Company has also taken advances from its customers, which mitigate the credit risk to an extent. In
respect of trade receivables, the Company recognises an impairment for lifetime expected credit losses after evaluating
the individual probabilities of default of its customers which are duly based on the inputs received from the marketing
teams of the Company.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans to others, loans to employees, security deposits,
investment in bonds and others. Credit risk related to these other financial assets is managed by monitoring the
recoverability of such amounts continuously, while at the same time internal control system are in place ensure the
amounts are within defined limits.

(b) Expected credit losses for financial assets

(i) Financial assets (other than trade receivables)

Company provides for expected credit losses on financial assets other than trade receivables by assessing individual
financial instruments for expectation of any credit losses.

For cash & cash equivalents, other bank balances and derivative financial instruments - Since the Company
deals with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, derivative
financial instruments, other bank balances and bank deposits is evaluated as very low.

For security deposits paid - Credit risk is considered low because the Company is in possession of the underlying
asset.

For other financial assets - Credit risk is evaluated based on Company knowledge of the credit worthiness of those
parties and loss allowance is measured. For such financial assets, the Company policy is to provide for 6 month expected
credit losses upon initial recognition and provide for lifetime expected credit losses upon significant increase in credit
risk.

(b) Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their contractual
maturities.

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:

III. Market risk

(a) Foreign currency risk

The Company is exposed to foreign exchange risk in the normal course of its business. Multiple currency exposures
arise from commercial transactions like sales, purchases, borrowings, recognized financial assets and liabilities
(monetary items). Certain transactions of the Company act as natural hedge as a portion of both assets and liabilities
are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company
adapts the policy of selective hedging based on risk perception of management. Foreign exchange hedging contracts
are carried at fair value. The Company's exposure to foreign currency changes for all other currencies which are not
stated below is not material. Foreign currency exposures that are not hedged by derivative instruments outstanding as
on the balance sheet date are as under:

Foreign exchange derivative contracts

The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its commercial
business or financing activities. The Company's Corporate Treasury team manages its foreign currency risk by hedging
transactions that are expected to occur within 12 to 15 months for hedges of forecasted sales, purchases and capital
expenditures. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of
those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover
the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of
the resulting receivable or payable that is denominated in the foreign currency. All identified exposures are managed
as per the policy duly approved by the Board of Directors.

(c) Price risk
Exposure

The Company exposure to price risk arises from investments held and classified in the balance sheet either as fair value
through other comprehensive income or at fair value through profit or loss. To manage the price risk arising from
investments, the Company diversifies its portfolio of assets. There are investments in mutual funds which are measured
at fair value through profit and loss.

For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves
attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital
is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize
shareholder value.

As at March 31,2025, the Company is not subject to any externally imposed capital requirements. In order to maintain or
achieve an optimal capital structure, the Company allocates its capital for distribution as dividend or re-investment into
business based on its long term financial plans. The Company's management reviews the capital structure of the Company
on a periodic basis. As part of review, the management considers the cost of capital and risk associated with each class
of capital. The Company also evaluates its gearing measures like Debt Equity Ratio, Debt Service Coverage Ratio, Interest
Service Coverage Ratio, Debt to EBIDTA Ratio to arrive at an appropriate level of debt and accordingly evolve its capital
structure. Gearing ratio has changed significantly on account of payment of borrowings due to utilization of fund from
qualified institutional placement ("QIP").

Earned leaves - Long term leaves includes earned leaves. These have been provided on accrual basis, based on year
end actuarial valuation.

(ii) Defined benefits plans

The employees' gratuity fund scheme managed by a trust namely 'Gravita India Limited Employees Gratuity Trust' is
defined benefit plan. The gratuity plan provides for a lump sum payment to the employees at the time of separation
from the service on completion of vested year of employment i.e. five years. The liability of gratuity plan is determined
based on actuarial valuation as at the end of each financial year using the Projected Unit Credit Method, which
recognises each period of service as giving rise to additional unit of employees benefit entitlement and measures each
unit separately to build up the final obligation.

These plans typically expose the Company to actuarial risks such as investment risk, salary risk, interest rate risk and
longevity risk.

Investment Risk - The probability or likelihood of occurrence of losses relative to the expected return on any particular
investment.

Salary Risk - The present value of defined benefit plan is calculated with the assumption of salary increase rate of plan
participants in future. Deviation in rate of increase in salary in future for plan participants from the rate of increase in
salary used to determine the present value of obligation will have a bearing on the plan's liability.

Interest Risk - The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an
increase in the ultimate cost of providing the above benefit and will thus result in an increase in value of the liability.

Longevity Risk - The present value of defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan
participants will increase the plans liability.

During the previous year ended March 31,2024, 380,500 shares of face value of Rs. 2 each of the Company, held by the
Gravita Employee Welfare Trust ('the Trust'), had been sold in the open market and the proceeds from the sale of such shares,
net of liability payable by the Trust, would be utilised for the welfare of the employees of the Group as per the requirement
of the Trust Deed. The Company had no legal right or control towards the utilization of funds as accumulated in the Trust
by sale of its investment in the open market. The Trust being an independent entity has sole responsibility / obligation to
utilize the fund for the welfare of beneficiaries (employees) as per the terms of the trust deed. Ind AS 32 'Financial Statements
- Presentation' requires that no gain or loss shall be recognised in profit or loss on the purchases, sale, issue or cancellation
of treasury shares held by the entity or by other entities of the consolidated group. Any gain or loss on such treasury shares
shall be recognised directly in other equity. Since, the shares of the Company are held by the Trust which is an independent
entity, the said Ind AS 32 is not applicable to the Company. Ind AS 102 'Share-based payment' requires an entity to reflect in
its profit or loss and financial position, the effects of share-based payment transactions, including expenses associated with
the transactions in which share options are granted to employees.

During the previous year ended March 31,2024, the Gravita Stock Appreciation Rights Scheme, 2017 (the 'Scheme') had
been terminated. Post termination of the Scheme, the Trust has no obligation to make payment under any share- based
payment scheme. The Trust will act independently and make distribution/usage of fund as per the purpose defined in the
trust deed. For the aforesaid reason, the management of the Company is of the view that distribution/utilisation for the
employee benefits, equivalent to appreciation, net of liability of Trust, if any, received by the Trust by selling the investment
in the open market amounting to Rs. 20.67 crores, would not be recognized in Company's standalone financial results, as the
transaction was not covered under Ind AS 102. The Company believes that all the appreciation on sale of such shares by the
Trust pertains to the employees of the Company and will be utilised for the welfare of the employees by the Trust and there
would not be any impact on the standalone financial statements for the previous year ended March 31,2024. Based on the
independent legal opinion and its assessment, management of the Company is of the view that accounting treatment had
been done appropriately in the standalone financial statements for the previous year ended March 31,2024.

The Employee Welfare Trust has sold 101 shares of the Company in the open market during the year ended March 31,
2025. The statutory auditors of the Company have modified their audit report on account of the effects of this matter
on the comparability of current period figures with the corresponding figures of employee benefit expenses and total
comprehensive income for the year ended March 31, 2024 presented.

(iii) During the previous year, the Company has provided corporate guarantee amounting to Rs. 327.91 crores for loan
obtained by the subsidiary company, for the entire tenure of the loan. Refer note 35 for disclosure as per Section 186(4)
of the Companies Act, 2013. The outstanding amount of loan as at March 31,2025 is Rs. 273.97 crores.

(iv) During the previous year, the Company has invoiced an amount of Rs 19.62 crores to its subsidiary company against
corporate guarantee provided for loan obtained by the subsidiary company, for the entire tenure of the loan. The
entire amount has been received during the previous year. During the current year, out of the entire amount received,
income amounting to Rs. 3.92 crores (previous year FY 23-24 Rs.3.59 Crores) has been recognised in the statement of
profit and loss and the remaining amount of Rs. 12.11 crores has been classified as deferred revenue in respect of the
said corporate guarantee.

Note - 47 | Compliance with Foreign Exchange Management Act, 1999 |

Trade payables as at March 31,2025 include amounts aggregating to Rs 144.81 crores respectively, situated outside India.
Out of this aforesaid, trade payables amounting to Rs. 6.20 crores are pending for more than 180 days. These balances are
under settlement with AD Bank under the regulations of Reserve Bank of India. Based on the information available till date,
the management does not expect any adverse consequences to the Company.

Note - 48

During the financial year ended March 31,2025, the Company was subject to a scam, wherein a person impersonating as
a legitimate vendor used sophisticated deceptive communication and digital attacks to divert funds amounting to Rs. 2.43
crores into a fraudulent bank account. The matter was reported to the Cyber Crime Cell and a FIR had been lodged. The
Company has carried out internal investigation and also taken inputs from third party service providers, initiated recovery
measures and taken corrective actions including employee awareness on cybersecurity risks to prevent such incidents in the
future. On the basis of the internal investigation, the management of the Company has ruled out involvement of any officer
or employee of the Company. The Company has also provided for such amounts in its standalone financial statements for
the year ended March 31, 2025.

Note - 49

As per transfer pricing legislation under section 92 - 92F of the Income -tax Act, 1961, the Company is required to use certain
specific methods in computing arm's length price of international transactions with associated enterprises and maintain
documentation in this respect. Since law requires existence of such information and documentation to be contemporanious
in nature, the Company has updated the Transfer Pricing study to ensure that the transactions with associate enterprises
undertaken are at "Arms length basis” Based on the preliminary study and assessment for the current year, the management
is of the view that the same would not have a material impact on these standalone financial statements.

Note - 50

Disclosure relating to provisions recorded in these standalone financial statements pursuant to the Ind AS 37 - Provisions,
Contingent Liabilities and Contingent Assets

Note - 51

Segment information has been provided under the material accounting policies and other explanatory information of the
consolidated financial statement for the year ended March 31,2025 as per para 4 of Indian Accounting Standard (Ind AS) 108
"Operating Segments”, specified under Section 133 of the Companies Act, 2013.

Note - 52

In the opinion of Board of Directors, current assets have a value on realisation in the ordinary course of business at least
equal to the amount at which they are stated in the balance sheet and provisions for all known/ expected liabilities have
been made.

Note - 53

During the current year ended March 31,2025, the company did QIP of 47,70,537 Equity Shares at Rs. 2,096.20 each (face
value of Rs. 2 each at a premium of Rs. 2,094.20 per share) aggregating to Rs. 1,000 crores for certain purposes as stated in
the Placement Document. Issue expenses of 18.40 crores have been adjusted with the securities premium account. Out of
the above QIP proceeds, Rs 726.64 crores have been utilised for the repayment of borrowings, working capital requirement
, payment of share issue expenses and general corporate purpose and the balance has been temporarily invested pending
utilisation as on March 31,2025.

Note - 54 | Other statutory information_|

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the
rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institutions or other lenders.

(iii) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of the Companies Act, 1956.

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

(v) The Company has complied with number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

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

(vii) The Company has not traded or invested in crypto currency or virtual currency during the current and the preceding
financial year.

(viii) 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:

- 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

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ix) 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:

- 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

- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(x) The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1)
of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring
companies, which uses accounting software for maintaining its books of account, shall use only such accounting
software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change
made in the books of account along with the date when such changes were made and ensuring that the audit trail
cannot be disabled.

The Company, in respect of the financial year commencing on 1 April 2024, has used an accounting software for
maintaining books of accounts. The Accounting software has the feature of recording audit trail (edit log) and the
same has been operated throughout the year for all relevant transactions recorded in the software at application level.
However, the Company had not enabled the feature of recording audit trail (edit log) at the database level for the said
accounting software to log any direct data changes.

Further, the Company, has used accounting software for maintenance of employee records which is operated by
a third-party software service provider. The audit trail (edit log) was enabled and operated throughout the year at
application level for such software. The Company has obtained the 'Independent Service Auditor's Assurance Report
on the Description of Controls, their Design and Operating Effectiveness' (Type 2 report' issued in accordance with ISAE
3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information) for the year
commencing on 1 April 2024. However, the report of the service auditor did not demonstrate whether the audit trail
feature specifically captures the details of what data was changed at the database level.

Note - 55

The figures of previous year have been regrouped/ reclassed to make them comparative with those of current year wherever
considered necessary. The impact of such reclassification/regrouping is not material to the standalone financial statements.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors

Chartered Accountants Gravita India Limited

Firm's Registration No: 001076N/N500013

Manish Agrawal Rajat Agrawal Yogesh Malhotra

Partner Chairman & Managing Director Whole Time Director & CEO

Membership No: 507000 DIN: 00855284 DIN: 05332393

Sunil Kansal Nitin Gupta

Whole Time Director & CFO Company Secretary

DIN: 09208705 Membership No: FCS 9984

Date : May 02, 2025 Date : May 02, 2025

Place : New Delhi Place : Jaipur