XVII. Provisions, Contingent Liabilities and
Contingent Assets

Provision:

A provision is recorded when the company has a
present legal or constructive obligation as a result
of past events, it is probable that an outflow of
resources will be required to settle the obligation and
the amount can be reasonably estimated. Provisions
will be reviewed at the end of each reporting period
and adjusted to reflect the current best estimate. If
it is no longer probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation, the provision shall be reversed. The
estimated liability for product warranties is recorded
when products are sold based on technical evaluation.
Provisions are measured at the present value of
management’s best estimate of the expenditure
required to settle the present obligation at the end of
the reporting period. Provisions are discounted when
time value of money is material. The discount rate
used to determine the present value is a pre-tax rate
that reflects current market assessments of the time
value of money and the risks specific to the liability.
The increase in the provision due to the passage of
time is recognized as interest expenses.

Contingent liabilities:

Contingent liability is recognised when it is not
probable that an outflow of economic benefits will
be required, or the amount cannot be estimated
reliably, the obligation is disclosed as a contingent
liability, unless the probability of outflow of economic
benefits is remote. Possible obligations, whose
existence will only be confirmed by the occurrence
or non-occurrence of one or more future uncertain
events not wholly within the control of the company,
are also disclosed as contingent liabilities unless the
probability of outflow of economic benefits is remote.

Onerous contracts:

Onerous contract is a contract in which the
unavoidable cost of meeting the obligations under
the contract exceed the economic benefits expected
to be received under it. Company estimates and
provides provision at the lower of the following for
onerous contracts.

• Net Cost of fulfilling the contract; or

• Compensation, penalties arising from the failure
to fulfil it i.e. Cost of terminating the contract.

Contingent assets:

Contingent assets are not recognised in financial
statements since this may result in the recognition of
income that may never be realised. A contingent asset
is disclosed when the inflow of economic benefit is
probable.

XVIII. Leases

The Company’s lease asset consists of lease for
Land and buildings. The Company assesses whether
a contract is or contains a lease, at inception of
a contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an
identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys
the right to control the use of an identified asset, the
Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic
benefits from use of the asset through the period
of the lease and

(iii) the Company has the right to direct the use of the
asset.

At the date of commencement of the lease, the
Company recognises a right-of-use asset (“ROU”)
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for
leases with a term of twelve months or less (short¬
term leases) and leases of low value assets.

The right-of-use assets are initially recognised at
cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
prior to the commencement date of the lease plus
any initial direct costs less any lease incentives. They
are subsequently measured at cost less accumulated
depreciation and impairment losses, if any. Right-of-
use assets are depreciated from the commencement
date on a straight-line basis over the shorter of the
lease term and useful life of the underlying asset.

The lease liability is initially measured at the present
value of the future lease payments. The lease
payments are discounted using the interest rate
implicit in the lease or, if not readily determinable,
using the incremental borrowing rates. The lease
liability is subsequently remeasured by increasing
the carrying amount to reflect interest on the lease
liability, reducing the carrying amount to reflect the
lease payments made.

A lease liability is re-measured upon the occurrence
of certain events such as a change in the lease term
or a change in an index or rate used to determine
lease payments. The re-measurement normally also
adjusts the leased assets.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments
have been classified as financing cash flows.

XIX. Segment Reporting

The company publishes this financial statement
along with the consolidated financial statements. In
accordance with IND AS 108, Operating segments,
the company has disclosed the segment information
in the consolidated financial statements.

XX. Dividend Distribution

Dividends paid are recognised in the period in which
the interim dividends are approved by the Board of
Directors, or in respect of the final dividend when
approved by shareholders.

-> General Reserve: This is used from time to time to transfer profits from retained earnings for appropriation
purposes.

-> Investment Revaluation Reserve : This reserve represents the cumulative gain or loss arising on
revaluation of equity instruments measured at fair value through OCI net of amounts reclassified if any to
retained earnings when those investments are disposed off.

-> Actuarial Gain/Loss Reserve : This reserve represents the cumulative gain or loss on account of
remeasurement of defined benefit plans net of amounts reclassified if any to retained earnings.

-> Capital Redemption Reserve: This is created on redemption of redeemable preference shares issued. This can
be utilised for issuing fully paid bonus shares in accordance with the provisions of Companies Act, 2013.

-> Retained Earnings: This represents the accumulated earnings net of losses if any made by the company
over the years. This reserves can be utilised for the payment of dividend and other purposes in accordance
with the provisions of the Companies Act, 2013.

Capital Management: Equity share capital and other equity are considered for the purpose of Company's
capital management. The Company manages its capital so as to safeguard its ability to continue as a
going concern and to optimise returns to shareholders. The capital structure of the Company is based on
management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain
investor, creditors and market confidence. The management and the Board of Directors monitors the return on
capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to
maintain, or if necessary adjust, its capital structure.

Note 34A. Exceptional Item

a) In December 2023, the Engineering unit at Tiruvuttiyur was affected due to Cyclone Michaung. During
the year, the company has incurred restoration expenses of Rs. 6.05 Crores (Previous Year- Rs. 8.13 Crores)
against which the comapany received insurance claim of Rs. 4.58 Crores (Previous Year-Rs. 7.50 Crores) and
asset capitalised (Net of Insurance claim of Rs. 7.48 Crores) of Rs. 0.39 Crores and the remaining amount of Rs.
1.08 Crores (Previous Year-Rs. 0.63 Crores) shown as exceptional item.

b) On account of Fuel & Power Purchase Cost Adjustment Charges pertaining to the financial year 2022-2023 &
2023-2024, levied by APERC during the month of October 24 & November 24 respectively, the company has
recognised the amount of Rs.24.40 Crores as exceptional item.

The total exceptional item recognized during the year amounts to Rs. 25.48 Crores (Rs. 0.63 Crores in previous year)

35. Income Tax Reconciliation

The major components of income tax expense for the years ended 31-03-2025

Note: For the purpose of the above details, of the status of the supplier’s under the Act has been determined,
to the extent of and based on information furnished by the respective parties and has accordingly, been relied
upon by the company and its auditors.

Note 46 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act 2013, a company, meeting the applicability thershold , needs to
spend atleast 2% of its average net profit for the immediately preceeding three financial years on Corporate
Social Responsibility(CSR) activities. A CSR committee has been formed by the company as per the Act. The
areas of CSR activities are education, health care, women empowerment and rural development. The funds
were utilised through the year on these activities which are specified in Schedule VII of the Comapnies Act,
2013 :

Note 50. Details on Statements of Current Assets submitted to the Banks:

The Company has to submit the monthly statements on stock and debtors' positions to the bankers. During
the current year, the variation between the statements submitted by the company to bank and actual balance
on quarterly basis has been disclosed hereunder.i) With respect to Raw Materials (incl. stores&spares),
the variations are Rs.1.89 crores, Rs.0.73 Crores, Rs.0.98 Crores, Rs.0.04 Crores in Q1, Q2, Q3 and Q4
respectively. ii) With respect to Work-in-Progress, the variations are Rs.-0.07 Crores, 0.45 Crores, Rs.-
0.34 Crores, Rs.-2.19 Crores in Q1, Q2, Q3 and Q4 respectively. iii) With respect to Finished Goods, the
variations are Rs.0.24 Crores, Rs.-0.21 Crores in Q2 and Q4 respectively. iv) With respect to Debtors (incl.
Creditor Advances), the variations are Rs.-3.83 Crores, Rs.-1.57 Crores, Rs.-0.93 Crores, Rs.-1.50 Crores
in Q1, Q2, Q3 and Q4 respectively. v) With respect to Creditors (incl. Debtor Advances), the variations are
Rs.0.50 Crores, Rs.0.83 Crores, Rs.2.02 Crores, Rs.0.06 Crores in Q1, Q2, Q3 and Q4 respectively.These
variations are due to the adjustments considered in the books post submission of statements to the bankers.
Note: The Negative sign denotes that the amount submitted to bank is higher than the amount as per books
of accounts.

Note 54. Financial instruments - Fair values and risk management

(as per Annexure-II enclosed)

Figures for the previous have been regrouped, wherever necessary to make them comparable.

As per our report annexed

(FOR AND ON BEHALF OF THE BOARD) ^{p p}

Dr. V.L. INDIRA DUTT V. KAVITHA DUTT _Ch°^>!r_t^l<.SH^FA^(V<:> & Ct^:C>t

Chairperson & Managing Director Joint Managing Director pCrmR!™ A^mnfmQ

DIN: 00139883 DIN: 00139274 ^{Firm Regn No}' ^003109S

K VAMSI KRISHNA

ANIS TYEBALI HYDERI Y VIJAYAKUMAR Partner

Chief Financial Officer Company Secretary ICAI Mem No: 238809

ACS: 16353