(p) Provisions, Contingent Liabilities and Contingent
Assets

A provision is recognized if, as a result of a past event,
the Company has a present legal or constructive
obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will be
required to settle the obligation.

The amount recognised as 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 risk 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 (where the effect of the time
value of money is material).

Contingent liabilities are possible obligations that arise
from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one
or more future events not wholly within the control of the
Company. Contingent Liabilities are not recognised in
the financial statements but are disclosed in the notes.

Contingent assets are disclosed where inflow of
economic benefit is probable.

(q) Investment in Subsidiaries

The Company has elected to recognize its investments
in subsidiaries at cost in accordance with the option
available in IND AS 27, ‘ Separate Financial Statement'.
The details of such investments are given in Note 7.
Impairment policy applicable on such investments is
explained in note 2 (d) above.

(r) Borrowing Cost

Borrowing Cost includes interest, amortization
of ancillary cost incurred in connection with the
arrangement of borrowings and exchange difference
arising from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest cost.

Borrowing cost, if any, directly attributable to the
acquisition, construction or production of an asset

that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalised,
if any. All other borrowing costs are expensed in the
period in which they occur.

(s) Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
Chief Operating Decision Maker.

The board of directors of the Company assesses
the financial performance and position of the
Company and makes strategic decisions. The board

of directors, which has been identified as being the
Chief Operating Decision Maker, consists of the key
managerial personnel and the directors who are in
charge of the corporate planning. Refer Note 33C for
segment information presented.

(t) Recent Pronouncements

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 not notified any new
standards or amendments to the existing standards
applicable to the Company.

Description of nature and purpose of reserves:

Retained Earnings

This reserve represents the cumulative profits of the company and the effects of remeasurement of defined benefit
obligations. The reserve can be utilised in accordance with the provision of the Companies Act, 2013.

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised in accordance with the
provisions of the Companies Act, 2013.

Capital Reserve

The Capital reserve has been created on cancellation of shares held by then existing shareholders of the company as per
the composite scheme of arrangement approved by the national company Law tribunal on January 25, 2022.

Employee stock option scheme reserves

The share-based payments reserve is used to recognise the value of equity settled share-based payments provided
to employees, including key management personnel, as part of their remuneration. Refer to Note 37 for further details
of these plans.

a. Rupee Term loan (RTL) from ICICI Bank amounting to ' 10,000.00 lakhs (No Outstanding as on March 31, 2025
(March 31, 2024: ' 2500.00 lakhs)) carries interest rate of 1 year MCLR and secured against pari pasu charge on
tangible assets (Excluding vehicles and two wheelers purchased under Employee Benefit Scheme).

b. Secured Short term borrowing from Axis, ICICI, Kotak and CITI bank is secured by pari-passu charge on hypothecation
of stock-in-trade and book debts and carries interest @ 8.65% p.a to 9.40% p.a. during FY 2024-25.

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

(a) directly or indirectly lend or invest in other persons or entites identfied 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 entites 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 '1,805.77 Lakhs (Previous year '1,600.82 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.

33I Disclosures required by Indian Accounting Standard 37 “Provisions, Contingent Liabilities and Contingent Assets”

33Q The Code on Social Security, 2020 (‘Code') relating to employee benefits during employment and post-employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
However, the date on which the Code will come in to effect has not been notified. The Company will assess the
impact of the Code when it comes into effect and will record any related impact in the period when the Code
becomes effective.

33R 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).

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

The Group 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.

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.

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.

3T Exceptional items for the year ended March 31,2025 amounting to ' 507.69 lakhs pertains to the following:

(a) For the year ended March 31, 2024 a fire incident at Delhi warehouse location resulted in damages to
inventory including raw materials, components, and finished goods. An insurance claim had been filed in
due course to cover the losses sustained from this incident amounting to '1,514.90 lakhs (including GST).
As of September 30, 2024 the company had received on account an initial amount of '300 lakhs against
the claim in the second quarter of the financial year. Further, the company has received a full and final claim
settlement amount of '1,001.12 lakhs in the fourth quarter of the financial year ended March 31,2025.

An amount of '793.43 lakhs for the quarter 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.

(b) Exceptional items for the year ended March 31,2024 amounting to ' 1,514.90 lakhs pertains to the following:
An amount of ' 1,514.90 lakhs (including GST) for the quarter and year ended March 31, 2024 which is
charged to Statement of Profit & Loss, on account of a fire at its Delhi warehouse location, resulting in
damage to inventory, including raw materials, components, and finished goods. An insurance claim has
been filed to cover the losses sustained from this incident.

33U 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.

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

33W The Financial Statements for the year ended March 31, 2025 were approved for issue by Company's Board of
Directors on May 16, 2025.

Rental expense recorded for short-term leases was ' 597.63 Lakhs for the year ended March 31,2025. (Previous Year:
' 509.54 Lakhs)

I nd 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.

37 Employee share option scheme expenses

A Employees Stock Option Plan (ESOP 2022)

The Company instituted an Employee Stock Option Scheme 2022 (“ESOP”) for certain employees which provides for
a grant of 1,75,21,597 options (each option convertible into shares) to employees. The Company has made grant of
total 1,65,75,499 options as below:

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.

40 Financial instruments - Financial risk management

The Company's activities expose it to market risk , liquidity risk and credit risk. In order to minimise any adverse effects

on the financial performance of the Company , such as foreign exchange forward contracts are entered to hedge

certain foreign currency risk exposure .

The Company's risk management is carried out by the Treasury team under policies approved by the Finance
committee. Treasury team identifies and evaluates financial risks.

(a) Credit risk

Credit risk arises from cash and cash equivalents, investments and deposits with banks, as well as credit exposures
to customers including outstanding receivables.

The carrying amounts of financial assets represent the maximum credit risk exposure. The maximum exposure to
credit risk at the reporting date was:

The Company held cash and cash equivalents of ' 6,951.06 lakhs at March 31, 2025 (March 31, 2024: ' 5,551.79
lakhs). The cash and cash equivalents are held with bank ' 6,946.63 lakhs at March 31, 2025 (March 31, 2024: '
5,394.01 Lakhs)

(b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity
is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are
gross and undiscounted:

The sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative
instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the
amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50
basis point increase or decrease is used when reporting interest rate risk internally to key management personnel
and represents management's assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the company's:

i) profit for the year ended March 31, 2025 would decrease/increase by ' 16.16 lakhs (2024: decrease/
increase by ' 13.87 lakhs). This is mainly attributable to the company's exposure to interest rates on its
variable rate borrowings.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently
observable market environment, showing a significantly higher volatility than in prior year.

(d) Revenue growth along with higher efficiency on working capital improvement has resulted in an improvement in the ratio.

(e) Higher net profit after tax during the current year with higher revenue.

(f) Increase in earnings and reduction in borrowings on account of repayment.

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

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

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

For and behalf of the Board of Directors of Eureka Forbes Limited

Arvind Uppal Pratik R. Pota Gaurav Khandelwal Pragya Kaul

Chairman Managing Director & CEO Chief Financial Officer Company Secretary

(DIN-00104992) (DIN-00751178)

Gurugram, India Mumbai, India Mumbai, India Mumbai, India

Dated : May 16, 2025 Dated : May 16, 2025 Dated : May 16, 2025 Dated : May 16, 2025