2.9 Provisions (other than employee benefits)

A provision is recognized if, as a result of a past
event, the Company has a present obligation that
can be estimated reliably, and it is probable that
an outflow of economic benefits will be required
to settle the legal or contractual obligation.
Provisions are determined by discounting the
expected future cash flows (representing the
best estimate of the expenditure required to
settle the present obligation at the Standalone
Balance Sheet date) at a pre-tax rate that reflects
current market assessments of the time value
of money and the risks specific to the liability.
The unwinding of the discount is recognised as
finance cost. Expected future operating losses
are not provided for.

Contingencies

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

2.10 Revenue recognition

Revenue from contracts with customers

Revenue from contracts with customers is
recognised when control of the goods or
services are transferred to the customer, at an
amount that reflects the consideration to which
the Company expects to be entitled in exchange
for those goods or services. The Company has
generally concluded that it is the principal in
its revenue arrangements because it typically
controls the goods or services before transferring
them to the customer.

a) Revenue from the sale of product is
recognized upfront at the point in time when
the product is delivered to the customer.
Revenue is measured based on the
transaction price, which is the consideration,
adjusted for volume discounts, price
concessions and incentives, if any, as
specified in the contract with the customer.
Revenue also excludes taxes collected
from customers.

b) Revenue from services is recognized in
accordance with the terms of contract when
the services are rendered and the related
costs are incurred and the balance amount
is recognised as deferred revenue.

c) Revenue from membership fees is
recognised over the period of membership.

Contract balances
Trade receivables

A receivable represents the Company's right to
an amount of consideration that is unconditional
(i.e., only the passage of time is required
before payment of the consideration is due).
Refer to accounting policies of financial assets
in financial instrument - initial recognition and
subsequent measurement.

Contract liabilities

A contract liability is the obligation to transfer
goods or services to a customer for which
the Company has received consideration (or
an amount of consideration is due) from the
customer. If a customer pays consideration
before the Company transfers goods or services
to the customer, a contract liability is recognised

when the payment is made or the payment is
due (whichever is earlier). Contract liabilities
are recognised as revenue when the Company
performs under the contract.

2.11 Government grants

Government grants are recognised initially as
deferred income at fair value when there is
reasonable assurance that they will be received
and the Company will comply with the conditions
associated with the grant; they are then
recognised in profit or loss as other operating
revenue on a systematic basis. Grants related to
the acquisition of assets are recognised in profit
or loss as other income on a systematic basis
over the useful life of the asset.

Grants that compensate the Company for
expenses incurred are recognised in profit or
loss as other operating revenue on a systematic
basis in the periods in which such expenses
are recognised.

2.12 Employee benefits

The Company's obligation towards various
employee benefits has been recognised as follows:

i. Short-term employee benefits

Short-term employee benefit obligations are
measured on an undiscounted basis and are
expensed as the related service is provided.
A liability is recognised for the amount expected
to be paid e.g., under short-term cash bonus, if
the Company has a present legal or constructive
obligation to pay this amount as a result of past
service provided by the employee, and the
amount of obligation can be estimated reliably.

ii. Share based payment transactions

The grant date fair value of equity settled
share-based payment awards granted to
employees is recognised as an employee
expense, with a corresponding increase in
equity, over the period that the employees
unconditionally become entitled to the awards.
The amount recognised as expense is based
on the estimate of the number of awards for
which the related service and nonmarket vesting
conditions are expected to be met, such that the
amount ultimately recognised as an expense is
based on the number of awards that do meet

the related service and non-market vesting
conditions at the vesting date. For share-based
payment awards with non-vesting conditions, the
grant date fair value of the share-based payment
is measured to reflect such conditions and there
is no true-up for differences between expected
and actual outcomes. If the entity elects to settle
in cash, the cash payment shall be accounted for
as the repurchase of an equity interest, i.e. as a
deduction from equity

iii. Defined contribution plans

A defined contribution plan is a post-employment
benefit plan under which an entity pays fixed
contributions into a separate entity and will have
no legal or constructive obligation to pay further
amounts. The Company makes specified monthly
contributions towards Government administered
provident fund scheme. Obligations for
contributions to defined contribution plans are
recognised as an employee benefit expense
in profit or loss in the periods during which the
related services are rendered by employees.

Prepaid contributions are recognised as an asset
to the extent that a cash refund or a reduction in
future payments is available.

iv. Defined benefit plans

A defined benefit plan is a post-employment
benefit plan other than a defined contribution
plan. The Company's net obligation in respect
of defined benefit plans is calculated separately
for each plan by estimating the amount of future
benefit that employees have earned in the current
and prior periods, discounting that amount and
deducting the fair value of any plan assets.

The calculation of defined benefit obligation is
performed annually by a qualified actuary using
the projected unit credit method.

Remeasurements of the net defined benefit
liability, which comprise actuarial gains and losses,
the return on plan assets (excluding interest) and
the effect of the asset ceiling (if any, excluding
interest), are recognised in OCI. The Company
determines the net interest expense (income)
on the net defined benefit liability (asset) for the
period by applying the discount rate used to
measure the defined benefit obligation at the
beginning of the annual period to the then-net

defined benefit liability (asset), taking into
account any changes in the net defined benefit
liability (asset) during the period as a result of
contributions and benefit payments. Net interest
expense and other expenses related to defined
benefit plans are recognised in profit or loss.

When the benefits of a plan are changed or
when a plan is curtailed, the resulting change in
benefit that relates to past service (‘past service
cost' or ‘past service gain') or the gain or loss on
curtailment is recognised immediately in profit or
loss. The Company recognises gains and losses
on the settlement of a defined benefit plan when
the settlement occurs.

The group treats accumulated leave expected
to be carried forward beyond twelve months, as
long-term employee benefit for measurement
purposes. Such long-term compensated
absences are provided for based on the actuarial
valuation using the projected unit credit method
at the reporting date. Actuarial gains/losses are
immediately taken to the Standalone Statement
of Profit and Loss and are not deferred.
The obligations are presented as current

liabilities in the Standalone Balance Sheet if the
entity does not have an unconditional right to
defer the settlement for at least twelve months
after the reporting date.

v. Other long-term employee benefits

The Company's net obligation in respect

of long-term employee benefits other than
post-employment benefits is the amount of
future benefit that employees have earned in
return for their service in the current and prior
periods; that benefit is discounted to determine
its present value, and the fair value of any related
assets is deducted. The obligation is measured
on the basis of an annual independent actuarial
valuation using the projected unit credit method.
Remeasurements gains or losses are recognised
in profit or loss in the period in which they arise.

vi. Termination benefits

Termination benefits are expensed at the earlier
of when the Company can no longer withdraw
the offer of those benefits and when the
Company recognizes costs for a restructuring.
If benefits are not expected to be settled wholly

within 12 months of the reporting date, then they
are discounted.

2.13 Foreign currency

Foreign currency transactions

Transactions in foreign currencies are translated
into the functional currencies of Company at the
exchange rates at the dates of the transactions or
an average rate if the average rate approximates
the actual rate at the date of the transaction.

Monetary assets and liabilities denominated
in foreign currencies are translated into the
functional currency at the exchange rate at
the reporting date. Non-monetary assets and
liabilities that are measured at fair value in a
foreign currency are translated into the functional
currency at the exchange rate when the fair
value was determined. Non-monetary assets and
liabilities that are measured based on historical
cost in a foreign currency are translated at the
exchange rate at the date of the transaction.
Exchange differences are recognised in
profit or loss.

2.14 Leases

The company assesses at contract inception
whether a contract is, or contains a, lease. That is
if the contract conveys the right to control the
use of an identified asset for a period of time in
exchange of consideration.

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except
for short-term leases and leases of low-value
assets. The Company recognises lease
liabilities to make lease payments and right-of-
use assets representing the right to use the
underlying assets.

i) Right of use asset

The Company recognises right-of-use assets
at the commencement date of the lease (i.e.,
the date the underlying asset is available
for use). Right-of-use assets are measured
at cost, less any accumulated depreciation
and impairment losses, and adjusted for any
re-measurement of lease liabilities. The cost
of right-of-use assets includes the amount
of lease liabilities recognised, initial direct

costs incurred, and lease payments made at
or before the commencement date less any
lease incentives received. Right-of-use assets
are depreciated on a straight-line basis
over the shorter of the lease term and the
estimated useful lives of the assets.

ii) Lease liabilities

At the commencement date of the lease,
the company recognizes lease liabilities
measured at the present value of the lease
payment to be made over the lease term.
The lease payments include fixed payments
(including in substance fixed payments) less
any lease incentives receivable, variable
lease payments that depend on an index
or a rate, and amounts expected to be paid
under residual value guarantees. The lease
payments also include the exercise price of
a purchase option reasonably certain to be
exercised by the Company and payments
of penalties for terminating the lease, if the
lease term reflects the Company exercising
the option to terminate. Variable lease
payments that do not depend on an index
or a rate are recognised as expenses (unless
they are incurred to produce inventories) in
the period in which the event or condition
that triggers the payment occurs.

In calculating the present value of lease
payments, the Company uses its incremental
borrowing rate at the lease commencement
date because the interest rate implicit in the
lease is not readily determinable. After the
commencement date, the amount of lease
liabilities is increased to reflect the accretion
of interest and reduced for the lease
payments made. In addition, the carrying
amount of lease liabilities is remeasured if
there is a modification, a change in the lease
term, a change in the lease payments (e.g.,
changes to future payments resulting from a
change in an index or rate used to determine
such lease payments) or a change in the
assessment of an option to purchase the
underlying asset

iii) Short-term leases and leases of low value
assets

The Company applies the short-term lease
recognition exemption to its short-term

leases (i.e., those leases that have a lease
term of 12 months or less from the
commencement date and do not contain
a purchase option). It also applies the lease
of low value assets recognition exemption
to leases of assets that are considered to be
low value. Lease payments on short-term
leases and leases of low value assets are
recognised as expense on a straight-line
basis over the lease term.

Company as a lessor

At inception or on modification of a contract
that contains a lease component, the Company
allocates the consideration in the contract to
each lease component on the basis of their
relative stand-alone prices.

When the Company acts as a lessor, it determines
at lease inception whether each lease is a finance
lease or an operating lease.

To classify each lease, the Company makes an
overall assessment of whether the lease transfers
substantially all of the risks and rewards incidental
to ownership of the underlying asset. If this is the
case, then the lease is a finance lease; if not, then
it is an operating lease. As part of this assessment,
the Company considers certain indicators such
as whether the lease is for a major part of the
economic life of the asset.

When the Company is an intermediate lessor, it
accounts for its interests in the head lease and
the sub-lease separately. It assesses the lease
classification of a sub-lease with reference to the
right-of-use asset arising from the head lease, not
with reference to the underlying asset. If a head
lease is a short-term lease to which the Company
applies the exemption described above, then it
classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease
components, then the Company applies Ind AS
115 to allocate the consideration in the contract.

The Company applies the derecognition and
impairment requirements in Ind AS 109 to the
net investment in the lease. The Company further
regularly reviews estimated unguaranteed
residual values used in calculating the gross
investment in the lease.

The Company recognised lease payments
received under operating leases as income on a
straight-line basis over the lease term as part of
‘other income'.

2.15 Income tax

Income tax comprises current and deferred tax.
It is recognised in profit or loss except to the
extent that it relates to an item recognised directly
in equity or in other comprehensive income.

i. Current tax

Current tax comprises the expected tax payable
or receivable on the taxable income or loss for
the year and any adjustment to the tax payable
or receivable in respect of previous years.
The amount of current tax reflects the best
estimate of the tax amount expected to be paid
or received after considering the uncertainty, if
any, related to income taxes. It is measured using
tax rates (and tax laws) enacted or substantively
enacted by the reporting date.

Current tax assets and current tax liabilities are
offset only if there is a legally enforceable right to
set off the recognised amounts, and it is intended
to realise the asset and settle the liability on a net
basis or simultaneously.

ii. Deferred tax

Deferred tax is recognised in respect of
temporary differences between the carrying
amounts of assets and liabilities for financial
reporting purposes and the corresponding
amounts used for taxation purposes. Deferred tax
is also recognised in respect of carried forward
tax losses and tax credits. Deferred tax is

not recognised for

• temporary differences arising on the

initial recognition of assets or liabilities in a
transaction that

o at the time of transaction that neither
affects neither accounting nor taxable
profit or loss and does not give rise
to equal taxable and deductible
temporary differences.

o temporary differences related to
investments in subsidiaries to the
extent that the Company is able to
control the timing of the reversal of
the temporary differences and it is
probable that they will not reverse in the
foreseeable future; and

Deferred tax assets are recognised to the extent
that it is probable that future taxable profits will
be available against which they can be used.
The existence of unused tax losses is an evidence
that future taxable profit may not be available.
Therefore, in case of a history of recent losses, the
Company recognises a deferred tax asset only to
the extent that it has sufficient taxable temporary
differences or there is convincing other evidence
that sufficient taxable profit will be available
against which such deferred tax asset can be
realised. Deferred tax assets - unrecognised or
recognised, are reviewed at each reporting date
and are recognised/ reduced to the extent that it
is probable/ no longer probable respectively that
the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset
is realised or the liability is settled, based on the
laws that have been enacted or substantively
enacted by the reporting date.

The measurement of deferred tax reflects the
tax consequences that would follow from the
manner in which the Company expects, at the
reporting date, to recover or settle the carrying
amount of its assets and liabilities.

Deferred tax assets and liabilities are offset if there
is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income
taxes levied by the same tax authority on the
same taxable entity, or on different tax entities,
but they intend to settle current tax liabilities
and assets on a net basis or their tax assets and
liabilities will be realised simultaneously.

2.16 Recognition of dividend income, interest
income or expense

Dividend income is recognised in profit or loss
on the date on which the Company's right to
receive payment is established. Interest income
or expense is recognised using the effective
interest method.

The ‘effective interest rate' is the rate that exactly
discounts estimated future cash payments
or receipts through the expected life of the
financial instrument to:

• the gross carrying amount of the
financial asset; or

• the amortised cost of the financial liability.

In calculating interest income and expense, the
effective interest rate is applied to the gross
carrying amount of the asset (when the asset
is not credit-impaired) or to the amortised cost
of the liability. However, for financial assets that
have become credit impaired subsequent to
initial recognition, interest income is calculated
by applying the effective interest rate to the
amortised cost of the financial asset. If the asset
is no longer credit-impaired, then the calculation
of interest income reverts to the gross basis.

2.17 Borrowing cost

General and specific borrowing costs that
are directly attributable to the acquisition,
construction or production of a qualifying asset
are capitalised during the period of time that is
required to complete and prepare the asset for
its intended use or sale. Qualifying assets are
assets that necessarily take a substantial period
of time to get ready for their intended use or sale.
Borrowing costs consist of interest and other
costs that the Company incurs in connection
with the borrowing of funds (including exchange
differences relating to foreign currency
borrowings to the extent that they are regarded
as an adjustment to interest costs).

For general borrowing used for the purpose
of obtaining a qualifying asset, the amount of
borrowing costs eligible for capitalization is
determined by applying a capitalization rate to
the expenditures on that asset. The capitalization
rate is the weighted average of the borrowing
costs applicable to the borrowings of the
Company that are outstanding during the
period, other than borrowings made specifically
for the purpose of obtaining a qualifying asset.
The amount of borrowing costs capitalized
during a period does not exceed the amount of
borrowing cost incurred during that period.

All other borrowing costs are expensed in the
period in which they occur.

2.18 Earnings per share

Basic Earnings Per Share

Basic earnings/(loss) per share is calculated
by dividing the net profit or loss for the period
attributable to equity shareholders (after
deducting attributable taxes) 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 including a bonus issue.

Diluted Earnings Per Share

For the purpose of calculating diluted
earnings per share, the net profit or loss for
the period attributable to equity shareholders
and the weighted average number of shares
outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.
The dilutive potential equity shares are deemed
to be converted as of the beginning of the period,
unless they have been issued at a later date.

2.19 Segment reporting

An operating segment is a component that
engages in business activities from which
it may earn revenues and incur expenses,
including revenues and expenses that relate to
transactions with any of the other components,
and for which discrete financial information
is available. The Company is engaged into
designing, manufacturing, branding, and
retailing of own-branded eyewear products.
The Company sells prescription eyeglasses,
sunglasses, and other products including
contact lenses and eyewear accessories which
has been defined as one business segment.
Accordingly, the Company's activities/business
are reviewed regularly by the Company's Board
of Director's from an overall business perspective,
rather than reviewing its products/services as
individual standalone components.

2.20 Investment property

Property that is held for long-term rental yields
or for capital appreciation or both, and that is
not occupied by the company is classified as
investment property.

Investment property also includes property that
is being constructed or developed for future use
as investment property.

Initial measurement

Investment property is measured initially at
its cost, including related transaction costs
and where applicable borrowing costs.
Investment property that is obtained through
a lease is measured initially at the lease liability
amount adjusted for any lease payments made
at or before the commencement date (less any
lease incentives received), any initial direct costs
incurred by the company, and an estimate of
costs to be incurred by the lessee in dismantling
and removing the underlying asset, restoring
the site on which it is located or restoring the
underlying asset to the condition required by the
terms and conditions of the lease.

Though the Company measures investment
property using cost based measurement, the fair
value of investment property is disclosed in the
notes to the financial statements.

Subsequent measurement (depreciation and
useful lives)

Depreciation on investment properties
comprising right-of-use held for sublease is
provided on straight-line basis over the period of
lease and other tangible assets as per the policy
defined for same class of assets under property,
plant and equipment. The residual values,
useful lives and method of depreciation are
reviewed at each financial year end and adjusted
prospectively, if appropriate.

Where during any financial year, any addition has
been made to any asset, or where any asset has
been sold, discarded, demolished or destroyed,
or significant components replaced; depreciation
on such assets is calculated on a pro rata basis as
individual assets with specific useful life from the
month of such addition or, as the case may be, up
to the month on which such asset has been sold,
discarded, demolished or destroyed or replaced.

De-recognition

Investment properties are derecognised either
when they have been disposed of or when
they are permanently withdrawn from use and
no future economic benefit is expected from
their disposal. The difference between the net

disposal proceeds and the carrying amount of
the asset is recognised in profit or loss in the
period of de-recognition.

2.21 Treasury Shares

The Company has created a Lenskart ESOP Trust
(LET) for providing share-based payment to its
employees. The Company uses LET as a vehicle
for distributing shares to employees under the
employee remuneration schemes. The LET buys
shares of the Company from the market, for
giving shares to employees on exercise of equity
settled ESOP. The Company treats EBT as its
extension and shares held by EBT are treated as
treasury shares.

Own equity instruments that are reacquired
(treasury shares) are recognised at cost and
deducted from equity. No gain or loss is
recognised in profit or loss on the purchase,
sale, issue or cancellation of the Company's own
equity instruments. Any difference between
the carrying amount and the consideration, if
reissued, is recognised in Capital reserve.

2.22 Standard issued but not effective yet

The new and amended standards that are notified
by the Ministry of Corporate Affairs (MCA), but
not yet effective, up to the date of issuance
of the Company's financial statements are
disclosed below. The Company will adopt
these amendments to the standards, when they
become effective.

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

In accordance with Ind AS 1 currently applicable,
breach of an immaterial covenant is ignored
deciding in current vs. non-current classification
of liabilities. Also, in case of breach of a material
covenant of a non-current loan on or before the
reporting date, the entity can obtain waiver from
the lender after the reporting date and continue
to classify the loan as non-current liability.

In accordance with changes to Ind AS 1 already
notified by the MCA, the above relaxations to

classify loan as non-current liability will not be
available from FY 2026-27 onward and need to
be applied retrospectively. Consequently:

• A breach of either material or
immaterial covenant will trigger current
classification of liability.

^• To continue classifying loan as non-current
liability, entities will need to obtain
waiver from the breach on or before the
reporting date.

The Company is currently assessing the
impact the amendments will have on its
financial statements.

New and amended 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.

(i) Amendments to Ind AS 21 - Lack of
exchangeability

The Ministry of Corporate Affairs (MCA) notified
the Companies (Indian Accounting Standards)
Amendment Rules, 2025, which amend Ind AS
21, The Effects of Changes in Foreign Exchange
Rates to specify how an entity should assess
whether 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 a material impact on the Company's
financial statements.

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

I n 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

I n 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.

I f 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
have resulted in additional disclosures in Note 15
but have not had an impact on the classification
of Company's liabilities.

(iii) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements

I n 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.

As a result of implementing the amendments, the
Company has provided additional disclosures
about its supplier finance arrangement.
Please refer to Note 21A and Note 47.

(iv) International Tax Reform-Pillar Two Model Rules
- Amendments to Ind AS 12

I n 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 fromthejurisdictional implementation
of the Pillar Two model rules; and

^• Disclosure requirements for affected entities
to help users ofthe 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 consolidated financial
statements as the Company is not in scope of the
Pillar Two model rules.

(i) Upon transition to Indian accounting standards (referred to as Ind AS), the Company had adopted optional
exemption to consider carrying values as deemed cost on the date of transition to Ind AS.

(ii) For detailed accounting policy for property, plant and equipment and depreciation, refer note 2.1.

(iii) Certain assets have been pledged with Banks for term loans taken by the Company, refer note 20 for details
of assets pledged.

(iv) During the previous year the Investment property has been transferred to Property Plant and Equipment
and Right of use asset on account of acquisition of Dealskart Online Services Private Limited

(v) For title deeds of immovable properties refer note 55.

(ii) For right to use assets other than classified as investment property, refer note 37.

(iii) For detailed accounting policy for investment property, refer note 2.20.

(iv) During the previous year the Investment properties has been transferred to Property Plant and
Equipment and Right of use asset on account of acquisition of Dealskart Online Services Private Limited.

(v) Upon transition to Indian accounting standards (referred to as Ind AS), the Company adopted optional
exemption to consider carrying values as deemed cost on date of transition to Ind AS.

(vi) The Company has no restrictions on the realisability of its investment properties and no contractual
obligations to purchase, construct or develop investment properties or for repairs, maintenance
and enhancements.

(i) Upon transition to Indian accounting standards (referred to as Ind AS), the Company had adopted
optional exemption to consider carrying values as deemed cost on date of transition to Ind AS.

(ii) For detailed accounting policy for intangible assets and amortization, refer note 2.3.

During the year ended 31 March 2020, the Company had acquired Customer Support Business from
Dealskart Online Services Private Limited whereby it acquired an organised workforce, property, plant
and equipment, certain other assets and liabilities generating goodwill of '10.87 million. Goodwill is
attributable to one cash generating unit, being trading and distribution of branded and private labelled
eyeglasses, sunglasses, contact lenses, accessories product and manufacturing of optical and
ophthalmic lenses used in spectacles. The Company tests goodwill annually for impairment, or more
frequently if an event occurs to warrant a review. The recoverable amount attributed to the CGU is
based on value in use calculations.

I n previous year, management has assessed that the goodwill is not recoverable, and therefore, an
impairment charge has been recognised.

Assumption used in previous year

The key assumptions made in undertaking the value in use calculations involve estimating post-tax cash
flows. Budgeted profit and cash flow forecasts for the financial year ending 31 March 2025 have been
extrapolated for a period of 2 years and a terminal growth rate of 5% has been applied thereafter and used as
the basis of the calculations. Discount rate assumptions are based on management estimates of the internal
cost of capital likely to apply over the expected useful economic life of the goodwill and management's
view of the risk associated. A discount rate of 7.5% (March 31,2024: 7.5%) has been applied.

(i) The Company has beneficial interest in investment in Lenskart Eyetech Private Limited of 1 equity
share (31 March 2025: 1 equity share) held in the name of an individual.

(ii) The Company had invested in 3,487,954 equity shares of Lenskart Solutions Pte Ltd of SGD 1 each, fully
paid-up, which represents 100% of the issued share capital. The change during the year represents the
fresh investment amount to '5,858.75 Million, conversion of the outstanding loan and interest accrued
but not due amounting to '3,410.37 into equity share of Lenskart Solutions Pte Ltd. and deemed
investment in lieu of stock options issued by the Company to the employees of the subsidiary.

(iii) The Company has invested 10,000 equity share of Neso Brands Pte Ltd which represents 100% of the
issued share capital. During the year, the loan granted and interest accrued but not due amounting to
'89.63 is converted into equity shares.

(iv) The Company had invested in 10,48,110 equity shares of Tango IT Solutions India Private Limited
(“Tango”) of '10 each, fully paid-up. The change represents fresh investment made during the year
and the deemed investment in lieu of stock options issued by the Company to the employees of
the subsidiary.

(v) The Company had invested in 886 Series A1 Compulsorily Convertible Preference Shares of Adloid
Technologies Private Limited (“Adloid”) . The change during the year represents fair value change.
During the year ended 31 March 2025, the Company has received 175 Series A2 Adloid Technologies
Private Limited in lieu of advisory services.

(vi) During the previous years, the Company has invested in 207 Series C Compulsorily Convertible
Preference Shares at a price of '17,403 per share of Thinkerbell Labs Pvt. Ltd. The change during the
year represents the fair value change.

(vii) I n the previous year, the Company had invested 285,209 Pre-Series A Compulsorily Convertible
Preference Shares (CCPS) of QuantDuo Technologies Private Limited (Quantduo). During the current
year, upon conversion of the CCPS into equity shares and acquisition of additional stake, QuantDuo
Technologies Private Limited became a subsidiary of the Company. Upon acquisition of an additional
stake in Quantduo during the current year, the previously held stake was fair valued, and the Company
recognised an impairment loss of '135.88 million on such fair valuation

(viii) During the previous years, Thinoptics Inc., USA has issued 16,87,435 preference shares to the Holding
company in lieu of the promissory notes held by the Company. The change during the year represents
fair value change.

(ix) During the previous year ended 31 March 2025, the Company has acquired 100% in Dealskart Online
Services Private Limited (DOSPL). The Company has deferred receivables from DOSPL and will be
received in the next four years. The trade receivables outstanding as at 31 March 2025 accounted
using present value of money and difference between carrying amount and present value of trade
receivables are accounted as deemed investment of '193.17 million in DOSPL. The change represents
deemed investment in lieu of stock options issued by the Company to the employees of the subsidiary.

(x) During the year ended 31 March,2026, the Company has invested Nil nos (March 2025- 137 nos)
Compulsorily Convertible Preference Shares at a price of '194,610 per share of Wehear Innovations
Pvt. Ltd.The change during the year represents the fair value change during the year.

(xi) During the year ended 31 March 2025, the Company has acquired 50% interest in VisionSure Services
Private Limited and classified as investment in joint venture. During the current year, the Company has
acquired additional 70 shares.

(xii) The Company has made investment of '245.03 million for acquisition of 5.76% stake in Dimension NXG
Private Limited which has been classified as associates in accordance with Ind AS -28 “Investments in
Associates and Joint Ventures”.

(xiii) All the investments consists of fully paid up shares.

(xiv) #'308 (2025: '308) in absolute rupees.

A. During the current year, the loan granted including interest accrued but not due to Lenskart Singapore
Pte. Limited amounting to '3,410.37 million and Neso Brands Pte. Limited amounting '89.63 million
has been converted into equity share on 10 October 2025 and 11 February 2026 respectively.

B. As at 31 March 2025

i) . The Company has given unsecured loan to Lenskart Singapore Pte Ltd amounting '3,255.92

million for business expansion and working capital requirements. The loan carried an interest rate
of 5.97% p.a. (effective interest rate) with effect from 01 April 2022.

ii) . The Company has also given unsecured loan to Neso Brands Pte Ltd '82.93 million which carries

an interest rate of 5.97% p.a (effective interest rate) and is repayable on demand. The loan carried
an interest rate of 5.97% p.a.(effective interest rate) with effect from 01 April 2022.

(i) Other receivables also includes receivable for amount collected by the marketplace provider on behalf
of the Holding Company from the customer, lead generation and others.

(ii) The above includes '417.46 million (31 March 2025 : '729.44 million) receivables from related party
(refer note 41).

(iii) Represents Deposits of '218.85 million (31 March 2025: '79.52 million) held by the Company which
are pledged with financial institutions against loans and Cash credit limit taken by the Company and
with government authority against demand and EPCG licence.

(i) Out of the total proceeds of '21,500.00 million (including offer expenses of '693.90 million) raised
through the Fresh Issue pursuant to the IPO, '1,770.60 million had been utilised up to 31 March 2026
towards the objects of the Offer as disclosed in the Offer Document. The remaining unutilised proceeds
were temporarily invested in fixed deposits and kept in bank balances and will be utilised in line with
the stated objects of the Offer. Refer note 56.

(ii) Bank balance includes funds in transit amounting to '31.71 (31 March, 2025 48.10) which is deposited
subsequent to year end.

Notes

(i) There are no repatriation restrictions with respect to cash and bank balances as at the end of the
reporting period and prior periods.

(ii) Earmarked balance pertains to amounts withheld from proceeds of initial public offer for offer expenses.

(iii) Deposits with original maturity for more than three months but less than 12 months of 'Nil million (31
March 2025: ' 138.26 million), held by the Company, are not available for use as these are pledged with
Government authorities and pledged with financial institutions against loans taken by the Company.

During the year ended 31 March 2026, the Company has completed its Initial Public Offer (IPO) of
181,058,478 equity shares of face value '2 each. The issue comprised of 53,495,905 shares offered as
fresh issue and 127,562,573. shares offered as offer for sale aggregating to '72,780.15 millions. Pursuant to
IPO, the equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and
BSE Limited (BSE) on 10 November 2025.

c) Rights, preferences and restrictions attached to equity shares

The Company has equity shares having a par value of '2 per share. Each shareholder is eligible to one vote
per share held. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders
in the ensuing Annual General Meeting, except in case of interim dividend. The voting rights of an equity
shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital
of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums
presently payable have not been paid. In the event of liquidation, the equity shareholders are 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.

d) Rights, preferences and restrictions attached to equity shares Series A

The Company has equity shares Series A having a par value of '2 per share. Each shareholders is eligible to
one vote per share held. The dividend proposed, If say, by the Board of Directors is subject to approval of
shareholders in Annual General Meeting, except in case of interim dividend. The voting rights of an equity
Series A shareholder on a poll (not on show of hands) are in proportion to its share of paid equity capital
of the Company. Voting rights can not be exercised in respect of the shares on which any calls or others
sums presently payable have not been paid. In the event of liquidation, equity shareholders are entitled to
receive remaining assets of the Company after distribution of preferential amount) in the proportion of
equity shares Series A held by the shareholders.

e) Rights, preferences and restrictions attached to equity shares Series B

The Company has equity shares Series B having a par value of '2 per share. Each shareholders is eligible to
one vote per share held. The dividend proposed, If say, by the Board of Directors is subject to approval of
shareholders in Annual General Meeting, except in case of interim dividend. The voting rights of an equity
Series B shareholder on poll (not on show of hands) are in proportion to its share of paid equity capital
of the Company. Voting rights can not be exercised in respect of the shares on which any calls or others
sums presently payable have not been paid. In the event of liquidation, equity shareholders are entitled to

receive remaining assets of the Company after distribution of preferential amount) in the proportion of
equity shares Series B held by the shareholders.

All the class of equity share holders have equal rights.

f) Terms attached to stock options granted to employees are described in note 34 (E) regarding
employee share based payments.

The Company has neither issued equity shares pursuant to contract without payment being received in
cash nor has there been any buy-back of shares for the period of five years immediately preceding the
balance sheet date other than bonus issue mentioned above.

16B Instruments entirely equity in nature

a) Authorized preference share capital

c) Rights, preferences and restrictions attached to preference shares (till the date of conversion - refer note
53)

The Company has Compulsorily convertible preference shares (CCPS) having a par value of '2 per share
(other than CCPS Class 2 of '10 each). Preference shares carry a preferential right as to dividend over equity
shareholders. Dividend on cumulative preference shares is not declared for a financial year, the entitlement
thereto is carried forward to the next year. The preference shares are entitled to one vote per share at
meetings of the Company on any resolutions of the Company directly affecting their rights. In the event of
liquidation, preference shareholders have a preferential right over equity shareholders to be repaid to the
extent of capital paid-up and dividend in arrears on such shares. And all the preferred rights as stipulated in
under Articles 8 of Articles of Association (AOA).

The preference shares carry a dividend of 0.001% per annum. The rate of dividend is reduced to 0.001% per
annum from 8% per annum earlier w.e.f. 29 March 2018. The dividend rights are cumulative. The preference
shares rank ahead of the equity shares in the event of a liquidation.

d) Term of conversion of preference shares (till the date of conversion - refer note 53)

0.001% (31 March 2025: 0.001% ) Compulsorily Convertible Cumulative Preference Shares of the
Company, having a nominal value of '2 each (other than CCPS Class 2 of '10 each) of which shall be
entitled to be converted into Equity Shares at the earliest of the following events in the manner stipulated
under Articles 11 and AOA:

One business day immediately preceding the filing of the Red Herring Prospectus in connection with a
qualified IPO; or The exercise of an option by the Preference Shares Series A Shareholders in respect of
either the full or a part of the Preference Shares; or Not later than 15 years from 4 October 2011 in the
manner stipulated under Articles 11 of AOA;

Series B

One business day immediately preceding the filing of the Red Herring Prospectus in connection with a
qualified IPO; or The exercise of an option by the Preference Shares Series B Shareholders in respect of
either the full or a part of the Preference Shares; or Not later than 15 years from the 6 February 2013;

Series C2

One business day immediately preceding the filing of the Red Herring Prospectus in connection with a
qualified IPO; or The exercise of an option by the Preference Shares Series C2 Shareholders in respect of
either the full or a part of the Preference Shares; or Not later than 15 years from the 22^nd March, 2016;

Series D

One business day immediately preceding the filing of the Red Herring Prospectus in connection with a
qualified IPO; or The exercise of an option by the Preference Shares Series D Shareholders in respect of
either the full or a part of the Preference Shares; or Not later than 15 years from the 2^nd May, 2016.

Series E

One business day immediately preceding the filing of the Red Herring Prospectus in connection with a
qualified IPO; or The exercise of an option by the Preference Shares Series E Shareholders in respect of
either the full or a part of the Preference Shares; or Not later than 15 years from the 2^nd September, 2016.

Series F

One business day immediately preceding the filing of the Red Herring Prospectus in connection with a
qualified IPO; or The exercise of an option by the Preference Shares Series F Shareholders in respect of
either the full or a part of the Preference Shares; or Not later than 15 years from the 16^th September, 2019.

Series G

One business day immediately preceding the filing of the Red Herring Prospectus in connection with a
qualified IPO; or The exercise of an option by the Preference Shares Series G Shareholders in respect of
either the full or a part of the Preference Shares; or Not later than 15 years from the 20^th December, 2019.

Series H

One business day immediately preceding the filing of the Red Herring Prospectus in connection with a
qualified IPO; or The exercise of an option by the Preference Shares Series H Shareholders in respect of
either the full or a part of the Preference Shares; or Not later than 15 years from the 26^th July, 2021.

Series I

One business day immediately preceding the filing of the Red Herring Prospectus in connection with a
qualified IPO; or The exercise of an option by the Preference Shares Series I Shareholders in respect of
either the full or a part of the Preference Shares; or Not later than 15 years from the date of issuance of
shares. The below table provides the details w.r.t issuance of shares:

One business day immediately preceding the filing of the Red Herring Prospectus in connection with a
qualified IPO; or The exercise of an option by the Preference Shares Series I2 Shareholders in respect of
either the full or a part of the Preference Shares; or Not later than 15 years from the date of issuance of
shares. The conversion ratio is 112956:100 (100 equity share for 112956 Series I2 CCPS subject to the
terms and conditions of the definitive agreement/s executed by the Company including the SHA).

Clas s 1

The CCPS shall be convertible into Equity Shares (as defined in the Articles) in the ratio of 9.91:1 (for every
9.91 CCPS held, 1 Equity Share) to be issued after considering the impact of bonus issue.

Class 2

The CCPS shall be convertible into Equity Shares (as defined in the Articles) in the ratio of: 1:30 (for every 1
CCPS held, 30 Equity Share) to be issued after considering the impact of bonus issue.

Class 3

The CCPS shall be convertible into Equity Shares (as defined in the Articles) in the ratio of: 1:50 (for every 1
CCPS held, 50 Equity Share) to be issued after considering the impact of bonus issue.

The CCPS shall be convertible into Equity Shares (as defined in the Articles) in the ratio of:

(i) 100:40 (for every 100 CCPS held, 40 Equity Shares to be issued) in the event either domestic or
international expansion target has been achieved on or before September 30, 2025

(ii) 1:5 (for every 1 CCPS held, 5 Equity Share to be issued) in the event both domestic and international
expansion target has been achieved on or before September 30, 2025

(iii) 100:10 (for every 10 CCPS held, 1 Equity Share to be issued) in the event neither domestic nor
international expansion target has been achieved on or before September 30, 2025 at the option of
the holder of CCPS at any time prior to 20 years; automatically, 5 days prior to expiry of 20 years;
automatically 5 days prior to occurrence of an exit event, liquidation or winding up of the Holding
Company. This conversion is subject to CCPS being fully paid and holders attending and participating
in the discussions of the Shareholders of the Holding Company until September 30, 2025.

(a) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised
only for limited purposes such as issuance of bonus shares in accordance with the provisions of the
Companies Act, 2013.

(b) Share options outstanding account

The Company has established various equity-settled share-based payment plans for certain categories
of employees of the Company. Refer to Note 34 (E) for further details on these plans.

(c) Capital reserve

The Company had recognized capital reserve on purchase of business unit from its wholly owned
subsidiary ‘Lenskart Eyetech Private Limited'.

(d) 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.

(e) Treasury Shares

This represents cost incurred by the Company to purchase its own equity shares from secondary
market through the Company's ESOP trust for issuing the shares to the eligible employees on exercise
of stock options.

(f) Lenskart ESOP Trust Reserve

Lenskart ESOP trust reserve comprises of Net (loss)/profit recorded in ESOP trust.

Information related to provision for warranty:

The Company offers upto one year warranty on eyeglasses and sunglasses. Warranty costs on sale of goods
are provided on the basis of management's estimate of the expenditure to be incurred during the unexpired
period. Provision is made for the estimated liability in respect of warranty costs in the year of recognition of
revenue and is included in the Statement of Profit and Loss. The estimates used for accounting for warranty
costs are reviewed periodically and revisions are made as and when required.

Notes:

(i) Details of security of long term borrowings for the for the year ended 31 March 2026:

Term loan from HDFC Bank Limited outstanding to '793.53 million (31 March 2025 : '1,026.85 million),

which includes current maturities of '244.50 million (31 March 2025 : '234.09 million) and processing

fees netted of '1.10 million (31 March 2025 : '1.87 million) is secured by first charge on

a. All Borrower's immovable properties (owned and/or leased, together with all structures and
appurtenances thereon, pertaining to the Project present and future, located at Bhiwadi Rajasthan.

b. All Borrower's tangible movable assets, including movable plant and machinery, machinery spares,
tools and accessories, furniture, fixtures, vehicles and all other movable assets, pertaining to the
project (including existing Plant and Machinery at Gurgaon Plant)

c. (i) all the rights, title, interest, benefits, claims and demands whatsoever of Borrower in Project

Documents, as amended, varied or supplemented from time to time; (ii) all the rights, title,
interest, benefits, claims and demands whatsoever of Borrower in the clearances in respect
of the Project; (iii) all the rights, title, interest, benefits, claims and demands whatsoever of
Borrower in any letter of credit, guarantee (including contractor guarantees), performance
bonds provided by any party under Project Documents, present and future; and (iv) all the rights,
titles, interests, benefits, claims and demand whatsoever of Borrower in respect of insurance
contracts/policies procured by the Borrower or procured by any of its contractors favouring
the Borrower for the Project/ Insurance Proceeds in respect of the Project, present and future;

d. A first charge by way of hypothecation on escrow account, Debt Service Reserve Account (DSRA)
and any other reserves stipulated by Lender as applicable.

(ii) Terms of repayment and interest rate for the year ended 31 March 2026:

a) To work in the area of vision correction for all sections of the society by making consistent efforts
and steps towards spreading awareness about vision correction, developing low cost technology
that enables us and others to make vision care accessible in all nooks and corners of the country.

b) To reduce the number of visually challenged population in India, by providing affordable/costless
eye care services accessible to all sections of society through innovative eye care models.

(vi) During the current year, the company has given a contribution of '20.40 million (31 March 2025: ' 13.00
million) to Lenskart Foundation (subsidiary), a Section 8 registered company under the Companies Act,
2013, for CSR purposes.

The Company's CSR obligation for the current year was '27.45 million (31 March 2025: '14.42 million).
Against this, the company has utilised the excess CSR contribution of '7.05 million carried forward
from the previous year, together with the current year contribution of '20.40 million, aggregating to
'27.45 million, thereby fully discharging its CSR obligation for the current year with no shortfall or
excess. Accordingly, no CSR asset is recognised as at the current year-end (31 March 2025: '7.05
million recognised as CSR asset and carried forward.

(vii) There are no unspent amounts in respect of ongoing projects that are required to be transferred to a
special account in compliance with the provisions of sub-section (6) of Section 135 ofthe Companies Act.

32 Earnings per share (EPS)

The calculation of basic earnings per share has been based on the following profit attributable to equity
shareholders and weighted-average number of equity shares outstanding.

Diluted earnings per share amounts are calculated by dividing the profit attributable to equity holders of the
Company by the weighted average number of equity shares outstanding during the year plus the weighted
average number of equity shares that would be issued on conversion of all the dilutive potential equity
shares into equity shares. The following reflects the income and share data used in the basic and diluted
EPS computations:

During the year, diluted EPS represents earning per share based on the total number of shares including the
potential estimated number of shares to be issued against stock options in force under the existing stock
option plan/scheme, except where diluted EPS would be anti-dilutive.

* During the previous year, the Company had issued bonus shares of 69,39,92,016 fully paid-up Equity shares of '2/- (Rupees
Two) each as fully paid-up Equity Shares in proportion of 9 new fully paid-up Equity Shares of'2/- for every 1 existing fully paid-
up Equity Shares of '2/- each to the eligible shareholders of the Company whose names appear in the Registers of Members
or in the Register of Beneficial Owner maintained by the depositories on the record date, i.e, October 16, 2024.Consequent to
this bonus issue, the earnings per share has also been adjusted for all the previous year presented, in accordance with Ind AS
33, Earnings per share.

A Gratuity- Unfunded

The Company has a unfunded defined benefit gratuity plan for qualifying employees. The scheme provide
for lump sum payment to vested employees at retirement, death while in employment or on termination of
employment. Vesting occurs upon completion of five year of services.

Every employee who has completed five years or more of services, gets a gratuity on departure at 15 days
basic salary (last drawn) for each completed year of service on terms not less favourable than the provisions
of the payment of Gratuity Act, 1972.

The following tables summaries the components of net benefit expense recognized in the Statement of
Profit and Loss and the status and amounts recognized in the balance sheet for the plan.

The above sensitivity analysis are based on a change in an assumption while holding all other
assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may
be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial
assumptions the same method (present value of the defined benefit obligation calculated with the
projected unit credit method at the end of the reporting period) has been applied which was applied
while calculating the defined benefit obligation liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change
compared to prior period.

(vi) Maturity profile of defined benefit obligation (undiscounted)

As at 31 March 2026, the weighted average duration of defined benefit obligation (based on discounted
cashflow) was 2 years (31 March 2025: 2 years).

B Compensated absences

The liability for compensated absences cover the Company's liability for Leave (as per Company Policy).
The amount of the provision presented as current represents the leaves over which the Company does
not have an unconditional right to defer settlement for any of these obligations. However, based on past
experience, the Company does not expect all employees to take the full amount of accrued leave or require
payment within the next twelve months.

C Provident fund

Contribution made by the Company during the year is '82.10 million (31 March 2025: '80.61 million).

D On 21 November 2025, the Government of India notified four new Labour Codes (the Code on Wages,
2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020 and the Occupational Safety,
Health and Working Conditions Code, 2020) consolidating 29 labour laws. The Company has carried
out preliminary assessment and recorded the incremental impact of these changes on the basis of legal
opinion obtained and the best information available, consistent with the guidance provided by the Institute
of Chartered Accountants of India.

The Government of India, vide its notification dated 8 May 2026, has notified the rules for aforementioned
new labour codes, however the states are yet to finalise the new labour codes. The Company has evaluated
the impact of these rules and based on current assessment, management does not expect any material
additional liabilities. Considering the new labour codes are evolving in nature and subject to further
clarifications and implementation guidelines from the states/central government, the Company will
continue to evaluate the implications thereof and the impact, if any, shall be accounted for as and when the
same becomes reasonably measurable and ascertainable.

E Employee stock option plan

The Company has instituted an Employee Stock Option Scheme in the year 2012, known as ‘VALYOO
ESOP 2012. This Scheme was adopted by the Board of Directors on 9 October 2012. This Scheme
was subsequently amended by shareholders' approval dated 22 June 2016, 27 November 2020, 27
September 2021 (“Third Amendment”) and 17 January, 2024 (“Fourth Amendment”). In Extra ordinary
General Meeting held on 27 September, 2021 the Option plan was also renamed as Lenskart Employee
Stock Option Plan, 2021 (“ESOP Scheme”). Additionally, in Extra ordinary General Meeting held on 26
July 2025, an Option plan was approved as Lenskart Employee Stock Option Plan, 2025 (“ESOP Scheme”).
Total number of options outstanding as on 31 March 2026 are 1,35,93,711 (31 March 2025: 10,797,430).
These options are convertible into equal number of equity shares of the par value of '2 each. The scheme
has been described below:

Notes:

1. This is in respect of assessment year 2018-19, Income-tax authorities has disallowed certain expenditure
amounting to '519.56 million. The Company has accepted the disallowance of '390.41 million and for
balance disallowance appeal has been filed with Income-tax authorities. Further, no demand has been
issued against the above disallowances by the Income-tax authorities.

2. The Company had received assessment order for AY 2013-14 from income tax authorities wherein the
department raised demand (a) on account of certain unexplained cash credits and (b) on account of
penalty proceedings in relation to marketing expenses disallowed and considered as Capital nature.

3. The contingent liability for GST and Custom case is on account of classification of Zero power glasses of
which '85.03 million pertains to FY. 2025-26 and '136.97 million pertains to FY. 2024-25 . Such glasses
were being sold @ 12% GST, however, the GST authorities are of the view that such spectacles with
zero power lenses are taxable @ 18%.

4. The Company has received a demand order from the GST Intelligence Department amounting
to '118.44 million relating to taxability of LK Cash redeemed during FY 2018-19 to FY 2023-24.
The Company, based on legal opinions and supporting documents, considers LK Cash to be in the
nature of discounts and not liable to GST.

5. The Company has received a show cause notice from Customs, Delhi amounting to '65.82 million
regarding classification of imported eyeframes with clip-ons for the period October 2019 to
October 2024. The Company has classified these products under eyeframes supported by legal
opinions, while Customs seeks to classify them as sunglasses.

6. The Company has received draft assessment order on 23 March 2026 which includes income addition
of '98.71 million proposed in relation to transfer pricing adjustment for manufacturing activity and
outstanding trade receivables. The company has filed objection with Dispute Resolution Panel in
April 2026 and the tax amount is not quantifiable at this stage.

The management based on internal assessment and legal opinion obtained, believes that no material
liability is likely to arise on account of such claims/law suits.

37 Leases

The Company has lease contracts for various properties (including leasehold land, office buildings and
stores) used in the normal course of business.

- Leasehold land is a lease executed with Rajasthan State Industrial Development and Investment
Corporation Ltd. (‘RIICO') for a period of 99 years.

- Lease of building generally have lease term between 5 to 15 Years.

The Company's obligation under its leases are secured by the lessor's title to the leased asset. Such leases
are recognised as right to use asset. Further, out of such properties, there are certain property leases further
given on sub lease and classified as Investment property in the financial statements.

The Company also has certain leases of building with less than 12 months and certain lease assets with low
value. The Company applies the “short term lease” and “lease of low value asset” recognition exemption
for these leases.

(A) As Lessee

In the year ended 31 March 2020, upon first time implementation, the following is the summary of practical
expedients elected by the company on initial application:

1. The company has used a single discount rate to a portfolio of leases of similar assets in similar
economic environment.

2. The company has applied the exemption not to recognize Right of use asset (ROU) asset and liabilities
for leases with less than 12 months of lease term on the date of initial application.

3. The company has excluded the initial direct cost from the measurement of the ROU asset at the date
of initial application.

4. The company has applied the practical expedient to grandfather the assessment of which transactions
are ‘leases'. Accordingly, Ind AS 116 is applied only to those contracts that were previously identified as
lease under Ind AS 17.

(ii) Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the balance sheet are categorised into three
levels of fair value hierarchy. The three levels are defined based on the observability of significant inputs to
the measurement, as follows

Level 1: quoted prices (unadjusted) in active markets for financial instruments.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.

Level 3: Inputs which are not based on observable market data.

(iv) Valuation technique used to determine fair value

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for
which fair values are disclosed in the financial statements. To provide an indication about the reliability of
inputs used determining the fair value, the Company has classified its financial instruments into the three
levels prescribed under the accounting standard.

The following methods and assumptions have been used to estimate the fair values:

(A) The fair value of investments in mutual fund units is based on the net asset value (NAV) as stated
by the issuers of these mutual fund units in the published statements as at the Balance Sheet date.
NAV represents the price at which the issuer will issue further units of mutual fund and the price at
which issuers will redeem such units from the investors.

39. Financial risk management

The Company's principal financial liabilities comprise loans, borrowings, trade payables, lease liabilities, capital
creditor, retention money payables, employee benefit payables and refund liabilities. The main purpose of
these financial liabilities is to finance the Company's operations. The Company's principal financial assets
include loans, trade and other receivables, investment in preference shares, bank deposits, bonds, security
deposits and cash and cash equivalents that derive directly from its operations. The Company is exposed to
market risk, credit risk and liquidity risk. The Company's management oversees the management of these
risks and appraises the Board of Directors from time to time basis the impact assessment.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails
to meet its contractual obligations, and arises principally from the Company's receivables from customers,
loans and other deposits etc.

The carrying amounts of financial assets represent the maximum credit risk exposure.

(i) Credit risk management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating
activities (primarily trade receivables) and from its financing activities, including deposits with banks
and financial institutions, foreign exchange transactions and other financial instruments. The Company

only deals with parties which has good credit rating/ worthiness given by external rating agencies or
based on Company's internal assessment.

All doubtful receivables are duly recognized from time to time post discussion with key stakeholders
and provided for in the financial statements as deemed appropriate.

All the financial assets carried at amortized cost were considered good as at 31 March 2026 and 31
March 2025. The Company has not acquired any credit impaired asset. There was no modification in
any financial assets.

a. Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company's
treasury department. Investments of surplus funds are made only with reputed Funds as aligned
with the Board. The limits are set to minimize the concentration of risks and therefore mitigate
financial loss through counterparty's potential failure to make payments.

b. Security deposit and other advances

With regards to security deposit and other advances, the management believes these to be high
quality assets with negligible credit risk. The management believes the parties to which these
deposits and other advances have been made have strong capacity to meet the obligations and
where the risk of default is negligible or nil and accordingly no provision for expected credit loss
has been provided on these financial assets.

c. Trade receivables (Expected credit loss for trade receivables under simplified approach)

The Company follows ‘simplified approach' for recognition of impairment loss allowance on trade
receivable. Under the simplified approach, the Company does not track changes in credit risk.
Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date,
right from initial recognition.

For homogenous group of receivables, the Company uses a provision matrix to determine
impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on
its historically observed default and delay rates over the expected life of the trade receivable and is
adjusted for forward looking estimates. At year end, the historical observed default and delay rates
are updated and changes in the forward-looking estimates are analysed.

For other debtors that are heterogeneous in nature, individual receivables which are known to be
uncollectible are written off by reducing the carrying amount of trade receivable and the amount
of the loss is recognised in the Statement of Profit and Loss within other expenses.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through
an adequate amount of committed credit facilities to meet obligations when due and to close out market
positions. Considering the business requirements, the treasury maintains flexibility in funding by maintaining
availability under committed credit lines. Management monitors rolling forecasts of the Company's liquidity
position and cash and cash equivalents on the basis of expected cash flows.

Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity groupings based on
their contractual maturities for all financial liabilities, for which the contractual maturities are essential
for an understanding of the timing of the cash flows. The amounts disclosed in the table are the
contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as
the impact of discounting is not significant.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and
other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk
include deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the
following sections relate to the position as at 31 March 2026 and 31 March 2025. The analyses exclude
the impact of movements in market variables on: the carrying values of gratuity and other post-retirement
obligations and provisions. The sensitivity of the relevant profit or loss item is the effect of the assumed
changes in respective market risks. This is based on the financial assets and financial liabilities held at 31
March 2026 and 31 March 2025.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the risk of changes in
foreign exchange rates relates primarily to the Company's operating activities and the Company's
net investments in foreign subsidiary. Foreign exchange risk arises from recognised assets and
liabilities denominated in a currency that is not the functional currency of any of the Company entities.
The Company does not use forward contracts and swaps for speculative purposes.

(ii) 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.

Assets: The Company's fixed deposits are carried at amortised cost and are fixed rate deposits. They are
therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount
nor the future cash flows will fluctuate because of a change in market interest rates.

Liabilities: The Company is exposed to interest rate risk on the below mentioned borrowings:

The Company's outstanding borrowings as at the end of reporting period is as follows:

(iii) Price risk

The Company's exposure price risk arises from investments held and classified in the balance sheet
at fair value through profit or loss. To manage the price risk arising from investments, the Company
diversifies its portfolio of assets.

40. Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, convertible
preference shares, securities premium and all other equity reserves attributable to the equity holders.
The primary objective of the Company's capital management is to ensure the Company's ability to continue
as a going concern and maximize the shareholder value. Management assesses the Company's capital
requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage.
No changes were made in the objectives, policies or processes for managing capital during the period
ended 31 March 2026 and 31 March 2025.

43 Disclosure under the Micro, Small and Medium Enterprises Development Act,
2006 (“MSMED Act, 2006”)

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated
26 August 2008 which recommends that the Micro and Small Enterprises should mention in their
correspondence with its customers the Entrepreneurs Memorandum number as allocated after filling
the Memorandum. Based on the information received and available with the Company, there are no dues
outstanding to micro and small enterprises (Suppliers) other than covered below under the Micro, Small
and Medium Enterprises Development Act, 2006 as at 31 March 2026 and 31 March 2025.

45 Other statutory information:

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

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

(iv) The Company (‘funding party') has invested in equity share of Lenskart Solutions Pte. Limited (‘intermediary
party') amounting to 5,858.75 (31 March 2025 : 5,844.55) and not given an additional loan during the current
year and previous year, however intermediary party has further given loan /investment to its subsidiary in
the previous year. These entities have been set up to expand the Group's business in the global markets.
Details of funds advanced by Lenskart Solutions Pte. Ltd. to the step down subsidiaries are as follows:

The Company has complied with relevant provisions of the Foreign Exchange Management Act, 1999 (42
of 1999), to the extent applicable, the Companies Act, 2013 for these transactions and these transactions
are not violative of the Prevention of Money-Laundering Act, 2002 (15 of 2003). Except for the above,
the Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.

(v) The Company has not received any fund from any person(s) or entity(is), 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
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(vii) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful
defaulters issued by the Reserve Bank of India.

(viii) The Company has complied with the number of layers for its holding in downstream companies prescribed
under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number
of Layers) Rules, 2017.

(ix) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets)
during the year.

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

(xiii) The Company has not granted any loans to the promoters, directors, Key Managerial Person's and the related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person which are
repayable on demand or without specifying any terms or period of repayments as at 31 March 2026 Nil (as
at 31 March 2025: Nil).

(xiv) The Company (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016)
does not have Core Investment Company (CIC).

47 Audit Trail

The Company have used multiple accounting software including third party applications 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, in respect of main
accounting software operated by third party, in the absence of control around audit trail feature at database
level in the service organization control report, the Company is unable to ascertain whether the audit trail
feature was enabled and operated throughout the year for such system.

Further, the Company has not identified any instance of audit trail feature being tampered with, in respect of
accounting softwares including third party applications to the extent enabled. The audit trail records of prior
years have been preserved by the company as per the statutory requirements for record retention, to the
extent it was enabled and recorded in those respective years. However, with respect to main accounting
software, in the absence of controls in the service organization controls, the Company is unable to confirm
compliance with audit trail preservation requirements.

48 During the year ended 31 March 2026:

(a) the Company's wholly owned subsidiary, Lenskart Singapore Pte. Ltd., acquired an 84.21% stake in
Stellio Ventures S.L for '4,102.72 million which includes a deferred consideration of '523.58 million
payable to founders within 3 years and 45 days from the date of acquisition i.e. 11 August 2025.

(b) the Company has acquired the additional stake in QuantDuo Technologies Private Limited, pursuant to
which it has become a wholly owned subsidiary of the Company .

(c) the Company has made an investment of '245.03 million for acquisition of 5.76% stake in Dimension
NXG Private Limited which has been classified as associate in accordance with Ind AS -28 “Investments
in Associates and Joint Ventures”.

(d) the Company's wholly owned subsidiary, Lenskart Singapore Pte. Ltd., acquired a 29.20% equity stake in
iiNeer Co. Ltd. for a consideration of '189.36 million. Consequently, this investment has been classified
as an associate in accordance with Ind AS 28 - “’’Investments in Associates and Joint Ventures.

51 The Company has established a comprehensive system of maintenance of information and documents as
required by the transfer pricing legislation under section 92-92F of the Income Tax Act 1961. Since, the law
requires existence of such information and documentation of to be contemporaneous in nature, Company
has executed necessary agreement/document with all such related parties wherever transfer pricing is
applicable. The management is of the opinion that it's transaction are at arm's length so that the aforesaid
legislation will not have any impact on the financial statements, particularly on the amount of tax expenses
and that of provision for tax.

52 Balances mentioned below includes recoverable in foreign currency invoiced for more than 270 days and
payables in foreign currency invoiced for more than 365 days. The Company is in the process of discussing
with AD / Reserve Bank of India (RBI) for receiving / regularizing the same. Pending the final outcome of this
matter, no adjustments have been made to the accompanying standalone financial statements in this regard.

53 During the year ended 31 March 2026, the Board of Directors approved the conversion of 833,223,582
outstanding preference shares into equity shares as mentioned in note 16B, in accordance with the terms
of issue. The Company has filed the requisite statutory forms with the Ministry of Corporate Affairs (MCA)
in this regard.

54 Subsequent Event

1. The Board of Directors of the Company, at its meeting held on 20 May 2026, has accorded its
in-principle approval for the proposed merger of Dealskart Online Services Private Limited and Lenskart
Eyetech Private Limited, (Transferor Companies, wholly owned Subsidiaries ) with Lenskart Solutions
Limited (Transferee Company). The merger is subject to requisite statutory and regulatory approvals,
including approval of the National Company Law Tribunal (NCLT), shareholders, and creditors under
the Companies Act, 2013, and no effect of the proposed merger has been given in these Audited
Standalone Financial Results .

2. Subsequent to year end 31 March 2026, the Company's wholly owned subsidiary, Lenskart Singapore
Pte. Ltd. acquired an 50 % stake in Matt Optical Co. Ltd. (Thailand) for '70.58 million.

3. Subsequent to year end 31 March 2026, the Company's wholly owned subsidiary, NESO Brand Pte.
Ltd. acquired an additional 5 % stake in Le Petit Lunetier for '28.08 million.

55 The title deeds of all immovable properties disclosed in the financial statements (other than properties
where the Company is a lessee and the lease agreements have been duly executed in its favour) are held
in the name of the Company, except for a land parcel located in Hyderabad, wherein the title deeds are
currently held in the name of Telangana Industrial Infrastructure Corporation Limited (“TNC”).

The Company has made payment of the agreed consideration and applicable stamp duty and has been
granted poss ession of the land during the current year. The transfer of title in favour of the Company is
pending due to fulfilment of specified conditions stipulated by TIIC, including completion of the project,
commencement of commercial production, and achievement of the prescribed level of land utilisation.
As on 31 March, 2026, Company has commenced civil construction activities on the land. Based on the
progress of the project, Management expects to comply with the specified conditions and obtain the
transfer of title in due course.

56 During the year ended 31 March 2026, the Company has completed its Initial Public Offer (IPO) of
181,058,478 equity shares of face value '2 each. The issue comprised of 53,495,905 shares offered as
fresh issue and 127,562,573 shares offered as offer for sale aggregating to '72,780.15 million. Pursuant to
IPO, the equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and
BSE Limited (BSE) on 10 November 2025.

Out of the total proceeds raised through the Fresh Issue pursuant to the IPO, '1,770.60 million had
been utilised up to 31 March 2026 towards the objects of the Offer as disclosed in the Offer Document.
The remaining unutilised proceeds were temporarily invested in fixed deposits and will be utilised in line
with the stated objects of the offer. The utilisation of the IPO proceeds of '21,500 million is as under:-

57 Rounded off figures

Certain amounts (currency value or percentages) shown in the various tables and paragraphs included in
these financial statements have been rounded off or truncated as deemed appropriate by the management
of the Company.