3.8 Provisions and contingent liabilities

(i) Provision

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

(ii) Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not
probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

3.9 Earnings per share (EPS)

Basic earnings per share (‘EPS’) is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of shares
outstanding during the year.

Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period except where the result would
be anti-dilutive.

3.10 Cash and cash equivalent

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash on hand, other short term highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.

3.11 Segment reporting

The Company's segment reporting is in accordance with Ind AS 108 Operating Segments. Operating segments are reported in a manner consistent with the internal
reporting provided to the board of directors, which is responsible for allocating resources and assessing performance of the operating segments, and has been identified
as the chief operating decision maker.

3.12 Financial liabilities

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

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 ‘Other income' line item.

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.

For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each reporting period, the foreign exchange gains and
losses are determined based on the amortised cost of the instruments and are recognised in ‘Other income’.

The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of the reporting
period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognised in statement
of profit and loss.

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. The difference between the
carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in statement of profit and loss.

3.13 Derivative financial instruments

The Company enters into derivative financial instruments to manage its exposure to foreign exchange rate risks, including foreign exchange forward contracts.

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 statement of profit and loss.

3.14 Government grants

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.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company
with no future related costs are recognised in profit or loss in the period in which they become receivable.

The Company receive government grants in the form of Merchandise Exports from India Scheme (MEIS) and RoDTEP licenses, which are issued as export benefits and
are recognised as revenue grants. Export benefits are recognised as Other operating income in the Statement of Profit and Loss at the time of submission of application
to the concerned Government authority after ascertaining the amount of benefit permissible under the scheme.

3.15 Other income

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the company and the amount of income can be measured
reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

4. Critical accounting estimates and assumptions

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to
exercise judgement in applying the Company’s accounting policies.

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a
financial impact on the Company and that are believed to be reasonable under the circumstances.

This note provides detailed information of the areas that involved a higher degree of judgement or complexity, and of items which are more likely
to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.

The areas involving critical estimates or judgements are:

(i) Defined benefit plans

The cost of the defined benefit plan and the present value 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 and mortality rates. 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.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate, the management considers the interest rates of government
bonds in the currencies of the post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary
increases and gratuity increases are based on expected future inflation rates, seniority, promotion and other relevant factors, such as supply and demand in the
employment market.

(ii) Useful life of Property, plant and equipment

Property, plant and equipment (asset) represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after
determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company's assets
are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical
experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

(iii) Provision for expected credit losses (ECL) on trade receivables

The Company uses a provision matrix to calculate ECL for trade receivables . The ECL provision matrix is based on the Company’s historical observed default rates. The
Company adjust the historical credit loss experience with forward-looking information. At every reporting date, the historical observed default rates are updated and
changes in the forward-looking estimates are analysed. The amount of ECL is sensitive to changes in circumstances and accordingly Company’s actual default in the
future may be different.

Note: The Company as well as the department have filed appeals on various matters arising from these assessments. Based on the available documentation and tax experts view,
the Company has created provisions wherever required and for the balance matters, it believes that more likely than not, these disputes would not result in additional outflow of
resources.

The Company is contesting certain claims raised by authorities towards custom, excise, service tax, goods and service tax and sales tax/VAT dues at various forums. Based on the
available documentation and expert view, the Company has created provisions wherever required and for the balance matters, it believes that more likely than not, these disputes
would not result in additional outflow of resources.

The assessments undertaken in recognising provisions and contingencies have been made in accordance with Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent
Assets’. The evaluation of the likelihood of the contingent events requires best judgement by management considering the probability of exposure to potential loss. Judgement
includes consideration of experts opinion, facts of the matter, underlying documentation and historical experience. Changes in assumptions about these factors could affect the
reported value of contingencies and provisions.

It is not practicable for the Company to estimate the timing of cash outflow, if any, in respect of the above pending resolution of the respective proceedings.

Tha Cnmnanw Hnac nnt ovnor-t am/ raimhnrcamantc in raena/'t nf tha ahra/a nnntinnant liahilitiac

39. Employee benefit plan

39.1 Defined contribution plans

During the year the Company has recognised an amount of Rs. 244.65 lakhs (December 31, 2023 Rs. 409.19 lakhs) as expenditure towards defined contribution plans of the Company.

39.2 Defined benefit plans

The Company offers the employee benefit schemes of Pension (funded), Gratuity (funded) and Other retirement benefit (unfunded) to its employees. Benefits payable to eligible employees of
the Company with respect to these schemes, defined benefit plans are accounted for on the basis of an actuarial valuation as at the balance sheet date.

The present value of defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method with actuarial valuations being carried out at each
balance sheet date.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation
of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the
reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

39.3 Defined Benefit plans- Provident Fund

In terms of Guidance on implementing Ind AS 19 on Employee Benefits issued by the Accounting Standard Board of the Institute of Chartered Accountants of India (ICAI), a provident fund set
up by the Company is treated as a defined benefit plan in view of the Company's obligation to meet shortfall, if any, on account of interest.

The actuary has carried out actuarial valuation of interest rate guarantee obligations as at the balance sheet date using Projected Unit Credit Method and Deterministic Approach as outlined in
the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, shortfall in the fund as ascertained by the actuary provided during the year amounts to Rs. 57.37
lakhs (December 31, 2023: 117.47 lakhs) which is included in 'Contribution to Provident and Other Funds' in Note 32.

Further during the year, the Company's contribution of Rs 254.64 lakhs (December 31, 2013: Rs. 323.79 lakhs) to the Provident Fund Trust has been expensed under the 'Contribution to
Provident and Other Funds' in Note 32. Disclosures given hereunder are restricted to the information available as per the Actuary's Report.

The Company manages it's capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the debt and equity
balance. The Company is not subject to any externally imposed capital requirements. The Company's board of directors reviews the capital structure of the Company on a periodic basis.
As part of this review, the Board of directors considers the cost of capital and the risks associated with capital. The Company's gearing ratio at the end of the reporting period was as
follows:

Method/ assumption used to estimate the fair value:

(a) The carrying value of trade receivables, cash and cash equivalents, bank deposits, trade payables, other current financial assets and financial liabilities measured at amortised cost
approximate their fair value due to the short-term maturities of these instruments.

(b) The fair values of the derivative financial instruments has been determined using valuation techniques with market observable inputs. The models incorporate various inputs including
the credit quality of counter-parties and foreign exchange forward rates.

(c) The fair value of unquoted equity shares is based on market multiples derived from quoted prices and price earning multiples of companies comparable to the investee and the net
assets value and price earning multiples of the investee. The estimate is adjusted for the effect of the non-marketability of the relevant equity securities.

(d) There were no transfers between Level 1, Level 2 and Level 3 of financial assets and liabilities.

(iii) Financial risk management objectives

The Company’s management monitors and manages key financial risks relating to the operations of the Company by analysing exposures by degree and magnitude of risks. These risks
include market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of currency risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the
Company's policies approved by the board of directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non¬
derivative financial instruments, and the investment of excess liquidity. The Company does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purposes.

(iv) 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 risk comprises three types of risk: interest
rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include foreign currency receivables, deposits and
borrowings.

The Company enters into a derivative financial instruments to manage its exposure to foreign currency risk, including forward foreign exchange contracts to hedge the exchange rate risk
arising on the imports.

(v)(a) Foreign Currency sensitivity analysis

The Company is mainly exposed to the fluctuation in the value of USD and JPY. The following table details the company sensitivity to a 10% increase and decrease in INR against the
relevant foreign currency. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the
reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjust there translation at the
period end for a 10% change in foreign currency rate. A positive number below indicates an increase in profit (decrease in loss) or equity where the Rs. strengthens 10% against the
relevant currency. For a 10% weakening of the Rs. against the relevant currency, there would be a comparable impact on the profit or equity.

The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate exposure of a currency and a simultaneous parallel foreign exchange
rates shift in the foreign exchange rates of each currency by 10%.

(vi) Interest rate risk management

The Company is subject to variable interest rate on its interest bearing liabilities. The Company's interest rate exposure is mainly related to debt obligations. The Company's exposure to
interest rates on financial liabilities are detailed in the liquidity risk management.

(vi) (a) Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates at the end of the reporting period. The Company does not have any borrowings having
floating rate outstanding at the end of the reporting period.

(vii) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.

Trade Receivable and other financial assets

The company has adopted a policy of dealing with creditworthy counterparties and obtaining deposits, where appropriate, as a means of mitigating the risk of financial loss from defaults.
Before accepting any new customer, the Company assess the potential customers credit quality and defines credit limit by customers. Limits attributed to customer are reviewed annually.
Ongoing credit evaluation is performed on the financial condition of accounts receivable. Concentration of credit risk to any counterparty did not exceed 10% of total monetary assets at any
time during the year.

Cash and cash equivalents and bank deposits

The Company maintains its cash and cash equivalents and bank deposits with reputed banks. The credit risk on these instruments is limited because the counterparties are banks with high
credit ratings assigned by international credit rating agencies.

(viii) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the
company's short-term, medium-term and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking
facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Note a:

(i) Total debt = total borrowings lease liabilities

(ii) Earning available for debt service = profit after tax finance costs depreciation and amortization expense

(iii) Total purchases = purchase of stock-in-trade purchases of raw materials purchase of containers

(iv) Total sales = revenue from operations

(v) Working capital = current assets - current liabilities

(vi) Earning before interest and taxes = profit before tax finance costs

(vii) Capital employed = Tangible net worth total debt deferred tax assets (net)

(viii) Wherever the term "average" is used, the average has been computed as follows: (balance as at beginning of the year balance as at end of year)/2.

Note b: Variance not explained as the change in the ratio is less than 25% as compared to the previous year.

46. Additional regulatory information not disclosed elsewhere in the financials statements

a) Details of benami property held

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

b) Willful defaulter

The Company has not been declared willful defaulter by any bank or financial institution or other lender.

c) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

d) Registration of charges or satisfaction with Registrar of Companies

The Company has a charge of Rs. 30.00 lakhs with IDBI bank w.e.f. February 5, 1992, which is yetto be satisfied with the registrar ofthe companies beyond the statutory period due to
unavailability of sufficient documents for satisfaction.

e) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

f) Compliance with approved scheme(s) of arrangements

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

g) Undisclosed income

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

h) Details of crypto currency or virtual currency

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

i) Valuation of property, plant and equipment, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous financial year.

j) Utilisation of borrowed funds and share premium

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(ii) 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 or otherwise)
that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

k) Fund based and non fund based working capital facilities extended to the Company are secured by hypothecation ofthe Company’s inventories and book receivables, both present
and future, by way of first charge in favour of State Bank of India and Standard Chartered ranking pari passu.

49. Transfer Dricina

The Company has a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax
Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company appoints independent consultants for
conducting a Transfer Pricing Study to determine whether the transactions with associate enterprises are undertaken, during the financial year, on an "arms length basis".
Adjustments, if any, arising from the transfer pricing study shall be accounted for as and when the study is completed for the current financial year. However, the management is
of the opinion that its international transactions are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount
of tax expense and that of provision for taxation. The transfer pricing study for the year ended March 31, 2024 did not result in any adjustment.

51. The Board of Directors in their meeting held on February 21,2025, have recommended a final dividend of Rs. 4 (December 31,2023: Nil) per equity share. The payment of final
dividend is subject to approval of the shareholders at the ensuing Annual General Meeting of the Company.

52. Approval of financial statements

The financial statements for the year ended December 31, 2024 were approved and authorised for issue by the board of directors on February 21, 2025.

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

Firm's Registration Number: 012754N/N500016 DIC India Limited

Rajib Chatteqee Prabal Kumar Sarkar Manish Bhatia

Partner Director Managing Director and CEO

Membership Number: 057134 DIN: 03124712 DIN: 08310936

Meghna Saini Gagan Deep Singh

Company Secretary Chief Finance Officer

Place: Gurugram Place: Noida

Date: February 21, 2025 Date: February 21, 2025