(n) Provisions and contingent liabilities

i. General

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the
Company expects some or all of a provision to be reimbursed, the expense relating to a provision is
presented in the Statement of Profit and Loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised as a finance cost.

ii. Contingent liabilities

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation
that may probably not require an outflow of resources. When there is a possible or a present obligation
where the likelihood of outflow of resources is remote, no provision or disclosure is made.

iii. Onerous contracts

Provision for onerous contracts. i.e. contracts where the expected unavoidable cost of meeting the
obligations under the contract exceed the economic benefits expected to be received under it, are recognised
when it is probable that an outflow of resources embodying economic benefits will be required to settle a
present obligation as a result of an obligating event based on a reliable estimate of such obligation.

(o) Employee benefits

i. Short-term employee benefits

All employee benefits falling due wholly within twelve months of rendering the services are classified
as short-term employee benefits, which include benefits like salaries, wages, short-term compensated
absences and performance incentives and are recognised as expenses in the period in which the employee
renders the related service.

ii. Post-employment benefits

Contributions to defined contribution schemes such as Provident Fund, Pension Fund, etc., are recognised
as expenses in the period in which the employee renders the related service. In respect of certain
employees, Provident Fund contributions are made to a Trust administered by the Company. The interest
rate payable to the members of the Trust shall not be lower than the statutory rate of interest declared by
the Central Government under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
and shortfall, if any, after considering the accumulated reserves with the Trust, shall be made good by the
Company. To this extent, the Provident Fund scheme could be considered as a defined benefit plan. In
respect of contributions made to government administered Provident Fund, the Company has no further
obligations beyond its monthly contributions. The Company also provides for post-employment defined
benefit in the form of gratuity and medical benefits. The cost of providing benefit is determined using
the projected unit credit method, with actuarial valuation being carried out at each balance sheet date.
Remeasurement of the net benefit liability, which comprise actuarial gains and losses, the return on plan
assets (excluding interests) and the effect of the assets ceiling (if any, excluding interest) are recognised
in other comprehensive income. The service cost, net interest cost and effect of any plan amendments are
recognised in the Statement of Profit and Loss.

The Britannia Industries Limited Covenanted Staff Pension Fund Trust (‘BILCSPF’) and Britannia Industries
Limited Officers’ Pension Fund Trust (‘BILOPF’) were established by the Company to administer pension
schemes for its employees. These trusts are managed by the Trustees. The Pension Scheme is applicable
to all the managers and officers of the Company who have been employed up to the date of 15 September
2005 and any manager or officer employed after that date, if he has opted for the membership of the
Scheme. The Company makes a contribution of 15% of basic salary in respect of the members, each month
to the trusts. On retirement, subject to the vesting conditions as per the rules of the trust, the member
becomes eligible for pension, which is paid from annuity purchased in the name of the member by the
trusts.

iii. Other long-term employee benefits

All employee benefits (other than post-employment benefits and termination benefits) which do not fall
due wholly within twelve months after the end of the period in which the employees render the related
services are determined based on actuarial valuation or discounted present value method carried out
at each balance sheet date. The expected cost of accumulating compensated absences is determined by
actuarial valuation performed by an independent actuary every year using projected unit credit method
on the additional amount expected to be paid / availed as a result of the unused entitlement that has
accumulated at the balance sheet date. Expense on non-accumulating compensated absences is recognised
in the period in which the absences occur.

iv. Voluntary retirement scheme benefits

Voluntary retirement scheme benefits are recognised as an expense in the year they are incurred.

(p) Share based payment

For cash-settled share-based payments, the fair value of the amount payable to employees is recognised as
employee benefits expense with a corresponding increase in liabilities, over the vesting period. The liability
is remeasured at each reporting period up to, and including the settlement date, with changes in fair value
recognised in employee benefits expense.

(q) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, cheques on hand and demand deposits with banks with
original maturities of three months or less.

(r) Earnings per share

Basic Earnings Per Share (‘EPS’) is computed by dividing the net profit attributable to the equity shareholders
by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is
computed by dividing the net profit by the weighted average number of equity shares considered for deriving
basic earnings per share and also the weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the
beginning of the year, unless issued at a later date. In computing diluted earnings per share, only potential equity
shares that are dilutive and that either reduces earnings per share or increases loss per share are included. The
number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented in
case of share splits.

(s) Cash flow statement

Cash flows are reported using indirect method, whereby net profits before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments and
items of income or expenses associated with investing or financing cash flows. The cash flows from regular
revenue generating (operating activities), investing and financing activities of the Company are segregated.

(t) Segment Reporting

Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating
Decision Maker (CODM). The Executive Chairman and Managing Director is designated as the CODM.

(u) Non-current Assets held-for-sale

Non-Current Assets are classified as held-for-sale if their carrying amount will be recovered principally through
a sale transaction rather than through continuing use and sale is considered highly probable. A sale is considered
as highly probable when decision has been made to sell, assets are available for immediate sale in its present
condition, assets are being actively marketed and sale has been agreed or is expected to be concluded within
12 months of the date of classification. Non-current assets held for sale are neither depreciated nor amortised.
Assets and liabilities classified as held for sale are measured at the lower of their carrying amount and fair value
less cost of disposal and are presented separately in the Balance Sheet.

(v) Recent accounting pronouncements

The Ministry of Corporate Affairs (“MCA”) notified new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules, as issued from time to time. The Company evaluated
the following amendments for the first-time during the current year which are effective from 1 April, 2024.

Ind AS 116 - Lease liability in a sale and leaseback

On 9 September 2024, MCA notified amendments to Ind AS 116 via Companies (Indian Accounting Standards)
Second Amendment Rules, 2024. The amendments require an entity to recognise lease liability including
variable lease payments which are not linked to index or a rate in a way it does not result in gain on Right of Use
asset it retains. The Company has evaluated the amendment and there is no impact on its standalone financial
statements.

Introduction of Ind AS 117 - Insurance contracts

On 12 August 2024 MCA notified the introduction of Ind AS 117 - Insurance contracts via Companies (Indian
Accounting Standards) Amendment Rules, 2024. It is a comprehensive standard that prescribes, recognition,
measurement and disclosure requirements, to avoid diversities in practice for accounting insurance contracts
and it applies to all companies i.e., to all “insurance contracts” regardless of the issuer. However, Ind AS 117 is
not applicable to the entities which are insurance companies registered with IRDAI. The Company has evaluated
the amendments and there is no impact on its standalone financial statements.

Note 36 Contingent liabilities and commitments (to the extent not provided for) :

(i) Contingent liabilities:

(a) Claims / demands against the Company not acknowledged as debts including excise duty, income
tax, sales tax and trade and other demands of ' 12.22 (31 March 2024: ' 14.44)

(b) Bank guarantees and letters of credit for ' 49.69 (31 March 2024 : ' 124.00)

Notes:

[1] Contingent liabilities disclosed above represent possible obligations where possibility of cash
outflow to settle the obligations is not remote.

[2] The above does not include non-quantifiable industrial disputes and other legal disputes pending
before various judicial authorities [Also Refer note 40 and 46].

[3] The Supreme court of India in the month of February 2019 had passed a judgement relating to
definition of wages under the Provident Fund Act, 1952. Considering that there are numerous
interpretative issues relating to this judgement and in the absence of reliable measurement of
the provision for the earlier periods, the Company had made a suitable provision for provident
fund contribution during the Financial Year 2018-19. The Company will evaluate its position and
update its provision, if required, on receiving further clarity on the subject. The Company does not
expect any material impact of the same.

Regarding item (i) above, it is not practicable to disclose information in respect of the estimate
of the financial effect, an indication of the uncertainties relating to outflow and the possibility of
any reimbursement as it is determinable only on occurrence of uncertain future events / receipt of
judgements pending at various forums.

(b) Post employment benefit - Defined benefit plans

I. Provident fund - Contribution made by the Company during the year to the self administered Trust
fund is ' 11.76 (31 March 2024: ' 10.40). With regard to the assets of the fund and the return on the
investments, the Company does not expect any significant deficiency in the foreseeable future.

II. The Company has two funds: Britannia Industries Limited Covenanted Staff Gratuity Fund and
Britannia Industries Limited Non Covenanted Staff Gratuity Fund, which are funded defined benefit
plans for qualifying employees.

(i) The Scheme in relation to Britannia Industries Limited Non Covenanted Staff Gratuity Fund
provides for lumpsum payment to vested employees at retirement, death while in employment
or on termination of employment of an amount equivalent to 15 days salary payable for each
completed year of service or part thereof in excess of six months subject to the maximum
amount payable as per the Payment of Gratuity Act, 1972.

(ii) The Scheme in relation to Britannia Industries Limited Covenanted Staff Gratuity Fund
provides for lumpsum payment to vested employees at retirement, death while in employment
or on termination of employment of an amount equivalent to 15 days salary payable for each
completed year of service or part thereof in excess of six months subject to the higher of
maximum amount payable as per the Payment of Gratuity Act, 1972 and twenty months salary.

Vesting (for both the funds mentioned above) occurs in accordance with the provisions of the
Payment of Gratuity Act, 1972. The present value of the defined benefit obligation and the related
current service cost are measured using the projected unit credit method with actuarial valuation
being carried out at balance sheet date.

(i) The discount rate is based on the prevailing market yield on Government Securities as at the balance
sheet date for the estimated term of obligations.

(ii) The expected return on plan assets is determined considering several applicable factors mainly the
composition of the plan assets held, assessed risks of asset management, historical results of the return
on plan assets and the Company's policy for plan asset management.

(iii) The estimate of future salary increases considered in actuarial valuation takes into account inflation,
seniority, promotion and other relevant factors such as supply and demand in the employment market.

(iv) The disclosure above includes amounts for both Britannia Industries Limited Covenanted Staff Gratuity
Fund and Britannia Industries Limited Non Covenanted Staff Gratuity Fund.

Note 46 During the year ended 31 March 2016, based on queries received from Securities Exchange Board of India
(‘SEBI’), the Company conducted a preliminary internal investigation and discovered certain irregularities
by M/s Sharepro Services (India) Private Limited (‘Sharepro’), the Company’s erstwhile Registrar and Share
Transfer Agent. Subsequently, the Company filed a criminal complaint against Sharepro and its employees.
Pursuant to the directions issued by SEBI in its interim order dated 22 March 2016, the Company appointed
an independent external agency to conduct an audit of the records and systems of Sharepro with respect to past
transactions. The report of the external agency was submitted with SEBI by the Company vide its letter dated
12 July 2016. In 2019-20, following the receipt of a Show Cause Notice dated 8 November 2019 from SEBI
in a related matter, the Company filed a Settlement Application and SEBI passed the settlement order on 17
September, 2020.The Company continues to evaluate additional steps, if any, based on the directions of SEBI
or any other regulatory authorities.

Based on consultations with its legal counsel, the Company has been advised that the liability will not devolve
on the Company and thus no provision is considered necessary.

Note 47 Non-current assets classified as ‘held for sale’ are measured at the lower of its carrying value and fair value less
costs to sell. Non-current assets held for sale are not depreciated or amortised.

Pursuant to the Joint Venture agreement with Bel SA, during the year ended 31 March 2023, the Company
intended to sell the aforementioned cheese related assets which have been re-classified from Capital work-in¬
progress during the previous year, to Britannia Bel Foods Private Limited, subsequently during the year these
assets have been sold.

Note 48 Capital management

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as
to maintain investors, creditors and market confidence and to sustain future development and growth of its
business. In order to maintain the capital structure, the Company monitors the return on capital, as well as the
level of dividends to equity shareholders. The Company aims to manage its capital efficiently so as to safeguard
its ability to continue as a going concern and to optimise returns to all its shareholders. For the purpose of the
Company’s capital management, capital includes issued capital and all other equity reserves and debt includes
non-current borrowings, current borrowings, non-current lease liabilities and current lease liabilities.

Investments in mutual funds and Investments with insurance companies which are classified as FVTPL are
measured using net assets value at the reporting date multiplied by the quantity held.

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities
(‘’Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, 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 provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

No funds have been received by the Company from any persons or entities, including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

Financial risk management

The Company’s financial risk management is an integral part of how to plan and execute its business strategies.
The Company’s management risk policy is set by the Board. The Company’s activities expose it to a variety
of financial risks: credit risk, liquidity risk and market risk. The Company’s primary focus is to foresee the
unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
A summary of the risks have been given below.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers
and loans given. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure
to customers, including outstanding accounts receivables. The maximum exposure to credit risk is equal to the
carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses
in financial assets. The Company assesses the credit quality of the counterparties, taking into account their
financial position, past experience and other factors. Based on our assessment and current estimates the carrying
value and the provisions made as at 31 March 2025 is considered adequate.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The demographics of the customer, including the default risk of the industry and country in which the customer
operates, also has an influence on credit risk assessment. The Company limits its exposure to credit risk from
trade receivables by establishing a appropriate credit period for customer. In monitoring customer credit risk,
customers are grouped according to their credit characteristics, including whether they are wholesale, retail or
institutional customers, their geographic location, industry, trading history with the Company and existence of
previous financial difficulties. The default in collection as a percentage to total receivable is not material.

Other financial assets

The credit risk relating to cash and cash equivalents, bank balances, trade receivables, loans receivable,
investments in tax-free bonds, investments in debentures/bonds, investments in preference shares, investments
in government securities, investments in commercial papers, borrowings, trade payables and other financial
assets and liabilities approximate their carrying amount largely due to the nature of these instruments. The
Company’s loans have been contracted at market rates of interest. Accordingly, the carrying value of such loans
approximate fair value. The maximum exposure to credit risk at the reporting date is the carrying value of each

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
The Company manages its liquidity risk by ensuring, that it will always have sufficient liquidity to meet its
liabilities when due. The Company’s corporate treasury department is responsible for liquidity, funding as well
as settlement management. In addition, processes and policies related to such risks are overseen by the senior
management.

The Company aims to maintain the level of its cash and cash equivalents and other highly marketable debt
investments at an amount in excess of expected cash outflows on financial liabilities (other than trade payables)
over the next six months. The Company also monitors the level of expected cash inflows on trade receivables
and loans together with expected cash outflows on trade payables and other financial liabilities. At 31 March
2025, the expected cash flows from trade receivables is ' 379.63 (31 March 2024: ' 347.05). This excludes the
potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - 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.

Currency risk

The Company is exposed to currency risk to the extent that there is mismatch between the currencies in which
sales, purchase are denominated and the respective functional currencies of Company. The Company has export
sales (2% to 3% of total sales) primarily denominated in US dollars and Euro. At any point in time, the Company
hedges 95% to 100% of its estimated foreign currency exposure in respect of sales and purchases over the
following 12 months. The Company uses forward exchange contracts to hedge its currency risk, most with a
maturity of less than one year from the reporting date.

The Company uses forward exchange contracts to hedge the currency exposure and is therefore not exposed
to significant currency risk at the respective reporting dates.

Sensitivity analysis

The impact of strengthening/weakening of currency on the Company is not material as Company hedges 95%
to 100% of the foreign currency exposure.

Interest rate risk

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

Sensitivity analysis

The sensitivity analysis have been determined based on the exposure to interest rates for debt obligations with
floating rates. The impact on the Company of movement in interest rate by 100 basis points higher or lower
and considering all other variables constant, is not material.

Note 55 Prior year amounts have been regrouped / reclassified wherever necessary, to conform to the presentation in
the current year, which are not material.

Note 56 During the year ended 31 March 2025, no material foreseeable loss (31 March 2024: Nil) was incurred for any
long-term contract including derivative contracts.

As per our report of even date attached

for Walker Chandiok & Co LLP for and on behalf of the Board of Directors

Chartered Accountants Sd/- Sd/-

Firm registration number: 001076N/N500013 Nusli N. Wadia Varan Berry

Chairman Executive Vice-Chairman,

Managing Director and Chief Executive Officer
(DIN: 00015731) (DIN: 05208062)

Sd/- Sd/- Sd/-

Aasheesh Arjun Singh N.Venkataraman T.VThulsidass

Partner Executive Director and Chief Financial Officer Company Secretary

Membership number: 210122 (DIN: 05220857) (Membership number: A20927)

Place : Bengaluru Place : Bengaluru

Date : 8 May 2025 Date : 8 May 2025