(i) Provision for indirect tax and other legal matters includes provision for water charges in the State of Maharashtra. The
Company has filed petition before the High Court of Bombay, challenging multiple demands raised by Water Resources
Department, State of Maharashtra, levying additional water charges and an interim relief against any coercive steps has
been received. The Company has received further demands from the said Department levying water charges at a higher rate
along with penalties for the period from November 2018 to March 2025. Based on a legal opinion obtained, Management
has determined that the provision recorded in the books represents probable cash outflows on account of additional water
charges. Any further cash outflows in addition to the provision amount on account of this matter are considered remote.

(ii) Provision is made for probable cash outflow arising out of pending or potential indirect tax disputes / litigations. It is not
practicable for the Company to estimate the timing of the cash outflows, if any, in respect of the above, pending resolution of
respective proceedings. Refer note 9(a) for payments made under protest in respect of indirect tax and other legal matters.

(iii) The entire amount of provision for compensated absences is presented as current, since the Company does not have an
unconditional right to defer settlement of these obligations beyond a period of 12 months from the Standalone Balance Sheet
date. However, based on past experience, the Company does not expect all employees to avail the full amount of accrued
leave or require payment within the next 12 months. The amount of compensated absences not expected to be settled within
next 12 months amounts to ' 31 crores (2024: ' 26 crores).

20 Revenue from operations

Revenue comprises revenue from contracts with customers for sale of goods and income from brand franchisee royalties receivable.
Revenue from sale of goods is inclusive of excise duties, as applicable, and is net of returns, trade allowances, rebates, value added
taxes and such amounts collected on behalf of third parties.

Revenue is recognised as and when performance obligations are satisfied by transferring goods or services to the customers as below:

a. Revenue from sale of products:

Revenue is recognised on transfer of control, being on dispatch of goods or upon delivery to customer, in accordance with
the terms of sale.

b. Revenue from manufacture and sale of products from Tie-up manufacturing arrangements:

The Company has entered into arrangements with Tie-up Manufacturing Units (TMUs), where-in TMUs manufacture and sell
beverage alcohol on behalf of the Company. Under such arrangements, the Company has exposure to significant risks and
rewards in such arrangements i.e. it has the primary responsibility for providing goods to the customer, has pricing latitude
and is also exposed to inventory and credit risks. The Company is considered to be a principal in such arrangements with
TMUs. Accordingly, the transactions of the TMUs under such arrangements have been recorded as gross revenue, excise duty
and expenses as if they were transactions of the Company. The Company presents inventory held by the TMUs under such
arrangements as its own inventory. The net receivables from/ payable to TMUs are recognised under other financial assets/ other
financial liabilities respectively.

c. Income from brand franchise arrangements:

Revenue in respect of fixed income brand franchise arrangements is recognised proportionately in each period. Income
from variable franchise arrangements is recognised based on the terms of the respective contracts upon sale of products by
the franchisees.

(A) Credit risk

Credit risk management
Trade receivables:

The Company's credit policy provides guidance to keep the risk of credit sales within an acceptable level. The Company's
management monitors (at customer group and non-group level) and reviews credit limits, overdue trade receivables, provisioning
and write-off of credit impaired receivables.

Trade receivables are unsecured and are derived from revenues earned from two main classes of customers, receivables from
sales to government corporations/ government owned entities and receivables from sales to private third parties.

Receivables from government corporations/ government owned entities amounted to ' 2,311 crores (60%) [2024: ' 1,998 crores
(61%)] and receivables from private customers amounted to ' 1,523 crores (40%) [2024: ' 1,302 crores (39%)] respectively, of total
trade receivables, on the reporting date.

The Company determines allowances for expected credit losses separately for different categories of customers using aged based
provision matrix.

The Company recognises allowances using expected credit loss method on other financial assets. Such allowances are measured
considering either 12-month expected credit loss approach or life time credit loss approach, based on management's assessment of
credit risk. Assets are written-off where there is no reasonable expectation of recovery. Where the loans or receivables are written-off
the Company continues to engage in enforcement activity to attempt to recover the amounts due. Where recoveries are made, these
are recognised in profit or loss.

(*) Loans denominated in foreign currency to subsidiaries are credit impaired. Exchange differences arising on restatement of such loans
at year-end exchange rates, are offset against an equivalent restatement of loss allowances at year end exchange rates, and hence
there is no impact on the Standalone Statement of Profit and Loss, on this account.

The Company has credit risk from loans provided to subsidiaries and joint ventures:

Ý Loans to overseas subsidiaries- These loans are classified as credit impaired and have been fully provided for as these subsidiaries
are non-operative and do not have the resources to repay the loans.

Ý Loans to domestic subsidiary- There are no loans receivable from the domestic subsidiary as at March 31, 2025

Management has assessed credit risk for balances with banks, investments in mutual funds and other financial assets as at year ended
March 31, 2025. Basis this assessment management has determined that no provision for expected credit loss is required, other than
those already provided in these standalone financial statements.

(B) Liquidity risk

The company monitors daily and monthly rolling forecasts of the liquidity position and cash and cash equivalents on the basis of
expected cash flows. Generally, any short-term surplus cash generated, over and above the amount required for working capital
management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any
excess is invested in bank deposits, treasury bills and debt mutual funds to optimise the cash returns on investments guided by the
tenets of safety, liquidity and returns.

(C) Interest rate risk

Interest rate risk arises due to uncertainties about the future market interest rate on investments.

Treasury activities, focuses on managing investments in debt instruments, are centralised and administered under a set of
approved policies and procedures guided by the tenets of safety, liquidity and returns. This ensures that investments are made
within acceptable risk parameters after due evaluation. The Company's investments are predominantly held in term deposits
and mutual funds.

The Company invests in debt mutual fund schemes of leading fund houses, such investments are susceptible to market price risks
that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the
relatively short tenure of underlying portfolio of the mutual fund schemes in which the Company has invested, such price risk is
not significant.

In addition to debt mutual funds, the Company invests in term deposits with banks. The term deposits carry a fixed-coupon rate
and majority of the term deposits are for a term not exceeding 12-months from the Balance Sheet date. Accordingly, interest rate
risk is not significant.

(D) Foreign exchange risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions and balances, primarily with respect
to the USD and GBP. Foreign exchange risk arises from future commercial transactions and monetary assets and liabilities
denominated in a currency that is not the Company's functional currency ('). The risk is measured through a forecast of highly
probable foreign currency cash flows.

(E) Price risk

Mutual funds: Company reviews its investments at regular intervals in order to minimize price risk arising from investments in
Mutual funds. In accordance with the investment policy the Company invests in the liquid, overnight and money market mutual
fund schemes which are not subject to significant changes in price.

32 Capital management

a. Risk management

The Company's objectives when managing capital is to:

a) have a balanced financial profile from short term (1 year) to mid-term (3 years) for sustainable leverage, providing;

Ý Headroom for future growth / expansion

Ý Financial flexibility in case of adverse business cycles

b) ensure the capital structure is at competitive advantage when compared to peers and other sector players through:

Ý Diversification of funding sources to manage liquidity and rollover risk

Ý Financial flexibility in case of adverse business cycles

33 Assets pledged as security

(a) I n respect of secured loans from banks ('lenders') obtained and repaid during earlier years, the Company has in most cases

obtained no objection letters from lenders for the release of the hypothecation/ mortgage and have filed the necessary forms
with Ministry of Corporate Affairs ("MCA”) to reflect the release of such charge in MCA's records. In a few remaining cases, the
Company is in the process of securing no objection letters from the lenders. As there are no secured loans outstanding as at March
31, 2025, no assets have been shown as hypothecated/ mortgaged as at March 31, 2025.

34 Share based payments

Diageo Plc. share based plans

Diageo Plc. (Ultimate holding company) runs various equity settled share based plans such as Discretionary Incentive Plan (DIP),
Performance Share Plan (PSP), and Senior Executive Share Option Plan (SESOP) for qualifying employees of the Company. Vesting
under these plans is subject to conditions such as continuity of employment and achievement of certain other performance factors.

The charge for the year in respect of such plans included in employee benefits expense amounted to ' 5 crores (2024: ' 4 crores).

Share appreciation rights (SAR)

The India SAR Plan creates an opportunity to link the employees' reward to Company's share price performance. Under this plan,
Company grants stock appreciation rights (based on USL share price on the date of grant) to qualifying employees. Cash pay-out
equivalent to the value of the Company's share will be made at the end of three years from the date of grant (the vesting period).

Fair value hierarchy:

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a)
recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial
statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its
financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows below:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

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

Fair value of investment in mutual funds are classified as Level 1.

Management has determined their carrying amounts of current financial assets and financial liabilities i.e., trade receivables, current
loans, bank deposits, cash and cash equivalents, receivables from TMUs, trade payables and other financial liabilities (excluding lease
liabilities) to be a fair approximation of their fair values on account of their short term nature.

Management has determined that the fair values of other non current financial assets i.e., government grants, receivable from TMUs,
security deposits and other receivables are not materially different from their carrying amounts March 31, 2025.

36 Related party disclosures

(a) Names of related parties and description of relationship

(i) Ultimate holding, holding and intermediate holding entities

Ý Diageo plc United Kingdom (Ultimate Holding company)

Ý Tanqueray Gordon & Company Ltd., United Kingdom (Holding Company of Diageo Relay B.V.)

Ý Diageo Relay B.V., Netherlands (Holding Company)

38 (a) Defined contribution plans
Provident Fund:

Provident Fund covers all eligible employees of the Company. Both the employees and the Company make monthly contributions to the
Provident Fund as per regulations to a fund administered by government authority, equal to a specified percentage of the employees' salary.
The obligation of the Company is limited to the extent of contributions made on a monthly basis.

Employee Pension Scheme:

Employee Pension Scheme covers all eligible employees of the Company. A portion of the Company's contribution in respect of government
administered Provident Fund and Company administered Provident Fund Plan is made to the government administered Employee Pension
Scheme, as per regulations. The obligation of the Company is limited to the extent of contributions made on a monthly basis.

Employees' State Insurance:

Employees' State Insurance is a state plan which is applicable to those employees of the Company whose salaries do not exceed a specified
amount. The contributions are made based on a percentage of salary to a fund administered by government authority. The obligation of the
Company is limited to the extent of contributions made on a monthly basis.

Superannuation Fund:

Certain executive staff of the Company participate in United Spirits Superannuation fund (the 'Fund'), which is a voluntary contribution plan.
The Company has no further obligations to the plan beyond its monthly contributions to the Fund, the corpus of which is administered by a
Trust and is invested in insurance products.

National Pension Scheme:

Certain executive staff of the Company participate in National Pension Scheme, which is a voluntary contribution plan. The Company has
no further obligations to the plan beyond its monthly contributions to a fund administered by a pension fund manager appointed by Pension
Fund Regulatory and Development Authority.

38(b) Defined benefit plans
Gratuity:

The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan”), to its employees. The Gratuity Plan provides a lump sum
payment to vested employees, at retirement or termination of employment or upon resignation from service, of an amount based on the
respective employee's last drawn salary and years of employment with the Company. Vesting occurs only upon completion of five years of
service, except in case of death or permanent disability. The funds are managed by a trust administered by the Company.

Pension plan:

The Company operates an unfunded defined benefit pension plan for certain retired employees of an erstwhile entity which has merged
into the Company in earlier years. This plan provides benefits to members in the form of a guaranteed level of pension payable for life post
retirement or termination of employment. The level of benefits provided depends on their salary in the final year leading up to retirement,
or termination.

Provident fund plan:

The executive staff and certain permanent workmen received benefits from the provident fund plan, which was operating as a defined benefit
plan until part of the prior year. Both the employees and the Company made monthly contributions to such provident fund plan equal to a
specified percentage of the employee's salary. A portion of Company's contribution is transferred to Employee Pension Scheme, which is a
defined contribution plan and the remaining amount is transferred to provident fund plan. The defined plan was discontinued during the year
ended March 31, 2024 and the balance contribution was transferred to Employees Provident Fund Organisation(EPFO).

The defined benefit provident fund contributions were made to McDowell & Company Limited Employees Provident Fund Trust which was set
up and managed by the Company. The Trust invested in specific designated instruments as permitted by Indian laws. The Company had an
obligation to make good the shortfall if any, being the difference between the statutory rate prescribed by the Government and the rate of
interest declared by the Trust. The Company also had an obligation to fund any shortfall in the fair value of plan assets as compared with the
defined benefit obligation. The actuarial risk and investment risk fall, in substance, on the Company. During the prior year, the Company had
transferred its' obligation for provident fund from the trust to Employees Provident Fund Organisation (EPFO). Accordingly, the provident fund
plan had subsequently been accounted as a defined contribution plan.

39 Long term contracts, including derivative contracts

The Company does not have any derivative contracts as at March 31, 2025. The Company has a process whereby periodically all long
term contracts are assessed for material foreseeable losses. No provision for material foreseeable losses is considered necessary based
on the review of such contracts as at year end.

40 Historical matters

40(a) Additional Inquiry and other regulatory matters

As disclosed in each of the annual financial statements commencing from year ended March 31, 2014, upon completion in April 2015
of an inquiry into past improper transactions ('Initial Inquiry') which identified references to certain additional parties and certain
additional matters, the then MD & CEO, pursuant to the direction of the Board of Directors, carried out an additional inquiry into past
improper transactions ('Additional Inquiry') which was completed in July 2016. The Additional Inquiry prima facie identified transactions
indicating actual and potential diversion of funds from the Company and its Indian and overseas subsidiaries to, in most cases, Indian
and overseas entities that appeared to be affiliated or associated with the Company's former non-executive chairman, Dr. Vijay Mallya,
and other potentially improper transactions. All amounts identified in the Additional Inquiry have been provided for or expensed in the
financial statements of the Company or its subsidiaries in the respective prior periods. The Company has filed recovery suits against
relevant parties and individuals identified pursuant to the Additional Inquiry. Additionally, the Company has also filed a suit for recovery
of excess managerial remuneration amounting to ' 13 crores paid to the former Executive Director and CFO (ED & CFO) for the year
ended March 31, 2015. The receivable recorded for excess managerial remuneration has been fully provided for.

As disclosed in each of the annual financial statements commencing from the year ended March 31, 2014, in relation to the above-
mentioned Initial Inquiry and Additional Inquiry and the matters arising out of the settlement agreement dated February 25, 2016
entered into by the Company with Dr. Vijay Mallya pursuant to which, inter alia, the Company and Dr. Vijay Mallya agreed a mutual
release in relation to matters arising out of the Initial Inquiry ('Agreement'), the Company received letters and notices from the Securities
Exchange Board of India ('SEBI') during the year ended March 31, 2016 to which the Company has responded. There has been no
further communication with SEBI on these matters since the Company's response in October 2017.

As disclosed in each of the annual financial statements commencing from the year ended March 31, 2016, in connection with the
investigations carried out by the Directorate of Enforcement ('ED') under the Foreign Exchange Management Act, 1999 and Prevention
of Money Laundering Act, 2002, the Company received letters and notices from ED during the year ended March 31, 2016, to which the
Company responded. During the year ended March 31, 2022, the Company received a notice from the ED requesting for information,
which the Company has provided. The Company has also received queries from its authorized dealer banks, based on queries from
the Reserve Bank of India ('RBI'), with regard to remittances made in the prior years by the Company to its overseas subsidiaries, past
acquisitions and Annual Performance Reports ('APR') for prior years, to which the Company has responded and is in process of filing the
required forms.

As disclosed in each of the annual financial statements commencing from the year ended March 31, 2019, with the objective of divesting
its non-core assets, the Company reviewed its subsidiaries' operations, obligations, and compliances, and recommended a plan for
rationalisation through sale, liquidation or merger ("Rationalisation Process”). After receiving approval from the Board, the Company
has been taking steps to implement this plan. The Rationalisation Process for the existing subsidiaries is subject to regulatory and other
approvals (in India and overseas). If any historical non-compliances are established during the Rationalisation Process, the Company
will consult with its legal advisors, and address any such issues including, if necessary, considering filing appropriate compounding
applications with the relevant authorities. At this stage, it is not possible for the management to estimate the financial impact on the
Company, if any, arising out of potential non-compliances with applicable laws, if established.

40(b) Notices from the Ministry of Corporate Affairs

As disclosed in each of the annual financial statements commencing from year ended March 31, 2016, and pursuant to the inspection
conducted by Ministry of Corporate Affairs ('MCA') during the year ended March 31, 2016, under Section 206(5) of the Companies Act,
2013, MCA issued show cause notices alleging violation of certain provisions of the Companies Act, 1956 and Companies Act, 2013, to
which the Company had responded. During the year ended March 31, 2025, the Company has paid compounding fees and disposed
off the compounding applications with the Registrar of Companies (RoC). As at year ended March 31, 2025, the Company is awaiting
response from the RoC on one show cause notice wherein the Company had requested the RoC to discontinue further proceedings
based on expert legal advice received. The penalty and compounding fee arising out of adjudication application are not material. The
management is of the view that in line with the past adjudication orders, the financial impact arising out of adjudication of the residual
matters will not be material to the Company's financial statements.

40(c) Loan to United Breweries (Holdings) Limited ('UBHL')

As disclosed in each of the annual financial statements commencing from year ended March 31, 2015, the Company had pre-existing
loans/ deposits/ advances/ accrued interest that were due to the Company and its subsidiaries from UBHL and its subsidiaries
aggregating to ' 1,337 crores and that were consolidated into, and recorded as, an unsecured loan through an agreement entered into
between the Company and UBHL on July 3, 2013 ('Loan Agreement'). UBHL defaulted on its obligations to pay any amounts under the
Loan Agreement. The Company had made provision in prior financial years for the entire principal amount due of ' 1,337 crores, and
for the accrued interest of ' 85 crores up to March 31, 2014. The Company has not recognised interest income on said loan after March
31, 2014 which cumulatively amounts to ' 1,343 crores up to March 31, 2025. The Company has cumulatively offset ' 206 crores payable
to UBHL arising under a trademark license agreement against the receivables under the loan.

Since UBHL had defaulted on its obligations under the Loan Agreement, the Company sought redressal of disputes and claims through
arbitration under the terms of the Loan Agreement. In April 2018, the arbitral tribunal passed a final award against the Company. The
reasons for this adverse award were disputed by the Company, and the Company obtained leave from the High Court of Karnataka to
challenge this arbitral award. In July 2018, the Company filed a petition challenging the said award before the Jurisdictional Court in
Bangalore (the "Court”). The Court issued notice pursuant thereto to the Official Liquidator (OL). The Company filed its claim with the OL.
By its judgment dated March 3, 2025, the Court dismissed the Company's challenge to the arbitral award. The Company is challenging
the judgment before the High Court of Karnataka.

Notwithstanding the judgement of the Court and the arbitral award, based on management assessment supported by an external legal
opinion, the Company has offset payable to UBHL under the trademark license agreement against the balance of loan receivable from
UBHL. During the quarter ended June 30, 2023, the OL filed an application before the High Court of Karnataka, seeking avoidance
of setoff by the Company of the above license fee payments and recovery of the entire license fee payable under trademark license

agreement with interest. The Company is contesting the application filed by the OL and filed its statement of objections during the
quarter ended September 30, 2023. The OL subsequently filed its rejoinder during the quarter ended March 31, 2024. Based on the
Management assessment supported by external legal opinions, the Company continues to believe that it has a good case on merits.

The Official Liquidator (UBHL) filed another claim before the High Court of Karnataka, purportedly as loans and advances repayable to
UBHL by the Company, without substantiating the basis of such a claim. USL has denied this purported debt and is contesting this claim.
The Company believes it has a good case on merits.

40(d) Dispute with IDBI Bank Limited

As disclosed in each of the annual financial statements commencing from year ended March 31, 2015, during the year ended March
31, 2014, the Company prepaid a term loan taken from IDBI Bank Limited (the "bank”) in earlier years which was secured by certain
property, plant and equipment and brands of the Company as well as by a pledge of certain shares of the Company held by the USL
Benefit Trust (of which the Company is the sole beneficiary). The bank disputed the prepayment, following which the Company filed a
writ petition ("WP”) in November 2013 before the Hon'ble High Court of Karnataka ('High Court') challenging the actions of the bank.

In February 2016, following the original maturity date of the loan, the Company received a notice from the bank seeking to recall the
loan and demanding a sum of ' 46 crores on account of outstanding principal, accrued interest and other amounts as also further
interest till the settlement date as per the security documents. The Company challenged this notice in the pending writ proceedings
during which the High Court directed that, subject to the Company depositing ' 46 crores with the bank in a suspense account, the
bank should not deal with any of the secured assets including the shares until disposal of the writ petition. The Company deposited the
full amount, and the bank was restrained from dealing with any of the secured assets.

In June 2019, a single judge bench of the High Court dismissed the Company's writ petition, amongst other reasons, on the basis that
the matter involved an issue of breach of contract by the Company and was therefore not maintainable in exercise of the court's writ
jurisdiction. The Company filed an appeal against this order before a division bench of the High Court, which was admitted and interim
protection on the secured assets was reinstated. The writ appeal is pending.

Based on management assessment supported by external legal opinions, the Company continues to believe that it has a strong case
on merits and therefore continues to believe that the aforesaid amount of ' 46 crores remains recoverable from the bank.

In a separate proceeding before the Debt Recovery Tribunal (DRT), Bengaluru, initiated by a consortium of banks (including the bank)
for recovery of loans advanced by the consortium of banks to Kingfisher Airlines Limited (KAL), the bank filed an application for
attachment of the pledged shares belonging to USL Benefit Trust. DRT dismissed the said application of the bank and the bank filed
an appeal against this order before the Debt Recovery Appellate Tribunal ('DRAT'), Chennai in September 2017. The bank's appeal is
pending for final hearing by the DRAT.

Notes:

(a) Income tax matters- Income tax matters primarily relate to exposures under transfer pricing and disallowance of certain expenses that
the Company had claimed as deductions in its Income tax returns.

(b) I ndirect tax matters- The Company has operations across various states in India. The Company has identified possible exposures
relating to local sales tax, entry tax, state excise duty, goods and services tax and central excise duty.

(c) Other civil litigations and claims- Other civil litigations relate to various claims from third parties under dispute which are lying with
various courts/ appellate authorities.

(d) Provident fund- The Company has evaluated the impact of the Supreme Court ("SC”) judgement dated February 28, 2019 in the case
of Regional Provident Fund Commissioner (II) West Bengal v/s Vivekananda Vidyamandir and Others, in relation to non-inclusion of
certain allowances in the definition of "basic wages” of the relevant employees for the purposes of determining contribution to Provident
Fund ("PF”) under the Employees' Provident Fund & Miscellaneous Provisions Act, 1952. There are interpretation issues relating to the said
SC judgement. In the assessment of the management, the aforesaid matter is not likely to have a significant impact on the Company
and accordingly, no provision has been made in the standalone financial statements.

(e) Use of judgement

Management categorizes the matters based on the probability of cash outflow, which require judgement. Management obtains the
views of external consultants where necessary. Based on the assessment, management recognises liability/ provision, or discloses the
matter as a contingent liability, except for matters where the probability of outflow of cash is considered remote. Due to uncertainties
involved in the process, actual outflows may be different from those originally estimated.

The Company may be involved in legal proceedings in respect of which it is not possible to make a reliable estimate of any expected
settlement. In such cases, management has determined that any potential future cash outflows are not likely to be material.

(f) Management is optimistic of a favourable outcome in the above matters based on legal opinions / management assessment. It is
not practicable for the Company to estimate the timing of the cash outflows, if any, in respect of the above, pending resolution of
respective proceedings.

(g) Contingent liabilities above do not include demands with respect to income tax and indirect tax matters wherein the Company has
assessed the probability of outflows of economic benefits to be remote.

The aforesaid amounts are gross of provisions, if any, made based on Management assessment of recoverability. For repayment schedule
and interest related terms, refer note 45(b)

47 Exceptional Items

Supply Agility Programme

During the year ended March 31, 2023, the Board of Directors of the Company approved a multi-year supply chain agility programme. The
programme primarily is directed towards the optimization of the existing manufacturing footprint with an intent to strengthen its end-to-
end supply chain and make it fit for the future. The total implementation cost of the supply chain agility programme, majority of which are
expected to be recognized as exceptional items, will be recorded when the recognition criteria are satisfied.

During the current year ended March 31, 2025, the Company has recongnised an additional provision of ' 65 crores under exceptional items,
towards severance costs relating to a closed unit.

48 Claim from Customer

During the quarter ended December 31, 2023, the Company received a claim from one of its institutional customers, amounting to ' 365
crores inclusive of penalty. The claim pertains to a historical matter regarding differential trade terms and was disclosed in the annual
financial statements for the years ended March 31, 2017, March 31, 2018, March 31, 2021 and March 31, 2022. The impact of the settlement was
accounted for and disclosed in the financial statements for the earlier years. Management's assessment is that the claim from the customer is
unreasoned, arbitrary in nature and is in violation of the principles of natural justice. Management is of the view that the matter was resolved
and settled in full in the prior years. Management has therefore not acknowledged the claim from the customer and has chosen to litigate
as per the legal remedies available. The Company filed petitions under the Arbitration and Conciliation Act, seeking appointment of an
arbitrator, and interim relief against withholding payments. By its order dated August 12, 2024, the Bombay High Court appointed a Sole
Arbitrator to decide on the dispute and transferred the Company's pending petition for interim relief to be decided by the Arbitrator and is
reserved for orders. The parties have filed their respective pleadings, and the arbitration is in progress. Management, supported by external
legal opinion, believes that it has a good case on merits with a high probability of success in realising the withheld payments. Management
has also determined that the receivable from the customer as at March 31, 2025 is good and recoverable.

v. Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

vi. Compliance with number of layers of companies

The Company has ensured compliance with Section 2(87) of the Companies Act, 2013, read with the Companies (Restriction on
Number of Layers) Rules, 2017 ('Layering Rules').

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 funding party (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 to or on behalf of the ultimate beneficiaries.

viii. Undisclosed income

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

ix. Compliance with approved scheme(s) of arrangements

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

x. Loans or advances to specified persons

The Company has not granted any loans or advances to promoters, directors, KMPs and the related parties (as defined under
Companies Act, 2013), either severally or jointly with any other person, except for the parties mentioned under Note 45(b) that are:

(a) Repayable on demand

(b) Without specifying any terms or period of repayment

xi. Details of crypto currency or virtual currency

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

xii. Valuation of property, plant and equipment, right-of-use asset, intangible asset and investment properties

The Company has not revalued its property, plant and equipment, right-of-use assets, intangible assets or investment properties
during the current or previous year.

xiii. Utilisation of borrowings taken from banks and financial institutions for specific purpose

The Company has not availed any borrowings from any banks or financial institutions during the year.

50 Summary of other accounting policies

50.1 Property, plant and equipment

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

The cost of property, plant and equipment which are not ready for their intended use at the balance sheet date, are disclosed as capital
work-in-progress.

Disposals

Gains and losses on disposals are determined by comparing proceeds with the carrying amounts. These are accounted in the Standalone
Statement of Profit and Loss within other income/other expenses, on a net basis.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment
measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

50.2 Intangible assets
Impairment of assets

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested for impairment at least annually, or
more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment
at least annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset's fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows
from other assets or 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.

50.3 Investment in subsidiaries and joint ventures

I nvestments in subsidiaries and joint ventures are carried at cost less accumulated impairment losses, if any. Where an indication of
impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. The
recoverable amount is the higher of an asset's fair value less costs of disposal and value in use.

On disposal of investments in subsidiaries and joint ventures, the difference between net disposal proceeds and the carrying amounts
are recognised in the Standalone Statement of Profit and Loss.

On adoption of Ind AS, Company has measured these investments at cost using the net carrying value as per previous GAAP as at
March 31, 2015. The Company has subsequently measured its investments in equity shares of subsidiaries and joint ventures at cost in
accordance with Ind AS 27.

50.4 Financial instruments
A) Financial assets:

a) Recognition and measurement

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instrument.

On initial recognition, all financial assets except trade receivables are recognised at fair value. Financial assets are subsequently
classified and measured at amortised cost. Financial assets are not reclassified subsequent to their recognition, except if and in
the period the Company changes its business model for managing financial assets.

i) Loans

On initial recognition, loans are measured at fair value. Since the objective is to hold these financial assets to collect
contractual cash flows that are solely payments of principal and interest, these assets are subsequently measured at
amortised cost using the EIR method less impairment, if any.

ii) Other financial assets:

On initial recognition, Other financial assets are measured at fair value, and subsequently, measured at the amortised cost,
less impairment if any. Loss arising from impairment, if any is recognised in the Standalone Statement of Profit and Loss.

b) Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it
transfers the contractual rights to receive the cash flows from the asset.

c) Impairment of financial assets

The Company applies Expected Credit Losses (ECL) model for measurement and recognition of loss allowance on trade receivables
and other financial assets measured at amortised cost.

In case of trade receivables, the Company follows the provision matrix approach (as permitted by Ind AS 109) wherein an amount
equal to lifetime ECL is measured and recognised as loss allowance.

The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is
adjusted for forward-looking estimates. At each reporting date, the historically observed default rates and changes in the forward¬
looking estimates are updated.

I n case of other financial assets, the Company determines if there has been a significant increase in credit risk of the financial
asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL
is measured and recognised as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime
ECL is measured and recognised as loss allowance. Subsequently, if the credit quality of the financial assets improves such that
there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognising impairment loss
allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and the cash
flows that the Company expects to receive (i.e., cash shortfalls), discounted at the original effective interest rate.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset.
12-month ECL are a portion of the lifetime ECL which result from default events that are possible within 12 months from the
reporting date.

ECL are measured in a manner that they reflect probability weighted amounts determined by a range of outcomes, taking into
account the time value of money and other reasonable information available as a result of past events, current conditions and
forecasts of future economic conditions.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/ expense in the Standalone
Statement of Profit and Loss under the head Other expenses as 'Allowance for trade receivable, other financial assets and
other assets (net)'.

d) Income recognition

Dividend income on investments is recognised and accounted for when the right to receive the payment is established, it probable
that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be
measured reliably.

Interest income is accounted for on a time-proportion basis using effective interest rate method taking into account the amounts
invested and the rate of interest, except for financial assets that subsequently become credit impaired.

For credit-impaired financial assets the effective interest rate is applied to the net carrying amount of the financial assets (after
deduction of the loss allowance).

B) Financial liabilities:

a) Recognition and measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. On initial
recognition, financial liabilities are measured at fair value and subsequently measured at amortised cost.

Trade and other payables

I n case of trade and other payables, they are initially recognised at fair value and subsequently, these liabilities are held at
amortised cost, using the effective interest rate method.

Trade and other payables represent liabilities for goods and services provided to the Company prior to the end of financial year
which are unpaid. The amounts are unsecured and are usually paid as per credit period. Trade and other payables are presented
as current liabilities unless payment is not due within 12 months after the reporting period.

b) Derecognition

The Company derecognises a financial liability when the contractual rights to the cash flows from the financial asset expire, or it
transfers the contractual rights to receive the cash flows from the asset.

c) Off-setting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and
settle the liabilities simultaneously. 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.

50.5 Employee benefits

a) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits and performance incentives that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of
employees' services rendered up to the end of the reporting period and are measured at the amounts expected to be paid when
the liabilities are settled. The liabilities are presented under 'Other financial liabilities' in the Standalone Balance Sheet.

b) Post-employment obligations

The Company's defined benefit plans comprise gratuity and pension.

Pension and gratuity obligations

The net liability or asset recognised in the Standalone Balance Sheet in respect of pension and gratuity (defined benefit plans) is
the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined
benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference
to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the
related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair
value of plan assets. This cost is included in employee benefit expense in the Standalone Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in
the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the Standalone
Statement of Changes in Equity and in the Balance Sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in profit or loss as past service cost.

Defined contribution plans

These are plans in which the Company pays pre-defined amounts to funds administered by government authority and the
Company does not have any legal or constructive obligation to pay additional sums. These comprise contributions in respect
of Employees' Provident Fund, Employees' Pension Scheme, Employees' State Insurance, Superannuation fund and National
Pension Scheme. The Company's payments to the defined contribution plans are recognised as employee benefit expenses
when they are due.

(c) Other long-term employee benefit obligations

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the
employees render the related service. They are therefore measured as the present value of expected future payments to be
made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.
The benefits are discounted using the market yields of government bonds at the end of the reporting period that have terms
approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in
actuarial assumptions are recognised in Standalone Statement of Profit and Loss.

(d) Termination benefits

Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or when
an employee accepts voluntary redundancy in exchange for these benefits. The Company recognises termination benefits at
the earlier of the following dates: (a) when the Company can no longer withdraw the offer of those benefits; and (b) when the

Company recognises costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of terminations
benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the
number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period
are discounted to present value.

(e) Share-based payments

Share based compensation benefits are provided to certain grades of employees in the form of United Spirits Limited- Stock
Appreciation Rights Plan, a cash settled scheme, and various equity settled schemes managed by Diageo group.

Stock appreciation rights

Liabilities for the Company's share appreciation rights are recognised as employee benefit expense over the relevant service
period. The liabilities are remeasured to fair value at each reporting date and are presented as current/ non-current provisions in
the Standalone Balance Sheet.

Diageo group share based payment arrangements:

The fair value of equity settled share options based on shares of Diageo plc. (the ultimate holding company) is initially measured at
grant date and is charged to the Standalone Statement of Profit and Loss over the vesting period, which is the period over which all
of the specified vesting conditions are satisfied, and the credit is included in equity. At the end of each period, the Company revises
its estimates of the number of options that are expected to vest based on the non-market and service conditions. It recognises the
impact of revision to original estimate, if any, in profit or loss, with a corresponding adjustment to equity. Once the costs towards
share option plans are cross charged by Diageo group companies, the same is accounted for as a reduction from equity. To
the extent the amount or recharge exceeds the fair value of equity shares on the date of exercise, the same is recognised in the
Standalone Statement of Profit and Loss.

50.6 Income tax

Income tax expense is the tax payable on the current period's taxable income based on the applicable income tax rate adjusted by
changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses, if any.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting
period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation
is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the standalone financial statements. However, deferred tax liabilities are not recognised
if they arise from initial recognition of goodwill. Deferred income tax is determined using tax rates (and laws) that have been enacted
or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is
realized or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities. Current tax
assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or
to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in Standalone Statement of Profit and Loss, except to the extent that it relates to items recognised
in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.

50.7 Earnings per share (EPS)

Basic EPS is arrived by dividing profit attributable to equity shareholders by the weighted average number of equity shares outstanding
during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity
shares unless impact is anti-dilutive. The number of shares and potentially dilutive equity shares are adjusted retrospectively for all
periods presented in case of share splits.

50.8 Provisions and contingencies

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that
an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.

A provision is made in respect of onerous contracts, i.e., contracts in which the unavoidable costs of meeting the obligations under
the contract exceed the economic benefits expected to be received under such contracts. Provisions are not recognised for other
future operating losses. The carrying amounts of provisions are reviewed at each balance sheet date and adjusted to reflect the
current best estimate.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering
the class of obligations as a whole.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation
at the end of the reporting period.

The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require
an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty. When there is a
present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.

50.9 Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised
cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in Standalone Statement
of Profit and Loss over the period of the borrowings using the effective interest method.

Borrowings are derecognised from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired.
The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in Standalone Statement of Profit and
Loss as other gains/(losses).

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least
12 months after the reporting period.

50.10 Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are
assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other borrowing costs are expensed
in the period in which they are incurred.

50.11 Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions are
complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the
related costs, for which it is intended to compensate, are expensed.

When the grant relates to property, plant and equipment, it is recognised as deferred income and recognised as income in Standalone
Statement of Profit and Loss over the expected useful life of the related asset. When loan or similar assistance are provided by government
or related institutions, with an interest rate below the current applicable market rate, the effect of this favourable interest is recognized
at government rate. The loan or assistance is initially recognized and measured at fair value and the government grant is measured as
the difference between the initial carrying value of the loan and the proceeds received.

50.12 Exceptional items

When an item of income or expense within Standalone Statement of Profit and Loss from ordinary activity is of such size, nature and
incidence that its disclosure is relevant to explain more meaningfully the performance of the Company for the year, the nature and
amount of such items is disclosed as exceptional items.

50.13 Segmental information

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
Executive committee, which has been identified as the chief operating decision maker, assesses the financial performance and position
of the Company and makes strategic decisions. The executive committee consists of the Managing Director & Chief Executive Officer
and other senior management team members. Since segment disclosures have been provided in the consolidated financial statements,
no such disclosures have been made in these standalone financial statements.

50.14 Equity

Own shares represent shares of the Company and those held in treasury by USL Benefit Trust. Pursuant to orders of the High Court of
Karnataka and the High Court of Bombay, shares held in aforesaid trust have been treated as an investment.

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

50.15 Foreign currency translation

(i) Functional and presentation currency

The standalone financial statements are presented in Indian Rupee ('), the functional currency of the company.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets
and liabilities denominated in foreign currencies at year end exchange rates are recognised in the Standalone Statement of
Profit and Loss.

50.16 Rounding of amounts

All amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest crores as per the
requirement of Schedule III (Division II) to the Act, unless otherwise stated. The sign '0' in these standalone financial statements indicates that
the amounts involved are below ' Fifty Lakhs and the sign '-' indicates that amounts are nil.

For Price Waterhouse & Co Chartered Accountants LLP For and on behalf of the Board of Directors

Firm registration number: 304026E/E-300009

Dibyendu Majumder V K Viswanathan Praveen Someshwar

Partner Chairman Managing Director & Chief Executive Officer

Membership number: 057687 DIN: 01782934 DIN: 01802656

Place : Bengaluru Place : Bengaluru

Mital Sanghvi Pradeep Jain

Company Secretary Executive Director & Chief Financial Officer

Place : Bengaluru DIN: 02110401

Place : Bengaluru

Place : Bengaluru

Date : May 20, 2025 Date : May 20, 2025