2.15 Provisions and contingent liabilities

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event,
it is probable that the Company will be required to settle the
obligation, and a reliable estimate can be made of the amount
of the obligation.

The amount recognised as a provision is the best estimate of
the consideration required to settle the present obligation at the
end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash
flows (when the effect of the time value of money is material).

When some or all of economic benefits required to settle a
provision are expected to be recovered from a third party, a
receivable is recognised as on asset if it is virtually certain that
reimbursements will be received and amount of the receivable
can be measured reliably.

A disclosure for a contingent liability is made when there is
a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. When there
is a possible obligation or a present obligation that the likelihood
of outflow of resources is remote, no provision or disclosure is
made.

2.16 Financial instruments

Financial assets and financial liabilities are recognised when a
Company becomes a party to the contractual provisions of the
instruments.

Financial assets and financial liabilities are initially measured at
fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair
value of the financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly attributable to
the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in profit
or loss.

2.16.1 Financial assets

All regular way purchases or sales of financial assets are
recognised and derecognised on a trade date basis. Regular way
purchases or sales are purchases or sales of financial assets
that require delivery of assets within the time frame established
by regulation or convention in the marketplace.

All recognised financial assets are subsequently measured in
their entirety at either amortised cost or fair value, depending
on the classification of the financial assets

2.16.1.1 Classification of financial assets

Financial instruments that meet the following conditions are
subsequently measured at amortised cost (except for debt
instruments that are designated as at fair value through profit
or loss on initial recognition):

a. the asset is held within a business model whose objective is
to hold assets in order to collect contractual cash flows; and

b. the contractual terms of the instrument give rise on specified
dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding

Financial instruments that meet the following conditions
are subsequently measured at fair value through other
comprehensive income (except for debt instruments that
are designated as at fair value through profit or loss on initial
recognition):

a. the asset is held within a business model whose objective
is achieved both by collecting contractual cash flows and
selling financial assets; and

b. the contractual terms of the instrument give rise on specified
dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

Interest income is recognised in profit or loss for instruments
measured at Fair value through other comprehensive income
(FVTOCI). All other financial assets are subsequently measured
at fair value.

2.16.1.2 Effective interest method

The effective interest method is a method of calculating the
amortised cost of a debt instrument and of allocating interest
income over the relevant period. The effective interest rate is
the rate that exactly discounts estimated future cash receipts
(including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the
debt instrument, or, where appropriate, a shorter period, to the
net carrying amount on initial recognition.

Income is recognised on an effective interest basis for debt
instruments other than those financial assets classified as at
FVTPL. Interest income is recognised in profit or loss and is
included in the “Other income” line item.

2.16.1.3 Investments in equity instruments measured
at fair value through other comprehensive income
(FVTOCI)

On initial recognition, the Company can make an irrevocable
election (on an instrument-by-instrument basis) to present
the subsequent changes in fair value in other comprehensive
income pertaining to investments in equity instruments.
This election is not permitted if the equity investment is held for
trading. These elected investments are initially measured at fair
value plus transaction costs. Subsequently, they are measured
at fair value with gains and losses arising from changes in
fair value recognised in other comprehensive income and
accumulated in the ‘Reserve for equity instruments through
other comprehensive income'. The cumulative gain or loss is
not reclassified to profit or loss on disposal of the investments.
A financial asset is held for trading if:

a. it has been acquired principally for the purpose of selling it
in the near term; or

b. on initial recognition it is part of a portfolio of identified financial
instruments that the Company manages together and has a
recent actual pattern of short-term profit-taking; or

c. it is a derivative that is not designated and effective as a
hedging instrument or a financial guarantee.

Dividends on these investments in equity instruments are
recognised in profit or loss when the Company's right to receive
the dividends is established, it is probable that the economic
benefits associated with the dividend will flow to the entity,
the dividend does not represent a recovery of part of cost of
the investment and the amount of dividend can be measured
reliably. Dividends recognised in profit or loss are included in the
‘Other income' line item.

2.16.1.4 Financial assets at fair value through profit
or loss (FVTPL)

Investments in equity instruments are classified as at FVTPL,
unless the Company irrevocably elects on initial recognition to
present subsequent changes in fair value in other comprehensive
income for investments in equity instruments which are not held
for trading.

Debt instruments that meet the amortised cost criteria or the
FVTOCI criteria but are designated as at FVTPL are measured
at FVTPL.

A financial asset that meets the amortised cost criteria or debt
instruments that meet the FVTOCI criteria may be designated
as at FVTPL upon initial recognition if such designation
eliminates or significantly reduces a measurement or recognition
inconsistency that would arise from measuring assets or liabilities
or recognising the gains and losses on them on different bases.
The Company has not designated any debt instrument as at
FVTPL/FVTOCI.

Financial assets at FVTPL are measured at fair value at the
end of each reporting period, with any gains or losses arising
on remeasurement recognised in profit or loss. The net gain
or loss recognised in profit or loss incorporates any dividend
or interest earned on the financial asset and is included in the
‘Other income' line item. Dividend on financial assets at FVTPL is
recognised when the Company's right to receive the dividends is
established, it is probable that the economic benefits associated
with the dividend will flow to the entity, the dividend does not
represent a recovery of part of cost of the investment and the
amount of dividend can be measured reliably.

2.16.1.5 Impairment of financial assets

The Company applies the expected credit loss model for
recognising impairment loss on financial assets measured at
amortised cost, debt instruments at FVTOCI, lease receivables,
trade receivables, other contractual rights to receive cash or
other financial asset not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses
with the respective risks of default occurring as the weights.
Credit loss is the difference between all contractual cash flows
that are due to the Company in accordance with the contract
and all the cash flows that the Company expects to receive (i.e.
all cash shortfalls), discounted at the original effective interest
rate (or credit-adjusted effective interest rate for purchased
or originated credit-impaired financial assets). The Company
estimates cash flows by considering all contractual terms of the
financial instrument (for example, prepayment, extension, call
and similar options) through the expected life of that financial
instrument.

When making the assessment of whether there has been a
significant increase in credit risk since initial recognition, the
Company uses the change in the risk of a default occurring
over the expected life of the financial instrument instead of
the change in the amount of expected credit losses. To make
that assessment, the Company compares the risk of a default
occurring on the financial instrument as at the reporting date
with the risk of a default occurring on the financial instrument as
at the date of initial recognition and considers reasonable and
supportable information, that is available without undue cost
or effort, that is indicative of significant increases in credit risk
since initial recognition.

For trade receivables or any contractual right to receive cash
or another financial asset that result from transactions that are
within the scope of Ind AS 115, the Company always measures
the loss allowance at an amount equal to lifetime expected
credit losses.

Further, for the purpose of measuring lifetime expected
credit loss allowance for trade receivables, the Company has
used a practical expedient as permitted under Ind AS 109.
The Company follows simplified approach for recognition of
impairment loss allowance on trade receivables. The application
of simplified approach does not require the Company to track
changes in credit risk. Rather, it recognises impairment loss
allowance based on lifetime ECL's at each reporting date, right
from its initial recognition.

The impairment requirements for the recognition and
measurement of a loss allowance are equally applied to debt
instruments at FVTOCI except that the loss allowance is
recognised in other comprehensive income and is not reduced
from the carrying amount in the balance sheet.

2.16.1.6 Derecognition of financial assets

The Company derecognises a financial asset when the
contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the
risks and rewards of ownership of the asset to another party.
If the Company neither transfers nor retains substantially all the
risks and rewards of ownership and continues to control the
transferred asset, the Company recognises its retained interest
in the asset and an associated liability for amounts it may
have to pay. If the Company retains substantially all the risks
and rewards of ownership of a transferred financial asset, the
Company continues to recognise the financial asset and also
recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset in its entirety, the difference
between the asset's carrying amount and the sum of the
consideration received and receivable and the cumulative
gain or loss that had been recognised in other comprehensive
income and accumulated in equity is recognised in profit or loss
if such gain or loss would have otherwise been recognised in
profit or loss on disposal of that financial asset.

On derecognition of a financial asset other than in its entirety
(e.g. when the Company retains an option to repurchase part
of a transferred asset), the Company allocates the previous
carrying amount of the financial asset between the part it
continues to recognise under continuing involvement, and
the part it no longer recognises on the basis of the relative fair
values of those parts on the date of the transfer. The difference
between the carrying amount allocated to the part that is no
longer recognised and the sum of the consideration received for
the part no longer recognised and any cumulative gain or loss
allocated to it that had been recognised in other comprehensive
income is recognised in profit or loss if such gain or loss would
have otherwise been recognised in profit or loss on disposal
of that financial asset. A cumulative gain or loss that had been
recognised in other comprehensive income is allocated between
the part that continues to be recognised and the part that is
no longer recognised on the basis of the relative fair values of
those parts.

2.16.1.7 Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign
currency is determined in that foreign currency and translated
at the spot rate at the end of each reporting period.

For foreign currency denominated financial assets measured
at amortised cost and FVTPL, the exchange differences are
recognised in profit or loss.

2.16.2 Financial liabilities

All financial liabilities are subsequently measured at amortised
cost using the effective interest method or at FVTPL.

2.16.2.1 Financial liabilities at fair value through
profit or loss (FVTPL)

Financial liabilities are classified as at FVTPL when the financial
liability is either contingent consideration recognised by the
Company as an acquirer in a business combination to which
Ind AS 103 applies or is held for trading or it is designated as
at FVTPL.

A financial liability is classified as held for trading if:

a. it has been incurred principally for the purpose of
repurchasing it in the near term; or

b. on initial recognition it is part of a portfolio of identified financial
instruments that the Company manages together and has a
recent actual pattern of short-term profit-taking; or

c. it is a derivative that is not designated and effective as a
hedging instrument.

A financial liability other than a financial liability held for trading
or contingent consideration recognised by the Company as an
acquirer in a business combination to which Ind AS 103 applies,
may be designated as at FVTPL upon initial recognition if:

a. such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would
otherwise arise;

b. the financial liability forms part of group of financial assets
or financial liabilities or both, which is managed and its
performance is evaluated on a fair value basis, in accordance
with the Company's documented risk management or
investment strategy, and information about the grouping is
provided internally on that basis; or

c. it forms part of a contract containing one or more embedded
derivatives, and Ind AS 109 permits the entire combined
contract to be designated as at FVTPL in accordance with
Ind AS 109.

Financial liabilities at FVTPL are stated at fair value, with any
gains or losses arising on remeasurement recognised in profit or
loss. The net gain or loss recognised in profit or loss incorporates
any interest paid on the financial liability and is included in the
statement of profit and loss.

2.16.2.2 Financial liabilities subsequently measured
at amortised cost

Financial liabilities that are not held-for-trading and are not
designated as at FVTPL are measured at amortised cost at the
end of subsequent accounting periods. The carrying amounts of
financial liabilities that are subsequently measured at amortised
cost are determined based on the effective interest method.
Interest expense that is not capitalised as part of costs of an
asset is included in the ‘Finance costs' line item.

The effective interest method is a method of calculating the
amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is
the rate that exactly discounts estimated future cash payments
(including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the
financial liability, or (where appropriate) a shorter period, to the
net carrying amount on initial recognition.

2.16.2.3 Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only
when, the Company's obligations are discharged, cancelled
or have expired. An exchange between with a lender of debt
instruments with substantially different terms is accounted for
as an extinguishment of the original financial liability and the
recognition of a new financial liability. Similarly, a substantial
modification of the terms of an existing financial liability
(whether or not attributable to the financial difficulty of the
debtor) is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability.
The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable
is recognised in profit or loss.

2.16.3 Derivative financial instruments

The Company enters into a variety of derivative financial
instruments to manage its exposure to foreign exchange rate
risks and to manage its exposure to imported raw material
price risk including foreign exchange forward contracts and
commodities future contracts. Further details of derivative
financial instruments are disclosed in note 37.

Derivatives are initially recognised at fair value at the date the
derivative contracts are entered into and are subsequently
remeasured to their fair value at the end of each reporting
period. The resulting gain or loss is recognised in profit or loss
immediately.

2.16.4 Equity instrument

Equity instrument are any contract that evidences a residual
interest in the assets of an entity after deducting all of its liabilities.

Debt or equity instruments issued by the Company are classified
as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions
of a financial liability and an equity instrument.

Ordinary shares are classified as equity. Incremental costs
directly attributable to the issuance of new ordinary shares and
share options are recognised as a deduction from equity, net
of any tax effects.

The equity shares of the Company held by it through a trust
are presented as deduction from total equity, until they are
cancelled or sold.

2.17 Earnings per share

Basic earnings per equity share are computed by dividing the
net profit attributable to the equity holders of the Company by
the weighted average number of equity shares outstanding
during the period. Diluted earnings per equity share is computed
by dividing the net profit attributable to the equity holders of the
Company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and
also the weighted average number of equity shares that could
have been issued upon conversion of all dilutive potential equity
shares. The dilutive potential equity shares are adjusted for the
proceeds receivable had the equity shares been actually issued
at fair value (i.e. the average market value of the outstanding
equity shares). Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless issued at
a later date. Dilutive potential equity shares are determined
independently for each period presented.

2.18 Assets held for sale

The Company classifies non current assets as held for sale if their
carrying amounts will be recovered principally through a sale
rather than through continuing use. Current assets classified as
held for sale are measured at the lower of their carrying amount
and fair value less costs to sell. Costs to sell are the incremental
costs directly attributable to the disposal of an asset, excluding
finance costs and income tax expense.

The criteria for held for sale classification is regarded as met
only when the sale is highly probable, and the asset is available
for immediate sale in its present condition. Actions required
to complete the sale/ distribution should indicate that it is

unlikely that significant changes to the sale will be made or that
the decision to sell will be withdrawn. Management must be
committed to the sale and the sale expected within one year
from the date of classification.

For these purposes, sale transactions include exchanges
of non-current assets for other non-current assets when the
exchange has commercial substance. The criteria for held
for sale classification is regarded met only when the assets is
available for immediate sale in its present condition, subject
only to terms that are usual and customary for sales of such
assets, its sale is highly probable; and it will genuinely be sold,
not abandoned. The Company treats sale of the asset to be
highly probable when:

> The appropriate level of management is committed to a plan
to sell the asset,

> An active programme to locate a buyer and complete the
plan has been initiated (if applicable),

> The sale is expected to qualify for recognition as a completed
sale within one year from the date of classification, and

> Actions required to complete the plan indicate that it is
unlikely that significant changes to the plan will be made or
that the plan will be withdrawn.

2.19 Significant accounting judgements, estimates
and assumptions

In the application of the Company's accounting policies,
which are described as stated above, the Board of Directors
of the Company are required to make judgements, estimates
and assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on
historical experience and other factors that are considered to
be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised if the
revision affects only the period of the revision and future periods
if the revision affects both current and future periods.

2.19.1 Key sources of uncertainty

In the application of the Company accounting policies, the
management of the Company is required to make judgements,
estimates and assumptions about the carrying amounts of
assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based
on historical experience and other factors that are considered
to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the
revision affects only that period or in the period of the revision
and future periods if the revision affects both current and future
periods.

The following are the areas of estimation uncertainty and critical
judgements that the management has made in the process of
applying the Company's accounting policies and that have
the most significant effect on the amounts recognised in the
financial statements:

2.19.1.1 Defined benefit plans

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

2.19.1.2 Useful lives of depreciable tangible assets
and intangible assets

Management reviews the useful lives of depreciable/amortisable
assets at each reporting date.

As at March 31, 2025 management assessed that the useful
lives represent the expected utility of the assets to the Company.

2.19.1.3 Fair Value measurements and valuation
processes

Some of the Company's assets and liabilities are measured at
fair value for financial reporting purposes. The board of directors
of the Company approves the fair values determined by the
Chief Financial Officer of the Company including determining
the appropriate valuation techniques and inputs for fair value
measurements.

In estimating the fair value of an asset or liability, the Company
uses market-observable data to the extent is available.
Where Level 1 inputs are not available, the Company engages
third party qualified valuers to perform the valuation. The Chief
Financial Officer works closely with the qualified external valuers
to establish appropriate valuation techniques and inputs to the
model.

Information about the valuation techniques and inputs used in
determining the fair value of various assets and liabilities are
disclosed in notes 37.

2.19.1.4 Contingent Liability

In ordinary course of business, the Company faces claims by
various parties. The Company annually assesses such claims
and monitors the legal environment on an ongoing basis, with
the assistance of external legal counsel, wherever necessary.
The Company records a liability for any claims where a potential
loss is probable and capable of being estimated and discloses
such matters in its financial statements, if material. For potential
losses that are considered possible, but not probable, the
Company provides disclosures in the financial statements but
does not record a liability in its financial statements unless the
loss becomes probable.

2.19.1.5 Income Tax

The Company's tax jurisdiction is India. Significant judgements
are involved in determining the provision for income taxes
including judgement on whether tax positions are probable
of being sustained in tax assessments. A tax assessment
can involve complex issues, which can only be resolved over
extended time periods.

2.19.1.6 Inventory

Management has carefully estimated the net realizable values
of inventories, taking into account the most reliable evidence

available at each reporting date. The future realization of these
inventories may be affected by market driven changes.

2.19.1.7 Applicability of new and revised IND AS

Ministry of Corporate Affairs (“MCA”) notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. For the year ended March 31, 2025, MCA has notified
Ind AS - 117 Insurance Contracts and amendments to Ind
AS 116 - Leases, relating to sale and leaseback transactions,
applicable to the Company w.e.f. April 1,2024. The Company
has reviewed the new pronouncements and based on its
evaluation has determined that it does not have any significant
impact in its standalone financial statements.

2.19.1.8 Government grant receivables

Government grants are not recognised until there is reasonable
assurance that the Company will comply with the conditions
attaching to them and that the grants will be received.
As government grant falls under the definition of financial
instruments, the Company accounted as a financial assets as
per Ind AS 109. As on March 31,2025, the management, has
re-assessed the recoverability of the subsidy receivable from
the government and accordingly recognized the provision for
expected credit loss (ECL) in view of anticipation of delay in the
receipt of TUFF subsidy basis the past experience and ongoing
follow-ups/interaction with the authorities, is of the view that the
outstanding amount is good and recoverable as on March 31,
2025. Refer Note 6 and 13.

Notes on property, plant and equipment

1 Refer to note 18 (a) for information on property, plant and equipment pledged as security by the Company.

2 Buildings includes H2.48 Crores (March 31,2024: H2.48 Crores) cost of residential flats at Mandideep, the land cost of which
has not been excluded from this cost. The depreciation for the year has been taken on the entire cost.

3 The Company has availed benefit under Export Promotion Capital Goods (EPCG) scheme amounting to H76.62 Crores (FY
23-24 H22.67 Crores Crores) (related to non cenvatable portion of total duty saved) for financial year 2024-25, such benefit is
related to Property, Plant and Equipment and Capital work in progress.

4 Also refer Note 2.10 for option used by the Company to use carrying value of previous GAAP as deemed cost as on April 1,2015.

5 The title deeds of all immovable properties are held in the name of the Company. Where immovable properties are acquired
by the Company consequent to acquisition / merger of companies, the title to the immovable properties of the transferror
companies shall be deemed to have been mutated in the name of the Company as per the scheme of amalgamation approved
by National Company Law Tribunal / Court.

37 Financial Instruments and Risk Management

37.1 Capital Management

The Company manages its capital to ensure that it will be able to continue as going concern while maximizing the return to
stakeholders through optimization of debt and equity balance. The capital structure of the Company consists of net debt (borrowings
as detailed in note no.18 and 23 and offset by cash and bank balances) and total equity of the Company. The Company is not
subject to any externally exposed capital requirements.

The capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the
Company. The primary objective of the Company's capital management is to maintain optimum capital structure to reduce cost of
capital and to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants which otherwise would permit the banks to immediately call loans and borrowings. In order to maintain
or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or
issue new shares.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company's gearing ratio was
as follows:

Level 1:

Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference to quoted prices
in the active market.

Level 2:

Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other than quoted prices
included within Level 1 that are observable for such items, either directly or indirectly.

Level 3:

Valuation techniques with unobservable inputs. This level of hierarchy includes items measured using inputs that are not based
on observable market data (unobservable inputs). Fair value determined in whole or in part, using a valuation model based on
assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based
on available market data.

Sensitivity of Level 3 financial instruments are insignificant

The fair value of the financial instruments are determined at the amount that would be received to sell an asset in an orderly
transaction between market participants. The following methods and assumptions were used to estimate the fair values:

Investments in mutual funds: Fair value is determined by reference to quotes from the financial institutions, i.e. net asset value (NAV)
for investments in mutual funds declared by mutual fund house.

Investment in preference shares/debentures: Fair value is determined by reference to quotes from fund houses/portfolio management
services companies i.e value of investments.

Derivative contracts: The Company has entered into various foreign currency contracts to manage its exposure to fluctuations in
foreign exchange rates. These financial exposures are managed in accordance with the Company's risk management policies and
procedures. Fair value of derivative financial instruments are determined using valuation techniques based on information derived
from observable market data, i.e., mark to market values determined by the Authorised Dealers Banks.

Quoted equity investments: Fair value is derived from quoted market prices in active markets.

Unquoted equity investments: Fair value is derived on the basis of net asset value approach, in this approach the net asset value
is used to capture the fair value of these investments.

37.3 Financial Risk Management

The Company's corporate treasury functions provides services to the business, coordinates access to the financial markets, monitors
and manages the financial risks relating to operations of the Company through internal risk reports which analyse exposure by
degree and magnitude of risk. These risks include market risk (including currency risk, interest rate risk and other price risks, credit
risk and liquidity risk).

The Company seeks to minimize the effects of these risk by using derivate financial instruments to hedge risk exposure. The issue
of financial derivatives is governed by the Company's policy approved by the board of directors.

The principal financial assets of the Company include loans, trade and other receivables, and cash and bank balances that derive
directly from its operations. The principal financial liabilities of the Company, include loans and borrowings, trade and other payables
and the main purpose of these financial liabilities is to finance the day to day operations of the Company.

This note explains the risks which the Company is exposed to and policies and framework adopted by the Company to manage
these risks.

37.3.1 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market prices comprise three types of risk: foreign currency risk, interest rate risk, investment risk.

A. Foreign Currency Risk Management

The Company operates internationally and business is transacted in several currencies. The export sales of Company comprise
around 43% (2023-24 - 43%) of the total sales of the Company, Further the Company also imports certain assets and material from
outside India. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may
fluctuate substantially in the future. Consequently, the Company is exposed to foreign currency risk and the results of the Company
may be affected as the rupee appreciates/ depreciates against foreign currencies. Foreign exchange risk arises from the future
probable transactions and recognized assets and liabilities denominated in a currency other than Company's functional currency.

The Company measures the risk through a forecast of highly probable foreign currency cash flows and manages its foreign currency
risk by appropriately hedging the transactions. The Company uses a combination of derivative financial instruments such as foreign
exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

C. Security Price Risk Management
Exposure in equity

The Company is exposed to equity price risks arising from equity investments held by the Company and classified in the balance
sheet as fair value through OCI.

Equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the year.

If the equity prices had been 5% higher / lower:

Other comprehensive income for March 31,2025 would increase / decrease by H0.14 crores (March 31,2024: increase / decrease
by H0.11 crores) as a result of the change in fair value of equity investment measured at FVTOCI.

Exposure in mutual funds

The Company manages the surplus funds majorly through investments in debt based mutual fund schemes. The price of investment
in these mutual fund schemes is reflected though Net Asset Value (NAV) declared by the Asset Management Company on daily
basis as reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investments.

Mutual fund/debentures/Equity shares/bonds price sensitivity analysis

The sensitivity analysis below have been determined based on Mutual Fund Investment at the end of the year. If NAV has been 1%
higher / lower:

Profit for the year ended March 31,2025 would increase / decrease by H13.64crores (March 31,2024 by H12.50 crores) as a result
of the changes in fair value of mutual fund investments.

D. Commodity Price Risk Management

The Company uses commodity derivative instruments to manage its price risk exposures on inventory of cotton. Commodity derivatives
are used primarily as risk mangement tool to safeguard price risk exposure on inventory of cotton. Company employs specific
financial instruments namely future and option contracts for hedging its price risk related to commodity.

37.3.2 Credit Risk Management

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure
to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured. Credit risk on cash and
bank balances is limited as the Company generally invests in deposits with banks and financial institutions with high credit ratings
assigned by credit rating agencies. Investments primarily include investment in liquid mutual fund units, bonds, fixed maturity plan
etc. issued by institutions having proven track record. The Company's credit risk in case of all other financial instruments is negligible.

The Company assesses the credit risk based on external credit ratings assigned by credit rating agencies. The Company also
assesses the creditworthiness of the customers internally to whom goods are sold on credit terms in the normal course of business.
The credit limit of each customer is defined in accordance with this assessment. Outstanding customer receivables are regularly
monitored and any shipments to overseas customers are generally covered by letters of credit.

The impairment analysis is performed on client to client basis for the debtors that are past due at the end of each reporting date.
The Company has not considered an allowance for doubtful debts in case of trade receivables that are past due but there has not
been a significant change in the credit quality and the amounts are still considered recoverable.

37.3.3 Liquidity Risk Management

The financial liabilities of the Company, other than derivatives, include loans and borrowings, trade and other payables. The Company's
principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company
monitors its risk of shortage of funds to meet the financial liabilities using a liquidity planning tool. The Company plans to maintain
sufficient cash and marketable securities to meet the obligations as and when they fall due. The below is the detail of contractual
maturities of the financial liabilities of the Company at the end of each reporting period:

b. Liability on account of bank guarantees and letter of credit of H658.04 crores (March 31,2024: H200.14 crores)

c. The amounts shown above represents the best possible estimates arrived at on the basis of available information. The uncertainties
and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the
Company or the claimants as the case may be and therefore cannot be predicted accurately or relate to a present obligations
that arise from past events where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate cannot be made. The Company has been advised that it has strong legal positions against such disputes.

d. The Payment of Bonus (Amendment) Act 2015, notified on December 31, 2015, had revised the thresholds for coverage
of employee eligible for Bonus and also enhanced the ceiling limits for computation of bonus retrospectively from April 1,
2014. Based on legal opinion, the Company has filed a writ petition in Hon'ble High Court of Punjab & Haryana contesting its
retrospective applicability and the said jurisdictional High Court has granted stay on its retrospective operation. In view thereof,
the Company has not provided differential bonus pertaining to the period from April 1,2014 to March 31,2015 amounting to
H8.21 crores. However, the Company has provided/paid bonus w.e.f. April 1,2015 according to the amended provisions of
the Payment of Bonus (Amendment) Act 2015.

45 i. Employee Share option plan 2024

(i) Detail of employee share option of the Company: The Company has a share option scheme for senior employees of the
Company. In accordance with the terms of the plan as approved by shareholders, eligible employees may be granted options to
purchase equity shares. Each employee share option convert into one equity share of the Company on exercise. Exercise price
payable by the recipient is determined as per scheme. The options when allotted carry rights to dividend and voting power at
par with other equity shares. Options may be exercised at the time of vesting to the date of their expiry.

(ii) The number of options granted is in accordance with employee stock option scheme approved by the shareholders and is
subject to approval by the remuneration committee. The scheme rewards senior employees to the extent of Company's and
the individual's achievement judged against both qualitative and quantitative criteria.

The expenses incurred on account of the above defined contribution plans have been included in Note 33 “Employee Benefits
Expenses” under the head “Contribution to provident and other funds”.

47.2 Defined benefit plans

The Company sponsors funded defined benefit plan for qualifying employees. This defined benefit plan of gratuity is administered by
a separate trust that is legally separate from the entity. The trustees are required by the law to act in the interest of the trust and all
the relevant stakeholders i.e. active employees, inactive employees, retired employees and employers, etc. The trust is responsible
for investment policy with regard to the assets of the trust. The Company has a gratuity plan wherein every employee is entitled to
the benefit equivalent to 15 days salary last drawn for each completed year of service. Gratuity is payable to all eligible employees
of the Company on retirement, separation, death or permanent disablement, in terms of the provisions of the Payment of Gratuity
Act, 1972 or as per the Company's plan, whichever is more beneficial.

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

50 There has been no delay in transferring amount, required to be transferred, to the Investor Education and Protection Fund (IEPF)
by the Company during the year.

51 The Company has identified two accounting softwares that record financial transactions to which the guidance of audit trail
applies. The Company evaluated and noted that in respect of one accounting software the audit trail (edit log) feature was enabled
throughout the year. Further, in respect of other accounting software used for purchase, production and sales management, no audit
trail log was enabled to log any direct data changes made at the database level during the period April 1,2024 to September 28, 2024
and audit trail enabled on the accounting software is not configured to track if it was disabled at any point in time during the year.

The audit trail that was enabled and operated for the year ended March 31, 2024, has been preserved by the Company as per
statutory requirements for record retention.

52 During the current year, the company has reclassified government grant receivable from “Other Non-Current Assets” to Other

Financials Assets (Non-Current) amounting to H39.52 cr. (March 31,2024 H58.01 cr.)

53 During the current year, the company has reclassified goverment grant receivable from “Other Current Assets” to Other Financials

Assets (Current) amounting to H70.44 crores (March 31,2024 H108.46 crores)

54 Other statutory information

(i) No proceeding have been initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988).

(ii) The Company has not been declared as wilful defaulter by any bank or financial Institution or other lender.

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

(iv) There are no transactions which are not recorded in the books of accounts that have been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).

(v) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall lend or invest in party identified by or on
behalf of the Company (Ultimate Beneficiaries).

(vi) No funds have been received by the Company 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 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.

(vii) During the financial year, the Company has not traded or invested in Crypto currency or Virtual Currency.

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

(ix) The Company has availed facilities from banks on the basis of security of current assets. The revised returns or statements
filed by the Company are in agreement with the books of accounts and there are no material discrepancies.

(x) The Board of Directors of Company have proposed the final dividend of H5 per fully paid 28,91,74,800 equity shares.
The proposed final dividend is subject to approval of the members at the ensuing Annual General Meeting. The amount of
such dividend proposed is in accordance with section 123 of Companies Act, 2013.