33 Additional information to the financial statements

33A Contingent liabilities and commitments (to the extent not provided for)

(a) Contingent liabilities:

(i) Disputed Income Tax demands* - ? 1,402.14 lakhs (previous year ? 1,623.73 lakhs)

(ii) Disputed Central Excise demands - ? 1,442.81 lakhs(previous year ? 1,442.81 lakhs)

(iii) Disputed Sales Tax demands - ? 2,660.41 lakhs (previous year ? 2,660.41 lakhs)

(iv) Disputed Service Tax demands - ? 175.81 lakhs (previous year ? 858.03 lakhs)

(v) Disputed civil suit - ? 90.84 lakhs (previous year - ? 90.84 lakhs)

(vi) Disputed claims against the company not acknowledged as debt ? 42.85 lakhs (Previous Year ? 42.85 lakhs)

(vii) Disputed Goods and Services Tax demand - ? 2,179.86 lakhs (previous year ? 2,090.98 lakhs)

(viii) Disputed claims against the Company for certain Labour Law & related matters estimated at ? 42.50 lakhs (previous year ? 42.50 lakhs)

* In calculating the tax expense for the current year, the Company has considered taxability of certain income and allowability of certain expenditure for tax purpose based on the orders/judgments passed in further appeals in its own assessment of earlier year. Based on the same, no additional provision is envisaged necessary as on March 31,2026 in respect of earlier years and current year.

(b) Commitments:

(i) Estimated amount of contracts remaining to be executed on capital account and not provided for - ? 2,557.14 lakhs (previous year ? 2,853.76 lakhs).

(ii) Towards product performance guarantee ? 152.33 lakhs (previous year ? 152.33 lakhs)

(iii) Towards service performance guarantee ? 144.17 lakhs (previous year ? 115.64 lakhs)

I n respect of all items mentioned in (a) above, till the matter are finally decided, the timing of outflow of economic benefit cannot be ascertained.

33C The Company is primarily engaged in the business of Health, Hygiene products and its services. Information reported to and evaluated regularly by chief operating decision maker for the purpose of resource allocation and assessing performance focuses on the business as a whole. Accordingly there is no other separate segment as per Indian Accounting Standard 108 dealing with “Operating Segment”. The geographical segmentation is insignificant as the export turnover is less than 10% of the total turnover and also company's Non Current assets (other than Financial Instrument, deferred tax, post employment benefits and rights arising under insurance contracts) are located in India.

Revenue from transactions with a single external customer did not amount to 10% or more of the Company's revenue from external customers for current and previous year.

33D The Company did not have any material transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the current year and previous year.

33E 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.

33F The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

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

33G ?1,656.81 Lakhs (Previous year ?1,805.77 lakhs) revenue expenses incurred during the year on Research and Development has been charged to the respective heads of accounts.

33H There are no scheme of arrangements which have been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the current year.

33L The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year or previous financial year.

33M The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

33N The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with Companies (Restriction on number of Layers) Rules, 2017.

33O The Company does not have any investment property during any reporting period, the disclosure related to fair value of investment property is not applicable.

33P The Company is not covered under Section 8 of the Companies Act, thus related disclosure is not applicable.

33Q The Company does not have any transaction which is not recorded in the books of accounts that has 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).

33R Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option or appreciation right, volatility and dividend yield and making assumptions about them. For the measurement of the fair value of equity-settled transactions with employees at the grant date, the Company uses a Black Scholes model and Monte-Carlo simulation model basis the type of option granted. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 37.

33S Impairment testing of goodwill and intangible assets with indefinite useful life:

Goodwill and intangible assets recognised in the financial statements pertain to the Composite Scheme of Arrangement approved by the Hon'ble National Company Law Tribunal (NCLT), Mumbai vide order dated January 25, 2022, which became effective on February 01, 2022, and subsequent acquisition of controlling stake in the Company by Lunolux Limited in FY 2022-23.

The Company has identified its business of Health, Hygiene products and its Services as a single Cash Generating Unit (CGU).

The recoverable amount of the CGU has been calculated based on its value in use, estimated as the present value of projected future cash flows.

The values assigned to the key assumptions represent management's assessment of future trends in the relevant industries and have been based on historical data from both external and internal sources. Market related information and estimates are used to determine the recoverable amount.

Key assumptions on which management has based its determination of recoverable amount include estimated long-term growth rates, weighted average cost of capital and estimated operating margins. Cash flow projections take into account past experience and represent management's best estimate about future developments.

The discount rate was derived basis the weighted-average cost of capital of debt and equity.

The cash flow projections included specific estimates for five years and a terminal growth rate thereafter. The terminal growth rate was determined based on management's estimate of the longterm EBITDA growth rate, consistent with the assumptions that a market participant would make. Budgeted EBITDA was estimated taking into account past experience, adjusted for future expectations.

The company has performed a sensitivity analysis and has concluded that there are no reasonably possible changes to key assumptions that would cause the carrying amount of a CGU to exceed its recoverable amount.

33T (a) Exceptional loss for the year ended March 31, 2026 amounting to ? 4044.18 lakhs pertains to the following:

On November 21,2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively “new Labour Codes”) - consolidating 29 existing labour laws. In accordance with the new Labour Codes, the Company has currently estimated the incremental impact on retiral benefits to be ?4,044.18 lakhs for the year ended March 31,2026 and quarter ended December 31,2025. Considering material, regulatory-driven and non-recurring nature of this impact, this has been presented under “Exceptional Items” in the financial statement. The Company continues to monitor developments on the Rules to be notified by regulatory authorities, including clarifications/additional guidance from authorities and will continue to assess the accounting implications, basis such developments/guidance.

33T (b) Exceptional items for the year ended March 31, 2025 amounting to ? 507.69 lakhs pertains to the following:

For the year ended March 31, 2025, full and final claim settlement amount received of ?1,301.12 lakhs against the fire incident at Delhi warehouse location in March 2024 resulting in damages to inventory including raw materials, components, and finished goods. Out of the total sum received, the Company had received an amount of ?1,001.12 lakhs in the quarter ended March 31, 2025.

An amount of ?793.43 lakhs for the quarter and year ended March 31, 2025 which is charged to Statement of Profit & Loss, on account of phasing out of certain product category and models including its components, due to change in economic conditions and technological obsolescence.

33U Figures for the previous year are re-arranged/regrouped, wherever necessary, to correspond with the current year disclosure.

33V The Financial Statements for the year ended March 31, 2026 were approved for issue by Company's Board of Directors on May 19, 2026.

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to the company's operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. After considering current and future economic conditions, the company has concluded that no changes are required to lease period relating to the existing lease contracts.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

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 method as applied in calculating the defined benefit obligation as recognised in the balance sheet.

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

Type 1 Service based options and 55% of Type 2 options have vested during FY 2024-25. 45% of Type 2 options have vested in the current year.

The fair value of the share options is estimated at the grant date using Black Scholes Option Pricing (“BSOP”) method, taking into account the terms and conditions upon which the share options were granted.

Terms of Category 2 (Performance based) options

1,75,32,123 tenure and performance based options to vest only upon the following conditions being met

1 I f Volume weighted average price of the share (VWAP) for a specific tenure> 2.5x/ 3x/ 4.5x USD Multiple of Money (MoM)/Specific amount then employee will get variable number of ESOP depending on various range of MoM. (Range-minimum 2.5X MoM till more than 5X MoM).

38 Financial instruments

Capital management

The Company's objectives when managing capital are to:

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

• Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with the industry, the Company, primarily, uses the gearing ratio to monitor and maintain the capital structure. Net debt (total borrowings net of cash and cash equivalents) divided by ‘total equity' (as shown in the balance sheet).

Valuation techniques and significant unobservable inputs

Specific valuation techniques used to value financial instruments include:

• The use of quoted market prices or dealer quotes for similar instruments.

• All of the resulting fair value estimates are included in level 1 except for unlisted equity securities where the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.

• The carrying amount of Trade receivables, Trade payables, cash and Cash Equivalents are considered to be the same as their Fair Values, due to their short term in nature.

• The Fair value of financial Instrument that are not traded in an active market is determined using valuation technique. The company uses its Judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.

Notes: Explanation for change in the ratio by more than 25%

(a) Increase in current ratio due to increase in inventories and cash generation from business operation.

(b) Higher earning and reduction in debt service obligations during current year.

(c) Increase in current asset due to increase in inventories and cash generation from business operation.

(d) Decrease on account of increase in other equity.

(e) The calculation for above ratios is in accordance with formula prescribed by Guidance note on Schedule III issued by the Institute of Chartered Accountants of India.

f) Capital employed = Tangible Net Worth# Total Debt Deferred Tax Liability.

# In order to derive to the tangible net worth, goodwill and other intangibles assets has been reduced from the total net worth.