p. 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

an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.

If the effect of the time value of money is
material, provisions are discounted using
a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability.
When discounting is used, the increase in
the provision due to the passage of time is
recognised as a finance cost.

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 the obligation or a reliable estimate of
the amount cannot be made.

q. Segment Reporting

Based on the internal reporting structure
and the information reviewed by the Chief
Operating Decision Maker (CODM) for the
purpose of assessing financial performance
and allocating resources, the Company is
engaged in a single business segment, namely
manufacturing and sale of personal care and
healthcare products. Accordingly, as the
Company operates in one reportable segment,
no separate segment disclosures are required
under Ind AS 108 "Operating Segments", and
the Standalone Financial Statements reflect
the necessary information in this regard.

r. Events after the reporting period

If the Company receives information after
the reporting period, but prior to the date of
approved for issue, about conditions that
existed at the end of the reporting period, it
will assess whether the information affects
the amounts that it recognises in its separate
financial statements. The Company will
adjust the amounts recognised in its financial
statements to reflect any adjusting events
after the reporting period and update the
disclosures that relate to those conditions in

light of the new information. For non-adjusting
events after the reporting period, the Company
will not change the amounts recognised in
its separate financial statements but will
disclose the nature of the non-adjusting
event and an estimate of its financial effect, or
a statement that such an estimate cannot be
made, if applicable.

s. Government Grants

The Company recognizes government grants
only when there is reasonable assurance
that the conditions attached to them shall be
complied with and the grants will be received.
Grants related to assets are treated as
deferred income and are recognized as other
operating income in the Statement of profit
& loss on a systematic and rational basis over
the useful life of the asset. Grants related to
income are recognized on a systematic basis
over the periods necessary to match them
with the related costs which they are intended
to compensate and are deducted from the
expense in the statement of profit & loss.

When the Company receives grants of non¬
monetary assets, the asset and the grant
are recorded at fair value amounts and
released to profit or loss over the expected
useful life in a pattern of consumption of the
benefit of the underlying asset i.e. by equal
annual instalments.

Exports entitlements are recognised when
the right to receive credit as per the terms
of the schemes is established in respect of
the exports made by the Company and when
there is no significant uncertainty regarding
the ultimate collection of the relevant
export proceeds.

t. Earnings Per Share

Basic earnings per share is computed by
dividing the net profit for the period attributable
to the equity shareholders of the Company by
the weighted average number of equity shares
outstanding during the period. The weighted
average number of equity shares outstanding
during the period is adjusted for events such
as bonus issue, bonus element in a rights
issue, share split, and reverse share split
(consolidation of shares) that have changed
the number of equity shares outstanding,
without a corresponding change in resources.

For the purpose of calculating diluted
earnings per share, the net profit for the
period attributable to equity shareholders
and the weighted average number of shares
outstanding during the period is adjusted for
the effects of all dilutive potential equity shares.

u. Current and non-current classification

The Company segregates assets and liabilities
into current and non-current categories
for presentation in the balance sheet after
considering its normal operating cycle and
other criteria set out in Ind AS 1, "Presentation
of Financial Statements". For this purpose,
current assets and liabilities include the
current portion of non-current assets and
liabilities respectively. Deferred tax assets and
liabilities are always classified as non-current.

The operating cycle is the time between the
acquisition of assets for processing and their
realization in cash and cash equivalents. The
Company has identified period up to twelve
months as its operating cycle.

v. Dividend

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

w. Measurement of EBITDA

The Company presents Earnings before
Interest expense, Tax, Depreciation and
Amortisation (EBITDA) in the statement of
profit or loss; this is not specifically required
by Ind AS 1. The terms EBITDA are not defined
in Ind AS. Ind AS compliant Schedule III allows
companies to present Line items, sub-line
items and sub-totals shall be presented as
an addition or substitution on the face of the
Financial Statements when such presentation
is relevant to an understanding of the
company's financial position or performance or
to cater to industry/sector-specific disclosure
requirements or when required for compliance
with the amendments to the Companies Act or
under the Indian Accounting Standards.

Accordingly, the Company has elected to
present earnings before interest expense, tax,
depreciation and amortization (EBITDA) as a
separate line item on the face of the Statement
of Profit and Loss. The company measures
EBITDA on the basis of profit/ (loss) from
continuing operations. In its measurement,
the Company does not include depreciation
and amortization expense, finance costs and
tax expense, but includes other income.

x. Rounding of amounts

All amounts disclosed in the standalone
Financial Statements and notes have been
rounded off to the nearest Lakhs (with two
places of decimal) as per the requirement of
Schedule III, unless otherwise stated.

y. New and amendments standards

The Company applied for the first-time
certain standards and amendments, which
are effective for annual periods beginning on
or after 1 April 2025. The Company has not
early adopted any standard, interpretation
or amendment that has been issued but is
not yet effective.

Lack of exchangeability - Amendments to
Ind AS 21

The Ministry of Corporate Affairs has notified
amendments to Ind AS 21 The Effects of
Changes in Foreign Exchange Rates to specify
how an entity should assesswhether a currency
is exchangeable and how it should determine
a spot exchange rate when exchangeability
is lacking. The amendments also require
disclosure of information that enables users
of its financial statements to understand how
the currency not being exchangeable into
the other currency affects, or is expected to
affect, the entity's financial performance,
financial position and cash flows.

The amendments are effective for annual
reporting periods beginning on or after 1 April
2025. When applying the amendments, an
entity cannot restate comparative information.

The amendments do not have any material
impact on the Company's financial statements.

Classification of Liabilities as Current or
Non-current and Non-current Liabilities
with Covenants - Amendments to Ind AS 1

In August 2025, the MCA notified
amendments to paragraphs 69 to 76 of Ind AS
1 to specify the requirements for classifying
liabilities as current or non-current. The
amendments clarify:

• What is meant by a right to
defer settlement

• That a right to defer must exist at the end
of the reporting period

• That classification is unaffected by the
likelihood that an entity will exercise its
deferral right

• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability
not impact its classification

In addition, a requirement has been introduced
to require disclosure when a liability arising
from a loan agreement is classified as
non-current and the entity's right to defer
settlement is contingent on compliance with
future covenants within twelve months.

If there is a breach of a material covenant of a
long term loan arrangement on or before the
end of the reporting period, resulting in the
liability becoming payable on demand as at the
reporting date, and the lender agrees—after
the reporting period but before the financial
statements are approved for issue—not to
demand repayment for at least 12 months as
a consequence of the breach, this shall be
treated as an adjusting event. Accordingly,
the entity is not required to classify the
liability as current.

The amendments are effective for annual
reporting periods beginning on or after 1
April 2025 retrospectively in accordance
with Ind AS 8.

The amendments do not have any material
impact on the Company's financial statements.

Supplier Finance Arrangements -
Amendments to Ind AS 7 and Ind AS 107

In August 2025, the MCA notified amendments
to Ind AS 7 Statement of Cash Flows and Ind
AS 107 Financial Instruments: Disclosures
to clarify the characteristics of supplier
finance arrangements and require additional
disclosure of such arrangements. The
disclosure requirements in the amendments
are intended to assist users of financial
statements in understanding the effects
of supplier finance arrangements on an
entity's liabilities, cash flows and exposure to
liquidity risk.

The amendments do not have any material
impact on the Company's financial statements.

International Tax Reform—Pillar Two Model
Rules - Amendments to Ind AS 12

In August 2025, the MCA notified amendments
to Ind AS 12 Income Taxes in response to the
OECD's BEPS Pillar Two rules and include:

• A mandatory temporary exception to the
recognition and disclosure of deferred
taxes arising from the jurisdictional
implementation of the Pillar Two
model rules; and

• Disclosure requirements for affected
entities to help users of the financial
statements better understand an entity's
exposure to Pillar Two income taxes
arising from that legislation, particularly
before its effective date.

The mandatory temporary exception - the
use of which is required to be disclosed -
applies immediately. The remaining disclosure
requirements apply for annual reporting
periods beginning on or after 1 April 2025, but
not for any interim periods ending on or before
31 March 2026.

The amendments had no impact on the
Company's financial statements or the
Company's is not in the scope of the Pillar
Two Model Rules.

z. Standards notified but not yet effective

Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and
Non-current Liabilities with Covenants and
Ind AS 10 Events after the Reporting Period

Ind AS 10 has been amended to remove the
previous treatment under which a lender's
post reporting date waiver—granted before
the financial statements were approved for
issue—of a breach of a material covenant in
a long term loan arrangement that occurred
on or before the end of the reporting period,
resulting in the liability becoming payable on
demand at the reporting date, was regarded
as an adjusting event.

For annual reporting periods beginning on or
after 1 April 2026, any breach of a covenant—
whether material or immaterial—occurring on
or before the reporting date will, in accordance
with Ind AS 1, require the related liability to be
classified as current, unless the lender has
granted a waiver of the breach on or before
the reporting date and has agreed not to
demand repayment for at least 12 months
after the reporting date as a consequence of
the breach. Such a waiver shall be treated as
an adjusting event.

The amendments are effective for
annual reporting periods beginning on
or after 1 April 2026 retrospectively in
accordance with Ind AS 8.

Note:

(a) Refer Note No. 3.46 & 3.47 for information about fair value measurement and Note No. 3.63 for impairment
assessment of Investment in certain subsidiaries and associates.

(b) As at March 31, 2025, the Company had investments in equity shares of Brillare Science Limited ("Brillare"),
a wholly owned subsidiary, aggregating to H 4,122.59 lacs and outstanding loan including accrued interest
aggregating to H 618.65 lacs, which was convertible into zero coupon optionally convertible debentures of Brillare.

During the current year, the Company has further extended a loan of H 1,500 lacs to Brillare out of which
loan of H 1,000 lacs was convertible into zero coupon optionally convertible debentures of Brillare and loan of
H 500 lacs was convertible into equity shares of Brillare. Based on mutual agreement, the entire outstanding
loan receivable (including opening loan receivable) aggregating to H 2,153.36 lacs (including accrued interest)
has been converted into 71,13,830 equity shares of Brillare. Additionally, during the year, the Company has
made a further investment in equity shares of Brillare aggregating to H 1,100.01 lacs, resulting in the allotment of
36,34,000 equity shares of Brillare.

(c) As at March 31, 2025, the Company had investment in equity shares of Helios Lifestyle Limited ("Helios"), a wholly
owned subsidiary, aggregating to H 27,156.97 lacs.

Pursuant to the shareholder's agreement entered into in the previous year, a portion of the consideration payable
for acquisition of remaining stake in Helios was deferred and payable in three tranches, of which an amount of
H 5,921 lacs was outstanding as at March 31, 2025 and disclosed under "Other Financial Liabilities" (Refer Note 3.27).
During the current year, the Company has settled the aforesaid outstanding tranche amounting to H 5,921 lacs.

Further, as at March 31, 2025, the Company had an outstanding loan including accrued interest aggregating to
H 838.87 lacs, which was repayable in accordance with terms as specified in the agreement. Based on mutual
agreement, the entire outstanding loan receivable aggregating to H 855.07 lacs (including accrued interest) has
been converted into 6,768 equity shares of Helios.

(d) As at March 31, 2025, the Company had investment in equity share of Cannis Lupus Services India Private
Limited ("CLSIPL") amounting to H 218.99 lacs. As at the year ended March 31, 2026, considering the financial
performance of CLSIPL, the Company has performed impairment assessment and accounted an impairment loss
of H 136.09 lacs (March 31, 2025: H 748.28 lacs) based on the valuation done by an external valuer and disclosed
the same under "Other Expenses".

Further, as at March 31, 2025, the Company had investment in Compulsorily Convertible Preference Shares
("CCPS") amounting to H 499.89 lacs, which is convertible into equity shares at a price to be determined based on
performance of FY 2026-27 in accordance with the formula stipulated in the agreement. Also, there was a loan

outstanding amounting to H 409.01 lacs (including accrued interest) which was repayable in accordance with the
terms as specified in the agreement.

Further, the Company had extended a loan of H 400 lacs, which was convertible into CCPS/other instrument as
per the terms specified in the agreement. However, based on the mutual agreement, the opening outstanding
loan (including accrued interest) as well as the principal portion of the loan given during the year have been
converted into 42,00,910 Class A Optionally Convertible Debentures and 40,00,000 Class B Optionally Convertible
Debentures, respectively. Additionally, the Company has made a further investment of H 400 lacs in 40,00,000
Class B Optionally Convertible Debentures of CLSIPL. The Company has received interest on loan amounting to H
400 lacs given during the year.

As per the terms of the OCDs, the Company has an option to convert Class A OCDs and Class B OCDs into fully
paid-up equity shares during FY 2026-27 and FY 2027-28, respectively, at a conversion price to be determined
in accordance with the formula stipulated in the agreement.

These OCDs are carried at fair value as at March 31, 2026.

(e) As at March 31, 2025, the Company had investment in equity shares of 'Axiom Ayurveda Private Limited ("AAPL"),
Axiom Food & Beverages Private Limited ("AFBPL") and Axiom Packwell Private Limited ("APPL")' (together refer
to as "Axiom") aggregating H 10,686.50 lacs.

Further, the Company also has a right to make further investments in Axiom, the fair value of which has been
assessed at H 3,113.90 lakhs as at the reporting date. Also Refer Note No. 3.47 and 3.65.

As at the year ended March 31, 2026, considering the financial performance of Axiom, the Company has performed
impairment assessment and accounted for an impairment loss of H 2,352.92 lacs (March 31, 2025 - H 269.64 lacs)
based on valuation done by an external valuer and disclosed the same under "Other Expenses".

(f) Equity instruments designated at fair value through other comprehensive income (FVOCI) include investments
in equity shares of Emami Paper Mills Limited. The Company holds non-controlling interest in Emami Paper Mill
Limited. This investment was irrevocably designated at fair value through OCI as the Company considers this
investment to be strategic in nature.

(g) Investments designated at fair value through other comprehensive income (FVOCI) include investments in
Exchange Traded Funds (ETFs) relating to gold and silver. These investments have been designated as hedging
instruments under a cash flow hedge relationship in accordance with the applicable accounting standards.
Accordingly, they are carried at fair value as at the reporting date, and changes in fair value are recognised in
other comprehensive income.

(ii) The Company has given loan amounting to H 300 lacs to Cannis Lupus Services India Private Limited,
its associate for working capital purpose which is repayable within a specified tenure from the date of
disbursement. The above loan carries interest rate of 9% per annum.

(iii) The Company has given loan amounting to H Nil, net of provision H 470.68 Lacs (including accrued interest
H 43.61 lacs) to Emami Lanka (Pvt) Ltd., its Wholly owned subsidiary for working capital purpose which is
repayable in FY 2026-27 as per the renewed/revised agreement.

(b) Refer Note No. 3.42 for related disclosures.

(c) Refer Note No. 3.46 for information about fair value measurement.

(a) Refer Note No. 3.24 for information on receivables secured against borrowings.

(b) No trade receivable are due from directors or other officers of the company either severally or jointly with any
other person. Further, no trade receivable are due from firms or private companies respectively in which any
director is a partner, a director or a member.

(c) Refer Note No. 3.52 for information about credit risk and foreign currency risk

(d) Refer Note No. 3.54 for information on receivables from related parties.

(e) Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.

(f) There are no unbilled receivables, hence the same is not disclosed in the ageing schedule.

(b) Terms and Rights attached to equity shares

The Company has only one class of equity shares having a par value of H 1 per share. Each holder of equity shares
is entitled to one vote per share. The Company declares & pays dividend in Indian Rupees. The dividend proposed
by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting
and is accounted for in the year in which it is approved by the shareholders in the general meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the
number of equity shares held by the shareholders.

3.18 EQUITY SHARE CAPITAL (Contd..)

(d) Equity shares movement during 5 years preceding March 31, 2026
Equity shares extinguished on buy-back

The Company bought back 46,50,000 equity shares for an aggregate amount of H 22,909.70 lacs being 1.05%
of the pre-buyback total paid up equity share capital at H 491.68 average cost per equity share. The Buyback
commenced on April 13, 2023 and got completed on July 06, 2023.

The Company bought back 33,63,740 equity shares for an aggregate amount of H 16,121.45 lacs being 0.76%
of the pre-buyback total paid up equity share capital at H 479.27 average cost per equity share. The Buyback
commenced on February 09, 2022 and got completed on March 21, 2022.

Nature and purpose of reserves
General Reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at
a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that
if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then
the total dividend distribution is less than the total distributable results for that year. Consequent to introduction
of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general
reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only
in accordance with the specific requirements of Companies Act, 2013.

Capital Reserve

Capital Reserve has been primarily created on amalgamation in earlier years.

Retained Earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general
reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain)
on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

Other Comprehensive Income

This Reserve represents

a. The cumulative gains (net of losses) arising on the revaluation of Equity Instruments measured at Fair Value
through Other Comprehensive Income, net of amounts reclassified, if any, to Retained Earnings when those
instruments are disposed of.

b. The cumulative effective portion of gains or losses arising on changes in fair value of hedging instruments
entered into for cash flow hedges, which is recognised in OCl and later reclassified to statement of profit and
loss when the hedge item affects profit or loss or treated as basis adjustment if a hedged forecast transaction
subsequently results in the recognition of a non-financial asset or non-financial liability.

Capital Redemption Reserve (CRR)

Represents the nominal value of Equity shares bought back pursuant to Buyback in accordance with Section 69 of
the Companies Act, 2013.

3.24 BORROWINGS (Contd..)

Notes :

1. Interest Rate on Cash Credit (including working capital demand loan) is 7.05% (March 31, 2025 : 8.34%)

2. Borrowings from banks has not been used for the purpose other than for which it was taken as at March 31, 2026
and March 31, 2025.

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

3.38 Defined Benefit Plan (Gratuity) :

(i) The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The Gratuity
Plan provides a lump sum payments to vested employees at retirement, death, incapacitation or termination of
employment, of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on
completion of 5 continuous years of service as per Indian law. However, no vesting condition applies in case of death.

The Company makes contributions to Himani Limited Gratuity Fund, J.B.Marketing and Services Employees
Gratuity Fund, Zandu Pharmaceuticals Employees Gratuity Fund, Kemco Chemicals Employees Gratuity Fund
and Other Funds, which is funded defined benefit plan for qualifying employees.

(v) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount
rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on
reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all
other assumptions constant. The results of sensitivity analysis is given below:

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.

(vi) Effect of Plan on Entity's Future Cash Flows

a) Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every
year, the insurance company carries out a funding valuation based on the latest employee data provided by the
Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

Valuations are performed on certain basic set of pre determined assumptions and other regulatory frame work
which may vary over time. Thus, the Company is exposed to various risks in providing the above gratuity benefit
which are as follows:

Interest Rate Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will
result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the
value of the liability (as shown in financial statements).

Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity pay outs. This may
arise due to non availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not
being sold in time.

Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary
increase rate of plan participants in future. Deviation in the rate of increase of 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.

Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability.
The Company is exposed to the risk of actual experience turning out to be worse compared to the assumptions
considered for the valuation.

Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Code on Social Security,
2020 (as amended from time to time) or relevant applicable statute of respective foreign subsidiaries. The Group
is exposed to any changes to the regulations.

Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of assets,
exposing the Company to market risk for volatilities/fall in interest rate.

Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any
particular investment.

3.39 Defined Benefit Plan (Provident Fund):

(i) In respect of certain employees, provident fund contributions are made to a Trust administered by the Company.

The defined benefit obligation arises from the possibility that during any time period in the future, the scheme may earn
insufficient investment income to meet the guaranteed interest rate declared by government/EPFO/relevant authorities.

Valuations are performed on certain basic set of pre determined assumptions and other regulatory frame work
which may vary over time. Thus, the Company is exposed to various risks in providing the above PF benefit which
are as follows:

Interest Rate Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will
result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the
value of the liability (as shown in financial statements).

Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity pay outs. This may
arise due to non availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not
being sold in time.

Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability.
The Company is exposed to the risk of actual experience turning out to be worse compared to the assumptions
considered for the valuation.

Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of assets,
exposing the Company to market risk for volatilities/fall in interest rate.

Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any
particular investment.

PF Interest Rate Risk: The PF Interest Rate to be given to the employees is declared by the Government/EPFO.
The same should be honoured by the Company/PF Trust. There is a risk that the yield expected to be earned
on the investments is lower than the PF interest rate declared by the government (or EPFO) which results in
shortfall / deficit.

(b) EPCG Commitments : The Company had procured capital goods under the Export Promotion Capital Goods
Scheme of the Government of India, at a concessional rate of customs duty / excise on an undertaking
to fulfil quantified export obligation within the specified periods, failing which, the Company has to make
payment to the Government of India equivalent to the duty benefit enjoyed along with interest. Related
export obligation to be met is H 114.98 Lacs (March 31, 2025 - H 114.98 Lacs). In addition, the Company needs
to maintain the average annual export turnover of H 10,257.45 Lacs to meet the above export obligation. The
Company is confident that the above export obligation will be met during the specified period.

(c) Other Commitments : The Company has ongoing commitment to extend financial support to its wholly-
owned subsidiary Emami Lanka (Pvt) Ltd., Srilanka, Helios Lifestyle Limited and Brillare Science Limited. The
future cash flow in respect of the above cannot be ascertained at this stage.

The Company has not disclosed fair value of financial assets/liabilities such as cash and cash equivalents, other bank
balances, trade receivables and trade payables because their carrying amounts are a reasonable approximation of the
fair values due to their short term nature.

The Company has not disclosed fair value of Lease Liability as per Ind AS 107.

Investment in equity shares of subsidiaries and associates which are carried at cost and hence are not required
to be disclosed as per Ind AS 107 "Financial Instruments Disclosures". Hence, the same have been excluded from
the above table.

3.47 Fair Value hierarchy

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date.

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

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

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as
of March 31, 2026 & March 31, 2025 :

The fair value of financial instruments that are not traded in an active market is determined using market approach
and valuation techniques which maximise the use of observable market data and rely as little as possible on entity-
specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is
included in Level 2.

There has been no change in the valuation methodology for Level 3 inputs during the year. There were no transfers
between Level 1 and Level 2 during the year.

One of the manufacturing facilities of the Company is eligible for tax benefits under Section 80IE of the Income-tax
Act, 1961 up to FY 2025-26, resulting in the Company being subject to Minimum Alternate Tax (MAT) under Section
115JB based on book profits. Based on projections of future taxable profits, the Company has recognised MAT credit
entitlement aggregating to H61,837.64 lakhs as at March 31, 2026 (March 31, 2025: H53,421.21 lakhs), including
H8,416.43 lakhs recognised during the year.

The Taxation Laws (Amendment) Act, 2019 provides domestic companies an option to opt for a reduced tax rate subject
to specified conditions. The utilisation of MAT credit is dependent on generation of sufficient taxable profits within
the prescribed period. Based on management's assessment of future profitability and considering the provisions of
the Finance Act, 2026, management is reasonably certain, supported by underlying projections, that the recognised
MAT credit will be realised, including credits accumulated up to FY 2025-26 which continue to remain eligible for

3.48 Income Taxes (Contd..)

set-off under the new tax regime, subject to applicable limitations. Accordingly, the Company will exercise the option
under Section 115BAA from the next financial year. Consequent to the change in applicable tax rate, the Company
has remeasured its deferred tax assets as at March 31, 2026 in accordance with Ind AS 12, and the impact has been
appropriately recognised in the financial statements.

3.50 Leases

Company as a Lessee

The Company has lease contracts for Warehouse and office spaces used in its operations. These generally have
lease terms between 1 to 5 years. The Company's obligations under its leases are secured by the lessor's title to
the leased assets.

Company as a Lessor

The Company has entered into commercial property leases on its investment property portfolio. The Company has
determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not
constituting a major part of the economic life of the commercial property and the present value of the minimum lease
payments not amounting to substantially all of the fair value of the commercial property, that it retains substantially all
the risks and rewards incidental to ownership of these properties and accounts for the contracts as operating leases.

The Company is not having any minimum rental receivables under non-cancellable operating lease as on March 31,
2026 and March 31, 2025 respectively.

3.51 Capital Management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all
other equity reserves. The primary objective of the Company's capital management is to maximise 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. 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 plus net debt. The Company's policy is to keep the
gearing ratio upto 15%. Net debt is defined as current and non-current borrowings (including current maturity of long
term debt and interest accrued and excluding lease liabilities) less cash and cash equivalents.

Financial Risk Factors

The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company's
focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its
financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative
financial instruments to mitigate foreign exchange related risk exposures.

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.
Financial instruments affected by market risk include loans and borrowings, deposits, debt and equity investments
and derivative financial instruments.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. In order to balance the Company's position with regards to interest income and
interest expense and to manage the interest rate risk, treasury performs comprehensive interest rate risk management.
The Company is not exposed to significant interest rate risk as at the respective reporting dates.

Foreign Currency Risk

The Company operates both in domestic market and internationally and consequently the Company is exposed
to foreign exchange risk through its sales in overseas countries, and purchases from overseas suppliers in
foreign currencies.

Commodity Price Risk

The Company is affected by the price volatility of its key raw materials. Its operating activities requires a continuous
supply of key material for manufacturing of hair oil, cream, balm and other products. The Company's procurement
department continuously monitor the fluctuation in price and take necessary action to minimise its price risk exposure.

Security Price Risk

Securities price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in
market traded prices.

The Company invests its surplus funds in various mutual funds, debt instruments and equity instruments. These
comprise of mainly liquid schemes of mutual funds, Alternate Investment Funds, Non-Convertible Debentures,

Commercial papers and Exchange traded funds. To manage its price risk arising from investments in mutual funds,
the Company diversifies its portfolio. Mutual fund and equity investments are susceptible to market price risk, mainly
arising from changes in the interest rates or market yields which may impact the return and value of such investments.

The Company's exposure to securities price risk arises from investments in mutual funds, Alternate Investment Funds,
Non-Convertible Debentures and Commercial papers held by the Company and classified in the Balance Sheet as fair
value through profit or loss / fair value through other comprehensive income is disclosed under Note No. 3.5 & 3.11

Credit Risk

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 amounting to H 18,950.48 Lacs and
H 28,467.34 Lacs as at March 31, 2026 and March 31, 2025, respectively. Trade receivables includes both secured and
unsecured receivables and are derived from revenue earned from domestic and overseas customers . Credit risk has
always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of customers to which the Company grants credit terms in the normal course of business. An
impairment analysis is performed at each reporting date on an individual basis based on historical data of credit losses.

No customer individually accounted for more than 10% of the revenues from external customers during the year
ended March 31, 2026 and March 31, 2025.

Liquidity Risk

The Group's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from
operations as well as investment in mutual funds and Commercial papers. The Group believes that the working capital
is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

Terms and conditions of transactions with related parties

The sales and purchases from related parties are made on terms equivalent to those that prevail in arm's
length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement
occurs in cash.

Refer Note No. 3.5, 3.6 & 3.15 for terms & conditions pertaining to investment made and loan given to subsidiaries
and associates.

Note 1 - The Company has investments, loans, trade receivables and guarantees given with respect to its
wholly owned subsidiary viz. Emami Lanka (Pvt) Limited. During the current year, the Company had performed
an impairment assessment in connection with the total exposure in Emami Lanka (Pvt) Limited by examining its
financial position and impaired its Loan receivable, Interest receivables, Trade receivables aggregating H 673.41 Lacs.

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates
and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent
assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during
the period. These estimates and associated assumptions are based on historical experience and management's best
knowledge of current events and actions the Company may take in future.

Information about critical estimates and assumptions that have a significant risk of causing material adjustment to
the carrying amounts of assets and liabilities are included in the following notes:

Judgements

i) Estimation of defined benefit obligations

The liabilities of the Company arising from employee benefit obligations and the related current service cost,
are determined on an actuarial basis using various assumptions Refer Note No. 3.38 and 3.39 for significant
assumption used.

ii) Estimation of tax expenses, assets and payable

Deferred tax assets are recognised for unused tax credit and on unused losses to the extent that it is probable
that taxable profit will be available against which the losses can be utilised. Significant management judgement
is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing
and the level of future taxable profits together with future tax planning strategies.

The ultimate realisation of deferred income tax assets is dependent upon the generation of future taxable income
during the periods in which the temporary differences become deductible. Management considers the scheduled
reversals of deferred tax liabilities and the projected future taxable income in making this assessment. Based on
the level of historical taxable income and projections for future taxable income over the periods in which the
deferred income tax assets are deductible, management believes that the Company will realise the benefits of
those deductible differences. The amount of the deferred income tax assets considered realisable, however,
could be reduced in the near term if estimates of future taxable income during the carry forward periods are
reduced. Refer Note No. 3.8 and 3.48.

iii) Estimation of provisions and contingencies

Provisions are liabilities of uncertain amount or timing recognised where a legal or constructive obligation
exists at the balance sheet date, as a result of a past event, where the amount of the obligation can be reliably
estimated and where the outflow of economic benefit is probable. Contingent liabilities are possible obligations
that may arise from past event whose existence will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events which are not fully within the control of the company. The Company
exercises judgement in recognizing the provisions and assessing the exposure to contingent liabilities relating to
pending litigations. Judgement is necessary in assessing the likelihood of the success of the pending claim and
to quantify the possible range of financial settlement. Due to this inherent uncertainty in the evaluation process,
actual losses may be different from originally estimated provision. Refer Note No. 3.29, 3.40 and 3.43.

iv) Estimation of expected useful lives and residual values of property, plants and equipment and intangible assets.

Property, plant and equipment and intangible assets are depreciated/ amortized at historical cost using straight¬
line method based on the estimated useful life, taking into account residual value. The asset's residual value and
useful life are based on the Company's best estimates and reviewed, and adjusted if required, at each Balance
Sheet date. Refer Note No. 3.1, 3.2, 3.3 & 3.4.

v) Impairment of non financial assets / investment in subsidiaries and associates

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal
calculation is based on available data from binding sales transactions, conducted at arm's length, for similar
assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation
is based on a DCF model. In respect of investments in subsidiaries and associates, the equity value is determined

using a blended valuation approach, assigning equal weight to the Discounted Cash Flow (DCF) method and
Comparable Trading Multiple (CTM) method. The carrying amounts of the Company's non-financial assets /
investment in subsidiaries and associates are reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, then the recoverable amounts of cash-generating units
have been determined based on value in use calculations. These calculations require the use of estimates such
as discount rates and growth rates.

vi) Fair Value Measurements

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair values are measured using valuation techniques which involve
various judgements and assumptions that may differ from actual developments in the future. For further details
refer Note No. 3.47

vii) Lease Accounting

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgment. The Company uses significant judgement in assessing
the lease term (including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods
covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and
periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that
option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to
exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic
incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate
the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or
for a portfolio of leases with similar characteristics.

The Company has considered leases with term up to 12 (Twelve) months as short-term leases. Such short term
leases are accordingly excluded from the scope for the purpose of Ind AS 116 reporting. Refer Note No. 3.4,
3.20, 3.25 & 3.50.

viii) Revenue recognition - Estimating variable consideration for returns and rebates

The Company estimates variable considerations to be included in the transaction price for the sale of goods with
rights of return and volume rebates.

The Company developed a statistical model for forecasting sales returns, damage returns and rebates. The model
used the historical return data to come up with expected return percentages. These percentages are applied to
determine the expected value of the variable consideration.

The Company updates its assessment of expected returns and rebates quarterly and the refund liabilities are
adjusted accordingly. Estimates of expected returns and rebates are sensitive to changes in circumstances
and the Company's past experience regarding returns and rebate entitlements may not be representative of
customers' actual returns and rebate entitlements in the future. Refer Note No. 3.29, 3.31, 3.58 & 3.59.

ix) Inventory Overhead

The valuation of inventories involves judgment in the allocation of overheads, particularly fixed production
overheads. The allocation is based on the normal capacity of the production facilities. Management reviews the
basis and method of overhead absorption periodically to ensure that inventory is not over- or under-valued.

Estimation of normal capacity requires judgment based on past trends, forecasted production, seasonal factors,
and management's operational plans. Any deviation from these estimates may impact the cost of inventories
and, consequently, the profit or loss of the Company.

3.57 The Company has disclosed geographical segment information in the consolidated financial statements which
are presented in the same financial report. Accordingly, in terms of Paragraph 4 of Ind AS 108 'Operating Segments', no
disclosures related to segments are presented in this standalone financial statements. The Chief Operating Decision
Maker ("CODM") evaluates the Company's performance and allocates resources based on an analysis of various
performance indicators considering a single business segment. The CODM reviews revenue and profit from operations
as the performance indicator considering a single business segment.

3.61 The Company has used accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded
in the software, except that audit trail feature was not enabled at database level for the accounting software.
Further no instance of audit trail feature being tampered with was noted in respect of software. Additionally at
the application level, the audit trail of prior year has been preserved as per the statutory requirements for record
retention to the extent it was enabled and recorded in the respective years. The Company is planning to transition
to an upgraded SAP version and will ensure that the feature is enabled in that version as per the requirements.

3.62 On November 21, 2025, the Government of India notified provisions of 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 referred to as the 'New Labour Codes') which consolidate twenty nine existing
labour laws into a unified framework governing employee benefits during employment and postemployment.
The Company has assessed and disclosed the incremental impact of these changes on the basis of the best
information available, consistent with the guidance provided by the Institute of Chartered Accountants of India.
Considering the impact arising out of an enactment of the new legislation is an event of non-recurring nature,
the Company has presented this incremental impact aggregating H 1,014.84 lacs (Gratuity : H 790.58 lacs and
Leave Encashment : H 224.26 lacs) consisting of certain employee benefits primarily arising due to change in
wage definition under "Exceptional Item" in the audited standalone financial statement for the year ended March
31, 2026. The Company continues to monitor the developments pertaining to the implementation of the New
Labour Codes, including related rules there to and the impact of these will be accounted in accordance with
applicable accounting standards.

3.63 Impairment assessment of Investment in certain subsidiaries and associates.

a) Helios Lifestyle Limited (Refer Note 3.5)

The Company treats Helios Lifestyle Limited as one cash generating unit. The carrying amount of investment is
reviewed annually to determine whether there is any indication of impairment. The testing is done by applying
a blended valuation methodology, assigning equal weight to the Discounted Cash Flow (DCF) method and
the Comparable Transactions Method (CTM). The Valuer has considered the financial forecasts for the years
FY 2027-31 (Previous Year: 2026-31). The projected Average annual increase in Revenue from operation during
the forecast period is 26.72% (March 31, 2025: 26.77%). The growth rate used for extrapolation of cash flows
beyond the forecast period is 5% (March 31, 2025: 5%). The rate used to discount the forecasted cash flows is 17%
(March 31, 2025: 18%). Basis the assessment, there is no impairment in investment that needs to be recognised
in current financial year.

b) Brillare Science Limited (Refer Note 3.5)

The Company treats Brillare Science Limited as one cash generating unit. The carrying amount of investment is
reviewed annually to determine whether there is any indication of impairment. The testing is done by applying the
Discounted Cash Flow (DCF) method. The Valuer has considered the financial forecasts for the years FY 2027-31
(Previous Year: 2026-31). The projected Average annual increase in Revenue from operation during the forecast
period is 33.50% (March 31, 2025: 30.45%). The growth rate used for extrapolation of cash flows beyond the
forecast period is 5% (March 31, 2025: 5%). The rate used to discount the forecasted cash flows is 17% (March
31, 2025: 18.50%). Basis the assessment, there is no impairment in investment that needs to be recognised in
current financial year.

c) Axiom Group (Refer Note 3.5)

The Company treats Axiom Group as one cash generating unit. The carrying amount of investment is reviewed
annually to determine whether there is any indication of impairment. The testing is done by applying a blended
valuation methodology, assigning equal weight to the Discounted Cash Flow (DCF) method and the Comparable
Transactions Method (CTM). The Valuer has considered the financial forecasts for the years FY 2027-31 (Previous
Year: 2026-30). The projected Average annual increase in Revenue from operation during the forecast period is
25% (March 31, 2025: 37.75%). The growth rate used for extrapolation of cash flows beyond the forecast period
is 5%(March 31, 2025: 5%). The rate used to discount the forecasted cash flows is 16.5%(March 31, 2025: 18.5%).
Based on such assessment, the Company has accounted for an impairment loss amounting to H 2,352.92 lacs in
the current financial year.

d) Cannis Lupus Services India Pvt. Ltd. (Refer Note 3.5)

The Company treats Cannis Lupus Services India Pvt. Ltd. as one cash generating unit. The carrying amount of
investment is reviewed annually to determine whether there is any indication of impairment. The testing is done
by applying a blended valuation methodology, assigning equal weight to the Discounted Cash Flow (DCF) method
and the Comparable Transactions Method (CTM). The Valuer has considered the financial forecasts for the years
FY 2027-32 (Previous Year: 2026-31). The projected Average annual increase in Revenue from operation during
the forecast period is 35.12% (March 31, 2025: 83.90%). The growth rate used for extrapolation of cash flows
beyond the forecast period is 5% (March 31, 2025: 5%). The rate used to discount the forecasted cash flows is
20% (March 31, 2024: 21%). Based on such assessment, the Company has accounted for an impairment loss
amounting to H 136.09 lacs in the current financial year.

3.64 Subsequent to the year ended 31 March 2026, the Company has entered into a Share Subscription and Purchase
Agreement to acquire 60% stake (on a fully diluted basis) in IncNut Digital Pvt. Ltd. ("IncNut"), along with its
subsidiary at an aggregate consideration of up to H 321 crores.

3.65 Subsequent to the year ended 31 March 2026, the Emami Limited ("Emami" or "the Company") has executed a
definitive Share Purchase Agreement ("SPA") to acquire the remaining 73.5% stake in Axiom Ayurveda Pvt. Ltd.
("Axiom") an associate company (existing stake 26.5%) subject to customary closing conditions, for an aggregate
consideration upto H20,000 Lacs.

On 01 April 2026, pursuant to SPA executed between Emami and the existing Promoters and Shareholders of
Axiom, Emami has acquired 36.7% equity share capital of Axiom from its shareholders upon completion of first
tranche of the transaction. Consequent to the above transaction, Axiom has become a subsidiary of Emami
Limited w.e.f. 01 April 2026.

3.66 Other Statutory Information's

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.

(ii) The Company has two Core Investment Companies which are registered with the Reserve Bank of India and One
Core Investment Company which is not required to be registered with the Reserve Bank of India.

(iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

(a) directly or indirectly lend or invest in other person 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

(v) The Company have 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,

(vi) 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.

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

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

(ix) There are no events or transactions after the reporting period which is required to be disclosed under Ind AS 10
other than that disclosed in respective notes.

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

(xi) Quarterly returns or statements of current assets filed by the Company with the banks in connection with the
working capital limit sanctioned are in agreement with the books of accounts.