Nature and Purpose of each Reserve:

1. Research & Development Reserve:

Research and Development Reserve is created by transfer from Retained Earnings an annual contribution of 15% of Operating Profit After Tax. Research & Development Reserve is created to bring technological superiority to the products in order to cope with the future technological challenges. The amount of utilisation for Research and Development purposes during the year is transferred from Research and Development Research to General Reserve.

2. Captial Redemption Reserve:

Capital Redemption Reserve is created on redemption/buyback of equity shares.

3. Indigenization Fund Reserve:

Indigenization Fund Reserve is created by transfer from Retained Earnings an amount equal to 3% of Operating Profit After Tax which will be utilised to encourage Indigenization of items which are being sourced from foreign sources at present.

4. General Reserve:

General Reserve is created out of the profits of the Company and out of Research & Development Reserve on utilization of Research & Development purposes. This is a free reserve.

The Bruhath Bangalore Mahanagara Palike (BBMP) issued a Demand Notice dated 24^th September 2021 for a sum of '20253 lakhs for the period between 2008-09 to 2021-22 with respect to property tax (including interest, cess and penalty) for properties owned by the Company. The Company challenged the same before City Civil Court. During the pendency of the case, the matter was taken up by BBMP before the Government of Karnataka and a "One Time Settlement Scheme" was notified by Government of Karnataka on 27^th March 2023. In furtherance thereof, a revised demand notice dated 31^st March 2023 for '9159 lakhs (including property tax, cess and interest) was issued by BBMP The said demand was paid and complied by the Company as on 31^st March 2023.

I n view of the nature of business, being long term contracts there may be other commitments for purchase of material etc., which has been considered as normal business process, hence not been disclosed.

14.4 The Company's Barrackpore Division is in possession of 23.385 acres (previous year: 22.51 acres) of land on which the Division has its Buildings, Hangar, Plant and Machinery etc. The instruments of transfer in favour of Division / Company either by way of lease or transfer in respect of this land is pending execution. Provision for lease rental amounting to ' 35.50 Lakhs upto the year ended 31^st March 2024 (previous year: '35.00 Lakhs) has been made. The transfer of the land is being pursued with Defence Estate Officer, Kolkata.

The above does not includes 7.115 acres of Land received from Army in exchange of 5 acres of Land at Bangalore which was received free of cost from State Government before 31^st March 1969. Since the value of 5 acres land was nil, the value of 7.115 acres land received in exchange of 5 acres land is also taken as Nil.

The title deeds of immovable properties are not held in the name of the Division.

Land(Right-of-Use) under Property Plant and Equipment includes 200 acres land taken on lease for establishing a unit at Kasargod at a cost of ' 708 lakhs (previous year: ' 708 lakhs). This cost is amortised over the lease period of 90 years. The Lease charges for the year amounting to ' 8 Lakhs (previous year: ' 8 lakhs) has been considered under depreciation for the year. However 4.171 acres(previous year: 4.171 acres) of land shortage due to surrender of certain tracts of land against local disputes by KINFRA. Land shortage issue has been taken up with KINFRA for compensation of shortfall in the land. The Board of KINFRA also decided that the lease premium of ' 14.78 Lakhs remitted by HAL towards 4.171 acres of land will be refunded. HAL Board has accorded approval in their 472^nd Meeting held on 27.09.2023, proposal for acceptance of refund amount without interest from M/s KINFRA towards shortfall of land. Execution of amended Lease deed for 195.29 acres of land by SEF, Kasaragod is in progress.

Land under 14.3 include 12 acres of land given under lease to M/s LNB Renewable Energy Pvt Ltd., Hyderabad for 25 years, giving vendor the 'Right to Use' specific land for establishing solar PV Power Plant project only and not for any other purpose with a Purchase Agreement for a period of 25 years for purchase of electricity generated by the Solar PV Power Plant project at the fixed tariff of '3.23/KWh.

Further, 0.098 acres of free hold land located at Bowenpally, Hyderabad is included in total land held.

Land(Right-of-Use) under Property, Plant and Equipment includes land 0.273 acres taken on lease for Liason Office Mumbai at a cost of '3 lakhs (including development cost). This cost is amortised over the lease period of 30 years. The amount of amortisation has been considered under depreciation for the year. Lease rental is '2304/- payable annually.

Land under 14.3 include 39.79 acers to M/s Ordinance Factory, 0.098 acers to RCMA and 4.19 acers to M/s DAV College Trust.

14.5 a) Facilities Management Division (FMD) is holding 21 17.367 acres (previous year: 21 17.367 acres) land, out of

which free hold land of 2096.267 acres (previous year: 2096.267 acres) is located in Bangalore and 15.1 acres (previous year: 15.1 acres) located at Bagalkot, karnataka and Lease hold Land of 6 acres (previous year: 6 acres) is located at Harapanahalli, Devanagere, of which 17.737 acres (previous year: 17.737 acres) is under litigation / encroachment by third parties and 10.152 acres( previous year: 10.152 acres) is under dispute with M/s Bharat Earth Movers Limited.

b) Titles to land are not in the name of the Company in respect of 30 survey numbers totalling to 76.475 acres(previous year: 76.475 acres) at FMD division, However, Records of Tenancy Certificate is available.

c) Pending dispute settlement, an amount of '3420 lakhs (previous year: '3269 Lakhs) towards cumulative lease rental income with various parties has not been considered in the books of accounts, The applicable revised lease rental will be considered only after settlement of dispute and renewal of the lease agreements.

d) Department of Investment and Public Asset Management(DIPAM) has communicated the Institutional framework for monetization of the assets of the Central Public Sectors Enterprises, approved by Cabinet in its meeting dated 28^th February 2019.

In this regard, approval has been given by the Board in its 439^th Meeting held on 13^th November 2020 for Monetization of 1.45 acres of land at Okalipuram, Bengaluru for forwarding the proposal to Department of Defence Production(DDP) for approval / further action by DDP / DIPAM. HAL during November 2020 referred the proposal to MoD. MoD vide letter dated 8^th January 2021 communicated that the DIPAM has taken note of the asset monetization plan and indicated that HAL may take action to process the case further after taking necessary approval of competent authority as per extant guidelines. Accordingly FMD had advertised for outright sale of 1.45 acres of land through e-auction. However no bidders came forward to participate in response to the notification even after time for participation was extended twice. Thereafter a Committee was formed and as per its recommendation it was decided to monetize the full property of 2.925 acres at Okalipuram. Accordingly, the Board in its 458^th Meeting held on 29^th July 2022 approved monetization of 2.925 acres of land at Okalipuram. Accordingly, the Company advertised for outright sale of 2.925 acres for which e-auction was conducted on 12^th January 2023 and two parties submitted applications.The premium offered by H1 bidder is proposed for acceptance of the Competent Authority.

In the meanwhile, Govt. Audit raised an Audit Enquiry that the projected realizable land value is lesser than the Govt. guidance value. Accordingly, the Company engaged 3 valuers to independently undertake the valuation of 2.925 acres of land at okalipuram afresh. A Committee constituted by the Competent Authority reviewed the Valuation Reports sumbitted by the Valuers and submitted its report dated 28^th April 2023, recommending to cancel the sale of land and go for fresh asset monetization exercise by keeping the Reserve price of the land as ' 9780 lakhs. Based on approval of the Competent Authority on 04^th July 2023, the process of sale of land to the H1 Bidder has been annulled and is in process to monetize the land at a Reserve Price of ' 9780 lakhs during the year 2023-24.

e) Freehold Land of 4620.13 acres of Nasik division includes a land of 7 Acres - 13 Guntas which has been acquired by Maharashtra Government and transferred to HAL along with Durga Devi Temple and one tree. The title deeds of the land is in the name of HAL and there is no enchroachment. Further, the Land at Nasik division includes 0.0516 acres (previous year: 0.0516 Acres) of land encroached by 9 persons.

HAL Board in its 212^th Board meeting had accorded approval for leasing of land 2.47 Acres to Maharashtra State Road Transport Corporation (MSRTC) at Ojhar Nasik adjoining the National Highway to MSRTC for construction of bus stand for initial period of 30 years on a nominal rent of '1/- per annam per acre, in exchange of one acre of MSRTC land to be leased to HAL at Nasik City located at SL. No.287/A, Aurangabad Road, Nasik measuring 4050 Sq. Mtrs. (i.e.1 acre of land).

Division has obtained 7/12 extract from revenue authorities Gut No.128 which indicates that land belongs to HAL.

f) About 50.21 acres(previous year: 50.21 acres) of the land belonging to the Company's Koraput Division is encroached upon by the nearby villagers for cultivation.

g) "Land at Corporate office includes 711.22 sq.mt(Previous year 711.22 sq. mt) of land that has been acquired for the Metro Rail Project by M/s. Bangalore Metro Rail Corporation Limited (BMRCL). The compensation awarded of '549 Lakhs (rounded off)(Previous year '549 lakhs) by M/s. Karnataka Industrial Area Development Board (KIADB) was contested by Company in the City Civil Court at Bangalore. Meanwhile, a Joint Committee comprising the Company & BMRCL Officials was formed to arrive at an out of court settlement. Currently, the

case is pending at evidence stage before the City Civil Court at Bangalore . However, this is subject to final agreement of parties and order of court. On completion of the Metro Rail project, the land utilized is restricted to 272.94 sq.mt.(Previous year 272.94 sq. mt) Area to the extent of 438.28 sqm has been conveyed back to the Company through Deed of transfer. Compensation amount for remaining area, i.e 272.94 Sq. mt. is yet to be received by the Company. Company has filed memos in the pending cases requesting the Court to disburse ' 348 lakhs (rounded off) along with interest as compensation for remaining area of land (i.e. 272.94 sq.mt.). Further, Special Land Acquisition Officer (SLAO) has filed an application before Court requesting the Court to refund the entire amount with interest to it and for closing the case. Company has filed objections to the said application filed by SLAO. Company has also filed an application before the Court for disbursing ' 348 lakhs (rounded off) along with interest as compensation for remaining area of land (i.e. 272.94 sq.mt.) The matter was listed for hearing, on which date the SLAO filed the Memo stating that it is ready to pay compensation amount. Court is in process of hearing and disposing off our memos and the applications filed by SLAO and HAL." As the matter is subjudice, no adjustment has been made in the books.

14.6 Land under 14.1 includes (i) 376.76 acres (previous year: 376.76 acres) of the land acquired by State Government of Uttar Pradesh for HAL and possession was handed over to HAL by District Land Acquisition Officer. (ii) The factory area 54.30 acres was transferred during 1973 from Indian Air Force to HAL. (iii) Out of total land of 431.06 acres, 2.03 acres of land was sold to NHAI.

In the above cases, as per the legal position, all the parties are Government bodies. According to Government Grants Act, 15 of 1895, Section-2 Governments Grants are exempted from the operation of the transfer of property Act. Thus, there is no need of execution of the sale deed / transfer deed. Hence, the title deeds are not in the name of the Company.

Land under 14.3 does not include, the ownership of 27 acres (previous year: 27 acres) of land on which labour colony has been built by Labour Commissioner, Kanpur, belongs to the Company as per Revenue records. Out of the above said land, Joint Secretary, UP government vide its orders transferred 6.617 acres of land to UP State Electricity Board.

The encroachment of 41.69 acres has been identified as per Drone Survey Report, HAL has taken suitable and necessary steps towards eviction of the encroachers and Land of 25.49 acres is under litigation out of the total land of 429.03 acres.

14.7 a) Approval has given by the Board for acquiring 7.41 acres of land on lease at sattari Goa for undertaking

MRO activity during December 2017 Subsequently, as per the Board Approval in its 431^st and 434^th Meeting, tripartite lease deed was executed on the 18^th May 2023 between Goa Industrial Development Corporation (GIDC), M/s Helicopter Engines MRO Private Limited (HE MRO) and HAL MRO Division for transfer of Lease hold rights of land admeasuring 7.41 acres to HE-MRO.

b) The Company acquired during January 2021, 5 acres of defence land on lease at Akabil village, Missamari, District sonitpur for establishing MRO Hub Facilities for an annual lease rental of '1.00 per annum without any premium and registration charges, processing fees etc as per actual.

c) The Company acquired during March 2021,4.34 acres of defence land on lease at Mamun Military station for establishing MRO Hub facilities at an annual lease rental of '1.00 per annum without any premium along with necessary registration charges, processing fees etc as per actual.

Fair value of investment property

Fair value of the investment properties is '40562 lakhs as valued by a Registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

In respect of the materials received under bulk contracts with the Russian Federation where the suppliers do not indicate itemized prices, the value of materials issued is assessed on technical estimates to exhibit a fair value of the closing work-in-progress and inventory of these materials is subject to adjustment at the end of the project.

Claims Receivable(Note 19) includes ' 2154 lakhs (Previous year - '2154 Lakhs) settled under Sabka Saath Sabka Vikas scheme, is fully reimbursable by customer as per terms of pricing policy with Defence Services.

18A DIVIDEND POLICY:

As per extant memorandum F.No. PP/14(0005)/2016 dated June 20, 2016, of the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India (GOI) ("DoE") read with the memorandum F.No. 5/2/2016-Policy dated 27^th May, 2016 of the Department of Investment & Public Asset Management, Ministry of Finance, GoI, all central public sector enterprises are required to pay a minimum annual dividend of 30% of Profit After Tax (PAT) or 5% of the net-worth, whichever is higher, subject to the maximum dividend permitted under the extant legal provisions and the conditions mentioned in the aforesaid memorandum.

However, the declaration and payment of dividends on our Equity Shares will be recommended by our Board and approved by our shareholders, at their discretion, subject to the provisions of the Articles, the Companies Act, 2013. Further, the dividends, if any, will depend on a number of factors, including but not limited to our earnings, guidelines issued by the DoE, capital requirements and overall financial position of our Company. In addition, our ability to pay dividends may be impacted by a number of factors, including the results of operations, financial condition, contractual restrictions, restrictive covenants under the loan or financing arrangements the Company may enter into.

20 HAL has initiated criminal proceedings against the accused in 2011-12 and during 2012-13, two civil suits have been filed for recovery of fradulently drawn amounts against the accused, his accomplices and institutions namely, the State Bank of India (SBI) for '289 Lakhs (COM.OS.5322/2012) and Shri Krishna Souharda credit Co-operative Limited for '102 lakhs (COM.OS.8225/2012), totalling to '391 lakhs. Both the civil cases and criminal case are under progress in the court. Properties of the accused amounting to '138 lakhs have also been attached by the court. An amount of '243 lakhs has been received from SBI on 25.04.19 and the balance amount of '148 lakhs has been provided in the financials of 2018-19. The Hon'ble Court has passed the judgement and decree in favour of HAL by awarding '289 Lakhs along with

interest. Out of which to the extent of '148 Lakhs to be retained by HAL and the balance amount to be re-imbursed to SBI as per MoU entered between HAL and SBI. HAL has filed an Execution Petition on defendants for recovery of '597 lakhs along with interest. Further, the subject case has been transferred to Commercial Court, Bengaluru Rural. The issuance of sale warrant in respect of the attached property is pending in court.

21 A fraud involving misappropriation of funds by Company official in collusion with six contractors has been noticed by the management and referred to Vigilance department for further investigations. The Vigilance department based on the investigations has lodged FIR with Central Bureau of Investigation (CBI), Bhubaneshwar. An amount of '1892 lakhs has been provisionally assessed and fully provided in the financials of 2018-19 and 2020-21 as fraudulent payments made to contractors and others during the period from May 2011 to September 2018 and reported in the FIR with CBI. Adjustment of expenses relating to capital and other accounts in the financial year 2018-19 and 2020-21 includes the above mentioned amount. The matter is under investigation by CBI.

24A As per the Accounting Policy of the Company, in respect of deliverables like spares, Revenue is recognized based on acceptance by the Buyers' Inspection Agency or as agreed by the buyer.

Dispatching of the items to the customers are generally within three weeks from the date of acceptance. However, during the year ended 31.03.2024, there has been a delay in dispatching spares of ' 11134 lakhs due to Customer insistence / space constraint.

24B HAL has launched production of Light Utility Helicopter (LUH) against Letter of Intent (LoI) received from customers. Against this anticipated contract Material has been procured for ' 6690 lakhs (previous year: '18011 lakhs) has been accounted as Inventory.

24C The Company was actively pursuing with the Ministry of Defence, Government of India for the approval of amendment of LCA (IOC) contract including price variation (LCA Change Order 3). Approval for the Change Order 3 in respect of LCA (IOC) contract was accorded. The Company has recognized differential revenue of '54894 lakh during the year ended 31 March, 2024 pertaining to the supplies made in the earlier years, based on the amended contract.

The Company had recognized revenue in the earlier years based on the estimated selling price of LCA aircrafts pending approval of the amendment to the contract price and out of prudence, the Company had subsequently recognized the same as doubtful debt pending approval. Consequent to the approval of the Change Order 3, the Company has reversed the provision of '103367 lakh made in earlier years during the year ended 31 March, 2024.

25 Seasonality of business:

The Company experiences cyclicality in respect of recognition of revenue from operations, which is attributable to the delivery of a majority of our products happening in the second half of the year. The Company recognise sales upon acceptance of the product by customers and issuance of a signaling out certificate (SOC) /certificate of conformity (COC) by them. The sales are dependent on the certification process which needs to be completed before the customers can take deliveries. The certification process typically takes place in the third and fourth quarter due to favourable weather conditions for flight tests during this period. This leads to bunching up of sales during the third and fourth quarter of each financial year and consequently, the revenue varies significantly between the first and second half of the year.

26 Aircraft have been accepted and signaled out by customers' inspector with fitment of Cat-B items taken on Loan, in case of non availability of Cat-A items. As the aircraft is flight worthy and the customers have accepted the same, the sales are accounted, consistently, on the basis of Signaling Out Certificate (SOC) / Certicate of Conformity(COC). As a principle, Loan items fitted on the aircraft are excluded in value for recognising Sales. Sales in respect of such Cat-A items are recognized on supply of Cat-A items, within the contract period.

27 Balance shown under Trade Receivables, Trade Payable, Claims Receivable, Advance against Goods and Services, Capital Advances, deposits and stock / materials lying with sub-contractors / fabricators are under reconciliation. Since the Company is a Government entity under the control of Ministry of Defence (MoD), around 98% of the Company's turnover, around 89% of Trade receivables and Contract Assets, around 34% of Claims receivables and around 99% of the customer advances is with respect to Government and Government related entities. The bills are raised on the customers by the divisions located at various places and reconciliation is carried out on an ongoing basis. However, management does not expect to have any material financial impact of such pending confirmation / reconciliation.

28 In the opinion of the Board, the Company do not have any assets other than fixed assets and Non-current investments having a value on realisation in the ordinary course of business less than the amount stated.

29A Sales, based on Accounting Policy of the Company, is accounted on issuance of Signaling Out Certificate (SOC) by the customers. There is a time lag between SOC and Ferry out of Aircraft / Helicopter in view of the time involved in deputation of Ferry team by the customers, their handling flights and rectification of snags involved, if any, formation of the new squadron, training of pilots etc. The details of Aircraft /Helicopters which are yet to be ferried out (for which sales has been setup) as on the date of approval of financial statement is as under:

The expenditure involved in the work carried out post SOC date is absorbed against the provision for replacement charges.

The Company has taken up with Ministry of Defence (MoD) for amendment of ALH contract in respect of both Indian Air Force and Indian Army to bring them in line with the accounting policy of the Company. In respect of Indian Air Force, MoD have concurred ""in principle"" to above, with the stipulation that the contract amendment can be made only after similar contract amendment in respect of Indian Army contract with the Company is finalized. In respect of Indian Army contracts, the matter is under discussion.

29B The PSLV contract contains a clause that the acceptance of hardware takes in two places. The preliminary acceptance will be based on the inspection and quality reports and test carried out at the contractor's premises and will be for the purpose of movement of hardware. Final acceptance will be at the site based on the final inspection / functional checks to be carried out on receipt at site.

30A HTFE 25 Project: The Company has taken up the design and development of Hindustan Turbo Fan Engine (HTFE-25) in 2013-14 with a time frame of 6 years for completion. The Core Engine 2, Run completed and development activities of TD Full Engine run and Design Configuration review are under progress. An amount of ' 17967 Lakhs (previous year: ' 16766 Lakhs) has been accounted under Intangible Assets under Development. It is assessed that, further development activities involve development of flight worthy engine for certification on a particular platform would require at least another 4 years or so. Keeping this in view and also that there is no visibility of any progress of any commitment/ orders for the Product, the Intangible Asset review Committee has recommended for impairment of total expenditure incurred on this project. Accordingly, '17967 lakhs has been impaired upto the year ended 31^st March 2024 (upto previous year: '16766 lakhs).

30B HTT 40 Project: The Company has undertaken the design and development of Hindustan Turbo Prop Trainer Aircraft (HTT- 40).

HAL has signed a contract with MoD on 6^th March 2023 for supply of 70 HTT 40 Aircraft. As per the Contract, ' 82824 Lakhs (excluding taxes) has been sanctioned towards Design & Development of HTT 40 aircraft. Accordingly ' 5856 lakhs (previous year: ' 76968 lakhs) has been recognised as revenue. The development amount of ' 4284 lakhs (previous year: ' 58518 lakhs) has been amortised against the revenue recognised.

31A One upgraded Mirage 2000 Aircraft crashed during customer acceptance flight at HAL Airport, Bangalore on 1^st February 2019. HAL has taken an insurance policy for efforts and material used in repair / overhaul, and preferred the claim with the Insurance company for ' 3447 lakhs. An amount of ' 3181 lakhs has been adviced for payment by Insurance Company after deducting 1% policy Administration charges, the disbursement has been received on 3^rd November 2022.

31B DDP/MoD paid an advance of ' 20812 lakhs to HAL towards conducting Def Expo-2022 at Gandhinagar from 10^th -13^th Mar 2022. The event got postponed and held in the month of October 2022, HAL had incurred an expenditure of ' 23367 lakhs, pending completion of audit of expenses by the O/o PCDA Bangalore, the balance of '2555 lakhs shown under note-19 claims receivable as on 31^st March 2024.

31C Inventory were damaged due to floods caused by rains, based on an internal technical assessment committee estimated the loss of Inventory '7856 lakhs and the same has been provided in the books during the year 2022-23. Subsequently, based on the findings as part of the exercise to submit an insurance claim, the actual loss has been re-assessed as ' 6591 lakhs and same provision has been created under Replacement Charges ' 5590 lakhs and Redundancy Charges of '1001 lakhs during the year 2023-24.

31D 3 ^rd PPRC fixed FPQ prices from 2016-17 to 2022-23. 4^th PPRC for fixation of FPQ policy is due from 2023-24. Pending

finalization of approval for the FPQ fixation of prices for year 2023-24, sales have been recognized provisionally based on the indices provided by Air HQ.

31E As per Accounting Instruction, provision for redundancy is assessed on ageing at a suitable percentage / level of closing inventory. 100% redundancy provision is made for inventory items which have not moved for more than 5 years. The company makes estimates for recognizing provision for inventory. To bring uniformity in identifying the materials which have not moved more than 5 years, the date of arrival of the item to stores and subsequent issues has been reckoned for calculation of 5 years period. Due to the revision of the accounting estimates, an additional impact of ' 102497 Lakhs considered in the accounts during the year 2023-24.

33 Financial Risk Management

The Company is exposed to market risk, credit risk and liquidity risk which may impact the fair value of its financial

instruments. The Company, based on its business operation, evaluated the following risks:

a) Foreign currency risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in exchange rates. The Company's exposure to the risk of changes in exchange rates relates primarily to the Company's imports for which the payment has to be done in currencies other than the functional currency of the Company. The fluctuation in exchange rates in respect to the Indian rupee may have very restricted impact on company as any fluctuations in foreign exchange are in general reimbursed by the customers of the Company in terms of the contractual obligations which the Company has with its customers.

b) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, loans & advances, advances given to suppliers (for procurement of goods, services and capital goods), cash & cash equivalents and deposits with banks and financial institutions. The Company for the Financial Year (FY) derived 95% (Previous year: 93%) of its total sales from sales to the Indian Defence Services. The Company expects to continue to derive most of its sales from the Indian Defence Services under the contracts of the Ministry of Defence (MoD), Government of India (GoI) the Company's principal shareholder and administrative ministry.

c) Provision for expected credit losses:

As the Company's debtors are predominantly the Government of India (Indian Defence Services, Ministry of External Affairs), Central Public Sector Undertakings where the counter - parties have sufficient capacity to meet the obligations and where the risk of default is nil / negligible. Accordingly, impairment on account of expected credit losses is being assessed on a case to case basis in respect of dues outstanding for significant period of time as per the accounting policy of the Company. Further, management believes that the unimpaired amounts that are due is collectable in full, based on historical payment behaviour and extensive analysis of customer credit risk.

d) Liquidity risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Typically, the Company ensures that it has sufficient cash on demand to meet expected operational expenses including the servicing of financial obligations. The Company's standard contract terms provide that, the Company receives advance payments from customers pursuant to the applicable contracts, including the Government of India and the Indian Defence

Services at the time of signing of any contract and milestone payments on achievement of physical milestones. These payments are utilized to meet the Company's working capital needs (for the Company required to maintain a high level of working capital because the Company's activities are characterized by long product development periods and production cycles). A majority of the Company's research, design and development costs are funded by the Indian Defence services. Services and supply of spares are governed by the Fixed Price Quotation (FPQ) policy for fixation of the prices wherein the prices are fixed for the base year with escalation parameters for a pricing period of 5-7 years. The process of fixation of prices and approvals takes a minimum period of two years after the expiry of previous pricing period. In the interim, the approved prices of the previous pricing period are continued and payments are accordingly realised and on finalisation of the revised prices, the differential prices are paid to the Company. Further, certain costs not forming part of selling price are reimbursed by customer on incurrence of expenditure. The reimbursement is based on verification and issuance of audit certificate by the payees. There are delays in the above process due to unanticipated variations/ adjustments in the scope and schedule of the Company's obligations due to subsequent modifications by the customers and delays in receipt of approvals from the customer. Further, payments to the Company by the Indian Defence Services are reliant on the continuing availability of budgetary appropriations by Government of India and any disruptions to the availability of such appropriations could adversely affect the Company's cashflows.

e) Market risk:

The Ministry of Defence (MoD) and the Government of India (GoI) have continued efforts to reform defence related policies such as the Defence Acquisition Procedure 2020 (""DAP 2020"") to promote private participation, a level playing field and the domestic defence manufacturing Industry and eco-system. While the MoD has given the highest priority to Indigenously Designed, Developed and Manufactured (""IDDM"") products for capital procurement, the Company faces competition to be selected as the Indian production agency for such contracts. These policies have raised the level of market competition in the areas in which the Company operates.

f) Risk Mitigation Process:

As a step of institutionalizing the risk management in the Company, an elaborate framework has been developed and the Company's top management has overall responsibility for the establishment and oversight of the Company's risk management framework. An important purpose of the framework is to have a structured and comprehensive risk management system across the company which ensures that the risks are being properly identified and effectively managed. The Company has a risk management policy to manage & mitigate these risks. The risk management process includes risk identification, risk assessment, risk evaluation, risk mitigation and regular review and monitoring of risks.The Company's risk management policy aims to reduce volatility in financial statements while maintaining balance between providing predictability in the Company's business plan along with reasonable participation in market movement.

34 Capital Management:

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the parent. 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 requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

35B Working Capital Facilities

The total Cash Credit limits ' 400000 lakhs including '240000 lakhs of Commercial Paper(previous year: ' 400000 lakhs including '240000 lakhs of Commercial Paper) and Corporate Loan of 'NIL lakhs and Non-Fund based limits ' 205000 lakhs (previous year: ' 205000 lakhs) sanctioned by consortium of bankers. The said limits are secured by hypothecation of inventories and receivables.

37 Segment Reporting

The Ministry of Corporate Affairs vide notification no 1/2/2014-CL-V dated 23^rd February 2018 has exempted the Government companies engaged in Defence production to the extent of application of Ind AS 108 on "Operating Segment''.

38 As per Ind AS-109 relating to Accounting for Investments, amount being Dividend received from Joint Venture companies, which is recognised when right to receive Dividend is established.

39 Disclosure with regard to Joint Working Groups

The Company has entered into two Joint Working Agreements with Air India (AIJWG) to start Ramp Handling Business and with CONCOR(HALCON) to carry out Air Cargo Handling Business. The Joint Working Group pools together the resources for carrying out its business activity and ownership of the assets vests with the respective working group.

43 Provision for Gratuity and Earned Leave has been made based on Actuarial Valuation. The date of Actuarial valuation as of 31.03.2024

Employee Benefits:

The Company has adopted the Ind AS-19 on Employee Benefits. Consequently, the liability thereon is accounted on the basis of actuarial valuation, and is being recognised as short-term benefits / long term benefits.

43A Gratuity:

The Company has a Gratuity Scheme for its employees, which is a funded plan. Every year the Company funds to the Gratuity Trust to the extent of shortfall of the assets over the fund obligations, which is determined through actuarial valuation. As per the Gratuity Scheme, Gratuity is payable to an employee on the cessation of his employment after he has rendered continuous service for not less than 5 (five) years in the Company. For every completed year of service or part thereof in excess of six months, the Company shall pay Gratuity to an employee at the rate of 15 (fifteen) days' emoluments based on the emoluments last drawn with a ceiling of ' 20 (twenty) Lakhs.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the plan as furnished in the Disclosure Report provided by the Actuary:

Sensitivity Analysis:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. Sensitivity analysis indicates the influence of a reasonable change in certain significant assumptions on the outcome of the Present value of obligation(PVO) and aids in understanding the uncertainity of reported amounts. Sensitivity analysis is done by varying one parameter at a time and studying its impact. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms on the reported defined

43B(i) The exempt provident fund set up by the company is a defined benefit plan under Ind AS 19 Employee Benefits.

Provident Fund for eligible employees is managed by the Company through a trust in line with the Provident Fund and Miscellaneous Provision Act, 1952. The plan guarantees notified interest rate by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of separation from the Company or retirement, whichever is earlier. The benefits vests immediately on rendering of the services by the employee.

The minimum interest rate payable by the trust to the beneficiaries every year is notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return from the investments of the trust (including investment risk fall) and the notified interest rate.

The Company has obtained report on the determination and disclosure of interest rate Guarantee & Diminution of Asset Values as per Ind AS19 of Employees Exempt Provident Fund of HAL for the period ended 31^st March 2024.

In view of uncertainties regarding recoverability of certain investments in ILFS, Reliance Capital, Srei equipment finance, Future Enterprises etc., the liability was created. During the year ended 31^st March 2024 based on actuarial valuation additional liability has been created of '5372 lakhs (Previous year - '3928 lakhs).

Further, based on settlement made by DHFL, Sintex, Reliance Commercial Finance and Hazaribagh Ranchi Express Way Ltd., the actual loss of investment including interest of '8247 lakhs has been accounted under employee benefits during the year ended 31^st March 2023. No settlement accounted under employee benefit expenditure during the year ended 31^st March 2024.

As per the approval of Board an amount of '8089 lakhs released to various PF Trusts of HAL towards deficit arising out of investments made in DHFL and Sintex during the year 2023-24.

43C The Company has provided Performance Related Pay for the year as per the Guidelines issued by Department of Public Enterprises.

43D(i) Pension:

In line with the Guidelines issued by the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Govt. of India for revision of the Salary Structure of Executives of CPSEs with effect from 1^st January, 2007 and as per the approval accorded by the Board of Directors and Department of Defence Production, Ministry of defence, a Defined Contribution Pension Scheme was notified in the Company on 16^th July, 2014 in respect of Executives retired etc., from 1^st January, 2007.

A Defined Contribution Pension Scheme in respect of Workmen retired after 1^st January, 2012 was notified on 2^nd June, 2015 which was agreed as a part of the Workmen's Wage Revision effective from 1^st January, 2012.

Contribution to the corpus of the above schemes by the Management may vary from year to year as the same is dependent on profits generated, affordability & sustainability by the Company.

The Scheme is managed by a duly constituted Trust.

43D(ii) Ministry vide OM dated 12.07.2023 has conveyed the approval for increasing the Company's contribution to the Pension Scheme of Executives from existing 7% to 10% of Basic Pay DA w.e.f. 0.1.01.2017. Revision of Pension contribution from 7% to 10% of Basic Pay DA w.e.f 01.01.2017 has been made in respect of Executives who are on the rolls of the Company as on the date of implementation of the revised ceiling i.e. 01.01.2017. In respect of new incumbents who joined the Company post 01.01.2017, it will be effective from the date of appointment.

The additional liability accruing to the Company due to the increased ceiling, is '21736 lakh pertaining to the period from 1 January, 2017 to 31 March, 2024 ('3513 lakh for the year ended 31 March, 2024). The total additional financial impact on revision of Pension contribution has been given effect in the books of accounts during the year ended 31 March, 2024. Accordingly, employees cost for the current year is not comparable with the corresponding previous year.

43E Post Superannuation Group Health Insurance Schemes:

In line with the Guidelines issued by the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India and as per the approval accorded by the Board of Directors and Department of Defence Production, Ministry of defence, Post Superannuation Group Health Insurance Schemes in respect of (a) Employees (Officers & Workmen) retired before 1^st January, 2007 and (b) Executives retired on or after 1^st January, 2007 were introduced with effect from 1^st February, 2014.

A Post Superannuation Group Health Insurance Scheme in respect of Workmen of the Company retired, etc. after 1^st January, 2007 has been introduced in the Company with effect from 1^st February, 2015 which was agreed as a part of the Workmen's Wage Revision effective from 1^st January, 2012.

Benefits under the Schemes may vary from year to year, as contribution to the Corpus of the Schemes is dependent on Profits generated, Affordability & Sustainability by the Company.

The Schemes are managed by a duly constituted Trust.

43F HAL Employees Group Life Insurance Trust:

As per the approval accorded by the Board, the Company has notified an insurance scheme namely the HAL Employees Group Life Insurance Trust to cover its employees, in case of death due to any reason other than suicide. The contribution towards the scheme are borne equally by employees and the Management. In the event of Death of an employee due to any reason other than suicide, the dependent family members will be paid the sum assured (' 10 lakhs). The Company has made contribution of ' 135 lakhs to the trust with employees contributing an equal amount during the year 2023-24.

43G Revision of pay scales of executives and workmen, with effect from 01.01.2017 was implemented in accordance with the guidelines issued by Department of Public Enterprises vide OM dated 03.08.2017 for Executives and in accordance with the Wage Agreement entered into between Management and Employees Union representative in 2019-20 in respect of Workmen.

On an interpretation on pay refixation and pursuant to the directives of the Administrative Ministry, the pay fixation to be revised and the excess amount paid is to be recovered from the employees.

This has resulted in reduction of salaries and wages by '5573 lakhs(previous year: '5155 lakhs) for the year ended 31^st March 2024.

While so, the Employees Union and Officers Association have filed Writ Petition with Hon'ble High Court of Karnataka to stay recovery of excess amount of salary paid by the Company. The Honorable High Court has granted interim stay on recoveries, pending disposal of the writ petitions by the High court, the excess amount is shown under claims receivable(Gross) and provision of '35218 lakhs (previous year: '29645 lakhs) has been made in the books of accounts. The amount withheld from employees who retired after 30^th June 2021 is kept under other liabilities '4445 lakhs (previous year: '3026 lakhs).

Based on the final order that may be passed, suitable effect will be carried out in the accounts.

43H Financial Assitance Scheme for Dependents of Deceased Employee

As per the approval accorded by the Board, the Company has notified "Financial Assistance Scheme for dependents of Deceased Employees (FASDDE)" to pay a fixed amount on monthly basis to surviving spouse or dependent children if the spouse is not surviving, till the notional date of superannuation of the deceased employee. The prime objective of the scheme is to provide financial support for dependent beneficiaries of the employees who die while in service, to enable them to lead a normal life. The scheme will be applicable in all cases of Death of an employee due to any other reason other than suicide. Fund of '4000 lakhs during 2021-22 & 1500 lakhs during 2022-23 transferred to trust for management of the Corpus. The income generated from the Corpus which will be invested with M/s LIC will be utilized to make payments under the Scheme.

During the year '56 lakhs (previous year: '378 lakhs) has been incurred as expenditure under Financial Assistance Scheme for Dependents of Deceased Employee which is included in Note 40 - Staff Welfare expenditure.

(b) As and when the instalments in respect of deferred debts falls due for payment to the Russian Federation, the same is paid by applying the exchange rate ruling on the date of actual payment and liability discharged. The differences arising due to recalculation of debts at the applicable /ruling rate is charged to the revenue at the time of payment and recognised as sales when realised from the customer except to the extent it pertains to Capital Assets.The sales for Exchange Rate Variation (ERV) considered is '4873 Lakhs(Previous year - ' 5118 Lakhs). The Assets and Liabilities relating to deferred credit transaction are reinstated under Non-current Other Financial Assets, Current Other Financial Assets (recoverable within one year), Non-current Other Financial Liabilities and Current Other Financial Liabilities (to be settled within one year).

45B The Board in its 406^th meeting held on 22^nd September 2017, accorded in principle approval for voluntary winding up / closure of the three Joint Ventures i.e. M/s. HAL-Edgewood Technologies Private Limited, M/s. Tata HAL Technologies Ltd and M/s. Multirole Transport Aircraft Ltd. enabling the Company to take further action in the matter.

Further, the Board authorized the Company to seek approval of Ministry of Defence (MoD), for short closure of the Contracts associated with the M/s Multirole Transport Aircraft (MTA) project and requested MoD, to initiate necessary action for closure of IGA, as it is a prerequisite for winding up of the MTA - Joint Venture Company. Further, MOD vide its letter dated 14^th October 2021 notified the termination of the agreement between the Govt. of the Republic of India and Govt. of Russian Federation. In this respect the Russian Federation vide its letter dated 20^th April 2022 intimated that the decision of the Indian side has been taken into consideration.

Further in 435^th meeting held on 16^th March 2020, the Board has directed the Company to expedite the closure of M/s. Multirole Transport Aircraft Ltd at the earliest after taking clearance from Russian partners from their Board(refer Clause No.10).

The Board in its 440^th meeting held on 9^th December 2020, accorded in principle approval for voluntary winding up / closure of Joint Venture M/s. Infotech HAL Limited(IHL) enabling the Company to take further action in the matter.

TATA HAL Techonology Ltd., Pursuant to the Board Resolution dated 08^th June 2021, the company has filed the application for voluntary liquidation to MCA in terms of Section 59 of the Insolvency and Bankruptcy Code, 2016 and the official liquidator is appointed. The official liquidator, vide their letter dated 07.03.2022, intimated about

the distribution of liquidation proceeds to the stakeholders of the TATA HAL Technologies Limited. Pursuant to the same liquidation proceeds of '34 lakhs was received by the Company during 2022-23.

The Company has derecognized the investment made in TATA HAL Technologiy Limited as on 30^th June 2022.

45B(i) The Company had signed an agreement with Safran Helicopter Engines SAS for setting up a joint venture to carry out business of design, development, certification, production, sale and support of helicopter engines. Pursuant to the same a Joint Venture Company with Safran Helicopter Engines SAS by name SAFHAL Helicopter Engines Private Limited has been incorporated on 09 November 2023. Each JV partner has subscribed for 1000000 equity shares of '10 each amounting to '100 lakhs.

45C Defence Innovation Organisation ("DIO"):

A Section 8 Company has been formed (Under Companies Act 2013) in the name of ""Defence Innovation Organisation"" with M/s BEL with an authorised Capital of ' 100 lakhs (Paid up capital as on 31^st March 2024 is ' 1 Lakh( HAL 50% Share and BEL 50% Share). The registered office of DIO is situated at Centre for Learning and Development, Bharat Electronics Limited, Jalahalli, Bengaluru - 560013, Karnataka, India. DIO was incorporated to implement the scheme of defence innovation fund initiative by creation of an ecosystem to foster innovation and technology development in defence.

HAL Board in its 417^th meeting held on 30^th July 2018 had accorded approval for release of ' 5000 lakhs to DIO towards initial corpus fund in form of Grant in Aid in a staggered manner. Accordingly ' 500 lakhs has been released to DIO in the month of August 2018 and the balance amount is recognised and disclosed in other finanial liabilities - other liabilities (note 32).

45D The Board in its 434^th meeting was informed that Government approval is not required for transfer of lease hold land to M/S Helicopter Engines MRO Private Limited (HE-MRO), as it is neither defence land nor it is a land owned by HAL. Board reconsidered the decision taken in its 431^st meeting and approved transfer of land without Government approval to M/s HE-MRO.

In line with the Board Approval in its 431 and 434 meetings, Tripartite Deed of Lease was executed on the 18^th May 2023 between Goa Industrial Development Corporation (GIDC), M/s Helicopter Engines MRO Private Limited (HE MRO) and HAL MRO Division for transfer of Lease hold rights of industrial plot admeasuring 7.41 acres to HE MRO.

Further, the Sale of Deed was executed between HAL-MRO Division and HE -MRO on 8^th June 2023 for sale of Building and Plant & Machinery and Other Assets for a total consideration of '1029 lakhs.

Accordingly necessary accounting treatment has been made in the Books of Accounts.

45E The Company paid '950 lakhs towards subscription of 950000 equity shares of the face value of '100 each to its Joint Venture Company, Helicopter Engines MRO Private Limited, on 8 January, 2024 towards equity participation in Rights issue of the Joint Venture Company. Pursuant to the same, the investment of the Company in the Joint Venture has increased from '1510 lakh to '2460 lakh during the FY 2023-24.

47A The Shareholders of the Company, at the 60^th Annual General Meeting held on 31 August 2023, had approved the sub-division of one equity share of the face value of '10 each into two equity shares of face value '5 each. The record date for the said sub-division was 29^th September 2023.

The basic and diluted EPS and the number of shares for the previous year have been restated considering the face value of '5 each in accordance with Ind AS 33- "Earnings per Share" on account of the above mentioned subdivision of equity shares.

48A Buyback of Shares:

In accordance with the approval of Board of Directors at its 408^th meeting held on 28^th November, 2017 and approval of shareholders, the Company has bought back 2,71,12,500 fully paid equity shares of '10/- each equivalent to 7.5% of the paid-up share capital and Free Reserves of the Company, for an aggregate amount of ' 92150 lakhs (excluding tax of '20636 lakhs) at ' 339.88 per equity share from the President of India. The consideration amount for buy back of shares was paid to the Government of India on 19^th December, 2017 and the shares so bought back were extinguished on 22^nd December, 2017.

48B To achieve the mandatory threshold of 25% minimum public shareholding in the Company, Government of India (GoI) had offered 3.5% (1,17,03,563) equity shares of the Company to non-Retail Investors and Retail Investors on March 23-24, 2023, out of its shareholding of 75.15% in the Company, through Offer for Sale (OFS) by Stock Exchange Mechanism. Consequent to the OFS, the Government of India shareholding stands at 71.65%.

Apart from above, as part of the OFS, GoI had also allotted 37,632 equity shares to the eligible employees of the Company during April, 2023 under Employee OFS. Consequent to the Employee OFS, the GoI shareholding stands at 71.64%.

51 Sensitivity of estimates on provisions:

The assumptions made for provisions relating to current period are consistent with those in the earlier years. The assumptions and estimates used for recognition of such provisions are qualitative in nature and their likelihood could alter in next financial year. It is impracticable for the Company to compute the possible effect of assumptions and estimates made in recognizing these provisions.

Provision for replacement and other charges represents, amounts towards expenditure incurred from the date of Signaling Out Certificate (SOC) to date of ferry out, loan items taken from the customer which needs to be replaced etc.

Warranty represents Performance Warranty for manufacture, repair and overhaul of Aircraft / Helicopters/ Engines / Rotables, supply of spares and development activities etc.

Provision for Redundancy in Raw Material and Components, Stores and Spares, Construction Material, Loose Tools and Work in progress represents provision on redundancy of such materials, completed / specific projects and other surplus / redundant materials pending transfer to salvage stores etc.

Provision for Liquidated Damages represents amounts provided for the period of delay between the due date of supply of the Goods / rendering of services as per delivery schedule and the expected Date of delivery of said Goods / rendering of service in respect of manufacture / repair and overhaul of Aircraft / Helicopters/ Engines / Rotables, supply of spares and development activities etc.

Provision for doubtful debts and doubtful contract assets is being assessed on a case to case basis in respect of dues outstanding for a significant period of time. Debts from the Government departments are generally treated as fully recoverable and hence the Company does not recognize credit risk of such financial assets.

Provision for doubtful claims represents provision on expected credit losses.

Impairment in value of investment represents reduction in the share of net worth below investment.

Provision for Onerous contract has been recognised as the cost of meeting obligations is over and above the economic benefits expected to be received under it.

i. Current Assets = Intentories (Note-13) Investments (Note-14) Trade receivables (Note-15) Contract Assets (Note-15A) Cash and Cash Equivalents (Note-16) Bank Balances other than Cash and Cash Equivalents (Note-17) Loans (Note-18) Other Financial Assets (Note 19) Current tax Assets (net) (Note-20) Other Current Assets (Note-21)

ii. Current Liabilities = Borrowings (Note-30) Lease liability (Note30A) Trade Payables (Note-31) Other Financial liabilities (Note-32) Other current liabilities (Note-33) Provisions (Note-34) Current Tax Liabilities (Net) (Note-35)

iii. Total Debt = Non-current borrowing (Note-24) Current borrowing working capital loan - Cash Credit (Note-30) Current borrowing from Banks - Commercial paper (Note-30)

iv. Shareholder's Equity = Equity Share Capital (Note-22) Other Equity (Note-23)

v. Earnings available for debt service = Profit after Tax Depreciation and amortisation (Note-42) Finance Cost (Note-41) Loss on sale of assets

55H Utilisation of borrowed funds and share Premium through intermediaries or for benefit of third party beneficiaries:

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, its subsidiary, associate to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company , its subsidiary, associate, (Ultimate Beneficiaries).

The Company have not received any fund from any party(s) (Funding Party) with the understanding that the Company , its subsidiary, associate, shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company , its subsidiary, associate ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

55I Undisclosed Income

No transaction that has been not recorded in the books of accounts which are 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), unless there is immunity for disclosure under any scheme and previously unrecorded income and related assets that have been properly recorded in the books of accounts during the year.

Note 49 - Explanatory Notes to the Standalone Financial Statements Clause No. Particulars

31^st March 2023

(a) Amount of expenditure incurred during the year on CSR activities

* The Company has spent an amount of '892 lakhs during 2023-24 (Previous year '825 lakhs) against the surplus generated of '892 lakhs (Previous year '825 lakhs) in financial year 2022-23 through savings in energy charges from the Wind Power Plant and football stadium as a CSR project. The details of Expenditure spent during the year is given below:

In the year 2023-24, an amount of ' 873 lakhs surplus, was generated through savings in energy charges from the Wind Power Plant & football academy. The surplus will be utilised for other CSR projects/ activities during 2024-25 over and above the 2% budget allocation as per the Companies Act, 2013.

Annual Report 2023-2411, 26

55L Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

56 The financial statements were approved for issue by the Board of Directors at their meeting held on 16^th May 2024.

These financial statements are presented in Indian rupees (rounded off to lakhs). Previous Year figures have been rearranged or regrouped wherever necessary.