Notes to Accounts of Orkla India Ltd.

Mar 31, 2026

During the year ended March 31, 2019, the above-mentioned land was purchased by ECPL through an auction conducted by the bank at a cost of H 37.7. The said amount of H 37.7 was paid by Mr. Navas M Meeran (promoter of ECPL) to ECPL, as agreed by him to secure the title of the land in the name of ECPL. The amount paid by the promoter of ECPL was disclosed as an interest free borrowing . Based on the agreement executed between ECPL and Mr. Navas M Meeran, repayment of borrowings is restricted to the extent of amount recovered from the party. Also, in the event of non-recovery from the aforesaid party, the aforesaid borrowings will be set off against the advance receivable from the party and there would not be any amount payable to Mr. Navas M Meeran and accordingly, difference of H 8.8 was written off during the year ended March 31, 2019.

Further, as per the agreement executed on October 21, 2024 between the Company and Mr. Navas M Meeran, the Company has written off advance receivable from the party aggregating to H 37.7 and written back the borrowings amount payable to Mr. Navas M Meeran aggregating H 37.7 in the year ended March 31, 2025.

(i) Eastern CGU

The recoverable amount of Eastern CGU has been determined based on a value in use calculation considering the cash flow projections from financial budgets approved by the Management for the financial years ending March 31, 2027 to March 31, 2031 which covers a five-year period. For the purposes of impairment testing, the post-tax discount rate applied to cash flow projections for the current financial year is 12.0% (March 31, 2025: 12.0%) and cash flows beyond the five-year period are extrapolated considering a growth rate of 5.0% (March 31, 2025: 5.0%), which is similar to the long-term average growth rate for the industry.

Rasoi CGU

The recoverable amount of the Rasoi CGU has been determined based on a value in use calculation considering the cash flow projections from financial budgets approved by the Management for the financial years ending March 31, 2027 to March 31, 2031 which covers a five-year period. For the purposes of impairment testing, the post-tax discount rate applied to cash flow projections for the period is 23.0% (March 31, 2025: 23.0%) and cash flows beyond the five-year period are extrapolated considering a growth rate of 5.0% (March 31, 2025: 5.0%), which is similar to the long-term average growth rate for the industry.

Key assumptions used for value in use calculations and sensitivity to changes in assumptions

The calculation of value in use is most sensitive to the following assumptions:

a. Discount rates

b. Growth rates used to extrapolate cash flows beyond the forecast period

Discount rates - Discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Company and its operating segments and is derived from its weighted average cost of capital (WACC). The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Company''s investors. The cost of debt is based on the interest-bearing borrowings the Company is obliged to service. Segment-specific risk is incorporated by applying individual beta factors. The beta factors are evaluated annually based on publicly available market data.

Growth rate - In assessing the impairment of our CGUs, we have applied a growth rate of 5% to extrapolate the cash flows. This rate reflects both the segment''s historical performance and our expectations for sustainable future growth in a competitive market. The growth rate is integral to the discounted cash flow models, which inform the recoverable amount of the CGUs against their carrying values.

The Company assesses goodwill for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. During the year ended March 31,2026, the Company did not identify any triggering events that would require an interim impairment of goodwill.

Based on the above assessment, no impairment has been recognised during the year ended March 31, 2026 (March 31, 2025 : H Nil). Further, the Company has also performed sensitivity analysis around the key assumptions and has concluded that there are no reasonably possible changes to key assumptions that would cause the carrying amount of the aforesaid assets to exceed their recoverable values.

i) During the previous year ended March 31,2025, Eastern Food Speciality Formulations Private Limited (EFSF), a wholly owned subsidiary of the Company, had applied for strike-off under Section 248 of the Companies Act, 2013. Pursuant to the application, the Registrar of Companies approved the strike-off, and the name of EFSF was published in the Official Gazette dated March 15, 2025, resulting in its dissolution. Accordingly, the Company derecognised its investment in EFSF in the financial statements for the year ended March 31, 2025. In earlier periods, the Company had recognised an impairment loss on the investment in EFSF. The loss arising on account of the strike-off had been adjusted against the impairment allowance recognised in previous years.

ii) During the previous year ended March 31, 2025, the Company invested in a wholly owned subsidiary incorporated in the United Arab Emirates (UAE).

iii) On December 1,2018, the Company acquired 1,112 equity shares in Pot Ful India Private Limited ("Pot Ful"), representing a 10% equity interest. During the year ended March 31, 2020, the Company further acquired 252 equity shares from the promoters of Pot Ful and subscribed to 2,150 equity shares, increasing its shareholding to 26.5%. Accordingly, Pot Ful became an associate of the Company with effect from July 15, 2019. During the years ended March 31,2023 and March 31, 2024, the Company further subscribed to 218 equity shares and 539 equity shares, respectively, resulting in an increase in shareholding to 30.47% as at March 31,2024. During the previous year ended March 31,2025, Pot Ful issued 280 equity shares to other investors, which led to a dilution of the Company''s shareholding to 29.87%. The Company continues to account for its investment in Pot Ful as an associate.

iv) On October 13, 2017, the Company acquired 8,065 equity shares of Firmroots Private Limited ("FPL") at a fair value of H 4,340 per share, representing a 43% equity interest. During the year ended March 31, 2020, FPL converted its Series A compulsorily convertible preference shares into equity shares, resulting in a dilution of the Company''s shareholding to 33%. During the same year, the Company recognised an impairment loss of H 1,513 per share on its investment in FPL based on its performance. During the year ended March 31, 2021, the Company sold 6,662 equity shares in FPL at a fair value of H 2,627 per share, resulting in a loss of ?200 per share. The said loss was adjusted against the impairment allowance recognised in the year ended March 31, 2020. Subsequent to the aforesaid sale, the Company''s shareholding in FPL reduced to 5.54%, resulting in FPL ceasing to be an associate with effect from December 24, 2020. Accordingly, the retained investment was remeasured and classified as a financial asset measured at fair value through other comprehensive income (FVOCI) in accordance with Ind AS 109 - Financial Instruments. The Management has assessed the fair value of the investment in FPL as at March 31, 2026 at H Nil (March 31, 2025: H Nil).

v) Pursuant to the requirements of the Electricity Act, during the previous year ended March 31, 2025, the Company subscribed to 37,748 equity shares of H 10 each of Clean Max Aurora Private Limited ("Clean Max") for a purchase consideration of H 24.6. Further, in terms of the Energy Supply Agreement entered into with Clean Max, the Company has agreed to procure solar power generated from a solar plant with an installed capacity of 6.6 MWp. As per the Shareholders'' Agreement between the Company and Clean Max, the Company has an option to sell back the aforesaid equity shares at fair market value. The Company has irrevocably elected to measure the investment in these equity instruments at fair value through other comprehensive income (FVOCI), in accordance with Ind AS 109 - Financial Instruments. The Management has assessed the fair value of the investment in Clean Max as at March 31,2026 to be H Nil (March 31,2025: H Nil).

((i) Margin money deposits represent amounts placed with banks as security against bank guarantees and letters of credit facilities availed by the Company. These deposits are restricted in nature and can be utilized only in accordance with the terms of the respective banking arrangements.

(ii) During the year ended March 31, 2025, the Company had a receivable from the Spices Board of India towards construction of a factory building at Kota, Rajasthan, undertaken on behalf of the Spices Board of India. The said building has been leased to the Company for a

period of 15 years commencing from July 2017. As per the terms of the agreement, the construction cost incurred by the Company is reimbursable by the Spices Board of India.

Out of the total receivable, H 54.2 had been received in prior years, while the balance amount of H 35.8 remained outstanding as at March 31, 2025, pending final clearance upon inspection. The Company has received the outstanding balance in full during the year ended March 31, 2026.

(iii) Pursuant to a fire incident on October 14, 2019, certain property, plant and equipment, inventory and other assets of the cold storage facility at the Theni manufacturing plant of ECPL was damaged. The total loss aggregating H 289.6 was lodged with the insurance company. ECPL had recognised a minimum insurance claim receivable of H 224.8, and the loss (to the extent of the insurance receivable) was presented on a net basis in the financial statements.During the year ended March 31, 2023, certain damaged items were disposed of through an auction conducted in the presence of insurance authorities, resulting in proceeds of H 21.5. Accordingly, the insurance claim receivable was reduced to H 203.2. Post merger of ECPL with the Company, the said insurance claim receivable was carried forward in the books of the Company. During the year ended March 31, 2025, the Company has written off the insurance claim receivable. Further, in accordance with the Share Purchase Agreement entered into at the time of acquisition of ECPL, the promoters of ECPL have compensated the Company to the extent of the insurance claim receivable [refer note 50(i)].

(i) It represents receivables from Life Insurance Corporation of India (LIC) towards payment made by the Company on the behalf of LIC to employees who have resigned or retired.

17 (a) Assets held for sale

Pursuant to approval of the Board of Directors in the financial year ended March 31, 2025, the Group transferred the operations from the plant located at Theni, Tamil Nadu to other facilities in order to optimise its manufacturing activities. In this regard, the Group has transferred all movable assets to other manufacturing facilities and further decided to sell the immovable assets including land and building. The

c) Terms/ rights attached to equity shares

(i) The Company has only one class of equity shares having a par value of HI per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting.

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

* During the year ended March 31, 2026, one equity share of face value of H 10 each was split into 10 equity shares of face value of H 1 each fully paid up.

Nature and purpose of reserves:

i. Capital redemption reserve: The Company has bought back equity shares and as per the provisions of the Companies Act, 2013, the Company has created capital redemption reserve out of the profits of the Company available for distribution of dividend. The reserve can be utilized against issue of fully paid up bonus shares of the Company.

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

iii. Securities premium: It represents the premium received on issue of shares over and above the face value of equity shares. The reserve is available for utilisation in accordance with the provisions of the Companies Act, 2013.

iv. Contribution from parent: It comprises of the fair value of the share options granted to the employees of the Company by the ultimate holding company, Orkla ASA.

v. Share options outstanding account: This reserve is used to record the fair value of equity-settled share based payment transactions with employees.

vi. Other comprehensive income: It represents the net fair value gain/(losses) recorded on investment in equity instruments carried at fair value through other comprehensive income.

vii. Capital reserve: Includes H 6,030.6 reserve created on account of merger of Eastern Condiments Private Limited (ECPL) with the Company (refer note 48)

(i) The Company has established a supplier finance arrangement that is given to certain suppliers of the Company. Under this arrangement, banks/financial institutions make payments directly to suppliers prior to their contractual due date of invoices for goods or services procured by the Company. The Company is obligated to pay the banks for such settled invoices in accordance with the original payment terms agreed with the suppliers, which generally range from 30 to 180 days from the invoice date. The arrangement does not result in any change to the pricing of goods or services procured by the Company. The payment terms with suppliers have not been renegotiated or extended in connection with this arrangement.

(ii) At the time of acquisition of ECPL in March 2021, the Company adjusted the purchase consideration for certain existing and potential litigations/claims, as considered appropriate.

In accordance with the terms of the Share Purchase Agreement (SPA), the Company is obligated to refund such adjusted amounts to the promoters of ECPL in the event of favourable outcomes in respect of these litigations within the agreed timeframe.

During the year ended March 31,2025, the Company reassessed the status of the open tax litigation matters and based on an evaluation of the merits of the cases, has recognised a provision of H 235.0 as payable to the promoters of ECPL. The provision continues to be carried as at March 31, 2026.

35. Employee benefit obligation

A. Defined contribution plans

The Company makes contribution determined as a specified percentage of employee salaries, in respect of qualifying employees towards provident fund which is a defined contribution plan. For provident fund, the Company has an obligation under law to make the specified contribution and the contribution are charged to profit and loss account. The amount recognised as an expense towards contribution to the provident fund and other funds during the year aggregated to H 111.7 (March 31, 2025: H 113.7).

e. Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which is detailed below: Interest rate risk

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

Liquidity risk

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

Salary escalation risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic risk

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

Regulatory risk:

Gratuity benefit is paid in accordance with the requirements of Chapter V (Gratuity) of the Code on Social Security, 2020 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. increase in the maximum limit on gratuity of H 20,00,000)

Asset liability mismatching or market risk

The duration of the liability is longer compared to duration of assets, exposing the Company to market risk for volatilities/fall in interest rate.

Investment risk

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

C. Long Term Incentives (LTI) Scheme

During the year ended March 31, 2025, the Company introduced a LTI scheme for CXO-level executives and management-level employees. The scheme covers a three-year performance period from FY 2024 to FY 2026.

Under the scheme, eligible participants are entitled to receive incentives based on the achievement of specified performance targets. The Company recognizes the cost of the LTI scheme over the vesting period based on the best estimate of the expected payout, with remeasurements made at each reporting date to reflect changes in estimates and actual performance outcomes.

As per Sec 135(6) of Companies Act, 2013, for the year ended March 31, 2026, the Company has transferred unspent CSR amount of H 21.7 relating to ongoing projects to a separate unspent CSR account within 30 days from the end of the financial year.

As per Sec 135(6) of Companies Act, 2013, for the year ended March 31, 2025, the Company has transferred unspent CSR amount of H 40.1 relating to ongoing projects to a separate unspent CSR account within 30 days from the end of the financial year.

37. Commitments a) Leases

Lease commitments as lessee

The Company has entered into lease arrangements for various office/store premises and warehouse facilities. The lease terms generally range from 2 to 25 years and include escalation clauses for lease rentals as per the terms of the respective agreements.

Certain lease agreements include renewal options, which are exercisable based on mutual consent of the lessee and the lessor. These agreements also contain termination options, allowing either party to terminate the lease by providing a specified notice period. Accordingly, the Company has considered the initial lease term for measurement of lease liabilities under Ind AS 116.

The Company also has leases with a lease term of 12 months or less and leases of low-value assets. For such leases, the Company has elected to apply the recognition exemptions under Ind AS 116 and recognizes the lease payments as a rent expense in the Statement of Profit and Loss.

38. Contingent liabilities
Particulars	As at March 31,2026	As at March 31,2025
Litigations*
(i) Indirect taxation [refer note (ii) to (vi) below]	1,271.0	1,243.4
(ii) Other litigations [refer note (vii) below]	29.4	26.0

Notes:

(i) In prior years, the Company received claims from the Value Added Tax (VAT) authorities for payment of higher VAT rate on certain products. During the year ended March 31,2013, the Honourable High Court of Karnataka adjudicated the matter in favour of the Company. However, the VAT authorities have filed a Special Leave Petition (SLP) before the Supreme Court, which has been admitted and is pending adjudication. As at March 31, 2026 and March 31, 2025, the Company continues to carry a provision of Rs. 114.2 in respect of this claim as a matter of prudence, pending final adjudication by the Supreme Court.

(ii) The Company has ongoing litigation relating to service tax aggregating H 81.6 (March 31,2025: H 81.6). In prior years, the Company received a demand order under Section 73(2) of the Finance Act, 1994 from the Principal Commissioner of Central Tax and Central Excise. The dispute primarily relates to the applicability of service tax on amounts reimbursed by the Company to its branch office located outside India for the period from April 2010 to June 2017. The Company has filed an appeal before the Central Excise and Service Tax Appellate Tribunal (CESTAT). Based on management''s assessment, supported by tax advisors, the Company believes that its position is likely will likely to be upheld in the appellate forum.

(iii) The Company has ongoing disputes with Sales Tax/VAT authorities amounting to H 104.2 (March 31, 2025: H 104.2). The disputes primarily relate to matters such as levy of purchase tax and denial of concessional tax rates. The Company is contesting these demands before the appropriate appellate authorities. Based on management''s assessment, supported by tax advisors, the Company believes that its position is likely to be upheld in the relevant appellate forums.

(iv) The Company has ongoing litigations under the Goods and Services Tax (GST) law aggregating H 1,025.2 (March 31, 2025: H 996.3). The disputes primarily relate to matters such as payment of tax under the reverse charge mechanism (RCM) on import of services, availment of Input Tax Credit (ITC) on common services, ITC availed in excess of amounts reflected in GSTR-2A and availment of ITC on ineligible or blocked credits. The Company is contesting these demands before the appropriate appellate authorities. Based on management''s assessment, supported by tax advisors, the Company believes that its position is likely to be upheld in the relevant appellate forums.

(v) On May 6, 2019, the Company received a show cause notice (SCN) from the Directorate General of Goods and Services Tax Intelligence (DGGI), Surat Zonal Unit, for the period from April 1, 2014 to June 30, 2017. The SCN alleges that ''ready-to-cook spice mixes'' (other than sambar mix, missal rasa mix and pav bhaji mix) are classifiable as ''mixed condiments and mixed seasonings'' and are accordingly liable to excise duty, aggregating H 59.2, along with applicable interest and penalty. Further, the SCN proposed denial of the benefit of the Small Scale Industry (SSI) exemption in respect of clearances of sambar mix, missal rasa mix and pav bhaji mix for the aforesaid period. The Company has filed a response to the SCN, contesting the allegations and has submitted that the SCN is not tenable and is liable to be quashed. Based on management''s assessment, supported by tax advisors, the Company believes that it has a strong case on merits and that no liability is likely to arise. Accordingly, no provision has been recognized in the financial statements.

(vi) Others indirect tax matters aggregating H 0.8 (March 31, 2025: H 2.1) relate to ongoing excise duty cases concerning concessional tax rates availed by the Company in the manufacture and sale of certain products. During the year ended March 31, 2026, the Company received a favourable order in a case amounting to H 1.1. The Company is contesting the remaining matters before the appropriate appellate authorities. Based on management''s assessment, supported by tax advisors, the Company believes that it has a strong case on merits and that its position is likely to be upheld in the relevant appellate forums.

(vii) Other litigations aggregating H 29.4 (March 31, 2025: H 26.0) include matters relating to amounts claimed by workmen terminated by the Company in prior years on account of professional misconduct. The workmen have filed cases before the Labour Court, and the Company has filed appeals against such claims. During the year ended March 31, 2026, certain cases relating to a few workmen were disposed of through settlement. For the remaining matters, the Company is contesting the cases before the appropriate forums, and management has revised its estimate of the amount payable as at March 31, 2026. Based on management''s assessment, supported by legal advisors, the Company believes that it has a strong case on merits and that its position is likely to be upheld in the relevant forums.

(viii) The Company has received multiple notices alleging non-compliance with food safety regulations under the Food Safety and Standards Authority of India (FSSAl) Act, with proceedings initiated before relevant statutory forums. The allegations primarily pertains to the presence of pesticide residues exceeding permissible limits in certain batches of finished goods. The Company is contesting the matters at various levels of adjudication. The management, including its legal advisors, believe that its position will likely be upheld in the forums where these are contested. Accordingly, the management has assessed that these matters do not have a material impact on the standalone financial statements.

The Company has assessed that it is only possible, but not probable, that outflow of economic resources will be required in all the above cases.

* The above figures includes the interest/penalty only in cases where it''s mentioned in the order. In other cases, the interest/penalty is not included as a reliable estimate cannot be made.

39. Share based payments

I. Stock Options Plan - A

The ultimate holding company (Orkla ASA) of the Company operates equity incentive compensation programs which include Long Term Incentive (LTI) plan for executive management.

Under these plans, Orkla ASA, the ultimate holding company of the Company has granted equity options for the purpose of providing incentives and rewards to eligible participants who contribute to the success of the Group''s operation. All awards granted to employees (including directors) are subject to approval in advance by the board of directors of Orkla ASA. Share-based payments are considered as equity settled transactions as the Company has no obligation to settle the share based payment transaction.

Long Term Incentive (LTI) Scheme - Share option

Under this scheme, the yearly grant will be based on the share price on the day after the Annual General Meeting. Of the total options granted for the year, 20% may be exercised after one year (tranche 1), another 20% after two years (tranche 2) and the remaining 60% after three years (tranche 3). The last date on which they may be exercised is five years after the grant date. The exercise price will be set at the market price at the grant date with an increase of 3% per year in the vesting period. The exercise price will be adjusted for dividends. In the event of the employee''s resignation, all options that have not been exercised will expire.

The weighted average remaining contractual life for the share options outstanding as at March 31, 2026 was 1.58 years (March 31, 2025 : 2.02 years).

The weighted average fair value of options granted during the year was H Nil (March 31, 2025 : Nil)

The range of exercise prices for options outstanding at the end of the year was H 509 to H 594 (March 31, 2025 : H 509 to H 667).

The option value is calculated using the Black-Scholes model. The table below shows the assumptions on which the calculation is based. The exercise price at the exercise date must be adjusted for dividends paid out up to the exercise date.

There were no options granted during the years ended March 31, 2026 and March 31,2025.

II. Stock Options Plan - B

The shareholders of the Company, at the extra-ordinary general meeting held on May 16, 2025 approved the below mentioned stock option plans through a special resolution.

(i) Employee Stock Option Plan 2025 ("ESOP Plan")

(ii) Management Stock Option Plan 2025 ("MSOP Plan")

The Company has granted stock options to certain employees and key managerial personnel under the above two plans which were approved by the Nomination and Remuneration Committee on September 24, 2025. The key terms and conditions are as below:

40. Segment reporting

In accordance with Ind AS 108 - Operating segments, segment information has been provided in the consolidated financial statements of the Company and therefore no separate disclosure on segment information is given in these standalone financial statements.

41. Government grant

The Company had been awarded government grant under the Export Promotion Capital Goods (EPCG) scheme:

During the year ended March 31, 2018, the Company had availed benefits under the Export Promotion Capital Goods (EPCG) scheme amounting to H 10.7 against import of capital goods aggregating H 133.1 for manufacturing of confectionery products. Under the terms of the scheme, the Company was required to fulfill an export obligation of H 64.1, being equivalent to six times of the duty saved within the prescribed period. In case of non-fulfillment of the prescribed export obligation, the Company would be liable to repay the duty exemption availed, together with interest at 18% per annum, proportionate to the extent of the unfulfilled obligation.

The duty saved on imported capital goods was initially accounted for as a government grant in accordance with the Company''s accounting policy and recognised as deferred income.

During the year ended March 31, 2021, the Company assessed that it would not be able to fulfil the export obligation. Accordingly, the unamortised grant was reversed, and a liability was recognised for repayment of the duty saved along with applicable interest at 18% per annum. Interest was accrued from the date of availing the benefit.

The extended timeline for fulfilling the export obligation up to May 2025 lapsed without compliance. Accordingly, during the year ended March 31, 2025, the Company repaid the duty exemption availed together with the applicable accrued interest.

Terms and conditions of transactions with related parties

(a) The Company had granted an unsecured loan to its associate, Pot Ful India Private Limited ("Pot Ful"), at an interest rate of 7% per annum for its principal business activities, with quarterly interest rests and an original repayment due date of September 2024. The tenure of the loan was subsequently extended up to March 2025 with the approval of the Board of Directors.

The loan was fully repaid during the year ended March 31, 2025.

(b) All transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions and within the ordinary course of business. Amounts owed to and by related party are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2026, the Company has recorded impairment of H Nil towards receivables from related parties (March 31, 2025: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

45. Financial risk management objectives and policies

The Company''s principal financial liabilities comprise lease liabilities, trade and other payable and other financial liabilities.The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents and other bank balances that derive its value directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management ensures that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. There has been no change to the Company''s exposure to the financial risks or the manner in which it manages and measures the risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

A. Credit risk

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

The carrying amount of financial instruments represents the maximum exposure to credit risk.

Trade receivables

Customer credit risk is managed subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on a credit evaluation before entering into an arrangement. Outstanding customer receivables are regularly monitored.

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

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision rates are based on days past due for groupings of customer segments with similar loss patterns (i.e., by geographical region, product type, customer type and rating, and coverage by letters of credit). The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The Company considers receivables from Group company to be fully recoverable and hence not subject to risk of impairment.

The Company has evaluated credit risk for customers. Any customer related specific information has been factored over and above the probability of default (PD). The Company uses provision matrix to determine impairment loss allowance on its portfolio of receivables. The provision matrix takes into account historical credit loss experience over the expected life of the trade receivables and is adjusted for forwardlooking estimates/ information. There is no significant concentration of credit risk and no single customer accounted for more than 10% of the revenue as of March 31,2026 and March 31,2025. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix. The provision matrix as at March 31,2026 and March 31,2025 are as follows:

B. Liquidity risk

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or other financial assets. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company aims to maintain the level of its cash and cash equivalents and other highly marketable debt instruments at an amount in excess of expected cash outflows on financial liabilities at any point of time.

Exposure to liquidity risk

The table below provides the details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

C. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s 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. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and borrowings.

(a) Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales and purchases are denominated and the functional currency (INR) of the Company. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the foreign currency import of service and exports of finished goods . The currency in which these transactions are primarily denominated as USD, GBP, EUR and NOK.

a. Merger of subsidiary Eastern Condiments Private Limited (ECPL) with the Company

On March 16, 2021 and March 17, 2021, the Board of Directors and shareholders of the Company, respectively, approved the acquisition of a 67.82% equity stake (6,549,310 shares) in Eastern Condiments Private Limited ("ECPL") for a consideration of H 12,743.8. Pursuant to these approvals, the Company executed Share Purchase Agreements ("SPA") on March 24, 2021 and completed the acquisition on March 31,2021, consequent to which ECPL became a subsidiary of the Company.

In accordance with the SPA, it was intended that ECPL would merge with the Company, subject to necessary merger approvals, including from the National Company Law Tribunal ("NCLT"), Bangalore, under the provisions of the Companies Act, 2013. As part of the arrangement, the remaining 32.18% equity stake held by the promoters of ECPL ("Promoters") was to be acquired through a combination of equity shares and redeemable optionally convertible preference shares ("ROCPS"). Accordingly, upon completion of the merger, the Company will hold a 100% equity interest in ECPL, and the Promoters will hold a 9.99% stake in the Company on a fully diluted basis.

In the event of non-completion of the proposed merger, the Company was required to acquire, and the Promoters were required to sell, the remaining 32.18% stake as per the terms and conditions of the Sale and Acquisition Agreement dated March 24, 2021 entered between Orkla ASA, ultimate holding company of the Company, and the Promoters. Under this arrangement, the Company was to acquire the said stake through a combination of fixed cash consideration of H 3,344.2 and issuance of ROCPS amounting to H 2,700.0.

Accordingly, in accordance with Ind AS 32, the fair value of consideration payable in cash amounting to H 3,344.2 (measured at amortised basis) and H 36.0 payable towards final working capital adjustments was recognised as a financial liability. The balance consideration of H 2,700.0 was presented in the Standalone Statement of Changes in Equity as "Shares pending issuance" for the year ended March 31,2023.

On November 13, 2021, the Company and ECP filed a Scheme of Merger ("Scheme") with the National Company Law Tribunal ("NCLT"), Bangalore, with an appointed date of April 1, 2021. The NCLT, vide its order dated August 24, 2023, approved the Scheme under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 read with the rules framed thereunder. The Scheme became effective from September 1, 2023 upon fulfilment of all conditions precedent mentioned therein. Pursuant to the Scheme, ECPL was merged with the Company with effect from April 1,2021. The NCLT order, received subsequent to the year-end but prior to the approval of the financial statements, was treated as an adjusting event in accordance with ITFG Bulletin 14. Accordingly, the effect of the merger was recognised in the standalone financial statements of the Company for the year ended March 31, 2023, in line with the accounting treatment prescribed under the approved Scheme.

In accordance with the Scheme of Merger, during the year ended March 31, 2024, the Company issued 757,526 equity shares and 611,128 Redeemable Optionally Convertible Preference Shares ("ROCPS") to the promoters of ECPL towards acquisition of the remaining 32.18% equity stake. Consequently, the Company derecognised the acquisition-related financial liability of H 3,344.2 and shares pending issuance of H 2,700.0 recognised at the time of acquisition. A capital reserve of H 6,030.6 was recorded, being the difference between the face value of shares issued of H 136 and the aforesaid consideration, in accordance with the approved Scheme and Ind AS 103 (Appendix C). Of the ROCPS issued, 50% were converted into equity shares in a 1:1 ratio during the year ended March 31, 2024, and the remaining 50% were converted during the year ended March 31, 2025.

Further, in accordance with the Scheme, the authorised share capital of ECPL was merged with that of the Company.

b. Merger of Rasoi Magic Foods (India) Private Limited and BAMS Condiments Impex Private Limited., wholly owned subsidiaries with the Company

During the year ended March 31,2025, the Company filed an application along with a Scheme of Merger with the Regional Director ("RD") under Section 233 of the Companies Act, 2013 read with Rule 25 of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, for the merger of its wholly owned subsidiaries, Rasoi Magic Foods (India) Private Limited ("Rasoi") and BAMS Condiments Impex Private Limited ("BAMS"), with the Company, with an appointed date of April 1, 2024. The RD, vide its order dated March 21, 2025, approved the Scheme.

The Scheme became effective on March 21, 2025 upon fulfilment of all conditions precedent mentioned therein. Accordingly, Rasoi and BAMS were merged with the Company with effect from April 1, 2024.

As the entities were under common control, the merger has been accounted for using the Pooling of Interest method in accordance with Appendix C of Ind AS 103, "Business Combinations''; from the beginning of the earliest period presented, i.e., April 1, 2023. In applying this method, the Company has recognised the assets, liabilities and reserves of the merging entities at their carrying values as reflected in the consolidated financial statements of the Company, in accordance with the guidance prescribed in ITFG Bulletin 9.

Pursuant to the merger, the authorised share capital of H 23 of the subsidiaries was added to the authorised share capital of the Company in accordance with the Scheme of Merger and provisions of the Companies Act, 2013.

(i) Pursuant to a fire incident at Theni manufacturing plant, ECPL had filed a claim with the insurance company for the losses incurred on account of the damages. Further, ECPL recognised a minimum insurance claim receivable of H 203.2 million in prior years. Based on the terms of the SPA, the Promoters of ECPL ("Promoters") had agreed to compensate the Company for the claim receivable from the insurance company, in case the same is not received from the insurance company by December 2024. As per the Settlement Agreement dated March 8, 2025, the Promoters have paid the aforesaid claim to the Company. Accordingly, the Company has written off the insurance claim receivable from the insurance company and recorded a corresponding income against the claim received from the Promoters during the year ended March 31, 2025.

(ii) As at the time of acquisition in March 2021, the Company had adjusted the purchase consideration for certain existing and potential litigations/ claims as deemed appropriate. Based on the terms of the SPA, the Company is liable to refund the adjusted amounts to the Promoters in case they receive favourable orders against such litigations within a specified timeline. During the year ended March 31,2025, the Company:

(a) received favourable orders in certain tax matters and accordingly paid the net adjusted amount of H 121.7 million to the Promoters

(b) reassessed the open tax litigation matters and based on the merits of the case, provision of H 235.0 million has been created as payable to Promoters

(iii) On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has assessed the impact of these changes on the basis of legal opinion obtained and available information consistent with the guidance provided by the Institute of Chartered Accountants of India. The financial implications of these changes have resulted in increase in the gratuity liability arising out of past service cost amounting to H 166.6 million during the year ended March 31, 2026, which has been disclosed as Exceptional Items in the financial results. Considering that it is an emerging topic and finalisation of certain Rules are still pending, the Company will continue to monitor changes and provide appropriate accounting effect as required based on future developments.

50. The Company has used four accounting software for maintaining its books of accounts which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective accounting software except the feature of recording audit trail (edit log) facility was not enabled at the database level to log any direct data changes for three accounting software throughout the year.

Further, the audit trail feature has not been tampered with in respect of accounting software where the audit trail has been enabled.

Additionally, based on the requirements of Section 128(5) of the Companies Act, 2013, the audit trail of prior years has been preserved as per the statutory requirements for record retention, to the extent it was enabled and recorded in the prior years.

51 During the year ended March 31,2026, the Company has completed its Initial Public Offering (IPO) of 22,843,004 equity shares with a face value of H 1 each at an issue price of H 730 per share (includes an employee reservation portion of 30,000 equity shares with a face value of H 1 each at an issue price of H 661 per share), consisting entirely of an offer for sale of 22,843,004 shares. The total proceeds from the offer for sale amounted to H 16,673.3 million. The Company''s equity shares were listed on the National Stock Exchange of India Limited (NSE) and the BSE Limited (BSE) on November 06, 2025.

52. Transfer pricing

Transfer Pricing regulations for computing the taxable income and expenditure from ''international transactions'' between ''associated enterprises'' on an ''arm''s length'' basis. These regulations, inter alia, also require the maintenance of prescribed documents and information including furnishing a report from an Accountant within due date of filing the Return of Income. The Company is in the process of updating the Transfer Pricing documentation for the year ended March 31, 2026 following a detailed transfer pricing study conducted for the year ended March 31, 2025. In the opinion of the management, the same would not have an impact on these financial statements. Accordingly, these financial statements do not include the effect of the transfer pricing implications, if any.

53. Other statutory information for the years ended March 31, 2026 and March 31, 2025:

(i) No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) There are no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iii) The Company has not traded, invested nor holding any cryptocurrency or virtual currency.

(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entities, including foreign entities (intermediaries) with the understanding that the intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(v) The Company has not received any fund from any person(s) or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

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

(viii) The Company has not been declared as a wilful defaulter by any bank or financial institution or government or any government authority.

(ix) The Company has not been sanctioned working capital limits from banks or financial institutions during any point of time of the year on the basis of security of current assets.

54. Events after the reporting period

There are no events or transactions which have occurred since the balance sheet date which would have a material effect and require adjustments in the standalone financial statements.