The above sum includes ' 170.14 Cr. eligible subsidy realisble on stock of Urea, NPK and city compost remaining unsold with dealers as at the Year end.

Trade receivables are neither due from directors or other officers of the Company either severally or jointly with any other person, nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.

Rights, preferences and restriction relating to each class of share capital:

Equity shares: The Company has one class of equity shares having a face value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting, except in the case of interim dividend.

In the event of liquidation of the Company, the shareholders will be eligible to receive remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

Preference shares: The Company has a class of preference shares having face value of Rs.10 per share with such rights, privileges and conditions respectively attached thereto as may be from time to time confirmed by the regulations of the company.No such preference shares are issued and outstanding as of March 31, 2024 (2023: Nil)

GOI loans are obtained for revamp which is specifically to be used for the revamp of plant used to manufacture fertilizers, plan loan which is used for capital expenditure and non plan loans for the working capital needs of the Company. These are unsecured in nature. The loan carries a fixed rate of interest as below:

-Revamp loan - 7%

-Plan loan - I Tranch @ 7%, II Tranch @ 12.50% and III Tranch @ 11.50%

-Non plan loan - I Tranch @ 7% and II Tranch @ 15.50%

The said loans were availed in the period 2003 to 2012 and are repayable in 10 equal annual instalments which begin after a moratorium period of 2 years. The current portion of GoI loans due within one year have been disclosed under Note 13.1.b

Note :The procedure for release of subsidy has been revised with the introduction of Direct Benefit Transfer (DBT) Scheme in a phased manner for all fertilizers. The revised procedure entails 100% payment of subsidy under DBT scheme on the basis of actual sale by the retailers to the beneficiaries on weekly basis through POS machines.

Pursuant to above procedure, pending sale of Urea totalling 36086.01 MT through POS machine to beneficiaries as on March 31,2024, subsidy of ' 169.41 Cr which has accrued on sale to dealers but shall become due for payment under DBT upon sale through POS machines has been recognized in the current period (CPLY quantities 31195.53 MT and subsidy ' 179.97 Cr).

2. Tamil Nadu Pollution Control Board (TNPCB) has issued a Show cause Notice for non-compliance of emission norms by levying an environmental compensation of '0.37 Cr. u/s 5 of the Environment (Protection) Act, 1986. The Company has represented the matter before the appropriate authority. Decision of the TNPCB is yet to be received.

3. Disclosure of Contingent Asset

The Company filed a recovery suit against M/s Hastalloy India Ltd, having business transactions of supply of Uranus Rods amounting to '0.08 Cr together with interest of '0.04 Cr before Hon'ble Court of Principal District Judge at Tiruvallur

in 2007, the Court ordered the decree in favour of the company for an amount of '0.12 Cr, as claimed in the suit and to reimburse the cost of suit of '0.01 Cr along with the interest @ 18% from the date of decree to till date of realization. Subsequently for transfer of decree necessary executive petition papers were filed in the District Court, Tiruvallur. Since the jurisdiction of supplier lies in Visakhapatnam, the Company initiated to transfer the executive petition for the recovery. due to non-availability of virtual certainty of inflow to the company, it is disclosed as contingent asset.

B. The company has de-recognized the CISF Quarters from Property Plant & Equipment and charged off the same in the statement of Profit & Loss amounting to Rs.0.99 Crores, consequent upon the impairment of the said asset as identified by independent surveyor appointed by the company in his report.

6. The Company has opted to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as promulgated by the GOI vide the Taxation Laws (amendment) Ordinance, 2019 and has taken 25.17% (Income tax 22% Surcharge 10% Health & Higher education Cess 4%) rate of corporate tax in its accounts from the said year. Accordingly, the company has considered the said rate for the tax expenses for the year and has measured its deferred tax assets/ liabilities on the basis of the above option.

Status of Income Tax Refund Due and the adjustments thereof:

a. During the year, the Income Tax Department has adjusted a sum of Rs.1.05 Cr being the demand for the AY 2014-15 against the refund of Rs.4.82 Cr due to the company for the AY 2023-24. The company received a balance refund of Rs.3.77 Cr during the year.

b. The Income Tax refund due to the company, amounting to '2.60 Cr, is included in 'other Financial Assets (NonCurrent)'

deferred tax assets and liabilities have been offset wherever the company has a legally enforceable right to setoff current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the year in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future

taxable income and tax planning strategies in making the assessment.

Based on the level of historical taxable income and projections for future taxable income over the years in which the deferred income tax assets are deductible, management believes that the company will realize the benefits of those deductible differences. The amount of deferred income tax assets considered realizable could be reduced in the near term if estimates of future taxable income during the carry forward periods are reduced.

7. In the opinion of the Management, the sum of ' 173.93 Cr being the Input Tax Credit (ITC) included under other current assets is available for set-off against GST output liability arising out of sale of products (excluding subsidy) in the future years.

The company was holding a provision of ' 48.33 Cr as on 01.04.2023 as a prudence measure to meet any contingencies of any additional liability towards GST on completion of the reconciliation of figures of ITC as per the book Vs Electronic Credit Ledger. During the current financial year reconciliation has been undertaken and completed in respect of FY 202021, 2021-22, 2022-23 & 2023-24. on completion of the said reconciliation the company has identified ' 5.89 Cr as ITC not eligible for setoff and accordingly charged off in the statement of Profit & Loss under Rates & Taxes. Consequent upon the charging of the said amount, the company has written back '5.89 Cr from out of the provision held of Rs 48.33 Cr being the provision considered no longer required.

From the provision of Rs 48.33 Cr held in the books as on 01-04-2023, a sum of Rs 4.88 Cr has been written back in the statement of Profit & Loss since in the opinion of the management only a sum of Rs 37.57 Cr is required to be retained as provision for the probable omission / errors which might come to light on the completion of the reconciliation of the figures of Input Tax Credit between books of accounts and electronic Credit Ledger for the FY 2017-18, 2018-19 & 2019-20.

On completion of the reconciliation of ITC as reflected in

the books of accounts and with relevant statutory records under GST regulations for the FYs 2020-21, 2021-22 and 2022-23, the Company has identified ' 13.78 Cr being the loss arising out of ineligibility to claim the ITC due to noncompliance with the GST regulation on the part of the certain vendors / contractors. In the opinion of the Management the said sum of ' 13.78 Cr is recoverable from the said vendors / contactors since, the parties are mostly regular vendors/ suppliers of the Company and accordingly the said sum is considered as claims recoverable and grouped under other Current Assets. The management is in the process of taking efforts to recover the said sum and pending the outcome of the measures taken for recovery, no provision has been considered necessary in the accounts for the said sum by the management.

8. The reconciliation of Input Tax Credit figures between the books and the electronic credit ledger for the FY 2018-19 & 2019-20 are pending as on the date of balance sheet. Further, the reconciliation of the ITC figures between the books and the electronic credit ledger for the FY 2017-18 had not been taken up for reconciliation by the company.

9. entry tax of ' 2.52 Cr provided for payment during the years 2013-14 to 2017-18, has not been remitted, since the appeal filed by ITC Ltd. against the Tamil Nadu Government in this regard, has not been disposed off. The said amount is retained as provision in the books of accounts by the Company for payment, when demanded.

d. Disclosure under Ind AS 24 or related party transaction are given below

Since Government of India owns 59.50% of the Company's equity share capital (under the administrative control of DoF, Ministry of Chemicals and Fertilizers), the disclosures relating to transactions with the Government and other Government controlled entities have been reported in accordance with para 26 of Ind As 24.

The details of the contractual maturities of lease liabilities as at March 31, 2024 & 2023 on an undiscounted basis are as follows:

The Company also has certain leases with lease terms of 12 months or less and leases with low value. The Company applies the 'short-term lease' and 'lease of low-value assets' recognition exemptions for these leases.

Rental expenses recorded for short- term leases were '0.18Cr for the year ended March 31, 2024 (PY ' 0.16Cr).

12. Amount shown under finance cost charged to the statement of Profit & Loss includes Rs 0.83 Cr being the notional value of unwinding of interest cost pertaining to earlier years arising out of restatement of rental deposit at discounted value as required under Ind AS.

13. Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) have allotted 43.13 acres of land for a lease period of 33 years at Kodungaiyur for TTP Plant in the year 1989 which got expired in May 2022.

Further, the Board of Directors of the company in its 315thmeeting dated 3rd February 2021 approved for further extension of lease for another 33 years. The Negotiation is going on and is yet to be finalized. The CMWSSB has granted permission for the use of land on adhoc basis pending for the finalization of lease terms.

Meanwhile, the company has been served with a notice from Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) wherein demand for Rs.27.31 Cr (Excluding GST) towards increase in the rent from october'23 to March'24. The company has made representation for waiver of the said demand. The company has effected a payment of Rs 0.67 Cr which has been charges in the statement of Profit & Loss. Pending the outcome of the result of representation, the demand of Rs 26.64 Cr (Net off) has been considered in the statement of Contingent Liabilities.

14. Disclosure on Investment Property:

a. The Management classifies the asset which are held for rental incomes or surplus assets for capital appreciation under investment property.

15. The Company has 70 acres of surplus land at Manali, which has been approved by the shareholders through special resolution during the FY 2019-20. Initially, CPCL has shown its interest to purchase the entire 70 acres of land. Later on, CPCL has conveyed its willingness to purchase 4.98 acres of land only. Accordingly, the company has classified the 4.98 acres of Manali land under “Assets held for Sale” amounting to '18,484/-(valued at cost price), whose fair value as on the March 31,2024 is ' 65.08 Cr.

For the remaining 65.02 acres of surplus land, the company has made communication to all the PSUs and Government of Tamil Nadu, the availability of land for sale. The company decided to classify the 65.02 acres of land under “Investment Property” due to lack of marketability of the land and the same was informed to DIPAM for further action.

Further, during the 310th Board Meeting, the Board of Directors approved for sale of Guindy property having an area of 19 grounds & 1064 sq.ft, subject to approval of Dept. of Fertilizers, Govt. of India and Shareholders. Pending approval from the shareholders, the same is retained under “Investment Property”. During the year, the Board has approved appointment of NBCC (India) limited as a land management agency for said property for which MoU is yet to be entered.

16. Employee Benefit Expenses Defined Benefit Plans:

The Company has floated the following defined benefit plans i) Gratuity, ii) Post-retirement medical benefits, iii) Compensated absences, iv) Service awards and v) Contribution to Provident Fund trust.

Funding:

Gratuity is the only defined benefit plan that is funded by the Company. The funding requirements are based on the fund's actuarial measurement framework set out in the funding policies of the plan. The funding of the plan is based on a separate actuarial valuation for funding purpose.

The Company has determined that in accordance with the terms and conditions of the defined benefit plan, and in accordance with statutory requirements, the present value of refunds or reductions in future contributions is not lower

than the balance of the total fair value of the plan asset less the total present value of obligations.

Movement in net defined benefit (Asset) / Liabilities

Gratuity

The cost of providing such defined benefit is determined using the projected unit credit method of actuarial valuation made at the end of the year and is administered through a fund maintained by Life Insurance Corporation of India. This defined benefit plan exposes the Company to actuarial risks, such as longevity risk, interest rate risk and market (investment) risk.

Every employee who has rendered continuous service of five years or more is entitled to gratuity at 15 days salary (15/26 * last drawn basic salary plus dearness allowance) for each completed year of service subject to a ceiling of ' 0.20 Cr on superannuation, resignation, termination excepting in the case of death or disablement for which the condition of continuous service does not apply. The Company has carried out actuarial valuation of gratuity benefit considering the enhanced ceiling.

Other Benefits

Obligations on post - retirement medical benefits, compensated absences and service awards are provided using the projected unit credit method of actuarial valuation made at the end of the year. These are unfunded plans.

The estimates of salary escalations considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Further, the expected return on plan assets is determined considering several applicable factors mainly the composition of plan assets held, assessed risk of asset management and historical returns from plan assets.

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 10 years (31 March 2024: 10 years)

Obligations on post-retirement medical benefits, compensated absences and service awards are provided using the projected unit credit method of actuarial valuation made at the end of the year.

Provident Fund and Superannuation Fund:

The amount expended in respect of employer's contribution to the provident fund and superannuation fund during the year, are ' 5.62 Cr (Previous year ' 5.85 Cr) and ' 6.18 Cr (Previous year ' 7.09 Cr) respectively.

17. Financial Instruments - Fair Value Disclosures

Some of the Company's financial assets and financial liabilities are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation techniques and inputs used):

Unquoted Equity shares

The fair value of the unquoted equity shares has been estimated at Net Book Value model based on the latest available audited consolidated financial statements of M/s Indian Potash Limited and Standalone Financial Statements of M/s Fortune Biotech Limited (FBL) for the year ended 31st March 2023.

Fair value of financial assets and financial liabilities that are equivalent to it carrying amount which are subsequently measured at amortized cost:

The Management assesse that trade receivables, cash and cash equivalents, trade payables, borrowings and other financial assets and liabilities, fair values approximate their carrying amounts largely due to the short-term maturities of these instruments.

i. Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

18. Capital Management:

For the purpose of the Company's Capital management, capital includes equity capital and all other reserves. The Company's capital management objective is to maximize the total shareholder return by optimizing cost of capital through flexible capital structure that supports growth.

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

19. Financial Risk Management

In course of its business, the Company is exposed to certain financial risks that could have significant influence on the Company's business and operational / financial performance. These include market risk (including currency risk, interest rate risk and equity risk), credit risk and liquidity risk.

The Board of Directors reviews and approves risk management framework and policies for managing these risks and monitors suitable mitigating actions taken by the management to minimize potential adverse effects and achieve greater predictability to earnings.

Borrowings, trade payables and other financial liabilities constitute the Company's primary financial liabilities and investment in unquoted equity shares, trade receivables, loans, cash and cash equivalents and other financial assets are the financial assets.

a. Credit Risk Trade receivables

Credit risk refers to the risk of default on the receivables to the Company that may result in financial loss. The maximum exposure from trade receivables is amounting to ' 321.32 Cr as of March 31, 2024 (' 503.61 Cr as of March 31, 2023).

Trade receivables mainly constitute subsidy receivable from Government of India and from sale of manufactured and traded fertilizers to dealers. As far as Government portion of receivables is concerned, risk of default is nil or insignificant, subject to approval of subsidy rate by Government of India. In the case of dealers, credit risk is being managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to allow credit terms in the normal course of business. In the case of the Company, the credit period offered varies between 30 to 60 days. There have been few cases of impairment historically for which the Company has made requisite provisions.

Investment in unquoted equity shares

The Company has investments in unquoted equity shares of Indian Potash Limited and Fortune Bio-Tech Limited. The Company does not expect any losses from non-performance by the investee companies and hence no impairment is recognized in the Statement of Profit and Loss.

Loans and Advances

The company provides loans / advances to its employees on concessional or interest free basis. The company manages its credit risk in respect of such loans to employees through recovery of the same in a number of predetermined installments.

Cash and cash equivalents, deposits with banks and other financial Assets

The credit risk on cash and bank balances is limited because the counterparties are banks with high credit ratings. Therefore, the risk of default is considered to be insignificant.

In case of other financial Assets, there are certain credit impaired cases mainly due to breach of contract arising due to default, or bankruptcy proceedings.

Provision for expected credit losses

Financial assets for which loss allowance is measured using life time expected credit losses

The Company's customer base is the Government of India and a number of dealers. Historically the risk of default is very low. Further, management believes that the unimpaired amounts that are past due by more than 60 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk.

b. Liquidity risk

The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk through cash credit limits and undrawn borrowing facilities by continuously monitoring forecast and actual cash flows. The Company invests its surplus funds in bank fixed deposit which carry minimal mark to market risks.

c. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk for the entity comprises three types of risk: currency risk, interest rate risk and equity risk.

Financial instruments affected by market risk include borrowings, trade payables in foreign currency and investment in unquoted equity shares. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

d. Currency risk

The Company executes import agreements for the purchase of raw materials, stores & spares and Property Plant & Equipment. These are not hedged by the Company owing to the materiality of such foreign exchange gain / loss values.

Sensitivity analysis

A strengthening / weakening of the Indian Rupee, as indicated below, against the foreign currency as at 31 March would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis is based on

foreign currency exchange rate variances that the Company considered to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for previous year, except that the reasonably possible foreign exchange rate variances were different, as indicated below.

e. Interest rate risk

The Company is not exposed to any interest rate risk as the interest rate on the sole borrowing from GOI is fixed in nature.

Fair value sensitivity analysis for fixed-rate instruments

The company's fixed rate instruments are carried at amortized cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

f. Equity price risk

Equity price risk is related to the change in market reference price of the investments in quoted equity securities. In the case of the Company, the sole investment in equity shares is unquoted and therefore, the Company is not exposed to equity price risks. However there can be changes in fair value of equity investments based on valuations done at different reporting periods owing to the operations and general business environment in which the investee operates. In general, the investment is not held for trading purposes.

Equity price sensitivity analysis

A 5% change in the fair value of equity instruments held as at March 31, 2024 and March 31, 2023 would result in an increase/ decrease of '22.74 Cr and '16.85 Cr in fair value of the equity instrument respectively.

20. Revenue from Contract with Customers:

a. The Company generates revenue primarily from manufacturing and trading of Fertilizers. The Company has recognized revenue by satisfying its performance obligations at a point of time basis.

As per the GO D(FA)/CCEA/2011 dated 12/10/2012 issued by the DoF the company has to collect Rs 50/MT on sale of products to dealers which have to be utilized for the purpose of Purchase / Maintenance of PoS machine and other promotional activities. During the current Financial Year company has collected Rs 2.14 Cr in accordance with the above Go. The said sum is not included under revenue from sale of products

Contract Liabilities in the Balance Sheet constitutes advance payments and billings in excess of revenue recognized. The Company expects to recognize such revenue in the next financial year. There were no significant changes in contract liabilities during the reporting period except amount as mentioned in the table and explanation given above. Under the payment terms generally applicable to the Company's revenue generating activities, prepayments are received only to a limited extent. Typically, payment is due upon or after completion of delivery of the goods.

21. Subsidy under New Pricing Scheme (NPS) for Urea

Subsidy on Urea Sales for FY 2023-24 has been recognized at ' 1937.70 Cr in accordance with the policy parameters prescribed by Fertilizer Industry Coordination Committee(FICC) for escalation claim whereas subsidy for escalation claims provisionally approved by FICC amounts to ' 1935.59 Cr, the difference being an amount of '2.11 crores. The effect for the difference in the subsidy accounted will be considered as and when the final notification is received

based on the escalation / de-escalation of claims for FY 2023-24 to be submitted by the Company.

22. The company has made a request to Dept. of fertilizers, for granting additional subsidy of ' 64.97 Cr in order to compensate the higher cost of production of “N” due to usage of Naphtha as captive ammonia in production of complex fertilizers under Nutrient Based Subsidy (NBS) for the extended period from FY 2012-13 to till the conversion of feedstock to RLNG i.e. July,2019. The Additional Compensation will be considered as income, only when final order is received by the company from the Dept. of Fertilizers, Government of India.

23. Disclosure as per Ind AS 108 ‘Operating segments’ Basis for segmentation

I n the case of the Company, Chairman & Managing Director(CMD) is considered to be the Chief Operating Decision Maker (CODM). The CMD reviews the performance of the Company and allocate resources based on the various management information reports provided by the respective departments of the Company.

The CoDM reviews the performance of the Company

primarily as two segments:

b. Other activities (Trading activities and Bio fertilizers);

However, since the revenue from other activities constitutes less than 5% of the reported revenue and no significant assets are employed for these activities, the management is of the view that the Company has only one reportable segment that relates to manufacture of sale of fertilizers.

Geographical information

The Company is in the operation of manufacture and sale of fertilizers within India, the entire revenue is domestic and all non-current assets are situated in India only.

Revenue from major customer

There is no single customer that accounts for more than 10% of the Company's revenue.

24. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006:

The total amount payable to Micro, Small and Medium Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2023 as identified by the management and relied upon by the Auditors is provided below:

26. The Sick Industrial Companies (Special Provisions) Act (SICA) has been repealed from December 01, 2016 and the Board for Industrial and Financial Restructuring (BIFR) stand dissolved from that date. The Company is pursuing legal options to file the Revival proposal to the National Company Law Tribunal (NCLT). However, based on PDIL report, The Company has submitted financial restructuring proposal with DoF, GOI for their consideration.

27. A. The wage revision applicable to supervisors has

been approved by DoF during the current Financial year for the period commencing from 01.04.2023 to 31.03.2024. The company has made a provision towards the said liability amounting to Rs -2.45 Cr and the said is considered under employee benefit expenses in the statement of Profit.

B. For Non-Supervisory employees approval for wage revision is pending with DoF, and hence no provision has been made for liability if any for the same in the accounts for the year.

28. Amount disclosed under exceptional Items

A. Income:-

Indian Oil Corporation Ltd (IOCL) is carrying out pipeline

laying project in the land owned by MFL. The land utilized for this purposes is 1H 31a 46 SQM. The Company has been awarded Rs 6.32 Cr by Indian Oil Corporation Ltd under Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act 1962, (Award No. 01/2023 ETBPNMTPL - SPUR LINE Dated 15/06/2023) for the use of the land for laying down the pipeline beneath the said land. The award received is disclosed under exceptional items in the statement of Profit & loss for the current Financial Year. The company has considered the same as an output service under GST regulations and has reckoned Rs 1.14 Cr as GST realizable from the IOCL which is pending for confirmation.

B. Expenditure:-

The amount of Rs 56.31 Cr shown under exceptional item consists of loss of inventory due to Michaung cyclone floods in Chennai during the month of December 2023.

29. Consequent upon reduction in the rate of gas price taken into consideration for determination of subsidy rate for FY 2020-21, a sum of Rs 0.92 Cr has been refunded by GAIL from gas pool account. The said sum has been considered under other operating income.

30. Penalty on Non-Compliance of Composition of Board:

The company is not having the required number of Independent Directors on its Board due to vacancy arising out of expiry of term from 6th June, 2019 onwards. Accordingly, National Stock Exchange ('NSE”) has levied a penalty of ' 1.03 Cr on the said noncompliance, which has been duly paid by the company.

Being a public sector undertaking, appointment of independent directors on the board lies in the hands of the Govt. of India, which is to be treated as Impossibility of compliance. The company has shown the said amount under “other Financial Assets - Current”, as the same can be claimed back once the said non-compliance is being rectified by the company.

31. Other Statutory Information:

a. The title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. For immovable properties given as collateral security for loans from banks and financial institutions, the title deeds were deposited with the said banks/ financial institutions.

b. The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Asset) since the Company has adopted cost model as its accounting policy to an entire class of Property, Plant and equipment in accordance with Ind AS 16.

c. The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties that are repayable on demand or without specifying any terms or period of repayment.

d. The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken as at the reporting date other than sum of Rs 7.68 Cr being the funds raised on short-term basis used for long-term purposes.

e. Registration, Modification and Satisfaction of charges relating to the year under review, had been filed with the Registrar of Companies, within the prescribed time. However, in respect of certain Modification and Satisfaction of charges relating to the year under review, the Company is in the process of filing the necessary forms with the Registrar of Companies.

f. There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

g. The Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements filed by the Company with the banks or financial institutions are in agreement with the books of accounts, except in the following cases:

h. The Company is not declared as willful defaulter by any bank or financial Institution or other lenders.

i. The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the information available with the Company.

j. The Company do not have any parent company and accordingly, compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable for the year under consideration.

k. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.

l. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

i. 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

ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

m. The company has also 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

i. 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

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

n. The Company do not have any transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

o. The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating to it are not applicable.

32. The Company is in the process of signing MoU with DoF for the FY 2023-24 and is yet to be signed.

33. Balances shown under trade receivable, advances and trade payables are subject to confirmation / reconciliation/ adjustment, if any. The company has been sending letters for confirmation to parties. however, the Company does not expect any material dispute with respect to the recoverability/payment of the same.

I n the opinion of the management, the value of current assets, current liabilities, loans and advances on realization in the ordinary course of business, will not be less than the value at which these are stated in the balance sheet.

34. The Company is engaged in manufacturing and trading of fertilizers, which is an essential input for agriculture. Central and State Governments are giving top most priority on agriculture activities during Covid19 situation also. The Company expects to continue the normal operations and does not expect any impact of Covid19 in its operations which is evident from the fact that the

production of Urea during the year 2023-24 is at 88.85% capacity with 4,32,500 MT of Urea production.

35. Amount in the standalone financial statements is presented in Cr (up to two decimals) except for per share data and as other-wise stated. Certain amounts, which do not appear due to rounding off, are given as follows:

36. The figures for the previous year have been regrouped / reclassified to correspond with the current year's classification and disclosure.