iii. Security disclosure for the outstanding current borrowings for current year ended 31 March 2024 are as

follows:

1. First pari-passu charge over the entire current assets of the Company including raw material, stock-in-trade, finished goods including stocks-in-transit and those lying in godowns, ports, etc and book debts (both present and future).

2. Second pari-passu charge on the entire fixed assets of the Company both present and future, excluding vehicles, but including assets situated at Plot No. PA 011-006, Light Engineering Zone, Mahindra World City - SEZ, Jaipur, assets of Survey no. 233/15 to 233/30, Tiruthani Road, Ananthapuram-panchayat, Narasingharayani Pettah - Post Chittoor, Andhra Pradesh, and Khasra No. 209/1/4/1,209/1/5/1 & 209/1/5/3, situated at Village Jaychand Ka Bans, Village Panchayat Harsuliya, Tehsil Phagi, Jaipur, Rajasthan

3. First charge on Survey no. 43 Near National highway no.8A (Patri Gundala road, Village Gundala, Taluka Mundra, Kutch (Gujrat)

1. First pari-passu charge over the entire current assets of the Company including raw material, stock-in-trade, finished goods including stocks-in-transit and those lying in godowns, ports, etc and book debts (both present and future).

2. First pari-passu charge on the entire fixed assets of the Company both present and future, excluding vehicles, assets situated at Plot No. P.A. 011-006, Light Engineering Zone, Mahindra World City - SEZ, Jaipur, assets of Survey no. 233/15 to 233/30, Tiruthani Road, Ananthapuram-panchayat, Narasingharayani Pettah - Post Chittoor, Andhra Pradesh, Survey no. 43 Near National highway no.8A (Patri Gundala road, Village Gundala, Taluka Mundra, Kutch (Gujrat)) and Flat no.402, Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur. But including the following:

- Flat no. 302, 401,403 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur.

- Land and building at Khasra No. 209/1/4/1, 209/1/5/1 & 209/1/5/3, Village Jaychand Ka Bans, Village Panchayat Harsuliya, Tehsil Phagi, Jaipur, Rajasthan.

3. First pari-passu charge on Land and house at 3/90, HIG, Mansarovar, Jaipur of Gravita Impex Private Limited (related party) and Flat no. 203 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur of Managing Director Mr. Rajat Agrawal.

4. Personal guarantee of Managing Director Mr. Rajat Agrawal.

5. Corporate guarantee of Gravita Impex Private Limited (related party).

6. Second pari-passu charge on the fixed assets of Chittoor Plant.

v Rate of interest for current borrowings

The Company's current borrowings facilities have an effective weighted-average contractual rate calculated using the interest rates effective for the respective borrowings as at reporting date is 8.12 % p.a. (previous year: 7.13% p.a)

vi. The quarterly returns/statements, in respect of the working capital limits have been filed by the Company with the lenders and such returns/statements are in agreement with the books of account of the Company for the respective periods.

vii. Repayment terms: Cash credit facilities and working capital demand loans are repayable on demand with in a period of less than 12 months. These loans have been used for the specific purpose for which they are taken as at the year end.

viii. Refer note 40 and 41 for disclosure of fair values in respect of financial liabilities measured at amortised cost and analysis of their maturity profiles.

i. Disclosures on lease pursuant to Ind AS 116 - Leases

The Company has leases for the factory lands, office premises, equipment, etc. Also, the Company has a leasehold land situated at Plot No. PA-011-006, Mahindra Sez, Village Kalwara, Tehsil Sanganer Distt-Jaipur, which has been taken on a lease for a period of 92 years in the year 2013.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to another party, the right-of-use asset can only be used by the Company. Leases contain an option to extend the lease for a further term after mutual consent of both the parties. The Company is prohibited from selling or pledging the underlying leased assets as security against the Company's other debts and liabilities.

The table below describes the nature of the Company's leasing activities by type of Right-of-use (ROU) asset recognised on balance sheet:

iii. Lease payments not recognised as a liability

The Company has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. The Company does not have any liability to make variable lease payments for the right to use the underlying asset recognised in the Financial Statement. The expense relating to payments not included in the measurement of the lease liability for short term leases is Rs. 2.19 crores (previous year: Rs. 2.05 crores).

iv. Total cash outflow for leases for the year ended March 31,2024 was Rs. 2.93 crores (previous year Rs. 2.84 crores).

(i) The Company has tax not recognised deferred tax on impairment provision of Investment in subsidiary company amount to Rs. 1.99 crores. The deferred tax impact on such investment is Rs. 0.70 crores, considering there is no probability which demonstrates realisation of deferred tax asset in the near future.

(iii) There are unused minimum alternate tax credits as mentioned below which have not been recognized as an asset in the books of accounts in the absence of convincing evidence of utilization during the specified allowable period against the future taxable profits to be computed as per the normal provisions of the Income-tax Act, 1961:

(iv) The Company has unused minimum alternate tax credit which has been recongnised in the books, amounting to Rs. 25.06 crores as ot 31 March 2024 (previous year: Rs. 14.06 crores). Such tax credit have been recognised on the basis that recovery is probable in forseeable future. The Company has following unutilised MAT credit entitlement which has been recognised in the current and previous years:

(ii) On the basis of confirmation obtained from suppliers who have registered themselves under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED Act, 2006) and based on the information available with the Company, dues disclosed as per the Micro, Small and Medium Enterprise Development Act, 2006 ('MSMED Act, 2006') at the year end are mentioned below. The same has been relied upon by the auditors.

(b) Trade receivables and contract balances

The Company present the right to consideration in exchange for sale of promised products/ service as Trade receivable in the Financials Statements. A receivable is a right to consideration that is unconditional upon passage of time. Trade receivable are presented net of impairment (if any) in the Balance Sheet. Further, impairment of bad and doubtful debts has been created based on expected credit loss method as prescribed in Ind AS 109. Refer note 41 for details of expected credit loss for trade receivables under simplified approach.

(c) Revenue recognised in relation to contract liabilities

Ind AS 115 also requires disclosure of 'revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period' and 'revenue recognised in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods. Same has been disclosed as below:

(ii) The Company's recycling facility at Chittoor, was eligible for incentives available under "Industrial Development Policy 2015-2020”, notified by the Andhra Pradesh government. Under the scheme the Company had been granted "Small Industry” status and was eligible for incentives like, power cost reimbursement, interest reimbursement, refund of sales tax/State Goods and services tax paid in cash, etc. Based on such policy, the Company had recognised the incentive computed based on State Goods and Service Tax ('SGST') paid to Government of Andhra Pradesh. Further, in terms of the Ind AS 20 - "Accounting for Government Grants and Disclosure of Government Assistance”, eligible incentive as mentioned above is credited to Statement of Profit and Loss and included under the head "Other operating revenue” on accrual basis amounting to Rs. 12.91 crores (previous year Rs. nil crores). Further, the Company was also entitled for capital grant of Rs. 0.26 crores out of which Rs. 0.02 crores (previous year: Rs. 0.01 crores) has been recognised as amortisation of government grant under the head "Other operating revenue” and balance amount of Rs. 0.14 crores (previous year: Rs. 0.16 crores) has been recognised as deferred government grants under head "Other liabilities”

iii) During the current year, an amount of Rs. 1.42 crores (previous year: Rs. 4.37 crores) has been recognised under the head "Other operating revenue”, which has been credited under electronic credit ledger under Remission of Duties or Taxes on Export Products ('RODTEP') scheme.

(iv) During the current year, an amount of Rs. 0.70 crores (previous year: Rs. 6.02 crores) has been recognised under the head "Other operating revenue”, which has been credited under Duty Drawback scheme as envisaged under The Customs Act 1962.

(i) All the matters above other than guarantee given by the Company are subject to legal proceedings in the ordinary course of business. The management is confident that its position to be upheld in the appeals pending before various appellate authorities and no liability could arise on the Company on account of these proceedings.

(ii) During the current year, the Company has filed an appeal against the demand order received from the Office of the Commissioner of Customs (Preventive), Jodhpur amounting to Rs. 70.10 crore (excluding applicable interest, fine and penalty) for violating the 'pre-import conditions'as envisaged in advance authorisation licence pertaining to the period from October, 2017 to January 2019 vide notification no. 79/2017-Customs dated 17/10/2017 ofThe Custom Act, 1962.

The management of the Company, based on its overall assessment and independent legal and tax opinion believe that the Company has a case on merit and question of law and accordingly, contest the matter in appellate authorities. Basis above, the management is of the view that the order will not have any material impact on its standalone financial statements and in case of any liability devolves on the Company, the Company will be entitled to take the credit of the tax amount. Considering all available records, facts and opinion of legal and tax counsel, the Company has not identified any adjustments in the current year standalone financial statements.

(i) Interim dividend of Rs 5.20 per share amounting to Rs. 35.90 crores has been declared by the Board of Directors in its meeting held on April 30, 2024.

(ii) Final dividend recommended by the Board of Directors in its meeting held on May 01, 2023 and approved by shareholders at their meeting held on September 11, 2023 has been paid during the current financial year ended March 31,2024.

* Certain amounts that are required to be disclosed and do not appear due to rounding-off are expressed as "0.00”.

# Investment in subsidiaries (including partnership firms and LLP) are measured at cost as per Ind AS 27, 'Separate financial statements' and hence, not presented here.

B Fair values hierarchy

The fair value of financial instruments as referred to in note (A) above has 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 (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

The management has opted for designating the derivative assets and derivative liabilities to classify as fair value through profit or loss as the respective gain/(loss) on the original asset/liabitiy is routed through the statement of profit and loss. Therefore, the management intends to classify these derivate assets and derivative liabilities through profit or loss.

Valuation process and technique used to determine fair value

i. The fair value of investments in quoted equity shares (level 1) is based on the current bid price of respective investment as at the balance sheet date.

ii. The fair value of investments in unquoted equity shares is estimated at their respective costs, since those companies do not have any significant operations and there has neither been any significant change in their performance since initial recognition nor there is any expectation of such changes in foreseeable future.

iii. The Company enters into commodity contracts with financial institutions for hedging price risk of lead arising from its import and export. Fair values of such contracts (level 2) are determined based on observable rates of the commodity for similar contracts for the remaining maturity on the balance sheet date. The valuation of such instruments is carried out through the rates (marked to market) confirmed by the respective banks as at the balance sheet date.

iv. There are no significant changes in value of level 3 investment measured at fair value through other comprehensive income.

* Certain amounts that are required to be disclosed and do not appear due to rounding-off are expressed as "0.00”.

The management assessed that fair values of current financial assets, cash and cash equivalents, other bank balances, trade receivables, short term borrowings, trade payables, current lease liabilities and other current financial liabilities approximate their respective carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is disclosed at the amount at which the instrument could be exchanged in a current transaction between

willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

i. Non-current loans and non-current financial liabilities are evaluated by the Company based on parameters such as interest rates, individual creditworthiness of the counterparty/borrower and other market risk factors.

ii. The fair values of the Company's fixed interest-bearing liabilities, loans and receivables are determined by applying discounted cash flows ('DCF') method, using discount rate that reflects the issuer's borrowing rate as at the end of the reporting period. The own non-performance risk as at March 31,2024 was assessed to be insignificant.

iii. All the other long term borrowing/ short term borrowing facilities availed by the Company are variable rate facilities, and are subject to changes in underlying interest rate indices. Further, the credit spread on these facilities are subject to change with changes in Company's creditworthiness. The management believes that the current rate of interest on these loans are in close approximation from market rates applicable to the Company. Therefore, the management estimates that the fair value of these borrowings are approximate to their respective carrying values.

The Company's risk management is carried out by a central treasury department (of the Company) under policies approved by the board of directors. The board of directors provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and investment of excess liquidity.

I. Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit risk is influenced mainly by loans, cash and cash equivalents, trade receivables, derivative financial instruments and other financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

(a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

(i) Low credit risk

(ii) Moderate credit risk

(iii) High credit risk

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in Statement of Profit and Loss.

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

Derivative financial instruments

Derivative financial instruments are considered to have low credit risk since the contracts are with reputable financial institutions.

Trade receivables

Trade receivables are generally unsecured and non-interest bearing. There is no significant concentration of credit risk. The Company's credit risk management policy in relation to trade receivables involves periodically assessing the financial reliability of customers, taking into account their financial position, past experience and other factors. The utilization of credit limit is regularly monitored. The Company's credit risk is mainly confined to the risk of customers defaulting against credit sales made. Outstanding trade receivables are regularly monitored by credit monitoring Company. The Company has also taken advances from its customers, which mitigate the credit risk to an extent. In respect of trade receivables, the Company recognises an impairment for lifetime expected credit losses after evaluating the individual probabilities of default of its customers which are duly based on the inputs received from the marketing teams of the Company.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans to related parties, loans to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system are in place ensure the amounts are within defined limits.

(b) Expected credit losses for financial assets

(I) Financial assets (other than trade receivables)

Company provides for expected credit losses on financial assets other than trade receivables by assessing individual financial instruments for expectation of any credit losses.

For cash & cash equivalents, other bank balances and derivative financial instruments - Since the Company deals with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, derivative financial instruments, other bank balances and bank deposits is evaluated as very low.

For security deposits paid - Credit risk is considered low because the Company is in possession of the underlying asset.

For other financial assets - Credit risk is evaluated based on Company knowledge of the credit worthiness of those parties and loss allowance is measured. For such financial assets, the Company policy is to provide for 6 month expected credit losses upon initial recognition and provide for lifetime expected credit losses upon significant increase in credit risk.

(ii) Expected credit loss for trade receivables under simplified approach

As at March 31,2024 and March 31,2023, the Company considered the individual probabilities of default of its financial assets (other than trade receivables) and determined that in respect of counterparties with low credit risk, no default events are considered to be possible within the 6 months after the reporting date. In respect of trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected credit losses using a simplified approach.

II. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company's exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

(b) Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their contractual maturities.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant:

III. Market risk

(a) Foreign currency risk

The Company is exposed to foreign exchange risk in the normal course of its business. Multiple currency exposures arise from commercial transactions like sales, purchases, borrowings, recognized financial assets and liabilities (monetary items). Certain transactions of the Company act as natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adapts the policy of selective hedging based on risk perception of management. Foreign exchange hedging contracts are carried at fair value. The Company's exposure to foreign currency changes for all other currencies which are not stated below is not material. Foreign currency exposures that are not hedged by derivative instruments outstanding as on the balance sheet date are as under:

Foreign exchange risk sensitivity analysis has been performed on the foreign currency exposures in the Company's financial assets and financial liabilities at the reporting date, net of derivative contracts for hedging those exposures read with Note 39 - "Disclosure of effects of hedge accounting on financial position”, Reasonably possible changes are based on an analysis of historic currency volatility, together with any relevant assumptions regarding near-term future volatility.

Foreign exchange derivative contracts

The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its commercial business or financing activities. The Company's Corporate Treasury team manages its foreign currency risk by hedging transactions that are expected to occur within 12 to 15 months for hedges of forecasted sales, purchases and capital expenditures. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency. All identified exposures are managed as per the policy duly approved by the Board of Directors.

(b) Interest rate risk(i) Financial liabilities

The Company's policy is to minimise interest rate cash flow risk exposures on external financing. At March 31, 2024 and March 31,2023, the Company is exposed to changes in interest rates through bank borrowings carrying variable interest rates. The Company's investments in fixed deposits carry fixed interest rates.

(i) Holding all other variables constant

(c) Price risk Exposure

The Company exposure to price risk arises from investments held and classified in the balance sheet either as fair value through other comprehensive income or at fair value through profit or loss. To manage the price risk arising from investments, the Company diversifies its portfolio of assets. There are no investments held by the company which are measured at fair value either through profit and loss or fair value through other comprehensive income, hence the Company is not exposed to price risk.

Note-42 J Capital Management

For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

As at March 31, 2024, the Company is not subject to any externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for distribution as dividend or re-investment into business based on its long term financial plans. The Company's management reviews the capital structure of the Company on a periodic basis. As part of review, the management considers the cost of capital and risk associated with each class of capital. The Company also evaluates its gearing measures like Debt Equity Ratio, Debt Service Coverage Ratio, Interest Service Coverage Ratio, Debt to EBIDTA Ratio to arrive at an appropriate level of debt and accordingly evolve its capital structure.

(i) Defined Contribution Plans

The Company makes contribution towards employees' provident fund and employees' deposit linked insurance scheme for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes.

(ii) Defined benefits plans

The employees' gratuity fund scheme managed by a trust namely 'Gravita India Limited Employees Gratuity Trust' is defined benefit plan. The gratuity plan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested year of employment i.e. five years. The liability of gratuity plan is determined based on actuarial valuation as at the end of each financial year using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to build up the final obligation.

These plans typically expose the Company to actuarial risks such as investment risk, salary risk, interest rate risk and longevity risk.

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

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

Interest Risk - The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in value of the liability.

Longevity Risk - The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants will increase the plans liability.

Employee Stock appreciation rights Scheme

In terms of SEBI (Share Based Employee Benefits) Regulations, 2014, as amended from time to time ('SEBI Regulations'), the Compensation Committee of Board, inter alia, administered and monitored the Gravita Stock Appreciation Rights Scheme 2017 of the Company. The Compensation Committee, at its meeting granted 652,500 Stock Appreciation Rights ('SAR') during the previous year to the employees of the Group under Gravita Stock Appreciation rights Scheme 2017. The method of settlement of these Stock Appreciation Rights was through cash at the retirement of the respective employees. During the current year, the compensation committee of the Company has terminated the Scheme and the provision created in the previous periods amounting to Rs. 11.63 crores has been written back on account of termination of the scheme.

During the year ended March 31, 2024, 380,500 shares of face value of Rs. 2 each of the Company, held by the Gravita Employee Welfare Trust ('the Trust'), have been sold in the open market and the proceeds from the sale of such shares, net of liability payable by the Trust, will be utilised for the welfare of the employees of the Group as per the requirement of the Trust Deed. The Company has no legal right or control towards the utilization of funds as accumulated in the Trust by sale of its investment in the open market. The Trust being an independent entity has sole responsibility / obligation to utilize the fund for the welfare of beneficiaries (employees of the Group) as per the terms of the trust deed. Ind AS 32 'Financial Statements - Presentation' requires that no gain or loss shall be recognised in profit or loss on the purchases, sale, issue or cancellation of treasury shares held by the entity or by other entities of the consolidated group. Any gain or loss on such treasury shares shall be recognised directly in other equity. Since, the shares of the Company is held by the Trust which is an independent entity, the said Ind AS 32 is not applicable to the Company. Ind AS 102 'Share-based payment' requires an entity to reflect in its profit or loss and financial position, the effects of share-based payment transactions, including expenses associated with the transactions in which share options are granted to employees. During previous reporting periods, the Company had recorded the transactions as per Ind AS 102 and in the current year, the Gravita Stock Appreciation Rights Scheme, 2017 (the 'Scheme') has been terminated. Post termination of the Scheme, the Trust has no obligation to make payment under any share- based payment scheme. The Trust will act independently and make distribution/usage of fund as per the purpose defined in the trust deed. For the aforesaid reason, the management of the Company is of the view that distribution/utilisation for the employee benefits, equivalent to appreciation, net of liability of Trust, if any, received by the Trust by selling the investment in the open market amounting to Rs. 20.67 crores, will not be recognized in Company's standalone financial statements, as the transaction is not covered under Ind AS 102. The Company believes that all the appreciation on sale of such shares by the Trust pertains to the employees of the Company and will be utilised for the welfare of the employees by the Trust and there would not be any impact on the standalone financial statements. Based on the independent legal opinion and its assessment, management of the Company is of the view that accounting treatment has been done appropriately in the standalone financial statements.

Determination of volatility

Volatility is the degree to which price moves, whether it goes up or down. It is a measure of the speed and magnitude of the underlying's price changes. Historical volatility refers to the actual price changes that have been observed over a specified time. There is no research that demonstrates conclusively how long the historical period used to estimate expected longterm future volatility should be. Hence, we have considered the historical volatility of the shares of the Company on NSE commensurate with the expected life of the share option being valued.

(I) Short-term benefits includes PAT incentive/ performance incentive paid during the current year. Further, the above short term benefits doesn't include the incentive provision related to the KMP's as the same has been provided for on group level and has not been allocated to individual employees as on balance sheet date.

(II) Post-employment benefits does not include provisions for gratuity of Rs. 2.83 crores (previous year: Rs. 2.39 crores) and compensated absences of Rs. 0.11 crores (previous year: Rs. 0.08 crores) based on actuarial valuation report which are not further allocated on respective employees.

(iii) During the current year, the Company has provided corporate guarantee amounting to Rs. 327.91 crores for loan obtained by the subsidiary company, for the entire tenure of the loan. Refer note 35 for disclosure as per Section 186(4) of the Companies Act, 2013. The outstanding amount of loan as at March 31,2024 is Rs. 278.80 crores.

(iv) During the current year, the Company has invoiced an amount of Rs 19.62 crores to its subsidiary company against corporate guarantee provided for loan obtained by the subsidiary company, for the entire tenure of the loan. The entire amount has been received during the year. During the current year, out of the entire amount received, income amounting to Rs. 3.59 crores has been recognised in the statement of profit and loss and the remaining amount of Rs. 16.03 crores has been classified as deferred revenue in respect of the said corporate guarantee.

Note-47 J Compliance with Foreign Exchange Management Act, 1999

Trade receivables and trade payables as at 31 March 2024 include amounts aggregating to Rs. 145.76 crores and Rs 153.33 crores respectively, situated outside India. Out of this aforesaid trade receivables amounting to Rs. Nil are pending for more than 270 days and trade payables amounting to Rs. 6.03 crores are pending for more than 180 days. These balances are under settlement with AD Bank under the regulations of Reserve Bank of India. Based on the information available till date, the management does not expect any adverse consequences to the Company.

As per transfer pricing legislation under section 92 - 92F of the Income -tax Act, 1961, the Company is required to use certain specific methods in computing arm's length price of international transactions with associated enterprises and maintain documentation in this respect. Since law requires existence of such information and documentation to be contemporanious in nature, the Company has updated the Transfer Pricing study to ensure that the transactions with associate enterprises undertaken are at "Arms length basis” Based on the preliminary study and assessment for the current year, the management is of the view that the same would not have a material impact on these standalone financial statements.

Segment information has been provided under the material accounting policies and other explanatory information of the consolidated financial statement for the year ended March 31,2024 as per para 4 of Indian Accounting Standard (Ind AS) 108 "Operating Segments”, specified under Section 133 of the Companies Act, 2013.

In the opinion of Board of Directors, current assets have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provisions for all known/ expected liabilities have been made.

Note-52 J Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institutions or other lenders.

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

(iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(v) The Company has complied with number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

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

(vii) The Company has not traded or invested in crypto currency or virtual currency during the current and the preceding financial year.

(viii) 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:

- 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 to or on behalf of the Ultimate Beneficiaries.

(ix) The Company has 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:

- 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.

(x) The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The Company, in respect of financial year commencing on 1 April 2023, has used an accounting software for maintaining books of accounts. The Accounting software has the feature of recording audit trail (edit log) and the same has been operated throughout the year for all relevant transactions recorded in the software except that the audit trail feature was not enabled at the database level for the said accounting software to log any direct data changes. Further, the Company, has used an accounting software for maintenance of employee records which is operated by a third-party software service provider. The audit trail (edit log) was enabled and operated throughout the year at application level for such software. The Company has obtained the 'Independent Service Auditor's Assurance Report on the Description of Controls, their Design and Operating Effectiveness'('Type 2 report' issued in accordance with ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information) for the year ended 31 March 2024. However, the service auditor has not specifically covered the existence of audit trail for any direct changes at database level for such software.

The figures of previous year have been regrouped/ reclassed to make them comparative with those of current year wherever considered necessary. The impact of such reclassification/regrouping is not material to the standalone financial statements.