Notes to Accounts of Lenskart Solutions Ltd.

Mar 31, 2026

2.9 Provisions (other than employee benefits)

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

Contingencies

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

2.10 Revenue recognition

Revenue from contracts with customers

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

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

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

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

Contract balances
Trade receivables

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

Contract liabilities

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

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

2.11 Government grants

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

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

2.12 Employee benefits

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

i. Short-term employee benefits

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

ii. Share based payment transactions

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

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

iii. Defined contribution plans

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

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

iv. Defined benefit plans

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

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

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

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

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

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

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

v. Other long-term employee benefits

The Company''s net obligation in respect

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

vi. Termination benefits

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

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

2.13 Foreign currency

Foreign currency transactions

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

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

2.14 Leases

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

Company as a lessee

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

i) Right of use asset

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

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

ii) Lease liabilities

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

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

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

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

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

Company as a lessor

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

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

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

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

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

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

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

2.15 Income tax

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

i. Current tax

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

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

ii. Deferred tax

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

not recognised for

• temporary differences arising on the

initial recognition of assets or liabilities in a
transaction that

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

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

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

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

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

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

2.16 Recognition of dividend income, interest
income or expense

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

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

• the gross carrying amount of the
financial asset; or

• the amortised cost of the financial liability.

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

2.17 Borrowing cost

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

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

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

2.18 Earnings per share

Basic Earnings Per Share

Basic earnings/(loss) per share is calculated
by dividing the net profit or loss for the period
attributable to equity shareholders (after
deducting attributable taxes) by the weighted
average number of equity shares outstanding
during the period. The weighted average number
of equity shares outstanding during the period is
adjusted for events including a bonus issue.

Diluted Earnings Per Share

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

2.19 Segment reporting

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

2.20 Investment property

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

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

Initial measurement

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

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

Subsequent measurement (depreciation and
useful lives)

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

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

De-recognition

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

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

2.21 Treasury Shares

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

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

2.22 Standard issued but not effective yet

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

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

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

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

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

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

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

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

New and amended standards

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

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

The Ministry of Corporate Affairs (MCA) notified
the Companies (Indian Accounting Standards)
Amendment Rules, 2025, which amend Ind AS
21, The Effects of Changes in Foreign Exchange
Rates to specify how an entity should assess
whether a currency is exchangeable and how
it should determine a spot exchange rate when
exchangeability is lacking. The amendments also
require disclosure of information that enables
users of its financial statements to understand
how the currency not being exchangeable into
the other currency affects, or is expected to
affect, the entity''s financial performance, financial
position and cash flows.

The amendments are effective for annual
reporting periods beginning on or after 1
April 2025. When applying the amendments,
an entity cannot restate comparative
information. The amendments do not
have a material impact on the Company''s
financial statements.

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

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

• What is meant by a right to defer settlement

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

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

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

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

I f there is a breach of a material covenant of a
long term loan arrangement on or before the end
of the reporting period, resulting in the liability
becoming payable on demand as at the reporting
date, and the lender agrees-after the reporting
period but before the financial statements are
approved for issue-not to demand repayment
for at least 12 months as a consequence of the
breach, this shall be treated as an adjusting event.
Accordingly, the entity is not required to classify
the liability as current. The amendments are
effective for annual reporting periods beginning
on or after 1 April 2025 retrospectively in
accordance with Ind AS 8. The amendments
have resulted in additional disclosures in Note 15
but have not had an impact on the classification
of Company''s liabilities.

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

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

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

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

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

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

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

The mandatory temporary exception - the
use of which is required to be disclosed -
applies immediately. The remaining disclosure
requirements apply for annual reporting periods
beginning on or after 1 April 2025, but not for
any interim periods ending on or before 31
March 2026. The amendments had no impact
on the Company''s consolidated financial
statements as the Company is not in scope of the
Pillar Two model rules.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Assumption used in previous year

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

B. As at 31 March 2025

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

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

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

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

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

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

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

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

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

Notes

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

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

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

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

c) Rights, preferences and restrictions attached to equity shares

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

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

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

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

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

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

All the class of equity share holders have equal rights.

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

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

16B Instruments entirely equity in nature

a) Authorized preference share capital

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

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

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

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

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

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

Series B

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

Series C2

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

Series D

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

Series E

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

Series F

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

Series G

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

Series H

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

Series I

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

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

Clas s 1

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

Class 2

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

Class 3

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

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

(i) 100:40 (for every 100 CCPS held, 40 Equity Shares to be issued) in the event either domestic or
international expansion ta

---

Mar 31, 2025

2.9 Provisions (other than employee benefits)

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

Contingencies

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

2.10 Revenue recognition

Revenue from contracts with customers

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

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

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

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

Contract balances

Trade receivables

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

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or
the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs
under the contract.

2.11 Government grants

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

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

2.12 Employee benefits

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

i. Short-term employee benefits

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

ii. Share based payment transactions

The grant date fair value of equity settled share-based payment awards granted to employees is recognised as an
employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become
entitled to the awards. The amount recognised as expense is based on the estimate of the number of awards for which
the related service and nonmarket vesting conditions are expected to be met, such that the amount ultimately recognised
as an expense is based on the number of awards that do meet the related service and non-market vesting conditions at
the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of the share-
based payment is measured to reflect such conditions and there is no true up for differences between expected and
actual outcomes. If the entity elects to settle in cash, the cash payment shall be accounted for as the repurchase of an
equity interest, i.e. as a deduction from equity

iii. Defined contribution plans

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

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

iv. Defined benefit plans

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

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

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised in OCI. The Company
determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the
discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined
benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as
a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans
are recognised in profit or loss.

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

The group treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee
benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial
valuation using the projected unit credit method at the reporting date. Actuarial gains/Iosses are immediately taken to
the Standalone Statement of Profit and Loss and are not deferred. The obligations are presented as current liabilities in
the Standalone Balance Sheet if the entity does not have an unconditional right to defer the settlement for at least twelve
months after the reporting date.

v. Other long-term employee benefits

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

vi. Termination benefits

Termination benefits are expensed at the earlier of when the Company can no longer withdraw the offer of those benefits
and when the Company recognizes costs for a restructuring. If benefits are not expected to be settled wholly within 12
months of the reporting date, then they are discounted.

2.12 Foreign currency

Foreign currency transactions

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

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

2.13 Leases

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

Company as a lessee

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

i) Right of use asset

The Company recognises right of use assets at the commencement date of the lease (i.e., the date the underlying asset
is available for use). Right of use assets are measured at cost, less any accumulated depreciation and impairment losses,
and adjusted for any re-measurement of lease liabilities. The cost of right of use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less
any lease incentives received. Right of use assets are depreciated on a straight-line basis over the shorter of the lease
term and the estimated useful lives of the assets.

ii) Lease liabilities

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

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

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

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

term.

Company as a lessor

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

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

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

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

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

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

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

2.14 Income tax

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

i. Current tax

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

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

ii. Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
for financial repotting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also
recognised in respect of carried forward tax losses and tax credits. Deferred tax is not recognised for

temporary differences arising on the initial recognition of assets or liabilities in a transaction that

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

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

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

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

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

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

2.15 Recognition of dividend income, interest income or expense

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

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

- the gross carrying amount of the financial asset; or

- the amortised cost of the financial liability.

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

2.16 Borrowing cost

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

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

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

2.17 Earnings per share
Basic Earnings Per Share

Basic earnings/(loss) per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during
the period. The weighted average number of equity shares outstanding during the period is adjusted for events including
a bonus issue.

Diluted Earnings Per Share

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

2.18 Segment reporting

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

2.19 Investment property:

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

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

Initial measurement

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

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

Subsequent measurement (depreciation and useful lives)

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

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

De-recognition

Investment properties are derecognised either when they have been disposed of or when they are permanently
withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net
disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of de-recognition.

2.20 Recent accounting pronouncement

Standard notified but not yet effective:

The Ministry of Corporate Affairs vide notification dated 07 May 2025 has notified Companies (Indian Accounting
Standards) Amendment rules 2025 respectively, which amended/ notified certain accounting standards (see below),
and are effective for annual reporting periods beginning on or after 01 April 2025.

The Effects of Changes in Foreign Exchanges Rates - Amendments to IND AS 21. These amendments are not expected
to significantly affect the current or future periods.