Notes to Accounts of Aditya Birla Lifestyle Brands Ltd.

Mar 31, 2026

NOTE 4 : RIGHT-OF-USE ASSETS AND LEASE LIABILITIES

Accounting Policy

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease

if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To

assess whether a contract conveys the right to control the use of an identified asset, the Company assess whether:

• The contract involves the use of an identified asset - this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;

• The Company has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use; and

• The Company has the right to direct the use of the asset. The Company has the right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, either the Company has the right to operate the asset; or the Company designed the asset in a way that predetermines how and for what purpose it will be used.

At inception or on reassessment 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.

Where the Company is the lessee Right-of-use assets

The Company recognises a right-of-use asset and a lease liability at the lease commencement date except for short-term leases which are less than 12 months and leases of low value assets. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability plus any initial direct costs incurred less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the lease commencement date to the end of the lease term. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, adjusted for certain remeasurements of the lease liability.

Right-of-use assets taken over pursuant to the Composite Scheme from Aditya Birla Fashion and Retail Limited have been depreciated over their remaining estimated term of the lease contract.

Lease liabilities

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise of fixed payments, including in-substance fixed payments. The lease liabilities are measured at amortised cost using the effective interest method.

In addition, the carrying amount of lease liabilities is re-measured if there is a modification arising due to change in the lease term, change in the lease payments or a change in the assessment of an option to purchase the underlying asset. When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero and there is a further reduction in measurement of the lease liability.

The Company presents right-of-use assets that do not meet the definition of investment property, and lease liabilities, separately in the Standalone Balance Sheet.

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 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.

Where the Company is the lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset is classified as an operating lease. Assets subject to operating leases are included in the property, plant and equipment. Rental income on an

operating lease is recognised in the Standalone Statement of Profit and Loss on a straight-line basis over the lease term. Costs, including depreciation, are recognised as an expense in the Standalone Statement of Profit and Loss.

During the previous year, the Company has received Right-of use assets relating to Madura Fashion & lifestyle business pursuant to Composite Scheme. Title deeds of Right-of use assets for leasehold land and leasehold building of '' 10.42 Crores and '' 1471.75 Crores respectively are held in the name of Aditya Birla Fashion and Retail Limited (Demerged Company) (Refer note: 48). As per the scheme of demerger, all the rights of title deeds in the name of Aditya Birla Fashion and Retail Limited (Demerged Company) is vested to Aditya Birla Lifestyle Brands Limited (Resulting Company).

NOTE 5a : IMPAIRMENT TESTING OF GOODWILL

Goodwill relating to Madura Fashion & Lifestyle was taken over pursuant to the Composite Scheme of arrangement between the Company and Aditya Birla Fashion and Retail Limited as approved by the NCLT on March 27, 2025.

Madura Fashion & Lifestyle CGU

Madura Undertaking is a leading premium branded apparel player in India with brands like Louis Philippe, Van Heusen, Allen Solly and Peter England. The Madura Garments division is involved in manufacturing and trading of apparels and other lifestyle products.

Disclosures with respect to Goodwill allocated to the Madura Fashion & Lifestyle CGU Value in use calculation of CGU:

The recoverable amount of the CGU as at March 31, 2026, have been determined based on value in use method using cash flow projections from financial budgets approved by senior management covering a three - year period ending March 31, 2029 and cash flow projections for financial years 2030 and 2031 have been extrapolated to demonstrate the tapering of growth rate for computation of perpetual cash flows. The Company has considered a terminal growth rate of 5% to arrive at the value in use to perpetuity beyond March 31, 2031. The post-tax discount rate is applied to discounted future cash flow projections. It is concluded that the carrying value of goodwill does not exceed the value in use. As a result of this analysis, the management did not identify impairment for these CGUs.

Key assumptions used for value in use calculations Discount rates:

Discount rates represent the current market assessment of the risks specific to the 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 of the CGU is derived from its Weighted Average Cost of Capital (WACC). The WACC takes into account both cost of 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 of the Company. Adjustments to the discount rate are made to factor in the specific amount and timing of the future tax flows in order to reflect a post-tax discount rate.

Growth rate estimates:

Growth rate is based on the Company''s projection of business and growth of the industry in which the CGU is operating. The growth rate is in line with the long-term growth rate of the industry. The growth rate of the CGU considers the Company''s plan to launch new stores, expected same store growth and change in merchandise.

No reasonable possible change in key assumptions are likely to result in the recoverable amount of the CGU being less than their carrying amount.

1. Aditya Birla Garments Limited (ABGL), a wholly owned subsidiary of the Company was incorporated on June 15, 2022 in compliance with the requirements of ‘Operational Guidelines for the Production Linked Incentive (PLI) scheme for promoting manufacture and sale of Manmade fibre and Textile. The Company has committed to provide support to fund the operations of ABGL in the forseeable future.

Accounting Policy

Trade receivables are amounts due from customers for goods sold or services provided in the ordinary course of business and reflect the Company''s unconditional right to consideration (that is, payment is due only on the passage of time).

Trade receivables are recognised initially at the transaction price as they do not contain significant financing components. The Company holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method, less loss allowance.

For trade receivables and contract assets, the Company applies the simplified approach required by Ind AS 109, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

No trade or other receivables is due from directors or other officers of the Company either severally or jointly with any other person.

For terms and conditions relating to related party receivables, refer Note - 45.

Trade receivables are generally non-interest bearing and the credit period generally between 30 to 180 days.

Based on the risk profiling for each category of customer, the Company has not evaluated credit risk where the risk is mitigated by collateral. The Company has evaluated credit risk for departmental, depletion, e-commerce B2B, export and trade customers. The Company follows the simplified approach method for computing the expected credit loss. Additionally, specific provisions are considered taking into account customer related specific information over and above probability of default (PD). Provision matrix takes into account historical credit loss experience adjusted for forward-looking estimates and macro-economic factors. The expected credit loss allowance is based on the ageing of the receivables and the rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows:

(ii) Change in Promoter and Promoter Group

Birla Group Holdings Private Limited is the Promoter of the Company as on March 31, 2026.The Promoter and Promoter Group holds an aggregate of 56,87,48,248 Equity Shares, representing 46.60 % of the paid-up equity share capital of the Company as on March 31, 2026.The Promoter and Promoter Group has acquired shareholding in the Company pursuant to the Scheme of Arrangement among ABFRL (“Demerged Company”), Aditya Birla Lifestyle Brands Limited (“the Company”) and their respective shareholders and creditors (“Scheme”). Prior to the Scheme, Aditya Birla Fashion Retail Limited was the promoter of the Company.

(iii) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having face value of 10 per share. Each holder of an equity share is entitled to one vote per share. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders at the ensuing Annual General Meeting.In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution to all preference shareholders. The distribution will be in proportion to the number of the equity shares held by the shareholders.

The description of the nature and purpose of each reserve within other equity is as follows:

a) Securities Premium account

Securities premium is used to record the premium on issue of shares. Securities premium is utilised in accordance with the provisions of the Act.

b) Retained earnings

Retained earnings comprise of the Company''s accumulated undistributed profits/ (losses) after taxes.

c) Share options outstanding account

The fair value of the equity-settled share based payment transactions with employees is recognised in Standalone Statement of Profit and Loss with corresponding credit to employee stock options outstanding account. The amount of cost recognised (net of exercise price) is transferred to share premium on exercise of the related stock options.

d) Capital reserve

This reserve is created against the difference in the net assets transferred and issuance of equity share capital in accordance with the Composite Scheme. The reserve will be utilised in accordance with the provision of the Act.

e) Remeasurement gains/ (losses) on defined benefit plans

The cumulative balances of gains/ (losses) arising on remeasurements of defined benefit plan is accumulated and recognised within this component of other comprehensive income. Items included in remeasurement gains/ (losses) reserve will not be reclassified subsequently to Standalone Statement of Profit and Loss.

f) Dividends

The Board of Directors have recommended a dividend of '' 0.50 per equity share of face value of 10/- each aggregating to '' 61.03 Crore and dividend of 8% on the outstanding preference shares aggregating to '' 0.04 Crore for the financial year 2025-26. The dividend proposed is subject to approval of members in the ensuing Annual General Meeting of the Company.

#Details of trade payables under supplier financing arrangement Terms & Conditions

The Company participates in supplier financing arrangements involving its suppliers and financial institutions. This arrangement allow suppliers to receive early payment for their invoices through the financial institution. The financial institution pays the supplier early at a discounted rate, and the Company settles the outstanding balance directly with the financial institution at the contractual due date agreed with the vendors. No guarantees or collateral are provided under the arrangement.

Key terms and conditions of the arrangement are:

• The financial institution pays the supplier within 2 days from submission.

• The Company pays the financial institution on the contractual due date agreed with the vendors. The Company does not obtain any extended credit terms from the financial institution beyond the contractual due date agreed with the vendors.

* The Company has not provided comparative information in respect of the amendments to Ind AS 7 and Ind AS 107 relating to supplier finance arrangements, as it has applied the transitional relief available on initial adoption of these amendments, which allows entities not to present comparative disclosures for prior period.

There were no material business combinations or foreign exchange differences that would affect the liabilities under the supplier finance arrangement in either period.

The carrying amounts of liabilities under the supplier finance arrangement are considered to be reasonable approximations of their fair values, due to their short-term nature.

In its liquidity assessment, the Company does not see any liquidity risk on account of these supplier financing arrangements, as terms for the Company do not vary materially based on whether the supplier avails such financing arrangements.

NOTE 31 : REVENUE FROM OPERATIONS

Accounting Policy

(I) Revenue from contracts with customers

Revenue from contracts with customers is recognised upon transfer of control of promised goods/ services to customers at an amount that reflects the consideration to which the Company expect to be entitled for those goods/ services.

To recognize revenues, the Company applies the following five-step approach:

• Identify the contract with a customer;

• Identify the performance obligations in the contract;

• Determine the transaction price;

• Allocate the transaction price to the performance obligations in the contract; and

• Recognise revenues when a performance obligation is satisfied.

Revenue from sale of products

Revenue from sales of products is measured at the amount of transaction price (net of returns, customer incentives, discounts, variable consideration and other similar charges offered by the Company) allocated to that performance obligation.

Goods and Service Tax (GST) is not received by the Company on its own account. Rather, it is tax collected on behalf of the government. Accordingly, it is excluded from revenue.

Assets and liabilities arising from right to return

The Company has contracts with customers which entitles the customer to an right to return.

Right to return assets

A right of return gives an entity a contractual right to recover the goods from a customer (right to return asset), if the customer exercises its option to return the goods and obtain a refund. The asset is measured at the carrying amount of the inventory, less any expected costs to recover the goods, including any potential decreases in the value of the returned goods.

Refund liabilities

A refund liability is the obligation to refund part or all of the consideration received (or receivable) from the customer. The Company has therefore recognised refund liabilities in respect of customer''s right to return. The liability is measured at the amount the Company ultimately expects it will have to return to the customer. The Company updates its estimate of refund liabilities (and the corresponding change in the transaction price) at the end of each reporting period.

The Company has presented its right to return assets and refund liabilities under other current assets and other current liabilities, respectively.

Income from gift voucher

Gift voucher sales are recognised when the vouchers are redeemed, and the goods are sold to the customer.

Loyalty points programme

The Company operates a loyalty programme which allows customers to accumulate points on purchases made in retail stores. The points give rise to a separate performance obligation as it entitles them for redemption as settlement of future purchase transaction price. Consideration received is allocated between the sale of products and the points issued, with the consideration allocated to the points equal to their fair value. Fair value of points is determined based on the historical trends. Transaction price allocated to reward points is deferred and recognised when points are redeemed or when the points expire. The amount of revenue is based on the value of points redeemed/ expired.

Income from services

Income from services is recognised as they are rendered based on agreements/ arrangements with the concerned parties, and recognised net of goods and services tax/ applicable taxes.

Export incentives income

Export incentives under various schemes notified by government are accounted for in the year of exports based on eligibility and when there is no uncertainty with respect to its recoverability.

Licence fees and royalties

Royalty and licensing revenue is received from customers for usage of the Group''s brand name. Revenue is recognised over time based on the terms of contracts with the customer.

Commission income

In case of sales of goods, where the Company is an agent in the transaction, the difference between the revenue and the cost of the goods sold is disclosed as commission income under other operating income.

NOTE 37a : EXCEPTIONAL ITEMS

(i) On November 21, 2025, the Government of India notified 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 (together referred to as the Labour Code), consolidating 29 existing labour laws. The Company has assessed impact of the Labour Code based on the available information and recognised past service cost on gratuity, amounting to '' 48.97 crores (Contractual : '' 35.09 Crore and Non-contractual : '' 13.88 Crore), arising on account of revised definition of wages. The said past service cost has been presented as an ‘exceptional item'' in standalone financial statements for the year ended March 31, 2026. Management continues to monitor the developments relating to the implementation of the Labour Code and will review the estimates as further clarifications are issued and the Rules are notified.

(ii) Exceptional items for the period ended March 31, 2025 includes provision for impairment of goodwill, right-of-use assets, franchisee rights and Inventory Obsolescence amounting to '' 98.33 Crore pursuant to restructuring of operations of a business unit.

NOTE 39 : EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit/(loss) for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit/(loss) attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

NOTE 41 : GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The Company operates a gratuity plan through a Trust wherein eligible employees are entitled to a benefits equivalent to fifteen days'' wages last drawn for each completed year of service, in compliance with the Code on Social Security, 2020. In accordance with the Code''s standardized definition of wages, the calculation base is mandated to comprise a minimum of 50% of the employee''s total Cost to Company (CTC). In cases where the Company''s internal scheme provides more favorable terms than the minimum obligations under the Code, the more favorable terms are applied.

The benefits are payable on termination of service, resignation, or retirement, whichever occurs earlier. For regular permanent employees, the benefits vest after five years of continuous service.

Following the effectiveness of the Composite Scheme of Arrangement (refer Note 48), Management is actively executing the necessary legal and regulatory procedures to transfer the existing fund and its underlying assets from the name of Aditya Birla Fashion and Retail Limited (ABFRL) into the name of the Company.

The gratuity plan is fully funded through annual contributions to an Insurer Managed Fund administered by the Life Insurance Corporation of India under its Gratuity Scheme.

The following tables summarise the components of net benefit expense recognised in the Standalone Statement of Profit and Loss and Standalone Balance Sheet

practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated using the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The Company is expected to contribute '' 32.63 Crore to the gratuity fund during the year ended March 31, 2027. (March 31, 2026 : 24.03 Crores)

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 8 years. (March 31, 2025 : 8 years)

Risk exposure Through its defined benefit plans, Company is exposed to number of risks, the most significant of which are detailed below:
Asset volatility	The plan liabilities are calculated using a discount rate set with reference to yields of government securities; if plan assets underperform this yield, this will create a deficit. Plan asset investments for gratuity are made in pre-defined insurance plans. These are subject to risk of default and interest rate risk. The fund manages credit risk/ interest rate risk through continuous monitoring to minimise risk to an acceptable level.
Inflation Risk	The present value of the defined benefit plan liability is sensitive to future salary growth assumptions. The obligation is calculated based on projected salaries of employees, which incorporate expected inflation and career progression. If actual salary increase is higher than the assumed, the defined benefit obligation will rise, leading to an increase in the plan liability.
Life Expectancy	The present value of the defined benefit plan liability is calculated by reference to the best estimates of the mortality of plan participants both during and after their employment. An increase in life expectancy of the plan participants will increase the plan''s liability.

Defined contribution plans

Provident Fund: Contributions are made mainly to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

Employees’ State Insurance: Employees'' State Insurance is a state plan applicable to employees of the Company whose salaries do not exceed a specified amount. The contributions are made on the basis of a percentage of salary to a fund administered by government authority. The obligation of the Company is limited to the extent of contributions made on a monthly basis.

Superannuation Fund: Certain executive staff of the Company participate in Superannuation Fund, which is a voluntary contribution plan.

The Company has no further obligations to the plan beyond its monthly contributions to the Superannuation Fund, the corpus of which is administered by a Trust belonging to demerged company and is invested in insurance products.

National Pension Scheme: Certain executive staff of the Company participate in National Pension Scheme, which is a voluntary contribution plan. The Company has no further obligations to the plan beyond its monthly contributions to a fund administered by a pension fund manager appointed by Pension Fund Regulatory and Development Authority.

In terms of the Composite Scheme of Arrangement (refer Note 48), the existing grantees of Aditya Birla Fashion and Retail Limited (‘ABFRL'') Employee Stock Option Schemes, comprising eligible employees of ABFRL and certain employees of the Company are entitled to an equal number of stock options and Restricted Stock Units (RSUs) of the Company. The Nomination and Remuneration Committee (“NRC”) of the Board of Directors (“Board”) of the Company formulated the above ESOP Scheme which was approved on May 23, 2025.

Options and RSUs granted under the plan carry no dividend or voting rights. Upon exercise, each option/ RSU is convertible into one equity share. Options and RSUs granted under the Scheme shall have remaining Vesting Period and Exercise Period of corresponding outstanding options/ RSUs of ABFRL.

Share options outstanding at the end of the year have expiry dates ranging from September 7, 2026 till February 01, 2027 and exercise prices ranging from '' 53.50 to '' 58.30.

Weighted average remaining contractual life of options outstanding at end of the year is 0.45 years.

There are no RSUs outstanding at the end of the year relating to this scheme.

II. Aditya Birla Lifestyle Brands Limited Employee Stock Option Scheme 2019:

In terms of the Composite Scheme of Arrangement (refer Note 48), the existing grantees of Aditya Birla Fashion and Retail Limited (‘ABFRL'') Employee Stock Option Schemes, comprising eligible employees of ABFRL and certain employees of the Company are entitled to an equal number of stock options and Restricted Stock Units (RSUs) of the Company. The Nomination and Remuneration Committee (“NRC”) of the Board of Directors (“Board”) of the Company formulated the above ESOP Scheme which was approved on May 23, 2025.

Options and RSUs granted under the plan carry no dividend or voting rights. Upon exercise, each option/ RSU is convertible into one equity share. Options and RSUs granted under the Scheme shall have remaining Vesting Period and Exercise Period of corresponding outstanding options/ RSUs of ABFRL.

The options granted under this Scheme is continued to be settled by ABFRL Employee Welfare Trust. The Trust holds and transfer the shares of the Company to the eligible employees upon exercise of the options, in accordance with the terms of the Scheme and applicable regulatory provisions.

Weighted average remaining contractual life of options outstanding at end of the year is 1.81 years.

RSUs outstanding at the end of the year have expiry dates ranging from December 1, 2027 till September 19, 2030 and exercise prices of '' 6.73.

Weighted average remaining contractual life of RSUs outstanding at end of the year is 2.48 years.

III. Aditya Birla Fashion and Retail Limited Employee Stock Option Scheme 2019

Eligible employees of the Company were granted Stock options by Aditya Birla Fashion and Retail Limited under Aditya Birla Fashion and Retail Limited Employee Stock Option Scheme 2019 (“Scheme 2019”). As per the Composite Scheme of Arrangement (refer Note 48), the Employees of the Company continues to be entitled to the Options/RSUs granted by ABFRL post demerger of the MFL undertaking under the Composite Scheme.

The options granted under this Scheme continues to be settled by ABFRL Employee Welfare Trust. The Trust holds and transfers the shares of ABFRL to the eligible employees upon exercise of the options, in accordance with the terms of the Scheme and applicable regulatory provisions.

In accordance with the Composite Scheme of Arrangement, the Exercise Price per Option has been adjusted, based on the fair and reasonable adjustments made to the options granted to the Eligible Employees under the Stock Option Schemes.

Under the plan, participants are granted options and RSUs with graded vesting over 3 years of service from the grant date. Once vested, the options and RSUs remain exercisable for a period of 5 years. Options and RSUs carry no dividend or voting rights. Upon exercise, each option or RSUs are convertible into one equity share. The Scheme is administered by the Aditya Birla Lifestyle Brands Limited Employee Welfare Trust. Upon exercise, the Trust transfers the shares to the eligible employees.

# In accordance with the Composite Scheme of Arrangement, the Exercise Price per Option and RSU has been adjusted, based on the fair and reasonable adjustments made to the options and RSUs granted to the Eligible Employees under the Stock Option Schemes. Such adjustments have been made to the weighted average exercise price per option/RSU from opening grants.

Share options outstanding at the end of the year have expiry dates ranging from December 1, 2026 till December 27, 2030 and exercise prices ranging from '' 53.66 to '' 108.16.

Weighted average remaining contractual life of options outstanding at end of the year is 1.84 years.

Options (RSUs) outstanding at the end of the year have expiry dates ranging from December 1, 2027 till September 19, 2030 and exercise price of '' 3.27.

Weighted average remaining contractual life of Options (RSUs) outstanding at end of the year is 2.5 years.

IV. Aditya Birla Lifestyle Brands Limited Employee Stock Option Scheme 2025:

On November 4, 2025, the Nomination and Remuneration Committee and the Board of Directors (“Board”) of the Company, approved introduction of Employee Stock Option Scheme, viz. Aditya Birla Lifestyle Brands Limited Employee Stock Option Scheme 2025 (“Scheme 2025”), for issue of Stock Options in the form of Options (“Options”) and/or Restricted Stock Units (“RSUs”) to the identified employees. Shareholders of the Company, vide a resolution passed at the Annual General Meeting of the Company, held on September 23, 2025, approved the introduction of the Scheme and authorised the Board/ NRC to finalise and implement the Scheme.

Share options outstanding at the end of the year have expiry dates ranging from November 3, 2031 till February 1, 2034 and exercise prices ranging from '' 102.97 to '' 136.20.

Weighted average remaining contractual life of options outstanding at end of the year is 6.6 years.

Options RSUs outstanding at the end of the year have expiry dates ranging from November 3, 2033 till February 1, 2034 and exercise price of '' 10.

Weighted average remaining contractual life of RSUs outstanding at end of the year is 7.61 years.

Fair value of options granted:

The fair value at grant date of options granted during the year ended 31 March 2026 was in the range of '' 43.95 to '' 64.57 and '' 97.26 to '' 130.39 for RSUs. The fair value at grant date is independently determined using the Binomial Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.

(a) Exercise price: '' 102.97 to '' 136.20 for options; '' 10 for RSUs

(b) Grant date: 1 November 2025 and 2 February 2026

(c) Share price at grant date: '' 102.97 and '' 136.20

(d) Expected price volatility of the company''s shares: 27.94% to 29.47%

(e) Expected dividend yield: 0%

(f) Risk-free interest rate: 6.56% to 7.01%

V. Aditya Birla Lifestyle Brands Limited -TCNS Employee Stock Option Scheme 2024(“ABLBL-TCNS ESOP Scheme”)

In terms of the Composite Scheme of Arrangement (refer Note 48), the existing grantees of Aditya Birla Fashion and Retail Limited (‘ABFRL'') TCNS Employee Stock Option Scheme 2024, comprising certain employees of ABFRL were entitled to an equal number of stock options of ABLBL. The Nomination and Remuneration Committee (“NRC”) of the Board of Directors (“Board”) of the ABLBL formulated the above ESOP Scheme which was approved on May 23, 2025. Options granted under the plan carry no dividend or voting rights. Upon exercise, each option is convertible into one equity share of ABLBL. Options granted under the Scheme shall have remaining Vesting Period and Exercise Period of corresponding outstanding options of ABFRL.

In terms of the Composite Scheme of Arrangement (refer Note 48), the existing grantees of Aditya Birla Fashion and Retail Limited (‘ABFRL'') Stock Appreciation Rights Scheme 2019 (‘SAR 2019''), comprising eligible employees of ABFRL and certain employees of the Company are entitled to an equal number of stock appreciation rights of the Company. The Nomination and Remuneration Committee (“NRC”) of the Board of Directors (“Board”) of the Company formulated the Stock Appreciation Rights Scheme which was approved on May 23, 2025. Upon exercise, eligible employees of the Company and of ABFRL are entitled to cash payment by the Company. SAR granted under the Scheme shall have remaining Exercise Period of corresponding outstanding SARs of ABFRL.

II. Aditya Birla Lifestyle Brands Limited Employee Stock Appreciation Rights Scheme 2024

In terms of the Composite Scheme of Arrangement (refer Note 48), the existing grantees of Aditya Birla Fashion and Retail Limited (‘ABFRL'') Stock Appreciation Rights Scheme 2024 (‘SAR 2024''), comprising eligible employees of ABFRL and certain employees of the Company are entitled to an equal number of stock appreciation rights of the Company. The Nomination and Remuneration Committee (“NRC”) of the Board of Directors (“Board”) of the Company formulated the Stock Appreciation Rights Scheme which was approved on May 23, 2025. Upon exercise, eligible employees of the Company and of ABFRL are entitled to cash payment by the Company. SAR granted under the Scheme shall have remaining Exercise Period of corresponding outstanding SARs of ABFRL.

*The weighted average share price at the date of exercise of SAR options during the year was '' 134.45 and '' 127.94 for SAR RSUs.

Certain employees of the Company were granted Stock Appreciation Rights by Aditya Birla Fashion and Retail Limited under Aditya Birla Fashion and Retail Limited Stock Appreciation Rights 2019 (“SAR 2019”). In terms of the Composite Scheme of Arrangement (refer Note 48), the existing grantees of Aditya Birla Fashion and Retail Limited (‘ABFRL'') SAR 2019 continued to held such SAR which is to be settled by ABFRL.When exercisable, each SAR entitle to a cash payment to the respective employees. The Company treats such SARs as equity settled as the entity has no obligation to settle the share-based payment transaction.

# In accordance with the Composite Scheme of Arrangement, the Exercise Price per Option and RSU has been adjusted, based on the fair and reasonable adjustments made to the options and RSUs granted to the Eligible Employees under the Stock Option Schemes. Such adjustments have been made to the weighted average exercise price per option/RSU from opening grants.

SAR options outstanding at the end of the year have expiry dates ranging from August 04, 2026 till November 07, 2028 and exercise prices ranging from '' 67.48 to '' 108.16.

Weighted average remaining contractual life of SARs(options) outstanding at end of the year is 1.38 years.

SAR RSUs outstanding at the end of the year have expiry dates ranging from August 17, 2027 till November 07, 2028 and exercise price of '' 3.27.

Weighted average remaining contractual life of SAR RSUs outstanding at end of the year is 1.84 years.

a) Leases

Lease commitments as lessee

The Company has entered into agreements for taking on lease certain land/ office/ store premises, warehouses, factories, property, plant and equipment on lease and licence basis. The lease term is for periods ranging from 3 to 21 years, with escalation clauses in the lease agreements. Consistent with Industry practice, the Company has contracts which have fixed rentals or variable rentals based on a percentage of sales in the stores, or a combination of both.

The initial non-cancellable period of the lease agreement pertaining to stores are upto 3 years, beyond which there is an option for the Company to continue the lease, which the Company expects to continue for a period of 2 years after the initial non-cancellable period, accordingly 5 years has been considered as the lease term of the stores. Post such period, the Company has the option to exit the lease by giving a notice period and the Company assesses its intention to continue considering location and other economic factors associated with the lease arrangement.

Total net cash outflow for leases for the year ended March 31, 2026 is '' 1453.89 Crore. (March 31, 2025 is '' 1,405.66 Crore)

In accordance with its capital expenditure strategy, the Company is engaged in a sale and leaseback transaction involving certain assets, including furniture and fixtures, and office equipment.

Variable lease payments

Some property leases contain variable payment terms that are linked to sales generated from a store. For certain individual stores, upto 100% of lease payment are on the basis of variable payment terms. Variable payment terms are used for a variety of reasons, including minimising the fixed cost base for newly established stores. Variable lease payments that depend on sales are recognised in profit or loss in the period in which the condition that triggers those payments occur. Sensitivity analysis of the variable lease payments on the profit/ (loss) before tax is as discussed below :

The Company''s pending litigations primarily comprise of claims relating to indirect taxes. These includes matters pertains to customs duty representing obligations under the export promotion capital goods (EPCG) scheme benefits obtained on the import of goods against export obligations; excise duty involving demands raised on account of reversal of CENVAT credit upon sale of capital goods and commercial taxes, covering cases relating to shortfall in submission of statutory forms (F, H, I and C), disallowance of input tax credit and other related issues.

The Company has reviewed all its pending litigations and proceedings, and has adequately provided for where provisions are required and disclosed the contingent liabilities in its standalone financial statements where financial outflow is not probable. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its standalone financial statements. In respect of certain disputes in nature of service tax, Kerala surcharge,shortfall in submission of statutory forms (F, H, I and C) and certain other litigations, where the management''s assessment of a financial outflow is probable, the Company is carrying a provision of '' 50.02 Crore as at March 31, 2026 (March 31, 2025 : '' 50.02 Crore) (Refer Note: 29).

The Company has a process whereby periodically all long-term contracts are assessed for material foreseeable losses. The Company has made provision as required under the accounting standards for material foreseeable losses on derivative contracts as at March 31, 2026.

ABFRL, demerged company, received a GST demand of '' 308 Crores (including penalty of '' 227 Crores). Demand mainly relates to availment of ineligible credit, irregular availment of ITC and non payment of GST on ISD invoices . Management of ABFRL has filed a writ petition against the said demand with the Honorable High Court of Karnataka on April 30, 2026. Management of ABFRL and the Company have determined that approximately '' 272 Crores out of the said demand pertains to the Madura Fashion and Lifestyle division (MFL division) for periods prior to the demerger of the MFL division into the Company. In accordance with the Scheme of Arrangement, ABFRL shall take necessary steps to substitute the Company in proceedings before the authorities and all the related costs, liabilities and obligations incurred by ABFRL in this regard shall be reimbursed by the Company.Based on an evaluation carried out with the assistance of an external legal counsel and internal indirect tax experts, management is of the view that the likelihood of any outflow of economic resources in respect of this matter is remote.

B. Risk management objectives and policies

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include trade and other receivables and cash and cash equivalents that arise 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. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors review and agree policies for managing each of these risks, which are summarised below:

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and price risk.

i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. As at March 31, 2026, approximately 39% (March 31, 2025 : 58%) of the Company''s borrowings are at a fixed rate of interest.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings taken at floating rates. With all other variables held constant, the Company''s profit/ (loss) before tax is affected through the impact on floating rate borrowings, as follows:

The assumed movement in interest rates for interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in the prior years.

ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities denominated in foreign currency.

The Company manages foreign currency risk by hedging its transactions using foreign currency forward contracts. The foreign exchange forward contracts are not designated as cash flow hedges, and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally from 1 to 6 months. As at March 31, 2026, the Company has hedged Nil (March 31, 2025 : Nil) receivables in foreign currency and has hedged 99% (March 31, 2025 : 98%) of its payables in foreign currency.

b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. To manage this, the Company periodically assesses financial reliability of customers and other counterparties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information. Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty.

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

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable dues where recoveries are made, these are recognised as income in the Standalone Statement of Profit and Loss.

The Company is exposed to credit risk from its operating activities (primarily trade receivables and security deposits). Trade receivables

Customer credit risk is managed by each business unit, subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed, and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored. As at March 31, 2026, the Company has 28 customers (March 31, 2025 : 24 customers) that owed the Company more than '' 5.00 Crore each and account for approximately 81% (March 31, 2025 : 75%) of all the receivables outstanding. There are 187 customers (March 31, 2025 : 158 customers) with balances greater than '' 0.50 Crore upto '' 5.00 Crore each and account for approximately 13% (March 31, 2025 : 12%) of the total amounts receivable.

An impairment analysis is performed at each reporting date on the basis of sales channel. In addition, a large number of immaterial receivables are grouped into homogeneous groups and assessed for impairment collectively. The calculation is based on losses based on historical data.

The Company''s maximum exposure to credit risk for the components of the Standalone Balance Sheet as at March 31, 2026 and March 31, 2025 , is the carrying amount as provided in Note - 15.

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company''s Board of Directors on an annual basis. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

c) Liquidity risk

The Company monitors its risk of shortage of funds. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, debentures. Approximately, 30.50% of the Company''s debt will mature in less than one year (March 31, 2025 : 99.88%) based on the carrying value of borrowings reflected in the financial statements. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to various sources of funding.

The Company''s objective, when managing capital is to ensure the going concern operation and to maintain an efficient capital structure to reduce the cost of capital, support the corporate strategy and meet shareholder''s expectations. The policy of the Company is to borrow funds through banks/ financial institutions supported by committed borrowing facilities to meet anticipated funding requirements. The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirement of financial markets.

The capital structure is governed by policies approved by the Board of Directors, and is monitored by various metrics. Funding requirements are reviewed periodically with any debt issuances.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations, to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company''s performance to developments affecting a particular industry.

The Company is leader in apparels in the country and has a diversified portfolio of brands.

d) Price risk

The Company has no investment in mutual funds and other similar financial asset at March 31, 2026 and accordingly is not exposed to price risk.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings.

During the year, the Company has not defaulted on any loans payable, and there have been no breach of any financial covenants attached to the borrowings.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2026.

NOTE 48 : SCHEME OF ARRANGEMENT

The Board at its meeting held on April 19, 2024, subject to necessary approvals, considered and approved the demerger of the Madura Fashion and Lifestyle division (‘MFL division'') under a Scheme of Arrangement between Aditya Birla Fashion and Retail Limited (‘Demerged Company'') and the Company. The Scheme received sanction from the Hon''ble NCLT on March 27, 2025 and a certified copy of the order was received on April 22, 2025 (“Order”). The Company and the Demerged Company filed the certified copy of the Order and the Scheme with the Registrar of Companies, Mumbai, making the Scheme effective from May 1, 2025.

The financial statements of the Company for the year ended March 31, 2025 included the results of operation, cash flows and financial affairs of the MFL Division. On May 26, 2025, the Company allotted 1,22,02,94,773 fully paid-up equity shares of face value '' 10/- each, to the shareholders of the Demerged Company as on the record date i.e. May 22, 2025, in the share exchange ratio 1:1 i.e. 1 (one) fully paid-up equity share of the Company having face value of '' 10/- each for every 1 (one) fully paid-up equity share of '' 10/- each of the Demerged Company, in accordance with the terms of the Scheme.

The equity shares of the Company were listed on BSE Limited and the National Stock Exchange of India Limited on June 23, 2025.

Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the company. The company''s business activity falls within a single operating business segment of Branded Apparels (Garments and Accessories).

NOTE 51 : SUMMARY OF OTHER ACCOUNTING POLICIES

(a) Fair value measurements and hierarchy

The Company measures financial instruments, such as investments (other than equity investments in subsidiaries) and derivatives at fair value at each Standalone Balance Sheet date.

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

(a) In the principal market for the asset or liability; or

(b) In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use, or by selling it to another market participant that would use the asset in its highest and best use.

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based on its nature, characteristics and risks:

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

• Level 2 - valuation techniques for which the lowest level input that is significant to the fai

---

Mar 31, 2025

(m) Provisions and contingent liabilities

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation,
its carrying amount is the present value of those cash flows (when the effect of the time value of money is
material).

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and the amount can be reliably estimated. The expense relating to a provision is presented in
the Standalone Statement of Profit and Loss, net of any reimbursements.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset, if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.

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, is disclosed as a contingent
liability. Contingent liabilities are also 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 (Refer Note - 44).

Claims against the Company, where the possibility of any outflow of resources in settlement is remote, are
not disclosed as contingent liabilities.

Contingent assets are not recognised in the financial statements since this may result in the recognition of
income that may never be realised. However, when the realisation of income is virtually certain, then the
related asset is not a contingent asset and is recognised.

(n) Employee benefits

(a) Short-term employee benefits

Short-term employee benefits are recognised as an expense on accrual basis.

(b) Defined contribution plan

The Company makes defined contribution to the Government Employee Provident Fund and Superannuation
Fund, which are recognised in the Standalone Statement of Profit and Loss, on accrual basis. The Company
recognises contribution payable to the provident fund scheme as an expense, when an employee renders the
related service. The Company has no obligation, other than the contribution payable to the provident fund.

(c) Defined benefit plan

The Company operates a defined benefit gratuity plan in India. The Company operates gratuity plan through
a Trust wherein certain employees are entitled to the benefit equivalent to fifteen days salary last drawn for
each completed year of service as per the Payment of Gratuity Act, 1972. In case of some employees, the
Company''s scheme is more favourable as compared to the obligation under Payment of Gratuity Act, 1972.
The benefit vests after five years of continuous service and the same is payable on termination of service or
retirement, whichever is earlier. The gratuity plan is funded (maintained by an independent insurance company)
hence the liability has been categorized as funded. The Company''s liabilities under The Payment of Gratuity
Act, 1972 are determined on the basis of actuarial valuation made at the end of each financial year using
the projected unit credit method. Obligation is measured at the present value of estimated future cash flows
using a discounted rate that is determined by reference to market yields at the Standalone Balance Sheet date
on Government bonds, where the terms of the Government bonds are consistent with the estimated terms
of the defined benefit obligation. The net interest cost is calculated by applying the discount rate to the net
balance of the defined benefit obligation and fair value of plan assets. This cost is included in the ‘Employee
benefits expense'' in the Standalone Statement of Profit and Loss. Re-measurement gains or losses and return
on plan assets (excluding amounts included in net Interest on the net defined benefit liability) arising from
changes in actuarial assumptions are recognised in the period in which they occur, directly in OCI. These are
presented as re-measurement gains or losses on defined benefit plans under other comprehensive income in
other equity. Remeasurements gains or losses are not reclassified subsequently to the Standalone Statement
of Profit and Loss.

(d) Compensated absences

The employees of the Company are entitled to compensated absences. The employees can carry forward a

portion of the unutilised accumulating compensated absences and utilise it in future periods or receive cash
at retirement or termination of employment. The Company records an obligation for compensated absences in
the period in which the employee renders the services that increases this entitlement. The Company measures
the expected cost of compensated absences as the additional amount that the Company expects to pay as
a result of the unused entitlement that has accumulated at the end of the reporting period. The Company
recognises accumulated compensated absences based on actuarial valuation in the Standalone Statement
of Profit and Loss.

The Company presents the entire leave as a current liability in the Standalone Balance Sheet, since it does
not have any unconditional right to defer its settlement for twelve months after the reporting date.

(o) Share-based payment

Certain employees of the Company have been granted stock-based awards, including stock options, stock
appreciation rights (SARs), and restricted stock units (RSUs) of Aditya Birla Fashion and Retail Limited
(Demerged Company), in accordance with the ESOP Policy of ABFRL. In compliance with Ind AS 102 - Share-
based Payments, the Company has accounted for these awards using the graded vesting method. The Grant
date fair value of equity-settled awards has been used for the purpose of accounting the related expenses.
SARs are remeasured at fair value at each balance sheet date, with changes recognized in the Statement of
Profit and Loss.

(p) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holders of the
Company by the weighted average number of equity shares outstanding during the period.

Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to
participate in dividends relative to a fully paid equity share during the reporting period. Earnings, considered
in ascertaining the Company''s earnings per share, is the net profit for the period after deducting preference
dividends. The weighted average number of equity shares outstanding during the period is adjusted for treasury
shares and events such as bonus issue, bonus element in a rights issue that have changed the number of
equity shares outstanding, without a corresponding change in resources.

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

(q) Cash and cash equivalents

Cash and cash equivalents in the Standalone Balance Sheet and for the purpose of the Standalone Statement
of Cash Flows comprise cash on hand and cash at bank including fixed deposits with original maturity period
of three months or less and short-term highly liquid investments with an original maturity of three months
or less net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash
management.

(r) Common control business acquisition

Acquisition of business under common control has been accounted in accordance with “Pooling of interest
method", as specified below:

(a) All assets and liabilities acquired are stated at their carrying values as appearing in the financial statements
of de-merged company

(b) Shares held by the de-merged company in the Company shall be cancelled

(c) Difference between the carrying amounts of assets and liabilities acquired, face value of the shares cancelled
as referred to in (b) above and the amount recorded as share-capital issued to the shareholders of the de¬
merged company shall be transferred to capital reserve; and

(d) Financial information relating to the acquired business has been accounted from the beginning of the financial
year, as if the acquisition had occurred from that date.

NOTE - 52

ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III

(i) DETAILS OF BENAMI PROPERTY HELD

No proceedings have been initiated on or are pending against the Company under the Prohibition of Benami
Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act,
1988 (45 of 1988)) and Rules made thereunder.

(ii) COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

The Company has complied with the number of layers prescribed under Section 2(87) of the Companies Act,
2013 read with Companies (Restriction of number of layers) Rules, 2017.

(iii) RELATIONSHIP WITH STRUCK OFF COMPANIES

The Company has no transactions with or balances due to or from companies struck off under Companies
Act, 2013 or Companies Act, 1956.

(iv) BORROWINGS SECURED AGAINST CURRENT ASSETS

During the period, the Company was not granted working capital loans secured by current assets; therefore,
it was not required to file quarterly statements with any banks or financial institutions.

(v) WILFUL DEFAULTER

The Company has not been declared wilful defaulter by any bank or financial institution or government or
any government authority.

(vi) COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS

The Company has accounted for the Scheme of arrangement with Aditya Birla Fashion and Retail Limited in
accordance with the accounting treatment as specified in the Scheme. (Refer Note 48)

(vii) UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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.

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

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

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(viii) UNDISCLOSED INCOME

There is no income surrendered or disclosed as income during the current year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded in the books of account.

(ix) DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The Company has not traded or invested in crypto currency or virtual currency during the current year.

(x) VALUATION OF PROPERTY PLANT AND EQUIPMENT (INCLUDING RIGHT-OF-USE ASSETS) AND INTANGIBLE
ASSETS

The Company has not revalued its Property, Plant and Equipment (including Right-of-use assets) and Intangible
assets during the current year. The Company did not have any Investment Property during the current year.

(xi) REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

In accordance with the Scheme of Arrangement, the Company has assumed unsecured borrowings from the
Demerged Company and, as a result, is not required to register charges with the Registrar of Companies.

NOTE - 53

Comparative Financial Information

The Company was incorporated on April 9, 2024 and accordingly comparative numbers have not been presented
in these financial statements.

As per our report of even date

For Price Waterhouse & Co Chartered Accountants LLP For and on behalf of the Board of Directors of

Chartered Accountants Aditya Birla Lifestyle Brands Limited

ICAI Firm Registration No. 304026E/E-300009

A.J. SHAIKH ASHISH DIKSHIT VISHAK KUMAR

Partner (Managing Director) (Deputy Managing Director and CEO)

Membership No.: 203637 (DIN: 01842066) (dIN: 09078653)

Place: Mumbai Place: Mumbai

Date : May 23, 2025 Date : May 23, 2025

DHARMENDRA LODHA RAJEEV AGRAWAL

(Chief Financial Officer) (Company Secretary)

(M.No: A18877)

Place: Mumbai

_{Date : May 23, 2025} Place: Mumbai Place: Mumbai

Date : May 23, 2025 Date : May 23, 2025