a. The Company is required to incure CSR expenditure of ' 141.52 lakhs (March 31, 2023'171.06 lakhs) .

b. The areas for CSR activities undertaken by the Company are health, medical aid, and education grants etc. The Company has formed its CSR

Committee as per the Companies Act, 2013 and Rules thereon.

c. The contribution for CSR activities to corpus of Ratanchand Hirachand Foundation, a Section 8 Company promoted by the promoters of the

Company for undertaking CSR activities on behalf of the Company as per CSR Policy read with schedule VII of the Companies Act 2013.

As per Section 135 of the Companies Act, 2013 (the Act) a company meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years (calculated in accordance with the provisions of section 198 of the Companies Act, 2013 ) on corporate social responsibility (CSR) activities/programs in terms of its CSR policy and schedule VII of the Act. The report on CSR activities and CSR expenditure incurred by the Company for the financial year 2023-24 is given in the Directors' Report.

d. For the Financial year 2023-24 the Company could spend ' 139.90 lakhs ( March 31, 2023'99.27 lakhs) out of the committed CSR obligations of ' 141.52 lakhs (March 31,2023'171.06 lakhs) and was unable to spend CSR expenditure of ' 1.62 lakhs ( March 31, 2023'70.65 lakhs) . Being non-ongoing CSR projects, the unspent CSR expenditure of ' 1.62 lakhs for F.Y 2023-24 will be donated/contributed to the specified Fund/s within a period of six months from the end of the financial year March 31, 2024 i.e. on or before September 30, 2024 as required under section 135(5) of the Companies Act, 2013 and Rules thereunder. The unspent CSR expenditure of ' 70.65 lakhs (after set off of excess CSR expenditure of Rs 1.14 lakhs of eariler year) for FY 2022-23 was contributed to the specified fund.

2.37 Note on Capital management and financial risk 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 Company. The Company strives to safeguard its ability to continue as a going concern so that it can maximise returns for the shareholders and benefits for other stake holders. The aim is to maintain an optimal capital structure and minimize cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted) consistent with others in the industry.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises mainly of risk such as interest rate risk and currency risk. Major financial instruments affected by market risk includes loans and borrowings.

(i) Interest rate risk

The Company is working capital intensive and is rated in “A” band category due to which it is in a position to negotiate competitive pricing for its working capital requirement from Consortium member banks and also from outside consortium banks. The Company avails funds from the banks for a committed / fixed rate of interest for a longer tenure and as such the exposure of the Company towards interest rate volatility is minimized.

With regard to Term Loans, exposure of the Company is not very significant and hence does not pose much threat towards unforeseen and unprecedented & volatile interest risk.

Sensitivity Analysis Interest Rate Sensitivity

The sensitivity analysis below have been determined based on the exposure to interest rates for both long term and short term borrowings. The following table demonstrates the sensitivity in interest rates with all other variables held constant. The sensitivity analysis has been done on the closing balance of the loans outstanding.

If the change in rates declined by similar percentage, there will be opposite impact of similar amount on profit before tax and pre-tax equity effect. (ii) Foreign currency risk

The Company has insignificant transactions in foreign currency and hence the Company is not exposed to significant foreign exchange risk. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

Sensitivity analysis

The Company's exposure in foreign currency is not material and hence the impact of any significant fluctuation in the exchange rates is not expected to have a material impact on the operating profits of the Company.

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure of the financial assets are contributed by trade receivables, unbilled work-in-progress and cash and cash equivalents.

a Credit risk on trade receivables and unbilled work-in-progress is limited as the customers of the Company mainly consist of government entities having a strong credit worthiness. For other customers, the Company normally secures recoverability of dues by means of getting Letters of Credits established on first class banks in favour of the Company if the material is sold on credit or against receipt of advances from the customers for such supplies and unbilled work-in-progress.

b Credit risk on cash and cash equivalents is limited as the Company invests in deposits with banks mainly for the purpose of offering EMDs for the tenders floated by prospective customers.

Note:

The Company makes contributions towards Provident Fund, Superannuation Fund, Employee's State Insurance Corporation (ESIC) for qualifying employees. The Company has recognised ' 750.29 lakhs (March 31, 2023 ' 690.88 lakhs) for the year being Company's contribution to Provident Fund, Superannuation Fund and ESIC, as an expense and included in Employee Benefit Expenses in the Statement of Profit and Loss.

C Through its gratuity fund the Company is exposed to a number of risks, the most significant of which are detailed below :

Interest risk

A decrease in the bond interest rate will increase the plan liability; however, in case of gratuity fund, this will be partially offset by an increase in the return on the fund's assets Longevity risk

The present value of Gratuity fund and leave plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salary risk

The present value of the Gratuity fund and leave plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

Investment risk

Funded plans being managed by insurers, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

2.42 Research and Development Expenditure

The revenue expense on research and development during the year under various heads amounts to ' 516.17 lakhs (March 31, 2023'478.58 lakhs). Assets for research and development capitalised during the year under various heads amounts to '0.19 lakhs (March 31, 2023'2.57 lakhs)

The Company does not face a significant liquidity risk with regards to it's lease liabilities as the Current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Rental expense recorded for short-term lease was ' 467.50 lakhs for the year ended March 31,2024 (March 31, 2023'421.44 lakhs )

As a Lessor

The lease portfolio of the Company consists of agreements which falls under operating lease categories. These primarily consist of lease rent payments mainly for flats and lands classified as investment properties. The Company has recognised the rental income on straight line basis over the period of lease tenure.

Rental income recorded for lease on straight line basis was ' 103.24 lakhs for the year ended March 31,2024 (March 31,2023'113.41 lakhs)

2.49 Additional regulatory information

i No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other source or kind of funds) by the Company to or in any other person or entities, including foreign entities (“Intermediaries”) with the understanding that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any parties (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

ii The Company did not have any charges or satisfaction which were yet to be registered with ROC beyond the statutory period.

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

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

v No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions

(Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

vi The Company does not have any layers as prescribed under clause (87) of section 2 of the Act read with Companies (restriction on number of layers) Rules, 2017.

vii The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

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

ix The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets during the current or previous year.