Note 3: Property, plant and equipment and Capital work-in-progress (Contd..)

1. During the year, the company has transfered the following expenses which are attributable to the construction activity and are included

in the cost of capital work-in-progress / property, plant and equipment as the case may be. Consequently, expenses disclosed under the respective notes are net of such amounts.

2. The amount of borrowing cost capitalised during the year ended March 31, 2024 is H 1,545 lakhs (March 31, 2023: H 2,000 lakhs). The rates used to determine the amount of borrowing cost eligible for capitalisation was in the range of 7.33% to 7.72% (March 31, 2023: 5% to 7.34%) which is the effective interest rate of general borrowings.

3. Refer notes 18 and 22 for details on pledges and securities.

The capacity expansions undertaken is modular in nature, wherein civil work and major upstream capex are incurred, followed by downstream capex to ramp up production in line with anticipated market demand. Based on long term demand and supply planning, management estimates the annual capex requirement and project timelines which are approved by the Board. There are no projects which are overdue based on such timelines or which have exceeded cost compared to plans.

a) The rate used for discounting is in range of 7-10%.

b) Refer note 42 for information about fair value measurement and note 44(c) for information about liquidity risk relating to lease liabilities.

c) Significant Judgements in determining the lease term of contracts with renewal and termination options:

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.

The Company included the renewal period as part of the lease term for leases of buildings and other with shorter non-cancellable period. The Company typically exercises its option to renew for these leases because there will be a significant negative effect on the operations if a replacement asset is not readily available. The renewal periods for leases of building and others with longer noncancellable periods are not included as part of the lease term as these are not reasonably certain to be exercised. Furthermore, the periods covered by termination options are included as part of the lease term only when they are reasonably certain not to be exercised.

d) The Company has lease contracts for plant & machinery that contains variable payments amounting to H 18,215 lakhs ( H 15,271 lakhs in March 31, 2023) shown under other expenses.

e) The Company has recognised H 917 lakhs as miscellaneous expenses during the year ( H 921 lakhs in March 31, 2023) which pertains to short term lease/ low value asset which was not recognised as part of ROU.

a) The Company entered into Share Subscription and Shareholders' Agreements (SSHA) on July 5, 2023 with TYRESNMORE Online Private Limited (TNM) and acquired an additional 10.83% shareholding through Compulsory Convertible Preference Shares ('CCPS') at a consideration of H 899 lakhs, thereby increasing its stake from 49.83% to 60.66%.

On August 4, 2023, the Company acquired the remaining 39.34% stake and control from the promoters and other shareholders in TNM and converted it into a wholly owned subsidiary at a consideration of H 300 lakhs.

1) During the financial year 2023-24, H 3,727 lakhs (March 31, 2023: H 3,329 lakhs) was charged to the statement of profit and loss on account of slow moving stock as per the Company's policy.

2) Refer note 22 for details on pledges and securities.

3) Inventories of finished goods have been reduced by H 117 lakhs (31 March 2023: H 182 lakhs) as a result of the write-down to net realisable value.

a) These debts are secured to the extent of security deposit obtained from the dealers

b) No trade receivables are due from directors or other officers of the company either severally or jointly with any other person nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member other than those disclosed in note 39.

c) For terms and conditions relating to related party receivables, refer note 39.

a) These balances are available for use only towards settlement of matured deposits and interest on deposits. Also includes Nil (March 31,2023 H 0.20 lakhs) outstanding for a period exceeding seven years, in respect of which a Government agency has directed the Company to hold.

b) These balances are available for use only towards settlement of corresponding unpaid dividend liabilities. The sum also includes H 1.19 lakhs (March 31,2023 H 1.04 lakhs) outstanding for a period exceeding seven years retained in accordance with the provisions of Section Rule 6(3) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016.

a) Includes 688 (March 31,2023 - 688) equity shares offered on right basis and kept in abeyance.

b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having face value of H 10 per share. Each holder of equity shares is entitled to one vote per equity share. Dividend is recommended by the Board of Directors and is subject to the approval of the members at the ensuing Annual General Meeting except interim dividend. The Board of Directors have a right to deduct from the dividend payable to any member, any sum due from him to the Company.

In the event of winding-up, the holders of equity shares shall be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by shareholders. The shareholders have all other rights as available to equity shareholders as per the provision of the Companies Act, applicable in India read together with the Memorandum of Association and Articles of Association of the Company, as applicable.

d) As per the records of the Company as at March 31,2024 no calls remain unpaid by the directors and officers of the company.

e) The Company has not issued any equity shares as bonus for consideration other than cash and has not bought back any shares during the period of 5 years immediately preceeding March 31,2024.

b) Capital reserve

Capital reserve includes profit on amalgamation of entities.

c) Capital redemption reserve

Capital redemption reserve represents amount transferred from profit and loss account on redemption of preference shares during FY 1998-99.

d) Effective portion of cash flow hedges

It represents mark-to-market valuation of effective hedges as required by Ind AS 109.

e) General Reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriations purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income , items included in the general reserve will not be reclassified subsequently to the Statement of Profit and Loss.

f) Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to reserves, dividends or other distributions paid to shareholders.

Proposed dividends on equity shares which are subject to approval at the Annual General Meeting are not recognised as a liability in the year in which it is proposed.

The Company declares and pays dividend in Indian rupees. The Finance Act 2020 has repealed the Dividend Distribution Tax. Companies are now required to pay / distribute dividend after deducting applicable taxes. The remittance of dividends outside India is also subject to withholding tax at applicable rates.

Notes to Borrowings:

1 Non-Convertible Debentures ("NCDs") H 25,000 lakhs as on March 31,2024 (March 31,2023: H 40,000 lakhs) allotted on October 13, 2020 (NCD Series 2) and September 19, 2022 (NCD Series 3) on private placement basis. First Tranche of NCD (allotted on October 07, 2020 (NCD Series 1)) is repaid on due date i.e. on October 06, 2023. Second tranche of NCD (NCD Series 2)is secured by way of first charge over movable and immovable fixed assets located at Ambernath plant and Third tranche of NCD (NCD Series 3) is un-secured. As at March 31, 2024, the NCDs carry an interest at 7.00% p.a. (NCD Series 2) and 7.99% p.a. (NCD Series 3) and is repayable as under:

- NCD Series 2: H 10,000 lakhs (40% of the issue amount) repayable on October 13, 2025.

- NCD Series 3: H 15,000 lakhs (60% of the issue amount) repayable on September 19, 2026.

2 Term loan from Citibank N.A. : Nil as on March 31,2024 (March 31,2023: H 10,750 lakhs) is repaid on due date i.e. on September 22, 2023.

3 Term loan from Kotak Mahindra Bank Limited H 22,800 lakhs as on March 31,2024 (March 31,2023: H 26,250 lakhs) is secured by first pari

passu charge over the immovable and movable fixed assets situated at Halol, Nashik, Nagpur and Chennai Plant. It is repayable as under:

8 Public deposits : Nil (March 31, 2023 H 0.20 lakhs) outstanding for a period exceeding seven years, in respect of which a Government agency had directed the Company to hold. During the year, the Company received direction from the Government agency to release the amount to the deposit holder. However due to non-traceability of the deposit holder, it is transferred to Investment Education and Protection Fund.

9 Interest-free deferred sales tax is repayable in ten equal annual instalment commencing from April 26, 2011 and ending on April 30, 2025.

10 Outstanding balances shown in foot notes above, are grossed up to the extent of unamortised transaction cost.

11 Refer note 42 of information about fair value measurement and note 44(c) for information about liquidity risk relating to borrowings.

b) Provision for sales related obligation

A provision is recognized for expected sales related obligation on product sold during the last three years, based on past experience of the level of returns and cost of claim. It is expected that significant portion of these costs will be incurred in the next financial year and within three years from the reporting date. Assumptions used to calculate the provision for sales related obligation were based on current sales levels and current information available about returns based on the three years period for all products sold. The rate used for discounting provision for sales related obligation is 9%. The table below gives information about movement in provision for sales related obligation.

a) Cash credit facilities and working capital demand loan from banks is part of working capital facilities availed from consortium of banks secured by way of first pari passu charge on the current assets of the Company carrying interest in the range of 7.50% p.a. to 9.80% p.a. (March 31, 2023 : 4.50% to 9.70% p.a.)

b) The Company had issued commercial papers (total available limit H 50,000 lakhs) at regular intervals for working capital purposes with interest ranging from 7.15% p.a. to 7.80% p.a. (March 31, 2023 : 4.14% to 7.70% p.a.)

c) Quarterly returns and statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

d) Refer note 44(c) for information about liquidity risk relating to borrowings.

The Company receives payment from customers based on a billing schedule, as established in the contracts with customers. Trade receivable are recognised when the right to consideration becomes unconditional. Contract liability relates to payments received in advance of performance under the contract. Contract liabilities are recognised as revenue as (or when) the Company perform under the contract.

d) Government Grant:

i) In accordance with the accounting policy for Government grants, the Company has recognised an amount of H 9,646 lakhs towards state incentives (March 31, 2023: H 10,268 lakhs) which is included in other operating revenue.

ii) The Company has recognised a government grant as income on account of Export Incentive under Merchandise Exports from India Scheme (MEIS) from Directorate General of Foreign Trade, Government of India.

Nature of CSR activities include promoting education, employment enhancing vocation skills, protection and restoration of National Heritage and promoting healthcare including preventive healthcare and Disaster management.

* Above includes Nil lakhs of Corporate Social Responsibility expense related to ongoing projects as at March 31, 2024 (March 31, 2023: H 206 lakhs). The same was transferred to a special account designated as "Unspent Corporate Social Responsibility Account for FY23" ("UCSRA - FY23") of the Company within 30 days from end of financial year ended March 31, 2023.

a) The Company had introduced VRS for employees across the Company. During the year, 29 employees (March 31,2023, 147 employees) opted for the VRS.

b) The exchange loss towards dividend and other receivables from its subsidiary / joint ventures in Sri Lanka on account of devaluation in Sri lanka currency is reflected as an exceptional item amounting to H 182 lakhs for the year ended March 31, 2023.

c) On July 21, 2022, the Ministry of Environment, Forest and Climate Change issued notification containing Regulations on Extended Producer Responsibility (EPR) for Waste Tyre applicable to Tyre manufacturers and Recyclers. As per the notification, the Company has a present legal obligation as at March 31,2024 for FY 2023-24 (quantified basis the production in FY 21-22) and for FY 2022-23 (quantified basis the production in FY 20-21) to purchase EPR certificates online from Recyclers of waste tyre, registered with the Central Pollution Control Board, to fulfil its obligations.

As at March 31, 2023 the Company could not estimate the liability reliably since the infrastructure for the same was not enabled and hence this obligation was not provided for. In the current year the enabling framework has been established for the Company to reliably estimate the liability and accordingly H 10,720 lakhs has been provided in the books in the current year including H 3,453 lakhs pertaining to FY 22-23 obligations, which has been disclosed as an exceptional item during the year ended March 31, 2024. The obligation pertaining to FY 23-24 has been disclosed separately in Other expenses.

The Company has provided the above on a prudence basis while the matter has been represented to the Government by the Company along with the Industry forum to defer the applicability and proposed certain changes in the modalities.

Note 37: Post-retirements benefit plan

Refer note 2.13 for accounting policy on employee benefits

a) Defined contribution plan

Refer note 30 for Company's contribution to the defined contribution plans with respect to provident fund and other funds.

b) Defined benefit plan - Gratuity Description of plan

The Company has a defined benefit gratuity plan which is funded with an Insurance Company in the form of a qualifying Insurance policy. The Company's defined benefit gratuity plan is a salary plan for employees which requires contributions to be made to a separate administrative fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, every employee who has completed five years of service gets a gratuity on separation at 15 days of last drawn salary for each completed year of service.

Governance

The fund has the form of a trust and it is governed by the Board of Trustees, which consists of employer and employee representatives. The Board of Trustees is responsible for the administration of the plan assets and for the definition of the investment strategy. Each year, the Board of Trustees reviews the level of funding.

Investment Strategy

The Board of trustees have appointed LIC of India, Birla Sun Life Insurance, India First Life Insurance, Kotak Mahindra Life Insurance & HDFC Life Insurance to manage its funds. The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise. Every year, the insurance Company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company. In case of death, while in service, the gratuity is payable irrespective of vesting.

The following set out the amounts recognized in the Company's financial statements as at March 31, 2024 and March 31,2023.

The discount rate indicated above reflects the estimated timing and currency of benefit payments. It is based on the yields / rates available on applicable bonds as on the current valuation date.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The Company's best estimate of contribution during the next year is H 1,623 lakhs. ix) Sensitivity analysis of the defined benefit obligation

The sensitivity analysis below have been determined based on reasonably possible change of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The results of sensitivity analysis is given below:

b) Excise / Service tax / GST cases include disputes pertaining to availment of CENVAT credit / input tax credit and other matters. Customs case includes dispute pertaining to MODVAT reversal (import under Value based Advance License).

c) Sales tax cases includes disputes pertaining mainly on account of input tax credit mismatch, VAT applicability on royalty / security deposits / octroi and other issues.

d) The Competition Commission of India ('CCI') on February 02, 2022 had released its order dated August 31, 2018 against the Company and other Tyre Manufacturers and also the Automotive Tyre Manufacturer Association (ATMA) concerning contravention of the provisions of the Competition Act, 2002 in the year 2011-12 and imposed a penalty of H 25,216 lakhs on the Company. The Company had filed an appeal against the CCI Order before the Honourable National Company Law Appellate Tribunal (NCLAT). NCLAT in its order dated December 01, 2022, has remitted the matter back to the CCI to re-examine the order and to consider reviewing the penalty pointing out certain errors leading to wrong conclusions. CCI has filed an Appeal before the Supreme Court against the Order passed by the NCLAT. Company is also a Respondent in the said Appeal and has filed its reply to the CCl's appeal on December 28, 2023. No interim order has been passed by the Supreme Court. The Appeal is pending before the Supreme Court.

e) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial position.

c. Others

The Company has availed the Sales Tax Deferral Loan and Octroi refund from the Directorate of Industries for Nashik Plant. Hence, the Company has to take prior permission of the appropriate authority for removal / transfer of any asset (falling under the above Schemes) from Nashik Plant. In case of violation of terms & conditions, the Company is required to refund the entire loan / benefit along with the interest @ 22.50% on account of Sales Tax deferral Loan and @ 15% on account of Octroi refund.

d. Material demands and disputes considered as "Remote" by the Company

The Company has been served with a Show Cause cum Demand Notice from the DGCEI (Directorate General of Central Excise Intelligence) Mumbai, on the ground that, the activity of making tyre set, i.e. inserting Tubes and Flaps inside the Tyres and tied up through Polypropylene Straps, amounts to manufacture / pre-packaged commodity under Section 2(f)(iii) of Central Excise Act, read with Section 2(l) of the Legal Metrology Act, 2009. Accordingly, the authorities worked out the differential duty amounting to H 27,672 lakhs i.e., the difference between the amount of duty already paid on the basis of transaction value and duty payable on the basis of MRP under Section 4A, for the period from April 2011 to June 2017. The Company believes that Set of TT / TTF (Tyre and Tube / Tyre, Tube and Flap) is not a pre-packaged commodity in terms of provisions of Legal Metrology Act, 2009 read with Central Excise Act and Rules made thereunder. The Company has a strong case on the ground that, the said issue has been clarified by the Controller of the Legal Metrology Department vide its letter dated May 01, 1991 that "Tyre with tube & flaps tied with three thin polythene strips may not be treated as a pre-packed commodity within the meaning of rule 2(l) of the Standards of Weights and Measures (Packaged Commodities), Rules, 1977". The above clarification has been re-affirmed vide letter dated November 16, 1992 by the Legal Metrology authorities.

Terms and conditions of transactions with related parties

The sales to and purchases and other transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash.

Managerial remuneration is computed as per the provisions of section 198 of the Companies Act, 2013. The amount outstanding are unsecured and will be settled in cash.

## Considering the possibility of inadequacy of profts, if any, the Company had paused the payment to Mr. Anant Goenka effective January 1, 2023, subject to approval of members which has been obtained subsequently by way of Postal Ballot on April 27, 2023.

During the financial year 2023-24 and 2022-23, no single external customer has generated revenue of 10% or more of the Company's total revenue.

During the financial year 2023-24 and 2022-23, no single country outside India has given revenue of more than 10% of total revenue.

Note 41: Hedging activities and derivatives Derivatives designated as hedging instruments

The Company uses derivative financial instruments such as foreign currency forward contracts to hedge foreign currency risk arising from future transactions in respect of which firm commitments are made or which are highly probable forecast transactions. All these instruments are designated as hedging instruments and the necessary documentation for the same is made as per Ind AS 109.

Cash flow hedges Foreign currency risk

Foreign exchange forward contracts measured at fair value through OCI are designated as hedging instruments in cash flow hedges of committed future purchases and highly probable forecast sales.

The foreign exchange forward contract balances vary with the level of expected foreign currency sales and purchases and changes in foreign exchange forward rates.

The terms of the foreign currency forward contracts match the terms of the expected highly probable forecast transactions. As a result, no hedge ineffectiveness arise requiring recognition through the Statement of Profit and Loss.

The cash flow hedges as at March 31, 2024 were assessed to be highly effective and a net unrealised loss of H 268 lakhs, with a deferred tax asset of H 67 lakhs relating to the hedging instruments, is included in OCI. Comparatively, the cash flow hedges as at March 31,2023 were assessed to be highly effective and a net unrealised gain of H1,150 lakhs, with a deferred tax liability of H 289 lakhs relating to the hedging instruments, was included in OCI.

Note 42: Fair values

The management considers that the carrying value of financial assets and financial liabilities which are recognised at amortised cost are a reasonable approximation of their fair values.

Note 43: Fair value hierarchy

The fair value of financial instruments as referred to in note 42 above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

^ Level 1: Quoted prices for identical instruments in an active market;

^ Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and ^ Level 3: Inputs which are not based on observable market data.

The following table provides the fair value measurement hierarchy of the Company's assets and liabilities as at March 31, 2024 and March 31, 2023

Calculation of Fair Values

The fair values of the financial assets and liabilities are defined as the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the year ended March 31,2023.

Financial assets and liabilities measured at fair value as at Balance Sheet date:

Derivative financial instruments: The fair values of the derivative financial instruments has been determined using valuation techniques with market observable inputs. The models incorporate various inputs including the credit quality of counter-parties, foreign exchange forward rates, etc.

Investment in others: The fair value is calculated using the Discounted Cashflow method where the significant unobservable input used is discount rate - 18.64%.

Note 44 : Financial 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, cash and cash equivalents that derive directly from its operations. The Company also enters into derivative transactions.

The Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. The Board of Directors through its Risk Management Committee reviews and agrees policies for managing each of these risks, which are summarised below.

a) Market risk

The Company's size and operations result in it being exposed to the following market risks that arise from its use of financial instruments: ^ Interest rate risk;

^ Foreign currency risk;

^ Equity price risk; and ^ Commodity risk

The above risks may affect the Company's income and expenses, or the value of its financial instruments. The Company's exposure to and management of these risks are explained below.

The sensitivity of the relevant Statement of Profit or Loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31,2023 and March 31,2022 including the effect of hedge accounting.

Foreign currency sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in USD and EURO rates, with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company's exposure to foreign currency changes for all other currencies is not material.

The movement in the pre-tax effect is a result of a change in the fair value of the financial asset / liability due to the exchange rate movement. The derivatives which have not been designated in a hedge relationship act as an economic hedge and will offset the underlying transactions when they occur. The same derivatives are not covered in the above table.

In Management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

iii. Equity price risk

There is no material equity risk relating to the Company's equity investments which are detailed in note 6. The Company's equity investments majorly comprises of strategic investments rather than trading purposes.

Commodity price sensitivity

The following table approximately details the Company's sensitivity to a 5% movement in the input price of rubber and carbon black. The sensitivity analysis includes only 5% change in commodity prices for quantity sold or consumed during the year, with all other variables held constant. A positive number below indicates an increase in profit or equity where the commodity prices decrease by 5%. For a 5% increase in commodity prices, there would be a comparable impact on profit or equity, and the balances below would be negative.

b) Credit risk

Trade receivables

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.

Risk Management:

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.

Trade receivables are non-interest bearing and are generally on 27 days to 60 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

Export receivables are against Letter of Credit, bank guarantees, payment against documents. For open credit exports insurance cover is taken. Generally deposits are taken from domestic debtors under replacement segment. The carrying amount and fair value of security deposit from dealers amounts to H 53,862 lakhs (March 31, 2023: H 49,389 lakhs) as it is payable on demand. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Note 45: Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

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 that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2024 and March 31, 2023.

Note 46: Material foreseeable losses

The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of accounts.

Note 47: Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company do not have any transactions with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have 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

(vi) The Company have not received any fund 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,

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