Aditya Infotech Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

This Red Herring Prospectus may include forward-looking statementTs that involve risks and uncertainties, and our actual financial performance may materially vary from the conditions contemplated in such forward-looking statements as a result of various factors, including those described below and elsewhere in this Red Herring Prospectus. For further information, see "Forward-Looking Statements" on page 25. Also read "Risk Factors" and Significant Factors Affecting our Results of Operations and financial condition" on pages 41 and 406, respectively, for a discussion of certain factors that may affect our business, financial condition or results of operations.

Unless otherwise indicated or the context otherwise requires, the financial information for Fiscal 2025, 2024 and 2023 included herein is derived from the Restated Consolidated Financial Information, included in this Red Herring Prospectus, which have been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and the Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the ICAI, as amended from time to time, which differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries. For further information, see "Financial Information" on page 331.

On September 18, 2024, we acquired the remaining 50.00% equity shares in AIL Dixon Technologies Private Limited ("AIL Dixon ") from Dixon Technologies (India) Limited. Prior to acquisition of such equity shares, AIL Dixon was a joint venture between our Company and Dixon Technologies (India) Limited, pursuant to a joint venture agreement and the manufacturing of our products were carried out by AIL Dixon. With this acquisition, we have consolidated all operations at the group level, while AIL Dixon continues to manufacture our products. As per our accounting policy, investments in joint venture are accounted for using the equity method. Accordingly, the Restated Consolidated Financial Information reflects our share of the results of operations and our share ofprofit or loss of AIL Dixon in the restated consolidated statement of profit and loss.

Unless otherwise indicated or the context otherwise requires, the financial information included herein is based on or derived from our Restated Consolidated Financial Information included in this Red Herring Prospectus. Additionally, see "Definitions and Abbreviations" on page 6 for certain terms used in this section.

Unless otherwise indicated, industry and market data used in this section has been derived from the industry report titled "Video Surveillance and Security Market in India" dated July 15, 2025 (the "F&S Report") prepared and issued by F&S, appointed by us on May 28, 2024 and exclusively commissioned and paid for by us for the purposes of confirming our understanding of the industry, in connection with the Offer. Unless otherwise indicated, financial, operational, industry and other related information derived from the F&S Report and included herein with respect to any particular year refers to such information for the relevant calendar year. A copy of the F&S Report is available on the website of our Company at https://www.adityagroup.com/. For more information, see "Risk Factors - Industry information included in this Red Herring Prospectus has been derived from an industry report prepared by F&S exclusively commissioned and paid for by us for such purpose." on page 94. Also see, "Certain Conventions, Use of Financial Information and Market Data and Currency of Presentation - Industry and Market Data" on page 22.

OVERVIEW

For information in relation to our business, see "Our Business" on page 240.

PRESENTATION OF FINANCIAL INFORMATION

The restated financial information of our Company, our subsidiary (together, the "Group") and joint venture comprise of the restated consolidated statement of assets and liabilities as at March 31, 2025, March 31, 2024 and March 31, 2023, the related restated consolidated statement of profit and loss (including other comprehensive income), the restated consolidated statement of cash flows and the restated consolidated statement of changes in equity for years ended March 31, 2025, March 31, 2024 and March 31, 2023, and the material accounting policy information and explanatory notes (collectively, the "Restated Consolidated Financial Information").

The Restated Financial Information have been compiled from the audited financial statements of our Group as at and for the years ended March 31, 2025, March 31, 2024 and March 31, 2023 prepared in accordance with the Indian Accounting Standards (referred to as "Ind AS") as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules 2015, as amended, and other accounting principles generally accepted in India.

The basis for preparation of the restated consolidated financial statements for Fiscal 2024 and Fiscal 2025 is different due to a change in the accounting treatment of AIL Dixon. During Fiscal 2024, AIL Dixon was accounted for as a joint venture, and equity method for consolidation was applied. As a result, only AIL Dixons share of profit was included in the Restated Consolidated Financial Information. However, with effect from September 18, 2024, AIL Dixon became a Subsidiary of our Company. Consequently, from September 18, 2024 to March 31, 2025, the line-by-line consolidation method has been adopted. Under this approach, AIL Dixons assets, liabilities, income, and expenses for the specified period have been fully consolidated, subject to inter-company eliminations.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Our results of operations and financial condition are affected by a number of important factors including:

Growth of the Security and Surveillance Market

Our results of operations and financial condition are affected by general factors affecting the security and surveillance industry, including the development of end markets, economic conditions in India and global markets that affect the business activities in general.

Frost & Sullivan estimates the global video surveillance market to be valued at $35.9 million in Fiscal 2025. The market is estimated to grow by CAGR of 10.36% till Fiscal 2030. Correspondingly, video surveillance volume is also expected to grow from 1,112.9 million units in Fiscal 2025 to 1,600.1 million units in the next five years. The security and video surveillance market in India has witnessed a notable change, with the adoption of advanced technologies and the integration of diverse security systems. This shift has led to the development of smarter, more efficient surveillance solutions that meet the changing needs of various users. These changes have brought significant growth and innovation to the industry, showing a strong effort to keep up with Indias evolving security needs. The emergence of IoT and AI- based cameras is seen as a significant advancement in the video surveillance and security market and considered as a major leap forward in technological capabilities. The video surveillance market in India is experiencing a surge, with a market value estimated at ?106.2 billion during Fiscal 2025. This growth is expected to continue at a CAGR of 16.46% annually until Fiscal 2030, with the market size estimated to reach U227.4 billion by then. The number of video surveillance units sold is also positioned for significant growth, with an estimated volume of 39.7 million units in Fiscal 2025 and expected to reach 74.6 million units by Fiscal 2030. This growth can be credited to various factors. An increasing emphasis on security for individuals and businesses, coupled with government endeavors such as the promotion of enhanced security infrastructure in smart city initiatives, are likely contributing to this trend. Advances in video surveillance technology, including high-definition cameras and analytics software, would make the systems more attractive. (Source: F&SReport)

Market acceptance of our security and surveillance products and solutions depends upon many other factors, including product performance, reliability and affordability, customer preferences and research and development efforts.

Technology and Product Develop Costs

The growth of our revenues depends on our ability to make technological advancements and develop products and solutions that meet the evolving needs of our customers. We believe that our integrated hardware and software capabilities have given us the flexibility to choose the right technology roadmap and deliver products and solutions that are satisfactory to our customers, and that our solutions with highly synergistic integration of hardware and software will continue to differentiate us from other competitors.

The table below sets forth our technology and related costs and research and development expenses in the corresponding periods:

Particulars	Fiscal 2025		Fiscal 2024		Fiscal 2023
	Amount (? in million)	Percentage of Revenue from Operations (%)	Amount (? in million)	Percentage of Revenue from Operations (%)	Amount (? in million)	Percentage of Revenue from Operations (%)
Technology and related costs	132.96	0.43	65.09	0.23	46.12	0.20
Research and development * expenses	176.06	0.57	152.99	0.55	77.90	0.34

Our manufacturing capabilities are augmented by an in-house R&D team comprising 86 employees, as of March 31, 2025, which focusses on innovation through our research and development center in Noida, Uttar Pradesh. We intend to enhance our R&D capabilities and maintain our competitive edge in the industry by fully utilising our R&D facilities and resources. Our ability to improve our existing products and develop new products will allow us to further expand our sales volumes and drive our business, and will consequently affect our financial condition and results of operations.

We have a comprehensive product portfolio of surveillance products as a result of our R&D efforts. The model, features and ordered volume of our products may vary from year to year depending on, among others, the business plan and performance of our customers for the relevant year. Depending on the customers requirements and specifications, our products have different cost bases and selling prices, and any change in the structure of revenue contribution from our product and customer mix may have a corresponding impact on our overall gross profit margin and will consequently have a direct effect on our financial condition and results of operations.

Ability to Control Manufacturing Costs and Manage Supply Chain

Our business is primarily classified as: (i) manufacturing and trading activities; and (ii) trading activities. Our manufacturing and trading activities include the manufacture and sale of our CP PLUS products and the provision of after-sales services in relation to the CP PLUS products sold by us, while our trading activities are limited to distribution of products of Dahua.

On September 18, 2024, we acquired AIL Dixon. AIL Dixon was a joint venture between our Company and Dixon Technologies (India) Limited. Prior to the acquisition, the manufacturing of our products were carried out by AIL Dixon, pursuant to a joint venture agreement and certain ancillary agreements entered into by our Company and Dixon Technologies (India) Limited. As a result of this acquisition, we were able to consolidate all of the operations into our business at a group level. Our Material Subsidiary, AIL Dixon continues to engage in the manufacturing of our products at our Kadapa Facility. We have also entered into a services agreement dated September 26, 2024 for the provision of certain services by Dixon Technologies (India) Limited in relation to our manufacturing operations. For further information, see "Risk Factors - We rely primarily on our synergies with AIL Dixon Technologies India Private Limited and Dixon Technologies (India) Limited, for the manufacture of our products. Any disruption in our relations may adversely affect our business, results of operations, cash flows and financial condition." and "History and Certain Corporate Matters - Acquisition of AIL Dixon Technologies Private Limited" on pages 46 and 296, respectively.

Our profitability depends significantly on our ability to control product costs, which are affected by a number of factors, such as costs of components, raw materials and other supplies, as well as our manufacturing efficiency. Our manufacturing capabilities are crucial to the success of large-scale production and delivery.

Our operations and performance are directly related to and affected by the cost of various components used in the manufacture of our surveillance products including chips, lenses, printed circuit board components, housing and sensors. The table below sets forth cost of raw materials consumed by our Material Subsidiary, AIL Dixon as part of its manufacturing activities in the periods indicated:

Particulars	Fiscal
	2025		2024		2023
	Amount (? in million)	Percentage of Revenue from Operations (%)	Amount (? in million)	Percentage of Revenue from Operations (%)	Amount (? in million)	Percentage of Revenue from Operations (%)
Cost of raw materials consumed by AIL Dixon	12,796.52	91.81	11,796.12	93.23	9,203.37	93.47

The availability of raw materials and components is dependent on the global supply chain, import duties, currency exchange rates, natural disasters, changing economic conditions, or other geographic and political events. Additionally, the prices of raw material and components also affected severely on account of global sea and air freight indices. Further, raw material prices can be volatile due to a number of factors beyond our control, including global demand and supply, general economic and political conditions, transportation and labour costs, labour unrest, natural disasters, competition, import duties, fuel prices, power tariffs and currency exchange rates, and there are uncertainties inherent in estimating such variables, regardless of the methodologies and assumptions that we may use. This volatility in commodity prices can significantly affect our raw material costs. The table below sets forth details of parts and materials sourced by AIL Dixon within India and from outside India for the periods indicated:

Particulars	Fiscal
	2025	2024	2023
Purchase of parts and materials sourced from India in million)	2,091.67	929.33	1,293.94
Purchase of parts and materials sourced from India, as percentage of cost of materials consumed (%)	15.25	8.12	13.84
Purchase of parts and materials sourced from outside India in million)	11,627.22	10,515.56	8,056.14
Purchase of parts and materials sourced from outside India, as a percentage of cost of materials consumed (%)	84.75	91.88	86.16

We plan to continuously invest in our manufacturing capabilities, including refining our production processes and enhancing the level of automation of our manufacturing production lines, in order to ramp up our production capacity while lowering unit cost. We believe that as we ramp up the production volume of our security and surveillance products, we will achieve economies of scale such that our manufacturing costs and operating expenses as a percentage of our total revenue will decrease. Additionally, we will also explore different ways to enhance our manufacturing capabilities by partnering with contract manufacturers in order to meet mass production needs while controlling capital expenditure.

An inability to ensure continuously supply of products from Dahua or other major suppliers or any significant fluctuations in our cost of components could materially impact our cost of sales and gross profit margins, and may have a substantial impact on our results of operations.

Product Mix and Pricing

We have a comprehensive portfolio of surveillance products and during Fiscal 2025 offered 2,986 SKUs. The model, features and ordered volume of our products may vary from year to year depending on, among others, the business plan and performance of our customers for the relevant year. Our pricing and margins depend on the volumes sold and features of the solutions we offer to our customers. The table below sets forth the contribution of the sale of our key products to our revenue from operations:

Particulars	Fiscal
	2025		2024		2023
	Amount (? in million)	Percentage of Revenue from Operations (%)	Amount (? in million)	Percentage of Revenue from Operations (%)	Amount (? in million)	Percentage of Revenue from Operations (%)
Revenue from sale of CCTV cameras, NVRs, DVRs and PTZ	24,567.95	78.95	21,958.01	78.92	18,569.08	81.28
Revenue from sale of other products and provision of • * services	6,550.77	21.05	5,866.25	21.08	4,276.39	18.72

Additionally, we make significant investments in new solutions for both cost improvements and new features that we expect to drive revenue and maintain margins. Our average selling price can vary by market and application due to market-specific supply and demand, the maturation of products launched in previous years and the launch of new products by us or our competitors. Depending on the customers requirements and specifications, our products have different cost bases and selling prices, and any change in the structure of revenue contribution from our product and customer mix may have a corresponding impact on our overall gross profit margin and will consequently have a direct effect on our financial condition and results of operations.

Maintain our Relationship with Dahua

Dahua Technology is a video-centric smart IoT solution and service provider, operating in 180 countries and regions. (Source: F&S Report) A significant portion of our revenue from operations is generated from sale of products supplied by Dahua. Set forth below is the revenue generated from sale of products supplied by Dahua for the periods indicated:

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Revenue from sale of products supplied by Dahua (? in million)	7,672.07	7,906.26	7,327.45
Revenue from sale of products supplied by Dahua, as a percentage of revenue from operations (%)	24.65	28.41	32.07

We consider our key value propositions to be our relationships with our channel partners, extensive pan-India operations and commitment to quality of service, which have reflected in our increasing customer stickiness over the years. Our relationship with Dahua began over 16 years ago and we have grown from being one of the distributors of Dahuas products to becoming their exclusive distributor in India. The table below sets forth details of parts and components purchased by our Material Subsidiary from Dahua for the periods indicated:

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Total purchase of parts and components from Dahua (? in million)	10,184.14	8,928.43	7,134.58
Total purchase of parts and components from Dahua as percentage of total purchase of parts and components (%)	74.23	78.01	76.30

Our business and results of operations are therefore, dependent on our ability to maintain our relationships with Dahua, and procure products for distribution. If there is reduced demand for Dahuas products that we distribute or if Dahua chooses to reduce the number of products they offer through our distribution network, or is unwilling to continue to do business with us or intends to modify the terms of their contract to our detriment, there could be an adverse effect on our business. For further information, see "Risk Factors - A significant portion of our revenue from operations is generated from sale ofproducts supplied by Dahua which contributed to 24.65% of our revenue from operations in Fiscal 2025. Any disruption in the supply of products for sale by Dahua at commercially viable terms, or demand thereof, may adversely affect our business, results of operations, cash flows and financial condition. Further, our distribution agreements with Dahua have certain restrictive covenants and can be terminated without cause, which could negatively impact our business, results of operation and financial condition." on page 45.

NON-GAAP MEASURES

EBITDA, EBTIDA Margin, Return on Equity and Return on Capital Employed (together, "Non-GAAP Measures"), presented in this Red Herring Prospectus is a supplemental measure of our performance and liquidity that is not required by, or presented in accordance with, Ind AS, Indian GAAP, IFRS, U.S. GAAP or any other GAAP. Further, these Non- GAAP Measures are not a measurement of our financial performance or liquidity under Ind AS, Indian GAAP, IFRS, U.S. GAAP or any other GAAP and should not be considered in isolation or construed as an alternative to cash flows, profit for the years or any other measure of financial performance or as an indicator of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities derived in accordance with Ind AS, Indian GAAP, IFRS, U.S. GAAP or any other GAAP. In addition, these Non-GAAP Measures are not standardized terms, hence a direct comparison of these Non-GAAP Measures between companies may not be possible. Other companies may calculate these Non-GAAP Measures differently from us, limiting its usefulness as a comparative measure. Although such Non-GAAP Measures are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that they are useful to an investor in evaluating us as they are widely used measures to evaluate a companys operating performance.

Reconciliation of Non-GAAP measures Reconciliation of EBITDA and EBITDA Margin

The table below provides a reconciliation of EBITDA and EBITDA Margin. EBITDA is calculated as restated profit before exceptional items and tax plus finance costs, depreciation and amortization expense. EBITDA Margin is EBITDA divided by Total Income.

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Particulars	Fiscal 2025	(< in minion, unless Fiscal 2024	otherwise indicated) Fiscal 2023
Restated profit before exceptional items and tax (A)	1,854.52	1,898.55	1,489.69
Finance costs (B)	418.12	309.09	232.23
Depreciation and amortization expense (C)	311.23	157.13	88.52
EBITDA (D = A + B +C)	2,583.87	2,364.77	1,810.44
Total Income (E)	31,229.26	27,959.60	22,955.56
EBITDA Margin (F = D/E) (%)	8.27	8.46	7.89

Reconciliation of Return on Equity

The table below provides a reconciliation of return on equity ("RoE"). Return on Equity is calculated as restated profit for the year divided by total equity.

Particulars	As of / For the year ended March 31, 2025	As of / For the year ended March 31, 2024	As of / For the year ended March 31, 2023
Restated Profit after Tax (A)	3,513.69	1,151.72	1,083.11
Total Equity (B)	10,176.67	4,242.09	3,115.94
Return on Equity (C = A/B) (%)	34.53	27.15	34.76

Reconciliation of Return on Capital Employed

The table below provides a reconciliation of return on capital employed ("RoCE"). RoCE is calculated as EBIT divided by capital employed. EBIT is calculated as restated profit before tax plus finance costs.

Particulars	As of/ For the year ended March 31,
	2025	2024	2023
EBIT
Restated Profit before Tax (A) (? in million)	4,340.82	1,646.19	1,431.82
Add - Finance costs (B)	418.12	309.09	232.23
EBIT (C = A+B)	4,758.94	1,955.28	1,664.05
Capital Employed
Total Equity (D)	10,176.67	4,242.09	3,115.94
Add - Non Current Borrowings (E)	149.89	280.16	427.81
Add - Current Borrowings (F)	3,978.55	3,774.36	3,668.17
Total Capital Employed (G = D + E +F)	14,305.11	8,296.61	7,211.92
Return on Capital Employed (H = C / G) (%)	33.27	23.57	23.07

MATERIAL ACCOUNTING POLICIES

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is being made.

Revenue is measured at the transaction price for each separate performance obligation taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The transaction price is net of estimated customer returns, rebates and other similar allowances.

Sale of security and surveillance equipment and components

Revenue is recognized upon transfer of control of promised goods to customers in an amount that reflects the consideration which Group expects to receive in exchange of those goods. Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer, based on the terms of contract with customers which generally coincides with dispatch of products to the customers in case of domestic sales and on the basis of bill of lading in the case of export sales.

Revenue from the sale of goods is recognised when the control of the product is transferred, the goods are delivered and titles have passed, at which time all the following conditions are satisfied:

• The Group has transferred to the buyer the significant risks and rewards of ownership of the goods;

• The Group has a present right to payment for the asset;

• The Group has transferred physical possession of the asset, whereby the customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset or to restrict the access of other entities to those benefits.

Provision for contractual warranty is recognised as per the principles defined under Ind AS 37 Provisions, Contingent liabilities and Contingent assets.

When the consideration is received, before the Group transfers goods to the customer, the Group presents the consideration as contract liability.

Rendering of services including business support, survelliance, cloud storage and technical training services

• Revenue from business support services, survelliance services and cloud storage services is recognised over a period of time when the services are rendered as per the terms of the respective contracts with the customers.

• Revenue from other services including technical training services are recognised at a point in time as and when the services are rendered as per the terms of the respective contracts with the customers.

Dividend income

Dividend is recognised when right to receive the payment is established.

Interest income

Interest income from a financial asset is recognised and accrued using effective interest rate method.

Insurance and other claims

Revenue in respect of claims is recognized when no significant uncertainty exists with regard to the amount to be realized and the ultimate collection thereof.

Assets and liabilities arising from rights of return

Right of return assets

Right of return asset represents the Companys right to recover the goods expected to be returned by customers. The asset is measured at the former carrying amount of the inventory, less any expected costs to recover the goods, including any potential decreases in the value of the returned goods. The Holding Company updates the measurement of the asset recorded for any revisions to its expected level of returns, as well as any additional decreases in the value of the returned goods.

Refund liabilities

A refund liability is the obligation to refund some or all of the consideration received (or receivable) from the customer and is measured at the amount the Holding Company ultimately expects it will have to return to the customer. The Holding Company updates its estimates of refund liabilities (and the corresponding change in the transaction price) at the end of each reporting period.

Inventories

Raw materials, stores and spare parts, and packing materials are considered to be realisable at cost, if the finished products, in which they will be used, are expected to be sold at or above cost. The cost is computed by using ‘First In First Out ("FIFO"). Cost includes expenditure incurred for acquiring inventories like purchase price, import duties, taxes (net of tax credit) and other costs incurred in bringing the inventories to their present location and condition.

Finished goods and work in progress: Such inventories are stated at lower of cost and net realisable value. Cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity but excludes borrowing costs incurred in bringing the inventories to their present location and condition. The cost of finished goods and work-in-progress is computed on FIFO basis.

Traded goods and others: Such inventories are stated at lower of cost and net realisable value. Cost determined on weighted average cost basis and net-realisable value. Cost includes freight, taxes and duties net of GST input tax credit, wherever applicable. Customs duty payable on material in bonded warehouse is added to the cost of the material.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion

and the estimated costs necessary to make the sale.

Property, plant and equipment

Property plant and equipment are stated at their cost of acquisition. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost can be measured reliably. Property, Plant and Equipment which are significant to the total cost of that item of Property, Plant and Equipment and having different useful life are accounted separately. Depreciation on Property, Plant and Equipment (other than related to manufacturing / assembly facility) is provided using written down value method on depreciable amount. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013, except in respect of certain categories of assets as mentioned below in respect of which the useful life has been assessed based on technical assessment.

The estimates of useful life of Property, Plant and Equipments are as follows:

Particulars	Useful life as per management assessment	Useful life as per Schedule II of the Act
Building	60 years	60 years
Computers and Peripherals
- Computers	3 years	3 years
- Servers	6 years	6 years
Office Equipment	5 years	5 years
Furniture, Fixture and Fittings	10 years	10 years
Motorcycles and scooters	10 years	10 years
Motor cars	8 years	8 years
Plant and machinery-moulds	5 years	8 years
Plant and machinery	15 years	15 years

For property, plant and equipment at manufacturing / assembly facility, depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using straight-line method as per the useful life as mentioned in Schedule II to the Companies Act, 2013 except in respect of certain categories of assets as below, in whose case the life of the assets has been assessed as under based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.

Particulars	Useful life as per Management Assessment	Useful life as per Schedule II of the Act
Factory buildings	10 years	30 years
Plant and machinery	15 years	15 years
Dies and moulds	15 years	15 years
Furniture and fixtures	10 years	10 years
Electrical Installations	10 years	10 years
Office equipment	5 years	5 years
Computers and Peripherals
- Computers	3 years	3 years
- Servers	6 years	6 years
Vehicles	8 years	8 years

De-recognition of Property, plant & equipment

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in restated consolidated statement of profit and loss.

Capital Work in Progress

Capital work-in-progress is recorded at its cost, which encompasses expenses incurred during the construction period. This cost also includes interest on the amount borrowed for the acquisition of qualifying assets and other expenses related to project implementation, to the extent that these expenses pertain to the period before the commencement of commercial production/ use.

Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

Research costs are expensed as incurred. Development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Group has an intention and ability to complete and use or sell the product and the costs can be measured reliably. The costs, which can be capitalized include the cost of material, direct labor, overhead costs that are directly attributable to prepare the asset for its intended use.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the consolidated statement of profit and loss unless such expenditure forms part of carrying value of another asset.

Intangible assets	Amortisation period
Computer Software	6 years
Trademark	10 years
Technology Platform	3 - 6 years
Technical know how	4 - 5 years
Customer Relationship	5 years

De recognition of Intangible Assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gain or loss arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in restated consolidated statement of profit and loss when the asset is derecognised.

Intangible assets under development

Intangible assets under development represents expenditure incurred in respect of intangible assets under development and are carried at cost less accumulated impairment loss, if any. Cost includes related acquisition expenses, development costs, borrowing costs and other direct expenditure.

Investment properties

Investment properties are properties held to earn rentals or for capital appreciation, or both. Investment properties are measured initially at their cost of acquisition. The cost comprises purchase price, borrowing cost, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group. All other repair and maintenance costs are recognized in consolidated statement of profit or loss as incurred.

Investment properties are subsequently measured at cost less accumulated depreciation and impairment losses. Depreciation on investment properties is provided on the written down value method computed on the basis of useful lives as prescribed in the Schedule II of the Act:

Investment property	Useful life as per Schedule II of the Act (in years)
Building	60

The residual values, useful lives and method of depreciation are reviewed at the end of each financial year.

De-recognition

Investment properties are de-recognized either when they have been disposed off 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 recognized in restated consolidated statement of profit and loss in the period of de-recognition.

Impairment of non-financial assets- property, plant and equipment, intangible assets and investment property

At the end of each reporting period, the Group reviews the carrying amount of property, plant and equipment and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units.

An impairment loss is recognised in the consolidated statement of profit and loss to the extent, assets carrying amount exceeds its recoverable amount. The recoverable amount is higher of an assets fair value less cost of disposal and value in use. Value in use is based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and risk specific to the assets.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generated unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Cash and cash equivalents

Cash and cash equivalents for the purposes of consolidated cash flow statement comprise cash at bank and in hand, cheques in hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

Statement of Cash Flows

Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated.

Earnings per Share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group 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 share split, fresh issue, bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares considered for

deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

Provisions, Contingent liabilities and Contingent assets

Provisions

Provisions are recognised when the Group 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 at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. The expense relating to a provision is presented in the consolidated statement of profit and loss.

Contingent liabilities A contingent liability is recognised for:

• Possible obligation which will be confirmed only by future events not wholly within the control of the Group.

• Present obligation arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of obligation cannot be made.

Contingent assets

Contingent assets are not recognised in the Restated Consolidated Financial Information. Contingent assets are disclosed in the Restated Consolidated Financial Information to the extent it is probable that economic benefits will flow to the Group from such assets.

Leases: Right-of-use asset and Lease liabilities

The Groups lease asset classes primarily consist of leases for land and buildings- warehouse and office premises, IT equipment and vehicles. The Group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether: (i) the contract involves the use of an identified asset (ii) the Group has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Group has the right to direct the use of the asset.

At the date of commencement of the lease, the Group recognises a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (shortterm leases), and low value leases. For these short-term, and low value leases, the Group recognises the lease rentals as an operating expense in the restated consolidated statement of profit and loss.

Right-of-use assets

At the commencement date, the right of use assets is measured at cost. The cost includes an amount equal to the lease liabilities plus adjusted for the amount of prepaid or accrued lease payments. After the commencement date, the right of use assets is measured in accordance with the accounting policy for property, plant and equipment i.e. right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. Right-of-use assets are depreciated on a straight-line basis over the period of the lease term.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability;

• any lease payments made at or before the commencement date less any lease incentives received;

• any initial direct costs, and

• restoration costs.

Lease liabilities

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Group changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU assets have been separately presented in the consolidated Balance Sheet and lease payments have been classified as financing cash flows. The Group has used a single discount rate to a portfolio of leases with similar characteristics.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the lessees incremental borrowing rate is used.

Lease term

At the commencement date, the Group determines the lease term which represents non-cancellable period of initial lease for which the asset is expected to be used, together with the periods covered by an option to extend or terminate the lease, if the Group is reasonably certain at the commencement date to exercise the extension or termination option.

Short term leases and leases of low-value assets

The Group 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 exemption to leases 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 or another systematic basis which is more representative of the pattern of use of underlying asset.

Others

The following is the summary of practical expedients elected on initial application:

• Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.

• Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application and low value asset.

Right-of-use assets are generally depreciated over the shorter of the assets useful life and the lease term on a straightline basis. Payments associated with short-term leases and all leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.

Foreign Currencies

The Groups financial statements are presented in INR which is also the Groups functional currency. Foreign currency transactions are recorded on initial recognition in the functional currency, using the exchange rate prevailing at the date of transaction. Monetary assets and liabilities outstanding at the year-end are translated at the rate of exchange prevailing at the year-end and the gain or loss, is recognised in the Consolidated statement of profit and loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of nonmonetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other

borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an Group incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

Retirement and other employee benefits

Defined contribution plans

Contributions to defined contribution schemes such as employees state insurance, labour welfare fund, superannuation scheme, employee pension scheme etc. are charged as an expense based on the amount of contribution required to be made as and when services are rendered by the employees. Groups provident fund contribution, in respect of certain employees, is made to a Government administered fund and charged as an expense to the consolidated statement of profit and loss. The above benefits are classified as Defined Contribution Schemes as the Group has no further defined obligations beyond the monthly contributions.

Defined benefit plan

Gratuity

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit obligation is determined by actuarial valuation as on the balance sheet date, using the projected unit credit method. Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to restated consolidated statement of profit and loss in subsequent periods.

Past service costs are recognised in restated consolidated statement of profit and loss on the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Group recognises related restructuring costs.

The Group recognises the following changes in the net defined benefit obligation as an expense in the consolidated statement of profit and loss:

• Service costs comprising current service costs, past-service costs, gains and losses on curtailments and nonroutine settlements; and

• Net interest expense or income.

Other long-term employee benefits (compensated absences)

Liability in respect of compensated absences becoming due or expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the consolidated Statement of profit and loss in the year in which such gains or losses are determined.

Short-term employee benefits

Expense in respect of other short-term benefits is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee.

Taxes

Current tax

Current income tax, assets and liabilities are measured at the amount expected to be paid to or recovered from the taxation authorities in accordance with the Income Tax Act, 1961 and the Income Computation and Disclosure Standards ("ICDS") enacted in India by using tax rates and the tax laws that are enacted as at the reporting date.

Current income tax relating to item recognized outside the consolidated statement of profit and loss is recognized outside profit or loss (either in other comprehensive income or equity). Current tax items are recognized in correlation to the underlying transactions either in OCI or directly in equity.

The Groups management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred tax

Deferred income tax is recognised using the balance sheet approach. Deferred tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in Restated Consolidated Financial Information, except when the deferred tax arises from the initial recognition of goodwill, an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred income tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

Deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantially enacted by the end of the reporting period.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

Indirect taxes

GST input tax credit on materials purchased/ services availed for production/ input services are taken into account at the time of purchase and availing services. GST input tax credit on purchase of capital items wherever applicable are taken into account as and when the assets are acquired. The GST input tax credit so taken is utilised for payment of GST on supply of goods and services. The unutilised GST input tax credit is carried forward in the books of accounts as balance with government authorities.

Financial instruments

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provision of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial asset or financial liabilities, as appropriate, on initial recognition. Transaction cost directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets

Initial Recognition and Measurement

All Financial Assets except trade receivables are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of Financial Assets, which are not at Fair Value Through Profit or Loss, are adjusted to the fair value on initial recognition. Purchase and sale of Financial Assets are recognised using trade date accounting. Trade receivables that do not contain a significant financing component are measured at the transaction price.

Subsequent Measurement

• Financial Assets Measured at Amortised Cost ("AC")

A Financial Asset is measured at Amortised Cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the Financial Asset give rise on specified dates to cash flows that represents solely payments of principal and interest on the principal amount outstanding.

• Financial Assets Measured at Fair Value Through Other Comprehensive Income ("FVTOCI")

A Financial Asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling Financial Assets and the contractual terms of the Financial Asset give rise on specified dates to cash flows that represents solely payments of principal and interest on the principal amount outstanding.

• Financial Assets Measured at Fair Value Through Profit or Loss ("FVTPL")

A Financial Asset which is not classified in any of the above categories is measured at FVTPL. Financial assets are reclassified subsequent to their recognition, if the Group changes its business model for managing those financial assets. Changes in business model are made and applied prospectively from the reclassification date which is the first day of immediately next reporting period following the changes in business model in accordance with principles laid down under Ind AS 109 - Financial Instruments.

• Impairment of financial assets

In accordance with Ind AS 109, the Group applies expected credit loss ("ECL") model for measurement and recognition of impairment loss for financial assets.

ECL is the weighted-average of difference between all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Group is required to consider -

¦ All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.

¦ Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms

Trade receivables

In respect of trade receivables, the Group applies the simplified approach of Ind AS 109, which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

Other financial assets

In respect of its other financial assets, the Group assesses if the credit risk on those financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the Group measures the loss allowance at an amount equal to 12-month expected credit losses, else at an amount equal to the lifetime expected credit losses.

When making this assessment, the Group uses the change in the risk of a default occurring over the expected life of the financial asset. To make that assessment, the Group compares the risk of a default occurring on the financial asset as at the balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition.

Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor retains subsequently all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for the amount it may have to pay.

On derecognition of a financial asset in its entirety, the difference between the assets carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in restated consolidated statement of profit and loss if such gain or loss would have otherwise been recognised in restated consolidated statement of profit and loss on disposal of that financial asset.

Financial liabilities

Initial Recognition and Measurement

All Financial Liabilities are recognized at fair value and in case of borrowings, net of directly attributable cost. Fees of recurring nature are directly recognised in the consolidated restated consolidated statement of profit and loss as finance cost.

Subsequent Measurement

Financial Liabilities are carried at amortized cost using the effective interest method.

Loans and borrowings

This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in consolidated statement of profit and loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and transactions costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the restated consolidated statement of profit and loss.

Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is due within 12 months after reporting period. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the restated consolidated statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Fair value measurement

The Group measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participants ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the Restated Consolidated Financial Information are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquirees identifiable net assets. Acquisition- related costs are expensed as incurred.

The Group determines that it has acquired a business when the acquired set of activities and assets include an input and a substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organised workforce with the necessary skills, knowledge, or experience to perform that process or it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing outputs.

At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognised at their acquisition date fair values. For this purpose, the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition fair values irrespective of the fact that outflow of resources embodying economic benefits is not probable. However, the following assets and liabilities acquired in a business combination are measured at the basis indicated below:

• Deferred tax assets or liabilities, and the liabilities or assets related to employee benefit arrangements are recognised and measured in accordance with Ind AS 12 Income Tax and Ind AS 19 Employee Benefits respectively.

• Potential tax effects of temporary differences and carry forwards of an acquiree that exist at the acquisition date or arise as a result of the acquisition are accounted in accordance with Ind AS 12.

• Liabilities or equity instruments related to share based payment arrangements of the acquiree or share - based payments arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with Ind AS 102 Share-based Payments at the acquisition date.

• Assets (or disposal groups) that are classified as held for sale in accordance with Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.

• Reacquired rights are measured at a value determined on the basis of the remaining contractual term of the related contract. Such valuation does not consider potential renewal of the reacquired right.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

If the business combination is achieved in stages, any previously held equity interest is re-measured at its acquisition date fair value and any resulting gain or loss is recognised in profit or loss or OCI, as appropriate.

Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of Ind AS 109 Financial Instruments, is measured at fair value with changes in fair value recognised in profit or loss in accordance with Ind AS 109. If the contingent consideration is not within the scope of Ind AS 109, it is measured in accordance with the appropriate Ind AS and shall be recognised in profit or loss. Contingent consideration that is classified as equity is not re-measured at subsequent reporting dates and subsequent its settlement is accounted for within equity.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in OCI and accumulated in equity as capital reserve. However, if there is no clear evidence of bargain purchase, the entity recognises the gain directly in equity as capital reserve, without routing the same through OCI.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Groups cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

Where goodwill has been allocated to a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted through goodwill during the measurement period, or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. These adjustments are called as measurement period adjustments. The measurement period does not exceed one year from the acquisition date.

Share Based Payment

Employees of the Group also receive remuneration in the form of share-based payment transactions under Groups Employee Stock Option Scheme.

The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognized, together with a corresponding increase in share Options outstanding reserves in equity, over the period in which the performance and/or service conditions are fulfilled in employee benefits expense. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Groups best estimate of the number of equity instruments that will ultimately vest. The Statement of Profit and Loss expense or credit for a period represents the movement in cumulative expense recognized as at the beginning and end of that period and is recognized in employee benefits expense.

When the terms of an equity-settled award are modified, the minimum expense recognized is the expense had the terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction or is otherwise beneficial to the employee as measured at the date of modification. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss.

Derivative financial instruments

The Group uses derivative financial instruments, such as forward currency contracts to hedge its foreign currency risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses from changes in the fair value of derivatives are taken directly to consolidated statement of profit and loss.

Government grants and subsidies

Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

When the Group 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.

When loans or similar assistance are provided by governments or related institutions, with an interest rate below the current applicable market rate, the effect of this favourable interest is regarded as a government grant. The loan or assistance is initially recognised and measured at fair value and the government grant is measured as the difference between the initial carrying value of the loan and the proceeds received. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

Exceptional items

Items which are material by virtue of their size and nature are disclosed separately as exceptional items to ensure that financial statements allows an understanding of the underlying performance of the business during the year and to facilitate comparison with prior year.

Segment reporting

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

Identification of segments:

In accordance with Ind AS 108 Operating Segments, the operating segments used to present segment information are identified on the basis of information reviewed by the Groups management to allocate resources to the segments and

assess their performance. An operating segment is a component of the Group that engages in business activities from which it earns revenues and incurs expenses, including revenues and expenses that relate to transactions with any of the Groups other components.

Results of the operating segments are reviewed regularly by the CODM, to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available.

CHANGES IN ACCOUNTING POLICIES

There have been no changes in our accounting policies during Fiscal 2025, 2024 and 2023.

PRINCIPAL COMPONENTS OF INCOME AND EXPENDITURE

Revenue from operations comprises operating revenue which consists of sale of traded goods - security and surveillance equipments and components and service revenue which includes post sale warranty services.

Other operating revenue comprises business support services provided to our former joint venture, AIL Dixon; and technical services that include providing training relating to our security and surveillance products to third parties.

Other Income

Other income includes interest income on (i) bank deposits; (ii) security deposits; (iii) from customers; (iv) others; and

(v) on bonds; dividend income; provisions/liabilities no longer required written back; gain on currency fluctuation and translation (other than considered as finance cost); rental income; insurance claims / amount recovered against provsiion made; gain on investment measured at FVTPL; profit on sale of property, plant and equipment, gain on extinguishment and modification of lease; and miscellaneous income which includes duty draw back and fees towards partcipation in exhibitions.

Expenses

Our expenses comprise (i) purchase of stock-in-trade; (ii) changes in inventories of finished goods, stock-in-trdae and work-in-progress; (iii) employee benefits expense; (iv) finance costs; (v) depreciation and amortisation expense; and

(vi) other expenses.

Purchase of stock-in-trade

Includes purchase of products and components used in the manufacture of our products and includes chips, lenses, printed circuit board components, housing and sensors.

Changes in Inventory of Finished Goods, and Work-in-Progress

Changes in inventories of finished goods and work-in-progress is calculated based on the inventories at the beginning of year for finished goods and work-in-progress less and inventories at the end of the year for finished goods and work- in-progress.

Employee Benefits Expense

Employee benefit expense comprises (i) salaries, and wages; (ii) contribution to provident and other funds; (iii) gratuity expenses; and (iv) staff welfare expenses.

Finance Costs

Finance costs include: (i) interest expense on (A) credit facilities/loans from banks; (B) loan from related parties; (C) others; (ii) other finance and bank charges; and (iii) interest on lease liability.

Depreciation and Amortisation Expenses

Depreciation and amortisation expenses comprise (i) depreciation and amortization expense; (ii) depreciation on right- of-use assets; and (iii) depreciation on investment property.

Other Expenses

Other expenses primarily comprises (i) rent; (ii) rates and taxes; (iii) insurance; (iv) travelling and conveyance expenses; (v) legal and professional expenses; (vi) fees and subscription; (vii) telephone and internet charges; (viii) payment to auditors; (ix) electricity and water charges; (x) repair and maintenance - building; (xi) repair and maintenance - others; (xii) advertisement and business promotion expenses; (xiii) freight, cartage and handling charges; (xiv) product service and warranty expenses; (xv) Charity and donation; (xvi) Corporate Social responsibility expenses (also refer note 49); (xvii) Loss on sale/write off of property, plant and equipment (net); (xviii) Warehouse handling charges; (xix) Technical testing and certification fees; (xx) Web and IT Services; (xxi) Balances written off; (xxii) net (gain)/loss on currency fluctuation and translation (other than considered as finance cost); (xiii) recruitment expenses; (xxiv) office maintenance; (xxv) vehicle running and maintenance; (xxvi) printing and stationery; (xxvii) security expenses; (xxviii) training expenses; (xxix) postage and courier charges; (xxx) loss on investment measured at fair value through profit or loss; (xxxi) directors sitting fees; (xxxii) e-waste management; and (xxxiii) miscellaneous expenses.

RESULTS OF OPERATIONS FOR FISCAL 2025, 2024 AND 2023

The following table sets forth certain information with respect to our results of operations on a consolidated basis for Fiscal 2025, 2024 and 2023:

Particulars	Fiscal
	2025		2024		2023
	(? in million)	Percentage of Total Income (%)	(? in million)	Percentage of Total Income (%)	(? in million)	Percentage of Total Income (%)
Income
Revenue from operations	31,118.72	99.65	27,824.26	99.52	22,845.47	99.52
Other income	110.54	0.35	135.34	0.48	110.09	4.48
Total Income	31,229.26	100.00	27,959.60	100.00	22,955.56	100.00
Expenses
Cost of materials consumed	7,038.30	22.54	-	-	-	-
Purchases of stock-intrade	18,031.57	57.74	22,698.63	81.18	21,083.83	91.85
Changes in inventories of finished goods, stock-in-trade and work in progress	(645.43)	(2.07)	20.77	0.07	(2,093.31)	(9.12)
Employee benefits expense	2,033.26	6.51	1,338.57	4.79	1,032.46	4.50
Finance costs	418.12	1.34	309.09	1.11	232.23	1.01
Depreciation and amortization expense	311.23	1.00	157.13	0.56	88.52	0.39
Other expenses	2,187.69	7.01	1,536.86	5.50	1,217.01	5.30
Total expenses	29,374.74	94.06	26,061.05	93.21	21,560.74	93.92
Restated Profit before share of profit in joint venture and tax	1,854.52	5.94	1,898.55	6.79	1,394.82	6.08
Share of profit in joint venture	-	-	-	-	94.87	0.41
Restated Profit before exceptional items and tax	1,854.52	5.94	1,898.55	6.79	1,489.69	6.49
Exceptional items
Gain on account of fair valuation of previously held equity interest	(2,486.30)	(7.96)
Share of loss in joint venture	-	-	294.50	1.05	-	-
Others	-	-	(42.14)	(0.15)	57.87	0.25
Restated profit before	4,340.82	13.90	1,646.19	5.89	1,431.82	6.24
Particulars	Fiscal
	2025		2024		2023
	(? in million)	Percentage of Total Income (%)	(? in million)	Percentage of Total Income (%)	(? in million)	Percentage of Total Income (%)
tax
Tax expense:
Current tax expense	569.67	1.82	506.93	1.81	346.35	1.51
Deferred tax expense / (credit)	258.97	0.83	(8.00)	(0.03)	0.50	0.00
Earlier years tax adjustments (net)	(1.51)	(0.00)	(4.46)	(0.02)	1.86	0.01
Total tax expense	827.13	2.65	494.47	1.77	348.71	1.52
Restated Profit after tax	3,513.69	2.65	1,151.72	4.12	1,083.11	4.72
Restated Other compri	hensive income:
Items that will not be r	eclassified to pro	fit or loss
Remeasurement of defined employee benefit plans	(4.63)	(0.01)	(19.97)	(0.07)	1.36	0.01
Income tax effect of above	0.97	0.00	5.03	0.02	(0.34)	(0.01)
Share of other comprehensive income in joint venture					0.13	0.00
Items that will be recla	ssified to profit o	r loss
Exchange differences on translation of financial statements of foreign operations	0.38	0.00	(0.63)	(0.00)	0.01	0.00
Restated other comprehensive income	(3.28)	(0.01)	(15.57)	(0.06)	1.16	0.01
Restated total comprehensive income for the year	3,510.41	11.24	1,136.15	4.06	1,084.27	4.72
Restated profit after ta	x attributable to
Owners of the Holding Company	3,513.69	11.25	1,151.72	4.12	1,083.11	4.72
Non-controlling interests	-	-	-	-	-	-
Restated Other compr	jhensive income	attributable to:
Owners of the Holding Company	(3.28)	(0.01)	(15.57)	(0.06)	1.16	0.01
Non-controlling interests	-	-	-	-	-	-
Total Restated compre	hensive income a	ttributable to:
Owners of the Holding Company	3,510.41	11.24	1,136.15	4.06	1,084.27	4.72
Non-controlling interests	-	-	-	-	-	-

FISCAL 2025 COMPARED TO FISCAL 2024 Total Income

Total income increased by 11.69% from ?27,959.60 million in Fiscal 2024 to ?31,229.26 million in Fiscal 2025 primarily on account of an increase in revenue from operations for reasons indicated below:

Revenue from Operations

Revenue from operations increased by 11.84% from ?27,824.26 million in Fiscal 2024 to ^31,118.72 million in Fiscal 2025 primarily on account of an increase in operating revenue.

Operating revenue

Sale of goods - security and surveillance equipments and components increased by 11.78% from ?27,798.60 million in Fiscal 2024 to ^31,073.97 million in Fiscal 2025 on account of increase in demand for CCTV cameras and equipment, along with the addition of AIL Dixons (our wholly owned subsidiary) revenue of ?460.46 million.

Service revenue increased from ?17.32 million in Fiscal 2024 to ?35.00 million in Fiscal 2025.

Other operating revenue

Other operating revenue increased to ?9.75 million in Fiscal 2025 from ?8.34 million in Fiscal 2024 primarily on account of addition of scrap sales. Technical training services increase from ?2.34 million in Fiscal 2024 to ?3.08 million in Fiscal 2025. This was partially offset by a decrease in business support services from ?6.00 million in Fiscal 2024 to ?2.78 million in Fiscal 2025.

Other Income

Other income decreased by 18.32% from ?135.34 million in Fiscal 2024 to ?110.54 million in Fiscal 2025 on account of reduction in interest income on bank deposits from ?104.98 million in Fiscal 2024 to ?93.42 million in Fiscal 2025, gain on currency fluctuation and translation (other than considered as finance cost)(net) from ?9.07 million in Fiscal

2024 to ?2.99 million in Fiscal 2025 and provisions/liabilities no longer required written back from ?6.25 million in Fiscal 2024 to ?0.61 million in Fiscal 2025 .

Expenses

Total expenses increased by 12.72% from ?26,061.05 million in Fiscal 2024 to ?29,374.74 million in Fiscal 2025 primarily on account of increase in cost of materials consumed; employee benefits expenses; finance costs; depreciation and amortization expenses; and other expenses.

Cost of materials consumed

Cost of materials consumed increased from nil in Fiscal 2024 to ?7,038.30 million in Fiscal 2025 due to consolidation of AIL Dixon in Fiscal 2025.

Purchases of stock-in-trade

Purchases of stock-in-trade decreased by 20.56% from ?22,698.63 million in Fiscal 2024 to ?18,031.57 million in Fiscal

2025 on account of elimination of purchase from AIL Dixon and unrealized profit on inventory purchased from AIL Dixon.

Changes in inventories of finished goods, stock-in-trade and work in progress

Changes in inventories of finished goods, stock-in-trade and work in progress was ?(654.43) million in Fiscal 2025 compared to ?20.77 million in Fiscal 2024. Inventory at the beginning of the year was ?5,040.82 million in Fiscal 2025 while inventory at the end of the year was (6,103.52) million in Fiscal 2025. Inventory at the beginning of the year was ?5,061.59 million in Fiscal 2024 while inventory at the end of the year was ?(5,040.82) million in Fiscal 2024.

Employee benefits expense

Employee benefits expense increased by 51.90% from ?1,338.57 million in Fiscal 2024 to ?2,033.26 million in Fiscal 2025 on account of (i) increases in salaries, wages and bonus by 45.04% from ?1,253.69 million in Fiscal 2024 to ?1,818.37 million in Fiscal 2025; (ii) contribution to provident and other funds from ?38.00 million in Fiscal 2024 to ?50.69 million in Fiscal 2025; (iii) share based payment expenses from nil in Fiscal 2024 to ?117.85 million in Fiscal 2025; and (iv) gratuity expenses from ?10.85 million in Fiscal 2024 to ?19.49 million in Fiscal 2025. This was on account of increase in wages and higher manpower costs on account of hiring of new personnel and annual increments.

Finance Costs

Finance costs increased by 35.27% from ?309.09 million in Fiscal 2024 to ?418.12 million in Fiscal 2025 primarily on account of increase in interest expense on: (i) credit facilities/loans from banks by 32.50% from ?260.74 million in Fiscal 2024 to ?345.49 million in Fiscal 2025; (ii) interest on lease liabilities from ?26.06 million in Fiscal 2024 to ?36.24 million in Fiscal 2025; and (iii) interest on suppliers credit from nil in Fiscal 2024 to ?15.02 million in Fiscal 2025.This was on account of increased working capital requirements due to higher sales as compared to Fiscal 2024 and increase in interest rates in Fiscal 2025 compared to Fiscal 2024.

Depreciation and amortization expense

Depreciation and amortization expenses increased by 98.07% from ?157.13 million in Fiscal 2024 to ?311.23 million in Fiscal 2025 primarily on account of increase in depreciation and amortization expense (capital expenditure on property, plant and equipment) from ?50.30 million in Fiscal 2024 to ?163.95 million in Fiscal 2025 and depreciation on right-of-use assets from ?106.54 million in Fiscal 2024 to ?147.03 million in Fiscal 2025.

Other Expenses

Other expenses increased by 42.35% from ?1,536.86 million in Fiscal 2024 to ?2,187.69 million in Fiscal 2025. This increase was primarily on account of an increase in:

• Advertisement and business promotion expenses from ?656.21 million in Fiscal 2024 to ?922.00 million in Fiscal 2025 on account of increased advertisement and publicity initiatives;

• Web and IT services from ?55.45 million in Fiscal 2024 to ?115.71 million in Fiscal 2025 primarily due to provision of cloud storage services for our surveillance products;

• Freight, cartage and handling charges from ?201.51 million in Fiscal 2024 to ?234.45 million in Fiscal 2025;

• Product service and warranty from ?94.52 million in Fiscal 2024 to ?148.39 million in Fiscal 2025 on account of an increase in repair costs and warranty provision;

• Travelling and conveyance from ?88.28 million in Fiscal 2024 to ?130.88 million in Fiscal 2025;

• Insurance from ?28.99 million in Fiscal 2024 to ?35.98 million in Fiscal 2025;

• Fees and subscription from ?19.34 million in Fiscal 2024 to ?28.67 million in Fiscal 2025;

• Corporate social responsibility expenses from ?19.65 million in Fiscal 2024 to ?30.00 million in Fiscal 2025;

• Allowance for expected credit loss from nil in Fiscal 2024 to ?69.07 million in Fiscal 2025; and

• Rates and taxes from ?3.16 million in Fiscal 2024 to ?30.07 million in Fiscal 2025.

This increase however, was offset by a decrease in:

• Rent from ?39.08 million in Fiscal 2024 to ?35.34 million in Fiscal 2025; and

• Miscellaneous expenses from ?58.65 million in Fiscal 2024 to ?42.38 million in Fiscal 2025.

Restated profit before share of profit in joint venture and tax

Restated profit before share of profit injoint venture and tax was ?1,854.52 million in Fiscal 2025 compared to ?1,898.55 million in Fiscal 2024.

Restated profit before exceptional items and tax

Restated profit before exceptional items and tax was ?1,854.52 million in Fiscal 2025 compared to ?1,898.55 million in Fiscal 2024.

Exceptional items

Exceptional items on account of share of loss in joint venture was nil in Fiscal 2025 compared to ?294.50 million in Fiscal 2024, insurance claim received was nil in Fiscal 2025 as compared to of ?42.14 million in Fiscal 2024, and gain on fair valuation of previously held equity interest was ?2,486.30 million in Fiscal 2025 as compared to nil in Fiscal 2024.

Restated profit before tax

For the reasons discussed above, restated profit before tax increased to ?4,340.82 million in Fiscal 2025 compared to ?1,646.19 million in Fiscal 2024.

Tax expenses

Total tax expense increased from ?494.47 million in Fiscal 2024 to ?827.13 million in Fiscal 2025. Current tax expense increased from ?506.93 million in Fiscal 2024 to ?569.67 million in Fiscal 2025. Deferred tax expense was ?258.97 million in Fiscal 2025 compared to deferred tax credit of ?(8.00) million in Fiscal 2024. Earlier years tax adjustments (net) was ?(1.51) million in Fiscal 2025 compared to ?(4.46) million in Fiscal 2024.

Restated profit after tax

For the reasons discussed above, restated profit after tax increased to ?3,513.69 million in Fiscal 2025 compared to ?1,151.72 million in Fiscal 2024.

FISCAL 2024 COMPARED TO FISCAL 2023

Total Income

Total income increased by 21.80% from ?22,955.56 million in Fiscal 2023 to ?27,959.60 million in Fiscal 2024 primarily on account of an increase in revenue from operations for reasons indicated below:

Revenue from Operations

Revenue from operations increased by 21.79% from ?22,845.47 million in Fiscal 2023 to ?27,824.26 million in Fiscal 2024 primarily on account of an increase in operating revenue.

Operating revenue

Sale of goods - security and surveillance equipments and components increased by 21.82% from ?22,819.66 million in Fiscal 2023 to ?27,798.60 million in Fiscal 2024 on account of increased demand for CCTV cameras.

Service revenue increased from ?16.22 million in Fiscal 2023 to ?17.32 million in Fiscal 2024.

Other operating revenue

Other operating revenue decreased to ?8.34 million in Fiscal 2024 from ?9.59 million in Fiscal 2023 primarily on account of decrease in technical training services to ?2.34 million in Fiscal 2024 from ?3.59 million in Fiscal 2023. Business support services remained consistent at ?6.00 million in Fiscal 2023 and Fiscal 2024.

Other Income

Other income increased by 22.94% from ?110.09 million in Fiscal 2023 to ?135.34 million in Fiscal 2024 on account of an increase in interest income on: bank deposits from ?60.85 million in Fiscal 2023 to ?104.98 million in Fiscal 2024 on account of a marginal increase in fixed deposit receipts and increase in rate of interest as compared to Fiscal 2023.

This was offset by a decrease in provisions / liabilities no longer required written back to ?6.25 million in Fiscal 2024 from ?15.34 million in Fiscal 2023.

Expenses

Total expenses increased by 20.87% from ?21,560.74 million in Fiscal 2023 to ?26,061.05 million in Fiscal 2024 primarily on account of an increase in purchases of stock-in-trade; employee benefits expenses; finance costs; depreciation and amortization expenses; and other expenses.

Purchases of stock-in-trade

Purchases of stock-in-trade increased by 7.66% from ?21,083.83 million in Fiscal 2023 to ?22,698.63 million in Fiscal 2024 on account of an increase in purchase of products and components. The increase in purchase of products and components was on account of a corresponding increase in sales by 21.82% during Fiscal 2024.

Changes in finished goods, stock-in-trade and work in progress

Changes in finished goods, stock-in-trade and work in progress was ?20.77 million in Fiscal 2024 compared to ?(2,093.31) million in Fiscal 2023. Inventory at the beginning of the year was ?5,061.59 million in Fiscal 2024 while inventory at the end of the year was ?(5,040.82) million in Fiscal 2024. Inventory at the beginning of the year was ?2,968.28 million in Fiscal 2023 while inventory at the end of the year was ?(5,061.59) million in Fiscal 2023.

Employee benefits expense

Employee benefits expense increased by 29.65% from ?1,032.46 million in Fiscal 2023 to ?1,338.57 million in Fiscal 2024 on account of: (i) increase in salaries, wages and bonus by 27.12% from ?986.23 million in Fiscal 2023 to ?1,253.69 million in Fiscal 2024; (ii) contribution to provident and other funds from ?28.48 million in Fiscal 2023 to ?38.00 million in Fiscal 2024; and (iii) staff welfare expenses from ?6.86 million in Fiscal 2023 to ?36.03 million in Fiscal 2024 on account of increase in wages and higher manpower costs on account of hiring of new personnel and annual increments.

Finance Costs

Finance costs increased by 33.10% from ?232.23 million in Fiscal 2023 to ?309.09 million in Fiscal 2024 primarily on account of increase in interest expense on: (i) credit facilities/loans from banks by 51.52% from ?172.08 million in Fiscal 2023 to ?260.74 million in Fiscal 2024; and (ii) interest on lease liabilities from ?13.40 million in Fiscal 2023 to ?26.06 million in Fiscal 2024 on account of increased working capital requirement due to higher sales as compared to Fiscal 2023 and increase in interest rates in Fiscal 2024 compared to Fiscal 2023.

Depreciation and amortization expense

Depreciation and amortization expenses increased by 77.51% from ?88.52 million in Fiscal 2023 to ?157.13 million in Fiscal 2024 primarily on account of increase in depreciation on right-of-use assets from ?53.88 million in Fiscal 2023 to ?106.54 million on account of addition of new office on lease.

Other Expenses

Other expenses increased by 26.28% from ?1,217.01 million in Fiscal 2023 to ?1,536.86 million in Fiscal 2024. This increase was primarily on account of an increase in:

• Insurance from ?18.88 million in Fiscal 2023 to ?28.99 million in Fiscal 2024 owing to an increase in sum assured;

• Travelling and conveyance from ?60.10 million in Fiscal 2023 to ?88.28 million in Fiscal 2024;

• Fees and subscription from ?10.63 million in Fiscal 2023 to ?19.34 million in Fiscal 2024 on account of increase of membership fees and increase in software subscription charges for various software used in the business and annual maintenance charges for our enterprise resource planning system;

• Advertisement and business promotion expenses from ?488.46 million in Fiscal 2023 to ?656.21 million in Fiscal 2024 on account of increase in marketing expenses and marketing scheme.

• Freight, cartage and handling charges by 29.57% from ?155.52 million in Fiscal 2023 to ?201.51 million in Fiscal 2024;

• Corporate social responsibility expenses from ?10.74 million in Fiscal 2023 to ?19.65 million in Fiscal 2024.

• Warehouse handling charges by 26.41% from ?47.26 million to ?59.74 million in Fiscal 2023;

• Technical testing and certification fees from ?14.92 million in Fiscal 2023 to ^31.59 million in Fiscal 2024 attributable to the BIS registration of new products and the testing for various projects models;

• Web and IT services by 38.07% from ?40.16 million in Fiscal 2023 to ?55.45 million in Fiscal 2024; and

• Miscellaneous expenses from ?49.96 million in Fiscal 2023 to ?58.65 million in Fiscal 2024.

This increase however, was offset by a decrease in:

• Rent by 18.16% to ?39.08 million in Fiscal 2024 from ?47.75 million in Fiscal 2023 on account of treatment of lease expenses related to short-term leases as rent expenses while right of use assets created for long-term leases on account of additional branches and service centres;

• Rates and taxes to ?3.16 million in Fiscal 2024 from ?13.68 million in Fiscal 2023 on account of fees paid for extension of land for construction of our office building Noida, Uttar Pradesh to the relevant authority; and

• Product service and warranty to ?94.52 million in Fiscal 2024 from ?95.39 million in Fiscal 2023 on account of reduction in repair costs.

Restated profit before share of profit in joint venture and tax

Restated profit before share of profit injoint venture and tax was ?1,898.55 million in Fiscal 2024 compared to ?1,394.82 million in Fiscal 2023. Share of profit in joint venture was nil in Fiscal 2024 compared to ?94.87 million in Fiscal 2023.

Restated profit before exceptional items and tax

Restated profit before exceptional items and tax was ?1,898.55 million in Fiscal 2024 compared to ?1,489.69 million in Fiscal 2023.

Exceptional items

Exceptional items on account of share of loss in joint venture was ?294.50 million in Fiscal 2024 compared to nil in Fiscal 2023.

In January 2024, the joint venture entity, AIL Dixon Technologies Private Limited ("AIL Dixon") had suffered loss of stock due to fire at the custom bonded warehouse resulting in destruction of stock of ?1,769.94 million.

However, during the preparation of our consolidated financial statements, we reassessed the claims, considering factors such as the warehouse owners financial capacity and insurance coverage. It was determined that full recovery is unlikely. As a result, we recognized our proportionate share of the loss, amounting to ?294.50 million, and classified it as an exceptional item in the financial statements.

Further, exceptional items on others was ?(42.14) million in Fiscal 2024 compared to ?57.87 million in Fiscal 2023 on account of receipt of insurance claim against the loss owing to the fire at our warehouse in Bhiwandi, Mumbai.

Restated profit before tax

For the reasons discussed above, restated profit before tax increased to ?1,646.19 million in Fiscal 2024 compared to ?1,431.82 million in Fiscal 2023.

Tax expenses

Total tax expense increased from ?348.71 million in Fiscal 2023 to ?494.47 million in Fiscal 2024. Current tax expense increased from ?346.35 million in Fiscal 2023 to ?506.93 million in Fiscal 2024 on account of increase in taxable profits and addition of our joint ventures capital loss amounting to ?294.50 million to our taxable profits. Deferred tax credit was ?(8.00) million in Fiscal 2024 compared to deferred tax expense of ?0.50 million in Fiscal 2023. Earlier years tax adjustments (net) was ?(4.46) million in Fiscal 2024 compared to ?1.86 million in Fiscal 2023.

Restated profit after tax

For the reasons discussed above, restated profit after tax increased to ?1,151.72 million in Fiscal 2024 compared to ?1,083.11 million in Fiscal 2023.

LIQUIDITY AND CAPITAL RESOURCES

We have historically financed the expansion of our business and operations primarily through debt financing, owned funds and funds generated from our operations. From time to time, we may obtain loan facilities to finance our short

term working capital requirements. Further, we believe that after taking into account the expected cash to be generated from our business and operations, the Net Proceeds from the Fresh Issue and the proceeds from our existing bank loans, we will have sufficient capital to meet our anticipated capital requirements for our working capital and capital expenditure requirements for the 12 months following the date of this Red Herring Prospectus.

CASH FLOWS

The following table sets forth certain information relating to our cash flows in the periods indicated:

Particulars	Fiscal
	2025	2024	2023
Net cash generated from / (used in) operating activities	272.08	(1,804.05)	557.63
Restated net cash from / (used in) investing activities	(11.98)	1,164.88	(1,218.96)
Restated net cash (used in) / flow from financing activities	(189.54)	(442.61)	1,091.31
Net increase/(decrease) in cash and cash equivalents	70.56	(1,081.78)	429.98
Cash and cash equivalents at the end of the year	1,359.31	394.67	1,476.45

Operating Activities

Fiscal 2025

Net cash flow generated from operating activities was ?272.08 million for Fiscal 2025. Restated profit before tax was ?4,340.82 million. Adjustments primarily consisted of gain on account of fair valuation of previously held equity interest in joint venture of ?2,486.30 million; finance costs of ?376.52 million; depreciation and amortization expenses of ?311.23 million; and share based payment expenses of 17.85 million. Operating profit before working capital changes

was ?2,668.12 million.

Movement in working capital includes increase in inventories of ?693.14 million; increase in trade receivables of ?3,124.22 million; increase in other current assets and non-current assets of ?6.49 million; increase in other financial assets of ?502.25 million; increase in other financial liabilities of ?551.30 million; increase in other current liabilities of ?275.08 million; increase in provisions of ?36.70 million and increase in trade payables of ?1576.64 million. Cash generated from operating activities post working capital changes was ?781.74 million. Income tax paid (net) was ?509.66 million.

Fiscal 2024

Net cash flow used in operating activities was ?1,804.05 million for Fiscal 2024. Restated profit before tax was ?1,646.19 million. Adjustments primarily consisted of depreciation and amortization expenses of ?157.13 million; interest income on bank deposits of ?104.98 million; interest income on security deposits of ?1.55 million; dividend income of ?0.06 million; liabilities no longer required written back of ?6.25 million; gain on currency fluctuation and translation of ?9.07 million; profit on sale of property, plant and equipment (net) of ?2.02 million; rental income of ?4.22 million; balances written of ?7.56 million; share of loss in joint venture of ?294.50 million; finance costs of ?279.09 million; interest expense on lease liabilities of ?26.06 million; gain on extinguishment of lease of ?1.82 million and gain on measurement of investment at FVTPL of ?0.98 million. Operating profit before working capital changes was ?2,279.58 million.

Movement in working capital includes decrease in inventories of ?18.45 million; increase in trade receivables of ?1,200.68 million; increase in other current assets and non-current assets of ?192.29 million; increase in other financial assets of ?320.89 million; increase in other financial liabilities of ?1,095.57 million; increase in other current liabilities of ?79.93 million; increase in provisions of ?43.03 million and decrease in trade payables of ?3,096.79 million. Cash used in operating activities post working capital changes was ?1,294.09 million. Income tax paid (net) was ?509.96 million.

Fiscal 2023

Net cash flow from operating activities was ?557.63 million for Fiscal 2023. Restated profit before tax was ?1,431.82 million. Adjustments primarily consisted of depreciation and amortization expenses of ?88.52 million; interest income on bank deposits of ?60.85 million; interest income on security deposits of ?0.50 million; dividend income of ?0.19 million; liabilities no longer required written back of ?15.34 million; loss on currency fluctuation and translation of ?6.24 million; profit on sale of property, plant and equipment (net) of ?0.01 million; rental income of ?4.68 million;

balances written of ?18.25 million; share of profit in joint venture of ?87.43 million; finance costs of ?201.16 million; interest expense on lease liabilities of ?13.40 million; gain on extinguishment of lease of ?2.22 million and loss on measurement of investment at FVTPL of ?1.82 million. Operating profit before working capital changes was ?1,589.99 million.

Movement in working capital includes increase in inventories of ?2,083.75 million; increase in trade receivables of ?895.07 million; increase in other current assets and non-current assets of ?3.19 million; increase in other financial assets of ?96.58 million; increase in other financial liabilities of ?49.89 million; decrease in other current liabilities of ?22.78 million; increase in provisions of ?1.66 million and increase in trade payables of ?2,439.60 million. Cash generated from operating activities post working capital changes was ?979.77 million. Income tax paid (net) was ?422.14 million.

Investing Activities

Fiscal 2025

Net cash used in investing activities was ?11.98 million in Fiscal 2025, primarily on account of additions to property, plant and equipment, capital work in progress, other intangible assets and intangible assets under development of ?264.90 million; sale of property, plant and equipment of ?2.44 million; proceeds from fixed deposits (net) of ?153.81 million; rental income of ?3.14 million; dividend income of ?0.11 million and interest received of ?93.42 million.

Fiscal 2024

Net cash from investing activities was ?1,164.88 million in Fiscal 2024, primarily on account of additions to property, plant and equipment, capital work in progress, other intangible assets and intangible assets under development of ?188.75 million; sale of property, plant and equipment of ?124.63 million; proceeds from fixed deposits (net) of ?1,199.74 million; loan to related party of ?80.00 million; rental income of ?4.22 million; dividend income of ?0.06 million and interest received of ?104.98 million.

Fiscal 2023

Net cash used in investing activities was ?1,218.96 million in Fiscal 2023, primarily on account of additions to property, plant and equipment, capital work in progress, other intangible assets and intangible assets under development of ^71.17 million; sale of property, plant and equipment of ?0.72 million; investments in fixed deposits (net) of ?1,295.33 million; proceeds from redemption of bonds of ?52.60 million; rental income of ?4.68 million; dividend income of ?28.69 million and interest received of ?60.85 million.

Financing Activities

Fiscal 2025

Net cash flow used in financing activities was ?189.54 million during Fiscal 2025, primarily on account of proceeds from short term borrowings of ?22,049.48 million; repayment of short term borrowings of ?21,985.00 million; suppliers credit availed of ?520.52 million; finance cost paid of ?376.52 million; proceeds from long term borrowings of ?131.34 million; dividend paid during the year of ?180.00 million; and principal of lease liabilities of ?128.79 million.

Fiscal 2024

Net cash flow used in financing activities was ?442.61 million during Fiscal 2024, primarily on account of repayment of related party loans of ?273.93 million; proceeds from long term borrowings of ?49.42 million; repayments of longterm borrowings of ?197.07 million; repayment of short term borrowings of ?17,054.76 million; proceeds from short term borrowings of ?17,426.24 million as a result of working capital demand loan obtained by our Company; finance cost paid of ?279.09 million; dividend paid during the year of ?10.00 million; principal of lease liabilities of ?77.36 million and interest payment of lease liabilities of ?26.06 million.

Fiscal 2023

Net cash flow from financing activities was ^1,091.31 million during Fiscal 2023, primarily on account of proceeds from related party loans of ?300.00 million; proceeds from long term borrowings of ?25.00 million; repayments of longterm borrowings of ?389.09 million; repayment of short term borrowings of ?5,616.09 million; proceeds from short term borrowings of ?7,868.07 million as a result of working capital demand loan obtained by our Company; buy back of

equity shares of ?799.58 million; finance cost paid of ?201.16 million; dividend paid during the year of ?38.50 million; principal of lease liabilities of ?43.94 million and interest payment of lease liabilities of ?13.40 million.

INDEBTEDNESS

As of March 31, 2025, we had total borrowings (consisting of non-current borrowings of ?149.89 million and current borrowings of ?3,978.55 million) of ?4,128.44 million. Our debt to equity ratio was 0.41 as at March 31, 2025.

The following table sets forth certain information relating to our total borrowings as of March 31, 2025, and our repayment obligations in the periods indicated:

Particulars	As of March 31, 2025
	Payment due by period
	Total	Less than 1 year	1-2 years	2-3 years	More than 3 years
Term Loan	351.45	225.13	126.32	-	-
Deferred liability payment	38.06	38.06
Vehicle Loan	42.61	19.04	10.50	8.46	4.62
WCDL	3,682.82	3,682.82	-	-	-
Intercorporate Deposit	13.50	13.50	-	-	-
:Total	4,128.44	3,978.55	136.82	8.46	4.62

CONTINGENT LIABILITIES AND OFF-BALANCE SHEET ARRANGEMENTS

As at March 31, 2025, our contingent liabilities are as follows:

Particulars	Amount as at March 31, 2025 (? in million)
Inland bank guarantees	59.89
Bond given to custom department under AEO	750.00

Income Tax matters

An Income Tax survey under section 133 A of Income- tax Act, 1961 was carried out at our premises on February 18, 2019. During the course of the survey, the tax officials raised certain concerns and insisted on declaration of additional income amounting to ?403.82 million. We considered all the points raised by the survey team and were of the view that no additional income needs to be offered to tax as the actual income for the said assessment year has been correctly /duly accounted for in the books of accounts.

The assessment proceedings for the said assessment year have got concluded by the Assessing Officer ("AO"), who pursuant to its order dated September 30, 2021 raised a tax demand of ?189.59 million (March 31, 2024: ?189.59 million; March 31, 2023: ?189.59 million) and has also initiated penalty proceedings. Our Company has contested the said order before the Commissioner of Income Tax (Appeals) wherein our Company has contended that the AO has erred both on facts and in law, in making the additions, ignoring the settled position of law that the statements recorded during the course of survey has no evidentiary value and cannot be regarded as conclusive evidence and that the AO has made additions without bringing on record any contrary evidence in respect of the submissions made by our Company. Our Company has deposited ?38.00 million (March 31, 2024: ?38.00 million; March 31, 2023: ?38.00 million;), under protest and the appeal in the matter is currently pending disposal. During the Fiscal 2023, our Company received an order dated May 9, 2022 raising a demand of ?7.80 million on account of wrong calculation of interest in the order dated September 30, 2021. Further, during Fiscal 2024, rejoinder to remand report has been filed on June 16, 2023, however, the final hearing before the Commissioner of Income Tax (Appeals) is yet to be fixed. Rejoinder to remand report dated January 15, 2025 has been filed on April 25, 2025. Final hearing before the Commissioner of Income Tax (Appeals) is yet to be fixed.

Indirect Tax Matters

Particulars	Amount as at March 31, 2025 (? in million)
VAT matters
Demand raised under respective VAT acts	2.70
Amounts paid under protest	0.77
GST matters
Demands raised under Customs Act		346.53
Amounts paid under protest		0.81
Customs matters
Demands raised under Customs Act		145.52
Amounts paid under protest		69.16

For further information, see "Restated Consolidated Financial Information - Note 50A - Contingent liabilities" on page 396.

Commitments and Contingencies

Estimated amount of contract remaining to be executed on capital and other commitments not provided for (net of advances) is ?855.50 million as of March 31, 2025 (March 31, 2024: ?613.90 million; March 31, 2023: ?11.45 million). Apart from above mentioned amount, certain purchase orders issued to suppliers are for open quantities during the normal course of business.

Except as disclosed in the Restated Financial Information or elsewhere in this Red Herring Prospectus, there are no off- balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that we believe are material to investors.

CONTRACTUAL OBLIGATIONS AND COMMITMENTS

There are no contractual obligations outstanding as at March 31, 2025, March 31, 2024 and March 31, 2023. CAPITAL EXPENDITURES

In Fiscal 2025, 2024 and 2023, our capital expenditure towards additions to property, plant and equipment, capital work- in-progress, investment property, intangible assets under development and other intangible assets were ?521.22 million, ?188.75 million and ?73.77 million, respectively.

Particulars	As at March 31, 2025	As at March 31, 2024	As at March 31, 2023
Property, plant and equipment	181.68	95.41	44.20
Capital work in progress	164.35	0.53	1.83
Investment property	-	-	-
Intangible assets under development	88.01	90.83	24.72
Intangible assets (excluding goodwill)	87.18	1.98	3.02
Total	521.22	188.75	73.77

RELATED PARTY TRANSACTIONS

We enter into various transactions with related parties in the ordinary course of business. These transactions principally include sale of goods, business support services, purchase of goods, loan written off, repayment of loan, investments written off, interest receivables written off, loans provided, remuneration, interest on loans taken, rent expenses paid/payable, rental income, electricity and water charges paid / payable, electricity and water charges paid / payable (reimbursed), purchase of property, plant and equipment, professional charges paid / payable, CSR contribution, donation paid, vendors and logistic support charges paid / payable, membership and subscription charges paid / payable, dividend paid, loan proceeds, travelling expense reimbursement, advertisement and business promotion expenses, commission and brokerage, expenses incurred by our Company; buy back of shares and director sitting fees.

For further information relating to our related party transactions, see "Restated Financial Information - Note 46 - Related party transactions" on page 388.

AUDITORS OBSERVATIONS

The Statutory Auditors have included the following Emphasis of Matters in the examination report on the Restated Consolidated Financial Information:

Fiscal 2024

"We draw attention to note 52 of the consolidatedfinancial statements which describes Groups share of loss of 2.294.50 million in respect of loss incurred due to fire by its joint venture, AIL Dixon Technologies Private Limited, as per the principles of Ind AS 28, basis assessment of related insurance and other claim receivables by the Group management. Our opinion is not modified in respect of this matter."

Fiscal 2023

" We draw attention to note 52 to the accompanying consolidated financial statements which describes that the subsequent to year-end, allotment and lease of the land at Sector 135, Noida, has been cancelled by the Noida Authority, relying on the State Government Ordinance dated 7 January 2022, since the Holding Company did not fulfil the conditions stipulated in the Transfer Memorandum and lease deed with respect to construction and development on such land within the prescribed timelines. The Holding Company had approached the authorities seeking revocation of the cancellation and restoration of the allotment of said land, in response to which the Noida Authority vide its letter dated 18 September 2023 has confirmed that the matter is under consideration.

The management based on its internal assessment and inputs from its legal experts, is confident of receiving favourable order regarding restoration of the Holding Companys title and rights to the leased land shortly andfurther, is confident for completion of construction and development activities on the said land within the timelines that may be prescribed by the authorities and accordingly, believes that no adjustment is necessary in the consolidated financial statements at this stage. Our opinion is not modified in respect of this matter."

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our activities are exposed to credit risk, liquidity risk and market risk. Our Board of Directors has overall responsibility for the establishment and oversight of our risk management framework.

Credit Risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial asset fails to meet its contractual obligations. The Groups exposure to credit risk is influenced mainly by the individual characteristics of each financial asset. The carrying amounts of financial assets represent the maximum credit risk exposure. The Group monitors its exposure to credit risk on an ongoing basis.

Credit risk management

Credit risk rating

The Group assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets. The Group assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Group. The Group continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in consolidated statement of profit and loss.

Cash and cash equivalents and other bank balances

Credit risk related to cash and cash equivalents and bank deposits is managed by only diversifying bank deposits and accounts in different banks. Credit risk is considered low because the Group deals with reputed banks.

Trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers The Group monitors the economic environment in which it operates. The Group manages its credit risk through credit approvals, establishing credit limits and continuously monitoring credit worthiness of the customers to which the Group grants credit terms in the normal course of business. The Group has also obtained debtor insurance up to ?800.00 million (March 31, 2024: ?500.00 million; March 31, 2023: ?500.00 million) to cover its risks of bad debts. The Group also uses a life time expected credit loss model to assess the impairment loss on such receivables. The Group uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available internal credit risk factors such as the Groups historical experience for customers.

Loans and other financial assets

Loans and other financial assets measured at amortized cost includes security deposits and other receivables. Credit risk related to these financial assets is managed by monitoring the recoverability of such amounts continuously. Credit risk is considered low because the Group is in possession of the underlying asset except for loan given to joint venture company. Further, the Group creates provision by assessing individual financial asset for expectation of any credit loss basis expected credit loss model.

Concentration of financial assets

The Group carries on the business of trading of security and surveillance equipments and related activities. Financial assets represents deposits given for business purposes and other receivables arising in normal course of operations.

Liquidity Risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.

Further, the Group manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalents position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on a regular basis. Surplus funds not immediately required are invested in certain financial assets which provide flexibility to liquidate at short notice such as fixed deposits with Bank etc.

The Group has developed appropriate internal control systems and contingency plans for managing liquidity risk. This incorporates an assessment of expected cash flows and availability of alternative sources for additional funding, if required.

Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Groups income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

For further information, see "Restated Consolidated Financial Information - Note 45 - Financial instruments - Financial Risk Management on page 385.

UNUSUAL OR INFREQUENT EVENTS OR TRANSACTIONS

Except as described in this Red Herring Prospectus, to our knowledge, there have been no unusual or infrequent events or transactions that have in the past or may in the future affect our business operations or future financial performance.

SIGNIFICANT ECONOMIC CHANGES THAT MATERIALLY AFFECT OR ARE LIKELY TO AFFECT INCOME FROM CONTINUING OPERATIONS

Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect income from continuing operations identified above under "- Significant Factors Affecting our Results of Operations" and the section "Our Business" on pages 406 and 41, respectively, respectively.

KNOWN TRENDS OR UNCERTAINTIES

Our business has been subject, and we expect it to continue to be subject, to significant economic changes arising from the trends identified above in "— Significant Factors Affecting our Results of Operations and Financial Condition" and the uncertainties described in "Risk Factors" on pages 406 and 41, respectively. To our knowledge, except as discussed in this Red Herring Prospectus, there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income from continuing operations.

FUTURE RELATIONSHIP BETWEEN COST AND INCOME

Other than as described in "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 41, 240 and 405, respectively, to our knowledge there are no known factors that may adversely affect our business prospects, results of operations and financial condition.

NEW PRODUCTS OR BUSINESS SEGMENTS

Except as set out in this Red Herring Prospectus, we have not announced and do not expect to announce in the near future any new business segments other than in the normal course of business.

COMPETITIVE CONDITIONS

We operate in a competitive environment. See "Our Business", "Industry Overview" and "Risk Factors" on pages 240, 183 and 41, respectively, for further information on competitive conditions that we face across our various business verticals.

EXTENT TO WHICH MATERIAL INCREASES IN NET SALES OR REVENUE ARE DUE TO INCREASED SALES VOLUME, INTRODUCTION OF NEW PRODUCTS OR SERVICES OR INCREASED SALES PRICES

Changes in revenue in the last three Fiscals are as described in "- Fiscal 2025 compared to Fiscal 2024", and "- Fiscal 2024 compared to Fiscal 2023" above on pages 427 and 429, respectively.

SEGMENT REPORTING

We have only one operating segment and we are primarily engaged in the business of trading of security and surveillance equipment. Accordingly, the figures appearing in these consolidated financial statements relate to our single operating segment. Our Board of Directors consider trading of security and surveillance equipment and related activities as the main business of our Group. Accordingly, there are no other separate reportable segments in terms of Ind AS 108 on Operating Segments.

For further information, see "Restated Consolidated Financial Information — Note 53 — Segment Information"" on page 397.

SIGNIFICANT DEPENDENCE ON SINGLE OR FEW CUSTOMERS

We derive a significant portion of our revenue from our top 10 customers. The following table sets forth revenue from our top one, top five and top 10 customers for the periods indicated below:

Particulars	Fiscal 2025		Fiscal 2024		Fiscal 2023
	Amount (? in million)	Percentage of Revenue from Operations (%)	Amount (? in million)	Percentage of Revenue from Operations (%)	Amount (? in million)	Percentage of Revenue from Operations (%)
Top 1 customer	1,341.42	4.31	1,251.64	4.50	917.83	4.02
Top 5 customers	3,871.89	12.44	4,226.61	15.19	3,114.61	13.63
Top 10 customers	5,851.62	18.80	6,626.66	23.82	4,806.81	21.04
*References to ‘Customers are to customers in a particular Fisca			l and does not refer to the same customers across all Fiscals.

For further information, see "Risk Factors - We are faced with the risk of customer concentration since we e derive a significant portion of our revenue from key customers. A loss of one or more of our key customers, or a reduction in their demand for our products, could adversely affect our business, results of operations, cash flows and financial condition." on page 50.

SEASONALITY/ CYCLICALITY OF BUSINESS

Our business is subject to seasonal trends, with the fourth quarter typically generating the largest sales and revenue, particularly in our business-to-business operations. This seasonal pattern can result in fluctuations in our financial performance across the year, making us dependent on strong fourth quarter results to meet our annual targets. For details,

see "Risk Factors - Our financial performance is primarily dependent on the revenue from sale of closed circuit television ("CCTV") cameras, network video recorders ("NVRs"), digital video recorders ("DVRs") and pan-tilt-zoom ("PTZ") cameras which collectively contributed to 77.47% of our revenue from operations in Fiscal 2025. Variations in demand and changes in consumer preference towards CCTV cameras, NVRs, DVRs, PTZs cameras and other surveillance equipment could have an adverse effect on our business, results of operations, cash flows and financial condition" on page 42.

SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2025 THAT MAY AFFECT OUR FUTURE RESULTS OF OPERATIONS

To our knowledge no circumstances have arisen since March 31, 2025 that could materially and adversely affect or are likely to affect, the trading or profitability, or the value of our assets or our ability to pay our liabilities within the next 12 months.